Você está na página 1de 32

Issue 1,173 Friday 9 July 2010

BUSINESS WITH PERSONALITY FREE


www.cityam.com

BATTLE OF BIKINIS FOR


THE BEACH
SIZZLE IN

THE BANKS
BANKING
SOME
GREAT
COZZIES
P26

BY VICTORIA BATES AND DAVID HELLIER


SOME OF the City’s most powerful names are
gearing up for an almighty bidding battle over
state-controlled banking assets including
Northern Rock and parts of Lloyds Banking
Group.
Lloyd’s of London chairman Lord Levene and
City grandee Sir David Walker will take on
Richard Branson’s Virgin money in a fight to
create a new nationwide high street banking
giant.
The high-profile pair are set to list a new
vehicle on the Alternative Investment Market
in as little as three weeks’ time, with a view to
acquiring some or all of the state asset pile
after the IPO.
Sources close to Virgin Money yesterday
said the firm would still be “very much in the
hunt” for the assets despite the emergence of
a fresh contender. But tensions between the
rivals will be heightened by the revelation
that Virgin’s former chairman, the late Sir
Brian Pitman, had also played a key role in the (L-r) Bank raiders Walker, Levene and Virgin Money’s Gadhia Pictures: Micha Theiner/ CITY A.M, REUTERS
+5HIF85MH<"I@M
setting up of Levene and Walker’s venture.
City A.M. can reveal that Pitman, a former [Gadhia, Virgin Money’s chief executive], our deals. But though talk in the City yesterday
B>CM5GD97H57I@5F85M
Lloyds Bank chief executive, was a senior con- management team and business model were was that the new bank’s top team had not yet C:F57=B;5B8GIAA9F
sultant to the project prior to joining Virgin, something he wanted to be a part of.” managed to secure meetings with either
with those at the heart of the discussions con- Though they aim to raise just £50m at IPO, Northern Rock or Lloyds, a spokesman for the :9GH=J=H=9G:95HIF=B;
firming that he had been instrumental in Levene and Walker have already been able to venture insisted the “calibre of the team and
“reviewing and validating the business plan”. use their influence to secure £2bn of funding personalities mean there will be no problem
A Virgin Money spokesman played down from a group of 10-12 major City institutions, with taking them seriously”.  ,<9o A=@@=CB
talk of a conflict of interest between the ven- including Aviva Investors, F&C Asset Levene and Walker are expected to explore #=B;9CF;9.!
tures, but he confirmed that the firm had Management and Invesco. bids for a host of retail bank assets.
been aware Pitman was involved in other proj- Levene will take up the chairmanship of the Investment bank Cenkos and boutique advi- )I99B@=N569H<
ects at the time of his appointment. new bank, while Walker will be a non-execu- sory firm Kinmont are both advising on the +H5?9GGDCBGCF98
“It makes absolute sense that someone of tive director. A raft of other respected City fig- project. After the Aim listing, Cenkos will act
Sir Brian’s experience and stature would be ures have also agreed to join the board. Levene as nominated adviser (Nomad) to the as yet- 6M9H:5=F
consulted on a project like this,” he said. “But is said to have been “extremely active” in the unnamed firm, while Kinmont will be its
ultimately he decided that Jayne-Anne past three to four weeks in pursuing potential broker.   KCB89F:I@
F5B;9C:

Advisers will get a slice of the limelight GIAA9F


7C7?H5=@G

 $=J9AIG=7
ADVISING on Lord Levene and Sir David Gavin Kelly’s Kelly, a larger-than-life Scotsman famed
Walker’s new retail bank is a particularly Kinmont has for throwing some of the business world’s 5:H9FF57=B;
lucrative piece of business for Cenkos and advised the best parties, has offices near to Berkeley CBH<95B8GH5B8
Kinmont, who have already been hard at new vehicle Square. His firm’s business spans public
work preparing the team for what one and private company, private equity and
insider described as “a pugnacious couple debt capital markets advisory services.
of months” ahead. Though small, the firm does have a ,=7?9HG:FCAoD9FD9FGCB
Cenkos corporate broker Paul Hodges has track record in helping to establish new
so far been instrumental in leading the financial services ventures. =B98=B=B;:FCAo =B7
58A=GG=CB
fundraising charge that has brought in It previously worked on setting up envi-
around £2bn of investment from the insti- ronmental exchange group Climate ,C6CC?,75@@   
tutions, aided and abetted by his counter- Exchange, bought out recently by US rival CFJ=G=H5G7CH
7C
I?
part Ian Soanes over in the firm’s corporate IntercontinentalExchange, and also
finance department. advised on the setting up of London-listed
Hodges, a former composite insurance Thrust into the limelight as the other insurance business Lancashire.
analyst, joined Cenkos in March 2005. He half of the advisory team is Kinmont, a bou-
previously worked under Terry Smith at tique set up by former UBS corporate finan-
Collins Stewart. cier Gavin Kelly in 2003. Certified Distribution
5/04/10 - 2/05/10 is 106,285

FTSE 100 ▲ 5,105.45 +90.63 DOW ▲ 10,138.99 +120.71 NASDAQ ▲ 2,175.40 +15.93 £/$ 1.52 unc £/¤ 1.20 unc ¤/$ ▲1.27 +0.01
2 News CITYA.M. 9 JULY 2010

We won’t run out of oil any time soon NEWS | IN BRIEF


Swiss central bank down €7.5bn
The Swiss National Bank has possibly
suffered paper losses of up to SFr10bn
But one thing is clear: the peak oil his bet. He will have to hand the cash football players. But are teams able to (€7.5bn or £6.28bn) after interventions
theorists, who constantly predict that over and eat humble pie. appropriate any of the returns to in the currency markets to restrain the
prices are about to explode, keep on The oil industry is having to spend employing two-footed players? The value of the country’s currency. The cen-
getting it wrong but are never suffi- vast amounts to keep production at answer, it seems, is no: the proportion tral bank is expected to report a big loss
ciently held to account by a gullible elevated levels; it is becoming harder of two-footed players in a team does in its second-quarter accounts, which
media. As Mark Perry, a professor at to find new sources of oil. Demand not significantly affect the number of come out in mid-August.
the University of Michigan, reminds has been low, thanks to the recession. points the team gets at the end of the
us, it was five years ago that Houston- But the biggest driver of prices over season. UKFI executive to step down
EDITOR’S LETTER based Matthew Simmons (a leading the next few years will be political fac- Here’s another fun stat. New salary Sam Woods, the chief operating officer
peak oil man) and the unusually sen- tors – such as bans on drilling – rather contracts for Premier League referees at UK Financial Investments, which
ALLISTER HEATH sible New York Times columnist John than any inherent scientific or tech- have improved their performance as oversees the government’s bank stakes,
Tierney bet $5,000 on the price of oil. nological constraints. measured by the number of yellow is to step down, making him the fourth
THERE is only one rule when it comes The wager was based on the average and red cards issued per game. The person to leave the organisation in the
to the availability of oil: experts are daily price for 2010, adjusted for infla- ECONOMICS OF FOOTBALL research reveals that, since the intro- past seven months. Woods is now work-
always convinced it will run out – but tion. If the inflation-adjusted oil price Freakonomics, eat your heart out. The duction of the new contracts in the ing as secretary to the government-
it never seems to. Brent crude is now averages $200 or more, Simmons latest issue of the London School of 2001/02 English football season, refer- appointed commission into whether
at close to $75 a barrel, which is high wins $10,000, and if the average price Economics’ CentrePiece contains ees have issued half a card less per retail and investment banking should be
but hardly excessively so by historical this year is less than $200, Tierney some fascinating insights on the game. Other studies have shown a separated in the UK, he said in a tele-
standards. There will be upwards wins. As Perry points out, average oil World Cup and football, from an eco- strong negative relationship between phone interview to Bloomberg. He
price pressure in the aftermath of the prices this year won't even be any- nomic perspective. Among the find- the number of cards issued and sub- refused to comment further.
BP disaster and the clampdown on where close to $100, and will probably ings are that two-footedness – the rare jective assessments of referees’ per-
new drilling, though if prices do rise average less than $70, far below the ability to use both feet equally well to formance by expert panels. On Hamleys is back in the black
enough the incentive to find more of $200 price predicted by Simmons. pass, tackle and shoot – commands a average, referees show three cards per Hamleys has announced its first annual
the black stuff will increase commen- Only a total catastrophe would ensure large wage premium. Research by game: this research finds that the profit in six years. The famous toy store
surately, especially in countries with a the price would average $330 per bar- Alex Bryson and colleagues finds a new contracts have led to a reduction reported a £100,000 pre-tax profit in
more liberal exploration policy, and rel for the rest of 2010 – which is what clear link between top performance of around one sixth. Happy days. the year to 27 March, compared with a
this ought to keep a lid on prices. would be needed for Simmons to win and high wages among professional allister.heath@cityam.com £4.1m loss a year ago.

7th Floor, Centurion House,


24 Monument Street,
London, EC3R 8AJ
ECB reassures
over Eurozone
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
ECONOMY bloc.

Associate Editor David Crow


Lifestyle Editor Zoe Strimpel BY EMMA SADOWSKI A double dip into recession “is not Spain’s Jose Luis Rodriguez Zapatero said reform was important Picture: REUTERS
Art Director Darren Soulsby at all what we are observing”, argued

Spain to privatise banks


Pictures Alex Ridley EUROPEAN Central Bank (ECB) presi- Trichet, who said the decision to pub-
dent Jean-Claude Trichet yesterday lish stress test results on European
Commercial dismissed fears that the Eurozone banks was a welcomed move and that
Sales Director Jeremy Slattery could be faced with a double-dip action should only be taken where
Commercial Director Harry Owen recession after the bank held the problems arise.
Head of Distribution Nick Owen bloc’s interest rates at one per cent. “Sound balance sheets, effective
The ECB has held its main rate at risk management and transparent ECONOMY bled savings and loans banks to sell

Distribution helpline one per cent for 14 months but robust business models are key to up to 50 per cent of their equity to
If you have any comments about the distribution BY HARRY BANKS
of City A.M. Please ring 0207 015 1230, or email Trichet said that he expects the strengthening banks’ resilience to private investors.
distribution@cityam.com Eurozone’s economic recovery from shocks and to ensuring adequate THE SPANISH government will today Under current rules, cajas are
the crisis to be moderate and uneven access to finance,” Trichet said. approve an overhaul of savings-bank restricted to selling non-voting securi-
Editorial Statement in pace. MORE ECONOMICS: P10 regulations, opening the door to pri- ties known as “participative quotas”,
This newspaper adheres to the system of The Eurozone economy would per- vate ownership of the mutually as well as normal shares in listed
self-regulation overseen by the Press Complaints form “much better” in the second ECB president Jean- owned savings banks or “cajas,” industrial holding subsidiaries.
Commission. The PCC takes complaints about the quarter, according to Trichet, who Prime Minister Jose Luis Rodriguez Zapatero, who has come under
editorial content of publications under the Editor’s Claude Trichet
suggested that the ECB might lean Zapatero said yesterday. immense pressure this year to speed
Code of Practice, a copy of which can be found at
www.pcc.org.uk towards reducing a bond buying pro- welcomed the move to “This is the most important reform up economic reforms, said the new
Printed by Newsfax International,
gramme initiated in May to help deal publish Eurozone ever of our banking system,” Zapatero rules would also “strongly limit” the
Beam Reach 5 Business Park, with the sovereign debt crisis experi- stress test results. said. number of elected officials named to
Marsh Way, Rainham, Essex, RM13 8RS enced by the 16-member European The reforms enable Spain’s trou- the boards.

WHAT THE OTHER PAPERS SAY THIS MORNING


recovery has proved stronger than we
had earlier expected, owing much to
the authorities’ strong and effective
MOD UNDER FIRE ON £20BN PROPERTY macroeconomic response.” DIRECTOR SAYS BBC IS COMMITTED IMF TELLS EUROPE TO INJECT MORE BURKLE, IN TESTIMONY, OBJECTS TO
ESTATE TO RADIO 6 MUSIC AND DIGITAL STIMULUS BARNES & NOBLE POISON PILL
The Ministry of Defence has failed to RIO TINTO CONFIRMS MONGOLIAN CONTENT The International Monetary Fund has Billionaire investor Ronald Burkle
make the most efficient use of its MINE INTEREST The BBC says it will not renew its called on the European Central Bank said the poison-pill plan that Barnes
£20bn property estate and should Rio Tinto has ended months of specu- attempts to close 6 Music and has to prepare fresh emergency action to & Noble Inc. enacted to stop him from
consider selling more land to help lation by confirming plans to swap its pledged instead to put the radio sta- stabilise debt markets, throwing its taking a larger share in the company
reduce costs in the current economic shares in Ivanhoe Mines for a direct tion “at the heart” of its digital port- weight behind calls for renewed mon- has imposed draconian restrictions
climate, a report by the National stake in Mongolia’s Oyu Tolgoi copper folio. On the day that the etary stimulus to offset budget cuts. on his ability to wage a potential
Audit Office will say on Friday. The and gold project, which is 66 per cent Government set out a timetable for The ECB has so far purchased €59bn of proxy fight against the Riggio family
department raised £3.4bn from the owned by the Canadian miner. Rio the switchover to digital radio — but Greek, Portuguese, Spanish, and Irish which controls the bookseller.
sale of surplus property between 1998 owns an indirect interest in Oyu did not set a specific date — Tim Davie bonds.
and 2008, the report acknowledges. Tolgoi, one of the world’s largest the BBC’s director of audio and BLOCKBUSTER CEO KEEPS PAY
undeveloped copper deposits, music, confirmed that the corpora- CONRAD BLACK SEEKS BAIL AFTER PACKAGE
IMF WARNS OF CONTAGION THREAT TO through its 29.6 per cent stake in tion was committed to the alternative FAVOURABLE US COURT RULING Blockbuster’s chief executive, head of
US Ivanhoe. music station in the long term. Conrad Black, the former media mag- a company so strapped for cash it
The US economy has rebounded nate, is seeking bail after the US skipped a scheduled debt payment
faster than expected but faces the LATE OBR CHANGES SHRANK JOB LOSS Supreme Court overturned part of the last week, will retain his previous
threat of contagion from sovereign FIGURE LAKELAND PROFITS FROM JAM TODAY $6.1m (£4m) fraud conviction that salary and is in line for a bigger
debt problems in Europe, the The Office for Budget Responsibility Politicians can no longer offer jam saw him sentenced to six-and-a-half bonus. James Keyes’s new employ-
International Monetary Fund has made last-minute changes to its tomorrow, so people are making their years in prison in 2007. Lord Black has ment agreement, announced in a fed-
warned. In an advance summary of Budget forecasts that had the effect of own. Lakeland, the kitchenware busi- served his sentence to date at eral filing on Wednesday, will pay
its annual health check of the US reducing the impact of the emer- ness, has sold half a million jam jars Coleman Federal Correctional Centre him a salary of at least $750,000 a
economy, the IMF said: “While still gency Budget on public sector job already this year — and the preserv- in Florida. The US Appeals Court will year. The new agreement also looks to
modest by historical standards, the losses. ing season has only just begun. decide if the conviction is quashed. pay him a bigger bonus.
CITYA.M. 9 JULY 2010 Politics 3

Coalition tells top suppliers


to cut the cost of services
meeting and told to do their bit to handled by Maude and Danny


POLITICS
reduce Britain’s budget deficit. Alexander, the chief secretary to the
BY DAVID CROW
Maude told the bosses to prepare Treasury.
FRANCIS Maude, the minister for for a round of tough negotiations, Maude said: “I am laying down the
the Cabinet Office, yesterday hauled designed to reduce the amount the challenge to major government sup-
in the bosses of blue-chip companies government pays to private suppliers pliers to ask them what they can do
and asked them to cut the cost of the and contractors. to take costs out of contracts.
services they provide to the govern- Cabinet Office officials said there “Some of this will come out of
ment. would be some impact on suppliers’ margins, but we will also invite ideas
Nineteen chief executives, from profits, but added they hoped to on how we can structure things dif-
the likes of Serco, BT, Logica and minimise it by rooting out waste and ferently to reduce complexity and
Vodafone, were summoned to the inefficiency. The negotiations will be cost.”

Pensions minister Steve Webb favours the CPI measure Picture: PHOTOSHOT

Government
cuts private
pension costs
sioners, most of whom have no hous-

POLITICS
ing costs. The average gap between the
BY DAVID CROW CPI and RPI has been around 0.5 per
THE government yesterday outlined cent a year over the last twenty years.
plans that will shave billions of Pensions minister Steve Webb said:
pounds off the private sector’s pen- “The government believes the CPI pro-
sion bill, by reducing the amount that vides a more appropriate measure of
pension payments must rise in line pension recipients’ inflation experi-
with inflation. ences.”
In future, payments for those on "We believe, therefore, it is right to
final salary schemes will rise in line use the same index in determining
with inflation as measured by the increases for all occupational pen-
consumer price index (CPI), as sions and payments made by the
opposed to the retail price index (RPI), Pension Protection Fund.”
which is historically much higher. Accountants KMPG said the move
Currently, private sector pension would, at a stroke, wipe £50bn from
schemes must uprate their payments the pensions deficits of FTSE 350 com-
by either 2.5 per cent or the cost of liv- panies.
ing, depending on whichever is high- Employers’ group the CBI wel-
est. comed the change. “Statutory indexa-
Under existing arrangements, the tion is the biggest single regulatory
cost of living is measured by the RPI, cost borne by final salary schemes,” it
which includes housing costs like said.
mortgage interest payments. That But the Trades Union Congress hit
means it has been considerably higher out at the plans, claiming today’s pen-
as house prices have boomed. sion payments would be 14 per cent
The coalition is making the move lower if they had been increased in
to reduce the cost of private sector line with the CPI instead of the RPI.
pensions to the government, which The move does not effect those on
must step in and help fund the defined-contribution schemes, which
schemes when they fall into difficul- have become more prevalent in recent
ties. years. Their pension will depend on
Treasury sources insist the CPI the inflation arrangements of the
measure of inflation is better for annuity they purchase when they
working out the cost of living for pen- retire.

Office For Budget Responsibility


must be reformed, warns CEBR
beginnings” of the OBR.

POLITICS
The government’s new tax and
LEADING think-tank the Centre for spending watchdog’s independence
Economic and Business Research was called into question after the
(CEBR) has today called for urgent decision to bring forward publication
reform of the Office for Budget of its employment forecast following
Responsibility (OBR), saying it needs reports of a leaked Treasury docu-
to establish its independence from ment indicating that up to 1.3m jobs
George Osborne’s Treasury. in the public and private sectors were
Doug McWilliams, chief executive at risk from spending cuts.
of the CEBR, said “drastic change” “Its chequered beginnings disap-
was necessary after the “chequered point me,” added McWilliams.
4 News CITYA.M. 9 JULY 2010

Obama’s bid to restore ban on


deepwater drilling is rejected
The move comes as the Obama not impose a new ban, if the court


ENERGY
BY EMMA SADOWSKI administration is preparing to issue a supported the original drilling mora-
revised ban on deepwater drilling torium.
AN APPEALS court in the US has below 500 feet. The ban was first lifted by the court
maintained a ruling made by a lower It had inflicted the mortorium after drilling companies like
court to lift a six-month moratorium after the explosion of the Deepwater Hornbeck Offshore Services and
on deepwater drilling imposed by the Horizon rig, which killed 11 people, Diamond Offshore Drilling claimed
Obama administration. so that it could launch an investiga- the moratorium was too broad and
The US Court of Appeals for the tion into the incident. would have a severe financial impact.
Fifth Circuit made the decision only Officials from the interior depart- Interior secretary Ken Salazar said
an hour after the arguments were ment had said prior to the court’s a stay on the ban was urgent because
US President Barack Obama is creating a revised ban on deep sea drilling made yesterday. decision that the government would of the imminent hurricane season.

BP is given a
day to meet
US demands
The letter is part of a number of
BP IN CRISIS recent aggressive moves made by the
BY EMMA SADOWSKI Obama administration to gain con-
trol over the group, after assistant
THE OBAMA administration ratch- attorney-general, Tony West, wrote to
eted up the pressure on BP yesterday BP earlier this week requiring the
after Admiral Thad Allen sent a letter company to give the government 30
to the embattled oil giant demanding days notice of any moves that would
that he be notified of every move it affect the size and shape of its busi-
makes in responding to the Gulf of ness, including any asset sales.
Mexico spill disaster. A spokesman for BP confirmed the
Allen, who is leading the Gulf oper- group had received the letter and
ations for the US government, told BP that it would respond in due course.
that it has to receive his approval BP also sought to distance itself yes-
“before any actions are taken on each terday from a 27 July target date to
of the decision points subsequently have the first relief well completely
identified” to deal with the leaking drilled after Dudley said that in a
well. “perfect world with no interruptions,
The letter, which was addressed to it is possible to be ready to stop the
BP spill boss Bob Dudley, demanded well between 20 and 27 July”.
that Allen be notified of “steps and “It is unlikely to happen by that
decision points involved, mitigation date. It is more likely that the well
efforts to be implemented and contin- will be drilled by mid-August. Our tar-
gency plans” before the group goes get still remains mid-August,” said a
ahead with them. spokesperson for the group.
BP, which hasn’t responded to the BP is currently a few hundred feet
letter, said that it will respond in due away from tapping into the leaking
course. Macondo well, with the last steps to
Allen has set BP a deadline of today complete the drilling expected to take
to provide him with updated time- more time, but possible stormy
lines of its response. weather could pose a threat.

BMW revs up Nortel group is


first half sales fined £2.1bn

AUTOMOTIVE PENSIONS
BMW, the world’s largest luxury car- REGULATORS yesterday took the
maker, sold 13.7 per cent more BMW unusual step of ordering administra-
vehicles last month, outpacing more tors of the insolvent Nortel group to
tepid growth at its Mini brand. provide up to £2.1bn in financial sup-
The company sold 119,663 BMWs in port to help bail out its 42,000 pen-
June, bringing its first-half tally to sion fund members in Britain.
585,755 vehicles for a gain of 14.1 per The Pensions Regulator issued a
cent. Mini only managed to sell Financial Support Direction against
23,202 cars, or nearly 110,000 in the 25 companies in the telecoms equip-
first half. ment group, which was put into
“In some cases, the automobile administration in January last year.
markets are recovering much faster The regulator accused the
than expected. We had a successful Canadian parent company of squeez-
first half-year with (group) retail ing its British subsidiary for years – to
growth of 13.1 per cent,” sales chief the detriment of the pension fund
Ian Robertson said in a statement. that it sponsored.
CITYA.M. 9 JULY 2010 News 5

Banks to skip
bonus curbs, Michel Barnier, the
EU’s Internal Markets
commissioner, says the

experts warn
bonus clampdown
indicates that “there
will be no return to
business as usual.”
Picture: GETTY

CITY VIEWS: WHO IS BEST PLACED TO REGULATE BANKERS’ BONUSES?


