PREMIUM

TICKETS
AVAILABLE

BUSINESS WITH PERSONALITY WickedTheMusical.co.uk

GERMANY RUN IS OVER AS GLOOM FOR

OSBORNE
SPAIN REIGN SUPREME IMF CUTS UK GDP
FORECAST AS
DUTCH NOW AWAIT IN FINAL P26 BUDGET HITS P2
Issue 1,172 Thursday 8 July 2010 www.cityam.com FREE

BONUS RULES RISK Amazon

set to sell
EUROPEAN EXODUS groceries

▲
RETAIL
BY STEVE DINNEEN
REGULATION
▲

BY OLIVER SHAH OCADO’S £1.1bn float was dealt

BANKERS warned of a talent exodus
from Europe yesterday after lawmak-
ers in Strasbourg voted to enforce the
world’s toughest regime on bonuses
in the wake of the financial crisis.
A ruckus is brewing between insti-
tutions, who view the crackdown as a
short-term populist manoeuvre, and
European politicians, who argue
lenders were guilty of “obscene” risk
taking in the run-up to 2008 and
should be forced to mend their ways.
The European Parliament rubber-
stamped a law capping the upfront
cash portion of senior bankers’ bonus-
es at 30 per cent, or 20 per cent for
particularly large deals. At least half
of a reward will have to be paid in a
mix of contingent capital, which can
be clawed back if a bank’s perform-
ance dips, and shares. Between 40 and
60 per cent of a bonus will have to be
deferred over three to five years.
The rules will apply to London’s
thriving hedge fund community as
well as its banks. To ensure no asset
managers escape, the pay clampdown
will be replicated in another paper
specifically targeting hedge funds,
the Alternative Investment Fund
Managers Directive.
Referring to the disgraced former
Royal Bank of Scotland boss, Liberal
Democrat MEP Sharon Bowles said
there would be “no more Fred
Goodwins” as performance-related
segments of pension pots would also
EU financial services chief Michel Barnier said the new rules showed “there will be no return to business as usual”
have to be handed out in contingent
capital and shares.
Bowles risked inflaming tempers in
London by telling City A.M.: “Europe
has dared and now the US and the
rest of the world will dare too. If
bankers want to live in our society
they have to play by our rules. If
they’re so greedy [they decide to
leave], we’re better off without them.”
Angela Knight of the British
Bankers’ Association described
Bowles’ comments as “wholly inap-
propriate”. “So many jobs hang on
these businesses, which can operate
out of any country,” she said. “If you
get a lot of ordinary people losing
their jobs as a result of this I wonder
how popular the policy will be then?”
Under the terms sealed yesterday,
banks across Europe will additionally
be forced to hold up to four times
more capital against their propri-
etary trading positions. Bowles
Picture: REUTERS
described the step as a “mini-Volcker
rule” because it would make trading
much more expensive for lenders.
Arlene McCarthy, the Labour MEP,
said it would be “obscene” to allow
bonus culture to continue unchecked.
Separately, the European
Parliament decided three super-
watchdogs would all be based in
Frankfurt, rather than having one in
London as previously agreed.
ALLISTER HEATH: P2 , MORE: P3, P18
another blow yesterday when internet
giant Amazon launched a competing
grocery delivery business.
Amazon has long toyed with the
idea of branching into food delivery,
and already does so in the US and
Germany, but the timing of the deci-
sion heaps pressure on Ocado.
Analysts have already questioned the
value of its IPO, mainly due to Ocado’s
reliance on supplier Waitrose, which
has a competing delivery service.
Amazon said it is “early days” and it
is unlikely to immediately break into
the “big four” grocery delivery firms –
Tesco, Asda, Sainsbury’s and Ocado –
as many of its items are currently only
sold in bulk.
However, its service is a warning
shot to competitors that the home
delivery market is hotting up, espe-
cially as Amazon will sell 22,000 prod-
ucts, compared to Ocado’s 20,000.
Amazon’s grocery division is set to
offer cash-and-carry style goods, such
as a £120 whole lamb carcass, and dif-
fers from Ocado in that third party
suppliers will deliver items such as
fresh and chilled food.
Verdict analyst Joe Robinson said:
“Ocado has a significant competitive
advantage over Amazon, owing large-
ly to its innovative and efficient fulfil-
ment operations, customer loyalty
and quality credentials.”
Ocado’s roadshow began on
Tuesday, as it called on investors to
snap up £200m worth of new shares.

FTSE 100 ▲5,014.82 +49.82 DOW ▲10,018.28 +274.66 NASDAQ ▲2,159.47 +65.59 £/$ 1.52 unc £/¤ 1.20 unc ¤/$ 1.26 unc Certified Distribution
3/05/10 - 30/05/10 is 106,097

WINNER! WINNER!
MOST BEST
POPULAR WEST END
SHOW SHOW 0844 826 8000 WickedTheMusical.co.uk
Laurence Olivier Whatsonstage.com
©WLPL

Awards 2010 Awards 2010 APOLLO VICTORIA THEATRE SW1V 1LG

 2 News
London is losing out from EU diktats
EDITOR’S LETTER
ALLISTER HEATH
SO there you are. The European
Parliament has just voted to locate the
planned new EU agencies to regulate
banks, markets and insurers in
Frankfurt, in a massive blow to
London. This provision may yet be
eliminated from the final directive
but is an ominous sign. What won’t
change are the new rules on bonuses:
these will limit the share of awards
that can be paid out immediately and
promote deferred, equity-based com-
pensation. London’s banks already do
this but investment firms will also be
forced to comply; future legislation
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
ENERGY-FOCUSED HEDGE FUNDS FEEL
HEAT OF MARKET VOLATILITY
Hedge funds focused on energy mar-
kets have suffered a rocky start to the
year, hit by volatile commodity prices
and the Gulf of Mexico oil spill disas-
ter. Many funds have been left nurs-
ing double-digit percentage losses
over the first six months of the year.
The average energy commodity fund
has lost two per cent since the begin-
ning of the year.
CITY HEADHUNTER SUES NOMURA
A City headhunter is suing Nomura,
the investment bank, over fees that it
claims remain unpaid relating to its
efforts in hiring hundreds of bankers
from Lehman at the height of the
credit crunch. James Hogarth, who
co-founded Hogarth Davies and Lloyd,
told the High Court the collapse of
Lehman precipitated “the biggest
headhunting exercise ever known”.
will ensure hedge funds are also hit.
The trouble is that this won’t really
achieve much (other than gradually
chasing away activity and jobs to
countries outside the EU). Some finan-
ciers were incentivised according to
excessively short-term targets. But
Bear Sterns and Lehman had been dili-
gent in promoting employee share
ownership – around 30 per cent of the
total equity in each case – in a bid to
encourage long-termism. It wasn’t a
great success. Even the FSA’s Lord
Turner said as much in his Report:
“Many top managers of financial
firms which suffered huge losses dur-
ing the financial crisis (and, in the
case of Lehman, complete failure),
were very large shareholders in their
firms, and in several cases had volun-
tarily chosen to invest large propor-
tions of cash bonuses in their firms’
equity. But these large stakes in the
long-term profitability and stability of
their firms did not seem to result in
any greater awareness of or concerns
about the risks the firms were run-
IMF cuts UK
GDP forecast
ECONOMY
▲
BY OLIVER SHAH
THE International Monetary Fund
(IMF) has slashed growth expecta-
tions for the UK in its first economic
outlook since May’s general election.
UK GDP will expand by 1.2 per cent
this year, the IMF said, 0.1 of a per-
centage point slower than its forecast
in April. Growth for next year was
marked down 0.4 of a percentage
point to 2.1 per cent.
The UK and France were the only
Eurozone nations to have their
prospects downgraded in 2010.
America, in contrast, was upgraded
to 3.3 per cent GDP growth this year
on the back of increasing private sec-
tor demand in the first half. Asian
economies are expected to power
ahead, fuelled by strong exports and
burgeoning domestic consumption.
PSYCHOMETRIC TESTS FOR TOP STAFF
AT ITV
ITV’s senior managers will be subject-
ed to psychometric testing as its new
chairman and chief executive exert
stronger controls over the broadcast-
er at the beginning of a five-year turn-
around plan. A person close to ITV
said: “This is not about people having
to reapply for their own jobs, it is
about identifying the strengths and
weaknesses in people so they can
improve their performance as mem-
bers of a team.”
CRH WARNS OF “SEA CHANGE” IN OUT-
LOOK
CRH shares dropped to a 12-month
low after the Irish building materials
group warned that its earnings
would be lower than expected. The
Dublin-based group said that the
stammering recovery in the world’s
construction markets would cause
earnings before interest, tax, depreci-
ation and amortisation to decline by
20 per cent.
ning.” And at the Lord Mayor’s ban-
quet last year he said: “It is possible to
overstate the importance of bonus
structures in the origins of the crisis:
they were, I believe, much less impor-
tant than huge failures in capital ade-
quacy and liquidity regulation.”
The bankers destroyed their banks
because they made errors and faulty
judgments on a colossal scale (for
which they deserved to be wiped out)
– not because they were deliberately
betting the bank in a bid to make a
quick buck. They were mistaken, not
evil or (in the main) deliberately reck-
less. Consider the subsidiary of
American International Group
responsible for using credit default
swaps to insure sub-prime mortgages.
Traders had to defer around half of
their pay into company shares: their
interests were aligned with that of the
firm, the kind of “good practice” the
EU is promoting. I have yet to find any
convincing academic evidence that
bonuses played anything other than a
tangential role (at worst) in the crisis.
In its world economic outlook pub-
lished this morning, the IMF said
developed economies should not
inject further fiscal stimulus and
should begin cutting spending in
earnest next year.
It added: “Downside risks have
risen sharply. In the near term, the
main risk is an escalation of financial
stress and contagion, prompted by
rising concern over sovereign risk.
This could lead to additional increas-
es in funding costs and weaker bank
balance sheets and hence to tighter
lending conditions.”
Chancellor George
Osborne faces weaker
growth prospects
since the election of
the coalition in May
HARDLINER HAS EYE ON PRU CHAIR
Leading shareholders in the
Prudential were considering last
night whether to back Sir Richard
Lapthorne, the controversial Cable &
Wireless boss, as the insurer’s next
chairman. Sir Richard, who has held
discussions with investors over the
past three weeks, wants the job if he
gets sufficient support.
INTERNET PROVIDERS FOR 10M USERS
CHALLENGE BLOCK ON FILE-SHARING
Britain’s largest internet service
providers (ISPs) are to mount a legal
challenge to controversial new laws
that will remove those caught repeat-
edly sharing music and films from
the internet. BT and TalkTalk, which
have nearly 10 million broadband
customers between them, are threat-
ening to derail the nation’s digital
plans after beginning a High Court
attempt for a judicial review.
The massive power grab by Brussels
is a scandal – but Britain’s lame
response has been even more depress-
ing. This is in stark contrast to
Germany. Five eminent academics
have filed a legal complaint against
the €60bn Eurozone credit facility and
the €440bn Eurozone aid package. The
complaint plausibly identifies several
infractions against the German
Constitution and EU Treaties.
It is excellent news, therefore, that
Bill Cash, the Tory MP for Stone and
veteran Eurorealist, has been elected
as the new chairman of the House of
Commons’ European Scrutiny
Committee. His legal training – he is a
distinguished constitutional scholar –
will come in handy while analysing
the deluge of new rules emanating
from Brussels. What we also need –
and perhaps Cash could play a role in
commissioning this – is a proper cost-
benefit analysis of what Britain gains
(or loses) from EU membership. We
may be shocked by the findings.
allister.heath@cityam.com
Commissioner Joaquin Almunia has received complaints about Google Picture: REUTERS
EC looks at Google probe
TECHNOLOGY
▲
BY OLIVER SHAH
THE European Commission (EC) hint-
ed it could launch a formal anti-trust
probe into Google’s internet search
dominance yesterday, following three
complaints from rivals in February.
Joaquin Almunia, Brussels’ leading
competition official, told a confer-
ence in London he was looking into
“some allegations of anti-competitive
conduct in relation to search”. “The
work is at an early stage, but given
MILTON FRIEDMAN GOT IT WRONG ON
PROFIT, HSBC CHAIRMAN SAYS
American free market economics
guru Milton Friedman was wrong to
assert that companies should focus on
shareholder value above all other con-
siderations, HSBC chairman Stephen
Green has declared. “Of course you
need a profit,” he said, “but it is a by-
product, a hallmark of success. It is
not the be all and end all. It is not the
raision d’etre of business.”
WILLEM BUITER: DOUBLE-DIP RECES-
SION WON’T HAPPEN DESPITE MARKET
Willem Buiter, chief economist at
Citigroup and a former Bank of
England policy-maker, said he does
not believe there will be a global dou-
ble-dip recession. He said that the
process of fiscal tightening planned in
many countries was necessary but
unlikely to tip economies back into
contraction.
CITYA.M. 8 JULY 2010
NEWS | IN BRIEF
Tesco raises £950m from sales
Tesco, Britain’s largest supermarket
chain, has raised £950m after agreeing
a sale-and-leaseback arrangement for
41 of its stores. The company said the
move was part of its long-term plan to
“release value” from its UK real estate
portfolio. The deal is structured as a
50/50 joint venture with the trustees of
Tesco’s pension fund, and is being
financed with bonds issued by funding
vehicle Tesco Property Finance 3.
US eyes HSBC offshore accounts
The US government has launched a
criminal investigation into whether
HSBC’s clients are dodging tax by put-
ting their funds in undeclared deposit
accounts in Singapore and India, follow-
ing the successful prosecution of UBS in
Switzerland last year. On 21 June, Kevin
Downing, a senior litigator at the US
Justice Department, wrote to HSBC
clients informing them they were the
focus of an official probe. Quantities of
money and numbers of accounts are not
known. Precedent is on American
authorities’ side, after UBS paid a fine of
$780m (£515m) and handed over
details of 250 client accounts.
the importance of search to a compet-
itive online marketplace, I am look-
ing at the allegations very carefully,”
he said.
Google enjoys a 95 per cent share
of the European search market, but
Almunia said the commission was
concerned with questions such as
barriers to entry for similar compa-
nies, how easily a consumer can
switch from one service to another,
and whether an established player
uses its dominance to stop others
advancing in related markets.
JURY’S FINAL ANSWER: DISNEY OWES
MILLIONAIRE DAMAGES
A California jury ruled against Walt
Disney yesterday in a lawsuit brought
by Celador International over royal-
ties for the hit game show “Who
Wants to Be a Millionaire”. Celador,
which sold the US rights to
“Millionaire” to Disney’s ABC net-
work in 1999 after a successful run in
the UK, alleged Disney units ABC and
Buena Vista Television concealed
profits earned on the show to avoid
paying licencing fees “through a com-
plex web of self-dealing transactions”.
HEXAGON TO BUY INTEGRAPH
Intergraph, an engineering and soft-
ware firm, agreed to be acquired by
Swedish company Hexagon in a cash
deal worth $2.13bn. Intergraph,
which is based in Huntsville,
Alabama, supplies computer-aided
design and software to a industries.
CITYA.M. 8 JULY 2010 News 3

ANALYST VIEWS: HOW BADLY WILL THE EU’S THE DIRECTIVE EXPLAINED
BONUS CRACKDOWN HURT THE REGION?
Interviews by Oliver Shah Q. WHAT IS THE LAW CALLED, AND
WHAT ARE ITS KEY POINTS?
and contingent capital, and at least
40 per cent of a bonus must be
the Bank of England
in two years’ time,
Q&A
ANGELA KNIGHT | BRITISH BANKERS’ ASSOCIATION A. The European Union measures
on bonuses are contained with-
in the third draft of the Capital
deferred for three to five years, rising
to 60 per cent for a large bonus. The
curbs will apply to senior managers
will be obliged to pun-
ish offenders. A typical deterrent
would be forcing an institution to

“
Requirements Directive. As well as and people designated as risk takers. hold more capital on its balance
curbing pay practices at banks and sheet.
Europe is now talking in a way which is not reflected
by any other of the major financial centres. The question
hedge funds, the law requires higher
capital buffers to be held against pro- Q. WHY ARE HEDGE FUNDS
INCLUDED IN THE PAY CURBS?
Q. WHAT ARE THE IMPLICATIONS
Europe has to ask is how is it going to keep talent and busi- prietary trading positions.
A. Although European lawmakers FOR BRITISH BANKS?

”
ness when the other major financial centres and other G20
countries are not going in this direction? Q. WHERE DOES THE DRIVE FOR
TIGHTER RULES COME FROM?
A.
acknowledge alternative asset
managers were not directly responsi-
ble for the onset of the credit
British banks have moved faster
than their counterparts any-
where in the world to bring in G20-

A. The aim in both bonus and capi-

tal rules is to reduce unneces-
NICHOLAS STRETCH | CMS CAMERON MCKENNA sary risk-taking by bankers and
crunch, they argue hedge funds ben-
efited from the stabilisation of the
financial system through taxpayer
approved guidelines on pay,
deferring the bulk of awards over a
period of several years and linking

“
traders. Labour MEP Arlene
McCarthy said the rules would
“transform the bonus culture and
The legislation leaves considerable flexibility to end incentives for excessive risk-tak-
national regulators. The FSA was already planning to review ing”. In theory, the financial melt-
its Remuneration Code this summer. The EU legislation may down of 2008 – when many banks
bailouts in 2008. Every hedge fund
operating under the Markets in
Financial Instruments Directive is
covered by the law just passed by the
European Parliament. Those not cov-
ered will still be caught under the
bonuses more closely to perform-
ance. As a result, the law has much
tougher implications for French and
German institutions which are now
playing catch-up. However, lobby
groups such as the British Bankers’

”
around the world had to be rescued
force its hand but there is still considerable scope for UK dis- by governments – is the genesis of
cretion and we hope the regulator will be level-headed. the crackdown, but in practice MEPs
openly admit they have wanted to
bring in such changes for some time.
HOWARD WHEELDON | BGC PARTNERS
forthcoming Alternative Fund
Managers Directive, which will have
the same remuneration restrictions.
National regulators will have discre-
tion over ways in which the rules are
applied to hedge funds, which is
Association are concerned that firms
could move en masse out of Europe
because the region is introducing a
regime far tougher than those of the
US or Asia.

