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Issue 1,148 Friday 4 June 2010 www.cityam.com FREE

BP CREDIT RATING Cable says

he is not a
CUT IN NEW BLOW socialist

▲
BANKING
BY STEVE DINNEEN
VINCE Cable attacked banks yesterday
ENERGY for not lending enough to small
▲

BY EMMA SADOWSKI firms – though he insisted he was

BP suffered a fresh blow yesterday
after two of the world’s three largest
credit rating agencies downgraded
the group’s debt.
Fitch and Moody’s both slashed BP’s
rating on fears that the company
would be significantly impacted by
the mountainous legal and clean-up
costs coming from the Gulf of Mexico
oil spill.
Moody’s lowered its senior unse-
cured rating of the oil giant to Aa1
from Aa2 and said the spill represents
a further setback to BP’s ability to
overcome past operational issues.
“The downgrade of BP’s ratings
reflects Fitch’s opinion that risks to
both BP’s business and financial pro-
file continue to increase following the
Deepwater Horizon accident in the
Gulf of Mexico,” said Fitch yesterday,
which lowered BP from AA+ to AA.
Fitch has threatened that it could
further downgrade BP if the rate of oil
leaking into the Gulf continues to
increase and the costs reach $5bn
(£3.4bn).
A spokesperson for BP said that AA
was still a very strong rating and said
that the group does not have a specif-
ic ratings target. He said: “We look to
maintain a strong balance sheet as set
out in our financial framework. We
regard the framework as prudent and
have no plans to change it.”
560
520
480
440
4 May 11 May
BP, led by Tony Hayward, was yesterday successful in moving one step closer to capping the oil leak
BP shares edged up 0.58 per cent
yesterday to close at 432.25p.
The rise reflected investor relief
after the firm successfully managed to
cut a pipe leading from the damaged
blown out preventer moving it one
step closer to redirecting the oil spill.
Hayward called the move a “mile-
stone” and added that the company
will meet obligations to all stakehold-
ers.
Shareholders and investors are
18 May
expecting to quiz Hayward later this
afternoon on whether the company
will cut its dividend payment in half
or suspend the payment altogether.
The group has pledged $360m to
construct six barrier islands in a bid to
reduce the impact of oil meeting the
Louisiana coast.
However, US President Obama said
yesterday BP should have acted quick-
er to the anger he expressed over the
20 April explosion of the Deepwater
432.25p
3 June
25 May 2 June
Picture: GETTY, REUTERS
Horizon rig. Since then the damaged
well has leaked some 19,000 barrels of
oil a day into the Gulf of Mexico.
The President said: “Well, they have
felt the anger. But what I haven’t seen
as much as I’d like is a rapid response.”
Obama has given BP until 1 July to
pay a $69m bill related to the spill, an
administration official said yesterday.
The $69m figure represents 75 per
cent of government costs to date, the
official said.
not a socialist and believes in the mar-
ket economy.
He said that in many cases, the
most useful thing the government
could do was to “get out of the way”,
adding that the coalition government
was going to halt red tape.
“I sometimes find myself described
in the unfriendly press as some kind
of socialist,” a label he dismissed. “I
am a liberal. I am a free trader. I
believe in open markets.”
But his plans to force state-owned
banks to lend more were slammed by
the Institute for Economic Affairs. A
spokesman said: “Should the banks
be cajoled into lending by the govern-
ment and then those loans ‘go bad’
the government will have no option
but to bail them out again.”
Cable also said he had been “per-
suaded” the deficit requires immedi-
ate attention, despite previously
arguing spending cuts should be left
until after the recovery has solidified.
Speaking at Cass Business School,
Cable denied he holds a “grudge
against the City” but admitted he
wants to shift the centre of the UK
economy away from the Square Mile.
He also reiterated his commitment
to a banking levy, attacked “greed”
and said that making Britain “a good
place to do business” again some-
times “means standing up to busi-
ness” and fighting cartels.

FTSE 100 ▲ 5,211.18 +59.86 DOW ▲ 10,255.28 +5.74 NASDAQ ▲ 2,303.03 +21.96 £/$ 1.46 unc £/¤ 1.20 unc ¤/$ 1.22 unc Certified Distribution
5/04/10 - 2/05/10 is 106,285

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 2 News
UK must learn from Australia’s error
EDITOR’S LETTER
ALLISTER HEATH
IT is not just Britain that is about to
shoot itself in the foot with a crippling
and destructive tax hike on investors.
In our case, it is capital gains that are
being targeted; in Australia’s case,
however, it is the mining industry
that is the being subjected to a weird
experiment in irrationality. It is
unclear what Labour prime minister
Kevin Rudd was thinking when he
dreamt up his 40 per cent super-tax on
mining profits but the move is likely
to go down as one of the most absurd
and counter-productive in fiscal histo-
ry. It is right there with the UK Labour
7th Floor, Centurion House,
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WHAT THE OTHER PAPERS SAY THIS MORNING
TNK-BP STEP UP SALE OF GAS FIELD
TNK-BP, BP’s Russian joint oil venture,
ratcheted up the pressure for a sale of
its vast Kovykta gas field on Thursday,
announcing that it was pushing the
unit that owns the licence to the field
into bankruptcy.
The move raises the stakes over the
future of the east Siberian field,
which contains 2,000bn cubic metres
of gas and is strategically located for
supplying China.
Negotiations with Rosneftegaz, the
state-owned vehicle chaired by Igor
Sechin, the powerful energy tsar, have
been dragging on since March, while
a previous deal in 2007, in which TNK-
BP agreed to sell the field to Gazprom
for between $700m and $900m, never
got off the ground.
VISA AND CHINA CLASH ON PAYMENTS
Visa has told banks they must stop
using the payment system of Chinese
government’s top marginal tax rate of
98 per cent in the 1970s and seems
almost deliberately designed to prove
Arthur Laffer’s famous adage that
excessively high tax rates reduce the
tax take by crippling effort, work and
investment.
Shocked miners have been doing
their maths and finding out that it is
simply no longer worth their time to
start new projects in Australia if
returns are cut by 40 per cent; miners,
like everybody else, need to make a
decent risk adjusted return on capital
for their shareholders and can’t afford
to work for free or for pathetically low
profits (maybe someone should have
told Rudd). They are already deciding
that their capital can better be allocat-
ed in other, less short-sighted coun-
tries. The result is that far from raising
billions of dollars a year, the tax will
bring in no money at all at least until
2015, calculates Ivor Ries of
Melbourne broker EL & C Baillieu.
Static models of government revenues
which assume that individuals and
Blackstone in
$1bn sale talks
PROPERTY
▲
BY MARION DAKERS
PRIVATE equity group Blackstone is
in talks with fund manager M&G to
sell it most of the property behind its
Center Parcs holiday business.
The deal could be worth more than
£1bn, making it one of the biggest
property deals since the recession.
The proposed sale would leave
Blackstone running the holiday parks
it acquired in 2006.
Blackstone is reported to be in the
final stages of creating a fund to hold
the holiday company’s £1.4bn of UK
property assets, in which M&G would
then acquire a majority stake.
Blackstone is expected to retain a
stake of up to 25 per cent in the fund,
which is also likely to be open to
other institutions.
The sale concerns the parks in
state-backed China UnionPay to
process international transactions for
co-branded Visa and UnionPay credit
cards. The move comes as credit card
companies are becoming increasingly
frustrated in China, where transac-
tions must be conducted through the
monopoly UnionPay, which is aggres-
sively expanding beyond China’s bor-
ders.
BOOZ AND AT KEARNEY IN TALKS
Two of the best known names in
management consulting, Booz & Co
and AT Kearney, are in talks over a
deal to bring the firms together to
form the world’s third-largest consul-
tancy. People close to the situation
warned that no decision had yet been
made and that discussions could yet
fall apart. In addition, any deal would
need to win the approval of the part-
ners of the two firms. Shumeet
Bannerji, Booz managing partner, has
agreed several details of the proposed
deal with Paul Laudicina, AT Kearney
boss.
companies don’t respond to changes
in tax rates are worthless – yet that is
exactly the silly assumption that Rudd
appears to have made.
Xstrata yesterday threatened to
scrap $5.4bn of coal and copper proj-
ects, taking the industry-wide value of
developments put on hold to above
$20bn in just one month. Wherever
one looks, previously viable projects
have become uneconomic; uncertain-
ty and chaos now plague Australia’s
mining sector, which accounts for 58
per cent of that country’s total
exports. KPMG has studied the impact
of the tax on a typical greenfield proj-
ect with average costs and found that
nickel, copper and gold mines in par-
ticular would no longer be viable.
Australia is one of the very few devel-
oped economies to have completely
avoided the recession; this remarkable
resilience is being ruined by Rudd’s
stupidity.
Rio Tinto, led by boss Tom Albanese,
has rightly described the tax raid as
another kind of “sovereign risk.” He
Cumbria, Suffolk, Somerset and
Nottingham, totalling around 1,600
acres. There are also plans to open a
new site in Bedfordshire in 2013. It
does include Center Parcs locations
across Europe.
The company began in the
Netherlands in 1968, and has grown
to become an upmarket rival to
Butlin’s and Pontin’s holiday villages.
Center Parcs had 97 per cent occupan-
cy rates across its UK parks last year.
M&G refused to comment on the
deal, while Blackstone and Center
Parcs were unavailable for comment.
Blackstone, headed by
Stephen Schwarzman,
will retain a 25 per
cent stake in the M&G
sponsored fund
DELAY NEW ELECTRIC TRAINS
Network Rail has singled out electrifi-
cation of railway lines as a major area
of investment that could be cut back
as public sector spending is squeezed.
The £1bn electrification of the main
rail route between London and Wales
and a line between Liverpool and
Manchester was announced by
Labour last summer.
VANTIS MAY MAKE SALES TO CUT
DEBT
Vantis, the beleaguered British
accounting firm, is holding discus-
sions with potential investors about
selling part of the firm to reduce its
debts, it said yesterday.
The AIM-listed accountant is also talk-
ing to its lenders about restructuring
its balance sheet. Vantis owes more
than £50 million to a consortium of
banks, including Lloyds TSB, Barclays
and Royal Bank of Scotland.
too has ordered his project leaders to
review all its Australian investments
under a “worst-case scenario” tax
model. It is not as if companies such as
Xstrata or Rio aren’t paying plenty
already: they are financing much of
the Australian welfare state. Rio alone
paid corporate taxes worth A$14.6bn
and royalties of A$5.7bn to the
Australian government between 2000
and 2009, making the firm one of
Australia’s top taxpayers. The firm’s
effective tax rate is about 35 per cent
and it has made huge investments in
Australia, ploughing back its profits.
The parallels with the UK are obvi-
ous. It is high time politicians in
Britain as well as Australia finally
understood that tax rates matter.
Hiking capital gains tax in this coun-
try, as is currently being planned by
the coalition government, will inflict
huge damage and will at best yield
very little money and at worst cut the
Treasury’s tax take. Why do govern-
ments never learn?
allister.heath@cityam.com
Google chief Eric Schmidt wants to ease controversy over privacy violations Picture: REUTERS
Google to hand over data
TECHNOLOGY
▲
BY MARION DAKERS
GOOGLE is set to hand over rogue
WiFi data it picked up through its
Street View cameras to European reg-
ulators within the next two days.
The company is keen to avoid fur-
ther criticism of its privacy record
and potential criminal charges, and
will provide information to the
German, Spanish, French and Italian
data protection authorities.
The firm said in a statement it was
SYNERGY PROFITS RISE 50 PER CENT
Richard Steeves, chief executive of the
FTSE 250 company, said the health
care market was continuing to look
for efficiencies as government and pri-
vate sector budgets come under pres-
sure, and that Synergy was well
positioned to capitalise on this need.
“We are more efficient and we raise
clinical standards,” said Mr Steeves,
adding that post-operative infection
rates at the hospitals which used
Synergy’s decontamination services
were half that of their peers.
JOBS LOOKING AT CHINA DEATHS
Steve Jobs, the chief executive of
Apple, said he finds a string of sui-
cides at Foxconn, the Chinese manu-
facturer of the iPad, “troubling”. At
least 16 people have attempted suicide
at Foxconn, which assembles iPods
and iPhones, so far this year, with 12
succeeding in killing themselves.
CITYA.M. 4 JUNE 2010
NEWS | IN BRIEF
Jittery banks park cash at ECB
Nervous European banks parked just
over €320bn at the European Central
Bank’s overnight deposit facility, a new
record that reflects heightened loan-loss
and default fears spreading through the
banking system. ECB data yesterday
gave more evidence of steady increases
in the funds that banks would rather
store at the central bank than loan to
other banks at higher rates available in
the interbank money market, in which
banks loan short-term funds to each
other to help fund regular operations.
Accounting delays criticised
Michel Barnier, European Union internal
market commissioner, has criticised the
way in which the world’s top accounting
rule makers have handled their decision
to delay the deadline for creating a sin-
gle global accounting standard.
Morgan Stanley focuses on retail
Morgan Stanley has formed a new retail
products group to offer a wider choice
of funds, according to Bloomberg. The
unit will be led by Laya Khadjavi, who
previously ran Morgan Stanley’s markets
business. It will hire 35 new employees.
“working hard” to provide authori-
ties with its data, and had already
handed over a Street View car.
It will also publish an external
audit into its practice of photograph-
ing streets for its Street View service.
“We recognise how important this
issue is and believe that we are close
to resolving the legal issues we have
faced in order to make available the
payload data we mistakenly ended up
collecting,” said chief executive Eric
Schmidt. “We screwed up. Let’s be
very clear about that,” he added.
AT&T LIMITS SALE OF WEB DATA
In a significant shift in how phone
carriers bill customers, AT&T Inc. will
stop selling unlimited Internet data
plans to new customers that buy
smartphones and iPads, and will
instead begin charging more for
heavy bandwidth users.
New AT&T customers will have to
choose between two data plans with
monthly usage limits—and pay addi-
tional fees for extra use. Existing cus-
tomers, however, can stick with their
current plans, AT&T said.
RISING SALES AT GE CONSUMER UNIT
The head of General Electric Co.’s
appliances and lighting unit, Jim
Campbell, has forecast rising revenue
and profit for 2010 and next year,
though he credited government stim-
ulus programs rather than the eco-
nomic recovery for boosting industry
sales so far.
CITYA.M. 4 JUNE 2010
Pru tries to soothe
investors as AIA
goes back into play
INSURANCE
▲
BY OLIVER SHAH
PRUDENTIAL was trying to mend
bridges with its main shareholders
yesterday, as the US government
began exploring other options for
offloading AIG’s Asian arm, AIA.
Prudential chairman Harvey
McGrath has spent the past three
days scrambling to save his and chief
executive Tidjane Thiam’s positions
after their $35.5bn (£24.3bn) tilt at
AIA was shot down. A brief statement
confirmed the deal had been termi-
nated. Prudential will pay a £153m
break fee to AIG and £300m to a raft
of City advisers, hefty charges that
have irritated some investors.
Sources close to Prudential said the
board and shareholders were “gaug-
ing what each other’s thinking”
ahead of the insurer’s annual general
Think-tank: CGT hike
won’t make tax fair
CITY A.M.
CAMPAIGN
BY VICTORIA BATES
A LEADING economic think tank has
rubbished the coalition government’s
claims that proposals to alter capital
gains tax (CGT) would improve the
fairness of the UK’s tax policy.
Business secretary Vince Cable yes-
terday told the Commons that the
reforms would “lift very large num-
bers of low-earners out of tax” and
“make the tax system fairer”. But the
Adam Smith Institute (ASI) has pub-
lished a report into the effects of
increasing CGT to levels in line with
income tax rates – a proposal it esti-
Baird Capital sees bid flurry
as trade buyers flex muscles
PRIVATE EQUITY
▲
BY OLIVER SHAH
BAIRD Capital Partners Europe, the
mid-market buyout firm, has received
bids on all but one of its 12 portfolio
companies as trade buying activity
increases.
The private equity firm, an arm of
Milwaukee-based Baird Holding, said
it had sold one investment and was
looking to exit several more at attrac-
tive valuations. Last week it handed
Paddock, a Midlands-based locks man-
ufacturer, to Swedish group Assa
Abloy for an undisclosed sum.
meeting on Monday. The meeting,
usually a staid affair, will be tense.
Thiam and McGrath are battling to
stay at the top of the company while
shareholders want details of a new
strategy for Asian growth minus AIA.
Meanwhile, Europe’s third largest
insurer, Assicurazioni Generali, is
understood to be considering an offer
for parts of AIA, which is effectively
back on the market. A spokesperson
said: “It’s premature to talk of deal.”
A source close to the Italian compa-
ny told City A.M. it had previously been
interested in AIA’s assets in the
Philippines, and would look at them
again. But the source added:
“Generali doesn’t want to be Pru
number two.”
On Wednesday, US Treasury
Secretary Tim Geithner said AIG was
“now free to pursue a bunch of other
options [for the disposal of AIA]”.
mates could cost the UK economy
between £3.2bn and £5.2bn, and lead
to over 60,000 people losing their jobs.
“The idea that one should increase
CGT in the name of ‘fairness’, irrespec-
tive of its effect on revenues and the
wider economy, is predicated on a fun-
damental misconception: that CGT is
paid primarily by the rich,” the ASI
said in its report, which analysed the
effects of past changes to CGT rates on
tax revenues across the globe.
“Intending to tax the rich, politi-
cians, without understanding the
effects of their actions, are proposing
measures which will decrease the
Treasury’s tax take, harm the capital
base on which the economy’s future
depends, and simultaneously punish
Baird Capital chief executive Simon
Havers said many of the approaches
were from trade buyers, suggesting
corporates are taking advantage of
the lull in buyout and flotation activ-
ity to make bolt-on acquisitions. “In
other times we might have exited
Paddock to a [rival] private equity
firm,” he remarked.
Accounts just filed with Companies
House show Baird Capital Partners
Europe swung to the black last year,
making a pre-tax loss of £120,000 on
slightly increased revenues of £3.4m.
A year earlier it made a profit of
£250,000.
Clockwise from left: Fed chairman Ben
Bernanke, AIG chief executive Robert
Benmosche, Pru chief executive Tidjane
Thiam and Pru chairman Harvey McGrath
Pictures: REUTERS, GETTY
poorer and older people,” the insti-
tute added.
This newspaper is currently run-
ning a campaign against the govern-
ment’s CGT proposals, arguing that
such a move will strike a hammer
blow to enterprise and long-term
investment in the UK economy.
The campaign has so far won the
support of influential City figures
such as Seymour Pierce boss Keith
Harris and Tullett Prebon chief execu-
tive Terry Smith.
Cable added yesterday that any
eventual reforms to CGT, which are
likely to be formalised at the Budget
on 22 June, would “acknowledge the
role of entrepreneurship and not
damage it”.
Robert W Baird, the boutique
investment bank which is Baird
Capital’s immediate parent, saw its
revenues climb 14 per cent to £15.9m
but pre-tax profits fell by almost half
to £4.2m. In accounts, the firm’s
directors said it was in a “satisfactory”
position but said it was a cyclical busi-
ness exposed to market conditions.
Havers said he was “very happy”
with Baird Capital’s performance
despite the small loss. “The portfolio
we have got in the current UK fund is
in fantastic shape. There’s not a single
company that has breached its [bank-
ing] covenants.”
News 3
Crozier gets
£2.4m in last
year at Mail
▲
ROYAL MAIL
THE main postal union reacted with
“outrage” yesterday to the news
Adam Crozier, Royal Mail’s former
boss, was paid £2.42m in his final year
with the group.
The figure was revealed in Royal
Mail’s annual report, which said Mr
Crozier got a basic salary of £633,000.
On top of this he had a bonus of
£1.5m for meeting performance tar-
gets over three years, £206,000 in lieu
of a pension, and £19,000 of other
benefits.
The Royal Mail said it needed to be
able to attract the best talent.
Crozier left the Royal Mail before
Easter to take up the top job at ITV.
The payout was attacked as “outra-
geous” by the Communication
Workers Union, which said that
Crozier had left the company before
its multibillion-pound modernisation
programme had been completed.
@
FRU HAZLITT JOINS ITV: P16
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CITYA.M. 4 JUNE 2010 News 5

Facebook rules out

Chancellor George
Osborne is consid-
ering the future of
the FSA ahead of
his Mansion House

an immediate float
speech later this
month.
Picture:
Micha Theiner
/City A.M.

control over what data they share

▲
TECHNOLOGY
BY HARRY BANKS
FACEBOOK chief executive Mark
Zuckerberg yesterday said he had no
date in mind to take the Internet
social networking company public,
and defended changes to the service
that have provoked privacy concerns.
The world’s largest social network
last week unveiled a set of features to
give its nearly half-billion users better
with the public.
But Zuckerberg said pushing the
boundaries on other aspects of
Facebook, such as a new “instant per-
sonalisation” feature that automati-
cally shares users’ personal data with
websites like Pandora and Yelp, was
part of what made Facebook such an
innovative company. Facebook will
continue to make what it believes are
the right changes, he said.

Osborne mulls
stripping FSA
of its powers
England.
▲

POLITICS
BY STEVE DINNEEN
THE Financial Services Authority
(FSA) looks set to lose the majority of
its powers, with George Osborne
understood to be determined to push
through plans to bring City regula-
tion back to the Bank of England.
The move, which is sure to anger
business secretary Vince Cable who
has voiced support for the watchdog,
could be the first big test of the new
Lib-Tory coalition.
Whitehall sources say Osborne is
keen to fall into line with other
nations, where the central bank has
control over financial regulation.
This was the case in the UK until
Gordon Brown severed the ties, mak-
ing the FSA independent. The plans
have been seen as a signal of the Tory
intent to shake up current financial
regulation, which has been branded
partly responsible for the financial
meltdown.
Speculation over the future of the
department has gone into overdrive
since the Queen’s speech last month,
in which she said “oversight of micro-
prudential supervision” would fall
under the remit of the Bank of
The Tories have long been critical
of the FSA, believing the role is better
fulfilled centrally, but the body
appeared to have been thrown a life-
line by the Lib Dems, who stood firm-
ly behind it during coalition talks. It
is not clear, if the plans go ahead,
whether the FSA would be main-
tained in a lesser role or scrapped
altogether.
A Tory spokesman told City A.M. no
final decision has been made on the
future of the regulator but that
detailed plans were being drawn up.
He said: “The coalition agreement
is that we are committed to reform-
ing financial regulation to help pre-
vent a repeat of the financial crisis.
“We are developing detailed plans
to achieve that commitment and will
announce more at the Mansion
House speech later this month.”
FAST FACTS | FSA
● The FSA was given powers over regulation in
a “tripartite” system by Gordon Brown in 1997.
● It is an independent body and receives no
government funding.
● It is accountable to the Treasury.

Washington Post BNP Paribas in

secures four bids a bid to expand
▲

MEDIA
AT least four interested parties appear
to have submitted bids for Newsweek,
the magazine that The Washington
Post put up for sale on 5 May.
Newsmax Media and Thane
Ritchie, chief executive of Ritchie
Capital Management, said they sub-
mitted bids. Private equity firm
OpenGate Capital and Sidney
Harman, the founder of audio equip-
ment company Harman International
Industries, have also expressed inter-
est in the weekly news magazine.
The Washington Post put
Newsweek on the block, citing several
years of losses.
BANKING
FRENCH banking group BNP Paribas
has its eye on expanding operations
in the UK as part of an effort to break
into the top flight of investment
banking.
A newly created team of bankers
will try to strengthen ties with 200
top corporate clients in the UK and
across Europe, with a view to moving
the traditionally retail-focused group
into the top five M&A advisers.
BNP hopes to build on its relatively
strong post-crisis position by fostering
investment and corporate deals,
which currently make up a third of
its revenues.
 6 News CITYA.M. 4 JUNE 2010

Insurers slate new solvency GEITHNER GETS TOUGH

rules as plead for clemency

some politicians want imposed on Including insurance wouldn’t be fair
▲

INSURANCE
BY HARRY BANKS
NEW rules governing solvency in the
European insurance industry are the
right way to go, but insurers should
not be punished for bankers’ misde-
meanours in the crisis, leading insur-
ance executives said yesterday.
Unlike banks, insurers did not pose
a systemic risk to the economy and
should be spared special taxes and
stiff regulation of capital levels that
the financial sector, said senior mem-
bers of the Geneva Association, an
international insurance and risk
management think tank.
“We don’t have anything against
regulation, even tight regulation, but
it has to be right regulation,” Geneva
Association chairman and Munich Re
chief executive Nikolaus von
Bomhard said at the think tank’s
37th general assembly in Zurich.
“Bank taxes are strictly not for us.
or commensurate,” he said.
The Geneva Association was found-
ed in 1973 and comprises 80 chief
executives from the world’s leading
insurance and reinsurance compa-
nies.
“We need comprehensive financial
regulation but let’s not put the insur-
ance and banking industries in one
bucket,” said Michael Diekmann,
chief executive of Allianz, Europe’s
biggest insurer.