REGULATION for a cut to cash bonuses. Vicki Elliott,


BY OLIVER SHAH a partner leading Mercer’s financial Interviews by Marion Dakers and Daniella Farsiani
industry rewards consulting, said
BANKS will easily sidestep the City firms were planning to change
European Union’s crackdown on their remuneration policies in line
bonuses by raising base salaries and with the forthcoming rules, but were CHARLES PREWER | RFIB GROUP
restructuring performance-related “trying to balance practicality with
awards, consultants and senior politi- added complexity in the process”. “Ideally the banks would do it themselves. But some of them got too greedy and now it’s inevitable that someone else will
cians believe. A senior British politician, who
The European Parliament yesterday asked not to be named, said banks step in, though they will never fully regulate bonuses. It should be the Bank of England overseeing this, not the EU.
waved through a punitive regime cap- could maintain high cash payouts It’s the most undemocratic institution I can think of, and the rules have no grounding in the realities of banking.”
ping the cash portion of bonuses at simply by increasing the overall size
30 per cent and forcing banks to pay of a bonus and linking the deferred
the rest in shares and contingent cap- element to impossible targets.
KEVIN WALKER | HW WOOD
ital, with up to 60 per cent staggered “They’ll easily get around it,” he said.
over three to five years. The EU measures on remuneration, “The bonuses are a completely commercial decision, and I don’t believe they should be regulated by anyone outside the
Although the British Bankers’ contained in a wider bill, will come companies. The EU’s decision to limit the amount of cash in a bonus isn’t a bad idea, but it’s one the banks should have
Association warned the tough meas- into effect at the start of next year.
ures – not matched in the US or Asia – come up with. They should be sensible enough to work something out themselves.”
would lead to an exodus of talent FAST FACTS | EU BONUS LAW
from Europe, insiders yesterday sug-
gested institutions would be able to ● The restrictions on bankers’ awards are con-
RICHARD ELLISON | DEWEY & LEBOEUF
work around them. tained in the third draft of the EU’s Capital
A study by Mercer, the business Requirements Directive. “I think it’s the place of governments to oversee any regulation. The banks have already had a chance to arrange
consultancy, found 70 per cent of ● The European Council is scheduled to ratify something. The EU rules could be more effective, as they prevent competition between countries to attract
banks and insurers had already hiked the legislation next Tuesday.
employees’ basic pay to compensate companies with lax laws.”
A Daimler Brand

One day. Could be tomorrow.


The C-Class.
Visit www.mercedes-benz.co.uk/today

The C180 K BlueEFFICIENCY Executive SE Saloon with Metallic Paint


Monthly payment* £299 Retailer deposit contribution** £1,335.52 On-the-road price £25,300 Total amount payable by the customer‡ £26,763
Customer deposit £3,699 Optional purchase payment† £12,025 Total charge for credit £2,798.52 Total amount payable‡ £28,098.52
Number of payments 36 Acceptance fee £180 Amount of credit £20,265.48 Purchase activation fee† £95

Typical 5.9 % APR


Official government fuel consumption figures in MPG (Litres per 100km) for the C180 K BlueEFFICIENCY Executive SE Saloon with manual transmission: Urban: 32.8 (8.6), Extra Urban: 54.3
(5.2), Combined: 43.5 (6.5). CO2 emissions: 154 g/km. Model shown is a Mercedes-Benz C180 K BlueEFFICIENCY Executive SE Saloon manual with optional metallic paint at £630.00. Total price: £25,300.00 on-the-road (price includes VAT, delivery, maximum Road
Fund Licence, number plates, new vehicle registration fee and fuel). *Based on a Mercedes-Benz Agility agreement. **The Retailer contribution is only available with this finance offer. †Payable if you exercise the option to purchase the car. ‡Includes optional purchase payment and purchase activation
fee. Example based on 10,000 miles per annum. Excess mileage charges may apply. Guarantees and indemnities may be required. This finance campaign is available for C-Class Saloon models, excluding special request engines, registered between 1st July and 30th September 2010. Offer cannot be
used in conjunction with any other published offer from the Retailer and is subject to availability. Terms and conditions apply. Prices correct at time of going to print. Credit provided subject to status by Mercedes-Benz Financial Services UK Ltd, MK7 8ND.
6 News CITYA.M. 9 JULY 2010

Quest: Shares in Ocado are


overvalued by 46 per cent
It says Ocado must convince warning: “Unlike its chilled delivery

RETAIL
BY STEVE DINNEEN investors it can grow sales at 19 per vans, Ocado’s IPO is too hot to handle
cent a year for the next 10 years and at a valuation of 200-275p.”
ANALYSIS firm Quest has delivered sustain returns almost twice those of Ocado embarked on a two week
another slap in the face to Ocado, as Tesco to justify a mid point valuation. roadshow on Tuesday. The firm,
the grocery delivery firm attempts to Quest says Ocado, which is a capital which recently signed a 10-year con-
justify its £1.1bn IPO valuation to intensive business, will never gener- tract to deliver Waitrose food, said it
investors. ate the same level of returns as its is hoping to raise £200m.
The Collins Stewart subsidiary says rivals. The analysts used complex Analysts have been lining up to
it values shares in Ocado at just 128p models to reverse engineer the levels take a swipe at the firm and it was
– a staggering 46 per cent under the Ocado would have to hit to justify its dealt a further blow on Wednesday
mid-point put forward in its prospec- monster valuation. when Amazon launched a rival gro-
tus. The update concluded with the cery delivery business.

We rest our case BA’s Willie Walsh remains upbeat about its future Picture: Micha Theiner/City A.M.

BA will grow
from Madrid,
warns Walsh
said that currently the airport oper-

AVIATION
BY EMMA SADOWSKI ates only 80 per cent of its capacity.
Walsh also hit out at the increasing
WILLIE WALSH, the British Airways rise in air passenger duty (APD) and
chief executive, yesterday reiterated argued that separate UK airline taxa-
his warning that the airline would tion should come to an end otherwise
grow in future at Madrid instead of it could be damaging to the economy
Heathrow if the government failed to as commercial carriers leave the
build the infrastructure needed to country.
cope with rising demand for air trans- But Walsh remained upbeat about
port. BA’s future, despite being faced with
Speaking at the Institute of a possible third strike this summer,
Directors (IOD), Walsh said the UK and said it was a possibility that the
could compete effectively for a few airline could buy or merge with more
years but warned that in 20 years it airlines next year.
could be bypassed because the coun- A planned joint venture with
try doesn’t have the existing infra- American Airlines is likely to receive
structure needed to support growing clearance from competition bodies in
demands. Europe and the US relatively soon,
The government’s decision to axe while BA is awaiting six new Boeing
the expansion programme at 777-300 aircraft to its fleet.
Heathrow means the runways are “But all such investment is depend-
now full, said Walsh. ent on reshaping our business.
One way flight with one 20kg hold bag booked online*
As a result, the airline’s planned “That is why we have been pursu-
Spanish merger could allow the air- ing structural change, which has lead
line to exploit Barajas Airport’s four to lower headcount and more effi-
In July and August this year it will cost over runways, according to Walsh, who cient ways of working,” said Walsh.

3 times as much to book your 20kg hold bag


online with Ryanair than easyJet. Signs of life in global M&A space
as hunger for dealmaking returns
Mergermarket released the figures

M&A
alongside its global league table of
THE global mergers and acquisitions advisers, which was topped by
market is awaking from hibernation, Simpson, Thatcher and Bartlett.
according to two surveys released yes- A second survey suggests the out-
terday. look for global M&A is also improv-
There were $881bn (£581bn) worth ing, with 78 per cent of practitioners
of deals in the first half of 2010, up 7.8 expecting an increase in deal activity
per cent on the same period a year over the next 12 months.
earlier, Mergermarket said. The survey of 160 dealmakers, car-
Europe’s M&A recovery was even ried out by IntraLinks, also found that
*Price based on a single item of hold baggage of more than 15kg and up to 20kg booked online one way. Prices vary more pronounced, with first half 52 per cent of respondents thought
depending on weight and number of hold bags. Prices applicable between 1 July and 31 August 2010. Prices correct deals up 24.1 per cent on 2009 to improved market and financial condi-
as at 7 July 2010. See http://www.easyjet.com/asp/en/baggage for further details. $240.3bn, with a 53.8 per cent lift in tions would be the principal driver
the second quarter. behind an uptick in M&A.
CITYA.M. 9 JULY 2010 News 7

Private banks have NEWS | IN BRIEF


OFT queries Rex sale to Getty

£10.9 trillion but


The Office of Fair Trading (OFT) yester-
day referred the anticipated acquisition
by Getty Images of Rex Features to the
Competition Commission for further
investigation. Getty and Rex are two of

can’t beat stocks


the largest suppliers of photographic
images for editorial use by UK publica-
tions. The OFT is concerned Getty would
be free to increase prices if the merger
went ahead because of lack of competi-
tion.

PRIVATE BANKING However, wealth managers have Boris calls for better transport

BY MARION DAKERS performed worse on average than the London mayor Boris Johnson yesterday
stock market. The MCSI world stock called for an upgraded Tube and Crossrail,
PRIVATE banking firms now manage index rose 27 per cent in 2009, com- to boost the capital’s business.
assets worth £10.9 trillion, a rise of £1.3 pared to annual returns of 17 per cent Speaking at the Confederation of British
trillion since last year, though many in the private banking industry. Industry (CBI) yesterday he warned that
firms fall behind the stock market in “The wealth management engine is Private banks manage £10.9 trillion of assets for clients Picture: GETTY cutting vital investment in London’s trans-
the profit stakes, a report claimed yes- still misfiring for many. There are port system would hurt London’s business
terday. strong signs of wealth creation even TOP TEN GLOBAL PRIVATE BANKS BY ASSETS UNDER MANAGEMENT (SOURCE: SCORPIO) and damage the UK economy. He said the
Assets under management (AUM) in these complex markets and yet government should protect vital improve-
rose 17 per cent on last year, though new clients are holding back from 2010 Benchmark AUM (USD bn) 2009 Benchmark AUM (USD bn) ments to the transport system.
performance markers on efficiency opening accounts with the industry,” 1 Bank of America 1,740.51 1,501.00
have fallen 35 per cent, according to a said Scorpion managing partner 2 UBS 1,593.74 1,393.48 TUC in bid to ban Cameron
survey by consultants Scorpion. Sebastian Dovey. 3 Morgan Stanley 1,508.00 522.00 The transport workers’ union has called
The top ten table remains largely The research showed over 220 insti- on the Trade Unions Congress to with-
static, with Bank of America firmly at tutions currently offering a private 4 Wells Fargo 1,218.00 1,000.00 draw an invitation to David Cameron,
the top with 10 per cent of all man- banking service. 5 Credit Suisse 775.43 611.96 who is due to address the organisation’s
ageable assets under its control. “We feel it is time the fashion to 6 JP Morgan 636.00 522.00 annual conference in September. In a
Royal Bank of Canada is the only retain the cottage industry percep- 7 Royal Bank of Canada 379.00 New entrant sign of escalating tensions between the
new entrant to the top ten, after it tion is laid to rest,” said managing government and public sector workers,
opened up its financial reports. Swiss partner Catherine Tillotson. “Those 8 HSBC 367.00 352.00 the RMT said the Prime Minister was
bank Pictet returns to the list after businesses that cling on to the past 9 Deutsche Bank 272.38 231.19 launching the “biggest attack on the

@
two years outside. are likely to be marginalised rapidly.” 10 Pictet 243.21 New entrant trade union movement since Thatcher.”

Man told to improve Hot


flagship hedge fund Traffic!

@
HEDGE FUNDS AHL, Man’s main quantitative fund formance from AHL. It’s baffling as to

BY OLIVER SHAH run by a legion of PhD graduates, has why it can’t make more money.”
gained 3.1 per cent this year until the Man’s asset base will grow to
MAN Group needs to focus on the “baf- end of June after slumping 16 per around $63bn after it takes over rival
fling” lack of performance from its cent last year. It generated 0.9 per GLG Partners. The acquisition is due
flagship hedge fund, analysts said yes- cent in the turbulent second quarter, to close at the end of September.
terday, after the asset manager despite wobbles in the Eurozone, a
revealed another quarter of outflows. result chief executive Peter Clarke ANALYSIS l Man Group
The listed behemoth reported a 2.2 described as “pleasing”. p nüvi 1690 tops Which?
280 218.40 sat nav test June 2010

@
per cent net slide in assets under “However, given the continued 08 Jul Sat
Nav June 2010
management to $38.5bn (£25.3bn) in market uncertainty, sales in the quar-
260
the three months to 30 June as clients ter have, as anticipated, remained
pulled money out amid choppy mar- subdued,” Clarke said.
240
kets. Investors’ disappointment at the Keith Baird at Oriel Securities said
seventh consecutive quarter of cranking up AHL’s returns would be 220
declines in Man’s asset base was tem- crucial to improving sales. He said:
pered by the fact the torrent of out- “Man’s sales figures are weak. The 200
flows seen last year appeared to have two things they need are better
slowed to a drip. investor confidence and better per- 12 Apr 30 Apr 21 May 11 Jun 1 Jul

Failed $400m RidgeWorth


deal hits Henderson’s profits Instant traffic updates help you
hit the beach not the traffic.

FUND MANAGEMENT tial acquisition of RidgeWorth Capital ing to a fragility in confidence,” said nüvi® 1690 sat nav with Hot Traffic and

BY HARRY BANKS Management,” Henderson said. Andrew Formica, Henderson’s chief other nüLink! live services FREE for 1 YEAR*

Last month, Henderson pulled out executive.


FUND management group Henderson of a deal to acquire the fund manage- On Wednesday, Henderson said it garmin.co.uk/1690
said yesterday its failed takeover of US ment arm of banking group SunTrust had transferred its international
fund manager RidgeWorth had made for a reported price of up to $400m property fund over to Aviva Investors
a sizeable dent to its profit forecasts. (£264.5m). Last month a Henderson following a strategic review of the
In a trading update, Henderson spokesman said the firm is still on fund’s prospects.
said recurring profits for the six the lookout for acquisitions in the US. The fund only reopened to daily
months to end-June will be between Gross performance and transaction dealing in February this year, having
£47m and £49m – six per cent lower fees for the first half of the year will previously been closed for over a year
than expected. That compares with be about £41m, versus £18.7m in the when redemptions snowballed dur- MORE NEWS
the £27m recurring profit haul the same period last year. ing the credit crunch. Aviva will com-
company posted last year. “Markets have remained volatile as bine the fund with the £223m of
ONLINE *see website for details

AVAILABLE FROM:
“This is after recognising deal costs governments begin to repair their assets in its own European and Asia- www.cityam.com HALFORDS / AMAZON / CURRYS / JOHN LEWIS / BEST BUY
of £3m in connection with the poten- finances with fiscal tightening lead- Pacific real estate funds.
The Capitalist
8 CITYA.M. 9 JULY 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

GOLDMAN CASE STRIKES FEAR INTO


HEARTS OF PRUDENT COMPETITORS
THE SEC’S fraud case against The 11-page illustrated presenta- enough to deter naughty staff, the
Goldman might have proved an tion reminded employees that “ecom- bank also included a smattering of
almighty headache for the bank’s munications are a powerful photographs and quotations for
own staff, but at least it’s spawned a investigative tool for US federal prose- effect, including a stern-looking shot
valuable lesson for rivals. cutors, state attorneys general, regu- of the aggressive senator Carl Levin,
Citi took the opportunity to send lators, plaintiffs’ lawyers and other. the man who grilled Lloyd Blankfein,
employees a missive in the wake of International enforcement agencies and a reminder of one of the trader
the accusations, imperiously titled are expanding their use of email to emails that turned Goldman faces
“Think Before You Write: Avoiding build cases and investigations are red, explaining “Boy, that…was one
Improper Electronic increasingly going global…” sh**ty deal”.
Communication”. In case warnings like these weren’t Not getting at all nervy, are we?

Emails can be treacherous little blighters Pictures: REX

in the shops before the month is out,


NEIGHBOURLY LOVE you mark my words.
Panmure Gordon’s corporate broking
big man Adam Pollock was basking in
the celebrity limelight yesterday after
a practical joke landed him a men-
FIT FOR A QUEEN
Speaking of the golden oldies, atten-
tion on Capital FM’s breakfast show. tion-seekers in the City are going to
Pollock is currently in the process love a new charity initiative set up by
of moving house but found his one of their own.
removal van blocked in yesterday by a Liz Swanton, who works at foreign
car belonging to his Wandsworth exchange risk reduction specialist CLS
neighbour – none other than Bank, had the brainwave last year of
Capital’s resident funnyman Johnny raising money for charity by dressing
Vaughan. as legendary Queen frontman Freddie
Cue a text from our broking chief Mercury for the day.
to Vaughan while he was on air, This year, she’s decided to go one
telling him the car was about to get bigger and launch a nationwide
towed away… and a moment of fame “Freddie For the Day” initiative to
take place on 3 September and raise
much-needed funds for the Mercury
Phoenix Trust HIV Aids charity, origi-
nally set up in Freddie’s memory. Like
dress-up days at school, only better
now that we’re all supposed to be
grown up...

LAP OF VICTORY
A cunning ploy, this, coming ahead of
the British Grand Prix at Silverstone
at the weekend – and playing on the
innate competitiveness of the City
Vaughan fell victim to a City boy prank boys and girls.
Foreign exchange broker FxPro,
as Vaughan relayed the message to his fresh from signing up to sponsor
listeners. Very droll. Aston Villa football club for the next
three years, has struck a deal with the
Virgin Racing Formula One team to
IDENTITY CRISIS launch an online game which inter-
Is there no end to the lengths people twines the worlds of racing and cur-
will go to these days to avoid looking rency trading.
like they’re spending any money? I Bizarre, you might think, and so is
only ask after the winning bidders for the result – you choose your car based
billionaire investor Warren Buffett’s on a currency comparison and the
annual charity lunch auction yester- performance of the currency deter-
day pulled out of revealing their iden- mines whether or not you end up on
tities, despite stumping up a the podium or crashing into the barri-
combined $2.6m for the privilege. ers.
The amount set a new record for Most importantly, though, winning
steak with the Sage of Omaha, beat- credits from race victories will put
ing Zhao Danyang of Pureheart Asset you in line for F1 and Premier League
Management into second place with tickets. Time to put all that forex
his 2008 bid of $2.11m. knowledge to good use, eh?

FESTIVE FROLICS HIGH FLIER


Is it that time of year again? A missive Finally, wally of the day award goes to
pops into The Capitalist’s inbox from Astaire Securities’ Ruari McGirr, for
technology giant Microsoft, contain- arriving at the airport for his partner-
ing an invitation to the group’s annu- in-crime Seb Wykeham’s stag do with
al “Showcase Event” at a whole lotta luggage…
the Saatchi Gallery. and no passport.
“You’ll get to play What’s more, I hear
and experience the it’s far from the first
very latest must- time that the sup-
have Christmas posed “high
gifts,” spout the flier” has
organisers, excit- turned up with-
edly. out the elusive
They’ll have little booklet
Wham! blasting when travelling.
out of the speakers D’oh.
CITYA.M. 9 JULY 2010 News 9

Three insurance
Lupus dodges fraudsters hit
housing woes with FSA ban

to raise sales
INSURANCE


THREE insurance professionals were
banned from operating in financial
services by the City regulator yester-
day for taking part in a £2m fraud
over an extended period.
Timothy Higgins, Clifford Felstead
and Ralph Brunswick were involved

MANUFACTURING away couplings to the exploration in a scam to cheat the Market


BY OLIVER SHAH industry, was seeing better trading International Insurance Company
conditions than in 2009. Trading king John Paulson saw one of his favourite portfolios slide Picture: GETTY (Markel), QBE Insurance and Amalfi
BUILDING products firm Lupus Last year, Lupus was rocked by a Underwriting, which exposed the vic-

Paulson suffers 9pc loss


Capital shrugged off concerns over £7.5m charge for breaching its loan tims to heavy losses, the Financial
the state of the US housing market covenants, which resulted in the Services Authority (FSA) said.
yesterday to reveal first half sales of departure of executive chairman Higgins – with the help of Felstead
£133m, up 14 per cent year-on-year. Greg Hutchings. Hutchings tried and – ran Surety Guarantee Consultants

on star Advantage fund


Shares in Lupus, which manufac- failed to regain control of the busi- (SGC), a company established in 2005
tures parts for doors and windows, ness twice. Lupus crashed to a to write surety bonds. SGC held
bounced 7.28 per cent to 81p on the £650,000 loss for the year. arrangements with Markel and QBE
news. They had traded at a depressed Finance boss James Brotherton said through its agent Amalfi to issue the
level of around 74p for a fortnight the firm was well positioned despite bonds but secretly exceeded its autho-
after falling heavily on poor new ongoing hikes in raw materials prices. rised limits, leaving them open to
home sales data from America, one of HEDGE FUNDS hit by his bullish position in financial greater liabilities than previously

Lupus’ key markets. ANALYSIS l Lupus Capital BY OLIVER SHAH stocks during market nervousness agreed. SGC pocketed a secret £2m
In a trading update, the company p 81.00 over banks’ Eurozone sovereign debt profit which should have been paid to
said the effect of weaker new home 95 8 Jul JOHN Paulson, the hedge fund boss exposure and disappointing US eco- the insurers. Brunswick provided
starts on both sides of the Atlantic who made billions of dollars shorting nomic data. false documents to help hide the
90
had been outbalanced by demand for sub-prime mortgages in 2007, has The news will surprise the industry arrangement from auditors.
repair and maintenance work to 85 seen one of his portfolios fall nearly as Advantage was one of Paulson’s Margaret Cole, FSA director of
properties. Lupus said it also man- nine per cent this year. star performers throughout the dark- enforcement, said: “All three of these
aged to pass on the increased cost of 80 Paulson Advantage, an arbitrage est days of the financial crisis. It men fell woefully short of the stan-
materials to its customers and con- fund geared to benefit from mergers gained 37.6 per cent in 2008 and dards expected of them.”
centrate its UK sales force. 75 and acquisitions, lost 6.9 per cent in ended 2009 in positive territory. Higgins would have been fined
The group added that its oil servic- June and 8.8 per cent in the first half, Paulson’s firm, which runs around £600,000, but is bankrupt. Brunswick
es arm, which supplies marine break- 12 Apr 30 Apr 21 May 11 Jun 1 Jul according to Bloomberg. Paulson was $35bn (£23bn), declined to comment. was also struck off as a director.

