BUSINESS WITH PERSONALITY
BUSINESS WITH PERSONALITY
Issue 1,292 Tuesday 4 January 2011
FACEBOOK VALUE
JUMPS TO $50BN
TECHNOLOGY
▲
BY JULIET SAMUEL
GOLDMAN Sachs has given social net-
working site Facebook an unprece-
dented vote of confidence by
investing $450m (£291m) in the com-
pany at an astounding valuation of
$50bn.
The amount represents a fivefold
increase from a valuation just two
years ago of $10bn.
In addition to Goldman’s invest-
ment, the Russian firm Digital Sky
Technologies, which invested $200m
for two per cent of the business in
2009, has stumped up $50m at the
same valuation as Goldman.
And the investment bank is slated
to raise an additional $1.5bn from its
high-net worth investors by setting
up a special investment vehicle.
The new price-tag for the social
networking site, which has half a bil-
lion users worldwide, makes it worth
more than other tech giants such as
Yahoo and Google.
Facebook is now said to be plan-
ning a float for 2012, with Goldman
likely to have bought a primary place
in the running to advise the deal,
which would generate $500m-$1bn
in fees.
And the $50bn valuation puts
Facebook founder Mark Zuckerberg’s
estimated wealth at about $14bn,
double the amount Forbes magazine
listed when compiling its list of the
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Mark Zuckerberg’s shares could be worth about $14bn
world’s wealthiest individuals.
Facebook’s value has skyrocketed
over recent months. Although not
publicly traded, shares in the site are
regularly auctioned in the secondary
market. SharesPost, a private compa-
ny trading website, sold 100,000 of its
shares to private buyers for $23 each
in mid-December – reportedly a 77
per cent jump in price over just three
months.
Nic Brisbourne, a partner on the
NASDAQ ▲2,691.52 +36.65 £/$ 1.55 t-0.01 £/¤ 1.16 t-0.01 ¤/$ 1.34 unc
www.cityam.com
tech team at venture capital firm DFJ
Esprit, says: “It keeps going up and
up and up. The valuation is very, very
high.” And, he adds, with Facebook’s
revenues estimated at $2bn, “you’d
have to be very aggressive in terms of
growth and margin assumptions to
get anywhere near these valuations”.
However, Brisbourne says that
while there could be a correction in
value, it is unlikely to be a crash.
Barry Mills, co-manager of the
Picture: GETTY
Dreyfus Technology Fund (a sub-
sidiary of BNY Mellon) says social net-
working is a high-growth area:
“There’s a fundamental shift going
on in the computing paradigm.
Those companies with users and rev-
enue growth are going to see high
valuations.”
But technology investing can be
very high-risk. Mills added:
“Technology is often about dreams.”
Goldman declined to comment.
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powered by
www.odlmarkets.com
VAT RISE
SLAMMED
TAX HIKE
ATTACKED FROM
ALL SIDES P3
FREE
Optimistic
firms plan
for growth
▲
UK ECONOMY
BY ELIZABETH FOURNIER
UK financial officers have turned
markedly more optimistic about
growth in 2011, fuelling hopes that the
private sector will be able to compen-
sate for a retrenching public sector.
Deloitte’s quarterly CFO Survey –
released today – cites expansion as the
top priority for financial officers, with
balance sheet rebuilding and cost-cut-
ting taking a back seat.
Risk appetite, recruitment and capi-
tal spending are also set to rise after a
strong fourth quarter of 2010. The sur-
vey highlights the potential of overseas
expansion for UK Plc, with 34 per cent
of respondents arguing that emerging
markets would contribute most to rev-
enue growth, against 39 per cent say-
ing the UK would.
“The focus on emerging markets
shows how international the top end
of the UK corporate sector has
become,” Ian Stewart, Deloitte’s chief
economist, told City A.M. “The UK is still
the single biggest contributor, but I’m
surprised to discover how closely
behind emerging markets now are.”
CFOs now see a probability of just 26
per cent of a double-dip recession,
down from 34 per cent in the third
quarter and 38 per cent in the second.
“The equity markets late last year
were very strong, and they’re usually a
good barometer for more general mar-
ket sentiment,” said Stewart. “It means
that fears about the consequences of
fiscal policy in the UK have a more pos-
itive macroeconomic backdrop.”
ALLISTER HEATH: P2
Certified Distribution
1/11/10 - 28/11/10 is 113,348
 2 News
Why 2011 won’t be too bad after all
EDITOR’S LETTER
ALLISTER HEATH
FORECASTING may be a mug’s game
but it is unavoidable at this time of
the year. So here are a few of my pre-
dictions for 2011, together with some
key themes to look out for and some
lessons from last year.
I was right to be sanguine about
2010’s UK growth prospects; the daily
warnings from the mainstream media
that a double-dip recession was immi-
nent turned out to be complete non-
sense, as I argued time and again
throughout last year. One shouldn’t
believe everything one hears on TV.
The economy grew by around 1.7-1.8
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WHAT THE OTHER PAPERS SAY THIS MORNING
CHINA TRAVEL GROUP PULLS OUT OF
AIM
Et-China.com International Holdings,
the Chinese travel specialist, will
today become the first company to
quit Aim this year. Shares in the com-
pany, which raised £4.4m at 127p a
share when it joined Aim in August
2007, were suspended at 103 1/2p in
July because of its failure to send
annual accounts to shareholders.
PETROPAVLOVSK IN BOARD SHAKE-UP
Petropavlovsk, the London-listed gold
mining group, has appointed three
new board members – including its
first female director – in a manage-
ment shake-up following a strategic
review. The appointments come after
investor criticism last year that there
was insufficient depth of operational
expertise at board level, after the
group missed production forecasts.
Andrey Maruta, who is the group’s
per cent, corporate profits bounced
back, the stock market rose and the
UK added far more jobs than it lost.
The indicators that correctly pre-
dicted renewed expansion last year –
such as the purchasing managers’
indices – all suggest that the private
sector will continue to recover in 2011.
Today’s quarterly survey of finance
directors from Deloitte – another use-
ful piece of data – is even more
upbeat, suggesting that strong corpo-
rate spending will more than offset
the cutbacks to public spending as the
year progresses. Emerging markets are
continuing to boom, as is Germany;
America’s short-term growth
prospects look better than they have
done in ages.
All of which means that the UK’s
private sector employment will con-
tinue to rise, but the recovery won’t be
as strong as after previous recessions
because the UK labour market is now
far more regulated. Britain’s anti-City
mindset and general unattractiveness
to multinational firms will also act as
Rothschild in
coal search
RESOURCES
▲
BY DAVID HELLIER
VALLAR, the London-listed cash shell
founded by financier Nat Rothschild,
is looking at potential opportunities
to bulk up its coal assets as it seeks to
become a major force on the FTSE
100.
Rothschild was unable to comment
to CityA.M. last night but sources close
to the group said that it would not
dismiss suggestions that it was con-
sidering the possibility of acquiring
coal assets worth more than £500m
in the US and/or Australia that would
complement the newly structured
group's Indonesian coal assets.
Later this month Vallar will
become a vehicle for Indonesia's
Bakrie and Roeslani families who
want to list their interests in London.
As part of the restructuring, Vallar
financial controller, will be appointed
finance director, Russia. Alya
Samokhvalova, the group’s head of
external communications, will be
appointed to the new role of strategic
director and chair a newly-created
strategic committee. Martin Smith,
group head of technical services for
Petropavlovsk, will be made technical
director.
AXA TARGETS €1.5BN FOR PROPERTY
DEBT FUND
Axa Real Estate will commit up to
€1.5bn (£1.29bn) from insurance activ-
ities into the provision of debt to com-
mercial real estate, aiming to exploit
the retreat of banks and other debt
providers from property lending
since the crash.
AMAZON STEPS UP EU GROWTH WITH
FOCUS ON DISTRIBUTION
Amazon, the world’s largest online
retailer, is stepping up its expansion
in the European Union with an
enlarged distribution network.
a break on growth, tax revenues and
jobs. Nearly everybody will notice the
impact of surging costs on their living
standards, as well as declining house
prices. Wages will continue to rise at a
slower rate than inflation, which will
overshoot dangerously. The Bank of
England will be forced to put up rates
by the second half.
The tightest quarter is likely to be
the first, as today’s VAT hike hits con-
sumer spending. But the spending
cuts will turn out to be moderately
expansionary, reassuring investors
and companies that the UK is once
again being governed responsibly. We
shouldn’t forget that the coalition is
only proposing to cut by a cumulative
3.3 per cent in real terms over the next
few years (and on the OECD’s figures
to reduce the government’s share of
GDP from a crippling 51 per cent in
2010 to a only slightly less crippling
49.9 per cent in 2011, hardly a revolu-
tionary change).
The coalition won’t collapse in 2011
– even though the Lib Dems will lose
will be renamed Bumi and
Rothschild will be joined on the share
register by some of Indonesia's most
powerful families and institutions.
Vallar shareholders will own a stake
of around 32 per cent in the enlarged
group.
Sources said last night that the
Bumi deal would hopefully be com-
pleted later this month.
Some have argued that Rothschild
is taking a big gamble in becoming a
minority shareholder in a far larger
group but others have admired his
courage and boldness.
Vallar boss Nat
Rothschild is hoping
to make a major
impact on the FTSE
100
ROYAL MAIL’S HIGH PRICE FOR TAX-
PAYER CASH
Royal Mail may have to sell some of
its most profitable businesses to get a
green light from Brussels for a tax-
payer bailout of its £8.4bn pension
deficit. The Department for Business
is preparing to lodge an application
with the European Commission to
determine whether its plan to take
on the pension fund’s liabilities con-
stitutes state aid that could give the
group an unfair edge over its rivals.
ENERGY SHAKE-UP WILL LIFT ELEC-
TRICITY BILLS TO £1,000 IN 20 YEARS
Government officials have admitted
that the shake-up of the electricity
market to generate more green and
nuclear energy will raise power prices
by more than 50 per cent — much
higher than indicated previously. The
Energy Secretary had said that bills
would go up by only £160 a year.
their bid to change the voting system
and the trade unions will organise
massive anti-cuts protests. To his cred-
it, George Osborne will largely stick to
his guns; while spending in cash
terms will probably overshoot, infla-
tion will also come in higher than
expected, keeping down real spending
and reassuring gilts investors.
A bigger risk is that external events
flare up to such a degree that they tip
the UK back into crisis. A Spanish or
Italian sovereign panic, a massive ter-
ror attack, war in the Korean peninsu-
la or a nuclear conflict in the Middle
East could all achieve this. Longer
term, the UK – and the rest of the glob-
al economy – face huge challenges.
New bubbles are building and the
seeds of fresh crises are being planted
thanks to economically illiterate glob-
al monetary and fiscal pump-priming.
But the most likely outcome for
Britain this year is another year of
decent, unspectacular growth of
around 2 per cent. Fingers crossed.
allister.heath@cityam.com
Warren Buffett’s Berkshire Hathaway is selling $1.5bn in senior bonds Picture: REUTERS
Buffett’s bonds for sale
INVESTMENT
▲
BY HARRY BANKS
BILLIONAIRE investor Warren Buffett
bolted in to 2011, with the first major
offering for the year coming from his
investment holding company.
Berkshire Hathaway yesterday
offered $1.5bn of three-year and 10-
year senior unsecured notes.
Buffett, a giant in the investment
world who is known as “The Sage Of
Omaha”, will guarantee the debt via
Berkshire Hathaway.
VAT CHANGE WILL BE USED TO HIDE
8PC PRICE RISE
The cost of many goods and services
will rise by more than three times the
rate of the VAT increase as businesses
use the tax to mask a more dramatic
price review, leading industry experts
warn today. The rate of Value Added
Tax rose by 2.5 percentage points at
midnight, from 17.5 per cent to 20 per
cent – an attempt by the Coalition to
reduce the deficit. But analysts believe
many gyms, mobile phone compa-
nies, restaurants and shops will raise
their prices by between five per cent
and eight per cent, or possibly more.
LLOYDS “BAD BANK” CHIEF ANDY
CUMMING FEARS “RIPPLE” EFFECT IN
UK ECONOMY FROM SPENDING SLUMP
Andy Cumming, the man in charge of
Lloyds Banking Group’s “bad bank”,
has warned the UK’s economic recov-
ery remains far from certain.
CITYA.M. 4 JANUARY 2011
NEWS | IN BRIEF
Borders loses two top execs
Bookseller Borders yesterday announced
the resignation of two top executives, as
the retailer battles its economic woes.
Borders revealed late yesterday that
general counsel Thomas Carney and
chief information officer D. Scott
Laverty had resigned. The bookseller’s
shares dipped by 13 per cent on Friday,
and dropped by 11 per cent to 85 cents
in after hours trading yesterday after
news of the resignations.
News Corp mulls MySpace deal
News Corporation, the media giant that
owns a host of UK newspapers and a
majority shareholding in BSkyB, is still
considering a sale of its social network-
ing site MySpace, it emerged over the
weekend. CNBC business television
reported yesterday that News Corp is
on course to sell MySpace by mid-2011,
citing sources. The Los Angeles-based
company will also lay off more than half
of its staff as management seeks to
accelerate a turn-around for the loss-
making company, the person said con-
firming earlier reports by All Things
Digital and CNBC. A MySpace spokes-
woman declined to comment.
The offering consists of three-year
fixed and floating-rate notes, while
the 10-year piece has a fixed rate,
according to a Securities and
Exchange Commission filing.
Goldman Sachs, JPMorgan Chase
and Wells Fargo are managing the
bond sale.
Last January, Buffett’s financing
vehicle Berkshire Hathaway Finance
came to market with a $1bn sale,
which like yesterday’s offer was also
split into 25 per cent floating-rate
notes and 75 per cent fixed notes.
EU INVESTIGATES HUNGARY'S
SPECIAL TAXES
The European Union is investigating
the legality of special “crisis” taxes
imposed by Hungary on a handful of
industries amid an escalating feud
between the country’s new govern-
ment and its increasingly outspoken
critics elsewhere in Europe. Tensions
have mounted as Hungary takes over
the rotating presidency of the EU and
could complicate the regional bloc’s
efforts to make progress on a series of
important measures aimed at bolster-
ing the continent’s economic recov-
ery.
PIRAEUS RAISES FUNDS AT STEEP DIS-
COUNT
Greece’s Piraeus Bank, the country’s
fourth-largest lender, said yesterday
its long-awaited €800m rights issue
will be priced at €1 a share, represent-
ing a sharper than expected discount.
CITYA.M. 4 JANUARY 2011 News 3

US markets cheer
Deputy Prime
Minister Nick
Clegg attacked the
Tory plans last
year, but is now

in the new year

part of the coali-
tion government
increasing VAT to
20 per cent
Picture: GETTY

2691.52. Apple was one of the biggest

▲
MARKETS
BY STEVE DINNEEN
US MARKETS reached two-year highs
yesterday, buoyed by a strong per-
formance from the manufacturing
sector.
The S&P 500 closed up 1.13 per cent
at 1271.87, while the Dow Jones
Industrial Average finished up 0.8 per
cent at 11670.75. The Nasdaq
Composite added 1.46 per cent to
winners, as its shares hit new record
highs and Bank of America saw its
shares leap 6.4 per cent.
Manufacturing grew for the 17th
straight month in December and the
Institute for Supply Management
report showed new orders rose, but
factory sector employment slipped to
a nine-month low.
Oil prices also hit a 27 month high
after predictions for colder weather.

Coalition’s VAT
hike slammed
by all sides
“Politicians tell us we can’t afford not
▲

UK ECONOMY
BY JULIAN HARRIS
CHANCELLOR George Osborne was
caught in the political crossfire as the
UK braced itself for today’s rise in VAT
to 20 per cent.
The tax hike will cost families £400
a year and risk up to 250,000 jobs,
Labour leader Ed Miliband claimed
while on the by-election campaign
trail in Oldham yesterday.
Osborne accused the Labour leader
of “opportunism” and insisted the rise
will save £13bn in government spend-
ing cuts.
“When Labour was in government
they accepted this, which is why
Alistair Darling says he wanted to put
up VAT,” Osborne said.
Yet some Conservative back-
benchers are unhappy that the gov-
ernment is raising taxes instead of
imposing strong public spending cuts.
“As total public spending goes up,
the heavy lift takes place through
more tax revenue,” commented MP
John Redwood on his blog. “That’s
why 2011 starts with a hike in VAT and
petrol duty, not with spending cuts.”
“It’s pretty appalling,” added
Douglas Carswell, MP for Clacton.
to put up VAT, and that the cuts are
frightfully deep – yet government bor-
rowing in November was almost a
third higher than last year.”
“VAT rises fall disproportionately
on people on low incomes, the very
opposite of the progressive impact
that this coalition is supposed to be in
favour of,” Carswell said.
Meanwhile, business groups are
concerned about the effects on con-
sumer spending. The tax rise could
reduce retail sales by £2.2bn in the
first quarter of the year according to a
report by the Centre for Retail
Research and Kelkoo
Over the next decade British
growth could be 1.5 per cent less as a
result of the rise, said former City
economist Professor David B Smith.
According to economic forecasts, the
tax could actually worsen the deficit
in the long run, he said.
And there could be more misery for
Londoners after the RMT’s Bob Crow
said that the rise will “raise the bar”
for the union’s wage demands.
“We have already rejected a pay
offer on network rail operations and
will be taking a tough negotiating
stance in the year ahead,” said Crow.