Q. WHAT ARE THE DETAILS OF THE

Q. WHEN DO THE MEASURES TAKE

“
important as they are often struc-
BONUS REGULATIONS? tured differently to banks and may EFFECT?
Words like ‘you made your bed, so now you lie on it’
spring to mind. I have a deep suspicion EU policymakers will
A. Only 30 per cent of an upfront
bonus can be paid in cash,
falling to 20 per cent for larger
not be able to pay employees in
shares or contingent capital. A. The stricter guidelines on bonus-
es come into effect from next
January, but will cover awards for
soon enough know just how much damage they have done to an bonuses – to be determined by the
Q. WHAT HAPPENS IF A FIRM 2010. The tougher capital require-

”
industry that above all others they really do need to flourish. We European Union’s national bank BREAKS THE RULES? ments against trading positions will
should expect a lot of noise from European banks.
supervisors. At least half a bonus has
A. National watchdogs such as the come in “no later than 31 December

@
to be paid in a combination of shares Financial Services Authority, or 2011”.

Europe reveals list of

banks for stress tests
@
BANKING “[It] also envisages adverse condi- banks, the so-called landesbanks and
▲

BY HARRY BANKS tions in financial markets and a cajas respectively, thought to be

EUROPE listed 91 banks taking part in
financial stress tests – including
many regional banks where markets
suspect most of the sore spots are – as
it seeks to restore confidence.
Providing some, but not nearly all,
shock on interest rates to capture an
increase in risk premia,” in bond mar-
kets, said London-based CEBS.
The scenarios would show a differ-
ent impact on the various European
Union member states, said CEBS, a lit-
tle-known group of European Union
among the weakest.
But there was less detail than many
in markets might have hoped for in
the document, which listed two basic
assumptions. One was that the
adverse scenario would assume eco-
nomic growth three per cent below

details of so-called stress tests markets
have been demanding for weeks, a
regulatory committee said it would
test how banks held up if the econo-
my and markets deteriorated.
“The exercise is being conducted on
a bank-by-bank basis using commonly
agreed macro-economic scenarios,”
the Committee of European Banking
Supervisors (CEBS) said.
national finance regulators.
The banks – ranging from
Germany’s Deutsche Bank to Malta’s
Bank of Valletta – comprised 65 per
cent of the European banking sector,
the group said.
Most of Europe’s large banks that
operate in more than one country
were on the list, which also showed
many German and Spanish regional
@
official Brussels forecasts.
The shock to government bonds
would assume a deterioration of mar-
ket conditions similar to the situation
observed in early May 2010. Europe’s
bond markets have been plagued by
the fear of a government defaulting.
“What is lacking here is informa-
tion on detailed assumptions,” said
one London-based banking analyst.

AT A GLANCE | KEY DETAILS OF THE STRESS TESTS

● The objective
The stress tests aim to assess the
resilience of the EU banking sector and
banks’ ability to absorb further possible
shocks on credit and market risks, includ-
ing sovereign risks, and to assess their
current dependence on taxpayer support
measures.
● How the tests will work
The programme will be conducted on a
bank-by-bank basis using baseline and
“disaster” macro-economic scenarios for
2010 and 2011, developed in cooperation
with the European Central Bank and
European Commission. The exercise
envisages adverse conditions in financial
markets and a shock on interest rates to
capture an increase in risk premia linked
to a deterioration in EU government bond
markets. The worst-case scenario
European Commission’s forecasts over
the two-year time horizon. The sovereign
risk shock in the EU represents a deterio-
ration of market conditions as compared
to the situation in early May 2010.
● How far they will reach
The stress test exercise will include the
major EU cross-border banking groups
and key domestic credit institutions in
Europe. In each EU member state, the
sample includes banks, in descending
order of size, to cover at least half of the
national banking sector, as expressed in
total assets. Ninety-one banks represent
65 per cent of the EU banking sector.
Banking groups have been tested on a
consolidated level, meaning subsidiaries
and branches of an EU cross-border bank-
ing group have been included.
closed, on an aggregated and a bank-by-
bank basis, on 23 July. Brussels empha-
sises the stress testing exercise will not
provide forecasts of expected outcomes,
but rather a what-if analysis aimed at
determining whether European banks are
holding adequate capital.
● Key banks involved
UK – Royal Bank of Scotland; HSBC
Holdings; Barclays; Lloyds Banking Group.
France – BNP Paribas; Credit Agricole;
BPCE; Société Générale.
Germany – Deutsche Bank;
Commerzbank; Hypo Real Estate;
Landesbank Baden-Wuerttemberg;
Bayerische Landesbank; DZ Bank;
Norddeutsche Landesbank; Deutsche
Postbank; WestLB; HSH Nordbank;
Landesbank Hessen-Thueringen;
Landesbank Berlin; Dekabank Deutsche MORE NEWS WWW.GANTUK.COM

assumes a three percentage point devia- ● When the results are due Girozentrale; WGZ Bank. ONLINE BROMPTON ROAD, BOND STREET, REGENT STREET,
tion of GDP for the EU compared to the Results of the stress test will be dis- Ireland – Bank of Ireland; Allied Irish. WESTFIELD, BLUEWATER, CANARY WHARF,
www.cityam.com RICHMOND, CAMBRIDGE, BRISTOL, SOLIHULL,
MANCHESTER, EDINBURGH, GLASGOW
 4 News
Hayward meets Abu Dhabi
crown prince over BP’s future
BP IN CRISIS
BY EMMA SADOWSKI
BP’S embattled chief executive Tony
Hayward yesterday met with Abu
Dhabi’s Crown Prince Mohammed
bin Zayed Al Nahyan amidst sugges-
tions the oil rich country could buy a
stake as high as 10 per cent in the oil
major.
The group would not be drawn on
the exact details of the conversation
but sources suggested the meeting
had gone well.
A spokesman said Hayward was in
the region meeting with BP’s strate-
gic partners and investors.
In parallel to Hayward’s travels,
head of refining and marketing Iain
Conn travelled to China this week.
It is thought that the move by sen-
ior executives is part of a security
measure to avoid a takeover attempt
by a rival company. The thinking is
that an investment by a sovereign
fund in the existing shares of BP
would boost the company’s depressed
share price. A BP spokesman said the
group has no intention of issuing
new shares, which at this stage rules
out a Barclays-style financial restruc-
turing.
Barclays, in the teeth of the credit
crunch, raised £4.5bn by issuing new
shares to sovereign investors.
CITYA.M. 8 JULY 2010
Chief executive Marc Bolland has taken over the reins at M&S Picture: REX
M&S sales up
for new boss
including a VAT hike, could not yet
▲
RETAIL
be assessed.
BY JOHN DUNNE M&S launched 570 new products
MARKS and Spencer’s new chief exec- including grill and summer dessert
utive Marc Bolland yesterday warned ranges, in its food ranges over the
that he was “very cautious” about the period.
economic environment in the UK. Like-for-like general merchandise
Presenting M&S’s third consecutive sales, which include clothing and
quarter of sales rises, he said: “We homewares, were up six per cent.
know that consumers were con- Meanwhile international sales were
cerned to see the measure of VAT up 0.9 per cent.
being taken to 20 per cent but we will Bolland, who has replaced Sir
not see the impact now, but in a peri- Stuart Rose at the helm of the compa-
od of time we will get more clarity on ny, is due to give a full report on his
that.” plans for the retailer in November.
More optimistically, though, M&S has 650 UK stores. M&S shares
Bolland did say he did not foresee a closed down 9p at 343.40p.
slump back into recession.
The company said sales at British ANALYSIS l Marks & Spencer
stores open at least a year rose 3.6 per p
cent in the 13 weeks to 3 July.
That was toward the top end of
390 343.40
7 Jul
forecasts and boosted by a strong per-
370
formance in clothing, though it was
down from a 5.1 per cent rise in the
previous quarter. 350
But Bolland, who has spent the
past nine weeks settling in to his new 330
role at the retail giant, urged caution,
21 Apr 12 May 2 Jun 22 Jun
saying the impact of the budget,
ANALYST VIEWS: WILL M&S SALES GROWTH
IN THE TOUGH CONSUMER CLIMATE?
Interviews by John Dunne
RICHARD HUNTER | HARGREAVES LANSDOWN
“ The increase in sales at the online unit provides fur-
ther reassurance, and there are some faint signs that the
”
company may be able to recapture some of its former glory.
In all, the share price has held up relatively well.
FREDDIE GEORGE | SEYMOUR PIERCE
“ Sales on the clothing side were better than expect-
ed as the ranges have improved. I think M&S is doing very
”
well and maybe Marc Bolland was being over cautious if
anything.
PHILIP DORGAN | AMBRIAN
“ Despite dodgy weather and the UK general election,
clothing sales have held up quite well. The prophets of doom
”
were proved wrong a year ago and we think that share
prices should look towards margin recovery.
 6 Legal News CITYA.M. 8 JULY 2010

Lawyers billed $75bn last

THE WORLD’S 10 LARGEST LAW FIRMS (US DOLLARS)
Ranking Turnover Profit margin Profit per equity partner
Baker & McKenzie 1 (+4) $2,112m (-3%) 34% $997,000 (-17%)

year with Baker top of table

Skadden, Arps, Slate, 2 (+2) $2,100m (-5%) 45% $2,052,000 (0)
Meagher & Flom

DLA Piper 3 (-2) $1,948m (-14%) 22% $1,050,000 (-16%)

Clifford Chance 4 (+2) $1,879.1m (-14%) 28% $1,409,000 (12%)

The drop means the legal sector from the previous year, it still pushes Linklaters 5 (-3) $1,852.5m (-17%) 43% $1,797,000 (-13%)
▲

LEGAL
BY EMMA SADOWSKI saw $4.5bn less coming in from the firm above DLA, which billed
clients, forcing law firms to reduce clients $1.98bn. Latham & Watkins 6 (+1) $1,821m (-5%) 45% $1,902,000 (5%)
BUSINESSES paid almost $75bn lawyer headcount and rein back Bakers chairman John Conroy said:
(£49.3bn) for legal services last year, spending. “We are gratified by this client Freshfields Bruckhaus 7 (-4) $1,786.7m (-19%) 52% $2,201,000 (-11%)
marking a fall from the previous year Baker & McKenzie has surpassed response to our worldwide emphasis Deringer
as clients tightened their spending. UK rivals DLA Piper, Clifford Chance on value-added services.”
According to annual research con- (CC) and Linklaters as the world’s Meanwhile, New York firm Allen & Overy 8 (-) $1,644.2m (-12%) 37% $1,712,000 (-1%)
ducted by Legal Business magazine, largest law firm by revenue, accord- Skadden, Arps, Slater, Meagher &
during the 2009 financial year, law ing to the research. Flom billed clients $2.1bn, while UK
firms across the globe collectively Bakers tops the table after billing rivals CC and Linklaters respectively Jones Day 9 (-) $1,520m (0%) 40% $759,000 (-7%)
billed clients $74.6bn, marking a six clients $2.11bn last year and, despite billed clients $1.87bn and $1.85bn
per cent drop from the previous year. seeing a three per cent dip in revenue during the year. Kirkland & Ellis 10 (+2) $1,428m (6%) 47% $2,424,000 (8%)

Magic Circle bosses: (l-r) Ted Burke of Freshfields and Clifford Chance’s David Childs

Income down
at Freshfields
it has received a landmark instruc-
▲

LEGAL
BY EMMA SADOWSKI
MAGIC circle law firm Freshfields
Bruckhaus Deringer has posted a dou-
ble digit drop in revenue, marking
the largest income fall reported by
the elite UK legal group this year.
Turnover for the year fell by 11 per
cent to £1.14bn on the back of
depressed transactional markets and
a drop off in M&A activity.
Freshfields chief executive Ted
Burke told City A.M. yesterday that the
fall in revenue was directly in line
with the firm’s expectations.
He said that one-third of the firm’s
business comes from the corporate
and M&A practice and despite seeing
a steady flow restructuring man-
dates, the drop off in takeovers
impacted its revenue streams.
Burke said: “Like many other busi-
nesses, we have seen a downward
trend in our financial results over the
past year but, given the very difficult
markets and ongoing economic
uncertainty, the results are relatively
healthy.”
The firm, which saw partner prof-
its of £1.4m, is celebrating news that
tion from client BP to advise on a
defence strategy in the event of a hos-
tile takeover bid.
London corporate chief Mark
Rawlinson is leading a team advising
BP, with expectations that the
instruction could earn Freshfields
tens of millions of pounds in legal
fees. BP’s instruction can be seen as a
massive blow to regular adviser
Linklaters, which has maintained a
relationship with the embattled oil
major for decades.
Elsewhere, Clifford Chance (CC)
said revenue for the year came to
£1.19bn, marking a five per cent drop
on the year, as revealed by City A.M
earlier this week.
Managing partner, David Childs
said: “Given the challenging market
conditions, this is a strong set of
results with our profitability much
improved and back on track.”
The firm scored a number of high-
profile instructions over the year,
including acting for Kraft on its
£11.9bn takeover of Cadbury and
Royal Dutch Shell on its $12bn
(£7.8bn) joint venture with Brazilian
bio-fuel giant Cosan.
 8 News CITYA.M. 8 JULY 2010

No changes to CITY A.M. | SHADOW MPC

ALLISTER HEATH | CITY A.M
“The money supply is growing at a faster rate and while the PMI stats are slightly weaker, there will be no
double-dip. Fiscal tightening won’t cause a recession. Inflation is too high so rates must go up by 0.25 per cent.”

rates in July SIMON WARD | HENDERSON

“Hike by 25 basis points. Faster money growth and rising consumer expectations imply an increased risk of
the current inflation overshoot becoming entrenched without an early normalisation of policy.”
GEORGE BUCKLEY | DEUTSCHE BANK
“Concerns about a double-dip in economic growth alongside euro area banking and sovereign debt risks
Ward said that faster money suggest the Bank of England should leave rates unchanged at their current exceptionally low level this month.”
▲

ECONOMY
BY JESSICA MEAD
INTEREST rates should remain on
hold this month at 0.5 per cent to off-
set the impact of fiscal tightening,
according to a majority of City A.M.’s
Shadow MPC ahead of today’s
annoucement by the Bank of
England at midday.
Seven members of the committee
said that policy should remain
unchanged this month thanks to
concerns about a double-dip reces-
sion and the fiscal tightening meas-
ures that were announced in the
Budget. Capital Economics’ Vicky
Redwood even said that the fiscal
squeeze might warrant further QE
later on this year.
However, as in the Bank’s
Monetary Policy Committee, tensions
are growing in the Shadow MPC. Two
members, Henderson’s Simon Ward
and City A.M.’s Allister Heath both
called for a hike of 25 basis points .
growth and rising expectations
implied an increased risk of the cur-
rent inflation overshoot becoming
entrenched unless policy starts to
normalise.
He added: “An inflow of foreign
capital may sustain the monetary
pick-up despite sluggish lending.”
However, it seems that while the
more dovish members are concerned
about the stubbornly-high level of
inflation, there is not yet sufficient
evidence to convince them that hik-
ing rates would be the right approach
at this juncture.
Most economists are not expecting
the Bank of England to move this
year, although they have noted that a
rise in long-term inflation expecta-
tions could spur the MPC to start hik-
ing sooner rather than later. Last
month Andrew Sentance called for a
rate hike. It is unlikely he will con-
vince a majority but evidence of fur-
ther dissent will be watched carefully.
MICHAEL SAUNDERS | CITIGROUP
“There is growing – and valid –anxiety over the scale of the recent inflation overshoot. But with aggressive fiscal
tightening, the MPC will surely hold. We expect no change in 2010 unless long-term inflation expectations surge.”
VICKY REDWOOD | CAPITAL ECONOMICS
“The MPC should hold its nerve and wait to see if inflation falls, before being panicked into a rate hike. The
fiscal squeeze might even mean more quantitative easing is yet needed.”
TREVOR WILLIAMS | LLOYDS TSB
“Keep rates on hold into 2011 until recovery is secured. Money supply growth could yet weaken anew and
financial markets seem more worried about deflation than about inflation thanks to fiscal tightening.”
HOWARD ARCHER | IHS GLOBAL INSIGHT
“No change. Serious threats to already muted recovery stem from the extra fiscal tightening that has been
announced as well as from the Eurozone's problems. There are signs that inflation is starting to head down.”
JAMIE DANNHAUSER | LOMBARD STREET RESEARCH
“The Budget suggests a slightly more restrictive fiscal stance. The MPC shouldn’t move now but they could raise
rates before year-end given likely near-term growth and an upward move in inflation expectations.”
GRAEME LEACH | IOD
“We don’t think that there needs to be any change in rates or QE this month. Broad money growth has
accelerated recently but it is too early to be sure this will be sustained and so policy should remain on hold.”