US TREASURY secretary Tim Geithner yesterday vowed to push for greater transparency
and tougher capital requirements for the world’s biggest banks ahead of this weekend’s
G20 finance ministers meeting in Busan, South Korea. Geithner also said that he would
be lobbying hard for new restrictions on derivatives trading, as part of an attempt to
toughen up the global financial regulatory framework. Picture: REUTERS

Top nations
plan bank tax
“I don’t think we’re on the verge of
▲

WORLD ECONOMY
BY HARRY BANKS
THE world’s top nations will back
general principles rather than a spe-
oekYWd cific tax to make banks pay for their
own bailouts in future, finance minis-
ters and diplomats said yesterday.
The Group of 20 has pledged a
string of reforms to financial regula-
tion to avert a rerun of the worst
financial crisis since the 1930s that
forced governments to use trillions of
dollars of taxpayer cash to shore up
Put your world in motion banks.
G20 finance ministers and central
bankers meet in South Korean port
city of Busan on Friday and Saturday
to find consensus for their leaders to
endorse at a summit in Canada later
this month.
Some officials are already playing
down the chances of a uniform tax on
banks, raising doubts about the G20’s
ability to agree on tricky issues.
a global consensus on bank levy yet,”
US Treasury Secretary Timothy
Geithner told reporters in Seoul.
There was support in Europe and
the US for a levy “but there’s not uni-
versal support for that across the G20,
at least at this stage. And I don’t think
that’s going to change in Korea,”
Geithner said.
The International Monetary Fund
proposed two bank taxes in April but
G20 asked it to refine its ideas after
opposition from some countries,
such as Canada.
Canada and Brazil say their banks
needed no bailouts during the finan-
cial crisis triggered by a meltdown in
US subprime mortgage market in
August 2007, so there was no need for
a levy either. Speaking in London,
Canadian Prime Minister Stephen
Harper said different countries might
end up going their separate ways on
the issue of a bank levy.

EU ministers set to back radical

Demm_j^kfje changes to Eurozone budget rules
+&%Ð++YWi^XWYa in the 27-nation bloc in general and
▲

EUROZONE ECONOMY
EUROPEAN Union finance ministers
are likely to back on Monday changes
to budget rules that will seek to disci-
Je[dj[hj^[fhecej_ed"fWhj_Y_fWdjickijfkhY^Wi[Wi[b[Yj[ZceZ[b\hecj^[B;=H?7YWcYehZ[hhWd][X[jm[[d pline countries for having excessive
&'$&,$(&'&WdZ)'$&-$(&'&$ debt as well as excessive deficits in
J^[Z[WZb_d[\ehh[Y[_fje\WbbYbW_ci_ic_Zd_]^jed)'$&.$(&'&$Kfedh[Y[_fjWdZl[h_ÓYWj_ede\j^[YbW_c"9WdedKa" future.
j^[fhecej[h"m_bb_iik[WY^[gk[fWoWXb[jej^[dWc[ikffb_[Zedj^[YbW_c\ehcj^[ÇYbW_cWdjÈWdZfeijj^_iY^[gk[$
A “Task Force” of ministers is to
<ehceh[_d\ehcWj_edl_i_jmmm$YWded$Ye$ka%b[]h_WYWi^XWYaehmmm$YWded$_[%b[]h_WYWi^XWYa$J[hciWdZYedZ_j_ediWffbo$
meet on Monday evening in
Luxembourg to debate ways of
strengthening economic governance
the Eurozone in particular to prevent
future debt crises, like the one trig-
gered by Greece.
The broad proposals they approve
will be restricted only to moves that
do not require changes to EU
treaties – difficult to make in prac-
tice – and will be put to a summit of
the bloc’s leaders for approval on 17
June. More detailed proposals are
expected in the autumn.
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 8 Economic News CITYA.M. 4 JUNE 2010

Modest gains for house prices US private sector firms

Although sellers have been gradu- but easing supply shortages, overvalu-
add to staff count in May
▲

PROPERTY
ally returning to the market, housing ation and, of course, the weak eco-
BY JESSICA MEAD market conditions remain charac- nomic backdrop, all argue for
HOUSE prices rose just 0.5 per cent in terised by thin transaction volumes renewed falls later this year.” undershot the official private payroll

May on the previous month, indicat-
ing that after a sharp recovery, the UK
property market is finally starting to
level off.
The latest monthly figures from
mortgage lender Nationwide revealed
that house prices are now up 12.2 per
cent from their trough last February
and are less than 10 per cent below
their 2007 peak.
and a relative scarcity of properties
for sale. However, Martin Gahbauer,
chief economist at Nationwide, said:
“The current supply-demand balance
on the market is still consistent with
relatively stable to modestly upward
trending prices.”
Ed Stansfield, chief property econo-
mist at Capital Economics, said: “For
now, house prices continue to rise,
He added: “With Wednesday’s
weak net mortgage lending data also
pointing to a renewed mood of cau-
tion among lenders, we find it hard
to avoid the conclusion that the
house price revival will ultimately
prove unsustainable.”
Nationwide added that it was diffi-
cult to estimate the impact of any pos-
sible capital gains tax change.
▲
US ECONOMY
PRIVATE sector firms in the US took
on 55,000 more staff in May down
from an upwardly-revised 65,000 in
April, the ADP payroll survey
revealed yesterday.
Analysts were disappointed as they
has expected a gain of around 70,000.
Ian Shepherdson at High Frequency
Economics said: “The survey has
numbers in nine of the past 10
months so it is a fair bet it will do the
same in May.”
The ADP monthly survey only
accounts for private sector jobs so it
does not include the temporary cen-
sus hires. As a result, today’s US non-
farm payrolls report is expected to
show an increase of 513,000 accord-
ing to a consensus of economists.

Eurozone hit
Services stall US MULLS INTEREST RATE HIKE

by sharp drop
as recovery in retail sales
fears weigh

▲
EUROPEAN ECONOMY
EUROZONE retail sales fell sharply in
April, missing expectations for a
small monthly rise, data showed yes-
terday, as uncertainty over jobs and
Although analysts still expect the government spending curbed con-
▲

WORLD ECONOMY
BY JESSICA MEAD
HOPES of a strong recovery in the
services sector were dashed yesterday
after leading surveys suggested that
April’s slowdown was not just a blip
as a result of the volcanic ash cloud.
The UK services purchasing man-
agers’ index (PMI) only edged up to
55.4 in May from 55.3 a month earli-
er, while the US non-manufacturing
ISM held steady at 55.4. In the belea-
guered Eurozone, strong activity in
France saw the PMI increase to 56.2
from 55.6.
In Britain, Markit said there were
reports that the general election out-
come and worries over the strength
of the economic recovery had result-
ed in a degree of client uncertainty
and the deferral of spending.
UK economy to grow faster in the sec-
ond quarter than in the first, there
are concerns that the recovery in the
biggest part of the economy is strug-
gling to pick up pace.
In the US, analysts pointed out
that the non-manufacturing survey
had been underperforming because
manufacturing firms are more sensi-
tive to exports, which are rebound-
ing, and are less sensitive to bank
credit conditions, which are not.
Across the Channel, France led the
accelerated growth in the Eurozone’s
services sector. Service sector expan-
sion reached a 44-month high in
France and growth picked up mod-
estly in both Spain and Ireland. But
the rate of expansion slowed in
Germany and Italy. Employment rose
for the first time since June 2008.
sumer demand.
The European Union’s statistics
office said Eurozone retail sales, a
good indication of households’
propensity to spend, fell 1.2 per cent
month-on-month, the deepest fall
since October 2008, for a 1.5 per cent
year-on-year drop.
Economists had expected a 0.1 per
cent monthly increase in retail sales
in the 16 countries using the euro
and a 0.2 per cent year-on-year
decline. “A sluggish labour market,
tighter fiscal policy and rising uncer-
tainty about the economic outlook
point to ongoing consumer weak-
KANSAS City Federal Reserve Bank president Thomas Hoenig yesterday said that the cen- ness,” said Nick Kounis, economist at
tral bank should raise rates to one per cent by the end of the summer to avoid having to Fortis Bank.
raise borrowing costs abruptly as the economic recovery gains momentum. His board Retailers in Europe have been strug-
colleague Dennis Lockhart also said that the US economy is almost strong enough to gling with falling food prices and
allow the Fed to begin thinking about raising interest rates. Picture: REUTERS shoppers refusing to up spending.

CITY VIEWS: WHAT DO YOU THINK WILL HAPPEN TO TAKE HOME PAY THIS YEAR? Interviews by Emma Sadowski

DAVID HAYES | WILLIS HUGH MASTIN | MANJU RAO |

BARCLAYS GLOBAL INVESTMENT TATA COMMUNICATIONS

“Pay will basically remain stable. “Take home pay has been frozen in “There is still a lot of household and
Some areas might see an increase both public sector industry and pri- company debt and it doesn’t seem
and certain sectors will see a reduc- vate sector commerce for some like there will be a wage hike any
tion. A lot of companies are looking to time. And I don’t foresee an time soon, and if there is one, it will
keep costs down to avoid hav- increase in pay for people in be very small. Levels of pay for
ing to cut staff numbers, work happening in either of workers will most probably
which means a freeze on these areas for the next 12 stay the same for the next
pay.” to 18 months.” year.”

YOU READ HIM DAILY, NOW

WATCH HIM EVERY FRIDAY
Allister Heath gives his views on the the market and economic situation
VISIT WWW.CITYAM.COM SPONSORED BY
 10 News
Nielsen gears
up for listing
▲
MEDIA
BY HARRY BANKS
NIELSEN plans to raise up to $1.75bn
(£1.2bn) in an initial public offering,
becoming the latest private-equity
backed company to sell shares into a
fragile market.
Nielsen is best known for its viewer-
ship ratings, which often determine
the fate of TV shows. Its top 10 clients –
who account for about 23 per cent of
its business – include Coca-Cola, NBC
Universal, Nestle, News Corp, Procter
& Gamble and Unilever.
The Dutch company was taken pri-
vate in a $10bn deal in 2006 by a group
of private equity firms.
Kohlberg Kravis Roberts & Co and
Thomas H Lee Partners first
approached management and formed
the rest of the consortium. THL and
KKR each have about 20 per cent
stakes, as do Blackstone Group and
Carlyle Group.
Quintain confident as losses
shrink and NAV slide slows
▲
PROPERTY
BY HARRY BANKS
PROPERTY developer Quintain
Estates yesterday posted a 1.5 per cent
annual fall in the value of its assets,
narrowed its losses and said it was in
a better financial position to proceed
with its growth plans.
Quintain said adjusted diluted net
asset value (NAV) per share at the end
of March fell to 133p, from 135p a
year ago, and the loss before tax
reduced to £10.1m for the 12 months,
against the previous loss of £129.1m.
“Whilst the continued uncertainty
in the markets will no doubt present
challenges, the business is now in a
Among the others, Hellman &
Friedman own about nine per cent
and AlpInvest Partners about seven
per cent. The rest of the company is
held by management team and other
directors.
Nielsen, which is loaded down with
debt, yesterday declined to comment
on how many shares would be sold,
whether they would be newly issued,
or the timing of the sale.
The US market for IPOs has slowed,
with many deals cut or shelved as
investors protect their portfolios and
wait to see if Europe’s debt crisis will
stall economic recovery. That hasn’t
stopped private equity portfolio com-
panies from starting the IPO process.
Toys R Us last week filed to raise as
much as $800m.
Hospital operator HCA and Dutch
semiconductor company NXP
Semiconductors also recently filed to go
public. Coffee chain Dunkin’ Donuts is
also considering an IPO, analysts said.
significantly stronger shape and we
anticipate a year of real progress,”
William Rucker, chairman of
Quintain, said in a statement.
The company, which specialises in
redeveloping towns and cities across
Britain, announced in January a
three-year plan to make £133.5m in
acquisitions and to grow its fund
management arm.
Quintain did not propose a final
dividend, in line with the previous
year, and is currently deferring pay-
ment of dividends until the business
becomes cash positive again, it said.
Quintain said its rights issue com-
pleted in December raised £183.1m,
helping reduce its gearing to 46 per
UK retailers set to net £126m per goal in World Cup
▲
WORLD CUP
UK retailers could net a £126m sales
boost for every England goal scored
after the group stages of the World
Cup, according to research yesterday.
The extra sales of sportswear, TVs
and food could top £2bn if England
reaches the final, according to a
cent at the end of March from 105 per
cent a year ago, and leaving it with
£248m of undrawn committed corpo-
rate facilities.
Chief executive Adrian Wyatt said:
“Although the UK may well be facing
a period of slow economic growth, or
even decline, this should not impede
reaching our primary target of being
recurring casfhlow-positive.”
Quintain chairman
William Rucker said
the business was in a
“significantly stronger
shape” after 2009
report by the Centre for Retail
Research (CRR).
Retail sales are projected to rise by
£987m if the team reaches the quar-
ter final, with an additional boost of
£110m for pubs and clubs showing
the games.
Almost half this rise (£459m) would
come from food and drink, as fans
Helical says profits will
double in 2011 and 2012
▲
PROPERTY
COMMERCIAL property company
Helical Bar expects to double its after-
tax profit in both 2011 and 2012 and
anticipates spending £150m on acqui-
sitions next year.
Chief executive Michael Slade said
yesterday he expected Helical, which
posted an after-tax profit of £9.6m for
the year to the end of March, to earn
£20m or more after tax in 2011 and at
least £40m in 2012.
“Our target is to increase invest-
ment income... because we’ve had it
diminished,” Slade said. “I can look
back and say we had a good recession
relative [to peers] and we’ve got a fan-
tastic future now.”
Helical, which traces its roots to an
CITYA.M. 4 JUNE 2010
Extra sales of
sportswear, TVs
and food could
top £2bn if
England reaches
the World Cup
final, according
to the Centre for
Retail Research.
Picture: GETTY
stock up on snacks for match parties.
TVs and other electricals could
make up a quarter (£250m), followed
by sportswear (£200m) and barbeques
(£28m). Betting companies are expect-
ed to make £1.2bn in additional rev-
enues over the course of the
competition, with the tournament lift-
ing overall spending by four per cent.
engineering company founded in
1919, has projects ranging from devel-
opment of a headquarters for hedge
fund manager Man Group in the City
of London to retail units in Poland.
Slade said the increased profit
would mostly be derived from
Helical’s developed trading portfolio,
which was about half of its whole
portfolio.
The £150m for acquisitions would
include 60 to 70 per cent of debt.
Overall, Helical’s net borrowing in
relation to its property portfolio value
was 46 per cent and Slade said he
expected that level to remain broadly
flat.
Net gearing was 84 per cent at the
end of March, compared with 95 per
cent a year earlier.
CITYA.M. 4 JUNE 2010
UBS chief executive Oswald Gruebel is facing a referendum on his US tax deal Picture: GETTY
RBS gets six advanced bids
for Global Merchant Services Drugmaker Elan says its
▲
FINANCIAL SERVICES
BY HARRY BANKS
ROYAL BANK OF SCOTLAND is review-
ing six second-round bids for its $4bn
(£2.7bn) payment-processing arm,
and will soon pick two or three suit-
ors for a final round of bidding, peo-
ple familiar with the matter said.
RBS could pick the shortlist as early
as next week and aims to agree the
sale of its Global Merchant Services
(GMS) business during the third quar-
ter, one of the people said.
The six bidding groups are:
Clayton, Dubilier & Rice; American
Express Co and Permira; Atos Origin,
CVC Capital Partners and Welsh,
Carson, Anderson & Stowe; Advent
International and Bain Capital;
Canada’s Moneris Solutions; and TPG,
the people said.
Previous suitor Warburg Pincus is
no longer bidding, they added.
RBS declined to comment. Moneris
could not immediately be reached for
comment. The other bidding groups
either declined to comment or had
no immediate comment.
The bidding consortia are an eclec-
tic mix of names because the bank
has told private equity buyers they
need to team up with strategic part-
ners who will be able to grapple with
the complex nature of the payments
business. GMS handles more than
UBS tax deal
inches closer
▲
BANKING
BY HARRY BANKS
A SWISS-US deal to end a tax dispute
that nearly crippled UBS and under-
mined Swiss bank secrecy inched clos-
er to full parliament approval as the
Swiss upper house gave it its backing
yesterday.
The deal is yet to be approved by the
parliament’s lower house, which will
vote on it next week. Yet the chances
of full parliamentary backing have
improved since Switzerland’s main
party, the right-wing SVP, lifted its
objections in May.
“The vote of the SVP will be key also
in the lower house. But I think in the
end a majority should back the UBS
deal,” Fabio Abate, a member of the
liberal party who sits in the lower
house, said.
However a green light is not yet cer-
tain. “I think it will be slightly more
difficult in the lower house,” Swiss
half the face-to-face credit and debit
card transactions in the UK, and RBS
is said to have been concerned a pure
private equity player would not have
the scale or expertise to run the busi-
ness properly.
ANALYSIS l RBS
p 46.00
60 3 Jun
55
50
45
40
35
8 Mar 26 Mar 19 Apr 10 May 28 May
President Doris Leuthard said when
asked about the chances of the lower
house supporting the UBS deal.
The upper house also voted yester-
day against allowing a referendum on
the tax deal. But the question is still
open on whether the lower house
would do the same, Abate said. A ref-
erendum would delay by several
months the UBS agreement coming
into force.
The US agreed on 19 August 2009 to
drop tax evasion charges against UBS
after Berne promised it would dis-
close to US tax officials bank details of
4,450 of the bank’s US clients in
breach of Swiss bank secrecy laws.
But a Swiss court ruling in January
blocked the data transfer, forcing the
government to bypass the court rul-
ing with a legal patch that requires
parliamentary approval and risks
delaying the sharing of bank client
information beyond a deadline
agreed for the end of August.
The US had accused UBS of helping
rich Americans hide almost $20bn of
untaxed money in secret accounts.
Johnson & Johnson looks
to medical device business
▲
HEALTHCARE
JOHNSON & JOHNSON (J&J) sees its
medical device sales growing faster
than the industry through 2014 and
plans about 80 “significant” regulato-
ry submissions for its largest unit in
the next two years.
J&J outlined its growth plans for
the medical device business – its top
product category with annual sales of
$25bn (£17bn) – as it tries to overcome
a manufacturing crisis at its con-
sumer unit that makes Tylenol and
other products.
Many analysts gathered at compa-
ny’s headquarters in New Jersey yes-
terday also hoped for an update about
J&J’s series of recalls of Children’s
Tylenol and dozens of other over-the-
counter medications.
But it was not clear whether man-
chief will quit in May 2012
▲
PHARMACEUTICALS
IRISH biotechnology firm Elan said its
chief executive Kelly Martin will step
down in May 2012, following months
of disquiet from shareholders.
The news comes just six weeks
after the firm’s chairman, Kyle
McLaughlin, announced his retire-
ment when 28 per cent of sharehold-
ers opposed his re-election.
Elan said it changed Martin’s con-
News 11
TIME LINE | TAX ROW
● 19 June 2008: Former UBS banker
pleads guilty to helping a billionaire hide $200m
from US tax authorities, part of a broader probe.
● 12 November: Raoul Weil, head of UBS’s
wealth management business, charged with
conspiring to help wealthy Americans hide
$20bn of assets from US authorities.
● 18 February 2009: Swiss regulator
FINMA orders UBS to identify certain US
clients to settle criminal fraud charges.
● 19 February: US authorities pursue civil
lawsuit to access details on 52,000 UBS clients.
● 20 February: UBS warns it could go out
of business if it complies with an order to reveal
the names of suspected US tax dodgers and
would require it to violate Swiss law.
● 2 April: US authorities arrest and charge
accountant in Florida in first of what they say
could be a series of tax evasion prosecutions of
American clients of UBS.
● 10 July: CEO Oswald Gruebel sends mem-
orandum to bank’s top executives saying it could
not comply with the US request to disclose the
identity of the 52,000 account holders.
● 19 August: Switzerland says will hand
over details of 4,450 bank accounts to US.
● 8 Januaray 2010: Swiss court rules
regulator FINMA broke bank secrecy law last
year when it ordered UBS to hand over files of
nearly 300 clients to US authorities.
● 24 February: Switzerland asks parlia-
ment to turn into law a deal with Washington
that got UBS off the hook.
● 15 April: Seven former US clients of UBS
charged with filing false tax returns.
● 3 June: Swiss back US tax deal.
agement would discuss anything tied
to the recalls, now under investiga-
tion by the US Food and Drug
Administration.
The maker of Band-Aids and Motrin
told analysts it expects medical device
sales to grow by an average of six per
cent per year between 2009 and 2014,
outpacing industry growth, which it
forecast at five per cent. In 2009, total
company sales were $61bn.
Shares of J&J rose 0.5 per cent, out-
pacing a 0.1 per cent rise for the
wider Standard & Poor’s 500 index.
The company said it still expects to
seek approval in the United States
and Japan by 2012 for its experimen-
tal bioabsorbable drug-coated heart
stent, called Nevo. It is made of a poly-
mer that disintegrates soon after
being implanted to help open a dis-
eased artery.
tract in order to “provide clarity and
continuity on the executive leader-
ship of the company”.
Shareholders have voiced concerns
over the board, and of Martin in par-
ticular, since a botched attempt to sell
the company’s drug delivery division
in 2008.
Martin will remain as an executive
adviser to the board until January
2013, while McLaughlin’s replacement
will be announced in September.
 The Capitalist
12
CITY BOSS DRUMMING UP SUPPORT
FOR TALENTED POLE-DANCING WIFE
FANS of ITV’s Britain’s Got Talent,
which has whipped up millions of
Britons into a frenzy yet again ahead
of this weekend’s final, will be sur-
prised to know that one of the City’s
own has a claim to fame via the show.
Those who’ve been following the
series may remember Alesia
Vasmitzel, the scantily-clad blonde
bombshell who has wowed the judges
with her pole dancing moves and is
due to appear in the last of the live
semi-finals tonight.
I hear the limber lass is married to
Harri Huuskonen, the managing
director of Canary Wharf-based
investment boutique St Andrews
Securities – who’s gunning for his
missus to win the competition
against those left in, including
impressionist Paul Burling, singing
group Connected, dancer Tobias
EDITED BY
VICTORIA BATES
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thecapitalist@cityam.com
Mead and acrobatic gymnastics
troupe Spelbound, among others.
“Every vote from the City is more
than welcome!” Huuskonen tells The
Capitalist, explaining his wife is actu-
ally an ex-UK pole dancing champion.
“She’s very dedicated and practises
all the time – we’ve even got a pole in
the middle of the living room,” he
continues. “Mind you, I’m not com-
plaining…”
Huuskonen is tremendously proud of his pole-dancing missus Alesia Vasmitzel
MOTORCYCLE CLUB
Clearly taking their inspiration from a
bearded, leather-clad Euan McGregor
some years back, two French City
workers have decided to embark on a
motorcycle adventure across the
remoter parts of Europe.
Florent Beluche, a soft commodi-
ties options trader from ED&F Man,
and Charles de Guerry, who works at
private equity real estate investment
adviser MGPA, are due to set off next
Saturday from London – flying to
Moscow and then biking 14,000
uncomfortable kilometres through
Russia, Georgia, Azerbaijan,
Turkmenistan, Uzbekistan and
Beluche on his beloved vintage motorcycle
Kazakhstan to the finish in Mongolia.
For the trip, the daring duo have
bagged themselves some replica
1930s Ural Sahara motorbikes, com-
plete with vintage sidecars.
“The model we’re driving hasn’t
changed since World War II and was
originally designed by the
Germans,” Beluche says.
“They’re not particularly
sophisticated, but we’ve
done some training in the
English countryside to pre-
pare us for the off-roading
stints – it may not be much,
but it’s a start.”
To follow them or chuck
them a few quid – they’re
“selling” each kilometre
to sponsors for £1 a pop
– visit www.roadofem-
pires.com.
SPURRED ON
Horseracing aficionados, listen
up: there’s a new event happen-
ing at Kempton Park at the end
of the month, and it’s not some-
thing you’ll have experienced
before.
Olympic sprinter Jamie
Baulch (right) is descending on
the course on 30 June to race
100m against a thoroughbred
racehorse. Now, it’s not such a
crazy idea as you might think –
speedy Jamaican Usain Bolt holds
CITYA.M. 4 JUNE 2010
the (human) world record over the
distance with under 9.6 seconds,
while experts are apparently predict-
ing that the horse could achieve a
time of under 12 seconds.
Tickets cost £15 to watch the chal-
lenge, though the equine sprinter is
still a firm favourite to win…
TAKING A PUNT
Intriguing goings-on over at spread-
betting firm Extrabet prior to the
start of the World Cup next week. I
hear England striker Wayne Rooney is
now 1/2 to score three goals or more
during the tournament, after a flood
of support coming in from the City
boys in recent days.
That may not sound like too much
of a long shot, but it does start to look
less likely when you take into account
that England, based on past World
Cups, only usually manages to score
around six or seven goals before being
kicked out. Apparently, the rumour
doing the rounds on the trading
floors of the City is that Rooney will
replace Frank Lampard as England’s
preferred penalty-taker during match-
es themselves, after Lampard missed
two crucial penalties recently, for
England against Japan and for
Chelsea against Portsmouth in the FA
Cup final.
HIGH FLYER
Ping! An invitation arrives to
Guardian Media Group chief
executive Carolyn McCall’s
leaving party at the
Rotunda Bar in North
London later this
month.
The invite is pep-
pered with photo-
graphs of McCall,
aeroplanes, ash-
filled skies and (The
Capitalist’s favourite)
a superimposed vision of
Sir Stelios Haji-
Ioannou’s face over an
erupting volcano, all
designed to substitute
in for words.
“After 24 effortless
years at the controls of
the no-frills Guardian
newspaper, [McCall] is
moving to [easyJet] –
skillfully (sic) charting
a flight path around the
torrents of molten rock
spewing from the
Stelyjakjallajoekull volcano,” the
invite reads, with footnotes about
keeping to strict baggage allowances
and drinks and snacks being avail-
able at competitive prices.
Very droll.
CITYA.M. 4 JUNE 2010
WaMu hit by
hitch on exit
of chapter 11
▲
BANKING
BY HARRY BANKS
WASHINGTON Mutual’s effort to exit
bankruptcy encountered a setback
yesterday when the judge in the case
ordered the company to talk further
with shareholders about their
requests for documents.
The bank holding company had
sought approval of its disclosure
statement, which must be cleared by
a bankruptcy court before it can be
sent to those voting on the reorgani-
sation.
Bankruptcy Judge Mary Walrath
declined to hear arguments on the
hundreds of objections to the disclo-
sure statement. Instead, she ordered
lawyers for the company to discuss
requests for information by attorneys
for shareholders and bondholders
and report back on 17 June. She also
postponed discussions of the disclo-
sure statement until that time.
Shareholders want to investigate
the collapse of Washington Mutual
Bank in 2008, the biggest bank failure
in US history and the event that
pushed the holding company into
bankruptcy.
They also want to know more
about a settlement of lawsuits among
JPMorgan Chase, Washington Mutual
and the Federal Deposit Insurance
Corp that is central to the bank hold-
ing company’s reorganisation plan.
That deal divides disputed assets
and provides about $7bn (£4.8bn) to
distribute among creditors.
Shareholders would receive nothing.
Shareholders want information on
what legal claims are resolved by the
settlement, how those claims were val-
ued and if those valuations are fair.
They think the firm’s assets, including
legal claims, could be worth $20bn.
FAST FACTS | WASHINGTON MUTUAL
● Washington Mutual collapsed in 2008 and
was the largest bank failure in US history.
● The FDIC sold Washington Mutual Bank to
JPMorgan in September 2008 after regulators
seized the lender.
News 13
ARM bets on
BALLMER: RACE IS ON
Linux to help it
to trump Nokia
TECHNOLOGY
▲
ELECTRONIC chip designer ARM has
teamed up with five of its major part-
ners to boost the use of free Linux
software on cellphones, challenging
Nokia’s Symbian and Microsoft.
The chip companies said yesterday
they have set up a joint venture,
called Linaro, to cut duplicate devel-
opment in using numerous Linux ver-
sions and to speed up rollout of new
phones -- hoping that would boost
take-up of more advanced handsets.
That would enable them to ship
more advanced chipsets and increase
the average sales prices of their plat-
forms. Versions of the Linux operat-
ing system -- Google’s Android,
operator-backed LiMo, MeeGo from
Nokia and Intel and Palm’s webOS --
have won increased share of the
mobile device market. In the first
quarter Linux phones’ total market
share rose to 14 per cent from 8.5 per
cent a year ago, according to Gartner.
“Linux’s trajectory has been estab-
lished. Its momentum is growing,”
ARM’s chief executive, Warren East,
said, adding he felt it was “inevitable”
for Linux versions to have a very
MICROSOFT’S chief executive Steve Ballmer said yesterday the “race is on” between the strong position in mobile phones.
next generation of Windows and Mac products. “It’s not about Mac and PC any more, it The largest Linux version, Android,
will be about the thing that replaces the Mac,” he told a conference in Los Angeles. He has beaten Microsoft to become the
said spending on technology is expected to increase in developed countries this year, and fourth most popular operating sys-
that Windows will be used in a new breed of touch-screen tablet computers. tem on smartphones.
 14 News
Baker & McKenzie elects
Brazilian as its chairman
▲
LEGAL
BY EMMA SADOWSKI
US LAW firm Baker & McKenzie has
appointed Brazilian Eduardo Leite as
chairman, marking the first time a
large legal practice has turned to the
emerging markets for a leader.
Leite, who currently practises in
the firm’s Sao Paolo office and serves
as executive vice president of the
China-Brazil Business Council, will
replace outgoing chairman John
Conroy when he steps down later this
year.
Chicago-based Conroy served two
years at the helm and during his
tenure saw the firm’s revenue grow
by more than 70 per cent over five
years to $2.11bn (£1.44bn), while prof-
its have grown to $992,000.
Leite was voted in by the firm’s
global partnership last week and will
take over the post at the end of
October.
The recent appointment is a land-
CITYA.M. 4 JUNE 2010
mark for the legal sector, which tradi-
tionally elects heads in either the UK
or the US.
“Change is transforming the busi-
ness world and, with it, the legal pro-
fession. We will continue to lead and
embrace that change, to ensure that
we stay ahead of the curve in meeting
our clients’ evolving needs,” said
Leite.
He will lead the eight partner exec-
utive committee, which manages the
firm’s business, for a four year period.
Eduardo Leite will take over as chairman in October
CITYA.M. 4 JUNE 2010 News 15