ANALYSIS l Taxing times (VAT rates by country)

25
%
25
20 20 19.6
19
18
20

15
5-10
0-8.25
10
Germany

general sales tax

Sweden

Canada

5
state sales tax
France

Spain
Italy

USA
UK

0
 4 News
Manufacturing
rise sends euro
stocks upward
▲
EUROZONE ECONOMY
BY JULIAN HARRIS
SURPRISINGLY strong manufacturing
growth across the Eurozone saw stock
markets start the year on the up.
The opening hours of yesterday’s
trading saw rises in the Euro Stoxx 50
(1.9 per cent), Germany’s DAX (1.5 per
cent) and France’s CAC-40 (2.2 per
cent), after it was revealed that manu-
facturing activity hit its highest level
since last April’s 46-month peak.
The sector has now been growing
for 15 straight months, according to
the Purchasing Managers’ Index (PMI)
compiled by Markit.
The Euro’s core economies contin-
ue to drive the recovery forwards,
with Germany’s sector exceeding 60
points in the index and French PMI
being revised up to 57.2 from an earli-
er estimate of 56.3.
All ratings above 50 signal an
increase in business activity.
In 2009, Eurozone manufacturing
averaged 43.3, reflecting a contrac-
tion in the industry. Yet now even
troubled peripheral states such as
Ireland and Spain are showing posi-
tive signs of growth.
In Ireland the index reached its
highest level since last May, with new
orders and employment both increas-
ing. And finished goods inventories
were very low (45.5), suggesting that
much of the activity will spill into the
early months of this year.
The positive outlook is reflected
across the Eurozone, according to
Howard Archer of IHS Global Insight.
“Robust orders and rising backlogs
of work bode well for manufacturing
activity early in 2011,” he said.
However, Greek factories are still
reflecting the economic slump, with
a negative PMI rating of 43.1 – down
from 43.9 in November.
And inflationary pressures
throughout the euro area in yester-
day’s figures offer a further down-
side.
Average selling prices rose at their
fastest rate since August 2008, as com-
panies passed on sharply increasing
input prices.
CITYA.M. 4 JANUARY 2011
Rebound in US
factory output
boosts outlook
US ECONOMY
▲
AMERICAN manufacturing activity
jumped to a six-month high in
December, after a decline in growth
the previous month, it was revealed
yesterday.
New orders in the sector hit a
seven-month high of 60.9, according
to the ISM manufacturing index. The
headline index figure reached 57, up
Angela Merkel’s Germany continues to show strong signs of recovery Picture:REUTERS from 56.6 in November.
The results bode well for the recov-
ANALYSIS l Eurozone manufacturing activity for December ery, with separate data for November
showing a 0.4 per cent rise in con-
70
Purchasing struction spending in the US.
Managers' “Our calculations suggest that
Index Scores over 50 show growth
60
fourth quarter GDP growth was as
strong as four per cent compared to
the previous year,” said Paul
50 Ashworth of Capital Economics. “And
growth in the first quarter of 2011 is
likely to come in at around the same.”
40 Factory production also showed a
sharp uptick, rising to 60.7 from 55
the previous month.
30 While the rate of employment
growth fell (from 57.5 to 55.7) it
remains above the “no change” 50
20 mark, indicating growth.
“As the index remains well in
expansion territory, we don’t expect a
10
deterioration in job growth in the sec-
tor as activity continues to pick up,”
0 said Nicholas Tenev of Barclays
Eurozone Germany Netherlands France Italy Ireland Spain Greece Capital.
CITYA.M. 4 JANUARY 2011
Porsche legal
victory sees
shares soar
▲
AUTOMOTIVE
BY RICHARD PARTINGTON
SHARES in German car manufacturer
Porsche soared yesterday after a US
judge dismissed a lawsuit seeking
more than $2bn (£1.3bn) in damages,
clearing the way for a merger with
Volkswagen.
Shares rose by 12 per cent, while
Volkswagen gained 3.2 per cent.
The judge dismissed claims by
hedge funds Elliott Associates and
Black Diamond of securities fraud.
US district judge Harold Baer said
the firms could not maintain securi-
ties fraud claims based on Porsche’s
tactics when it tried to take over VW
in 2008.
The lawsuit had delayed attempts
by Volkswagen to bring Porsche into
its operations next year and the rul-
ing paves the way for a planned rights
issue by Porsche.
The hedge funds alleged they were
victimised when Porsche covertly
bought a stake of Volkswagen ordi-
nary shares using swap instruments
as part of a so-called “sneak attack”
method plan to take over Europe’s
largest car manufacturer.
Spain’s ACS used similar tactics to
amass a stake of almost 30 per cent in
Germany’s Hochtief, while car suppli-
er Schaeffler bought up a stake in
Continental using swap agreements
that skirted disclosure rules.
When Porsche revealed its holding
in October 2008, shares of VW soared,
briefly making the company the
world’s biggest by market value and
causing losses for hedge funds which
had bet on a share price decline.
ANALYSIS l Porsche 68.75
70 p 3 Jan
65
60
55
50
45
40
35
4 Oct 22 Oct 11 Nov 1 Dec
News 5
BofA pays out
$2.8bn to ease
mortgage row
BANKING
▲
BANK of America shares soared yester-
day on news it had agreed to pay
Fannie Mae and Freddie Mac $2.8bn
(£1.8bn) to settle claims it sold the
mortgage companies bad home loans.
Bank of America shares rose 6.37
per cent to $14.19 on the New York
Stock Exchange. The deal triggered
hopes that other banks may soon
make similar settlements, and shares
of Citigroup and JPMorgan Chase &
Co also rose.
Investors have feared for months
that Bank of America would have to
buy back billions of dollars of home
loans it sold to investors at the height
of the housing boom.
The agreement with Fannie Mae
and Freddie Mac resolves the bulk of
Bank of America’s exposure to those
government-sponsored enterprises
(GSEs), but probably means the bank
will post its second straight quarterly
loss when it announces fourth-quar-
ter earnings on January 21.
Bank of America said it would set
aside $3bn in the fourth quarter to
help cover the Fannie and Freddie
claims. It also said it expects to take a
$2bn charge in the quarter to write
down goodwill linked to its home
loans and insurance business unit.
Despite the settlement, the bank
21 Dec VW’s chief executive Martin Winterkorn saw share values rise after the legal decision still faces more potential liabilities.
 6 News CITYA.M. 4 JANUARY 2011

Goldman Sachs returns to SIX NEW RURAL AREAS TO GO SUPERFAST

the top of 2010 M&A league

Reuters data, ahead of rivals JP with Morgan Stanley’s 394 deals
▲

M&A
BY HARRY BANKS
GOLDMAN Sachs was the top global
mergers and acquisitions advisor last
year, retaking the position from rival
Morgan Stanley, which derailed its
multiyear grip on the ranking in
2009.
Investment banks Goldman Sachs
and Morgan Stanley were neck-and-
neck in the M&A stakes throughout
the year, according to Thomson
Morgan, Credit Suisse, Deutsche
Bank, UBS, Bank of America and
Citigroup.
Apart from 2010, when it was
unseated by Morgan Stanley,
Goldman held the top spot in M&A
for every year since 1997 in the
Thomson Reuters league.
It returned to the top spot in 2010
in terms of the value of deals advised
on. Goldman advised on 370 deals
worth $554.5bn in 2010, compared
worth $538.bn.
The figures include a deal
announced on the last day of the year
by CVS Caremark to buy Universal
American’s Medicare prescription
drug business for about $1.25bn.
Goldman advised Universal American
and Morgan Stanley advised CVS.
Goldman advised GDF Suez Energy
on its $25bn tie-up with International
Power, and Weather Investment, tar-
geted by Russian group VimpelCom.

The T6 – A unique
water solution... BT has revealed the next rural communities to be upgraded to its superfast broadband
network. After a public vote BT announced Baschurch, Shropshire; Blewbury,
Oxfordshire; Caxton, Cambridgeshire; Innerleithen, Scottish Borders; Madingley,
Cambridgeshire and Whitchurch, Hampshire will be next to be fitted with BT’s Infinity
fibre optic broadband. BT unveiled a £132m rollout in Cornwall in September.

Fare hike hits

commuters
increase regulated fares by 5.8 per
▲

TRANSPORT
BY RICHARD PARTINGTON
COMMUTERS returning to work fol-
lowing the Christmas break have
been hit with a fare hike of up to 13
per cent on annual rail season tickets.
Rail passengers in London and the
South East are facing increases as
high as 12.8 per cent on some high-
speed lines.
Yearly tickets will increase across
the country by 6.2 per cent on aver-
age, yet train operator Southeastern
has been allowed to increase fares by
7.8 per cent on average to reflect extra
investment in the franchise.
High-speed services between
Tonbridge and London will now cost
Time saving, no more waiting for the kettle to boil £5,192, up 12.7 per cent, while servic-
es between Ashford and the capital
Money saving, cheaper than bottled water & water coolers will now costs £4,328, up 12.8 per
cent.
Space saving, no bottled water storage problems Train operators on regular com-
muter services have been allowed to
and stylish too, available in 12 colours to complement any interior
HOW SEASON TICKET PRICES HAVE SHOT UP
The T6 provides delicious, refreshing crisp purified water.
Dispensed ice cold or boiling hot at the touch of a button Route
and connected to your mains for an endless supply
Ashford - London* Southeastern
Tonbridge - London* Southeastern
cent and unregulated fares by up to
5.2 per cent.
A yearly ticket from Brighton to
London will rise to £3,832, up 7.76 per
cent with operator Southern, while a
First Capital Connect yearly pass
between Huntingdon and London
will cost £4,260, up 6.4 per cent.
Bus and Tube fares across the capi-
tal have also risen by an average of 6.8
per cent, with a raft of changes.
Amongst the adjustments is an
increase in the daily cap on Oyster
journeys by Tube, with fares up £1 to
£6.60 during off-peak hours and up
80p at peak times to £8.
Single bus journeys now cost £2.20
for cash tickets, up by 20p, and £1.30
on Oyster, up by 10p.
A Department for Transport
spokesman said: “Revenue from fares
enables the Government to continue
to deliver much needed improve-
ments on the rail network.”
Old price New price Price rise
£3,840 £4,328 12.8%
£4,606 £5,192 12.7%

Hastings - London Southern £3,841 £4,152 8.1%

Brighton - London Southern £3,556 £3,832 7.76%
Call Now 0845 30 22 493
or take a closer look: www.t6water.co.uk Huntingdon - London First Capital Connect £4,004 £4,260 6.4%
St Albans - London First Capital Connect £2,668 £2,820 5.7%
*Indicates high speed train. Source: National Rail
CITYA.M. 4 JANUARY 2011 News 7

Copper prices jump

Justin Urquhart-
Stewart of Seven
Investment
Management gives
the FTSE 100 a 20

to new record high

per cent chance of
hitting 7,000 points
before year end

▲
WORLD ECONOMY
BY JULIAN HARRIS
Copper futures rose to record levels
on the first day of the year’s trading,
yesterday.
Prices rallied to almost $4.50 (£2.90)
a pound on the Comex in New York.
Last year saw a 33 per cent increase
in copper prices, including a 16 per
cent jump last month.
Continued demand from China is
partly causing the rise, analysts said.
And the rise is a positive sign
according to Matthew Zeman of
LaSalle Futures Group. “People are
getting the message that the global
recovery is gathering steam. Supply is
not going to keep up with demand.
China will be back in the market for
additional copper,” he said.
Some analysts expect global short-
falls in the coming year.

Analysts say
FTSE could hit
7,000 in 2011
Stanley reported as predicting a rise
▲

MARKETS
BY ELIZABETH FOURNIER
ANALYSTS are predicting that the
FTSE 100 could reach 7,000 points in
the next year, with the record high
likely to come sooner into 2011 rather
than later.
With 65 per cent of the FTSE’s rev-
enue coming from overseas, it is in a
strong position to gain from global
economic growth, regardless of a
more pessimistic outlook closer to
home in the UK and Eurozone.
“Despite headlines of doom and
gloom the FTSE 100 is well placed to
benefit,” predicted Justin Urquhart-
Stewart, marketing director at Seven
Investment Management. “There’s
about a 40 per cent chance of a 10 per
cent rise up to somewhere around
6,666 points,” he continued. “But
there’s a 20 per cent chance of a gain
up to a high of 7,000 points.”
However, according to Urquhart-
Stewart the gain is likely to happen
earlier in 2011, with greater concern
towards the end of the year about
where the growth is coming from.
Other analysts have also been bull-
ish about the FTSE’s prospects for
2011, with Graham Secker of Morgan
to 7,000 points if economic growth is
strong and interest rates remain low.
The last time the index rose to
close to 7,000 points was in 1999,
when it peaked at 6,930.2 at the
height of the dot com boom.
In 2010 the FTSE just breached
6,000 points on 23 December, before
dipping to close at 5996.07 – the high-
est level it had reached since pre-cred-
it crisis trading in June 2008.
Neil Shah of Edison Investment
Research was more cautious about
the FTSE’s prospects, with the compa-
ny’s year-end prediction set at 6,400
points, an 8.5 per cent increase on the
2010 final figure of 5,899.94.
But even the bearish commenta-
tors admitted the index could see big-
ger gains before a year-end fall.
“It’s very possible that it could go
higher at some point,” said Shah. “We
think this will be a good year for the
equity markets and there will be
volatility before the year end.”
Shah cited inflation as the biggest
contributor to the predicted gain.
“Equities tend to do well out of infla-
tion, though it’s a delicate balance,”
he said. “A little bit is good; too much
is not.” COMMENT: P13

Kraft in Indian tax evasion probe

over its takeover of Cadbury
filed by a New Delhi lawyer who
▲

TAX
FOOD giant Kraft could face tax eva-
sion charges over its takeover of
Cadbury India.
The Indian Finance Ministry has
ordered an eight-week probe into the
takeover, which was part of Kraft’s
$19.6bn acquisition of Cadbury in
February last year.
The US firm will be desperate to
avoid a protracted legal battle like the
one that has blighted Vodafone since
its 2007 purchase of Hutchison
Whampoa’s mobile business in the
country.
A public interest law suit has been
claims Kraft “completely and illegally
avoided” paying tax on the deal. Ved
Prakash says Kraft has deprived the
exchequer by failing to pay tax on the
acquisition.
Cadbury India is key to Kraft’s
plans for the firm, with the sub-
sidiary already the country’s largest
confectioner in a rapidly expanding
market. Kraft was not available for
comment last night.
It is not clear how big any potential
claim would be but the lawyer
involved said it could be sizeable.
Vodafone is appealing a ruling that
it owes $2bn in capital gains tax.
 8 News CITYA.M. 4 JANUARY 2011

Republicans still fighting to OIL PRICES HIT TWO-YEAR HIGH

repeal Obama’s health rules

of the House Energy and Commerce “to perhaps do the same thing. But
▲

US POLITICS
BY HARRY BANKS
REPUBLICANS in the House of
Representatives plan to hold a vote
this month to repeal President Barack
Obama’s healthcare overhaul and say
they have nearly enough support to
override a presidential veto of the
repeal, a top lawmaker said yesterday.
“Unpopularity numbers are as high
as 60 per cent across the country,”
Fred Upton, the incoming chairman
Committee, said of the healthcare
law.
“I don't think we’re going to be
that far off from having the votes to
actually override a veto,” Upton said.
Democrats contend Republicans
are wasting Congress’ time by staging
a healthcare repeal vote, saying it will
die in the Democratic-controlled
Senate.
But Upton said a big House vote for
repeal could sway votes in the Senate
then, after that, we’re going to go
after this bill piece by piece,” he said,
by trying to block various parts of the
law including an individual mandate
for insurance coverage.
But Debbie Wasserman Schultz, a
Democrat, said on CBS’ “Face the
Nation” that people are learning
more about benefits of the health-
care law, diminishing chances it will
be defeated.
“It’s not going to happen,” she said.