Germany agrees budget

cuts targeting the deficit
a 3.8 per cent decrease from 2010,
@
▲

ECONOMY
GERMANY’S government yesterday
agreed on a four-year, €80bn
(£66.6bn) austerity plan, commit-
ting the country to slashing its
bloated budget deficit and shoring
up chancellor Angela Merkel’s cen-
tre-right coalition.
The seal of approval from the cab-
inet on the package is welcome
news for Merkel, who had been
under pressure to tone down meas-
ures criticised at home as unfair and
abroad as a threat to the global
recovery.
Finance minister Wolfgang
Schaeuble said the plans put
Germany on track to cut its budget
deficit to below three per cent of
gross domestic product by 2013 and
cap new borrowing.
“Those who doubted the serious-
ness of this plan have to take these
figures into account,” he told a news
conference.
The budget, going before parlia-
ment by the end of November, will
cut spending to €307.4bn next year,
and reduce the deficit to €60bn.
The savings measures mark the lat-
est chapter in Germany’s drive to con-
solidate its public finances. It has
drawn criticism from some of its Euro
zone partners, who say it is too early
to withdraw emergency stimulus.
Economy minister Rainer
Bruederle denied the austerity plan
would endanger the recovery in
Europe’s largest economy, seen as
crucial to the region’s economic
prospects.
“There is no risk of choking off the
recovery,” Bruederle told reporters
after the cabinet meeting, adding
that solid state finances encouraged
stable and sustainable growth.
Germany ended its deepest post-
war recession a year ago and recent
data suggest the upswing is gather-
ing pace, despite an unexpected dip
in industrial orders in May.
The government has been
mulling ways to pay for the budget
cuts, for example by raising extra
revenue and scrapping some VAT www.cityam.com
discounts.
CITYA.M. 8 JULY 2010
Carlyle Group faces $1bn
lawsuit over failed fund
▲
BANKING
CARLYLE Group is being sued by the
liquidators of a failed mortgage-secu-
rities fund that was set up by the pri-
vate equity group, a spokesman for
the liquidators said.
The lawsuit, which is being filed in
the United States and Europe, alleges
that Carlyle Group and the former
directors of the mortgage-securities
fund, Carlyle Capital Corp, breached
their fiduciary duty to investors in
the more than $1bn (£659m) fund,
which collapsed in 2008.
The fund, set up in 2006, was pub-
licly traded in Europe beginning in
July 2007.
A copy of the complaint alleges
that in the “short space of eight
months the entirety of CCC’s capital
was spectacularly lost under the reck-
less and grossly negligent direction,
supervision, management and advice
of the defendants.”
At its peak, Carlyle Capital, based
in Guernsey in the Channel Islands,
managed $21bn of mostly residential
mortgage securities.
In 2007, the fund generated about
$20m in fees for the private equity
firm, according to the liquidators
with the restructuring firm Begbies
Traynor.
When Carlyle Capital collapsed in
March 2008, it had more than $16bn
of debt -- mostly loans extended by
banks.
“This suit is without merit. We will
vigorously contest all claims and are
confident we will prevail,” said
Carlyle Group spokesman
Christopher Ullman.
This is the second time
Washington, D.C.-based Carlyle has
been sued over the collapse of the
mortgage investment fund.
A year ago, former California
Republican congressman Michael
Huffington sued Carlyle, claiming he
lost his entire $20m investment in
Carlyle Capital. Huffington is the for-
mer husband of HuffingtonPost
founder Arianna Huffington.
The lawsuit by the liquidators
alleges Carlyle Capital was overly
leveraged and and relied on too much
short-term borrowing to invest in
mortgage-backed securities at a time
the US housing market was dipping.
LSE chief Xavier Rolet has seen trading fall Picture: Micha Theiner/ CITY A.M
@ a 10-year low
Home loans at
▲
BANKING
BY HARRY BANKS
MORTGAGE lending by British banks
last year fell to the lowest net level
since 2000 and bank robberies rose
for the first time in seven years as the
recession took its toll.
Net mortgage lending by British
banks fell to £36.3bn last year, com-
pared with £59.4bn the year before
and almost £80bn in 2006, according
to data released by the British
Bankers’ Association yesterday.
The BBA said banks were at least
net lenders. Overall net mortgage
lending last year was £7.8bn, as lend-
ing by building societies contracted
by £7.6bn and specialist lenders with-
drew £22.4bn.
Loans by specialists, including buy-
to-let and sub-prime loan providers,
www.cityam.com contracted by a net £48bn in the last
two years after helping fuel the prop-
erty boom that contributed to the
News 9
LSE cash equity
trading slumps
as bonds soar
▲
FINANCIAL MARKETS
ACTIVITY on the London Stock
Exchange’s UK cash equity order book
slumped in June, though the fall was
offset by Europe’s sovereign debt cri-
sis driving volatility and a heightened
interest in bond trading.
The average daily value of cash
equities traded in June was £4.3bn,
down one per cent from June last
year, while the average daily number
of trades fell three per cent to
593,569. A spokesman said the LSE,
headed by Xavier Rolet, saw spikes on
certain days in June as periods of
extreme volatility lured traders, but
other days had seen depressed senti-
ment drag on volumes.
In contrast, the average daily value
traded on the MTS cash markets dur-
ing the month rose 23 per cent year-
on-year to €9.6bn (£8bn) as traders
swarmed around government bonds
hit by the Eurozone crisis. On the
MTS repo market, the average-term
adjusted daily value traded hit
€256.9bn, almost twice the level seen
in June last year.
financial crisis.
There were 114 bank robberies last
year, up 10 per cent from 2008, BBA
data showed.
The level of robberies remains low
by historical levels, however. During
the last recession there were 684 rob-
beries during 1991 and 847 in 1992.
Britain accounts for a relatively small
share of bank robberies across
Europe – there were an estimated
4,726 in 2008, almost half of which
were in Italy.
Attacks on ATM cash dispensers in
Britain jumped 30 per cent last year
to a record 241, including 28 ATMs
removed from premises.
The BBA data showed the impact of
recession and the financial crisis in
several other areas: there were 46,000
properties repossessed, the highest
since 1995, and the assets of all banks
in Britain fell by almost four per cent
to £7.6 trillion, the first contraction
since 1991.
CITYA.M. 8 JULY 2010 News 11

Natural catastrophe costs in Nikolaus von Bomhard,

chairman of Munich Re’s
management board, yes-
terday warned that the

2010 reach record $70bn high

long-term trend of
increasingly frequent
weather extremes and
ensuing natural catastro-
phes would hurt the
world’s re-insurers.

quakes -- in Haiti in January, in Chile earthquake was one of the deadliest

▲

INSURANCE
BY HARRY BANKS
THE total costs associated with natu-
ral catastrophes in the first half of
2010 were $70bn (£46bn), more than
the average over the past 10 years and
more than for the whole of 2009,
according to Munich Re.
The world’s biggest reinsurer by
revenue said yesterday that losses
jumped due to three major earth-
in February and in China in April.
Insured losses, those losses which
insurers and reinsurers will have to
cover, were $22bn, more than double
the first-half average since 2000.
In terms of insured losses, the
Chilean earthquake was the most
expensive individual event in the first
half of 2010, with insured losses of
$8bn and an overall cost of $30bn.
In terms of human life, the Haitian
on record, killing 223,000 people.
Due to low insurance penetration,
insured losses related to the earth-
quake were only $150m.
Munich Re, which competes with
Swiss Re and Hannover Re in
Germany, said it expects the long-term
trend of increasingly frequent weather
extremes and ensuing natural catas-
trophes to continue, which will result
in ever-increasing losses.

Investec may
sell Rensburg
fund division
▲

FUND MANAGEMENT had £1.3bn of funds under manage-

BY VICTORIA BATES
SOUTH African bank Investec yester-
day said it had brought in advisers to
explore the possibility of hiving off
the fund management division of
Rensburg Sheppards, which it bought
out fully at the end of March.
Investec said it had received “a
number of expressions of interest”
from potential buyers for Rensburg
Fund Management (RFM), which
accounts for just under a tenth of
Rensburg Sheppards’ total funds
under management.
It has hired Fenchurch Advisory
Partners to look at strategic options
for selling the fund management
arm, which could fetch anywhere
between £30m and £40m based on
the price Investec paid to gain full
control of Rensburg earlier this year.
Analysts said that a sale of RFM
would be a “natural demerger” for
Investec, given that Rensburg’s pri-
mary business is concentrated on pri-
vate client discretionary wealth
management services rather than
fund management.
As of its final results in May, RFM
ment, compared with £11.6bn under
management at Rensburg’s invest-
ment management arm. However,
the division has since lost its single
segregated mandate and disposed of
its corporate bond trust, meaning it
now manages around £800m.
Investec stressed there could be no
certainty that Fenchurch’s strategic
review would result in a transaction
or offer for RFM.
The bank, which already held a
long-term 47 per cent stake in
Rensburg, stumped up a hefty premi-
um in March to acquire the remain-
der of the group. It paid 1.63 new
shares of its own for each Rensburg
share, valuing the firm at around
£412m. The offer valued Rensburg’s
shares at 916p, a 48 per cent premium
to their closing price the night before
the deal was announced.
Graham Marchant, one
of the founders of
boutique Fenchurch
Advisory Partners, is
advising Investec

Henderson hands international

property unit to Aviva Investors
order to prosper over the longer term,
▲

FUND MANAGEMENT
FUND management group
Henderson has transferred its inter-
national property fund over to Aviva
Investors following a strategic review
of the fund’s prospects.
The international property fund,
which faltered under previous owner
New Star as redemptions ballooned in
the credit crisis, was only re-opened
to daily dealing in February after a
closed period of over a year. It was
renamed after Henderson bought out
New Star last year.
Henderson’s review concluded that
the fund would have to grow in both
size and regional diversification in
something the firm said it was
unlikely to achieve organically.
Aviva Investors plans to combine
the £183m Henderson property fund
with the £223m of assets in its own
European and Asia-Pacific real estate
funds.
Henderson said it had plumped for
Aviva after conducting a detailed
analysis of suitable property vehicles,
with Aviva’s global real estate capabil-
ity and investment experience even-
tually landing it the mandate.
“We expect clients to gain the
immediate benefit of a strengthened
investment proposition,” the two
firms said in a statement.
 The Capitalist
12
FORMULA
ONE CHIEF
UNLEASHES
TAX FURY
WITH all the hubbub about capital gains
tax rates in the run-up to the recent
Budget, investors are no stranger to vitu-
perative attacks on their profits, but it
does come as a surprise when the abuse
comes from someone who’s supposed to
be on their own side.
The latest high-profile character to get
vocal about the supposed injustice of low
CGT rates is Formula One boss Bernie
Ecclestone, who singled out private equity
firms and their carried interest income
for particular criticism in an interview
last week.
“It has been diabolical in the past,”
Ecclestone stormed. “All they have been
doing is transferring shares and paying 10
per cent capital gains. It is still no good at
28 per cent now.”
Instead, the racing chief reckons chan-
cellor George Osborne should have gone
ahead and implemented the Lib Dems’
proposals to bring CGT into line with the
highest level of income tax, arguing:
“Why should that type of business be
allowed to run on a different structure
than that you run your business on?”
Everyone is entitled to his or her opin-
ion, but perhaps Ecclestone would do well
to remember who his friends are. The
company which bought up the commer-
cial rights to Formula One in 2006 was, of
course, CVC Capital Partners – one of the
world’s largest private equity firms.
STRIKING OIL
Much hilarity over the emergence of a
board game from the Seventies which
seems to bear an uncanny resemblance to
oil giant BP’s modern-day troubles. The
game, BP Offshore Oil Strike, features four
players striving to be the first to make
$120m by exploring and constructing oil
rigs – and, surprise surprise, also involves
penalties for having to clean up enormous
oil spills.
(If you’ve got one, The Capitalist’s advice
is to put it on eBay pronto, since they’re
already worth a small fortune.)
Mind you, not all of the features of the
game run parallel to BP’s Gulf of Mexico
The favourite ground
this tournament.
Black, White, Cappuccino or Latte.
There’s a McDonald’s for everyone.
© 2010 McDonald’s.
headache – in the game, the cost of clean-
ing up an oil slick is just $1m, which pales
in comparison to the modern-day price tag
of over $3bn.
SPORTING CLASH
New Marks and Spencer chief executive
Marc Bolland told analysts and investors
yesterday that he has been “really enjoy-
ing” his first nine weeks at the helm of the
company, but The Capitalist is prepared to
bet that he wasn’t feeling that way on
Tuesday evening.
Bolland, you see, is both a Dutchman
and a football fanatic – which didn’t exact-
ly make for a happy collision of interests
on the traditionally busy evening before
the company’s first quarter results, when
the Netherlands beat Uruguay for a place
in the World Cup final.
Still, the executive team must have been
well prepared – I hear Bolland did manage
to leave the office to watch the match in
the end, and was suitably chuffed about
the result.
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
“Ecclestone
should have
remembered
who his
friends are
before
launching
into a tirade
against CGT”
Bernie Ecclestone
has put his foot
into it with F1’s
private equity
owner CVC
FOND FAREWELL
A sad day today for those in the retail
industry, as family, friends and contacts
gather at the funeral of Nick Samuel, the
former chief executive of Hobbs and
finance director of Karen Millen.
Samuel died last week of stomach can-
cer at the age of 58, and will be sorely
missed by all who knew him.
Hobbs chief executive Nicky Dulieu said
in a tribute: “He inspired many, not only
through his passion for retail but also his
more personal achievements, running
many marathons in aid of the Retail Trust
BP’s original game, amongst other charities. All of us at Hobbs
above, is an uncanny are devastated by the sad news of his pass-
forerunner of its pres- ing; however, we feel privileged that we
ent troubles had the pleasure of both knowing and
working with Nick.”
Samuel’s funeral will be held in
Hertfordshire, with the reception after-
wards at Brocket Hall.
OO-ER,
MISSUS
The Guildhall is more
used to receiving luminar-
ies of the business world
than fully-fledged film and
TV stars, but that’s all set to
change today at a Freedom of the
City of London ceremony.
Receiving the Freedom award is
none other than Barbara Windsor,
best known for her role as Peggy
Mitchell in Eastenders and, of course,
for her performances in the Carry On
films.
CITYA.M. 8 JULY 2010
Babs is receiving the Freedom of the City of London
Babs’ Freedom was sponsored by the
City of London Corporation’s chief com-
moner Deputy Robin Sherlock and
Alderman Andrew Parmley, who will host
a private lunch for the actress and her
guests afterwards.
MINDING MANNERS
Spotted gracing a building site outside the
Lewisham DLR station earlier this week:
an official-looking road sign bearing the
words “Osborne apologises for any incon-
venience caused”.
“It’s a bit of an understatement for what
the new chancellor is about to unleash,”
quips my spy, “but at least he has the good
manners to get the apology in first…”
WHAT A HIKE
Calling all intrepid hikers: poverty charity
CARE and City A.M. have teamed up once
again to launch this year’s 3 Peaks
Challenge, which will see participants
from the City taking on the three highest
peaks in Scotland, England and Wales –
Ben Nevis, Scafell Pike and Snowdon – in
just 24 hours.
The challenge takes place on 11 and 12
September this year and we would love
you to sign up – call 020 7934 9470 for
more details. The latest team to sign up is
from Deloitte, led by senior associate
Janice Wong.
STICKY STUFF
An invitation pops
into The Capitalist’s
inbox for a summit
hosted by Mayor
Boris Johnson, aimed
at tackling the “sticky
issue” of chewing gum,
of all things.
Apparently, cleaning
London’s streets of gum
costs as much as £10m per
year, or between 50p and £2
per piece.
Who’d have thought it?

Michael Queen said the business was performing well despite uncertain markets
3i rediscovers
its appetite
for big deals
PRIVATE EQUITY
▲
BY DAVID CROW
PRIVATE equity giant 3i yesterday said
its portfolio of investments had
turned the corner and that the out-
look for new deals was looking more
positive.
The largest listed private equity
firm said it invested £105m in the
three months to the end of June, up
from £76m in the same period of
2009, when the industry was on its
knees.
It spent £35m on Vedici, a French
private healthcare player, and
ploughed a further £70m into its
existing portfolio of firms.
And in a sign that the frozen deal-
making environment is starting to
thaw, the firm sold off £79m of invest-
ments, including the £29m divest-
ment of funds data firm Kneip.
It also said it was expecting to book
£120m from the sale of part of
Inspicio, the testing and inspection
business, when it completes at the
Succeeding in quiet times
BARONESS Hogg, 3i’s chairman, is
ending her eight-and-a-half year
stint on a high note. It’s been a rocky
ride: staggering growth in the early
part of her tenure was tempered by a
plummeting share price in the face
of the financial crisis.
Since he joined in January 2009,
chief executive Michael Queen has
been quietly repairing the firm’s bal-
ance sheet. But at last the moribund
private equity deal arena appears to
be awaking from its slumber.
3i appears to have found a way of
making money from its invest-
ments, even in quiet times. Its £79m
worth of exits from firms like Kneip
and Dirickx, are all in some ways
similar. 3i has found sound private
News 13
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.
end of the summer.
This is the first time in seven quar-
ters that the private equity giant has
invested more than it realised in sales,
suggesting appetite for new invest-
ments is slowly creeping back.
Michael Queen, 3i’s chief executive,
said: “Despite uncertain markets, the
business continues to perform well.
We are seeing stable to improving
earnings performance across the
portfolio and continue to see a good
pipeline of investment opportuni-
ties.”
ANALYSIS l 3i Group
p
272.60
310 07 Jul
290
270
250
12 Apr 30 Apr 21 May 11 Jun 1 Jul
businesses, often owned by a family,
and provided the capital and expert-
ise that is normally only available to
those who opt for a flotation.
Such an approach mightn’t share
the cut and thrust of the deals it cut
in its hey-day, but seems to be work-
ing well in a time of muted activity.
With its shares trading at an 18
per cent discount to its net asset
value at the end of March, investors
looking for a long-term and liquid
private equity investment could do
much worse.
BOTTOMLINE
Analysis by David Crow
 14 News CITYA.M. 8 JULY 2010

McAlpine wins Heron job

Barbican. Work is set to begin next already sold, and the lower floors will

▲
PROPERTY
BY MARION DAKERS
DEVELOPERS Heron International
yesterday appointed Sir Robert
McAlpine as the main contractor on
the Heron, its residential develop-
ment in the City of London.
McAlpine has beaten rival con-
struction firms to the deal to build
A Heron residential development will join the London skyline in 2013 the 36-storey tower next to the
week and conclude in 2013.
Heron’s commercial director Lisa
Ronson said: “We look forward to
working with Sir Robert McAlpine to
bring this exclusive development to
life, ensuring that the quality of the
build and finish is as exceptional as
the building’s unique location.”
The tower will contain 284 apart-
ments, of which 30 per cent are
house the Guildhall School of Music
and Drama.
The appointment comes days after
Heron secured its first tenants in the
Heron Tower near Liverpool Street,
the tallest building in the City.
McDermott signed up for around
25,000 sq ft of office space over two
floors, with the option to take a fur-
ther floor higher in the building.