Trio cleared as FSA

The FSA’s Margaret
Cole said: “JP
Morgan committed
a serious breach of
our client money

loses NeuTec case

rules by failing to
segregate billions
of dollars of its
clients’ money for
nearly seven years.”

Picture: Micha
Theiner/ CITY A.M Rimmington with insider dealing

▲
ENFORCEMENT
BY STEVE DINNEEN during the £305m takeover of biotech
firm NeuTec by Swiss drugmaker
THE City watchdog lost a major crim- Novartis.
inal trial for insider dealing yesterday FSA head of enforcement Margaret
when a court acquitted a lawyer and Cole said: “Insider dealing cases are
a finance director and a second challenging to prove but these were
lawyer had charges against him serious charges and we considered
dropped. that the evidence provided a proper
The Financial Services Authority basis to put the case before a jury.”
(FSA) had charged Andrew King, She added the FSA remains com-
Michael McFall and Andrew mitted to battling market abuse.

JP Morgan is
slapped with
a record fine
Margaret Cole said: “JP Morgan com-
▲

ENFORCEMENT
BY STEVE DINNEEN mitted a serious breach of our client
money rules by failing to segregate
THE Financial Services Authority yes- billions of dollars of its clients’ money
terday slapped JP Morgan with the for nearly seven years.”
biggest fine it has ever administered. JP Morgan declined to comment.
It issued a mammoth £33.3m fine Mathew Rutter, financial services
for “failing to protect client money” partner at law firm Beachcroft said:
after it found the bank failed to keep “Firms should be taking this warning
clients money in a special ring-fenced very seriously indeed as it clearly
account. won’t be the last fine of this size.
The issue relates to billions of He added: “It is significant that this
pounds of transactions processed by is – by a long way – the biggest fine
JP Morgan’s futures and options busi- from the FSA so far. It is almost as
ness between 2009-2009. much as the total amount of fines
The FSA says client balances trans- imposed by the FSA in the whole of
ferred directly into JP Morgan’s cof- 2009 - itself a record year.”
fers fluctuated between £1.3bn and
£16bn. This means it would be at risk IN THE DOCK | PAST FSA FINES
in the event of the bank becoming
insolvent. £17,000,000 Royal Dutch/Shell Aug 2004
No clients suffered any losses from £13,900,000 Citigroup Jun 2005
the breach. But the FSA has been keen
£8,000,000 UBS May 2009
to prove its mettle after battling accu-
sations of failing to spot and halt the £7,000,000 Toronto Dominion Dec 2009
excessively risky banker behaviour £7,000,000 Alliance & Leicester Jul 2008
that helped trigger the worst credit £6,363,643 Deutsche Bank Nov 2006
crisis. £5,600,000 Credit Suisse Aug 2008
Because of its cooperation, the orig- £5,250,000 Aon Aug 2009
inal fine of almost £50m was reduced £4,000,000 CSFB Dec 2002
by 30 per cent, in line with FSA prac- £2,800,000 GMAC Oct 2009
tice. FSA head of enforcement

First man extradited over insider

dealing charges takes the stand
ing an insider trading operation span-
▲

ENFORCEMENT
BY STEVE DINNEEN
THE first man to be extradited to the
UK to face insider trading charges
made his preliminary court appear-
ance yesterday.
Singaporean Helmy Omar Sa’aid,
33, who was extradited to Britain
from Mayotte, a French territory in
the Comoros Islands, appeared at
Southwark Crown Court.
The appearance precedes a full trial
over allegations he was involved in a
complex insider dealing ring with a
married couple.
The couple are also due to appear
after being accused of mastermind-
ning almost a decade. They are cur-
rently out on bail. Former Dresdner
Kleinwort adviser Christian
Littlewood, 36, who worked for
Shore Capital at the time of the
alleged illegal deals, stands accused
of 13 counts of insider trading,
alongside his Singaporean wife
Angie, 39. The married couple are
accused of scamming a staggering
£670,000 through trading AIM listed
shares. The pair will now appear at
Southwark Crown Court on 28 June.
All three are expected to plead not
guilty. The FSA has so far secured five
convictions related to insider dealing
across three cases since March 2009.
 16 News CITYA.M. 4 JUNE 2010

Xstrata halts sites

in super tax protest
which could create 15,000 positions spokesperson in London who said it

▲
MINING
BY OLIVER SHAH
XSTRATA ratcheted up pressure on
the Australian government over its
controversial resources tax yester-
day by suspending two projects in
Queensland and putting A$22bn
(£13bn) of investment on hold.
The mining giant said it would
no longer be economically viable to
spend A$586m on a coal site in the
Surat Basin and a copper facility in
Cloncurry given the prospect of a
40 per cent super-tax on profits. In
the first serious clash Xstrata said
the move would cost 3,250 jobs.
A further A$22bn of investment,
for Australian workers, has been was “simply not true”.
put under review by the London “This is not a publicity trick or a
and Zürich-listed behemoth. pressure campaign, this is business
Mining companies exploded sense,” the spokesperson said.
with fury when Prime Minister
Kevin Rudd confirmed plans for ANALYSIS l Xstrata
the Resource Super Profits Tax p 985.50
1,300 3 Jun
(RSPT) last month. Industry execu-
tives say the levy is unfair because it 1,200
does not take into account the
funding costs and risks borne by 1,100
groups and their shareholders.
Rudd stirred further discontent 1,000
by suggesting Xstrata was already
900
planning to halt work on the two
Queensland projects. Rudd’s accu- 800
sation was angrily refuted by a 8 Mar 26 Mar 19 Apr 10 May 28 May

Christie’s and
Former Yahoo boss Sotheby’s set
lands plum ITV job for record sales
▲

MINING
forms and reducing our reliance on
▲

MEDIA
BY HARRY BANKS
FORMER European Yahoo executive
Fru Hazlitt is to join ITV to run the
broadcaster’s TV and online sales
business in a move designed to better
link the company’s different plat-
forms.
Hazlitt, who previously ran the
radio group GCap Media and com-
mercial operations for Yahoo in the
UK and Europe, will take up the
newly-created role to develop online
sales as the company looks to diver-
sify and develop new revenue
streams.
ITV chief executive Adam Crozier
said: “Fru’s background is in general
management. Her proven commer-
cial skills and her online experience
with Yahoo make her the ideal can-
didate for this pivotal new role.
“We need to get better at exploit-
ing our brands fully across all plat-
a single volatile revenue stream. RIVALS Christie’s and Sotheby’s are
“She is renowned for her tremen- expecting to hold their biggest ever
dous energy, her understanding of London sales later this month, reflect-
both media and technology and her ing growing confidence in the art
ability to deliver real change and market boom.
results on the ground.” Christie’s announced yesterday it
ITV has been working for several was offering a 1906 Monet water-lily
years to develop its online offering, painting worth an estimated £30m to
by using exclusive content from its 40m – the same price as a Blue
popular shows such as the X-Factor Period portrait by Pablo Picasso.
to draw in new viewers and advertis- The pair, plus 61 other works on
ers. offer, are expected to take the tally on
ITV is working on a new strategic 23 June to £164-231m which, if
review under Crozier, who joined realised, would be well above the
the firm in April. Hazlitt will start London record of £147m set at
work on 2 August. Sotheby’s in February.
Sotheby’s said it expected to sell art
Fru Hazlitt has worth £101-148m at its equivalent sale
experience running on 22 June, its highest pre-sale esti-
mate in London.
the commercial Its auction centrepiece is a painting
operations for Yahoo by Edouard Manet valued at £20-30m,
in the UK and Europe. one of just two self-portraits by the
Monet’s waterlily paintng is worth an estimated £30m to £40m. Picture: REUTERS artist.
CITYA.M. 4 JUNE 2010 News 17

NEWS | IN BRIEF
Network Rail profit Cemex hit by slumping euro
Mexico’s Cemex, the world’s third-

slides as debt rises

Net costs rose slightly to £3.69bn
largest cement maker, blamed the
slumping euro yesterday for a five per
cent cut in its forecast of earnings
before interest, taxes, depreciation and
amortisation for 2010. Chief executive
Lorenzo Zambrano said Cemex expects
EBITDA of $2.75bn this year and free
cash flow, after maintenance and capital

▲
TRANSPORT
BY MARION DAKERS
NETWORK Rail’s pre-tax profits
dropped by more than 75 per cent
last year, amid a reduced budget and
rising debt pile.
The owner of the British rail system
lost eight per cent of revenue, down
to £5.67bn, in the last financial year
due to a reduced government grant
and a fall in track charges paid by
train operators.
Pre-tax profits fell to £395m from
£1.52bn last year, while post-tax prof-
its stood at £284m, down from
£609m, according to results pub-
lished yesterday. All earnings are rein-
Network Rail chief Iain Coucher concedes there is more to do Picture: Micha Theiner/ CITY A.M vested in the railway.
due to lower than inflation pay rises,
but the company has found £86m sav-
ings in maintenance costs.
The firm is obliged to find £1.1bn
in savings by April 2014 under its five-
year spending plan, a feat described
as “challenging … tougher than we
assumed” by the Office of Rail
Regulation earlier this week.
The company’s debts rose by seven
per cent to £23.84bn to help fund its
investment programme, including
the Thameslink, Crossrail and East
London rail projects. The firm said its
debt to asset ratio fell last year, to 64
per cent.
Executive bonuses will be
announced at the end of the month.
expenditures, of $800m.
France Telecom, TDC kill merger
France Telecom and Danish telecom
group TDC yesterday abaondoned a pro-
posed deal to merge their Swiss opera-
tions to take on market leader
Swisscom after competition regulators
rejected it as bad for consumers. In
April, Swiss regulators blocked the pro-
posed deal on the grounds that it would
create a two-player market in which the
companies would have incentives to
raise prices. Since then, the companies
had said they were considering an
appeal but have now decided to aban-
don it. It is good news for Swisscom
which sees its closest rivals thwarted.

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

Chitalu is a Zambian entrepreneur

Deloitte
The business advisory firm has appointed
Vince Niblett as the new global leader of
Deloitte Touche Tohmatsu’s audit and enter-
prise risk services practice.
Niblett originally joined Deloitte in 1980
and has since been seconded to a number of
assignments across the globe, including
posts in Australia, Luxembourg, the Middle
East and South America. He is currently UK
head of audit at the firm.
Nomura Securities Asset Management, to establish a
The investment bank has hired Aram new global equity business for the
Rubinson as a managing director and firm.
senior analyst for its US retail equity The pair co-managed the Odey
research team. Allegra global fund in their previous
Rubinson joins from Highside role. Todd started his career at
Capital Management, where he man- Philips & Drew before joining MFS
aged the retail and consumer com- Investment Management to manage
ponent of a global long/short equity global and European equity portfo-
portfolio. Prior to that, he was a sen- lios. Nickson previously worked at
ior research analyst at Banc of MFS Investment Management and
America Securities. Goldman Sachs.
Majedie Asset Management CDC Group
The boutique asset manager has The development finance group has
appointed Simon Todd and Michael appointed Valentine Chitalu as a
Nickson, both formerly of Odey non-executive director.
specialising in private equity and
local private sector development.
He previously worked for CDC
Capital Partners in London and
Lusaka, focusing on identifying
investment opportunities in southern
Africa.
AT Kearney
Elizabeth Sands has joined the man-
agement consultancy firm as princi-
pal of its organisational
transformation and change practice.
Sands joins from 3i, where she
headed up its active partnership
activity in the buyouts business.
Prior to that, she spent 12 years
working as a consultant.
Signia Wealth
The wealth manager has hired
Matthew Stemp as an executive
director in the investment manage-
ment division and Greg Malone as a
director in the private banking team.
Stemp joins from UBS Global
Asset Management, while Malone
was a director at Arbuthnot Latham
Private Bank.

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
 Enquires & reservations
08442 64 64 40
Find out more at
www.No1Traveller.com
18 News CITYA.M. 4 JUNE 2010

&KDXƵHXUHGDLUSRUWWUDQVIHUV AIR PARTNER’S TRADING TAKES OFF

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The group said the
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now closed unit the
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MORE NEWS Company, were a
ONLINE result of improved
trading conditions
www.cityam.com which were hit
hard by the reces-
sion.

Cabin crew
strike costs
BA £7m a day
by 11.5 per cent, placing it behind
▲

AVIATION
BY EMMA SADOWSKI
BRITISH AIRWAYS (BA) has lost rough-
ly £98m during the last fortnight as a
result of the cabin crew strike, which
has seen the airline’s passenger
capacity fall six per cent.
BA flew 392,000 less customers last
month – a 14.2 per cent drop from
last year as a result of the strike.
The airline faced 14 days of strikes
during May, crippling operations out
of Heathrow Airport and costing up
to £7m a day.
Monthly figures from BA show that
the airline’s passenger capacity, meas-
ured in available seat kilometres, was
down 4.7 per cent, of which the strike
accounted for six per cent of the fall.
Yesterday marked the last day cabin
crew took to the picket lines during
this current strike period with anoth-
er five-day period starting tomorrow.
BA said that it plans to operate 80
per cent of long haul and 60 per cent
of short haul flights during the next
strike period, while maintaining a
full flight schedule to South Africa
for the duration of the World Cup.
Overall passenger traffic for BA fell
rivals Air France KLM and Ryanair.
Last month Air France and KLM,
which trade as the same company,
saw passenger traffic numbers climb
by 4.3 per cent, while capacity
remained flat at 0.1 per cent. The
group said it carried 6.2m passengers
last month and saw a 10 per cent hike
in traffic numbers to Asia.
Meanwhile, budget airline Ryanair
flew 6.4m passengers in May, mark-
ing a 17 per cent increase on last year
when it flew 5.5m. Ryanair said the
May figure includes up to 250,000
passengers who were due to fly but
saw flights cancelled by the closure of
European airspace.
ANALYSIS l British Airways
260 p
250 205.50
3 Jun
240
230
220
210
200
190
180
8 Mar 26 Apr 19 Apr 10 May 28 May

Sportingbet eyes STMicro bullish

a US settlement on 2010 demand
▲

LEISURE
ONLINE gaming firm Sportingbet is
hoping to agree a settlement with the
US authorities before the end of the
year to protect it from the threat of
prosecution, chief executive Andrew
McIver said yesterday.
“I would hope for something in this
current year. It’s definitely progress-
ing and every day we move closer and
closer,” McIver said.
Sportingbet has been in talks with
the US Department of Justice for
more than two years over a possible
settlement which would remove a key
obstacle to it being taken over by a
larger rival.
TECHNOLOGY
DIVERSIFIED semiconductor maker
STMicroelectronics is enjoying strong
demand for the third quarter and a
normal build-up of orders for the
fourth quarter, its chief executive said
yesterday.
The world’s fifth-largest chipmaker
also said during a company presenta-
tion to investors in London it was on
track to meet its target of 6-12 per
cent sales growth this quarter versus
the first quarter of 2010.
Alain Dutheil, chief operating offi-
cer, said the company planned to
increase capacity by 20 per cent by
the fourth quarter.
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Government road fund licence and £55 first registration fee. *Prices based on a customer saving of £3,660 † on the MRRP of £15,655 for the Mégane Hatch Expression 1.6 100 and £2,860 † on the
MRRP of £17,455 for the Mégane Coupé I-Music 1.6 110. Offers apply to vehicles ordered by 30 June 2010 and registered by 30 September at participating dealers only. Of the equipment featured,
air conditioning, ABS brakes and CD player relate to the Mégane Hatch Expression, while rear parking sensors, MP3 connectivity and Bluetooth connectivity relate to the Mégane Coupé I-Music.
This advertisement is provided by Renault UK, The Rivers Office Park, Denham Way, Maple Cross, Herts WD3 9YS. All figures correct at time of going to press.
 20 Consumer News CITYA.M. 4 JUNE 2010

Real Good
Food makes
UK first-quarter

£1.17bn
sales B&Q looks to
a solid start (down two per cent)
World Cup to
£72m kick-off sales
▲

CONSUMER
BY HARRY BANKS
SUGAR and bakery ingredients com- profit in first quarter
pany Real Good Food’s results for the
first four months of the year were
above expectations, the company CONSUMER ue, but we are in good shape and well

▲
said yesterday. BY JOHN DUNNE prepared.”
Chairman Pieter Totté said the Kingfisher’s bank balance has
group’s performance had been B&Q owner Kingfisher said yesterday it moved into the black with net cash of
fuelled by Renshaws, its baking was pinning its hopes on the World £86m, according to the latest tally.
ingredients business.
Meanwhile expansion
Hayden’s, its bakery products busi-
ness, was also contributing.
at £86m
new net cash position
Cup to fuel a sales rise after a first
quarter blighted by poor weather.
The group said it had almost sold
out of a garden gnome dressed in the
That figure has come down from
an overdraft of £250m at the end of
January.
At its steepest the company had a
He said: “I am optimistic that we after years of debt England team kit ahead of the tourna- debt pile of £1.6bn two years ago.
will start to see growth in both vol- ment and was also selling wheelbar- Cheshire said he was cautious
umes and profitability.” rows and gazebos decked with the about the outlook with the upcoming
Totté added: “At Renshaws, the England flag. Budget key to any long-term revival
growth in volumes and profitability Chief executive Ian Cheshire said: on the high street. He said: “It is not
has been well in excess of our expec- “I’m also sure that some of the effects just about whether or not VAT is

14.5pc
tations. This is a seasonal business of the World Cup will prompt people raised but what happens to the totali-
and the first half is normally the low- to buy the odd barbecue late on.” ty of tax changes, and most impor-
est trading period of the year. Kingfisher was hit by poor weather tantly how consumers behave after
He said: “Growth is being driven by earlier in the year, with sales in the UK they have seen them.”
strong export sales to the US, togeth- overall Kingfisher down two per cent on a like-for-like Kingfisher runs over 830 stores in
er with increasing sales in the UK to basis at £1.17bn. However, profits rose eight countries, including the
the home baking and sugar craft sec-
group profit rise 13 per cent to £72m in the 13 weeks to Castorama and Brico Depot chains in
tor. New product launches are on 1 May. France.
schedule and are expected to con- Cheshire blamed the weather for
tribute to a sustainable growth of the drop in like-for-like sales, adding ANALYSIS l Kingfisher plc
this business.” it was “pretty rubbish against last p 229.60
3 Jun

300
He said the business is now mod- year when it was actually fairly nice”.
ernising as it expands into 55,000 sq Once the French and other interna- 240
ft of additional space next month. tional businesses are included, group
Totté added: “The strength of its sales were flat at £2.64bn and profits 230
relationships with key customers the number of B&Q rose 14.5 per cent at £146m.
means we look forward to a good per- stores The chief executive added: “This is 220
formance in the seasonally stronger just the first quarter of what feels like
second half of the year.” could be a very strong year. 210
The company bought Five Star Fish “The headwinds we anticipated at
for £35m in 2007. B&Q parent company Kingfisher has seen its bank balance move into the black the start of the year look set to contin- 1 Mar 19 Mar 12 Apr 30 Apr 21 May

Visit London this Summer Young’s sees cask ale refresh profits
  
    

 

CONSUMER rent year, Young’s said comparable Goodyear said the company had
▲

BY JOHN DUNNE
YOUNG’S reported a better-than-
expected full-year pre-tax profit yes-
terday – fuelled by cask ale and food
sales.
The company, which operates 219
pubs, saw pre-tax profit of £19.4m in
the year to 29 March.
In the first eight weeks of the cur-
sales at its 120 managed pubs,
which are directly operated by the
company, were up 2.2 per cent.
Young’s has one of the strongest
balance sheets in the pubs sector
and cut its net debt by £3.1m to
£62.2m in the second half of the
year while still investing £8.2m in
pub refurbishments.
Chief executive Stephen
made “steady progress”.
He added: “We have not gone
with the crowd in that in that our
food is that bit more expensive but
better quality.
“Cask ales have also done really
well and our pubs within the M25
have performed. With our debt
reducing and expansion plans in
progress we are pleased.”