Oil prices rose to a 27-month peak yesterday as upbeat European and US. manufactur-
ing data and forecasts for cold weather reinforced optimism about economic and energy
demand growth. US crude oil for February delivery rose 17 cents to settle at $91.55
(£89.86) a barrel, its highest settlement since early October 2008, after earlier rising as
high as $92.58.

JJB Sports to
ask for £50m
beyond its statement on 23 December.
▲

CONSUMER
BY MARION DAKERS
TROUBLED retailer JJB Sports is
expected to try and raise a further
£50m from shareholders, according
to reports over the weekend.
The company has already tapped
investors for £31.5m and asked its
lender Bank of Scotland to waive
imminent covenant tests on a £25m
loan.
Shareholders including the Bill &
Melinda Gates Foundation, Invesco
Perpetual and GoldenPeaks Capital
supported the cash injection, which
involved placing ordinary shares at 5p
each on Christmas Eve.
JJB has agreed in principle to offer
non-executive board roles to some of
its investors as part of the fund-rais-
ing.
A spokesperson for JJB Sports
declined to comment yesterday, say-
ing the company had nothing to add
Chief executive Keith Jones said at
the time that “despite the generally
challenging trading conditions, we
are encouraged by the performance
of our six transformed stores”.
The firm said stocking problems
and the icy weather had dampened
sales in the run-up to Christmas, but
that it hoped to continue revamping
its 240-odd stores.
JJB replaced its chairman John
Clare in December with Mike
McTighe, former global chief of opera-
tions at Cable & Wireless with experi-
ence in corporate restructuring.
The new management team will
begin a review of the company this
week to overhaul its strategy. The firm
is expected to post a trading update
later this month.
FTSE-listed JJB Sports shares lost 81
per cent of their value over the course
of 2010 and closed at 5p on 31
December.

No bail granted to US woman

accused of insider trading
including the founder of a New York
▲

HEDGE FUNDS
A FEDERAL magistrate refused to
grant bail on Monday to a California
woman charged with leaking inside
information about technology com-
panies.
Prosecutors accuse Winifred Jiau of
selling inside information about pub-
licly traded companies, including com-
puter chipmakers Marvell Technology
Group and Nvidia to hedge funds,
fund that prosecutors did not identify.
Prosecutors allege Jiau sold informa-
tion through an expert network firm,
in exchange for more than $200,000 of
payments funneled through that firm.
Federal prosecutors are also
involved in talks that could lead to a
possible “disposition” of charges filed
against a former executive with expert
network firm Primary Global
Research.
CITYA.M. 4 JANUARY 2011 News 9

iPhone alarm causes new

year headache for Apple
The makers of the smart phone heaped embarrassment on the firm.

▲
TECHNOLOGY
BY RICHARD PARTINGTON
ALARMS failed for a third day for
thousands of iPhone users yesterday,
despite assurances from manufactur-
er Apple that the device would fix
itself.
Non-recurring alarms on the smart
phone suffered a New Year bug that
prevented the wake-up calls from
working.
assured users the phones would work
from yesterday, yet problems persist-
ed with many handsets on the bank
holiday as employees began to return
to work. The malfunction comes after
a number of high-profile iPhone
glitches for Apple, including another
alarm failure when the clocks went
back in November.
More serious issues surrounding
reception on its latest iPhone 4
Apple was forced to accept that recep-
tion on the device dropped when
held in a certain way – which proved
particularly troublesome for left-
handed users.
The potential impact glitches can
have on the firm was underlined
when Apple’s market cap plummeted
$6bn (£3.9bn) the day after a bad
review in an influential US electron-
ics magazine earlier this year.

Twitter co-founder Biz Stone saw the site raise $200m from investors Picture: REUTERS

Market for
private tech
firms soars
Privately owned tech firms are flavour of the
month for hungry investors, says Steve Dinneen
A GROWING and largely unregulated
market in privately owned shares has
sprung up as technology firms contin-
ue to rise in value exponentially.
Investors are clamouring to own a
stake in the next major internet firm
before they are publically traded, driv-
ing the biggest surge in demand for
privately-owned tech companies since
the dotcom boom.
Facebook has grabbed the headlines
after Goldman Sachs and Russian
fund Digital Sky Technologies (DST)
invested $500m – valuing it at a stag-
gering $50bn. But privately held shares
in other companies have also been
feverishly changing hands.
Groupon, the online marketing
firm which recently rejected a $6bn
takeover bid from Google, is set to
raise almost $1bn from a number of
major institutional investors.
Microblogging site Twitter recently
raised $200m in a round of investment
led by Kleiner Perkins, valuing the
firm at $3.7bn. And online gaming
firm Zynga has received hundreds of
millions of dollars from investors
including DST.
Goldman is now planning to create
a vehicle that will raise as much as
$1.5bn from investors desperate for a
piece of Facebook, which could yet fall
foul of a new SEC inquiry into the trad-
ing of privately owned tech shares.
GROUPON FINANCING: P15

Buying up tech for a quick buck

GOLDMAN Sachs and Digital Sky
Technologies have shocked the
investment world by swallowing a
$50bn valuation for social network-
ing site Facebook.
But few were immediately pre-
pared to dispute the price tag with
Wall Street’s most prestigious
investment bank: broken down per
user, it doesn’t sound quite so outra-
geous, at $100 a head. After all, no
other tech firm can boast a mem-
bership rate of 8.3 per cent of the
world’s population.
Still, veterans of the Dotcom bub-
ble will be anxious to know what
makes the current craze for pre-
float tech shares different.
Analysts reckon the key is that
modern social networking sites
actually generate revenues: best
guesses put Facebook’s incomings
at $2bn per year, and the company
has shown an ability to innovate far
outside its original core model of
static profile pages.
More importantly, with valua-
tions skyrocketing, investors don’t
need to be in on the basis of long-
haul fundamentals to make money.
BOTTOMLINE
Analysis by Juliet Samuel
 The Capitalist
10
PREPARE YOURSELF FOR THE YEAR OF
THE GRISLY KILLER POLICY RABBIT
IT seems you can hardly call yourself
an analyst these days without issuing
a long list of annual predictions, and
Societe Generale’s Michala Marcussen
keenly threw his hat in the ring yes-
terday.
But while his SocGen colleague
Dylan Grice analyses “Popular
Delusions” in his regular note,
Marcussen went for the more unusual
theme of “Policymakers and Rabbits”.
It seems 2011 is to be a year in which
the world holds its breath as regula-
tors, governors and politicians pull
“rabbits from the policy hat”.
So, what kind of rabbit? It seems it’s
about “white policy rabbits” versus
“ugly policy rabbits”. But there are
precious few of the former, and plenty
of the latter.
Ugly rabbits, it seems, include the
possibility of European market bans
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com
(along the lines of German Chancellor
Angela Merkel’s naked short-selling
ban) and “protectionist measures”
resulting from ongoing currency
wars.
But The Capitalist isn’t quite sure
that “ugly rabbit” quite captures the
grisly prospect of 1930s-style protec-
tionism. How about “killer rabbit of
Caerbannog”, the legendary murder-
ous rabbit featured in Monty Python’s
Like protectionist tariffs, the terrible killer rabbit of Caerbannog does grisly work
Holy Grail. In the words of Tim the
Enchanter? “That’s no ordinary rabbit.
That is the most cruel, vile, bad-tem-
pered rodent you ever set eyes on!”
And if protectionism is the rabbit,
what terrible economic risk or charac-
ter will take the role of the Legendary
Black Beast of Aaaaarrrrrggggghhhhh,
whose cave the killer rabbit guards?
Nominations are open now at thecapi-
talist@cityam.com.
CITY A.M. WINNER
Congratulations to Ewa Assaker who
has just won a holiday for two at one
of Sandals’ luxury resorts in Saint
Lucia as part of the readership survey
City A.M. reader Ewa Assaker won a prize
we conducted at the end of last year.
More than 1,500 readers responded to
the survey, telling us all at City A.M.
what they like and dislike about the
paper.
Assaker is a manager at Smilepod, a
walk-in dental hygiene centre based in
Covent Garden, which is opening new
locations in Bank and Canary Wharf
in the middle of January. She travels
from Mill Hill to Covent Garden, main-
ly reading City A.M. on the Tube.
Bottles of champagne are also going
out to seven lucky readers: Kenneth
Fitzgerald, Carolyn Lenton, Cameron
Beveridge, Charles Cooper, Paul
Riches, Ben Critchley and Alice Black.
RECYCLE
Is your house still festooned
with the sad trappings of a
bygone Christmas?
Recycle for London is
hoping that, this
year, you’ll avoid
the temptation
of tossing it all
in the nearest
skip and head
responsibly to
your nearest
recycling point.
After all,
London gets
through an
awful lot of
Christmas
CITYA.M. 4 JANUARY 2011
bric-a-brac every December. According
to the Greater London Authority, we
churn our way through enough wrap-
ping paper to cover the Equator and
enough tin foil to put a shine on 225
square miles. That’s not to mention
the 75 tonnes of Christmas lights ruth-
lessly discarded each year, the 2,000
tonnes of glass and the 450,000
Christmas trees tragically abandoned.
If all this rubbish excites a twinge of
guilt in your mortal soul, you might as
well work out where you can send the
trash on to a better life, at www.recy-
cleforlondon.com.
CITY SONATA
If your New Year’s resolution was to
imbibe more of London’s cultural
offering in 2011, swing past Canary
Wharf, Bank, Waterloo or Liverpool
Street tube stations during your com-
mute today. Musicians from the BBC
Symphony Orchestra are heading
underground to promote Radio 3’s
Mozart season and will be entertain-
ing commuters during the morning
and evening rushes, alongside regular
buskers and members of the Rhythm
of London youth music programme.
London Mayor Boris Johnson says the
Mozart buskers are meant to “bright-
en up the daily commute, especially
on the first day back after the holi-
days. As another musical genius said,
it is truly ‘sweet sunshine’.” From
Mozart to Antonin Dvorak in a single
sentence – consider yourself cultured.
WE NEED YOU
Do you enjoy lunching, partying and
meeting the best and brightest in the
City? If so, City A.M. wants you to
become the new Capitalist.
We’re looking to hire someone
who’s already familiar with the ebb
and flow of City life, with its constant
stream of parties, champagne recep-
tions and galas.
You will already know some of the
City’s biggest characters, and will
need to quickly learn the names
and faces of the rest.
You don’t need formal experi-
ence as a journalist, but must have
a knack for picking up gossip,
an eye for the comic and curi-
ous and potential as a
witty wordsmith.
Those interested
should apply by writ-
ing a sample article
for The Capitalist page,
based on a good party or
an interesting snippet of
news, along with a CV and
covering letter.
Applications
should be sent to
news@cityam.com.
CITYA.M. 4 JANUARY 2011 News 11

Toshiba eyes bite from Apple Expedia shares sink as it

TECHNOLOGY designed for web browsing, games digital products for Toshiba America,
drops American Airlines
▲

BY HARRY BANKS and electronic books. made it clear that the tablet is only
The tablet, which uses Nvidia’s the company’s first.
TOSHIBA is making its foray into the Tegra 2 mobile processor, connects to “We are going to embrace this cate- slid 3.2 per cent to $5.41.

tablet war, offering a 10-inch device it
says will be comparable in price to
Apple’s iPad.
The Toshiba Tablet, which will be
available in the first half of 2011 and
run Google’s forthcoming
Honeycomb version of the Android
operating system, is targeted at con-
sumers.
Like other touchscreen tablets, it
plays high-definition videos and is
the internet over wi-fi, but has no
built-in capability to connect to high-
speed mobile phone networks. It fea-
tures front and rear-facing cameras,
and will have access to an applica-
tions store.
Toshiba’s tablet will be competitive-
ly priced versus the iPad, which starts
at $499, although the company
declined to be more specific.
Jeff Barney, general manager of
gory, and we are looking to develop a
family of tablets,” he said.
Toshiba will show off the tablet
this week at the Consumer
Electronics Show, an annual trade
show held in Las Vegas.
With roughly five per cent of the
global PC market, Toshiba is one of a
host of companies attempting to steal
a piece of the emerging tablet market
from Apple.
▲
LEISURE
THE shares of online travel agencies
Expedia and Orbitz fell yesterday
after Expedia dropped American
Airlines tickets from its offerings.
Expedia called its weekend action a
response to the airline’s new “anti-
consumer” and “anti-choice” com-
mercial strategy.
Expedia shares fell 2.7 per cent to
$24.41 (£15.76) while Orbitz shares
Expedia’s action was the latest in a
running feud between American and
the Internet travel websites.
American had removed its listings
and other features from Orbitz last
month, saying it needed to cut distri-
bution costs and that the online trav-
el model prevented it from offering
the lowest possible fares. The airline
said it would continue to negotiate
with Orbitz and Expedia.

Attendances in
Fiat’s shares rally after split Hollywood take
a dive in 2010
as firm eyes Chrysler stock

▲
LEISURE
LAST year proved a disappointing
AUTOMOTIVE
▲

Fiat has split into year for Hollywood, when higher

BY HARRY BANKS
SHARES in a slimmer Fiat and sister
company Fiat Industrial made a
choppy debut on the Milan market
yesterday, while chief executive
Sergio Marchionne said Fiat could
increase its stake in Chrysler past 50
per cent this year.
Fiat SpA, which contains Fiat’s car
and engine business, opened at €7.03
(£6.07) yesterday, while Fiat
Industrial traded at €8.99, a three
per cent increase from the €15.43
closing price of the combined group
on 30 December before the split. Fiat
rallied almost 50 per cent last year.
Fiat Industrial, the company
whose assets include truck maker
Iveco and tractor company CNH
Global, has been split from the car-
making business Fiat to allow the
firms to forge different tie-ins.
The new Fiat Industrial shares
were indicated to debut at €6 accord-
ing to analysts. Fiat, which now only
comprises the rump auto group, was
indicated to trade at €7.50. Fiat and
the Milan bourse did not set refer-
ence prices that are sometimes used
to guide investors.
The split, which main investor
John Elkann has called “a defining
moment” in the history of the cen-
tury-old Italian carmaker, is part of
chief executive Sergio Marchionne’s
efforts to revamp Fiat among
Europe’s biggest industrial turn-
arounds.
The plan could speed up a merger
with US carmaker Chrysler, in
which Fiat owns 20 per cent, and
free Marchionne’s hands for other
growth initiatives.
However, Marchionne told
reporters yesterday he doesn’t plan to
merge operations with Chrysler, but
two businesses, with
one launching on
the Milan market
yesterday.
Picture: REX
added that Fiat could lift its stake to
over 50 per cent this year if Chrysler
returns to the stock market.
“If Chrysler is listed this year, we
should think about speeding up the
option of increasing our stake,” said
Marchionne.
prices for 3D movies failed to offset a
decline in attendance.
The number of tickets sold in 2010
slid about 5.4 per cent from 2009,
according to box office analysts at
Hollywood.com. It marked the
biggest percentage drop since 2005
when attendance tumbled 8.1 per
cent.
Overall ticket sales were flat at
about $10.6bn (£6.85bn), marking the
first time since 2008 that sales failed
to improve upon the previous year,
Hollywood.com said.
Studios charged moviegoers an
extra few dollars to see films in 3D
ranging from the hit “Alice in
Wonderland” to the bomb “Piranha.”
But fans and critics carped that the
picture quality for some 3D movies
did not justify the premium pricing,
while parents faced an even steeper
tab for a family outing.
All three of the 3D movies in the
weekend top 10 -- Tron: Legacy, Yogi
Bear and Disney’s Rapunzel cartoon
Tangled -- were aimed at families,
although only Tangled is a big hit
with sales to date of $168m.
Tron: Legacy, a sci-fi reboot also
starring Bridges, has earned $130.9 m
after three weekends but it cost
about $170m to make.