State Street Xstrata £1bn

is bullish on upgrade for
profit target 
  Peru mine
  #
▲
FUND MANAGEMENT
BY HARRY BANKS
ASSET management and custody
firm State Street said yesterday that
quarterly operating earnings would
easily top Wall Street forecasts, send-
ing its shares up nearly 10 per cent
and boosting the broader market.
State Street, the third-largest US
custody bank, said second-quarter
operating earnings would be 93 cents
a share, handily beating analysts’
average forecast of 72 cents.
The company offered only a pre-
view of its earnings, leaving analysts
to wait for its full report, due 20 July,
to learn exactly why results were so
strong.
But it did hint at the reasons, say-
ing momentum in revenue from
servicing fees and improved revenue
from trading-services fees powered
operating earnings.
“These expected results are consis-
tent with the full-year operating-basis
outlook we provided in the second
quarter,” the company said in a state-
ment.
State Street, which earns fees for
offering services like record-keeping
to mutual and hedge funds, also said
it would take a one-time charge of
$251m (£209m), or 50 cents per
share, in the quarter for an injection
of money to support trust funds that
its money management arm offers.
State Street injected $330m into
the collateral pools held by its State
Street Global Advisors securities lend-
ing funds. The move will allow it to
lift redemption restrictions, in place
since October 2008, starting next
month.
This is expected to reduce “poten-
tial liability concerns,” the company
said.
Analysts welcomed the move, say-
ing State Street had tackled a long-
time problem quickly after a new
chief executive took over in March.
Booz, AT Kearney merger talks crumble JP Morgan in WaMu probe
▲
FINANCIAL SERVICES
BY VICTORIA BATES
MANAGEMENT consultancy firms
Booz & Company and AT Kearney
have called time on discussions over a
merger, a move that would have creat-
ed the world’s third-largest power-
house in global consulting.
Booz and AT Kearney said in a state-
ment that their “future aspirations
will be best realised as separate part-
 "   
$#


  
   !        $

 "      $      

        # $   

nerships”, after it emerged last
month that they were in talks over a
potential tie-up.
If the merger had gone ahead, the
combined firm would have ranked
higher in stature than all of its rivals
save giants McKinsey and the Boston
Consulting Group.
Booz was founded by Edwin Booz
in 1914. It now has more than 3,300
people in 61 offices around the world.
In 2008, private equity firm Carlyle
Group bought the firm’s US govern-
ment consulting business, which
retained the name Booz Allen
Hamilton, for $2.54bn. The remainder
of the business was renamed Booz &
Company.
AT Kearney, which traces its roots
back to 1926, has offices in major
business centres in 36 countries. The
group was bought out by its partners
in 2006 from its previous owner, the
technology firm EDS.
BANKING
HOLDERS of $1bn (£659m) of securi-
ties issued by a Washington Mutual
entity have sued to void an eve-of-
bankruptcy exchange of their invest-
ment, a complaint filled with claims
of fraud and secret agreements says.
The dispute centres around an
exchange of securities that were
swapped into preferred stock just as
regulators seized Washington Mutual
▲
MINING
BY MARION DAKERS
XSTRATA has approved a £1bn expan-
sion of its copper mine in southern
Peru, which will boost the firm’s out-
put and extend the life of the mine by
20 years.
The mining group’s existing proj-
ects at Tintaya were due to run out of
ore in 2012, but Xstrata said yesterday
it will develop the deposits nearby.
The expansion will boost average
production of copper in concentrate
at the site by 60 per cent to 160,000
tonnes per year for the first six years.
Construction is due to start later
this year and the new mine should be
launched in the second half of 2012.
The expansion is part of Xstrata’s
plan to boost the group’s overall vol-
umes by 50 per cent over four years. It
said it plans to focus on organic
growth rather than acquisitions.
“From the various site visits we’ve
conducted over the years we believe
Xstrata can deliver this, although the
market remains sceptical,” analyst
David Butler at JP Morgan said in a
note.
Last year, Xstrata’s overall mined
copper output fell 4.8 per cent to
907,000 tonnes, though in the first
three months this year it rose three
per cent.
Shares in Xstrata rose 0.4 per cent
to 909.4p yesterday, compared to a
one per cent rise in the FTSE 100.
ANALYSIS l Xstrata
p
1,400
909.10
1,300 7 Jul
1,200
1,100
1,000
900
12 Apr 30 Apr 21 May 11 Jun 1 Jul
Bank (WaMu) in September 2008, in
the biggest bank failure in US history.
The trust securities were trans-
ferred to WaMu, which was then sold
to JPMorgan Chase. The lawsuit seeks
to undo that exchange of securities.
The suit also seeks a determination by
the judge that JPMorgan knew of the
misrepresentations by WaMu about
the soundness of its bank and that it
cannot be a bona fide purchaser of
the securities.
CITYA.M. 8 JULY 2010
DS Smith makes bid for Otor
▲
MANUFACTURING
BY MARION DAKERS
PACKAGING and office products com-
pany DS Smith has extended its reach
in Europe with the purchase of Otor
from private equity group Carlyle.
DS Smith has made a £206m bid
for 95 per cent of the French packag-
ing firm, with the rest of the deal
value consisting of assumed debt.
The firm, which has a market cap
of £495m, will fund the deal with
existing and new bank facilities, and
through placing 39m shares. The
firm began courting Otor in March,
when owner Carlyle put it up for sale.
PM promises
to give power
to the people
▲
POLITICS
BY DAVID CROW
DAVID Cameron will today announce
an end to Whitehall targets, promis-
ing to replace them with a new struc-
ture that makes ministers more
accountable to voters.
The Prime Minister will tell a con-
ference of civil servants that people
rather than politicians will set the
benchmarks for departmental per-
formance, with the power to insti-
gate change if government fails to
live up to expectations.
He will say that all departments
must publish a Structural Reform
Plan that shows how they will give
voters more say over how govern-
ment works.
In education, teachers will not
have to answer to Whitehall or meet
centrally-set targets. But they will
have to show they are impressing
local parents, who will be able to
switch schools or even club together
to bring in a private provider if
they’re unhappy with the standard
of teaching.
Amid fears the government is
being type-cast as little more than a
deficit-cutting machine, he will
rekindle the “Big Society” theme that
CITY VIEWS: SHOULD ALL BANKS CONSIDER MONTHLY FEES?
JIM BAND
ROBERTSON CAPITAL
“I used to be charged a monthly fee, after
I set up a premium account without realis-
ing. I wasn’t seeing the benefits so I
stopped and went back to a free account.
Companies should pay for the services
they get, but personal accounts don’t give
enough to be value for
money at the moment.
If you’re effectively
lending money to the
bank and not getting
perks in return, I don’t
think you should
be charged.”
DS Smith chief executive Miles
Roberts told City A.M.: “It’s a major
step forward for us. It will mean high-
er margins, higher returns on the
business and a sustainable dividend
payment.”
The acquisition gives DS Smith
more exposure to the fast-moving
consumer goods sector to comple-
ment its existing packaging opera-
tions in France. It has contracts with
Nestle, Danone, Proctor & Gamble.
Roberts said the purchase marks
the start of the firm’s refocus on
European business, but would not be
drawn on whether the strategy will
involve cuts to its UK operations.
featured heavily in the Conservative
general election campaign.
“We want to replace the old system
of bureaucratic accountability with a
new system of democratic accounta-
bility – accountability to the people,
not the government machine,”
Cameron will tell delegates at the
Civil Service Live conference.
“We want to turn government on
its head, taking power away from
Whitehall and putting it into the
hands of people and communities.”
The Prime Minister will signal a
break with the target culture that
defined Labour’s years in govern-
ment.
In its place, the government will
set up mechanisms that allow local
communities to make changes to
public services, by voting in local ref-
erenda and by having a greater
choice of different providers on offer.
Meanwhile, in a bid to heal ten-
sions with civil servants, who are up
in arms over plans to slash their
redundancy payouts, Cameron will
thank the civil service from smooth-
ing his passage to power.
“So much of what we’ve managed
to do in getting this new government
off the ground is a tribute to your
expertise,” he will say.
STEEG TANGY
Interviews by Marion Dakers and Daniella Farisiani
BNP PARIBAS
“I’m charged for my account in France, but
as a young person the fee is only around
€2 a month. All the banks there charge for
current accounts, and it’s accepted by cus-
tomers that the service costs money. But
people are used to free banking here, and
it will be very difficult to
introduce a charge.
Plus, it’s harder to open
an account in France,
and a lot of people will
miss that convenience if a
charge comes in.”
“Some areas of the business are
more attractive to shareholders than
others. Exactly what the make up of
the company will be is not clear yet.”
He said the company would provide
details on its strategy later in the year.
Shares in DS Smith closed 2.7 per
cent up at 128.7p yesterday.
FAST FACTS | DS SMITH
● DS Smith is a FTSE 250-listed company with
UK operations in paper, packaging and recycling.
● It installed Miles Roberts as CEO in May and
resumed dividends last week after posting a
profit of £55m, a 227 per cent rise on the year.
WOSSY WINS ITV SHOW
JONATHAN Ross has agreed to front a new chat show with ITV1 to be shown next year.
He said he was “thrilled and excited” to be producing the “brand new” show. The finan-
cial details of the one-year deal were not disclosed. Ross earned an estimated £6m a year
at the BBC, which he left earlier this year after 13 years. He hosted a Friday night TV
chat show, a weekly radio programme and a film review programme.
PHILIP CHURCH
THE BANKER
“I use a premium account and I don’t mind
the charges, as I get travel insurance and
car cover as part of the deal. If banks can
foster a better relationship with cus-
tomers then they might be willing to pay
for that kind of service. It might be diffi-
cult for people on low
incomes if a charge is
brought in by all the
banks. The banks are
desperately keen to get
deposits, and it’s a bit rich
for them to charge
just for that.”
MALCOLM MOIR,
MARK BREUER
AND NIKLAS
KLOEPFER
JP MORGAN
CAZENOVE
MALCOLM Moir is a managing direc-
tor at JP Morgan Cazenove, and led
the team advising DS Smith on yester-
day’s purchase and share placing. He
has also worked with Babcock on its
takeover bid for VT, and acted for First
on its failed bid for National Express.
Mark Breuer is a vice chairman who
previously served as head of its merg-
ers and acquisitions team. He was one
of five JP Morgan executives to make
the board in 2008, after moving to the
firm as part of Cazenove in 2004.
Picture: GETTY
Coutts: One needs £250k
to qualify for free account
▲
BANKING
THE Queen’s bank Coutts has with-
drawn free banking to customers
with less than £250,000 in their
accounts.
The private bank, which is majori-
ty-owned by the taxpayer after the
government bailed out its owner, the
Royal Bank of Scotland, used to offer
free banking to anyone who kept at
least £10,000 in their current
account.
But customers are now being told
News 15
He advised on L’Oreal’s acquisition
of The Body Shop. He also acted for
George Wimpey on its merger with
Taylor Woodrow.
Breuer played a key role in Linde’s
acquisition of rival BOC, and is cur-
rently advising Chloride following an
offer by Emerson Electric. He was a
prominent figure in KKR’s acquisition
of Boots.
Breuer also led the team which
helped Manitowoc acquire Enodis in
2008. Niklas Kloepfer, who was also
part of the Manitowoc team, is a vice
president at JP Morgan. He has previ-
ously worked at HSBC and Dresdner
Kleinwort.
Allen & Overy advised DS Smith on
the legal side of the deal. Carlyle
worked on the sale in-house, but took
on French law firm Darios Villey for
the legal aspects.
Labour hits
out at Sky
tie-up plans
▲
POLITICS
BY DAVID CROW
LABOUR is gearing up to oppose
Rupert Murdoch’s proposed £12bn
takeover of satellite broadcaster BSkyB.
Shadow culture secretary Ben
Bradshaw has written to opposite
number Jeremy Darroch demanding
he launch an investigation into plans
by News Corp. to acquire the 61 per
cent of Sky it doesn’t already own.
And a group of Labour MPs are back-
ing an early day motion calling for
“greater regulatory scrutiny of the
deal”.
“This House... urges the Government
not to enable further excessive concen-
trations of ownership... and calls on
the UK regulators and European com-
petition authorities to carry out
reviews,” the motion says.
Earlier this month, business secre-
tary Vince Cable told City A.M. there
was “no suggestion” the government
should intervene in the proposed
675p-a-share offer.
ANALYSIS l bSkyb
p 694.50
750 7 Jul
700
650
600
550
12 Apr 30 Apr 21 May 11 Jun 1 Jul
they must pay £150 every quarter to
keep their accounts open unless their
borrowings or investments with the
bank come to £250,000.
The bank said the decision was
down to “the increased costs of pro-
viding a full private banking service”.
A spokesman said the bank was
now “looking for clients with
£500,000 of liquid assets upwards”.
Coutts would not say whether the
new terms affect the Queen, who this
year took £6.5m out of her reserve
funds to boost her civil list income.
 16 News
ICBC to tap market for $6.6bn
▲
PHARMACEUTICALS
BY HARRY BANKS
ICBC, the world’s most valuable
lender, aims to tap investors for up to
$6.6bn, sources said, a day after
Agricultural Bank of China priced the
world’s largest IPO.
AgBank, the last of China’s big
banking institutions to go public, is
exercising an option to expand the
Shanghai portion of its IPO by 15 per-
cent, the bank said yesterday, and if
they do the same for the Hong Kong
Walsh: BA will
fly all planes
▲
AVIATION
BY EMMA SADOWSKI
WILLIE WALSH, British Airways (BA)
chief executive, has vowed the airline
will not lose money if there is a third
strike by cabin crew after guarantee-
ing that 100 per cent of flights will be
in operation.
“If in case of a strike 100 per cent of
flights will, as we believe, be guaran-
teed, British Airways will not only not
lose money it will end up saving,” said
Walsh yesterday.
During the last strike, BA lost more
than £150m equating to a loss of up
to £70m a day.
Walsh’s promise comes as cabin
crew are currently voting on whether
to accept a new pay package proposed
by BA management, with hopes that
a third strike this summer will not
become a reality.
It is expected that the ballot, which
is administered by trade union Unite,
will take up to two weeks to complete
but still presents uncertainty over
whether crew will accept the offer.
Clinton Cards issues profit warning GM sells steering unit to
after a poor performance in Ireland China as it focuses on cars
▲
CONSUMER
SHARES in the UK’s largest greeting
card company Clinton Cards dropped
more than seven per cent yesterday
on news the retailer had issued a
profit warning for the current finan-
cial year.
ask
The company, which has 860 out-
lets, said that since its last statement
in May sales had dipped and it had
yourself
portion, the offer would swell to a
record $22bn (£14.5bn).
Industrial and Commercial Bank of
China (ICBC), which holds the current
record for its 2006 IPO of $21.9bn,
plans to raise more funds by offering
rights to holders of its Hong Kong-list-
ed H-shares, as well as its Shanghai-
listed A-shares, said sources with
direct knowledge of the deal.
That’s a change from ICBC’s earlier
plan, which, according to sources,
had a few months ago mandated
banks to arrange a $7-$10bn Hong
Unite said that it will not make rec-
ommendations to members on how
they should vote, a move that has
been widely welcomed by BA.
But Walsh said that the days when
trade unions could ground airway
companies were gone.
BA, which had been hit particularly
hard by the credit crunch, cut its
flight capacity by roughly 10 per cent,
while flight personnel costs had been
cut by 45 per cent.
“In terms of annual savings the
benefit to the company is £65m per
year. For now,” said Walsh.
ANALYSIS l British Airways
p but European traffic took a hit and
250
199.00
240 7 Jul
230
220
210
200
190
12 Apr 30 Apr 21 May 11 Jun
faced a “disproportionately poor per-
formance” from its 13 Irish stores.
It said sales would be two per cent
lower than previous expectations and
“as a result, the board now expects
that the group adjusted operating
profit for continuing operations will
be similar to last year”.
In March, Clinton described its per-
formance as “encouraging”, prompt-
ing analysts to upgrade profit
Kong stock offering.
One source said the rights offers
still needed approval from the ICBC
board, its shareholders and the regu-
lator, so the timing of the offering
could be by the end of 2010.
Officials at ICBC were not immedi-
ately available for comment.
Big state-owned Chinese banks
including Bank of China are seeking
to replenish funds depleted by last
year’s government-directed lending
spree and to meet higher capital lev-
els demanded by regulators.
1 Jul Aer Lingus’ passenger traffic fell in June while rival KLM’s traffic rose Picture: REUTERS
forecasts to £16m this year, compared
to £12.6m last year.
Numis said the “stubborn under-
performance” of the group’s Irish
stores would generate £1m in losses.
However Clinton added that it it
was not facing serious financial prob-
lems and had “significant headroom
across all of our banking covenants.”
Its shares yesterday fell 7.1 per cent
to close at 36p.
if you believe in giving people a hand up,
not a hand out
if you believe in wealth creation, not simply
taking from the rich to give to the poor and...
if you feel you have a responsibility to make
the world a better place...
Then we’d love to hear from you.
Photo-Me swings into the black
after FSA fine and hefty losses
▲
CONSUMER
PHOTO booth firm Photo-Me
International has swung into profit,
despite previous losses and a
£500,000 Financial Services Authority
(FSA) fine.
In the year to 30 April the group
saw pre-tax profits of £9.3m, com-
pared to £5.1m in losses the previous
year.
Photo-Me declared itself in a much
stronger position, helped by the dis-
AUTOMOTIVE
GENERAL Motors (GM) said yesterday
it has agreed to sell its Nexteer
Automotive unit to a group backed by
the Beijing government to focus on
its core car-making business.
GM said it reached a definite agree-
ment to sell the maker of steering sys-
tems to Pacific Century Motors, a
joint venture between Chinese auto
A smart way to tackle poverty
in the developing world.
Find out more at
www.opportunity.org.uk
CITYA.M. 8 JULY 2010
posal of Imaging Solutions, its loss-
making wholesale photo-processing
labs business.
The firm was recently fined by the
FSA for failing to disclose key infor-
mation to the stock market promptly.
But the latest figures show sales
were up 5.7 per cent and there was
£8.1m cash surplus at year end, com-
