BUSINESS WITH PERSONALITY

GOLDMAN SACHS TOY STORY 3 HITS

SETTLES CLAIMS THE BIG SCREEN
FIRM PAYS $550M GREAT VIEWING FOR
TO THE SEC P3 THE KIDS REVIEWS P25
Issue 1,178 Friday 16 July 2010 www.cityam.com FREE

HISTORIC FINANCIAL
REFORM BILL PASSED
WORLD ECONOMY Banking giants will also be forced
▲

BY EMMA SADOWSKI to shed some of their highly prof-

US LAWMAKERS last night passed a
landmark financial reform bill
allowing the broadest overhaul of
rules governing America’s largest
financial institutions since the
1930s.
The Senate approved the bill by a
60 to 39 vote last night and will now
send it to President Barack Obama to
sign into law next week.
The bill, which ushers in a raft of
restrictions on banks, is intended to
avert a repeat of the 2008 crisis that
brought the world economy to the
brink of collapse.
The bill will be called the Dodd-
Frank Act after its main leaders, sen-
ate banking committee chairman
Chris Dodd, a Democrat, and
Republican Barney Frank.
Obama said the new regulation
would give the strongest consumer
protection in history and meant the
American people “will never again
be asked to foot the bill for Wall
The bill will be named the Dodd-Frank Act after Barney Frank (l) and Chris Dodd (r)
Street’s mistakes.”
Federal Reserve chairman Ben
Bernanke said the bill was “a wel-
come and far-reaching step toward
preventing a replay of the recent
financial crisis”
Institutions like Bank of America
Merrill Lynch and Goldman Sachs
will be barred from proprietary trad-
ing and allowed only to make mini-
mum investments in private equity
and hedge funds.
itable derivatives business or face
the risk of losing access to emer-
gency funds held by the Federal
Reserve. They can, however, continue
to trade big volume instruments
such as foreign exchange and inter-
est rate swaps.
The bill also introduces new rules
on credit cards and mortgages, with
the goal of establishing a new con-
sumer protection bureau to oversee
the regulation and shield customers
from exposure to risky products.
More powers will be handed to the
Federal Reserve once the bill is
signed by Obama, allowing it to
supervise every bank on Wall Street
and granting it the ability to pull
apart any bank that it deems a risk.
Credit rating agencies will also
come under the spotlight. Fitch,
Moody’s and Standard & Poor’s will
now have to assume more responsi-
bility for their ratings and will face
potential legal action if they fail to
do so. MORE ON US REFORM BILL: P2

WINNERS AND LOSERS | WALL STREET SHAKE-UP

CREDIT RATING AGENCIES - LOSE
Rating agencies, such as Moody's, Standard & Poor's
and Fitch could be sued if they "recklessly" fail to
review key information in developing a rating. Credit ratings
will also be removed from federal regulators rules to reduce
reliance on ratings. The SEC will now start a two-year probe
into how to reduce conflicts of interest for agencies who are
paid by the companies issuing the securities they rate.
SMALL BANKS - WIN
Little will change for smaller banks. The Federal
Reserve will continue supervising them.
CONSUMERS - WIN
There will be new rules to protect consumers from
risky financial products. These could only be overturned
by banking regulators if they believe the rules could threaten the
financial system or banks' deposits. The consumer regulator will
be able to write its own rules for a slew of products such as
mortgages and credit cards and enforce those rules.
LARGE BANKS - LOSE
Large financial firms such as Bank of America and
Goldman Sachs will be prohibited from proprietary
trading and only be allowed to make minimum investments in
hedge funds and private equity funds. They will also face
tougher standards in what qualifies for the capital they are
required to set aside to protect against potential losses. Banks
such as Goldman and JPMorgan Chase will be forced to spin off
some of their profitable derivatives business or risk losing access
to the Federal Reserve's emergency funds. The firms' financial
products such as mortgages and credit cards will be subjected
to new rules from a newly created bureau designed to protect
customers from risky products. Most derivatives trade will be
forced onto exchanges or handled through clearinghouses, in an
attempt to limit the effect that large, risky trades can have on
the economy - potentially curbing banks profits.
CFTC/SEC - WIN
The CFTC and SEC will gain new authority to regulate
the $615 trillion over-the-counter derivatives market.
US FEDERAL RESERVE - WIN
Gains powers to supervise systemically important
financial firms. Retains authority to supervise banks of
all sizes. Will be part of a "risk council" that will have authority
to monitor risk in the financial system and decide whether a
large complex company needs to divest assets.
Becomes home for the new Consumer Financial Protection
Bureau giving it power to appeal the consumer protection
bureau's rules if it thinks they undermine the stability of the
financial system or banks' deposits.
PRIVATE POOLS OF CAPITAL - WIN
Advisers to hedge funds and private equity funds
with more than $150m in assets will be required to
register with the SEC. Venture capital funds will be exempt.
AUTO DEALERS - WIN
Auto dealers that do financing will be exempt from
oversight by the new consumer bureau and stay within
the jurisdiction of the Federal Trade Commission.
LAW FIRMS - WIN
Regulators like the Commodity Futures Trading
Commission and Securities and Exchange Commission
will have scores of rules to write in coming months to imple-
ment the legislation, meaning lots of billable hours for law
firms and consultants advising clients on how to respond to
proposed rules.
CLEARINGHOUSES - WIN
Derivatives clearinghouses will be able to borrow in
emergencies from the Federal Reserve, as long as the
systemic risk council, a majority of Fed governors and the
Treasury Secretary decide it is necessary.
INVESTORS/SHAREHOLDERS - WIN
Publicly-traded companies will be required to ask
shareholders whether they want a non-binding vote on
executive pay annually, once every two years, or once every three
years. The SEC will have the authority to give shareholders an
easier and cheaper way to nominate corporate board directors.

FTSE 100 ▼ 5,211.29 -42.23 DOW ▼ 10,359.31 -7.841 NASDAQ ▼ 2,249.08 -0.76 £/$ ▼ 1.54 -0.01 £/¤ ▲ 1.19 +0.01 ¤/$ ▼ 1.29 -0.01 Certified Distribution
3/05/10 - 30/05/10 is 106,097
 2 News
Some good bits – but lots of bad stuff
EDITOR’S LETTER
ALLISTER HEATH
SO there you are: President Obama
has finally got his Wall Street reform
bill, a gargantuan, 2,315-page piece of
legislation over which politicians and
lawyers will argue for years. As we
explain on page 1 and below, there is a
huge amount of detail in the final ver-
sion, with rules governing everything
from investment banks to rating agen-
cies to credit cards. Some of the
changes are sweeping; others less so,
with the whole package the result of
endless deal-making and compromis-
es. Global finance will change as a
result – but it won’t be completely
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WHAT THE OTHER PAPERS SAY THIS MORNING
CREST ADVISERS SHUN £350M
HORIZON BID
A £350m offer for Crest Nicholson
was in jeopardy on Thursday night
after advisers to the debt-burdened
housebuilder told its lender-owners
to reject the bid as too low. A steering
committee representing Crest’s cred-
itors, which took control of the
housebuilder following a £630m debt-
for equity swap last year, met with
Morgan Stanley on Friday to discuss
details of the possible sale of the busi-
ness.
THREE BIDDERS LINE UP FOR RBS
MERCHANT UNIT
Royal Bank of Scotland has three bid-
ders competing in the final round of
the auction of its Global Merchant
services division, which is centred on
the WorldPay payment processing
business. TPG and Clayton, Dubilier &
Rice are now to bid separately after
transformed. There can be no compar-
ison between yesterday’s reforms and
those passed as part of Franklin D
Roosevelt’s New Deal in the aftermath
of the Great Depression, contrary to
what many people will claim.
The Fed, Securities and Exchange
Commission, Federal Deposit
Insurance Corporation (FDIC) and oth-
ers will now have to write hundreds of
new regulations to implement the leg-
islation. This process could spiral out
of control and inject massive uncer-
tainty into decision-making, forcing
subsequent legislation to clarify mat-
ters. Nearly two-thirds of the law’s pro-
visions are subject to the sway of
rule-writing, and many key terms,
such as proprietary trading, a tricky
concept at the best of times, lack a
clear definition in yesterday’s bill.
There are glaring omissions in the
legislation: most of the real drivers of
the crisis escape completely
unscathed, not least the Fed’s interest
rate policies, global imbalances, the
state-created Fannie Mae and Freddie
Obama’s reforms at a glance
SYSTEMIC RISK
l A council of regulators chaired by
the secretary of the Treasury would be
created to monitor big-picture risks in
the financial system.
l The Financial Stability Oversight
Council could identify firms that threat-
en stability and subject them to tighter
oversight by the Federal Reserve.
l The Fed and the council could break
up firms that have not responded to
earlier measures and pose an urgent
threat.
ENDING BAILOUTS
l The bill would set up an “orderly liq-
uidation” process that the government
could use in emergencies, instead of
bankruptcy or bailouts, to dismantle
firms on the verge of collapse.
l The goal is to end the idea that
some firms are “too big to fail” and
avoid a repeat of 2008, when the Bush
administration bailed out AIG and
other firms but not Lehman Brothers.
Lehman's subsequent bankruptcy froze
capital markets.
l Under the new rule, firms would
have to have "funeral plans" that
two months of on-off talks between
the two over whether they would bid
separately, together or not at all for
the £2.5bn business.
MINERVA BOARD SURVIVES
CHALLENGE
Nathan Kirsh, the South African
investor, has been knocked back in
his latest attempt to change the lead-
ership of Minerva, the London proper-
ty developer, which called his
demands “wholly inappropriate”.
KiFin, Mr Kirsh’s investment vehicle
that holds 29.9 per cent of Minerva,
had demanded that Salmaan Hasan,
and Oliver Whitehead leave their
posts.
BERTRAMS PURCHASE BEHIND SALES
LIFT FOR SMITHS NEWS
Smiths News enjoyed a surge in rev-
enue thanks to its acquisition of a
books wholesaler and a rise in market
share after a rival distributor fell into
administration. Revenue at the UK
wholesaler jumped 38 per cent.
Mac’s massive power over the mort-
gage market and the US government’s
pro-sub prime housing policies.
However, one cause of the crisis is
being tackled: institutions will no
longer be deemed too big to fail.
Procedures will be introduced to dis-
mantle and wind down in a con-
trolled manner even the biggest firms
that run into trouble.
These rules, while imperfect, will
reduce moral hazard; they would also
have allowed Lehman Brothers to go
bust without triggering the panic and
contagion we saw in September 2008.
The procedure will operate in three
stages: first, a crisis at an institution
that is thought to pose systemic risk
will be identified by the Fed and the
appropriate regulator, with the
Treasury Secretary eventually deter-
mining whether action needs to be
taken; then the FDIC would be
appointed as a receiver to resolve the
failing firm; no general taxpayer
funds would be spent, with any
money lent by the Treasury eventually
describe how they could be shut down
quickly.
l The Federal Deposit Insurance
Corp’s costs for running liquidations
would be covered in the short term by
a Treasury credit line, then recouped by
sales of the liquidated firms’ assets. In
case of shortfalls, costs could be fur-
ther covered by claw-backs of any pay-
ments to creditors that exceeded
liquidation value.
l The FDIC could guarantee the debts
of solvent insured banks to prevent
bank runs. But this could only happen if
the boards of the FDIC and the Fed
decided financial stability was threat-
ened, Treasury approved the terms, and
the president activated a rapid process
for congressional approval.
SUPERVISING BANKS
l The US Office of Thrift Supervision,
which was widely criticised in the run-up
to the 2007-2009 credit crisis, would be
closed and most of its duties shifted to
the Comptroller of the Currency.
l Banks would be barred from con-
verting their charters to escape regula-
tory enforcement actions.
ANNUITY CHANGE WILL FREE
THOUSANDS TO DECIDE WHAT TO DO
WITH THEIR PENSION PLAN
Hundreds of thousands of savers will
be freed from the need to lock them-
selves into poor-value pension deals
from April next year, under radical
plans outlined by the Government.
Mark Hoban, the Financial Secretary
to the Treasury, said that the
Government would replace deeply
unpopular rules.
SHAREHOLDERS SEEK TO HAVE BLANK
EXTRADITED TO FACE ACTION IN US
A shareholder action group wants Sir
Victor Blank, former Lloyds Banking
Group chairman, to be extradited to
the US to defend the controversial
takeover of HBOS in 2008. Lloyds
Action Now (LAN) is trying to bring a
lawsuit in America, alleging that Sir
Victor and chief executive of Lloyds,
Eric Daniels, misled investors.
repaid via a levy on firms with assets
of more than $50bn. Crucially, credi-
tors would bear losses; there would be
no bail-out.
Some of the other ideas also make
sense, such as giving shareholders
greater powers or pushing more deriv-
atives onto exchanges. But most of the
other rules will either be useless or
downright damaging. Banks will be
barred from proprietary trading and
their involvement in private equity
and hedge funds will be curtailed. Yet
given the welcome introduction of the
wind-down procedures, none of this
ought to be necessary.
It will take months, if not years,
before we fully understand what the
legislation will mean for Wall Street,
the economy and of course London. It
is a shame that this bill, which is not
all bad, contains so many mistaken
policies and is shrouded in so much
uncertainty. It remains to be seen
whether its populist elements are
enough to save Obama’s floundering
presidency. allister.heath@cityam.com
l The FDIC's deposit insurance cover-
age would be permanently raised to
$250,000 per individual from
$100,000.
HEDGE FUNDS
l Private equity and hedge funds with
assets of $150m or more would have to
register with the Securities and
Exchange Commission, exposing them to
more scrutiny. Venture capital funds
would be exempted from full registration.
lInvestment advisers would have to
manage assets of $100m or more to be
federally regulated, an increase from
the present $30m level. The change
would shift some of the oversight for
small firms from the SEC to the states.
INSURANCE
l A new federal office would be creat-
ed to monitor, but not regulate, the
insurance industry, which is now
policed only at the state level. The
move would appease opponents of cen-
tralized regulation by keeping real
power out of Washington’s hands, while
giving big insurers that want a single
regulator a foothold they might be able
to expand from in the future.
AGRICULTURAL BANK OF CHINA
SHARES WEAK ON DEBUT
The Agricultural Bank of China
remains on course to become the
world's largest ever initial public offer-
ing despite a disappointing first day of
trading in Shanghai. hares in the
Chinese bank closed up 0.8pc at 2.70
yuan (26p) after the company
launched the first part of its widely
anticipated dual flotation. AgBank
shares had been expected to rise by
almost 5pc.
WPP 'TO GENERATE $1BN IN FAR EAST'
Sir Martin Sorrell expects the China
region to become WPP’s third-biggest
market within the next few years.
peaking at a conference in Shanghai
on Thursday, the chief executive of
WPP said he is “hopeful” of generat-
ing $1bn (£650m) of revenue from
China, Taiwan and Hong Kong. WPP is
the world's largest advertiser.
CITYA.M. 16 JULY 2010
US reform bill
could have
impact on UK
▲
REGULATION
SWEEPING changes to the US finan-
cial regulation landscape could effect
the UK, argued lawyers yesterday.
While it remains unclear what
kind of knock on effect the bill will
have on the UK, some London lawyers
were last night predicting a flood of
financial bodies would move opera-
tions from New York to the City.
“US banks may shift operations to
London, provided that the UK or
European Union does not make the
UK a worse regulatory environment
than the US,” said Dewey & LeBoeuf
partner Bruce Johnston.
He also said that US banks with UK
subsidiaries are likely to be affected
by the new bill.
“It will [affect banks with UK sub-
sidiaries]. The effect [however] is not
100 per cent clear,” said Johnston.
VOLCKER RULE AND BANK STANDARDS
l Under a rule proposed by White
House economic adviser Paul Volcker,
the bill would bar proprietary trading
unrelated to customers’ needs at banks
that enjoy government backing, with
some of the details of implementation
left up to regulators.
l Banks could continue to invest up
to three per cent of their Tier 1 capital
in private equity and hedge funds, not
to exceed three per cent of any single
fund's total ownership interest.
l Private equity and hedge fund inter-
ests above the new caps would have to
be divested over time, under the
Volcker rule.
l The largest banks’ ability to expand
would be limited by a new cap on share
of industry-wide liabilities.
lNon-bank financial firms supervised
by the Fed would face limits on propri-
etary trading and fund investing.
l Bank holding companies within five
years would have to stop counting
trust-preferred securities and other
hybrids as Tier 1 capital, a key measure
of a bank’s balance sheet strength.
BOEING HEDGES 787 DELIVERY
Boeing says delivery of its new 787
aircraft could slip into next year,
though the company is still hoping it
can send the jet to its first customer
by year’s end. The cautious new guid-
ance for delivery of the much-delayed
Dreamliner stems from issues with
testing rather than the aircraft,
according to Scott Fancher, head of
the 787 program.
HEALTHY DRUG SALES BOOST
NOVARTIS RESULTS
ovartis AG reported a 19 per cent rise
in second-quarter net profit thanks to
healthy drug sales and cost cuts,
prompting the Swiss drug giant to
boost its full-year sales outlook
despite a difficult market environ-
ment in Europe. Novartis chief execu-
tive Joe Jimenez said the higher net
profit was partly backed by soaring
sales of the company’s new drugs.
CITYA.M. 16 JULY 2010
Goldman pays RBS recoups a $100m payout
SEC $550m to
kill fraud case
▲
BANKING
BY HARRY BANKS
GOLDMAN SACHS has agreed to pay
$550m (£356m) to settle civil fraud
charges over how it marketed a sub-
prime mortgage product, ending
months of negotiations that rattled
the bank’s clients and weighed on its
share price.
The investment bank has now paid
the largest-ever penalty by a Wall
Street firm to the Securities and
Exchange Commission (SEC).
But many investors viewed the
$550m settlement as just a slap on
the wrist for a bank that earned more
than $13bn last year.
The settlement appears to leave the
door open for additional enforce-
ment actions by the SEC and further
investigation by federal prosecutors.
The SEC accused Goldman of creat-
ing and marketing a debt product
linked to subprime mortgages with-
out telling investors that a hedge
fund helped choose the underlying
securities and was betting against
them.
Goldman acknowledged as part of
the settlement that its marketing
Q&A: THE GOLDMAN SETTLEMENT
Q. WHAT DOES THIS MEAN FOR
OTHER BANKS?
A. For any bank that already has a
pending SEC investigation, it
could open the door to more settle-
ments. However, there is some specu-
lation that it could also pave the way
for further SEC investigations and
action by US federal prosecutors.
Q. WHAT DOES THIS MEAN FOR
GOLDMAN TRADER FABRICE
TOURRE?
A. Fabrice Tourre, the Goldman
trader at the centre of the SEC
investigation, is still on paid leave,
according to the bank. Although the
settlement takes Goldman off the
hook, it is understood that “Fabulous
Fab” Tourre could still be subject to a
criminal investigation.
GOLDMAN SACHS STATEMENT ON SEC SETTLEME
15 JULY 2010 NT
Goldman, Sachs & Co., the broker- dealer, has agree
and Exchange Commission to resolve the SEC’s pendi a settlement with the U.S. Securities
closures in the ABACUS 2007-AC1 CDO offering.
of the United States Court for the Southern Distri
The firm entered into the settlement without admit
part of the settlement, however, we acknowledg
ABACUS 2007-ACI transaction contained incom
mistake for the Goldman marketing materials to
‘selected by’ ACA Management LLC without disclo that the reference portfolio was
portfolio selection process and that Paulson’s econo the role of Paulson & Co. Inc. in the
investors. Goldman regrets that the marketing mater interests were adverse to CDO
We believe that this settlement is the right outco
clients.
We understand that the SEC staff also has comp
leted
Goldman Sachs mortgage-related CDO transactions a review of a number of other
any claims against Goldman Sachs or any of its emplo does not anticipate recommending
tions based on the materials it has reviewed. We
SEC has reserved the right to reopen those matte
Focus on Goldman Sachs 3
▲
BANKING ments on Goldman’s sub-prime mort-
gage portfolio named Abacus, which
ROYAL BANK of Scotland (RBS) is set is at the heart of the fraud allega-
to receive a $100m (£64m) payout tions. The bank’s involvement came
from Goldman Sachs as part of the US after it acquired ABN Amro, which
bank’s settlement with the Securities had insured a portion of the Abacus
and Exchange Commission (SEC) over trade in 2007.
fraud allegations. The bank is not the only recipient
The UK bank, which is led by chief of payments from Goldman, $300m
executive Stephen Hester, is thought will go to the US Treasury.
to have been the largest victim of the While $250m will be returned to
alleged sub-prime mortgage fraud, investors who bought into the sub-
which was orchestrated by Goldman prime mortgage packages and were
materials were incomplete, but it did and involved hedge fund Paulson & subsequently harmed by Goldman’s
not admit or deny the allegations. Co. actions.
The settlement appears to only RBS, which would not comment on This includes Germany’s IKB bank
resolve the issue of this transaction in the payment, lost £545m in invest- which will get $150m. RBS, led by Stephen Hester, will get $100m
particular.
It is understood that Goldman had
pressed regulators to agree to a global
settlement, which would effectively
have ended any SEC investigations
into other collateralised debt obliga-
tions underwritten or marketed by
the Wall Street firm.
The settlement is subject to
approval by a federal judge.
Goldman said yesterday that
Fabrice “Fabulous Fab” Tourre, who
was at the centre of the SEC investiga-
tion, will remain with the bank on
unpaid leave.
ANALYSIS l Goldman Sachs
$
190
180 145.22
15 Jul
170
160
150
140
130
28 Apr 19 May 9 Jun 29 Jun
Q. WHO GETS A
CUT OF THE
Q&A
PAYMENT?
A. The total settlement is for
$550m. Of that, Goldman will
pay the US Treasury $300m, while
$250m will be paid to investors,
including Royal Bank of Scotland
(RBS) and Germany’s IKB bank,
which were harmed by the bank’s
actions. RBS gets $100m, while IKB
will get $150m.
Q. ISGOLDMAN?
THIS A GOOD RESULT FOR
A. It is little more than a slap on
the wrist. Goldman earned more
than £13bn last year. Its shares,
which lost 22 per cent of their value
in the second quarter, largely due to
the fraud charges, jumped 4.6 per
cent in after-hours trading to $152.
d to
ng case against the firm relating to dis-
The settlement is subject to the approval
ct of New York.
ting or denying the SEC’s allegations. As
ed “that the marketing materials for the
plete information. In particular, it was a
state
sing
mic
ials did not contain that disclosure.”
me for our firm, our shareholders and our
and
yees with respect to those transac-
recognize that, as is always the case, the
rs based on new information.
 4 News
JP Morgan triumphs as lower
loan losses help profits surge
▲
BANKING
BY VICTORIA BATES
JP MORGAN got the US bank second
quarter reporting season off to a solid
start yesterday, as a boost from falling
impairment charges made up for a
torrid period for its investment bank.
The bank booked net profit of
$4.8bn (£3.1bn), 78 per cent higher
than the $2.7bn it made in the sec-
ond quarter last year. Earnings per
JPMorgan boss Jamie Dimon got the US bank second quarter reporting season off to a solid start share, a popular measure of banks’
performance in the US, were $1.09,
significantly higher than the consen-
sus analyst forecast of around 73
cents per share.
Chief executive Jamie Dimon said
the bank had benefited from a $1.5bn
reduction in loan loss reserves as the
health of the economic environment
improves, though this was negated to
an extent by a $550m charge from
the UK government’s tax on bonuses.
JP Morgan has eased back on and
employee compensation so far this
BP stops Gulf
oil spill after
tests on cap
BP IN CRISIS
BY EMMA SADOWSKI
CRUCIAL tests on the Macondo well
cap have succeeded in stopping the
flow of oil into the Gulf of Mexico for
the first time in three months.
It is the first time the flow has
stopped since an explosion on the
Deepwater Horizon rig on 20 April.
US President Barack Obama said
the development was a “positive
sign”but noted that BP was still in the
testing phase.
BP said yesterday that the “well
integrity test”, which will determine
whether the cap can stop the flow of
oil into the Gulf of Mexico altogether,
will last between six hours and 48
hours.
BP said: “Although it cannot be
assured, it is expected that no oil will
be released to the ocean during the
test. Even if no oil is released during
the test, this will not be an indication
that oil and gas flow from the well-
bore has been permanently stopped.”
If BP is successful in containing the
spill altogether, the move could be
Google’s profits disappoint,
but AMD beats forecasts
▲
TECHNOLOGY
GOOGLE, the internet giant, missed
Wall Street’s second quarter profit
estimates yesterday.
Google, the world’s biggest search
engine, posted net income of $1.84bn
(£1.19bn) in the second quarter, as ris-
ing operating expenses offset a 24 per
cent jump in its revenue.
The group said its revenue in the
three months ended 30 June totalled
$6.82bn, up from the $5.52bn it post-
ed during the same period last year.
Google, which has made a string of
acquisitions in recent months, also
CITYA.M. 16 JULY 2010
year after a regulatory crackdown on
pay. It has put aside a pot of $5.85bn
for the first six months of the year,
compared to $6.01bn in the first half
of 2009, despite global headcount ris-
ing 5.2 per cent to 26,279.
The biggest disappointment in JP
Morgan’s performance came from its
investment banking arm, which saw
net income slip six per cent to $1.4bn
on last year due to market shock-
waves from the Eurozone sovereign
debt crisis.
seen as a turning point in its spill
response, which has cost over $3.5bn
(£2.27bn).
Meanwhile, BP continues to face
political pressure in the US.
A Congressional committee has
agreed measures that would ban the
firm from new offshore drilling for
seven years.
And the company is also under
intense pressure from the US govern-
ment, which yesterday demanded BP
hand over records detailing its
involvement in the release of
Lockerbie bomber Abdel Basset al-
Megrahi. The letter came after the
company said it had spoken to the UK
government in late 2007 about the
transfer.
On this matter BP said: “We were
aware that this could have a negative
impact on UK commercial interests,
including the ratification by the
Libyan government of BP’s explo-
ration...BP was not involved in any dis-
cussions about [his] release.”
Last night, the oil giant was also
believed to be close to finalising the
sale of up to $20bn (£13bn) worth of
assets, including $12bn to Apache.
added more than 1,100 employees to
its payroll during the second quarter
of the year.
Meanwhile, Advanced Micro
Devices (AMD) posted better-than-
expected results for the same period
as corporate spending on tech hard-
ware strengthened.
AMD, which competes with rival
Intel, said yesterday that revenue rose
40 per cent to $1.65bn in the period,
beating expectations of $1.55bn.
The group posted net income,
excluding items, of $83m, versus a
net loss of $244m for the same period
last year.
CITYA.M. 16 JULY 2010 News 5