¥¶­·d˜–dª¶³±dÆ}pzvyn
›¬¥¸d¥d¦¶©¥¸¬d³ªdª¶©·¬d¥­¶rrr :KHQɬQDQFHGWKURXJK
7R\RWD)LQDQFLDO6HUYLFHV
Œ­«¬dµ¹¥°­¸½rd³»d´¥½±©²¸·r —¥º­²«dÆupy|yd³ȉdd°­·¸d´¶­§©r
$FFHVV7R\RWD
0RQWKO\3D\PHQWV e
&XVWRPHU'HSRVLW e
&DVKSULFHLQFOXGLQJFXVWRPHU
e
VDYLQJDQG&HQWUHFRQWULEXWLRQ

/HVV)LQDQFH'HSRVLW$OORZDQFH e
$PRXQWRIFUHGLW e
*XDUDQWHHG)XWXUH9DOXH
e
2SWLRQDO)LQDO3D\PHQW

7RWDO$PRXQW3D\DEOH e
([FHVVPLOHVRYHU SSHUPLOH

yr}id…”–d 7<3,&$/nnd

VWDU(XUR1&$3VDIHW\UDWLQJ
$LUFRQGLWLRQLQJ
VSHDNHUUDGLR&'SOD\HUZLWK03
DOOR\ZKHHOV
 PSJ
 eURDGWD[

¸³½³¸¥r§³r¹¯
0RGHOVKRZQ<DULV75997LGUPDQXDOe0HWDOOLFSDLQWeH[WUD 3ULFHIRUƪQDQFHFXVWRPHUVLVFDOFXODWHGE\GHGXFWLQJDeFXVWRPHUVDYLQJe&HQWUHFRQWULEXWLRQDQGeƪQDQFHFRQWULEXWLRQIURPWKHPDQXIDFWXUHUśVOLVWSULFH $35DQGeƪQDQFH
GHSRVLWDOORZDQFHDYDLODEOHRQQHZUHWDLOVDOHVRI<DULV75997LGUPDQXDOZKHQRUGHUHGEHWZHHQ-XQHDQG6HSWHPEHUDQGUHJLVWHUHGDQGƪQDQFHGWKURXJK7R\RWD)LQDQFLDO6HUYLFHVEHWZHHQ-XQHDQG'HFHPEHU7HUPVDQGFRQGLWLRQVDSSO\2WKHUƪQDQFH
RƩHUVDUHDYDLODEOHEXWFDQQRWEHXVHGLQFRQMXQFWLRQZLWKWKLVRƩHU,QGHPQLWLHVPD\EHUHTXLUHG)LQDQFHVXEMHFWWRVWDWXVWRRYHUVRQO\7R\RWD)LQDQFLDO6HUYLFHV*UHDW%XUJK%XUJK+HDWK(SVRP6XUUH\.78=3ULFHFRUUHFWDWWLPHRIJRLQJWRSUHVV LQFOXGHV9$7GHOLYHU\
FKDUJHQXPEHUSODWHV\HDUVURDGIXQGOLFHQFHDQGeƪUVWUHJLVWUDWLRQIHH6XEMHFWWRDYDLODELOLW\7KH\HDUZDUUDQW\LVD\HDUPLOHPDQXIDFWXUHUZDUUDQW\7RPDLQWDLQWKHZDUUDQW\FXVWRPHUVPXVWVHUYLFHWKHLUYHKLFOHLQDFFRUGDQFHZLWKWKHVWDQGDUG7R\RWDVHUYLFH
VFKHGXOHIRUWKHIXOO\HDUSHULRG)RUPRUHLQIRUPDWLRQRQWKHWHUPVDQGFRQGLWLRQVSOHDVHFRQWDFW7R\RWD *% SOFRQ
<DULV75997L2Ƭ
  FLDO)XHO&RQVXPSWLRQ)LJXUHVLQPSJ ONP 8UEDQ  ([WUD8UEDQ  &RPELQHG  &2(PLVVLRQVJNP
10 Economic News CITYA.M. 9 JULY 2010

Insolvencies set to escalate Sovereign debt fears drag


Averages debts of trouble compa- of insolvencies grew strongly for two
business confidence down

UK ECONOMY
nies have surged 60 per cent to to four years after GDP stopped
BY KATIE HOPE £545,000 over the quarter – a statistic shrinking,” he said.
UK insolvencies are forecast to rise Begbies believes suggests that the Begbies, which helps salvage strug- eign debt crisis. The number of firms


UK ECONOMY
next year as austerity measures start post-recession stress is migrating out gling companies, issued the report at saying that they are “more optimistic
to bite, with more than 127,000 com- of the SME sector to larger businesses. the same time as raising its final divi- ONGOING fears about the impact of now than three months ago” has
panies continuing to suffer “signifi- Ric Traynor, executive chairman of dend by 12 per cent to 1.9p, giving a the sovereign debt crisis dragged busi- slipped 13 points to 47 per cent, while
cant” financial distress, restructuring Begbies Traynor Group, warned that total payout of 3.1p for the year. nesses confidence down in June, the percentage that are more pes-
specialist Begbies Traynor warned yes- once the coalition government’s fis- The company said activity levels for according to the latest Lloyds TSB simistic has edged up three points to
terday. cal tightening measures kicked in the first two months of the new year Corporate Markets Business Barometer. 27 per cent. This has resulted in an
In total the struggling companies from the first half of 2011 the num- were slightly ahead of the last year. The survey – a snapshot of business- overall confidence balance of 20 per
owed £69.5m at the end of the second ber of insolvencies would rise. Begbies maintained its outlook for es’ views on their own performance cent – a 16 point drop on the previous
quarter – a rise of 26 per cent com- “The levels of distress can be the current year. and wider economic prospects – shows month.
pared to the £55bn owed for the first expected to remain pronounced for a In the year to the end of April, that firms are far less optimistic about Despite this, the balance of firms
three months of 2010, according to number of successive quarters in line Begbies reported an adjusted pre-tax the economic outlook than last that believe their business activity will
Begbie’s latest Red Flag Alert report with the experience of recessions profit of £10.4m, compared with month, largely as a result of the contin- pick up over the coming year has risen
covering the second quarter. over the past 35 years, when the level £9.8m a year ago. uing worries over the European sover- four points to 35 per cent.

Solid second UK house


prices fall

quarter for 0.6 per cent


in June

UK economy Annual rise


in property
with a year ago.” Economists said this prices 8.7

UK ECONOMY
BY JESSICA MEAD was consistent with robust expansion
in economic activity in the second
per cent
BRITAIN’S economy roared into life in quarter. BNP Paribas’ Alan Clarke
the second quarter of 2010, fuelled by said: “It will require an absolute col-
stronger than expected industrial lapse in output in June to prevent
production data. Leading think-tank industrial production from providing House prices slipped in June for the third month in a row, according to Halifax Picture: REUTERS
The National Institute of Economic a substantial addition to GDP growth
and Social Research (Niesr) forecasts during the second quarter.”

House prices tumble 0.6pc in June to


that the economy grew by 0.7 per But he warned that leading indica-
cent in the three months to June. tors have begun to fall, suggesting
It also revised up its estimate of that the pace of expansion is unlikely
GDP growth in the three months to to be maintained much beyond the

mark third consecutive fall, says Halifax


May to 0.9 per cent from 0.6 per cent middle of the year. “Hence although
as a result of revisions to official second quarter GDP growth is likely
industrial production data published to be pretty good, that is about as
yesterday. good as it is going to get.”
Meanwhile, the Office for National The Niesr also forecasts slower
Statistics yesterday said that industri- growth ahead. “The UK economy does
al output rose 2.6 per cent in the face headwinds. Fiscal consolidation that house prices will be broadly thought a small rise was possible.”

PROPERTY
three months to May, its fastest both in the UK and the euro area will BY JESSICA MEAD unchanged over 2010 as a whole, The Halifax survey provided evi-
growth rate in more than 20 years. restrict growth in the short-term and Halifax said. dence that the increase in supply of
The narrower manufacturing activity there is clearly a risk that this rate of HOUSE prices in the UK unexpectedly The drop in prices disappointed property to the market is exerting
measure rose by only 0.3 per cent on growth will not be maintained fell by 0.6 per cent in June for the analysts, who had expected a 0.2 per some downward pressure on prices,
the month, following a revised fall of through the rest of this year,” it said. third month in a row, trimming the cent rise. said RICS’ chief economist Simon
0.8 per cent in April. annual rise in property prices to 8.7 Howard Archer at IHS Global Rubinsohn.
David Kern, chief economist at the BNP Paribas’ Alan per cent last month. Insight, said the fall added to a recent He added: “The flatter trend in
British Chambers of Commerce, said: The Halifax data comes just days flurry of soft data on the housing pricing is consistent with our own
“May’s small increase in output con-
Clarke said that strong after rival mortgage provider market and stokes our relative pes- analysis which indicates that the sec-
firms that the manufacturing recov- second quarter growth Nationwide reported that the rise in simism over the housing market. ond half of the year is likely to prove
ery is on the right track. The new would be as good as it house prices slowed to just 0.1 per “Indeed, we increasingly suspect that more challenging as the supply of
figures leave manufacturing firmly was going to get cent in June from 0.5 per cent in May. house prices will be only flat over the properties on the market begins to
in positive territory when compared This pattern is in line with our view rest of this year. We had previously catch up with demand.”

Threadneedle Street keeps monetary IMF warns of contagion


policy unchanged again this month threat to the US economy
For now, it appears that concerns show whether any other members both years.

UK ECONOMY

WORLD ECONOMY
BY JESSICA MEAD about growth and fiscal austerity joined Andrew Sentance in the hawk- The lofty jobless rate, coupled with
measures have outweighed the issue ish camp. He was the lone dissenter in HIGH unemployment and a mori- a large backlog of home foreclosures
THE Bank of England this month held posed by sticky inflation. calling for a rate hike in June. bund housing market have increased and high levels of negative home
interest rates, keeping monetary poli- Commerzbank’s Peter Dixon said: Simon Hayes at Barclays Capital risks to the US economic recovery, equity, posed risks of a “double dip”
cy ultra-loose. Interest rates remained “Although there are indications that said: “We would expect Sentance to while the public debt looms large and in the housing market, it said. But the
at their historic low of 0.5 per cent some members are increasingly con- have dissented once more. It is also needs to be cut, the International IMF said it did not think a renewed
and the stock of asset purchases was cerned about a pick-up in inflation, possible that one or more other MPC Monetary Fund said yesterday. recession was likely.
held at £200bn. Economists had we expect that the sharp tightening of members may have joined Sentance In a statement after annual consul- “The outlook has improved in tan-
expected the Monetary Policy the fiscal stance outlined in the June in the hawkish camp. But our assess- tations with US authorities, the IMF dem with recovery, but remaining
Committee (MPC) to hold fire this budget will act to keep rates on hold ment is that a majority of members raised its US growth forecasts slightly household and financial balance
month and said it would have been an for many months to come.” remains sufficiently concerned about to 3.3 per cent for 2010 and 2.9 per sheet weaknesses -- along with unem-
enormous surprise had the commit- More interesting will be the min- the robustness of the recovery that a cent for 2011, but said unemployment ployment -- are likely to continue to
tee chosen to do anything else. utes released on 21 July, which will near-term rate hike is unlikely.” would remain above nine per cent for restrain private spending,” it said.
CITYA.M. 9 JULY 2010 News 11

Carlyle buys up
Connaught to £671m of White
lose CEO and Tower buildings

finance chief
PROPERTY


AMERICAN private equity group
Carlyle has snapped up six central
London properties for a total of
£671m, its first major purchase since
2008.
The properties were part of a port-

PROPERTY clarity they want, so that’s why the folio owned by entrepreneur Simon
BY MARION DAKERS review is happening,” said a company Clockwise from top: chief exec Halabi, which was used to secure the
spokesperson. Mark Tincknell, finance director failed White Tower commercial mort-
THE CHIEF executive and financial Financial director Stephen Hill will Stephen Hill and non-executive gage-backed securities vehicle.
director of Connaught resigned yes- leave Connaught in October after chairman Sir Roy Gardner Carlyle said yesterday the proper-
terday, in another blow to the trou- four years with the company. ties generate around £62m in annual
bled social housing group. Gardner said the outlook for rent from 1.6m sq feet of floor space.
Mark Tincknell, who has been chief Connaught nevertheless remains pos- The portfolio includes JP Morgan’s
executive for six months, stood down itive. “The cost reduction programme offices at 60 Victoria Embankment
immediately to recover from health will realise significant savings whilst and Alban Gate, UBS offices at
issues, but will remain with the com- providing a solid platform from Millennium Bridge House, Sampson
pany. which we can achieve further House and Ludgate House on the
Tincknell will assist chairman Sir growth,” he said. South Bank and BSI Tower.
Roy Gardner to find a successor, and Analysts were less hopeful about Robert Hodges, managing director
the firm has appointed head of com- the firm’s future. Oriel Securities told at Carlyle European Real Estate, said:
pliance Ian Carlisle to act as interim its clients: “This all leaves the group “This acquisition is a further example
chief executive. in limbo. We’d be inclined to stay on of our strategy in Europe of making
Gardner has also initiated an inde- the sidelines until we have better clar- long-term investments in landmark
pendent review of the group’s ity of precisely what is under there.” assets in strategically important
accounting policy, following a sur- European centres.”
prise profit warning last month that FAST FACTS | CONNAUGHT The properties were put up for sale
led to Connaught shares shedding in March, following the winding up
two-thirds of their value. ● The social housing maintenance firm started of White Tower in September, The
“The firm has been using the same trading in 1982 as a concrete repair company. value of the properties had almost
accounting practice for long-term ● Its current order book stands at £2.6bn, halved by the time the securitisation
contracts for ten years on the advice though the firm said last month revenues would folded.
of its accountants, but critics would fall by £80m following public sector cuts. CBRE is overseeing the ongoing sale
say it does not give shareholders the of White Tower assets.
12 Consumer News CITYA.M. 9 JULY 2010

Wiseman boosted by loyalty William Hill celebrates as punter


loses £417,000 bet on Germany
year.” company has been successful in

CONSUMER
Wiseman said its financial per- retaining volumes and will continue Sharp admitted before the match


BY JOHN DUNNE LEISURE
formance had been satisfactory in the to look to preserve its market share in that a German win would be a disas-
ROBERT Wiseman Dairies yesterday first three months. this area”, he said. A BRITISH gambler placed the biggest ter, with the nation having received
said first-quarter sales volumes rose Although bulk cream returns had Plans to increase capacity to 500m World Cup bet of all time on huge backing.
11.6 per cent over the last year – remained stable as expected, plastic litres a year at the Bridgwater dairy Germany to beat Spain in the World After the game he said: “Not only
fuelled by growth in business from and fuel costs were higher than last from November are on track, he said. Cup semi-final – and lost. did the £417,000 bet lose, but so did
existing customers. year. The company was also progressing The £417,000 wager – was placed others for Germany to win the tour-
Alan Wiseman, who retired yester- “The recovery of these additional an £8m investment to double its fresh with William Hill’s telephone betting nament.” Meanwhile one Spanish
day, said: “Given our volume gains in costs, and the objective to rebuild our filtered milk capacity and expected service at odds of 10/11, meaning the punter has bet £50,000 on Spain lift-
the previous year were concentrated underlying operating margins, the project to be completed by next punter would have walked off with ing the trophy on Sunday.
in June 2009, we would anticipate remains of primary importance. summer. An increase of 0.4p per litre just under £800,000 if Germany had The World Cup has proved a mas-
reporting lower like-for-like growth in “Competition in the middle for Wiseman Milk Group supplies won. sive boost for betting companies with
volumes in subsequent periods this ground sector is intense; however, the was triggered on 1 July. William Hill spokesman Graham record amounts of money wagered.

AB Foods sees
Primark has been
the star performer
for AB Foods

Picture: Micha
Theiner/CITY A.M.

a sales surge
from Primark
sales growth at seven per cent, just off

RETAIL
from its first half eight per cent like-
BY HARRY BANKS for-like growth. The Primark stores
PRIMARK owner Associated British have coped with the downturn better
Foods gave an upbeat update yester- than most as its cheap designer
day saying its third quarter sales
jumped 13 per cent and that it expect-
ed very strong growth in annual earn-
ings, driven by its fashion discount
clothes have proved a hit with cash-
strapped shoppers. However, group
finance director John Bason urged
caution over the tough economy.
A rare growth story in these gloomy times
retailer. Its 198-strong Primark chain
reported sales in its spring quarter ANALYSIS l Associated British Foods RECEIVED wisdom tells us that shop- list them in its third quarter around 11.5 per cent.
rose 15 per cent, outperforming p pers flock to quality in times of update). Sales growth will now slow down
many of its rivals and helped by a 1,040 994.50 hardship. With less cash to spend, It is also continuing to open new some, as the company battles
08 Jul
strong line of floral print dresses, punters buy fewer items that are outlets, even launching two new against tougher comparatives. With
court shoes and accessories in its key 1,000 more likely to last. stores in recession-strapped Spain, that in mind, its valuation of
markets of Britain, Ireland and Spain. Primark’s performance would where it hopes to pinch customers around 13 times estimated 2011
The food and retail group, which suggest otherwise. Sales in the last from more upmarket rivals like Zara earnings looks fair. Hold.
960
also owns household brands sixteen weeks have climbed nine per and H&M. And thanks to its high
Kingsmill, Silver Spoon and Twinings, cent at constant currencies, and operational gearing, margins are
did not give a like-for-like figure for its
16 weeks to 19 June, but house broker
920 Shore Capital estimates like-for-likes
are up seven per cent (ABF doesn’t
getting better despite higher fixed
costs, climbing 50 basis points to
BOTTOMLINE
Panmure Gordon calculated Primark 12 Apr 30 Apr 21 May 11 Jun 1 Jul
Analysis by David Crow

JJB Sports on the up despite England Tiso group goes back in


World Cup flops coming home early the black with IT move
same period had also increased 43.9 address the problems. £100,000 was turned into a profit of

RETAIL RETAIL
per cent. JJB also revealed yesterday that £1.2m.
SALES at JJB Sports have soared in England lost 4-1 to Germany in the sales at its newly-refitted Slough store OUTDOOR equipment specialist Tiso During the period the company
recent weeks, despite England’s early first knock-out stage of the World had increased by nine per cent above Group has reported an increase in completed its two-year strategic and
exit from the World Cup. Cup on 24 June, but sales have still the company average. profit driven by a new IT system operational review. As well as a new
Like-for-like sales, which strip out performed well. JJB came close to However, the group’s figures are which improved its supply chain. IT system it refurbished a number of
the impact of new store openings, going into administration last year flattered by weak comparatives after The Scottish retailer – which also stores and paid down £1.6m of bank
rose 22.3 per cent for the six weeks to but a successful £100m rights issue in it was hit by a stock crisis when sup- includes the Alpine Bikes and George loans to leave debt at £5.9m. Chris
4 July compared with a year ago. October allowed the retailer to pay off pliers became reluctant to deal with Fisher brands – saw turnover fall Tiso, chief executive officer, said:
JJB, which sells England replica its debts. The board has undertaken a the firm as it struggled with financial slightly to £27m for the year to 31 “This has been a strong performance
kits, said that profit margins over the massive shake-up of the business to woes. January. However a pre-tax loss of for the group.”
CITYA.M. 9 JULY 2010 Technology News 13

News Corp denies NEWS | IN BRIEF


More job cuts at Microsoft

plans to offload
Microsoft is set to lay off more staff just
days after humiliatingly laying to rest its
Kin phone. The software giant plans to
cut more jobs as early as this week. The
losses will be on top of 5,000

troubled MySpace
announced last year. Sources close to
the company say only a small number of
jobs will go, in line with past reductions
in numbers. However, there are fears
that hundreds of staff have been axed.
The company said the internal team
working on the Kin phones would be
TECHNOLOGY years. combined with the group working on

BY STEVE DINNEEN Speculation abounds it will go the Microsoft’s forthcoming Windows


same way as Bebo – also a once prom- Phone 7 software.
NEWS Corp has denied suggestions it ising social network – which AOL is
is trying to offload its $580m (£383m) close to selling for a fraction of the Apple Mac sales rise 37 per cent
social network MySpace. $850m it paid in 2008. New research shows sales of Apple’s
The firm’s digital chief Jonathan MySpace has also lost several top Mac computers have been buoyed by
Miller said there have been no discus- executives including co-president the release of the iPad and a new ver-
sions to sell the site, claiming reports Jason Hirschhorn last month. sion of its iPhone. Some analysts had
to the contrary were “fabrications”. Hirschhorn, with fellow co-president speculated the devices could canni-
He said: “We are definitely not in Mike Jones, replaced former chief balise Apple’s existing product range
any ongoing talks for a sale of executive Owen Van Natta just four but sales in the US of its laptop and
MySpace.” months earlier. desktop computers are up 37 per cent
Miller said News Corp is planning Its fate has been in stark contrast to year-on-year for the three months to
another reinvention of the belea- rival Facebook, which exceeded 500m May. The rise has been credited to the
guered site with a relaunch expected users this year. buzz surrounding the brand after the
later this year. A year ago News Corp • Will Lewis, the former Daily roaring success of both launches. The
executives talked about relaunching it Telegraph editor who earned plaudits iPad has already surpassed 3m sales in
as an entertainment hub. for breaking the expenses scandal, is as many months. The iPhone has also
MySpace has fallen from being one set to join News Corp as group general sold out despite apparent problems
of the internet’s fastest growing sites manager. He will coordinate editorial with its radio antenna that can stop
to an anachronistic weight around spending across the Times, Sunday the phone from receiving a signal if
Rupert Murdoch’s neck in just five Times, Sun and News of the World. News Corp digital chief Jonathan Miller says MySpace is not being sold Picture: GETTY held “incorrectly”.

BT and TalkTalk to | READER OFFER


Tune in to QVC to

fight piracy laws


discover a whole
new world of
beauty secrets –
and get £10 off yo
ur
first order!

TECHNOLOGY between an election being called have to do this for our customers

BY STEVE DINNEEN and parliament being dissolved. It who otherwise run the risk of being
was passed by 189 votes to 47 after a treated unfairly.”
BT AND TalkTalk will fight contro- two hour debate despite public out- Charles Dunstone, chairman,
versial new anti-piracy laws in the cry over its possible implications. TalkTalk, said: “The Digital
courts, they revealed yesterday. The two companies jointly filed Economy Act’s measures will cost
The internet providers say the papers to the High Court on the UK hundreds of millions and
Digital Economy Act, which was Tuesday and hope to fix a date for a many people believe they are unfair,
rushed through parliament earlier hearing by late autumn. unwarranted and won’t work.
this year, will unfairly target their Gavin Patterson, chief executive Innocent broadband customers will
users and could hurt their business- of BT Retail, said: “It’s disappointing suffer and citizens will have their
es. that we feel the need to take action privacy invaded.”
The “draconian” act could force but we feel we have no choice. We The act was designed to promote
ISPs to disconnect users suspected Britain’s digital economy and pro-
of repeatedly downloading copy-
righted material, and BT and
TalkTalk argue it could affect inno-
cent internet users.
BT Retail chief exec
Gavin Patterson says
his firm is taking the
tect the rights of content creators
such as musicians. The government
is standing by the law, claiming it is
in line with EU legislation.
Love Beauty, Love QVC
They say the bill received “insuffi- issue to court to Sky and Virgin have both backed Commuters at Liverpool Street station expert advice on application, trends and
cient scrutiny” as it was passed dur- protect customers the act, which they say could help
ing “wash-up” – the period of time them to curb piracy. today can take advantage of free techniques from industry experts.
makeovers and giveaways courtesy of QVC allows you to see products in action,
QVC, one of the world’s leading online without having to face the dreaded

Phorm issues £2m of new shares and TV shopping channels. counter assistant, so you can be a savvy
beauty shopper and make sure you stay

Q
VC is celebrating a beauty month looking gorgeous all summer long.

for expansion in Brazil and China throughout July and tomorrow


(Saturday 10 July) is one of QVC’s
renowned beauty days, showcasing
£10 off* voucher - *QVC are offering
£10 off your first order, simply call
beauty products all day long. Tune in for 0800 50 40 30 and quote
all the best brands at fantastic prices 0907JULYBEAUTY. This offer is

TECHNOLOGY gained more contracts in Brazil and company Oi, newspaper publisher
was confident it would secure fund- Estado, ISPs UOL and iG and media including Bare Escentuals, Decleor, OPI available to new customers only, valid
PERSONALISED advertising firm ing to develop the business. publisher Terra.
Phorm yesterday announced it will The company, whose software Phorm’s Chairman and chief and L’Occitane to name but a few. Be the for one order only and expires on 8th
issue 1m new shares to institution- has faced opposition from privacy executive Kent Ertugrul said: “We first to get your hands on brand new August 2010. For full T’s & C’s please
al investors to provide a £2m war- groups, has focused its efforts on expect the pace of deployment in exclusive products as well as receiving visit www.qvcuk.com/0907julybeauty
chest for its push into Brazil and Brazil, where in March it signed up Brazil to increase rapidly during
China. a string of internet service the second half of 2010 from the
The share placing was made by providers and content providers to existing modest coverage of sub-
Mirabaud Securities. Advising on roll out its service across the coun- scribers, and to begin serving rev- QVC is available on air: Freeview channel 16, Sky channel 640,
the placement – which will amount try. Similar attempts to expand in enue-generating ads in the coming Virgin TV channel 740, Freesat channel 800
to 6.4 per cent of all shares after the the UK failed after meeting stiff months.”
issue – was Canaccord Genuity. opposition. The company reduced operating Online: www.qvcuk.com Or call: 0800 50 40 30
Phorm, which tracks people’s Phorm said new contracts in losses to $29.7m (£18.4m) in the year
internet habits in order to provide Brazil were pending, in addition to ending December 31 2009, from
tailored advertising, has recently those already signed with telecoms $49.8m in 2008.
14 News CITYA.M. 9 JULY 2010

Maersk lifts 2010 guidance HSBC runs the rule over


includes the world’s biggest contain- and have a degree of certainty about
potential Nedbank deal

SHIPPING
er shipping company Maersk Line – how the third quarter is going, and
BY HARRY BANKS said in early March it expected a there are prospects for good utilisa-
DANISH group Moller-Maersk upgrad- “modest profit” in 2010. tion (of the fleet) in the peak season.” Nedbank, the fourth largest bank in


BANKING
ed its earnings guidance for the full- “The improvement of especially The upgraded expectation includes South Africa.
year, yesterday saying its container the container business has since an accounting gain from a previously HSBC is mulling the strategic sense of However, it is thought Old Mutual
shipping business had rebounded then been greater than envisaged announced sale of shares in the making a bid for South Africa’s would be reluctant to come to the
faster than expected. and the company now expects that Yantian port terminal in China which Nedbank, majority owned by insur- negotiating table. Nedbank is a
“The upgrade is due to a combina- the profit for 2010 will exceed the has been closed, Maersk said. ance group Old Mutual, it emerged strong generator of profits, while Old
tion of (freight) rates and cost reduc- profit for 2008 (which was $3.5bn The conglomerate’s sale of its Netto yesterday. Mutual has already expressed a desire
tions,” chief executive Nils corresponding to 17.6bn Danish Foodstores in Britain is still subject to HSBC has appointed investment to offload parts of its business else-
Smedegaard Andersen said. “We have crowns at the time), provided that approval from competition authori- bank Lazard to advise on a possible where in the world. The group said
taken $3bn out of the cost base on an freight rates, oil prices and the US ties, and a possible gain from that takeover, Sky News reported. The earlier this year that JP Morgan had
annual basis, and that makes us more dollar exchange rate remain stable at sale has not been included in the new emerging markets-focused group is been appointed to oversee a sale of its
competitive.” current levels,” it said. estimate, Maersk said. In May, it likely to have to stump up several bil- US life insurance arm.
After diving to its first loss on Andersen added: “We know the announced plans to sell Netto UK to lions of pounds to buy out Old HSBC and Old Mutual both
record in 2009, the group – which development in the second quarter, Asda, a unit of US retailer Wal-Mart. Mutual’s 54 per cent stake in declined to comment.

