BP in crisis:

OIL GIANT
RULES OUT www.cityindex.co.uk

NEW ISSUE p5
Issue 1,170 Tuesday 6 July 2010
BUSINESS WITH PERSONALITY FREE
www.cityam.com

BACK TO 1926: UNIONS

PLAN GENERAL STRIKE

The last general strike was in 1926,

when railwaymen, transport work-
ers, printers, dockers, ironworkers,
steelworkers and miners went on
strike over low pay for miners
Picture: GETTY

POLITICS act of folly to allow the government to mandate,” he said. on specific grievances before working was planning to change strike laws to
▲

BY DAVID CROW
THE PROSPECT of the first general
strike since 1926 reared its ugly head
yesterday, after trade union leaders
clubbed together to fight the toughest
public spending cuts in a generation.
Three unions – which represent
train and bus drivers, prison officers,
and civil servants – said they would
support a general strike if the govern-
ment sacks public sector staff or alters
the terms and conditions of their
employment.
Bob Crow, general-secretary of
transport union RMT, called on other
trade union leaders to coordinate
industrial action for maximum effect.
He said: “With so many trade
unions under attack, it would be an
pick off individual groups of workers.”
“It would be better to stand togeth-
er and take generalised and coordinat-
ed action.”
And Steve Gillan, general-secretary
of prison officers’ union the POA, told
City A.M. coordinated industrial action
was “inevitable” considering the scale
of public spending cuts being planned
by the coalition government.
“Do I believe there will be a general
strike or coordinated action? It’s
inevitable,” he said.
Prison officers are banned from
striking under section 127 of the
Criminal Public Order Act, but Gillan
said this “wouldn’t stop” workers
walking out.
“If they go ahead with savage cuts,
if prisons are privatised – we’ve got a
A spokesman for the civil servants’
union PCS said: “This is a wide scale
attack on the public sector, with a
massive knock-on for the private sec-
tor. Strikes are pretty inevitable – it
would be best if unions coordinate
strike action for maximum impact.”
City A.M. understands that Matt
Wrack, the general-secretary of the
Fire Brigade Union (FBU), has also
refused to rule out backing a general
strike.
And some members of the National
Union of Teachers (NUT) and
Universities and Colleges Union (UCU)
support coordinated action, although
neither union has adopted an official
stance yet.
Trade unions could engineer a gen-
eral strike by balloting their members
together to ensure that all the walk-
outs start at the same time. This
would be completely legal under exist-
ing laws.
The unions made the threats after
the Treasury asked departments to
draw up plans to slash spending by 40
per cent.
And government plans to change
civil servants’ severance terms, bring-
ing them in line with the private sec-
tor, have also caused unrest.
Cabinet office minister Francis
Maude fears that a wave of public sec-
tor job losses could prove hugely
expensive due to generous redundan-
cy terms, which offer some civil ser-
vants a pay-off equivalent to six years
of salary.
The government yesterday denied it
thwart a wave of walk-outs, but left
the door open to new legislation in
the future.
An official at the department of
Business Innovation and Skills said:
“As the Prime Minister has made clear
there are no immediate plans to
change the law.
“Strikes remain at relatively low lev-
els. Of course, the situation may
change and any responsible govern-
ment would wish to ensure the public
doesn’t suffer unduly if there is an
upsurge in strike action.”
London Mayor Boris Johnson has
met with Philip Hammond, the trans-
port secretary, to discuss whether the
proportion of workers required to vote
before a strike takes place should be
increased. £1.5BN EXTRA CUTS: P6

FTSE 100 t4,823.53 -14.56 DOW CLOSED NASDAQ CLOSED £/$ t1.51 -0.01 £/¤ 1.21 unc ¤/$ t1.25 -0.01 Certified Distribution
3/05/10 - 30/05/10 is 106,097


 
 "   
  #
$#

    !        $

 "      $      

           # $   

 2 News
Grim is the new Nice for the economy
EDITOR’S LETTER
ALLISTER HEATH
ECONOMISTS at Morgan Stanley have
coined a great phrase to describe what
we will be living through over the
next few years: it will be Grim –
Growth Really Is Mediocre. That is in
stark contrast to the Nice years – the
Non-Inflationary Consistent
Expansion originally described by
Mervyn King. It is also in stark contrast
to those who are forecasting a double-
dip recession, a prediction I rejected in
yesterday’s column.
Morgan Stanley’s Graham Secker’s
argument – that the markets are over-
reacting to the realisation that growth
7th Floor, Centurion House,
24 Monument Street,
London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
WHAT THE OTHER PAPERS SAY THIS MORNING
RENMINBI BOND DEALS BEGIN TO PAY
A Hong Kong-based toll road company
will sell renminbi-denominated
bonds to international investors this
week in a little-noticed deal that
marks an important change in
China’s currency controls. Hopewell
Highway Infrastructure, controlled
by Hong Kong tycoon Gordon Wu,
plans to raise at least Rmb1bn
(£100m) from institutional investors.
ZLOTY BULLS LIKE POLAND POLL RESULT
The Polish zloty advanced on Monday
as a victory for Bronislaw
Komorowski in a tight presidential
election over the weekend raised
hopes for further economic reforms
in the country. Analysts said the win
for Mr Komorowski, a member of the
country’s ruling Civic Platform party,
meant the Polish government no
longer had to worry that its economic
policies would be vetoed.
over the next few years will be sharply
lower than during the bubble – is one
that I share. There has been no materi-
al collapse in economic indicators –
yesterday’s services purchasing man-
agers index in the UK fell to 54.5 from
55.4, suggesting that the economy is
growing just a little more slowly. But
to many analysts that isn’t the point:
they appeared to be way too optimistic
and were probably hoping for continu-
ally higher survey readings and even-
tually a massive bounce. Hence their
bitter disappointment.
Secker calculates that Japanese GDP
growth in its own post-bubble period
(1990-2007) was two-thirds below that
in its bubble years (1980-1990). The US,
UK and European economies won’t
perform as badly as Japan did over the
next few years but there is neverthe-
less a decent parallel to be drawn here.
On top of the uncertainty surround-
ing the Eurozone crisis and its banks’
stress tests, another big unknown will
be the impact of getting banks to hold
ever larger amounts of capital to
Back-up fund
for EU banks
EUROPEAN ECONOMY
▲
BY HARRY BANKS
EUROPEAN Union countries that dis-
cover problem banks when they
stress-test their lenders could turn to
an existing EU state back-up scheme.
EU economy commissioner Olli
Rehn said that should any govern-
ment exhaust national funds in help-
ing a troubled lender, it could turn to
“EU financial backstops.”
“In order to use these European
financial stability mechanisms in the
case of any country we would need to
have a programme... focused in par-
ticular on the restructing of the bank-
ing sector and addressing the
potential needs of a possible recapi-
talisation,” Rehn told lawmakers in
the European parliament. “That is
the strategy.”
It is the first time the European
GALA WANTS JUNK BOND SALE
Gala Coral, the gambling group, is
seeking the consent of its lenders to
sell up to £600m of junk bonds, as
well as to lift its capital expenditure.
Gala is paying its banks £3m in fees in
order to win more than two-thirds of
their support for the bond sale, which
would be rated below investment
grade – known as high yield or junk –
and would be used to repay senior
debt.
CARREFOUR TO SELL ASIAN STORES
Carrefour, the world’s biggest super-
markets group after Wal-Mart of the
US, is planning to sell its operations
in Malaysia, Thailand and Singapore
to focus on countries in which it is
market leader. The retailer would
not comment on the potential dis-
posals, which are at an early stage
and which analysts said could fetch
€600m-€800m. The planned sale is in
line with the strategy set out by Lars
Olofsson, who is the firm’s chief
executive.
ensure their solvency. The policy is
partly sound – financial institutions
were operating on ridiculously low
levels of capital, under previous regu-
lations – but the authorities seem
determined to force this to happen too
soon, which would choke off the sup-
ply of credit. As Andrew Lilico of
Europe Economics and Policy
Exchange points out, past research
indicates that huge increases in capi-
tal requirements will result in banks
contracting their balance sheets in
approximately equal proportion to
the hike in their capital holdings. If
capital holdings are boosted from
their previous 8 per cent to a hypo-
thetical 15 per cent (compared with
the current typical values of approxi-
mately 10 per cent prevailing in the
industry), that would imply a contrac-
tion in risk-weighted balance sheets of
one fifth – in other words, banks
would reduce their outstanding loans
by a fifth, choking off credit. Forcing
banks to slash their balance sheets so
drastically, even if there is a period of
Commission or executive has spelt
out that countries struggling to
recapitalise stricken banks could
tap a €500bn (£414bn) scheme set
up as a safety net should borrowing
problems in Greece spread to Spain
and beyond.
By explaining what it would do if
“pockets of vulnerability” were
uncovered by stress testing, Rehn
hopes to win back the confidence of
jittery investors.
The banks to be stress tested will be
named by the Committee of
European Banking Supervisors today.
EU economy commis-
sioner Olli Rehn has laid
out guidelines for coun-
tries to follow if banks
need to be bailed out.
TRAVIS PERKINS CEMENTS A £558M
DEAL
Travis Perkins is set to become
Britain’s leading builders merchant
and plumbing supplies company
after clinching a £558 million deal to
buy BSS Group. The acquisition in
cash and shares could see Travis
Perkins, which also owns the Wickes
DIY retailer, capture as much as 25
per cent of the UK market and will
overtake Wolseley. The OFT must
approve the deal.
PRESENTERS REVEAL JOY AFTER 6
MUSIC IS SAVED FROM AXE
6 Music, the BBC radio station that
the corporation pledged to axe, was
saved yesterday after the broadcast-
er’s governing body said that execu-
tives had failed to make a convincing
case for its closure. The BBC Trust
said the station should be reprieved.
transition, at a time when the interna-
tional financial sector remains fragile,
could be one of the worst decisions in
regulatory history and trigger a fresh
collapse. We must hope that common
sense prevails.
There have been two recent occa-
sions in the UK when fiscal policy has
been tightened substantially during a
downturn. The first was in 1976, after
the IMF bailout; the second was in
1981 when Lord (Geoffrey) Howe was
Chancellor of the Exchequer. The first
time, Jim Callaghan, then the prime
minister, was terrified Britain might
become ungovernable if cuts were
imposed and Keynesian economists
cried blue murder; the second time,
364 equally Keynesian economists
wrote their infamous letter to the
Times predicting a catastrophe as a
result of the tightening. Both times,
the doom-mongers were proved
wrong and the economy recovered; it
will do so again this time, but it will
nevertheless be Grim.
allister.heath@cityam.com
My-wardrobe.com founder Sarah Curran will invest the money in new product ranges
Fashion retailer bags $9m
FASHION
▲
BY STEVE DINNEEN
ONLINE clothing retailer my-
wardrobe.com has received a $9m
(£5.9m) boost from Balderton Capital.
The business was founded just four
years ago by Sarah Curran, who will
remain the majority shareholder.
The funding will be used to invest
in more stock and to expand the cur-
rent product ranges.
My-wardrobe.com specialises in dis-
counted designer goods from the
UK TOWNS WITH FEWEST JOBS
Doncaster, Barnsley and Grimsby have
the worst employment prospects of
any major towns in the UK, according
to an independent analysis. A study by
the Work Foundation found the three
Northern cities were the hardest hit
from the recession, with “very low”
levels of employment in growth sec-
tors combined with relatively low-
skilled populations.
HACKERS BREACH YOUTUBE SECURITY
YouTube has been the victim of a
hacker attack, with a specific focus on
Justin Bieber, the Canadian teenage
pop singer. The site was affected for
approximately two hours before its
parent company, Google, began to
take action. Hackers had managed to
abuse a flaw in the site which allowed
them to redirect YouTube users to
adult sites and send them fake pop-up
messages.
CITYA.M. 6 JULY 2010
Ponzi suspect
shoots himself
while in Spain
▲
ENFORCEMENT
A SUSPECT in a German investigation
into an alleged €300m (£248.5m)
Ponzi scheme committed suicide on
Saturday, it has been confirmed.
Dieter Frerichs, managing director
of the K1 hedge fund group, is
believed to have shot himself on a
Spanish beach.
He was undergoing extradition pro-
ceedings in connection with the
alleged fraud.
K1’s founder, Helmut Kiener, was
arrested last year and remains behind
bars. Lawyers for Kiener denied he
committed fraud and had sought his
release on bail, arguing he was a
diplomat for the West African nation
of Guinea-Bissau, documents appeal-
ing against his arrest showed.
K1 announced it would go into liq-
uidation after its assets were frozen.
likes of Chloe, Vivienne Westwood
and Mulberry.
The firm has fared well in the wake
of the financial crisis and Balderton
believes it has room to expand in the
fiercely competitive online fashion
market.
It saw an astonishing 121 per cent
surge in sales last December. Founder
and chief executive Sarah Curran said
the company would break even in its
financial year, which ends at the end
of the month and claimed it would
make a profit next year.
MONARCHY FINDS SAVINGS
Queen Elizabeth II is having to cut
spending and put off palace repairs
as royal finances are squeezed by
Britain’s budget crisis. Accounts pub-
lished Monday by Buckingham Palace
reveal the total public cost of support-
ing the monarchy was £38.2m in the
52 weeks to March 31, the equivalent
of 62 pence per person.
E.ON WEIGHS MAJOR REVAMP
German utility E.ON said it is consid-
ering a corporate restructuring that
would strip responsibility from its
two biggest units and hand it to cor-
porate headquarters in Düsseldorf.
The move would mark the first major
step of new chief executive Johannes
Teyssen as he looks to centralise con-
trol of a company with generation
and distribution operations supply-
ing over 30m customers in more than
30 countries.
CITYA.M. 6 JULY 2010 News 3

TOP 10 FINANCIAL SPONSOR BUY-OUTS

Announcement date
Feb 26 2007
Company acquired
TXU Corp (US)
Acquired by
KKR; Texas Pacific Group;
Source: Dealogic

Deal value ($)

43.797m
Buy-out boom returns as
€25bn Abertis deal looms
Goldman Sachs
Nov 20 2006 Equity Office Properties Trust Blackstone Real Estate 38.887m
July 24 2006 HCA Inc Bain Capital; KKR; 32.675m
Merrill Lynch
May 21 2007 ALLTEL Corp TPG Capital; GS Capital 27.866m
April 2 2007 First Data Corp KKR 27.728m
October 2 2006 Harrah’s Entertainment Inc Apollo Management; 27.401m (£2.6bn) bid for Extended Stay Hotels report said the deal valued Abertis,

Texas Pacific Group
July 3 2007 Hilton Hotels Corp Blackstone Group
Nov 16 2007 Clear Channel Communications Bain Capital;
Thomas H Lee
May 29 2006 Kinder Morgan Inc S Capital Partners;
AIG Global Asset Management;
Carlyle Group;
Riverstone Holdings
May 29 2007 Archstone-Smith Trust Tishman Speyer Properties;
Lehman Brothers
▲
CORPORATE FINANCE
25.804m
BY STEVE DINNEEN
24.860m TWO shareholders in the Spanish
infrastructure group that owns
21.558m Cardiff and Belfast International air-
ports will team up with British pri-
vate equity group CVC to mount a
€25bn (£21bn) leveraged buy-out.
The deal for Barcelona-based
20.631m Abertis would dwarf the largest deal
since the financial crisis – a $3.9bn
by a private equity consortium.
Abertis’ second-largest shareholder,
builder ACS, along with La Caxia,
Spain’s biggest savings bank, will
attempt to create a buy-out vehicle
with CVC. The two shareholders cur-
rently own almost 55 per cent of the
business. The group’s shares were sus-
pended yesterday after rising sharply
on the back of the reports.
Shares in ACS, also surged after the
which runs a major Spanish toll high-
way, along with parking garages and
airport concessions, at nearly €2bn
more than on paper.
The bid will be financed by an €8bn
club loan being pulled together by
Italian investment bank Mediobanca.
Criteria, which has 28 per cent of
Abertis, would continue as a large
shareholder and the bid will not
involve delisting Abertis.

Doubts over
Ocado value
ness model we’re not convinced
▲

RETAIL
BY STEVE DINNEEN AND OLIVER SHAH
OCADO can expect a frosty reception
to its prospectus when it finally
launches this morning, as investors
and analysts baulk at the expected
£1bn valuation of the firm.
The roadshow will get underway
this afternoon but Ocado bosses face
an uphill struggle if they are to per-
suade investors to part with their cash.
The head of M&A at a major invest-
ment bank told City A.M. investors will
be put off by the amount Ocado’s
founders stand to make from the
flotation – upwards of £160m
between them. He also questioned
whether the firm could continue in
the long-term if the IPO falls through.
The head of equities at a well-
known fund management house
questioned the value of the flotation.
He said: “We’re not likely to be inter-
ested or involved for the valuation
range they’re talking about. It looks
like a very high valuation for a busi-
about.”
An analyst added the firm would
“have to have a pretty big surprise in
the prospectus to justify the multiple
of sales they are talking about.”
Meanwhile, relations between
Ocado and HSBC have become
strained after an analyst note from
the bank appeared to question
whether the firm would be able to
turn a profit before 2014.
Other analysts say the firm should
turn a modest profit next year. City
A.M. understands the discrepancy
arose from HSBC’s practice of exclud-
ing funds raised through an IPO in
their earnings projections.
Ocado, which recently signed a 10-
year contract to deliver Waitrose food,
said it is hoping to raise £200m from
the float.
It expects existing shareholders to
cash in on shares worth roughly the
same, with the John Lewis Pension
Fund expected to sell almost all of its
30 per cent stake.

CITY VIEWS: WOULD YOU INVEST IN OCADO?

Interviews by Marion Dakers and Daniella Farsiani

JOHN BUTTERWORTH | INSURANCE CONSULTANT

“I don’t think there is a problem with the firm floating.
The long-term Waitrose deal is a definite plus point. It’s
something different for investors: rewards come from tak-
ing a punt.”

EMMA ATKINS | KENNEDY LAW

“Online shopping is so convenient and the timing
could be right for them. I would consider buying
shares in a company like that. They need to expand
their customer base and this is a way to do it.”

JOHN LING | LINGS SOLICITORS

“I commute to work so it’s much more convenient for
me to pop into a supermarket. I know Waitrose has said
it will support them, but long-term deals are still quite
risky. Ocado has a good reputation though.”
 We can’t tell you how long
summer will last.
But you’ve only got a few
weeks to make the most of it.