Ocado plans pulled apart by research

ANALYSIS l UK IPOs since December 2009 Cancelled: Source: Proquote
▲

RETAIL
BY MARION DAKERS
ONLINE grocer Ocado has come Postponed:
115 80
under fire again for its ambitious
£1bn flotation plan, as another Sold to KKR against falling
research analyst warns investors off Repriced: secondary valuations:
the firm. 110
70
Share Price Index (rebased to 100)

Edison Investment Research said in

a scathing note the firm should cut
its price by more than half, recom- 105
mending a £400m to 650m range. It 60
criticised the company’s lack of assets
and said the business was vulnerable
to other supermarkets choosing to 100
Repriced:

VIX
open online operations. 50
“Ocado – like the online food retail
sector itself – still has an unproven 95 Postponed:
business model. With over £200m of
capital investment alone since its Postponed: 40
inception in 2000 and £340m in 90
cumulative losses, Ocado desperately
needs more funds to support a highly
FTSE 350 30
capital-intensive business model that
is scrambling to reach critical mass,” 85 AIM 100
said Edison.
“Frankly, it needs funds to remain a VIX Contagion
going concern. Patient investors only 80
Obama Greece fears 20
need apply.” bank escalating
Ocado has been batting off growing proposals
criticism of its planned IPO this week,
claiming myriad analysts have misun- 75 10
Dec 09 Jan 10 Feb Mar Apr May
derstood the business.
A spokesperson said: “Given that
we are in a blackout period, we are ly beneficial arrangements with The spotlight has fallen on the gro- mer Goldman Sachs bankers in 2002. Last week City A.M. revealed a
unable to go into details beyond say- Waitrose and Ocado’s relationships cer’s flotation as oil firm Fairfield’s Its directors are a week into their detailed analysis by Collins Stewart
ing that this research is based on a with its direct suppliers.” IPO was shelved with the firm citing charm offensive and are now under- subsidiary Quest which suggested
substantial misunderstanding of the “We remain convinced of the difficult market conditions. stood to be flying to the US to try to shares in Ocado should be valued at
fundamentals of the business, in par- attractiveness of Ocado as an invest- Ocado has not made a pre-tax prof- convince wealthy investors there to 46 per cent under the mid-point put
ticular the nature of Ocado’s mutual- ment.” it since it was founded by three for- take up the share offer. forward in its prospectus.
A Daimler Brand

One day. Could be tomorrow.

The C-Class.
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Monthly payment* £299 Retailer deposit contribution** £1,335.52 On-the-road price £25,300 Total amount payable by the customer‡ £26,763
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Number of payments 36 Acceptance fee £180 Amount of credit £20,265.48 Purchase activation fee† £95

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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
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 6 News
Gartmore left
to reassure as
star walks out
▲
FUND MANAGEMENT
BY HARRY BANKS
EMBATTLED UK fund firm Gartmore
raced to reassure investors and clients
yesterday as its shares fell following
the resignation of former star trader
Guillaume Rambourg to focus on a
regulator probe.
Head of global alternatives Paul
Graham said the departure of
Rambourg would not affect manage-
ment of Gartmore funds, but the
company’s shares closed 5.5 per cent
lower at 104p, having previously fall-
en as low as 100p.
They are trading at less than half
their IPO price in December and not
far above their lifetime low of 97p, hit
in March, when Rambourg’s suspen-
sion was first announced. “The way
Gartmore handled this (months-long
situation with Rambourg) was a
gigantic own goal,” said one analyst,
who declined to be named in order to
speak candidly. “They overreacted
and got the FSA involved.”
Gartmore announced Rambourg’s
departure late on Wednesday, after
the market had closed, saying he
would focus on the ongoing FSA
investigation.
The probe – which could take years
to resolve – was announced last
month after an internal investigation
found Rambourg had breached inter-
nal regulations by directing trades to
specific brokers.
“Guillaume was an investment
analyst in his latter days. (Star manag-
er) Roger (Guy) was still in charge.
He’s been the main man since incep-
tion,” Graham said.
ANALYSIS l Gartmore
p executive director and chief execu-
170
104.00
160
140
120
100
19 Apr 10 May 28 May 17 Jun
Kelly is stepping down from her role for “personal reasons”, according to the ABI
ABI director Kerrie Kelly
leaves after just six months
INSURANCE
▲
BY KATIE HOPE
KERRIE Kelly has left as director gen-
15 Jul
eral of the Association of British
Insurers (ABI) after just six months in
the role.
Kelly is “stepping down from her
role to return to Australia... for per-
sonal reasons”, according to the ABI.
She joined the ABI to replace
Stephen Hadrill, who left to join the
8 Jul Financial Reporting Council.
Kelly joined from the Insurance
Council of Australia where she was
tive. She moved to the UK in February
to head up the ABI.
Maggie Craig, director of life and
savings at the ABI, will serve as acting
director-general while a permanent
replacement is found.
“Although she has only been here
for a short time, Kerrie has had the
drive and energy to make an impact,”
said ABI chairman Archie Kane.
CITYA.M. 16 JULY 2010
Goldman, TPG
in $1.5bn bid
for nappy firm
PRIVATE EQUITY
▲
US BUYOUT firm TPG and the private
equity arm of Goldman Sachs yester-
day agreed to buy nappy-maker Ontex
from rival Candover in the year’s
largest European buyout.
The deal, which Candover said val-
ues Ontex at €1.2bn (£1bn) including
debt, is Europe’s largest buyout this
year, just ahead in dollar terms of
KKR’s £955m deal for Pets at Home.
“Through our global reach and
operational capabilities, we look for-
ward to helping drive the next stage of
the company’s profitable growth,”
said Simon Henderson, head of TPG’s
UK buyout team.
Private equity firms are competing
aggressively for deals. They are
increasingly buying companies from
each other, in so-called secondary buy-
outs, as they look to deploy hundreds
of billions of dollars of unspent funds.
Ontex is a market leader in private-
label hygiene products, including nap-
pies and baby wipes. Its sale marks
another exit for Candover, whose rep-
utation has been tarnished by the
high-profile blow up of its 2008 fund.
The firm is set to lose some €87m
on its investment, after the business
ran into serious headwinds, including
higher raw material costs and a price
war with branded competitors, short-
ly after Candover bought it in 2003.
CITYA.M. 16 JULY 2010
US data indicates
pace of recovery is
beginning to slow
US ECONOMY
▲
BY HARRY BANKS
NEW claims for jobless benefits tum-
bled to a near two-year low last week,
but a modest gain in industrial output
and a third monthly drop in wholesale
prices in June confirmed a slackening
in the economy’s recovery.
Other data yesterday also implied
that the slowdown in manufacturing
extended into July, but analysts said
there was no evidence the economy
was sliding back into recession. “The
numbers are consistent with a slow-
down in the rate of growth in the U.S.
and the global economy, but not a
double dip,” said Nigel Gault, chief US
economist at IHS Global Insight.
“The evidence is not saying we have
lapsed; the factory indicators are still
pointing to growth,” he added.
Initial claims for state unemploy-
Corporate profits are
down in first quarter
UK ECONOMY
▲
BY JESSICA MEAD
CORPORATE profitability deteriorated
in the first quarter of 2010 to match
the third quarter of 2009, which was
the worst quarter since the last three
months of 1993.
Companies’ net rate of return fell
to 11.1 per cent in the first three
months of the year from a downward-
ly-revised 11.3 per cent in the fourth
quarter of 2009, official figures
showed yesterday. Corporate profitabil-
ity peaked in the fourth quarter of
2007 at 15.1 per cent.
Both manufacturers and service sec-
tor companies saw their profitability
decline in the first quarter.
CITY VIEWS: SHOULD INTEREST RATES RISE?
JAQUES VANZYL
ALLIED WORLD ASSURANCE
“At the moment I’m happy with the cur-
rent rate. I have a flexible rate on my
mortgage so my payments are very low.
On the other hand, we also have savings
and they have taken a hit, so it’s a bit of a
conundrum. I’m looking
for a fixed rate mort-
gage deal so we
won’t get stung. If
rates are put up it
could jeopardise
recovery, as prices are
already rising
and peo-
ple will
strug-
gle.”
ment benefits dropped 29,000 to
429,000 last week, the lowest level in
23 months, as seasonal layoffs at fac-
tories eased, the US Labour
Department said.
The relatively good news on
employment was overshadowed by a
Federal Reserve report showing indus-
trial production rose 0.1 per cent last
month, braking sharply from May’s
1.3 per cent advance. Manufacturing
output declined 0.4 per cent, snap-
ping a three-month streak of gains.
That weakness probably persisted
this month, with measures of factory
activity in New York state and the
mid-Atlantic region slowing sharply
from June.
The manufacturing reports rein-
forced views that the recovery lost
momentum in the past few months --
much sooner than most economists
had expected.
Manufacturing firms’ net rate of
return fell to 6.4 per cent from 6.9 per
cent while that of service sector firms
fell to 14.4 per cent in the first quarter
from 14.7 per cent.
The only sector that enjoyed an
improvement in its profitability was
oil and gas exploration and extraction
companies. They saw their net rate of
return rise to 36.4 per cent from 32.3
per cent, fuelled by higher oil prices.
“The weakened profitability figures
for the first quarter of 2010 highlight
the fact that companies still face very
challenging conditions as the econo-
my only gradually recovers from
extended, deep recession,” said IHS
Global Insight’s Howard Archer.
In terms of productivity, GDP per
Interviews by Marion Dakers and Albertine Brandon
MIKE FREEMAN
XCHANGING
“I’m about to buy my first home so I
would like interest rates to go up, so there
is more downward pressure on house
prices. From a national perspective, I think
they should suppress interest rates for a
couple more months. It
can’t continue the way
it is for too much
longer. Also there
needs to be some sort
of reward for savers at
this point, or we risk
going back to
the days of
reckless
spending
whatever
the cost.”
Economic News 7
DAVID MILES STAYS DOVISH NEWS | IN BRIEF
Britons up stake in their homes
British homeowners ploughed £3.2bn
into their properties in the first quarter
of this year, according to Bank of
England figures published yesterday.
This was slightly less than the £3.4bn
recorded in the last quarter of this year.
This means it is now two years since
Britons last withdrew equity from their
homes.
China cools in second quarter
China’s economic growth slowed in the
second quarter to 10.3 per cent from a
year earlier, a touch weaker than
expected, in response to the fading of
government fiscal and monetary stimu-
lus. The reading was slightly below mar-
ket forecasts of 10.5 per cent growth.
Particularly striking was a sharper-than-
expected drop in factory growth to 13.7
per cent in the year to June.
Eurozone industrial output rises
Industrial production in the Eurozone
rose 0.9 per cent month-on-month in
May and 9.4 per cent on May 2009. The
expansion was broad-based with
healthy monthly production gains in all
sectors. It was up three per cent in the
three months to May compared to the
BANK of England Monetary Policy Committee (MPC) member David Miles yesterday quarter to February. Even flat output in
argued that it was not yet appropriate to start tightening policy, saying “fragilities in June (which seems unlikely) would
the banking system remain and pose risks that the recovery in demand and activity we result in a 2.5 per cent gain quarter-on-
have seen across Europe – including the UK – falters”. The dovish external MPC member quarter in the second quarter, said IHS
@
also said interest rates should not be used to prevent future banking crises. Global Insight’s Howard Archer.
Locates
mates!
@
hour worked rose 1.2 per cent in the
first quarter on a year earlier and up
0.3 per cent on the fourth quarter.
However, this should not deter com-
panies from investing. “With capacity
use and corporate liquidity rising in
recent quarters, we doubt the recent
sluggish productivity trend will pre-
vent firms from expanding invest- nüvi 1690 tops Which?
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ment in coming quarters,” said
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Citigroup’s Michael
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firms should continue
to invest despite poor
productivity
TOM O’CONNOR
FREELANCE CONSULTANT
“I don’t think it’s the right time for rates to Follow friends, fancy meeting up,
go back up. The current rate gives the navigate to join them.
economy a chance to recover, and it’s not
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CITYA.M. 16 JULY 2010 Politics News 9

Sage is poised to appoint Guy

Berruyer as its chief executive
within days. By stepping into the top replacement is appointed.
▲

TECHNOLOGY
BY EMMA SADOWSKI
UK SOFTWARE group, Sage, is on the
brink of appointing Guy Berruyer as
its new chief executive.
Berruyer is understood to be the
favourite to take over from current
boss Paul Walker, who is stepping
down from the post after 16 years,
according to the Financial Times.
Contracts are expected to be signed
spot, Berruyer will have beaten UK
head Paul Stobart and chief financial
officer Paul Harrison who were also
in the running for the role.
Currently chief executive of main-
land European operations at Sage,
Berruyer has been with the company
for more than a decade.
It is unclear where Walker will go
once he leaves the company, but he
said that he would depart once a
He said: “I will look at a chief exec-
utive’s or a chairman’s job at a major
business, though I may consider advi-
sory roles. A number of things have
come across my desk.”
The Newcastle based company has
suffered from a slowdown in growth
recently, with underlying sales in
2009 falling by four per cent to
£1.44bn. Sage was not available for
comment last night. Guy Berruyer is expected to take over the top post at Sage

Cable: Cost of We rest our case

universities
is set to soar
Former BP chief executive Lord
▲

POLITICS
BY STEVE DINNEEN
THE cost of a university education is
set to soar as the public spending
squeeze takes its toll on higher educa-
tion.
However, business secretary Vince
Cable vowed repayments will be fair-
er and linked to earnings.
A rise in the amount students
have to pay for degree courses is
inevitable, Cable said, as the govern-
ment seeks cuts of 25 per cent in
departmental budgets over four
years to tackle the record peacetime
budget deficit. He said: “I don’t want
to see the quality of universities cut,
we don’t want to narrow the opportu-
nities for young people to go to uni-
versity, therefore the only possible
way forward is by having a bigger
graduate contribution.”
Cable is walking a precarious line
after the Lib Dems pledged to phase
out a rise in tuition fees in the lead-
up to the election.
Universities have asked for the
tuition fee cap of £3,225 a year to be
lifted, saying without higher fees the
quality of teaching will suffer.
Browne is leading a review of student
fees and is due to report in the
autumn.
Cable said he had asked Browne to
look at a fairer way of recovering the
cost of degree courses than now,
where students take out government
loans and repay the money when
they start earning more than £15,000
a year. Cable said the system was
unfair because teachers or care work-
ers repaid the same amount as well-
paid commercial lawyers or surgeons.
He said he had asked Browne to
look at a repayment mechanism of
“variable graduate contributions tied
to earnings.”
Cable said he envisaged this would
mean high-earning graduates would
end up repaying more than the cost
of their studies, with lower earners
paying less.
Cable says the changes
could mean highly-paid
graduates pay more
than the cost of their
studies One way flight with one 20kg hold bag booked online*

Osborne offers MPs veto In July and August this year it will cost over
3 times as much to book your 20kg hold bag

on new head of the OBR online with Ryanair than easyJet.

be lost as a result of the Budget.

▲

POLITICS
BY STEVE DINNEEN
THE government started the search
for the new head of the Office for
Budget Responsibility (OBR) yester-
day – but it remains to be seen how
many applicants will put their name
forward to head up the controversial
department.
Chancellor Osborne is desperate to
draw a line under the independence
debacle surrounding the OBR, which
was accused of bowing to govern-
ment pressure to rush through
revised figures for how many jobs will
Osborne has even pledged to allow
MPs to veto his choice to fill the
£142,000-a-year role.
It is also proposed that the OBR
move out of its office at the Treasury
and appoint a dedicated secretariat.
The successful candidate will
replace Sir Alan Budd, who will step
down next month after a torrid few
weeks at the organisation.
Robert Chote, head of the Institute
for Fiscal Studies, is expected to apply *Price based on a single item of hold baggage of more than 15kg and up to 20kg booked online one way. Prices vary
for the position. depending on weight and number of hold bags. Prices applicable between 1 July and 31 August 2010. Prices correct
He was unavailable for comment as at 7 July 2010. See http://www.easyjet.com/asp/en/baggage for further details.
yesterday.
 10 Consumer News CITYA.M. 16 JULY 2010

H&M sales rebound after tough times King of Pop

dolls launched
RETAIL
▲

than one financial year rose nine per favourably with rival Gap, which time in September via the web and
BY JOHN DUNNE cent in June from the same month issued flat comparable store sales for via its flagship Oxford Street store.

▲
CONSUMER
last year, although the figure came in last month.
FASHION retailer H&M pulled clear of under the 9.6 per cent predicted in an H&M has 2,062 stores compared to ANALYSIS l Hennes & Mauritz (H&M) COLLECTIBLE Michael Jackson fig-
a disappointing spring season with a analysts’ poll. Same-store sales fell in 1,822 at the same time last year. 27
€ ures have been unveiled by Playmates
jump in same-store sales for last both April and May. The retailer last month announced 23.90 Toys.
month. H&M issued an upbeat figure in its that it will launch its first ecom- 26 15 Jul The firm has a deal with music
The Swedish chain, known for its second quarter earnings report last merce offer in the UK in September. 25 merchandising company Bravado, to
cheap, trendy clothes and guest month, while warning that currency It also outlined plans to open 180 create figures based on the King of
designers such as Matthew swings and rising costs could hit its new stores in the second half of 2010. 24 Pop.
Williamson and Jimmy Choo, saw an gross margin later this year. The new stores will be in countries 23 The figures, which are to be distrib-
increase in demand from shoppers in Total sales were up 20 per cent, including Germany and China and uted by Character Options in the UK,
its main markets as consumer confi- compared with a forecast rise of 21 the US. 22 will be launched in the autumn. The
dence gathered momentum. per cent. Meanwhile, homewares will be firm said it was expecting huge
It said sales at stores open for more H&M’s June figures compared available to UK shoppers for the first 28 Apr 27 May 16 Jun 6 Jul demand for the collectible dolls.

Mothercare
sees UK SuperGroup
trade slide profit triples
RETAIL
on expansion
▲

BY JOHN DUNNE
MOTHERCARE posted a bigger-than-
4.1 %
fall in sales
expected drop in quarterly sales in its
main British market and said profit at UK stores*
margins would suffer as it battles a ▲
RETAIL stall he started in 1985, was the main
tough consumer outlook.
Sales at UK stores open at least a
year fell 4.1 per cent in the 15 weeks
20.3%
rise in
BY JOHN DUNNE
FASHION retailer SuperGroup’s full-
beneficiary of the £125m offer, and
received about £50m of the £105m of
the proceeds being shared by man-
to 10 July. year pre-tax profit soared to £22.46m agement.
The fall offset a 20.3 per cent rise in overseas sales* from £7.59m last year. Dunkerton said: “SuperGroup has
Mothercare’s overseas sales and sent Group revenue for the 52 weeks had a fantastic year, delivering an
its shares tumbling – they closed 3.98
per cent lower at 530p yesterday.
Meanwhile, the company also said
1,115
the number of
ended 2 May, was up 83.1 per cent to
£139.4m from £76.14m in the compa-
rable period.
excellent set of financial results and
achieving a highly successful listing
on the London Stock Exchange.”
it had bought the Blooming The surge has been fuelled by the He added: “All areas of the business
Marvellous maternity brand. Mothercare stores company’s Superdry label which has have performed well and we have
The firm – which caters for mums- across the globe been sported by a host of celebrities delivered strong sales growth,
to-be who want fashionable materni- including David Beckham and US improved margins and good cash gen-
ty wear as well as offering a range of actor Zac Efron. eration.”
clothes and toys – was founded in
1983 as a mail order company.
Mothercare chairman Ian Peacock
52
the number
The firm has a 20 stores a year
opening programme which has also
helped to drive sales forward.
Shares have jumped to more than
50 per cent above the initial float
price. The firm is now valued at the
said: “In the UK we continue to plan of countries The company, which completed a more than £630m.
cautiously for the remainder of this £125m listing on the London Stock It is also targeting womenswear
year.” the company Exchange earlier this year, added and the internet.
He added: “In this context, we
expect to invest further margin in our
operates in 93,000 sq ft of selling space in the
past financial year.
Last month it announced its online
operation would be brought in-house-
customer offer which will be offset, in Chief executive Julian Dunkerton, in a bid to give the unit more of a
part, by cost savings and our property *for 15 weeks to 10 July who built the business from a market push.
restructure.”
Mothercare has 1,115 stores in 52
countries. ANALYST VIEWS: WHAT IS SUPERGROUP’S
RECIPE FOR SUCCESS? Interviews by John Dunne

KEITH BOWMAN | HARGREAVES LANSDOWN

“ In the wake of recent comments from both

Burberry and ASOS, Supergroup is again proving that the

”
That’s broadband, line rental with evening consumer is still ‘alive and kicking’ and prepared to spend
& weekend calls in one lower–cost bill money on the right offering.

FREDDIE GEORGE | SEYMOUR PIERCE

“ The company is gaining traction in womenswear,

the international opportunity has been significantly under-

”
and £17 after that for ø customers estimated and the internet is likely to be important.
Superdry, remains very fashionable.

