Escolar Documentos
Profissional Documentos
Cultura Documentos
BY STEVE DINNEEN
2,750
EGYPTIAN President Hosni Mubarak
clung with a grim determination to
power last night as pressure on him to 2,650
step down intensified.
Outbursts of violence escalated as 2,550
anti-government protests threatened 1/11/2010 1/12/2010 1/1/2011
to descend into chaos, sending mar- ANALYSIS l Dubai Financial Market
kets tumbling across the region.
At least four prisons were stormed
by armed raiders and the Egyptian 1,700
Museum in Cairo was among the tar-
gets of looters.
1,600
The Egyptian military, which has
been praised for its restraint, moved to
show its strength yesterday, with 1,500
1/11/2010 1/12/2010 1/1/2011
troops fanning out in an attempt to
quash the violent outbursts and jets ANALYSIS l Saudi Stock Exchange
flying overhead.
Countries including the US, Israel, 6,800
Turkey and Canada sent aircraft to
6,600
evacuate their nationals, while British
foreign secretary William Hague Protesters on top of an Egyptian tank call for President Mubarak to stand down Picture: REX
6,400
advised against non-essential travel to
Cairo, Alexandria and Suez. which was closed yesterday after months. the weekend.” 6,200
Opposition leader Mohamed falling 16 per cent in two days last The main Abu Dhabi market fell 3.7 Israeli stocks suffered their biggest 1 /11/2010 1 1/12/2010 1/1/2011
ElBaradei called for patience when he week. per cent, continuing a two week nose- one-day fall since November 2008,
addressed protestors in the capital yes- Dubai led regional declines as its dive. with an index of 25 blue-chip stocks on ANALYSIS l Brent Crude Oil $/barrel
terday, promising “change is coming index fell 4.5 per cent to a 21-week low, Martin Slaney, director of global the Tel Aviv Stock Exchange ending 3.8
100
in the next few days”. with companies exposed to Egypt dealing operations at GFT, said he per cent lower.
The Nobel peace prize winner has among the biggest losers. expects the FTSE 100 to open down 49 US oil prices surged more than four
been asked by opposition groups to try Saudi Arabia’s index fell to a three- points this morning, adding: per cent on Friday, with analysts fear- 90
to force through a national unity gov- month low in initial trade, but subse- “European stock markets are all ing disruptions to the Suez Canal, the
ernment by working with authorities. quently rose to end 2.4 per cent higher, expected to trade lower on the open waterway that is responsible for ship-
Markets across the Middle East fol- rebounding following Saturday’s 6.4 this morning, following the height- ping around a million barrels of crude 80
lowed the lead of the Egyptian index, per cent drop, its largest in eight ened turmoil witnessed in Egypt over and refined oil every day. 1/11/2010 30/11/2010 31/12/2010
FTSE 100 ▼5,881.37 -83.71 DOW ▼11,823.70 -166.13 NASDAQ ▼2,686.89 -68.39 £/$ 1.58 ▼-0.01 £/¤ 1.17 ▲+0.01 ¤/$ ▼1.36 -0.01 Certified Distribution
29/11/10 till 02/01/11 is 98,444
Distribution helpline potential candidates are in sight -- all breakup of the lender could only be Northern is keen for the meeting to
If you have any comments about the distribution BY MARION DAKERS
of City A.M. Please ring 0207 015 1230, or email risky assets will be split off and a core averted with extra time. take place so shareholders can deci-
distribution@cityam.com bank doing business with savings But the European Commission NORTHERN FOODS is still due to hold sively reject Greencore before the
banks will remain. made it clear on Wednesday that it a shareholder meeting today to vote firm can best Boparan’s 73p per share
Editorial Statement WestLB businesses such as invest- will not extend a 15 February dead- on its proposed merger with food bid.
This newspaper adheres to the system of ment banking and international line to restructure the bank. manufacturer Greencore, despite its Greencore’s AGM is also set to take
self-regulation overseen by the Press Complaints banking will be wound down unless a The deadline for the remaining board switching to recommend a place in Dublin today, though one
Commission. The PCC takes complaints about the buyer turns up, they said, adding the four bidders to submit offers in an rival takeover bid by Boparan more source familiar with the company
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at WestLB’s bad bank is likely to be used ongoing auction is 11 February. than week ago. said its shareholders will not have a
www.pcc.org.uk for this purpose. China Development Bank and buy- The Northern investor meeting can vote on the merger.
Printed by Newsfax International,
But talks between the owners over out firms Blackstone, Apollo and J.C. only be called off with the permission The Takeover Panel would not com-
Beam Reach 5 Business Park, who will cover the costs are still ongo- Flowers are said to have handed in of Greencore, under the terms of the ment on a live case, while Greencore
Marsh Way, Rainham, Essex, RM13 8RS ing. preliminary offers. merger announced in November. and Northern declined to comment.
education group
UK-based banker
this year
Picture: ALAMY
Goldman’s UK
chief awarded “BE SIMPLER THAN
WHAT COULD
bonus of £9m
”
chief financial officer David Viniar
▲
BANKING
BY STEVE DINNEEN
MICHAEL Sherwood, Goldman Sachs’
and chief operating officer Gary
Cohn to $1.85m. Both executives pre-
viously earned a base salary of
SPREADS?
head of UK and Europe, has been $600,000.
awarded a bonus of $14.4m (£9m). The pay hikes came even after the
The payment of free shares, which bank’s profit fell 38 per cent in 2010
will not fully vest until 2016, dwarf
even the bonus paid to Goldman
chief executive Lloyd Blankfein.
to $8.35bn.
Meanwhile, Royal Bank of Scotland
(RBS) boss Stephen Hester looks set to
NOTHING.
Sherwood’s payout represents a 60 receive far less than his US counter-
per cent premium on his stock award parts.
the year before, according to filings Despite a government call for an
with US regulators. end to banker bashing, his bonus –
The 45-year-old banker from expected to be around £1m – is likely
Highgate joined Goldman in 1985. to be paid into a new “share bank”
The move has been seen as the lat- scheme, which could deny him a
est sign that US banks are moving cash bonus for the duration of his
away from some of the austerities tenure at the lender.
imposed by the financial crisis. The scheme will tie his bonus to a
Blankfein saw Goldman triple his series of strict performance targets. If
base salary and award him $12.6m of adopted it could also affect RBS’s
stock. He is now receives base pay of chief financial officer Bruce Van
$2m, up from $600,000 last year. Saun.
The shares awarded to Blankfein
amount to a 42 per cent increase RBS boss Stephen
from the $8.9m all-stock bonus he
received for 2009. Hester’s bonuses could
However, this year’s bonus is far from now on be paid
below the $67.9m he received for into a new “share
2007. bank” scheme.
Goldman also raised the salaries of
MARKETS OIL
DIVIDEND payments from listed com- OIL firms will create an industry body
panies are set to rocket this year, responsible for overseeing safety in a
reversing a two year downward trend. bid to win around its battered public
Payments have been hit by the perception.
financial meltdown and the Gulf of The industry is now discussing
Mexico disaster but will spring back whether the body should be linked to
this year, according to a new study by the American Petroleum Institute.
Capita Registrars. That organisation was criticised for
Dividend payments will hit £63bn – by the official enquiry into the
still lower than the amount paid in Deepwater Horizon disaster.
both 2007 and 2008 but far above the The US government will maintain
£56.5bn paid out last year. an independent supervisory role over
BP is one of the top dividend payers the industry.
in the country and still ranked seventh The plans have been drawn up by a
last year despite making only one pay- group of executives chaired by a man-
ment. BP DIVIDEND: P9 ager from Royal Dutch Shell.
4 News CITYA.M. 31 JANUARY 2011
De La Rue vulnerable to
takeover if new CEO fails
would be able to push its value back price plummeted 27 per cent from a
▲
MANUFACTURING
BY JULIET SAMUEL up to levels seen before a contract with norm of 900p to around 650p.
its major client, the Reserve Bank of Analysts say that new chief execu-
DE LA RUE’S newly won freedom from India (RBI), was suspended in July. tive Cobbold now has a maximum of
bid talk could only be a temporary Oberthur dropped its bid last two years to revive the firm’s value,
reprieve if its new chief executive, Tim Monday after its revised offer of 935p with both shareholders and Oberthur
Cobbold, is unable to turn the firm per share was rejected. The withdraw- likely to keep a keen eye on its results
around, says a source familiar with al followed an aggressive campaign to in May.
the matter. persuade shareholders that the likely Oberthur has mulled bids for its
De La Rue was only able to fend off a loss of the RBI contract made rival several times over the last six
bid by its rival, Oberthur Technologies, Oberthur’s offer the best exit available. years. Shareholders could look to the
last week by persuading shareholders After the contract’s suspension was firm to step back into the fray if their
that the firm’s new management announced in July, De La Rue’s share concerns are not addressed.
ANALYSIS l De La Rue
900 p 686.50
28 Jan
800
700
600
De La Rue’s new chief Tim Cobbold has to persuade shareholders that rejecting
Oberthur’s bid, a 27 per cent premium to its current share price, was the right decision
end wo rth
a week
talking about
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based on 2 sharing in February 2011. lastminute.com acts as an agent for ATOL protected operators,
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CITYA.M. 31 JANUARY 2011 News 5
BY DAVID CROW sands of lives,” he told the Andrew banded under the plans.
Marr Show. Lansley (pictured) said: “I did-
ANDREW Lansley, the health secre- Health unions have hit out n’t say there wasn’t risk. Of Diamond made waves at the
▲
POLITICS
tary, yesterday admitted that his plans at the plans, due to be debat- course there’s risk because Treasury select committee, where he
to shake-up the NHS carried a certain ed by MPs today. there’s change. But actually LABOUR peer Lord Mandelson was grilled by influential MPs, by sug-
degree of risk, but insisted the real The Health and Social if we don’t change, the coached Bob Diamond, chief execu- gesting it was time for banks to stop
danger was putting reform on the Care Bill, published earlier greater risk is that these tive of Barclays, ahead of a high-pro- apologising for their role in the finan-
back burner. this month, will see consor- problems that we have at file public hearing earlier this month. cial crisis.