Babcock to
Hays has seen benefit from
City jobs rise budget cuts
since Easter


DEFENCE
DEFENCE services group Babcock
International Group yesterday said it
had started the 2010/11 fiscal year
Hays chief executive Alistair Cox has seen growth in the private sector Picture: REX well and expected outsourcing
and healthcare,” said Venables. opportunities to increase as Britain

RECRUITMENT
BY MARION DAKERS In the UK, London still offers the
bulk of opportunities, but Venables ANALYST VIEWS: HOW IS HAYS COPING WITH looks to cut its budget deficit.
Babcock, which maintains Royal
PRIVATE sector growth is offsetting
cuts to public sector jobs, according
said growth had spread elsewhere in
the last quarter.
THE CHANGES IN THE JOBS MARKET?
Interviews by Marion Dakers
Navy submarines, said it had a
healthy bid pipeline and its order
to recruitment giant Hays, though “The recovery has gone across the book had remained stable at £8.3bn.
fees earned in the UK fell six per cent whole of the home counties. The only “As the government seeks to
in the last three months to to 30 June. weaker areas in the recovery are in DAVID O’BRIEN | ALTIUM SECURITIES address the fiscal deficit in the UK,


The firm said the private sector had the north of England and Scotland,” we believe there will be an increase
seen a 10 per cent growth in net fees he said. in outsourcing opportunities in our
since the last quarter, with strong The firm has nevertheless cut con- The downturn in the public sector continues to offset improvements chosen markets,” the group said in a
growth in City, pharmaceutical and sultant numbers by two per cent in within the private sector. Cash flow remains strong, with the level of nebt debt statement yesterday.


corporate accounts recruitment. Britain, and spent £14m on redun- ahead of our estimates (although our forecast included the recent OFT fine). We Babcock, close to completing a
The company’s operations in Asia dancies and restructuring its back have not changed our estimates, target price or ‘hold’ recommendation. takeover of rival VT Group, said it
have seen a more pronounced recov- offices. had begun work with VT’s manage-
ery, with like-for-like net fees up 28 The company now has just under ment team “in planning a speedy
per cent, boosting performance to 4,500 consultants across 28 countries. CAROLINE DE LA SOUJEOLE | SEYMOUR PIERCE and efficient integration process”.


pre-recovery levels in all Asian offices. It said yesterday that non-UK business “We believe our major markets
This growth helped lift overall net now makes up 59 per cent of net fees remain attractive with significant
fees by eight per cent, with increases earned. The return to year-on-year growth is clearly a good sign. However long-term growth opportunities in
in Germany, Australia and Brazil also growth rates achieved are slightly disappointing compared to that reported by both the UK and overseas and that


contributing. ANALYSIS l Hays peers such as Robert Walters on Wednesday. From a valuation perspective, there these opportunities are considerably
Worldwide growth meant the com- p enhanced by the increased scale and
120 95.15 is better value in small cap stocks such as Harvey Nash. ‘Hold.’
pany has predicted year-on-year 8 Jul capabilities we expect the acquisi-
growth for the first time since 2008. tion of VT to bring to the group,” it
Finance director Paul Venables
said: “Candidate confidence has
1100
IAN JERMIN | MERCHANT JOHN EAST SECURITIES added.
Babcock said that its proposed


increased. The acid test for us is often acquisition of VT has received all the
100
accounting and finance. The Hays has taken longer to exploit the move out of recessionary condi- necessary competition and regulato-
strongest areas globally have been in tions due to its focus on temp business and as such, together with its weaker bal- ry clearances, in both the UK and US.


the banking sector. 90 Shares in Babcock closed yesterday
“Even so, we continue to see good ance sheet, should be selling at a discount to Page and Walters at this stage. But at 62p, valuing the business at
levels of recruitment in education 12 Apr 30 Apr 21 May 11 Jun 1 Jul with visibility and confidence still very fragile, Hays' star could yet rise. around £1.5bn.

Bidders begin to circle ING’s coveted Stagecoach boss provides


property investment management unit £250k for heart checks
ed the bank to evaluate a sale as part investment manager in the world his overall pay has fallen more than

FINANCIAL SERVICES

BANKING
BY HARRY BANKS of a restructuring in the wake of its with around €66bn of assets under 30 per cent.
€10bn (£8.4bn) state bailout. management. AXA Real Estate, part HEAD of transport group Stagecoach, Fellow executive director Martin
ING Group may need to break up its The adviser is believed to have of Europe’s second-largest insurer Brian Souter, waived £250,000 of his Griffiths takes home £852,000 in
world-leading real estate investment asked for letters from potential bid- AXA and currently the second-biggest pay packet to fund health check-ups cash, benefits and deferred shares,
management unit to conclude a time- ders confirming they were bidding real estate investment manager, told for its staff in its UK Bus division, around £1,000 less than last year.
ly sale, with its bankers understood to for the whole and you could demon- a Reuters Summit last month it was according to the firm’s annual report Non-executive salaries remained
have begun flushing out prospective strably show they could fund the bid. mulling a possible bid. issued yesterday. frozen, taking total boardroom pay to
buyers. About 10 letters are understood to Other interested parties include Souter was awarded £762,000 for nearly £2m, representing a 14 per
Morgan Stanley is thought to have have been received. Allianz, asset managers Pramerica the last financial year. Though he was cent annual drop.
received a slew of expressions of inter- Some of the world’s biggest fund and Henderson Global Investors, entitled to a performance-related The firm also said in the report its
est to take over ING Real Estate managers and institutional investors Ameriprise Financial’s Threadneedle, cash bonus, after a bonus freeze in pension fund lost £138.7m last year,
Investment Management, just weeks are expected to log an interest to buy Blackrock Investment Management 2009 was lifted, his donation to fund due to investment losses. The pen-
after the Dutch bancassurer mandat- the ING unit, the largest real estate and China Investment Corp. heart-checks for bus workers means sions deficit stands at £201.1m.
CITYA.M. 9 JULY 2010 News 15

Ryanair to cut Dublin flights Temasek sticks with Asia


after portfolio rises 43pc
as passenger traffic declines ments, the growing middle income


ASSET MANAGEMENT
populations in Asia and other growth
last winter. The airline said it will chief executive Michael O’Leary also SINGAPORE sovereign investment markets continue to offer significant

AVIATION
BY HARRY BANKS switch these aircraft to other EU said Ryanair would “hang on” to its company Temasek yesterday said its investment prospects in the longer
countries, which it said have reduced shares in rival Aer Lingus, in which it portfolio rose 43 per cent year-on-year term,” Temasek said in its 2010 annu-
IRISH airline Ryanair said it would airport charges and scrapped govern- has a 29.8 per cent stake. to S$186bn (£88.6bn) at the end of al report.
cut its Dublin winter capacity by 15 ment tourist taxes. Ireland imposed a “Unless somebody comes along March, but has slipped since then in The closely guarded state agency
per cent as passenger traffic falls, and €10 tourist tax last year. and makes us a very generous offer line with soft global markets. said it planned to allow financial
again called for a tourist tax to be The Dublin cut comes after Ryanair for the Aer Lingus shares, we have The eighth-largest sovereign wealth institutions to invest in wholly-owned
scrapped and airport charge increases said last month it would cut UK win- every intention of holding on to fund in the world said 78 per cent of investment company SeaTown within
to be reversed. ter capacity by 16 per cent from them,” he said. its portfolio was in Asia as of the end three to five years, the first step in
Europe’s biggest low-cost carrier November, blaming the UK govern- Ryanair has said it could still bid of March, up from 74 per cent a year allowing public participation in
will cut its Dublin base to 12 aircraft ment’s Air Passenger Duty and for Aer Lingus despite losing a legal previously, and that it planned to Temasek.
from 14 aircraft this winter and will adding the move would lower its challenge to a 2007 veto by EU regula- remain overweight on the region for Earlier this month it emerged
operate less than 850 weekly flights costs and boost profits. tors against its second attempt to buy the forseeable future. Temasek has hired former minister
from the airport compared to 1,000 Speaking at a news conference, its rival. “Notwithstanding global re-adjust- Baroness Vadera as a consultant.

Stewarts Law BEST OF THE BROKERS


ANALYSIS l Provident Financial
920 p
850.00
ANALYSIS l Total
46 € 38.14
8 Jul
ANALYSIS l Marks & Spencer
390 p

signs merger
900 8 Jul 44 348.00
370
8 Jul
42

860 40
350
38

with Masseys
820 36 330

34
12 Mar 30 Apr 21 May 11 Jun 1 Jul 12 Mar 30 Apr 21 May 11 Jun 1 Jul 12 Mar 30 Apr 21 May 11 Jun 1 Jul

PROVIDENT FINANCIAL TOTAL MARKS & SPENCER


Numis has issued a “buy” recommendation UBS has raised its rating on Total to “buy” Citigroup has given Marks & Spencer
for Provident Financial and with the inter- noting that the oil group has stepped up (M&S) a “hold” rating and said in general

LEGAL im results coming up it details what it acquisition activity recently. Says its pur- merchandise, M&S looks to be the benefici-
igation, antitrust and employment
BY EMMA SADOWSKI and is currently representing brokers expects from the two core divisions: con- chase of a 20 per cent stake in the Fort ary of trading up activity with its exposure
LITIGATION specialist Stewarts Law suing Commerzbank over unpaid sumer credit and Vanquis. Overall, despite Hills project adds to Total’s critical mass in to a more confident older customer.
has acquired City banking disputes bonuses.
boutique firm Masseys. The City based firm has doubled
the current tough market conditions, the oil sands. Belives this is an important However, Citi notes that this older cus-
The merger, which is set to go live the number of partners in the last Numis said it expects the group interim improvement, although it has some reser- tomer was the first to enter the demand
next month, will see Massey’s found- two years, while revenue at the firm profits to be broadly flat. vations in terms of the quality of the assets. slowdown in Apr to June 2008.
ing partners Jane Colston and Sean has increased £11m to £20m over the
Upson alongside, Fiona Gillett and same period. To appear in Best of the Brokers email your research to notes@cityam.com
Fiona Stewart move their team to Managing partner John Cahill at
Stewarts to create a new 35 partner Stewarts said: “We are delighted that

PT’s golden shares ruled illegal by EU


law firm. Masseys will be joining us, they have
Massey’s, which was launched six a fantastic reputation and will add
years ago by a group of former Baker further strength and depth to the
& McKenzie lawyers, is known for its services we are able to offer to our
banking litigation practice in the City commercial litigation clients. During
and recently acted for Forum Global our discussions we were struck by the
Equity in its litigation against Bear extent of our shared values and Vivo, Brazil’s top cellphone company, dent Jose Manuel Barroso, who is

TELECOMS
Stearns. vision. We will work together to estab- to joint venture partner, Spanish peer Portuguese, said the ruling con-
The two will merge financially next lish Stewarts Law as a leading litiga- THE European Court of Justice ruled Telefonica, for €7.15bn (£6bn). firmed the Commission’s view that
month, with Massey’s lawyers joining tion brand”. yesterday that Portugal’s golden The Portuguese government said it golden shares distort the single mar-
Stewart’s commercial litigation share in Portugal Telecom (PT) broke respects the court’s decision but will ket. The EC has been on a drive to
department. Stewarts Law EU rules, opening the way to a possi- look at ways to comply with EU law abolish golden shares in the last five
Upson said: “We are proud of what managing partner ble conclusion of PT’s sale of its that also safeguard national interests. years because it says they act as a bar-
we have achieved at Masseys and are Brazilian unit to Telefonica. Some analysts interpreted the state- rier to cross-border investment.
now excited to be joining Stewarts
John Cahill will see the Portugal stunned investors last ment as indicating the government Tim Daniels, an analyst at Olivetree
Law to help them build their litiga- firm’s banking disputes week by using its golden share to was likely to attempt to wring conces- Securities in London, said that
tion only brand.” business soar. block a shareholder vote overwhelm- sions from Telefonica. Telefonica would have to change its
Stewarts advises on commercial lit- ingly in favour of selling PT’s stake in European Commission (EC) presi- offer, favouring the government.

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

In addition, Mark Dynes and Kieran UniCredit Group Arnold & Porter as a partner in 2004
Jones Lang LaSalle Mullaley have also joined the practice The German banking group has after 18 years as a partner at Denton
The property-focused financial and professional as directors. Mullaley was also from appointed Peter Schaede as head of Wilde Sapte in London.
services firm has appointed James Brown from Capco, while Dynes worked as a direc- German equity capital markets, effec-
Grosvenor as its new head of retail research tor in financial services strategy con- tive immediately. Talaris
and consultancy for the EMEA region. sulting at Deloitte. Schaede joined the firm in 2005 as The cash management solutions firm
Brown is currently UK director of research at global head of execution and documen- has appointed a new chief executive in
Grosvenor, where he is responsible for property Mizuho International tation in the equity capital markets the form of Tim Robinson.
market forecasting and analysis of demand, Mizuho’s London-based securities and team. Prior to that, he had worked as a Robinson, 46, was most recently
supply and values, local market and catchment investment banking arm has hired Shu capital markets lawyer at Clifford chief executive of private equity-backed
and retail performance. He was previously head Yang, Elliot Blair and James Godfrey to Chance. pensions and financial services group
of retail research at DTZ and Donaldsons. its fixed income business. Xafinity. He started his career at IBM,
Yang has become a government Reynolds Porter Chamberlain where he spent 11 years progressing
Both join from Capco. Bedford will be rates trader, having previously worked The City law firm has hired intellectual through the ranks to director in the UK.
Ernst & Young responsible for building and leading the for Lehman Brothers. Blair joins in property partner Clive Thorne from its At Talaris, he replaces Tracey
Dai Bedford and Keith MacDonald have banking and capital markets operations August as a euro SSA trader from rival Arnold & Porter. Graham, who has led the business since
been appointed as partners in the in the division, while MacDonald will Incapital Europe, while Godfrey will join Thorne, who joins RPC’s IP, technolo- September 2005, including the Carlyle-
accountancy firm’s EMEIA perform- help build up the operations and cus- the team in September as a credit trad- gy and outsourcing group, has over 30 backed management buyout from De
ance improvement practice. tomer side. er from Daiwa Capital Markets. years of legal experience. He joined La Rue.