ANALYST VIEWS: WHAT DO YOU MAKE OF YOUNG’S RESULTS IN

THE STRUGGLING PUB SECTOR? Interviews by John Dunne

MARK BRUMBY | LANGTON CAPITAL

Summer in London from £99

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incl VAT “ The brewery operation Wells & Young has once again turned in a ‘solid’ performance and the tenanted operation

tioned to meet the challenges that the trade will face during 2010 and beyond.

PAUL HICKMAN | KBC PEEL HUNT

”
has been ‘comparatively strong’ and produced like-for-like revenue growth with volumes little changed. Young’s is well-posi-

“
per night incl VAT or the luxurious Apex London Wall Hotel from just £129
per room per night incl VAT. We’ll even include continental breakfast! In a difficult year Young’s has outperformed our forecast, prompting our six per cent earnings upgrade. A well

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apexhotels.co.uk T 0844 875 5113 balance sheet and is well funded for expansion.

" & " #$(# $'    

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Outlook shows promise, despite consumer concerns. The first eight weeks into the full year has seen like-for-like

”
Apex Hotels )  ) %" ) % sales growth amongst the managed houses of +2.2 per cent and the prospect that the group has financial strength to make
further site purchases.. It has reported adjusted profit before tax four per cent ahead of our forecasts and net debt in
line with our expectations.
CITYA.M. 4 JUNE 2010 News 21

This is one the Premier League needs to lose

this year and even the year after.
But in the world of football, for the
high-earning players and managers
alike, life seems to be going on pretty
much as normal.
In the events following the recent
administration of Portsmouth, there
was little more depressing than learn-
CITY COMMENT ing that the players – whose wages
probably exceed £50,000 a week in
DAVID HELLIER many cases – were largely receiving
their pay in full while charities were
in the world of football this is not the
case,” says David Olswang, a restruc-
turing partner at the law firm
Olswang.
“There’s a parallel universe out
there where all the normal rules of
engagement do not apply,” he adds.
In the Portsmouth case HM
Revenue & Customs is owed more
than £20m and now it is challenging
the so-called Football Creditor rules
that allow the anomalies just
ball creditors, which includes the
clubs, players and management. The
League argues that the rules give pro-
tection against the possibility of clubs
collapsing altogether, with players no
longer being paid in full, (poor
things) leaving at will, putting credi-
tors at risk of even greater losses.
But the Revenue says these rules
are “unlawful” and “against public
policy.” In taking out its writ, the
Revenue said: “Non football creditors
overturn a voluntary liquidation at
Wimbledon on the ground that foot-
ball creditors were being given prefer-
ential treatment.
Whatever the outcome of the case
there is a feeling that even by defend-
ing its rules, the Premier League is
making a public relations mistake.
“For a club to hang on to tax
receipts while paying its players is
grotesque,” says Roberts. “The League
should not be encouraging that

T
HESE are economically strait-
ened times. Times when the
Cabinet takes a five per cent pay
cut and the governor of the
Bank of England refuses a pay rise for
owed £4.3m and the people who
worked at matches for St John’s
Ambulance were going unpaid.
“When an ordinary business fails,
the employees all suffer equally but
described to happen.
Under these controversial rules,
the Premier League is able to divert
the club’s share of revenues from
media rights and sponsorship to foot-
are being seriously short-changed and
enough is enough.”
There is no certainty the Revenue
will win its case. Indeed, it failed in a
similar bid in 2004 when it tried to
behaviour.”
Football needs to get its house in
order – and fast. A defeat in this case
may begin the process.
david.hellier@cityam.com

Matthey hits
full-year goal
half was harder to predict.
▲

INDUSTRY
BY HARRY BANKS
JOHNSON Matthey, the world’s
largest supplier of catalytic convert-
ers, expects good progress in the first
half of 2010/11 while considerable
short-term uncertainties about the
global economy remained.
Underlying pre-tax profit declined
five per cent to £254.1m in the year
to the end of March as vehicle pro-
duction was slashed amid the global
recession. Ten analysts polled had on
average expected a profit of £252.5m.
The speciality chemicals company
expects underlying pre-tax profit in
the current first half to be signifi-
cantly higher than in the weak year-
earlier period, but said the second
Finance director Robert MacLeod
said the group expects to perform
better in the first half than in 2006/7
and 2007/8, but that it was too early
to predict how it would fare versus
the record results in the first half of
2008/9.
Martin Evans, an analyst at JP
Morgan, called the results encourag-
ing. “With a better outlook for auto-
motive catalysts in 2010/11, heavy
duty diesel likely to see a steady
recovery in the truck market, and
robust commodity prices the market
is likely to look favourably on these
results.”
Johnson Matthey raised its divi-
dend to 39p, beating expectations of
a 37.1p payout.

BEST OF THE BROKERS

ANALYSIS l Vivendi VIVENDI
21 € 17.67 JP Morgan Cazenove has issued Vivendi
3 Jun
20 with an “overweight” rating noting that
management has indicated several times
19 this year its willingness to acquire the 44
18
per cent of French mobile operator, SFR it
does not own. JP Morgan believes that this
17 could take place later this year or early
next year after the completion of the sale
16
8 Mar 26 Mar 19 Apr 10 May 28 May of the 20 per cent stake in NBC Universal.
ANALYSIS l EADS 16.30 EADS
17 € 3 Jun Royal Bank of Scotland (RBS) said that
16.5
2010 and 2011 are likely to be challenging
16
years for EADS but, looking ahead, said the
15.5
following factors could combine to gener-
15
ate a recovery in earnings: cost reductions,
14.5
the elimination of losses on the A380 pro-
14
gramme and higher aircraft prices. RBS
13.5
has issued EADS with a “buy” recommen-
13
8 Mar 26 Mar 19 Apr 7 May 27 May dation and a target price of €25.
ANALYSIS l Rightmove 722.50 RIGHTMOVE
720 p 3 Jun Numis retains a “buy” recommendation on
700 Rightmove saying there has been some
encouraging news in the property sector.
680
Numis has already upgraded 2010 fore-
660
casts in late February and May. Given the
640 group’s subscription model Numis sees
620 greater upside to 2011 forecasts and in
anticipation of faster earnings growth it
600
8 Mar 26 Mar 19 Apr 10 May 28 May raises its target price to 855p.
To appear in Best of the Brokers email your research to notes@cityam.com
 Markets&Investment
22 CITYA.M. 4 JUNE 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .289.30 –1.00 314.80 216.75 COLT Group . . . . . . . . . . . . . . . .134.30 +3.20 144.20 98.25 Investec . . . . . . . . . . . . . . . . . . .499.00 +6.60 565.00 309.75 Sainsbury(J) . . . . . . . . . . . . . . . .328.20* +2.90 373.00 306.50
3i Infrastructure . . . . . . . . . . . . . 110.00* +0.90 114.40 85.25 Compass . . . . . . . . . . . . . . . . . .561.50 +0.50 572.00 307.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .56.20 +1.20 71.75 31.75 Schroders . . . . . . . . . . . . . . . . .1359.00 +19.00 1450.00 764.00
A.B. Foods . . . . . . . . . . . . . . . . .978.00* +12.50 1045.00 718.50 Cookson . . . . . . . . . . . . . . . . . . .460.00 +1.00 616.00 220.00 Jardine Lloyd Thompson. . . . . . .565.00 +2.50 604.50 393.00 Schroders N/V. . . . . . . . . . . . . .1079.00 +15.00 1185.00 643.50
Aberdeen Asset Man . . . . . . . . . .143.90* –0.10 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1010.00* +27.50 1047.00 498.50 Johnson Matthey . . . . . . . . . . .1570.00 +15.00 1814.00 1077.00 Scot. & Sthrn Energy. . . . . . . . . 1100.00 +13.00 1206.00 357.50
Admiral. . . . . . . . . . . . . . . . . . .1319.00 +12.00 1403.00 833.50 CSR . . . . . . . . . . . . . . . . . . . . . .394.10 +12.60 524.00 320.75 JPMorgan Emerg Mkts . . . . . . . .512.00 +2.00 549.00 350.50 Scottish Mortgage. . . . . . . . . . . .580.00* +11.50 623.50 376.00
Aegis . . . . . . . . . . . . . . . . . . . . . 112.40* –0.80 137.30 79.75 Daily Mail ‘A’ . . . . . . . . . . . . . . . .487.20 +6.30 539.00 264.25 Kazakhmys . . . . . . . . . . . . . . . . 1178.00 +19.00 1634.00 567.50
Afren . . . . . . . . . . . . . . . . . . . . . .90.50 –1.45 111.00 38.50 Dana Petroleum . . . . . . . . . . . .1076.00 +27.00 1549.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .229.60* +5.80 255.00 171.40 SEGRO . . . . . . . . . . . . . . . . . . . .289.00 +1.10 403.10 250.00
Aggreko . . . . . . . . . . . . . . . . . .1333.00 +20.00 1345.00 476.25 Davis Service . . . . . . . . . . . . . . .391.90 –2.00 442.30 307.00 Ladbrokes . . . . . . . . . . . . . . . . .142.30 +3.10 176.88 114.60 Serco . . . . . . . . . . . . . . . . . . . . .620.50 +8.50 656.50 394.30
Alliance Trust . . . . . . . . . . . . . . .321.80 +6.60 352.70 260.25 De La Rue . . . . . . . . . . . . . . . . . .943.00 +17.50 1021.00 808.50 Lancashire Hldgs . . . . . . . . . . . .482.00 +1.20 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1250.00 +17.00 1258.00 921.00
AMEC . . . . . . . . . . . . . . . . . . . . .803.50* +17.50 891.00 603.50 Debenhams . . . . . . . . . . . . . . . . .59.05 –0.45 96.25 55.90 Land Securities . . . . . . . . . . . . . .623.50 +6.00 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .380.50 +1.80 426.50 284.00
Amlin . . . . . . . . . . . . . . . . . . . . .381.40 +5.50 428.50 291.00 Derwent London . . . . . . . . . . . .1368.00* +11.00 1490.00 844.00 Legal & General . . . . . . . . . . . . . .80.65 +1.00 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1465.00 +19.00 1526.00 798.50
Anglo American . . . . . . . . . . . .2605.00 +13.50 3015.50 1540.00 Dexion Absolute . . . . . . . . . . . . .140.80 +1.10 148.00 107.75 Lloyds Banking Gp . . . . . . . . . . . .57.30 +1.41 75.58 39.62 SIG . . . . . . . . . . . . . . . . . . . . . . . 117.90 +1.60 146.60 82.25
Antofagasta . . . . . . . . . . . . . . . .883.00* +8.50 1100.00 546.50 Diageo . . . . . . . . . . . . . . . . . . .1080.00 +10.00 1176.00 829.00 Logica . . . . . . . . . . . . . . . . . . . .128.50 +0.90 149.10 70.00 Smith & Nephew . . . . . . . . . . . . .642.00 +12.00 700.50 435.25
Aquarius Platinum . . . . . . . . . . .379.80 +6.00 490.00 172.75 Dimension Data . . . . . . . . . . . . .102.40 +2.10 105.00 53.75 London Stock Exchange . . . . . . .642.00 +5.00 949.50 606.00 Smiths . . . . . . . . . . . . . . . . . . .1056.00 +16.00 1177.00 649.00
ARM Holdings . . . . . . . . . . . . . . .267.90 +12.70 268.10 103.00 Domino’s Pizza . . . . . . . . . . . . . .361.00 –0.90 371.20 192.75 Lonmin . . . . . . . . . . . . . . . . . . .1660.00 +4.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . .1633.00 +40.00 1796.00 1068.00
Arriva . . . . . . . . . . . . . . . . . . . . .766.00 +1.00 782.50 378.50 Drax . . . . . . . . . . . . . . . . . . . . . .340.80 –0.90 496.50 321.50 Man . . . . . . . . . . . . . . . . . . . . . .243.10 +5.40 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .820.00* +21.50 928.00 493.50
Ashmore . . . . . . . . . . . . . . . . . . .248.80 +1.80 311.20 183.25 DSG Intl . . . . . . . . . . . . . . . . . . . .25.50 –0.45 39.75 19.25 Marks & Spencer. . . . . . . . . . . . .348.70* +1.00 412.70 277.75 Spirax-Sarco Eng . . . . . . . . . . .1434.00 +24.00 1591.00 749.50
Ashtead . . . . . . . . . . . . . . . . . . . 113.20 +3.60 128.50 52.00 Dunelm . . . . . . . . . . . . . . . . . . . .363.80 +4.50 438.40 202.00 Meggitt . . . . . . . . . . . . . . . . . . . .310.00 +5.70 328.70 151.75
Astrazeneca . . . . . . . . . . . . . . .2977.00 +34.00 3136.00 2472.00 Easyjet . . . . . . . . . . . . . . . . . . . .424.10 +8.20 499.90 260.00 Melrose . . . . . . . . . . . . . . . . . . .224.50 +6.50 251.50 87.75 Spirent Comms . . . . . . . . . . . . . . 111.10 +2.50 127.80 54.50
Atkins(Ws) . . . . . . . . . . . . . . . . .701.00 +15.00 730.00 513.50 Edinburgh Inv Tst . . . . . . . . . . . .396.00 +7.70 412.40 297.50 Mercantile IT . . . . . . . . . . . . . . . .929.00 +21.00 1002.00 716.50 SSL Intl . . . . . . . . . . . . . . . . . . . .820.00 +20.00 893.50 481.25
Autonomy Corp . . . . . . . . . . . .1781.00 +12.00 1897.00 1121.00 Electrocomponents . . . . . . . . . . .219.50 –0.10 245.00 134.25 Michael Page Intl. . . . . . . . . . . . .372.00* +8.70 461.50 218.50 St James’s Place . . . . . . . . . . . . .246.30 +1.70 296.90 168.25
Aveva . . . . . . . . . . . . . . . . . . . . 1186.00 +7.00 1237.00 661.00 EnQuest . . . . . . . . . . . . . . . . . . .104.20 +4.20 112.70 87.35 Micro Focus . . . . . . . . . . . . . . . .504.50 +9.60 550.00 300.90 Stagecoach. . . . . . . . . . . . . . . . .192.20 +5.70 204.90 114.75
Aviva . . . . . . . . . . . . . . . . . . . . .339.10 +13.20 474.00 274.75 Eurasian Nat Res . . . . . . . . . . .1031.00* +42.50 1276.00 582.00 Millen & Copthorne . . . . . . . . . . .414.80 +12.60 496.30 217.25 Standard Chartered . . . . . . . . . .1685.00 +33.50 1847.00 1115.00
Babcock International . . . . . . . . .576.50 +3.50 660.50 448.50 Euromoney Inst Inv . . . . . . . . . . .624.00* +14.00 630.00 191.25 Misys . . . . . . . . . . . . . . . . . . . . .231.60 +2.60 264.50 157.25 Standard Life . . . . . . . . . . . . . . .184.30 +2.20 237.00 172.60
BAE Systems . . . . . . . . . . . . . . .324.20 –1.40 389.90 294.20 Experian . . . . . . . . . . . . . . . . . . .636.00 +6.00 664.50 434.00 Mitchells & Butlers . . . . . . . . . . .323.00 +1.10 343.90 221.75 TalkTalk . . . . . . . . . . . . . . . . . . .128.00 +2.30 147.10 106.60
Balfour Beatty . . . . . . . . . . . . . . .262.90* +6.60 328.85 238.50 F&C Comm Prop . . . . . . . . . . . . . .95.00 +0.10 96.80 73.50 MITIE . . . . . . . . . . . . . . . . . . . . .231.60 +1.90 281.70 204.25 Talvivaara Mining . . . . . . . . . . . .373.00 +8.00 501.50 315.00
Barclays . . . . . . . . . . . . . . . . . . .302.70* +6.20 394.25 255.00 Ferrexpo . . . . . . . . . . . . . . . . . . .261.50* +7.90 396.20 112.00 Mondi . . . . . . . . . . . . . . . . . . . . .401.10 –0.60 488.00 182.00 Tate & Lyle . . . . . . . . . . . . . . . . .461.00 +11.00 481.40 284.75
Barratt Development . . . . . . . . . .107.70 +2.20 193.31 91.80 FirstGroup . . . . . . . . . . . . . . . . .391.30 +7.90 448.80 322.75 Monks Inv Tst . . . . . . . . . . . . . . .297.50 +5.60 321.20 222.00 Taylor Wimpey . . . . . . . . . . . . . . .33.70 +0.51 54.90 30.75
BBA Aviation . . . . . . . . . . . . . . .188.90 –0.60 220.00 105.00 Foreign & Col Inv Tst. . . . . . . . . .278.50 +5.10 297.20 210.25 Morrison Wm . . . . . . . . . . . . . . .267.10* +2.10 306.30 234.25 Telecity . . . . . . . . . . . . . . . . . . . .396.00 +5.00 455.00 272.00
Beazley. . . . . . . . . . . . . . . . . . . . 117.50 +4.30 122.00 86.00 Fresnillo . . . . . . . . . . . . . . . . . . .928.50* +8.00 950.00 438.00 Murray Intl Tst . . . . . . . . . . . . . . .828.00 +13.00 893.50 575.00 Templeton Emrg Mkts . . . . . . . . .547.00 +14.00 598.00 346.50
Bellway. . . . . . . . . . . . . . . . . . . .695.50* +10.00 927.50 591.50 G4S . . . . . . . . . . . . . . . . . . . . . .263.90* +4.10 285.70 197.90 National Express. . . . . . . . . . . . .236.30 +4.40 256.80 135.08
Berkeley . . . . . . . . . . . . . . . . . . .796.50 +6.50 989.50 716.50 Genesis Emerging Mkts Fd . . . . .464.00 +7.70 484.00 370.00 National Grid . . . . . . . . . . . . . . .495.50* +8.00 607.65 466.71 Tesco . . . . . . . . . . . . . . . . . . . . .416.55* +1.90 454.90 347.40
BG . . . . . . . . . . . . . . . . . . . . . .1080.00 +17.00 1248.00 966.90 GKN . . . . . . . . . . . . . . . . . . . . . .128.70 +4.70 155.00 67.49 Next . . . . . . . . . . . . . . . . . . . . .2100.00* +18.00 2360.00 1402.00 Thomas Cook . . . . . . . . . . . . . . .206.10 +1.00 277.20 191.90
BHP Billiton . . . . . . . . . . . . . . .1839.50 –16.50 2346.00 1274.50 GlaxoSmithKline . . . . . . . . . . . . 1193.00* +11.50 1347.00 1015.50 Northumbrian Water . . . . . . . . . .287.50 +3.40 296.30 219.90 Tomkins . . . . . . . . . . . . . . . . . . .249.10* +4.30 258.50 135.00
BlackRock Mining . . . . . . . . . . . .581.00 — 654.50 346.00 Great Portland Estates . . . . . . . .313.30 +3.30 332.10 203.75 Old Mutual . . . . . . . . . . . . . . . . . 114.20* +0.70 127.20 70.70 Travis Perkins . . . . . . . . . . . . . . .788.50 +11.50 915.00 461.00
BlueBay . . . . . . . . . . . . . . . . . . .303.00 –13.20 393.00 178.25 Greene King . . . . . . . . . . . . . . . .396.40 –1.70 504.00 359.50 Partygaming . . . . . . . . . . . . . . . .267.20 +3.00 339.70 213.30 TUI Travel . . . . . . . . . . . . . . . . . .233.90 +4.20 313.90 215.50
Booker . . . . . . . . . . . . . . . . . . . . .41.08* –0.16 49.50 31.75 Halfords . . . . . . . . . . . . . . . . . . .505.50 +2.00 524.00 299.00 Pearson . . . . . . . . . . . . . . . . . . .958.50 +13.00 1069.00 574.00 Tullett Prebon . . . . . . . . . . . . . . .336.90 +3.90 436.20 261.20
BP . . . . . . . . . . . . . . . . . . . . . . .432.25* +2.50 658.20 411.50 Halma . . . . . . . . . . . . . . . . . . . . .253.10 +6.60 278.50 165.75 Pennon . . . . . . . . . . . . . . . . . . . .543.50 +5.00 558.00 434.40 Tullow Oil . . . . . . . . . . . . . . . . . 1148.00 +20.00 1375.00 834.50
Brit Insurance . . . . . . . . . . . . . . .750.50 –0.50 831.60 709.00 Hammerson . . . . . . . . . . . . . . . .376.00 +4.30 460.30 272.25 Persimmon . . . . . . . . . . . . . . . . .406.60 +6.10 534.50 340.25 UK Commercial Prop. . . . . . . . . . .79.70 –0.30 84.90 59.50
British Airways . . . . . . . . . . . . . .205.70 +3.70 255.80 117.30 Hansen Trans . . . . . . . . . . . . . . . .91.40 +1.70 169.25 78.00 Petrofac . . . . . . . . . . . . . . . . . . 1199.00 +59.00 1294.00 580.00 Ultra Electronics . . . . . . . . . . . .1634.00 –2.00 1678.00 1058.00
British Amer. Tob . . . . . . . . . . .2155.50 +22.50 2335.50 1637.00 Hargreaves Lansdown . . . . . . . .357.70 +11.40 387.00 197.25 Petropavlovsk . . . . . . . . . . . . . .1251.00 –10.00 1370.00 515.00 Unilever . . . . . . . . . . . . . . . . . .1887.00* +10.00 2024.00 1419.00
British Empire Tst . . . . . . . . . . . .437.00* +8.10 467.90 338.50 Hays . . . . . . . . . . . . . . . . . . . . . .100.00 –0.70 119.00 80.00 Premier Farnell . . . . . . . . . . . . . .222.50* +5.20 249.70 121.25 United Utilities . . . . . . . . . . . . . .561.50 +5.50 575.00 429.00
British Land . . . . . . . . . . . . . . . .466.70 +5.20 532.00 353.00 Henderson . . . . . . . . . . . . . . . . .133.80 +2.70 157.80 83.75 Premier Oil . . . . . . . . . . . . . . . . 1198.00 +68.00 1431.00 984.00 Utd Business Media . . . . . . . . . .519.00 +13.00 579.50 364.75
Britvic. . . . . . . . . . . . . . . . . . . . .482.00* +11.80 497.70 253.25 Heritage Oil. . . . . . . . . . . . . . . . .437.70 +5.90 630.00 409.80 Provident Financial . . . . . . . . . . .826.00* +14.50 986.00 763.00
Brown(N.) . . . . . . . . . . . . . . . . . .253.00 +4.00 284.30 204.25 Hikma Pharma . . . . . . . . . . . . . .699.00 +11.00 730.00 412.00 Prudential . . . . . . . . . . . . . . . . . .565.50 +4.50 665.00 350.25 Vedanta Resources . . . . . . . . . .2295.00 +10.00 2967.00 1262.00
BSkyB . . . . . . . . . . . . . . . . . . . .580.00 +15.00 637.50 423.75 Hiscox . . . . . . . . . . . . . . . . . . . .340.10 +1.70 369.30 279.50 PZ Cussons . . . . . . . . . . . . . . . .291.60 –8.40 305.50 168.00 Victrex . . . . . . . . . . . . . . . . . . .1089.00 –3.00 1123.00 498.50
BT . . . . . . . . . . . . . . . . . . . . . . .133.50 +2.20 151.00 91.10 Hochschild Mining . . . . . . . . . . .291.50 +0.70 370.60 220.00 Qinetiq . . . . . . . . . . . . . . . . . . . .130.00 +0.60 179.10 113.90 Vodafone . . . . . . . . . . . . . . . . . .137.80* +2.70 153.80 111.20
Bunzl . . . . . . . . . . . . . . . . . . . . .716.00* +1.50 784.50 478.50 Home Retail . . . . . . . . . . . . . . . .250.40* +1.30 336.50 235.30 Randgold Resources. . . . . . . . .5975.00 –155.00 6285.00 3351.00 VT . . . . . . . . . . . . . . . . . . . . . . .749.50 +6.50 773.00 416.00
Burberry . . . . . . . . . . . . . . . . . . .734.50 +11.00 750.00 359.00 Homeserve . . . . . . . . . . . . . . . .2157.00 –3.00 2190.00 1336.00 Reckitt Benckiser . . . . . . . . . . .3265.00 +21.00 3667.00 2649.00 Weir . . . . . . . . . . . . . . . . . . . . . .933.50* +17.50 1076.00 437.50
Cable & Wire Comms . . . . . . . . . .62.55 +1.60 150.00 53.00 HSBC Hldgs . . . . . . . . . . . . . . . .639.40* +5.60 766.80 487.00 Reed Elsevier . . . . . . . . . . . . . . .478.30 +3.80 548.00 403.75 Wetherspoon(J.D.) . . . . . . . . . . .439.60 +9.00 556.00 348.00
Cable & Wire Wwide . . . . . . . . . . .85.95 +2.90 94.80 68.60 Hunting . . . . . . . . . . . . . . . . . . .489.00 +18.90 659.50 377.00 Regus . . . . . . . . . . . . . . . . . . . . . .88.90 +2.55 125.50 58.75 WH Smith . . . . . . . . . . . . . . . . . .451.70* +7.30 551.00 405.25
Cairn Energy. . . . . . . . . . . . . . . .408.40 +10.60 441.50 306.80 ICAP . . . . . . . . . . . . . . . . . . . . . .391.30 +6.80 478.30 291.70 Rentokil Initial . . . . . . . . . . . . . . .120.90 +1.00 140.20 81.50 Whitbread . . . . . . . . . . . . . . . . .1422.00* +21.00 1645.00 778.50
Caledonia Invs . . . . . . . . . . . . .1650.00 +22.00 1759.00 1459.00 IG . . . . . . . . . . . . . . . . . . . . . . . .395.70 +16.50 436.30 216.50 Resolution . . . . . . . . . . . . . . . . . .62.00 –0.25 99.50 59.30 William Hill . . . . . . . . . . . . . . . . .181.70 +5.90 219.50 160.50
Capita . . . . . . . . . . . . . . . . . . . . .777.50 +0.50 829.50 643.50 Imagination Tech Gp . . . . . . . . . .244.40 +6.30 289.30 80.00 Rexam . . . . . . . . . . . . . . . . . . . .317.20* +1.70 330.50 222.50 Witan Inv Tst . . . . . . . . . . . . . . . .443.50 +13.50 487.00 329.50
Capital & Counties . . . . . . . . . . .105.60 +2.50 125.40 99.60 IMI . . . . . . . . . . . . . . . . . . . . . . .666.00 +9.00 742.00 275.25 Rightmove . . . . . . . . . . . . . . . . .722.50* +12.00 729.00 334.00 Wolseley . . . . . . . . . . . . . . . . . .1672.00 +33.00 1742.00 986.00
Capital Shopping Centres . . . . . .341.90* +7.90 580.00 300.20 Imperial Tobacco. . . . . . . . . . . .1930.00 +38.00 2159.00 1547.00 Rio Tinto . . . . . . . . . . . . . . . . . .3171.00 +33.00 4104.00 1822.00
Carillion . . . . . . . . . . . . . . . . . . .328.80* +4.90 361.90 236.75 Inchcape. . . . . . . . . . . . . . . . . . .286.60 –3.00 347.00 270.20 RIT Capital Partners . . . . . . . . .1095.00 +10.00 1159.00 861.50 Wood Group (John). . . . . . . . . . .317.30 +10.40 411.70 231.25
Carnival . . . . . . . . . . . . . . . . . .2689.00* +56.00 2937.00 1431.00 Informa . . . . . . . . . . . . . . . . . . . .391.60 +12.10 439.40 216.00 Rolls Royce . . . . . . . . . . . . . . . .594.00* — 631.50 321.25 WPP . . . . . . . . . . . . . . . . . . . . . .669.50 +22.50 744.00 380.50
Catlin . . . . . . . . . . . . . . . . . . . . .339.30 +5.80 380.50 284.75 Inmarsat . . . . . . . . . . . . . . . . . . .785.50 +20.50 819.00 491.00 Rotork . . . . . . . . . . . . . . . . . . .1374.00 +20.00 1482.00 779.50 Xstrata . . . . . . . . . . . . . . . . . . . .985.50 –6.50 1344.50 555.10
Centrica . . . . . . . . . . . . . . . . . . .284.70* +6.70 320.00 212.50 Intercontl Hotels . . . . . . . . . . . . 1142.00* +33.00 1175.00 584.50 Royal Bank Of Scot . . . . . . . . . . . .46.00 +0.86 58.95 28.25 Yell Group. . . . . . . . . . . . . . . . . . .32.50 +1.40 86.00 20.25
Charter Intl . . . . . . . . . . . . . . . . .709.00 +18.50 855.50 395.25 Intermediate Capital . . . . . . . . . .271.60 +2.00 332.00 170.25 Royal Dutch Shell A . . . . . . . . .1841.00* +27.50 2068.50 1431.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .3274.00 +74.00 3711.00 1910.00 Intertek . . . . . . . . . . . . . . . . . . .1403.00* +12.00 1576.00 987.50 Royal Dutch Shell B . . . . . . . . .1773.50* +29.50 1997.50 1437.00
Chloride Group . . . . . . . . . . . . . .282.00 +2.50 308.40 129.00 Intl Personal Fin . . . . . . . . . . . . .224.60 +4.10 283.00 65.75 RSA Insurance . . . . . . . . . . . . . . 119.30* +1.70 142.00 113.10 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .732.00 +6.00 806.50 623.00 Intl Power . . . . . . . . . . . . . . . . . .300.40* +4.50 354.00 228.00 SABMiller . . . . . . . . . . . . . . . . .1945.00 –4.00 2090.00 1210.00
Cobham . . . . . . . . . . . . . . . . . . .235.30* +3.90 278.60 164.90 Invensys . . . . . . . . . . . . . . . . . . .279.30 +3.60 350.30 212.25 Sage . . . . . . . . . . . . . . . . . . . . . .244.40* +3.90 260.50 167.20 www.interactivedata.com