He said the coalition would contin- tia of GPs control of most of the moment that we have Mandelson, who once said Mandelson, who managed Labour’s
ue to increase spending on health in the NHS budget from 2013, to deal with won’t be solved.” Diamond was the “unacceptable face unsuccessful re-election campaign,
real terms, but that the NHS still need- with responsibility for “buying The reforms would result in of banking”, is understood to have has taken a handful of private sector
ed to be overhauled. in” the bulk of hospital services for a redundancy bill of £1bn, he said, offered only “informal advice” and jobs after new leader Ed Miliband
“We don’t get the results we should their patients. but savings would reach £5bn over the did not receive any payments for his effectively closed the door on a return
compared with other European coun- All 151 primary care trusts and course of the parliament. services. to front bench politics.
Picture: BBC
on economy
POLITICS Meanwhile, Balls audaciously
▲
13 international markets
21 exchanges
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CITYA.M. 31 JANUARY 2011 News 9
TNK-BP moves
BP set to pay to block $1.8bn
first dividend share payout
ENERGY
▲
RUSSIAN shareholders in TNK-BP have
called an extraordinary board meet-
ing to discuss cancelling a $1.8bn
(£1.1bn) dividend payment, half of
which would have gone to British
partner BP.
▲
ENERGY However, one poll of analysts pre- Bob Dudley is expected to reinstate part of BP’s dividend The latest twist in the feud between
BY MARION DAKERS dicted an underlying net income of BP and the Russian shareholders in
$5.09bn for the quarter, which would the joint venture comes after BP said
BP is expected to restart its dividend
payments alongside its quarterly
results tomorrow, its first since the
be a 16 per cent rise compared to the
final quarter of 2009, on the back of
soaring oil prices.
Smaller on just about every score: it had offered its partners in TNK-BP
an arbitration meeting, ahead of a
court hearing that could overshadow
Gulf of Mexico spill last April.
Analysts are expecting BP to report
income of more than $5bn (£3.15bn)
The gains would mean a pre-tax loss
of $4.5bn for the year, allowing for
fluctuations in the price of oil – the
but oil major’s future is looking up its results tomorrow.
AAR, a Russian consortium that
owns half of TNK-BP, will hear tomor-
for the last three months of 2010. firm’s first annual loss in 20 years. LEANER and more focused. That is ous pruning; now shareholders row whether the High Court has
Chief executive Bob Dudley has Analysts have scaled back their esti- the vision for BP that Bob Dudley need to see a strategy for growth. granted it an injunction blocking BP’s
strongly hinted that a shareholder pay- mates of how much the Gulf spill will will sketch out when he unveils Elsewhere, things are looking up. $16bn (£10bn) share swap and explo-
out is on the cards, saying in an inter- cost BP, after the compensation fund’s fourth quarter numbers tomorrow. Costs from the oil spill are likely to ration deal with Russia’s state-owned
view when he started the job in head predicted that only half of its Of course shareholders know that be lower than thought; the oil price oil group Rosneft.
October that the board would discuss $20bn pot will be needed. what the chief executive really is strong; the deal with Rosneft AAR believes the agreement could
restoring a dividend payment in the means is smaller – on just about shows BP is serious about explo- breach TNK-BP’s right to first refusal
first quarter of 2011. ANALYSIS l BP 486.80 every count. ration; the beginning of the end is on BP’s activities in Russia.
BP has cancelled dividend payments 520 p 27 Jan The dividend will make a come- here. But BP has written to TNK-BP chief
totalling £5.4bn in the wake of the back, albeit at just 7¢ a share – half BP’s shares have recovered from executive and AAR member Mikhail
Deepwater Horizon explosion, which a the pre-disaster level. And analysts lows below 300p a share, closing at Fridman to request a “fast track” arbi-
US commission said was caused by 480 expect production to be down by a 486.8p on Friday. But we think tration meeting in Sweden to try and
“systematic failures of management”. tenth at 3.6m barrels a day. The there is some way to go and rate the smooth the path for its Rosneft deal.
Analysts have predicted a 10 per moratorium in the gulf and $20bn stock a “buy”. “Under the shareholder agree-
cent drop in production compared to a 440 of asset sales have taken their toll ments, the process for settling dis-
year ago, thanks to the drilling mora- on BP – once the biggest producer putes if they can’t be settled within
torium in the Gulf of Mexico and to
BP’s ongoing asset sell-off to pay for
of the private oil majors.
Dudley was right to do some seri-
BOTTOMLINE the shareholders is to go to independ-
ent arbitration in Sweden,” a BP
the clean up. 1 Nov 19 Nov 9 Dec 31 Dec 21 Jan Analysis by David Crow spokesman said yesterday.
A Daimler Brand
Official government fuel consumption figures in mpg ( litres per100km ) for the E-Class range: urban 15.0 (18.8)- 42.8 (6.6) , extra urban 30.4 (9.3) - 64.2 (4.4), combined 22.1 (12.8) - 54.3 (5.2).
CO2 emissions: 299-137 g/km. Model featured is a Mercedes-Benz E 220 CDI BlueEFFICIENCY SE Saloon at £30,005 on-the-road (price excludes specification offers but does include standard UK delivery charge (£515.00 incl. VAT), new vehicle registration fee (£55.00), number plates
(£25.00 incl. VAT) and fuel (£50.00 incl VAT). Customers may choose between either a specification upgrade or a £1,400 finance deposit contribution at 6.6% APR Typical on the E-Class Saloon. *Based on a Mercedes-Benz Agility agreement.**The complimentary Metallic Paint offers customer savings
of £645. Offer excludes Diamond White Metallic Paint. †Complimentary Exterior Styling Pack available on the SE or the Avantgarde including 18" alloy wheels, Sport suspension and more – customer saving of £710. Navigation upgrade offer savings of over £700 against the normal option price. Credit provided
subject to status from Mercedes-Benz Financial Services UK Limited, MK7 8ND. Guarantees and indemnities may be required. Offers subject to availability and cannot be used in conjunction with each other or with any other published offer from the Retailer. These campaigns are available on E-Class Saloon
models ordered and credit approved between 4 January and 31 March 2011 and registered by 30 June 2011, excluding AMG and special request engines. For more information on all offers available on the E-Class range please visit mercedes-benz.co.uk/offers. Prices correct at time of going to press 01/11.
The Capitalist
10 CITYA.M. 31 JANUARY 2011
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com
Cafe Spice Namaste will take on FTSE 100 firms to battle for the Sustainable City awards
Linklaters shortlisted for its responsi- then, was to go somewhere a little dif-
ble waste management alongside ferent... a place where we could both
Mexican restaurant Wahaca and com- explore the city and also swim,
postable food-packing firm Vegware? snorkel and lie very still for no appar-
ent reason.”
As for his city exploration, he
IN DE-NILE enthuses about the capital’s mar-
Looking for some off-the-beaten track kets: “This was Cairo at its most
travel tips? Look no further than a exhilarating, a riot of noise, smells
recent column by author David and colour... It’s a vibrant, commer-
Nicholls published on the Guardian cial metropolis, and the frustrations
are a small price to pay for the won-
ders and surprises of the place.”
The account makes an interesting
contrast with the Foreign Office’s
current travel narrative, also issued
on Saturday: “We advise against all
but essential travel to Cairo,
Alexandria, Luxor and Suez.”
Each to their own, eh?
A FINE VINTAGE
As years go, 2009 will rarely be remem-
bered as a classic. The economy was
Egypt: family friendly? Picture: Reuters still in the grip of recession and the
Labour government was thrashing
site on Saturday. But where is it that around in its protracted death throes.
the intrepid Nicholls suggests as a But for wine buffs, 2009 could go
family-friendly holiday destination? down as the best vintage of the last
Er, none other than “Egypt: A short- decade. Even while the pick of the
haul family adventure”. bunch is still in the barrel, connois-
Notwithstanding the riots rocking seurs are snapping up this year’s must
the country this week, Nicholls is have Burgundy. Get in fast before it’s
keen to explain the rationale for his all gone...
recommendation: “The challenge,
cash in City
MINING
▲
INVESTORS have written to BHP
Billiton and Rio Tinto to say the min-
ers should ditch ambitions for mega
deals in favour of multi-billion
pound share buyback schemes or
higher dividends.
▲
CAPITAL MARKETS said to be preparing for a fundraising The shareholders have asked for
BY RICHARD PARTINGTON in London, which could value the commitments from the group’s
firm at around $3bn. boards that they use their strong bal-
RUSSIAN state-owned bank VTB has The firm is looking to issue global ance sheets to return cash to
become the latest business from the depository receipts (GDRs) in an effort investors.
country said to be planning a listing to raise $500m-$750m. Andrey L Kostin’s VTB bank could raise cash with a London listing The investors are said to have
in London. Credit Suisse and Deutsche Bank moved to pre-empt another spate of
The bank is thought to be planning are said to be leading the listing. ANALYSIS | RUSSIAN FUNDRAISINGS IN LONDON deals in the mining sector that ana-
a $3.7bn (£2.3bn) initial public offer- Analysts have said Russian compa- lysts and investment bankers have
ing (IPO), as a series of firms from the nies could raise around $30bn in 2011 Company Name Valuation Date predicted.
country look to raise cash on the given the right market conditions, up Some shareholders have told the
London Stock Exchange. from $5.5bn in 2010, as firms look to companies they were prepared to
The Russian state stepped in to pur- London to raise cash. Russian Copper $3bn TBC vote down the re-election of key
chase part of the bank, which is run Several more industrial firms have board members if they did not agree
by chairman and chief executive also recently announced an intention Chelpipe $2.5bn Early Feb to the commitments.
Andrey L Kostin, during the height of to list in London or have priced offer- BHP, the world’s largest miner,
the financial crisis, and is now look- ings. scrapped a hostile offer for Canadian
ing to sell between eight and 10 per Steel giant Severstal last week Nord Gold £3.2bn First quarter 2011 fertiliser maker Potash in November
cent of its 77 per cent holding. announced the price range for the (owned by Severstal) and revived a $4.2bn (£2.6bn) share
And Russian steel pipe maker listing of its Nord Gold mining unit. buyback.