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 12 News WORDS BY ROGER BAIRD CITYA.M. 4 JANUARY 2011

The broker who says small firms

have to come up with big solutions
Phil Adams on how “The market
City brokerages are is overbroked.
having to reinvent There is room
themselves in a more for
subdued environment consolidation.
It is amazing

T how weaker
he conventional wisdom is that it is
next to impossible for small firms to
raise cash, but Phil Adams, chief
executive at independent invest- houses can
ment broker Altium, says that the picture
is more complicated than that. keep going.”
“It is pretty straightforward to raise
cash if you are a well-run high-growth
firm expanding by around 15 per cent a
year,” says the 43-year-old banker from
Liverpool. “But it is harder now if you have
a speculative venture or are a start up.”
Adams, sitting in the firm’s bright
wood-panelled ground-floor meeting
room in St James’s Square, adds: “Investors
also like to seem a firm that has some
exposure to the fast growing markets in
Asia or the Middle East. This is because the
perception is that the UK and Europe will
undergo years of low growth.”
The banker, who caters for small and
mid cap firms, adds that life in the retail
industry “will remain tough” over the year
ahead. However, he sees a lot of investor
appetite for green energy companies or
businesses with a strong ecommerce ele-
ment. And indeed his bank is investing in
these areas by hiring analysts and other
staff to work in these sectors.
Altium is a mid cap investment bank
that raises cash for firms with market cap-
italisations of between £50m to £250m. It
raised £26.5m to take restaurant chain
Carluccio’s onto Aim in
2008, and advised on the £178m manage-
ment buyout of drug maker Goldshield
last year.
The bank, which was originally created
as the finance arm of private equity house
Apax Partners in the early 1980s, is wake of the financial crisis, when lucra- Altium chief executive going. IPOs are superprofits. Firms can the business has began for the first time to
retained by 35 clients – including tive initial public offerings (IPOs) for banks Phil Adams in a keep going on the back of these, even raise cash for other funds, and to move
Domino’s Pizza, Irn Bru-maker AG Barr, remained way off the levels seen during ground-floor meeting though there are fewer of them around.” into money management for wealth
and retailer Mulberry – and can also offer the boom just four years ago. room in the firm’s Altium was itself the subject of intense funds. The business has also spent the last
them financial modelling and debt and Currently, the bank’s business is spilt London headquarters merger speculation in 2007, when it came several months trying to get approval to
turnaround advice. evenly between its securities and corpo- in St James’s Square close to a deal with City rival Arden open offices in the Middle East.
The bank has a regional office in rate finance arms, but when cash was Partners. “We had reasonably meaningful Adams says: “We have hired a guy out
Manchester, and a number of European in freer five years ago this split was two discussions,” Adams admits. “But they there and he and his team have been
cities such as Zurich, Munich, Madrid and thirds/one third in favour of the securities Picture: Micha came to nothing.” He now says that working on regulatory approval. We
Milan. Adams says the firm, which is side of the business. Theiner/City A.M. although they get approaches “the busi- expect this to happen in the first half of
owned by its 140 employees, turns in sales The banking industry, particularly at ness is very much not for sale.” next year. This will then allow us to get to
of £35m a year “in a bull market.” This the mid cap level, is living on nervous As an example of how weak the IPO the sovereign and family wealth funds out
dropped to around £20m in 2010, in the energy, waiting for the return of the IPO market has been, Adams says his firm has there to raise cash.”
market. handled 10 public-to-private deals in the The days of IPO superprofits may be off
CV | PHIL ADAMS This is because the retainers mid cap last 12 months alone. He says: “You don’t the agenda for a while, but Adams says
stockbrokers are paid by clients are quite see a lot of public-to-private deals when investors are still willing to lend cash to
small, but are accepted on the under- the IPO market is strong.” resourceful companies with strong busi-
standing that they will be allowed to take However, flotations at the lower end of ness plans. He also adds: “Private equity is
Age: 43 part when the firm wants to raise some the market may take some time to come back in the market strongly, and are pay-
cash. “We operate on success-based fees,” back as investors become more discern- ing good prices for firms.”
Work: Arthur Andersen as a chartered says Adams. “If a deal does not go ahead, ing. During the boom years for Aim IPOs The figures seem to back Adams up.
accountant for four years until 1995; we do not make any fees.” throughout much of the last decade, a Last year 164 deals were completed worth
joined Apax (as it was called then) in The boom times at the start of the “Private number of firms came to market with £18.2bn, compared with just £4.7bn from
1996; ran the firm’s Manchester office decade allowed over 140 brokers to grow leaky business models and inadequate cor- 122 deals in 2009, according to the Centre
from 2002 to 2007; became UK chief up around the Aim market alone. Many equity is back porate governance. Some investors paid for Management Buy-out Research, which
executive in 2007; became group chief observers expected a wave of failures and the price. Adams admits: “A lot of stuff is sponsored by Ernst & Young and
executive in October 2010 consolidations in this area after the credit in the went out on Aim that was not of the right Barclays Private Equity.
crunch. quality.” The largest buyout deal in the UK was
Education: Nottingham University, where This has not happened, partly because market Some of the firms traditionally operat- the £2.9bn public-to-private buyout of
he read Classics of the egos and the different cultures that ing in the small-cap arena – the likes of engineering company Tomkins by US pri-
abound between the various brokers, mak- strongly, and Collins Stewart, Numis or Evolution – vate equity group Onex, but a flurry of
Family: Married, four children ing consolidation painfully hard. But have reacted to this by trying to take on smaller deals came underneath that.
there is another, more prosaic reason: a is paying the bigger investment banks in a bid to Sales are undoubtedly being made, but
fundraising brings so much cash into a attract blue chip clients. Collins Stewart, these are still way off their 2007 levels.
Lives: Family home in Manchester, Hale
and spends three to four days a week in
brokerage it can often survive on this cash good for instance, became the broker to its FTSE At the beginning of 2011 the signs are
for extended periods. 100 client goldminer Randgold Resources that investors are not ready to swallow the
London at the Landsdown Hotel Adams says: “The market is overbro- prices for in November. riskier investments they thought little of
kered. There is room for consolidation, But Adams says Altium has instead just four years ago. The City shall soon
Hobbies: Liverpool FC, tennis, running but there is not much of it about. It is firms.” tried to cover more of the mid cap area it find out whether this changes as the year
amazing how weaker houses can keep already occupies. Over the last two years progresses.
CITYA.M. 4 JANUARY 2011 News 13

Pessimism reigns but FTSE is set to disagree

months ahead I wondered if I should-
n’t jump in the DeLorean and fly
straight to 2012, just in time for the
Olympics.
It’s not all David Cameron’s fault
but he’s been leading from the front.
His New Year podcast was full of
warnings about the struggles we face
CNBC COMMENT as austerity begins to bite. In his
words this is when “a lot of the heavy
ROSS WESTGATE lifting” will be done.
The retailers are also on their
muters have woken up to inflation-
busting rises in rail fares and petrol
prices.
Homeowners, meanwhile, are met
with bearish forecasts for house
prices and warnings from the likes of
the CBI of big rate hikes to come.
Naturally, the FTSE being a dis-
count mechanism means this is all
priced in, except that we start 2011
with the FTSE 100 near 30-month
highs, just shy of the 6,000 mark it
nine per cent for the global giants
that make up the FSE 100..
So what’s going on? There’s always
a disconnect between the stock mar-
ket and the real economy and it’s
probably justified. As long as there is
some overall expansion, lean, fit
companies will deliver profit gains
and stock prices will be supported by
a pickup in mergers as firms look to
buy growth.
And despite all the doomsayers, I
lot to worry about but we know what
the risks are, and stocks are good at
climbing walls of worry.
Another conundrum rose over
New Year, and I fear it could take
much longer to work out. In the Back
to the Future series, Doc is always
warning Marty that to meet himself
in another time zone would have dis-
astrous consequences for the space
time continuum. But when I
watched the latest Star Trek film,

S
o hello and welcome to 2011.
On the first day of the year I
spent a few hours watching the
Back to the Future trilogy, and
having seen the predictions for the
annual Cassandra soapboxes. Raking
it in at the sales while telling us how
hard it’s going to be for consumers in
the future. Unions are talking tough
about strikes and protests, and com-
passed on Christmas Eve.
The FTSE 100 is not a UK index but
a global one. Remarkably, however,
the British mid caps of the FTSE 250
did even better, up 24 per cent versus
believe there’s a sense the economy
may well turn out better than every-
one fears. The forecasters were gener-
ally too pessimistic in 2010 and
probably are again in 2011. There is a
Spock met his younger self with no
consequences. Doc versus Spock –
where’s your money?
Ross Westgate is co-anchor of CNBC’s
Worldwide Exchange.

Next update
BEST OF THE BROKERS
ANALYSIS l Alterian ANALYSIS l Melrose Resources ANALYSIS l Micro Focus International
p 340 p 420 p
220
210.00 388.70

set to show
3 Jan 3 Jan
210
300 237.50 380
3 Jan
200
260
190 340

snow losses 180

4 Oct

ALTERIAN
22 Oct 11 Nov 1 Dec

Panmure Gordon’s latest “buy” rating for

21 Dec
220

4 Oct 22 Oct

MELROSE RESOURCES
11 Nov 1 Dec 21 Dec

Collins Stewart rates the oil and gas explo-

4 Oct 22 Oct 11 Nov

MICRO FOCUS INTERNATIONAL

1 Dec

Panmure Gordon rated the firm a “buy”

21 Dec

£7m advertising campaign. Analysts the marketing campaign management firm ration company a “buy” despite adverse ahead of the Christmas break. The compa-
▲

CONSUMER
BY MARION DAKERS
SEVERAL consumer bellwethers are
due to reveal Christmas trading fig-
ures this week, with Next, Domino’s
Pizza and Clinton Cards kicking off
the first reporting season of the year.
Clothing retailer Next is due to
reveal in a trading update on
Wednesday how snow disruption
and consumer spending pressures
have affected sales over the 24 weeks
at Numis have forecast a pre-tax prof- could stick, given the pace of the sector. share reaction after it failed to secure a ny’s shares had been oversold after the
it of £36.5m for 2010 on the back of
revenues of £185m. The broker notes several “nifty’” new prod- venture in Romania which saw its shares market was spooked by chairman Kevin
The pizza delivery firm has histor- ucts launched by the company as well as dive. Collins Stewart viewed the reaction Loosemore selling down a third of his hold-
ically fared well during periods of operational momentum, at a time when as “overdone” and valued the firm highly ing. The broker believes fears to be
bad weather, with jumps in sales in mergers and acquisitions in the marketing due to its “solid base of producing assets unfounded, as Loosemore had recently pur-
January 2010 and February 2009, software segment “continues apace”. and strong operating cash flow”. chased property.
according to analysts at Seymour
Pierce.
Clinton Cards is up next on To appear in Best of the Brokers email your research to notes@cityam.com
Thursday, with the high street greet-
ings card seller hoping to improve

Housing minister wants price stability

to Christmas Eve.
The firm said in September it
expected like-for-like retail sales to
shed between 1.5 and 4.5 per cent in
the second half of the year, pointing
to a steep rise in cotton prices as a
on the three per cent drop in like-for-
like sales reported in its November
interim statement.
Waitrose has already revealed its
Christmas sales figures were the best
ever, despite the icy weather. The
▲

catalyst for further drops in 2011.
The firm declined to comment yes-
terday on its performance over the
holidays. Analysts at UBS have pre-
dicted a 4.5 per cent decline in like-
for-like sales, while Seymour Pierce
has forecast a 3.3 per cent drop in
store sales.
Next has previously released guid-
ance predicting annual profit of
between £535m and £560m.
Also on Wednesday, pizza group
Domino’s is expected to announce a
strong fourth quarter following a
supermarket said December sales
rose 5.4 per cent on last year, with
strong demand for luxury Christmas
goods.
Parent company John Lewis has
said sales at its department stores
jumped 26.2 per cent in the first
week of its post-Christmas clearance
sale.
However, market research compa-
ny Synovate found that shopper
numbers between 22 and 26
December were down 6.1 per cent
this year.
PROPERTY
HOUSING minister Grant Shapps
said yesterday that unaffordable
house prices were “crazy”, and he
wanted to stabilise the market to
bring home-ownership within the
reach of more younger people.
“It’s crazy that we think in this
country it’s normal to have a situa-
tion where the most important
thing – a roof over somebody’s
head – is so unaffordable to such a
large number of our fellow citi-
zens,” he said in a radio interview.
Shapps said policies such as reg-
ulation of the mortgage market
and increasing the supply of new
houses could have an impact on
the market.
“Over the long term, it would
perhaps be desirable if house
prices didn’t do very much at all,”
he said. “Over a longer period of
time that would allow average
earnings to catch up and allow
housing to become a more afford-
able commodity.”
Shapps also said in a press inter-
view over the weekend that an
example of a “rational” market
would be one in which house
prices rose by two per cent a year,
while earnings rose by four per
cent.
Property prices have weakened
since late summer after a rebound
in late 2009, and the Royal
Institution of Chartered Surveyors
said in its housing forecast last
month that it expected prices to
remain broadly flat in 2011.

Simon set to sign £3bn loan to fund NEWS | IN BRIEF

Capital Shopping Centres takeover Gas leak hits Gulf of Mexico
An Exxon Mobil platform in the Gulf of
Mexico has been closed following a leak.
The “pinhole” leak in a fuel scrubber,
reported to the US National Response
Center yesterday, caused a mile-long
group Simon said last week it had November, in an attempt to frustrate sheen. About five gallons of natural gas
▲
gold jewellery to designated stores. Tesco
pledges on its website to pay £7.81 per
gram of nine carat gold. The move marks
a departure for the sale of scrap gold,
usually a market dominated by pawnbro-
kers, with Tesco becoming one of the
first mainstream retailers looking to

PROPERTY
BY MARION DAKERS
ALL EYES will be on US real estate firm
Simon Property this week as it signs
loan agreements to fund a formal bid
for UK mall owner Capital Shopping
Centres worth around £3bn.
Simon has until 12 January to for-
malise its 425p per share offer for the
FTSE 100-listed firm after the City”s
Takeover Panel issued a “put up or
shut up” notice last month.
America’s biggest retail property
agreed terms for a loan of around
£3bn with Citigroup, Deutsche Bank,
Goldman Sachs and Morgan Stanley.
The loan facility announced would
more than cover a bid at 425p per
share, excluding Simon’s existing 5.1
per cent stake, though the exact terms
of the loan are not finalised.
Analysts have previously voiced con-
cerns that a bid at the current price
would not be enough to persuade CSC
investors to sell their stakes.
Simon first approached Capital in
the firm’s £1.6bn deal to buy the
Trafford Centre near Manchester.
Simon has said it will not make a
deal unless the Trafford purchase
from Peel Holdings is scrapped, and it
has access to CSC’s books to undertake
due diligence. Capital has so far reject-
ed Simon’s requests.
Capital is due to hold a shareholder
meeting on 26 January to approve the
takeover of the Trafford Centre, after
delaying the vote in the wake of
Simon’s advances.
escaped, condensing in the Gulf. The leak profit from strong gold prices.
comes less than a month after the US
government announced it would sue BP Indian shares boosted by autos
over its involvement in the Deepwater Shares in the Indian market have been
Horizon disaster. trading 0.5 per cent up yesterday in a
strong start to 2011. The firm asian mar-
Tesco unveils cash for gold plans ket was boosted by car manufacturers
Supermarket giant Tesco has launched a who saw robust December sales. Tata
service allowing customers to swap Motors jumped 2.1 per cent after record-
unwanted gold jewellery for cash. The ing a 31 per cent increase in vehicle sales.
retailer had trialled the scheme online Leading utility vehicle maker Mahindra &
and in about 15 stores from November. Mahindra raced 2.2 per cent, thanks to a
Shoppers are now able to post unwanted 42 per cent rise in sales last month.
 14 News CITYA.M. 4 JANUARY 2011

City streetworks vital for business success

transport misery for people up and
down the country and unfortunate-
ly, at the risk of stating the obvious,
the weather is beyond our control.
We have worked hard to clear the
snow, but sub-zero temperatures
increase the likelihood of pipes
bursting. This increases the need for
CITY COMMENT additional streetworks on top of
what is happening, adding further
STUART FRASER to the public’s frustration when try-
ing to navigate our City roads.
International finance firms
demand that we keep pace with
technological change and want the
best available services – from inter-
net networks to basic utilities. So,
sadly, digging up the road is part of
keeping the City globally competi-
tive, particularly when the emerging
financial centres in Asia build in
technological excellence from the
very beginning.
If we fail to keep up then we will
ice deal than the next, and all enti-
tled to dig up the road to make sure
your firm gets it.
We try to get gas, water, electricity
and telecoms to work together but
it’s hard to do, not least because
working on water and electricity or
gas at the same time is not safe prac-
tice.
In just the 11 months from
January to the end of November,
5,346 permits were granted for the
realm.
So it really is a spaghetti night-
mare under our feet.
It is clear more forward planning
and information are needed. We are
working on a new real-time GPS map-
ping system to improve coordination,
but there will always be emergency
works that cannot be planned for.
Both utilities and the City have to
do better at planning works, but
street works are for the long-term

A
NYBODY who has ventured
out onto the Square Mile’s
streets knows the City’s micro-
climate – shaped by a so-called
urban heat island effect – has not
escaped the Arctic winter.
The freezing weather has caused
We are liaising with the other
agencies to minimise disruption but
solving the underlying issues in a
place like the City, which combines
ancient street design with modern
infrastructure needs, is far from sim-
ple.
lose our competitive edge, and our
increasingly globalised businesses.
For example, more than a third of
all streetworks relate to telecoms
and this reflects the choice and com-
petitiveness of the myriad of
providers, each offering a better serv-
City’s 53 kilometres of streets, some
100 per kilometre, or one every 10
metres if none of them overlapped
(which they often do). More than
three thousand were from utility
companies, with the rest for fixing
the street or improving the public
benefit of local businesses and resi-
dents. We can’t maintain a world-
class business environment by
standing still, even if the disruption
caused is frustrating.
Stuart Fraser is policy chairman at the
City of London Corporation

Travel group
NEWS | IN BRIEF
Intel woos Hollywood with chip
Intel's new microchips, touted as its
biggest-ever leap in processing power,

bosses gain include built-in content protection to

make it safer for Hollywood studios to
offer premium movies to consumers
over their personal computers. Time
Warner Inc’s Warner Bros Digital
Distribution and other studios plan to

after failure offer high-definition movies to con-

sumers whose computers use the chips,
code-named Sandy Bridge, at the same
time as they are released on DVD, said
Mooly Eden, Intel’s vice president.