NICK BUBB | ARDEN

“
Call 0800 954 1396
Visit o2.co.uk/broadband There was too much focus on whether SuperGroup
or any ø shop We’re better, connected
could be ‘the new French Connection’ and not enough on

”
You need O2 Home Broadband to get O2 Home Phone. It’s subject to availability, 12 month contract, direct debit and a compatible phone line. Excludes cable. Price quoted is for O2 mobile customers.
whether SuperGroup could press on to become a big new
Includes calls to standard UK landlines (starting 01, 02 or 03), up to 60 minutes long from 6pm-6am weekdays or 6pm Friday to 6am Monday. Other calls have a 9p setup fee. Cheaper than our broadband
with a BT line. Fair usage policy, price list and full details at o2.co.uk/broadband 3 months free offer ends 17.08.10.
global fashion brand. It is the latter.
 The Capitalist
11
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

THOUSANDS
TURN OUT
FOR GREAT
CITY RACE
THAT time of year seems to have crept up
on us again, when thousands of City run-
ners take to the streets for the most popu-
lar race of the year – the Standard
Chartered Great City Race.
After a chilly, blustery day, the sun
finally came out to shine on the gathered
throng, who signed up from almost 400
firms in record time this year. Leading the
pack – in spirit, if not literally – was
Standard Chartered’ European chief exec-
utive Richard Holmes, dressed as an eye
surgeon in a nod to the bank’s official
charity Seeing Is Believing, which tackles
avoidable blindness all over the world.
(Relief reigned, however, for chief finan-
cial operator Richard Meddings, who last
year undertook to complete the course
with a blindfold on to highlight the plight
of those affected – a role taken on this
year by the charity’s goodwill ambassador
and Paralympic champion Henry
Wanyoike, a blind runner, with his guide
Joseph Kibunja.)
Taking the medal for the guys’ and the
girls’ races were long-standing champions
Phil Wicks, from Legal & General, and his
fiancée Emily Adams from Punter
Southall, who ran the 5km race in 14 min-
Former Olympic heptathlete champion Denise Lewis and Standard Chartered
European chief executive Richard Holmes (l) and winners Phil Wicks from Legal
City runners champ at the bit at the start of the 5km run & General and fiancée Emily Adams from Punter Southall
Pictures: Alex Ridley/ CITY A.M
utes 07 seconds and 17 minutes 03 sec- Messiahs, and Markets” by Bill Bonner and ory lane.
onds respectively. The athletic pair are Lila Rajiva; “Lords of Finance” by Liaquat Black, who has been vocal in his
due to wed in less than a month, making Ahamed; and – most bizarrely – “Gold and thoughts on the online grocer’s tricky
yesterday’s triumph all the sweeter. Iron: Bismarck, Bleichröder and the forg- upcoming flotation, managed to find a
ing of a new German Empire” by Fritz fair few acronyms for the company to
Stern. express his views – Over-Costed Average
BOOK WORM Oh, and “The Little Book of Behavioural Daily Orders; Oligopolistic Competition
Someone should remind SocGen’s eco- Investing” by James Montier – who just And Dangerous Overvaluation; and
nomic strategist Dylan Grice that summer happens to have previously been co-head Overvalued Company, A Disappointing
holidays are for relaxing. of global strategy at… you guessed it… Outcome.
Grice sent out his “Popular Delusions” SocGen. “Black’s offering brings to mind a
research missive yesterday with the help- research note written by UBS media ana-
ful title “Five books for the beach”. Those lyst Derek Terrington in advance of the
of us more used to taking Dan Brown and
John Grisham on hols, however, might
PLAY ON WORDS IPO of (Robert) Maxwell
A City chum has been perusing a note Communications,” our friend notes.
find our strategy guru’s interpretation of from Shore Capital’s head of research “It was acronymically titled ‘Can’t
light reading rather taxing. Clive Black earlier this week on Ocado, Recommend A Purchase!’ It cost him his
His recommendations include “Mobs, which has taken him on a trip down mem- job, but it was worth it.”

Free Seminar on
investing in Europe
Join FT columnist David Stevenson as he discusses why he feels
Europe and especially Euroland could be looking good value
compared to its peers. We will also show you how you could take
advantage of this opportunity using RBS Listed Products.

Date: 22 July 2010

Time: 5.30pm - 7.30pm
Location: 250 Bishopsgate, London

To register for this event, email us

at markets.uk@rbs.com or visit
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The Royal Bank of Scotland plc (RBS) does not endorse any of the reports and other written materials provided by David Stevenson (the “Materials”) or any statements made by David Stevenson or Investors Intelligence (the “Statements”). RBS makes no warranty or
representation whatsoever, express or implied, as to the contents of the Materials or Statements. RBS shall not be liable (whether in negligence or otherwise) to any person for any error in the Materials or Statements and RBS shall not be under any obligation to advise any
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such event. The Royal Bank of Scotland plc, Registered in Scotland No 90312. Registered O. ce: 36 St Andrew Square, Edinburgh EH2 2YB. RBS is authorised and regulated in the UK by the Financial Services Authority. RBS is an authorised agent of The Royal Bank of
Scotland N.V. in certain jurisdictions.
 12 News
Ryanair chief executive Michael O’Leary (left) and EASYJET’S Sir Stelios Haji-Ioannou are arch-rivals
Ryanair boss O’Leary
forced into apology Piraeus Bank moves to
▲
AVIATION
BY VICTORIA BATES
EASYJET’S Sir Stelios Haji-Ioannou yes-
terday achieved the nigh-on unthink-
able as the High Court forced Ryanair
boss Michael O’Leary into a grovelling
apology over a mischievous advertis-
ing campaign.
Stelios launched a suit against his
arch-rival at the start of the year over
the ads, which featured a caricature
of the easyJet founder as Pinocchio
and claimed he had lied about the
airline’s record on flight delays.
Stelios claimed that the statements
in the campaign, which referred to
him as “easyJet’s Mr Late Again” and
called on him to “stop hiding the
Carlyle spends £2.5bn on Penthouse publisher hires
health supplements firm adviser to pursue Playboy
▲
PRIVATE EQUITY
BY MARION DAKERS
PRIVATE equity giant Carlyle made
the latest in a string of high value
acquisitions yesterday by purchasing
US nutritional supplements maker
NBTY for $3.8bn (£2.5bn).
Carlyle’s $55 per share cash offer
represents a 47 per cent premium to
NBTY’s closing price on Wednesday,
and is one of the biggest private equi-
ty deals of the year.
NBTY said the deal should close by
the end of this year. The firm has a
market value of $2.3bn and posted a
quarterly profit in April that missed
expectations by a wide margin.
The firm announced the deal a day
after reports of the company being
courted by both Carlyle and rival pri-
vate equity firm Blackstone.
truth” and publish weekly details of
the airline’s punctuality record, were
libellous.
O’Leary was forced to issue a full-
page “unreserved” apology on
Ryanair’s website, though he stopped
short of performing a full U-turn on
the issue, insisting that the apology
related to the remarks only “in so far
as they related to [Stelios] personally”.
“Both Michael O’Leary and Ryanair
accept that Sir Stelios is not responsi-
ble for the non-publication of
easyJet’s on-time statistics for the past
52 weeks and that he is not in any
way responsible for easyJet’s manage-
ment’s continuing failure to publish
weekly details of their on-time stats,”
the statement added.
The company is known for supple-
ments such as Nature’s Bounty, Osteo
Bi Flex, Ester C and Pure Protein. Its
board unanimously accepted the
deal.
BofA Merrill Lynch and Centerview
Partners are acting as financial advis-
ers to NBTY, while Barclays Capital
and Credit Suisse will offer financial
advice to Carlyle.
Carlyle’s managing director and
head of consumer and retail Sandra
Horbach said: “NBTY is an outstand-
ing business with well-established
brands, a proven vertically integrated
multi-channel/multi-geography strat-
egy and strong, long-standing cus-
tomer relationships.”
The deal is another sign of renewed
activity at Carlyle, which made its
first property deal in two years earlier
this month.
Stelios has a fractious relationship
with easyJet’s management, with
whom he originally clashed last year
over his belief that the airline was
expanding too fast in the downturn.
EasyJet’s ex-chief executive Andy
Harrison also came under intense fire
from Stelios for his strategy decisions.
Stelios took his own parting pot-
shot at his rival, issuing a statement
to say he “would like to dedicate this
little victory to all those members of
the travelling public who have suf-
fered verbal abuse and hidden extras
at the hands of O’Leary”.
He has received £50,100 in damages
from O’Leary, which he said yesterday
will be donated to his philanthropic
foundation.
MEDIA
BY HARRY BANKS
FRIENDFINDER Networks, the owner
of adult magazine Penthouse, has
hired a financial adviser as it pre-
pares to counter Hugh Hefner’s bid to
buy Playboy Enterprises.
FriendFinder, an internet-based
social networking and multimedia
entertainment firm, yesterday said it
has retained Imperial Capital.
On Monday FriendFinder said that
Hefner’s offer of $5.50 in cash for
each of the shares he doesn’t already
own “dramatically” undervalues
Playboy. The bid by Hefner, 84, who
founded Playboy and currently owns
around 70 per cent of Class A com-
mon stock and 28 per cent of Class B,
values Playboy at $185m (£120m).
The offers for Playboy come as the
Evolve Capital set
to relinquish its
hold over Astaire
▲
FINANCIAL SERVICES
BY VICTORIA BATES
TROUBLED stockbroker Astaire is set
to revamp its ownership structure
after announcing plans to distance
itself from current majority share-
holder Evolve Capital.
Evolve, run by stockbroking veteran
Edward Vandyk, acquired Astaire –
formerly Blue Oar Securities – after a
bitter takeover battle at the turn of
last year. The deal preceded a number
of acquisitions for Astaire as Vandyk
pursued an aggressive consolidation
strategy, though the process was
brought to an abrupt halt in May
when the senior management team
resigned.
Astaire released a statement to the
stock exchange yesterday, admitting
that there is “a considerable momen-
tum to make a clean break from the
current corporate structure”. It added
that the board is in discussions with a
number of parties over a change in
majority ownership of the group,
buy Greek state stakes
▲
BANKING
GREECE’S fourth-largest lender
Piraeus Bank offered to buy the gov-
ernment’s controlling stakes in two
banks yesterday, in the first set of
mergers seen as key for the sector’s
survival.
The country’s socialist government
has been urging banks to consolidate
and form stronger companies better
able to deal with the backwash of the
debt crisis and foreign competition.
Piraeus chief executive and chair-
man Michael Sallas said his bank was
company struggles with a drop in
advertising revenue and a decline in
readership at its iconic flagship mag-
azine.
Hefner said earlier this week he
had already secured a partnership
agreement for the deal with Rizvi
Traverse Management, which had
already been in contact with major
lenders about financing.
The octogenarian mogul has
advised Playboy’s board he will not
contemplate a sale or merger of the
company or entering into discussions
with any other partners, out of con-
cern for “the Playboy brand, the edito-
rial direction of the magazine and
Playboy’s legacy.”
Playboy and its famous bunny logo
were set up by Hefner in 1953 and the
company listed in New York in the
early 1970s.
CITYA.M. 16 JULY 2010
most likely via a share subscription.
The firm was later forced to rush
out a clarification that it is not in
talks over a full offer for the group
and has not received any takeover
approaches.
Evolve’s current 53 per cent stake
would be considerably diluted in a
share subscription, though Vandyk is
thought to be keen to retain a signifi-
cant shareholding in Astaire.
Under Vandyk, the firm has swal-
lowed up a number of its smaller
competitors, including Whim Gully
Capital and St Helen’s Capital.
But it was forced to abandon a
planned purchase of Hoodless
Brennan after failing to secure regula-
tory approval.
Evolve Capital’s
Edward Vandyk
stepped down as chief
executive of Astaire a
few months ago
offering €701m (£587m) for the gov-
ernment’s stakes in the two lenders –
77.31 per cent of ATEbank and 33.04
per cent of Hellenic Postbank –
responding to government calls for
Greek banks to restructure. “The new
banking group will be the biggest in
Greece in terms of loan and deposit
market shares. It would be the second
biggest banking group in the broader
region,” he said. The move comes a
week before Greece’s top six banks
join 85 other European lenders due to
unveil results of a stress test on the
sector, aimed at restoring confidence.
ADVISER TO FRIENDFINDER
IMPERIAL Capital, with offices in
New York, Los Angeles, San
Francisco, Boston, Houston and
Minneapolis, is a US investment
banking group led by co-founders
Jason Reese and Randall Wooster,
now chief executive and president
respectively.
The pair, who previously worked
at brokerage Dabney/Resnick/
Imperial, set up the firm in 1997.
Imperial Capital specialises in
M&A, capital markets and restruc-
turing advisory work targeted at the
mid market.
It has recently advised racetrack
operator Churchill Downs on its
acquisition of horse racing betting
site Youbet.com and Western Money
Systems, a specialist in providing
cash handling solutions to the gam-
ing industry, to Global Cash Access
Holdings.
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 14 Media and Technology News
NTT in £3bn Dimension bid
▲
TELECOMS
BY STEVE DINNEEN
NIPPON Telegraph and Telephone
(NTT) has agreed to buy South African
IT firm Dimension Data for $3.2bn
(£2.1bn) as it seeks growth in emerg-
ing markets to offset a stagnant econ-
omy at home.
Dimension Data, which is a major
reseller for networking equipment
giant Cisco Systems, has seen growth
in Asia and Africa as customers buy
its expertise in bringing their IT and
telecoms networks together.
NTT President Satoshi Miura said:
“I want Dimension Data to be the
Virgin close to
legal action
over media JV
▲
MEDIA
BY STEVE DINNEEN
VIRGIN Media is almost certain to
take legal action over a controversial
video-on-demand venture backed by
the BBC.
Project Canvas is a joint venture
between media giants including BT,
TalkTalk and ITV that will offer video
streamed over users’ broadband con-
nections.
It has come under fierce criticism
by Virgin and Sky, who say it is bad
for competition and will negatively
affect internet users.
Virgin is now leading the charge
against the service, which sources
close to the firm claim will place the
UK’s broadband network under too
great a strain.
They also said the project is a veiled
attempt by the BBC to maintain its
power over viewing habits by creating
a “closed system” which rivals will be
unable to customise. This is in con-
trast to Freeview, which firms such as
Virgin and Sky can kit out with their
own branding.
Confirmation of the legal bid is
expected in the next few days.
A Virgin spokesman declined to
confirm whether legal action was
Vodafone eyes Australian bond offer Microsoft founder Allen to
as it seeks to offload at least 130 staff leave fortune to charity
▲
TELECOMS
BY STEVE DINNEEN
TELECOMS giant Vodafone has
approached investors to test their
appetite for a possible Australian dol-
lar bond issue.
Preliminary discussions centred on
a seven-year issue at around 170 basis
points over swap.
Investors named National Australia
Bank (NAB) as the bank which was
marketing the possible issue.
Vodafone said it has no firm plans
core for NTT's global strategy.
“Dimension Data has a strong pres-
ence in emerging markets, especially
in Africa, South America and the
Middle East, where NTT has a smaller
presence. Its brand power is stronger
than NTT’s overseas.”
Fujio Ando, senior managing direc-
tor at Chibagin Asset Management,
said it was a good move by NTT to
have a business base in South Africa,
given its growth potential.
He said: “NTT has to expand over-
seas operations since the Japanese
market has almost reached satura-
tion. A stronger yen provides good
opportunities for Japanese companies
likely but said: “It’s disappointing
that what started with seemingly pos-
itive intentions has developed into
something which wants to dictate
how we all watch TV.”
He added: “The BBC Trust has
explicitly admitted Canvas will ham-
per innovation and so damage com-
petition. Companies of all sizes and
from so many affected industries
have expressed their concerns but, to
date, these have been summarily dis-
missed.”
Last month the Office of Fair
Trading ruled Canvas does not qualify
for investigation as none of the devel-
opers were contributing a “pre-exist-
ing business” to the project.
Orange became the latest big name
linked with the project. The telecoms
firm has been mulling a shift towards
TV for some time.
Last week Channel Five dropped
out of the project as it seeks to trim
costs before its imminent sale.
Virgin Media chief exec
Neil Berkett would like to
be part of Canvas but
relations appear to have
crumbled.
at this stage having just completed a
A$3bn (£1.72bn) bank refinancing
package. NAB declined to comment.
The telecom company has issued
A$265m of 2013 notes in 2006 in a
kangaroo bond offer jointly managed
by Citigroup and Deutsche Bank. The
issue was rated A-minus by S&P and
Fitch and Baa1 by Moody’s.
Vodafone, which will announce its
quarterly results next week, will seek
to shed 130 jobs following a review of
its business.
It has launched a consultation with
to buy overseas assets”.
The offer, which at 120p a share
represents an 18 per cent premium to
Dimension Data’s Wednesday closing
price, is supported by the firm’s
board and largest shareholders,
which combined hold 52 per cent of
the stock.
South African billionaire Johann
Rupert, chief executive of Swiss luxu-
ry group Richemont, and his family
control 25.2 per cent of Dimension
Data, while fund holder Allan Gray
Limited holds 25.8 per cent. Both sup-
port the bid, but they could withdraw
backing if another company comes in
with a bid at least 10 per cent higher.
Entertainment One has seen solid growth thanks to hits like Twilight (above).
its workforce and trade unions, due
to finish next month. The firm hopes
to achieve the reduction in staff
through voluntary redundancies.
HR director Francesco Bianco said:
“Given the significant deterioration
in the market, the decline in con-
sumer spending and the impact this
has had across the telecoms industry,
we have to review all costs within our
business to ensure we’re operating
efficiently and delivering good value
to our customers.”
Apple forced into a rare
press call over iPhone 4
▲
TECHNOLOGY
THE world’s largest technology firm
will host a rare press conference
today as it tries to limit the fallout
from the antenna problems plaguing
its new phone.
Steve Jobs is expected personally to
host the press-call, at which he will
play down the reception problems
with his firm’s flagship iPhone 4.
Apple was dealt a bitter blow this
week when influential watchdog
Consumer Reports refused to rec-
▲
TECHNOLOGY
MICROSOFT co-founder Paul Allen
said he is committing the majority of
his estimated $13.5bn (£8.8bn) for-
tune to philanthropy after his death.
Allen, who announced in
November he was undergoing treat-
ment for non-Hodgkin’s lymphoma,
follows in the footsteps of former
business partner Bill Gates and bil-
lionaire investor Warren Buffett, who
have both pledged the vast majority
of their wealth to philanthropy.
CITYA.M. 16 JULY 2010
ommend the phone due to a design
fault that can cause the phone to
lose reception if held in a certain
way.
The market baulked at the bad
review, causing the firm to shed an
astonishing £6.5bn from its market
cap, before staging a partial recovery,
buoyed by a strong market.
Apple will unveil its results next
week, with Wall Street expecting iPad
sales of roughly 3.3m units, iPod sales
of around 10m units and strong Mac
sales upwards of 3m units.
Film studio
lists on the
main market
▲
MEDIA
THE studio behind the smash-hit
Twilight series stepped up to the
main market yesterday.
Entertainment One, which is also
responsible for the Peppa Pig chil-
dren’s series, moved its listing from
the Aim-market.
Chief executive Darren Throop
said: “I am delighted to lead
Entertainment One onto the main
market today.
“Our graduation from Aim illus-
trates the maturity and strength of
the group and follows on from the
continued success of our film and tel-
evision businesses.
“Our admission to the official list
enhances the strength of the group
and further endorses the strategy we
have pursued over the past three
years.
“Today we have the ideal platform
to deliver further growth and
enhanced shareholder value.”
The firm is also planning to move
its incorporation from the Cayman
Islands to Canada to improve its mar-
ket perception and attract a wider
investor base.
As part of the arrangements, the
company will also change its domicile
from the tax haven of Jersey to
Canada for simplicity and ease of
compliance with regulatory require-
ments in the Canadian film and TV
distribution sector.
Allen, the 37th richest person in
the world according to Forbes maga-
zine, co-founded Microsoft in 1975
with Gates and resigned as an execu-
tive in 1983 as he overcame a first
bout with cancer.
He has been involved with philan-
thropy in the US Pacific Northwest
for 20 years, largely through his Paul
Allen Family Foundation, handing
out more than $1bn in grants and
funding for local projects.
Allen owns the Seattle Seahawks
American football team.
CITYA.M. 16 JULY 2010
Redstone fined £630K by FSA Buncefield sentence to
▲
REGULATION
BY EMMA SADOWSKI
REDSTONE Mortgages has received a
£630,000 fine from the Financial
Services Authority (FSA) for failing to
treat customers facing mortgage
arrears fairly.
The FSA said yesterday the fine,
which could have been as high as
£900,000 if the sub-prime lender had
not co-operated with the regulator,
was handed to Redstone for “a num-
ber of serious failings” it committed
between January 2007 and August
2009.
These included adopting a “one
Slow recovery
dents UK sales
at Experian
▲
RETAIL
BY MARION DAKERS
CREDIT information company
Experian saw its UK operations
shrink by a further one per cent in
the last quarter, but strong growth
elsewhere led to a seven per cent rise
in revenue.
The FTSE 100 firm, which offers
consumer credit checks and oper-
ates in more than 90 countries, said
the longer than expected consumer
slump in the UK dented sales again,
and that the consolidation of several
banks had shrunk its institutional
client base.
However, it pointed out that its
activities in advising telecoms com-
panies and government bodies on
marketing and services remains on
track.
Total sales in Latin America
jumped 22 per cent and US business
rose five per cent in the three
months to June, swinging the firm
into overall growth, said an interim
statement.
The UK-based company reported a
global pre-tax profit of $661m
(£430m) last year, with all regions
except the UK and Ireland reporting
growth.
Bidding interest in Caledon Resources Stress tests set to clear
hots up after collapse of Polo merger UK and Italian banks
▲
MINING
BY VICTORIA BATES
A BIDDING war for Australian coking
coal producer Caledon Resources has
been ignited after merger talks with
rival Polo Resources fell through last
month.
Aim-listed Caledon told the stock
exchange yesterday that it had
received “a number of unsolicited
and indicative enquiries from third
parties in respect of possible alterna-
tive transactions, one of which relates
size fits all” approach to the way peo-
ple who were behind with repay-
ments were treated, with the group
focusing on reducing arrear levels to
less than two months, regardless of
an individual’s circumstances.
Redstone has agreed to redress
those customers affected by unfair or
excessive charges, which will see the
Yorkshire-based company repay up to
£500,000 to people who were charged
unfair or excessive fees by the group
while they were in arrears.
Margaret Cole, director of enforce-
ment at the FSA, said: “Many of
Redstone’s customers were in a vul-
nerable position, having fallen into
Experian’s chief executive Don
Robert said: “Experian is benefiting
from strong execution across the
globe, even though recovery in the
US and the UK financial markets
remains very gradual. For the first
half, we are targeting mid single-
digit organic revenue and EBIT
growth (from continuing activities at
constant currency).”
Oriel Securities yesterday retained
its “buy” recommendation, saying:
“This is an excellent start to the year
and increases our confidence in con-
sensus estimates moving up as the
year progresses.” Charles Stanley and
Evolution also rated Experian “buy”.
Shares closed 2.5 per cent up at
649p, continuing the firm’s climb
throughout July.
ANALYSIS l Experian 649.00
p 15 Jul
650
630
610
590
570
19 Apr 10 May 28 May 17 Jun
to an indicative offer for the compa-
ny”.
The firm stressed that the
enquiries were at a very early stage
and that there was no certainty that
the discussions would result in a firm
offer coming forth.
Caledon was forced into making a
statement after its shares jumped this
week, adding almost a quarter of
their value in just two days.
The firm struck an agreement in
principle with Polo at the end of
April, which would have given its
arrears on their mortgage payments,
and firms should not charge such
customers excessive and unfair fees.”
Cole said: “The FSA is committed to
clamping down on mortgage lenders
who fail to adhere to treating cus-
tomers fairly rules. We are crystal
clear about the standards we expect.”
FAST FACTS | FSA MORTGAGE FINES
● October 2009: GMAC-FRC fined £2.8m.
● April 2008: Kensington Mortgages fined
£1.2m.
● July 2010: Redstone fined £630,000.
● All fines related to unfair customer charges.
Don Robert chief executive of Experian says recovery in the US and UK is gradual
Credit is back in fashion
C
REDIT services have been
under pressure in the reces-
sion as people have cut back
on spending, but Experian is
clearly now on the up again.
Its first quarter results – showing
total revenue growth of seven per
cent – are its strongest for three
years.
It has delivered improved per-
formances worldwide with organic
growth in North America up five
per cent, Latin America up 22 per
cent and EMEA/Asia Pacific up two
per cent. UK and Ireland, which saw
revenues fall one per cent, are the
only blip.
8 Jul
shareholders 11.4 Polo shares for
every one of their own, equivalent to
a price of 61.56p per Caledon share.
But the deal eventually fell
through in late June, an event
Caledon managing director Mark
Trevan said was “a reflection of the
difficulties presented by the current
market environment”.
Instead, the company placed 7.1m
shares with Polo at 30p per share,
raising gross proceeds of £2.13m
which the group said would be used
to bolster its working capital.
be handed down today
▲
LEGAL
A JUDGE will today hand down a sen-
tence expected to run into the mil-
lions to companies linked to the 2005
Buncefield explosion.
Today the St Alban’s Crown Court
will sentence five companies for their
involvement in the disaster, which
caused damage spreading over a 450-
metre area north of London and
injured more than 40 people.
Last month, Hertfordshire Oil
Storage Limited (HOSL), a joint ven-
The improvement in the US,
which accounts for 53 per cent of
group revenue and 63 per cent of
EBIT, is a good indication of the
turnaround in its fortunes.
And credit card services should
start to grow in the UK with the
expansion of fraud prevention
measures in the public sector set to
boost revenues. Strong cash flow,
its $300m share buyback and hiked
dividend are all in its favour. The
shares deserve a re-rating.
BOTTOMLINE
Analysis by Katie Hope
▲
BANKING
ITALIAN and British banks will come
through European stress tests without
needing to raise new capital, top offi-
cials said yesterday.
“The tests on Italian banks will obvi-
ously present diverse results but I am
confident that they will show that the
capital resources of the single banks
are adequate,” said Bank of Italy
Governor and European Central Bank
member Mario Draghi.
Chancellor George Osborne said UK
News 15
ture between Total and Chevron, was
found guilty by the court of breach-
ing health and safety laws in connec-
tion to the explosion.
Motherwell Control Systems 2003
and TAV Engineering were also found
guilty by the court.
The court battle is considered to be
one of the largest pieces of litigation
in the UK and expectations are that
the sentence will run into the mil-
lions.
A vapour cloud from a petrol
spillage caused the explosion.
Capital One
and Discover
defaults fall
▲
FINANCIAL SERVICES
CREDIT card charge-offs and delin-
quencies improved at Capital One
Financial and Discover Financial
Services in June as fewer Americans
fell seriously behind on credit card
payments.
The companies said yesterday that
their credit card delinquency rates in
June fell to the lowest levels this year.
Delinquencies are a sign of future
losses.
Discover said in a regulatory filing
that its credit card delinquency rate
fell to 4.81 from 4.95 in May. At
Capital One, the rate inched down to
4.79 per cent from 4.8 per cent.
Both companies said their charge-
off rates fell to the lowest levels this
year. Charge-offs are debts a company
believes it will never collect. Capital
One’s annualised net charge-off rate
for US credit cards fell to 9.28 per cent
in June from 9.48 per cent in May.
Discover’s charge-off rate fell to eight
per cent from 8.82 per cent.
Capital One’s US auto loan charge-
off rate rose to 2.72 per cent in June
from 1.87 per cent in May. Its auto
loan delinquency rate was little
changed at 7.74 per cent, compared
with 7.75 per cent in May.
For credit card international opera-
tions, including Canada and Britain,
Capital One’s charge-off rate rose to
8.29 per cent from 8.21 per cent,
while the delinquency rate fell to 6.03
per cent from 6.08 per cent.
banks would not need any govern-
ment help to shore up their financial
position after the tests are released on
23 July. Osborne said it was important
to reassure markets with the tests on
91 banks designed to provide a health
check on the industry and that there
is “a plan to stand behind any banks
that don’t meet them”.
Banks will be assessed on how well
they can withstand another economic
downturn and losses on Greek and
some other government bonds, and
whether they need to raise capital.
 16 News CITYA.M. 16 JULY 2010