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
Markets&Investment
16 CITYA.M. 9 JULY 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 . . . . . . . . . . . . . . . . . . . . . . . .277.40* +4.80 314.80 216.75 COLT Group . . . . . . . . . . . . . . . .125.40 +0.40 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .50.80 +1.55 71.75 31.75 Schroders . . . . . . . . . . . . . . . . .1230.00 +38.00 1450.00 764.00
3i Infrastructure . . . . . . . . . . . . . 113.80* +1.60 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .539.00* +12.50 574.50 307.75 Jardine Lloyd Thompson. . . . . . .554.00 +16.00 604.50 399.00 Schroders N/V. . . . . . . . . . . . . .1019.00 +35.50 1185.00 643.50
A.B. Foods . . . . . . . . . . . . . . . . .995.00 +14.50 1045.00 752.00 Cookson . . . . . . . . . . . . . . . . . . .423.60 +17.10 616.00 220.00 Johnson Matthey . . . . . . . . . . .1542.00* +17.00 1814.00 1108.00 Scot. & Sthrn Energy. . . . . . . . . 1181.00 +4.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .128.50 +3.20 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1091.00 +22.00 1095.00 535.00 Kazakhmys . . . . . . . . . . . . . . . .1061.00 +23.00 1634.00 574.50 Scottish Mortgage. . . . . . . . . . . .569.50 +10.50 623.50 376.00
Admiral. . . . . . . . . . . . . . . . . . .1468.00 +23.00 1483.00 863.50 CSR . . . . . . . . . . . . . . . . . . . . . .376.50 +2.40 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .126.70 –0.90 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .274.20 +5.20 403.10 244.00
Aegis . . . . . . . . . . . . . . . . . . . . .106.40 — 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .457.50* +6.20 539.00 279.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .220.00 +1.70 255.00 179.90
Afren . . . . . . . . . . . . . . . . . . . . . .87.45 +0.95 111.00 48.50 Dana Petroleum . . . . . . . . . . . .1415.00 +6.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .132.40 +1.40 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .564.50 +5.50 656.50 394.30
African Barr Gold . . . . . . . . . . . .593.50 +7.00 685.00 520.50 Davis Service . . . . . . . . . . . . . . .374.10 +6.10 442.30 311.25 Lancashire Hldgs . . . . . . . . . . . .515.50 — 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1273.00* +23.00 1310.00 921.00
Aggreko . . . . . . . . . . . . . . . . . .1545.00 +83.00 1545.00 492.50 De La Rue . . . . . . . . . . . . . . . . . .927.50* +7.50 1021.00 808.50 Land Securities . . . . . . . . . . . . . .587.50* +10.50 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .383.30 +12.30 426.50 285.25
Alliance Trust . . . . . . . . . . . . . . .313.00* +8.10 352.70 260.25 Debenhams . . . . . . . . . . . . . . . . .62.25 +2.25 91.95 51.95 Legal & General . . . . . . . . . . . . . .83.85 +3.05 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1428.00 +47.00 1526.00 818.00
AMEC . . . . . . . . . . . . . . . . . . . . .859.50 +12.00 891.00 603.50 Derwent London . . . . . . . . . . . .1305.00 +38.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .60.70 +2.51 75.58 40.42 SIG . . . . . . . . . . . . . . . . . . . . . . .104.50 +4.50 146.60 86.75
Amlin . . . . . . . . . . . . . . . . . . . . .408.00 +3.20 428.50 291.00 Dexion Absolute . . . . . . . . . . . . .139.00 +1.10 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . .107.10 +0.60 149.10 74.50 Smith & Nephew . . . . . . . . . . . . .584.00 +6.00 700.50 435.25
Anglo American . . . . . . . . . . . .2412.00 +46.50 3015.50 1557.50 Diageo . . . . . . . . . . . . . . . . . . .1085.00 +24.00 1176.00 857.00 London Stk Exchange . . . . . . . . .586.00 +12.00 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1112.00 +33.00 1186.00 677.50
Antofagasta . . . . . . . . . . . . . . . .851.50 +28.00 1100.00 568.50 Dimension Data . . . . . . . . . . . . . .93.90 –1.10 105.00 54.75 Lonmin . . . . . . . . . . . . . . . . . . .1459.00 +33.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . . .412.00 +4.80 444.60 380.60
Aquarius Platinum . . . . . . . . . . .299.70 +5.50 490.00 172.75 Domino’s Pizza . . . . . . . . . . . . . .399.40 –0.60 404.70 203.50 Man . . . . . . . . . . . . . . . . . . . . . .218.40* +1.30 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .791.50 +29.50 928.00 512.50
ARM Holdings . . . . . . . . . . . . . . .290.40 +9.80 362.40 116.00 Drax . . . . . . . . . . . . . . . . . . . . . .390.00 +0.20 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .348.00* +4.60 412.70 303.75 Spirax-Sarco Eng . . . . . . . . . . .1514.00 +36.00 1591.00 809.00
Arriva . . . . . . . . . . . . . . . . . . . . .767.00 +1.50 782.50 378.50 DSG Intl . . . . . . . . . . . . . . . . . . . .27.18 +1.23 39.75 19.25 Meggitt . . . . . . . . . . . . . . . . . . . .316.30 +5.90 331.00 151.75 Spirent Comms . . . . . . . . . . . . . . 115.20 +1.00 127.80 54.50
Ashmore . . . . . . . . . . . . . . . . . . .253.10 +9.30 311.20 183.25 Dunelm . . . . . . . . . . . . . . . . . . . .343.50 +2.90 438.40 202.50 Melrose . . . . . . . . . . . . . . . . . . .225.50 +7.30 251.50 90.00
Astrazeneca . . . . . . . . . . . . . . .3184.00 +65.00 3262.00 2644.00 Easyjet . . . . . . . . . . . . . . . . . . . .409.50 +5.30 499.90 260.00 Mercantile IT . . . . . . . . . . . . . . . .893.00* +3.00 1002.00 726.00 Sports Direct Intl . . . . . . . . . . . . .108.80 –1.40 134.00 72.50
Atkins(Ws) . . . . . . . . . . . . . . . . .685.50 +11.50 747.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .394.10* +5.60 412.40 298.50 Michael Page Intl. . . . . . . . . . . . .385.80 +17.20 461.50 231.75 SSL Intl . . . . . . . . . . . . . . . . . . . .861.50 +29.50 893.50 522.50
Autonomy Corp . . . . . . . . . . . .1900.00 +52.00 2012.00 1121.00 Electrocomponents . . . . . . . . . . .222.20* +5.70 245.00 134.25 Micro Focus . . . . . . . . . . . . . . . .437.00 +4.30 550.00 300.90 St James’s Place . . . . . . . . . . . . .234.80 +5.80 296.90 172.25
Aveva . . . . . . . . . . . . . . . . . . . .1240.00* +41.00 1248.00 666.50 EnQuest . . . . . . . . . . . . . . . . . . .101.90 — 112.70 87.35 Millen & Copthorne . . . . . . . . . . .430.00 +12.30 496.30 227.75 Stagecoach. . . . . . . . . . . . . . . . .182.90 +1.50 204.90 123.50
Aviva . . . . . . . . . . . . . . . . . . . . .338.30 +5.20 474.00 274.75 Essar Energy . . . . . . . . . . . . . . .448.30 –5.90 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .244.20 +5.60 281.70 165.25 Standard Chartered . . . . . . . . . .1694.50 +1.00 1847.00 1119.00
Babcock International . . . . . . . . .624.50* +5.50 660.50 448.50 Eurasian Nat Res . . . . . . . . . . . .865.50 +13.50 1276.00 632.00 Mitchells & Butlers . . . . . . . . . . .295.60 +5.10 343.90 228.30 Standard Life . . . . . . . . . . . . . . .186.90 +4.50 237.00 170.00
BAE Systems . . . . . . . . . . . . . . .320.50 +2.80 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .586.50* +11.00 630.00 218.25 MITIE . . . . . . . . . . . . . . . . . . . . .217.60* +2.10 281.70 198.70 SuperGrp . . . . . . . . . . . . . . . . . .820.00 +15.00 825.00 499.00
Balfour Beatty . . . . . . . . . . . . . . .246.40 +4.20 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .597.00* +8.00 664.50 437.50 Mondi . . . . . . . . . . . . . . . . . . . . .399.80 +13.80 488.00 187.50 TalkTalk . . . . . . . . . . . . . . . . . . .120.40 +0.20 147.10 106.60
Barclays . . . . . . . . . . . . . . . . . . .302.00 +10.40 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .93.25 +0.25 96.80 73.50 Monks Inv Tst . . . . . . . . . . . . . . .287.40* +4.40 321.20 222.00 Talvivaara Mining . . . . . . . . . . . .388.00 +9.90 501.50 321.50
Barratt Development . . . . . . . . . .102.10 +3.30 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .269.30 +15.40 396.20 112.00 Morrison Wm . . . . . . . . . . . . . . .281.10 +1.40 306.30 241.00 Tate & Lyle . . . . . . . . . . . . . . . . .480.00* –4.10 509.00 284.75
BBA Aviation . . . . . . . . . . . . . . .191.10 +2.30 220.00 110.00 FirstGroup . . . . . . . . . . . . . . . . .381.90 +7.20 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .846.50 +11.50 893.50 593.50 Taylor Wimpey . . . . . . . . . . . . . . .27.38 +0.57 54.90 24.29
Beazley. . . . . . . . . . . . . . . . . . . . 118.90 +1.50 124.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .270.90 +6.60 297.20 210.25 National Express. . . . . . . . . . . . .231.40 +7.40 256.80 135.99 Telecity . . . . . . . . . . . . . . . . . . . .393.90 +16.90 455.00 298.00
Bellway. . . . . . . . . . . . . . . . . . . .624.00 +24.00 927.50 580.50 Fresnillo . . . . . . . . . . . . . . . . . .1060.00 +28.00 1115.00 438.00 National Grid . . . . . . . . . . . . . . .502.00* — 607.65 469.37
Berkeley . . . . . . . . . . . . . . . . . . .833.00 +15.00 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .266.00 –1.00 285.70 208.50 Next . . . . . . . . . . . . . . . . . . . . .2070.00 –5.00 2360.00 1501.00 Templeton Emrg Mkts . . . . . . . . .536.50* +5.50 598.00 349.50
BG . . . . . . . . . . . . . . . . . . . . . .1086.50 +11.00 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .456.00 +2.50 484.00 370.00 Northumbrian Water . . . . . . . . . .322.60 +4.30 326.10 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .393.95* +1.80 454.90 347.60
BHP Billiton . . . . . . . . . . . . . . .1819.00 +30.00 2346.00 1274.50 GKN . . . . . . . . . . . . . . . . . . . . . .127.00 +5.70 155.00 71.75 Old Mutual . . . . . . . . . . . . . . . . . 113.10 +3.80 127.20 74.60 Thomas Cook . . . . . . . . . . . . . . .189.10 +7.80 277.20 172.30
BlackRock Mining . . . . . . . . . . . .543.00 +4.00 654.50 346.00 GlaxoSmithKline . . . . . . . . . . . . 1142.00* +24.50 1347.00 1064.50 Partygaming . . . . . . . . . . . . . . . .236.20 +5.90 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .230.30 +4.50 261.10 141.75
Booker . . . . . . . . . . . . . . . . . . . . .41.27* +0.21 49.50 33.00 Great Portland Estates . . . . . . . .300.30 +11.30 332.10 203.75 Pearson . . . . . . . . . . . . . . . . . . .907.00 +25.50 1069.00 574.00 Travis Perkins . . . . . . . . . . . . . . .783.00 +12.00 915.00 539.00
BP . . . . . . . . . . . . . . . . . . . . . . .367.00 +4.95 658.20 296.00 Greene King . . . . . . . . . . . . . . . .436.50 +7.60 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .573.00 +1.50 582.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .221.10 +4.80 313.90 202.30
Brit Insurance . . . . . . . . . . . . . . .907.00* –18.00 975.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .523.50* +10.00 562.50 307.00 Persimmon . . . . . . . . . . . . . . . . .388.00 +13.40 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .343.00 +10.40 436.20 261.20
British Airways . . . . . . . . . . . . . .205.40 +6.40 255.80 117.30 Halma . . . . . . . . . . . . . . . . . . . . .283.30 +6.10 287.40 184.00 Petrofac . . . . . . . . . . . . . . . . . .1246.00 +37.00 1294.00 633.50 Tullow Oil . . . . . . . . . . . . . . . . . 1130.00 +22.00 1375.00 834.50
British Amer. Tob . . . . . . . . . . . 2211.00 +38.50 2335.50 1676.00 Hammerson . . . . . . . . . . . . . . . .357.70 +10.30 460.30 277.00 Petropavlovsk . . . . . . . . . . . . . .1215.00 +21.00 1370.00 516.50 UK Commercial Prop. . . . . . . . . . .80.00 — 84.90 62.25
British Empire Tst . . . . . . . . . . . .422.10 +7.90 467.90 338.50 Hargreaves Lansdown . . . . . . . .335.00 +9.50 387.00 197.25 Premier Farnell . . . . . . . . . . . . . .235.00 +12.00 252.60 122.25 Ultra Electronics . . . . . . . . . . . .1571.00 +7.00 1678.00 1094.00
British Land . . . . . . . . . . . . . . . .456.60* +3.50 532.00 353.00 Hays . . . . . . . . . . . . . . . . . . . . . . .95.15 +4.60 119.00 80.00 Premier Oil . . . . . . . . . . . . . . . .1415.00 +12.00 1437.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1827.00 +29.00 2024.00 1422.00
Britvic. . . . . . . . . . . . . . . . . . . . .501.00 +3.00 505.00 286.25 Henderson . . . . . . . . . . . . . . . . .125.70 +3.80 157.80 87.75 Provident Financial . . . . . . . . . . .851.00 –7.50 986.00 763.00 United Utilities . . . . . . . . . . . . . .548.00* +9.50 575.00 429.00
Brown(N.) . . . . . . . . . . . . . . . . . .251.70* +3.10 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .430.00 +5.00 587.00 368.70 Prudential . . . . . . . . . . . . . . . . . .518.00 +16.50 665.00 350.25
BSkyB . . . . . . . . . . . . . . . . . . . .694.50 — 732.00 464.50 Hikma Pharma . . . . . . . . . . . . . .712.00 –3.00 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .347.50 –3.50 356.40 198.00 Utd Business Media . . . . . . . . . .517.00 +15.00 579.50 364.75
BT . . . . . . . . . . . . . . . . . . . . . . .136.00 +1.10 151.00 99.50 Hiscox . . . . . . . . . . . . . . . . . . . .349.00 +0.70 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . .125.30 +1.10 179.10 113.90 Vedanta Resources . . . . . . . . . .2264.00* +46.00 2967.00 1264.00
Bunzl . . . . . . . . . . . . . . . . . . . . .691.00 +16.50 784.50 510.00 Hochschild Mining . . . . . . . . . . .318.10 +3.60 370.60 220.00 Randgold Resources. . . . . . . . .6245.00 –40.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . . 1158.00 +22.00 1193.00 555.50
Burberry . . . . . . . . . . . . . . . . . . .787.00* +28.50 815.50 403.25 Home Retail . . . . . . . . . . . . . . . .226.80* +0.90 336.50 208.50 Reckitt Benckiser . . . . . . . . . . . 3116.00 +6.00 3667.00 2686.00 Vodafone . . . . . . . . . . . . . . . . . .143.30* +1.40 153.80 111.90
Cable & Wire Comms . . . . . . . . . .60.00* +1.00 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2104.00* +29.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .516.50 +6.50 548.00 403.75 VT . . . . . . . . . . . . . . . . . . . . . . .795.00† — 799.00 416.00
Cable & Wire Wwide . . . . . . . . . . .87.65* +0.05 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .623.20* +8.50 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .73.05 +2.15 125.50 61.00 Weir . . . . . . . . . . . . . . . . . . . . . 1159.00 +31.00 1183.00 437.50
Cairn Energy. . . . . . . . . . . . . . . .453.80 +12.40 460.50 306.80 Hunting . . . . . . . . . . . . . . . . . . .481.70 +17.70 659.50 377.00 Rentokil Initial . . . . . . . . . . . . . . . 110.80 +3.70 140.20 82.25 WH Smith . . . . . . . . . . . . . . . . . .414.90 –2.10 551.00 396.00
Caledonia Invs . . . . . . . . . . . . .1610.00 +10.00 1759.00 1495.00 ICAP . . . . . . . . . . . . . . . . . . . . . .420.00 +5.00 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .70.00 — 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1405.00* +35.00 1645.00 778.50
Capita . . . . . . . . . . . . . . . . . . . . .744.00 +8.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .470.00 +7.60 473.00 261.25 Rexam . . . . . . . . . . . . . . . . . . . .305.40 +9.60 331.20 222.50 William Hill . . . . . . . . . . . . . . . . .175.70 +2.00 217.80 160.50
Capital & Counties . . . . . . . . . . . 110.00 +1.10 125.40 99.60 Imagination Tech Gp . . . . . . . . . .308.70 +16.80 311.60 132.50 Rightmove . . . . . . . . . . . . . . . . .628.00 +11.50 729.00 334.00 Witan Inv Tst . . . . . . . . . . . . . . . .433.00 +6.20 487.00 329.50
Capital Shopping Centres . . . . . .320.50 +6.90 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .719.50 +22.50 756.50 275.25 Rio Tinto . . . . . . . . . . . . . . . . . .3073.50 +37.50 4104.00 1822.00 Wolseley . . . . . . . . . . . . . . . . . .1385.00 +26.00 1742.00 1026.00
Carillion . . . . . . . . . . . . . . . . . . .318.20 +4.00 361.90 244.00 Imperial Tobacco. . . . . . . . . . . .1884.00 +2.00 2159.00 1575.00 RIT Capital Partners . . . . . . . . .1210.00 +6.00 1215.00 890.00
Carnival . . . . . . . . . . . . . . . . . .2200.00 +18.00 2937.00 1574.00 Inchcape. . . . . . . . . . . . . . . . . . .267.50 +11.60 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .581.50 +15.50 631.50 346.50 Wood Group (John). . . . . . . . . . .342.20 –2.10 411.70 231.25
Catlin . . . . . . . . . . . . . . . . . . . . .361.20 +6.20 380.50 284.75 Informa . . . . . . . . . . . . . . . . . . . .364.90 +8.80 439.40 217.75 Rotork . . . . . . . . . . . . . . . . . . .1367.00* +37.00 1482.00 779.50 WPP . . . . . . . . . . . . . . . . . . . . . .647.00 +17.50 744.00 380.50
Centamin Egypt . . . . . . . . . . . . .157.00 +4.40 174.75 77.86 Inmarsat . . . . . . . . . . . . . . . . . . .735.50 +4.50 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .44.36 +1.53 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . . .936.00 +26.60 1344.50 555.10
Centrica . . . . . . . . . . . . . . . . . . .308.20 +0.70 320.00 212.50 Intercontl Hotels . . . . . . . . . . . . 1114.00 +14.00 1244.00 584.50 Royal Dutch Shell A . . . . . . . . .1741.50 +62.50 2068.50 1431.00 Yell Group. . . . . . . . . . . . . . . . . . .26.92 +0.72 86.00 21.00
Charter Intl . . . . . . . . . . . . . . . . .657.00 +15.00 855.50 406.50 Intermediate Capital . . . . . . . . . .264.20 +5.00 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1667.00 +64.00 1997.50 1437.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . . 3011.00 +50.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1575.00 +54.00 1585.00 1024.00 RSA Insurance . . . . . . . . . . . . . .124.00 +1.50 142.00 113.10
Chloride Group . . . . . . . . . . . . . .371.50* +2.00 390.50 129.00 Intl Power . . . . . . . . . . . . . . . . . .314.90 +4.90 354.00 231.00 SABMiller . . . . . . . . . . . . . . . . .1946.50 +53.50 2090.00 1210.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .689.50 +3.00 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .258.80* +6.40 350.30 212.25 Sage . . . . . . . . . . . . . . . . . . . . . .235.70 +4.30 260.50 167.20
Cobham . . . . . . . . . . . . . . . . . . .226.30 +2.50 278.60 173.20 Investec . . . . . . . . . . . . . . . . . . .465.30 +11.20 565.00 324.25 Sainsbury(J) . . . . . . . . . . . . . . . .341.00* –3.30 373.00 307.60 www.interactivedata.com

YOU READ HIM DAILY, NOW


WATCH HIM EVERY FRIDAY
Allister Heath gives his views on the market and economic situation
VISIT WWW.CITYAM.COM SPONSORED BY

Bidding war for state’s banking assets Wall Street up for third
boosts FTSE 100 as financials rally day as retail sales cheer
gainers, led by state-backed Lloyds lenders. The Dow rose more than one per

THELONDON Banking Group and Royal Bank of


Scotland, up 4.3 and 4.0 per cent
“A number of factors have com-
bined to improve risk appetite over THENEW YORK cent, bolstered by late-day buying.
Consumer staples were the S&P’s

REPORT
respectively after reports that two
senior British banking figures have
joined forces to back a new bid vehi-
cle which will list on the London
the past few days,” said Michael
Hewson, analyst at CMC Markets.
“As far as the UK is concerned there
is little concern about UK banks as
REPORT best-performing sector, with Costco
Wholesale rising 2.6 per cent at
$55.71. The sector gained 1.5 per cent.
The Dow Jones industrial average

B W
ANKS lifted Britain’s top shares stock market and look to purchase they have already passed much more ALL STREET rose for a third was up 120.71 points, or 1.20 per
yesterday, with Royal Bank of British banking assets. stringent tests, which had been previ- straight day yesterday as cent, at 10,138.99. The Standard &
Scotland and Lloyds Banking Lloyds was also helped by a Bank of ously done by the UK authorities investors were encouraged Poor’s 500 Index was up 9.98 points,
Group top performers on America Merrill Lynch note, which some time ago.” to see jobless claims fall and or 0.94 per cent, at 1,070.25. The
reports that a new bid vehicle will reiterated its stance that the Lloyds Meanwhile, Credit Suisse raised its a handful of large retailers report Nasdaq Composite Index was up
seek to buy British banking assets. share price would double over the weighting on European banks to solid sales. 15.93 points, or 0.74 per cent, at
The FTSE 100 index was up 90.63 next two years. benchmark from 10 per cent under- Stocks have regained their footing 2,175.40.
points, or 1.8 per cent, at 5,105.45, ris- Fears over the bank sector’s expo- weight in a global equity strategy after a slew of poor data had raised About 8.1bn shares traded on the
ing for a third consecutive day. It sure to Europe’s sovereign debt crisis note on Wednesday. fears of a double-dip recession. But New York Stock Exchange, the
closed up 49.82 points, or one per were also soothed as European super- Adding to bullish sentiment, US low market volume suggested American Stock Exchange and
cent, on Wednesday. visors shored up some confidence in peer State Street increased its profit investors are still skeptical, and few Nasdaq, well below last year’s esti-
Banks were among the biggest the stress tests they are imposing on forecast on Wednesday. expect to see a sustained rally. mated daily average of 9.65bn.
CITYA.M. 9 JULY 2010 Investment | Personal Finance 17

Safeguard your possessions PERSONAL


FINANCE NEWS
BY VERITY PUGH
MILLIONAIRE PROPERTIES ARE BACK
According to new research from Santander
Mortgages, Britain has seen a 393 per cent
increase in the number of property million-
aires since 2000. While 43,000 homes lost
their value to take them under the £1m
mark during the credit crunch, the numbers
have risen again to nearly 147,000, the
level they were during the peak in early
2008. The research also uncovered that
around 78 per cent of these homes worth
over £1m are in Greater London. While SW
postcodes unsurprisingly claimed the
largest percentage of the nation’s million-
aire properties, SE postcode areas also
showed a promising 23-fold increase in
property millionaires in the last decade.
Most positive for the property market is
that the number of prospective buyers for
these properties has risen 20 per cent.

AEGON LAUNCHES SIX PROTECTED FUNDS


Six new protected funds have been
launched by Aegon Ireland. The funds aim
to provide equity exposure while retaining a
level of capital protection. Aegon offers
exposure to equity markets such as Japan,
Asia and North America as well as emerg-
ing markets worldwide. All six funds
include constant proportion portfolio insur-
ance (CPPI), meaning the equities and cash
that are being invested in are constantly
shifted, providing a minimum level of pro-
tection. Aegon’s David Aaron says the fund
would be aimed at customers who seek
returns from equity investment, but who
are reassured by the security of capital pro-
Don’t underestimate Keep your home well
protected
ing any cover at all is taking a huge unnec-
essary risk – problems such as subsidence,
people will value their possessions at
around £20,000-£25,000. In reality, the
tection.

how much your Picture: GETTY


burst pipes, personal liability and even
boiler breakdown in some cases could
average house has around £50,000 worth
of contents, of which £8,000 is stored in
SUCCESS OF FUNDS OF HEDGE FUNDS
Standard & Poor’s Fund Services’ latest
possessions are worth, land you with a bill well into the thou-
sands of pounds, she warns.
the wardrobe alone. Contrary to popular
opinion, most claims are because of flood-
review has found that funds-of-hedge-funds
(FOHFs) managers have built on the
says Jessica Mead Most mortgage providers require you to
take out buildings insurance as a condi-
ing or water leakages rather than theft.
This can damage hardwood floors, soft fur-
absolute performance in the second half of
2009 and continued to improve liquidity in
tion of your loan but there is no legal nishings and possessions, which would be portfolios. S&P Fund Services’ lead analyst
requirement to take out contents insur- included in your contents insurance. Randal Goldsmith said he thinks that the

F
ROM “an Englishman’s home is his ance. The vast majority of people – 80 per If you have a number of expensive high success is down to limiting investment to
castle” to “keeping up with the cent – who buy insurance take out a com- risk items – ie, those that an insurer the more liquid strategies and Ucits III-reg-
Joneses”, there are plenty of old bined buildings and contents policy, says deems likely to either get broken or stolen ulated products. On the back of this, S&P
adages evoking Britons’ love for their Darren Black, head of home insurance at – you must make sure you list all your Fund Services has launched a new fund
houses and their possessions. Combine Confused.com. In the event of a burst high-risk items such as an entertainment group within its FOHFs’ Directory, which
this with our customary practice of pipe, which would require claims on both system when you apply for the policy. For contains five Ucits III-regulated funds-of-
preparing for the worst and you might buildings and contents policies, it is vastly example, men’s watches are rarely listed funds as well as a UK-authorised fund-of-
think that we would be rather conscien- easier to deal with just one insurer. but can be very expensive. alternative-investment-funds (FAIF).
tious about insuring our homes and their But how much should you insure your It is also worth asking prospective insur-
contents. home and its contents for? Most buildings ance providers about individual single BRITONS FUNDING HOLIDAYS WITH DEBT
Not so, according to a recent study con- insurance policies ask you to estimate the item limits. This can vary, says Black who Britons are choosing to stretch their wal-
ducted by online comparison website cost of rebuilding your home – a question notes that Hiscox is the premium lets to go on holiday this summer with a
Moneysupermarket.com. In fact, it reck- which baffles most. Confused.com esti- provider: “It has an excellent claims expe- third racking up debt to fund their get-
ons that nearly 1.5m homeowners are put- mates that 90 per cent of people put in the rience and customer account manage- away, a survey from Bright Grey has found.
ting their properties at risk with market value of their homes, usually a ment but it would be one of the more Over half do not have the money readily
inadequate cover and 250,000 have no gross overestimate. On its website, there is expensive providers out there.” Other well- available to repay their debtors straight
cover at all for their homes. The survey a calculator which can help you value the regarded insurance providers include away, meaning they could face additional
also shows that London and the South rebuild costs more accurately. Lloyds TSB and Saga (which does quote for interest payments. Nearly one in seven
East are the least protected areas. In contrast, most people really underes- everybody, not just for retirees). people said that they have to have a holi-
Julie Owens, head of home insurance at timate how much their contents are If the worst does happen, having insur- day every year, irrespective of their cur-
moneysupermarket.com says that not hav- worth. Black says that about 60 per cent of ance provides at least some comfort. rent financial situation.

Store up your
ness, there are great opportunities to LLOYDS TSB AIRMILES DUO CARD ning until September for account holders,
store up airmiles to be redeemed on The bonuses with offering the chance to win 1m airmiles.
flights for your next holiday. Here are this card are that
three of the best at offering air travel it has the lowest AMERICAN EXPRESS BRITISH
rewards. APR rate of the AIRWAYS CARD

miles to jet
three on this page, This card almost
VIRGIN ATLANTIC WHITE CARD at 15.9 per cent. seems too good to
This card offers Other benefits be true, with one
the reward of include the 0 per BA Mile for almost
3000 Flying Club cent fee on balance transfers for six every £1 spent and

off on holiday
Virgin miles on months, however this comes on condi- no annual fee.
your first pur- tion that you spend at least £100 in the Unfortunately, it
chase, You then first three months. After the six month is. While there are great benefits with
get one Flying period, this balance transfer fee also hikes this card – including 1,000 bonus BA
Club mile for up to 3 per cent, so is not as convenient Miles if you spend £500 in the first three
every £1 spent using the card. Also, for flexibility. months and a companion voucher for any
when you spend more than £15,000 in The duo card system means you receive flight you redeem your miles on if you
Verity Pugh looks at some of the one year, there are companion reward
flights available.
one Mastercard which gives one airmile
for every £50 spent and one American
spend over £20,000 on the card in one
year – there are also catches. The card
best airmiles credit cards on offer The drawbacks are that there are no
introductory offers on purchases, there is
Express card which gives one airmile for
every £10 spent. While this may seem a bit
comes with a 27.9 per cent charge when
making cash withdrawals, a high typical
an interest rate of 17.9 per cent on all pur- excessive to have two cards, the idea APR of 19.9 per cent and no introductory
chases and balance transfers from MBNA behind the scheme is that when spending offers on balance transfers. This card

C
REDIT cards can offer a whole range of cards are not allowed. However, if you are in places that do not accept Amex cards, would therefore suit those who are fre-
rewards, from shopping vouchers to organised with your payments then you you can continue to reap your airmile quent fliers with BA and are organised in
money off your bills. For City workers can receive 46 days worth of interest free rewards with the Mastercard. clearing their balance every month, as
who are frequently jetting off on busi- credit on purchases. There is also currently a prize draw run- failure to do so incurs hefty interest rates.
Living
18 CITYA.M. 9 JULY 2010

| Conversions

Go back to school...
this time in style
There is no need to settle when hunting for
old converted properties, writes Juliet Samuel

E
STATE agents love taking on “conver- these features are unlikely to hold their
sions” – it allows them to market the value as historical buildings. Simon Stone,
“authenticity” of a property. But what of estate agent Davey Stone, says: “There’s
does a conversion actually offer nothing more soul-destroying than going
buyers? to see a conversion and finding that it has
One of the advantages, says Anup fully-plastered walls. When a developer THE GALLERIES, BRENTWOOD OLD COACH HOUSE, TOWER BRIDGE
Pankhania of Jaspar Group, a property con- doesn’t give any character, it’s a bit of a let- Price: £250,000 to £499,950 Price: £1.6m
versions business, is that “you’ve got a spec- down. If you’re going to go for a conversion, These Grade II listed Victorian hospital buildings This 1,912 sq ft coach house conversion retains all its
tacular spaces you’d never get anywhere definitely make sure you’ve got some origi- have been converted into a collection of high quality original character but with modern fittings. The
else”. He’s referring to features like high, nal brick-work and floorboards.” apartments. Each has a bespoke kitchen featuring freehold property retains beautiful vaulted wooden
vaulted ceilings and original craftwork And though it might take some search- integrated stainless steel appliances. Contact: 01277 ceilings. Contact: 020 7407 3173.
found in old chapels and Victorian-era ing, there is no need to settle: England has 202 122. www.the-galleries.net www.hamptons.co.uk
schools. But you need to make sure the no shortage of beautiful old buildings.
developer that took over the building knew
what they were doing: “The buildings are CONVERSIONS | TIPS
almost ill when they come to us and we've
got to give a lot of TLC to get them back up
to scratch,” he says.
One should also remember that convert- l Be aware that heating costs can be high in
ed properties still exist in their original set- older conversions – all that exposed brick can
ting and style. A brochure for a “warehouse have its price.
conversion” might sound classy but if you
l Even more than with other buys, it is impor-
don’t like retro industrial-style architec-
ture, it might actually look like little more tant to have a full survey done on a converted
than a drab brick building. property to make sure there are no nasty
Buyers of conversions need to be pre- maintenance surprises.
pared to revel in the quirky aspects of living
in one, like mezzanine bedrooms and l In particular, check the roof is watertight.
exposed brick walls. Conversions without

THE CHAPEL,
WIMBLEDON
Price: £1,299,950
This converted chapel, lovingly
restored by specialists Jaspar
Group, features a mezzanine
bedroom with its bed set ARCADIAN PLACE, PUTNEY OLD SCHOOL HOUSE, LONDON FIELDS
against the old church organ Price: £575,000 Price: £449,995
and modern fittings built Previously Wandsworth Boys' School, this 1930s This apartment in a Victorian school conversion fea-
around the original pews. It building was refurbished to comprise a series of tures a mezzanine bedroom that makes the most of

Classic
also has a private patio garden. stunning two-bedrooms maisonettes split over two the high ceilings and huge windows. The exposed
Contact: 020 8946 0026. floors, with access to courtyard gardens. Contact: brickwork and feature radiators add to the charm.
www.knightfrank.com 020 8780 0077. www.hamptons.co.uk Contact: 020 7275 7505. www.daveystone.com

A Modern

The Galleries offers a wealth of period features


complemented by beautiful courtyard gardens and all
within commuting distance of the City.
1, 2 & 3 bedroom conversion apartments
priced from £250,000 to £525,000
Call: 01277 202122
Open daily 10am – 5pm
Virtual Tour: www.the-galleries-net
The Galleries, Pastoral Way,
Brentwood, Essex, CM14 5GF
Yes, you can afford
to live here
The Square
Rifle Street, E14
A new perspective on London living, this Viva Apartments
imaginative scheme offers a selection of 1, 2
& 3 bedroom apartments located over 5 floors. Arcola Street
Dalston E8
1 beds from £81,400* Nearest A selection of stunning 1 & 2 bedroom
Station apartments in this new, mixed tenure
2 beds from £99,000* Langdon development in the heart of Dalston.
3 beds from £118,800* Park Station
Nearest
*Based on a 40% share. Viewings by Appointment only 1 beds from £94,600* Station
Dalston
2 beds from £108,800* Kingsland Arbour Square
Viva Apartments *Based on a 40% share. Viewings by Appointment only
Mastmaker Road, Canary Wharf E14
This stunning selection of 1 & 2 bedroom
apartments located in the very heart Arbour Square
of Docklands. West Arbour Street, E1
Nearest Just 3 apartments remaining. Available for
Station
1 beds from £94,600* immediate occupation.
South
Nearest
2 beds from £120,400* Quay
Station
*Based on a 40% share. Viewings by Appointment only 4 beds from £152,000* Lime House
*Based on a 40% share. Viewings by Appointment only

Prices correct at time of going to print July 2010. *Based on a 40% share of the open market value of the apartments advertised. To buy one of these homes you need a household income of at least £27,627 and an
allowance for a deposit and legal fees. Your home is at risk if you fail to keep up repayments on a mortgage, rent or other loans secured on it. Please make sure you can afford the repayments before you take out a mortgage.