Chelpipe will this week announce a The company, majority owned by Over the last five years the compa-
price range for its floatation, after it billionaire Alexey Mordashov, hopes HMS Hydraulic $1.5bn Early Feb ny has returned $25.7bn to share-
first revealed its intention to list in to raise as much as £811m with a 25 holders in dividends and buybacks.
London earlier this month. per cent share issuance. Rio is in talks with Africa-focused
Advised by JP Morgan, the firm is Russian pump manufacturer HMS Koks $2.6bn Early Feb coal miner Riversdale over an agreed
looking to raise up to $1bn with a 40 Hydraulic and pig iron producer Koks $3.9bn bid.
per cent sale of the company. also announced their intention to list VTB $3.7bn TBC BHP and Rio both declined to com-
Mining firm Russian Copper is also in London earlier this month. ment.
12 News CITYA.M. 31 JANUARY 2011
▲
EXCLUSIVE
FINANCIAL SERVICES
restaurants and 18,800 jobs in whole- almost £50m. Sky plans to use The
BY JULIAN HARRIS sale and retail trade, according to Cloud, which has around 22,000
FINANCIAL companies in the City and data compiled by the Office of hotspots across the UK, to compete
Canary Wharf stimulate a vast and National Statistics (ONS). with the wi-fi operations of rival BT.
varied range of jobs outside the sec- Many of the related jobs rely on the A spokesman from The Cloud said:
tor, according to official figures seen financial sector, Cummings said. As “It is expected that more than 350,000
by City A.M. the recession started to bite, a seven City workers will be able to take advan-
Less than half (44 per cent) the jobs per cent fall in financial jobs coincid- tage of the free 15 minutes.
in London’s main financial districts ed with a 22 per cent drop in adminis- “Based on the success of the same
were in finance and insurance in tration and support activities, the offer in Glasgow, which experiences
2009, with 232,682 other jobs exist- figures showed. thousands of log-ins every day, The
ing in support services and sectors And employment in the City fringe Cloud is expecting the initiative to
such as retailing. also receives knock on effects, the have overwhelming appeal.”
“For every financial services head data suggests. As City finance employ- Stuart Fraser, policy chairman at the
office job there are other jobs created ment rose by 4,000 between 2006 and City of London Corporation said:
in the City and Canary Wharf – from 2007, finance jobs in fringe areas “When it was launched in 2007, City-
retail, hospitality and professional increased by 4,600. wide wi-fi coverage significantly
and public services,” said Chris enhanced the Square Mile as a place to
Cummings of promotional body FAST FACTS | CITY JOBS do business, providing substantial ben-
TheCityUK. efits not only for City workers but also
“The same is true across the UK, ● The City and Canary Wharf provide 18,300 for visitors and residents alike.
and that’s why we must preserve and jobs in hotels and restaurants (2009). “Offering all users 15 minutes of
develop the UK’s role as a global ● And a total of 232,682 non-finance jobs. free wi-fi coverage every day, The
financial services hub,” said ● Just 44 per cent of jobs in the two areas are Cloud’s latest initiative will provide a
Cummings. directly in finance and insurance. greater range of connectivity options
In the City and Canary Wharf, for all users within the City.”
CITYA.M. 31 JANUARY 2011 News 13
▲
ECONOMICS
BY JULIAN HARRIS
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CITYA.M. 31 JANUARY 2011 News 15
“ ”
We expect the availability of bank lending to improve slowly
over the course of 2011. Bank balance sheets, particularly capital lev-
els, are looking much healthier than two years ago.
”
ness lending opportunities. But rectifying this requires a culture
change, and could take, say, five years or more.
”
improved in 2010. But to rebalance away from consumption and debt
we will have to get used to lower rates of credit growth.
Apply now and get a head start with up to 2 years free business banking.
If you’re starting a business and opening a business current account or
if you move your business current account to HSBC before 28 February 2011,
you could receive an extra 6 months free business banking on top
New mortgage
of the everyday 18 months free banking*.
UK ECONOMY
which also releases its latest house price
BY JULIAN HARRIS figures this week.
MORTGAGE approvals could have fallen Net mortgage lending for December,
to their lowest level in around two announced by the Bank tomorrow, is
years, according to City economists forecast to have slowed to £0.7bn. “This
awaiting the Bank of England’s latest is expected to be the consequence of Sale Terms & Conditions and standard product terms apply. *During your free business banking period, we will not charge you an account maintenance
data on bank lending, released tomor- both muted new mortgage activity as fee or for payments into your account covered by our standard account charges. Additionally, we will not charge you for making internal transfers, cash
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row. well as people making increased repay- Business Debit Card, Direct Debit, Standing Order and Bill Payments. During the free business banking period, no credit interest is payable.
Yet the Bank’s figures for December ments,” Archer said. All applications for bank accounts are subject to approval. Lines are open 8am to 10pm every day (except Christmas Day, Boxing Day and New Years
may signal a steady rise in lending to However, the tight supply of credit to Day). To help us continually improve our service and in the interest of security, we may monitor and/or record calls. Issued by HSBC Bank plc.
AC20520
businesses, some analysts said. businesses could loosen through the
@
“We think mortgage approvals year, even for small and medium-sized
slipped to 42,000 in the month,” said companies.
Deloitte’s Ian Stewart, while Howard “The Bank’s latest credit conditions
Archer of IHS Global Insight has said survey pointed to a continuing improve-
that approvals are expected to fall to ment in the availability of bank credit
45,000 – which would still be a 20 for private non-financial corporations,”
month low. said Jamie Dannhauser of Lombard
“This would be substantially below Street Research.
the 70,000--80,000 level that has been “The most pronounced rise came in
considered consistent with stable lending to small and medium-sized
house prices,” Archer said, adding that enterprises, with further easing expect-
the long term average (since 1993) ed in the first quarter of this year.” And FOR MORE NEWS
stands at around 90,000 approvals per a Deloitte survey “shows that demand
month.
House prices fell by 3.4 per cent last
for credit among larger UK corporates is
starting to stir,” Stewart added.
www.cityam.com
CITYA.M. 31 JANUARY 2011 Property 17
▲
PROPERTY
MORE homeowners expect their Morgan Stanley
house to lose value this year than in
2010, according to new figures pub-
lished by property website
staff
Rightmove.
Fewer than one in four people
looking to sell their house think
EaZVhZhjeedgi
their property will rise in value this
year, compared with more than half
(53 per cent) in January 2010.
Around a third of the 28,000
respondents believe their house will
lose value in 2011, while 38 per cent Many thanks to City AM
Candy Brothers development One Hyde Park is home to some of the most expensive flats in London Picture: PA think it will stay broadly flat.
for their support with this advertisement.
London’s top
homes regain
some value
However, the fall in values is less
▲
PROPERTY
BY MARION DAKERS pronounced than during
September, when top London prop-
THE TOP end of the London proper- erties suffered a 2.4 per cent drop in
ty market made a broadly strong the space of a month.
start to 2011, with the most expen- The prime London market reflects
sive 25 per cent of houses adding an a patchy recovery for high-end prop-
average of 0.2 per cent in value in erty values in the rest of the UK,
the last month, according to which suffered a 0.2 per cent overall
research seen by City A.M. drop in January.
A tightening supply has helped South-east England saw the most
push prices up, with 15 per cent dramatic drop in values in the coun-
fewer houses on the prime market try, with the average prime house
since October, says research by prop- losing 0.9 per cent to average
erty website Primelocation. £556,000.
Prime prices in Camden, Merton The average property in England
and Hammersmith & Fulham have and Wales has lost 2.2 per cent com-
risen the most – by more than five pared to a year earlier according to
per cent in some areas. Hometrack data last week.
However, the recovery is uneven, But the Royal Institute of
with the most valuable 25 per cent Chartered Surveyors also found last
of properties in Westminster, week that the decline in house
Kensington & Chelsea and Islington prices could be slowing down as the
losing value in January. rate of properties coming on the
Prime houses in these three areas market drops.
lost 1.3, 0.6 and 0.1 per cent of their Andrew Smith, research director
value respectively during January. at Primelocation, said: “With the
The most expensive 10 per cent of expectation of a healthy City bonus
properties in central London lost 1.4 season as well, prices at the top of
per cent in January and now average the market look set to continue
£3.34m, which is still around 2.5 per their strong run while the mass
cent higher than in January 2010. market remains fragile.”
PROPERTY
One in three investors surveyed
PROPERTY investors plan to cash in expects yields to increase this year,
on the fragile parts of the residential while 14 per cent predict a drop.
market over the next 12 months, The findings support a poll of
according to survey figures released economists by Reuters last week that
today. suggested a decline of around two
Just 13 per cent of the 146 proper- per cent in average UK house prices
ty professionals surveyed by Investec over the next year.
believe that residential property val- Gary Dobson of Investec’s
ues will go up in the next year. Structured Property Finance division
Almost half (49 per cent) expect said: “Residential property values in
average prices to decline, and one in the UK remain depressed compared
eight predict a fall of between six to their peak.
and 10 per cent during 2011. “This should create some great
Housing was ranked the most opportunities for investors as they
attractive buy for property investors take advantage of low valuations
this year, with retail and leisure and higher yields.”
18 News CITYA.M. 31 JANUARY 2011
Pressure rises on
7 L UHG R I F&C ahead of vote
V W D Q G LQ J ence on the board would benefit Analysts see the Thames River deal
▲
ASSET MANAGEMENT
BY ALISON LOCK shareholders in the long term, as a transformational move that
despite his lack of asset manage- should boost F&C by adding a high-
WITH just three days to go before ment expertise. “Bramson has a very growth, high-margin firm with an
F&C Asset Management’s board- good track record as a turnaround ambitious leader, Charlie Porter.
LQ
room showdown with activist share- specialist,” it said. “Relevant board And as a people business, Porter rep-
holder Sherborne Investors on experience is more important than resents exactly the sort of talent F&C
Thursday, mood in the City has industry experience.” would suffer from losing.
swayed toward the F&C board. Many F&C investors are keen to Singer Capital analyst Sarah Ing
Early enthusiasm for Sherborne’s see what fresh blood could do – but said F&C was dogged by structural
proposed board takeover, replacing Sherborne has raised concerns by challenges dating back to its divest-
chairman Nick MacAndrew with its apparent misjudgements in its view ment from Friends Provident, but
founder Edward Bramson, has been of F&C. It has come under fire for the board’s strategy was sound.
replaced with caution as investors arguing that F&C’s purchases of “F&C is constrained by its struc-
weigh their options. REIT Asset Management and ture,” she said. “But management
Sherborne is supported by key Thames River Capital were expen- has invested in high margin busi-
investor Aviva, and shareholder serv- sive and contributed little to assets nesses. Short of breaking the firm
ice ISS concluded Bramson’s pres- under management and earnings. up, it is unclear what would help.”