Test drive a new Renault Wind Roadster or Mégane Coupé-Cabriolet

in July for your chance to win one of hundreds of prizes, including
an all expenses paid road trip*.

www.renault.co.uk/vivelesummer

The official fuel consumption figures in mpg (l/100km) for the Wind Roadster range are: Urban 31.0 (9.1) - 38.7 (7.3), Extra
Urban 49.5 (5.7) - 60.1 (4.1), Combined 40.3 (7.0) - 47.9 (5.9). The official CO2 emission figure is 165-132g/km. And for the
Mégane Coupé-Cabriolet range: Urban 25.2 (11.2) - 46.3 (6.1); Extra Urban 44.8 (6.3) - 64.2 (4.4); Combined 34.9 (8.1) - 56.5
(5.0). The official CO2 emission figure is 188-130g/km. *This promotion is open to 18 year olds or over, who possess a full, clean driving license, who are resident within the United
Kingdom, Channel Islands or Isle of Man with the exception of employees (and their families) of Renault UK Ltd, their suppliers, agents, third parties, employees of authorised Renault Dealerships or anyone professionally
connected with this promotion. This promotion closes on 31 July 2010. Promoter: Renault UK Ltd., The Rivers Office Park, Denham Way, Maple Cross, Rickmansworth, Hertfordshire, WD3 9YS. For full Terms &
Conditions visit www.renault.co.uk/vivelesummer.
CITYA.M. 6 JULY 2010 News 5

Dana Petroleum shares soar

as Korean firm looks to buy
remained broadly flat at £14.43 yester- ANALYSIS l Dana Petroleum

▲
ENERGY
BY MARION DAKERS
SHARES in takeover target Dana
Petroleum have rocketed 23 per cent
over the past several days in response to
confirmation that the Korean National
Oil Company (KNOC) is in preliminary
talks about acquiring the firm.
Shares are at their highest level since
last August, when Dana was subject to
similar takeover rumours. They
BP boss Tony Hayward could see an overhaul to senior management Picture: REUTERS
day in subdued trading across the FTSE 1,500 p
250 due to the American bank holiday. 1,443.00
02 Jul
But investors will be watching the
price closely as it approaches £16.45, 1,300
the value per share of KNOC’s
rumoured £1.5bn price tag for the firm.
Analysts are not all convinced a deal 1,100
will be finalised. “Holders should sit
tight for now to see if an early deal can
be struck or an alternative bidder is
900
forthcoming,” said BNP Paribas. 21 Apr 12 May 2 Jun 22 Jun

SALE
BP rules out
a share issue
for bargain hunters,” said Shokri
BP IN CRISIS Ghanem, chairman of Libya’s
National Oil Corporation yesterday.
BY EMMA SADOWSKI
Ghanem would not confirm
BP yesterday dismissed speculation it whether one of Libya’s sovereign
will issue new shares in a bid to meet wealth funds, the Libyan Investment

the spiralling costs of tackling its
huge oil spill in the Gulf of Mexico.
A spokesman told City A.M. last
night: “We welcome new sharehold-
ers or existing shareholders wanting
to increase their shares, but there are
no current plans to issue new equity.”
The denial came as reports suggest-
ed that the government is already
drawing up contingency plans in case
the company collapses. One possibili-
ty being mooted is whether the gov-
ernment should consider intervening
to protect BP, which was a nation-
alised company until 1987.
Despite its problems including
news yesterday that clean up costs
have now reached £2bn, BP’s shares,
which have fallen nearly 50 per cent
since 20 April are attracting interest.
“I think that BP shares are good value
9
Authority (LIA), would make a move
to buy up a stake, thought to be val-
ued at £6bn.
His comments are on the back of
ONE WAY, FROM
speculation that similar wealthy
state-owned funds in Abu Dhabi and
Qatar could also be interested in back-
ing BP.
Evgeny Solovyov, an analyst at
Societe Generale, said: “[It would] pro-
vide protection against an unfriendly
takeover, possibly better access to
Middle Eastern projects and provide
some confidence boost – there are
still investors prepared to spend seri-
ous money on BP.”
Analysts have said it is unlikely that
a move to swallow up a stake in BP
will be made before the drilling of the
relief well is completed. Drilling has
now reached 17,725 ft.

ANALYST VIEWS: WILL MIDDLE EASTERN

£
INVESTMENT HELP BP? Interviews by Emma Sadowski

DAVID BUIK | BGC PARTNERS

“ “The most important thing for BP to do right now is

provide decent evidence that it can plug the leak.

”
Investment could make a hostile takeover unlikely and BP’s
assets are expensive anyway.”

MANOJ LADWA | ETX CAPITAL

FLIGHTS FROM LONDON (STANSTED)

“ “Investment from the Middle East may help in the

short-term and it may keep a takeover bid at bay. BP may

”
not have much of a choice however – it will have to look for
investment.” TRAVEL SEPTEMBER-OCTOBER
GREG SMITH | FAT PROPHETS

“ “There shouldn’t be a problem in getting someone to

take a stake in BP. However, combining the completion of the Book until midnight 08.07.10. Subject to availability. Terms and conditions apply,

”
relief well with a positive upturn in oil prices could create
see Ryanair.com for details. Fares exclude optional fees/charges.
the perfect takeover storm.”
 6 Politics
Treasury wields the axe on
an extra £1.5bn of spending
▲
POLITICS
BY DAVID CROW
THE government scrapped a further
£1.5bn of unfunded spending com-
mitments yesterday, as it continued to
wield the axe on years of Whitehall
waste.
There was never any funding in
place for any of the projects, but the
former government claimed under
spending on other commitments
would provide the cash.
Treasury officials said the govern-
ment had “wildly over inflated” the
amount it expected to generate from
under spending, in a bid to rubber-
stamp the projects before the election.
Danny Alexander said
Labour had promised
to finance projects
with money it “simply
did not have”
The Department for Education will
reduce spending by £1bn; the
Department for Business Innovation
and Skills must save £265m; the
Home Office will lose £55m and the
Department for Communities and
Local Government must save £220m.
Chief secretary Danny Alexander
said: “The previous government
committed to spending money it
simply did not have. These unfunded
spending promises should never
have been made.”
Boris Johnson pointed out he had already cut costs at City Hall
London cuts
are madness,
Boris tells PM
▲
POLITICS
BY VICTORIA BATES
BORIS Johnson yesterday cornered
David Cameron in crunch talks over
public spending cuts planned for
London, arguing that excessively
heavy-handed measures would dam-
age the capital’s standing as the eco-
nomic powerhouse of the UK.
The Mayor has been vocal since the
Budget last month in calling for care
to be taken in London when imple-
menting the efficiency savings which
are crucial to reducing the deficit.
The issue was brought to the fore
again yesterday at an annual lunch-
eon organised by the Cities of London
and Westminster Conservative
Association (CLWCA), where Johnson
was guest speaker. He was forced to
bring forward the time of his speech
in order to arrive punctually at a
Whitehall meeting with the Prime
Minister, convened at short notice.
Clegg performs School building
his first U-turn scheme halted
▲
POLITICS
NICK Clegg yesterday performed the
first major U-turn of the coalition gov-
ernment, after he rewrote plans that
would have made it harder to force
the government to call a general elec-
tion.
Under his previous proposals, a
majority of 55 per cent would be need-
ed to dissolve parliament. That will
now rise even further to 66 per cent.
But crucially parliament will still be
able to defeat the government in a no-
confidence vote with a simple majori-
ty of over 51 per cent.
If the government fails to form a
government in the fourteen days fol-
lowing the no-confidence vote, it will
be forced to call an election.
CITYA.M. 6 JULY 2010
Picture: PA
Johnson said he had already been
very active in delivering efficiency
savings since taking up the Mayoral
office in 2008, including cutting the
number of jobs at the London
Development Agency by half.
“I can take you around City Hall
and show you a whole Mary Celeste
floor, so many people have had to
find alternative employment,” he told
CLWCA members at the lunch. “It is
vital that the new government under-
stands that we have spent two years
already making these cuts… It would
be crazy if when the brakes [are
applied], the coalition cuts projects
like Crossrail, eats into infrastructure
investment and does things which
damage the UK economy.”
Downing Street declined to com-
ment on the outcome of the meeting.
The 2012 Olympics were also top of
the agenda at the meeting, ahead of a
progress report to be published by the
International Olympic Committee.
▲
POLITICS
EDUCATION secretary Michael Gove
today confirmed a freeze of the
schools building programme as part
of his proposed £3.5bn cuts to educa-
tion spending.
The plans will mean that 715 build-
ing projects are not carried out and
123 academy schemes are to be
reviewed on a case-by-case basis, hit-
ting mostly marginal constituencies.
Gove called the Building Schools
for the Future programme, which
started under Labour, “dysfunction-
al” and “unnecessarily undemocrat-
ic”.
Shadow education secretary Ed
Balls, responded by saying: “It’s a
black day for our country’s schools”.
CITYA.M. 6 JULY 2010
GAME OVER FOR NATIONWIDE SPONSORSHIP
Botched ballot
saves BT from
strike action
▲
TELECOMS
BY STEVE DINNEEN
BT escaped its first strike in 23 years
after its workers’ union botched a
vital ballot.
The Communication Workers’
Union (CWU) was convinced it had
secured enough votes to organise a
walk out later this summer, with BT
scrabbling to provide cover for main-
tenance work and even planning to
draft in management to answer the
phones.
But the CWU was forced into a
humiliating eleventh hour U-turn
when its legal team realised it could
have seen the ballot overturned in
court.
City A.M. has learned BT had threat-
ened to mount a legal challenge after
information regarding where some
balloted members were based was
not provided.
The union has vowed to repeat the
ballot but is likely to have to wait
until at least September before it can
resolve the legal challenge.
In the meantime it will accept an
olive branch offered by BT that will
see the two sides resume talks.
Global survey shows two thirds
of firms putting off fund raising
▲
ECONOMICS
ECONOMIC uncertainty and currency
volatility mean nearly two thirds of
companies around the world will
hold off raising capital for the next
two years, according to a survey by
RBC Capital Markets.
Around 62 per cent of the 440 sen-
ior financial and non-financial execu-
tives surveyed said they would not be
calling on fresh funding, suggesting
market nervousness over periphery
Eurozone countries’ sovereign debt
and the future of the single currency
is feeding through to boardrooms.
And just 38 per cent expected to
raise capital over the coming 24
News 7
NATIONWIDE has
No compensation
for B&B investors
warned its sponsor-
ship of the England
football team is
“unlikely to be
renewed”. Despite
good relations for
the past 11 years,
Nationwide said it ship in September 2008 and its shares
▲
FINANCIAL SERVICES
was not likely to BY HARRY BANKS were transferred to the Treasury. Its
renew the contract savings business and branch network
at the end of July. THE Treasury does not have to pay were sold to Spain’s Santander.
Whether or not this compensation to former shareholders Peter Clokey, a PwC partner who
is related to the of buy-to-let lender Bradford & was appointed independent valuer
recent unsuccessful Bingley (B&B), an independent valuer for the Bradford & Bingley
World Cup cam- said yesterday. Compensation Scheme, said in the
paign has not yet B&B, a leading buy-to-let mortgage absence of the transfer B&B “would
been confirmed. provider that was hit by a sharp rise have been unable to continue as a
Picture: in funding costs during the financial going concern” and would have
ACTION IMAGES crisis, was taken into public owner- applied to go into administration.
FX & CFD Trading. Worldwide.
Worldwide.
Celebrating the
World Cup 2010
The CWU described the withdrawal
as “devastating”. A spokesman said:
“The ballot has been cancelled follow-
ing legal advice which clearly out-
lined that under the notoriously
restrictive trade union laws in the UK
certain technical breaches would
potentially invalidate the ballot.”
A BT spokesman: “We are pleased
the CWU has withdrawn its ballot for
industrial action. There were proce-
dural issues regarding the ballot that
we raised from the start and the
union have now accepted this.
“Our door remains fully open to
the union and so we hope we can sit
down and resolve this matter.”
BT has tabled a two year pay offer
including a three per cent rise in
2011, in addition to the two per cent
already offered for this year, and a
bonus of £250 related to perform-
ance. The group is also understood to
have agreed that no compulsory
redundancies will be made before the
end of 2011.
But the CWU said the offer was
“unacceptable” as it does not include
an immediate pay hike. Last year the
union agreed to a pay freeze but is now
determined to secure a real-term rise. With up to 20.10% credit bonus*
Play the game, trade with Alpari.
Country
Country vs country?
country? Currency
Currency vs curr
currency!
ency!
Create your own league of Forex trading, pitch currencies against currencies and we’ll give you up to
20.10% credit bonus!*
months. Private equity (37 per cent)
Trade global currencies Tight Spreads and Non Dealing Desk execution**
and syndicated loans (35 per cent) are Maximum trading power (1:500) Free educational material
expected to be among the most popu-
lar choices for raising debt or equity,
followed by investment-grade debt (25 Alpari UK is authorised and regulated by the Financial Services Authority. Forex and CFDs are leveraged
per cent), secondary equity offering products. They may not be suitable for you as they carry a high degree of risk to your capital and you
(14 per cent), securitisation (14 per can lose more than your initial investment. Yo
ou should ensure you understand all of the risks.
cent) and IPOs (11 per cent), the study *Conditions apply, see website for details. **Depending on account type.
showed. Only five per cent of respon-
dents said new regulatory challenges
were a risk to their funding plans.
Doug Guzman of RBC said: “In this
environment, the ability of corpo- alpari.co.uk/2010
alpari.co.uk/2010
rates to part-fund their own transac- Best Active Fastest Growing Best Execution
tions through cash reserves will be +44 (0)20 7426 2900 Trading Tools Forex Company UK House
extremely attractive to banks, who
are increasingly looking to reduce
their exposure to risk.”
CITYA.M. 6 JULY 2010
UK economy still Top economic forecaster Martin Weale
to join Bank’
s rate-setting committee
grew in the second
quarter, says BCC
UK ECONOMY
▲
BY JESSICA MEAD
THE UK economy continued to grow in
the second quarter of the year, boosted
by a strong performance in the manu-
facturing sector, according to the quar-
terly survey from the British Chambers
of Commerce published today.
The BCC said that most manufac-
turing balances showed relatively
strong increases and in some cases
were back to pre-recession levels. But
while manufacturing results were
good, the service sector’s results were
largely weak and disappointing.
The manufacturing balance for
home sales surged to +30 per cent, the
best level since the last quarter of
2007. There were also welcome
improvements in the manufacturing
export balances, which rose 11 points
to +31 per cent, the best level since
Services in doldrums
due to activity slump
WORLD ECONOMY
▲
BY JESSICA MEAD
ACTIVITY in the services sector across
the major developed markets contin-
ued to slow in June, according to
leading surveys of the sector pub-
lished yesterday.
In the UK, business activity rose at
its slowest rate since August 2009,
according to the Markit/CIPS pur-
chasing managers’ index (PMI). The
headline PMI fell to 54.4 in June,
down from May’s 55.4.
David Noble, chief executive of
CIPS, said: “June’s data painted a wor-
rying picture for the UK services sec-
tor as confidence suffered a serious
blow following the government’s
IOD: One L of a recovery lies
ahead for British economy
UK ECONOMY
▲
BY JESSICA MEAD
WEAK growth over the coming quar-
ters will produce an L-shaped recov-
ery in Britain, according the latest
economic forecasts from the Institute
of Directors (IOD).
The IOD estimates that the British
economy will only manage to grow
by 0.9 per cent in 2010 and then by
1.8 per cent in 2011. This is weaker
than the Office for Budget
Responsibility’s (OBR) forecasts,
which put growth at 1.2 per cent and
then 2.3 per cent.
the third quarter of 2007. The service
sector also saw growth in both domes-
tic and overseas sales but remained
weak by historic standards.
Worryingly, business confidence in
the service sector weakened in the
second quarter whereas the manufac-
turing sector remained confident.
David Frost, director general of the
BCC, said: “We still have concerns
about sluggish growth in the service
sector, which emphasises why the
government must continue to pro-
mote the best possible business envi-
ronment, in order to help companies
invest and grow.”
But encouragingly, employment in
manufacturing surged, rising 35
points to +19 per cent. Expectations of
future hiring in the sector also
improved. Once again, the improve-
ment in the service sector was much
weaker.
emergency spending cuts.”
He added: “Though new business
continued to grow this was at a sub-
dued rate and kept employment lev-
els firmly grounded. It seems that
companies are increasingly hesitant
to commit in this time of political
and economic uncertainty.”
However, the composite PMI would
still be consistent with GDP growth
of about 0.5 per cent in the second
quarter, analysts said.
In the Eurozone, the services PMI
fell for the first time in five months
with the drop spread across all coun-
tries in the currency union. The PMI
highlighted the growing divergences
in the euro area, said James Nixon at
Societe Generale.
In the forecast, Graeme Leach,
chief economist at the IoD, cited
eight factors that might cause “one L
of a recovery”. These include a slight-
ly higher savings ratio, weak housing
inflation, a smaller output gap than
currently thought, an uncertain out-
look for exports and the lack of
oomph from falling rates.
He said: “After a very abnormal
recession it would be foolish to rule
out the possibility of a very abnormal
recovery as well.”
He explained: “A whole host of rea-
sons support the idea of one L of a
recovery. One of the key reasons
Economics 9
UK ECONOMY
▲
BY JESSICA MEAD
LEADING economist Martin Weale
has been appointed as an external
member of the Bank of England’s
Monetary Policy Committee (MPC) by
chancellor George Osborne.
The director of the National
Institute for Economic and Social
Research (Niesr) will join the MPC in
time for the August rate-setting meet-
ing and the forecast round leading up
to it, the Treasury said yesterday.
Weale, who has a doctoral degree
from Cambridge and a CBE for his
services to economics in 1999,
replaces Kate Barker who left the
MPC at the end of May.
He had been the director of the
Niesr since 1995 and his involvement Martin Weale has just been appointed to the MPC
in the think-tank’s forecasting
processes and policy comment will the Bank’s approach to monetary pol- this would put him broadly in the
cease immediately. Each month, the icy. He had previously noted that poli- middle of the MPC pack and suggests
Niesr publishes a closely-watched cy should be left on hold because the that his move to the committee is
forecast of GDP growth and has been upside risks to inflation from a per- unlikely to provoke a shift in the poli-
slightly more pessimistic than the sistently high headline rate were bal- cy debate in the near term. IHS Global
consensus. anced by downside risks to growth Insight’s Howard Archer agreed, say-
Analysts said his appointment was from weakness in the Eurozone. ing Weale did not appear to be in any
@
unlikely to cause a significant shift in Barclays Capital’s Simon Hayes said hurry to raise rates.
@
He explained: “While service sector
activity remains relatively strong in
France and Germany, there are strong
signals that activity may have peaked.
Moreover the recovery in Spain and
Italy looks weak and anaemic.”
Across the Atlantic, the US
Institute of Supply Management
(ISM) said that services activity fell to
@
56.2 in June from 59.7 in May. This
was the eleventh consecutive month
of growth but it was a slower rate
than expected.
Norbert Or at the ISM said that the
slowdown in growth was to be
expected after months of solid
growth, adding that the “sector
appears to be solidly entrenched in
recovery”.
behind this forecast is the potential
for further de-leveraging in the house-
hold sector and an upward move-
ment in the savings ratio. The savings
ratio has increased significantly but it
is still well short of the level attained
in the wake of previous recessions.”
The economic forecast also exam-
ined alternative recovery scenarios,
such as a square root. “In this sce-
nario we see an acceleration in GDP
growth in the second half of 2010, MORE NEWS
which combines with sticky inflation
to trigger an interest rate and/or QE
ONLINE
reversal by the Bank of England,” www.cityam.com
Leach said.
 The Capitalist
10
SOLVED:
MYSTERY OF
VANISHING
FORMER PM
IT WAS a rip-roaring ride for those who
turned up at the swanky Renaissance
Chancery Court Hotel in Holborn yesterday
to hear Mayor Boris Johnson exercise his
notoriously sharp tongue. Boris, the guest
of honour at the Cities of London and
Westminster Conservative Association’s
annual lunch, certainly knows how to play
to an audience including such blue-blood-
ed City folk as Jupiter fund manager Philip
Gibbs, Numis chief Oliver Hemsley,
BlackRock’s Richard Plackett, Schroders’
Andy Brough and Howard Leigh of
Cavendish Corporate Finance.
“I’m going to solve one of the greatest
mysteries of modern politics,” Boris
began, in typical blustering fashion.
“That is, our elusive ex-Prime Minister.
Hardly anyone has found so much as a fin-
gernail clipping of Gordon Brown since
the general election, but I have a theory –
that he was one of the original members
of the suburban Soviet spy ring and has
gone back to Moscow to receive the Order
of Lenin and an award from the Kremlin
for sabotaging the British economy…”
Cue raucous laughter from the party
faithful – especially when the Mayor
turned his mischievous wit onto the
Gordon Brown: headed for the Scottish Highlands or for the Kremlin?
Conservatives’ own new bedfellows.
“This coalition government is a bit like
a Toyota hybrid,” he quipped. “It runs on
good old-fashioned Tory petrol, and when
circumstances demand, it switches to a
purring Lib Dem electric motor...”
SMASHING TIME
A cracking performance by one and all at
the annual charity “Hacks versus Flaks”
cricket and rounders tournaments on
Sunday, with the spinners taking both of
this year’s trophies off the defeated jour-
nalists. Mind you, the PR cricketers did
have the magic hands of Hudson
Sandler’s Charlie Jack, who managed to
steer a cricket ball well over the boundary
CITYA.M. 6 JULY 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
“Noone has
found so
much as a
fingernail
clipping from
Gordon
Brown since
the general
Chambers is now looking for an investor
election” to part-own either the first “ghost station”
site or the entire group.
The asking price for investing in the
first development alone ranges from £1m
to £5m – for which said investor gets a
final say in which of three potential sites
Picture: PA is developed first, out of old Tube stations
at Stockwell and Clapham North and an
and straight through the window of a “entry area” dug out between Holborn
neighbouring Chelsea mansion. and Chancery Lane, in order to construct
the stations on either side.
GHOST TOWN
After months of hoop-jumping with the
authorities, Ajit Chambers – the former
WHITE ELEPHANT
Recent visitors to the Royal Exchange
City banker who’s got big things may have noticed four model elephants
planned for London’s disused gracing the building as part of the
Underground stations – is finally London-wide Elephant Parade. It
ready for investors. appears the City wasn’t too impressed
Chambers hit the headlines last by the colourful designs, though –
year with plans to transform 26 when the charity elephant was emp-
abandoned Tube sites into tourist tied after a month of visitors dropping
destinations by opening them up to donations through the slot in its back,
the public. The condition for City only £234.87 trickled out. In comparison,
Hall granting permission is that no over £6,000 was donated to the other ele-
public money is used, meaning that phants dotted across the capital.
CITYA.M. 6 JULY 2010 News 11