Government unveils health plan

▲

LEISURE were brought together. The government has unveiled a £250m

BY RICHARD PARTINGTON
THE former finance director of
Europe’s largest tour operator has
pocketed a £757,000 share deal just
weeks after he stepped down over a
£117m black hole in the firm’s
accounts.
Paul Botwell, who exited TUI Travel
in October, gained from a share pay-
out to five senior directors amount-
ing to £4.9m on 30 December.
Chief executive Peter Long also
gained from the arrangement, which
comes on top of a £3m share payout
in February and in addition to salary,
cash bonuses and pension fund top-
ups.
The operator, which owns the
Thomson and First Choice brands,
said last night the deal was not linked
to financial performance this year,
instead forming part of a three-year
reward scheme relating to 2007 per-
formance.
Botwell, 42, left the company after
an IT error led to an accounting dis-
crepancy. The glitch came following
the firm’s acquisition of First Choice
in 2007, when two computer systems
Although the impact was initially
downplayed, the firm’s auditor KPMG
found £117m of “irrecoverable bal-
ances” lost in an accounting black
hole.
Yet a dispute between the opera-
tor and KPMG led to the two parting
ways, with PricewaterhouseCoopers
expected to take over following
TUI’s general meeting early next
month.
TUI moved to write off the amount,
which resulted in a reduction in prof-
it from £443m to £401m for the year
to 30 September 2009, with a further
£5m hit in the year to 30 September
2010.
ANALYSIS l TUI Travel
250 p
246.20
3Jan
230
210
4 Oct 22 Oct 11 Nov 1 Dec 21 Dec
industry-financed plan to promote
good eating under which millions of
people will receive vouchers offering
discounts on healthy foods. The coali-
tion government is promoting the
scheme as part of its Change4Life pro-
gramme, aimed at combating Britain’s
high obesity rate by encouraging peo-
ple to eat healthier food and exercise
more. Millions in England will get £50
worth of vouchers offering discounts
on foods such as low-fat yoghurts,
wholegrain rice, frozen vegetables, fruit
and alcohol-free lager.
Estonia swaps kroon for euro
The eurozone has gained another mem-
ber even as economists issue dire
warnings of further sovereign debt
crises to come. Estonia is now in a tran-
sition period, with euro becoming legal
tender on 1 January. Its national cur-
rency, the kroon, will cease to be
accepted on 15 January, with ban-
knotes being exchanged at all banks
with cash services during the
changeover period. The entry exchange
rate is 15.65 kroon to €1. Since July
last year, businesses have been display-
Peter Long, TUI Travel’s chief executive, gained from a share payout Picture: GETTY ing prices in both kroon and euros.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Juliet Samuel in association with

Barclays Corporate
Ian Gilmartin has been promoted to Barclays
Corporate’s retail and wholesale team as corpo-
rate director. He was formerly head of market-
ing services in the tech and media sector. In his
new job, he will be working with Richard Lowe,
head of the retail division, and will be adding to
his 16 years’ experience in corporate banking
and capital markets. He has previously worked
at Dresdner Kleinwort Benson and Allied Irish
Banks.
HSBC head of the bank’s commercial banking
Alan Keir has been appointed global business. The job is a promotion from
his previous role as head of European
commercial banking. He will now join
the HSBC Group’s management board
as a managing director. He will report
to Sandy Flockhart.
Keir’s appointment comes on the
back of his 19 years’ experience in
commercial banking. He began his
career with HSBC in 1981 on its gradu-
ate training programme and has
worked at the bank ever since, includ-
ing stints as a manager covering Asia.
He moved to work at HSBC’s global
head quarters in Canary Wharf in
2003.
Bank of Ireland
The bank has expanded its specialist
deposits services team with the
appointment of Sorcha Mulligan as a
relationship director.
In her new role, she will be reporting
to Benny Cribben, and will be responsi-
ble for serving new and existing cus-
tomers in London and the south.
Mulligan has formerly spent nine years
working at Allied Irish Bank.
Northpoint Printing
The financial and confidential docu-
ment printer has appointed Kathryn
Delevingne as its business development
manager. She has previous experience
in a similar role at Kantar World Panel,
a market research firm, and has also
worked for Thesis Asset Management.
Petropavlovsk
The Russian gold miner and FTSE 250
firm has appointed Alya Samokhvalova
as a new strategic director. She will
have a seat on the board and will chair
a new committee in charge of big-pic-
ture budget analysis and forecasts.
Samokhvalova is the company’s first
female executive director.

To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com
CITYA.M. 4 JANUARY 2011
Amazon plans
LoveFilm buy
for £200m
▲
TECHNOLOGY
BY JULIET SAMUEL
AMAZON is planning a buy-out of the
online DVD rental company LoveFilm,
which would value the firm at £200m.
The online retail giant already
owns 42 per cent of LoveFilm after a
deal in 2008 when it sold its DVD
rental arm to the company. The cost of
a buyout would therefore be around
£116m.
With reports suggesting that
LoveFilm chief executive Simon Calver
has begun planning an initial public
offering, a deal with Amazon could
pre-empt the float.
LoveFilm generates revenues by
allowing users to rent several DVDs
per month for a subscription fee: the
films requested are sent by post. It
also allows its customers to download
some films and recently struck a deal
with MGM to make the Hollywood
studio’s movies available to sub-
scribers.
Its revenues soared by a third to
£97m in 2009 and it boasts over 1.25m
News 15
Groupon nets
over $500m in
financing drive
TECHNOLOGY
▲
ONLINE coupon service Groupon is
more than half way to completing its
$1bn (£645m) funding drive, accord-
ing to a recent regulatory filing.
The Chicago-based firm has
secured more than $500m from
users across Europe. unnamed investors since walking
Aside from Amazon, its current away from a takeover offer from
major shareholders include Balderton Google in December, it said in papers
Capital, Arts Alliance Media, DFJ lodged with the US Securities and
Esprit and Index Ventures and it is Exchange Commission last week.
partnered with several other enter- Some of the proceeds will be used
tainment services such as Odeon to repurchase shares owned by direc-
Direct and Tesco DVD. tors, according to the filing.
Calver claims that the company’s Chief executive and founder
strategy is to expand its “hybrid Andrew Mason, alongside several
model” of renting out both physical board members, was named in the
DVDs through the mail and via down- filing, which did not specify which
load. board members were set to sell
Despite its success, LoveFilm’s rev- stakes.
enues will still be a drop in the ocean Groupon walked away from a
for Amazon, which generated global takeover offer from Google last
revenues of $7.6bn in the third quar- month, which was reported to be
ter of last year. worth as much as $6bn.
Amazon declined to comment. Groupon is a privately held compa-
ny that was launched two and a half
FAST FACTS | LOVEFILM years ago to send its members daily
e-mails containing discount
● Merged with Video Island in 2006. coupons. It now employs more than
● Has a presence in UK, Germany, Sweden, 1,000 staff and operates in 35 coun-
Norway and Denmark and rents out over 1m tries.
DVDs per week. Yahoo offered in the region of
● Based in Peterborough, UK. $3bn for Groupon in failed acquisi-
Simon Calver, chief executive of LoveFilm Picture: Alice Hepple/ CITY A.M tion talks in early 2010.
 Markets&Investment
16 CITYA.M. 4 JANUARY 2011

LONDON’S TOP 250

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 Group 328.50 -3.50 336.25 250 COBHAM 203.50 -0.25 276 192.25 John Wood Group 559 -1 560 293 RSA Insurance Grp 125.25 -1 136.50 114.75
3i Infrastructure 120 -0.50 125.25 101 Colt Telecom 137.75 8.50 142.50 109 Johnson Matthey 2038 -19 2100 1446 SABMiller 2256.50 -27.50 2306 1650
A.B. Foods 1181 -1 1182 820 Compass Group 581 -7 594 425 Jupiter Fund Man 300.50 -0.50 310 180.25 Sage Group 273.50 0 289 222
Aberdeen Asset.Man. 203 -0.50 205 112.75 Cookson Group 658.50 6 659.50 367.50 Kazakhmys 1614 -23 1638 965 Sainsbury (J) 376.25 -3.75 395 313
Admiral Group 1515 -7 1693 1114 Croda International 1616 20 1616 751 Kenmare Res. 32.75 -1.25 34 9.25 Schroders 1855 -20 1900 1116
Aegis Group 140.50 0 145.50 103.50 Daily Mail & Gen 574 2 574 423 Kesa Electricals 159.25 -0.75 174 99.25 Schroders NV 1458 -14 1502 929.50
Afren 147.50 2.25 147.50 79 Davis Service 436.50 4 441.25 360.25 Kingfisher 263.50 -1.25 267 198.50 Scot.& Sth. Energy 1225 -33 1258 1010
African Barrick Gold 611 0 670 503 De La Rue 819.50 -3.50 1005 549.50 Ladbrokes 122.75 0 162.75 122.75 Scottish Mortgage 708 7 709 475
Aggreko 1482 -14 1685 882 Debenhams 70.75 -1 80 53 Lancashire 553 0 647 435 SEGRO 286.50 -6 352 250.25
Alliance Trust 372.50 -0.75 377 293.50 Derwent London 1561 40 1605 1208 Land Securities 674 2 696.50 545 Serco Group 555.50 -15 651 494.25
Amec 1150 -5 1168 733.50 Diageo 1185 -15 1215 1000 Legal & General 96.75 -1 106.25 69.75 Severn Trent 1478 -16 1499 1072
Amlin 409 5.25 433 362.50 Dixons Retail 23 0 38 22.75 Lloyds Banking Grp 65.75 -1.25 77.50 46.50
Shaftesbury 448 9.75 460 349.25
Anglo American 3335.50 -50.50 3386 2254 Domino’s Pizza 551.50 -8.50 560.50 305.25 Logica 131 -0.75 148 101.75
Shire 1543 -16 1567 1220
Antofagasta 1612 -12 1634 761 Drax Group 368.25 -9 444 326.25 London Stock Ex. 838 -4.50 852.50 544
Aquarius Platinum 352 -1 458 227 DS Smith 202.25 -1.25 210 104 Lonmin 1966 -13 2157 1355 SIG 128.75 1.25 137.75 90.75
ARM Holdings 423.25 -6.75 440.25 183.50 Dunelm 510.50 -13 550 325.25 Man Group 296 -4.50 327.50 202 Smith & Nephew 676.50 -3 696.50 537.50
Ashmore Group 335 -4.25 383.75 218 easyJet 440 -0.50 496.50 348.50 Marks & Spencer 369 -4.25 427.50 323.50 Smiths Group 1245 -13 1285 995.50
Ashtead Group 173 -1 177 77 Edin.Inv.Tst. 454 -2.50 464.25 364 Meggitt 370 -0.50 375.50 251.50 Soco International 369.50 0.25 484.25 292
AstraZeneca 2922 -44 3385 2732 Electrocomponents 265.75 -2 279.50 163.75 Melrose 311 1 312 162 Spectris 1311 -5 1326 735
Atkins (WS) 700.50 -4.50 792.50 556.50 Enquest 139.50 0.50 146.50 89.25 Mercantile Inv Tst 1085 4 1096 828 Spirax-Sarco 1934 1 1987 1224
Autonomy 1505 -29 1975 1271 Essar Energy 580 -1.50 589.50 383 Michael Page 555 -2 565.50 346.50 Spirent 147.75 -0.25 160.25 102.75
Aveva Group 1614 8 1614 1007 Eurasian Nat Res 1048 -5 1266 818 Micro Focus 388.75 1.50 546.50 276 Sports Direct 160.25 -1.25 162 92.25
Aviva 393 0.25 423.50 294.25 Euromoney Inst. 692 5 727 438.50 Millennium & Cop. 590.50 17.50 590.50 368.50 St James’s Place 265.75 -7.25 292 204.25
AZ Electronic Materials SA (WI)310 0 310 249 Experian Group 798 -4.50 819 572 Misys 343 3.75 343 201.50 Stagecoach Group 212.25 -1.75 224 160.75
Babcock International 571 3 635 492.75 Ferrexpo 416 1.25 416 197 Mitchells & Butlers 350 0 360 247.50 Standard Chartered 1725.50 -24 1950 1351.75
BAE Systems 330 -0.75 388.75 294.75 FirstGroup 398.25 1.50 424 336 Mitie Group 234.25 1 241 188.75 Standard Life 216 0 236 173
Balfour Beatty 313 -2.50 317.75 229.75 For.&Col.Inv.Tst 309.50 -0.75 311 251.50 Mondi 513.50 -4.50 557.50 338.25 Supergroup 1297 21 1638 535
Barclays 261.75 -2.75 383.25 255.25 Fresnillo 1668 7 1668 669.50 Monks Inv.tst. 356.50 1 363 271 TalkTalk 160 -0.75 168.25 108.50
Barratt Development 88.75 -1.25 142 70 G4S 254.50 -4.75 283.50 237.75 Morrison (Wm) 267.50 0.25 306.25 257.50 Talvivaara Mining 595.50 -14.50 610 342.50
BBA Aviation 221.50 0.50 221.50 158 Genesis E.m.f. 554 2.50 556.50 399 Murray Int.Tst 941 -5 957.50 736.50 Tate & Lyle 518 -0.50 544.50 388.75
Bellway 670 14.50 826 511 GKN 222.25 0.50 226 102 National Express 251 3 259.50 194 Taylor Wimpey 31.50 0.25 44 22.25
Berkeley Grp Hldgs 890 -10.50 932.50 742 GlaxoSmithKline 1240 -19 1339.50 1095 National Grid 553 -11.50 613.25 484.25 Telecity Group 470.50 5.50 532.50 360
Betfair Group 964 -6 1550 964 Great Portland Est. 360.75 5.50 364 279 Next 1975 -19 2344 1817 Templeton Emrg. 673.50 3.50 685 471.50
BG Group 1296 -24 1337.50 984 Greene King 479.50 1.25 491.50 376.25 Northumbrian Water 331 -3 361.50 252.75 Tesco 425 -4.50 454.50 377.50
BHP Billiton 2551 -63 2616 1684.50 Halfords Group 457 -2.75 550 372.75 Ocado Group 178.25 7 178.25 123.50 Thomas Cook Group 189.75 -2.50 272 171.75
BlackRock Mining 811 3 811 492 Halma 359 0 366.50 223 Old Mutual 123 -0.50 145.25 97.25 Travis Perkins 1058 24 1058 664.50
BlueCrest AllBlue 170 2.75 174.50 156.25 Hammerson 417.25 -2.75 434.50 336.25 PartyGaming 205.50 -4 334.50 205.25
TUI Travel 246.25 -1 308.50 190
Booker Group 60.25 0 60.50 38.75 Hargreaves Lansdown 586 -3.50 595 276.50 Pearson 1008 -7 1051 855
BP 465.50 -5.75 655.50 303 Hays 129 -3 131.75 88.50 Pennon Group 640 -1 646 483 Tullett Prebon 382.75 0 417.25 262
Brit Insurance 1042 1 1045 728 Henderson Group 135.50 -1 151.75 112.75 Persimmon 416.75 -8.25 507.50 336.50 Tullow Oil 1261 -22 1369 991.50
British Airways 272.50 -1.25 286 184.25 Heritage Oil 448.75 0.75 581 296.75 Petrofac 1587 -14 1601 876.50 UK Commercial Prop 82.25 -0.75 85 72.75
British Amer.Tob 2463.50 -29 2521 1959 Hikma 811.50 0 829.50 514 Petropavlovsk 1144 0 1365 852 Ultra Electronics 1696 -20 1895 1265
British Empire Tst 486 -6 500.50 396.50 Hiscox 381.50 3.75 381.50 320.75 Phoenix Group Hldgs 611 2 758 557.50 Unilever 1963 -23 1997 1688
British Land 524.50 -7 537 418.25 Hochschild Mining 640 -5 658 234 Premier Farnell 287 0 304.50 173 United Utilities 592 -7.50 628.50 488.25
Britvic 473.25 -4.50 518 398 Home Retail Group 188.50 -3 295.50 188.50 Premier Oil 1950 -8 1980 1017 Utd Business Media 690 -2.50 692.50 409.75
Brown (N.) Group 298.25 0.50 301.75 206.50 Homeserve 443.25 -6.75 487.50 326.25 Provident Financial 874 -4.50 974 728.50 Vedanta 2517 -42 2934 1839
BSkyB 736 0 746.50 524.50 HSBC Holdings 651 -7.25 740.50 596.25 Prudential 668 0 681 487.50 Victrex 1483 -7 1522 806
BT Group 180.75 -2.75 187.75 110 Hunting 731 1.50 733 439.50 PZ Cussons 400.75 3.50 409 234.75 Vodafone Group 165.75 -1.25 175 129.50
Bunzl 719 -11 777 616.50 ICAP 535 6.50 539.50 294 QinetiQ Group 130 0.25 167 96.75 Weir Group 1780 4 1861 735.50
Burberry Group 1124 -12 1156 581 IG Group 510 2.50 553 362.50 Randgold Res 5275 -40 6655 4209 Wellstream Holdings 790 -3 793.50 436
C&W Comms 48.50 0 63.75 44.25 Imagination Tech 360.50 -3 441.75 215 RDS ‘A’ 2138.50 -15.50 2154 1624 WH Smith 487 -1.75 523 398.25
C&W Worlwide 65.75 -2.50 100 60.50 IMI 945 5 948 530.50 RDS ‘B’ 2115 -19.50 2140 1554 Whitbread 1790 -24 1825 1266
Cairn Energy 420 -2.75 493.25 318.25 Imperial Tobacco 1968 -21 2154 1753 Reckitt Benckiser 3525 -51 3655 3037 William Hill 170.75 -1.25 216.50 155.50
Caledonia Inv. 1900 3 1910 1512 Inchcape 356.50 4 368 237 Reed Elsevier 541.50 3 563 460.50 Witan Inv Trust 516.50 0.50 517 410
Capita Group 696.50 -11 826 635.50 Informa 407.50 -7.50 448 304.50 Regus 86.25 -0.25 120 66 WOLSELEY 2046 -5 2051 1223
Capital & Counties 150.75 2 157 100 Inmarsat 673.50 6.50 821 606.50 Renishaw 1230 -22 1306 548 WPP Group 789.50 -5.50 795 572.50
Capital Shop Centre 417.50 -3.50 421.25 301 InterContinental Htl 1243 -18 1266 887 Rentokil Initial 97 -1 138.50 87.75 Xstrata 1505.50 -29.50 1535 845.75
Carillion 384.50 -0.75 386 273 Intermediate Cap.Grp 333 -1.75 351 240.50 Resolution 234 -3 346 211.25
Carnival 2982 -20 3059 2037 International Pers Fin 384 3 385 183.25 Rexam 332.75 -3 346.75 276.50
Catlin Group 370 0 393 320 International Power 437.50 -4.50 448.50 284.50 Rightmove 779 -10 810 500.50 LONDON TOP 250 BY MARKET CAPITALISATION
Centamin Egypt 176.50 -0.75 197 106.75 Intertek Group 1775 -18 2000 1150 Rio Tinto 4486.50 -97.50 4584 2812
Centrica 331.50 -2.75 346 264 Invensys 354.25 -3.75 360.50 230.25 RIT Capital Partners 1199 -7 1250 971.50
POWERED BY
Charter 844.50 4.50 848.50 567 Investec 527 -1.50 562 417.75 Rolls-Royce Group 623 -12.50 654.50 473.50
Chemring Group 2904 8 3663 2598 ITV 70 -1.50 74.25 48.25 Rotork 1828 15 1895 1214 www.digitallook.com
Close Brothers 851.50 -3 862.50 664 Jardine Lloyd 629 10 629 459 Royal Bank of Scot 39 -0.50 58 31.25