Terms and Conditions apply. Subject to status. The Platinum Charge Card is offered by American Express ® Services Europe Limited. Registered Offi ce: Belgrave House, 76 Buckingham Palace Road, London SW1W 9AX, United Kingdom. Registered in England and Wales with Company Number 1833139.
Skrill appoints
Fund managers win Wigley ahead
larger pay packets of potential IPO
▲
RETAIL
financial crisis to avoid losing top tal-
▲
FUND MANAGEMENT
BY RICHARD PARTINGTON ent, in the hope that keeping the best ONLINE payments provider Skrill
staff will lead to increased profits in has appointed Yell chairman Bob
PAY for fund managers is rising more the future. Wigley as its non-executive chair-
quickly that profits, according to Forty per cent of asset management man ahead of an anticipated stock
research by PricewaterhouseCoopers firms increased bonus pools last year market listing later this spring.
(PwC). and a third reduced bonus spend. Wigley, the former chairman of
Asset managers have been reward- However, more than half of the Merrill Lynch until it was taken over
ing staff with increased bonuses in asset managers surveyed said they had by Bank of America in 2009, will
order to keep top talent from moving deferred bonus payments for staff, help to oversee the development of
elsewhere, despite profits rising at a with payments being made in shares the business.
slower pace. and funds to align reward with busi- Skrill, which operates the
Compensation costs as a percentage ness performance. Moneybookers brand, is said to be
of net revenue have increased by four PwC renumeration director Tim considering an initial public offer-
per cent over the last financial year, Wright said: “Despite many firms ing (IPO) as one of its options to
according to 22 firms surveyed by spending more than the previous year raise cash and further grow its busi-
PwC. Yet two thirds of firms said they on bonuses, base salaries are still being ness.
had experienced a fall in profits. negotiated up. A float could raise as much as
Annual bonus spend as a percent- “Ultimately asset management and €200m (£171.6m) for the firm, giv-
age of pre-bonus operating profits also banking share much of the same tal- ing it a market capitalisation of
rose substantially, with a nine per cent ent pool and new hires expect base between €400m and €500m.
increase on average and as much as 20 salaries to be aligned. This in turn is The e-wallet provider has seen
per cent for some firms. pushing existing employees to strong growth since it established
Many firms were found to have lift- demand pay hikes as they notice mar- in 2001, with profits rising at 62 per
ed pay freezes imposed following the ket rates have increased.” Yell’s Bob Wigley is now Skrill’s non-executive chair Picture: Micha Theiner/ CITY A.M cent annually.
CITYA.M. 31 JANUARY 2011 News 19
F&C Asset
Management ANALYST VIEWS: WHAT IS THE LIKELY OUTCOME FOR F&C? By Alison Lock
chairman Nick
MacAndrew (left)
is fighting an
attempt to replace
HAYLEY TAM | CITI DAVID MCCANN| NUMIS
“ “
him with
Sherborne founder
Edward Bramson Whatever happens, it is likely to Regardless of who wins the vote, it
cause continued disruption to ongoing opera- is hard to see any short-term share price
tions. If Sherborne loses the vote it will create upside, but very easy to see significant short-
a share overhang of about 17 per cent, which term downside risk. If Sherborne loses, the
will need to be disposed of – but it will allow share price could fall 30 to 44 per cent, as
existing management to continue to run the Sherborne, Aviva and other supporters’ stakes
company with minimum disruption. If F&C become stock overhangs. If Sherborne wins,
management loses, it will enter a new period we expect Millennium BCP to withdraw its
” ”
of uncertainty that may or may not assets under management and an 11
lead to longer-term value creation. per cent stock overhang from Eureko.
“ Short of breaking the firm up to sell off low-margin businesses, it isn’t clear what F&C should do differently
to address the current issues. Incumbent management has tried to invest in high margin businesses and isn’t to blame
for F&C’s low valuation, which is largely a result of legacy issues, such as lack of organic growth in its funds due to
”
ongoing insurance outflows and a lot of lower margin institutional business. F&C has also lost large chunks of assets
over recent years.
Authorised in the United Kingdom by the Financial Services Authority under the Payment Services Regulations 2010 (reference number 415532) for the provision of payment services.
potential
SPECIALISTS IN GLOBAL +44 (0)20 7557 7245
PROFESSIONAL RECRUITMENT morganmckinley.com
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W
ON’T blame it on myself, I’ll this excuse. Even with the snow Australia’s floods washed away all on the white stuff, adding that the January’s retail figures.
blame it on the weather- effect, what happened to the expect- crops, closed mines, ruined homes, figure was “significantly affected” by B*Witched never had another num-
man”. So sang rubbish Irish ed uptick in retail ahead of the business premises, roads and rail- weather – it said it knocked 0.5 per- ber one after they blamed it on the
girl group B*Witched in January VAT rise? Did we over-esti- ways. Reconstruction will cost vast centage points off GDP. weatherman. Businesses take note.
their 1999 number one hit. Over a mate the strength of the recovery to amounts of money and will require The test comes with indicators that Rebecca Meehan is an anchor at CNBC
Alpha snaps
up Massey in
£4.5bn deal
Crutchfield said the deal would create
▲
MINING
BY HARRY BANKS a global player in metallurgical coal –
a commodity the company believes
ALPHA Natural Resources has agreed should continue to generate profits for
to a $7.1bn (£4.5bn) deal to buy Massey some time.
Energy, which was rocked by a deadly “In terms of the next decade, the
coal mining accident last year. world is going to remain structurally
The deal – the latest in a wave of undersupplied in high-quality metal-
consolidation sweeping the industry – lurgical coal. There’s just not going to
creates the second largest US coal be any massive new supply coming
miner by market value, holding 110 on,” Crutchfield said. When David Jewitt
mines and combined coal reserves of Massey, based in Richmond, was on life support,
5bn tonnes. The deal is expected to be Virginia, put itself on the block in his wife needed our
completed in mid-2011. November after posting a wider-than-
Massey shareholders will receive expected third-quarter loss as a result support as well.
1.025 Alpha share for each Massey of the explosion that killed 29 miners
share in addition to $10 a share in at its Upper Big Branch mine in West When David Jewitt suffered a
cash, for a value of about $69.33 a Virginia in April. stroke, his wife knew they had
share, the companies said. That repre- insurance, but had no idea how
sents a 21 per cent premium over ANALYSIS l Massey Energy Company to make a claim.
Massey’s closing share price of $57.23 p 57.23
on Friday. 60 27 Jan Still in a state of shock, she
Surging Asian demand for coal to called Aviva, where she spoke to
fuel steel mills and power plants has 55
made the sector one of the hottest advisor Mike Matwiejczyk. The
for dealmaking over the past year. 50
first thing Mike did was simply
After the acquisition, Alpha will be to talk through the situation.
the largest supplier of metallurgical 45 Then he started to sort her
coal, which is used in steel making,
in the US.
practical problems.
Alpha chief executive Kevin 1 Nov 19 Nov 9 Dec 31 Dec 21 Jan
At Aviva, we believe that
insurance isn’t just a financial
business. It’s a service that people
HOW WE LED THE WAY ON MECOM call on at some of the most
difficult moments in their life.
MEDIA
VETERAN IN Maybe it’s because we try to
PUSH TO treat our customers this way
REPLACE that we have so many of
LOCKE AS them – more than 53 million,
MECOM
CHAIR in 28 countries.
28th
January
2011
youarethebigpicture.com
29th January 2011
29th January 2011
MECOM APPOINTS STE
PHEN
DAVIDSON WILL BE DAVIDSON AS CHAIRMA
N
MECOM
THE INTERIM CHAIR AT
29th January 2011
LOCKE AS
DAVIDSON REPLACES
MECO M HEAD
22 Focus on Davos CITYA.M. 28 JANUARY 2011
Davos leaders
on defensive
as risks loom
Regulation dominated the agenda at Davos Picture: REUTERS DAVOS 2011 Meanwhile, Prime Minister David
Cameron had to defend the coali-
BY JULIET SAMUEL tion’s ambitious cuts programme
Q. at Davos this year? Where do you stand? Merkel declaring on Friday: “If the with the issue of youth unemploy-
A.
The key point for me is that euro fails, Europe will fail.” ment in the Mahgreb being raised in
A.
There was an interesting change insurers are regulated appropri- Merkel also indicated support for his absence.
in the air compared with the last ately. We’re fundamentally not Sarkozy’s calls earlier in the week for And adding to leaders’ woes was
banks and our core activities don’t pose
couple of years. While no-one is more regulation of commodity mar- the prospect of rising inflation due
a systemic risk to the financial system.
getting over-confident about our future kets due to price inflation: “The to quantitative easing. “Money is
economic prospects, there was some The insurance industry has fared well volatility of commodity prices is not gradually becoming not worth the
through the recent financial turmoil. It’s
sense that it is time to think about only dangerous for those who sell paper it’s printed on,” said China
right that capital should be tested
growth again. However, I think there is a them but those who buy them,” she Investment Corporation president
against the actual economic risks in the
recognition that this growth must be said. Gao Xiqing.
sustainable. business. We’re supportive of this
approach - it’s what Solvency II is based
A.
Business needs a longer term
focus from board level down- Q. nomic outlook, and what
does that mean for Aviva?