Abertis bidders eye financing Premier expects a 17 per

cusing of the group and several struc- confirmed it was in the process of rais-
cent rise in oil production
▲

INFRASTRUCTURE
tures to finance the bid are being ing a €5.3bn loan to back its bid.
BY HARRY BANKS looked at, but it has not been decided Lenders are thought to be assuming
A CONSORTIUM looking to acquire which assets will be sold, if any,” said a BB rating for Abertis, which is cur- recent Catcher discovery will now

Spanish motorway operator Abertis in
a leveraged buyout worth at least
€25bn (£20.9bn) yesterday said it was
considering several structures to
finance its bid.
It is also understood that the bid-
ding group hopes to sell stakes held by
Abertis in two highway operators,
Italy’s Atlantia and Portugal’s Brisa,
that could lead to a special dividend of
up to €1.2bn for Abertis shareholders
and would help finance the acquisi-
tion – easily the biggest leveraged buy-
out deal since the financial crisis.
“The consortium is looking at a refo-
the consortium, which includes
Abertis’ core shareholders – ACS and
Criteria – and private equity firm CVC
Capital Partners.
Abertis, which also runs airports,
telecoms and car parks and has a 32
per cent stake in French group
Eutelsat, has 14.6 per cent of Brisa and
6.7 per cent of Atlantia – stakes which
analysts have previously tipped as like-
ly disposal candidates to fund the
takeover. The consortium said it was
trying to put together a financing plan
that would keep Abertis’s debt at
investment grade after the takeover. It
rently rated BBB+ by S&P and A- by
Fitch. CVC, ACS and La Caixa’s Criteria
plan to put debt and equity into an
investment vehicle which will launch
a takeover of Abertis. CVC is believed to
be looking to put in at least €1bn in
equity for the bid. “If you have just
€5.3bn of debt, you are either going to
have to put some more equity or lower
the offer price,” an analyst at a leading
European bank said.
ACS could use the takeover process
to raise the €2bn it needs to realise its
ambition of raising its 12 per cent
stake in Spanish utility Iberdrola.
▲
ENERGY
PREMIER Oil said it expects average
first-half production to rise 17 per
cent and that its full-year production
remains in line with expectations.
Estimated average group produc-
tion for the first half was 46,600 bar-
rels of oil equivalent per day (boepd)
while forecast full-year production
continues to be around 44,000 boepd.
“Premier continues to make good
progress towards its 75,000 boepd
production target for 2012,” said chief
executive Simon Lockett. “Our major
projects are progressing well and the
move rapidly into development.”
The firm said its Balmoral well in
the North Sea should begin opera-
tions at the end of August, as expect-
ed. Premier plans to open 18 wells
over the next year.
Earlier this month, Premier raised
its reserves estimate for the
Catcher/Catcher East area in the
Central North Sea to a range of 60m
to 100m barrels of oil.
The firm owns a 35 per cent share
in the licence of the development.
Shares fell one per cent to £14.46
yesterday.

GSK hit by a BEST OF THE BROKERS

ANALYSIS l Novartis
54 CHF
50.90
15 Jul
ANALYSIS l Wetherspoon
550 p

420.40
ANALYSIS l Capital & Regional
37 p

£1.57bn legal
52
36 30.50
500 15 Jul 15 Jul
50 34

48 450
32
46

charge claim
400
30
44

42 350 28
28 Apr 18 May 8 Jun 28 Jun 28 Apr 18 May 8 Jun 28 Jun 28 Apr 18 May 8 Jun 28 Jun

NOVARTIS WETHERSPOON CAPITAL & REGIONAL

Standard & Poor’s Equity Research (S&P) Seymour Pierce upgrades Wetherspoon to Capital & Regional (C&R) is rated “buy” by
rates Novartis as “buy” due to its strong “hold” as it expects growth in fourth quar- Numis due to its successful restructuring of
▲

PHARMACEUTICALS
BY HARRY BANKS
GLAXOSMITHKLINE expects to record
a legal charge of £1.57bn for the sec-
ond quarter after settling the “sub-
stantial majority” of claims relating
to its controversial diabetes pill
Avandia.
The move, designed to clear the
decks of outstanding legal issues, will
wipe out most of the drugmaker’s
heart risks.
“Some people might baulk at the
size of the charge but probably most
will say this is putting it all behind
the company, so we can now look to
the continuing business and view the
stock on a more rational basis,” said
Deutsche Bank analyst Mark Clark.
The big legal hit will slash second-
quarter earnings per share by more
than 26p, according to analysts, wip-
second quarter results. Sales are up 12 per ter revenues. Shares for the group have The Mall Fund. Numis retains its 50p price
cent thanks to volume growth, especially in fallen since the third quarter and forecasts target for C&R and said that it believes the
vaccines, according to S&P, which said in have moved down to the bottom of the restructuring should support a re-rating of
its view, the well-managed volume-driven range, but Seymour Pierce said it changed the shares, while steps in reducing C&R’s
diversification of Novartis will offset fore- its rating as trading momentum is improv- debt will allow for the reshaping of The
seeable negatives. ing and valuation is now more reasonable. Mall Fund.
To appear in Best of the Brokers email your research to notes@cityam.com

Tullow Oil strikes black gold in Uganda

expected earnings for the three
months to June but leaves it better
placed to grow profits in future.
The British drugmaker said yester-
day the charge would cover not only
settlements for Avandia but also
other long-standing legal cases,
ing out most of the group’s profit for
the period. Prior to the news, the con-
sensus earnings per share forecast
had been 29.5p. Glaxo will report
results on 21 July.
Glaxo did not specify the amount it
was setting aside to settle liability tions in 2007. expansion in Uganda after the gov-
▲

including an investigation into its for-
mer factory at Cidra in Puerto Rico,
and anti-trust and product liability
litigation over antidepressant Paxil.
The charge will cost £1.35bn after
tax. News of the hefty charge – equal
to about 2.5 per cent of Glaxo’s mar-
ket value – initially dampened an
anticipated rally in the shares after a
US panel voted to keep Avandia on
the market with new warnings on
claims over Avandia, arguing settle-
ment terms were confidential.
Initially, analysts had feared it
might have to spend as much as $6bn
(£3.9bn) to resolve an estimated 13,000
US Avandia claims. But the favourable
panel vote and recent reports of mod-
est settlements means some now see a
bill of around $1bn or less.
Avandia was once Glaxo’s second-
biggest drug, with sales of £3bn a year.
ENERGY
BRITISH oil firm Tullow has struck a
new deposit of black gold in western
Uganda, the firm said yesterday.
The FTSE 100 firm said exploration
in the Butiaba region hit about 10
metres of net oil pay, after drilling to
a depth of 587m.
Tullow already has three licences
to drill in the region, after acquiring
Hardman Resources and its opera-
Angus McCoss, Exploration
Director, said: “Another successful
well in the Butiaba appraisal cam-
paign further enhances our under-
standing of these high quality
stacked fluvial reservoirs and will
assist with the basin-wide develop-
ment plan that Tullow and its new
partners will be working on during
the second half of 2010.”
Tullow is set to start a £6.6bn
ernment gave the green light to its
takeover of Heritage Oil’s stakes in
exploration blocks in the region earli-
er this month.
However, its operations in the
Congo are under threat after authori-
ties stripped Tullow of its oil blocks
near Lake Albert to award them to
smaller firms.
Shares in the firm closed 8p up at
£11.43.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Albertine Brandon in association with

DFS
The sofa retailer, which was recently sold by
founder Lord Kirkham to private equity group
Advent International for £500m, has ended its
search for a new chief executive.
Ian Filby has thirty years of retail experience,
including a recent stint working as interim chief
executive at Nectar. He was also previously
retail brand development director and trading
director at Alliance Boots, where he worked
alongside DFS chairman Richard Baker.
Axa Axa Wealth business and as a member
The insurance giant has appointed Mike of the Axa UK board.
Kellard as chief executive of the new Kellard is also chairman of the
Winterthur Pension Trustees UK board
and chief executive of Architas Multi-
Manager, both businesses under the
Axa Wealth brand.
GE Capital
The commercial finance provider has
appointed two new retail directors in
the Greater London area, Oliver Sutton
and Alan Austin.
Sutton, who will also cover the home
counties, was previously regional direc-
tor for the group’s equipment finance
business, having rejoined GE Capital in
2007 after a stint working for
Davenham Group.
Austin, who will also cover the
South, previously worked at companies
such as Landsbanki and Lloyds TSB.
Jones Lang LaSalle
Will Heigham has been hired as an
associate director at the real estate
financial and professional services
group, where he will work in the
London-based national office agency
tenant representation team.
Heigham has 10 years of experience
working in the City, advising corporate
occupiers on their property strategy.
Union Bancaire Privée
The Swiss private bank has appointed
Michel Longhini, formerly head of BNP
Paribas Wealth Management, as man-
aging director of its private banking
division.
Longhini, who will also have a seat on
the executive committee, has a wealth
of experience in the Asia-Pacific region
and will be tasked with opening up
UBP’s business in Asia, the Middle East
and eastern Europe.
Ashcourt Rowan
The wealth manager has appointed
Martyn Houghton as an intermediary
relationship manager.
Houghton, who will be based in
Manchester, joins from Axa Winterthur
Wealth Management.

To appear in CITYMOVES please email your career

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com morganmckinley.com
 Markets&Investment
17

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 . . . . . . . . . . . . . . . . . . . . . . . .281.00* –1.10 314.80 227.75 COLT Group . . . . . . . . . . . . . . . .132.10 +1.20 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .51.45 –0.95 71.75 33.50 Schroders . . . . . . . . . . . . . . . . .1215.00 –18.00 1450.00 808.50
3i Infrastructure . . . . . . . . . . . . . 111.00 –0.80 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .553.50* –3.00 574.50 307.75 Jardine Lloyd Thompson. . . . . . .567.50 +3.00 604.50 413.25 Schroders N/V. . . . . . . . . . . . . .1021.00 –16.00 1185.00 694.00
A.B. Foods . . . . . . . . . . . . . . . .1056.00 +7.00 1058.00 760.00 Cookson . . . . . . . . . . . . . . . . . . .431.30 –1.00 616.00 254.00 Johnson Matthey . . . . . . . . . . .1625.00* –2.00 1814.00 1159.00 Scot. & Sthrn Energy. . . . . . . . . 1192.00 –6.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .130.00 –0.10 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . . 1122.00 +6.00 1134.00 536.00 Kazakhmys . . . . . . . . . . . . . . . .1051.00 –20.00 1634.00 649.50 Scottish Mortgage. . . . . . . . . . . .584.50 –6.00 623.50 386.50
Admiral. . . . . . . . . . . . . . . . . . .1426.00 –6.00 1483.00 898.00 CSR . . . . . . . . . . . . . . . . . . . . . .392.30 –5.80 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .125.00 –0.80 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .275.80 +0.20 403.10 244.00
Aegis . . . . . . . . . . . . . . . . . . . . .107.40 –1.70 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .467.50 –2.10 539.00 290.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .220.60 –1.20 255.00 193.00
Afren . . . . . . . . . . . . . . . . . . . . . .87.00 +2.55 111.00 51.75 Dana Petroleum . . . . . . . . . . . .1416.00 –6.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .139.70 — 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .579.00 — 656.50 394.30
African Barr Gold . . . . . . . . . . . .596.50 –8.50 685.00 520.50 Davis Service . . . . . . . . . . . . . . .371.00 –3.90 442.30 318.50 Lancashire Hldgs . . . . . . . . . . . .526.50 +5.50 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1293.00* +24.00 1310.00 921.00
Aggreko . . . . . . . . . . . . . . . . . .1580.00 –30.00 1639.00 518.50 De La Rue . . . . . . . . . . . . . . . . . .935.50* –3.50 1021.00 808.50 Land Securities . . . . . . . . . . . . . .578.00* –6.50 743.50 447.00 Shaftesbury . . . . . . . . . . . . . . . .389.20 –0.10 426.50 297.00
Alliance Trust . . . . . . . . . . . . . . .318.30* –2.90 352.70 264.00 Debenhams . . . . . . . . . . . . . . . . .58.90 –1.10 91.95 51.95 Legal & General . . . . . . . . . . . . . .85.55 –1.80 94.40 54.25 Shire. . . . . . . . . . . . . . . . . . . . .1472.00 +5.00 1526.00 818.00
AMEC . . . . . . . . . . . . . . . . . . . . .878.50 +5.50 891.00 627.50 Derwent London . . . . . . . . . . . .1315.00 –4.00 1490.00 890.00 Lloyds Banking Gp . . . . . . . . . . . .61.90 –1.10 75.58 43.95 SIG . . . . . . . . . . . . . . . . . . . . . . .102.10 –1.10 146.60 96.90
Amlin . . . . . . . . . . . . . . . . . . . . .420.00 –1.20 428.50 312.00 Dexion Absolute . . . . . . . . . . . . .137.60 –0.40 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . . 111.90 –0.20 149.10 79.00 Smith & Nephew . . . . . . . . . . . . .613.50 –1.00 700.50 438.00
Anglo American . . . . . . . . . . . .2366.00 –50.50 3015.50 1735.50 Diageo . . . . . . . . . . . . . . . . . . . 1112.00 –6.00 1176.00 868.50 London Stk Exchange . . . . . . . . .622.50 –4.00 949.50 540.50 Smith(Ds) . . . . . . . . . . . . . . . . . .140.60 +0.60 147.00 63.75
Antofagasta . . . . . . . . . . . . . . . .903.00 –10.00 1100.00 623.00 Dimension Data . . . . . . . . . . . . .121.80 +20.20 122.50 55.00 Lonmin . . . . . . . . . . . . . . . . . . .1446.00 –20.00 2198.00 1079.00 Smiths . . . . . . . . . . . . . . . . . . . 1109.00 –5.00 1186.00 706.50
Aquarius Platinum . . . . . . . . . . .301.50 –10.60 490.00 201.00 Domino’s Pizza . . . . . . . . . . . . . .417.40 +4.60 426.00 214.75 Man . . . . . . . . . . . . . . . . . . . . . .215.50* –3.60 373.60 199.60 SOCO Intl . . . . . . . . . . . . . . . . . .417.40 –1.50 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .310.80 –7.70 362.40 120.50 Drax . . . . . . . . . . . . . . . . . . . . . .384.40 +4.30 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .347.40* –1.70 412.70 318.25 Spectris . . . . . . . . . . . . . . . . . . .835.50 –15.00 928.00 512.50
Arriva . . . . . . . . . . . . . . . . . . . . .767.50 –0.50 782.50 397.75 DSG Intl . . . . . . . . . . . . . . . . . . . .27.22 –0.59 39.75 20.50 Meggitt . . . . . . . . . . . . . . . . . . . .303.90 –7.70 331.00 163.00 Spirax-Sarco Eng . . . . . . . . . . .1547.00 –19.00 1591.00 843.00
Ashmore . . . . . . . . . . . . . . . . . . .269.00 –4.90 311.20 195.00 Dunelm . . . . . . . . . . . . . . . . . . . .385.30 –0.60 438.40 232.00 Melrose . . . . . . . . . . . . . . . . . . .227.10 –2.00 251.50 100.00
Astrazeneca . . . . . . . . . . . . . . .3240.00 –31.00 3277.50 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .414.50 –8.00 499.90 271.00 Mercantile IT . . . . . . . . . . . . . . . . 911.50* +6.50 1002.00 751.50 Spirent Comms . . . . . . . . . . . . . . 119.70 –0.30 127.80 57.50
Atkins(Ws) . . . . . . . . . . . . . . . . .714.00 –6.50 747.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .397.00* –2.00 412.40 309.25 Michael Page Intl. . . . . . . . . . . . .398.00 –2.70 461.50 242.50 Sports Direct Intl . . . . . . . . . . . . . 112.30 +0.30 134.00 77.00
Autonomy Corp . . . . . . . . . . . .1902.00 –10.00 2012.00 1121.00 Electrocomponents . . . . . . . . . . .226.90* –9.80 245.00 138.00 Micro Focus . . . . . . . . . . . . . . . .451.40 –1.00 550.00 300.90 SSL Intl . . . . . . . . . . . . . . . . . . . .887.00 –3.00 898.00 522.50
Aveva . . . . . . . . . . . . . . . . . . . .1340.00* +52.00 1365.00 721.00 EnQuest . . . . . . . . . . . . . . . . . . .103.00 +0.50 112.70 87.35 Millen & Copthorne . . . . . . . . . . .438.00 –7.00 496.30 239.50 St James’s Place . . . . . . . . . . . . .239.30 –0.20 296.90 172.25
Aviva . . . . . . . . . . . . . . . . . . . . .343.40 –12.50 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .448.10 +19.10 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .256.50 –0.30 281.70 168.75 Stagecoach. . . . . . . . . . . . . . . . .183.50 +0.10 204.90 126.20
Babcock International . . . . . . . . .624.50 –5.00 660.50 459.80 Eurasian Nat Res . . . . . . . . . . . .842.50 –30.50 1276.00 711.50 Mitchells & Butlers . . . . . . . . . . .306.60 –2.80 343.90 228.30 Standard Chartered . . . . . . . . . .1747.00 –27.00 1847.00 1185.00
BAE Systems . . . . . . . . . . . . . . .316.50 –2.40 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .598.50* –4.50 630.00 218.25 MITIE . . . . . . . . . . . . . . . . . . . . .212.70* –2.30 281.70 198.70 Standard Life . . . . . . . . . . . . . . .191.10 –2.50 237.00 170.00
Balfour Beatty . . . . . . . . . . . . . . .250.00 –2.30 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .649.00* +15.50 664.50 442.75 Mondi . . . . . . . . . . . . . . . . . . . . .409.20 +1.30 488.00 195.50 SuperGrp . . . . . . . . . . . . . . . . . .920.00 +120.00 924.50 499.00
Barclays . . . . . . . . . . . . . . . . . . .300.35 –13.20 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .94.55* +1.05 96.80 74.25 Monks Inv Tst . . . . . . . . . . . . . . .285.50* –3.00 321.20 229.50 TalkTalk . . . . . . . . . . . . . . . . . . . 119.10 –0.60 147.10 106.60
Barratt Development . . . . . . . . . .102.20 –2.10 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .259.30 –12.90 396.20 135.25 Morrison Wm . . . . . . . . . . . . . . .283.10 –1.20 306.30 245.75 Talvivaara Mining . . . . . . . . . . . .401.30 –0.80 501.50 333.00
BBA Aviation . . . . . . . . . . . . . . .197.70 +0.70 220.00 116.50 FirstGroup . . . . . . . . . . . . . . . . .376.90* –6.60 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .834.00* –10.00 893.50 613.00 Tate & Lyle . . . . . . . . . . . . . . . . .473.40* +2.90 509.00 296.00
Beazley. . . . . . . . . . . . . . . . . . . .121.00 –3.10 125.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .270.50 –3.70 297.20 215.75 National Express. . . . . . . . . . . . .241.20 +0.20 256.80 148.59 Taylor Wimpey . . . . . . . . . . . . . . .27.47 –0.10 54.90 24.29
Bellway. . . . . . . . . . . . . . . . . . . .594.00 –6.50 927.50 580.50 Fresnillo . . . . . . . . . . . . . . . . . . 1101.00 –12.00 1139.00 535.00 National Grid . . . . . . . . . . . . . . .488.30* –8.80 607.65 474.80
Berkeley . . . . . . . . . . . . . . . . . . .822.00 — 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .269.80 –2.30 285.70 208.50 Next . . . . . . . . . . . . . . . . . . . . .2077.00 –28.00 2360.00 1580.00 Telecity . . . . . . . . . . . . . . . . . . . .403.30 +7.40 455.00 300.00
BG . . . . . . . . . . . . . . . . . . . . . .1069.50 –12.50 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .458.00 –6.00 484.00 370.00 Northumbrian Water . . . . . . . . . .326.90 +1.30 328.90 219.90 Templeton Emrg Mkts . . . . . . . . .538.50* –9.50 598.00 358.50
BHP Billiton . . . . . . . . . . . . . . .1824.50 –21.50 2346.00 1390.00 GKN . . . . . . . . . . . . . . . . . . . . . .132.30 +1.70 155.00 75.50 Old Mutual . . . . . . . . . . . . . . . . . 112.90 –2.70 127.20 80.47 Tesco . . . . . . . . . . . . . . . . . . . . .402.25 –1.50 454.90 358.00
BlackRock Mining . . . . . . . . . . . .543.00 –12.00 654.50 367.00 GlaxoSmithKline . . . . . . . . . . . .1203.00 +21.50 1347.00 1088.00 Partygaming . . . . . . . . . . . . . . . .235.00 –6.30 339.70 205.80 Thomas Cook . . . . . . . . . . . . . . .195.90 –4.00 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .42.37 +0.09 49.50 33.00 Great Portland Estates . . . . . . . .300.00 –3.00 332.10 215.00 Pearson . . . . . . . . . . . . . . . . . . .936.50 –7.00 1069.00 603.00 Tomkins . . . . . . . . . . . . . . . . . . .233.70 –2.10 261.10 153.50
BP . . . . . . . . . . . . . . . . . . . . . . .401.75 +0.75 658.20 296.00 Greene King . . . . . . . . . . . . . . . .448.40 –3.10 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .581.00 +9.50 584.00 434.40 Travis Perkins . . . . . . . . . . . . . . .809.00 –6.00 915.00 591.00
Brit Insurance . . . . . . . . . . . . . . .904.00* –2.00 975.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .517.50* –7.50 562.50 322.25 Persimmon . . . . . . . . . . . . . . . . .385.70 –4.30 534.50 340.20 TUI Travel . . . . . . . . . . . . . . . . . .224.60 –3.90 313.90 202.30
British Airways . . . . . . . . . . . . . .203.60 –4.30 255.80 127.50 Halma . . . . . . . . . . . . . . . . . . . . .287.60 –0.40 298.70 184.00 Petrofac . . . . . . . . . . . . . . . . . .1293.00 +20.00 1308.00 681.50 Tullett Prebon . . . . . . . . . . . . . . .339.00 –1.10 436.20 261.20
British Amer. Tob . . . . . . . . . . .2269.50 +3.00 2335.50 1719.00 Hammerson . . . . . . . . . . . . . . . .367.90 +1.20 460.30 293.50 Petropavlovsk . . . . . . . . . . . . . . 1198.00 –9.00 1370.00 560.50 Tullow Oil . . . . . . . . . . . . . . . . . 1143.00 +8.00 1375.00 891.50
British Empire Tst . . . . . . . . . . . .426.90 +0.10 467.90 338.50 Hargreaves Lansdown . . . . . . . .337.30 –1.70 387.00 204.50 Premier Farnell . . . . . . . . . . . . . .239.70 –7.70 252.60 123.25 UK Commercial Prop. . . . . . . . . . .80.20 +0.80 84.90 62.25
British Land . . . . . . . . . . . . . . . .448.80* –1.80 532.00 378.25 Hays . . . . . . . . . . . . . . . . . . . . . . .96.00 –0.05 119.00 83.25 Premier Oil . . . . . . . . . . . . . . . .1446.00 –16.00 1477.00 984.00 Ultra Electronics . . . . . . . . . . . .1561.00 –17.00 1678.00 1094.00
Britvic. . . . . . . . . . . . . . . . . . . . .508.50 –3.50 516.50 307.00 Henderson . . . . . . . . . . . . . . . . .125.80 –0.90 157.80 88.25 Provident Financial . . . . . . . . . . .866.50 –4.00 986.00 786.00 Unilever . . . . . . . . . . . . . . . . . .1894.00 –9.00 2024.00 1456.00
Brown(N.) . . . . . . . . . . . . . . . . . .241.80* –2.20 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .432.20 –1.10 587.00 368.70 Prudential . . . . . . . . . . . . . . . . . .535.00 –9.00 665.00 370.75
BSkyB . . . . . . . . . . . . . . . . . . . .699.50 –0.50 732.00 489.25 Hikma Pharma . . . . . . . . . . . . . .720.50 –2.50 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .342.20 +0.40 356.80 206.75 United Utilities . . . . . . . . . . . . . .558.00* +4.50 575.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .139.80 –2.50 151.00 103.00 Hiscox . . . . . . . . . . . . . . . . . . . .349.60 –2.40 369.30 290.00 Qinetiq . . . . . . . . . . . . . . . . . . . .126.70 –1.70 179.10 113.90 Utd Business Media . . . . . . . . . .533.00 –3.00 579.50 366.00
Bunzl . . . . . . . . . . . . . . . . . . . . .714.50 +0.50 784.50 510.00 Hochschild Mining . . . . . . . . . . .299.90 –5.90 370.60 220.00 Randgold Resources. . . . . . . . .6170.00 –55.00 6600.00 3351.00 Vedanta Resources . . . . . . . . . .2238.00* –39.00 2967.00 1404.00
Burberry . . . . . . . . . . . . . . . . . . .790.50* –3.50 823.50 414.50 Home Retail . . . . . . . . . . . . . . . .231.90* –1.90 336.50 208.50 Reckitt Benckiser . . . . . . . . . . .3251.00 –14.00 3667.00 2686.00 Victrex . . . . . . . . . . . . . . . . . . . 1154.00 –12.00 1193.00 588.50
Cable & Wire Comms . . . . . . . . . .57.80* –0.85 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2120.00* –8.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .522.50 –4.00 548.00 403.75 Vodafone . . . . . . . . . . . . . . . . . .145.35* –0.75 153.80 112.30
Cable & Wire Wwide . . . . . . . . . . .86.70* –0.75 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .637.50 –2.20 766.80 511.50 Regus . . . . . . . . . . . . . . . . . . . . . .72.75 –1.10 125.50 66.00 Weir . . . . . . . . . . . . . . . . . . . . . 1187.00 –18.00 1229.00 479.25
Cairn Energy. . . . . . . . . . . . . . . .456.50 +2.50 479.20 306.80 Hunting . . . . . . . . . . . . . . . . . . .502.00 — 659.50 395.75 Rentokil Initial . . . . . . . . . . . . . . . 111.00 –2.70 140.20 84.75 WH Smith . . . . . . . . . . . . . . . . . .423.40 +0.40 551.00 396.00
Caledonia Invs . . . . . . . . . . . . .1586.00 –12.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . .408.70 –7.40 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .70.85 +0.70 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1449.00* –15.00 1645.00 808.00
Capita . . . . . . . . . . . . . . . . . . . . .755.50 –12.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .472.80 +3.50 485.30 262.25 Rexam . . . . . . . . . . . . . . . . . . . .319.20 –1.60 331.20 222.50 William Hill . . . . . . . . . . . . . . . . .182.40 — 217.80 160.50
Capital & Counties . . . . . . . . . . . 110.00 +2.10 125.40 99.60 Imagination Tech Gp . . . . . . . . . .326.40 –2.40 334.60 138.25 Rightmove . . . . . . . . . . . . . . . . .624.00 –2.00 729.00 350.00 Witan Inv Tst . . . . . . . . . . . . . . . .438.50 –4.00 487.00 337.25
Capital Shopping Centres . . . . . .326.80 +4.00 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .717.50 –12.50 756.50 281.75 Rio Tinto . . . . . . . . . . . . . . . . . .3030.50 –104.00 4104.00 2051.50 Wolseley . . . . . . . . . . . . . . . . . .1404.00 –21.00 1742.00 1073.00
Carillion . . . . . . . . . . . . . . . . . . .323.50 –1.80 361.90 246.25 Imperial Tobacco. . . . . . . . . . . .1970.00 +33.00 2159.00 1596.00 RIT Capital Partners . . . . . . . . .1200.00 +7.00 1215.00 904.00
Carnival . . . . . . . . . . . . . . . . . .2215.00 –39.00 2937.00 1615.00 Inchcape. . . . . . . . . . . . . . . . . . .288.00 –0.10 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .577.00 –13.00 631.50 363.00 Wood Group (John). . . . . . . . . . .347.20 –4.30 411.70 245.00
Catlin . . . . . . . . . . . . . . . . . . . . .379.10 –5.70 386.30 299.75 Informa . . . . . . . . . . . . . . . . . . . .364.20 –7.90 439.40 225.00 Rotork . . . . . . . . . . . . . . . . . . .1390.00* –6.00 1482.00 797.50 WPP . . . . . . . . . . . . . . . . . . . . . .651.50 –9.00 744.00 400.25
Centamin Egypt . . . . . . . . . . . . .156.80 –1.90 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .737.50 –2.50 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .45.20 –1.00 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . . .922.00 –20.50 1344.50 622.50
Centrica . . . . . . . . . . . . . . . . . . .310.80 –2.30 320.00 215.50 Intercontl Hotels . . . . . . . . . . . . 1120.00 –40.00 1244.00 604.00 Royal Dutch Shell A . . . . . . . . .1805.00 –16.50 2068.50 1468.00 Yell Group. . . . . . . . . . . . . . . . . . .26.67 –0.25 86.00 21.50
Charter Intl . . . . . . . . . . . . . . . . .692.00 –8.50 855.50 458.50 Intermediate Capital . . . . . . . . . .264.60* +5.40 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1731.00 –15.50 1997.50 1471.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2995.00* –3.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1634.00 +8.00 1648.00 1024.00 RSA Insurance . . . . . . . . . . . . . .124.00 — 142.00 114.10
Chloride Group . . . . . . . . . . . . . .371.50* –0.10 390.50 130.75 Intl Power . . . . . . . . . . . . . . . . . .319.50 –1.90 354.00 243.00 SABMiller . . . . . . . . . . . . . . . . .1925.50 –24.50 2090.00 1270.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .701.00 –2.00 806.50 653.00 Invensys . . . . . . . . . . . . . . . . . . .261.80* –4.40 350.30 232.25 Sage . . . . . . . . . . . . . . . . . . . . . .242.00 –1.00 260.50 176.20
Cobham . . . . . . . . . . . . . . . . . . .236.10 +1.00 278.60 173.20 Investec . . . . . . . . . . . . . . . . . . .477.60 –3.60 565.00 353.00 Sainsbury(J) . . . . . . . . . . . . . . . .348.80* +0.80 373.00 307.60 www.interactivedata.com