pared to net debt of £23.5m in 2009.
Yesterday its London-listed shares
rose 2.75p, or 8.15 per cent, to 36.5p
based on the impressive results.
KLM traffic
up, down at
Aer Lingus
▲
AVIATION
BY EMMA SADOWSKI
AIR FRANCE KLM saw a steady rise in
June passenger numbers, surpassing
Irish rival Aer Lingus which reported
a fall in traffic during the same peri-
od.
Last month Air France KLM flew
6.5m passengers, representing a 4.7
per cent rise in traffic figures. The air-
line said the rise reflected an increase
in demand for air travel while at the
same time demonstrating its prudent
capacity management.
The numbers were boosted by the
growing number of people traveling
to Asia as traffic for the region was up
fell by almost five per cent.
Similarly, Irish rival Aer Lingus said
that the number of short haul passen-
gers fell by almost eight per cent last
month to 849,000, while the airline’s
long haul flights were impacted by a
15.6 per cent drop off in customer
numbers. Overall the airline saw pas-
senger numbers fall 8.6 per cent to
941,000 last month.
parts supplier Tempo Group and the
financing and investing arm of the
Beijing municipal government.
Financial terms of the deal were
not disclosed. GM aims to close the
deal by the end of the year, pending
regulatory approvals. The automaker
had been looking to sell Nexteer after
it bought the business in October
from Delphi, its former parts sub-
sidiary.
CITYA.M. 8 JULY 2010
Lookers eyes record
results boosted by
spare parts division
AUTOMOTIVE
▲
BY KATIE HOPE
CAR dealership Lookers is on course
for record half-year results with the
recent recession boosting demand for
new and used cars, the firm said yes-
terday.
The Manchester-based company
said all its business divisions were
currently performing ahead of plan,
during the first half of the year
despite disruption from January’s
snow.
Lookers, which has 5,500 staff and
122 franchised dealerships selling 32
marques including Vauxhall and
Ford, said its parts distribution busi-
ness, which works with 2,500 suppli-
ers through 20 UK sites, had given it a
“unique position of strength”.
The division is a “counter cyclical
hedge” against conditions in the
Carillion confident
despite challenges
CONSTRUCTION
▲
BY MARION DAKERS
BUILDING and support services
group Carillion said it expected an
increase in earnings in 2010 due to
a strong order book and more gov-
ernment outsourcing, despite chal-
lenging market conditions.
Carillion, which generates much
of its revenue from government
work and public private partner-
ship (PPP) projects, said invest-
ments in PPP continued to
generate “substantial value” and it
expected to maintain a positive net
cash position for the first six
months of 2010. The firm has an
order book of £19.7bn.
“All business sectors are perform-
ing in line with our expectations.
Chinese growth helps PSA Peugeot
Citroen lift first half sales by 16.9pc
▲
AUTOMOTIVE
FRENCH carmaker PSA Peugeot
Citroen posted a 16.9 per cent rise
in first-half sales yesterday, helped
by new models such as the DS3, C3
Picasso and RCZ coupe and strong
growth in China.
Leaving aside sales of completely
knocked-down (CKD) kits – shipped
for assembly in other markets –
sales rose 16.8 per cent to 1.62m
vehicles, Europe’s second-largest
carmaker behind German peer
Volkswagen.
Carmakers have benefited from
wider market, Lookers said, with driv-
ers choosing to repair their existing
cars instead of trading them in for
another vehicle.
Sales volumes of new cars have
grown ahead of the 20 per cent
increase seen across the wider market
while there has also been a “contin-
ued recovery” in demand for new cor-
porate cars – giving Lookers a chance
to improve its market share further.
“We believe the group will deliver
record results for the first half of the
year, giving us confidence that we can
continue to grow the business and
deliver successful results for the full
year,” chief executive Peter Jones said.
The consensus analyst pre-tax profits
forecast for the year as a whole is now
£31.8m – up from the £28.3m seen in
2009. Lookers’ results for the six
months ended 30 June are to be
announced on 18 August.
The order book remains very
strong ... I think very much the hot
news on the emergency budget
was pretty much in line with our
expectations,” said chief executive
John McDonough.
Carillion said it did not expect
government spending cuts to have
a big impact and would likely boost
future revenue as the government
would lean more heavily on private
sector outsourcing to help drive
down costs.
“By the back end of 2011 to 2015
there will be significant opportuni-
ties,” McDonough said.
Last month the FTSE 250 compa-
ny sold its investments in the
Queen Alexandra Hospital PPP
project to HSBC Infrastructure for
£31.3m.
incentive schemes to scrap old cars,
but many of the schemes are fin-
ished or finishing and the second
half was expected to be tough as
economic worries and new tax
measures take their toll on con-
sumers. PSA repeated that it
expected the European car market
to decline by around nine per cent
year-on-year in 2010 and said it
expected to gain market share in
Europe this year.
Peugeot and Citroen brand head
Jean-Marc Gales said June orders,
were “very strong”, and that is like-
ly to be reflected in its results.
BEST OF THE BROKERS
ANALYSIS l BMW
42 €
39.75
41
40
39
38
37
36
35
34
12 Mar 30 Apr 20 May
ANALYSIS l Persimmon
550 p
500
450
400
350
300
12 Mar 30 Apr 21 May
ANALYSIS l BT Group
145 p
140 134.90
7 Jul
135
130
125
120
115
110
105
12 Mar 30 Apr 20 May
To appear in Best of the Brokers email your research to notes@cityam.com
McDonough said about £500m
of Carillion’s contracts in the
pipeline were at the preferred bid-
der stage and therefore still subject
to change, delay or cancellation.
He said organic growth would be
Carillion's focus but that it would
consider making bolt-on acquisi-
tions in Britain, if the right oppor-
tunity came along.
“We’ve got cash on the balance
sheet, we’ve got great growth in
the Middle East and in Canada,”
McDonough said.
Panmure Gordon increased its
target price on the Carillion shares
from 300p to 350p.
“It retains good revenue visibili-
ty, a sound balance sheet and has
an attractive valuation,” Panmure
analyst Andy Brown said in a note.
PSA said the Chinese market will
likely see double-digit percentage
sales growth this year, while Latin
American markets were expected
to post single-digit growth.
Citroen head Frederic Banzet
told a news conference: “China is
the number one priority for
Citroen’s development”. Banzet
said 14 per cent of Citroen sales
this year were in China, up from 10
per cent in 2009.
The carmaker said in April it
expected to post a first-half operat-
ing profit. It is due to release
results on 28 July.
News 17
7 Jul
BMW
Barclays Capital reiterates a “strong buy”
NEWS | IN BRIEF
Total buys Canada’s UTS Energy
Total agreed yesterday to buy UTS
for BMW, based on its new forecasts. Energy for C$1.5bn (£900m) in cash,
BarCap said that it believes that the luxury more than doubling an offer the small
Canadian company spurned 18 months
market provides a safehaven in the volatile ago, as the French major looks to boost
European auto sector, due to its net
its holdings in the Alberta oil sands. In a
exports, strong emerging market sales and bid backed by UTS’s board, Total is offer-
lack of exposure to scrappage schemes. ing C$3.08 a share for the company –
well above the initial C$1.30 hostile bid
9 Jun 29 Jun
Total made in January 2009 and then
PERSIMMON sweetened to C$1.75 three months later
to no avail. UTS will also spin off its
JP Morgan Cazenove said that Persimmon stake in the Frontier and Equinox oil
374.60 indicated yesterday that its half-year oper- sands properties into a new company,
7 Jul
ating margin would be 7.5 per cent and its SilverBirch Energy. The deal, based on a
assessment is that this is not a bad guide 46 per cent premium to UTS’s closing
price on 6 July, gives Total a 20 per cent
for the full-year. JP Morgan issued a “neu- stake in the highly prospective Fort Hills
tral” rating citing the fact that Persimmon mining project controlled by Suncor Energy.
is willing to trade volume for margin.
11 Jun 1 Jul KBW: US bank bailout profitable
A government programme to bail out
BT banks at the height of the financial crisis
has so far turned a profit, according to a
Morgan Stanley gives BT an “overweight”
report by investment bank Keefe,
rating and said that it believes the group’s Bruyette & Woods (KBW). The Capital
shares offer an attractive combination of Purchase Programme, part of the
restructuring potential and new product $700bn (£460.1bn) Troubled Asset
growth and the pension deficit could be Relief Programme, has generated an
average return of 10 per cent on the ini-
moving down given market moves, reduced tial investment in 61 banks that have
benefits and the Crown Guarantee. fully repaid the aid, said the report,
9 Jun 29 Jun issued yesterday. About $137bn, or two-
thirds of the initial government invest-
ment, has been paid back.
| PROMOTION
ENJOY FREE OUTDOOR FILM SCREENINGS AND
WIN CINEMA MEMBERSHIP FOR TWO
T
O celebrate free outdoor screenings Street Square in Holborn.
which conclude this year’s Great This Friday at 7.00pm, fans of London’s
British Summer season, City A.M. is most famous detective, Sherlock Holmes,
offering you the chance to win a fantastic can catch an open-air screening of Guy
joint cinema membership, including Ritchie’s Oscar-nominated film.  All three
complimentary tickets, drinks and many
other special offers to keep you busy
when the Great British Summer season
sites will enhance viewers’ experiences
with refreshments available from a range
of retailers and a popcorn stall, a must for
finishes.
Land Securities is holding FREE film
screenings at three central London
locations: Cardinal Place in Victoria,
all film lovers. Pull up a deckchair, relax al-
fresco style and watch one of these great
films in the sunshine. For full screening
details visit:
Bankside Mix in Southwark and New www.greatbritishsummer10.com
For your chance to win, simply answer the following question;
What colour are the retro Great British Summer caravans?
Orange, Yellow and White
A
Blue, Red and White
B
Purple, Green and White
C
Email your answer and contact number to win@cityam.com
Entry closes Sunday 11th July at midnight,   winner drawn at random from all the correct
entrants and notified on the 12th July; The prize is Everyman cinema membership for two; no
cash alternative. By entering you agree to receive similar information and promotions from
City AM, please add No if you don’t wish to receive. The Editor’s decision is final.
 18 News
London’s bonus culture is already overhauled
ed to be ratified by the European
Council of Ministers later today – is
likely to raise the bar even higher in
some countries. However, many City
firms have already slashed the annual
cash bonus element of workers’ remu-
neration packages while introducing
deferred compensation – such as share
CITY COMMENT options that can only be realised sever-
BEN GRIFFITHS al years down the track, provided per-
formance criteria are met.
Bankers attending a round-table
E
VEN before yesterday’s vote by meeting at a leading law firm this
European Union lawmakers to week were clear: it is the deferral ele-
restrict bankers’ bonuses, City ment of the changes that has most
institutions had been working to upset them. Presumably the require-
address regulatory concerns about the ment to cap the cash element of
role of the bonus culture in the finan- bonuses for those in financial services
cial crisis. The EU legislation – expect- business at 30 per cent will also hurt.
City bank jobs
boost Robert
Walters’ fees
during the last three months as com-
▲
RECRUITMENT
pared to the same period last year,
BY EMMA SADOWSKI while UK fees were up to £11.6m,
A GROWING demand for profession- marking a 36 per cent hike from
als in the financial services sector has 2009. Despite posting a 25 per cent
boosted recruitment giant Robert rise in European fee income, the mar-
Walters’ business after the group ket remains difficult.
posted positive second quarter trad- Analysts say Robert Walters has
ing results. positioned itself well in the down-
Robert Walters’ net fee income for turn.
the first half of the year rose by 45 “We have always maintained that
per cent to £72.3m, with second quar- Robert Walters is well placed to sur-
ter income growth up by 59 per cent vive the downturn in the economic
to £39.7m. cycle; it has good geographical and
Founder and chief executive operational diversity and a strong
Robert Walters said that an accelera- balance sheet,” said Caroline de La
tion in recruitment during the sec- Soujeole at Seymour Pierce.
ond quarter helped to bolster the
group’s financial performance. ANALYSIS l Robert Walters
He said: “Our Asia Pacific business p 231.50
has delivered an outstanding per- 07 Jul
240
formance and we intend to continue
230
growing our office footprint across
the region to build on our market 220
leading position. Our UK business 210
has also experienced increased levels
200
of activity, most notably in the finan-
cial services sector.” 190
Fee income in the Asia Pacific
region almost doubled to £19.5m 26 Apr 24 May 21 Jun
CITY MOVES | WHO’S SWITCHING JOBS
Religare Enterprises
The Indian financial services group has
appointed Stuart Pearce, pictured, and Kathryn
Matthews as independent board directors.
Pearce has over 35 years of experience in the
sector and was previously chief executive and
director general of the Qatar Financial Centre
Authority. He has also worked as chief execu-
tive of UK investment management at HSBC.
Matthews joins from Fidelity, where she was
head of global equities and portfolio strategies.
tions in Asia.
Barclays Capital Koo will be responsible for strength-
Barclays’ star-performing investment ening the M&A business in China, Hong
banking arm has poached Vanessa Koo Kong and Taiwan, having most recently
from Goldman Sachs and James Lim headed up Goldman’s China M&A advi-
from BNP Paribas to boost its opera- sory business. Lim, who was head of
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
The one relief is that there is no
overall cap on bonuses and many
banks have already hiked base salaries
to offset the changes they’ve made.
Timely research from Mercer pub-
lished yesterday highlighted the new
emphasis on base salary and long-term
compensation in the pay mix. The
report analysed data from 39 financial
services firms, of which 66 per cent
were banks and 26 per cent insurance
companies. It found almost all respon-
dents to the survey said they had
changed the weighting of components
of their remuneration packages – 70
per cent have increased base salaries
while decreasing annual cash bonuses.
There are also far fewer guaranteed
bonuses being paid out and 54 per
EU Commission warns governments
should consider hiking the pension age
▲
PENSIONS
COUNTRIES in the European Union
may have to increase the retirement
age to prevent a collapse of their
social security systems as life
expectancy increases and birth rates
fall, the EU executive said yesterday.
Launching a debate on overhauling
pension rules, the European
Commission said pension systems
would come under severe stress in
coming decades.
Asia-Pacific real estate in the invest-
ment banking division at BNP Paribas,
will take up the same role at BarCap.
Bluefin Insurance Services
The Axa-owned insurance broking firm
has appointed Keith Burnham and
Helen Goodey to its real estate team.
Burnham will head up the division
and joins from Aon, while Goodey
becomes an executive director and was
previously at Zurich.
Begbies Traynor
The restructuring specialist has pro-
moted London-based Kirstie Provan to
partner in its insolvency practice.
Provan joined the group in February
last year with a wealth of insolvency,
cent of respondents have introduced
caps or maximums for bonus pools,
rising to 60 per cent for individual pay-
outs. More than 65 per cent now have
a mandatory bonus deferral pro-
gramme, yet just 40 per cent have so
far linked these deferrals to subse-
quent performance. Performance-
based deferrals are more prevalent in
European-based firms with 53 per cent
of respondents using them compared
to North American firms where just 10
per cent were using deferrals.
Measures such as these go some way
to address concerns that a short-term
bonus culture within the financial
services sector encouraged excessive
risk taking and contribute to the glob-
al financial meltdown, Mercer argues.
“Unless people, as they live longer,
also stay longer in employment, or
start contributing to their pension
earlier on in their working life, either
pension adequacy is likely to suffer or
an unsustainable rise in pension
expenditure will occur,” the
Commission said in a report.
The report, sent to 27 governments,
said there were now four people of
working age for every person aged
over 65. But that ratio was expected to
drop to only two for one by 2060
private equity and asset-based lending
experience, having worked at
Landsbanki Commercial Finance.
She has since worked on a number of
high-profile corporate insolvency cases,
including the administration of
Southampton Football Club.
Norton Rose
Mohammed Paracha has rejoined the
law firm as a banking partner in
Bahrain, where he will be deputy head
of Islamic finance.
Paracha joins from Al Salam Bank
Bahrain, where he was an executive
vice president and head of Europe. He
has previously spent three years in
Norton Rose’s London banking team
before moving to Bahrain.
CITYA.M. 8 JULY 2010
Mercer partner Vicki Elliott says:
“Our survey shows that there has been
significant progress in responding to
the regulatory guidance. However,
there is still more work to do to fully
comply with the regulators’ inten-
tions, particularly ensuring that per-
formance measurement is aligned
with the nature and time horizon of
risks.”
The next question for City firms is
how much discretion the FSA – or the
Bank of England once the two become
one – will be able to use when imple-
menting the new rules. The other
issue of whether the changes will
spark a brain drain to the Far East and
Middle East still seems unlikely.
ben.griffiths@cityam.com
London commuters
will be on the
march for years
longer as the pen-
sion age is set to
increase
Picture:
Micha Theiner
/City A.M.
unless pension systems were over-
hauled.
The global economic crisis, fol-
lowed by sovereign debt problems for
some of the countries that use the
euro, has highlighted how vulnerable
the region’s public finances are.
“The choice we face is poorer pen-
sioners, higher pension contributions
or more people working more and
longer,” EU employment and social
affairs commissioner Laszlo Andor
said yesterday.
Edited by Victoria Bates
Atkins
The engineering consultancy has
appointed Phil Malem, the former head
of Sellafield’s Capenhurst decommis-
sioning facility, to lead the development
of its nuclear strategy and positioning
in new markets.
VPhase
The Aim-listed energy saving products
specialist has appointed Vanda Murray,
OBE as its non-executive chairman.
Murray, 49, is also currently a non-
executive director of Carillion, SIG and
the Manchester Airport Group.
She replaces incumbent Adrian
Hutchings, who has decided to step
down as chairman with immediate
effect.
 Markets&Investment
19