A.
wards: sustainability needs to Looking around the world we
WORLD ECONOMY
▲
become part of the corporate DNA. The see a patchy multi-speed recov- Japan’s government debt for 2010 is inward-looking,” he said to delegates.
benefits for the economy and society ery. While a number of markets BY JULIET SAMUEL estimated at well over 200 per cent of “This spirit of opening up the
more broadly are clear and quantifiable. are experiencing difficult economic con- its GDP. Its deficit is lower than some nation is now called for in Japan. With
As an insurer, we’re very alive to this – ditions, we're seeing evidence that some THE Japanese finance minister Banri others’, at seven per cent, but there this belief, this year, I have set ‘the
ours is a long term business. The deci- confidence has returned. Customers Kaieda used the last day of the World are concerns that the debt is simply third opening of Japan’ as a grand
sions we take today have an impact on have been focused on paying down per- Economic Forum in Davos to claim too large to address in light of slug- objective. One specific policy is the
our customers’ financial well-being sonal debt, but we’re starting to see that Standard & Poor’s downgrade of gish growth. promotion of economic partner-
decades into the future. people return to saving. They still have Japanese debt this week was “good Earlier in the day, Japanese Prime ships,” he added, indicating that the
concerns about the future and that timing”. Minister Naoto Kan – who took over in government would promote the Doha
Regulation has been raised makes them more provident. The sav- The minister said that the down- the job in June – had emphasised that free trade negotiations and the trans-
@nouriel 7.30pm
I am off to London after a week in Davos for the WEF.
G20 is turning into G0 as countries disagree on major
Turner to banks: expect KPMG delegate
global policy issues
a regulatory onslaught supports quota
@davos 1.23pm
▲
DAVOS
Davos 2011 media stats: 103k mentions up 102% on
2010. 45k Twitter mentions up 200%. Social media REGULATION
▲
have to do more work and the indus- RACHEL Campbell, global head of
the multiplier #WEF ^am. BY MARION DAKERS try has got to accept that,” Lord human resources for KPMG and one of
Turner told the Telegraph in an inter- the firm’s delegates to the World
Financial Services Authority chair- view. Economic Forum, said that she sup-
@Mlifestyle 9.24pm man Adair Turner has warned banks Turner was responding to speakers ports the conference’s imposition of a
Davos, is a get together for historically rich nations try- that a slew of regulation is on the way from the banking world who had told quota for women this year. The quota
ing to figure out how to beg or steel from the nations to reassure the public that the finan- the World Economic Forum that addi- required the event’s main sponsors to
that will be rich in future cial crisis will not happen again. tional regulation could stifle global bring one female delegate among
Speaking at Davos, Lord Turner said growth. their five spots. “I’m supportive of the
that banks aiming to escape further Lord Turner told journalists that initiative – anything that helps get
regulation by moving abroad believed the variety of debates at Davos this women access to networks,” said
@jdickerson 6.20pm “a complete fantasy” and pledged to year was a sign of success: “[W]hen Campbell. “I wish there were more
Before Twitter how did the people at Sundance keep crack down on unregulated areas of the world gets gripped by one big women here without a quota. And I’d
up with what the people at Davos were doing? finance. theme it usually either means there’s have been quite against targets and
“There are still important elements a big disaster or else people are get- quotas a few years ago. But seeing the
of the prudential regime to put in ting in the grip of some new irra- experiences of my female colleagues,
place, such as shadow banking: we tional exuberance.” I’m becoming firmer in my view.”
In
association
with
CITYA.M. 28 JANUARY 2011 Focus on Davos 23
BY JULIET SAMUEL Davos, protestors handed out leaflets ond night, with Deutsche Bank’s Following on from a previous item
saying: “Worldwide heads of state are Josef Ackermann and Prudential’s about Davos’ many sponsored
ANTI-capitalist rioters overran one of meeting in Davos in order to celebrate Tidjane Thiam sticking around to lounges, we hear that there was
the main train stations in Davos over themselves and advance global the small hours. And props must go some fierce lounging rivalry
the weekend, protesting that the exploitation and oppression. The trail to Standard Chartered for its Asian- between two of the big-four
World Economic Forum (WEF) was a of destruction stretches over the entire themed nightcap, which featured accountants, KPMG and
platform for business and political planet.” half a dozen PricewaterhouseCoopers. Their
leaders that “exploit the planet”. One train carrying protesters out of elaborately lit styles could hardly have
Delegates on their way home from town was diverted and held for nearly ice sculptures been more different:
the conference had to go around the an hour as armed police with their (including a KPMG boasted a
crowd as the protesters clashed with faces covered boarded and arrested Buddha head) collection of
riot police armed with both rubber passengers. They held them in the and delicious stately decora-
bullet shotguns and handguns. snow and sub-zero temperatures for fresh fruit cock- tive additions
Despite their enthusiasm, however, searches before taking them to police tails. to the break-
the protesters numbered fewer than stations and questioning them over McKinsey fast room with
the 2,500 delegates to the WEF. the course of three hours. meanwhile, a view out onto
dropped its the Alps and a deli-
exclusive entrance cious free lunch buf-
Brady plan for Greece debt Osborne: turmoil policy around mid- fet everyday.
night after handing But rival
out dozens of psyche- P r i c e w a te r-
without cuts
delic necklaces and bringing in a houseCoopers went for something
big band booked till the small that little bit more stylish. The PwC
hours. “Thought Cafe” offered the wander-
EUROZONE CRISIS
▲
country to receive an EU/IMF bailout Few could boast the exclusive ing delegate a dreamy subter-
BY HARRY BANKS in May, receiving €110bn (£94.3bn) in location nabbed by business PR ranean landscape dressed in
loans after it was forced out of capi- supremo Matthew Freud, however, erratically cut strips of white nylon,
▲
POLITICS
The EU, the IMF and the ECB are tal markets due to its massive gov- who held his gig in a log cabin at lit in funky pink and orange and
working on a solution to reduce ernment debt and budget deficit. CHANCELLOR George Osborne yes- the top of the funicular (Davos’ cliff stretched into canopies and cubby
Greece’s debt along the lines of the Under the three-stage plan, Greece terday reiterated his defence of the railway that takes passengers 300m holes for important meetings. And
Brady plan, which rescued Latin would borrow from the eurozone’s coalition’s cuts programme after up into the mountains for a few the achingly cool white leather and
America from bankruptcy in the new rescue fund to buy back Greek warning at the World Economic minutes’ ride). Luckily the cham- see-through plastic furniture was
1980s, according to reports. bonds currently owned by the ECB Forum that the UK must not be pagne at the top more than made complemented by several pointless-
Speaking at the World Economic and private bondholders at about 75 seduced by “siren” calls to go easy on up for the oddness of having one’s ly large tubs of overripe oranges, for
Forum in Davos on Friday, Greek per cent of their nominal value. the deficit. Osborne said: “If on ears pop on the way to a party. those feeling guilty about their
finance minister George The EU and the International Monday morning I went to parlia- fruit intake.
Papaconstantinou said there were Monetary Fund (IMF) would then ment... and said, ‘I’m abandoning Yet it wasn’t the nylon or the
informal talks to find ways to reduce extend the maturity of their bailout the deficit reduction plan that DAVOS BABIES fruit that won the day so much as
Greece’s debt burden without loans to Greece to 30 years. Private Britain set out last year’, what do you It’s not just the wizened, middle- the PwC lounge’s ready access to
restructuring it, including a debt lenders owning more than €100bn of think the reaction would be? Within aged execs keeping up the party power sockets for laptop-users.
buyback. Greek bonds would be invited to minutes Britain would be in finan- spirit, however. They’re helped After all, the Davos crowd is ever a
Greece became the first eurozone extend their maturity. cial turmoil.”
24 News WORDS BY ROGER BAIRD CITYA.M. 31 JANUARY 2011
300
290
280
270
price of 415p. The broker believes that
Melrose can sell its Dyncast business for
£370m to £400m in the next few months,
freeing up resources for a further acquisition.
UBS also likes the firm’s high US exposure and
1 Nov 19 Nov 9 Dec 31 Dec 21 Jan forecasts growth in its energy division.
structure is not rapidly upgraded. when they decide where to locate.
In this light, I hope the govern- Extra capacity is needed, though ANALYSIS l Great Portland Estates GREAT PORTLAND ESTATES
ment’s aviation policy review will it may require unpopular decisions. 370
p 360.50 Panmure Gordon rates the property group
be a major step towards resolving We understand both the political 28 Jan
capacity issues that could act as a and environmental issues that sur- 360 “hold” with an increased target price of 344p.
bottleneck to future growth. round aviation policy. Wherever 350
The broker has tweaked its earnings forecasts
That is why we are publishing a new airport capacity is planned for 2011 and 2012 following an upbeat trading
new report today highlighting the there will be objections from those 340
statement last week, with good increases in
CITY COMMENT need for urgent action in this area. likely to be affected or concerned
Access to aviation services is a crit- about the environmental impact. 330 both property values and rental growth in the
STUART FRASER ical requirement for firms across These are important issues but
320
last year. However, Panmure’s preferred large-
the City and London as a whole. We have to be balanced against the eco- 1 Nov 19 Nov 9 Dec 31 Dec 21 Jan cap property play remains British Land.
W
HEN it comes to interna- must rise to the challenge of nomic benefits. We need to plan
tional trade and inward increasing demand, with passenger now and have a Government policy ANALYSIS l BG Group BG GROUP
investment London is numbers across London’s airports that deals not just with the longer- 1,400 1,334.00
indisputably the principal forecast to rise from 140m a year in term future but also with the next p 28 Jan Citigroup has started coverage of the oil
1,350
gateway for the UK economy. 2010 to 400m in 2050. few years. Frankly, if left too long explorer with a “buy / medium risk” rating and
The fact that the capital made an Long-term solutions such as the the business will have migrated else- 1,300 an initial target price of £16. The broker sees
estimated net contribution of proposed hub airport are welcome, where to continental Europe. 1,250 BG Group as a strong performer in the
£1.4bn in 2009-10 highlights but London and the UK should not To safeguard our future, we need
London’s vital role in driving eco- stand still for decades until such a firms to choose London and the UK 1,200 European oil sector, with an 18 per cent out-
nomic recovery forward. project becomes operational. in the first place. A sustainable and 1,150
performance compared to its peers since
But, as the Mayor pointed out ear- Although technological advances competitive aviation policy is essen- January 2010. It also approves of BG’s
1,100
lier this month, there is a danger mean that more business can be tial to achieving this. 1 Nov 19 Nov 9 Dec 31 Dec 21 Jan improved portfolio and visibility.
that our competitive position could done remotely, air services remain a Stuart Fraser is policy chairman at the
be undermined if transport infra- major factor for international firms City of London Corporation To appear in Best of the Brokers email your research to notes@cityam.com
E
UROPEAN stock markets are all 28 Jan
7,200
expected to trade lower on the
open this morning, following
the heightened turmoil wit- 7,000
nessed in Egypt over the weekend.