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FTSE 100 breaks out of a losing streak Wall Street makes gains
on hopes of strong American jobs data as technology stocks soar
US President Barack Obama said on in at the moment and when you have supportive labour market data.

THELONDON Wednesday he believed that the May

employment report, due on Friday,
would show strong growth in US pay-
a market which is not unfairly valued
and selling off, it tends to attract
investors back in,” Peter Dixon, econo-
THENEW YORK The Dow Jones industrial average
edged up 5.74 points, or 0.06 per cent,
to end at 10,255.28. The Standard &
REPORT rolls.
Weekly US jobs data out yesterday
appeared to back up Obama’s upbeat
mist at Commerzbank said.
The upbeat sentiment drew pun-
ters in off the sidelines, attracting
REPORT Poor’s 500 Index added 4.45 points, or
0.41 per cent, to 1,102.83. The Nasdaq
Composite Index rose 21.96 points, or

B
RITAIN’S top shares snapped comment. them to stocks which have been hit 0.96 per cent, to 2,303.03.

U
out of a three-session losing The number of US workers filing over the past few days. S stocks rose yesterday, led by a Technology shares, among the
streak yesterday as hopes of new claims for jobless benefits fell Energy stocks were top performers. late-day surge in technology biggest beneficiaries of an economic
strong jobs data from the US last week, while private employers BP rose 0.5 per cent but fell away shares as investors geared up recovery, led the rally, with the
spurred sentiment, sending investors added jobs in May, further evidence from session highs as the oil major’s for what is expected to be a Philadelphia semiconductor index up
bargain hunting in commodity- the labour market was improving. Gulf of Mexico oil disaster weighed strong unemployment report today 1.2 per cent.
linked stocks and banks. However, a slowdown in new on the stock’s sentiment. Stocks moved up and down Microsoft rose 1.5 per cent to $26.86
The FTSE 100 ended up 59.86 orders received by US factories from Crude added 0.7 per cent, while BG throughout the session, shifting after chief executive Steve Ballmer
points, or 1.2 per cent, at 5,211.18, March’s surprisingly robust gain con- Group and Royal Dutch Shell gained between optimism and pessimism on said the company will continue to
closing at a two-week high but falling vinced investors to lock in some early 1.6 and 1.5 per cent respectively. Oil a variety of factors, including techni- prosper even as the transition from
back from an intra-day high of profits. services firm Petrofac was the top cal resistance at the S&P 200-day mov- PCs to other devices poses a “potential
5,262.50. “It’s a very volatile situation we are riser, up 5.2 per cent. ing average, the euro’s weakness, and tumult.”
CITYA.M. 4 JUNE 2010
Choosing the
right lender is
crucial in a
tough market
When houses are vanishing fast, a quick
turnaround from your mortgage provider
makes all the difference, says Jessica Mead
H
OUSES are selling like hotcakes
thanks to fierce competition
among buyers. The latest monthly
survey from the Royal Institution
of Chartered Surveyors (RICS) showed
that houses are shifting quicker than
new ones could come on to the market,
despite the number of new sellers
increasing. Even the dreaded gazumping
is back.
In such a market, if you come across a
property you really want, you can’t
afford to be waiting for paperwork to be
completed and your mortgage to be
approved. The last thing you want is for
your mortgage lender to leave you hang-
ing when everything else is ready.
So if you do require a quick turn-
around on your mortgage approval,
what can you do to speed up the process?
Lenders are requiring more evidence
from prospective borrowers nowadays,
which can slow down the approval
process. Consequently, ensure you have
all the necessary information to hand –
ie, proof of income in the form of P60s.
If you are self-employed, the days of
self-certification are long gone and you
will have to provide accounts going back
at least two years, says David
Hollingworth at London & Country, a
mortgage broker. This may also be the
case if a large proportion of your annual
salary is paid in bonuses. However,
lenders do reserve the right to ask more
questions and you can’t always pre-empt
what they will ask.
Hollingworth points out that if you
are not a run-of-the-mill customer, then
you may have to settle for any mortgage
provider that will lend to you. “The more
difficult your scenario is to place, the
chances are that you may not be getting
the sharpest rate. The value we as a bro-
ker are adding now is cutting through
the criteria to point people to the right
lender rather than just to the best rate.
It’s now much more about advising peo-
PERSONAL FINANCE NEWS
BY JESSICA MEAD
NO OVERSEAS FX FEES WITH KALIXA
Whether you are heading to South
Africa for the World Cup or elsewhere
this summer, you ought to be thinking
about your currency arrangements as
early as possible. Kalixa, the pre-paid
Mastercard, has announced this week
that it will be waiving its standard for-
eign exchange fee for all point-of-sale
transactions made abroad. The offer
started earlier this week and it will run
until 30 September 2010. The Kalixa
card can be loaded with up to £3,000
by electronic bank transfer for 99p or
from another debit or credit card at
1.95 per cent.
ple which route they need to go down to
get a mortgage,” he says.
If you need to get your mortgage
approved within a matter of days, hiring
the services of a broker can be a good
move, even if it does cost you. The time it
takes providers to turn an application
around can vary dramatically. For exam-
ple, those offering the best rates experi-
ence high volumes and therefore
customer service and speed drop off.
While you can and should ask a lender
what their current service levels are, a
broker will have a much better idea of
which lenders are quicker and more flex-
ible. Ideally, you should expect your
mortgage application to take no longer
than two to three weeks from start to fin-
ish, says Mark Harris, managing director
at Savills Private Finance, a City-based
mortgage broker.
A recent survey by Which? Money
found that state-owned mortgage
providers are trailing behind smaller
lenders and building societies for cus-
tomer satisfaction. For the third year
running, First Direct topped the survey,
with an 89 per cent score, followed by
the Co-operative with 78 per cent and
the One Account scored 77 per cent.
Bank of Scotland received the lowest
overall score, with just 41 per cent of cus-
tomers saying they were satisfied.
Halifax, Northern Rock and Lloyds TSB
fared not much better, scoring 44 per
cent, 45 per cent and 48 per cent respec-
tively. The smaller lenders such as
Clydesdale, for example, pride them-
selves on a more personalised approach
while still offering top rates. But be
aware that the best rates are often only
available directly from the lender so
using a broker might not be advanta-
geous if you want market-leading rates.
Whether you use a broker or not, find-
ing out which lender can offer you the
best product is the best way forward in
this tough market.
NEW BARCLAYS’ GROWTHBUILDER
Barclays Wealth has launched a new
version of its Growthbuilder investment
product, which aims to deliver a com-
petitive rate of return in low growth
market conditions. The six-year
Growthbuilder offers a 6.6 per cent
locked-in return for each year that the
FTSE 100 is at or above its starting
level on any of the plan's six anniver-
saries. The potential maximum is there-
fore 39.6 per cent. Investors' capital is
fully returned at maturity, irrespective
of market performance. The maturity
date of the product is 18 August 2016
and the minimum investment is £5,100.
Investment | Personal Finance 23
When you see a house
you want, you have to MORTGAGES | SHOULD YOU BE LOOKING TO FIX YOUR RATE NOW?
move quickly
THE recent surge in inflation has put increased ers who want to guard against rises in the
Picture: pressure on the Bank of England to raise inter- Bank rate in the long-term take out five-year
Micha Theiner/ est rates, giving borrowers a bit of a dilemma – fixed products. But second-guessing what the
CITY A.M
to fix or not to fix. central bank will do is a waste of time – you
Those on variable or tracker rates have benefit- will only know in hindsight if you would have
ed over the past 18 months after the central financially benefited from one product or
bank slashed rates to a historic low of 0.5 per another. Therefore, it is better to choose the
cent. The Organisation for Economic product that suits you best rather than forever
Cooperation and Development (OECD) warned chasing competitive rates.
last week that rates would have to rise to 3.5 Regardless of the rate, fixed mortgage rates
per cent by the end of next year to fight infla- offer you certainty and peace of mind. You
tion. And Credit Suisse cautioned that lenders know exactly how much you will repay each
will increase profit margins on mortgages to month – ideal if you need to keep to a budget.
2.5 per cent above the cost of funding over the But if you are happy to take a risk with your
next two years. The era of cheap, if not easily monthly mortgage payments then there is still
available, mortgages may be coming to an end. value to be had in a tracker product. Just make
So in such an environment, should you be try- sure the penalty fees aren’t too high – no more
ing to lock in a favourable fixed rate now? than 1 to 2 per cent of the entire loan ideally –
Brokers are recommending that those borrow- just in case interest rates do start to soar.
TOP 10 MOST USELESS PRODUCTS
People could be wasting thousands of
pounds on financial products that they
don’t need according to research from
Which? Money Quarterly out today. It
said that the top 10 most useless prod-
ucts are mobile phone insurance,
extended warranties, structured prod-
ucts, ID fraud cover, payment protec-
tion insurance, secured loans, store
cards, debt management plans, with-
profits products such as endowments,
and packaged accounts. Which? Money
said that these products are often use-
less and may be covered by another
product that you already own. Some financial products aren’t always as useful as they appear Picture: SXC
 City Focus
24
Bubbly and with plenty of fizz
High Timber’s Neleen
Strauss is a City hit,
says Kathleen Brooks
C
ITY boys and girls can be a hard
bunch to please, but Neleen Strauss
seems to have found the formula
that keeps them coming back to
High Timber, the restaurant she co-owns
that is located on the north bank of the
River Thames.
High Timber has arguably one of the
best views in the City: it overlooks
Shakespeare’s Globe and the Tate
Modern. It also has a South African feel –
Strauss’s birth place until she moved to
the UK in 2001 – with bright Paul du Toit
paintings on the walls, a slate floor, thick
wooden tables and a relaxed atmosphere:
“The restaurant is less fussy than fine din-
ing,” says Strauss, who became a British
citizen three years ago.
High Timber was Strauss’ second foray
into the restaurant business. Her first was
as co-partner of Vivat Bacchus, which
opened in 2003. After five years she sold
her shares in the business and set up High
Timber.
“Back in 2003 you could set up a busi-
ness in the City for £500,000. You can’t do
that now, High Timber cost the best part
of £2m,” Strauss says as she shows me the
wine cellar, which has a delicious earthy
smell and contains over 20,000 dusty bot-
tles of wine lying on their bellies on
wooden racks. Strauss set up High Timber
with Jordan Wines, a vineyard based in
the Stellenbosch. It’s been hard work to
get High Timber started, it often includes
15 hour days, five days a week.
Although she had planned High
Timber for two years, Strauss didn’t open
the restaurant until April 2009, right in
the middle of the credit crunch. “We have
a saying in South Africa: “adapt or die”. If
you can survive a recession then you can
No lament for
the end of the
family-run firm
Entrepreneurs will
only stay on in future
for tax reasons, writes
Kathleen Brooks
T
HE days of family-run firms could be
numbered according to a survey car-
ried out by Haines Watts, the
accountancy firm. It found that out
of the 650 small business owners it asked, a
paltry 16 per cent responded that they
planned to hand control of their business
to another family member.
So, what has led to this change? William
Townrow from Vestra Wealth says that
lifestyle choice is a major factor. “You get
entrepreneurs who come to the end of
their careers and want to reap the fruits of
| Going It Alone
survive anything.”
Serving reams of bankers, lawyers and
analysts each day must give Strauss a
sense of how things are going in the City:
“I like to call it my own champagne
index. There was certainly less champers
being drunk when we first opened the
restaurant, but now more people are
indulging, which shows something is
going right, and is good for us.”
High Timber is already starting to pay
off: “I budgeted for it to break even in the
first year, but it actually turned a tiny
profit, and we think we will be in profit
this year as May was our best month
ever.”
She says she isn’t intimidated by being
a restaurateur in what is a male-dominat-
ed world: “I went to a very good girls
school that taught me I could do
anything I want, and on top of that my
mother had a successful home crafts busi-
their labour.” Townrow also points out that
strong businesses can attract high bids
which can be too good to turn down:
“People are willing to pay good money for
businesses, so more people are happy to
cash in and use that money to fund a ven-
ture started by their son or daughter rather
than pass their own business down the
family line.”
Another reason for the demise of family
succession is that it doesn’t fit with a mod-
ern economy, whereby firms have to be at
their absolute fittest in order to survive an
exceptionally tough marketplace. David
Fort, managing partner of Haines Watts,
says that these days businesses need the
best people to survive: “This trend could
help businesses, since they don’t need to
take on a family member if they aren’t that
good.”
Although the days of passing a firm
down the generations might be over,
changes to the tax system could mean that
In association with
Neleen Strauss ness, so I had some strong female role
brings some South models.”
African charm to After conquering London, what she
the City calls “the world’s city”, Strauss isn’t going
to stop there; she wants to take her brand
Picture: Micha of low-fuss, high quality dining to the
Theiner/ CITY A.M New World and has plans to open a
branch of High Timber in New York.
CV | NELEEN STRAUSS
Age: 45 and the Scoundrel Christ.”
Family: Single, no children Strauss went into the restaurant
Lives: The City business after studying acting at
Drives: “I take cabs or walk.” the University of the Free State.
Reading: “I am always reading “I went straight into waitressing
even though I work long hours. after college because I realised
Right now I am reading Philip it paid more than acting,” says
Pullman’s The Good Man Jesus Strauss.
The days of a family
business are over
people will be less likely to sell their
businesses, says Jamie Shepherd, chief
Picture: GETTY
executive and owner of Courtiers, the
investment services firm. “The trend to
build up a company and then sell it
rather than pass it on was created by the
UK’s tax system. There was a low rate of
capital gains tax (CGT) and this encour-
aged people to sell. But this could
reverse if there are tax changes.”
Shepherd says that as CGT goes up
and pension relief for high earners is
scaled back, more people may consider
retaining their shareholding in the
company, as this could be the more tax
efficient option: “You could still be a
majority shareholder, along with your
family, but you might not run the day-
to-day business of your firm, which
would be passed over to other qualified
staff members.”
In future entrepreneurs might stay on
because of tax – not an inspiring reason.
CITYA.M. 4 JUNE 2010
TIME TO PAY
Q.
What is the “time to pay”
scheme and how does it
work?
Q&A
A.
The “time to pay” scheme is a long-
standing tax deferral scheme by
HMRC that was not widely known
prior to 2008, when the government re-
launched it as part of a package of recession-
busting measures. It allows businesses to
delay paying a certain amount of tax for a
period of time. Although during 2008 and
early 2009 HMRC relaxed the rules and
granted extra time for a wide range of busi-
nesses to pay tax, now the Revenue has
reverted to a more stringent approach and
access to “time to pay” has once again
become harder. A company seeking more
time to pay any kind of tax – including PAYE
or income tax for an unincorporated business
– must call HMRC to outline a specific reason
why the tax cannot be paid and a schedule
for paying it. For example, if a customer is
taking some time to pay an invoice, a compa-
ny can ask that the deadline to pay the tax on
that revenue be pushed back until the invoice
is paid. The re-launch of the scheme was
designed to help companies during the down-
turn, enabling the Revenue to show some dis-
cretion towards otherwise successful
businesses.
Q.
Who is included and
how does one qualify?
A.
HMRC decides on a case-by-case
basis which businesses are eligible to
have their tax payments delayed. One
of the main factors involved in the decision is
whether the business is viable in the long
term – HMRC is not keen to grant time to
businesses that might go bust having not paid
their tax. It might therefore be harder for
new companies with cash flow problems to
be included in the scheme because it is neces-
sary to provide proof of one’s ability to handle
cash flows in the longer-term, showing that
this inability to pay tax is just a one-off. Such
proof can take many forms, including balance
sheets, bank statements, previous tax returns
(which the HMRC will already have on file) or
a history of invoices (if, for example, a regular
customer always takes three months to pay,
this must be shown with documentation). To
get permission, documentation, good faith
and reliability are important. As Baker Tilly’s
Vincent Wood says: “If you’re a company
that’s never been late with anything and you
ask for an extra few months, the Revenue will
take it that you probably are in difficulties
rather than just trying it on or looking to use
them as a bank.”
Q.
Are there any limits on when and
how much tax one can delay?
A.
The only official limit on delaying tax
payments is for companies owing
over £1m, who need to provide an
independent business review to prove their
need for more time. In terms of timing, Anita
Monteith at the Institute of Chartered
Accounts says: “Contact the revenue before
the payment is late. Don’t leave it until
you’ve missed the deadline.” And when
permission has been granted, Wood
advises: “Once you’ve made
the arrangement you
really have to stick to it
because, if not, next
time they just won’t
believe you.”
Businesses that have
missed tax payments
in the past might
therefore find it diffi-
cult to push back
their tax deadlines.
For viable companies
permission can be
granted instantly.
Juliet Samuel
 Living
26
| Commuter Property
Opening up the
Garden of England
Green space, fast rail links and
big houses makes for a perfect
town, writes Juliet Samuel
W
ITH the recent fresh spates of
sunshine over the City, workers
commuting from office to apart-
ment might be thinking longing-
ly uprooting from London for somewhere
more rural. With expanding rail links con-
necting more and more towns to London,
property prices are on the up and it’s easier
than ever to enjoy the pleasures of the coun-
tryside at home while keeping a lid on the
length of your commute. So which areas
have the perfect combination of transport
links, green space and spacious houses to be
a good commuter town?
KENT: CHISLEHURST
Just 20 minutes from London Bridge sta-
tion and half an hour to the City door-to-
door, Chislehurst offers a better-value and
more convenient alternative to some more
popular locations like Richmond and Esher
to the west of London. Space is at less of a
premium here than in more crowded bor-
oughs closer to the centre, enabling buyers
to take advantage of the many large town-
houses in the area. Chislehurst also hosts
the start of the South East London Green
Chain – a chain of parks and open spaces
that runs all the way to Greenwich, and its
own golf club. Local schools include
Beaverwood School for Girls, formerly a
grammar school, and Edgebury Primary
School, rated outstanding by Ofsted.
KENT: CANTERBURY AND ASHFORD
With the brand new high speed rail linking
Ashford to central London within half an
hour, and Canterbury in 56 minutes, prices
have jumped in Kent and look set to rise as
more buyers realise the new train link has
opened the “garden of England” to the
commuting population of the City.
Ashford has been rated the fourth best
place to live in Britain due to its pedestri-
anised central streets and the presence of
CITYA.M. 4 JUNE 2010
BALLS PARK LUXURY,
HERTFORDSHIRE,
£549,995
Set in the stunning
grounds of Balls Park, this
house is one of a range
available from the
Townsend Collection. The
houses are designed in
the style of the park’s old
mansion and offer under-
floor heating, superb
sound-proofing, oak fin-
ished doors and stone
tops in the fully fitted
kitchens. Contact 0207
886 0331. www.explore- ELEGANT TOWNHOUSE, CHISLEHURST, £1.4M
living.co.uk. The first development outside central London to adopt the “Belgravia style” this
beautiful terrace of Georgian-style townhouses offers 3800 sq ft of living space
and close proximity to parks and transport. It is designed by Urban Evolution, the
company behind many stylish award-winning venues including the Pantechnicon
Rooms, the Thomas Cubbitt and the recently opened The Orange in Pimlico.
Contact 020 7861 1068. www.deneterrace.com.
some of Britain’s few remaining grammar
schools. Meanwhile, further down the
Stour river, Canterbury offers buyers thou-
sands of years’ history as well as proximity
to the sea and, as Sandersons estate agent
Malissa Jones describes: “Unlike a lot of the
other cities, Canterbury has held onto a lot
of independent boutique shops on its cob-
bled streets”. Centred around its stunning
cathedral, the town has a wide range of
properties available, from townhouses on
tree-lined avenues to old Victorian brick
houses inside the ancient city walls. OPULENT MANSION, CHISLEHURST, £5.5M
Independent schools in Kent include This is the most substantial and opulent residence to be built in Chislehurst for
Tonbridge School, Sevenoaks Schools and over half a century. This magnificent new home, set in nearly an acre of beautiful-
Benenden. ly landscaped grounds, backs onto the 17th fairway of the prestigious Chislehurst
Golf Club. It forms part of the historic Camden Park Estate, home in exile in the
HERTFORSHIRE: HERTFORD 1870’s to the French Emperor Napoleon lll. It offers easy access to Chislehurst
Professionals looking for quick access to station and the village centre. Contact: 020 8295 7234. www.jdmonline.com.
beautiful countryside could barely do bet-
ter than Hertford. Locals in the area benefit
from scenic walking routes along canals
and the four rivers that form a confluence
in the town, which also boasts a rich histo-
ry symbolised by Hertford Castle, home to
English Royalty for more than 300 years.
The town centre features a pretty square
filled with pubs and restaurants and a spa-
cious central common. The famous
Haileybury School is nearby and the town’s
many primary schools include Abel Smith
School, St. Andrew’s School, the prestigious
Mill Mead Primary and Hollybush School.
BERKSHIRE: ASCOT
Eastern Berkshire offers buyers all the con-
venience of a quick rail link to London
alongside beautiful countryside and excel-
lent schools. Formerly the home of Ringo
Starr and home to the most prestigious
racecourse in the country, Ascot is accessi-
ble from Waterloo with just a 52-minute
train ride. Stunning local villages offer
exceptional scenery and world-class restau-
rants, with The Fat Duck just a short drive
away in Bray and The French Horn nearby LIGHT AND SPACIOUS APARTMENT, CANTERBURY, £279,995
in Sonning. There is also easy access to the A short stroll to the city centre, this property is located in the highly desirable
Chilterns area of outstanding natural beau- area of south Canterbury. If you are looking for a spacious and light living space
ty for outdoor activities and excellent edu- with two double bedrooms and a large living room, then this could be ideal for
cational options. Local schools include you. There are two bathrooms, one ensuite, and allocated parking for a car. This
Charters School, rated outstanding by
Ofsted, and the prestigious, independent St
would suit a professional couple looking for an easy commute and good capital
George’s School and Papplewick School. growth. Contact: 01227 784784. www.sandersons.info.
 Luxury Living
Brand new homes set in the grounds of
HERTFORD a 60 acre parkland estate in Hertford
SG13 8FE
Introducing Balls Park, a fabulous development of brand
new high specification houses and apartments in the
heart of a beautiful 60 acre parkland setting.
All homes are set behind electronic gates and are
located approximately 1 mile from Hertford East train
station offering fast and frequent links into London.