MERCEDES MAGIC
London commuters face huge
rise in tube fares, warns RMT
752DAYS TO GO
LONDON OLYMPICS
BY EMMA SADOWSKI
TRANSPORT FOR LONDON (TfL) could
hike passenger tube fares to “eye-
watering” levels making the “travel-
ling public pay through the nose”,
RMT has warned.
The trade union has said that TfL
has not given it enough information
over Olympic transport plans.
London commuters will have to
shoulder fare increases as TfL tries to
“plug a £5bn deficit gap” according to
RMT.
The mayor’s office said that cur-
rently no moves have been made to
increase fares, with a decision likely
to be made by mayor Boris Johnson in
the autumn.
RMT claimed that not enough
transparency has been given to the
union over TfL’s plans for the
Olympics and accused the transport
group of failing to communicate
properly with the unions.
“We don’t know what the plans for
the Olympics are. It is mind blowing
that there has been no dialogue with
the trade unions and nothing has
been signed off,” said RMT.
TfL disputed the claim and said:
“We are committed to honest and
open dialogue with the trades
unions.”

MERCEDES-BENZ enjoyed a record June sales month thanks to rising demand for its

VISION
most expensive models, and expects the model to post a considerable rise in the current
quarter. The brand increased volumes by 13.2 per cent to 113,300 vehicles for last month.

STRATEGY
Hedge funds OPPORTUNITY

face a glut of
competition
PUT OUR ACCREDITED
the first five months of the year, data
▲

HEDGE FUNDS
BY HARRY BANKS
HEDGE fund managers are buckling
down for a trying year, as regulatory
from Hedge Fund Research shows.
June’s performance numbers are
expected next week.
At the same time though, there are

oversight and competition lead to a
glut of market dogfights.
A report out today by accounting
and audit firm Rothstein Kass shows
POSTGRADUATE BUSINESS
some bright spots with almost three-
quarters of the managers saying they
expect investors to stick around
longer as the pace of redemptions

seven out of 10 expect a “trying” year as
the extra competition leads to more
funds chasing investment dollars.
“It is no surprise that the outlook
for 2010 echoes the concerns of 2009
rather than the unbridled optimism
of years past and reflects a more con-
servative approach to the future,”
Rothstein Kass consultants wrote.
Hedge funds rebounded last year
from 2008’s deep losses with an aver-
age 19 per cent return. But this year’s
market gyrations highlight the pit-
falls that are still present two years
after the financial crisis.
Many prominent managers were
caught off guard by May’s sharp sell-
off and nursed heavy losses that left
the funds, on average, roughly flat for
COURSES STRAIGHT TO
falls off.
Rothstein Kass surveyed 381 hedge
fund firms in the first half of 2010.
Eight out of 10 managers also
expect to see more new hedge funds
launched this year by newcomers and
by existing firms that are planning to
roll out new portfolios.
Halfway through the year, promi-
WORK FOR YOU
nent managers ranging from former
Goldman Sachs partner Mark Carhart
to former Atticus executive Dilan
Siritunga are talking to investors
about making commitments to new
funds.
However, hedge fund managers
Find out more at Westminster Business School’s Postgraduate
also said it is tougher to raise money
now because investors are more nerv- Information session at the Marriott Hotel in Canary Wharf
ous.
on Thursday 8 July from 12.30pm - 2.30pm

BBC Worldwide cashes in on hit

shows to net over £1bn in sales
the figures reflected a strong per-
▲

MEDIA
BY STEVE DINNEEN
BBC Worldwide cashed in on top
titles including Top Gear and Doctor
Who, boosting its full-year sales seven
per cent to over £1bn.
It is the second consecutive year
the commercial wing of the BBC has
topped £1bn in sales. Operating prof-
its increased 36.5 per cent to £145.2m.
Chief executive John Smith said
formance in spite of difficult market
conditions.
He said: “Today’s figures demon-
strate that our strategy is working. As
well as developing into a diversified
global media business and extending
the international visibility of the BBC
Register now at
brand, the company is delivering a
strong financial performance.”
The BBC accounts for around 10 per
WESTMINSTER.AC.UK/WBS
cent of British TV exports.
 12 News
That’s broadband, line rental with evening
& weekend calls in one lower–cost bill
and £17 after that for ø customers
Call 0800 954 1396
Visit o2.co.uk/niggles
or any ø shop We’re better, connected
You need O2 Home Broadband to get O2 Home Phone. It’s subject to availability, 12 month contract, direct debit and a compatible phone line. Excludes cable. Price quoted is for O2 mobile customers.
Includes calls to standard UK landlines (starting 01, 02 or 03), up to 60 minutes long from 6pm-6am weekdays or 6pm Friday to 6am Monday. Other calls have a 9p setup fee. Cheaper than our broadband
with a BT line. Fair usage policy, price list and full details at o2.co.uk/broadband 3 months free offer ends 17.08.10.
Belgian finance minister Didier Reynders wants to end the impasse
Belgium begs
London to OK
EU watchdogs
▲
REGULATION
BY HARRY BANKS
EU presidency holder Belgium has
intervened in a row about new
European financial watchdogs in an
attempt to avert a breakdown in talks
to set up new supervisors by the start
of next year, a senior diplomat said.
Last weekend the country’s finance
minister Didier Reynders contacted
his British, German and French coun-
terparts, asking them to back a com-
promise and end an impasse that
threatens to derail plans for the
watchdogs.
Setting up supervisors to keep tabs
on banks, insurers and financial mar-
kets is central to Brussels’ efforts to
prevent another economic crisis.
But the plan is contentious with
Britain, which does not want super-
watchdogs that could overrule
national regulators in Europe’s
largest financial market.
The Belgians wanted countries
such as Germany and Britain to agree
to give the new EU regulators the
KKR set to float on the New York
Stock Exchange in a $9bn debut
▲
PRIVATE EQUITY
KKR is hoping to buck the trend with
an ambitious flotation on the New
York Stock Exchange, expected to
value the buy-out fund at $9bn
(£5.9bn).
The firm, best known for its £11bn
takeover of Alliance Boots in 2007, has
planned to float for three years, but
market volatility has thwarted them,
reports the Daily Telegraph.
It first launched plans in 2007, but
kept them on hold and then with-
drew tentative plans last June when it
merged its privately held business
with faltering KKR Private Equity
Investors, known as KPE.
Picture: REUTERS
final say ahead of a showdown
between country representatives and
the European Parliament last night.
Diplomats fear that the meeting,
when parliament will again lay down
demands for giving the regulators
more clout, could deepen discord and
make it impossible to set up the
watchdogs for the self-imposed dead-
line of the start of 2011.
“Some people in parliament feel
they have been ignored,” said the
diplomat. “There are some who want
a fight. The Belgians have taken it to
the top because they have to.”
At the heart of the disagreement is
whether the watchdogs get powers to
overrule individual member states.
The European parliament, worried
the new authorities will lack the
teeth to enforce rules, wants them to
be able to instruct local regulators on
what to do in an emergency or bypass
them and go straight to bank board-
rooms. Lawmakers also want the
watchdogs to have the power tem-
porarily to ban short selling of finan-
cial instruments.
KKR will probably have been
encouraged to float by first quarter
results this year which showed rising
credit and share markets.
It posted first quarter net income
of $674.8m this year, up 31 per cent
on the final quarter of 2009.
The company hopes to raise $500m
through a share issue in the months
after the flotation in order to create
permanent capital and reduce its
reliance on the cyclical buy-out busi-
ness it is currently focused on.
KKR is known as one of the pio-
neer’s of leveraged buy-outs, or LBO’s
and became infamous for its $30bn
takeover of RJR Nabisco in 1988,
which was the largest LBO in history.
CITYA.M. 6 JULY 2010
Coller sweeps
up Lloyds unit
in £480m deal
▲
PRIVATE EQUITY
BY OLIVER SHAH
BUYOUT house Coller Capital plans to
inject £100m fresh capital into Lloyds
Banking Group’s private equity port-
folio after buying a controlling share
in the assets, valuing them at £480m.
Coller yesterday paid £332m in
cash for a 70 per cent share in Lloyds’
Integrated Finance unit, which com-
prises equity and debt stakes in 40
companies. Lloyds, which inherited
the operation when it took over
Halifax Bank of Scotland in 2008, will
retain a 30 per cent holding.
Integrated Finance was assembled
by Peter Cummings, the disgraced
former head of corporate banking at
HBOS, and includes minority stakes
in well-known businesses such as Vue
Entertainment and David Lloyd
Leisure. The price agreed by Coller
yesterday represents a fraction of the
£1.4bn Cummings’ team paid for the
assets at the top of the market.
The entire portfolio will be trans-
ferred to a new joint venture between
Coller and Lloyds called Cavendish
Square Partners. Lloyds will keep
responsibility for providing senior
debt to the companies, while Coller
will acquire a combination of loan
notes and senior equity.
Coller said the project would con-
tinue to be managed by Graeme
Shankland, Cummings’ right-hand
man and the co-architect of
Integrated Finance. Shankland has
been asked to squeeze value from the
investments and look for orderly exits
for Coller and Lloyds over time.
Tim Jones, a partner at Coller, sug-
gested some companies could be put
up for sale quickly. He said: “Some of
them are in a very good state.
[Engineering firm] PSN is a great busi-
ness, Vue is a great business, David
Lloyd is a good business. Those com-
panies could be sold off at any time
within reason.”
Coller has decided to invest a fur-
ther £100m in the portfolio. Jones
said the cash would help the compa-
nies make small bolt-on purchases
and fix up their balance sheets.
News 13
PETER
CUMMINGS
FORMER HEAD OF
HBOS CORPORATE
INTEGRATED Finance is a relic of
the disastrous empire created by
Peter Cummings, former head of cor-
porate at Halifax Bank of Scotland.
The Scottish financier earned
infamy for continuing to lend billions
of pounds to commercial property
and retail tycoons such as Robert
Tchenguiz, the Reuben brothers and
Sir Tom Hunter even as the economy
fell into recession. The Integrated
Finance portfolio bought by Coller
Capital is free from toxic real estate
investments, but its roots are no less
controversial.
The unit took equity stakes in
companies to which the bank was
also lending, a practice known as
“pig-on-pork”. Integrated Finance is
frowned upon because bankers’
judgement of a firm’s credit risk can
Jeremy Coller’s firm has closed on the complex transaction to buy a 70 per cent share of be clouded by the promise of attrac-
Lloyds Banking Group’s private equity portfolio which comprises equity and debt stakes tive returns on the equity side.
in 40 companies, some of which are listed below: Nonetheless, Coller believes it can
extract value from the portfolio’s
stronger holdings. The secondary
buyout specialist first ran its eye
over the outfit before HBOS was
taken over by Lloyds Banking Group.
Shortly after Lloyds put the portfolio
up for sale in January, Coller muscled
out other parties including 3i, Advent
International and Bridgepoint to
become the preferred bidder.
Lloyds was advised on the sale by
a team from UBS led by Nigel Dawn,
Gerald Cooper and Chris Fox.
CITYA.M. 6 JULY 2010
Brit asks Apollo for £865m
▲
INSURANCE
BY OLIVER SHAH
BRIT Insurance boss Dane Douetil has
demanded a takeover offer of at least
£11 per share from US buyout player
Apollo before he will grant access for
due diligence, according to sources.
The FTSE 250 insurer raised the
stakes in a game of brinksmanship
with Apollo on Friday, rejecting an
indicative approach of £10.50 per
share, or £824m. Brit said an offer at
that level “undervalues the company
Daiwa to pay
$1bn for KBC’s
key divisions
▲
FINANCIAL SERVICES
BY ALAIN TOLHURST
DAIWA Capital Markets is to purchase
KBC Group’s Global Convertible Bond
and Asian Equity Derivative business-
es for approximately $1bn (£660m).
Daiwa’s investment banking arm
announced plans last November to
significantly grow its global markets,
and at the same time KBC announced
its updated strategy of focusing on its
core bancassurance expertise in
home markets in Europe.
The sale, expected to be completed
in the early fourth quarter this year,
will see the businesses come under
the maintenance of Daiwa, and
report to their global head of deriva-
tives, Dominique Blanchard.
Toshinao Matsushima, global head
of markets for Daiwa, said: “The
EU parliament group backs bank data E&Y boosts headcount
sharing deal with US to fight terrorism with 400 new partners
▲
FINANCIAL SERVICES
A EUROPEAN Parliament committee
said yesterday it supported a deal
with the United States on sharing cit-
izens’ bank data, a move which inves-
tigators say will help
counter-terrorism investigations.
The vote in the parliament’s civil
liberties committee followed weeks of
negotiations between Washington
and, accordingly, would not repre-
sent a basis on which the board is pre-
pared to engage”.
Douetil has briefed market partici-
pants that he would be prepared to
open Brit’s books at a minimum
indicative offer of £11 per share, or
£865m. Apollo has made it clear it is
more value-orientated than a trade
buyer as it will not immediately be
able to squeeze out synergies by cut-
ting back-office expenses.
One analyst said Douetil and his
chairman, John Barton, had no per-
acquisition cements and accelerates
our plans to become a major player in
the Asian equity derivatives and glob-
al convertible bonds space.”
The businesses employ approxi-
mately 150 staff across London, New
York and Hong Kong.
Over the last two years they have
generated an average contribution of
two per cent to the underlying net
profit of KBC Group.
KBC Bank in the Asia Pacific region
will continue to concentrate on cor-
porate banking for core clients with
links to Europe, with the deal releas-
ing around $200m in capital for KPC.
“The agreement announced today
marks another important step in
KBC’s strategy to wind down the
structured products business,” said
KBC chief executive officer Jan
Vanhevel on the Daiwa deal.
and the European Union to improve
privacy safeguards in the agreement
after lawmakers vetoed an earlier ver-
sion in February.
The EU has won concessions from
US officials on how bank data will be
transferred and used, allaying con-
cerns over insufficient protection of
Europeans’ private information.
“EU deputies voted 42-to-8 to
approve the deal, signaling parlia-
sonal incentive to negotiate a sale of
the business because they would be
likely to depart following an Apollo
takeover. They have the support of
top-10 shareholders, however, includ-
ing Schroders and Fidelity, to hold
out for a higher offer.
Analysts believe Brit’s shares would
fall back to the £8 level should Apollo
walk away from a deal. Brit’s paper
closed 3p down at 897p.
On Friday, Ben Cohen at Collins
Stewart wrote: “We think there is a
real risk now Apollo walks away.”
QBE to pay
€267m for Secura
Secura added €28.6m
to KBC’s net profit
Secura’s tangible
assets worth €205m
QBE set to snap up reinsurer Secura
▲
INSURANCE
AUSTRALIAN INSURER QBE has
announced the acquisition of special-
ist Belgian reinsurer Secura from KBC
Group for €267m (£221m).
The deal, which is set to be com-
pleted by 31 August, is subject to reg-
ulatory approval, with Secura’s 2010
gross premium expected to be
around €200m. The purchase price
reflects tangible assets of €205m.
ment was likely to ratify it in a vote
later this week. This will give investi-
gators from the US access to informa-
tion on bank transfers collected by
the Society for Worldwide Interbank
Financial Telecommunication
(SWIFT), which it says is an important
tool to tracking suspects.
Any transfers of data held on
SWIFT servers in Europe to the US
will be monitored by EU officials.
AgBank attracts interest
from big insurers for IPO
▲
FINANCIAL SERVICES
AGRICULTURAL Bank of China
(AgBank) yesterday said it had attract-
ed subscriptions from big insurers and
other major companies for the
Shanghai portion of its initial public
offering (IPO), helping to ensure that
the issuance would not cause disrup-
tions to local markets.
AgBank’s roughly $20bn (£13.2bn)
Secura will form part of Australian
insurer QBE’s European operations
reinsurance division, which is head-
quartered in London.
Frank O’Halloran, QBE group chief
executive officer, said: “We have
known Secura for many years. They
have a unique client base, a long
track record of profitability and an
excellent team of experienced insur-
ance professionals.”
Secura is a specialised European
FINANCIAL SERVICES
ERNST & YOUNG (E&Y) has bolstered
its global partnership after admitting
almost 400 new partners across its
offices.
The accounting giant let in 396
new partners in total, with the UK
and Irish practice seeing the addition
of 48 partners to its headcount this
year, including 31 in yesterday’s
News 15
Hong Kong-Shanghai IPO has hung
over the Shanghai stock market in past
weeks, as investors worry that an
influx of additional shares could keep
the overall market – one of the world’s
worst performers this year – from hav-
ing a chance of reviving any time soon.
AgBank President Zhang Yun
sought to ease such concerns in an
“online roadshow”, answering ques-
tions in an online chat.
Frank O’Halloran,
group chief executive
officer for QBE,
joined the company
in 1976 having start-
ed his career as a
chartered account-
ant with Coopers &
Lybrand in 1963. He
became the director
of operations for the
worldwide group in
1994 and was
appointed to his cur-
rent position in
1998.
reinsurer with a diverse customer
portfolio including property, motor,
casualty and specialist classes. The
company works out of Brussels and
employs 86 staff.
The company works on a stand-
alone basis within the KBC group and
contributed €28.6m to net profit.
The deal forms part of KBC’s con-
tinued strategy to focus on core ban-
cassurance expertise in its home
markets within Europe.
rounds.
E&Y’s Europe, Middle East, India
and Africa practice, which was
formed two years ago, was boosted by
the addition of 171 new partners.
Jim Turley, E&Y chairman and
chief executive officer said: “Building
the next generation of partners to
lead our business is vital to our future
and reflects our ongoing commit-
ment to recognising excellence.”
 16 News CITYA.M. 6 JULY 2010