GFT is quoting the FTSE 100 index 6,800
to open down 49 points from
Friday’s close, at a level of 5,932. 6,600
Elsewhere in Europe the German
Dax is called down 32 points at 1 Nov 19 Nov 9 Dec 30 Dec 20 Jan
7,070, and the French CAC is quoted
down 27 points to open at 3,975. ANALYSIS l FTSE
6,100
5,881.37
28 Jan
REGIONAL SELL-OFFS
Regional stock markets in the 5,900
Middle East were suffering major
sell-offs yesterday, with the Dubai
stock exchange down almost seven 5,700
per cent soon after opening.
The concern will be whether the
violence will spread further afield 1 Nov 19 Nov 9 Dec 31 Dec 21 Jan
U
S STOCKS may struggle to come if earnings do not outper- more consolidation, said Matt
return to firmer footing this form and erode optimism about McCormick, a portfolio manager at
week if anti-government profits. The government’s January Cincinnati-based Bahl & Gaynor .
riots in Egypt destabilise the jobs report on Friday will highlight Next week, 102 S&P 500 compa-
Middle East, keeping investors on the week’s economic data. nies are expected to report, includ-
edge. Monday could see a bounce-back ing Dow Chemical and United
Cautious trading could also after Friday’s losses, followed by Parcel Service.
26 CITYA.M. 31 JANUARY 2011
T
Wednesday, The Daily. for January. row - expected to be tries landmark elections HE EMBATTLED oil giant ing average, which is potentially
around 10.1 per cent. three months ago – the first BP may have found sup- another buy signal. Capital
l The oil giant Exxon l The USA’s personal in 20 years. port after ingratiating Spreads quotes a price of
Mobil reports earnings income and spending statis- l The American ADP itself with the Russians $18.46-$18.49.
today. tics are out today at measure of employment l President Obama will over the controversial Rosneft Investors in the UK’s premier
1:30pm. comes out on Wednesday. tomorrow visit deal. But threats continue to satellite TV provider, BSkyB,
l As does budget airline Pennsylvania for the annual linger over the Gulf oil spill and will be rubbing their hands after
RyanAir, which releases its l As is the Chicago Fed’s l On Thursday, the British Groundhog Day winter fes- brokers who had been viewing a smashing set of first-half
third quarter earnings purchasing managers index PMI services index for tival. the stock as something of a bar- results. While an increase in divi-
results today. (PMI) for January, which is January will be released, gain are now tempering their dend is always welcome when
due out at 2:45pm expected to show a flat l The outgoing Irish Prime outlook. Combine this with wan- sales, revenue and profit have
l Tomorrow the iPhone 50.0 Minister, Brian Cowen, is to ing oil prices and the fact that risen, shareholders will be hold-
chip manufacturer ARM l Germany’s unemploy- dissolve Parliament tomor- this week's earnings statement ing out for a windfall capital
Holdings releases its fourth ment rate statistic will be l The ECB announces its row and announce a date could offer some additional gain.
quarter results, which released tomorrow. HSBC policy rate decision on for a national election, after insight and the 500p per share News Corp, if given the green
should have benefitted predicts it will be 7.4 per Thursday. It is widely which he will stand down. level may remain somewhat elu- light by the regulators to go
from demand for iPhones. cent. expected to keep rates at 1 sive for a while yet. The current ahead and bid, may now find
per cent. l President Lee Myung-bak IG Index price on BP is 482.6p- investors demand a premium for
l Mining group l The UK’s manufacturing of South Korea will give a 483.7p their stake. ETX Capital is quot-
Antofagasta releases its PMI figure is out tomorrow, l The American non-farm live broadcast tomorrow to Pfizer, the global biopharma- ing 772.5p-773p for the rolling
fourth quarter production with the consensus estimat- payrolls data comes out on discuss diplomacy and secu- ceutical company is due to daily contract.
results on Wednesday. ing expansion at 58. Friday at 1:30pm. rity in the Korean peninsu- report its fourth quarter 2010 Daniel Knowles
lar.
CITYA.M. 31 JANUARY 2011 Wealth Management 27
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28 Wealth Management | Behavioural finance CITYA.M. 31 JANUARY 2011
J
OHN MAYNARD KEYNES once said able with it, so they’re less likely to make faced with the beautiful but deadly sirens. you have a supermajority.” According to
that “there’s nothing so dangerous decisions along the way that are detrimen- Picture: GETTY But whereas Ulysses tied himself to the Davies, building up good habits is the key
as the pursuit of an rational invest- tal to their long term performance.” mast of his ship to avoid the deathly lure, to avoiding stupid emotional decisions.
ment policy in an irrational world”. Davies argues that most investors have Davies is more reluctant to lock investors And with financial markets and confi-
Despite that advice, every day, people try to an inbuilt tendency to “buy high and sell in. “The people who are most nervous, dence now gradually recovering, Davies is
construct rational, risk balanced portfo- low”. When investments are doing badly, most engaged with the short term, are the expanding his ambitions a little further.
lios. And often they fail, instead buying and so cheaper, people are wary of putting ones who when they find themselves He argues that the importance of distin-
what is fashionable, or panicking when money in – they fear regretting it. But at locked in, are most distressed by it,” he says. guishing between long term and short
they should be cool-headed. the top, “when all your friends at the din- Instead: “We structure your portfolio in term decision making is fundamental to
According to Dr Greg Davies, the head of ner party are telling you how well they’ve a way that throws oil on the waters,” other areas of life – including government
Barclays Wealth’s unique behavioural done, it flips over – suddenly it’s fear of smoothing out the ups and downs of the and corporate management.
finance team, the problem isn’t so much not doing something”. market. Or alternatively: “We can help to “Our natural, emotional, institutional
that pursuing a rational investment policy People put their money in, and then the try and get you to sleep through the structures are all geared towards the short
is dangerous – it is that it is difficult. “It’s bubble bursts. Davies points out that not waves” by distancing clients from their term.” As a result, people from politicians
not like there’s ever been any shortage of only did individual investors pour money portfolios, and so helping them see the to corporate managers tend to be judged
good advice” he says. “The problem is not a into stock markets at the peak of the “bigger picture.” on their short term performance, to the
lack of advice, it’s a lack of ability to follow boom, and so lost out most in the crash, detriment of long term decision making.
through on it.” they also failed to benefit from the recov- BUILD UP GOOD HABITS That helps cause crises, exacerbate prob-
While the financial industry has been ery in Spring 2009. Instead the gains But portfolio structure isn’t everything – lems that could have been planned for and
hiring physicists and other “quants” for flowed mostly to institutional investors habits matter too. Davies reckons that one otherwise makes the world a less con-
decades to analyse markets, Davies brings who were able to put aside their fears. of the reasons why institutional investors trolled, reasonable place.
something rather new to finance – psy- do better than individuals is because they But while Davies’ team might help you
chology. In his view, the average investor is EMOTIONAL DECISIONS ARE COSTLY have to adhere to a strict set of rules. “Nick make your investment strategy a little
self evidently not always the rational According to a study Barclays commis- Leeson and Jerome Kerviel are the excep- more rational, they can’t do much about
“homo-economicus” that classical finance sioned from the Cass Business School, tions that prove the rule – when profes- the irrationality of the entire world.
theory assumes. Rather he is human, with emotional decision making costs the aver- sional traders get around this, they can Unfortunately enough, on that at least,
emotions and habits, and those can derail age investor 1.2 per cent of performance cause more damage than any individual” Keynes might still be proven right.
any rational investment plan. per year – hardly insignificant. More
Together with his highly academic team importantly, the distribution is quite wide CV | DR GREG DAVIES, BARCLAYS WEALTH
(four have PhDs and continue to con- – so some investors lose an awful lot more.
tribute research), Davies has spent the last Realising that, Davies divides his clients
four years trying to understand how our into two groups – high composure and low
human foibles sometimes prevent us from composure – through a simple profiling From: Born in Cambridge but l MPhil in economics
making classically “rational” decisions. test. High composure people can deal quite grew up in Johannesburg l PhD in decision theory and
The team then tries to provide a personally well with the ups and downs of investing,
tailored investment plan designed to and so they are advised to get traditional,
Age: 35 behavioural finance
account for clients’ emotions. risk balanced portfolios. Davies’ interest is Education:- Academic activities:
“We’re not saying classical finance is in the low composure individuals – people University of Cape Town l Guest lecturer at the London
wrong” he says. “It just lacks the human said to have a “high emotional involve- l BBusSci in philosophy, econom- School of Economics
element. We want to construct portfolios ment with the short term,” or more sim-
that are right in the classical sense of hav- ply, the anxious. ics and finance l Honorary research fellow at
ing the risk-return tradeoffs, but right also Low composure people tend to find loss- University of Cambridge University College London
in the sense that the customer is comfort- es very distressing and to get overexcited
Lifestyle MEATY COOL COMES TO 29
COLUMBIA ROAD
| Travel BRAWN, REVIEWED IN
TOMORROW’S CITY A.M.
I
T can’t be that difficult to find a environment reminiscent of an ocean
boat, especially if it’s moored. When liner voyage, even though the ship would The floating spa is
the taxi driver said “You can’t miss remain at dock, contemplating the moored in the
it!” my heart sank as that is precisely Montreal skyline and the river,” says Jean industrial docks of
what I knew I would do. Pelland, project design architect and sen- Montreal.