Apartments from £294,995 Houses from £549,995

For further information & to request a brochure

call: 0844 662 6041
RD
RE
WA
9
A11
STAN
S T EA
D RD B1502
HERTFORD AD
E RO
EAST
WAR
Enfield Lock Liverpool St.
Hertford HERTFORD TOWN
18 24 33 49 MI
LL CENTRE
East MINS MINS MINS MINS
LO

WA
N DO

S
Cheshunt Tottenham Hale

H
N
RO
AD A10
A41
4

Alexandra Palace Old St. LON

PEGS LANE
DO NR
Hertford 16 21 25 34 OA
D
North MINS MINS MINS MINS
SG13 8FE
Winchmore Hill Finsbury Park B1
1

Marketing Suite & Show Homes open 7 days a week 10am - 5.30pm
www.exploreliving.co.uk Email ballspark@exploreliving.co.uk
Photography of Balls Park. Map not to scale. Travel times show shortest journey time as taken from train operators website. Prices correct at time of going to print.

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28 Living | Property of the Month
Loft living goes
west in a mews
home with style
Timothy Barber looks at a classy conversion
of a building once used by canal boatmen
F
INDING hip, loft-style homes in west
London can be rather tricky
– Notting Hill and Fulham are hard-
ly rife with the kind of ancient
industrial buildings that made east
London so fashionable in the Nineties.
What the west does have lots of is mews
streets – quiet, attractive, frequently cob-
bled little spaces that once housed the
stables to the grand mansions and town-
houses of the main roads and squares.
Those old stable buildings have proved
highly adaptable for those searching for
something a little different in areas
where the postcode starts with a W, and
June’s Property of the Month is a case in
point.
On the market for £4m, The Boatman’s
Institute, on Junction Mews between
Marylebone and Bayswater, was built in
1827 and was originally a meeting house
for the boatmen who operated long boats
up the canals that join at Paddington
Basin. More recently the building became
offices, and has now undergone a rather
beautiful conversion.
CITYA.M. 4 JUNE 2010
There are four bedrooms over two
floors, the star attraction being the mas-
ter bedroom which occupies a mezzanine
gallery space overlooking the main recep-
tion area. The living room is double
height and tremendously bright and airy
thanks to skylights inserted in the roof.
With white walls and simple wood floors
the style is fashionably minimalist, but
it’s a cosy place too, with the old sloping
ceilings and wooden beams adding char-
acter and atmosphere.
For fans of tech-savvy modern living
the place is wired up to be adapted to the
latest house-wide audio-visual systems,
and a media room in the basement has
been designed for luxurious film viewing.
Wedged between the elegance of
Marylebone and Connaught Village, near
the modern amenities of the sparkling
Paddington Basement regeneration and
the bustle of the Edgware Road, it’s in the
heart of the action – but being a mews
cul de sac, it’s quiet and secluded too.
Call Simon Barnes Property Consultants on
020 7499 3434 or visit www.simonbarnes.com.
 STRONGER TOGETHER

One name, one promise ... one Colliers

In markets around the world, Colliers professionals are working together to serve the needs of clients,
to advance their interests and accelerate their success.
www.colliers.com/uk

LONDON | NEW YORK | HONG KONG | SHANGHAI | SINGAPORE | SYDNEY | LOS ANGELES Accelerating success.

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30 Living | The Knowledge CITYA.M. 4 JUNE 2010

FOCUS ON: BRENTWOOD, ESSEX

KUMRA HOUSE, KELVEDON HATCH, CM15 0JX

Price: £1.7m
A smart period family home, this property is set in about 1.5 acres
of grounds. There are five bedrooms and the master bedroom
comes with an en suite bathroom. There are two reception rooms, a
dining room, a study and a conservatory. There is also a summer
WARLEYS LEA, WARLEY ROAD, GREAT WARLEY, CM13 3HT house and a swimming pool in the gardens.
Price: £3.75m Contact: Strutt&Parker on 01245 254600, www.struttandparker.com
Architectural connoisseurs will love this early 19th century house that was remodelled by Sir Edwin Lutyens. It is ideally located just 1.25 miles
from Brentwood railway station – around 30 minutes by train from Liverpool Street. Of particular note is the Jacobean staircase that Lutyens
is believed to have brought from a house in Chester at the time of the alteration. There are four principal bedrooms and two secondary bed-
rooms on the ground floor. There is also a library, a separate study, television room and cellar for extra storage. There is also a self-contained
cottage, a swimming pool, tennis court and two double garages within the nine acres of grounds.
Contact: Savills Chelmsford on 01245 293233, www.savills.co.uk

CURRENT MORTGAGE DEALS BY JESSICA MEAD

LENDER FIXED/FLEXIBLE RATE UNTIL STANDARD RATE APR MAXIMUM LOAN

(PER CENT) (PER CENT) (PER CENT) TO VALUE (PER CENT)
Yorkshire BS Flexible 2.39 To Jul 2012 4.99 4.7 75
First Direct Repayment Flexible 2.39 Term 3.69 2.9 65
Market Harborough BS Flexible 2.48 2 years 5.49 5.1 75
HSBC Special 70% LTV Flexible 2.49 Term 3.94 2.7 70
NatWest Purchase Flexible 2.59 To Aug 2012 4.00 4.0 60
Santander Direct Fixed 2.90 To Aug 2012 4.24 4.2 60 THE CLOCK TOWER, THE GALLERIES, CM14 5GF
Yorkshire BS Fixed 2.95 To Jul 2012 4.99 4.8 75 Price: £499,995
For the price you get a three-bedroom flat in this converted clock
Post Office Fixed 75% LTV Fixed 3.89 To Jul 2013 0 3.8 75 tower. The master bedroom benefits from an en suite bathroom,
Britannia Fixed 3.99 To Aug 2015 4.24 4.3 75 while there is also a study and a smart fitted kitchen. The property
is set in attractive surrounding gardens.
The Co-operative Bank Purchase Fixed 5.29 To Aug 2020 4.24 5.8 75 Contact: Bairstow Eves on 01277 211654,
Source: MoneySupermarket.com www.bairstowevescountrywide.co.uk

City to City
Wembley City to the Square Mile in under 30 minutes!

Move to the heart of the action at Wembley City, London’s most exciting
new lifestyle destination and see that commuting to The City or Canary Wharf
has never been easier! Apartments within walking distance of three newly
refurbished stations offering three underground and one overground line
into Marylebone, the West End or The City.

Reserve before
30th June 2010 and
we will pay your
annual tube fare*
wembleycity.co.uk
Wembley City Marketing Suite, Forum House, Engineers Way, Wembley.
Open six days a week, Monday to Saturday 10am to 5.30pm.
T: 0845 201 1205 A development by
E: info@wembleycity.co.uk
 CITYA.M. 4 JUNE 2010
SELLING
BY JESSICA MEAD
HANOVER PLACE, WARLEY,
CM14 5WE
Price: £800,000
This large three storey townhouse
on the outskirts of Brentwood has
five bedrooms, making it an ideal
family home. Two of the bedrooms
have en suites and there is also a
shower room on the top floor. The
kitchen is large and includes a cen-
tral preparation island. There are
three reception rooms and a ground
floor utility room. The property has
ample parking space and a garage.
Contact: Bairstow Eves Brentwood
on 01277 211654,
www.bairstowevescountrywide.co.uk
HIGH MYLES, ONGAR
ROAD, STONDON MASSEY,
CM15 0LD
Price: £1.6m
This is an attractive country house
built in the 1930s, which is located
half way between Brentwood and
Ongar. There are four double bed-
rooms, of which three are en suite,
and four reception rooms. The
grounds total 8.1 acres and include
a heated indoor swimming pool, a
tennis court, a double garage with
studio above, and even your very
own lake.
Contact: Savills Chelmsford on
01245 293233, www.savills.co.uk
COVERTSIDE, PRIESTS
LANE, CM15
Price: £1.65m
An Edwardian family house in a
sought-after location, this six bed-
room property is close to Shenfield
railway station and is therefore
ideal for City commuters. Many of
its period features have been kept,
including an oak-panelled reception
hall. There are three reception
rooms, two of which overlook the
sizeable back garden and the patio
terrace.
Contact: John D Wood on 01245
344222, www.johndwood.co.uk
Live in Wembley City and enjoy:
Q Stunning specification that includes underfloor heating
and 100MB broadband facility
Q 24/7 concierge service, landscaped courtyard and
secure underground parking
Marylebone
Q Surrounds the iconic Wembley Stadium and the future
inclusion of designer shops, restaurants, bars and gym can
make Wembley City the most exciting new London address.
Studio apartments from £175,000 Jubilee
Bakerloo
1 & 2 bedroom apartments from £215,000
Metropolitan
Duplex Penthouses from £499,000 National Rail
Prices correct at time of printing. Photographs taken at Wembley City. Train times approximate.
*For reservations taken on or before 30/6/10 that go onto exchange and complete.
Living | The Knowledge
Russell Hunt
MANAGING DIRECTOR,
PROPERTY HUNT
Dear Russell, is it easier to get
Q. a mortgage now and what’s
the best way for me to go
about getting one?
A.
It is certainly still difficult for indi-
viduals to get a mortgage but
lending is starting to pick up.
However, mortgage lenders are tending to
be more selective as to who they will
approve and are also demanding that you
prove you meet certain criteria.
Some lenders tend to be more flexible
than others though – some will turn you
down if you don’t tick all the boxes where-
as others will deal with their customers on
a more personal basis.
There are lots of pitfalls when it comes
to choosing the best mortgage rate for
you and it is worth taking some time to
get it right. While you can shop around
and look at comparison websites, it is
often useful and less hassle to go through
independent financial advisers (IFAs).
They will look for the best deal for you,
both in terms of the rate and its suitability
given your circumstances.
What’s more, because they are being
paid by the mortgage lender, their advice
and services are free. IFAs will usually
have their ears to the ground and will
know what kind of service you could
expect to get from lenders.
For example, if you have a mortgage
provider that is dragging its feet, then you
could lose the property. The longer it takes
to get your mortgage approved, the less
the vendor will think you are a serious
buyer and may even put the property back
on the market.
Ideally, you should have a survey
booked in no longer than two weeks after
you applied for the mortgage.
However, the key is to agree your mort-
gage in principle before you start looking
for houses. This gives you time to get all
your paperwork arranged and agreed. You
also then know your budget exactly and
can tailor your property search appropri-
ately. If you don’t know how much money
you can afford to spend, then you may be
wasting time looking at houses that are
completely out of your price range.
Finally, if you do get turned down for a
mortgage, find out why and try to address
the situation. If it is your credit rating,
then applying for another mortgage and
19
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9
mins
Euston
Square
Liverpool
Street
27
mins
Waterloo
31
being turned down for the
same reason will worsen your
Q&A
credit rating and increase your chances of
being turned down in the future. Better to
address it straight away rather than find
yourself running out of time.
Q.
Dear Russell, is the London resi-
dential property market starting
to look like it is slowing down?
A.
The London residential market is
certainly starting to slow down in
my opinion. It is being dictated
mainly by the level of stock available in the
market and we are starting to see more
price reductions.
Buyers are still cautious given the cur-
rent economic uncertainty and sellers are
becoming a bit more flexible in their asking
prices and their willingness to negotiate.
If it is a good property with plenty going
for it, then it will still sell quickly. However,
if it has certain aspects that don’t appeal
quite so much, then you may struggle more
to sell it.
For example, a property with tenants in,
lower ground floor flats and dark flats in
mansion blocks can all put prospective
buyers off. Even a pub across the road –
however quiet its regulars may be – or a
bed and breakfast next door, can deter
buyers.
There are more properties coming on to
the market and there is a levelling off
between buyers and sellers, which is caus-
ing prices to level off as well. People cer-
tainly aren’t rushing in to the market as
much as they were.
As for the future of the London residen-
tial market, much will depend on the eco-
nomic situation and the level of sterling.
The more the pound weakens, the more
attractive London is to foreign property
buyers, which could keep house prices in
the capital rising. In parts of London, these
rises are sustainable; in others they are
less so.
However, the summer is definitely a
good time for prospective buyers to look
for properties. There is less competition as
people tend to take their eyes off the mar-
ket in the summer.
The mind-set is also changing – people
just want to get on with moving especially
if they have a big mortgage and want to
free up the capital locked in their home.
We should see the London property market
become more flexible and there should be
more opportunities for buyers to negotiate
with vendors.
Russell Hunt is managing director of
Property Hunt, a search agent for London
and the Home Counties.
www.property-hunt.co.uk
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Bridge Wharf
 Lifestyle
32 CITYA.M. 4 JUNE 2010

| Fashion

Be inspired by the
1 nautical look
Dress for the yacht, terrace or
beach, say Zoe Strimpel
and Timothy Barber
2

2
3
4 3

4
5
8

7 6
7
1 Stripey blue and white dress, Lacoste, £130, www.lacoste.com 2 Sacha 1 Admiral’s Cup Competition, Corum, £2,795 www.corum.ch
shell bracelet, Lola Rose, £65, www.lolarose.co.uk 3 Crystal detail sandals, Giuseppe Zanotti, £720, 2 ‘Jardigan’ cardigan-style blazer, Ede & Ravenscroft, £395, www.edean-
www.netaporter.com 4 Big tote nylon bag, Marc by Marc Jacobs, £250, www.netaporter.com dravenscroft.co.uk 3 Striped polo shirt, Hackett and Monocle, £85, www.hackett.com 4 Khaki
5 Beige frame sunnies, Calvin Klein, tel: 0871 5207 165 6 Nautical stripe bardot top, Jaeger, £60, Amalfi shorts, Hackett, £90, www.hackett.com 5 Striped t-shirt, John Smedley, £122,
www.jaeger.co.uk 7 Silk polka dot knee skirt with black belt detail, CH Carolina Herrera, £260, tel: www.johnsmedley.com 6 Love Espadrilles, £25, www.johnlewis.com 7 Dockside shoes, Russell &
020-3441 0965 8 Stab stitch jacket, Jaeger, £299, www.jaeger.co.uk Bromley, £100, www.russellandbromley.co.uk

POLISH UP FOR
T
HIS weekend I’m thinking close friends,
glass of rose, tantalizing aromas from
the barbie, bare shoulders, and a scent
finger nails? When you’re in sandals or peep- Rub the cream in again before you go to bed
toe shoes your feet are on show. People tend to give it time to work its magic, in the
to look at your face first, then your feet, and morning your feet will feel like rose petals.

PEEP-TOE SEASON of roses – could it be a more perfect

English summer’s weekend? So it’s time to put
on that colourful maxi dress that’s been hang-
ing in your wardrobe for the last few freezing
weeks, and take your new thong sandals out
when bared and unkempt, they can cause
quite a grimace. All week in the office we for-
get about them, but now it’s their time to
shine, so make them pretty.
Give yourself a quick pedicure by soaking
Use M&S Essentials Double Hard clear
varnish (just £5) as a base, then add whatev-
er colour you like. I don’t have time to do this
process too often, so I like M&S’s sparkly
soft pink varnish (£2.50), as it makes your

Sara of the box, hurrah! For a successful barbeque,

there’s preparation; so too, to unleash the
full impact of your new summery outfit.
them in warm water for a couple of minutes
and gently ease back the cuticles, removing
any dead skin around the nails with an
toes look pretty without drawing too much
attention.
For your hands, the process is similar with
Hollamby I’m sure you’ll have thought of shav-
ing your legs and underarms, and
orange stick. Pumice your heels if necessary.
Dry them and trim the nails with sharp scis-
Barielle Nail Strengthening Cream – it’s
brilliant for preventing splitting and flaking.
maybe even some fake sors, straight across. Now rub in some Then use the Double Hard with or without a
Style tan for a healthy
Mediterranean
Barielle Foot Care Cream (£16); this, along
with Barielle Nail Strengthener Cream
natural colour if you want it to last all week
at work.
Counsel glow,
what about
but

your toes and

(£16) is fantastic – my number one recom-
mendation for keeping nails strong and
healthy, and feet soft and supple.
Sara Hollamby is a business image consult-
ant with WorkingVoices.com. Email: sarahol-
lamby@blueyonder.co.uk.
 Lifestyle DE-STRESSING IN A 33
BALINESE PARADISE
| Arts SEE MONDAY’S
TRAVEL SECTION

Shocking but scintillating: a look

into the dark heart of Americana
Casey Affleck stars as
a murderous sherriff
in a controversial but
captivating thriller

Film
THE KILLER INSIDE ME
Cert: 18
hhhhi
WITH this psychological thriller, Michael
Winterbottom – the prolific English direc-
tor whose work includes 24 Hour Party
People and Angelina Jolie-starring A
Mighty Heart – has made a film even more
controversial than his 2004 film 9 Songs,
which gained notoriety for featuring real
sex. An adaptation of a 1952 pulp fiction
novel by American writer Jim Thompson,
The Killer Inside Me stars Casey Affleck as
an unassuming Texan sheriff, Lou Ford,
whose innocent appearance hides grue-
some sexual and violent impulses that
bubble to the surface with shocking bru-
tality as the film progresses.
Jessica Alba and Kate Hudson, two of Kate Hudson and The Crucible (until 19 June) has opened
Hollywood’s most immaculate starlets, are
among those on the receiving end of Lou
Casey Affleck in The Preview this week, while Shakespeare’s farce, The
Comedy of Errors (24 June-31 July), will be
Killer Inside Me.
Ford’s unbridled sadism. Hudson is Ford’s OUTDOOR THEATRE IN directed by Philip Franks later this month.
girlfriend, Alba the hooker with whom LONDON THIS SUMMER Finally, what will no doubt be a highly
Ford embarks on a torrid affair, while Elias atmospheric version of Stephen
Koteas and Tom Bower are among the THERE’S something particularly atmos- Sondheim’s adaptation of the Brothers
investigators gradually closing in on Ford. pheric about watching actors strut their Grimm, Into the Woods (6 August-11
The violence when it comes is indeed dif- stuff as the stars come out on a beautiful September) will round things off at the
ficult to watch, and the dreadful image of summer’s evening, and something partic- Open Air Theatre, which also has comedy
Alba’s disfigured face is difficult to forget. ularly English about huddling under a and music performances over the summer.
But this is a fantastic film nevertheless. blanket with a hipflask and hoping the See www.openairtheatre.org for tickets and infor-
Winterbottom’s point is that, while The rain will stay off just long enough for mation.
Killer Inside Me makes for difficult viewing, Birnam wood to come to Dunsinane. Just along the river from
violence – too often a lazy staple of so much Macbeth (until 27 June), indeed, is the Shakespeare’s Globe is another outdoor
cinema – should make for difficult viewing. show that’s kicked off the season at theatre space, The Scoop at Southwark’s
The film has a burning intensity and psy- London’s home of outdoor theatre, More London development, a riverside
chological depth, the relocation of the noir Shakespeare’s Globe, with Elliott Cowan as August), about Henry VIII’s wife, while amphitheatre where you can sit and
genre from its claustrophobic LA home to the murderous Scots king, and another both parts of Henry IV (6 June-3 October) watch performances for free. Its official
sparse West Texas creating a chilling sense less-than-reputable Shakespearean and a revival of 2008’s hilarious The Merry free theatre festival runs during August,
of isolation akin to that achieved in the monarch is now on state there too, in a Wives of Windsor (14 August-2 October) are bringing Kenneth Grahame’s characters
Coen Brothers film Fargo. zinging production of the Bard’s less-often lined up to follow. See www.shakespeares- to life in Toad Hall!, and Jose Zorrilla’s
It’s no surprise that the film is generat- performed Henry VIII (until 21 August). globe.org for tickets and information. Don Juan in Love. Before that, there are a
ing column inches and TV headlines on a “Kings & rogues” –  and indeed those Over in Regent’s Park, the beautiful series of Fringe performances, including
par with last year’s Antichrist; but such is who fall under both banners – is this year’s amphitheatre that is the Open Air Theatre yet another version of Macbeth – this
the skill and resonance of the theme at the Globe, where you can stand (pictured above) will be staging its own ver- time by the joyfully absurdist company
Winterbottom’s filmmaking that it’s worth among the groundlings for a mere fiver, or sion of Macbeth (3-31 July) in a condensed The Pantaloons –  that’s running
ignoring the hysteria and finding out for pay a bit more to sit on benches in the gal- version that’s suitable for kids over six. throughout June. See www.morelondon.com
yourself. leries. Opening next month is Howard Before that, a production of Arthur Miller’s for tickets and information.
Rhys Griffiths Brenton’s play Anne Boleyn (24 July-21 allegory based on the Salem witch hunt, Timothy Barber

ALSO OUT THIS WEEKEND

FILMS, MUSIC, GAMES

FILM DVD MUSIC GAMES

THE BROTHERS BLOOM Comedy with Adrien ALICE IN WONDERLAND Tim Burton’s disappoint- JACK JOHNSON More inoffensive folky strumming THE SIMS 3: AMBITIONS (PC, MAC) Expansion
Brody, Mark Ruffalo and Rachel Weicsz. ing take on Lewis Carroll. from surf dude Johnson, with album To the Sea. pack for the latest version of the simulation game.