Serco wins £415m Coalition will

come good for
contract to build a outsourcers
new London prison THERE may be trouble ahead for
outsourcers. The new coalition
government is intent on getting a
better deal from support services
firms; as one of the biggest clients
in town, the likes of Serco are pow-
SUPPORT SERVICES Turning Point and Catch 22. erless to resist.
▲

BY HARRY BANKS
SERCO has signed a contract to run a
new London prison, despite concerns
that public spending cuts could mean
fewer deals for support services firms.
Serco, which runs the DLR and
detention centres in Australia, said its
consortium signed a contract worth
£415m with the Ministry of Justice to
build and manage a prison at
Belmarsh West in London.
“Construction works will begin
immediately, with completion expect-
ed in the first half of 2010. Equity and
debt finance has been secured from
third parties,” the company said
The prison will be built with Serco’s
construction partner, Swedish firm
Skanska, for whom the deal is worth
£100m. The consortium also involved
voluntary sector organisations
The company said last year that its
consortium had been named pre-
ferred bidder to run the prison along
with another prison in Liverpool. It
expects to sign that contract later this
year. The Belmarsh contract will run
for 26 years.
Serco’s signing of the contract
could allay worries among some
investors that the Treasury’s planned
belt-tightening for prison funding will
have a direct impact on big out-
sourcers which depend on bulky gov-
ernment contracts.
Last week Justice secretary Kenneth
Clarke said deep cuts in public spend-
ing will require a new approach to
dealing with crime and punishment
with more emphasis on community
sentences to curb re-offending rates.
Britain’s prison population reached a
record high in May of 85,201.
But while there is short-term
uncertainty, this government will
outsource more in the future. The
massive Work Programme will be
a big earner for firms that achieve
results, and plans to rehabilitate
criminals in the community
instead of prison will also need pri-
vate sector partners.
Serco is also well diversified:
around 40 per cent of revenue
comes from the US, Australia and
the Middle East. And the US alone
accounts for 25 per cent of sales, or
some $1bn. Savvy investors will
capitalise on any short-term
doubts.
BOTTOMLINE
Analysis by David Crow
Serco boss Chris Hyman signed a contract to build a prison at Belmarsh

| PROMOTION
Unite strike causes
BA traffic to drop
AVIATION strike could be avoided remain Ryanair, which filled 84 per cent
▲

BY EMMA SADOWSKI
STRIKE action by Unite, the union
representing British Airways (BA)
cabin crew, saw passenger traffic
measured in revenue passenger
kilometers reduced by 11.1 per cent
last month.
As a result of the nine-day strike
period in June, BA on average filled
only 77.5 per cent of its planes,
while passenger capacity fell 8.6
per cent from a year earlier, with
five percentage points of the
high after BA said that its new offer of its planes, said the number rep-
to Unite, which includes a proposal resented a 15 per cent rise on the
to increase staffing levels and guar- previous year. It has already flown
anteed pay rises in basic salary for 69.2m passengers during the last
two years from February 2011, is 12 months, but that includes the
still with the union. 1.45m passengers booked to travel
The airline said that underlying on flights cancelled due to the
market conditions continue to recent volcano in Iceland.
improve, after holiday bookings
were up 56 per cent on this time ANALYSIS l BA and Ryanair
last year. In June BA launched a pri- 250 p € 4.2
vate jet service for customers flying 240 British Airways 4.0
within the US and announced that Ryanair
230 3.8
it will start flying to Cancun from 220 3.6

Further 10% OFF

decline due to industrial action. BA Gatwick Airport starting in
210 3.4
carried 12.5 per cent fewer passen- November.
gers last month when it flew 2.5m Ryanair, however, trumped BA in 200 3.2

on top of current sale people compared with the same

period last year.
Meanwhile, hopes that a third
the number of passengers it flew
throughout the month of June
after it carried 6.71m customers.
190
180
12 Apr 30 Apr 21 May 11 Jun
3.0

1 Jul
2.8

City AM has teamed up with Basically Black

the online women’s retailer to offer readers an
extra 10% off the current sale.
FSA bans six mortgage brokers and
Basically Black offers black and white classic,
timeless styles for work, weekends and holidays.
Basically Black is for professional women,
fines one over £130,000 for fraud
run by professional women.
▲

Simply select the items you wish to buy and ENFORCEMENT
add the voucher code CITYAM SIX MORTGAGE brokers have been
banned and one fined over
just before you enter your card details. £130,000 by the Financial Services
Offer ends 16th July 2010 Authority (FSA) for allegedly com-
mitting fraud as the financial
watchdog continues its campaign
www.basicallyblack.com 01858 439055 to crack down on illegal activity in
the UK.
Neale Morton, Syed Meah and
Jonathan Smith of Neale Morton
IMS Limited have all been banned,
with Morton fined £130,192 for
committing fraud.
The FSA said the action brings
the total number of mortgage bro-
kers banned in the UK to 91 and
said that it found the individuals
“lacked honesty and integrity”.
Margaret Cole, director of
enforcement at the FSA said:
“These individuals put lenders at
risk of financial crime and threat-
ened to undermine confidence in
the mortgage market, so this
action makes the market a safer
place.”
Meanwhile, Monika Tewari,
Amanakwaa Adu and Tony Oliver
have also been banned by the FSA
for commiting mortgage fraud.
Tewari, according to the FSA,
used different mortgage intermedi-
aries to submit two applications in
her own name containing false
information. The FSA said that she
inflated her earnings by 300 per
cent from £23,000 to £92,000.
Adu, who traded as Distinct
Financial Services, has been
banned by the FSA for “failing to
demonstrate that he is fit and
proper to work in the financial
services industry”, while Oliver has
been prohibited for mortgage
fraud and for providing false infor-
mation to the FSA.
CITYA.M. 6 JULY 2010 News 17

Travis Perkins to buy BSS MICHAEL PESCOD

ADVISOR AT
NOMURA
he was head of the firm’s corporate
finance practice.
Packshaw started out as a civil engi-
neer before completing an MBA at
London Business School.
He worked at Lazard’s for 18 years
look forward to working with BSS’s shareholders. becoming managing director, before
▲

BUILDING
BY ALAIN TOLHURST
TRAVIS PERKINS is to acquire BSS
Group for £557.6m, making it the
country’s biggest plumbing and heat-
ing chain.
The offer – made up of cash and
shares – values each BSS share at
435.8 pence, a 4.7 per cent premium
on Friday’s closing price of 416.2p.
Travis Perkins charman Robert
Walker said: “Our respective busi-
nesses are complementary and we
customers, suppliers and employees.”
The company said it believed it
could achieve pre-tax savings of at
least £25m in 2013 through the deal.
Travis Perkins had first signalled its
intention to buy BSS in May.
BSS chairman Peter Warry said:
“The management team and employ-
ees have succeeded in building BSS
into a leading specialist distributor to
trade customers and a market leader
in the UK plumbing and heating sec-
tor, creating significant value for
The deal will create the UK’s lead-
ing plumbing and heating distribu-
tion business ahead of Wolseley, the
companies claimed.
The combined company would
generate revenues of £4.3bn and
employ 19,000 staff.
Travis Perkins competes with
Wolseley, the world’s largest building
supplies company. HSBC and
Nomura advised Travis Perkins. BSS’s
lead advisers were Lazard and RBS
Hoare Govett were corporate brokers.
MICHAEL Pescod jointly led the deal
with Charles Packshaw of HSBC for
Travis Perkins.
Pescod became an investment banker
in 2001 and joined Japanese firm
Nomura as an adviser in December
2009 after their takeover of corporate
finance advisory firm Tricorn, of which
he was a founder. Previously he
worked at Slaughter and May where
moving to HSBC to become head of
UK Advisory in 2002. He has advised
Travis Perkins previously, working on
their purchase of Wickes.
For BSS, Richard Stables led the
team for Lazard’s, who acted as lead
advisers. Stables, a longstanding
managing director, was assisted in
the deal by Vasco Litchfield, a Lazard
director.
The team from RBS Hoare Govett
was led by John MacGowan.

St Modwen
British Land is back in
shifts focus the black
to West End

▲
PROPERTY
BY JOHN DUNNE
REGENERATION specialist St
Modwen Properties reinstated divi-
dend payments yesterday after going
“We would be perfectly comfortable back into profit.
▲

PROPERTY
BY JOHN DUNNE
DEVELOPER British Land is “tweak-
ing” its property portfolio by extend-
ing its West End presence because of
financial uncertainty in the City, the
company said yesterday.
The switch will see the company
concentrate on areas where rents are
holding up.
British Land is planning to spend
£330m to redevelop a property on
Baker Street that it bought in April, as
well as expand the nearby Regent’s
Place office estate.
Currently 63 per cent of its portfo-
lio is in the Square Mile.
But British Land’s properties lost
£4.8bn of their value in the economic
crash and City rents fell sharply.
Chief executive Chris Grigg said:
with 50 per cent or more of our
offices in the West End.
“If you look at the rental perform-
ance of the West End over the City,
you see better long-term growth.”
British Land sold a 50 per cent
stake in Broadgate to Blackstone
Group LP for £77m in September.”
The company emphasised that it
was “tweaking” its portfolio to
achieve a “better balance”.
The company has relatively more
more City interests than its rivals,
with Land Securities only having 19
per cent of its portfolio in the City.
British Land is Britain’s second-
largest real estate investment trust.
Its building were valued at £2.6bn
at the end of March.
Around 32 per cent of its properties
are offices.
The company, which owns
Elephant and Castle shopping centre,
announced an interim dividend of
1p a share. It is the first payment for
two years.
It also reported a profit of £26.7m
in the first half of 2010 after losing
£98.3m in the same period last year.
Chief executive Bill Oliver told City
A.M.: “We are back in a healthy posi-
tion and we are more confident than
we have been for several years. We
are open for business.
“We are not saying the next two
years is going to be a walk in the
park. We wouldn’t resume dividends
unless we were in good health.”
The company saw the value of its
portfolio surge by £19.3m in the first
half, and added £15m in value from
Regent’s Place, above, is one of British Land’s developments planning permission on its assets.

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

Evolution Barclays Wealth Natixis Global Associates

SWIP
The Scottish Widows Investment Partnership
has appointed Ramsay Urquhart as its new
finance director and part of the executive com-
mittee, reporting directly to managing director
Dean Buckley.
Urquhart joins from Barclays Wealth, where
he has been head of investment operations
since September 2006.
Prior to that, he spent 14 years at Dutch
financial services company ING, most recently
holding the position of global head of financial
markets operations.
The investment banking group has hired
Steve Bartlett to its corporate finance
team as head of private company and
private equity coverage, effective imme-
diately.
Bartlett has two decades of experi-
ence as an adviser, focusing on private
company M&A work and private equity.
He most recently operated his own
advisory practice and, prior to that,
worked in the corporate finance team at
business advisory firm BDO, as well as
for Phoenix Equity Partners and
PricewaterhouseCoopers.
Rick Denton is to join the wealth manag-
er as head of clients and markets in the
advisory division, responsible for devel-
oping the service to ultra high net worth
clients globally.
Denton joins from Meespierson/
Fortis-Intertrust, where he was group
commercial director before the national-
isation of the bank and the sale of its
trust business.
Prior to that, he was an executive vice
president at the Bank of Bermuda,
where he was responsible for their
European private client businesses.
The distribution arm of Natixis Global
Asset Management has hired Euan
MacLaren as director of UK institutional
business development and Katie Lam as
a consultant relationship analyst, both
based in London.
MacLaren spent the past four years
working in business development for
Ignis Asset Management, while Lam
joins from Union Bancaire Privée, where
she was an executive on the UK institu-
tional sales team. She has also previous-
ly worked for Credit Suisse Asset
Management.

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
 18 News
Doing well can be the best way to do good
DRAGON’S VIEW
JULIE MEYER
D
AMBISA Moyo, author of Dead
Aid: Why Aid is Not Working
and How There is a Better Way
For Africa, and I met for break-
fast recently. Dead Aid argues that aid
to Africa is hurting Africa and should
be phased out. It became a New York
GMG appoints
new CEO as
McCall quits
MEDIA
▲
BY STEVE DINNEEN
GUARDIAN Media Group (GMG) has
announced its chief financial officer
will replace Carolyn McCall as chief
executive of the struggling firm.
Andrew Miller was among the
favourites to take the top job after
McCall announced she would take up
the role of chief executive at easyJet.
Amelia Fawcett, chair of GMG, said:
“Andrew is the ideal appointment to
this role, following a rigorous recruit-
ment process that produced a very
high-quality shortlist of candidates.
“He has great financial acumen, an
intimate understanding of GMG’s
portfolio and a full appreciation of
our unique purpose and values.
“Most importantly, he has the abili-
ty, desire and vision to lead GMG
through the next stage of its develop-
ment and to ensure a sustainable
future for our journalism.”
Miller said: “It is a great privilege
and responsibility to lead Guardian
Media Group and to play a key role in
supporting the independence of our
journalism. While the media sector
Superdrug reduces losses by cutting Bunzl takes the plunge to
costs and keeping focus on local offers buy Belgian cleaning firm
RETAIL
▲
BY MARION DAKERS
HIGH Street retailer Superdrug has
reported a pre-tax loss of £243,000 for
the year to December 2009, against a
loss the year before of £7.4m.
The firm has pulled its operating
profits out of the red to report a £6m
gain, compared to a loss of £2.4m last
year.
Sales were broadly flat at £1.1bn,
according to figures filed at
Companies House yesterday.
The health and beauty retailer said
Times bestseller. She reminded me of
one of the best things that George
Bush said in his quote: “the soft big-
otry of low expectations” – to refer to
society’s view that disadvantaged peo-
ple can never pull themselves out of
their situation.
Mikkel Verstergaard’s Verstergaard
Frandsen, a Danish company based
in Switzerland, is an example of the
type of company that solves prob-
lems that aid organisations believe
only they can solve. Verstergaard
Frandsen operates under their own
unique Humanitarian
Entrepreneurship business model.
This “profit for a purpose”
approach has turned corporate
social responsibility into their core
faces continued change, to which we
will need to adapt, our strong portfo-
lio of businesses and investments
means we have a solid base from
which to move forward.”
He inherits a company struggling
to plug yawning losses at its flagship
Guardian newspaper.
Its latest results show GMG’s losses
widening 77 per cent to £171m for
the year.
The firm last year introduced a
company-wide pay freeze after strug-
gling to navigate through turbulent
economic waters. Turnover at the
group fell to £280m from £310.9m
the year before.
Former GMG chief financial officer Andrew
Miller (l) will replace Carolyn McCall, who left
last month, as chief executive of the firm.
supermarket expansion and a slow-
down in shopping centre construc-
tion had dented takings, but that it
had undertaken cost-saving initia-
tives in its 900 UK stores, including
cutting back on slower-moving stock.
The UK’s second-largest health and
beauty retailer, behind Boots, said it
has refocused on customer service by
training staff and introducing store-
specific offers and products.
Jeremy Seigal, chief executive of
parent company AS Watson said:
“This year the focus on a local
business of creating life-saving prod-
ucts for the developing world.
Mikkel has created a very successful
business, eradicating disease. Far
from finding conflicts of interest in
profit and purpose, one feeds the
other. The success that Verstergaard
Frandsen has financially allows it to
do more good.
DOING GOOD ONLINE
“Doing good” increasingly domi-
nates the corporate agenda. I partici-
pated in the Guardian Activate 2010
Summit where the winner of the
pitch competition was Mendeley, an
online research management tool
which enables you to organise, share
and discover research papers.
BEST OF THE BROKERS
ANALYSIS l Tui Travel
320 p
210.10
300 05 Jul
280
260
240
220
200
12 Mar 30 Apr 21 May 11 Jun 1 Jul
TUI TRAVEL
UBS upgrades TUI Travel from “neutral” to
“buy” with a lower price target of 250p.
UBS said that market risk aversion and
concerns that a late collapse in summer
2010 sales will cause a significant earnings
downgrade seem to have caused the
shares to sharply underperform. UBS
believes the stock now offers good value.
Spyker makes final payment for Saab
M&A
▲
DUTCH carmaker Spyker Cars has
used internal funding rather than
external debt to pay General Motors
the final £15.9m purchase price for
Sweden’s Saab, ending concern over
how it would foot the bill.
Niche carmaker Spyker, which has
never made a profit, took over the
larger Saab from GM earlier this year
and is now working to revive the flag-
approach has seen dividends. 2009’s
performance gives the business a
firm foundation for the future.”
Superdrug was hit hard by the
recession, posting losses of £7.4m in
2008 after a profit of more that £21m
in 2007. It was taken over by Asian
retail group AS Watson in October
2002.
The group posted pre-tax profits of
HK$43bn (£3.65bn) for the year.
Mobile phone company 3 Group, also
part of AS Watson, made a worldwide
profit of £14.9m.
The entire summit was about how
you can “do good” through the inter-
net. Other finalists included
Everyclick with their “Give as you
Live” technology, Medikidz, which
has created a series of super heroes
to explain disease for children, and
Monitise, the global leader in mobile
banking which is gaining adoption
in the developing and developed
world, and will lower the cost of cash
remittances dramatically.
At The Times CEO Summit last
week after the evening dinner
address by David Cameron, I was
struck by the comments at my table
afterwards where a couple of the lis-
teners indicated that they feared the
worse with all of the budgets cuts.
ANALYSIS l Investec
560 p
431.40
540 05 Jul
520
500
480
460
440
420
12 Mar 30 Apr 21 May 11 Jun 1 Jul
INVESTEC
Numis said that Investec should be attrac-
tive to both growth and value investors.
Numis has issued a “buy” recommendation
for Investec and said the group’s earnings
have been substantially more resilient than
all the major UK focused banks through the
credit crunch with earnings per share
declining by a third from peak to trough.
To appear in Best of the Brokers email your research to notes@cityam.com
ging brand. The final instalment of
the purchase price had been due on
15 July.
Spyker said it made the payment
without increasing its external debt
or issuing new shares, adding the
internal funding became available
after the acquisition of Saab Great
Britain by Spyker on 31 May.
The firm had said it intended to
fund the payment primarily through
senior debt and that it had pledged
M&A
▲
DISTRIBUTION group Bunzl has con-
tinued its expansion plan by buying
Global Net, a Belgian cleaning compa-
ny, for an undisclosed sum yesterday.
The bolt-on acquisition takes rev-
enues gained from recent takeovers
past £100m, adding to five purchases
across Europe and the Middle East
that boosted trading figures in the
first half of the year.
Global Net’s assets are worth an
estimated £8m, and had revenues last
year of £16.3m.
CITYA.M. 6 JULY 2010
Personally, I’m confused by all the
talk about austerity. Living within
one’s means is called “sanity” not
“austerity”. In order for the UK to do
good in the world, it must do well
first. Otherwise, there is nothing to
share, and slowly the country shriv-
els.
The next decade will be defined by
a new group of giants – entrepre-
neurs, thinkers, leaders – who dare
to challenge the champagne social-
ists of the UK to throw out their soft
bigotry and try on a new framework:
“doing well is the best way to do
good”.
Julie Meyer is chief executive of Ariadne
Capital and a dragon on the BBC’s Online
Dragon’s Den.
ANALYSIS l UBC Media Group
5.4 p 4.88
05 Jul
5.2
5
4.8
4.6
4.4
4.2
4
3.8
12 Mar 30 Apr 21 May 11 Jun 1 Jul
UBC MEDIA GROUP
The recent results from UBC Media Group,
according to Seymour Pierce, demonstrate
strong progress in the strategy of becom-
ing a diverse producer of audio and video
output which is well-placed to exploit the
demand for more on-line content and
greater interactivity. Seymour Pierce gives
UBC a “buy” recommendation.
assets to GM as security for the final
payment.
“The early payment of the second
and last instalment underlines our
desire to finalise the transaction with
GM as soon as it was possible,
enabling management to fully focus
on the future of the group,” Spyker
Cars Chief Executive Victor Muller
said in a statement.
Spyker has spent £265m buying the
iconic Swedish brand.
Bunzl chief executive Michael
Roney said yesterday: “Global Net...
extends our geographic coverage
across the whole of Belgium. We are
delighted to welcome the manage-
ment and staff to the group.”
Shore Capital analyst Robin
Speakman said that the firm has an
attractive business model for
investors and issued a buy recommen-
dation.
Shares in London-based Bunzl
closed 0.9 per cent down at 658p yes-
terday.
 Investment | Contracts for Difference
19