In my defence, my two colleagues and I ior partner at Sid Lee Architecture.
were battling a snowstorm in the dark, in All the nautical features of the boat
downtown Montreal, knee-deep in newly remain – the 678 portholes, the
arrived snow. A dog walker saved us from wrought-iron rails and stairs and the
frostbite by pointing to the other side of wooden decks, but the minimalist
the St Lawrence River and a nearby foot- design, using calming, soft colours of
bridge. grey, black and white is welcoming and
From the outside, Bota Bota appears restful.
quite small; it’s only when you walk up Spas are something girls like, but
the gangplank and into the reception owner Natalie Emond told me that men
area you realise that the boat is spacious. are making up half of their customers
It’s also a dedicated spa; in fact, it’s the and there has been a deliberate attempt
world’s first floating spa and has only to appeal to both sexes.
recently opened. After checking into reception, we were
Turning an old ferry boat into a given a bath robe and towel and taken
Scandinavian spa was a tall order for the downstairs to our locker to change into
design team and took two years to com-
plete. “Our team set out to recreate an CONTINUED ON PAGE 30
30 Lifestyle | Travel and Gadgets CITYA.M. 31 JANUARY 2011
CONTINUED FROM PAGE 23 With the feel the snow flakes entering my mouth
and I even scooped up a handful of snow
and reading from a selection of maga-
zines, or you could choose a squishy sofa.
Chic room itself is a delight. Full length
windows flood the room with light and
our swimwear. The spa focuses on water
treatments, to energise and aid relax-
temperature from the outside of the tub to make a
snowball. It was surprisingly relaxing,
Downstairs are the 30 treatment
rooms, all with portholes and mood
wonderful views of the city; leaf pat-
terned mats in beige and black, light
ation. With the temperature minus 14
outside, I was not sure I wanted to try
minus 14 being cosseted by the warm water with
the vibrancy of the city just across the
lighting. It’s a dedicated quiet zone to
afford the maximum benefit of peace
grey sofas and orange and red cushions
help to make the space feel bright
the hot tub out on deck, but for me it
was the high point of our visit.
outside, I river.
My colleagues had tried the sauna and
and relaxation to the clients. On offer
are several facials (from $85), body treat-
and fun.
Bota Bota has a café serving reasonably
There were perhaps twenty steps to
take to the tub, across a snowy deck.
was not sure steam room and then we cooled down in
the plunge pool, which takes a bit of
ment (from $60) and massages, either
Californian or Swedish (from $90). Both
priced light meals and drinks for spa cus-
tomers, so you could spend several hours
Once inside my womb-like sanctuary, I
was able to view the skyline, like a string
I fancied the courage if you are not used to it. An alter-
native is to take a cold shower. Wrapping
are fairly firm, though the Californian is
slightly more gentle.
here.
If you are lucky enough to find your-
of fairy lights and all around me, outside
the tub, the inky black of the river.
hot tub out up in your bathrobe, it’s now time to
relax, perhaps positioning yourself in a
If you are not up for being pummelled
or don’t want a facial, a manicure or
self in Montreal, it’s worth a visit. Just
try to choose a day when it’s not snow-
If I tilted my head backwards, I could
on deck large porthole, padded for the purpose pedicure could be the answer. The Bota ing. www.botabota.ca
G
IVEN the furore surrounding the Royal Wedding, there has family home in the heart of Andalucía near Gaucin Four Seasons returns to Mayfair this
been surprisingly little speculation as to where Prince in Spain. It offers William and Kate the greatest week with the re-opening of the Four
William and his new wife Kate will go for their honeymoon, privacy in what is a madly romantic setting. They Seasons Hotel London, Park Lane. With
even though it’s just three months away. can ride, ramble, swim, mountain bike, golf, kite views over Hyde Park and interiors
Recognizing the tough times we are all facing and keen to show surf and enjoy home-cooked Spanish food far out designed by Pierre-Yves Rochon, the
his understanding I believe that His Royal Highness will opt for a of reach from the prying paparazzi and, if they so hotel is sure to become one of central
destination that is neither ostentatious nor likely to compromise desire, go on exquisitely planned several-days riding London's must-stay destinations. Call
their security, but certainly remote and reflective of their love of all trips. The home of the deeply British Arbuthnot the hotel on 020 7499 0888;
things outdoors and sporty. family who would host their stay, Almuña ticks all www.fourseasons.com/london.
I am going on the assumption that – being as clever at PR as they the right boxes. And should the lure of the bright
are – the couple will shun the glitz and glamour of Bali or Las lights prove overwhelming, Sotogrande is but a
Vegas, not least because of fears of a double-dip recession. Here are short drive away. www.arbuthnottholidays.com
my five picks for the most likely top honeymoon spots and natural-
ly they are all in the very best of taste.
Hell Bay, Scilly Isles Crillon le Brave, Provence Hemingways, Kenya Los Potreros, Argentina
Invasion of the
smart machines
GEEK
SPEAK
Mount Gay, Barbados: a tour @steve_dinneen
T
HE heart of the Barbados rum molasses. This is then diluted with water The Mount Gay day, to scrub the filthy chimney of my existence.
trade is perched at the northern- and yeast is added for fermentation in Refinery produces But there is hope. Intel’s European boss Tristan Wilkinson tells me the technol-
most tip of this small Caribbean huge bubbling industrial vats for at least some of the most ogy giant, which churns out more chips than McCain, has a dream of putting a
island. High in the mountains in two days. The sweet, heady smell in this famous rum in the microchip inside anything with a plug. This will presumably lead to a utopia where
the St Lucy district sits the Mount Gay part of the factory makes the place smell world. blenders not only dice vegetables, but get out in the garden and plant them; three-
refinery, surrounded by a nine feet tall less like a place of business and more bar hearers trundle after your grandmother during the winter, and irons not only
sugar cane plantation and gazing out like a private club where the time has de-crease your clothes but detect whether they are hideous and, if they are, set
over wild Atlantic waves which crash run way past midnight. After this, the fire to them.
into the Florida coast 1,600 miles away . liquid is heated in traditional pot stills The idea of smart homes, kitted out with smart appliances, has been around for
This is where Frank Ward, head of the (which can take up to nine days) or mod- years, with the super-rich and the slightly unhinged already making use of them.
refinery, comes to work every day. The ern column stills (which takes hours). At But 2011 will be the first time many of the innovations will be available for main-
rambling collection of 100-year-old brick this point the alcohol, which boils at 78 stream consumption.
buildings and wooden warehouses is not degrees centigrade, is separated off from A firm called Warmup is set to launch a smart thermostat, the 3iE, that allows
much to look at, but it is here where the water, and is collected in tanks. users to micro-manage the temperature in every room of their home from one
some of the best rum in the world is The rum is then put into second-hand funky, iPhone-inspired touch-screen controller (“the ultimate addition to the mod-
made. barrels to age for anything up to 25 years ern home environment” reads the rather optimistic press release).
Mount Gay, along with Appleton in or more. The most common barrels used LG’s Hom Bot, a “smart” vacuum cleaner, uses ultrasonic and infra-red sensors
Jamaica, are two of the most famous are from the US whiskey industry, which to plot a course around your home. It can remember where furniture is and will
names among the 40 or so brands of only use their barrels once. Rum makers “learn” quicker routes the next time it is unleashed. And, thankfully, it can tell the
rum made across the Caribbean. Among also use cognac barrels from France, and difference between living things (pets, children) and inanimate
the rum cognoscenti they are admired Ward has recently been trying to get his objects, hopefully preventing hamster-related accidents.
for the subtle flavours they have consis- hands on sherry barrels. The Korean firm is also launching a smart washing
tently been able to produce for hundreds Ward says: “The rum reacts both with machine that will recommend the most energy efficient-
of years. Mention that you are quite par- the air in the barrel and draws out some cycle for your clothes and work out whether it is cheaper in
tial to a Barcardi and coke every now and
again and you will be politely sent to the
of the flavours in the wood. But no one
has worked out exactly what happens in
Mention your area to wash the load during “off peak” hours. In a baf-
fling display of organisation, the appliance will even churn
nearest corner.
Those in the know take their rum
that barrel over all that time.”
Around 95 per cent of Ward’s output
that you are out daily, weekly or monthly reports on its energy consump-
tion, although quite who will spend their time sifting through
neat, over ice, or with a splash of water.
Although, to be fair, cheaper white rums
is dedicated to Mount Gay but this does
leave him some spare capacity. Over the
partial to a them is unclear.
Other firms are releasing smart water-
are designed to be drunk with coke or
punch. And if your girlfriend has left
last several years he has developed a dis-
tinctive triple distilled pot still rum
Bacardi and heaters, smart alarm systems and smart
refrigerators. Soon everything will be
you, you are permitted to sink a double
shot into your beer. This is called a bicy-
called Mount Gilboa, the old name of
the region.
Coke once in smart. The machines have already
taken over – they are just far more
cle in Barbados, though it is not recom-
mended that you try riding one after a
Ward plans to up production. At the
end of my a tour of the factory, his
a while and boring than we imagined.
Follow Steve on Twitter:
couple of these.
They have been making rum on this
cousin Andrew Ward explains the busi-
ness will buy more stills and plans to
you will be @steve_dinneen
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COFFEE BREAK
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QUICK CROSSWORD
SUDOKU KAKURO
18 10 39 10 8 32
7 22
16 13 24
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 34 10
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 9 10
above or to the left of it. 15 29 20 5
You can only use the digits 1-9 9 16 13
and you must not use the
6 22 12
45
same digit twice in a block.
The same digit may occur 4 14 8
19 11
more than once in a row or
column, but it must be in a
3
9 17
4
18 15
15 35
separate block.