For more information, please call

020 8502 5758


www.site-sales.co.uk
Sq a t
a s w le
ua lk
an m nt tic

re
ad in s to
C 10 e as
m ly rtm nt
fro on pa Fa
a

PAN PENINSULA
CANARY WHARF E14
FEATURES INCLUDE:
• private cinema
• 24 hour concierge
EXCLUSIVE STUDIO 1 & 2 BEDROOM, • 50th floor cocktail bar with
stunning panoramic views
1 & 2 BATHROOM APARTMENTS TO
• lavishly equipped health spa
RENT IN A GREAT LOCATION! and fitness complex
This outstanding new development is • a wealth of amenities nearby with many restaurants
located in the heart of Canary Wharf and and bars – all within walking distance
offers unparalleled city living with many TO ARRANGE A VIEWING CALL LISA-JANE STRATTON:
sophisticated on-site facilities.
STUDIO APARTMENTS FROM £260 PW
020 7038 8057 Letting Agents

canarywharf@brlets.co.uk
1 BEDROOM APARTMENTS FROM £345PW www.brlets.co.uk
2 BEDROOM APARTMENTS FROM £500PW London | Hong Kong | Singapore | Dubai
20 Living | The Knowledge CITYA.M. 9 JULY 2010

INTERIORS
very different than if you want to create
a proper study space that can be turned
you need power sockets for a computer?
In terms of office furniture, there are
If your priority is more office than
bedroom, use a daybed rather than a full-
Good storage is
essential in a bathroom
Q&A
into a bedroom on the odd occasion. some off-the-shelf solutions. For exam- size bed. The daybed can be covered with and if you have the budget, then bespoke
Andrew Think about what you need from the
study space as well. Is it essential that
ple, Study Bed provides furniture with
an integrated desk and bed that con-
cushions to provide additional seating
during the day but secretly houses anoth-
cupboards offer the best solution. If the
walls allow, consider creating niches to
Dunning you have a desk or do you just need a verts in a matter of seconds – this is a er mattress underneath to provide a dou- store some of your toiletries in the bath
HEAD DESIGNER, quiet space and a comfortable chair for good option if space is limited. ble bed when needed. area. But think about what you want to
APD INTERIORS reading? Alternatively, if the room has an Decorate the room in subdued colours store – toiletries are obvious but what
Well thought-out storage is essential alcove, you could situate the office space – a bright interior does not tend to about towels and cleaning products?
Dear Andrew, we have a and you should be ruthless with your there – have a desk between the walls, induce a calm working mood. But hang Having storage will ensure the bathroom

Q. spare room and I would like


to turn it into a home office.
Can you give me some advice?
clutter. High-level shelves are a good
way to keep the floor clear for furniture
and your files out of direct sight. If you
shelves above and use floor-to-ceiling
doors to hide the office when you aren’t
using it.
nice artwork and decorate it with care –
remember that the workspace has to be
somewhere you want to spend time.
is less cluttered and a calmer room.
When it comes to tiling, there is a huge
selection available. As a rule, large tiles
do need to have your storage on display, Any desk will need a good quality will help to make a small space look big-
Dear Andrew, I am thinking

A.
First, consider how you want to try to organise it to ensure the room chair – don’t think you can just use one ger and mosaics work well if used in
use the room. If you regularly
have guests staying and need a
study space away from the main bed-
looks ordered when being used as a bed-
room.
Consider the services you need in the
from the dining room when needed. As
you are going to spend a few hours sat
at your desk, consider purchasing a good
Q. about replacing my bathroom,
which is looking rather old
and tired. How do I go about this?
small quantities. If you choose a natural
stone tile, ensure it is sealed before use.
Don't feel like you have to tile the whole
room or living room, your needs will be room – is a telephone line required, do quality, supportive office chair. room – using bathroom-rated paint on a

A.
Start by making a plan of your couple of walls creates a softer look.
existing bathroom. This includes Good lighting is essential and often
measuring the space and noting one fitting is not enough – you will proba-
where the services are – ie, water inlet bly need lighting that illuminates you
and waste pipes. While the new layout when stood in front of the mirror. But
does not need to be the same, bear in remember that all lighting needs to meet
mind that moving the existing plumbing building regulations.
and drainage can significantly add to the If you are planning from absolute
cost of the project even if it does open up scratch, then underfloor heating is a
new possibilities. great thing to consider, especially if you
Bathrooms are often one of the small- have a tiled floor. For an average sized
est rooms in the house so think carefully bathroom, an underfloor heating kit will
about the fittings and their practicality. cost less than £200 with running costs
Many compact fittings are now available, of a few pence per day. This is often suffi-
so consider a smaller sink if space is cient heating but can be supplemented
tight. If you do have the space to be with a heated towel rail. Try to include
indulgent, then choosing a larger bath one with a summer heating element
adds a sense of luxury. The standard size since you can then use the rail even when
is 170cm but larger ones are available the heating is turned off.
and a double-ended one would make it Finally, adding a heated mirror is
ideal for sharing. If the bath is also to be another affordable but very effective lux-
used for showering then you can buy ury. The heating pad can be placed
ones that have more room at one end. behind most mirrors – have it wired in by
A wall-hung WC is a good option if a qualified electrician – and the glass
you are concerned both about space and won’t steam up after a hot shower.
cleanliness. It should be installed using a
purpose-built frame and strong bolts – Andrew Dunning is head designer at
the cistern will be hidden in the frame, APD Interiors, an interior design con-
making the room appear more spacious. sultancy, www.apdinteriors.com.
But remember, you will need to access Follow his design tips on Twitter:
the cistern from time to time. @andrewdunning

FOCUS ON: CHISWICK, W4 BY VERITY PUGH

PRIORY ROAD
Price: £830,000
This is a four-bedroom house with a
kitchen/dining room, reception room,
two bathrooms (one en-suite) and a
garden. Chiswick Park, South Acton
Tube and rail stations are a 10
minute walk. It is just a short dis-
tance from Acton Green common.
Contact: Savills on 020 8987 5550,
www.savills.co.uk

DEVONSHIRE GARDENS
Price: £649,950
This two-bedroom flat is well-located
on a residential avenue. It has a
reception room with bay window, a
modern kitchen and a private patio.
Nearby are Chiswick Rail and Kew
Gardens Tube stations. The river is
also close, as are several shops and
restaurants. Contact: Foxtons on
020 8996 6000, www.foxtons.co.uk

SUTTON COURT ROAD


Price: £495,000
A first-floor flat in a converted
Edwardian house, it has two bed-
rooms. It has been fully refurbished,
but retains a period feel. It is near to
Chiswick Park Tube and Chiswick
mainline station – about 45 minutes
from the City.
Contact: Winkworth on 020 8994
7096, www.winkworth.co.uk
AWARD-WINNING NEW HOMES ACROSS EAST LONDON
Greenwich Creekside, SE8 Stadia, E10

Flagship development of 1, 2 & 3 bedroom apartments in West Greenwich. Five minutes walk from Leyton Central line tube station. Fabulous views over
Six minutes walk to DLR and rail stations. Reserve now! Ready for move-in Coronation Gardens towards Stratford City & the 2012 Olympic Park beyond.
from October 2010.
TWO BEDROOM SHOW APARTMENT NOW
VISIT US AT CREEKSIDE THIS WEEKEND FOR YOUR AVAILABLE, FULLY INTERIOR DESIGN FURNISHED
CHANCE TO WIN O2 CONCERT VOUCHERS*
Sales Centre open daily - call now or check website for times
Sales centre open Monday - Saturday, 10am - 6pm
Price £300,000** Call: 020 8539 8214
Prices from £240,000** Call: 020 8694 8186 (including secured parking - reasonable offers invited!)

Queen Mary’s Gate, E18 Kinetica, E8

Luxury 1, 2 & 3 bedroom apartments in the heart of South Woodford. Now ready for move-in. These contemporary 1, 2 & 3 bedroom
24 hour concierge service, landscaped gardens, secured parking and apartments in Hackney are just five minutes walk from the new East
just ten minutes walk from Central line tube station. London line station at Dalston Junction. Six minutes journey time to
Shoreditch for The City.
END OF SEASON SALE EVENT 22ND - 25TH JULY.
PLUS 3 LUCKY BUYERS WILL WIN A £2500 LIFESTYLE PACKAGE*** Viewing strictly by appointment only

Sales centre open Monday - Saturday 10am - 6pm & Sunday 11am - 5pm Prices from £249,950** Call: 0800 032 0077
Prices from £197,500** Call: 020 8506 1955

0800 032 0077


www.telfordhomes.plc.uk
*Terms, conditions and timescales apply. Registered applicants only are eligible to enter the prize draw. Offer valid until 30th July 2010. **Prices correct at time of going to press. ***Package content may vary, subject to change without notice. Maximum
package value £2,500. Terms, conditions and timescales apply. Reservations must be made by 30th July. CGI of Adagio apartments and Queen Mary’s Gate. Photographs of Stadia and Kinetica.
City Focus
22 CITYA.M. 9 JULY 2010

| Going it Alone

INSURANCE
Bringing panache to lunchtime Q.
What are the basic
kinds of insurance
required of a small
business?
Q&A
Mark Lilley made the jump from
A.
Business insurance requirements
corporate financier to feeding the depend on the firm’s type, but at the
bare minimum you will require public
liability insurance, business motor insurance
City. Kathleen Brooks meets him. and liability insurance for any employees.
While public liability insurance isn’t necessar-
ily legally mandated, most serious businesses

T
HE eureka moment for a new busi- Mark Lilley, the cover themselves for situations in which pub-
ness idea can strike at any time. For founder of Abokado lic customers injure themselves through
Mark Lilley it was while he was eat- using your goods or services, and some com-
ing fresh sushi with his wife in Picture: panies won’t do business with firms that
downtown Sydney in the middle of a Micha Theiner aren’t covered. Business motor insurance is
round-the-world trip in 2002. The result /City A.M. necessary to cover any use of a vehicle by
was a ticket home and opening Abokado, a employee or employer for business purposes.
cross between a sushi bar and a European And if you employ anyone outside your
sandwich shop, in Drury Lane in 2004. immediate family, you are required to take
“For a week in Sydney we ate these sushi out liability insurance to cover the cost of
rolls that had western fillings. You just anyone you hire getting hurt through work,
couldn’t find anything like that in whether they trip over cables or become too
London,” says Lilley. Abokado’s speciality is stressed; the policy has to cover at least £5m
the Shwrap – a western filling in a hand- worth of damages. Additional insurance
held rice roll. The shops are an abundance might also be mandated depending on your
of health: fridges are stocked full of salads, A lack of experience in the food business £0.5m this year. line of work: any company that offers advice,
edamame beans, boxes of fresh sushi and, helped to cushion the blow when it only Lilley’s advice to fellow entrepreneurs is whether it is to individuals or institutions,
of course, Shwraps. made £100 on its first day: “I didn’t know if to go for it: “The worst that can happen is needs to take out indemnity insurance, which
Before embarking on Abokado, Lilley that was good or bad, really. But I did know that you fail, but persistence is key, we covers damages resulting from mistakes in
worked in the corporate brokerage division that we would never break even.” There are could have packed up, but we kept going.” your advice. It is required of a wide range of
of what was Dresdner Kleinwort Benson. now six branches of Abokado and it professions, from hedge fund advisors to
Abokado’s emphasis on healthy eating was employs 60 people. The latest branch CV | MARK LILLEY architects. But apart from the legal require-
part of a change in lifestyle for Lilley: “I recently opened in Euston station. ment, Duncan Philpott of indemnity special-
worked 14-18 hour days in the City, Shops three, four and five were opened Age : 37 hard, but I encourage them to ists Prime Profession says: “It makes good
between eating badly and having no time with the help of two angel investors. Earlier business sense because you’re protecting
to go to the gym I found myself getting a lit- this year, Abokado’s business plan stepped Lives : Twickenham, with his wife have a life outside of work too. I your biggest business asset – which is you.”
tle weighty.” This typical predicament has up a gear when it received private equity and three young children. certainly do.”

Q.
helped Abokado ride the wave of greater funding from Kings Park Capital for anoth- Drives : Honda 4x4 Places you like to eat: “I think What additional insurance is it
health consciousness over the last decade. er 20 branches of Abokado across London. advisable to buy?
Setting up any business is hard, but a And what about the relationship with Book you are reading : “Let My Wahaca is fantastic and it’s so
takeaway lunch shop is notoriously tough his new backers? “They are fairly hands off. People Go Surfing, by Yvon innovative. People are moving

A.
due to paper-thin profit margins. Lilley They eat in the shops, so they know what Chouinard. It was written by the toward a more tapas style of eat- It is a good idea to have insurance
started his first branch of Abokado (he now we are doing and are forthcoming about beyond the legal requirements not
has six) with £10,000 of his own money: “I any good or bad experiences they had.” founder of clothing company ing, and Wahaca has outstanding only because it hedges your risks,
would get the first tube at 4.30am and then This is a pivotal year for Abokado. Patagonia and struck a chord freshness.” but because it also makes other companies
stay in the shop until four or five, before Annual turnover is £2.5-£3m across all with me. I like people to work www.abokado.com confident that you are a reputable firm with
going home and doing the books.” branches and net profits are expected to be which to trade. This could include building
and contents insurance as well as computer
insurance, which might need a separate poli-

Is the age of small


cy. It is also wise to take out business inter-
ruption insurance, which will protect your
income and overheads if unexpected catas-
trophe disrupts your ability to trade. With
interruption cover, it is important to be sure

businesses ending?
you are insured for an adequate period –
rebuilding a customer base or setting up
your office after a disaster can take longer
than you think. Credit insurance, meanwhile,
covers the firm’s balance sheet against bank-
rupted debtors, while income protection
insurance ensures that if an employee goes
An era of tight credit could see micro start-ups off work sick you aren’t on the hook for their
long-term salary. Legal insurance can cover
gain in popularity, writes Kathleen Brooks your firm’s non-compliance with the moun-
tain of regulations and legislative require-
ments. And on top of all these policies, there
are numerous others that might make sense

A
GROWING divide is emerging sions during the bad times,” says Marshall. depending on how your firm is structured:
between the fortunes of the UK’s Credit is the life-blood for growing firms, “key man” insurance, for example, covers
large and small businesses. While but there is no sign that banks are loosen- earnings if an employee central to the com-
UK Plc has seen strong profits and is ing their lending conditions. Data recently pany’s value is lost through unexpected
sitting on record high cash piles, life has published also found that lending to small death or incapacity.
been harder for small businesses and entre- businesses by the government’s flagship

Q.
preneurs. small business loan scheme fell by more Where should I buy all this
According to a survey from the National than 20 per cent in the six months leading insurance?
Endowment for Science, Technology and up to the general election. And private
the Arts (Nesta), venture capital has been equity and angel investors can only go so

A.
hit by a slump in funding, which is threat- far in providing support. There are several large firms with
ening the prospects for start-up companies. So what does this mean for the future of departments that specifically cater to
This only added to the misery after news small businesses? Stephen Alambritis, chief small businesses, including Aviva and
that Aim, the exchange for smaller compa- spokesman for the Federation of Small Lloyds TSB. Information is available from the
nies, saw 15 companies drop out of the Business (FSB), says that this could lead to Federation of Small Businesses, but the most
index in June and only one company join. an influx of micro-businesses instead of common way to find the right insurance is to
So what is fuelling the gulf between small firms that have ambitions to grow. use a broker. Brokers work on a commis-
small and large firms? Garrath Marshall, “Combined with the public sector job cuts, sion based on the cost of the
director of entrepreneurial business at I think we will see more and more people premium you buy (which
Deloitte, says that larger firms were able to set up businesses from their homes in the means that, in theory, they
react quickly to changing conditions dur- coming years. They are cheaper to set up, Small firms are successful, but it could be detrimental for are incentivised to get you an
ing the downturn, which has left them but it could reduce the number of small finding it harder the overall economy. If small firms find it expensive policy) so make
well-placed to benefit during the recovery. firms aspiring to become big companies.” togrow into big harder to grow then they won’t provide the sure you do your research
However, small businesses are less adept at But is this bad for the economy? Yes and businesses employment they used to.” beforehand and seek out
reacting so quickly. “Entrepreneurs can be no, says David Scott, managing partner at If economic conditions continue to a reputable broker.
closer to their businesses, which actually Vestra Wealth. “For the individuals behind Picture: GETTY erode the viability of growing firms, the Juliet Samuel
makes it harder to make those tough deci- one-man-band businesses they can be very UK’s economy will be the one to suffer.
Lifestyle DISCOVERING 23
PORTUGAL
| Arts IN MONDAY’S
TRAVEL SECTION

A franchise hunted to extinction


The ugly aliens with
a yen for human
bloodsport are back,
but they haven’t
brought new ideas

Film
PREDATORS
Cert: 15
hhhii
IT’S 23 years since Arnold Schwarzenegger
first did battle with one very ugly extrater-
restial hunter, during which time there’s
been a slew of spin-offs ranging from poor
to dreadful. On paper the latest attempt to
revamp the franchise seems encouraging,
produced as it is by action whiz Robert
Rodriguez, and with Predators battling
men (rather than Aliens) again – and this
time on their own turf.
A motley crew of tough guys (and one
tough girl), headed by Adrian Brody, find
themselves dumped into an unfamiliar jun-
gle which, it soon emerges, is the Predators’
home planet. The stranded team work out
that they’re hunting prey for the creatures,
having been selected to represent the very
best (or worst, depending on how you look
at it) of human ruthlessness and cunning. Robert “R-Patz” Pattinson in his guyliner, Adrian Brody, Alice
A battle of wits emerges as they try to work it’s just tiring to think there’s another two Braga and some big Preview:
out an escape plan while the Predators movies of such slow-burning blood-suck- guns in Predators. SARGENT AND THE SEA
stalk them through the jungle – cue lots of ing dullness to go. Royal Academy
gory action. For the uninitiated, Bella (Kristen
It’s all put together solidly enough but Stewart) is a moody goth teen living in HE’S always had his detractors, but John
there’s nothing new here, and the case for Washington State’s wet and windy Singer Sargent, the American artist who
whether there’s still life in this franchise is nowheresville, who’s in love with moody made his career on this side of the
going to face an up-hill struggle. Brody – goth vampire Edward (R-Patz). She wants to Atlantic in the Victorian era, is a painter
who won his best actor Oscar for Roman be turned into a vampire, but he’s getting who never goes completely out of favour.
Polanski’s Holocaust film The Pianist – is jealous of the time she spends with moody, He’s too much of a crowd favourite with
better as a vigilante tough guy than one muscly and frequently shirtless teen were- his perceptive, tender portraits of glam-
might assume, but the real problem with wolf Jacob (Taylor Lautner). Meanwhile a orous Belle Epoque society, rendered with
Predators is that it’s a bit dull. With the new gang of vamps has been assembled by a painterly touch redolent of Manet, Van
film unable to really deliver the shock villainess Victoria, who wants to kill Bella, Dyke and even Velazquez. Sargent may
value that it obviously intends, it seems all something she’s failed to do in two films have been given to whimsy, and rarely
too clear that this franchise’s power to and, considering how far there is still to go, troubled by any need to answer the big
thrill is mostly gone. no prizes for guessing how successful she artistic questions, but his paintings are Boats II, an 1879 watercolour.
Rhys Griffiths is this time. seldom less than gorgeous to look at.
Eclipse is so slow-moving it’s stagnant. So it should be with the Royal Academy’s of Capri and various Mediterranean ports,
Director David Slade keeps it visually styl- latest exhibition of Sargent’s works, open- as well as a selection of boating water-
THE TWILIGHT SAGA: ECLIPSE ish, with the odd tasty vampire-on-were- ing tomorrow, which focuses on his marine colours painted in Venice later in his career.
Cert: 12a wolf fight scene, but let’s face it, the film’s paintings – a lesser-known part of his oeu- It should offer illumination on the blos-
goal is to tread water for two hours. It’s vre. As a young man in the 1870s Sargent soming of the artist’s career, and act as
hhiii mostly filler, which in Twilight terms spent several summers on the Normandy something of a light-filled counterweight
means a lot of brooding atmosphere and and Brittany coasts, producing seascapes to what is a rather dreary Summer
THE third film in the saga about a teenage melodrama spread over a paper-thin and rustic beach scenes displaying his Exhibition in the RA’s main galleries.
love triangle between a human, a vegetari- screenplay. You’ll find yourself rooting for remarkable talent for capturing light and Timothy Barber
an vampire and a werewolf marks the mid- the baddies, hoping they finish Bella off form. The exhibition features over 70 works Sargent and the Sea opens tomorrow at the
way point in the series. Unless you’re the and put us all out of our misery. drawn from these expeditions and Royal Academy of Arts, and runs until 26
kind of young lady who goes wild for RW Sargent’s other travels to the Italian island September. www.royalacademy.org.uk

ALSO OUT THIS WEEKEND


ENTERTAINMENT

FILM DVD MUSIC GAMES


LEAVING Kristin Scott Thomas gives a typically pow- PERCY JACKSON & THE LIGHTING THIEF Fantasy fun KYLIE Album number 11 from Australia’s most suc- CRACKDOWN 2 (X360) Open world, third-person
erful performance in this French romantic thriller. a little too much in the Harry Potter mould. cessful pop export, titled Aphrodite. shooter sequel set in a city overrun by anarchy.