LABOUR DATA
IS A WORRY Clouds hover over the
FOR THE US
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
second half outlook
Trading for the rest
F
OR many investors the long weekend in
the US couldn’t have come at a better
time. On top of Europe’s sovereign debt of the year is plagued
problems, and signs that Chinese growth
is slowing, recent data from the US suggests with uncertainty,
that the much-hyped economic recovery may be
reversing. We have seen housing data sour fol- says Kathleen Brooks
lowing the expiry of the home tax credit at the
end of April. Despite record-low mortgage rates,

the housing market remains weak.
And last week’s unemployment numbers
failed to offer any comfort. Weekly unemploy-
ment claims have been coming in well above
450,000 for months now, while Wednesday’s
ADP survey showed that private payrolls were
adding jobs, but at a very low rate and far
below the levels that would indicate recovery
from a normal, cyclical recession.
There was no surprise that the headline non-
farm payroll number came in negative, as the
drop-off in part-time census workers was as
expected. But private payrolls showed only a
modest increase of 83,000 jobs – well below
the 112,000 estimated. On top of this, last
month’s figures were revised down to 33,000
from 41,000. Compounding the bad news is
the fact that the numbers included 147,000
jobs added by the Bureau of Labor Statistics’
(BLS) birth/death model. This estimates the
employment created or lost by the start-up or
failure of new businesses each month. These
estimates are likely to be revised downwards
at the biannual review next month.
While the unemployment rate fell to 9.5 per
cent from 9.7 per cent, this was due to a fall in
the number of people who count as unem-
ployed. If you haven’t looked for work for four
weeks, then you don’t count; and many people
who would like to work have become so dis-
couraged that they’ve stopped looking.
With the second quarter corporate earnings
season kicking off next week, investors will be
praying for some better news even if it only
brings a temporary respite to the downward
pressure on equities.
T
HE last three months have seen a
step-change in global markets. After a
boom fuelled by fiscal stimuli, finan-
cial markets have fallen as govern-
ments plan to scale back their support, and
the period has been punctuated by a flight
to quality assets. So, what should contract
for difference (CFD) traders concentrate on
as we enter the second half of the year?
There are growing signs that clouds are
gathering on the economic horizon. Firstly,
Europe’s debt crisis is far from resolved.
Analysts at Saxo Bank argue that the only
remedy is for government’s in Europe’s
troubled states to “cut budget deficits
much quicker and much more dramatcial-
ly than what is currently being done”. This
lack of decisive action is particularly worry-
ing they say, because “running big budget
deficits kills growth – and that is especially
true in a cash strapped environment like
the one we are currently in”. So, until these If only there was a
imbalances have been healed, growth in reliable crystal ball
Europe will remain on the back foot. Picture: GETTY
Secondly, it’s not only Europe that has
growth fears, this has now spread to China
and the US. Jim O’Neill, chief economist at
Goldman Sachs, put the heebie-jeebies into Fears for global growth should ensure ple, in the US in the 1980s the second eco-
investors at the weekend by expressing his that the safe haven theme, which has gath- nomic contraction was more significant
concerns at the weak tone of economic ered strength in recent weeks, will hold than the first, but corporate profits fell by
data coming from China and the US. and boost gold along with US Treasuries, less. The reason for this is that manage-
Housing data, revised GDP and employ- the yen and the Swiss franc. ment become adept at cutting costs during
ment figures from the US along with weak Although clouds hover on the macro the first slowdown making businesses
industrial signals coming from China have horizon, there is positive news for equity more efficient as they enter they the sec-
weighed on markets. What’s worrying markets. Positive corporate earnings for the ond phase of the downturn.
economists such as O’Neill is that if the US second quarter, which will be released dur- In the absence of a reliable crystal ball,
and China – the two biggest forces in the ing the next few weeks, should provide a the best way to position your portfolio is to
global economy – slow significantly this short-term stimulus to stock prices. And look for companies that have cut costs but
year it would undoubtedly de-rail the glob- even a double-dip need not be a catastrophe also boosted sales growth – this is a good
al recovery. If the world economy has a dou- for stocks. Analysts at Saxo Bank have measure of efficiency. The next six months
ble-dip, or significant slowdown, this found that in the past corporate earnings are crucial for the global economy, and
would have repurcussions on stocks, bonds, have not been hit as hard during the sec- with so many unknowns, portfolios should
commodities and global exchange rates. ond slowdown in a double-dip. For exam- concentrate on quality assets.

GET
GET 1100
00
*
£ WHEN Y
A
OU OPEN A SPREAD BET
YOU
CCOUNT WITH GFT BEF
ACCOUNT OREE 31 JUL
BEFORE LY.
JULY.

Open an account
account now
now at
at gftuk.
gftuk.com
com with a minimum of £1,500
£1,500 and get
get a ££100 bonus *
100 bonus.
*TTerms
*Terms
e and conditions
conditions apply.
applyy. See
Seee website
websitte for
foor details.
details.
a CFDs,
CFD spospott fforex
or
orex and spread
sprread
e bets
bets ar
are
re le
leveraged
verraaged pr
products
rooducts and ma
mayay no
nott be suit
suitable
taable
ffor
or
o everyone
everyone as it is possible
posssible ttoo lose mor
lose morere than the funds yyou ou depo sit. Pleas
deposit. Pleasee ensur
re tha
ensure thatt yyou
ou
o fully unders tand
a the risk
understand ks in
risks volved. GFT
involved.
Global Markets
Markkets UK LLtd.
tdd. is authoris
authoriseded and rregulated
eegulateed bbyy th
he Financial SServices
the ervic
e es A uthoritty. CD0
Authority. CD03UK.107.061710.
033UK.107.061710.