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 . . . . . . . . . . . . . . . . . . . . . . . .272.60* +9.50 314.80 216.75 Cobham . . . . . . . . . . . . . . . . . . .223.80 +3.40 278.60 173.20 Investec . . . . . . . . . . . . . . . . . . .454.10 +9.40 565.00 324.25 Sainsbury(J) . . . . . . . . . . . . . . . .344.30* +16.10 373.00 307.60
3i Infrastructure . . . . . . . . . . . . . 112.20* +0.20 115.00 89.35 COLT Group . . . . . . . . . . . . . . . .125.00 –2.60 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .49.25 –0.02 71.75 31.75 Schroders . . . . . . . . . . . . . . . . . 1192.00 –12.00 1450.00 764.00
A.B. Foods . . . . . . . . . . . . . . . . .980.50 +10.00 1045.00 752.00 Compass . . . . . . . . . . . . . . . . . .526.50* +4.00 574.50 307.75 Jardine Lloyd Thompson. . . . . . .538.00 +7.50 604.50 399.00 Schroders N/V. . . . . . . . . . . . . . .983.50 –5.50 1185.00 643.50
Aberdeen Asset Man . . . . . . . . . .125.30 –0.20 155.60 111.00 Cookson . . . . . . . . . . . . . . . . . . .406.50 +7.70 616.00 220.00 Johnson Matthey . . . . . . . . . . .1525.00* — 1814.00 1108.00 Scot. & Sthrn Energy. . . . . . . . . 1177.00 +27.00 1206.00 357.50
Admiral. . . . . . . . . . . . . . . . . . .1445.00 +27.00 1445.00 863.50 Croda Intl . . . . . . . . . . . . . . . . .1069.00 +8.00 1069.00 535.00 Kazakhmys . . . . . . . . . . . . . . . .1038.00 +1.00 1634.00 574.50 Scottish Mortgage. . . . . . . . . . . .559.00 +3.00 623.50 376.00
Aegis . . . . . . . . . . . . . . . . . . . . .106.40 –1.10 137.30 81.50 CSR . . . . . . . . . . . . . . . . . . . . . .374.10 +2.80 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .127.60 +0.50 162.00 98.45
Afren . . . . . . . . . . . . . . . . . . . . . .86.50 +0.85 111.00 48.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .451.30* +8.50 539.00 279.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .218.30 +3.10 255.00 179.90 SEGRO . . . . . . . . . . . . . . . . . . . .269.00 +7.40 403.10 244.00
African Barr Gold . . . . . . . . . . . .586.50 +2.50 685.00 520.50 Dana Petroleum . . . . . . . . . . . .1409.00 –44.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .131.00 — 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .559.00 –4.50 656.50 394.30
Aggreko . . . . . . . . . . . . . . . . . .1462.00 +25.00 1496.00 492.50 Davis Service . . . . . . . . . . . . . . .368.00 +3.00 442.30 311.25 Lancashire Hldgs . . . . . . . . . . . .515.50 +2.00 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1250.00* +21.00 1310.00 921.00
Alliance Trust . . . . . . . . . . . . . . .304.90* +2.50 352.70 260.25 De La Rue . . . . . . . . . . . . . . . . . .920.00 –23.50 1021.00 808.50 Land Securities . . . . . . . . . . . . . .577.00* +14.00 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .371.00 +11.60 426.50 285.25
AMEC . . . . . . . . . . . . . . . . . . . . .847.50 +4.00 891.00 603.50 Debenhams . . . . . . . . . . . . . . . . .60.00 –0.05 91.95 51.95 Legal & General . . . . . . . . . . . . . .80.80 +2.00 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1381.00 –5.00 1526.00 818.00
Amlin . . . . . . . . . . . . . . . . . . . . .404.80 +6.10 428.50 291.00 Derwent London . . . . . . . . . . . .1267.00 +32.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .58.19 +1.23 75.58 40.42 Smith & Nephew . . . . . . . . . . . . .578.00 –9.00 700.50 435.25
Anglo American . . . . . . . . . . . .2365.50 +5.00 3015.50 1557.50 Dexion Absolute . . . . . . . . . . . . .137.90 +0.20 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . .106.50 +0.70 149.10 74.50 Smiths . . . . . . . . . . . . . . . . . . .1079.00 +2.00 1186.00 677.50
Antofagasta . . . . . . . . . . . . . . . .823.50 +5.00 1100.00 568.50 Diageo . . . . . . . . . . . . . . . . . . .1061.00 +13.00 1176.00 857.00 London Stk Exchange . . . . . . . . .574.00 –1.00 949.50 540.50 SOCO Intl . . . . . . . . . . . . . . . . . .407.20 +8.90 444.60 380.60
Aquarius Platinum . . . . . . . . . . .294.20 –20.60 490.00 172.75 Dimension Data . . . . . . . . . . . . . .95.00 +1.20 105.00 54.75 Lonmin . . . . . . . . . . . . . . . . . . .1426.00 — 2198.00 950.00 Spectris . . . . . . . . . . . . . . . . . . .762.00 — 928.00 512.50
ARM Holdings . . . . . . . . . . . . . . .280.60 +7.60 362.40 116.00 Domino’s Pizza . . . . . . . . . . . . . .400.00 — 401.40 202.00 Man . . . . . . . . . . . . . . . . . . . . . .217.10* –1.10 373.60 199.60 Spirax-Sarco Eng . . . . . . . . . . .1478.00 +32.00 1591.00 809.00
Arriva . . . . . . . . . . . . . . . . . . . . .765.50 +0.50 782.50 378.50 Drax . . . . . . . . . . . . . . . . . . . . . .389.80 +3.80 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .343.40* –9.30 412.70 303.75 Spirent Comms . . . . . . . . . . . . . . 114.20 +1.30 127.80 54.50
Ashmore . . . . . . . . . . . . . . . . . . .243.80 +2.00 311.20 183.25 DSG Intl . . . . . . . . . . . . . . . . . . . .25.95 –0.45 39.75 19.25 Meggitt . . . . . . . . . . . . . . . . . . . .310.40 +2.40 331.00 151.75
Astrazeneca . . . . . . . . . . . . . . . 3119.00 –24.00 3262.00 2644.00 Dunelm . . . . . . . . . . . . . . . . . . . .340.60 +5.00 438.40 202.50 Melrose . . . . . . . . . . . . . . . . . . .218.20 +4.10 251.50 90.00 Sports Direct Intl . . . . . . . . . . . . . 110.20 +1.10 134.00 72.50
Atkins(Ws) . . . . . . . . . . . . . . . . .674.00 –1.00 747.00 532.50 Easyjet . . . . . . . . . . . . . . . . . . . .404.20 +4.60 499.90 260.00 Mercantile IT . . . . . . . . . . . . . . . .890.00* +8.00 1002.00 726.00 SSL Intl . . . . . . . . . . . . . . . . . . . .832.00 –0.50 893.50 521.00
Autonomy Corp . . . . . . . . . . . .1848.00 +16.00 2012.00 1121.00 Edinburgh Inv Tst . . . . . . . . . . . .388.50* +1.50 412.40 298.50 Michael Page Intl. . . . . . . . . . . . .368.60 +3.00 461.50 218.50 St James’s Place . . . . . . . . . . . . .229.00 +8.00 296.90 172.25
Aveva . . . . . . . . . . . . . . . . . . . . 1199.00* +14.00 1237.00 666.50 Electrocomponents . . . . . . . . . . .216.50* +5.30 245.00 134.25 Micro Focus . . . . . . . . . . . . . . . .432.70 –8.00 550.00 300.90 Stagecoach. . . . . . . . . . . . . . . . .181.40 +1.60 204.90 123.50
Aviva . . . . . . . . . . . . . . . . . . . . .333.10 +2.70 474.00 274.75 EnQuest . . . . . . . . . . . . . . . . . . .101.90 +3.15 112.70 87.35 Millen & Copthorne . . . . . . . . . . .417.70 +8.00 496.30 227.75 Standard Chartered . . . . . . . . . .1693.50 +33.00 1847.00 1119.00
Babcock International . . . . . . . . .619.00* –1.00 660.50 448.50 Essar Energy . . . . . . . . . . . . . . .454.20 –5.80 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .238.60 +3.30 281.70 165.25 Standard Life . . . . . . . . . . . . . . .182.40 +2.40 237.00 170.00
BAE Systems . . . . . . . . . . . . . . .317.70 +2.90 389.90 294.20 Eurasian Nat Res . . . . . . . . . . . .852.00 –10.50 1276.00 632.00 Mitchells & Butlers . . . . . . . . . . .290.50 +2.50 343.90 228.30 SuperGrp . . . . . . . . . . . . . . . . . .805.00 +20.00 805.00 499.00
Balfour Beatty . . . . . . . . . . . . . . .242.20 –0.90 328.85 228.60 Euromoney Inst Inv . . . . . . . . . . .575.50* — 630.00 218.25 MITIE . . . . . . . . . . . . . . . . . . . . .215.50* +2.40 281.70 198.70 TalkTalk . . . . . . . . . . . . . . . . . . .120.20 +2.50 147.10 106.60
Barclays . . . . . . . . . . . . . . . . . . .291.60 +17.00 394.25 253.40 Experian . . . . . . . . . . . . . . . . . . .589.00* +1.50 664.50 437.50 Mondi . . . . . . . . . . . . . . . . . . . . .386.00 +2.90 488.00 187.50 Talvivaara Mining . . . . . . . . . . . .378.10 –5.90 501.50 321.50
Barratt Development . . . . . . . . . . .98.80 –0.10 193.31 89.10 F&C Comm Prop . . . . . . . . . . . . . .93.00 +0.75 96.80 73.50 Monks Inv Tst . . . . . . . . . . . . . . .283.00 +1.80 321.20 222.00 Tate & Lyle . . . . . . . . . . . . . . . . .484.10* +4.20 509.00 284.75
BBA Aviation . . . . . . . . . . . . . . .188.80 +0.50 220.00 109.00 Ferrexpo . . . . . . . . . . . . . . . . . . .253.90 –0.20 396.20 112.00 Morrison Wm . . . . . . . . . . . . . . .279.70 +4.70 306.30 241.00 Taylor Wimpey . . . . . . . . . . . . . . .26.81 +0.06 54.90 24.29
Beazley. . . . . . . . . . . . . . . . . . . . 117.40 +1.90 124.80 95.25 FirstGroup . . . . . . . . . . . . . . . . .374.70 +8.10 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .835.00 +3.50 893.50 593.50 Telecity . . . . . . . . . . . . . . . . . . . .377.00 –17.00 455.00 298.00
Bellway. . . . . . . . . . . . . . . . . . . .600.00 +3.00 927.50 580.50 Foreign & Col Inv Tst. . . . . . . . . .264.30 +0.70 297.20 210.25 National Express. . . . . . . . . . . . .224.00 +2.70 256.80 135.86
Berkeley . . . . . . . . . . . . . . . . . . .818.00 +10.50 989.50 735.00 Fresnillo . . . . . . . . . . . . . . . . . .1032.00 +35.50 1115.00 438.00 National Grid . . . . . . . . . . . . . . .502.00* +11.70 607.65 469.37 Templeton Emrg Mkts . . . . . . . . .531.00* –4.50 598.00 349.50
BG . . . . . . . . . . . . . . . . . . . . . .1075.50 +15.00 1248.00 966.90 G4S . . . . . . . . . . . . . . . . . . . . . .267.00 –1.60 285.70 208.50 Next . . . . . . . . . . . . . . . . . . . . .2075.00 –2.00 2360.00 1501.00 Tesco . . . . . . . . . . . . . . . . . . . . .392.15* +1.15 454.90 347.40
BHP Billiton . . . . . . . . . . . . . . .1789.00 +12.00 2346.00 1274.50 Genesis Emerging Mkts Fd . . . . .453.50 –2.50 484.00 370.00 Northumbrian Water . . . . . . . . . .318.30 +8.40 319.30 219.90 Thomas Cook . . . . . . . . . . . . . . .181.30 –3.90 277.20 172.30
BlackRock Mining . . . . . . . . . . . .539.00 –4.50 654.50 346.00 GKN . . . . . . . . . . . . . . . . . . . . . .121.30 +1.80 155.00 71.75 Old Mutual . . . . . . . . . . . . . . . . .109.30 +2.20 127.20 74.60 Tomkins . . . . . . . . . . . . . . . . . . .225.80 –0.90 261.10 141.75
BlueBay . . . . . . . . . . . . . . . . . . .297.30 –4.40 393.00 188.00 GlaxoSmithKline . . . . . . . . . . . . 1117.50* –5.50 1347.00 1064.50 Partygaming . . . . . . . . . . . . . . . .230.30 –1.20 339.70 205.80 Travis Perkins . . . . . . . . . . . . . . .771.00 –6.00 915.00 539.00
Booker . . . . . . . . . . . . . . . . . . . . .41.06* +0.06 49.50 33.00 Great Portland Estates . . . . . . . .289.00 +6.10 332.10 203.75 Pearson . . . . . . . . . . . . . . . . . . .881.50 –4.50 1069.00 574.00 TUI Travel . . . . . . . . . . . . . . . . . .216.30 +1.50 313.90 202.30
BP . . . . . . . . . . . . . . . . . . . . . . .362.05 +16.55 658.20 296.00 Greene King . . . . . . . . . . . . . . . .428.90 +2.40 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .571.50 +10.00 572.50 434.40 Tullett Prebon . . . . . . . . . . . . . . .332.60 +5.10 436.20 261.20
Brit Insurance . . . . . . . . . . . . . . .925.00* +18.00 975.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .513.50* +12.00 562.50 307.00 Persimmon . . . . . . . . . . . . . . . . .374.60 +4.40 534.50 340.20 Tullow Oil . . . . . . . . . . . . . . . . . 1108.00 +25.00 1375.00 834.50
British Airways . . . . . . . . . . . . . .199.00 +3.60 255.80 117.30 Halma . . . . . . . . . . . . . . . . . . . . .277.20 +0.60 284.90 184.00 Petrofac . . . . . . . . . . . . . . . . . .1209.00 +15.00 1294.00 633.50 UK Commercial Prop. . . . . . . . . . .80.00 +0.40 84.90 62.25
British Amer. Tob . . . . . . . . . . .2172.50 +1.00 2335.50 1676.00 Hammerson . . . . . . . . . . . . . . . .347.40 +4.90 460.30 277.00 Petropavlovsk . . . . . . . . . . . . . . 1194.00 +2.00 1370.00 516.50 Ultra Electronics . . . . . . . . . . . .1564.00 +8.00 1678.00 1082.00
British Empire Tst . . . . . . . . . . . .414.20 +1.20 467.90 338.50 Hargreaves Lansdown . . . . . . . .325.50 –6.90 387.00 197.25 Premier Farnell . . . . . . . . . . . . . .223.00 +9.00 252.60 122.25 Unilever . . . . . . . . . . . . . . . . . .1798.00 +11.00 2024.00 1422.00
British Land . . . . . . . . . . . . . . . .453.10 +3.10 532.00 353.00 Hays . . . . . . . . . . . . . . . . . . . . . . .90.55 –0.50 119.00 80.00 Premier Oil . . . . . . . . . . . . . . . .1403.00 +48.00 1431.00 984.00 United Utilities . . . . . . . . . . . . . .538.50* +10.50 575.00 429.00
Britvic. . . . . . . . . . . . . . . . . . . . .498.00 +4.50 499.00 286.25 Henderson . . . . . . . . . . . . . . . . .121.90 — 157.80 87.75 Provident Financial . . . . . . . . . . .858.50 +17.50 986.00 763.00
Brown(N.) . . . . . . . . . . . . . . . . . .248.60* +5.50 284.30 204.25 Heritage Oil. . . . . . . . . . . . . . . . .425.00 +11.00 587.00 368.70 Prudential . . . . . . . . . . . . . . . . . .501.50 –1.50 665.00 350.25 Utd Business Media . . . . . . . . . .502.00 –2.00 579.50 364.75
BSkyB . . . . . . . . . . . . . . . . . . . .694.50 –0.50 732.00 462.75 Hikma Pharma . . . . . . . . . . . . . .715.00 +17.00 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .351.00 +8.10 356.40 197.75 Vedanta Resources . . . . . . . . . .2218.00 –4.00 2967.00 1264.00
BT . . . . . . . . . . . . . . . . . . . . . . .134.90 +4.70 151.00 99.50 Hiscox . . . . . . . . . . . . . . . . . . . .348.30 +1.00 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . .124.20 +2.50 179.10 113.90 Victrex . . . . . . . . . . . . . . . . . . . 1136.00* +33.00 1193.00 553.50
Bunzl . . . . . . . . . . . . . . . . . . . . .674.50 +5.50 784.50 510.00 Hochschild Mining . . . . . . . . . . .314.50 +6.60 370.60 220.00 Randgold Resources. . . . . . . . .6285.00 +100.00 6600.00 3351.00 Vodafone . . . . . . . . . . . . . . . . . .141.90* +1.65 153.80 111.90
Burberry . . . . . . . . . . . . . . . . . . .758.50 –10.50 815.50 403.25 Home Retail . . . . . . . . . . . . . . . .225.90* +2.90 336.50 208.50 Reckitt Benckiser . . . . . . . . . . . 3110.00 –3.00 3667.00 2686.00 VT . . . . . . . . . . . . . . . . . . . . . . .795.00† — 799.00 416.00
Cable & Wire Comms . . . . . . . . . .59.00* +0.55 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2075.00* –1.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .510.00 +9.50 548.00 403.75 Weir . . . . . . . . . . . . . . . . . . . . . 1128.00 +13.00 1183.00 437.50
Cable & Wire Wwide . . . . . . . . . . .87.60* +0.95 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .614.70* –1.20 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .70.90 — 125.50 61.00 WH Smith . . . . . . . . . . . . . . . . . .417.00 +3.20 551.00 396.00
Cairn Energy. . . . . . . . . . . . . . . .441.40 +7.50 448.60 306.80 Hunting . . . . . . . . . . . . . . . . . . .464.00 +10.60 659.50 377.00 Rentokil Initial . . . . . . . . . . . . . . .107.10 +1.70 140.20 82.25 Whitbread . . . . . . . . . . . . . . . . .1370.00* –18.00 1645.00 778.50
Caledonia Invs . . . . . . . . . . . . .1600.00 — 1759.00 1495.00 ICAP . . . . . . . . . . . . . . . . . . . . . .415.00 –1.80 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .70.00 +1.00 99.15 58.45 William Hill . . . . . . . . . . . . . . . . .173.70 –0.20 217.80 160.50
Capita . . . . . . . . . . . . . . . . . . . . .736.00 –3.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .462.40 +19.80 462.40 261.25 Rexam . . . . . . . . . . . . . . . . . . . .295.80 –1.50 331.20 222.50 Witan Inv Tst . . . . . . . . . . . . . . . .426.80 +4.80 487.00 329.50
Capital & Counties . . . . . . . . . . .108.90 +1.40 125.40 99.60 Imagination Tech Gp . . . . . . . . . .291.90 +14.90 311.60 132.50 Rightmove . . . . . . . . . . . . . . . . .616.50 –8.00 729.00 334.00 Wolseley . . . . . . . . . . . . . . . . . .1359.00 –3.00 1742.00 1026.00
Capital Shopping Centres . . . . . .313.60 +7.30 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .697.00 +8.00 756.50 275.25 Rio Tinto . . . . . . . . . . . . . . . . . .3036.00 –13.50 4104.00 1822.00
Carillion . . . . . . . . . . . . . . . . . . .314.20 +0.30 361.90 244.00 Imperial Tobacco. . . . . . . . . . . .1882.00 — 2159.00 1575.00 RIT Capital Partners . . . . . . . . .1204.00 +25.00 1204.00 890.00 Wood Group (John). . . . . . . . . . .344.30 +9.40 411.70 231.25
Carnival . . . . . . . . . . . . . . . . . .2182.00 –3.00 2937.00 1574.00 Inchcape. . . . . . . . . . . . . . . . . . .255.90 –5.90 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .566.00 +9.00 631.50 346.50 WPP . . . . . . . . . . . . . . . . . . . . . .629.50 –1.00 744.00 380.50
Catlin . . . . . . . . . . . . . . . . . . . . .355.00 +6.30 380.50 284.75 Informa . . . . . . . . . . . . . . . . . . . .356.10 — 439.40 217.75 Rotork . . . . . . . . . . . . . . . . . . .1330.00* +20.00 1482.00 779.50 Xstrata . . . . . . . . . . . . . . . . . . . .909.40 +3.60 1344.50 555.10
Centamin Egypt . . . . . . . . . . . . .152.60 –2.70 174.75 77.86 Inmarsat . . . . . . . . . . . . . . . . . . .731.00 +11.00 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .42.83 +1.92 58.95 28.25 Yell Group. . . . . . . . . . . . . . . . . . .26.20 +0.44 86.00 21.00
Centrica . . . . . . . . . . . . . . . . . . .307.50 +8.30 320.00 212.50 Intercontl Hotels . . . . . . . . . . . . 1100.00 +16.00 1244.00 584.50 Royal Dutch Shell A . . . . . . . . .1679.00 +8.50 2068.50 1431.00 LONDON TOP 250 BY MARKET CAPITALISATION
Charter Intl . . . . . . . . . . . . . . . . .642.00 +9.00 855.50 406.50 Intermediate Capital . . . . . . . . . .259.20 +0.90 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1603.00 +12.50 1997.50 1437.00
Chemring . . . . . . . . . . . . . . . . .2961.00 –31.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1521.00 — 1576.00 1024.00 RSA Insurance . . . . . . . . . . . . . .122.50 +2.00 142.00 113.10 * Ex-Dividend † Suspended
Chloride Group . . . . . . . . . . . . . .369.50 –2.70 390.50 129.00 Intl Power . . . . . . . . . . . . . . . . . .310.00 +9.30 354.00 231.00 SABMiller . . . . . . . . . . . . . . . . .1893.00 +18.00 2090.00 1210.00
Close Bros . . . . . . . . . . . . . . . . .686.50 –0.50 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .252.40* –3.10 350.30 212.25 Sage . . . . . . . . . . . . . . . . . . . . . .231.40 +3.30 260.50 167.20 www.interactivedata.com