LONDON RIVER Moving drama set in the aftermath of ASHES TO ASHES SERIES 3 The final outing for one of FEEDER Brit-rock also rans release another album, PRO CYCLING MANAGER SEASON 2010: LE TOUR DE
the 7/7 bombings, with Brenda Blethyn. the most memorable TV detectives, Gene Hunt. Renegades, to put in your CD player player player... FRANCE (PC) Try to win the tour without doping.
WENT THE DAY WELL Rerelease for the classic GENERATION KILL, COMPLETE HBO SERIES Terrific I AM KLOOT Talented, if a bit miserable, Manchester ELEVEN LEGACY COLLECTION (PC) Expansion pack
wartime propaganda movie. series about US soldiers in Iraq. songwriters put out new album Sky at Night. for the fantasy game.
24 Lifestyle | TV& Games CITYA.M. 9 JULY 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE


TERRESTRIAL
6pm BBC News
6.30pm BBC London News
6pm Eggheads
6.30pm Antiques Road Trip
6pm London Tonight
6.30pm ITV News
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away
6.25pm Live from Studio Five:
TV PICK
7pm High Street Dreams; BBC 7pm Coast: The team explores 7pm Emmerdale 7pm Channel 4 News Topical reports.
News Cornwall and the Isles of Scilly. 7.30pm Coronation Street 7.25pm 4thought.tv 7.30pm Zoo Days; Five News
8pm EastEnders 8pm Hampton Court Palace 8pm Dickinson’s Real Deal 7.30pm CHOICE The Playboy Update
8.30pm QI Flower Show 2010 8.30pm Coronation Street Murderer: New series. 8pm Nature Shock: A spate of
9pm My Family: New series. 9pm Dive 9pm Doc Martin Documentary about murderer deaths among Ugandan hippos;
Ben pretends to be disabled. 10pm How Not to Live Your 10pm ITV News at Ten Thanos Papalexis. Five News at 9
9.30pm CHOICE The Old Guys Life 10.30pm London News 8pm A Place in the Sun: Home 9pm The Mentalist
10pm BBC News 10.30pm Newsnight; Weather 10.35pm FILM Smokin’ Aces: or Away 10pm CSI: NY
10.25pm Regional News 11.05pm Golf: The Scottish Premiere. Comedy crime drama, 9pm Big Brother 10.55pm CHOICE Grey’s THE OLD GUYS
10.35pm Friday Night with Open starring Jeremy Piven. 2006. 10pm The IT Crowd Anatomy BBC1, 9.30PM
Jonathan Ross 12.05am FILM Confessions of 12.35am The Zone; ITV News 10.35pm Big Brother 11.55pm Cops in Crisis New series. Tom and Roy are
11.35pm The National Lottery a Dangerous Mind: Fact-based Headlines 11.25pm Stand Up for the 12.10am SuperCasino determined to win a pub quiz. Comedy,
Friday Night Draws comedy drama, starring Sam 2.35am FILM All That Heaven Week 4.05am Motorsport Mundial starring Roger Lloyd Pack, Clive Swift,
11.45pm FILM Down in the Rockwell. 2002. Allows: Romantic drama, starring 12.15am Music on 4 4.30am House Doctor 4.55am Jane Asher and Cherie Lunghi.
Valley 2004; Weatherview 1.50am FILM The Hitch-Hiker: Jane Wyman. 1955. 3.55am 1.15am Big Brother: Live 3.35am Rough Guide to Islands 5.10am The
1.35am Sign Zone 4.35am-6am Thriller, starring Edmond O’Brien. Touching Evil 4.50am-5.30am ITV This Week’s 4Music Top 20 New Tomorrow 5.35am-6am
BBC News 1953. Nightscreen 5.25am-6.10am Countdown Michaela’s Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT 2am So You Think You Can 12.25am-6am Big Brother: DISCOVERY HOME &
SATELLITE & CABLE

5.30pm Live Twenty20 Cup 7pm Eurosport Flash 7.05pm Dance 3am The Fresh Prince of Live
Bel-Air 3.50am Maury HEALTH
Cricket 9pm Premier League Soccer City Live 7.40pm
World 9.30pm Football’s Eurosport Flash 7.45pm World 4.40am Nothing to Declare HISTORY 7pm Babes in the Wood 8pm
5.30am-6am Home Shopping 7pm How the Earth Was Made Jon and Kate Plus 8 9pm 17
Greatest 10pm World Cup Superbikes 9.30pm Cycling: Kids and Counting 10pm Last
Report 10.30pm World Sport Tour de France 10.30pm 8pm Decoding the Past 9pm
11pm Twenty20 Cup Cricket Soccer City 11pm Cycling: Tour BBC THREE Mountbatten: Death of a Royal Chance Surgery 11pm Mystery THE PLAYBOY MURDERER
7pm Top Gear 8pm T: Editors 10pm The Cosmos: A Diagnosis 12am 17 Kids and CHANNEL4, 7.30PM
1am Super League 2.30am de France 12am Planet Counting 1am Last Chance
Friday Fight Night 4.30am- Armstrong 12.05am-12.35am and La Roux 9pm T: Florence Beginner’s Guide 11pm Documentary about Thanos Papalexis,
and the Machine and Faithless Goering: A Career 12am Surgery 2am Mystery who went from hosting parties for Bill
6am Super League Soccer City
10pm EastEnders 10.30pm T: Decoding the Past 1am How Diagnosis 3am Jon and Kate Clinton to murdering a man because he
SKY SPORTS 2 ESPN Muse and Calvin Harris 12am the Earth Was Made 2am Plus 8 4am Baby Tales 5am- stood in the way of a deal.
7pm World Sport 7.30pm Live 7pm ICC Cricket World Family Guy 12.45am Lee Egypt 3am Pawn Stars 4am- 6am Mum + One
Super League 10pm Live 7.30pm Australian Rules Nelson’s Well Good Show 5am Decoding the Past
Friday Fight Night 12am NFL: Football 10pm The Ultimate 1.15am Mongrels 1.45am SKY1
Total Access 1am Tight Lines Fighter 11pm MMA Live Special 1 TV 1.50am World DISCOVERY 7pm The Simpsons
2am Ocean Ride 2.30am World 11.45pm UFC All Access Cup’s Most Shocking Moments 8pm How Do They Do It? 8pm Missing Children: Lorraine
Sport 3am Twenty20 Cricket 12.15am Talk of the Terrace 3.50am Lee Nelson’s Well Good 8.30pm How It’s Made 9pm Kelly Investigates. The case of
5am-6am NFL: Total Access 12.30am Press Pass 2010 Show 4.20am Mongrels The Cumbrian Murders 10pm 15-year-old Vicky Hamilton.
1.30am ICC Cricket World 4.50am-5.20am The Real How the Universe Works 11pm 9pm Bones. A competitive
SKY SPORTS 3 2am The Ultimate Fighter 3am- Hustle on Holiday Battlefield Mysteries 12am gamer is murdered. 11pm Lie to
7pm Tight Lines 8pm Live US 5am Live Friday Night Fights Deadliest Catch 1am Bear Me 12am Oops TV 1am Road
Women’s Open Golf 12am Live E4 Grylls 2am Chris Barrie’s Wars 1.50am Justin Lee Collins: GREY’S ANATOMY
PGA Tour Golf 2am European LIVING 7pm Hollyoaks 7.30pm Friends Massive Machines 3am World West End Star 2.40am Road FIVE, 10.55PM
Tour Golf 3.30am Golfing World 7pm Four Weddings 8pm 9pm Supernanny 10pm War Two in HD Colour 3.50am Wars 3.30am Shear Genius Addison returns to the hospital to
4.30am FIFA Futbol Mundial Passport Patrol 9pm Criminal Supersize vs Superskinny Raging Planet 4.40am Days 4.20am Tim Gunn’s Guide to perform an unusual operation, and Alex
5am World Sport 5.30am- Minds 10pm CSI: Miami 11pm 11.05pm Rude Tube 11.20pm That Shook the World 5.30am- Style 5.10am-6am Are You is forced to face his responsibilities when
6am Football’s Greatest Criminal Minds 12am CSI: CSI Big Brother’s Big Mouth 6am How Does That Work? Smarter Than a 10 Year Old? Rebecca announces she is pregnant.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
15 10 3 35 20 29 17 
4 19 15
16 16 
45
Place the numbers from 1 to 9 in each empty cell so that each  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 24 11
20 29
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 11 14
  
above or to the left of it. 12 41 13
You can only use the digits 1-9 12 21  
  and you must not use the
34
24 30   
same digit twice in a block. 26
     The same digit may occur 26 8  
18
   more than once in a row or
column, but it must be in a
23
7
20
22 9

10 8
    separate block.
13 11 
45

16 21 9

   ACROSS Down
1 Children’s outdoor 1 Garment hanging
  
WORDWHEEL toy (6) from the waist (5)
6 Herbivorous lizard of 2 Ms Stone, aka Catherine
     U A tropical America (6) Tramell in the Basic
Using only the letters in the Wordwheel, you have 7 Relatives by Instinct films (6)
  ten minutes to find as many words as possible,
D T marriage (2-4) 3 Specific feeling
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters A 8 Hold and move
repeatedly (6)
of desire (4)
4 Fine particles
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
S T 10 Forbidden (5) of wood (7)
5 Desert animal (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
E R
13 Take off clothes (7)
16 Captivate (5) 9 Actor, ___ Baldwin,
former husband of
QUICK CROSSWORD 3 6 9 8 9 4 8 6
18 Unwell (6)
Kim Basinger (4)
1 5 2 3 6 1 5 2 SUDOKU         
20 Public speaker (6)
11 Mass of precious
% / $ 1 & + 6 6
2 9 9 1 4 2         
21 Alloy of copper metal (7)
5 1 $ / : $ < 6
4 8 9 7 8 3 1 and tin (6)
$ 7 7 ( 6 7 2 5
8 4 5 7 6 9 3
         12 Chief Norse god (4)
1 , 2 6 0 2 6 , 6
         22 Arm covering (6)
' , & ( < 1 $ 8 6 3 1 4 5 9 7 2 14 Barbaric, violent (6)
        
<
$
6 7 $ 5
+
7 (
$ '
'
2 5
1
(
9
6
8 6 5 2 3
1 7 9
7
5 9 4
WORDWHEEL         
15 Young sheep (5)
( 4 8 , 1 2 ; = &          17 Large group or
$ & ' , 9 ( 5 7 1 2 3 7 7 1 The nine-letter word crowd (5)
2 9 7 8 8 1 6 2         
$ % 2 $ 5 ' 1 $
7 8 5
was MATERNITY          19 Departs (4)
$ / 6 ( 1 6 2 5 1 8 2 3 9
26 Lifestyle | Fashion CITYA.M. 9 JULY 2010

le in your
izzswimwear
3

S The season’s cozzies


flatter curves, says
very cool, perfect for posing in Ibiza at
daytime parties, but not very good for get-
ting a sensible tan line. And you need to
be lean.”
1
2
But on the whole, it’s a good summer
Zoe Strimpel for the flabbier-stomached lady – as Nash
King says: “One-pieces haven’t been in for
ages. Now you can go crazy with them:

I
T was reported last week that women animal prints, sequinny detail and other
spend more on their swimwear than exotic patterns are popular.”
they do on their holidays. This either
means that their holidays are very NEED TO KNOW: BEACHWEAR
cheap or that their swimsuits are amaz- l If you’re lean, you’ll look great in an
ingly expensive, but the upshot is that extreme cut-out costume. Just be sure to
swimwear is in the fashion spotlight and have a decent base tan, and to lather up
it just won’t do to, err, skimp. well with cream to avoid odd tan lines.
Yet it’s not easy choosing swimwear – l If you’re curvy but slim, go for a ban-
women’s bodies are a constant challenge deau-style top and a string-tie bikini bot-
when it comes to looking good in lycra. tom.
And this summer there are so many
trends about, it can all be rather confus-
l If you’re curvy: go for the 1950s style
big pants bikini. 6
ing. The main looks are cut-out costumes l Cover-ups are all the rage: go for a tye-
and 1950s-style big pants – oh, and every- die kaftan or a playsuit.
thing in between.
But what can real women wear? Tara
l Fashionistas accessorise their
swimwear, so get jewelled up for a glam
5
Nash King, founder of fashion brokerage Ibiza look.
Chic and Seek (chicandseek.com), says: l Great websites for swimwear are
“For the more curvy woman, I am a mas-
sive fan of the 1950s big pants look. They
Clickini (www.clickini.com), and Lie Low
(www.lielow.co.uk); a good high street 4
are super flattering for holding the stom- shop is Oasis, as it lets you mix and
ach in. As for the cutout costume look, it’s match tops and bottoms.

9
7
8

1 Solid cut-out swimsuit, Calvin Klein, £79, www.calvinklein.com 2 Phuket cut-out swimsuit, Melissa Odabash, £275, www.neta-
porter.com 3 Beige and black swimsuit, Pistol Panties, £180, www.apartment-c.com 4 Angola knit strapless tankini, Missoni, £424,
www.netaporter.com 5 Halterneck swimsuit, Shan, £229, www.harrods.com 6 Orange bikini, Lacoste, £70, www.lacoste.com
7 Underwired bikini with medium waist, Jill Sander, £220.45, www.clickini.com 8 Polka dot bikini top and shorts, Toast, top £32,
shorts £30, www.toast.co.uk 9 Star one-piece, Tomas Maier, £287, www.clickini.com

TREND WATCH: UNDERWEAR AS OUTWEAR


ZOE STRIMPEL

Hooray: a bra with straps you actually want to flaunt


U
NLESS you happen to have the fig- simple idea that has changed the way I ous points on a bra – the company sup- use it as a belt or a hair ribbon. Now that is
ure of Kate Moss, going bra-free – or regard my underwear. plies very firm, reducing cups – and sud- what I call added value.
even strapless – is not usually an Brazelle is essentially a company that denly you have a stunning halterneck that Satin lycra straps cost £34.99 and come
option. Fuller-chested women need makes bra straps. But instead of being looks like a brilliant bikini. Unlike most in lots of luscious colours: I recommend
proper bras, straps ‘n’ all. Problem is,when nasty synthetic ones that gleam hideous- lingerie, sexiness does not come at the buying a few, good for all seasons and
it comes strappy top season, it’s hard to ly, they’re made of silk and satin, expense of practicality: the support is fan- looks. Or ramp it up to full-blown glam,
get dressed without showing your bra embellished with gemstones and in tastic. with the Murano collection, which fea-
straps – and that look is dubious at best. gorgeous colours. Mine is pale You can play around with them too. tures clusters of Murano glass plated with
Until now, I’ve merely accepted that turquoise and sports green gems. It’s One day it’s a halterneck; the next, why 18k gold – these straps cost £387 but are
summer equals unseemly strappage. But a showstopper. not loop the strap from the centre and exquisite. After all, if you’ve got it: flaunt
along came Brazelle, an ingenious yet You hook them up to one of vari- outwards around the neck? You can also it. www.brazelle.com
Punter
27

FOOTBALL TRADER BEN CLEMINSON TAKES A LOOK AT SUNDAY’S


WORLD CUP FINAL

Picture: ACTION IMAGES

Spain can hold their


nerve to lift the title
petition. The way they pass and move is a peak at exactly the right time to make it a
joy to watch and with Xavi and Andrés final to remember, but I can’t see either
HOLLAND Iniesta pulling the strings in the middle side losing their discipline and just one
and David Villa providing the killer finish defensive mistake could prove incredibly
SPAIN they have the potency to unlock the stingi- costly. Holland have scored two or more
est of defences. goals in five of their six games, but cru-
There is no doubt that Spain are a won- cially they have conceded in all of their
SUNDAY - 7.30PM BBC 1 AND ITV 1 derful side going forward, but it’s been last four and they won’t want to take on
their work ethic and defensive organisa- Spain in a passing game.
MOST football purists would have been tion that have particularly impressed me I have no doubt that the Dutch are
purring at the start of the tournament if in the past few games. Look back at the going to prove a stern test for the Spanish,
I’d said it was going to be a Netherlands v Portugal and Germany games and it’s a but their display against Germany showed
Spain final in Johannesburg on Sunday real struggle to even remember a chance me that they are ready to notch another
11th July. However, the Dutch have taken a for either of their opponents. Barcelona major trophy and I’ll be backing them to
far more pragmatic approach to this year’s form the backbone of the team and Carles win in 90 minutes at 11/10 with William
competition, while Spain have only made Puyol and Gerard Piqué have been Hill. The opening period could be quite
it to the final thanks to three 1-0 victories immense throughout, conceding just two cagey, as it has been in all of Spain’s last
in the knockout stages. goals in their six games. three games, so I’d also be tempted to back
Remarkably, neither of these countries Holland haven’t won as many fans as the draw HT / Spain FT market at 4/1 with
have ever won a World Cup and for Spain they normally do at these tournaments as, Paddy Power.
this is their first ever appearance in a to be honest, they play more like a tradi- It’s hardly ‘boring, boring Spain’ syn-
final. Similarly strange is that these two tional German side than the typical Dutch drome, but the 1-0 victory has become
great footballing nations have never met ‘Total Football’ one we’ve come to know something of a pattern and with their
at a World Cup or European and love. That said, they have been clini- 2008 European Cup final win against
Championship, so this is truly history in cal, winning all six games so far, and their Germany also coming by that scoreline,
the making. There is nothing to split performances against Brazil and Uruguay I’ll have a go at that at around the 11/2
them in terms of previous meetings with showed just how much confidence is run- mark with Starsportsbet.co.uk. There have
both teams winning four of nine contests, ning through the side. been two or fewer goals in four of the last
the last being a 1-0 friendly win for Wesley Sneijder has had an unbeliev- World Cup finals and in five of Spain’s six
Holland in 2002. able season with Inter Milan and he has games here, so spread bettors should sell
No team has ever won the World Cup been the Oranje’s star player by a mile. goals at 2.1 with Sporting Index.
having lost their opening game, but Spain Arjen Robben, who came into the tourna-
are just one game away from rubbishing
that stat. They have yet to hit full stride,
ment with injury troubles, has also
stepped up to the mark in the past two
POINTERS...
but are packed full of quality and their games and with Robin van Persie on the Spain to win in 90 minutes at 11/10 with William Hill
performance against Germany in the sec- scene as well this is a side full of goalscor- Draw HT / Spain FT at 4/1 with Paddy Power
ond half on Wednesday night underlined ing potential. Spain to win 1-0 at 11/2 on Starsportsbet.co.uk
their position as the best side in the com- The hope is that both of these teams Sell total match goals at 2.1 with Sporting Index
28 Punter CITYA.M. 9 JULY 2010

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

Flying filly Fleeting Spirit to take


July Cup for second year running
T
HERE is an international flavour to at Royal Ascot, but he’s been on the go
today’s July Cup at Newmarket with since August and has only registered con-
speedsters from Australia, the US, secutive wins once in his 13-race career.
France and Ireland taking on the Golden Jubilee winners also have a poor
home contingent. However, I think the record in this race and I’d be willing to lay
prize will stay in Newmarket and Jeremy him on Betdaq at 6/4 or shorter.
Noseda’s FLEETING SPIRIT can become Of the others, Equiano and Nicconi look
the first horse since Right Boy in 1959 to doubtful stayers, Kingsgate Native is
win the race back-to-back. inconsistent, Marchand D’or ran a shocker
This is one gutsy filly who has run con- last time and US-based Kinsale King has
sistently well at the highest level for the had a long, hard season. There have been
past three seasons. I was deeply impressed five winning three-year-olds in the past 13
by the way she put this race to bed 12 years and the classic generation are repre-
months ago, despite hanging badly in the sented by Society Rock and SHOWCASING
closing stages. She holds her form very (e/w) this time. The former ran a stormer
well and her reappearance fourth in the to finish second in the Golden Jubilee, but
Golden Jubilee was excellent, as she was it may just be that he is better suited to
drawn on the wrong side of the track. Ascot. John Gosden’s Showcasing is a high-
That run will have put her spot on for ly promising sprinter, but was immensely
this and with Frankie Dettori in the sad- disappointing in the same race. However,
dle, I think she will win. I’m always willing to forgive a horse a bad
Starspangledbanner is a worthy favourite run at the Berkshire track and with first
following his power-packed performance time blinkers he looks overpriced at 20/1

I GET
THREE £10
BETS FREE.
with William Hill. Kelly Harrison (left) ily impressive at this track the time before.
Andrew Balding has already been in and Kirsty Milczarek However, Michael Bell’s Wigmore Hall ran
Newmarket’s winner’s enclosure this are riding in this really well at the Royal meeting as well
week and I expect him to be there again evening’s Breast and he seems to come into his own in
after today’s opener (1.30pm). He won this Cancer Care Pink Mile these big-field races. He has to carry just
race last year and has a great chance of Picture: 8st 5lbs and with Martin Lane taking off
taking it again with HIGHLAND KNIGHT, ACTION IMAGES another valuable 3lbs, he looks a cracking
who won his maiden impressively at each-way bet at 6/1.
EXCLUSIVE TO NEW TELEPHONE/ONLINE CUSTOMERS* Lingfield last time. The fillies’ maiden at Finally, Racing for Change and Chester
3.45pm can go to Godolphin with their Racecourse have combined for tonight’s
Simply stake £10 today and we will give you highly regarded RAGSAH. She was backed Breast Cancer Care Pink Mile (6.10pm). It’s
3x£10 Free Bets. Quote WORLD30 as if defeat was out of the question on
debut here last month, but will have
the world’s first ever pink horserace with
female horses and jockeys, all of whom
learnt a lot from finishing second to Sweet will be wearing specially designed pink
Cecily. silks. The race is free-to-air on Racing UK
The 32Red Trophy (2.35pm), known as and the channel is also donating £5 of
WORLD CUP FINAL the Bunbury Cup to you and I, looks as dif- every subscription made today to the char-
ficult as ever and Jeremy Noseda runs ity. Finding the winner doesn’t look easy,
Sunday 7.30pm Live on BBC TV.
Captain Brilliance, who was narrowly but I’ll be having a small each-way bet on
6/5 Spain 11/5 Draw Holland 13/5 denied by top weight Plum Pudding last
year. PALACE MOON tops the ratings this
MANY WELCOMES who has won over
course and distance.
All football prices quoted are phone/net, different odds may apply in retail. Extra time does not count. time and on his third to Laddies Poker
Two in the Wokingham, he must have a POINTERS...
GET THE BEST PRICE ANYWHERE!
massive chance. Kieren Fallon is in the sad-
dle and his draw in stall five looks good. HIGHLAND KNIGHT 1.30pm Newmarket (today)

6/5 SPAIN
Tomorrow’s highlight is the John PALACE MOON e/w 2.35pm Newmarket (today)
Smith’s Cup at York (3.05pm) and I’ve nar- FLEETING SPIRIT 3.10pm Newmarket (today)
rowed the field down to two: Imposing SHOWCASING e/w 3.10pm Newmarket (today)
and WIGMORE HALL. Ryan Moore RAGSAH 3.45pm Newmarket (today)
arguably gave the former too much to do MANY WELCOMES e/w 6.10pm Chester (today)
at Royal Ascot last time, but he was might- WIGMORE HALL e/w 3.05pm York (tomorrow)
TO WIN IN 90 MINS