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London shares decline due to weak US Wall Street flat despite

data with banks and miners hit worst Goldman and SEC deal
Producer prices in the United much more than good earnings num- Goldman Sachs’ gains coincided

THELONDON States fell for a third month, the

Philadelphia Federal Reserve Bank
said factory activity in the US Mid-
bers and it seems as if people were
already anticipating good news,” said
Nick Serff, market analyst at City
THENEW YORK with the Securities and Exchange
Commission saying that it would
make a “significant announcement”
REPORT Atlantic region fell unexpectedly and
New York manufacturing hit its low-
est level since December 2009.
Index.
He said there was not much signifi-
cant technical support above the psy-
REPORT later in the afternoon.
The announcement prompted spec-
ulation the SEC was going to settle

W
EAK US data intensified anx- Investors were unimpressed by chological 5,000 level and that the fraud charges with Goldman Sachs.

U
iety about economic recov- quarterly results from JPMorgan lows just beneath 4,800 touched at S stocks ended little changed Shares of Goldman rose 4.4 per
ery and dragged Britain’s Chase & Co, which topped estimates the start of July would be watched. yesterday, recouping losses late cent to $145.22.
top share index to a lower but with much of the gains coming Mining stocks, already pressured in the day, led by a sudden turn- The Dow Jones industrial average
close yesterday, with risk-sensitive in areas that will not be a stable by data from China that showed a around in Goldman Sachs and dipped 7.41 points, or 0.07 per cent,
banks and commodity stocks hit future source of income. slowdown in economic growth in the BP. to end at 10,359.31.
hardest. Banks which are closely geared to second quarter, fell further as the US A jump in BP’s US-listed shares The Standard & Poor’s 500 Index
The FTSE 100 ended 42.23 points or the overall health of the economy data implied anaemic demand from after the company said no oil is leak- added 1.31 points, or 0.12 percent, to
0.8 per cent lower at 5,211.29. It were among the heaviest fallers on the world’s largest economy. ing from its blown-out well in the 1,096.48.
closed down 0.3 per cent on the index with Barclays the standout Eurasian Natural Resources fared Gulf of Mexico boosted the market The Nasdaq Composite Index was
Wednesday, snapping a six-day win- loser, down 4.2 per cent. the worst of the these stocks, shed- shortly ahead of the close. BP gained off 0.76 of a point, or 0.03 per cent, to
ning streak. “Economic data is being watched ding 3.5 per cent. 7.6 per cent to $38.92. 2,249.08.
 18 Investment | Personal Finance
Keep your pension in funds
Rule changes will give pensioners
more choice, but the devil is in
the detail, writes Juliet Samuel
T
HE government this week
announced that it will abolish com-
pulsory annuitisation, giving mil-
lions of pensioners more flexibility
in how they generate their income.
Annuitisation by age 75 has technically
not been compulsory since 2006, but the
only other permissable option, an
Alternatively Secured Pension, was so
highly taxed upon death as to mean only
4,000 people currently use it. As part of
the policy’s abolition, the coalition yester-
day launched a consultation as to how its
new pensions policy will work.
The most significant effect of the policy
change is likely to be the expansion of
draw-down pension funds as people are
allowed to keep their pension invested as
long as they want. The proposals also
enable those who live beyond the age of 75
to pass their pension on to family after
they die (which is impossible with an
annuity) and to alter their annually.
As part of the changes, those with
defined-contribution schemes will also be
able to withdraw as much as they want
from their pension pots, with the first 25
per cent of the lump sum tax free.
The catch, however, is that the govern-
ment still wants to ensure that pensioners
don’t draw on state benefits if their pen-
sion fund runs out. That means there will
be a minimum income requirement of
around £10,000 per year – but it has yet to
be decided how pensioners will prove they
can provide this. The problem is that there
are not many ways to do so without the
purchase of an expensive annuity that
could cost more than most people have
accumulated.
Towers Watson’s Paul Macro says: “If the
government took a conservative approach,
many people would have to use roughly
the first £300,000 of their savings to pro-
vide a secure income before being able to
access the rest of their money upfront.
However, that number could fall if annu-
2009: A GOOD
VINTAGE FOR
BORDEAUX
GARY BOOM
MD & FOUNDER OF FINE WINE
MERCHANT BORDEAUX INDEX
M
ORE column inches have already
been devoted to 2009 Bordeaux
than to all the campaigns over the
past decade, it would seem. This en
primeur has been the biggest, craziest and
most highly talked-up in memory. So as the
dust settles and we can finally begin to think
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W I N E S E L E C T I O N S I M P L I F I E D
Pensioners will have
more control over
their savings under
the government’s new
plans
Picture: GETTY
ity rates improve, if means-tested benefits
are pared back further in response to the
fiscal crisis, or if the government decides
there is only a small risk of people run-
ning down all their non-pension assets.
Most people don’t have pension pots of
this size.”
Despite this, the policy change at least
gives you more control over the risk-
return trade-off of your investment. Even
with this option, however, Hargreaves
Lansdowns’ Laith Khalaf says: “Most peo-
about the impending summer holidays, let’s
take a few questions and see what’s going on
with the 2009 Bordeaux.
How good are the 2009s?
No question, it is the best vintage that I
have ever tasted from the barrel – ripe,
super-concentrated and with amazingly soft
tannins that mean they’ll drink well when
they are young. As for the critics, Robert
Parker’s scores marginally pip both the
2005 and 2000 vintages. He also emphasis-
es how approachable the wines will be – a
big win over 2005 for me.
Are they good value?
This is the million-dollar question. At the
top end, these are the most expensive
releases ever – surpassing even the mad-
ness of 2005 with stomach-churning
prices for the first growths and the top
left- and right-bank wines. However, if you
start to look a little further down the price
c h a n t t o o ffff e r 2 4 h r t r a d i n g f o r t h e t o p b l u e c h i p w i n e s
10
1 0 Hatton
H a t t o n Garden,
G a rd e n , L
London
ondon E
ple will still want an annuity because it
provides you with a secure income for life.
But one thing that people don’t do
enough at the moment is shop around for
an annuity rate, which can get you a 20
per cent higher income for the rest of your
life. The government is looking at reform-
ing the system to encourage people to
shop around.”
But, as with many elements of the poli-
cy changes, the details (and their devil)
have yet to emerge.
range, then there are more great wines
than ever in the £250-£400 bracket.
Having the option to buy some of these in
the format of your choice will certainly
make for rewarding drinking over the next
20 years.
Have they sold out?
From what we have heard, yes. We have
held back a small amount of stock so we
can continue to offer a few lines that we
particularly liked through to the autumn.
But the vast majority of wines have already
been sold and not much more is being
released.
What else should I look at?
As we’ve been predicting all year, many
back vintages have proven to be excellent
value, underwriting much of the 22.35 per
cent return year-to-date shown on the
Bordeaux Index.
Many of these wines still seem to offer
EC1N
C1N 8
8AH
AH | T
Tel:
e l : +44
+ 4 4 (0)
( 0 ) 20
2 0 7269
7 2 6 9 0703
0 7 0 3 | www.bordeauxindex.com
CITYA.M. 16 JULY 2010
PERSONAL
FINANCE NEWS
BY JESSICA MEAD
BP: ONCE IN A LIFETIME OPPORTUNITY
At last, some good news for BP. Its stock
has sunk so low – closing yesterday at
401.75p – that investors are jumping at the
chance to snap up cheap stakes in the oil
giant. Clients of Barclays Stockbrokers have
been piling into the stock – a third of all pur-
chases made on Tuesday were of BP. And
Fidelity’s star fund manager Anthony Bolton
said yesterday that BP represents a classic
once in a lifetime opportunity for investors
to buy the stock.
IFAS TIP EMERGING MARKETS, US STOCKS
Emerging markets, US equities and com-
modities are independent financial advisers’
(IFA) investing tips for this summer, accord-
ing to research published earlier this week
by Ignis Asset Management. Almost 80 per
cent of IFAs believe emerging markets will
be the best-performing asset class over the
coming months. US equities were the second
most popular asset class, with almost half of
advisers saying they expected it to perform
well and commodities came in third. Cash
and gilts were the least favoured asset class-
es, with the overwhelming majority of advis-
ers saying they expected them to perform
poorly over the period.
BARNSLEY OFFERS 90PC MORTGAGE
First-time buyers will be cheering the launch
of a new mortgage deal for people who need
to borrow up to 90 per cent of the value of
their home. Barnsley Building Society, which
is now part of the Yorkshire Building Society
group, earlier this week launched a two-year
mortgage at a fixed rate of 6.35 per cent. A
slightly less expensive rate is available if for
a larger deposit. There is no product fee and
remortgagors can also benefit from the deal.
BROADBAND SPEED STILL TOO SLOW
Despite the government’s plans to bring
high-speed broadband to the whole of
Britain, only a third of those paying for an
8Mb speed actually receive it, research from
uSwitch shows. O2 customers are most sat-
isfied with their speed, with Virgin Media
and Sky just behind. AOL and Orange are the
worst with just 63 per cent of customers
satisfied with speed. A third of all bill-payers
don’t know the speed advertised by their
providers.
exploitable value differences compared to
their 2009 cousins, which speaks volumes
about how fully priced the new releases
are.
The 2006 Mouton looks interesting, it’s
unquestionably superior to the 2009, is
physical and offered at a healthy discount –
it could be just the type of thing that gets
picked up over in Asia for the mid-autumn
festival later this year.
Did they buy 2009 Bordeaux in China?
It’s been our biggest campaign ever in
Hong Kong. That said, and as we predicted,
the focus there is still on a fairly narrow
universe of wines. Such was the competi-
tion from private buyers in the UK, it has
been difficult in many ways to allocate
enough wine to Hong Kong demand.
Still, it’s clear that Chinese buyers are
beginning to wake up to en primeur and we
can expect even more in the way of compe-
tition over the next few years.
w w w. b o r d e a u x i n d e x . c o m
 Living
FOCUS ON: BASILDON, ESSEX
ASHBROOK,
DUNTON ROAD,
Price: £675,000
A top-end property in
Basildon with four bed-
rooms. The master bed-
room has an en suite
and a dressing room.
Ample off-street park-
ing and a back garden.
Contact: Bairstow Eves
on 01268 282466,
www.bairstoweves.co.uk
PROPERTY NEWS
BY JESSICA MEAD
BISHOPS AVE SITE SOLD FOR £30M
One of London’s best development oppor-
tunities in Hampstead’s Bishops Avenue
has sold for more than £30m. The 2.47
acre site has two planning consents in
place – either for a house of 33,000 sq ft
or for a block of 16 luxury apartments.
This indicates the competition and rising
values of small- to medium-sized consent-
ed residential land in London. Research
from Savills, which was one of the agents
for the site, shows that this type of land
in London has seen values rise by 21 per
cent over the past six months.
CURRENT MORTGAGE DEALS BY JESSICA MEAD
Lender Fixed/Flexible
NatWest
First Direct
Yorkshire BS
ING Direct
The Co-operative Bank
HSBC
Yorkshire BS
Santander
Market Harborough BS
Leeds BS
19
CORNISH
DELIGHTS
| The Knowledge IN MONDAY’S
TRAVEL SECTION
LETTING
Q&A
BY JESSICA MEAD
COBURG LANE, SAMUEL ROAD
Price: £152,500 Price: £280,000
This smart two-bed-
room maisonette would
A spacious four-bed-
room house with plenty
James Davis
CEO OF ONLINE LETTINGS
be ideal for first-time of storage and a well- AGENT UPAD.CO.UK
buyers. It comes with sized back garden. It is
off-street parking and within walking distance I have three properties which I let
access to communal
gardens. There’s no
onward chain. Contact:
of the station. There is
an en suite bathroom
and a dining/play area.
Q. to tenants on Local Housing
Allowance. How do I find out if the
new rates of housing benefit will cover
Balgores on 01268 Contact: Haart on their rent? If they don’t, what do I do?
271110, www.balgore- 01268 284656,
sproperty.co.uk www.haart.co.uk
A.
The new rates announced by the
chancellor in the Budget won’t come
into force before April 2011, so you
don’t need to panic immediately. In April, new
NEED TO KNOW | AREA INSIGHT maximum payments will be implemented:
these range from £250 a week for a one bed-
Commuting: Basildon is 35 minutes Restaurants and Pubs: The Bell End room property up to £400 a week for a prop-
by train from Fenchurch Street and the pub in Horndon-on-the-hill does good erty with four or more bedrooms. The
five-bedroom rate has been scrapped.
town has two railway stations – one in food. Rated pubs include The Plough & In October 2011, there’s a further change:
the centre and one serving the west- Tractor and The Quays. local housing allowance (LHA) will be based
ern suburbs. It is also on the A13 and Parks and Leisure: Festival Leisure on the 30th percentile rather than the 50th
close to J29 of the M25. Park on the outskirts has a bowling as now. That is, it’ll be based on the lowest
Schools: Kingswood Junior School, alley and a 12-screen cinema. Those third of rents, not the average. As rents are
Lee Chapel and Laindon Park all have craving a bit of Mother Nature should likely to change in the interim, it’s not cur-
strong Key Stage 2 results. Woodlands head across the A13 to the Wat Tyler rently possible to state exactly what these
School has 95 per cent of pupils get- country park and Vange Creek. amounts will be.
But in practical terms, what should you do
ting A*-C at GSCE. Famous residents: Depeche Mode and immediately? If your rents are over the
Crime: Safer than the national average. Denise van Outen hail from Basildon. capped rate, then you’ll need to make a deci-
sion whether you can drop them to fit in with
the new LHA rates, or whether your tenants
could afford to pay the extra from their own
pockets: if not, then you will unfortunately be
looking to ask them to move on before April.
More detailed information is available at
www.voa.gov.uk.
My tenant owes me nearly £3,000
Q. in unpaid rent. I’ve served a
Section 8 notice on her to quit, but
she’s now paid me £500 (she says that’s
all she’s got). Can I still continue with the
eviction proceedings? Should I return
her payment?
A.
A Section 8 notice to quit can be
served by a landlord wanting to
regain possession of a property at any
BOARDS ARE COST EFFECTIVE LONDON RENTS AT 2008 LEVELS COTSWOLDS LAND AT RECORD HIGH time during the fixed term of the tenancy,
The battle of the estate agents’ boards London rents have surged back to Land prices in Gloucestershire have provided the tenant has breached the terms
of the tenancy agreement – in your case, by
continues. Richard Barber from central November 2008 levels and there is no climbed to record levels as demand for failure to pay the rent. Any landlord wanting
London estate agency W.A. Ellis has this sign of a slowdown, LSL Property farmland outstrips supply, research from to evict a tenant needs to first obtain an order
week staunchly defended the boards. He Services will say today. Average rents Knight Frank showed yesterday. Land is for possession from a court and you can’t
argues that they are the most cost effec- soared by 1.9 per cent in June to £942. selling at £10,000 an acre and the aver- apply to the court without first serving a
tive means of advertising your property. This is compared to a 1 per cent rise for age price of farmland sold in the county Section 8 notice. It’s different to a Section 21
Until recently, they were banned from the UK as a whole and an average month- by Knight Frank in the past year was notice that can only be used for regaining
much of Kensington & Chelsea but that ly rent for England and Wales of £673. almost £9,000 an acre. This compares to possession at the end of a tenancy agreement,
has now lapsed. Barber warns that self- The yield was 4.8 per cent last month. the average of £5,145 an acre recorded but both are important here.
regulation is not an option: “Unless there LSL’s David Brown said: “The increasing by the RICS. Clive Hopkins at Knight You can’t refuse to accept the money if
offered, so don’t return the payment. If she
is regulation which is effectively and vig- reliance on rental accommodation in the Frank, said that farmland’s exemption still owes you more than two months’ rent (or
orously policed, the unscrupulous will capital, combined with the constraints in from inheritance tax has boosted sales in eight weeks if she pays on a weekly basis) at
bend the rules to everyone's detriment.” its supply is pushing up rents.” the region. the time of the court hearing, then the notice
will still stand. When you serve a Section 8
notice, you should also serve a Section 21
Source: MoneySupermarket.com notice to quit too, so even if she pays down
her debt to less than two months rent, you
can still ask her to leave.
Rate Until Standard Rate APR Maximum Loan If you have evict her, you’ll have the option
(per cent) (per cent) (per cent) to Value (per cent) of pursuing her for the unpaid rent but think
hard about this. It may be that you’re better
off writing it off rather than spending money
Flexible 2.19 To Aug 2012 4 4 60 and time chasing it up – and I’m speaking
from personal experience here. I had a tenant
Flexible 2.29 Term 2.3 2.3 65 who left two months early, owing £4,000 in
rent and with £1,000 in damage to the flat. It
Flexible 2.39 To Jul 2012 4.99 4.7 75 took me 12 months to get a court hearing; she
Flexible 2.39 2 years 3.5 3.5 60 didn’t turn up so I was awarded the money
owed, but now I have a court hearing coming
Flexible 2.49 To Nov 2013 4.24 3.9 75 up to get hold of that through her bank. If she
doesn’t have the money I still won’t get it any-
Fixed 2.69 To Oct 2012 3.94 3.9 60 way, and it’s already cost me £1,500 in legal
fees. I’m fighting it on a point of principle, but
Fixed 2.79 To Jul 2012 4.99 4.8 75 these things do take a lot of time.
Fixed 2.85 To Aug 2012 4.24 4.2 60 James Davis is CEO of online lettings agent
Fixed 2.89 To Jul 2012 5.49 5.1 70 www.upad.co.uk. You can also follow Upad
on Twitter: @avoidthevoids.
Fixed 3.65 To Jul 2013 5.69 5.5 75
 20 Living | Capital CITYA.M. 16 JULY 2010