FTSE is boosted by banks as State Street profit

stress test fears begin to ease upgrade lifts stocks
US blue chips were up 1.5 per cent underlying quarterly sales but saw cent, to 1,060.27.
THELONDON by London’s close, recovering from a
late sell-off in the previous session
its rate of improvement slow a little,
and it joined rivals in sounding cau- THENEW YORK The Nasdaq Composite Index
advanced 65.59 points, or 3.13 per

REPORT as financials pushed higher, led by

State Street.
“We were looking very oversold
tious about the consumer outlook.
M&S was also dented by a down-
beat note from RBS, which initiated
REPORT cent, to 2,159.47.
It was the indexes’ biggest percent-
age advance since 27 May.
on everything ... and I guess in the coverage on the stock with a “sell” The KBW bank index climbed 5.6

B U
RITAIN’S leading share index absence of any bad news we have rating. Clothing retail peer Next lost S stocks logged their best one- per cent, while State Street rivals
ended higher after a choppy had a bit of a spike higher,” said 0.1 per cent, with RBS starting cover- day gain in about six weeks yes- Northern Trust rose 6.9 per cent to
session yesterday, driven by a David Morrison, of GFT Global. age on it with a “hold”. terday after a bullish forecast $49.14 and Bank of New York Mellon
recovery in banking stocks on Integrated oil was the best per- And luxury goods group Burberry from financial company State was up 6.4 per cent to $26.32.
reassuring comments from US peer forming FTSE 100 sector, boosted by shed 1.4 per cent as JPMorgan Street fuelled optimism about the European banks also rallied on
State Street and an easing of stress strong gains from BP, up 4.8 per Cazenove trimmed estimates in a coming earnings season and helped optimism most would pass the
test fears. cent as investors anticipated that preview of an upcoming trading the S&P 500 break above a major European banking stress tests, giving
At the close, the FTSE 100 index potential foreign investors could pay statement, and with the stock trad- resistance level. a boost to the wider market.
was 49.82 points higher, or up 1.0 a premium for a stake in the oil ing ex-dividend. State Street shares closed 9.9 per- When the benchmark S&P 500
per cent, at 5,014.82, its high for the major. Pharmaceutical stocks were the cent higher at $36.63 after the asset index broke through 1,040, it fuelled
day, having swung back from a ses- BP’s chief executive, Tony biggest drag on the FTSE 100 index, manager and custody firm said quar- more buying by those who had put
sion low of 4,891.9. Hayward, met with representatives with the sector’s defensive attrac- terly earnings would far exceed expec- on short positions. The 1,040 level was
Banks fuelled the blue-chip turn- of the Abu Dhabi Investment tions out of favour as investor’s risk tations, providing a lifeline to viewed as a resistance level to further
around, with the sector recovering Authority on Wednesday, a UAE offi- appetite returned, with AstraZeneca investors after several weeks of dismal gains, according to Todd Salamone,
from earlier falls following an cial source said. the worst off, down 0.8 per cent. economic reports. vice president of research at
upbeat outlook statement from BP’s peers also gained, helped by a Bank stocks led the way, but Schaeffer’s Investment Research.
State Street, and with optimism firmer crude price CLc1, with Royal ANALYSIS l FTSE investors also scooped up industrial “That creates a very crowded posi-
that impending European stress Dutch Shell and BG Group up 0.5 6,000 5,014.82 and technology shares. tion that is very vulnerable to an
07 Jul
tests may not be as bad as feared. and 1.4 per cent, respectively. 5,800 “There is some confidence now unwind, and I think we’re seeing that
Barclays was the top FTSE 100 Food retailer J Sainsbury closed 5,600
that there will be more positive sur- today,” he said.
gainer, up 6.2 percent, while Royal up 4.9 per cent on talk of stake prises than negative during the earn- The S&P 500 closed around 1,060,
Bank of Scotland added 4.7 per cent. building by 26 per cent shareholder 5,400 ings season,” said Marc Pado, US the next resistance level that could
State Street, the world’s second- and former suitor the Qatar 5,200 market strategist at Cantor Fitzgerald prevent the index from rising further
largest custody bank, forecast its sec- Investment Authority. 5,000
& Co in San Francisco. today.
ond-quarter operating earnings Elsewhere on the high street, The Dow Jones industrial average The index has reached the 23.6 per
would beat analysts’ expectations, Marks & Spencer was the top FTSE 4,800 rose 274.66 points, or 2.82 per cent, to cent retracement of the move from its
which reinforced hopes of strong 100 faller, down 2.6 per cent as it 4,600 10,018.28. The Standard & Poor’s 500 2010 high in April to its year low hit
earnings from fellow financials. posted a third consecutive rise in 12 Apr 30 Apr 21 May 11 Jun 1 Jul Index gained 32.21 points, or 3.13 per last week.
 20 Investment | Listed Products CITYA.M. 8 JULY 2010

Understanding
exposure to
counterparty
risk is crucial
It’s worth knowing the providers engage in securities lending
to provide added returns and minimise
how your ETF works, the impact of fees on performance.
And with the spectre of a banking crisis
writes Jessica Mead in Europe looming, counterparty worries
are back in investors’ and regulators’
minds. The Bank of England turned the
spotlight on these products in its latest

R
ISK is an acceptable, even a wel-
comed part of trading. Every trade
comes with some risk attached; it’s
just a case of knowing what the
potential problems are and being comfort-
able with them.
But as the financial crisis showed, pin-
pointing where the risk lies is not always
so straightforward – even big institutions
didn’t always understand the full extent of
their exposures. Consequently, it is worth
investors taking some time to understand
how products work and find out their
exposure. Exchange-traded products (ETPs)
are no exception given that they are often
backed by large investment banks and that
Financial Stability Report (FSR) published
last month. In the FSR, the Bank noted that
some of its contacts in the financial mar-
kets have questioned the transparency over
the securities lending part of some ETFs,
“One risk is that in the event of failure of
the firm providing the ETF, the ETF
investor could end up holding something
other than the intended index exposure
and possibly face liquidity constraints on
exiting their investment. Given the unfor-
tunate developments in the securities
lending markets in the run up to the cur-
rent crisis, this should not be under
emphasised,” the FSR said.
Swap-based funds, which use total
return swaps to gain exposure to an index,
have counterparty credit exposure embed-
ded in the funds through the various
derivative transactions, the report added.
So how do ETF providers try to mitigate
the risk of counterparty exposure? With
physically-backed exchange-traded funds,
such as the range offered by BlackRock’s
iShares, you only have counterparty risk
with BlackRock and any institutions that
are involved in securities lending.
Nizam Hamid, head of sales strategy at
iShares, says: “In the case of an ETF Know what supports
provider going bankrupt the investor your ETF
would have direct access to those underly-
ing assets, which are all segregated in a Picture: GETTY
completely different account. You would
have a choice of either gaining access to
the underlying securities via an in specie
redemption or you could appoint another
manager.” An in specie redemption is
where you get access to the underlying
assets.
In terms of its lending, Hamid says that

Income is looking
exceedingly good
Dividend yields are The investment case for income invest-
ing is compelling. As UBS points out,
worth going long for, equity yields look extremely attractive
compared to other asset classes. It is the
only class to offer a yield above its 10-year
says Kathleen Brooks average. Also equity yields are above bond
yields, which has happened only three
times in the last 31 years.

I
N AN otherwise gloomy week for
economic news – firstly Europe is in
crisis, next the US and China are
having trouble sustaining their
growth rates – a ray of sunshine has
emerged for equity investors. Dividends
are set to be big for the next 12 months,
even without BP, which has been forced
to suspend its dividend after the Gulf of
Mexico oil spill.
According to Evolution Securities, divi-
dend yields will be 3.79 per cent in the
UK in the next 12 months and 4.04 per
cent in Europe, excluding the UK. But it
is dividend growth rates that are particu-
larly impressive. Analysts at Evolution
forecast growth of 9.42 per cent in the UK
and 10.94 in Europe ex-UK.
So what is driving this dividend give-
away? As analysts at UBS succinctly put
it, we are living in a period of “equity sur-
pluses in a world of deficits”. Even
though the economy may have lost its
way in recent months, companies are in
good shape. They have been growing
profits and amassing cash flow surplus-
es. But because of the uncertain macro
outlook, firms are less inclined to spend
this excess cash on growing their busi-
nesses, instead choosing to distribute it
to shareholders.
But dividend futures on the Eurostoxx
50 currently show that dividends will be
lower over the next three years then they
were in 2008-2009, the peak of the finan-
cial crisis.
But futures are too pessimistic, says
UBS, and they don’t seem to be taking
into account the strong financial posi-
tion of companies. As the chart shows,
cash held by companies’ – as a percentage
of assets – is at its highest level since
2003, the start of the last business cycle,
and debt levels are falling. Dividend dis-
tributions are dependent on a company’s
earnings, so strong balance sheets are
vital for income investors.
But what is the best way to get expo-
sure? Simply purchasing a stock that pays
a dividend is a good start, but if you want
more exposure then check out dividend
yield exchange-traded funds (ETF). These
ETFs screen stocks based on their divi-
dend potential. For example, the iShares
FTSE UK Dividend Plus Index only
includes stocks that are the highest divi-
dend payers. Rima Haddad, ETFX product
specialist at ETF Securities, notes that
some ETFs will distribute dividends as
income to investors, while others will
reinvest it, which will boost the total
return.
Companies can sometimes cut their Pharma is a top So if you want something to perk you
dividend, as proven by BP, so investing in dividend payer up during what is set to be a gloomy few
an ETF gives you more diversified expo- months for asset markets, income could
sure, adds Haddad. If you are only invest- be the perfect tonic.
ing in one physical stock then you have
considerable risk that the company may ANALYSIS l Cash on corporations' books, as a percentage of total assets
not pay out, whereas if you invest in an
ETF the risk is diluted since it will 10.5%
include multiple companies.
It can also be worth investing in specif-
ic sectors since some are bigger dividend 9.5%
payers than others. According to data
from Lipper, the fund research firm, the 8.5%
pharmaceuticals sector has the highest
dividend yield in the FTSE 350. Combined
with oil and gas, mobile telecoms, multi- 7.5% Europe
utilities and general financials, these sec- UK
tors pay 45 per cent of all income on the Source: Thomson Datastream, UBS estimates
6.5%
FTSE 350. 2003 2004 2005 2006 2007 2008 2009 2010E 2011E
CITYA.M. 8 JULY 2010
iShares overcollateralises and only
accepts G10 government bonds and liq-
uid equities. “We test for the liquidity of
the equities that we take on board and if
they are not liquid then we won’t accept
them. We review the value of collateral
on a daily basis to make sure that we are
always fully covered.” For bonds, iShares
requires 103 per cent collateral and for
equities it is 112 per cent. It also moni-
tors the credit risk of its counterparties
24 hours a day.
With a swap-based ETF, the worst-case
scenario would be a maximum loss of 10
per cent of the ETF’s net asset value
(NAV), which is the regulatory limit to
the swap’s exposure. However, db x-
trackers’ Manooj Mistry says that in prac-
Source: Bank of England
tice, there is a buffer that has increased
from 2-3 per cent a few years ago to 5 per
cent today. With its fixed income ETFs,
db x-trackers resets the swap exposure
every time it reaches 5 per cent. With its
equity ETFs and alternative ETFs it fol-
lows the over-collateralised approach
and demands 105 per cent of the fund’s
NAV. This was introduced in February
2009 as a result of people’s concerns
about potential counterparty exposure,
explains Mistry.
More recently, some ETF providers
such as ETF Securities (on its equity and
commodity platform ETFX) and Source
have started to offer multi-counterparty
exposure whereby the swaps are backed
by a number of banks. This disperses
exposure further and while providers
are not obliged to spread exposure even-
ly across the counterparties, Source does
provide investors with a weekly sheet
detailing its exposure to each counter-
party. The idea is that, should one coun-
terparty default, the swap can be
transferred to another backer.
It might seem time-consuming but
understanding where your risk lies is,
and what would happen in a worst case
scenario is important. If you have learnt
nothing else over the past few years, it is
to assume that nothing is impossible.
LISTED PRODUCT NEWS
VERITY PUGH
ETCs are now available for the Indian rupee
Investment | Listed products 21
ANALYSIS l Cash flows for a swap-based ETF Gold is a buy on dips
Collateral Picture: GETTY
basket
Cash Collateral basket
return (fixed)
Cash Cash Euribor
Market Total Return Swap
Investor maker ETF counterparty
Shares Shares Index
return
Euribor
Collateral basket
return (fixed)
Asset swap
counterparty
THE
TIPSTER
GOLD IS ON THE BACK
FOOT BUT NOT FOR LONG
G
OLD has sold off sharply although
rather than the usual risk appetite
explanation, fingers are pointing
towards central banks offloading the
asset to the Bank of International
Settlements. However, with the risk a dou-
ble-dip still looming, there's no shortage of
reasons why the foray below $1,200/ per oz
will be short lived. The current IG Index gold
price is $1,195.36-$1,195.86.
Sir Terry Leahy’s departure from retail
giant Tesco may have caused concern
amongst investors but Amazon’s announce-
ment that it will start selling groceries is
unlikely to affect Tesco in any meaningful
way. Supermarket websites are, by and
large, extremely comprehensive and have
been adopted by many thousands of cus-
tomers, so they should be able to withstand
competition from the online retailer.
Analysts certainly aren't short of criticism
in their assessment of the move. As one
said of Amazon, "I think this is slightly
mad". The current IG Index price on Tesco
is 392.1p-392.9p and the current IG Index
price on Amazon is $111.23-$111.34.
The recent rebound in risk appetite has
seen gold pull back from its recent highs.
Silver also had a good run during the
recent bout of market turbulence, but it has
lagged behind gold due to its dual purpose
as being an industrial as well as a precious
metal. However like gold, it should find sup-
port on dips around the $17.00 area. CMC
Markets’ spread for silver is $17.70-$17.75.
The dollar index has been in decline
since reaching a high last month. This could
signal further weakness. Capital Spreads
quotes a price of 84.410-84.440 for the
September contract.
Associated British Foods fell back yes-
terday after gaining nearly 2.5 per cent on
Tuesday ahead of today’s third-quarter rad-
ing update. Investec raised its target price
for the company from £10.60 to £10.80
thanks to continued growth in Primark,
which continues to perform strongly.
ShortsandLongs.com has a rolling spread of
962.5p-965.5p.
Kathleen Brooks
ETF SECS ROLLS OUT ETCS TO GERMANY LEVERAGED AND SHORT ETPS IN FAVOUR NET INFLOWS INTO ETFS LAST WEEK
ETF Securities has extended its euro-based Exchange-traded products (ETPs) offering ETFs based on STOXX Europe 600 sectors
exchange-traded currencies (ETCs) offering leveraged or short exposure saw turnover have seen $539.9m of net outflows year-to-
to the German stock exchange this week, giv- surge 40 per cent between 24 June and 1 date, the BlackRock weekly net flows report
ing further flexibility to European investors – July on the previous week, according to for the week ending 2 July showed. But last
they were first listed on the LSE in November iShares’ new weekly European ETP trading week they saw $103m of net inflows, with the
2009. They now include eight euro-based report. These non delta 1 products saw most inflows ($46.9m) into the Industrial
ETCs with long or short exposure to the US turnover of €2.46m, ranking just behind Goods & Services sector. So far this year, the
dollar, Australian dollar, Canadian dollar and regional ETPs, which had turnover of nearly media sector ETFs have experienced the
New Zealand dollar. ETF Securities is also €2.7m. But commodity ETPs suffered lower largest net inflows of $283.3m while the
providing access to four emerging market trading activity, with turnover down 7.7 per banks ETFs saw the largest outflows at
currency ETCs with long or short exposure to cent. Reported weekly turnover of ETPs rose $210.4m. The biggest inflows month-to-date
both the Chinese renminbi and the Indian 16 per cent but underlying equity market have been into the basic resources sector ETF
Picture: REUTERS rupee. activity fell 6.4 per cent to €130bn. at $62.5m.
 City Focus
22 CITYA.M. 8 JULY 2010

| Careers

Don’t let technology take over your life

A few simple email Computers can get
you in a tangle.
rules will up your Picture: GETTY
productivity, writes
Jeremy Hazlehurst

R
ECENTLY I went to a presentation
of some research into the uses of
technology at work, at the
London office of Google. They had
commissioned a think-tank to look into
the ways that technology will help us
“collaborate” and become more “cre-
ative” in the years ahead.
But there was a strange situation
when those of us round the table actual-
ly started talking about technology and
how it affects our working lives. People
moaned about getting so many emails
that it stopped them doing any work.
Another complained that she had a
fancy filing system on the intranet at
work, but that it was impossible to find
where anything was. Others hated
receiving emails at three in the morn-
ing.