4.3.2.1 Kidulthood’s Noel Clarke takes combines THE BOOK OF ELI Doomsday gubbins about a book TEENAGE FANCLUB Glasgow’s power-pop heros ROOMS: THE MAIN BUILDING (NINTENDO DS,
hoody culture with slick, Hollywood-style action. that can save humankind, with Denzel Washington. return with ninth album, Shadows. WII) Puzzle game.
DEATH AT A FUNERAL Lame-brained US remake of ONE NIGHT IN TURIN Nostalgic documentary THE DIVINE COMEDY Neil Hannon’s new album is ASSASSIN’S CREED II: COMPLETE EDITION
a weak Brit-com, with Peter Dinklage. about England’s Italia 90 World Cup campaign. called Bang Goes the Knighthood. (PS33, X360) Adventure game.
 34 Lifestyle | TV& Games CITYA.M. 4 JUNE 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm A Question of Sport
BBC News
8pm EastEnders
8.30pm Outtake TV
9pm New Tricks
10pm BBC News
10.25pm Regional News
10.35pm CHOICE Friday Night
with Jonathan Ross
11.35pm The National Lottery
Friday Night Draws: Alistair
McGowan presents. 11.45pm FILM
Absolute Power. 1997; Weatherview
1.45am Sign Zone: The Virtual
Revolution 2.45am High Street
Dreams 3.45am Great British Menu
4.15am-6am BBC News
6pm Great British Menu: The
winners prepare for the
banquet. Last in the series.
7pm The Genius of Design
8pm Great British Railway
Journeys
8.30pm Gardeners’ World
9pm CHOICE When Romeo
Met Juliet
10pm Grumpy Guide to the
Eighties
10.30pm Newsnight
11pm The Review Show;
Weather
11.50pm Bon Jovi: When We
Were Beautiful
1.10am I’m in a Rock ‘n’ Roll Band!
2.10am FILM Like Minds. 2006.
3.50am-6am Close
6pm London Tonight
6.30pm ITV News
7pm Emmerdale
7.30pm Britain’s Got Talent
9pm Coronation Street
9.30pm CHOICE Britain’s Got
Talent – The Results
10pm ITV News at Ten
10.30pm London News
10.35pm FILM The Dukes of
Hazzard: Comedy, starring
Seann William Scott and
Johnny Knoxville. 2005.
12.30am The Zone; ITV News
Headlines
2.30am FILM Avalanche Express:
Cold War thriller, starring Lee
Marvin. 1979. 4am Touching Evil
4.45am-5.30am ITV Nightscreen
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away
6.25pm Live from Studio Five
TV PICK
7pm Channel 4 News 7.15pm Cricket on Five:
7.35pm Unreported World England v Bangladesh.
8pm Glee 8pm Sea Patrol UK: A stricken
9pm Fighting the Red Baron chemical tanker drifts
10.35pm The Ricky Gervais dangerously close to a
Show sandbank; Five News at 9
11.10pm The Ricky Gervais 9pm The Mentalist: A scientist
Show is exposed to a deadly virus.
11.45pm Music on 4: World 10pm CSI: NY FRIDAY NIGHT WITH JONATHAN
Music Awards 10.55pm Grey’s Anatomy ROSS BBC1, 10.35PM
1.15am Music on 4: CTRL Student
Tour 1.30am Music on 4: This 11.55pm Cops in Crisis The host is joined by American tennis
Week’s 4Music Top 20 3.15am 12.15am SuperCasino player Andy Roddick, actor LL Cool J
FILM Mad About Mambo: 4.05am Motorsport Mundial and EastEnders stars Nina Wadia and
Premiere. Romantic comedy, 4.30am Wildlife SOS 4.55am Nitin Ganatra.
starring Keri Russell and William Animal Rescue Squad 5.10am
Ash. 2000. 4.40am Win My Wage Neighbours 5.35am-6am Home
5.25am-6.10am Countdown and Away

SKY SPORTS 1 11.30pm-12.30am Ten Pin 9.45pm Doctor Who 11pm Empire of the Mongols 10pm Six Autistic Kids: My
SATELLITE & CABLE

7pm Live Darts 11pm Test
Cricket 1am Super League
2.30am Friday Fight Night
4.30am Premier League World
5am-6am NFL: Total Access
SKY SPORTS 2
7pm World Sport 7.30pm Live
Super League 10pm Live
Friday Fight Night 12am NFL:
Total Access 1am Darts 5am
World Sport 5.30am-6am
IAAF Athletix Weekly
SKY SPORTS 3
7pm Tight Lines 8pm Live PGA
Tour Golf 11pm European Tour
Golf 12.30am Golfing World
1.30am Sailing 2am PGA Tour
Golf 5am ATP Tour Uncovered
5.30am-6am IEX Magazine
BRITISH EUROSPORT
5.45pm MotoGP 7.45pm
World Superbikes 9pm
French Open Tennis 11pm
Game, Set and Mats
Bowling
ESPN
6pm FIFA World Cup Classic
Matches 8pm NBA Basketball
10pm The Ultimate Fighter
11pm Birmingham City v
Manchester United: 2009/10
1am Live NHL Ice Hockey 4am
MMA Live 4.30am-5.30am
The Ultimate Fighter
LIVING
7pm Ghost Whisperer 8pm
Ghost Hunters 9pm Criminal
Minds 10pm CSI: Miami 11pm
Criminal Minds 12am CSI:
Crime Scene Investigation
2am Exposed: Kate Moss 3am
Chubby Children 3.50am
Maury 4.40am 60 Minute
Makeover 5.30am-6am Home
Shopping
BBC THREE
7pm Top Gear 8pm Walking
with Beasts 9pm Doctor Who
Confidential 10pm EastEnders
10.30pm FILM Kidulthood
2005. 12am Family Guy
12.45am Coming of Age
1.45am Bizarre ER 2.15am La
La Land 2.40am The Real
Hustle Undercover 4.10am-
5.10am Coming of Age
E4
7pm Hollyoaks 7.30pm My
Name Is Earl 8pm Friends
9pm Gok’s Fashion Fix 10pm
Supersize vs Superskinny
11.05pm Wife Swap 12.10am
My Name Is Earl 12.40am
Scrubs 1.40am Gok’s Fashion
Fix 2.35am Supersize vs
Superskinny 3.30am Wife
Swap 4.25am Everwood
5.05am-6am Switched
HISTORY
7pm Empire of the Mongols
8pm Becoming Muhammad Ali
9pm Playing the Enemy 10pm
George Best Remembered
12am Playing the Enemy 1am Unique Family 11pm Life or
Ancient Apocalypse 2am The Death: Medical Mystery 12am
Rise and Fall of the Berlin Wall Deaf and Blind Triplets 1am Six
4am-5am Hell’s Battlefield Autistic Kids: My Unique Family
2am Life or Death: Medical
DISCOVERY Mystery 3am Hospital 4am WHEN ROMEO MET JULIET
8pm How Do They Do It? Bringing Home Baby 5am-6am BBC2, 9PM
8.30pm How It’s Made 9pm From Here to Maternity New series. Pupils from two schools
Mystery Investigator: Olly have eight weeks to put on a
Steeds 10pm Into the Dragon’s SKY1 performance of Shakespeare’s Romeo
Lair 11pm The Truth Behind 6pm Terry Pratchett’s Going and Juliet.
the Moon Landings: Stranger Postal 10pm Ross Kemp: Battle
Than Fiction 12am Deadliest for the Amazon: Conclusion.
Catch 1am Bear Grylls: Born The actor travels to South
Survivor 2am How Do They Do America. 11pm Celebrating the
It? 2.30am How It’s Made Goal: A selection of memorable
3am Extreme Engineering World Cup goals. 12am A
3.50am Treasure Quest League of Their Own. With
4.40am World War Two: The Abbey Clancy and Neil
Complete History 5.30am- Morrissey. 1am Ross Kemp:
6am How Does That Work? Battle for the Amazon 1.50am
Road Wars: Tackling Russian BRITAIN’S GOT TALENT – THE
DISCOVERY HOME & scam artists. 2.40am Cold Case RESULTS ITV1, 9.30PM
HEALTH 3.30am Tru Calling 4.20am Ant and Dec announce the public and
7pm Baby Days: Caring for Celebrity Parents’ SOS 4.45am judges' verdicts. Only two acts will
premature twins. 8pm Hospital Hello Goodbye 5.10am-6am make it through to tomorrow's final for
9pm Deaf and Blind Triplets Sell Me the Answer a chance to win £100,000.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
21 39 20 35 21 13 
9 13 11
3 22   
16 24
Place the numbers from 1 to 9 in each empty cell so that each 14  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 45
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 15 16 6

above or to the left of it. 8
You can only use the digits 1-9 12 16 
  and you must not use the
11 12 22 38
11 10    
same digit twice in a block. 34
     The same digit may occur 23 16  
8 29
   more than once in a row or
column, but it must be in a
8
17
10
6 4
11

45
   separate block. 
9 15
  17 12 7


   ACROSS DOWN
1 Characteristic 1 Subject (5)
  
     WORDWHEEL C N
of a clan (6)
6 Nuclear (6)
7 Paper reeds used in
2 Susan ___, Scottish
singer and a contestant
on the third series of
Using only the letters in the Wordwheel, you have Britain’s Got Talent (5)
  ten minutes to find as many words as possible,
B Y
ancient times as a
writing material (6) 3 Characteristic of those
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters O 10 Make clear
and (more)
who are not members
of the clergy (4)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E T comprehensible (9) 4 State of disequilibrium (9)
5 Stony hillside (5)
12 Heals, makes
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
I S better (5) 8 Place where scent is
13 Earth’s nearest made or sold (9)
QUICK CROSSWORD 3 1 2 9 7 8 9 Country, capital
6 3 5 , 1 7 5 $
3 6 5 9 8 4 1 7 2 SUDOKU         
star (3)
15 Declare invalid (5) Moscow (6)
1 8 5 1 2 4 3
4 8 , & $ 5 8 6         
18 Pompous or lofty 11 Not established
2 9 5 3 6 1
8 * / , / & *          by conditioning
$ ( 6 7 , & . ( 5 6 7 5 8 9 3 9 7 in style (9)
         or learning (6)
6 < 5 8 3 2 5 1 2 2 8
        
20 Myth, fable (6)
+
(
6 3 $ 5
%
5 2
, 1
:
$ 1
'
(
7
9
3
4
7 8 4
4 1
6 5 9
3 8
WORDWHEEL          21 Satellite of Jupiter (6) 14 Norwegian dramatist (5)
16 Time after sunset (5)
( 0 ( 5 $ / ' / 7
8 6 9 5 7 1 3 The nine-letter word          22 Adult (6)
3 $ 2 8 1 ' 2
6 1 8 3 9 4 5 2 7          17 Home of a beaver (5)
6 7 $ , 5 6
< ' 6
8
8 , 7 2
8
5 2 5 1 8 9 6
was CASTIGATE          19 Close violently (4)
 Punter
36 CITYA.M. 4 JUNE 2010

| Racing

RACING TRADER | BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THIS WEEKEND’S ACTION FROM EPSOM

Bolger can land

EPSOM TODAY live on BBC2
GOING: GOOD (Good to Firm in places) supplied by RACING POST
DRAW: No significnat bias on round course, although high has good record in big fields over 1m4f [V] visor [B] blinkers [T] tongue strap [H] 1st-time

4.05 INVESTEC OAKS 3YO 1m 4f 10y £208,119 12 1-17 RUMOUSH (33) 9-0 R Hills
[2] M Tregoning Hamdan Al Maktoum

hissecond Oaks
1 133-411 AKDARENA [VH,TH] (23) 9-0 K J Manning
13 1 SAJJHAA (15) 9-0 L Dettori
[13] J Bolger Ire Miss K Rausing
[9] M Jarvis Sheikh Ahmed Al Maktoum
2 1-11 AVIATE (23) 9-0 T Queally
14 12439-1 SNOW FAIRY (16) 9-0 R L Moore
[1] H Cecil K Abdulla
[15] E Dunlop Anamoine Ltd
3 02-21 AWE INSPIRING (35) 9-0 J A Heffernan

with Akdarena
15 211-42 TIMEPIECE (27)(BF) 9-0 E Ahern
[5] A O’Brien Ire D Smith, Mrs J Magnier, M Tabor
[10] H Cecil K Abdulla
4 92-5245 BIKINI BABE (23) 9-0 K Fallon
[12] M Johnston A D Spence 9-2 Aviate, 5 Rumoush, 6 Sajjhaa, Timepiece, 8 Remember
When, 9 Akdarena, 12 Ceilidh House, 14 Gertrude Bell, Snow
5 2110-7 CABARET (23)(BF) 9-0 C O’Donoghue Fairy, 25 Awe Inspiring, Champagnelifestyle, 33 bar
AKDARENA (8-9) 7-2 made all, sent clear from 3f out, stayed on strongly,
[7] A O’Brien Ire Mrs John Magnier, M Tabor & D Smith very easily, bt Indiana Gal (9-9) 7l (9 ran) (Naas 1m2f 52,000 good).
AVIATE (8-12) 11-4 held up, not clear run from over 3f out, headway on
6 1-3 CEILIDH HOUSE (27) 9-0 J Crowley inside just inside final furlong, finished fast to lead final strides, bt Gold

T
HERE is only one place to start when time and have to look elsewhere. Bubbles (8-12) hd (York 1m21/2f (1) £36,901 good).
[3] R Beckett J H Richmond-Watson TIMEPIECE (9-1) 4-7 fav held up in touch, went 3rd halfway, chased leader
looking for a potential winner of the Aviate showed a decent turn of foot to entering final 3f, ridden to lead over 2f out, hanging left and raced awk-
Investec Oaks; the master of Warren land the Musidora on the line last time. 7 10-3 CHAMPAGNELIFESTYLE (30) 9-0 M Hills wardly after, headed final 75yds, btn 1l by Dyna Waltz (8-12) (5 ran)
Place, Henry Cecil. He has won this Tom Queally has opted for her and she CEILIDH HOUSE (8-12) 4-1 chased leader after 2f, led 3f out, soon head-
[8] B Hills Champagne Friday ed and ridden, kept battling on, driven and still pressing leader 1f out,
race eight times in the past and has two must have a big chance. However, the sta- 8 332-11 GERTRUDE BELL (30) 9-0 W Buick
weakened final 100yds, 3rd (btn 3 1/2l) (Lingfield 1m31/2f (1) £28,385
live chances this afternoon with likely ble were worried about her staying 1m2f at good to firm).
[14] J Gosden Ms Rachel D S Hood GERTRUDE BELL (8-12) 5-2 fav raced keenly, chased leader, ridden to lead
favourite Aviate and Timepiece. York, so this step up to 1m4f on a stiffer over 1f out, ran on gamely when pressed inside final furlong, always doing
I tipped up the latter at 7/1 prior to her track is a major worry. enough, bt Acquainted (8-12) 3/4 (Chester 1m31/2f (1) £22,708 good).
9 124-431 MARIE DE MEDICI (33) 9-0 J Fanning REMEMBER WHEN (9-0) 20-1 mid-division, 12th halfway, headway to chase
disappointing performance in the She is vying for favouritism with [6] M Johnston Sheikh Hamdan Bin Mohammed Al Maktoum leaders under 3f out, 4th under pressure over 1f out, ran on final furlong
Lingfield Oaks Trial, but she remains the Rumoush and on breeding Marcus without reaching leaders, 4th of 19 (btn 1/2l) to Bethrah (9-0) (Curragh 1m
10 33-1 MEEZNAH (21)(D) 9-0 T E Durcan 188,500 good to firm).
apple of her trainer’s eye. He knows just a Tregoning’s half-sister to Ghanaati has to RUMOUSH (9-0) 7-1 raced centre, chased leaders, ridden over 1f out,
little more about fillies than I do, but I be another stamina doubt. The yard isn’t [11] D Lanigan Saif Ali & Saeed H Altayer stayed on, 2nd of 10 in group, finished 2nd (btn nose), to Jacqueline
Quest (9-0) (17 ran) (Newmarket 1m (1) £227,080 good to soft).
wasn’t impressed with her attitude last exactly firing on all cylinders, either. 11 2-34 REMEMBER WHEN (12) 9-0 J Murtagh SAJJHAA (8-7) 5-4 fav not well away but recovered steadily to track leaders
after 4f, progress over 2f out, led over 1f out, pushed along firmly and
[4] A O’Brien Ire Mrs John Magnier & M Tabor drew right away, bt Saggiatore (8-7) 7l (13 ran) (Sandown 1m2f (5) £3,238
good).

I GET
This looks to be one of the most open outing, but her trainer doesn’t fire many
Oaks in recent memory and at the prices darts at the Classics and she could literally
the one I want to be with is Jim Bolger’s be anything. In fact, I’d be tempted to buy
AKDARENA at 8/1 with William Hill. She her in a match bet against Rumoush with
has progressed well this season, winning a Sporting Index.

4 PLACES
listed race at Navan before running away Followers of this column will already
with a Group 3 contest at Naas. Unlike know that I’m a fan of Eve Johnson
many of her rivals, she is bred to get the trip Houghton’s THE CHEKA. He wasn’t dis-
and Kevin Manning looks sure to set a graced when finishing fifth in the Group 1
stamina sapping pace from the front. Her Lockinge Stakes behind Paco Boy last time

ON THE
wily trainer has replaced the blinkers with and I’m prepared to give him another
a visor for the first time to try to eke out a chance dropped to Group 3 level. Richard
little more improvement and she looks a Hannon’s VITZNAU has been a measure of
really decent each-way proposition. consistency this season and was unlucky
The fly in the ointment could be Michael not to win a listed race at Goodwood last

OAKS.
Jarvis’s once-raced Sajjhaa who was incredi- time. He is the best horse in what looks a
bly impressive on her debut at Sandown weak Investec Mile at 2.10pm and has run
just over two weeks ago. The trends fanatics well at Epsom in the past. Another top
will say that she can’t win after just one weight with a big chance is Michael Jarvis’s
KINGS DESTINY in the 3.25pm. His reap-
POINTERS... pearance win at Lingfield was very impres-
sive and he should be too good for this lot.
THE CHEKA e/w Epsom 1.40pm (today) Last but not least, the best bet of the day
INVESTEC OAKS VITZNAU e/w
FAME AND GLORY
Epsom 2.10pm (today)
Epsom 2.45pm (today)
has to be FAME AND GLORY in the
Coronation Cup. He doesn’t have Sea The
1 mile 4 furlongs, Epsom 4.05pm, Live on BBC TV. KINGS DESTINY Epsom 3.25pm (today) Stars to worry about this season and
AKDARENA e/w Epsom 4.05pm (today)
11/2 Aviate 14 Snow Fairy Already Advised
although Sariska is a class act, Aidan
6 Rumoush 20 Champagnelifestyle O’Brien’s inmate completely destroyed a
TIMEPIECE Epsom 4.05pm (today) Group 1 field at the Curragh last time.
6 Sajjhaa 33 Awe Inspiring
15/2 Akdarena 33 Cabaret
8 Remember When 33 Meeznah EPSOM TOMORROW live on BBC1
8 Timepiece 40 Marie De Medici GOING: GOOD (Good to Firm in places) supplied by RACING POST
DRAW: No significnat bias on round course, although high has good record in big fields over 1m4f [V] visor [B] blinkers [T] tongue strap [H] 1st-time
12 Ceilidh House 66 Bikini Babe
14 Gertrude Bell
4.00 INVESTEC DERBY (GROUP 1) 10 21-21 REWILDING (17) 9-0 L Dettori
3YO 1m 4f 10y £771,504 [11] M Al Zarooni Godolphin
Each way one-fifth the odds a place 1, 2, 3, 4*. 11 713-1 TED SPREAD (30)(D) 9-0 M Hills
Tatts Rule 4(c) may apply. Non-Runner-No Bet.
1 113-9 AL ZIR (35) 9-0 K Fallon
[2] S bin Suroor Godolphin [7] M Tompkins False Nose ‘N Glasses Partnership

£50 FREE BET

2 51-23 AT FIRST SIGHT (27) 9-0 J A Heffernan 12 1-2 WORKFORCE (23) 9-0 R L Moore
[6] A O’Brien Ire D Smith, Mrs J Magnier, M Tabor [8] Sir M Stoute K Abdulla

3 110-21 AZMEEL (29) 9-0 W Buick S.P. F’CAST: 7-4 Jan Vermeer, 9-2 Workforce, 13 -2 Midas
Touch, 7 Bullet Train, 15 -2 Rewilding, 10 Azmeel, 16 bar
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[5] J Gosden M Al-Qatami & K M Al-Mudhaf
1-21 BULLET TRAIN (28) 9-0 T Queally
MIDAS TOUCH (9-1) 2-1 jt fav held up in rear, moderate 4th halfway, took
closer order 3f out, 3rd straight, ridden to lead over 100yds from finish, ran
on well, bt Address Unknown (9-1) 2l (Leopardstown 1m2f 65,000 good
Simply stake £20 today and we will give you a Free £50 Bet. [1] H Cecil K Abdulla to firm).
AZMEEL (8-12) 7-2 held up, ridden and headway over 1f out, ran on to lead
Quote promo code NP50.** final 150yds, kept on well close home, bt Dancing David (8-12) 1/2l (7 ran)
5 1355-04 BUZZWORD (20) 9-0 A Ajtebi
(Chester 1m21/2f (1) £39,739 good to soft).
[10] M Al Zarooni Godolphin BULLET TRAIN (8-12) 11-4 made all, left clear over 3f out, ridden and drew
well clear well over 1f out, in command after, comfortably, bt Dubawi
6 10-13 COORDINATED CUT (23) 9-0 J P Spencer Phantom (8-12) 21/4l (Lingfield 1m31/2f (1) £36,901 good to firm).
BUZZWORD (9-2) 33-1 raced in midfield, ridden 21/2f out, stayed on under
[9] M Bell Lawrie Inman pressure final furlong, never dangerous, 4th of 15 (btn 41/2l+) to Lope De
Vega (9-2) (Longchamp, France 1m good).
7 216-33 HOT PROSPECT (28) 9-0 P Robinson WORKFORCE (9-0) 2-1 held up towards rear, effort over 4f out, pushed
along, hanging left over 3f out and bit went through mouth, ridden and
[3] M Jarvis A D Spence headway when hung left 2f out, soon driven and kept on inside final fur-