The ascent of prime London’s new hotspot

A new development Well, the construction of a supremely
elegant block of flats from the Manhattan
Left: a flat in the Fitzrovia
Apartments block; below,
confirms Fitzrovia’s Loft Corporation (the developers behind
the instantly sold-out St Pancras conver-
a map of the area with
Fitzrovia in yellow.
rise, says Zoe Strimpel sion) and Ridgeford Properties, is one
answer. Fitzrovia Apartments, billed as
“Manhattan meets Fitzrovia” and the ulti- Regent’s
mate “urban village”, is located on Bolsover Park

F
ITZROVIA, the area around the BT Street, and comprises 70 flats, including oad
bone R Bloomsbury
Tower, bordered by Oxford Street, two £7m penthouses, currently being rent- Maryle
Tottenham Court Road, Great ed out for £3,000 per week. The first batch of Fitr
ovia
Portland Street and Euston Road, flats was sold off quickly, with buyers mov- Marylebone
should be Londoners’ idea of property heav- ing in last December. Now in its second
Oxford
St Covent
en. The West End is on your doorstep, as is phase of development, interest is already Soho Garden
Regent’s Park. The ever-more exciting feverish for the remaining flats, which will Mayfair

Pa
restaurant and bar scene of Goodge and be completed in 2012.

rk
Lan
Charlotte Streets, and the more established Harry Handelsman, CEO of Manhattan

e
illy
prettiness of Marylebone, are a stone’s Loft Corp, believes the area needed an injec- cad
Pic
throw away. Transport-wise, you’re spoiled tion of thoughtful modernity. “There are Hyde Park Green St.James’s
for choice, with almost every Tube line beautiful houses on Fitzroy Square,” he says. Park Park
near by. And if its history you like, well, “But in terms of modern residential devel-
you’re in one of London’s most important opment, Fitzrovia was just ignored, and
artistic areas, once home to Virginia Woolf what did take place was rather ordinary.”
and William Blake, among many others. But isn’t there a risk of clashing painfully
FITZROVIA | NEED TO KNOW
And yet, for far too long, Fitzrovia’s with the period architecture that defines
image has been that of “a strange area”, a Fitzrovia’s squares? “No, I believe it’s about HISTORY: The core of the area is RESTAURANTS: Goodge and Sanderson Hotel (Berners St) is a seri-
“limbo-ish pocket” – an odd mix of the old good architecture, which speaks for itself. I Fitzroy Square, named after the 18th Charlotte Streets are crammed with ously glam spot for food and spa.
and the new, where the old feels dusty and treated this modern intervention like a century Fitzroy Tavern, named in turn top-class food and drink options. Great EDUCATION: LSE, UCL, SOAS and the
slightly obscure and the new takes the wake-up call: I didn’t want to do anything after one of the area’s first developers, tapas are to be had at Salt Yard and London College of Fashion are all head-
form of imposing office buildings belong- banal.” He is particularly proud of the dou- Charles FitzRoy, later Baron Barrica (Goodge Street); for more seri- quartered in Fitzrovia. Camden School
ing to big companies who once sought a ble-height entrance: it provides a profound Southampton. Residents have included ous Spanish dining, at Fino (Rathbone for Girls and the boys’ Westminster
cheaper alternative to Mayfair or the City. “sense of arrival”.
But times are changing, and Fitzrovia is If you’re in the market for a smart new
John Constable, Dante Gabriel Place), while the best Japanese in City School are good local secondary
poised on the brink of gold-plated property flat in a smart new development, you do Rossetti, Dylan Thomas, the architect town is at Roka and on a smaller scale schools. Top independent school
status. Indeed, the developers InHolborn have some choice – the obvious alternative Robert Adam, William Blake, Virginia at Tsunami (both Charlotte St). The Francis Holland is nearby.
are campaigning to rebrand the area is the super-elegant Heron going up near Woolf and George Bernard Shaw. Charlotte Street Hotel is a buzzy bar SHOPPING: Selfridges, John Lewis,
between the West End and the City as the Barbican. So why should you choose PUBS: The Fitzroy Tavern, The and restaurant, and Bam-bou is a The Conran Shop, La Fromagerie and
Midtown. If being rebranded as a Fitzrovia? “Fitzrovia is about comfort and Marquis of Granby, Adam and Eve, The groovy, chic Asian restaurant and bar much, much more are within spitting
Manhattan neighbourhood isn’t a sign of about soul,” says Handelsman. Flats from Newman Arms. on the corner of Charlotte St. The distance.
coming up in the world, then what is? £650,000-£7m. www.fitzroviaapartments.com

C AT I O N S
N P R I M E L O
R T M E N T S I
PRI M E A PA

E8
Creekside, S
Greenwich enwich, many with
River Thames views
. Six minutes
10.
18 st Gre in from October 20
apartments in We
e e n M a ry’s Gate, E concierge, 1, 2 & 3 bedroom ns. Reserve now!
Ready for move -
hers*
Q u odford. 24 hour walk to DLR and rail statio n O2 concert vouc
heart of South Wo
nts in the station. ntral line tube ly fo r your chance to wi
bedroom apartme tes walk from a Ce ich Creekside in Ju
Luxury 1, 2 & 3 and just ten minu Visit us at Greenw
Kinetica, E8 w East London otion.***
ured pa rking am - 6pm
walk from the ne landscaped garde
ns, sec
Prize Draw Prom Monday - Saturda
y, 10 94 8186
ney five minutes The City. nd - 25th July. Plus Sales centre open ll: 020 86
Ha ck
,000 Ca
in ch for 22 **
apart me nts ore dit le Ev en t
1, 2 & 3 bedroom Junction. Six minutes journey tim
e to Sh
End of Season Sa - 5pm m £240
turday 10am - 6p
m & Sunday 11am 5 Prices fro
8506 195
lston
line station at Da en Mo nday - Sa
** Call: 02 0
only Sales Centre op
by appointment 0 032 00
77
m £197,5
00
Viewing strictly 0 ** Call: 080 Prices fro
2 4 9,9 5
m£
Prices fro

(out of hours) 0800 032 0077 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. Photographs depict Greenwich Creekside, Queen Mary’s Gate and Kinetica.

Job:115720 Pre:115450 Size:175x259 Publication:City AM W/c:12/07/10 Copy:12/07/10 COLOUR Date:15/07/10 Proof:1

 Sq wa t
da s le
ua lk
Ca m nts tic
na in to

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m 15 e tas

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fro ly rtm an

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on apa F

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To arrange a viewing call Lisa-Jane Stratton:

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London | Hong Kong | Singapore | Dubai
 22 Living | Overseas Property CITYA.M. 16 JULY 2010

Don’t let your prime real estate abroad

stand idle while you slave away at work
Whether you do it all generally want a more luxurious experi-
ence. In other words, you are best sticking
maintain it, this can make rentals a little
bit difficult.” Beauchamp offers a rate of
generated going on service fees and 50 per
cent going to your pocket. While this is
yourself or use a to what you know.
It is also vital to be realistic. Rental
20 per cent for renting out the property,
with a €1,000 fee to inspect the place ini-
not great value compared to using an
agency, it is extremely low-hassle and you
tially and thereafter just €300 per year to
service, it is always income is unlikely to pay for the whole
property, but it will help to defray mainte- check in on it and arrange for any neces-
can enjoy the benefits of hotel facilities –
use of the golf course, cleaning services
worth renting out nance costs and perhaps make back a little
on the purchase price. The rent-return
sary maintenance. and so on – in the comfort of a private
home (www.hamptons-
ratio varies depending on the area, but a LOW-HASSLE RENTALS international.com).
your holiday home, €900,000 villa in Mykonos, Greece, can be An alternative is to A similar arrangement is available
rented out for €5,000 per week in the high buy a property in a in Madeira on the
says Juliet Samuel season while a well-furnished apartment
in Provence can fetch up to €1,680 per
managed estate or
resort. Hamptons
Palheiro Estate,
where buyers can
week. In more exotic locales, a £1.2m villa International’s Dean choose from a

W
ITH global growth likely to be
sluggish in the coming years, it
might seem like a poor time to
invest in a holiday home. But
with a clear strategy for renting out the
place when you’re not in residence, it is
easily possible to make back the cost of
maintenance and to generate a little extra
on the side.
WHAT TO BUY
In most cases, what appeals to holiday
rental tenants will be the same factors
that appeal to you as a buyer: the quality
of the property and the local attractions.
But there are also some additional aspects
to consider. While you might be happy to
purchase somewhere a little cheaper and
bring a car down for your holiday, this
could prove more of a problem for a short-
er-term tenant. Stuart Baldock of interna-
tional buyer agent Property Vision says
“You want to buy as close as possible to a
beach and a town or village.” While this is
not a hard and fast rule – exploring cer-
tain areas like Provence or Napa Valley is
always going to require some form of pri-
vate transport – it highlights the need to
consider the needs of temporary occu-
pants as well as your own.
Most important, however, is to put the
effort into shopping around. It is always
best to buy in an area with which you are
familiar, but this is particularly true if you
intend to generate income off the proper-
ty. Consider your niche appeal: as a Brit
abroad, you can appeal specifically to
other Brits and Anglophones. In some
areas, for example, there is a cultural dif-
ference in the holiday home market: in
France, many native holidaymakers
expect a vacation rental to include only
basic facilities, whereas English tenants
on the popular beach island of Lamu off
the coast of Kenya can generate an average
of around £840 per night, which, when let
for 90 days a year minus an agency fee,
makes maintaining the place revenue
neutral.
DO IT YOURSELF
The most cost-efficient way of renting out
the property is of course to do it yourself.
Although this can be time consuming, it
gives you the chance to build relationships
with tenants directly, which makes it easi-
er to cultivate return business. Baldock
says: “If you have the time, make your own
simple website – perhaps share it with any
friends you have who also have property to
rent. If not, use one of the specialist web-
sites that allow owners to advertise direct-
ly.” Recommended sites include
www.ownersdirect.co.uk and
www.property-abroad.com/overseas-
rentals.
Even if you can find the ten-
ants yourself, however, the
chances are you will still need
someone to look in on the
property and to clean the
place between rentals. The
best option is to pay some-
one local to do it, whether
that is a friend or a house-
keeper. If that is not feasible,
many estate agents will take
on the responsibility for fees
of around 20-30 per cent of
the rent. This eats into your
margins, but at least you can
be sure the property is being
looked after. Roi Delimou of
Beauchamp Estates says: “The
house must be in perfect con-
dition. When owners don’t
Foley says: “For the
most part, foreigners
– mainly Brits – look-
ing to buy overseas
want a lifestyle aspect
to their property and
the resort markets have
become incredibly popular over the
last 10 to 15 years.” One resort in the
Algarve managed by the Starwood hotel
chain, for example, offers buyers a 10-year
agreement whereby you can stay in the
property 12 weeks a year. During the oth-
ers it is added to the hotel’s inventory for
bookings with 50 per cent of the income
HOLIDAY RENTALS | HOW TO GENERATE INCOME
DOS
l Be aware that if you use the property
throughout the high season, your rental income
potential will be significantly reduced. If possi-
ble, stay there during the low season and let it
out for the most popular periods to be sure of
maximum occupancy.
l Provide everything you would want to make
use of the property. Property Vision’s Stuart
Baldock says: “Aim for repeat business, so price
the place competitively and give a lot of perks
like decent towels, beach towels, all bed linen
and a daily maid (who can also ensure no dam-
age is being done). Stock the bathrooms like a
decent hotel does with shampoo, soap and
lotions.” This might seem like a minor point, but
it can make the difference to tenants’ experi-
ence. A well-treated client might well come
back and return business means less hassle for
you and more trustworthy tenants.
l Include extras like lists of local attractions,
restaurants and cycle-routes.
range of apart-
ments and villas
between €400,000
and €900,000 and
have the estate’s
property service
rent them out and
arrange for all neces-
sary cleaning and
maintenance for a 30
per cent weekly fee.
Whichever option appeals, with so
many low-hassle ways to manage rental
tenants, there is no reason to leave your
overseas property standing idle.
DON’TS
l Don’t be persuaded that you need to invest a
lot of money in advertising your property if you
are arranging the rentals yourself. Constructing
a simple website, listing your property on free
sites and, if necessary, investing in a moderate
amount of advertising should drum up business
without the need for a huge marketing budget.
l Cut corners: failing to maintain the place
only leads to dissatisfied tenants and higher
costs in the long-run.
l Rent out the place abroad without having a
reliable local contact who can look in on the
property and arrange cleaning services
between rentals. This is particularly true if you
are arranging tenants online without meeting
them.
l Simply accept the first agency or manage-
ment fees you find. The aim might be to avoid a
lot of hassle but shopping around, even a little,
can pay dividends when fees vary as much as
10 per cent.

Wake up Iconic
here apartments
in Brighton
Last one bedroom apartment
priced at £215,000
Two bedroom apartments
priced from £265,000 to £300,000

26
mins

Brighton Gatwick

City to City
A joint venture development by Crest Nicholson and BioRegional Quintain.
 CITYA.M. 16 JULY 2010 Living | Overseas Property 23

FOCUS ON: RENTING OUT YOUR HOLIDAY HOME BY JULIET SAMUEL

GOING FULL-TIME

SUNSET VILLA,
MYKONOS, GREECE
Price: €2.2m
This clean, white villa in the FOR most Brits with second homes abroad,
town of Mykonos has five renting out the place will only generate sup-
bedrooms, six bathrooms plementary income while you slave away in
and a wide terrace overlook- the office. But for Tim Forster, a former navy
ing its large swimming pool. officer, holiday tenants became his main
It is available fully-furnished source of income when he and his wife
and boasts a beautiful sun- moved permanently to the village of Uzes in
set view over the Aegean Provence in 2001 in search of a slower pace
sea. The popular town of of life and a more flexible schedule.
Mykonos is easily accessible They had stayed in the south of France
with its active nightlife. It before and wanted to buy in a desirable area
can be leased out during the for holiday rentals but remain relatively close
high season for €9,000 per to their children studying in the UK. Being
week. priced out of the multi-million euro villas of
Contact: +30 22890 24797 the crowded Cote d’Azur, they settled on
www.beauchamp.gr Provence as providing the perfect mix of idyl-
lic countryside and commercial viability.
They invested £500,000 in a 600-year old
farmhouse with only two previous owners
and spent a further £200,000-£300,000
and six months converting each end of the
house into a total of three luxurious apart-
ments. Their prices vary from €600 to
€1,680 per week depending on the season
and the apartment.
VILLAS OR APARTMENTS, MADEIRA, PORTUGAL In order to drum up business, they built a
Price: €700,000-€900,000 website and listed the apartments on a few
commercial sites. Once visitors arrived, they
This cliff-top villa, pictured, forms part of the Palheiro Estate in Madeira, did everything possible to make them return,
Portugal, centred around an 18th century hunting lodge. The estate offers including throwing a dinner party on the first
residents use of the only private golf course on the island and the option to night. The strategy works: 50 per cent of
make use of all hotel services – as well as being conveniently close to the their tenants are now return business, a fur-
estate hotel’s excellent restaurant. Properties rented out for 10-12 weeks a ther 25 per cent come through the website
year cover their own costs, while, with 50 per cent occupancy, the annual and the remaining 25 per cent come from
return on investment should be around 2-3 per cent per cent. advertising.
Contact: www.palheiroestate.com With two apartments now let for at least
30 weeks a year (Tim’s mother lives in the
third), they combine the profits with Tim’s
navy pension to make a very comfortable
income. And they get a long break during the
off-season from November until Easter.
Tim says their success stems from the fact
that they built something that they would
want to rent for themselves: “There are thou-
sands upon thousands of people buying a
small house with an extra room and thinking
they can make a living out of that,” he says.
“You can’t. You’ve got to do it properly and
SWAHILI VILLA, LAMU, KENYA corner an end of the market – and ours is the
Price: £1.2m high end. So we put in nice furnishing and
This beautiful Swahili villa is literally right on Lamu Island’s gorgeous bedding and kitchens.” Rather than trying to
beach, with clear sand running for miles from its doorstep. It comes with target the native market that they knew little
a boat, boat house and staff accommodation. The current owner rents it about, the Forsters stuck with what they
out for a third of the year just to pay for costs, but it could easily make a knew: the desires of Brits abroad.
profit. It generates €2,600 per night for 10 people during the high season The house is now on the market for €2.2m.
and a minimum of €560 per night for two people in the low season. Contact: www.mas-bosquette.com
Contact: 020 7349 5100. www.aylesford.com

To view the new Show Apartments

call today on 0870 752 1820
90%
OVER

NOW SOLD
Work
Inspiring collection of 1 & 2 bedroom
apartments with contemporary external
designs, varied internal layouts and low
Reserve before 31st July 2010 and we will
pay for your annual train ticket to London
for a year!*
here
maintenance. Award winning One Brighton
is the most successful new development in the One Brighton, Stroudley Road,
South East of England and is located very close opposite Jurys Inn Hotel, Brighton BN1 4GQ
to the train station, perfect for commuters, as
well as being walking distance to the Open daily 10am – 5pm
North Laines, restaurants, cinema and theatre. email: onebrighton@crestnicholson.com

44
mins
56
mins

Clapham Junction London Bridge

City to City
Prices correct at time of going to press. Photograph taken at One Brighton. Train times taken from National Rail enquiries. *Incentive available on selected plots only and subject to terms and conditions. Incentive excludes London Underground.
 Lifestyle
24
What to wear in the sea
Ditch those baggy
board shorts for
something smarter,
says Timothy Barber
I
F YOU’RE heading for the beach this
summer, it doesn’t mean you have
to look like a beach bum when
you’re there. Those vast, baggy
board shorts in garish patterns might be
fine for a teenager but look perfectly
ridiculous on grown men. If you’ve got
the body for them, square-cut trunks are
the way to go. The dapperest dude ever
to hit the beach in trunks remains Burt
Lancaster in From Here to Eternity, mak-
2
5 1 Trancoso shorts by FB Collection, £115, www.fbcollection.com; 2 Print striped volley swim shorts
WATCHES WITH ELEGANCE, SIMPLICITY AND HISTORY
IWC PORTUGUESE YACHT CLUB CHRONOGRAPH
Perhaps now more than ever, clarity, simplicity and elegance are
virtues in the world of watches. The chunky, look-at-me styles
of the recent past have lost out to a cleaner, more sober
aesthetic. Which is where IWC Schafhfausen comes in –
if tastes have shifted, they’ve shifted to ground IWC
naturally calls its own. That’s particularly true of its
nautically-themed Portuguese line, re-launched this
year, and to which it’s added a sporting piece for the
first time. The Yacht Club is as streamlined and
graceful a sports watch as you’ll find, with a chrono-
graph (stopwatch) feature, luminescent indices and
hands and black rubber strap. With white or black
dials, it’ll be available in the autumn.
£7,950 www.iwc.com
CITYA.M. 16 JULY 2010
| Men’s fashion
Retro styles
and honey
ing a pair of monotone square-leg briefs
look perfectly classy (of course, it helps
tones for
stylish specs
to have the perfectly classy Deborah Kerr
draped on you as the waves wash over).
But if you’re too flabby or too skinny,
they’ll look daft. In which case, a pair of
close-fitting, not-too-long swim shorts
are the thing – sober, dashing, with a
R
touch of retro class (think the Sixties ETRO is a big theme in fashionable
surfers, Big Wednesday look). You can glasses at the moment as well as in
still have fun with patterns, though swimming trunks. Like so much
monotone shorts can look particularly else, it’s partly to do with the influ-
sharp – British brand Orlebar Brown has ence that Mad Men has had on men’s
been making waves for the last couple of
years with its natty shorts in this style. 1 style, with thick rimmed, rounded glasses
having a resurgence in both normal glass-
Alternatively, Brazilian beach brand FB es and shades. One particular theme to
Collection’s shorts – newly available in emerge is lighter coloured rims, particu-
the UK – incorporate ivory resin and bra larly honey-yellow tones and light tortoise
strap materials (really!) for something shell.
properly luxurious. Burt Lancaster Timothy Barber
would no doubt approve.
HACKETT BESPOKE
£169
www.hackett.co.uk
4
7 PERSOL
£197
www.davidclulow.com
6
OLIVER PEOPLES
£195
www.mallonandtaub.com
by Hackett, £40, www.hackett.com 3 Collection Riviera swim trunks by Gant, £55.30, www.gan-
tuk.com 4 Beagle short by Orlebar Brown, £120, www.orlebarbrown.com 5 Checked swim shorts
by Lacoste, £90, www.lacoste.co.uk 6 Bill Amberg collaboration by Orlebar Brown, £150,
www.orlebarbrown.com 7 Hibiscus print trunks by Paul Smith, £70, www.paulsmith.co.uk
POLO RALPH LAUREN
£115
CHRISTOPHER WARD C5 BATTLE OF BRITAIN www.davidclulow.com
English watch maestro Christopher Ward has made
bespoke watches for six different RAF squadrons in
the past year after members of the air force found
a liking for his work. He’s now created this
watch honouring the 70th anniversary of the
Battle of Britain. Just 1,940 pieces will be
made, a percentage of profits will going to the
RAF Benevolent Fund. It’s inspired by WWII
pilots’ watches, with the RAF crest on the dial
and hands resembling Spitfire propeller blades.
While affordable, it’s a quality item – the Swiss OLIVER PEOPLES
movement powering it is also used in prestige £199
watches by the likes of Rolex, TAG-Heuer and www.mallonandtaub.com
TB Cartier. £299, www.christopherward.com TB
CITYA.M. 16 JULY 2010 Lifestyle | Reviews 25

A thriller that’s a dream to behold

Batman director Joseph Gordon Levitt
and Leonardo
Christopher Nolan DiCaprio in Inception.