UK stocks will start the new year with a bang

was closed is expected to give a strong highs yesterday – suggests the move ANALYSIS l FTSE
MARTIN ON boost to the market this morning. higher will have some legs. 6,100 5,899.94
3 Jan

THEMARKETS
6,000
STRONG MARKET BOOST EXPECTED HIGH ENERGY PRICES A CONCERN
GFT is quoting the FTSE 100 index to Nevertheless stubbornly high energy 5,900
open up 75 points from Friday’s prices are likely in the longer term to 5,800
lunchtime close, at a level of 5,975. add to inflationary concerns and will
The UK index is set to follow in the surely be a major focus for traders 5,700
wake of other major European throughout 2011. 5,600
indices which were open yesterday
also joined in the festive cheer, mak- Martin Slaney is GFT’s director of global 4 Oct 22 Oct 11 Nov 1 Dec 21 Dec
ing similarly impressive gains, closing dealing operations.
up as much as 2.5 per cent on the day. ANALYSIS l DAX 6,989.74
7,200 3 Jan
AN OVERALL SENSE OF OPTIMISM 7,000
An overall sense of optimism seems
MARTIN SLANEY set to prevail as we kick off the new
year on this positive note, with
6,800

6,600
investors betting on an all-round

A
n improved economic outlook stronger global economic recovery. 6,400
for the US following manufac- The fact that this bullishness 6,200
turing data released yesterday comes in spite of oil fast approaching
while trading on UK shares $100 barrel – WTI crude hit two-year 4 Oct 22 Oct 11 Nov 1 Dec 21 Dec

WALL STREET
at its highest in nearly 10 years, but “January effect” when fund managers The Dow Jones industrial average S&P 500 is up on the first trading day

U
S stocks greeted the new year some investors think caution may be are no longer engaged in year-end gained 93.24 points, or 0.81 per cent, of the year, it ends the year higher 74
with a rally yesterday as encour- warranted in the short term. window dressing and instead focus to 11,670.75. The Standard & Poor’s per cent of the time, with an average
aging signs about the outlook Financials led the way higher after on stocks they find attractive. 500 Index rose 14.23 points, or 1.13 annual gain of 10.6 per cent, accord-
for manufacturing around the underperforming the market last “There is a lot of money in cash, a per cent, to 1,271.87. The Nasdaq ing to Birinyi Associates in Stamford,
world prompted investors to inject year. Bank of America jumped 6.4 per lot of money in bonds that would like Composite Index climbed 38.65 Connecticut.
new money into the market. cent to $14.19 after it agreed to pay out of bonds, and it’s only natural points, or 1.46 per cent, to 2,691.52. If stocks end the month of January
Data from the United States, $2.8bn to mortgage finance giants with the economic improvement it’s Analysts said that, historically, a higher, then 73 per cent of the time
Europe and China set the tone, help- Fannie Mae and Freddie Mac to settle finding its way to equities,” said strong first day bodes well for the the index rises for the year, based on
ing the Dow and S&P reach new two- claims over soured mortgages. Stephen Massocca, managing director market’s performance for the year. data since 1929, Howard Silverblatt,
year highs and the Nasdaq 100 closed Overall, stocks got a boost from the at Wedbush Morgan in San Francisco. Based on data since 1945, if the an analyst at Standard & Poor’s, said.
CITYA.M. 4 JANUARY 2011 Investment | Spread Betting 17

Spread betting
vs. contracts
for difference
Daniel Knowles explains the questions to bear
in mind when looking at derivatives trading

T
HE new year is underfoot, and with
European sovereign debt still look-
ing problematic, Chinese inflation
sky high and the Federal Reserve
still emptying a bathtub of money onto
the world, it is looking to be at least as
interesting a year as 2010.
For ordinary investors, volatility is not
very much fun. Most people are quite risk
averse and don’t enjoy seeing their stock
portfolio collapse in value one day, even if
it does zoom back up again on the next.
But one peculiar tribe of investors loves
volatility.
They are a disparate bunch. Some
reside in gleaming hedge fund buildings
in the West End, while others lurk in dark
bedrooms, but they are all brought
together by their use of contracts for dif-
ference (CFD) and spread betting to make
a profit whether prices are going up or
down. If you’re considering joining the
group, you may want to know the differ-
ence between the two trading systems.
CFDs and spread betting are very simi-
lar. They’re both derivative products,
so investors don’t own the underlying
product.
Many providers now offer both. The
most important difference is in taxation.
Spread betting is legally considered to be
gambling, and so winnings are exempt
from capital gains tax. On CFDs, it is
payable, but losses can also be written off
against profits made elsewhere.
According to Angus Campbell, of
Capital Spreads, that is important. “For
beginner investors quite new to trading,
spread betting is the better option,
because it’s practically the same and you
don’t have to worry about tax.” CFDs how-
ever are “better for more sophisticated
investors, who might be using them for
hedging or other purposes”.
Which product is appropriate to who is
thus highly dependent on your tax status.
If you have a large stock portfolio
already, and you want to use derivatives
to hedge against unexpected movements,
then you will probably want to use CFDs,
since you will be able to write off your
losses on one side against your profits on
the other.
If, however, you are more keen to trade
simply to make a profit on speculating,
spread betting makes more sense –
although, as Campbell warns, “more
clients lose than make a profit” with
spread betting overall, so though no one
will enter the market planning to get
poorer, the apparent disadvantages of
CFD trading could prove to be a boon.
Another reason to spread bet, however,
is currency risk. If you are trading CFDs,
you are exposed to any currency risk on
shares or assets denominated in anything
other than sterling, which can be diffi-
cult to mitigate. With spread betting,
positions are all placed in sterling and
adjust per point, and so even when trad-
ing on foreign equities, currency risk is
not an issue.
Spread betting and CFD trading are
both highly risky, derivative investments.
Traders are not holding the underlying Join the professionals chance to do what hedge funds and large is probably the better alternative to CFD
shares, and the chance to leverage up is trading on financial banks do every day – use derivatives to trading, but it all depends on your indi-
impressive – the typical margin require- markets hedge larger investments and to specu- vidual circumstances. With another year
ment on a CFD account is around 5 to 10 Picture: late on price moves and to try to get an of tumult looking likely in most financial
per cent of your total exposure. Micha Theiner edge on the market. markets, however, there seems no better
That said, both offer retail investors the /City A.M. For most retail investors, spread betting time to try one of the two.

THE MONTH AHEAD in association with

COMPANY NEWS ECONOMICS NEWS MARKET NEWS POLITICAL NEWS

l International seed and fertiliser company
Monsanto publishes its first-quarter earnings on
Thursday.
l Spread betting company IG Group publishes its
interim results on 18 January.
l AstraZeneca, BSkyB, Charles Stanley and
Vedanta Resources all publish earnings announce-
ments on 27 January.
l Aluminium producer Alcoa traditionally kicks off
the US’s fourth-quarter earnings season, publishing
its results on 11 January. The following week is the
real US earnings season.
Picture: GETTY
l The Federal Open Markets Committee publishes
the minutes of its last 2010 meeting tonight while
non-farm payrolls are out at lunchtime on Friday.
l Markit this week publishes its purchasing man-
agers’ indices for the UK and the Eurozone, follow-
ing yesterday’s US ISM. This will give some further
idea of how the recovery will hold up in early 2011.
l Halifax house price index for December will be
announced this week; the expectation is for a fall of
about 0.7 per cent.
l Third quarter GDP for the Eurozone will be pub-
lished on Friday 7 January.
Picture: Micha Theiner/City A.M.
l The Japanese stock market is traditionally closed
on the second Monday of January for the country’s
Coming of Age holiday.
l On 17 January, the New York Stock Exchange is
shut for Martin Luther King, Jr Day.
l The World Economic Forum starts on 26
January and runs until 30 January. It is to be held
as usual in Davos and will discuss the theme:
Shared Norms for the New Reality.
l The impact of the Federal Reserve’s QE on the
markets may be clearer following the FOMC’s
meeting on 25-26 January.
l France takes over the rotating presidency of the
G20 in 2011 while Hungary is president of the
European Council for the first six months of the
year.
l The House of Commons will not be sitting this
week due to the Christmas recess. It will return on
Monday 10 January.
l Tomorrow the US House of Representatives con-
venes for the 111th Congress, 2nd session.
l Estonia will have become the 17th country to join
the Eurozone on 1 January 2011. There will be a
dual circulation period of two weeks.

Picture: GETTY

Picture: GETTY
 18 Investment | Contracts for Difference CITYA.M. 4 JANUARY 2011

BMW: roaring with

STOCKS MUST efficiency

Picture: GETTY

NOT RELY ON
QE STIMULUS
DAVID MORRISON
CFD MARKET STRATEGIST, GFT

A
S WE head into the new year, there are
a number of significant financial and
economic issues still unresolved. The
most immediate problem is the
European debt crisis. The potential insolvency
of many banks and the high levels of public
debt of many member states will continue to
weigh on the Eurozone. The inability of govern-
ments and the European Central Bank (ECB) to
agree on a plan of action should ensure insta-
bility for the first half of 2011 at least.
Emerging markets continue to enjoy
growth rates that developed economies can
only dream about, but inflation is showing up
to an alarming degree. There is every chance
that we will see an escalation in the currency
wars that Brazil’s finance minister warned
about back in September. Last month’s
Chinese inflation data caused investors to pre-

Top stock picks for 2011

pare for lending curbs or rate rises. China
blames these inflationary pressures on the US
Fed’s appetite for quantitative easing (QE),
while US policymakers still blame China’s cur-
rency peg for the US trade deficit. This has
seen the Shanghai Composite lose 11 per cent
since the start of the year, in contrast to 10
per cent gains in the Dow and the S&P. hint of a gamble. “This time next year, Europe and Russia offers interesting long-
At the beginning of last year, speculation Here are 10 shares equities just won’t look as attractive,” he term growth prospects while French luxu-
focused on when the US Federal Reserve says. ry goods group LVMH has exposure to the
would begin to wind down its quantitative
easing programme. Now, QE-lite and QE2 con-
which are tipped to His top 10 European stocks are mostly
listed in north European markets, reflect-
fast-growing Chinese and Asian high-end
goods market through a diverse set of pre-
tinue to goose asset prices on a daily basis.
QE2 is due to run out in June, but speculation
outperform this year, ing his belief that the peripheral markets
will fare relatively badly. However, Banco
mium brands.
Quinn also favours two miners, Xstrata
is rife that QE3 is on the cards. There has
been an improvement on a number of eco-
writes Jessica Mead Santander and Telefonica both make the
cut. In terms of the former, Quinn points
and Rio Tinto, and two energy service
companies, Paris-listed Vallourec and
nomic measures, but the jobless rate still out: “Fears about the Spanish banking London’s Amec.
stands at 9.8 per cent, while the housing mar- market are more than priced in, especially He says he has focused on companies

ket continues to deteriorate.
If these key metrics fail to improve signifi-
cantly over the next quarter, the argument
for further stimulus gets stronger. But the
new Congress may be less willing to add to
the US’s debt so more intervention cannot be
relied on. For investors who see QE as a back-
stop for equities, the next few months may
necessitate a reassessment. Happy New Year!
T
RADING individual equities is
always a risky business for contracts
for difference (CFD) traders. An ill-
considered, poorly executed trade
will leave your fingers severely burnt and
your account balance in the red. But get it
right and you’re on track to rake in the
profits.
Even though equity strategists are cau-
tiously optimistic about the prospects for
the FTSE 100 and the European markets
this year – with many expecting upside of
about 10 to 15 per cent – some are tipping
individual stocks destined to outperform
the wider index.
Robert Quinn, chief European equity
strategist at Standard and Poor’s (S&P)
Equity Research, says that equities are
only worth investing in when there’s a
given the bank’s higher exposure to Latin
America.” And the same applies to Spanish
telecoms group Telefonica, which is less of
a Spanish/European story than most
investors appreciate, according to Quinn.
Furthermore, he says: “The attractive valu-
ation is leading to an estimated dividend
yield of more than 8 per cent in 2011.
Perhaps more importantly, this yield is
well supported and could increase further
in 2012.”
Quinn has also plumped for Credit
Suisse, which in his view is probably one
of the most profitable diversified finan-
cials and it has lagged both Deutsche Bank
and UBS for no real reason.
Emerging market exposure is also a cru-
cial feature of any single stock. Danish-list-
ed brewer Carlsberg’s exposure to Eastern
with high margins, such as German car
manufacturer BMW, which has benefited
from recent higher investments in fuel
efficiency relative to luxury peers. But be
aware that the stock had already done
well in 2010, so traders might be tempted
to take some profits in the early part of
this year.
While not all of these stocks may come
through this year and make a profit for
CFD traders, you can use these single
stocks to hedge your physical share posi-
tions or to amplify the effects of a long
index trade. However you choose to trade,
it is clear that seeking out companies with
emerging market exposure, strong bal-
ance sheets and income potential as well
as those that lagged their peers last year is
the right way to approach this year.