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long to take 2nd last 100yds, btn 31/4l by Cape Blanco (9-0) (5 ran) (York
8 411-1 JAN VERMEER (13) 9-0 J Murtagh 1m21/2f (1) £85,155 good to firm).
JAN VERMEER (9-8) 6-4 fav chased leaders in 3rd, travelling best straight,
[12] A O’Brien Ire M Tabor, D Smith & Mrs John Magnier led over 1f out, soon quickened to assert, very easily, bt Bobbyscot (9-1)
13/4l (7 ran) (Curragh 1m2f 35,750 good to firm).
*Normal place terms apply if 2 or more non-runners.**Free Bet is a win single added to your account on settlement of first bet. Free Bet must be on a different event 9 314-1 MIDAS TOUCH (27) 9-0 C O’Donoghue REWILDING (9-0) Evens fav tracked leaders in 5th, progress over 2f out,
to the initial stake. Free Bet stake not included in any winnings/returns, valid for 7 days. Correct promo code must be used. All prices are subject to fluctuation. pushed into lead over 1f out, soon clear, easily, bt Prizefighting (9-0) 4l (9
Prices correct as at 6.00pm yesterday.William Hill rules apply. Over 18s only. FOR ADVICE AND INFORMATION VISIT WWW.GAMBLEAWARE.CO.UK [4] A O’Brien Ire Mrs Magnier/M Tabor/D Smith/Denford Stud ran) (Goodwood 1m3f (1) £22,708 good).
CITYA.M. 4 JUNE 2010
Midas Touch the golden
Derby bet for O’Brien
W
ho do I think is the most likely
winner of the Investec Derby? It
has to be Jan Vermeer. Who do I
think is the best betting propo-
sition? It has to be MIDAS TOUCH. Aidan
O’Brien hasn’t won English racing’s pre-
mier Classic since 2002, but that looks set
to change tomorrow and his supposed sec-
ond string looks terrific each-way value at
6/1 with William Hill.
The ante-post Derby picture has
changed dramatically in recent weeks
since the withdrawal of long-term market
leader St Nicholas Abbey. Jan Vermeer was
trading at around 20/1 for this race before
making his successful seasonal reappear-
ance at the Curragh and, even though he
shortened drastically immediately after
the race, it still appeared his target would
be the French Derby. However, in the
space of about 10 days he has rattled to
the top of the betting as he has become
the chosen mount of stable jockey Johnny
Murtagh in St Nicholas Abbey’s absence.
He did look mightily impressive when
winning that particular Group 3 at the
Curragh without even coming off the bri-
dle. Yet, even though he had to carry a 7lb
penalty, the quality of the field he beat
has to be questioned. I’d far rather concen-
INSIDER
the
O
n 1st June I normally have two things on
my mind, firstly, “Where is my top hat?”
and secondly, “So-and-so will be my
Derby bet”. This year was different.
Worryingly I have already found the hat and
for some strange reason it no longer fits like a
glove. I think failing hair follicles are the issue!
Also I couldn’t pick my Derby winner.
Perhaps it was a blessing in disguise as this
week we seem to have had more ‘refusals’
trate on his rock solid two-year-old form
which included a comprehensive win in
the Group 1 Criterium International. As a
son of Montjeu, he is bred to win a Derby
and he hasn’t shown anything on the race-
course that suggests he is not up to the
task. The one thing that puts me off is the
price and I simply cannot be backing him
at as short as 13/8.
Midas Touch comes into the race on the
back of arguably a far more impressive
trial. Even though he only faced three
other rivals in the Derrinstown, the race
was run in an exceptionally quick time
and he showed true battling qualities in
the straight having looked in trouble. The
Ballydoyle team were under a slight cloud
at the time and I expect plenty of improve-
ment from the son of Galileo. He finished
behind his better fancied stablemate Jan
Vermeer on two occassions as a two-year-
old, but arguably is better bred for the
‘Epsom challenge’ and is available at over
three times the price.
Of the others, Workforce, Bullet Train
and Rewilding all look set to run big races,
but just don’t look like Derby winners
waiting to happen. If there is to be an
upset, then Michael Bell’s Coordinated
Cut could outrun his odds of around 25/1
oddschecker.com
All the latest odds and £100s of bookie freebets
than at the Grand National. A field of 12
should be assembled by 4pm tomorrow after-
noon but with the weather being a little
unpredictable at the moment we may have
less at off-time.
My grandfather once told me to pick the
best horse and a likely stayer and back both.
Based on those criteria we can do better and
just pick JAN VERMEER (3%).
The Investec Oaks this afternoon at
37
Strongly-fancied:
Midas Touch
Picture: ACTION
IMAGES
on Betdaq. He was in front for a long time
in the Dante and will be a different horse
with some cover.
The Derby day card is always fiendishly
difficult, but Alain de Royer-Dupre’s filly
REGGANE should have far too much class
for the rest of the field in the Group 3
Princess Elizabeth Stakes. She has the
Godolphin pair of Antara and
Aspectoflove to beat, but Saeed bin
Suroor’s horses haven’t been running well
lately. Reggane was second to Ghanaati at
Royal Ascot last year and on that form she
would eat this lot for breakfast.
Epsom’s ‘Dash’ (3.15pm) is the quickest
five furlongs anywhere in Europe, so you
need a horse who can live with the fierce
pace. Chris Wall’s FATHOM FIVE has won
twice over this course and distance and
finished sixth in this race two years ago
on his only other appearance at the track.
He has an excellent draw in stall 18 right
against the stands rails and Wall’s stable is
bang in form at the moment.
POINTERS...
REGGANE Epsom 2.40pm (tomorrow)
FATHOM FIVE e/w Epsom 3.15pm (tomorrow)
MIDAS TOUCH e/w Epsom 4.00pm (tomorrow)
4.05pm looks a real cracker. None of the run-
ners seem outstanding but it is definitely high-
ly competitive on paper. Henry Cecil has been
in terrific form so far this season and I would-
n’t be surprised to see him notch another win-
ner or perhaps a one-two. However, I’m going
to be backing an Irish raider in the form of
Jim Bolger’s AKDARENA (3%). She has won
twice this year and can make it three times
lucky this afternoon.
 Sport
38 CITYA.M. 4 JUNE 2010

Results
CRICKET
TRIANGULAR TOURNAMENT: India v Zimbabwe (Harare
Sports Club); India 194-9 (R A Jadeja 51) v Zimbabwe 197-3
(B R M Taylor 74, H Masakadza 66). Zimbabwe (2pts) beat
Shahzad left
to sweat over
India by 7 wickets.
FRIENDS PROVIDENT T20 - NORTH DIVISION:
Northamptonshire v Warwickshire (Edgbaston);
Northamptonshire 147-5 (M B Loye 54) v Warwickshire 151-
2 (D L Maddy 88).Warwickshire (2pts) beat
Northamptonshire by 8 wickets. Derbyshire v Yorkshire
(Headingley Carnegie); Derbyshire 222-5 (L L Bosman 94, C
F Hughes 65, C J McKay 4-33) v Yorkshire 157. Derbyshire

Test debut
(2pts) beat Yorkshire by 65 runs.
SOUTH DIVISION: Kent v Hampshire (The Rose Bowl); Kent
114-9 v Hampshire 117-5. Hampshire (2pts) beat Kent by 5
wickets. Sussex v Middlesex (Lord’s); Sussex 146-6 v
Middlesex 118-6. Sussex (2pts) beat Middlesex by 28 runs.
FOOTBALL
INTERNATIONAL MATCHES
Germany .......................(0) 3 Bosnia-Herzegovina ...(1) 1
Lahm 51 Dzeko 15
Yorkshire pace man Shahzad was
▲

Schweinsteiger 73 (pen), 78 (pen) Att: 48,000 CRICKET

Italy .................................(0) 1 Mexico..................................(1) 2
BY JON COUCH 12th man for the eight-wicket first
Bonucci 89 Vela 17 Test victory at Lord’s last week, while
Att: 30,000 Medina 84
Spain................................(0) 1 South Korea.....................(0) 0 CAPTAIN Andrew Strauss says Nottinghamshire’s Sidebottom was
Jesus Navas 86 Att: 8,000 England will make an 11th hour deci- called into the squad as a replace-
GOLF sion on team selection ahead of the ment for Bresnan after helping
THE CELTIC MANOR WALES OPEN (The Celtic Manor second Test with Bangladesh, which England triumph at the recent World
Resort, City of Newport, Wales)——1st rnd (Gbr & Irl unless starts this morning. Twenty20.
stated, par 71): 65—C Wood; 66—A Dodt (Australia); B Strauss and the selectors are torn But Strauss insists being in the
Dredge; 67—R McEvoy; R Davies; R Jacquelin (France); E
Molinari (Italy); 68—R Ramsay; S Hansen (Denmark); F between handing Ajmal Shahzad a squad from the start does not give 24-
Delamontagne (France); D Lee (NZ); R Rock; E Tage Test debut for the Old Trafford clash, year-old Shahzad the advantage over
Johansen (Norway); S Thornton; G Fdez-Castano (Spain); or recalling Ryan Sidebottom in place his more experienced team-mate.
69—D McGrane; G Maybin; M Siem (Germany); D Clarke; P
Larrazabal (Spain); J Manuel Lara (Spain); T Bjorn of the injured Tim Bresnan. “You pick the right side to win you
(Denmark); N Fasth (Sweden); 70—F Molinari (Italy); C “They both bring different attrib- a Test match,” he added. “We’ll be
Gane; J Kingston (S Africa); B Barham; O Wilson; M Kaymer utes that we are weighing up at the looking at that tonight and like I said
(Germany); C Carranza (Argentina); A Noren (Sweden); S moment,” Strauss admitted. “Ryan both have very obvious skills and
Lowry; C Montgomerie; P Price; M Lafeber (Holland); S
Gallacher; M Angel Jimenez (Spain); J Ruth; R McGowan. Sidebottom is obviously an experi- strengths they can bring to the side
TENNIS enced campaigner, we know pretty and we have just got to weigh up
FRENCH OPEN (Paris, France)— —Women’s Singles Semi-final: much what we are going to get from more which one will help us win this
(7) S Stosur (Aus) bt (4) J Jankovic (Ser) 6-1 6-2, (17) F him. That experience might be valu- Test match.”
Schiavone (Ita) bt (5) E Dementieva (Rus) 7-6 (7-3) ret, able on this wicket. Opener Strauss returned with
Men’s Doubles Semi-final: (3) L Dlouhy (Cze) & L Paes (Ind) “On the other hand, Ajmal is new knocks of 83 and 82 at Lord’s having
bt (10) J Knowle (Aut) & A Ram (Isr) 6-4 6-2, (2) D Nestor
(Can) & N Zimonjic (Ser) bt (4) W Moodie (Rsa) & D Norman and exciting and has been in the sat out the Bangladesh tour earlier
(Bel) 6-0 6-3. Mixed Doubles Final: (6) K Srebotnik (Slo) & N squad a while and this might be an this year, and admitted he was satis-
Zimonjic (Ser) leads Y Shvedova (Kaz) & J Knowle (Aut) 2-1. opportunity to have a look at him. fied with his own performance.
“These are the two arguments we “It was good to get a couple of 80s,
TODAY’S DIARY are weighing up at the moment, it’s disappointed not to get a hundred,”
(Football 7.45pm unless stated) not a bad situation to be in, we are he added. “You want to settle back
International Match
France v China PR (5pm) ........................................................................................ pretty confident that both can do a quickly and as captain you want to
Japan v Ivory Coast (11.20) .................................................................................. good job here at Old Trafford.” lead by example.” Shahzad was 12th man for the first Test at Lord’s. Picture: ACTION IMAGES
Luxembourg v Faroe Islands (6pm) ....................................................................
Slovenia v New Zealand............................................................................................

Sizzling Stosur reaches first slam final

CRICKET
Second Test Match—day 1 of 5: England v Bangladesh (Old
Trafford).
Friends Provident T20 - South Division: Glamorgan v
Gloucestershire (The SWALEC Stadium). North Division:
Durham v Lancashire (Riverside). Worcestershire v Yorkshire
(New Road).
LV County Championship - Division One—day 1 of 4:
mer world No1 Jelena Jankovic. Brisbane-based Stosur went into mark win inside an hour.
Warwickshire v Somerset (Edgbaston), Kent v
Nottinghamshire (Tunbridge Wells), Hampshire v Essex (The FRENCH Schiavone was handed an even eas- the semi-final in excellent form, hav- Schiavone took her place in the
Rose Bowl). Division Two—day 1 of 4: Middlesex v
Northamptonshire (Lord’s), Surrey v Leicestershire (Brit OPEN 2010 ier path when her opponent Elena
Dementieva retired injured after los-
ing seen off previous winners Justine
Henin and Serena Williams in succes-
final after fifth seed Dementieva
broke down with a calf problem that
Insurance Oval). BY FRANK DALLERES
RUGBY LEAGUE ing the first set of their semi-final. sive rounds. had troubled her in the quarter-
THE women’s game will have a new Both Stosur, 26, and Schiavone, 29, And she picked up where she left finals. The Russian had just lost the
engage Super League (8pm):: Hull v St Helens, Leeds v
Wakefield, Salford v Warrington. Grand Slam champion tomorrow now face by far the biggest match of off against Jankovic, wrapping up the first set tie-break and said afterwards
RUGBY UNION
after Sam Stosur and Francesca their lives, neither having reached opening set for the loss of just one that she had torn the muscle and
Schiavone booked their places in the the final of a Grand Slam before. game in 24 minutes. might miss Wimbledon.
International Match (7.45):: Ireland v Barbarians.
final at Roland Garros. In fact, Schiavone is the first Italian The Serb could offer little more A jubilant Schiavone said: “I’m very
Australian Stosur, the No7 seed, woman ever to go that far, while the resistance in the second, and despite happy, I’m starting to feel like this is
SPORTS EDITOR JON COUCH continued her outstanding French last of Stosur’s compatriots to do so earning an early break lost the next really history. They are very happy in
email sport@cityam.com Open with a 6-1, 6-2 trouncing of for- was Wendy Turnbull in 1980. six games as Stosur clinched a land- Italy also.”

We’ll learn quickly to stun Wood boosts SPORT | IN BRIEF

Wallabies, claims Easter Ryder Cup hope Earls blow for Ireland
RUGBY UNION: Ireland have suffered
another blow ahead of their summer tour
The Cardiff Blues star had been
recalled by Wales coach Warren Gatland
following his infamous golf buggy inci-
of New Zealand and Australia after Keith dent during the Six Nations
GOLF
▲

Earls was ruled out with a groin injury. Championship.

The Munster back has been suffering But a torn thigh muscle in training on
“Our basics were good but we lost it CHRIS WOOD gave Ryder Cup captain with the on-going problem before even- Tuesday means he has now had to be
▲

RUGBY UNION
BY JON COUCH a bit towards the end. At times our Colin Montgomerie a welcome nudge tually pulling out during a team training replaced by uncapped Scarlets flanker
physicality in defence let us down after firing a sizzling six-under-par 65 camp in Limerick. Rob McCusker.
NICK EASTER believes England can up and we tried to play too much in our in the Wales Open at Celtic Manor. Earls, who is being replaced by
the ante when they head Down 22 but that’s game management The course, which hosts the tourna- Connacht’s Gavin Duffy, joins Paul Zimbabwe stun India again
Under for their summer tour of which we can, and will, address. We’ll ment in October, proved easy meat for O’Connell, Rory Best and Kevin CRICKET: India suffered a second shock
Australia and New Zealand. learn quickly. the 6ft 5in Englishman, who raced to McLaughlin in missing the tour, while defeat at the hands of Zimbabwe after
The Harlequins No8 captained the “We’ve made this a six-game tour the top of the leaderboard, one shot Stephen Ferris, Luke Fitzgerald and Denis
crashing by seven wickets in their trian-
side to an encouraging 35-26 win over and importantly we started with a clear of Australia’s Andrew Dodt and Leamy sit out the game through injury. gular series match.
the Barbarians at Twickenham on win. But it’s the tough games away home favourite Bradley Dredge. The Indians, who lost by six wickets
Saturday and now has the six-game from home that you remember. “The Ryder Cup is completely in the Powell recall curtailed on Friday, made just 194 from their 50
series, including two Test with the “The Aussies are competitive and back of my mind,” Wood said. “I’m RUGBY UNION: Wales back-row forward overs with Greg Lamb taking 3-45.
Wallabies, in his sights. it’s a hard place to go. They’ve been just looking to win and I’ve just got to Andy Powell has been ruled out of Hamilton Masakadza (66) and
“We’re far from where we want to doing very well in the Super 14 and stay patient.” Saturday’s clash with South Africa and Brendan Taylor (74) put on 128 for the
be but there were some good signs,” they’re exactly the kind of team we Captain Montgomerie, meanwhile, the subsequent two-Test tour of New first wicket as Zimbabwe reached their
Easter said. need to test ourselves against.” shot a one-under-par 70. Zealand. victory target with 11.4 overs to spare.
CITYA.M. 4 JUNE 2010 Sport | Football 39

James receives a
boost through new
poster campaign
WORLD CUP
2010
BY JON COUCH
ENGLAND coach Fabio Capello
dropped the strongest hint yet that
David James will be his No1 goalkeep-
er for the World Cup – through an
innovative advertising campaign.
The 39-year-old Portsmouth stopper
was back between the sticks for
Sunday’s 2-1 friendly win over Japan,
and was yesterday handed the No1
shirt for this month’s showcase in
in South Africa.”
Capello also boosted Peter Crouch’s
hopes of a first-team start after the
Tottenham striker was handed the
No9 shirt, while Chelsea’s Joe Cole
was given No11.
SQUAD NUMBERS: 1 David James, 2
Glen Johnson, 3 Ashley Cole, 4 Steven
Gerrard, 5 Rio Ferdinand, 6 John Terry, 7
Aaron Lennon, 8 Frank Lampard, 9 Peter
Crouch, 10 Wayne Rooney, 11 Joe Cole, 12
Robert Green 13 Stephen Warnock, 14
Gareth Barry, 15 Matthew Upson, 16 James
Milner, 17 Shaun Wright-Phillips, 18 Jamie
Carragher, 19 Jermain Defoe, 20 Ledley

Dalglish ideal man to South Africa.

News of Capello’s squad listings
were leaked through an eye-catching
poster campaign by kit manufactur-
ers Umbro, who erected the appropri-
ate squad numbers in the home
King, 21 Emile Heskey, 22 Michael Carrick,
23 Joe Hart.

rebuild troubled Reds neighbourhoods of each of England’s

Liverpool icon Phil Thompson tells Jon Couch why day footballer and has brought him
back to the club he loves.”
Kenny is the perfect replacement for Rafael Benitez Thompson, himself, has been criti-
cal of Benitez while working as a pun-
dit for Sky Sports’ Soccer Saturday
this season, but admits he has an ele-
23 squad members.
James’ No1 sat pretty in his home
town of Welwyn Garden City, while
his rivals Robert Green and Joe Hart
had to settle for No12 and No23
respectively.
An Umbro spokesman told City
A.M.: “Focusing around the ‘Umbro,
Tailored by’ concept, we thought it
would be interesting to see where
each of the players were tailored,
born and raised.

L
IVERPOOL legend Phil
Thompson believes Kenny
Dalglish is the ideal man to take
them forward in the wake of
Rafael Benitez’s exit.
Dalglish, 59, has not managed a
side since leaving Celtic 10 years ago,
but ex-assistant boss Thompson insists
his former Anfield team-mate is the
perfect candidate to lead the club
through uncertain times at board-
room level.
With co-owners Tom Hicks and
George Gillett admitting their inten-
tion to sell the club, Thompson is call-
ing on the ex-Reds striking hero to
take the reins on a temporary basis, at
least until new owners are found.
“Kenny is the ideal man to mind
the office for a while,” Thompson told
City A.M. “He’s the safest pair of hands
Liverpool could ask for right now and
it would be an appointment which
everyone in the city would like, thus
giving the club some much-needed
stability. If it works, what a fantastic
statement that would be, if it doesn’t,
well it is only a temporary measure.”
Dalglish played over 515 games for
the Reds, scoring 231 goals, while
managing the club for six years from
1985. After spells at Blackburn,
Newcastle and Celtic, Dalglish spent
nine years out of the game before
Benitez lured him back to Liverpool to
work with the club’s academy.
His time away has sparked sugges-
tions that he may out of touch with
the cut and thrust of the Premier
League, but Thompson, himself a
stalwart at Anfield for 13 years,
insists the Scot is in perfect work-
ing order. “He’s a true student of
the game,” he added. “He loves his
football and has a vast knowledge
of the game, whether it be
here or across Europe.
“Being with the acad-
emy has kept him in
touch with the modern-
ment of sympathy for the out-going
Spaniard. “He will be extremely well
remembered by everyone at Anfield.
Winning the Champions League in
Istanbul in 2005 was a night no-one
will ever forget.
“I can sympathise with him but after
finishing second in the league last sea-
son, we’ve only just managed to scrape
into the Europa League in this, and
after six years – the same as Gerard
Houllier and myself spent in charge –
you get the feeling the time has come
for him.
“I just hope, for everyone’s
sakes, that it is done sooner
rather than later and with as
much dignity as possible.”
Phil Thompson was leading a penalty
shootout in the Square Mile as
part of the build-up to the
Standard Chartered
Great City Race which
takes place on
Thursday 15 July.
“It’s the first time that a campaign
has coincided with such a team
announcement and we think the con-
cept works perfectly as the nation
comes together in support of the boys
WORLD CUP NEWS | IN BRIEF
USA hit by Altidore injury blow
ENGLAND’S opening-match opponents
USA suffered an injury blow yesterday
when striker Jozy Altidore was hospi-
talised with an ankle problem.
Altidore, who spent last season on
loan at Hull, underwent an X-ray and was
diagnosed with a sprain.
The 20-year-old, who has nine goals in
25 international appearances, is a doubt
for USA’s final warm-up match against
Australia tomorrow. The Villarreal player,
a regular starter for his country, faces a dismissed criticism, saying there were
race to be fit to face England on 12 June. similar complaints, which have since
Goalkeeper ploy backfires
NORTH KOREA’S tactic of naming an
that Kim Myong-Won will only be
allowed to play in goal, rather than his
usual position of centre-forward.
A Fifa statement read: “The three play-
ers listed as goalkeepers can only play as
goalkeepers during the World Cup and
cannot play outfield.”
Dunga blasts Fifa in ball bust-up
BRAZIL boss Dunga has hit back at Fifa
in the row over the new World Cup ball.
Fifa secretary general Jerome Valcke
evaporated, about the 2006 model.
But Dunga said: “He needs to play. If
he played with the ball he would have a

Benitez exit sparks protests

extra striker instead of a third keeper has different opinion. He is a guy who never
turned into a spectacular own goal. got on the field. We will give him the ball
World chiefs Fifa have warned Korea to see if he can control it.”

Gerrard hails Capello mentality

▲

PREMIER LEAGUE feeling that what was effectively a
BY FRANK DALLERES sacking was also motivated by a
desire to cut costs, with the club
ANGRY Liverpool fans burned £350m in debt and seeking a buyer.
Aston Villa manager Martin O’Neill
was the favourite to succeed Benitez
last night, with Dalglish and
Fulham’s Roy Hodgson also fancied. took over team affairs in February
▲

American flags outside Anfield last
night in protests against the club’s US
owners following the departure of
manager Rafael Benitez.
Benitez (right) ended his six-year
reign on Merseyside by accepting a
£6m pay-off to terminate a £4m-a-
year contract that still had four
years left to run.
The Spaniard’s departure
comes after a dire season in
which the Reds finished sev-
enth in the Premier League
and suffered early exits
from the Champions League
and FA Cup. But there is a
Benitez remained a hugely popular
figure among fans, despite deteriorat-
ing results and a mixed record in the
transfer market. And hundreds of
supporters showed their alle-
giance to Benitez yesterday by
assembling outside the stadium
and directing their anger at joint
owners Tom Hicks and
George Gillett.
They also targeted man-
aging director Christian
Purslow, who, along with
former boss Kenny
Dalglish, has been aksed
to find a replacement.
In a statement that emphasised his
close bond with the Reds faithful,
Benitez, who looks bound for Inter
Milan, said he was “very sad” to leave.
“I’ll always keep in my heart the
good times I’ve had here, the strong
and loyal support of the fans in the
tough times and the love from
Liverpool,” he said. “Thank you so
much once more and always remem-
ber: You’ll never walk alone.”
Reds chairman Martin Broughton
added: “Rafa will forever be part of
Liverpool folklore but after a disap-
pointing season both parties felt a
fresh start would be best for all.”
WORLD CUP
STEVEN GERRARD says coach Fabio
Capello has given the England squad
a “winning mentality”.
Capello’s squad touched down in
Johannesburg to begin their World
Cup preparation yesterday ahead of the
first match against USA, on 12 June.
Gerrard has been a mainstay of the
England squad since the days of previ-
ous coach Steve McClaren, who was
labelled the “wally with the brolly”
after failing to get England through
qualification for Euro 2008.
But the Liverpool midfielder says
right from the moment the Italian
2008, he has changed the dynamic of
the side. “From when the manager
first took over, there has been a
change,” Gerrard said.
“I think every player has gone on
record to say that it was a tough time
to play for England a couple of years
ago as there was pressure. The man-
ager has given us a winning mentali-
ty and confidence.”
Gerrard, 30, refuses to look too far
ahead in the competition, but is con-
fident England can top their group.
“I think we can get out of the group
as winners and then we take the last-
16 challenges on,” he added.