SSPREAD
PREAD BETS
BETS | CFDs
CFDs | FOREX
FOREX / gftuk.com
gftuk.com / free
free phone
phone 0800
0800 358
35 8 0
0864
864
CITYA.M. 6 JULY 2010
Fears of a double-dip and the stress
tests knock European stock indices
These markets have
all suffered but there
are further risks in
the pipeline, says
Jessica Mead
W
HAT a difference a year can
make. This time last year we
were all worrying about the
resilience of the American
banks should the economic outlook wors-
en further while cheering France and
Germany’s ability to bounce out of reces-
sion in the second quarter.
Twelve months down the line, the
financial markets are worrying about the
possibility of a double-dip recession and
nervously awaiting the results of the
European banking stress tests, which will
be made public at the end of this month.
Meanwhile, fears of a sovereign debt
default still stalk the market. Market jit-
ters and uncertainty about the European
banking sector’s exposure to sovereign
debt and non-performing loans in the
Club Med countries have sent stock mar-
kets across the region plummeting since
mid-April.
The worst performer, unsurprisingly, is
the Greek ASE index, which is down 24.5
per cent since 15 April. The Spanish Ibex
35 and the Borsa Italiana are down 19.72
per cent and 19.52 per cent respectively
over the same timeframe. Only the
German Dax 30 has survived relatively
unscathed – it has shed just 2.79 per cent.
At such depressed levels, European
stock markets are looking like tempting
bets for contracts for difference (CFDs)
traders. But is now really the time to be
jumping into what is ostensibly still a
risky and uncertain trade?
Picking the bottom of a market is a
tough call and one which most traders,
however experienced, will probably get
ANALYSIS l European stock markets since mid April
% %
CAC 40 9.3%
DAX 30 2.79%
Ibex 35
19.72%
SMI 14.25%
THE TIPSTER
DESPITE DIP
FEARS, LOOK
FOR A SHORT
4 JULY RALLY
A
MERICAN investors come back to the
market place today after an extended
weekend celebrating Independence
Day. After the recent falls in global
equities, this US public holiday could instigate
a renewed sense of optimism and send stock
indices higher, even if only temporarily – look
Investment | Contracts for Difference 21
wrong, says City Index’s Joshua Raymond.
He adds it is also dangerous to assume
that just because a market has suffered
double-digit percentage falls, it is oversold
and due a rebound. CFD traders should
place stop-losses close to protect them-
selves from another bout of volatility.
So what of the stress tests and what
impact might they have on the market?
There are certainly still a lot of unknowns
surrounding the European banking sys-
tem and the precise details of the tests are
yet to be clarified. For example, there are
rumours circulating that banks’ sovereign
debt exposure will not be fully scrutinised
by the stress tests. If this were indeed the
case, then this would add to the confusion
and undermine the results of the tests,
potentially dragging indices even lower.
Manoj Ladwa, senior trader at ETX
Capital, reckons that the Spanish Ibex 35
and the French CAC 40 will continue to
underperform due to both indices’ high
exposure to the financial sector. In con-
trast, he expects the German Dax 30 to
outperform its peers but cautions that the
index could still give up some ground.
To ensure you don’t end up on the
wrong side of a trade, it is worth investi-
gating the key support levels that are
underpinning European indices at the
moment. For example, the Dax 30 has
been bouncing around the 5,800 level for
the past two weeks. City Index’s Raymond
says that 5,600 and 5,500 are the next two
near-term support levels for the Dax, with
5,435 the strongest support. The index is
also trading below its 10 and 20-day mov-
ing average, which would suggest the mar-
ket is trending lower in the short-term.
Both the Spanish Ibex 35 and the Italian
MIB are still very much in a downward
trend. For the Ibex, a lot of people will be
looking at the 8,600 level. A close below
here could see some new shorts enter the
market, says Raymond. For the MIB, a
close below 18,000 would be further con-
firmation of the sell trend.
Calling the next move in the European
stock indices will be a tough one but
worthwhile for medium-term CFD traders. Prospects are grim
for stocks on the
Madrid exchange
Picture: GETTY
PSI 20 13.15% IN FOCUS | EUROPEAN BANK STRESS TESTS
The exact criteria for Europe’s bank stress tests will only be to a sudden shock situation and a hypothetical situation of
known once the results are published on 23 July. According just a 3 per cent “haircut” on sovereign debt. However, if
to the European Commission, the outlines for the stress Greece is anything to go by, this 3 per cent level wouldn’t
FTSE MIB 19.52% tests will be agreed by the European Central Bank, to then even skim the surface of possible figures.
be undertaken on a bank-by-bank basis across Europe. The authorities have boosted the number of banks to be
Finance ministers will meet in Brussels on 13 July to finalise included in the tests. Originally, only 25 of Europe’s leading
the terms of the tests. The results are expected to include banks were to be tested. This number has reportedly been
details of the banks’ sovereign debt holdings, their strategy raised to over 100.
ASE 24.5% for dealing with any future financial crises, their resilience Verity Pugh
to take advantage of a feel-good rally on the
Dow Jones Industrial Average. Capital
cent against the US dollar in a week, pushing
dollar-Canadian dollar to strong resistance
Spreads quotes a price of 9,668-9,670 for the
Dow.
around the C$1.0675 area. A major far-east
central bank was a big buyer of the loonie
Balfour Beatty updates the market today,
at the end of what has been a volatile six
last time we got near C$1.070, so look to sell
around C$1.0675–C$1.070 for a move back
months for its shares. A 16 per cent rally to to C$1.020. Spread Co offers a spread on a
the year’s high of 300p in mid-April was fol- dollar-Canadian dollar contract for difference
lowed by a 23 per cent slide to 230p last of C$1.0658–C$1.0662.
week, significantly spending the whole week Despite a possible Dow rally, the overall
below support at 243p. This area should now trend is for a major slowdown from April
prove resistance to the upside, with the 2008 onwards. This is likely to stay put until busi-
lows of 190p the next obvious target to the ness picks up against in the autumn but in
downside. Spread Co offers a spread on the meantime house-builders look particular-
Balfour Beatty of 235.9p–236.8p. ly set to suffer. According to Fairfax,
With fears of a double-dip recession rising Persimmon looks expensive. Spreadex
again, commodity currencies have suffered quotes Persimmon at 347.6p-349.5p.
over the last week. The loonie has fallen 3 per Juliet Samuel The US public holiday could spark a short Dow rally Picture: GETTY
 22 Markets & Investment CITYA.M. 6 JULY 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .256.50* –3.50 314.80 216.75 COLT Group . . . . . . . . . . . . . . . .125.60 –1.80 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .48.28 –1.52 71.75 31.75 Schroders . . . . . . . . . . . . . . . . . 1167.00 +13.00 1450.00 764.00
3i Infrastructure . . . . . . . . . . . . . 111.20* +0.70 115.00 89.35 Compass . . . . . . . . . . . . . . . . . . 511.50* +6.00 574.50 307.75 Jardine Lloyd Thompson. . . . . . .525.00 –2.50 604.50 399.00 Schroders N/V. . . . . . . . . . . . . . .963.00 +8.00 1185.00 643.50
A.B. Foods . . . . . . . . . . . . . . . . .947.00* –2.00 1045.00 752.00 Cookson . . . . . . . . . . . . . . . . . . .383.10 +4.10 616.00 220.00 Johnson Matthey . . . . . . . . . . .1479.00* –1.00 1814.00 1108.00 Scot. & Sthrn Energy. . . . . . . . . 1134.00 +6.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .123.00 –0.40 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1030.00 +26.00 1047.00 529.00 Kazakhmys . . . . . . . . . . . . . . . . .967.50 –17.00 1634.00 574.50 Scottish Mortgage. . . . . . . . . . . .545.50 +3.00 623.50 376.00
Admiral. . . . . . . . . . . . . . . . . . .1398.00 –2.00 1441.00 863.50 CSR . . . . . . . . . . . . . . . . . . . . . .357.90 –6.00 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .125.00 –0.10 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .253.10 –1.80 403.10 244.00
Aegis . . . . . . . . . . . . . . . . . . . . .106.00 +0.70 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .440.10* –1.60 539.00 279.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .210.30 +2.50 255.00 178.30
Afren . . . . . . . . . . . . . . . . . . . . . .82.55 –0.20 111.00 48.50 Dana Petroleum . . . . . . . . . . . .1443.00 +3.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .127.40 +1.80 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .561.50 –6.00 656.50 394.30
African Barr Gold . . . . . . . . . . . .600.50 –14.00 685.00 520.50 Davis Service . . . . . . . . . . . . . . .363.00 +2.80 442.30 311.25 Lancashire Hldgs . . . . . . . . . . . .501.00 +1.00 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1230.00* +4.00 1310.00 921.00
Aggreko . . . . . . . . . . . . . . . . . .1418.00 +29.00 1496.00 492.50 De La Rue . . . . . . . . . . . . . . . . . .952.50 +4.00 1021.00 808.50 Land Securities . . . . . . . . . . . . . .545.00* –6.50 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .354.50* +3.50 426.50 285.25
Alliance Trust . . . . . . . . . . . . . . .295.40* +0.80 352.70 260.25 Debenhams . . . . . . . . . . . . . . . . .57.20 +0.90 91.95 51.95 Legal & General . . . . . . . . . . . . . .75.60 –0.25 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1350.00 –15.00 1526.00 818.00
AMEC . . . . . . . . . . . . . . . . . . . . .821.00 +4.00 891.00 603.50 Derwent London . . . . . . . . . . . .1223.00 –6.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .54.77 +0.07 75.58 40.42 SIG . . . . . . . . . . . . . . . . . . . . . . . .99.80 –0.50 146.60 86.75
Amlin . . . . . . . . . . . . . . . . . . . . .394.60 +1.70 428.50 291.00 Dexion Absolute . . . . . . . . . . . . .137.50 +0.50 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . .103.70 –0.20 149.10 74.50 Smith & Nephew . . . . . . . . . . . . .580.00 –1.50 700.50 435.25
Anglo American . . . . . . . . . . . .2255.00 –48.50 3015.50 1557.50 Diageo . . . . . . . . . . . . . . . . . . .1033.00 –4.00 1176.00 857.00 London Stk Exchange . . . . . . . . .548.00 –2.50 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . .1051.00 –3.00 1186.00 677.50
Antofagasta . . . . . . . . . . . . . . . .761.00 –16.50 1100.00 561.00 Dimension Data . . . . . . . . . . . . . .90.70 –0.20 105.00 54.75 Lonmin . . . . . . . . . . . . . . . . . . .1360.00 –18.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . . .391.90 +0.80 444.60 380.60
Aquarius Platinum . . . . . . . . . . .301.40 –8.10 490.00 172.75 Domino’s Pizza . . . . . . . . . . . . . .393.00 +2.40 395.50 202.00 Man . . . . . . . . . . . . . . . . . . . . . .212.70* –1.80 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .749.00 –1.50 928.00 512.50
ARM Holdings . . . . . . . . . . . . . . .270.90 +0.40 362.40 116.00 Drax . . . . . . . . . . . . . . . . . . . . . .380.60 +4.60 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .341.90* +8.80 412.70 303.75 Spirax-Sarco Eng . . . . . . . . . . .1358.00 +2.00 1591.00 809.00
Arriva . . . . . . . . . . . . . . . . . . . . .763.50 — 782.50 378.50 DSG Intl . . . . . . . . . . . . . . . . . . . .25.59 +0.34 39.75 19.25 Meggitt . . . . . . . . . . . . . . . . . . . .301.80 +1.00 331.00 151.75 Spirent Comms . . . . . . . . . . . . . . 110.50 +0.40 127.80 54.50
Ashmore . . . . . . . . . . . . . . . . . . .240.20 +3.40 311.20 183.25 Dunelm . . . . . . . . . . . . . . . . . . . .326.80 +1.50 438.40 202.50 Melrose . . . . . . . . . . . . . . . . . . .207.00 –2.40 251.50 90.00
Astrazeneca . . . . . . . . . . . . . . .3051.50 –37.00 3262.00 2637.00 Easyjet . . . . . . . . . . . . . . . . . . . .392.00 –4.90 499.90 260.00 Mercantile IT . . . . . . . . . . . . . . . .863.50* +4.00 1002.00 726.00 Sports Direct Intl . . . . . . . . . . . . .106.00 +0.10 134.00 72.50
Atkins(Ws) . . . . . . . . . . . . . . . . .684.00 +2.50 747.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .378.50* +0.60 412.40 298.50 Michael Page Intl. . . . . . . . . . . . .359.30 +9.90 461.50 218.50 SSL Intl . . . . . . . . . . . . . . . . . . . .802.00 +5.50 893.50 506.00
Autonomy Corp . . . . . . . . . . . .1761.00 –40.00 2012.00 1121.00 Electrocomponents . . . . . . . . . . .209.60* +0.30 245.00 134.25 Micro Focus . . . . . . . . . . . . . . . .436.30 –0.70 550.00 300.90 St James’s Place . . . . . . . . . . . . .210.70 +2.70 296.90 172.25
Aveva . . . . . . . . . . . . . . . . . . . . 1145.00* +4.00 1237.00 666.50 EnQuest . . . . . . . . . . . . . . . . . . . .97.50 –0.70 112.70 87.35 Millen & Copthorne . . . . . . . . . . .395.00 — 496.30 227.75 Stagecoach. . . . . . . . . . . . . . . . .176.30 +1.70 204.90 123.50
Aviva . . . . . . . . . . . . . . . . . . . . .317.70 +2.60 474.00 274.75 Essar Energy . . . . . . . . . . . . . . .453.90 –9.80 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .230.00 –1.90 281.70 165.25 Standard Chartered . . . . . . . . . .1608.00 –3.00 1847.00 1119.00
Babcock International . . . . . . . . .624.00* +5.50 660.50 448.50 Eurasian Nat Res . . . . . . . . . . . .818.00 –23.50 1276.00 632.00 Mitchells & Butlers . . . . . . . . . . .281.40 +4.00 343.90 228.30 Standard Life . . . . . . . . . . . . . . .174.90 –1.10 237.00 170.00
BAE Systems . . . . . . . . . . . . . . .309.10 +0.60 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .576.50* — 630.00 206.00 MITIE . . . . . . . . . . . . . . . . . . . . .208.00* –0.50 281.70 198.70 SuperGrp . . . . . . . . . . . . . . . . . .769.00 +24.00 770.00 499.00
Balfour Beatty . . . . . . . . . . . . . . .236.60* +2.60 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .582.50* +4.50 664.50 437.50 Mondi . . . . . . . . . . . . . . . . . . . . .367.60 –3.40 488.00 187.50 TalkTalk . . . . . . . . . . . . . . . . . . . 118.80 –1.70 147.10 106.60
Barclays . . . . . . . . . . . . . . . . . . .259.20 –7.75 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .91.05 –0.40 96.80 73.50 Monks Inv Tst . . . . . . . . . . . . . . .276.00 –1.90 321.20 222.00 Talvivaara Mining . . . . . . . . . . . .361.70 –0.50 501.50 319.00
Barratt Development . . . . . . . . . . .93.90 +1.55 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .237.80 –2.40 396.20 112.00 Morrison Wm . . . . . . . . . . . . . . .267.10 +3.00 306.30 234.75 Tate & Lyle . . . . . . . . . . . . . . . . .469.90* –2.80 509.00 284.75
BBA Aviation . . . . . . . . . . . . . . .180.70 +0.80 220.00 108.75 FirstGroup . . . . . . . . . . . . . . . . .363.30 +1.30 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .822.50 +5.50 893.50 593.50 Taylor Wimpey . . . . . . . . . . . . . . .25.06 –0.66 54.90 24.29
Beazley. . . . . . . . . . . . . . . . . . . . 113.70 +0.70 124.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .258.80 +2.10 297.20 210.25 National Express. . . . . . . . . . . . .217.70 +4.30 256.80 135.86 Telecity . . . . . . . . . . . . . . . . . . . .397.90 +4.90 455.00 298.00
Bellway. . . . . . . . . . . . . . . . . . . .588.00 +3.00 927.50 580.50 Fresnillo . . . . . . . . . . . . . . . . . . .950.00 –14.00 1115.00 438.00 National Grid . . . . . . . . . . . . . . .487.70* –0.10 607.65 469.37
Berkeley . . . . . . . . . . . . . . . . . . .785.50 +12.50 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .266.20 +3.60 285.70 206.50 Next . . . . . . . . . . . . . . . . . . . . .2014.00 +25.00 2360.00 1497.00 Templeton Emrg Mkts . . . . . . . . .525.50* +5.50 598.00 349.50
BG . . . . . . . . . . . . . . . . . . . . . .1038.00 +12.50 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .446.00 +1.00 484.00 370.00 Northumbrian Water . . . . . . . . . .304.00 +0.30 312.00 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .389.05* +6.15 454.90 347.40
BHP Billiton . . . . . . . . . . . . . . .1684.50 –38.50 2346.00 1274.50 GKN . . . . . . . . . . . . . . . . . . . . . . 112.10 –0.40 155.00 71.75 Old Mutual . . . . . . . . . . . . . . . . .103.00 –0.50 127.20 74.60 Thomas Cook . . . . . . . . . . . . . . .179.80 +1.00 277.20 172.30
BlackRock Mining . . . . . . . . . . . .533.50 –8.50 654.50 346.00 GlaxoSmithKline . . . . . . . . . . . .1095.00* –13.50 1347.00 1058.00 Partygaming . . . . . . . . . . . . . . . .220.80 +2.40 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .221.40 –1.50 261.10 141.75
Booker . . . . . . . . . . . . . . . . . . . . .40.20* +0.70 49.50 33.00 Great Portland Estates . . . . . . . .281.00 –2.00 332.10 203.75 Pearson . . . . . . . . . . . . . . . . . . .887.50 +20.50 1069.00 574.00 Travis Perkins . . . . . . . . . . . . . . .753.00 –1.50 915.00 536.00
BP . . . . . . . . . . . . . . . . . . . . . . .333.30 +11.30 658.20 296.00 Greene King . . . . . . . . . . . . . . . .419.90 +4.70 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .557.00 — 567.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .209.80 +0.70 313.90 202.30
Brit Insurance . . . . . . . . . . . . . . .897.00* –3.00 975.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .496.80* +0.60 562.50 306.25 Persimmon . . . . . . . . . . . . . . . . .348.50 +5.30 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .314.00 –4.20 436.20 261.20
British Airways . . . . . . . . . . . . . .186.60 –1.80 255.80 117.30 Halma . . . . . . . . . . . . . . . . . . . . .271.60 +2.60 284.90 184.00 Petrofac . . . . . . . . . . . . . . . . . . 1164.00 –8.00 1294.00 633.50 Tullow Oil . . . . . . . . . . . . . . . . .1041.00 –5.00 1375.00 834.50
British Amer. Tob . . . . . . . . . . .2125.50 +6.50 2335.50 1676.00 Hammerson . . . . . . . . . . . . . . . .336.30 –0.40 460.30 277.00 Petropavlovsk . . . . . . . . . . . . . . 1143.00 –16.00 1370.00 516.50 UK Commercial Prop. . . . . . . . . . .80.00 +0.50 84.90 62.25
British Empire Tst . . . . . . . . . . . .404.10 –0.90 467.90 338.50 Hargreaves Lansdown . . . . . . . .317.40 –6.70 387.00 197.25 Premier Farnell . . . . . . . . . . . . . . 211.10 +0.90 252.60 122.25 Ultra Electronics . . . . . . . . . . . .1528.00 –2.00 1678.00 1079.00
British Land . . . . . . . . . . . . . . . .437.70 +1.40 532.00 353.00 Hays . . . . . . . . . . . . . . . . . . . . . . .89.10 +0.70 119.00 80.00 Premier Oil . . . . . . . . . . . . . . . .1350.00 +27.00 1431.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1736.00 –6.00 2024.00 1419.00
Britvic. . . . . . . . . . . . . . . . . . . . .480.50* –4.70 498.50 286.25 Henderson . . . . . . . . . . . . . . . . . 118.70 –0.10 157.80 87.75 Provident Financial . . . . . . . . . . .833.00 +7.50 986.00 763.00 United Utilities . . . . . . . . . . . . . .526.00* –2.50 575.00 429.00
Brown(N.) . . . . . . . . . . . . . . . . . .254.90* +1.90 284.30 204.25 Heritage Oil. . . . . . . . . . . . . . . . .378.00 –2.90 587.00 368.70 Prudential . . . . . . . . . . . . . . . . . .490.30 –3.80 665.00 350.25
BSkyB . . . . . . . . . . . . . . . . . . . .694.00 –2.00 732.00 456.00 Hikma Pharma . . . . . . . . . . . . . .688.00 –1.00 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .343.00 +2.00 344.50 197.50 Utd Business Media . . . . . . . . . .493.50 –1.00 579.50 364.75
BT . . . . . . . . . . . . . . . . . . . . . . .126.30 –0.30 151.00 99.50 Hiscox . . . . . . . . . . . . . . . . . . . .343.40 –0.70 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . . 119.10 –0.40 179.10 113.90 Vedanta Resources . . . . . . . . . .2100.00 –31.00 2967.00 1264.00
Bunzl . . . . . . . . . . . . . . . . . . . . .658.00 –6.00 784.50 501.00 Hochschild Mining . . . . . . . . . . .297.70 –7.30 370.60 220.00 Randgold Resources. . . . . . . . .6125.00 –55.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . .1079.00* +24.00 1193.00 537.00
Burberry . . . . . . . . . . . . . . . . . . .745.00 +5.50 815.50 403.25 Home Retail . . . . . . . . . . . . . . . .215.30* +1.00 336.50 208.50 Reckitt Benckiser . . . . . . . . . . .3037.00 –8.00 3667.00 2686.00 Vodafone . . . . . . . . . . . . . . . . . .136.50* — 153.80 111.90
Cable & Wire Comms . . . . . . . . . .58.20* +0.40 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2017.00* +21.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .495.10 +0.30 548.00 403.75 VT . . . . . . . . . . . . . . . . . . . . . . .795.00 +6.00 799.00 416.00
Cable & Wire Wwide . . . . . . . . . . .86.00* +1.00 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .596.20* –3.90 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .70.75 +1.75 125.50 61.00 Weir . . . . . . . . . . . . . . . . . . . . .1049.00 –3.00 1183.00 437.50
Cairn Energy. . . . . . . . . . . . . . . .416.40 –5.70 448.60 306.80 Hunting . . . . . . . . . . . . . . . . . . .442.00 +1.00 659.50 377.00 Rentokil Initial . . . . . . . . . . . . . . .104.40 +0.70 140.20 82.25 WH Smith . . . . . . . . . . . . . . . . . .412.00 +1.00 551.00 396.00
Caledonia Invs . . . . . . . . . . . . .1575.00 +18.00 1759.00 1495.00 ICAP . . . . . . . . . . . . . . . . . . . . . .393.00 –1.70 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .68.00 +1.05 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1373.00* +6.00 1645.00 778.50
Capita . . . . . . . . . . . . . . . . . . . . .738.50 +4.50 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .425.90 –0.60 458.20 261.25 Rexam . . . . . . . . . . . . . . . . . . . .290.40 –2.70 331.20 222.50 William Hill . . . . . . . . . . . . . . . . .170.60 +1.20 217.80 160.50
Capital & Counties . . . . . . . . . . .106.80 –2.10 125.40 99.60 Imagination Tech Gp . . . . . . . . . .275.20 –0.30 311.60 130.00 Rightmove . . . . . . . . . . . . . . . . .619.00 +1.00 729.00 334.00 Witan Inv Tst . . . . . . . . . . . . . . . .416.00 +4.00 487.00 329.50
Capital Shopping Centres . . . . . .301.60 –3.20 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .673.50 +7.50 756.50 275.25 Rio Tinto . . . . . . . . . . . . . . . . . .2880.50 –54.00 4104.00 1822.00 Wolseley . . . . . . . . . . . . . . . . . .1330.00 +8.00 1742.00 1026.00
Carillion . . . . . . . . . . . . . . . . . . .305.30 +4.00 361.90 244.00 Imperial Tobacco. . . . . . . . . . . .1865.00 +15.00 2159.00 1554.00 RIT Capital Partners . . . . . . . . . 1162.00 +5.00 1200.00 879.00
Carnival . . . . . . . . . . . . . . . . . . 2117.00 –26.00 2937.00 1574.00 Inchcape. . . . . . . . . . . . . . . . . . .241.80 –1.90 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .541.50* –5.50 631.50 346.50 Wood Group (John). . . . . . . . . . .319.30 –1.80 411.70 231.25
Catlin . . . . . . . . . . . . . . . . . . . . .344.80 –3.20 380.50 284.75 Informa . . . . . . . . . . . . . . . . . . . .347.10 –2.30 439.40 216.00 Rotork . . . . . . . . . . . . . . . . . . .1269.00* –4.00 1482.00 779.50 WPP . . . . . . . . . . . . . . . . . . . . . .631.50 +7.50 744.00 380.50
Centamin Egypt . . . . . . . . . . . . .154.90 –3.10 174.75 77.86 Inmarsat . . . . . . . . . . . . . . . . . . . 711.00 +7.00 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .38.96 –1.10 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . . .851.00 –20.10 1344.50 555.10
Centrica . . . . . . . . . . . . . . . . . . .293.30 +0.50 320.00 212.50 Intercontl Hotels . . . . . . . . . . . .1047.00 –4.00 1244.00 584.50 Royal Dutch Shell A . . . . . . . . .1635.50 –13.00 2068.50 1431.00 Yell Group. . . . . . . . . . . . . . . . . . .25.00 –0.50 86.00 21.00
Charter Intl . . . . . . . . . . . . . . . . .605.00 +2.50 855.50 406.50 Intermediate Capital . . . . . . . . . .246.30 +2.80 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1561.00 –15.50 1997.50 1437.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2963.00 +13.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1476.00 +26.00 1576.00 1024.00 RSA Insurance . . . . . . . . . . . . . . 118.40 –0.60 142.00 113.10
Chloride Group . . . . . . . . . . . . . .372.00 –1.00 390.50 129.00 Intl Power . . . . . . . . . . . . . . . . . .296.90 +1.00 354.00 231.00 SABMiller . . . . . . . . . . . . . . . . .1827.50 –4.00 2090.00 1210.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .673.00 +3.00 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .242.50* –0.60 350.30 212.25 Sage . . . . . . . . . . . . . . . . . . . . . .222.70 –1.50 260.50 167.20
Cobham . . . . . . . . . . . . . . . . . . .214.20* +2.60 278.60 173.20 Investec . . . . . . . . . . . . . . . . . . .431.30 +0.70 565.00 324.25 Sainsbury(J) . . . . . . . . . . . . . . . .320.80* +1.60 373.00 307.60 www.interactivedata.com

Weak banks European

and miners THE QUINTESSENTIAL RANGE OF MADE TO MEASURE SUITS
shares at a
hurt FTSE )"-'
13*$& 6-week low
MADE TO MEASURE SUIT SALE
THELONDON THEEUROPE
REPORT /08
‚ REPORT
‚
W E
EAK banks and miners, 03*(*/"--: UROPEAN shares fell to their
beset by doubts over the lowest close in nearly six weeks
health of the global eco- yesterday, with miners weaker
nomic recovery, pulled


3&(&/5
45

„

-*7&3100-
45

„

106-53:

„

$"/"3:
8)"3'

„
'&/$)63$)
45

on a gloomier economic outlook
down Britain’s top share yesterday, */
4503&4
/"5*0/8*%&