SAYING YOU HAVE THE

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IS LIKE BRAGGING BECAUSE YOU HAVE A BELLY BUTTON.
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 Who next?
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European debt crisis, you should consider
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*Investment Trends 2010 UK Spread Betting/CFD Report.

 Lifestyle
20
| Travel
Four of the best
resorts for a wild
and wicked break
We gave you the best resorts for families in December. Here
Daniel Knowles brings you the four best for skiing and revelry
BEST FOR CRAZY PEOPLE
REVELSTOKE, CANADA
ANT to go somewhere genuinely new and yet nonethe-
W less outrageously awesome? Try Revelstoke. Deep in
the Canadian Selkirks, this remarkable resort only
opened in Winter 2007. It is still, partially, a work in progress,
but when it’s complete, it will be North America’s largest ski
area, with a colossal 10,000 acres of skiable terrain.
Currently, there are three thousand acres open, which isn’t bad
in itself. And what acres! Located near to the famously ava-
lanche-prone Roger’s Pass, Revelstoke gets a phenomenal 12
metres of snow every year – more than any other large resort in
the Western world. If you like big mountains, huge open powder
bowls and expanses of deep, untouched, superbly dry and fluffy
snow, you should go to Revelstoke. Go now. Get hold of some
great big fat skis and fly out, because there is probably nowhere
better in the world for off-piste skiing.
Uniquely, the resort also owns local heli-ski and snowcat oper-
ations (where skiers are taken to inaccessible zones by the
tracked vehicles more usually used for piste bashing). Both are
based minutes from the lifts, meaning that you can combine a
world class heli-ski trip with resort skiing or cat skiing.
That ought to be a welcome innovation, given that ordinarily,
heli-skiing can mean expensive days spent playing Monopoly
while you wait for the clouds to clear.
The best place to stay at the moment is probably the Nelson
Lodge, a shiny new, traditional-style hotel at the base of the ski
area – the only hotel with ski in, ski out access. Closer to the
main town, the Hillcrest is also well recommended.
There are also enough decent restaurants and bars around to
keep you satisfied. Manning’s restaurant is a particularly good
bet – an authentically Canadian bar to kick back in, have a beer
and watch the ice hockey. Other places worth trying include the
Woolsey Creek Café or the Kawakubo if you fancy some sushi.
But don’t hang around too long, because the lifts start running at
8:30 and you will want to be on the first one. Let’s get this
straight – Revelstoke is a resort for passionate skiers. It is not a
place for snowy shopping and vin chaud drinking. Nor, unfortu-
nately, is it easy to get to – the resort is a five hour drive away
from Calgary, itself an eight hour flight away. But if skiing fresh
powder every day amid hibernating grizzly bears appeals to you,
it is well worth the effort.
CITYA.M. 4 JANUARY 2011
BEST FOR APRES
ST ANTON, AUSTRIA
IKE dancing on tables in your ski boots while chugging Stroh
L 80 mountain rum and jagerbombs? Try St Anton. There is
something about Austria and après ski drinking that is really
quite wonderful. Where else, after an excellent days skiing, can
you find yourself surrounded by pretty blonde girls and unkempt
snowboarders singing “ich bin ein Icelander” at the top of their
voices? At four o’clock in the afternoon? Nowhere, that’s where.
The best place to start is probably the Mooserwirt Bar. Situated
a good 500 metres up the mountain, you will inevitably be drawn
to its big open deck on your afternoon run down, especially if it’s
sunny. Get there early and watch as it slowly fills up with young
Austrians in racing gear so attracted to cheesy euro-pop that they
seem to be practically pulled in off the slopes as though by
gravity.
When the party hits its peak, usually at around five or six, you
will need impressive self control not to get carried away. The
night is young, and you don’t want to hit closing time only to real-
ize you’ve lost your skis and you’re still half way up a mountain. TIPS FOR SKIING
If you make it down the mountain in one piece, the next place
to go is the Kandahar, where people still in their ski gear will be WITH MATES:
dancing well into the early hours. You may also want to try out
Scotty’s bar, which tends to attract a quite British crowd of sea- .
son workers, ski instructors and the like. You can then pick up a
pizza at Rosanna’s next door before going to Bar Cuba for the
evening – if you’re still standing.
1 Make sure you’re going with at least one person of
approximately your ability. There is nothing more frus-
trating than having to spend all day skiing blue runs because
Of course, to justify après, you need the main event, so knock you didn’t bring along anyone willing to use a transceiver.
back a few aspirins and go up the mountain, because you won’t Except possibly being left floundering on the bunny slopes
want to miss out on the skiing. St Anton is part of the Ski-Alberg when all of your friends go in search of powder.
ski area which also includes Lech and Zurs, and it offers quite vast
and mixed terrain for keen skiers to explore. .
The number of beginner-friendly runs is rather limited, but if
you are quite adventurous, it is worth getting a guide for a day or
two, not least because the best off-piste from the Valluga summit
2 Never offer to teach someone to ski. Not your friends,
not your siblings and definitely not your other half. Not
only will you lose half your holiday to being an instructor,
is only accessible to those skiing with a professional. Lech also has learning to ski is painful and you will get the blame when your
a reasonable-sized snow park for those keen to pull a few spins. pupil falls over badly or gives up in a huff. If you have begin-
St Anton is located in the Austrian Tyrol, one of the prettiest ners going, tell them to get an instructor.
bits of the Alps. To get there, it is easiest to fly to Innsbruck and
then take a direct train to the centre (about 90 minutes). .
Alternatively, you can fly to Friedrichshafen or Zurich and get a
shuttle bus or a train respectively. 3 If you own your own gear, be careful when booking
flights. Ryanair charges an astonishing £40 each way to
 CITYA.M. 4 JANUARY 2011
carry your skis – or £50 if you don’t book the carriage online.
Swissair will take your skis for free, as will BA, but only if
your total weight allowance doesn’t exceed 20 kilos. If you’re
a snowboarder, consider buying a single bag which will carry
all of your gear and clothes in one.
. want a more authentically Japanese night
4 Take the right gear. If you’re going skiing in December or
January, you will want lots of layers, including leggings
and icky looking thermal tops. You should also take goggles,
because there are few things worse than skiing in a blizzard
in sunglasses. Of course, if you’re planning a trip for late
March, take a light jacket, wrap around sunnies and be ready
to drink the sunshine in.
. unfortunately. You have to fly from Tokyo
5 Get insured. Many standard travel policies won’t cover
you properly if you want to ski off-piste or in the snow-
park, while many will have outrageous excesses or limitations.
If you’re quite adventurous, it is worth spending a few pounds
more to be secure. Unfortunately, none of the policies City
A.M could find cover you for injuries incurred while dancing
on a table drinking Jagerbombs, so also don’t be an idiot.
BEST FOR THE
CULTURALLY
ADVENTUROUS
NISEKO, JAPAN
HEN you tell people you’re going
W skiing in Japan, many will look
quizzically at you and wonder
why, when the Alps are a mere few hours
away, you would go to Japan to ski.
Unless that is, they are very keen skiers.
Over the last few years, extreme skiers
and snowboarders have been drawn to
Hokkaido – Japan’s northernmost island -
like pilgrims to Mecca. Why? Well, try
bottomless powder every day. Most
French resorts manage about five metres
of snow a season. The biggest and most
famous Japanese resort – Niseko - gets
closer to 15.
That’s not the only reason you would
want to go though. Skiing in Niseko is com-
pletely unlike skiing anywhere in Europe.
When you get off the wonderfully old
school gondola, you will be faced with the
distinctly Fuji like Mt Yotei directly oppo-
site, which you will probably stare at for a
while before dropping down to ski through
a forest of gorgeous shirabaka trees.
On a good day, you might get to see a
Japanese corporate outing of tens of awk-
ward looking salarymen dressed in identical
snow gear.
Probably the most distinctive skiing is to
be had in the evenings when the runs are lit
up by floodlights, but there are other things
to do then as well. The best place to stay to
ski the Niseko area is the resort town of
Hirafu, a buzzing hive of bars and restau-
rants staffed by an odd mix of Japanese
and Australians.
Bar Burunba is a good place to get a
Sapporo beer and chill out, while if you
out, the Alpen hotel has a karaoke room, as
well as vending machines that sell beer in
the lobby. For food, the town has an excel-
lent collection of Japanese restaurants,
though when you are on the mountain,
stick exclusively to the Lookout Café for
excellent katsu curries.
Getting to Niseko is a bit of a chore
or Osaka to Sapporo, and then a train from
there, making for a very long direct trip. For
that reason, it is probably best to combine a
ski trip with a longer trip to the rest of
Japan. If you have the time though, and the
money, Niseko offers a very different sort of
ski trip – mostly in a good way.
21
SKI NOTES |
by Zoe Strimpel
The Dolder Grand.
Dolder’ s pre and post ski
Zurich’s luxurious gateway to the Alps, the
Dolder Grand, is offering a host of pre and post
ski treatments, designed to limber you up and
to soothe your aching joints. Strengthening
programmes inlcude Prepare your Pins, which
STILL THE focuses on knees, hips and calf muscles, while
BEST FOR soothers include La Prairie’s Face the Elements
facial and Rest and Repair: with full use of the
EVERYTHING, enormous spa and a sports massage.
Treatments from £120; rooms from £540 per
VAL D’ISERE, FRANCE night. www.thedoldergrand.com
DVENTURE is good, but
A sometimes, you will want
somewhere reliable, conven-
ient and amazing to ski every year
without ever getting bored. Val
d’Isere is just that resort. It has
everything, from attractive old-
school chalets to big, functional
hotel blocks, world class off-piste
to a huge snow park and quiet
hotel bars to fantastically crazy (if
overpriced) nightspots. And that’s
before you even try Tignes, the
other half of the expansive Espace
Killy area, which covers nearly
25,000 acres of snowfields. Saint Bernard de Menthon, host of Classicaval.
If you are going with friends of a
mixed abilities, Val d’Isere is perfect.
Total beginners can learn without
forking out for a lift pass on five
Classical music festival
free lifts at the bottom, while when
they get a little better, there are
at Val D’Isere
It’s known for its brilliant skiing and après, but
100 blue and red runs to zip around, this season Val d’Isère can add culture to its
all served by unusually comfortable assets. If you’re hitting the resort and like clas-
and quick lifts. sical music, don’t miss the Classicaval Festival,
For experts, there are some held in the beautiful baroque church of Saint
incredibly tough black runs, includ- Bernard de Menthon. Attracting international
ing the famous Double M, while the classical stars and music lovers, the festival has
off-piste is simply splendid, and with a distinguished programme. 18-20 Jan and 15-
much of the resort above the 2,000 17 March. www.valdisere.com
metre level, exceptionally reliable
too. When the snow is falling, you
can have an excellent day just lap-
ping the Pyramides chair above le
Fornet trying out small cliff drops.
And though the nightlife is not
quite as crazy at St Anton, it is still
damned good. Resort veterans hang
out in the (very British) Dick’s Tea
Bar, which has just been refurbished
this year. Among other things, you
can now order a ski boot full of
booze. Other places worth checking
out are Café Face, which has the
cheapest beer in the resort, and the
Moris Pub, which gets a few good
lives acts. Four Seasons Jackson Hole, Wyoming.
Getting there is easy – you can fly
to Geneva, Lyon or Chambery or
else get a train from Paris to Bourg
St Maurice and get a transfer from
Ticket to the Tetons
True skiers appreciate having the performance
there. Accommodation is also varied of custom-built skis on the slopes and their
and can be found relatively inexpen- creature comforts off the slopes. This package
sively, especially if you can ski in the
low (non-half term) season – the
youth hostel is a particularly cheap
offers one pair of custom-built Igneous skis
and Look Pivot bindings, a three-day lift ticket
to Jackson Hole Mountain Resort and a full-
option. Be careful though – plan day private guide. Combine this with the luxu-
badly and all your careful austerity ry of this elegant rustic ski-in/ski-out hotel
will disappear very quickly on two and you’ve got a perfect holiday in Wyoming’s
or three mountain lunches. spectacular Teton Mountains. From $2,490
for four nights. www.fourseasons.com
/jacksonhole.
 22 Lifestyle | TV& Games CITYA.M. 4 JANUARY 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm Celebrity Mastermind
7.30pm EastEnders: BBC News
8pm Holby City
9pm Silent Witness: Part two
of two. Nikki’s mental wellbeing
begins to deteriorate.
10pm BBC News
10.25pm Regional News
10.35pm Motorway Cops
11.35pm FILM The Kovak Box:
Thriller, starring Timothy
Hutton 2006; Weatherview
1.25am Sign Zone: David
Attenborough’s First Life 2.25am
Sign Zone: Alan Titchmarsh’s
Garden Secrets 3.25am Sign Zone:
Dig 1940 3.55am-6am BBC News
6pm Eggheads
6.30pm Great British
Railway Journeys
7pm Live Darts: BDO World
Championships: Day four at the
Lakeside Country Club.
8pm Stargazing Live:
Images of this morning’s
partial eclipse of the sun.
9pm CHOICE The Bear
Family and Me
10pm Have I Got Old News for
You
10.30pm Newsnight: Weather
11.20pm Darts: BDO World
Championships
12.10am Darts Extra
2.10am BBC News 3.55am-6am
Close
6pm London Tonight 6pm The Simpsons 6pm CHOICE Cowboy Builders:
6.30pm ITV News 6.30pm Hollyoaks A dilapidated flat in
7pm Emmerdale 7pm Channel 4 News Twickenham, west London.
7.30pm CHOICE Kids Under 7.55pm 4thought.tv 7pm Five News at 7
Pressure – Too Much Too 8pm Famous and Fearless 7.30pm How Do They Do It?
Young: Tonight 9.35pm David Walliams’ Five News Update
8pm The Secret Mediterranean Awfully Good: Misguided but 8pm Goering’s Last Secret:
with Trevor McDonald entertaining moments in TV Revealed: Five News at 9
9pm Above Suspicion: and film. 9pm CSI: NY
Deadly Intent 11.40pm The Big Bang Theory 10pm CSI: NY
10pm ITV News at Ten 12.10am European Poker Tour 10.55pm CSI: Crime Scene THE BEAR FAMILY AND ME
10.30pm London News 1.10am Freesports on 4 1.35am Investigation: A baby is BBC2, 9PM
10.35pm FILM The Matrix World B-Boy Series 2am Beach Gordon Buchanan returns to
Volleyball 2.55am KOTV Boxing kidnapped.
Revolutions: Sci-fi sequel, Weekly 3.20am World Sport 11.55pm True CSI Minnesota in the summer to discover
starring Keanu Reeves. 2003. 3.45am Triathlon ITU World 12.55am SuperCasino that tiny black bear cub Hope has been
12.50am The Zone; Championship Series 4.40am 4am Brian Sewell’s Grand Tour abandoned by her mother.
ITV News Headlines Grudge Match 4.50am Bear Grylls: 4.45am HouseBusters 5.10am
2.55am Spartacus 4.25am-5.30am Born Survivor 5.45am-6.10am Yo Wildlife SOS 5.35am-6am
ITV Nightscreen Gabba Gabba House Doctor