has created an
audacious classic

Film
INCEPTION
Cert: 12A
Timothy Barber hhhhh
AFTER a few years spent making Batman
films, British director Christopher Nolan
has returned with such an audacious mix-
ing of sci-fi, film noir and heist movie ele-
ments that one easily puts aside the fact
that its premise is utterly, completely
nuts.
Leonardo DiCaprio is a specialist at
invading people’s dreams via a technical
gizmo the film mercifully doesn’t waste
time trying to explain. It turns out that
invading the dreamworlds is a great way
of stealing secrets and carrying out corpo-
rate espionage, at which Leo excels. He
assembles a crack team, including Tom
Hardy, Joseph Gordon Levitt and Ellen
Page, to pull off the ultimate heist, but
will sinister events in his past destroy
them all?
The impossible-made-real dream envi-
ronments give Nolan the opportunity to
mess about with physics and special
effects like a kid in a sandpit. It’s possibly
the best and most intelligent use of CGI superb. Some audience members were
yet, as whole cities rear up in weird dimen- Theatre and Dance GHOST STORIES gasping with dread, others revelling in
sions and fights take place inside tum- Duke of York’s Theatre the demented fun of a show that’s a
bling buildings. Most importantly, like all THE PRISONER OF 2ND supremely entertaining thrill-ride.
good heist films, the tension builds bril- AVENUE Timothy Barber hhhhi
liantly throughout, and it’s all tremen- The Old Vic
dously stylish. An instant action classic. YOU only need to look at the popularity of POLITICAL MOTHER
Benjamin Street hhhhi horror films to know what pure, visceral Sadler’s Wells
entertainment can be generated from
TOY STORY 3 THIS production of Neil Simon’s 1971 shock and terror. If you ever doubted by Zoe Strimpel hhhhh
Cert: PG play will appeal to fans of Woody whether such thrills could be successfully
Allen or Larry David. Yes, it’s one of transferred to stage, Ghost Stories will A man in anonymous Medieval-style
Rhys Griffiths hhhhi those plays: lots of wisecracking prove you wrong. armour kneels as classical opera blares,
dialogue hung on a skimpy Written by League of Gentlemen scribe before driving a dagger through his heart.
IT’S FIFTEEN years on from the original plot about urban malaise in, Jeremy Dyson and Derren Brown collabo- He moans, and collapses. So begins the ter-
and best CGI animated film and Andy, where else, New York – rator Andy Nyman, it displays the pedi- rifyingly intense new show from Israeli
the kid, has grown up. By mistake his and, yes, it’s a bit mean- gree of both – the creepy, twisted humour choreographer Hofesh Schecter.
familiar toys get donated to a day care dering. of the League, and the trickery, double- Men in shabby shirts and braces dance
centre instead of stored in the attic as But it would be churl- crossing and finale-building brilliance of in fevered, jerky groups, gesturing
intended. On first appearances it’s a ver- ish not to be swept up in Brown’s live shows. But the heart-pound- towards the heavens, reminding us of
itable utopia, with a bunch of welcom- the comic brio of Jeff Goldblum (right), ing scares are all of the show’s own Hasidic Jewish dancing. Then people in
ing toys and kids who want to play with playing insomniac Mel Edison, cowed by making, and a whole lot of fiendish military scrubs emerge, towering men
them. Of course, things quickly turn the corporate rat-race and in constant fun. with electric guitars and drums strike up
sour and Woody, Buzz and co are forced fear of unemployment (timely, you see) Nyman is parasycologist and an ear-splitting riff that recurs until you
to plan a Great Escape-style exit. and Mercedes Ruehl, as his loyal but supernatural debunker Prof can’t take it any more, and the action
There are some amusing new toy faces acid-tongued wife Edna. Goldblum zips Goodman, who introduces a trio becomes a stunning rendering of what
– best among them is Ken, who’s in a and twists across the stage like Wile E of spine-chilling stories that get appears to be a cycle of mass electrocu-
“difficult” relationship with Barbie. Coyote in a dressing gown, and Ruehl's played out. To reveal more would be tion, bewilderment, slow death, sex, and
However Toy Story 3 succeeds because, performance is the very definition of to spoil, but suffice to say there’s rebirth. What is the “political mother”
rather than being a mere cash-cow bone-dry comic delivery. The sheer rather more than that going on. and what does it do to us? Your brain
sequel, it’s an essential final chapter delight of seeing two masters of their Thanks to ingenious effects and pitch- can’t stop working throughout, and your
that leaves a lump in the throat for craft firing razor-sharp one-liners at perfect direction, the shocks when they eyes and ears are overwhelmed. A
every burst of laughter and excitement. each other is hard to beat. come – and they come regularly – are thrilling show.

ALSO OUT THIS WEEKEND

ENTERTAINMENT

FILM DVD MUSIC GAMES

BLUEBEARD Austere French version of the classic
medieval tale by auteur Claire Denis.
THE CONCERT Another French drama, set in the
world of classical music and orchestras.
RAPT Yet another French film, this one a kidnap
thriller.
GREEN ZONE Matt Damon stars in this Iraq war
thriller from Bourne director Paul Greengrass.
LOURDES Acclaimed Norwegian film about the
French town and supposed healing destination.
LEAP YEAR Utterly rotten romantic comedy with
Matthew Goode and Amy Adams.
ELIZA DOOLITTLE Debut eponymous album from
latest to pick up the Lily Allen baton.
DARK NIGHT OF THE SOUL Superb collaboration
between producer Dangermouse and Sparklehorse.
THE CORAL Eclectic Scouse band return with their
fifth album, Butterfly House.
TOY STORY 3: THE VIDEO GAME (DS, PS3, PSP,
WII, PC, X360, MAC OSX) Film tie-in, obviously.
PEARL HARBOR TRILOGY - 1941: RED SUN RISING
(WII) Air combat actioner.
LEAGUE OF LEGENDS: SEASON ONE (PC) Role-play-
ing game for those who’ve tired of Warcraft.
 26 Lifestyle | TV& Games CITYA.M. 16 JULY 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm DIY SOS; BBC News
8pm EastEnders
8.30pm QI
9pm My Family
9.30pm The Old Guys
10pm BBC News
10.25pm Regional News
10.35pm CHOICE Friday Night
with Jonathan Ross
11.35pm The National Lottery
Draws 11.45pm FILM The
Rainmaker: Legal drama, starring
Matt Damon. 1997; Weatherview
1.55am Sign Zone: The Great Rift:
Africa’s Wild Heart 2.55am Monty
Halls’ Great Hebridean Escape
3.55am-6am BBC News
9am Live Golf: The Open
Championship: The second day’s
play on the Old Course at St
Andrews in Fife, Scotland.
8pm CHOICE First Night of the
BBC Proms
9.30pm Shooting Stars:
Comedy quiz, with guests
Example, Si King, Camilla
Dallerup and Linda Henry.
10pm How Not to Live Your
Life: Don starts dating an older
woman. Dan Clark stars.
10.30pm Newsnight: Weather
11.05pm T in the Park
Highlights
1.05am FILM Like Minds: Crime
thriller, starring Toni Collette. 2006.
2.45am-6am Close
6pm London Tonight
6.30pm ITV News
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away
6.25pm Don’t Stop Believers
TV PICK
7pm Emmerdale 7pm Channel 4 News 6.30pm Live from Studio Five:
7.30pm Coronation Street 7.25pm 4thought.tv Topical reports.
8pm Dickinson’s Real Deal 7.30pm Girls on the Pull 7.30pm Zoo Days; Five News
8.30pm Coronation Street 8pm A Place in the Sun: Home Update
9pm Doc Martin: Despite the or Away 8pm Nature Shock; Five News
doctor’s attitude, Louisa applies 9pm Big Brother at 9
for a job at the school. 10pm CHOICE The IT Crowd 9pm The Mentalist
10pm ITV News at Ten 10.35pm Big Brother 10pm CSI: NY
10.30pm London News 11.05pm Stand Up for the Week 10.55pm Grey’s Anatomy FRIDAY NIGHT WITH JONATHAN
10.35pm FILM Dragnet: Spoof 11.55pm Inception: 4Movie ROSS BBC1, 10.35PM
11.55pm Cops in Crisis
crime drama, starring Dan Premiere Special 12.15am SuperCasino Final edition of the chat show. The host
Aykroyd and Tom Hanks. 1987. 12.25am Music on 4: Klaxons: 4.05am Motorsport Mundial is joined by Los Angeles Galaxy
12.30am The Zone; ITV News Video Exclusive 4.30am House Doctor 4.55am footballer David Beckham and actors
Headlines 12.35am The Noisettes Rough Guide to Bang for Your Buck Jackie Chan and Mickey Rourke.
2.30am FILM Calamity Jane: 1.05am Big Brother: Live 3.35am 5.10am The New Tomorrow
Western musical, starring Doris Day. This Week’s 4Music Top 20 5.35am-6am Michaela’s Wild
1953. 4.15am-5.05am Touching Evil 5.25am-6.10am Countdown Challenge

SKY SPORTS 1 BRITISH EUROSPORT 12am CSI: Crime Scene 11.05pm Big Brother’s Big 4.40am Unsolved History
SATELLITE & CABLE

7pm World Sport: Round-up of
events. 7.30pm Live Super
League 10pm Live Friday Fight
Night: Matthew Hatton v Yuriy
Nuzhnenko. 12am Football’s
Greatest 12.30am Super
League 2am Friday Fight Night
4am-6am Twenty20 Cup
Cricket
SKY SPORTS 2
7pm Live Twenty20 Cup
Cricket 10.30pm Test Cricket
11.30pm NFL: Total Access
12.30am Twenty20 Cup
Cricket 2.30am Test Cricket
3.30am Super League 5am
Ocean Ride 5.30am-6am
Football’s Greatest
SKY SPORTS 3
6pm Live Rugby Union 8pm
Tight Lines 9pm Live PGA Tour
Golf 12am Golfing World 1am
Tight Lines 2am Rugby Union
4am NFL: Total Access 5am-
6am Tight Lines
7pm MotoGP 8.30pm
Strongest Man 9.30pm
Cycling: Tour de France: Stage
12 from Bourg-de-Peage to
Mende. 10.30pm Planet
Armstrong: A profile of Lance
Armstrong. 10.35pm Rallying
11.05pm Women’s Under-20s
World Cup Football 11.35pm
Cycling: Tour de France
12.35am-12.40am Planet
Armstrong
ESPN
7.15pm Live Premiership Rugby
Sevens Series 10.30pm Golf:
The Open Championship
11.30pm The Ultimate Fighter
12.30am ICC Cricket World
1am Friday Night Fights 3am-
5am Bassmaster Elite Series
LIVING
7pm Four Weddings 8pm
Passport Patrol 9pm Criminal
Minds 10pm CSI: Miami
11pm Criminal Minds
Investigation 2am So You
Think You Can Dance 3am The
Fresh Prince of Bel-Air 3.50am
Maury 4.40am Nothing to
Declare 5.30am-6am Home
Shopping
BBC THREE
7pm Live Athletics 9pm Usain
Bolt: The Fastest Man Who Has
Ever Lived 10pm EastEnders
10.30pm Big Meets Bigger
11.30pm Family Guy 12.15am
Lee Nelson’s Well Good Show
12.45am Mongrels 1.15am
Big Meets Bigger 2.15am
Wags, Kids and World Cup
Dreams 3.15am Usain Bolt:
The Fastest Man Who Has
Ever Lived 4.15am Lee Nelson’s
Well Good Show 4.45am-
5.15am Mongrels
E4
7pm Hollyoaks 7.30pm Friends
9pm Supernanny 10pm
Supersize vs Superskinny
Mouth 12.10am-6am Big 5.30am-6am How Does
Brother: Live That Work?
HISTORY DISCOVERY HOME &
7pm Just Another Day 8pm HEALTH
Richard Hammond and the 7pm Baby Whisperer 8pm 10 FIRST NIGHT OF THE BBC PROMS
Holy Grail 9pm Tsunami: Years Younger 9pm 18 Kids BBC2, 8PM
Anatomy of a Disaster 10pm and Counting 10pm Little Coverage from the Royal Albert Hall,
The Cosmos: A Beginner’s People, Big World 11pm introduced by Katie Derham. Mahler's
Guide 11pm Goering: A Career Mystery Diagnosis 12am 18 spectacular Symphony of a Thousand
12am Richard Hammond and Kids and Counting 1am Little launches the 2010 BBC Proms season.
the Holy Grail 1am Just People, Big World 2am
Another Day 2am Egypt 3am Mystery Diagnosis 3am 10
Pawn Stars 4am-5am Years Younger 4am Baby Tales
Decoding the Past 5am-6am Baby Whisperer
DISCOVERY SKY1
8pm How Do They Do It? 8pm Missing Children: Lorraine
8.30pm How It’s Made 9pm Kelly Investigates 9pm Bones
The Children Who Cheated the 11pm Lie to Me 12am Inside:
Nazis 10pm How the Universe Alaska’s Toughest Prison 1am
Works 11pm Day After D-Day Road Wars 1.50am Oops TV THE IT CROWD
12am Deadliest Catch 1am 2.40am Road Wars 3.30am CHANNEL 4, 10PM
Bear Grylls: Born Survivor 2am Shear Genius 4.20am Tim Roy becomes obsessed with his latest
Chris Barrie’s Massive Speed Gunn’s Guide to Style 5.10am- girlfriend’s sad family history, while Jen
3am Weaponology 3.50am 6am Are You Smarter Than a tells a lie to get attention. With Chris
Human Body: Ultimate Machine 10 Year Old? O’Dowd and Katherine Parkinson.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
12 38 7 34 4 29 15 
20 12 10
14  
31 8
Place the numbers from 1 to 9 in each empty cell so that each 17 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 10 23
6 13
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 6 21
  
above or to the left of it. 35
You can only use the digits 1-9 19 19 
17 22 24
and you must not use the 27 13  
same digit twice in a block. 16
     The same digit may occur 8 16 
11 26 22
    more than once in a row or
column, but it must be in a
39
19
14
  
18 30
   separate block.
10 16
10 24
    3 5 21
 

   ACROSS DOWN
1 Fragrance (5) 2 Repent (3)
   
     WORDWHEEL E I
4
8
Wharves (5)
Allows (4)
3 Fail to detonate (7)
5 Keyboard
instrument (7)
Using only the letters in the Wordwheel, you have 9 Domesticated llama (6)
6 Extra wheel (5,4)
ten minutes to find as many words as possible,
T G 10 Hairy coat of a
7 Confused multitude
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I 11
mammal (3)
Decree ___, stage in of things (5-4)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
K R 13
divorce proceedings (4)
Have supper (4)
8 County town of
Lancashire (9)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
N N 14 Legal guardian (7) 12 Bizarre (7)
15 Town and port in 13 Expressionless (7)
QUICK CROSSWORD 1 2 5 2 7 8 6 20 Placed (3)
& 5 $ : / 5 ( % 8 6
3 4 8 7 6 9 7 1 SUDOKU          16
north-west Israel (4)
Land force of a nation (4)
3 9 8 5 4 9         
, 5 $ , $ ,
7 1 3 8 6 9 17 Conclude (3)
9 $ & $ 7 ( 6 / ( '         
, ( . 7 / 9 6 7 8 2 1 5 3
         18 Game associated with
& $ / < ; 6 3 , 7 ( 2 1 6 5
         Wimbledon (6)
, (
* 5 $ 6 6
$ ,
6 7 2 & .
2 4 1
3 8 6
3 8 9
3
5
4
7
1
WORDWHEEL          19 Tubular wind
8 ) 3 ( 1
/ , 7 5 ( 3 / , & $ 9 4 6 4 2 1 The nine-letter word          instrument (4)
        
3 ( , , 1 9 9 7 8 6 9 7 3 5
was BENCHMARK 21 Female ruff (5)
6 + 5 8 * $ 1 1 , ( 8 6 3 4 6 2 1         
22 Bring together (5)
 City Focus
28
The rising star of online retail
The founder of my-wardrobe.com
is a throroughly modern woman,
as Kathleen Brooks found out
Y
OU’VE just given birth and one of the
first things your husband asks you to
do is to sign a cheque for your new
boutique (Powder, based in Crouch
End. ) That was Sarah Curran’s experience
of the first hours of motherhood to son
Jake, now seven-years old.
It is no surprise that Curran says fashion
is her life. The former boutique owner
moved her business online in 2007, creating
my-wardrobe.com, which sells designer
women’s and menswear. “I wanted an
accessible entry-point, so you can find dress-
es in the £400-£500 price range.”
So what are the differences between own-
ing a high street shop and having an online
business? Firstly, access to finance, as
Curran, who never went to university,
found out. She won a notoriously hard-to-
get government-backed small firm loan
guarantee for £100,000 when she started
Powder, but banks were not as forthcoming
with my-wardrobe.com. “Banks just don’t
get online, they saw it as too risky.”
She started the business with £750,000 of
her own money – the proceeds of selling her
house in France – and has attracted invest-
ment of more than £4m. Curran remains
the majority shareholder. To achieve her
dream of making my-wardrobe.com the
number one mid-priced online designer
retailer, she knew that she had to go down
the institutional route. Last month
Balderton Capital invested £6m in the busi-
ness. “They said it was the fastest deal they
had ever done,” beams Curran, clearly
happy about the possibilities this offers. “It
Mortgage overhaul
hurts entrepreneurs
More time and money will be required to get a
loan in the future, writes Kathleen Brooks
N
EWS that the Financial Services
Authority (FSA) plans to overhaul
the mortgage market may have left
some entrepreneurs a little uneasy.
From now on, to get a mortgage you need
to pass an “affordability” check and self-cer-
tified mortgages will be banned.
Business groups were quick to state the
drawbacks of these plans: “Business owners
who have to self-certify their mortgages
will be penalised personally for their deci-
sion to become entrepreneurs,” says Phil
McCabe, spokesman for the Forum of
Private Business. And indeed it appears
that the playing field is far from level for
entrepreneurs when it comes to gaining
access to mortgages.
Neil Brooks, an independent mortgage
advisor and founder of Coffey Brooks
Financial Services Limited, says that very
few self-cert products have been available
since the financial crisis and the self-
employed have had to deal with tighter
home-lending conditions. “Some lenders
now require two years’ worth of signed
accounts,” says Brooks.
He adds that unlike applicants who are
| Going it Alone
Sarah Curran, boss of
my-wardrobe.com
Picture: Micha
Theiner/ CITY A.M
was frustrating this season, we sold out of
our best sellers so quickly. For example the
Mulberry Alexa handbag sold out in an
hour.” This investment will allow Curran to
delve deeper into brands and add to her
buying power.
The second difference is growth. On
Wednesday Asos, the online equivalent of a
high street retailer, revealed revenues had
increased by 48 per cent in the three
months to June. Likewise, Net-a-Porter.com
was recently sold to Richemont, the luxury
goods conglomerate, netting its founder
Natalie Massenet a cool £50m. My-
wardrobe.com is perceived to be worth
£50m and is set to increase turnover by 100
per cent this year.
Working and being a mother has never
proved a problem. “I think that I keep get-
ting more ambitious. I realised that I
wanted a certain standard of life and I
didn’t want to just rely on my husband.”
employed by a company and have regular
pay cheques coming in, the mortgage
granted to a self-employed applicant is
based on the net profit they make – their
income after expenses. This contrasts with
other applicants whose expenses are not
taken into account. “This lowers the
income multiple that the self-employed
person can use to get a mortgage, and in
this sense they are at a disadvantage.”
So what can entrepreneurs do to get a
loan? Brooks advises that they go to a char-
tered accountant to get their income certi-
fied before trying to look for a mortgage.
For start-ups without a full year’s worth of
accounts a mortgage is not impossible.
Some lenders will take into consideration
accountants’ references and also earnings
projections, certified of course.
But this makes the whole process more
onerous for entrepreneurs, says McCabe:
“This just makes their lives more difficult
since there is a cost and time implication.”
But will it actually put people off becom-
ing entrepreneurs in the first place? Simon
Dolan, a serial entrepreneur and founder
of SJD Accountancy, says no. “The sort of
CITYA.M. 16 JULY 2010
MARKETING
Q.
I am starting a busi-
ness and I need to
Q&A
think about marketing but I don’t
know where to start. Can you offer me
some advice?
A.
This is a common problem. Most
people will have heard of marketing,
but they don’t know quite what it is.
Mark Brewerton, the managing director of
Total Marketing Solutions, says that the
common misconception is that marketing is
only about public relations, websites and
advertising. In fact, this is only one element
of it. “Marketing is far more fundamental
than that, it’s about how a company achieves
its profits through developing a product and
selling it to the marketplace.” Paul Baines,
director of the strategic marketing course at
Cranfield Management School, says that
marketing is more about hard analysis than
designing billboards: “You have to analyse
the nature of the market that you want to
sell into. You need to ask yourself, how is it
changing and what are your competitors
doing? You need to know exactly what
resources you have to work with and then
So how glamorous is Curran? Well, when marry all of these things together to differ-
we meet she is wearing green khaki harem entiate yourself in the marketplace.”
pants and a black vest-top with sky-high
Q.
heels. The only hint of a label is a Hermes Can you suggest a strategy that I
belt. “My style is simple,” says Curran, who could use to market my business?
is half French. It was her “incredibly glam-
orous” aunt who ignited her love of fashion.
A.
“When I was a child I would just stare at her Baines says there are four things you
for hours. We would go to the beach and need to think about. Firstly, research.
even the way she rubbed in tanning lotion Make sure you understand the
was glamorous.” nature of the market and get as much detail
as possible about the customer you are try-
CV | SARAH CURRAN ing to attract. Next, check out your competi-
tors. Find out how much they charge, what
Age: 37 Persuasion, by Robert B. Cialdini they offer and how they differentiate them-
Lives: Leicestershire with hus- Favourite brands: Malene Birger. selves. Only then should you think about how
to develop a value proposition. “You have to
band Andrew and son Jake Styles for winter: shearling understand what your customer wants. So
Car you drive: Porsche Cayenne detail on boots, coats and bags for example, a company like Ryanair prides
Reading: Psychology of and leather trousers. itself on its no-frills concept and that drives
its marketing campaign. In contrast, Vertu,
the diamond-encrusted mobile phone hand-
set maker, is at the other end of the scale,”
says Baines. The most important thing to
remember is that value is not about whether
or not something is cheap or expensive, but
whether your customers will find your serv-
ice or product valuable to them. Once you
have done that then the final stage is imple-
mentation. “Getting the word out is extreme-
ly important, especially for small businesses,
and now there are many low cost ways to do
this,” adds Baines. The internet and social
media have become incredibly important as
a marketing tool and all entrepreneurs
should be aware of their power. If your mes-
sage goes viral it can have a massive impact
on sales. For example, Baines notes that the
founder of Blendtec, a maker of blenders,
managed to grow sales by 300 per cent
through its video willitblend.com. The
blender is extremely powerful and the video
shows it blending golf balls and other inedi-
ble objects to test its strength. The video is
now cult viewing on YouTube. Brewerton
says that entrepreneurs should never forget
their greatest marketing resource: their cus-
tomers. “They are great potential referrals so
cherish and nurture them. After all, advocacy
– both positive and negative – is extremely
powerful.” Apple is finding this out to its
peril after problems were detected with the
iPhone 4.
Kathleen Brooks
Mortgage person put off from becoming an entrepre-
applications are neur because they won’t be able to get the
getting harder for house they want is not the type of person to
entrepreneurs start their own business anyway,” he says.
You can’t keep an entrepreneurial spirit
Picture: GETTY down. However, entrepreneurs lives’ just
got that little bit harder.
 Sport
29
MCILROY COMES WITHIN A
WHISKER OF RECORD
YOUNGSTER SETS OPEN PACE WITH
SCINTILLATING 63: PAGE 32

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

Temple Meads looks Super

bet for Newbury’s Sprint
R
ICHARD HANNON has had a
season to remember and he
will be going for an unprece-
dented eighth win in tomor-
row’s Weatherbys Super Sprint at
Newbury (3.20pm).
He has entered six this year and the
pick of those looks to be Ryan Moore’s
mount Reckless Reward. The son of
Choisir finished an excellent second
in the Norfolk Stakes and has recently
been sold to race in Hong Kong.
He is housed in the same No2 stall
as last year’s winner Monsieur
Chevalier, but I get the impression he’s
a six furlong horse. He also has to
carry 9st and only one winner in the
past decade has carried such a burden.
The rest of the Hannon mob are dif-
ficult to weigh up, but I don’t think
there are any superstars in there. The
one to be on is Ed McMahon’s TEMPLE
MEADS, who showed exceptional
speed on his debut at Newmarket to
win a hot five-furlong maiden.
He races off just 8st 6lb tomorrow
and even though he had a slight set-
back before Ascot, he could be a little
bit special. Coming out of stall one
(two of the last six winners have come
from there), he should get a perfect
lead from Reckless Reward to pounce
in the final furlong.
Henry Candy had a slightly disap-
pointing Royal Ascot, but his
MARKAB ran a stormer to finish sec-
ond in the King’s Stand. Equiano has
since franked the form and the step
back up to six furlongs in the Group 3
Shadwell Stakes (2.15pm) will suit
him. Candy’s horses are running into
some form and this fellow should
have too much class for last year’s
winner High Standing.
The Queen likes to run her horses
at Newbury and she looks to have a
decent chance of a winner in the list-
ed Shadwell Beech House Stud Stakes
with KINGDOM OF FIFE. The Sir
Michael Stoute-trained five-year-old
bounced back to form in the
Wolferton Handicap at Ascot last
time and should take all the beating.
David Lanigan is a trainer going
POINTERS...
MARKAB
2.15pm Newbury (Sat)
TEMPLE MEADS
3.20pm Newbury (Sat)
KINGDOM OF FIFE
3.55pm Newbury (Sat)
MEEZNAH Temple Meads in action. Picture: PA
3.40pm Curragh (Sun)
places and MEEZNAH can give him a Finally, don’t forget to book your
first Classic victory in the Irish Oaks at tickets for Sandown’s VIP City night
the Curragh on Sunday. She ran a on Wednesday 28 July. Champagne
stormer in the English version to fin- reception costs just £25. Go to
ish a neck second to Snow Fairy and sandown.co.uk/cityoffer and use the
compensation awaits in Ireland. code: SPCITY10.