'*/%
:063
/&"3&45
4503&
"5
888"645*/3&&%$06, and volumes thin as Wall Street was
while BP rose on media reports it is *Terms & Conditions apply, see in store for details. Offer not valid online. closed for the Independence Day holi-
seeking a strategic investor. day.
By the close, the FTSE 100 index A rise for BP helped stem losses for
was down 14.56 points, or 0.3 per cent major indexes.
at 4,823.53, having ended 0.7 per cent 2.9 per cent. at its slowest rate for 10 months in Kuwait may buy some of BP’s Middle The pan-European FTSEurofirst 300
higher on Friday. Banks fell ahead of the publication June after concern about the impact East and Asian assets as part of the index of top shares fell 0.3 per cent to
With US markets closed yesterday later this month of European stress of a public spending squeeze led to a British oil company’s attempt to raise 966.52 points, the lowest close since
for the Independence Day holiday, tests on the sector, with Barclays and record monthly drop in confidence, a funds and fend off takeover bids. May 25. Volume was less than half the
the FTSE 100 traded only 41.9 per cent Royal Bank of Scotland the two survey showed yesterday. Elsewhere, Britain’s biggest cloth- 90-day average.
of its average 90-day volume. biggest fallers in the sector, down 2.9 Embattled oil major BP was the top ing retailer Marks and Spencer The index lost 4.3 per cent last
“It’s been a pretty dull session, with and 2.8 per cent. performer in the FTSE 100, up 3.5 per gained 2.6 per cent ahead of a fiscal week, weighed down by persistent
little for direction without Wall However, UBS said in a note that cent on optimism that the plugging first-quarter trading update due on worries over the pace of global eco-
Street’s lead, and weakness in miners running a credit stress test along the of the leaking well in the Gulf of Wednesday. nomic recovery, and is down more
and banks pinning us back,” said Mic lines of the US tests of 2009 would see Mexico is now only about a month than 13 per cent from a mid-April
Mills, head of electronic trading at all the major European banks pass. away, and amid media reports that ANALYSIS l FTSE peak. Worries of a double-dip reces-
6,000
ETX Capital. French economy minister Christine the company was seeking a strategic 4,823.53 sion returned to the fore following
Miners were the big fallers as Lagarde said on Saturday that the test investor to secure its independence. 5,800 05 Jul poor US data.
investors worried about the demand results, to be published on July 23, The weekend newspaper reports 5,600 Growth in the services sector in
outlook and the stability of the global will show that “banks in Europe are said BP was looking for a shareholder China, Britain and the Eurozone also
recovery after disappointing jobs data solid and healthy”. willing to buy a 5 to 10 per cent stake 5,400 slipped in June, data showed, support-
from the US on Friday, and figures London’s blue chip index lost 3.9 at a cost of up to £6bn. BP’s rivals 5,200 ing the view that emerging and devel-
from China on Thursday showing a per cent last week after shedding 13.4 Exxon, Total and Royal Dutch Shell 5,000
oped economies are set to cool off
cooling of manufacturing growth. per cent in June with investor doubts have all been touted as possible bid- through the second half of the year.
Among the worst off, Eurasian mounting on worries over the sus- ders, according to the reports. 4,800 Mining stocks Anglo American,
Natural Resources, Xstrata, BHP tainability of the global recovery. Additionally, a report by a Kuwait 4,600 BHP Billiton and Rio Tinto, were
Billiton and Antofagasta shed 2.2 to Britain’s services sector expanded newspaper said OPEC member 12 Apr 30 Apr 21 May 11 Jun 1 Jul down between 1.8 and 2.2 per cent.
 Lifestyle
Expert, yes. Tasty, yes. Fun, err...
Masterchef’s Michel
Roux Jr has brought
top notch cuisine to
Westminster. It’s a
shame it lacks soul
Roux at Parliament Square
RICS, Parliament Square, SW1P 3AD
Tel: 020 7334 3737
FOOD hhhhI
SERVICE hhhhI
ATMOSPHERE hIIII
Cost per person without wine: £55
T
HE ROYAL Institution of Chartered
Surveyors (RICS) is perhaps not the
sexiest-sounding location for a
restaurant. Yet the Victorian build-
ing in which Roux at Parliament Square
sits is handsome, the location is prime
and the people behind the place – of
whom the most important is Le
Gavroche’s Michel Roux Jr (now of TV
fame) – are first-rate.
To be sure, these things make for a
“good” restaurant, in a strict, uptight kind
of way. They do not, by any stretch of the
imagination, make for a sexy one.
The contrast with Le Gavroche, Roux Jr’s
den of upholstered, Michelin-starred luxu-
ry in Mayfair, is about as vast as can be,
and intentionally so. Roux set out to make
a crisper, more modern sort of place, but
the result is sterile and boring rather than
elegant. Someone somewhere was very
silly to think that even schmoozing MPs
would feel inclined to, well, schmooze, in
such a grey-walled, grey carpeted, hotel-
style environment. Paintings, wood, noise,
colour – chatter – would all have helped
rather than hindered. Even a touch of
Gavroche-style upholstery would have
warmed the place up.
But what’s done is done, and perhaps
there are people who will be grateful to
have a top-pedigree eatery decked out inof-
fensively in the gastronomic black hole
that is Westminster, with a wine list that
even the most demanding father-in-law
| Restaurant Review
Symmetrical but
cold.
would approve of.
In the kitchen is Dan Cox, a Roux pro-
tégé, and he’s good. But the a-la-carte
menu is hugely expensive – £55 for three
courses – when you can get the same
number for £16.95 at Arbutus and £27
at the new Gauthier Soho – compara-
ble, Michelin sort of places.
So we figured we’d just go all out
and choose the tasting menu: seven
courses for £65. It kicked off with cor-
rect, crunchy asparagus and morel
butter. It is the season for asparagus, if
you hadn’t noticed, though I could sure
use a break from the stuff. What I would
never want a break from was Cox’s silky Halibut with razor
slab of pale pink organic salmon, served clams, fennel and
with cucumber cubes, nasturtium and girole mushrooms.
samphire. Roast royal quail with pickled
radish, hazelnut and pomegranate was
predictably well-executed but I find it
impossible to get excited about quail
unless it’s charcoal grilled and torn at by
hand at a Turkish restaurant off the
Kingsland Road.
THE WORLD CUP
AT BOISDALE OF
BISHOPSGATE
Enjoy the World Cup in style with
a 72” screen & air-conditioning in
the Champagne & Oyster Bar
BOISDALE OF BISHOPSGATE SWEDELAND COURT,
202 BISHOPSGATE,
EC2M 4NR 020 7283 1763
INFO@BOISDALE-CITY.CO.UK
WWW.BOISDALE.CO.UK
WORDS BY
ZOE STRIMPEL
Poached halibut with razor clams and
fennel was a golden, cottony delight, but
the evening’s showstopper was the
Gloucester Old Spot loin and belly of pork,
which was sticky with juice and savour
and sloooowww cooking, to the point
of being almost caramelised, and
served with some brilliant mustard
gnocchi. It was the kind of dish that
you hoped would never end. We
skipped Amadei chocolate mousse
with maple syrup, caramel foam and
banana sorbet, for it sounded a bit
overblown. Wines were exceptional
throughout: the sommelier was charming
and suggested unusual tipples such as rose-
scented Riesling and honeyed Marsanne,
which buoyed the meal up considerably.
Go with your stuffy parents-in-law. Go
with your boss if you plan to behave and
perhaps to go through the accounts. Heck,
go with an important chartered surveyor.
But don’t go if you’re craving atmosphere
and conviviality – in contrast to the food,
the place is just too austere to enjoy.
23
TASTING NOTES
ZOE STRIMPEL
A healthy way to
eat through the
summer months
F
EELING weighed down by picnic and bar-
beqcue fare? Tired of rich meals that leave
you feeling fat and ill? Well, as Heinz Beck,
the Rome-based German super-chef has
shown, it doesn’t have to be that way. Recently
launched at his London outpost, Apsleys: A Heinz
Beck Restaurant at the Lanesborough hotel, is a
healthy summer menu. It’s gourmet, yes, and
involves at least one glass of Krug. But Beck has
cut down on butter, flour and cream wherever
possible, and has chosen food combinations to
help insulin levels stay at reasonable levels. So,
bereft of excess starch and sugar, can it be any
good? The answer is yes. Krug is always good,
naturally, but so is wild red sea bream carpaccio
with exotic fruit vinaigrette; ricotta tortellini
with fava beans; yoghurt-cured veal with carrot
puree, and seasonal fruit with extra virgin olive
oil. In short, the summer menu is a really excel-
lent way to enjoy your food in the hot season and
still look good for the beach. Menu offered until
further notice. Seven courses £79 per person;
with accompanying wines £119. The
Lanesborough, Hyde Park Corner, SW1X 7TA. To
book, call 020 7333 7254.
l For those of you who aren’t feel-
ing overfed, there’s no better
way to celebrate sum-
mer outdoors than
this decadent
hamper from Coco-
maya (right).
Inside: sarnies
on spelt
bread, beauti-
ful cakes, bis-
cuits and
scones. £25
per head.
wwwcocomaya.
co.uk
 24 Lifestyle | TV& Games CITYA.M. 6 JULY 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm Match of the Day Live:
2010 FIFA World Cup
10pm BBC News
10.25pm Regional News
10.35pm CHOICE Tom Jones –
What Good Am I? Alan Yentob
meets Tom Jones
11.35pm Tom Jones at
Glastonbury: Weatherview
12.40am Sign Zone: Are You
Having a Laugh? TV and
Disability
1.40am Sign Zone: Grow Your Own
Drugs 2.10am Sign Zone: Put Your
Money Where Your Mouth Is 3.10am
Sign Zone: Raymond Blanc: Kitchen
Secrets 3.40am-6am BBC News
6pm Eggheads
6.30pm Antiques Road Trip
7pm Antiques Master
7.30pm University Challenge
8pm How to Beat Tough Times:
Money Watch: New series.
Sophie Raworth and Justin
Rowlatt provide financial advice.
9pm CHOICE Miranda: A
French evening class does not
go according to plan.
9.30pm Top Gear
10.30pm Newsnight: Weather
11.20pm Match of the Day:
2010 FIFA World Cup:
12.20am Stephen Fry on
Wagner
1.20am BBC News 3.40am-6am
Close
6pm London Tonight
6.30pm ITV News
6pm The Simpsons:
6.30pm Hollyoaks:
6pm Home and Away:
6.25pm Live from Studio Five:
TV PICK
7pm Emmerdale: Holly goes 7pm Channel 4 News Topical reports.
back to her old ways during a 7.55pm 4thought.tv: 7.30pm Michaela’s Zoo Babies:
night out. 8pm Gok’s Fashion Fix: Gok Five News Update
7.30pm CHOICE Children’s Wan revisits 43-year-old biker 8pm Build a New Life: Was It
Hospital: A 12-week-old girl and Mayor of Seaford Tracy Worth It? Five News at 9
Olivia has surgery to remove a Willis. 9pm CSI: Crime Scene
liver tumour. 9pm The Sex Education Show: Investigation:
8pm Piers Morgan On Am I Normal? The team gives 10pm CSI: Miami: Five News
9pm Taggart lessons in female anatomy. Update TOM JONES – WHAT GOOD AM I?
10pm ITV News at Ten 10pm Big Brother: 11pm CSI: NY: BBC1, 10.35PM
10.30pm London News 11.10pm The Good Wife: 11.55pm NCIS: Alan Yentob meets Tom Jones, whose
10.35pm World Cup Highlights: 12.10am The Poker Lounge 12.55am SuperCasino decades-long career has seen him sell
11.40pm October Road: 1.05am Big Brother: Live 3.55am 4.05am Nick’s Quest 4.30am House millions of albums and headline at
12.25am The Zone; ITV News KOTV Boxing Weekly 4.20am ITU Doctor 4.55am Rough Guide to some of the world’s biggest venues.
Headlines Triathlon World Cup Magazine Cities 5.10am The New Tomorrow
2.30am The Jeremy Kyle Show 5.15am The Grid 5.45am-6.10am 5.35am-6am Michaela’s Wild
3.25am-5.30am ITV Nightscreen MSA British Rallycross Challenge

SKY SPORTS 1 11.30pm Cage Fighting: The Championship Review 10pm AFL FIFA World Cup 3.25am Russell 11pm I Was Bitten 12am
SATELLITE & CABLE

4.30pm Live International
Twenty20 Cricket 8.30pm
Countdown to the 2010 Ryder
Cup 9pm European Seniors Tour
Golf 10pm World Cup Report
10.30pm Football’s Greatest 11pm
International Twenty20 Cricket
1am Soccer AM: The Best Bits
2am Football’s Greatest 2.30am
International Twenty20 Cricket
4.30am Soccer AM: The Best Bits
5.30am-6am Football’s Greatest
SKY SPORTS 2
7pm IRB Rugby World Sevens
10pm World Poker Tour 11pm
Football Asia 11.30pm Fishing
Gurus 12am Football’s Greatest
12.30am IRB Rugby World
Sevens 3.30am-4.30am World
Match Tour Sailing
SKY SPORTS 3
7pm Mountain Bike World
7.30pm Ladies European Tour
Golf 8.30pm World Match Tour
Sailing 9.30pm Cage Fighting
10pm Challenge Series Golf
10.30pm Golfing World
KnuckleUp Defiance event. 12am
Ladies European Tour Golf 1am
Countdown to the 2010 Ryder
Cup 1.30am European Seniors
Tour Golf 2.30am Challenge
Series Golf 3am Ladies European
Tour Golf 4am-4.30am
Countdown to the 2010 Ryder
Cup
BRITISH EUROSPORT
7pm Eurosport Flash 7.05pm
Soccer City Flash 7.15pm Boxing
9.30pm Cycling: Tour de France:
The third stage from Wanze to
Arenberg Porte du Hainaut.
10.30pm Planet Armstrong
10.35pm Eurosport Flash
10.40pm Soccer City 11.10pm
Eurosport Flash 11.15pm World
Touring Car Championship
11.45pm World Series by Renault
12.15am-12.45am Soccer City
ESPN
6.30pm AFL Review Show
7.30pm Basketball: FIBA World
Magazine 8pm NHRA Drag
Racing 9pm FIA GT1 World
Review Show: The latest round of
fixtures. 11pm South Africa
Nightly 11.30pm Baseball Tonight
12am ICC Cricket World 12.30am
Press Pass 2010 1am Ultimate
Fighting Championship 4am-5am
AFL Review Show
LIVING
7pm Four Weddings 8pm Britain’s
Next Top Model 9pm Mini Me:
Kids Who Have It All 10pm 16
and Pregnant 11pm Criminal
Minds 12am CSI: Crime Scene
Investigation 2am So You Think
You Can Dance 3am The Fresh
Prince of Bel-Air 3.50am Maury
4.40am Nothing to Declare
5.30am-6am Home Shopping
BBC THREE
7pm Snog, Marry, Avoid? 8pm
Don’t Tell the Bride 9pm The
Mighty Boosh 10pm Russell
Howard’s Good News 10.30pm
Mongrels 11pm Family Guy
11.45pm Bizarre ER 12.15am The
Mighty Boosh 1.15am Mongrels
1.45am Match of the Day: 2010
Howard’s Good News 3.55am Deadliest Catch 1am Bear Grylls:
Bizarre ER 4.25am-5.25am Don’t Born Survivor 2am Chris Barrie’s
Tell the Bride Massive Engines 3am World War
Two in HD Colour 3.50am Raging
E4 Planet 4.40am Days That Shook
7pm Hollyoaks 7.30pm Friends the World 5.30am-6am How
9pm Smallville 10pm The Ricky Does That Work?
MIRANDA
BBC2, 9PM
Gervais Show 10.35pm The
Cleveland Show 11pm King of the DISCOVERY HOME & In a bid to overcome her hang-ups,
Hill 12am-6am Big Brother: Live HEALTH Miranda joins an evening class to learn
7pm Babes in the Wood 8pm Jon French and takes a tango lesson, but
HISTORY and Kate Plus 8 9pm Transplant things do not go according to plan.
7pm How the Earth Was Made Stories 10pm Last Chance
8pm Britain’s Real Monarch 9pm Surgery 11pm Plastic Surgery
The Last Nazis 10pm Adolf 12am Transplant Stories 1am Last
Eichmann: The Secret Memoirs Chance Surgery 2am Plastic
11pm Auschwitz: The Man Who Surgery 3am Jon and Kate Plus 8
Told the World 12am Britain’s 4am Baby Tales 5am-6am Mum’s
Real Monarch 1am How the Earth the Word
Was Made 2am Alexander the
Great’s Mysterious Death 3am SKY1
Cities of the Underworld 4am- 7pm The Simpsons 8pm Ouch!
5am Decoding the Past Sextuplets 9pm House 11pm Fat
CHILDREN’S HOSPITAL
Pets, Fat Owners 12am Oops TV
DISCOVERY 1am The Real World: Key West ITV1, 7.30PM
8pm How Do They Do It? 1.50am Road Wars 4.20am Tim Following a course of chemotherapy,
8.30pm How It’s Made 9pm Man Gunn’s Guide to Style 5.10am- 12-week-old Olivia Dixon faces a
vs Fish with Matt Watson 6am Are You Smarter Than a 10 complex operation to remove a
10pm Surviving Disaster Year Old? cancerous liver tumour.

COFFEE BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk


QUICK CROSSWORD
   

SUDOKU KAKURO
12 35 6 17 13 32 7
10 20 4
26 3   
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 8 11
13 12 29 15
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 24 16 17
  
above or to the left of it. 11 22
You can only use the digits 1-9 45
  and you must not use the 13 14  
same digit twice in a block. 17 34 11 16 15
     The same digit may occur 45

  more than once in a row or

column, but it must be in a
16
9
5
17
9
   
5 22
  separate block.
6 14 16 8
45
     9 23 10
 

  ACROSS DOWN
1 Capital of the US 1 Celestial bodies (5)
 
     WORDWHEEL D A
state of Oregon (5)
3 Strong currents
of air (5)
2 Stretches or
draws out (9)
Using only the letters in the Wordwheel, you have 3 Mousse applied
  ten minutes to find as many words as possible,
U C 6 Protective garment (5) to the hair (3)
7 Long pointed rod used 4 Boy child (3)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters O as a weapon (5) 5 Very steep, almost

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
I L 10 Greatly desired (6,5)
13 Pompous or foolishly
vertical (5)
8 Stricken (9)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
S T grandiose (11) 9 Weight equivalent
15 Thin slice of potato to 14 pounds (5)
QUICK CROSSWORD 6 5 7 1 1 4