SKY SPORTS 1 7.45pm ATP Tennis: The Qatar BBC THREE HISTORY DISCOVERY HOME &
SATELLITE & CABLE

Open. 10pm Freeride Spirit

7pm Sky Sports News at
Seven 7.30pm Soccer Special
10pm Revista De La Liga
11pm-6am The Ashes Live
SKY SPORTS 2
5.30pm Darts 7.30pm Live
Football Special 10pm Football
Special 11pm Poker 12.30am
Football Special 1.30am
Revista De La Liga 2.30am
A-League 3am Football Asia
3.30am Football Special
4.30am Revista De La Liga
5.30am-6am A-League
SKY SPORTS 3
7pm Test Cricket 8pm The
Ashes Highlights 10pm Test
Cricket 11pm A-League 11.30pm
Football Asia 12am Tennis 3am
Poker 4.30am Sports Unlimited
5.30am-6am Kings of the Snow
BRITISH EUROSPORT
6.45pm Dakar Rally
7.15pm Live Dakar Rally
Show: Extreme sports action.
10.15pm Dakar Rally 10.45pm
Alpine Skiing 11.45pm
euroCRASH! 11.55pm Olympic
Magazine 12am-12.30am
Dakar Rally
ESPN
7pm Press Pass 7.30pm NHL
Ice Hockey 9.30pm NBA
Tonight 10pm Bundesliga
12am Live NHL Ice Hockey
2.30am Press Pass 3am
Premiership Rugby Union
4.30am-6am Talk of the
Terrace
LIVING
7pm Ghost Whisperer
8pm Fat Families 9pm Half Ton
Teen 10pm Teenage Tourette’s
Camp 11pm Criminal Minds
12am CSI: Crime Scene
Investigation 2.50am
Charmed 4.30am Four
Weddings 5.20am-6am Maury
7pm Most Annoying People
2010 7.10pm FILM Meet the
Fockers 2004. 9pm Sun, Sex
and Suspicious Parents 10pm
EastEnders 10.30pm Family
Guy 11.15pm Sun, Sex and
Suspicious Parents 12.15am
How Not to Live Your Life
1.15am Young Butcher of the
Year 2.15am Young Plumber of
the Year 3.15am How Not to
Live Your Life 4.10am Most
Annoying People 2010
4.20am-5.20am Young
Butcher of the Year
E4
7pm Hollyoaks 7.30pm Friends
9pm 90210 10pm FILM Big
Momma’s House: Comedy, with
Martin Lawrence. 2000. 12am
Scrubs 12.55am Dirty Sexy
Money 1.50am Make It or
Break It 2.35am Beauty and
the Geek 4am Being Erica
4.45am-6am Switched
7pm Heir Hunters 8pm Clash HEALTH
of the Gods 10pm Gladiators: 7pm A Baby Story 8pm You
Back from the Dead 11pm
Are What You Eat 9pm
Seven Deadly Sins 12am Clash Chopper Rescue 9.30pm A&E:
of the Gods 1am Gladiators:
Outback 10pm Hospital 11pm KIDS UNDER PRESSURE – TOO
Back from the Dead 2am The Last Chance Surgery 12am
Nostradamus Effect 3am MUCH TOO YOUNG: TONIGHT
Chopper Rescue 12.30am ITV1, 7.30PM
Secrets of Mary Magdalene A&E: Outback 1am Hospital In the first of a three-part series, Julie
4am UFO Files 5am-6am 2am Last Chance Surgery
Etchingham investigates the stresses
Barbarians 3am You Are What You Eat on young people today.
4am Baby’s Room
DISCOVERY 5am-6am A Baby Story
8pm How Do They Do It?
8.30pm How It’s Made 9pm SKY1
Swamp Loggers 10pm 7.30pm Louie Spence’s
Extreme Engineering: A Showbusiness Sneak Peek
revolutionary hurricane 8pm Got to Dance 10pm
protection system. 11pm Louie Spence’s Showbusiness
River Monsters 12am Bear Sneak Peek 10.30pm A League
Grylls: Born Survivor 1am of Their Own 11pm Mental
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Does That Work? Than a 10 Year Old? from Twickenham, west London.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
13 18 30 14 8 34 17 
17 22 10
25 20   
45
Place the numbers from 1 to 9 in each empty cell so that each  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 10 10
3 15
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 16 24
  
above or to the left of it. 14
You can only use the digits 1-9 14 8 9  
   and you must not use the
16 33
35   
same digit twice in a block. 32 27 19 11
    The same digit may occur 16 12 6  
7 13
   more than once in a row or
column, but it must be in a
9 22
21
  
28 14
    separate block.
17 7
45
 
4 23 15

    ACROSS DOWN
1 Frown (5) 1 Actor’s lines (6)
  
    WORDWHEEL N E
3 Bottomless gulf (5)
7 Fanciful but graceful
asymmetric ornamentation (6)
2 Romance (3)
4 Coloured
transparent
Using only the letters in the Wordwheel, you have 9 Horse’s coat when sprinkled gemstone (5)
   ten minutes to find as many words as possible,
Y R with white or grey (4) 5 Despatched (4)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters O 10 Enclosure for swine (3)
12 Unpleasant smell (4)
6 As fast as
possible (4-5)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
L O 13 Fees levied for the use of
roads or bridges (5)
8 Dance performed
by a group of people
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
U G 15 Seventeenth letter of the
Greek alphabet (3)
in single file (5)
11 As well (3)
QUICK CROSSWORD 2 8 1 6 9
17 Country comprising a group 14 Bloodsucking

S E N S E A E G I S
5 6 9 8 7 1 4 2 SUDOKU         
of islands, capital Apia (5)
19 ___ Armstrong, first
parasite (5)
15 ___ Pickering,
3 9 9 6 8 3 7 1
I W P I C          man on the moon (4) athletics coach
L A B E L T O N G A
1 8 7 9 7 8 3
        
K E B R L 2 7 5 1 5 2 21 ___ and outs, details and BBC sports
        
S T E T H O S C O P E 5 6 9 2 7 4
8 of a situation (3) commentator
        
O P
S P E E D
R
O
H I
M E T E R 1 2
9 8 6
3 6
5
9
7
9
2
3
WORDWHEEL         
22 Elderly (4)
23 Disease transmitted
(1930-1991) (3)
16 Shut (6)
A A N S E         
2 3 4 7 5 1 5 1 The nine-letter word was
B L A S T A T O L L by body lice (6) 18 Gnat (5)
9 7 8 9 8 7 6 4         
L R O R A
TABLEWARE 25 Highland pole (5) 20 Bath powder (4)
E M C E E D A I L Y 1 2 6 1 3         
26 Accolade (5) 24 Church bench (3)
CITYA.M. 4 JANUARY 2011
No Aussie would get in England side
ASHES COMMENT
ANDY LLOYD
O
UR cricket columnist, former
England batsman and
Warwickshire chairman Andy
Lloyd, has been poring over all
the Ashes action. Here he dissects
what he’s learned from the play so far.
RISKS
The most fearsome obstacle standing
between England and a victory in the
final Ashes Test that would earn
them a 3-1 series victory is probably
the weather. Certainly England have
Australia’s number and have been
well on top of them for almost the
whole six weeks. But rain could yet
play a decisive part in Sydney, where
they have had an unpredictable sum-
mer. The weather is sure to shape the
thinking of Andrew Strauss. With the
Ashes already retained and a draw
enough to ensure a series win for the
tourists, I can’t see the England cap-
tain taking any risks. The ideal sce-
nario for England would be to
hammer home the superiority they
have built up, so that they go into the
one-day games choc-a-block with con-
fidence. I’m a little biased because of
our Warwickshire connections but
I’d love to see Ian Bell round off the
series with the big score he deserves.
MESSIAH
This is not just about Australia failing
to win back the urn; what we are wit-
nessing is no less than the end of a
dynasty that stretches back 25 years
to the captaincy of Allan Border. In
that time they have been able to boast
some of the best cricketers on the
planet. Now they simply don’t have
any world-class players. The level
they’re playing at, they can’t compete
with India or South Africa. And not
one of the team playing in this fifth
SPORT | IN BRIEF
Isner survives Mahut rematch
TENNIS: American John Isner secured
victory in two sets against Frenchman
Nicolas Mahut in the Hopman Cup, as
the pair met for the first time since last
year’s epic first-round Wimbledon clash.
It took over 11 hours for the pair to be
separated on that occasion, but here the
giant American required just 90 minutes
to beat the Frenchman 6-3 7-6 in Perth.
Favre calls time on his career
NFL: Brett Favre has retired from the
sport for a third time. Favre, 41, previ-
ously quit in 2008 and 2009 but
returned on each occasion – firstly with
the New York Jets and then with the
Minnesota Vikings. But the quarterback,
holder of most consecutive starts in the
sport (321, including play-offs), insisted:
“I know it’s time, and that’s OK. It is.”
Favre won the Super Bowl with Green
Bay in 1997 during a 16-season stint
with the Packers and currently holds the
NFL records for wins (186), passing
yards (71,838), touchdown passes (508)
and interceptions (335).
Lewis edges out Anderson
DARTS: Adrian Lewis, 25, hit a sensa-
tional nine-dart finish en route to claim-
ing his first ever world championship
after he conquered Gary Anderson 7-5 in
a pulsating final at Alexandra Palace.
Usman Khawaja made 37 on his Test debut for Australia
Test would get in the England side.
Usman Khaawaja, the left-hander
given a debut in Sydney, has been
hailed as the future after a moderate-
ly promising knock of 37. If he’s their
messiah then they have problems.
Bruma and Chelsea travel to Wolves tomorrow
Bruma: It’s the players not Carlo
who should take all of the blame
▲
FOOTBALL
CHELSEA defender Jeffrey Bruma
insists he and his fellow teammates
must take responsibility for their fail-
ure to kill off Aston Villa on Sunday.
The 19-year-old made his full
Premier League debut in the eventful
3-3 draw at Stamford Bridge.
The Blues, who travel to Wolves
tomorrow, trail Manchester United by
six points having played a game more
than the leaders, with manger Carlo
Ancelotti under increasing pressure
Picture: ACTION IMAGES
Ricky Ponting’s injury has given
Michael Clarke a captaincy audition,
but his poor current form means it
may well suit Australia better to have
Ponting at the helm for the World
Cup, and then look at a change.
Picture: PA
to spend heavily this month to
refresh his squad. But Bruma believes
it is the players who should be shoul-
dering the brunt of the criticism.
Bruma said: “Everyone knows
Premier League games are always
fast, quick strong, so if we don’t play
our game then they will play their
game and you will see that they will
dominate us. It can happen.
“We should’ve kept the ball and
been strong in the marking because
the guy from Villa had a free header.”
THE ALL-ROUNDER |
STATS, CONDTIONS AND BANTER
DAY THREE FORECAST
HIGH 250
LOW
200
Bright sunshine
PITCH
Australia’s decision to bat first
heaped immediate pressure on
debutant Michael Beer, who will be
expected to spin his side to victory
in the final innings. Graeme Swann
found little assistance on day one,
but the pitch will deteriorate as the
match progresses.
STAT OF THE DAY
He might have been installed as
captain in the absence of Ricky
Ponting, but Michael Clarke’s recent
form hardly warrants a promotion.
The 29-year-old is averaging just
16.63 from his six Tests this winter.
FIGHTING TALK
“I think there should be someone in
the Australian set-up who says,
‘Look Ricky, you’re not captain in
this game. Michael Clarke is cap-
tain.’ I think it would have been
better if Ricky had been away from
the team and just left it to Michael
Clarke. It’s not Michael Clarke’s
team as yet but I just think it
would have been much fairer to
Michael Clarke if Ricky Ponting
hadn’t been around.” – Former
Aussie captain Ian Chappell wasn’t
overly thrilled to see Ricky Ponting
pitch up in Sydney.
“David Saker, our bowling coach,
has made some flattering remarks
that I could get to No 1. I would
love to get there just because it
would mean that I had overtaken
Swanny. It would be great just to
shut him up for a bit.” – James
Anderson reveals the motivation
behind his desire to become the
best bowler in the world.
Murray and Robson fail
to revive Hopman heroics
▲
TENNIS
BRITISH pair Andy Murray and
Laura Robson face an uphill
battle to emulate last year’s
Hopman Cup run after losing
their opening group
clash against Italy.
Murray and Robson
reached the final in
Perth 12 months ago
but went down 2-1
yesterday after los-
ing the deciding
mixed doubles to
Potito Starace and
French Open champi-
on Francesca Schiavone.
With only the two group
winners progressing to the
final, Murray admitted the
defeat was an early blow to
his and teenager Robson’s
hopes of matching their per-
formance last time round.
“It was a very long first
day of the year. It’s disap-
pointing we didn’t win but
Sport 23
Results
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email sport@cityam.com
hopefully we can come through in
the next one,” said the Scot, ahead
of tomorrow’s contest with France.
The tournament is part of the
build-up to the Australian Open,
the year’s first grand slam.
Murray (left) added: “I was
breathing so hard after the first
four or five games. I only
arrived on Saturday
afternoon so there’s
not been a whole
lot of time to get
over jet-lag yet.
“It’s going to
take some time
to get used to the
conditions.”
Robson, 16, made a
promising start before
being swept aside 7-5,
6-3 by Schiavone, but
world No4 Murray
levelled by beating Starace 7-5,
6-1.
The British duo then lost a
closely fought doubles match
6-7 (1-7), 7-6 (8-6), 7-6 (10-2).
 Sport
24 CITYA.M. 4 JANUARY 2011

PONTING NOT GOOD

ENOUGH FOR ENGLAND
ANDY LLOYD’S ASHES
LOWDOWN: PAGE 23

WHERE ELSE
COULD HE GO?

NINE GAMES NEWCASTLE

A big signing
would enhance
Alan Pardew’s
standing, but
unless Becks fan-

Beckham’s Spurs switch cies swapping

memories with
Sol Campbell he’ll
have to look else- NEWCA
STL
EU

set to be a short one

where. Odds: 5/1

EVERTON
Becks knows the
north west well,
but he has already
dismissed the idea
of turning out at
▲

FOOTBALL (inset) decide to include him in his European Goodison Park due
BY JAMES GOLDMAN squad at the expense of a player who would be to its proximity to
available beyond the next round. his old stomping
FORMER England captain David Beckham has Such a move would seem unlikely, however, ground, Old
edged closer to a sensational loan move to unless Spurs were able to extend the loan Trafford. Odds: 12/1
Spurs – but his return to English football looks agreement until the end of the domestic sea-
likely to be limited to just nine games. son – as Milan themselves managed to do so in
Beckham’s camp insist any short-term deal each of the last two January transfer windows WEST HAM
would have to fall in line with the start of the – but for now, a spokesman for Beckham A return to the
Major League Soccer season, which begins on 15 insists the player will return in March to fulfill East End of
March. The 35-year-old would, therefore, be his Stateside commitments. London would
expected to return to LA Galaxy before “We are waiting on the decision of LA hold sentimental
the second leg of Tottenham’s Galaxy with regards to a loan move,” value, but not
Champions League tie against his said the spokesman. “The loan would much else. A rele-
former team, AC Milan. be a short one until the start of the gation dogfight
Even if Spurs were to secure MLS season. David would then play wouldn’t carry
an agreement with a full season with the Galaxy. any allure for
Beckham’s parent club today, “Tottenham are one of many Becks. Odds: 20/1
he would be ineligible to clubs who are interested but as yet
make his debut against we have not got into any detailed
Everton tomorrow, while the conversations as we are waiting on BLACKBURN
FA Cup 3rd round clash against LA Galaxy’s decision.” The new owners
Charlton may also come too soon. Spurs, who are tipped to be prepared at Ewood Park
That could pave the way for to pay Beckham a salary of £125,000 per could do with a
Beckham to make what would be an emo- week, saw their hopes of signing Beckham, popularity boost-
tional first appearance in the English top who still harbours hope of an England recall, ing stellar sign-
flight since 2003 against his old side strengthened yesterday, when Newcastle man- ing, but
Manchester United on 16 January. ager Alan Pardew all but conceded defeat in LA Galaxy’s and Ronaldinho
Beckham could figure in six other Premier his attempts to lure the player to Tyneside. Beckham’s MLS appears to be
League matches, including the north London Pardew said: “It is unlikely, we have other season starts on their main tar-
derby, while he could also feature against AC targets which have more chance of coming to 15 March get. Odds: NA
Milan, should Spurs boss Harry Redknapp fruition than that one.” Picture: GETTY