11
45
23 8
ACROSS DOWN
1 Lads (5) 1 Bestow (6)
WORDWHEEL H F
4 Augmenting (5)
7 Authoritative command (7)
2 Slightly open (4)
3 Unspecified
Using only the letters in the Wordwheel, you have person (7)
8 Comedy characterised by
ten minutes to find as many words as possible,
A E improbable situations (5) 5 Dish of rice, hard-
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters S 10 Bloodsucking insect
boiled eggs and
flaked fish (8)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
W N parasitic on warm-
blooded animals (5) 6 Aquatic South
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
L S 12 Synthetic fabric (5)
American rodent
resembling a
14 Characteristic of a city (5) small beaver (6)
QUICK CROSSWORD 1 5 5 9 7 7 5
F E U D A L I S M
4 9 3 2 5 6 7 8 1 SUDOKU
16 River which flows
through Paris (5)
9 Placed very near
together (5-3)
8 5 3 1 2 6 3
H M A O L D
4 6 2 1 3 1 3 2 17 Plant exudation (5)
A H E A D T H E S E 11 Daybreak (7)
U N D O T E O 5 7 1 1 3 9 7
19 Italian composer
G O D L Y O P T E D 4 6 8 7 9 13 Niche (6)
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A
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1 3
7 9 8
2 9 4 6
4 9 3 8
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WORDWHEEL
remembered for his
operas (1792-1868) (7)
15 Number written
I G I A N H A as XC in Roman
2 1 6 4 6 2 9 The nine-letter word was
L O O P S S P A I N
Y R L E I T 4 5 9 3 2 8 1 7 6 20 Mooring (5) numerals (6)
3 4 2 1 4 2 1
DYSLECTIC
V A L E N T I N E 21 Access (5) 18 Gentle (4)
Sport
33
CHELSEA READY TO GO TO THE
WIRE IN RACE TO SIGN TORRES
CHAMPIONS MAY INCREASE BID TO
£50M TO SNARE SPANISH ACE: P34
England fall
Misery but to big defeat
no tears as as injury list
lengthens
Murray falls
at last hurdle
▲
CRICKET
BY JAMES GOLDMAN
ENGLAND captain Andrew Strauss
admitted his side “got what they
deserved” after another emphatic
defeat, this time by 51 runs in Brisbane,
allowed Australia to take an unassail-
added. “He served well, he didn’t make able 4-1 lead in the one-day series with
▲
TENNIS
many mistakes from the back of the two games to play.
BY FRANK DALLERES court, he moved really well and he hit The hosts were restricted to an emi-
BRITISH No1 Andy Murray admits he is the ball cleanly. He played great nently attainable total of 249, due to
getting used to the heartbreak of los- although I would have liked to have the excellence of Chris Woakes, who
ing grand slam finals after a brilliant played better.” took six for 45 – the best ODI figures
Novak Djokovic beat him to the While Djokovic, 23, flourished, by an England bowler on foreign soil.
Australian Open in straight sets. Murray, the elder by seven days, was But England again fell well short
Third seed Djokovic dismissed lacklustre, and the writing looked to be with the bat, the third wicket went
Murray 6-4, 6-2, 6-3 to ensure the 75- on the wall as soon as his serve was bro- down with only 22 on the board and
year wait for a major winner from ken at 5-4 in the first set. The 2008 nobody passed 50, and Strauss knows
these shores lingers and remind the champion duly served out and then major improvement is needed in that
Scot of the crushing defeat he suffered opened up a 5-0 lead in the second, department if England are to compete
to Roger Federer 12 months ago. from which Murray never recovered. at the upcoming World Cup.
On that occasion Murray was Even when he did fashion a break early “We’re very disappointed with the
reduced to tears. Yesterday, however, in the third, Djokovic immediately manner in which we’ve played as a bat-
his eyes stayed dry – despite earning reasserted his authority by breaking ting group so far in this one-day series
the unwanted distinction of back twice. and we’ve got what we deserved which
becoming the first man to Murray, who had one is Australia have gone on and won the
fail to win a singe set in day fewer to recover series,” he said.
three grand slam final from his semi-final “We still want guys to play positively.
appearances. exertions, looked Murray’s defeat We’ve got the World Cup coming up –
“It’s better than it sluggish in the was his third in a we’re going to need to play positive
was last year,” said evening heat, but grand slam final cricket.
Murray. “It is obvi- brushed off sugges- “We’ve played very badly. I think we
ously tough and dis- tions he had been Picture: PA certainly could have won the first two
appointing but I’ve carrying an injury. games – in fact we probably should
got to deal with it.” “I thought I moved HAVEN’T WE BEEN HERE BEFORE? | MURRAY’S OTHER SLAM FINALS have done but what’s concerning is
Last night in decent,” he said. “I that we haven’t played smart cricket.
Melbourne was billed could have moved bet- That’s disappointing.”
as Murray’s best chance ter but, no, I wasn’t While the batting failures are largely
yet to land his first grand injured. Against Novak you in the mind the concern over their
slam, with a smooth progres- need to be firing on all cylin- bowlers is physical after injuries to
sion to the final and both of the top ders and I didn’t move as well as I Ajmal Shahzad and Chris Tremlett.
two seeds Rafael Nadal and Federer would have liked.” Shahzad suffered a hamstring injury
already out. Djokovic pinpointed his snaring of while bowling and had to bat with a
But Serbian Djokovic (inset) swept to the first set as the cornerstone of an runner, while Tremlett was ruled out
his second Australian Open title in impressive triumph. “The turning before the game due to a slight side
breathtaking style, and Murray insisted point was probably the last game of the strain.
his former rival on the junior circuit, first set when we had some incredible Murray reached his very first grand slam Federer was again the opponent when Both will have scans on Monday and
who beat Federer in straight sets in the rallies from the baseline,” he said. “It final at the US Open in 2008, only to be Murray made his next slam final, at last after front-liners Graeme Swann and
semi-finals, had been flawless. was a great match. From the start to emphatically beaten by Roger Federer 6-2, year’s Australian Open, and again he won in Tim Bresnan flew home early due to
“I think he would have beaten every the last point I did what I intended to 7-5, 6-2 in less than two hours straight sets 6-3, 6-4, 7-6 injury last week, Strauss said a replace-
other player on the tour tonight,” he do tactically and what I prepared for.” ment may be called upon.
SPORT | IN BRIEF
Quins saunter to historic
five-try win in Abu Dhabi
Casey wins on Monty course
GOLF: England’s Paul Casey ended his
20-month wait for a title with a dramat-
ic one-shot victory at the Volvo Golf
Champions in Bahrain. Casey and
Sweden’s Peter Hanson were tied going
into the last hole, but the former made win. Karl Dickson ran in two tries while
par to finish on 20 under while Hanson
could only manage a bogey. Casey’s win
WASPS 13 George Lowe, Ceri Jones and Sam
Smith also crossed in a contest missing
came on a course designed by Colin a host of stars due to RBS Six Nations
Montgomerie, who controversially left
him out of his Ryder Cup team last year.
HARLEQUINS 38 preparations.
Tom Varndell and Joe Launchbury
went over for Wasps, but it was
Clijsters plays down slam sweep
▲
Chelsea step
SPORT TENNIS
up chase for
£50m Torres
▲
Picture:PA
slams England have let it be known
they would accept a
The Reds could use
the money, not only
Visit: www.CityAM.com/newsletter
CITYA.M. 31 JANUARY 2011 Sport 35
FULHAM 4
Obinna treble
TOTTENHAM 0
fells Forest as
▲
FOOTBALL
BY JAMES GOLDMAN, CRAVEN COTTAGE
TOTTENHAM manager Harry
Keane signs up
Redknapp admits he’s run out of time
to bolster his side’s forward line with
the addition of Newcastle’s Andy
Carroll or Atletico Madrid’s Sergio
Aguero.
WEST HAM 3
Redknapp watched Jermain
Defoe and Peter Crouch fire
blanks again in a humili-
NOTTM FOREST 2
ating FA Cup defeat at
▲
Craven Cottage as FOOTBALL
two penalties from Murphy struck twice from the penalty spot against his former club Picture: ACTION IMAGES
Danny Murphy, a WEST HAM boss Avram Grant had
Brede Hangeland But the Tottenham “We are down to two central defend- two good reasons to be cheerful after
tap-in and a fine manager, who has ers,” Redknapp added. “Kaboul is hav- following up an FA Cup victory with
solo strike from allowed Robbie Keane ing an operation on his knee and the loan signing of Tottenham striker
Moussa Dembele,
all before half-time,
to join West Ham on
loan until the end of the
could be out for six weeks. William
Gallas has a hip injury.”
Non-league Crawley Robbie Keane.
The arrival of Keane until the end
did the damage.
Defensively, as the
season, denied
knowledge of his club’s
any Dawson’s poor backpass had already
contributed to the concession of the handed Man United of the season was confirmed after
Victor Obinna’s hat-trick earned the
scoreline suggests, the vis- pursuit of Carroll. first penalty – converted by Murphy in Hammers a comeback win.
itors were a shambles, but “I never made a bid for Andy the 11th minute after Clint Dempsey Nigerian Obinna put the home side
they were no better up front where Carroll. Maybe the chairman did but I had been felled by Alan Hutton – and CRAWLEY TOWN, the first non- ahead and then brought them level
Defoe and Crouch, who were given 45 never did. Nobody has told me we’ve he gave away the second, hauling back league side to reach the FA Cup’s again, after goals from Nottingham
minutes each, failed to test David made a bid,” said Redknapp, whose Dembele, leaving referee Phil Dowd fifth round since 1994, have been Forest pair Dele Adebola and David
Stockdale. club had a £38.5m bid for Atletico’s with little option but to dismiss him. handed a plum draw away to top McGoldrick.
With Defoe yet to break his Premier Aguero turned down last night, accord- Hangeland nudged in the third flight leaders Manchester United. And he completed his treble with a
League duck this season and Crouch ing to the Spanish club. “We won’t get after 23 minutes and Dembele round- penalty early in the second half to set
having only a solitary strike against a striker in.” ed off the scoring with a memorable West Ham v Burnley up a fifth round tie against Burnley at
Blackburn to his credit in the bread and Spurs are also facing up to a defen- strike from just outside the penalty Notts Co/Man City v Aston Villa Upton Park.
butter stuff, Redknapp was expected to sive crisis with Redknapp revealing area in first-half stoppage time. Stoke City v Brighton Keane was in east London to watch
invest in another forward this January. that Younes Kaboul faces and opera- Delighted Fulham boss Mark Birmingham v Sheff Wed the game and West Ham co-owner
Carroll, who has struck 11 times in tion, William Gallas is playing with an Hughes said: “We wanted to make it Leyton Orient v Arsenal David Gold said: “We’re delighted to
his first full season in the top flight, injury, while Michale Dawson (inset) is hostile coming out of the blocks for Everton/Chelsea v Reading sign a world-class striker.”
has emerged as Redknapp’s top target suspended following the professional them and we managed to force a few Man Utd v Crawley Town Grant added: “He (Keane) is not just
and was reported to be the subject of a foul which ended yesterday’s match as errors from their defenders and we Fulham v Bolton/Wigan a good player, he is a good character
failed £23m bid last week. a contest in the 13th minute. capitalised on those situations.” that we need in the next 14 games.”
FOOTBALL
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