' 5 8 1 . 6 2 & . 6
1 3 4 7 8 2 5 6 9 SUDOKU         
fried in deep fat (5)
18 Kitchen range (5)
11 Belonging to you
and me (3)
2 7 8 9 6 7         
5 2 + 2 $
< ( 7 , 3 ( 1 & , / 5 9 8 4 9 2
         19 Played (with) (5) 12 Large flightless bird (3)
1 2 1 3 7 6
$ 8 6 $ ( . 9
         20 Britain’s only native 13 Edging of small loops,
' 2 5 , & 3 5 $ 7 ( 8 4 9 3 2 5 7 6 1
         venomous snake (5) as on lace (5)
% ( 4 8 , ( 7
1 $ 8 5 8 6 & , 2 1
9 5
2 3
7 9
1
9 8
3 1 6
WORDWHEEL         
14 Cut the wool from (5)
$ / $ + 2 ( (         
& / ( 5 , & 8 / 1 $ 9 6 4 8 4 8 The nine-letter word 16 Extremely cold (3)
7 6 8 4 2 3 1 5 9         
+ 1 1 1 7
was VENTURING          17 Seedcase (3)
2 & 7 ( 7 6 7 $ 6 + 3 1 2 1 5 9
 Sport
Ohuruogu: I may miss Euros
▲
ATHLETICS
BY JON COUCH
OLYMPIC champion Christine
Ohuruogu has told City.A.M she is like-
ly to miss next month’s European
Championships in Barcelona.
Ohuruogu, 26, was absent from the
400m startline at last weekend’s Aviva
UK Championships in Birmingham
after picking up an untimely quadri-
cep muscle injury in training.
She was initially upbeat about the
prognosis but further medical tests
have not been so encouraging. But
after helping Mayor Boris Johnson
light the flame at the Balfour Beatty
London Youth Games, an event where
she cut her sporting teeth during her
schooldays in Newham, she admitted
time was running out.
“It’s going to be really tight to
make Barcelona,” she admitted.“The
doctors are being cautious and saying
I won’t make it but I’m stubborn and I
will do everything I can to push the
rehab. The timing is off but injuries
Rose has blossomed into I GET
Open favourite in a month THREE £10
BETS FREE.
ON THE GREENS WITH
SAM TORRANCE
J
USTIN ROSE has gone from
Open outcast to bookies’
favourite in the space of four
days. What a month it’s been
for the young Englishman.
Victory in the AT&T National
only just secured Justin’s place at St
Andrews next week and now, all of
a sudden, he’s become a major con-
tender as the world’s most in-form
player right now.
After a wait of 161 tournaments
Justin’s relishing a
St Andrews return
after PGA triumph
GOLF
▲
JUSTIN ROSE says he is relishing
next week’s Open Championship at
St Andrews after his US success at
the weekend.
The Florida-based Englishman
only booked his place in the show-
piece event at the Home of Golf
after his triumph at the AT&T
National – his second PGA Tour vic-
tory in four weeks.
Rose rocketed to stardom when
“THE GUY IS JUST 25
AN ANIMAL”
JOHN MCENROE TIPS WIMBLEDON
CHAMPION RAFAEL NADAL FOR A
GRAND SLAM: P26
Results
CRICKET
INTERNATIONAL TWENTY20 SERIES (Edgbaston):
Pakistan 167-8 (Umar Umar Akmal 64) v Australia 144.
Pakistan beat Australia by 23 runs.
FRIENDS PROVIDENT T20 - NORTH DIVISION (Old
Trafford): Lancashire 170-5 (T C Smith 92no) v
are just part and parcel of what we do
Worcestershire 124 (S T Jayasuriya 54). Lancashire (2pts)
as athletes. beat Worcestershire by 46 runs.
“They are frustrating and upsetting LV COUNTY CH’SHIP DIV ONE: (Chelmsford); Essex 154 v
but no-one is going to take any risks Nottinghamshire126-5 (34.0 overs). (The Rose Bowl); Kent
251 (J L Denly 67, S A Northeast 50, D G Cork 5-50) v
because it’s a long season with the Hampshire51-2 (13.0 overs). (Headingley Carnegie);
Commonwealth Games in October. Yorkshire 325-4 (96.0 overs) (A Lyth 84, A McGrath 57). v
“I just need to find the right bal- Warwickshire. DIV TWO: (Northampton); Northamptonshire
ance between training sensibly and 355-5 (96.0 overs) (D J G Sales 127, N Boje 98, S D Peters
76). v Glamorgan.
going overboard and that has often TOUR MATCH (Lord's): Bangladesh 301-7 (Jahurul Jahurul
been my problem.” Islam 88, Imrul Kayes 77) v Middlesex 160 (O A Shah 61).
More than 6,000 youngsters from across Bangladesh beat Middlesex by 141 runs.
London’s 33 boroughs will take part in this CYCLING
weekend’s Balfour Beatty London Youth TOUR DE FRANCE (Spa, Belgium)—LLeading final positions
Games, making it the largest youth sports after Stage 2 (Brussels - Spa, 201km): 1 Sylvain Chavanel (Fra)
event in Europe. Quick Step 4hrs 40mins 48secs, 2 Maxime Bouet (Fra) AG2R
La Mondiale at 03.56, 3 Fabian Wegmann (Ger) Team Milram at
same time, 4 Robbie McEwen (Aus) Team Katusha at same
CHRISTINE OHURUOGU | RECORD time, 5 Christian Knees (Ger) Team Milram at same time.
General classification: 1 Sylvain Chavanel (Fra) Quick Step 10hrs
01min 25secs, 2 Fabian Cancellara (Swi) Team Saxo Bank at
Major titles: 2006 Commonweath 02.57, 3 Tony Martin (Ger) Team HTC- Columbia at 03.07.
Games – Gold; 2007 World
Championship – Gold; 2008 Olympic TODAY’S DIARY
Games – Gold World Cup Semi-Final
Highest world ranking: 200m – 11th Uruguay v Holland (7.30) ........................................................................................
(2007); 400m – 2nd (2007-08)
Personal best: 100m – 11.35secs; 200m –
22.85secs; 400m – 49.61secs SPORTS EDITOR JON COUCH
Ohuruogu has picked up a muscle injury in training. Picture: ACTION IMAGES email sport@cityam.com
for his first PGA Tour win, the Wimbledon and Miguel Angel
Memorial Tournament, last Jimenez claiming the French Open
month, Justin wasted no time in in Paris after a three-way play-off.
claiming a second with a remark- At 46, Miguel beats my record as
able display of mental strength. the French Open’s oldest winner
Just last week, he threw away a and also becomes the eighth oldest EXCLUSIVE TO NEW TELEPHONE/ONLINE CUSTOMERS*
three-shot lead in the final round European Tour winner of all time. Simply stake £10 today and we will give you
of the Travelers Championship, but It’s great to see him still playing 3x£10 Free Bets. Quote WORLD30
showed nerves of steel in ensuring so well, he’s a great character and
history wouldn’t repeat itself, hold- always a popular winner.
ing off Ryan Moore with seven While the big guns, such as Phil
straight pars in the run-in. Mickelson head for Loch Lomond URUGUAY
URUGUAY v H
HOLLAND
OLLAND
With that in mind, this was the for the Scottish Open this weekend,
best win of his career to date, but this Scot is off to Holland for the
with character like that, who’s to Van Lanschot Senior Open. Tonight,
o kick-off 7.30pm, live on ITV
say he won’t eclipse that with a win With the British Open coming 11/2 URUGUA
AY 12/5 DRA
AW HOLLAND 8/13
at St Andrews next weekend. up, this is a big tournament for me,
It was also a great weekend for and there are a few things I need to CORRECT SCORE DOUBLE RESULT
RESULLT FIRST GO
GOALSCORER
ALSCORER
Spain with the football team reach- put right.
ing the Uruguay Score Holland Uruguay Uruguay 10/1 Van Persie 4/1
World Cup 9/1 1-0 4/1 Uruguay Draw 18/1 Robben 11/2
semi-finals, 25/1 2-0 11/2 Uruguay Holland 28/1 Forlan 13/2
Rafael Nadal 16/1 2-1 15/2
winning Draw Uruguay 19/2 Sneijder 13/2
66/1 3-0 10/1 Kuyt 15/2
50/1 3-1 14/1 Draw Draw 18/5
Abreu 10/1
66/1 3-2 33/1 Draw Holland 3/1
7/1
6/1
0-0
1-1
7/1
6/1
Holland
Holland
Uruguay
Draw
45/1
16/1
S. Fernandez 14/1
Van Bommel 25/1
No G/scorer 7/1
20/1 2-2
Other scores on request.
20/1 Holland Holland
Bets void if match not completed.
8/5 EACH WAY ONE-THIRD THE ODDS
A PLACE 1, 2, 3, 4, 5. Own goals
don’t count. Others on request.
All football prices quoted are phone/net, different odds may apply in retail. Extra time does not count.
finishing in a tie for fourth as a 19- was probably the performance that
year-old amateur at the 1997 Open got me into the Walker Cup.
at Birkdale. “And I finished second at the
Despite his nine titles, Rose has Dunhill Links Championship in ‘07
not always had it easy as a profes- – it’s a place I love. How can you not
sional. But after rediscovering his love St Andrews?
best form of late, the 29-year-old “You’ve just got to stand on the
can’t wait to take on the famous
links of St Andrews.
first tee there and you feel like
you’re part of something special. 0800 44 40 40 williamhill.com
“I’ve got very fond memories,” he “Winning on the PGA Tour is a
*3x Free £10 bets are win singles and will be added to your account on settlement of first bet. Free Bet must be on a different event to the initial stake. Free Bet
reflected after his one-shot victory stepping stone to winning major stake not included in any winnings/returns, valid for 7 days. Correct promo code must be used. All prices subject to fluctuation. William Hill rules apply.
in Pennsylvania. “I won the Links championships. It prepares you. It’s Over 18s only. Prices correct as at 3.00pm yesterday. FOR ADVICE & INFORMATTIION VISIT W WWWW
W W.GAMBLEEAAWAARRE.CO.UK
Trophy as an amateur there, which great practice.”

Home. Whoever you play for.
Make Yahoo! your home for football.
yahoo.co.uk
SPORT | IN BRIEF
Armstrong fall sparks protest
CYCLING: Seven-time champion Lance
Armstrong was among a number of high-
profile riders to fall in a dramatic second
stage of the Tour de France.
Armstrong tumbled along with last
year’s top two riders, Alberto Contador
and Andy Schlek, plus British hope
Bradley Wiggins, as the slick Belgian
roads from Brussels to Spa took their toll,
prompting a riders’ go-slow in protest.
Frenchman Sylvain Chavanel won to
take over the leader’s yellow jersey.
Westwood in Open fitness race
GOLF: World No3 Lee Westwood is
struggling to be fit for next week’s Open
Championship at St Andrews.
The 37-year-old pulled out of this
week’s JP McManus pro-am tournament
in Ireland after complaining of a calf
strain during the French Open at the
weekend.
“He’s been told by his doctor to have
complete rest this week,” Westwood’s
management team said.
Lyth first to 1,000-run landmark
CRICKET: Yorkshire opener Adam Lyth
became the first batsman to pass 1,000
runs this season as the Tykes piled on a
big score in their County Championship
match with Warwickshire at Headingley.
Lyth passed the 18 he needed to reach
the landmark before going onto score 84
as Yorkshire reached 325-4 at the close.
Meanwhile, Bangladesh warmed up
for their one-day series with England
after bowling out Middlesex for 150 at
Lord’s, having earlier amassed 301-7.
Akmal steers Pakistan win
CRICKET: Umar Akmal struck 64 from
31 balls to lead Pakistan to a 23-run vic-
tory over Australia in the first of a two-
match Twenty20 series at Edgbaston.
Akmal helped the Pakistanis to 167-8,
while paceman Shaun Tait took 2-25.
David Warner (41) and David Hussey
(34) shared a 52-run third-wicket stand,
but three wickets apiece for Mohammad
Aamer and Saeed Ajmal helped dis-
missed the Australians for 144.
DAVID’S FAVOURITES
Sport
MLSsoccer.com
Yahoo! Mail
Flickr
davidbeckham.com
News
Hamilton and Button tension
could boil over, warns Hill
FORMULA 1
2010
BY JON COUCH
THE friendly rivalry between McLaren
team-mates Lewis Hamilton and
Jenson Button could “boil over” at
this weekend’s British Grand Prix,
according to Damon Hill.
Hamilton and Button stand first
and second in the drivers’ champi-
onship with two wins apiece and will
be desperate for victory in front of
their home crowd at Silverstone.
And Hill, president of the British
Racing Drivers’ Club, believes it’s only
a matter of time before the pressure
26 Sport
Wimbledon champion Nadal is yet to reign supreme at the US Open.
Nadal backed
for US glory
s
TENNIS
BY FRANK DALLERES
LEGEND John McEnroe believes
Rafael Nadal is ready to complete a
career Grand Slam by scooping his
first US Open.
Nadal claimed his second
Wimbledon title on Sunday, to add to
his one Australian Open title and five
triumphs at the French Open.
He is yet to reign at Flushing
Meadows, but having recovered from
a serious injury to regain his No1
world ranking, McEnroe reckons this
could be his year.
“Nadal wants to win the US Open
so badly. It would be hard not to pick
him at this time even though he’s
never won it,” said the American, who
won the tournament four times.
“The guy is just an animal. He’s
mentally and physically incredible
and he can definitely do it if he’s in
this shape. The conditions in New
York don’t suit Nadal so well and he
needs to make his body hold up. So I
think after Wimbledon he is going to
take some time off and get his knees
recovered and then maybe not play
takes its toll on the Brits as the title
race continues to hot up.
“It’s just been on simmer so far and
it will start to boil over,” said Hill, the
1996 champion. “Between the two
British drivers in possibly the best car
you will have a very close and fascinat-
ing battle. Jenson will not be letting
Lewis get away with anything. Your
closest, most significant competitor, is
your team-mate and when you’ve got
a team-mate as good as Jenson then
it’s not a foregone conclusion.
“This could be the start of the rest
of the season. Traditionally Silverstone
is smack in the middle of the summer,
smack in the middle of the season,
the preliminaries are over and from
CITYA.M. 6 JULY 2010
Picture: PA
too many matches before the Open.”
McEnroe also expects Andy Murray
to build on his encouraging
Wimbledon by flourishing at
Flushing Meadows, where the action
gets underway next month.
“I thought it was a little soon for
Murray at Wimbledon because he
hasn’t been playing with much confi-
dence this year, but he likes the hard
courts a lot better so he’ll be playing
well at the US Open,” he added.
“Murray played well at Wimbledon. I
feel like he did a lot of good things in
his match against Nadal and it’s just a
couple of points here and there, like
the one at 6-5 in the tie break.”
Meanwhile, Roger Federer has
slipped out of the top two for the first
time since November 2003.
RANKINGS | MEN’S TOP FIVE
1. Rafael Nadal (Spa) -
2. Novak Djokovic (Ser) s1
3. Roger Federer (Swi) t1
4. Andy Murray (GB) -
5. Robin Soderling (Swe) s1
now on the clock is definitely ticking.
There is only room for one guy.”
McLaren have had their share of
tumultuous driver relationships in
the past, notably the famous rift
between Alain Prost and Ayrton Senna
in the 1980s and the battle between
Hamilton and Fernando Alonso,
which forced Alonso to quit in 2007.
STANDINGS | DRIVERS’ CHAMPIONSHIP
1. Lewis Hamilton (McLaren) 127pts
2. Jenson Button (McLaren) 121
3. Sebastian Vettel (Red Bull) 115
4. Mark Webber (Red Bull) 103
5. Fernando Alonso (Ferrari) 98
CITYA.M. 6 JULY 2010 Sport 27

Linesman sad
at goal gaffe

Exclusive football content on Yahoo!

From a man who knows a bit about football.

Lampard was denied a first World Cup goal by Espinosa. Picture: PA

“It was only when we saw the TV

WORLD CUP
2010
BY FRANK DALLERES
THE URUGUAYAN linesman who
denied Frank Lampard a legitimate
goal against Germany has told
England fans: Life goes on.
Mauricio Espinosa infamously
failed to notice that Lampard’s strike
had bounced well over the line dur-
ing England’s 4-1 second round
defeat.
The official admits he was wrong-
footed by the pace of the shot, which
would have brought Fabio Capello’s
men back into the game at 2-2.
But Espinosa does not appear
unduly concerned about the conse-
quences of his error – one of the
worst in the history of the World Cup.
“It was a very fast shot that I did
not see properly, even though I was
located in the right place,” he said.
“We didn’t see a replay in the dress-
ing room at half-time but you could
sense what had happened.
that we realised what happened.
“I feel quite sad about it because we
had prepared for such a long time for
the World Cup.
“It could have happened to anyone,
unfortunately it was us. You just have
to accept it. Life goes on.”
Espinosa’s words will provide little
comfort to Lampard, who has never
scored in the World Cup finals’ and,
at 32, looks likely to be overlooked for
the next tournament in Brazil.
The Chelsea man appeared to have
put England firmly back into con-
tention after they had fallen two
goals behind to their old rivals in
Bloemfontein last month.
So controversial was the incident
that it forced Fifa president Sepp
Blatter into a U-turn over the intro-
duction of goal-line technology.
The world governing body has
always firmly opposed the use of sen-
sors of video technology but Blatter
Make Yahoo! your home for football.
said the matter would be debated by yahoo.co.uk
the International Football
Association Board this month.

Holland are still entertainers, WORLD CUP NEWS | IN BRIEF

Torres unsure of starting place The Super Eagles had been suspended

insists coach Van Marwijk

URUGUAY
HOLLAND
Tonight, ITV1, ko 7.30pm
WORLD CUP 2010
BY FRANK DALLERES
HOLLAND coach Bert van Marwijk
insists his team have not renounced
their entertaining ways just because
they have learned how to defend.
Marwijk has transformed the
Dutch from freewheeling under-
achievers into a ruthless results
machine that now stands just two
matches from a historic first World
Cup triumph. But ahead of tonight’s
semi-final with Uruguay in Cape
Town, the former Feyenoord manager
stressed that he had not stripped the
side of all its trademark flair.
“When I took over this job, my first
goal was to teach the team to defend
better,” he said. “Because we haven’t
scored that many goals so far in this
World Cup, people see it differently
as they only associate attractive foot-
ball with lots of goals. But we still
play attractive football.”
Van Marwijk has paid particular
attention to refocusing his players
after their shock quarter-final victory
over Brazil. “We haven’t succeeded in
our mission yet,” he added. “The tar-
get, to be crowned champions, is not
yet achieved.”
Uruguay coach Oscar Tabarez,
meanwhile, has identified Arjen
Robben as Holland’s biggest threat,
although not all of his players seem
convinced his plans to nullify the
winger will work.
Sebastian Abreu, who scored the
winning penalty in their shoot-out
win over Ghana, said: “We know how
to do it but whether the execution
actually comes off is another thing.”
LIVERPOOL striker Fernando Torres
admits he is not sure of his place in
Spain’s starting line-up for tomorrow’s
crunch semi-final with Germany.
Torres has so far failed to find the net
in a poor World Cup by his own stan-
dards, and is tipped by some to be
replaced by either Cesc Fabregas or
David Silva in Cape Town.
“In this squad, no one has a guaran-
teed spot. This squad is very competitive
and anyone can be a starter,” the £70m-
rated hitman admitted.
“I have to work hard during the week
to be in the starting line-up but if I don’t
get to start, then I don’t start and I will
support the team from outside the pitch.”
Nigeria ban overturned
THE Nigerian government yesterday
backed down and rescinded their deci-
sion to ban the national team from com-
petition following their poor World Cup
campaign.
for two years following their disappoint-
ing showing in South Africa, sparking a
furious response from Fifa.
They threatened serious ramifications
and just an hour before Fifa’s imposed
5pm deadline to reverse the decision, the
Nigerian government caved in.
Maradona looks set to quit
DIEGO MARADONA last night hinted he
may be set to quit as Argentina’s national
team coach following their World Cup
defeat by Germany.
Maradona has received several mes-
sages of support from adoring fans since
admitting he was contemplating his
future following Saturday’s 4-0 loss.
But it seems the former playing legend
has already made up his mind to call it a
day. “It is done my cycle has ended,” he
said.
“I have given everything, now I will
spend time with my family – but I am
not depressed.”
 WIMBLEDON CHAMPION
WORLD NUMBER 1
BACK IN LONDON

21-28 NOVEMBER The O2 LONDON

GET YOUR TICKETS TODAY
www.BarclaysATPWorldTourFinals.com

FOR CORPORATE HOSPITALITY, PLEASE CONTACT IMG ON 020 8233 5888 OR ATPTennis@imgworld.com. Follow the stars on their journey to compete at
the 2010 ATP World Tour season finale on The players shown are for illustrative purposes only. Qualification and participation subject to ATP rules.