Webber clears the air with

Red Bull after radio rant
FORMULA 1
2010
BY JON COUCH
MARK WEBBER has finally cleared
the air with his Red Bull team after
insisting his in-car radio blast at
Red Bull chiefs at Sunday’s British
Grand Prix was an attempt at
“Australian sarcasm”.
Webber accused his team of
favouring colleague Sebastian
Vettel after Red Bull controversially
took off his front wing and handed
it to the German before qualifying.
Webber won the race and then
couldn’t resist a dig at team princi-
pal Christian Horner, commenting
over the radio: “Not bad for a No2
driver”.
The 33-year-old later added he
would not have signed an extend-
ed contract with the Milton
Keynes-based team had he known
Vettel was the No1 driver, thus
prompting Horner to order clear-
the-air talks at the team’s factory
during preparation for next week-
end’s German Grand Prix.
Indeed, both parties emerged
sporting a happy front yesterday
with Webber quick to play down
any suggestion of a rift with Vettel.
“We’ve debriefed and have
cleared the air,” Webber said. “The
respect within the team extends to
the drivers. Seb and I are not ene-
mies. We’re just two drivers push-
ing hard.”
Of his remark, he added: “Of
course things get said in the heat
of the moment which, with hind-
sight goggles on, probably should-
n’t have been said.
“Formula One is a highly
charged and fiercely competitive
arena where emotions and adrena-
line do run high from time to time.
“My comment on the radio after
the race was an example of
Australian sarcasm – either at its
best or worst depending on how
you choose to take it.”

SPORT | IN BRIEF Cavendish wins

Findlay ban overturned
RACING: Cheltenham Gold Cup-win-
ning owner Harry Findlay has had his
six-month disqualification from horse
racing overturned on appeal and
reduced to a £4,500 fine.
Professional gambler Findlay, for-
mer part-owner of Gold Cup king
Rossi back for German GP
MOTOGP: Valentino Rossi will make a
stage amid
shock comeback at this weekend’s
German Grand Prix – less than six
weeks after fracturing his right shin.
headbutt row
The Italian seven-time champion
was expected to be out for up to six
months after suffering the injury at
▲

Denman, admitted betting on one of
his horses, Gullible Gordon, to lose in
races at Exeter and Chepstow.
But the British Horseracing
Authority disciplinary panel yesterday
agreed that the “integrity of the race
of the horse was not in jeopardy”.
Tail put Aussies in charge
CRICKET: Resilient knocks from tail-
enders Doug Bollinger (56no) and Tim
Payne (47) handed Pakistan a daunt-
ing victory target of 440 to win the
first Test at Lord’s.
The Aussies were left reeling on
208-8 at one stage before the pair
took them to 334, despite Umar Gul’s
4-61. Pakistan ended the day on 114-1.
Mugello on 5 June.
Rossi’s Fiat Yamaha team con-
firmed: “He was examined by the chief
medical officer for this event, Dr
Huber Fischer, who found him fit
enough to compete this weekend.”
Sheridan on road to recovery
RUGBY UNION: Sale and England
prop Andrew Sheridan will make his
long-awaited return from injury next
month after nine months out with a
dislocated shoulder.
The 30-year-old underwent two
operations to repair damage on both
shoulders following a challenge play-
ing for the Sharks against Cardiff
Blues last October.
CYCLING
BY JON COUCH
BRITAIN’S Mark Cavendish sprint-
ed to a third success in this year’s
Tour de France – but only after a
headbutt row which saw team-
mate Mark Renshaw expelled from
the race.
The HTC rider outsprinted
Alessandro Petacchi to the line after
Australian team-mate Renshaw
butted leadout rival Julian Dean in
the run-in to create the ideal line for
him to hit the front.
Technical director Jean-Francois
Pescheux said: “This is cycling, not
fighting. Everybody could have
ended up on their backs.”
 30 Sport CITYA.M. 16 JULY 2010

Results
CRICKET
FIRST ONE DAY INTERNATIONAL: Bangladesh v Ireland
(Belfast); Bangladesh 234-9 ( Junaed Siddique 100, Shakib Al
It’s Red Bulls
not Les Bleus
Hasan 50) v Ireland 235-3 (W T S Porterfield 108, P R Stirling
52). Ireland beat Bangladesh by 7 wickets.
FIRST TEST MATCH: Australia v Pakistan (Lord’s); Australia
253 (S M Katich 80, M E K Hussey 56no, Mohammad Aamer
4-72) and 334 (S M Katich 83, B W Hilfenhaus 56no, Umar
Gul 4-61) v Pakistan 148 (Salman Butt 63, S R Watson 5-40)
and 114-1 (37.0 overs).

for Henry
FRIENDS PROVIDENT T20 - NORTH DIVISION:
Northamptonshire v Lancashire (Northampton);
Northamptonshire 170-4 (R A White 80) v Lancashire 159-
6 . Northamptonshire (2pts) beat Lancashire by 11 runs.
Leicestershire v Nottinghamshire (Trent Bridge);
Leicestershire 145-5 (A B McDonald 58no) v
Nottinghamshire 107-9 (A B McDonald 5-13). Leicestershire
(2pts) beat Nottinghamshire by 23 runs.
SOUTH DIVISION: Gloucestershire v Essex (Chelmsford); with the Red Bulls after being granted
▲

Gloucestershire 162-5 v Essex 167-3 (A N Cook 73, R S

FOOTBALL
BY FRANK DALLERES a free transfer by Barcelona, is the
Bopara 59). Essex (2pts) beat Gloucestershire by 7 wickets.
first global superstar to arrive in the
THIRD WOMEN’S ONE DAY INTERNATIONAL: New FRANCE striker Thierry Henry has MLS since Beckham in 2007.
Zealand v England (Derby); New Zealand 220-9 (A L
Watkins 68, J L Gunn 5-31) v England 223-4 (S J S J Taylor
called time on his international But while the former England skip-
64). England beat New Zealand by 6 wickets. career after being unveiled as a New per has compromised his Californian
CYCLING York Red Bulls player. commitments by keeping his interna-
And the striker, 32, promised to be tional career alive, and attracted
TOUR DE FRANCE.—Stage 11 (Sisteron - Bourg-les-Valence,
184.5km): 1 M Cavendish (GB) Team HTC - Columbia 4hrs
a better servant to Major League much criticism in the process, Henry
42mins 29secs; 2 A Petacchi (Italy) Lampre-Farnese Vini; 3 Soccer than David Beckham by stay- has vowed to be more dedicated.
T Farrar (US) Garmin - Transitions, both same time. Others: ing “fully committed” to his club. “I always want to be here [in New
17 N Roche (Rep of Ireland) AG2R La Mondiale; 22 D Lloyd Henry, who won 123 caps and York] 100 per cent and am fully com-
(GB) Cervelo Test Team; 55 D Millar (GB) Garmin - scored 51 goals, said he decided to mitted to this cause and the organisa-
Transitions; 84 S Cummings (GB) Sky Professional Cycling retire from the national team before tion,” added the Gunners’ all-time top
Team; 97 B Wiggins (GB) Sky Professional Cycling Team; 101
G Thomas (GB) Sky Professional Cycling Team all same time; the World Cup, in which Les Bleus suf- scorer.
126 J Hunt (GB) Cervelo Test Team +1:44. Overall: 1 A fered a humiliating first-round exit. One of Henry’s last acts in a France
Schleck (Luxembourg) Team Saxo Bank 53h 43m 25s; 2 A “I couldn’t announce it before shirt was his most infamous – the
Contador Velasco (Spain) Astana +0:41; 3 S Sanchez because that’s the not type of thing handball in November’s play-off that
Gonzalez (Spain) Euskaltel - Euskadi +2:45. Others: 13 Roche you announce before a World Cup,” helped deny the Republic of Ireland a
+6:23; 17 Wiggins +7:18; 65 Thomas +51:08; 139 Cummings said the former Arsenal captain, who place at the World Cup – and he con-
+1:32:02; 143 Millar +1:34:41; 145 Cavendish +1:35:58; 153
Lloyd +1:41:28; 158 Hunt +1:43:41. made his final France appearance in a ceded he had not heard the last of it.
2-1 defeat to the tournament hosts. “I think they [Irish fans] will still
RUGBY LEAGUE “That was my last game against have something, yeah, but that’s the
ENGAGE SUPER LEAGUE South Africa. Ironically, my first game game,” he said. “It was kind of weird,
Hull....................................................20 Hull K R ......................................16 for the national team was also against but that’s the way the game is. I
South Africa.” already talked a lot about what hap-
SPORTS EDITOR JON COUCH Henry, who is thought to have pened that day, and I made it clear it
email sport@cityam.com signed a four-and-a-half-year contract wasn’t intentional.” Henry decided to end his France career before the World Cup. Picture: ACTION IMAGES
CITYA.M. 16 JULY 2010 Sport | Golf | The Open 31

150TH OPEN CHAMPIONSHIP | FIRST ROUND SCORES IN FULL

63: McIlroy (NIR)
65: Oosthuizen (RSA)
66: Coltart (SCO), Daly
(USA), Dredge WAL),
Hanson (SWE), Tiley (ENG)
67: Andersson Hed (SWE),
Canizares (ESP), Glover
(USA), O'Hair (USA), Siem
(GER), Watney (USA),
Westwood (ENG), Woods
(USA), Yang (KOR)
68: Barnes (USA), Fisher
(ENG), Immelman (RSA),
Ishikawa (JPN), Jeong
(KOR), Lowry (IRL),
McGowan (ENG), Rock
(ENG), Senden (AUS), Singh
(FIJ), Stenson (SWE),
Villegas (COL), Wilson (ENG)
69: Allenby (AUS), Casey
(ENG), Chia (MAS), Dyson
(ENG), Els (RSA), Garrido
(ESP), Goosen (RSA),
Johnson (USA), Karlsson
(SWE), Kaymer (GER),
Lawrie (SCO), Mahan (USA),
Marino (USA), Molinari
(ITA), O'Meara (USA), Van
Pelt (USA)
70: Bjorn (DEN),
Calcavecchia (USA), Cink
Pace-setter Daly has recovered from personal problems and injury. Picture: PA
(USA), Clarke (NIR), Goya
(ARG) Holmes (USA), Kim
(KOR), Moore (USA), Na
(USA), Rose (ENG), Scotland
(ENG), Taniguchi (JPN),
Wood (ENG)
71: Aiken (RSA), Chun (KOR),
Clark (RSA), Day (AUS),
Gallacher (SCO), Garcia
(ESP), Lehman (USA),
McDowell (NIR), Miyase
(JPN), Perry (USA), Petrovic
(USA), Poulter (ENG),
Schwartzel (RSA), Slocum
(USA), Stricker (USA)
72: An (KOR), Crane (USA),
Faldo (ENG), Fernandez-
Castano (ESP), Gay (USA),
Haastrup (DEN), Hamilton
(USA), Hansen (DEN), Ikeda
(JPN), Jimenez (ESP),
Johnson (USA), Kjeldsen
(DEN), Kuchar (USA),
Maybin (NIR), Moriarty
(IRL), Noh (KOR), Ogilvy
(AUS), Pernice Jr (USA),
Points (USA), Quiros (ESP),
Scott (AUS), Sim (AUS),
Verplank (USA)
73: Abbott (ENG), Cabrera
(ARG), Davies (WAL), Donald
(ENG), Dufner (USA), Haas
(USA), Harrington (IRL),
Havret (FRA), Johnson
(SWE), Leishman (AUS),
Levet (FRA), Love III (USA),
Mickelson (USA), Noren
(SWE), Overton (USA),
Roberts (USA), Senior
(AUS), Watson (USA), Weir
(CAN), Whitehouse (ENG)
74: Fichardt (RSA), Goggin
(AUS), Goydos (USA), Khan
(ENG), Laird (SCO), Molinari
(ITA), Montgomerie (SCO),
Oda (JPN), Sonoda (JPN),
Watson (USA)
75: Archer (ENG), Barnes
(AUS), Bohn (USA), Cunliffe
(RSA), Fujita (JPN), Jaidee
(THA), Lyle (SCO)
76: Choi (KOR), Curtis
(USA), Hugo (RSA), Leonard
(USA), Oda (JPN), Park
(KOR), Percy (AUS), Streeter
(ENG)
77: Duval (USA), Furyk
(USA), Hansen (DEN),
Miyamoto (JPN)
78: Day (USA), Hatton
(ENG), McNeill (USA)
79: Clark (ENG), Edwards
(WAL), Fowler (USA), Kelly
(USA)
80: Dubuisson (FRA), Lara
(SPA)
81: Canter (ENG), Porter
(AUS)

Goodbye Wild Thing Experience the thrill

and hello Mild Thing
THE OPEN
CHAMPIONSHIP
BY JON COUCH
JOHN DALY rolled back the years
with a stunning 66 to continue his
love affair with St Andrews.
The 44-year-old won the Open
here 15 years ago, showed he’s lost
none of his touch around the
famous links with a stunning open-
ing round which consisted of seven
birdies and just the one bogey on
the daunting 17th.
Daly made the most of the
benign early conditions, but, in
truth, it could’ve got even better as
the American saw no fewer than
four birdie putts lip out.
Since that famous triumph in
1995, the ‘Wild Thing’ has missed
the cut in eight of his 12 Open
appearances as he battled alcohol
and gambling problems.
But, after a further spell out with
rib and hip injuries, Daly admits he
is finally back on his game and is
looking at challenging for a third
Major title.
“I’m not too disappointed but I
hit four putts coming in which I
of Horseracing!
Sandown Park • Wednesday, 28th July 2010
thought I had made,” he said. “I left
some out there but I’m pleased
with the way I am driving the ball.
“This is only the seventh or
eighth tournament in three-and-a-
half years I’ve been healthy to play.
It has been really tough because of
the rib and hip, but I’m starting to
get some confidence in my game
again.”
Daly’s playing partner Andrew
Coltart also benefited from the early
start, firing a six-under-par total in
his first Open Championship since
2002 after coming through qualify-
ing at Sunningdale.
Enjoy a VIP experience in one of Sandown Park’s finest

Westwood shines Unfortunate hospitality suites, watch a fantastic evening’s racing and
find out more about racehorse ownership.

Poulter’s green
in wind and rain
For just £25, this special offer includes:

with envy • Entry to the racecourse

• Exclusive suite for the evening
• Champagne reception courtesy of Lanson
• In-suite bar and tote betting facilities
OPEN CHAMPIONSHIP
▲

golf,” said Westwood.

▲

OPEN CHAMPIONSHIP
BY FRANK DALLERES
ENGLAND’S Lee Westwood may be
nursing a ruptured calf muscle but
that did not stop him from hitting
the ground running at St Andrews.
Westwood (right) began his cam-
paign to finally claim a first Major
title with an impressive five-under-
par opening round of 67.
The world No3 might have
carded an even lower score
had he not missed putts at
17 and 18, as wind and rain
hindered the afternoon play-
ers.
“It was tricky out there. This
afternoon the wind blew and
we got unlucky with the weath-
er but that happens in links
“The calf is sore and it gets worse
as the day goes on and my ankle
swells up. I’m going to the physio
and off to have a bit of soft tissue
work done on it.”
An Englishman has not won the
Open since Nick Faldo in 1992, but
Westwood and the unheralded
Steve Tiley, who shot a 66, were far
from the only men from
south of the border to make
an encouraging start.
Paul Casey birdied the
last to record a 68 and fin-
ish day one six shots off the
lead, while in-form Justin Rose
was one shot further behind.
Northern Irish two-time winner
Padraig Harrington shot a dis-
appointing 73.
BY JON COUCH Channel 4 Racing’s Emma Spencer will be your
IAN POULTER was left to rue a num- glamorous host and you will be in the company of a
ber of missed opportunities – but select band of owners, jockeys and trainers, who will
insisted he is still in with a shout of
mounting a title challenge. share their first-hand knowledge of horseracing.
The world No8 hit 17 of 18 greens
in regulation but struggled with Places are strictly limited*. To guarantee your ticket to this exclusive
the putter as he carded a one-under-
par 71. event, go to: sandown.co.uk/cityoffer and use the code: SPCITY10.
“The golf course was as easy as
it’s ever going to get and I didn’t Sandown Park is just 25 minutes from Waterloo, with fast trains
take advantage despite playing every 20 minutes. *Offer closes at 4pm, Monday, 26 July, 2010
great,” Poulter said. “I’m not going
to be disappointed with the way I
played, I just didn’t hole putts so I
can’t beat myself up over it. It was
one of those days.
“This is the Open and although
I’m eight behind the leader there
are 54 holes of golf to play.”
 Sport
32
McIlroy off
to flying start
as records
go tumbling
THE OPEN
CHAMPIONSHIP
BY JON COUCH
RORY MCILROY rewrote the record
books with a scintillating opening
round in the Open Championship at
St Andrews yesterday and then admit-
ted: “the course was there to be taken
apart”.
The 21-year-old fired seven birdies
and an eagle at the par-four ninth for
a flawless 63 – only the second nine-
under-par round in Open history.
McIlroy’s was only the 24th round
of 63 in Major championship history.
He is the youngest player to achieve
that feat and the first in the Open
since Sir Nick Faldo and the late
Payne Stewart 17 years ago.
His round continues his stunning
record on the Old Course at the
Home of Golf. Starting with two
rounds in the amateur Links Trophy
and continuing with the Dunhill
Links and ending with yesterday, it
read a staggering: 69, 69, 67, 68, 67,
68, 65, 69, 63 – a total of 43-under-par.
But it could have been so much bet-
ter for the Northern Irishman, who
fired down a towering six-iron on the
grueling 17th to within three feet,
only to then miss the putt and the
chance to become the first player in
Major history to shoot a 62.
Heskey quits England duty
before Capello swings axe
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FOOTBALL
BY FRANK DALLERES
ENGLAND striker Emile Heskey has
retired from international duty at the
age of 32.
Heskey was never prolific for his
country, scoring just seven times in
62 appearances, but endured a partic-
ularly disappointing World Cup.
“I have enjoyed every moment of
my England career and worn the shirt
with pride every time I have been for-
tunate enough to have been selected,”
said the Aston Villa forward.
“I would like to thank every manag-
“It sort of went through my mind
that 62 would have been the lowest –
that’s probably why I missed the putt,”
McIlroy joked. “It’s amazing, the only
thing that came into my head was
watching Tiger at the [2007] US PGA in
Tulsa and he lipped out for 62.”
McIlroy took full advantage of the
benign early conditions of the
famous St Andrews links and has now
set his sights on a glorious first Major
title – just like fellow countryman
Graeme McDowell did at the US Open
last month.
“I had to take advantage of the con-
ditions – the course was there to be
taken apart,” McIlroy added. “It was a
fantastic score. I didn’t get off to a fly-
ing start. I was one under through
eight holes and then the eagle on nine
really sort of turned things around for
me and I just got going from there.
“Graeme McDowell winning the US
Open has given me belief. If he can
win a Major then so can I.”
McIlroy lies two shots clear of South
Africa’s Louis Oosthuizen at the top of
the leaderboard and a three-way tie
for third, which includes little-known
Englishman Steven Tiley, whose
biggest claim to fame in his three-year
professional career so far was winning
the Egyptian Open eight months ago.
“This is a different league to win-
ning the Egyptian Open,” the 27-year-
old said. “As dream starts go, that’s it.”
er I have played under, everyone at
The FA and the fans for all their sup-
port over the years. I wish the man-
agement team and the playing squad
all the best for the future.”
England boss Fabio Capello is
expected to cull some older players
for the Euro 2012 qualifiers, and
Heskey was strongly tipped to be
among those to be axed for the friend-
ly against Hungary on 11 August.
The former Liverpool, Birmingham,
Leicester and Wigan frontman made
his international debut in 1999 under
Kevin Keegan and went on to play in
two European Championships and
HELLO USA, GOODBYE
INTERNATIONAL FOOTBALL
HENRY LANDS IN NEW YORK
AND QUITS FRANCE: P30
McIlroy has shot nine successive rounds under 70 at St Andrews.
the 2002 World Cup before falling out
of favour. Heskey was recalled in
October 2008 by Steve McClaren after
three years in international wilder-
ness and became a regular starter
under Capello.
KEY STATS | HESKEY FOR ENGLAND
l Heskey got just 27 shots on target in 62
internationals – less than 0.5 per game
l Since 2006 England have won 69 per
cent of competitive games when Heskey
has played, and 61 per cent when he hasn’t
OPEN | LEADERBOARD
-9 Rory McIlroy (NI)
-7 Louis Oosthuizen (RSA)
-6 John Daly (USA)
Andrew Coltart (Sco)
Steven Tiley (Eng)
Bradley Dredge (Wal)
Peter Hanson (Swe)
Picture: PA
HMRC scuppers Pompey
bid to exit administration
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FOOTBALL
PORTSMOUTH face more months of
uncertainty after the taxman blocked
their attempt to come out of adminis-
tration.
HM Revenue and Customs yester-
day lodged an appeal at the High
Court against Pompey’s proposed
Company Voluntary Arrangement.
A hearing is not expected to be held
before October, leaving the club ham-
pered by a transfer embargo as they
prepare for the new season.
HM Revenue and Customs is
unhappy at Portsmouth administra-
tor Andrew Andronikou’s offer to
non-football creditors of 20p in the
CITYA.M. 16 JULY 2010
Tiger looks
menacing
on a day of
low scores
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OPEN GOLF
BY JON COUCH
TIGER WOODS says he is “getting bet-
ter every week” after leaving himself
perfectly poised to challenge for a
third successive Open victory at St
Andrews.
The world No1, who won the Open
title here in 2000 and 2005, fired a
five-under-par 67 to lie four shots
adrift of overnight leader Rory
McIlroy.
Woods has been far from his best
since returning from his five-month
exile from the game, but showed
glimpses of his former imperious self
in the benign early conditions as he
stalked the leading pack in search of a
15th Major title.
“It’s getting better every week,” said
Woods, who made six birdies before
dropping his only shot on the dread-
ed 17th. “Every week I’m playing, the
things I’ve been working on have
been starting to come together. I’m
hitting shots that I haven’t hit in a
long time. It’s building.
“I made a lot of putts, the ball
comes off faster and the greens are
really slow – I had to put a little more
hit in the stroke.”
Woods’s 67 matched his opening
round score at the Open at St
Andrews in 2000, and the American
was astonished that it hadn’t lifted
him higher up the leaderboard in a
day of low scores.
“It was awkward that you have to
be at five under to be in the top 10 –
I’ve not seen a Major like this, he
added. “All the guys were four or five
under through the loop. They were
taking the golf course apart.”
pound. In a statement it said it was
appealing “on the grounds that: (a)
The interests of HMRC have been or
will be unfairly prejudiced by the tak-
ing of that decision; and (b) There
were material irregularities in the
way in which the votes of creditors
were counted.”
Clubs in administration are subject
to a transfer ban, although
Portsmouth’s lean squad means they
will be allowed to bolster their pool of
players to 20. Portsmouth will not
lose points for starting the season,
which begins next month, in admin-
istration but could be penalised if any
eventual CVA does not satisfy Football
League rules.