INSIDER
the

oddschecker.com
All the latest odds and £100s of bookie freebets

I
haven’t had too many two-year- think an official rating of 79 is very for the John Smith’s Cup. Based on
old bets so far this season but helpful. He might be one to back his last run at the track I’m going to
I’ll be changing that tomorrow until he gets beaten, which will take on Forte Dei Marmi and have a
with a hefty wager on MAJOR hopefully not be tomorrow! few shillings on a rank outsider. Mark
CONQUEST (8%) in the nursery at THRUST CONTROL (2% e/w) Johnson is in cracking form right
Ascot (2.20pm). John Hills’ runners might be running out of the weights now, his TARTAN GUNNA (2% e/w)
0800 44 40 40 williamhill.com often improve and this son of
Librettist has been going the right
in tomorrow’s Scoop6 Handicap at
Ascot (1.45pm) but I think Cathy
is possibly more exposed than some
of the competition but he should be
way. The form in the book is very Gannon should be able to steer this there or thereabouts and merits con-
*3x Free £10 bets are win singles and will be added to your account on settlement of first bet. Free Bet must be on a different event to the initial stake.
strong with his fourth to Crown son of Fath into the winner’s enclo- sideration. Tonight, TAGSEED (3%)
Free Bet stake not included in any winnings/returns, valid for 7 days. Correct promo code must be used. All prices subject to fluctuation.
William Hill rules apply. Over 18s only. Prices correct as at 3.00pm yesterday. FOR ADVICE & INFORMATION VISIT WWW.GAMBLEAWARE.CO.UK
Prosecutor looking very hot. He has sure. should be able to clinch his four-
now got his head in front and I At York tomorrow 22 go to post timer in the 7.35pm at Chepstow.
Sport
29
WILL VILLA BECOME A
WORLD CUP MATCH-WINNER?
TREVOR STEVEN LOOKS AT THE KEY
BATTLES IN SUNDAY’S FINAL: P31

Match-winner Bell
was playing his
first one-day
Results
international since CRICKET
November 2008. 1ST ODI
England v Bangladesh
TRENT BRIDGE: England beat Bangladesh by six wickets
Picture: ACTION BANGLADESH
IMAGES T Iqbal lbw Broad........................................................................................28
I Kayes c Morgan b Anderson................................................................14
J Siddique lbw Yardy..................................................................................51
R Hasan run out ............................................................................................76
S Al Hasan c Anderson b Broad............................................................20
M Rahim c Wright b Bresnan ................................................................22
M Mahmudullah lbw Anderson................................................................4
F Hossain not out............................................................................................8
M Mortaza c Bell b Anderson ..................................................................5
A Razzak b Bresnan ......................................................................................3
B1 lb7 w11........................................................................................................19
Total (9 wkts., 50 overs) ......................................................................250
Fall: 40, 70, 136, 186, 222, 234, 236, 243, 250.
Bowling: Anderson 10-0-74-3, Bresnan 10-0-40-2, Broad 10-1-
43-2, Tredwell 3-0-18-0, Wright 3-0-20-0, Collingwood 9-1-32-0,
Yardy 5-0-15-1.
ENGLAND
A Strauss run out ........................................................................................50
C Kieswetter c Hossain b Al Hasan......................................................32
I Bell not out..................................................................................................84
P Collingwood c Siddique b Al Hasan ................................................33
E Morgan c Islam b Razzak ....................................................................23
M Yardy not out ............................................................................................10
B5 lb4 w10 ......................................................................................................19
Total (4 wkts., 45.1 overs) ....................................................................251
Fall: 75, 93, 173, 213.
Bowling: Mortaza 6-0-30-0, Islam 5-0-46-0, Razzak 10-0-64-1,
Al Hasan 10-0-35-2, Mahmudullah 8-0-41-0, Hossain 6.1-0-26-0.
Umpires: A Rauf & N Llong.
LV COUNTY CH’SHIP - DIVISION ONE (Headingley
Carnegie); Yorkshire 425 (G L Brophy 103, A Lyth 84, A
McGrath 57, N M Carter 4-87) and 200-4 (J A Rudolph 80,
J M Bairstow 64no) v Warwickshire 253 (I J Westwood 66,
A U Rashid 4-71, S A Patterson 4-57) and 371 (R Clarke
127no, A U Rashid 5-137). Yorkshire (23pts) beat
Warwickshire (4pts) by 6 wickets.
DIVISION TWO (Arundel); Gloucestershire 307 (C G Taylor
89, Kadeer Ali 58) v Sussex 314-6 (88.0 overs), V Banerjee
4-84)..
FRIENDS PROVIDENT T20 - SOUTH DIVISION (Brit
Insurance Oval); Surrey 120-8 v Middlesex 121-3 (N J
Dexter 62no). Middlesex (2pts) beat Surrey by 7 wickets.

Steely Bell chimes again as


CYCLING
TOUR DE FRANCE (Epernay - Montargis, 187.5km)—SStage
5: 1 Mark Cavendish (Gbr) Team HTC - Columbia 4hrs
30mins 50secs, 2 Gerald Ciolek (Ger) Team Milram at same
time, 3 Edvald Boasson Hagen (Nor) Sky Professional
Cycling Team at same time, 4 Jose Joaquin Rojas Gil (Spa)

England cruise to easy win


Caisse d’Epargne at same time, 5 Thor Hushovd (Nor)
Cervelo Test T eam at same time, 6 Sebastien Turgot (Fra)
Bbox Bouygues Telecom at same time. General classifica-
tion: 1 Fabian Cancellara (Swi) Team Saxo Bank 22hrs
59mins 45secs, 2 Geraint Thomas (Gbr) Sky Professional
Cycling Team at 0.23, 3 Cadel Evans (Aus) BMC Racing Team
at 0.39, 4 Ryder Hesjedal (Can) Garmin - Transitions at 0.46,
5 Sylvain Chavanel (Fra) Quick Step at 1.01, 6 Andy Schleck
(Lux) Team Saxo Bank at 1.09.

comeback for the 28-year-old, who delivery from Faisal Hossain, while opening stand of 75 off 66 balls, leav- TODAY’S DIARY

CRICKET
BY JON COUCH has now worked his way back into Raqibul was struck on the foot by a ing Bell and Paul Collingwood to take
the Test and one-day fold with gritty James Anderson yorker before going charge after their work was done. CRICKET
IAN BELL marked his return to the displays. onto top-score with 76. Collingwood added 33 before top- Friends Provident T20 - North Division: Northamptonshire v
Warwickshire (Northampton), Worcestershire v Durham
one-day side with a match-winning Captain Andrew Strauss, who has His knock helped Bangladesh to edging a sweep off Shakib Al Hasan (New Road), Lancashire v Yorkshire (Old Trafford). South
knock as England cruised to a six- also had his suitability questioned for 250-9, although at 222-4, the Tigers before Eoin Morgan took England Division: Somerset v Hampshire (Taunton), Glamorgan v
wicket victory over Bangladesh in the 50-over cricket in the past, added a might have expected to set their beyond 200 with a lofted drive for six Surrey (The SWALEC Stadium), Kent v Essex (Brit
first of their three-match series. quickfire 50 from 37 balls. hosts a bigger target. and then a trademark reverse-sweep Insurance Oval).
The Warwickshire batsman, mak- But for Bangladesh, it capped a As it was, Anderson took 3-74, for four in his enterprising 23. CYCLING
ing his first ODI appearance since rather forgetful day as wicketkeeper while Stuart Broad, just 24 hours But supported to the end by Tour de France - Stage 6 ( Montargis-Gueugnon; 227.5 km).
November 2008, followed up his 158 Mushfiqur Rahim and batsman after the death of his stepmother, Michael Yardy (10no), Bell deservedly RUGBY LEAGUE
for the Lions against India A on Raqibul Hasan suffered injuries and Tim Bresnan, claimed two wick- took the plaudits, smashing six fours engage Super League (8pm):: Harlequins RL v Bradford, Hull
Tuesday with a splendid 84 not out as which could rule them out for the ets apiece. in a measured 101-ball knock to hand K R v Leeds, St Helens v Catalans Dragons, Wigan v Salford.
England cruised to their victory tar- remainder of the series. England never looked in danger as England a 1-0 series lead going into
get of 251 with 29 balls to spare. Rahim was taken to hospital after they chased down the target. Strauss the second one-dayer at Bristol on SPORTS EDITOR JON COUCH
It signalled yet another impressive being struck in the eye by a turning and Craig Kieswetter (32) piled on an Saturday. email sport@cityam.com

Injury has robbed us of a legend in SPORT | IN BRIEF

Harry Ellis, says a saddened Johnson Cavendish claims 11th stage win
CYCLING: Mark Cavendish recovered
from his recent setbacks to claim his 11th
Tour de France stage victory after a
sprint finish in Montargis.
Mickelson needs to finish first or sec-
ond at Loch Lomond to leapfrog Woods
ahead of next week’s Open, but struggled
with a level-par round.
Ulsterman Darren Clarke leads on six-
The Manxman crashed out of the first under-par, ahead of England’s Graeme
the game has been robbed of a poten- Ellis, who won 27 caps for stage and finished a disappointing 12th Storm, Italy’s Edoardo Molinari and

RUGBY UNION
BY JON COUCH tial star. England and one for the British in Wednesday’s fourth stage, but showed Ireland’s Damien McGrane.
“Harry has been an excellent player Lions in 2009, consulted highly- his class to hold off German Gerald Ciolek
MARTIN JOHNSON believes England who always gave everything for respected orthopaedic surgeon and Team Sky’s Edvald Boasson Hagen. Sir Frank steps down
have lost a future legend in Harry Leicester Tigers and England,” he Andy Williams before mak- “It is an incredible feeling. All thatFORMULA ONE: Sir Frank Williams
Ellis, who was forced to retire yester- said. ing his decision. emotion and pressure that has built up all
handed over his role as team chairman to
day at the age of 28 with knee prob- “From the first time he was “All last season I was year has finally come to an end,” the Adam Parr yesterday – but insisted he is
lems. involved it was obvious to taking a hell of a lot of HTC-Columbia rider said. not ready to retire.
The Leicester and England scrum- everyone in the Tigers squad painkillers and I was Swiss Fabian Cancellara retains the The 67-year-old remains as team prin-
half underwent reconstruction sur- that he was a special talent constantly having blood yellow jersey, while Brit Geraint Thomas cipal, while Parr, who has been acting
gery on his left knee in 2007, then and that he’d make a big and fluid drained from stays second and keeps the young riders’ chairman since March, will take over the
saw his brief comeback thwarted impact. I’m sure that if he’d been my knee,” he said. white jersey. day-to-day running of the team with the
with a similar injury last season, fit Harry would have continued “I have had so many opera- experienced Patrick Head moving over to
eventually prompting him to hang up to make a huge contribution to tions on my knee I knew it was Slow start for Mickelson the technical side.
his boots. his club and country for many time to retire. I was gutted and GOLF: Phil Mickelson suffered a disap- Williams, however, reiterated: “This is
England team boss Johnson was a years to come. On behalf of the really upset when I found out pointing opening round 71 at the not notice of my impending retirement.
former team-mate of Ellis for the England squad I’d like to wish and it took a while to get used Barclays Scottish Open as he attempts to Time is evolving. There are a few more
Tigers and the national side and says Harry all the best for the future.” to.” overhaul Tiger Woods as world No1. years in me yet.”
30 Sport CITYA.M. 9 JULY 2010

MCLAREN: IS IT TRUE BROMANCE?


It’s all smiles between Lewis Hamilton HAMILTON’S RECORD | BUTTON’S RECORD |
and Jenson Button now, but will things BRITISH GP BRITISH GP

boil over at Sunday’s British Grand Prix? YEAR POSITION YEAR POSITION
2000 – 5th (Williams)
2007 – 3rd (McLaren)
2008 – 1st (McLaren) 2001 – 15th (Benetton)
2002 – 12th (Renault)
FORMULA 1 British pair Lewis
Hamilton and
2009 – 16th (McLaren)
2003 – 8th (BAR)
2010 Jenson Button race
in front of their
2004 – 4th (BAR)
BY JON COUCH 2005 – 5th (BAR)
home fans at
IT’S been played down as friendly Silverstone on
2006 – Ret (Honda)
rivalry thus far, but if it comes down Sunday as one and 2007 – 10th (Honda)
to a sprint finish to take the che- two in the drivers’ 2008 – Ret (Honda)
quered flag in the British Grand Prix standings. 2009 – 6th (Brawn)
on Sunday, rest assured they’ll be no
pleasantries in the McLaren cockpits Picture: GETTY
of Lewis Hamilton and Jenson Button.
One-two in the drivers’ champi-
onship, all eyes are on the British pair
to fight it out for their third victories
of the season in front of their home
fans at Silverstone.
Nine races into the season, it’s still
all love and happiness in the Woking-
based garage as Hamilton and Button
go about their business of establish-
ing McLaren a lead in the construc-
tors’ championship.
But as the season enters its second
half and the title race hots up, it has
been suggested that cracks are begin-
ning to appear beneath the surface as
the world champions of the last two
years desperately try to reclaim their
crown.
Another former British world Hamilton leads Button by just six podium here, and I’m going to SILVERSTONE
champion, Damon Hill, believes the points at the top of the drivers’ cham- change that this year.”
relationship may “boil over” for the pionship with two wins apiece. But Hamilton, on the other hand, won Laps: 52 Length: 5.891 km
season run-in, starting Sunday, while with the new points system, which here two years ago and is desperate to Race Distance: 306.747 km
Red Bull’s Mark Webber believes a rift gives 25 for a win, and the likes of experience that feeling again. Lap Record: 1:18.739 - M Schumacher (2004)
is “inevitable” given what is at stake. Webber, his team-mate Sebastian “The feeling of winning your home
Vettel and Ferrari’s Fernando Alonso grand prix is unique and very special Club
BRITISH GP | HOME WINNERS all in close attendance, every win is – it’s almost as good as winning the Luffield
vital. world championship.” Vale Abbey
5 – Jim Clark (1962, 1963, 1964, 1965, Button is yet to claim a podium fin- Woodcote
1967) ish in 10 years racing at Silverstone, F1 2010 | SEASON SO FAR
4 – Nigel Mansell (1986, 1987, 1991, but insists the pressure of racing in
front of a home crowd doesn’t faze RACE HAMILTON BUTTON Farm Curve Wellington
1992) straight
him. “I don’t feel under pressure Bahrain 3rd 7th
2 – Stirling Moss (1955, 1957) going into my home race – I feel very
Jackie Stewart (1969, 1971) Australia 6th 1st Start
relaxed, and Lewis is the same,” he The Loop Village
David Coulthard (1999, 2000) said. Malaysia 6th 8th Brooklands
“It’ll be a lovely atmosphere. We’ve China 2nd 1st Stowe
1 – Lewis Hamilton (2008) Aintree
both been here and had a rubbish Spain 14th 5th
Damon Hill (1996) result, yet you still get the support.
John Watson (1981) Monaco 5th DNF Hanger
For us it’s a case of going there and straight
James Hunt (1977) looking forward to it, more than feel- Turkey 1st 2nd
Peter Collins (1958) ing under pressure. Winning at Canada 1st 2nd Chapel
Tony Brooks (1957) home, you celebrate with your home Europe 2nd 3rd Becketts Maggots Copse
crowd. I‘ve never even been on the

Spurs net £20m sponsor Tottenham ready to mount a


in league and cup split deal
FOOTBALL Mansion.com whose four-year deal
league title challenge – Bale

BY JON COUCH ended this summer. Holsten (twice),


Hewlett Packard and Thomson FOOTBALL more players I don’t think this year.”

TOTTENHAM last night announced Holidays are the others. BY FRANK DALLERES there’s any reason why we Among the Gunners’ squad is Theo
an innovative sponsorship proposal “We are delighted to have can’t go a little bit further. Walcott, who grew up alongside Bale
which will see them wear different Autonomy as our new global partner,” TOTTENHAM flyer Gareth Bale I’d say challenging for the in the Southampton youth set-up,
branded shirts for league and cup said Spurs chairman Daniel Levy. believes Spurs are ready to take title is the main aim for and was left out of England’s
matches. Levy is thought to be the brainchild another step up and mount a chal- every single team and I don’t World Cup squad – much
The move came after software behind the dual-sponsorship idea and lenge for the Premier League title see any reason why we could- to his old team-mate’s
infrastructure firm Autonomy the club are now in discussions with next season. n’t mount a challenge.” amazement.
announced a £20m deal over two several brands to sponsor their cup Harry Redknapp ended years of Spurs only ended five points “It was a big shock to
years to become title sponsors for shirts. The deal could land the north frustration in May when he led the behind Arsenal last season and me,” said Bale. “I honest-
Premier League games only. London club an additional £20m White Hart Lane outfit to fourth Bale, 21, is desperate to finish ly think that with his
Now, Spurs are looking to agree a depending on their number of place and a first ever shot at the ahead of their north London pace he adds a different
deal with a separate company to spon- appearances – boosted by the fact Champions League. rivals for the first time since element to any team.
sor shirts worn in the FA Cup, League they have qualified for the And Wales star Bale (right) is con- 1995. It’s a shame he didn’t
Cup and European competitions. Champions League this year. vinced they can raise the bar by chal- “I hope this is the year we go.”
A FTSE 100-listed company, Harry Redknapp’s Spurs will wear lenging Chelsea, Manchester United finish ahead of them,” he Gareth Bale is part of the
Autonomy is the UK’s largest pure their new Autonomy-branded shirts and Arsenal – if Redknapp opens his added. “We’ve got just as good launch of Sky Sports 1
software company, and becomes only for the first time on their tour of the chequebook. a squad as them and there’s and Sky Sports 2 on BT
the fifth brand to appear on the USA when they play San Jose He told City A.M.: “We’ve got a good no reason why we can’t beat Vision. Find out more at
famous lillywhite shirt, replacing Earthquakes on 17 July. team and I think if we invest in a few them in the Premier League www.bt.com/sport
CITYA.M. 9 JULY 2010 Sport | Football 31

KEY AREAS

OUR MAN IN SOUTH AFRICA


TREVOR STEVEN
HOLLAND versus Spain going head-to-
head in the biggest showpiece of them
all throws up the prospect of a feast of
free-flowing football and a number of
fascinating individual battles.
For the purists, it’s the ultimate final
as, arguably, the two most successful
nations never to have won a World Cup
lock horns. But where will the game be
won and lost and who will contest the
key battles. Let’s take a look.

THE VILLA EFFECT


Spain’s Xavi (left), has won seven major hon-
ours, while Mark van Bommel is Holland’s
most experienced campaigner.
Pictures: ACTION IMAGES, GETTY

Johnny Heitinga David Villa


NUMBER OF CHAMPIONS LEAGUE Heitinga has had a fantastic World Cup,

Spain’s diet of success MEDALS IN STARTING XI leading a Dutch defence which was
questioned by many before the tourna-
ment. Villa is on top form and the main

14
threat, but often lacks support.

PLAYMAKERS
HOLLAND
ago. Then consider that 10 of Del
Bosque’s likely final XI play for either
Barcelona or Real Madrid – who have a
three Champions League winners in
their first team – Wesley Sneijder,
Mark van Bommel and Giovanni van
3
duopoly on the Primera Division and Bronckhorst – and only five have won TOTAL NUMBER OF MAJOR
SPAIN are both European behemoths – and more than one league title. Defender HONOURS AMONG STARTING XI
the honours really start to add up. Joris Mathijsen has never won a major
Wesley Sneijder Xavi
Eight of the Spain side have scaled honour, while forward Dirk Kuyt has
WORLD CUP 2010
58 48
the heights of club football by winning only an FA Cup to his name. The key area. Both are huge influences
the Champions League. Five have won Spain have proven they know what and in magnificent form. Xavi is a pass
BY FRANK DALLERES
it more than once and in total the it takes to succeed, even on the biggest master with a great work ethic, Sneijder
WHEN Holland take on Spain in starting XI have accumulated 14 win- occasions, and that is sure to stand cute with tremendous vision. Whoever
Sunday’s World Cup final in ners’ medals. Eight more have won a them in good stead in their first world comes out on top could tip the balance.
Johannesburg they will come up domestic title, all more than once. final. Holland – consistent, gifted and
against not just a highly accomplished
team, but a whole culture of success.
Holland, by comparison, have just gritty – may have met their match. DUTCH THREAT
The Dutch are not short of players
who have plied their trade across
Europe, while the national team boast Webb gets the nod to achieve lifelong World Cup dream
a 25-match unbeaten run. But in
terms of claiming the very biggest HOWARD WEBB will achieve a boy- Johannesburg’s Soccer City with final – ironically to Holland – in the
prizes in the game, Vicente del hood dream on Sunday when he Darren Cann and Michael Mullarkey as opening minute of their defeat to West
Bosque’s men are in a different liga; becomes the first English referee to is assistants. Germany.
Arjen Robben Gerard Pique
winning silverware is in their blood. officiate a World Cup final in 36 years. Webb becomes the first Englishman Premier League chief executive Robben is a huge threat, cutting in from
Spain are, of course, reigning The 38-year-old from Rotherham to referee a World Cup final since Jack Richard Scudamore said: “It is great to the right flank with pace and can expose
European champions and eight of the will take charge of the showpiece Taylor in 1974 when he became the see their fantastic season topped off Pique, who showed against the Germans
team likely to start at Soccer City were between Holland and Spain at first referee to award a penalty in the with the ultimate appointment.” he has a habit of drifting wide and
in the team that triumphed two years leaving holes in the centre of defence.

Dutch ace Sneijder Hodgson expects Gerrard


snubs £30m Man stay after intitial talks
United transfer elled former Fulham boss.

PREMIER LEAGUE
BY FRANK DALLERES “I anticipate there might be a situa-
tion where other big clubs will try to
LIVERPOOL manager Roy Hodgson sign Steven but he gave no indication

PREMIER LEAGUE and Real Madrid has declared himself confident that he wanted to leave.
BY FRANK DALLERES man. “But I don’t Steven Gerrard will stay at Anfield “Nobody at the club wants him to
have the inten- after holding talks with the unsettled go so I will be doing my utmost to
HOLLAND star Wesley Sneijder has tion to leave Inter captain for the first time. make sure he stays. I am confident he
scuppered Manchester United’s bid to any time soon. I’m staying, I will play field position and scoring five goals Gerrard, 30, is wanted by Real will.”
sign him by pledging his future to the whole of next season with Inter. along the way. Madrid and is thought to be weighing Hodgson has not had a chance to
Inter Milan. “My heart is in Milan, with Inter I The 26-year-old was also instrumen- up his future after more than a talk to Torres due to his continued
Sir Alex Ferguson targeted the won everything last season and tal in Inter’s phenomenal last cam- decade at Liverpool. involvement at the World Cup, but
£30m-rated playmaker after being there’s still a lot more to win, like the paign, in which they scooped a fifth But Hodgson, who succeeded hopes the Spain striker will buy into
impressed by his starring role at the European Super Cup, the Italian successive league title, the Coppa Rafael Benitez as manager last week, his vision.
World Cup and Inter’s Champions Super Cup and the Club World Club – Italia and the Champions League. has made it his priority to hold onto He added: “If he sees progress I am
League triumph. But the Dutch No10 all nice trophies. Ferguson is also said to be interest- key men Gerrard, Fernando Torres confident that he won’t want to go
has turned his back on a move to Old “There are so many more titles to ed in Sneijder’s Inter team-mate and Javier Mascherano, and has been anywhere else.”
Trafford and is targeting more silver- be won with my current club. Mario Balotelli, who has also caught encouraged by his initial soundings. Serbia striker Milan Jovanovic yes-
ware, following last season’s treble. Therefore, I will stay at Inter.” the eye of Manchester City. United “Obviously Steven and Jamie are terday became the first arrival of
“It is correct that Manchester Sneijder has inspired Holland’s run may have the edge as Inter are the playing heartbeat of the club and Hodgson’s tenure when the 29-year-
United have approached Inter about to the final in South Africa, pulling thought to want their young striker it’s very important we keep people old completed a free transfer from
my availability,” said the former Ajax the strings from an advanced mid- Federico Macheda in part-exchange. like that with us,” said the well-trav- Standard Liege.