WORK: THE BLOB

The technological revolution has turned
Parkinson’s Law – that work expands to
take the time available – on its head. It’s
closer to say that now work multiplies
to fill the time available, and then keeps
going. It’s like The Blob in the 1950s hor-
ror film, the weird alien amoeba that
“consumes everything in its path as it
grows and grows”, as the poster said.
The thing is to make technology work
for you. To do that, you have to work out
what a particular technology is good for,
and use it for that task and nothing else.
Email, for example, is no good for organ-
ising lunch appointments. I sometimes
have exchanges of 10 emails with people
just arranging a time and place, when
that amount of information could have
been exchanged in a 20-second phone
conversation. As somebody pointed out
at the Google event, it was telling that
they thought the best way to present
their research was to get us all in one
room. We exchanged information very
effectively in that two-hour meeting –
it’s hard to imagine a technology that
would have been as effective. A meeting
was the best way to get the job done.
CORPORATE FINANCE
ORIGINATOR – LONDON
A forward thinking Global Investment Bank has an
opportunity for a top quartile professional to join their
already successful team. Key responsibilities of the role
include, self generating, developing and winning new
business within the £5m - £50m market space.
Structuring and tailoring lending positions to fit
with client requirements.
Successful candidates MUST have;
• Strong networks in at least one of Corporate Finance
/Private Equity/Entrepreneur Communities
• Ability to review and analyse business proposals
• Knowledge of lending risks
• Excellent presentation skills
If this opportunity is of interest to you
please contact Kieran Kelly
to discuss further on
0121 233 0276 or email an
up to date copy of your CV to
kieran@orbissearch.com
One of the people I met at the Google
event told me that everybody in her
office relies on instant messaging. She
hates it, and insists on going to talk to
people instead. That way she keeps up
with the office gossip as well as getting
to know people and building relation-
ships – all things that are vital, and
especially for managers. Sometimes
having a chinwag is the best technology
of all.
Reading Niall Ferguson’s new book
about the investment banker Siegmund
Warburg I was struck that Warburg
insisted that his employees exchange
information by memos, not phone calls.
The logic was that if you wrote it down,
then you would express yourself more
concisely and clearly. Warburg’s
internal memo system was the email of
its day. Written mediums are good for
expressing clear, logical requests and
commands, but the problem with email
is that people bash out sloppy messages
and therefore lose the power of the
medium. Technology that is designed to
make communication more efficient
and faster can actually get in the way
and create confusion.
In his book What To Do When You
Become the Boss, Bob Seldon, who has
been managing people for 48 years,
devotes a whole chapter to using email.
We might not all be able to follow the
lead of his friend who only answers
emails on Fridays, but we can certainly
manage them better. Remember, he
says, that email is a tool for doing your
job, and using mail should not become
the major part of your job. That’s good
advice. His rules for email are in the
boxes below.
BOB SELDON’S TIPS FOR MANAGING THE EMAIL PROCESS:
1) Look at emails after lunch, when you are
least creative and probably won’t achieve
anything else. They generally don’t take
much thought. Turn off the ping that tells
you an email has arrived. Set your email
programme to open on the calendar instead
of the inbox.
2) Set a maximum time for looking at
emails. Take no more than two minutes for
each.
3) Handle each email as you read it. Use the
four Ds: do take action; delegate, if you
need to; diarise a time to follow up; or
delete.
BOB SELDON’S TIPS FOR MANAGING THE CONTENT OF EMAILS:
1) Restrict emails to reason and logic and
send emotions face-to-face. If what you are
saying will impact the receiver emotionally,
then tell them personally. Emails are writ-
ten quickly and so can often be written
loosely. They are easy to misinterpret.
Verbal communication is far more subtle,
you can hear the tone of voice and see body
language.
2) Avoid the word “you” in emails. It can
sound very accusatory, especially when you
are talking about past behaviour, even if
you don’t meant it that way. “You didn’t
come to the meeting” sounds bad.
3) Know exactly what you want your mail
to achieve before you write it, and what
you want the recipient to do. Emails should
either provide information, request infor-
mation or request action.
4) Make sure your inbox is clear at the end
of each checking session.
5) If an email requires discussion, then
phone, don’t email back. You should make a
call if the person is in the same building, is
somebody you haven’t spoken to in a while,
or somebody who doesn’t respond quickly
to emails.
6) If you are a manager, enforce an email-
free day – this encourages better teamwork
and problem solving.
7) Tell people about your email manage-
ment system. Then they know when to
expect a response and won’t hound you.
4) Make use of the subject line. Make sure
it communicates the intention of your mes-
sage. When you respond to an email,
change the subject line to reflect the intent
of your response. That way a specific email
is easier to find. “Information” is a bad sub-
ject line, while “Please supply a copy of your
latest brochure” is a good one.
5) Use the first paragraph to set out the
content of your email and what you expect
it to achieve.
6) If you cc somebody, make sure they
know why and what you want them to do.
7) If the person you need to communicate
with doesn’t like email, then don’t send one.
Go and see them, or pick up the phone.
What To Do When You Become the Boss,
by Bob Seldon is out now, priced £12.99
 Lifestyle
Drama in the Deep South
Grisham’s first book
of short stories is a
poignant, thrifty set of
superb page-turners
FORD COUNTY
BY JOHN GRISHAM
Arrow Paperback, £7.99
hhhhi
by Zoe Strimpel
JOHN GRISHAM, trusty friend of travelling
businessmen for 20 years, is the definition
of “best-selling author”. But what distin-
guishes him from the slews of so-called
best-selling thriller writers, many of them
attempting to be just like him, is the water-
tight quality of his writing that still man-
ages to contain multitudes. Grisham does
not need to show off with grand flourishes
– his plot does the talking.
This foray into short stories is no differ-
ent. The setting is Ford County, Mississippi,
which readers of Grisham’s iconic first
novel, A Time To Kill, will recognise. The
town is Clanton, population 10,000.
The stories range from the light-hearted
to the gut-wrenching. From a hard-drink-
ing, downtrodden divorce lawyer looking
for pay-dirt, to a manipulative death row
inmate with one last plea, this is a feast of
entertaining scoundrels, usually with a
dark edge.
In Blood Drive, a man is injured in a con-
struction accident, leading three friends to
go on a beer-fuelled road trip to his bedside,
with the aim of donating blood. It doesn’t
quite work out that way. In Fish Files, a mid-
dle-aged lawyer with a bad marriage and
children who detest him suddenly happens
on a load of ill-gotten money. His dream of
starting afresh a million miles away sud-
denly becomes attainable. In Fetching
Raymond, two poor white brothers drive
with their mother to a prison where their
brother is to be executed for murder.
Poignant and impossible to put down,
this is a must-read for your summer holi-
day.
THE SPIRIT LEVEL DELUSION
BY CHRISTOPHER SNOWDEN
Little Dice, £8.94
hhhhi
by Philip Booth
THOSE who work in the City will be acute-
ly aware of the continual banker-bashing in
the wake of the financial crash. It will be of
little comfort for bankers to know that they
are not alone. Throughout the last eight
years there has been a series of books that
have bashed all wealth accumulation.
Indeed, they have suggested that creating
equality should be the main driving force
behind economic policy – even if it stops
OUT OF OFFICE
TIMOTHY BARBER
THE PREDATORS
READ OUR REVIEW
| Books IN TOMORROW’S
ARTS SECTION
the poor getting richer. James, the grandiose high-rollers’ casino at Grisham land: the
The Spirit Level was one such book. the top of St James’s Street, went into dusty, rural setting of
Those on the left regarded it as a “game administration and closed its doors. It was Mississippi.
changer” that demonstrated everything the original home of Crockford’s, the fash-
they ever knew but could not prove. The ionable joint where the likes of the Duke Picture: GETTY
Spirit Level purported to show that infant of Wellington, the Count d’Orsay and
mortality, mental illness and a host of Disraeli risked their wealth.
other social ills were the consequence of Back then, such illegal gambling dens
inequality. It argued that making the poor – even those as opulent as Crockford’s
richer would not help them as long as soci- – were known tellingly as “hells”, and in
ety remained unequal. the eyes of many were as far from distin-
I had strong suspicions about this guished as you could get, no matter how
hypothesis and now a book has come along esteemed the patrons. This we learn in
which I strongly recommend. The Spirit Nicholas Foulkes’s engrossing account of
Level Delusion not only successfully and London’s 19th century gambling scene, a
dramatically undermines much of the evi- book full of delightfully disreputable
dence in The Spirit Level, but also takes on characters centring on the scandal which
the other fashionable opponents of eco- engulfed The Derby horse race in 1844.
nomic growth. Author Christopher The recent tribulations of the Jockey
Snowden finds that social ills have many Club have nothing on this. Back then,
causes and that we need an economic sys- racing was both a national obsession and
tem – free-market capitalism – that encour- utterly crooked. High society would
ages economic growth if we are to have a grind to a halt when Derby Day came
flourishing society. His engaging discus- along, while the growing army of moral-
sion unpicks the evidence of the anti- ists tutted at the gambling free-for-all. In
growth brigade and demonstrates that it is 1844 things came to a head in a sensa-
selective and partial. This book is excellent tional court case surrounding a fraudu-
“tube reading”. Philip Booth is Editorial and lent winner and the vaunting ambition
Programme Director, Institute of Economic Affairs of the book’s villain, the monstrously
spiteful stud owner, MP and hypocritical
GENTLEMEN & crusader for honesty, Lord George
BLACKGUARDS Bentinck.
BY NICHOLAS FOULKES In his elegantly written, supremely
Orion Books, £18.99 entertaining chronicle, Foulkes uses the
Derby as a platform from which to
hhhhi unpick 19th century England as the
by Tim Barber moral tide turned away from “cheerful
amorality” to the austerity of the High
TOWARDS the end of last year, Fifty St Victorian era. It’s fascinating stuff.
The Ferrari of bikes. BIKERADAR LIVE 2010 FREE PARTY TONIGHT AT BLUES KITCHEN
Cycling enthusiasts should check out Camden’s Blues Kitchen – a centre for all
BikeRadar Live at the Brands Hatch circuit things bourbon and blues-related – is
in Kent this weekend. Now in its second hosting its own Rhythm & Blues stage at
year and just in time for Tour de France the none-more-groovy boutique festival,
fever, the event gives you the chance to The Secret Garden Party. For those who
test-ride the latest road and mountain don’t have tickets for the festival itself, the
bikes, including the Colnago C59 Italia bar is throwing a free party tonight with
bike (left), which looks like a normal bike special live performances from bands Son
but happens to be worth over £10,000, of Dave and Jack Rabbit Slim. 8pm-1pm,
making it the Ferrari of bikes. Blues Kitchen, 111-113 Camden High st, NW1
live2010.bikeradar.com 7JN. www.theblueskitchen.com.
23
LIFE
COACH
How to have a
pooch in the
Big Smoke
L
IVING in the city and working full time
might not seem very compatible with dog
owning, but it can be done. London’s myri-
ad park spaces make this a better city for
dog owning than most. However, if you think
giving your dog a quick run around before you
leave for work and then leaving it alone until you
return is sufficient, think again.
“Dogs need attention, which is how you end
up with a happy dog,” says canine expert Kate
Richards, director of dog care company Bone
Rangers (www.bonerangers.com). “People
wonder why their dogs bark a lot and don’t
behave, then you find out they leave them
alone at home all day. It’s the same effect as
neglecting a child.”
One doggy day care option is a newly-
opened dog “crèche”, CDPOM World (it stands
for Cats, Dogs and Piece Of Mind) in
Bermondsey, where you can leave your pooch
to be walked on treadmills and enjoy pamper-
ing that even includes watching DVDs and
being played to by a live pianist.
(www.cdpom.com)
That does require you to get your dog to
Bermondsey every morning however. If that’s
not possible, dog-walking companies are a
must for city dwellers. Some will take dogs out
in groups, others will offer one-on-one walking
as well as house sitting and other pet care
services. Richards’ company, Bone Rangers,
charges £12 for an hour’s walkies or £15 for
90 minutes.
When it comes to buying your dog, you’ll
need to bear in mind that some breeds require
more exercise than others, and this doesn’t
necessarily equate to size. Greyhounds, for
instance, only need half an hour’s exercise a
day, whereas terriers and Labradors need
much more. “Your lifestyle and how much time
you have should determine the breed rather
than what dogs you just like the look of,” says
Richards.
Consider adopting a rescued dog rather
than buying a puppy. Hard economic times
bring increases in the numbers of abandoned
dogs and decreases in the uptake of rescued
dogs. Battersea Dogs Home
(www.battersea.org.uk) and the Dogs Trust
(www.dogstrust.org.uk) are the places to start.
Battersea Dogs Home won’t allow you to
adopt a dog unless you have some kind of a
garden space, though for others, living near to
park space will be sufficient. “If adopting, you’ll
probably be asked for written proof that you’ll
be using a dog walker if you work full time, so
get that lined up in advance,” says Richards.
Unless you want to spend a for-
tune on vet’s bills, don’t, whatever
you do, buy puppies via the internet or
from breeders not certi-
fied by the Kennel Club.
Go and see the pup-
pies when they’re
with the mother so
that you can see
they’re being looked
after in a good envi-
ronment for the
first eight weeks,
and they’ll come to
you in good condition.
BY TIMOTHY BARBER
 24 Lifestyle | Gadgets CITYA.M. 8 JULY 2010

Six ways to
spice up your
ICE-CREAM MAKER £279.00
This fully automatic ice-cream maker comes from kitchen
gadget masters Cuisinart and means all you have to do is
throw together the ingredients in its 1.5-litre bowl and
press the right button. It can be used to produce a tradi-
kitchen ELECTRONIC GRILL AND RACLETTE SET £29.50
This electronic grill and raclette set gives a classic cook-
ing technique a high-tech edge. The set cooks anything
you can fit into any of its eight pans, holding the food
close to an electronically heated slab of granite for a clas-
tional creamy gourmet ice cream or, for the health-freaks sic stone-cooked taste. Unlike with actual stone-cooking,
among you, smooth frozen yoghurt. this stone comes with a non-stick coating.
www.divertimenti.co.uk www.marksandspencer.com

MEAT THERMOMETER £40.50 MEAT SMOKER £80

Put an end to the humming and hawing over the Sunday If you are after a new, delicious way to cook meat, look
roast wondering whether it’s ready. This handy meat and no further. The Brinkmann smoke and grill has the
poultry thermometer just requires you to stick a probe answer. This purpose-built, multi-level charcoal smoker
into the meat and it tells you whether it’s rare, medium, will gently smoke it to perfection. It comes with a heat
well-done, or just the right shade of in-between pink. And indicator, a porcelain-coated steel water pan and an alu-
the whole device is wireless so that you can avoid tripping minium steel charcoal pan. And if you get tired of tender
over cables as you pull open your oven on full blast. smoked meat, you can also use it for steaming and roast-
www.divertimenti.co.uk ing. www.burford.co.uk

A modern kitchen is nothing without an army of gadgets. Picture: REX

BLOW TORCH £19.75

Whoever said you must never play with fire? This cook’s
It’s time to let your endless ready meals, but during that rare
evening off who really has time to drop
BREAD MAKER £110
This top-of-the-line Kenwood bread-maker makes produc-
blowtorch from John Lewis proves that there is a place
for messing about with a 2,000-degree flame in the
gadgets cook for you, everything for hours of authentic home-
cooking? Luckily, thanks to the wonders of
ing freshly-cooked loaves as simple putting on a washing
machine. With a choice of three sizes and 15 pro-
kitchen. How else are you going to get the sugary top of
that creme brulee adequately crunchy? And what better
writes Juliet Samuel human progress and the innovative
genius of kitchen-gadget designers, you no
grammes, you can try out anything from fluffy white rolls
to gluten-free loaves. It can take as little time as 58 min-
longer have to spend hours kneading
way to crisp off an otherwise perfectly cooked joint of dough to enjoy fresh loaves upon waking, utes or delay cooking as long as 15 hours so that you can
meat? This model comes with an 80ml butane capacity be sure to have the bread fresh for your meal. Its raisin

L
IKE your fellow time-pressed City or carefully watch your Sunday roast to
(though you have to buy the gas separately) and an denizens, you know you should be enjoy it emerges at precisely the right tem- and nut dispenser lets you mix extra treats evenly into
adjustable head for reaching those hard-to-scorch spots. eating healthy home-made bread and perature. These labour-saving devices will the dough automatically as it cooks.
www.johnlewis.com organic frozen yoghurt instead of do it all for you. www.johnlewis.com

Let your phone keep you fit and healthy

ice that obviates the need for you to attend
NICK surgeries. By connecting various devices to
your phone, it can serve all manner of func-
SOS4LIFE on all good phones by the time you’re on holi-
Not to be outdone, St John's Ambulance has
an app that gives advice on everything from
day. www.sos4life.org

BOOTH tions. A pill dispenser, for example, sends a

message to doctor each time your pre-
scribed medicine is taken. Connected
weighing scales tell the doctor how fat you
EDITOR, are. There’s an app to measure and report
MOBILEB2B.CO.UK on your blood sugar, blood pressure and
even your breathing. You can even attach
major and minor emergencies, to guidance on
treating infants. Great for when you're chok-
BABYMATE
Babymate tracks your baby's growth and devel-
ing, bleeding severely or in cardiac arrest. opment milestones from birth to age 3, as well
A quarter of us would stand by while some- as giving information about health issues and
one dies, says their research, so this app could top tips for new parents.
change that. It’s £2.39 at the Apple app www.doublewedge.com
store.
NOISE ASSASSIN

M
obiles are smart and know all our inti-
mate details. So it was only a matter
of time before they'd reach doctor sta-
tus. Here’s how they control our hearts
and minds – and everything else.
DR INABOX
Ericsson has launched a new Dr In a Box serv-
an ECG machine, which warns the doctor to
switch his bleeper off, if it looks like you're
having a heart attack.
We'll know Dr InaBox has come of age
when they develop a heavy drinking
SmartPhone that uses a stroppy reception-
ist to screen out the tedious patients.
http://tiny.cc/drinabox
Your mobile could also store your med-
ical records, which is a boon when you're
taken ill abroad. Why? It can translate
your condition into any language at the
touch of a button. Can you remember
the Spanish for “my piles are giving me
gyp”? Well, as long as you can recall
your Pin, you'll never need to. Available
A mental health life-saver that blocks
out infuriating dins, be they from
Vuvuzelas, a show-off on the train or a shouty
tourist in a Spanish surgery trying to explain
about his piles. Aliph, which makes these head-
sets, is offering 30 per cent off if you use the
Vuvuzela promo code at www.jawbone.com
CITYA.M. 8 JULY 2010 Lifestyle | TV& Games 25

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm Fake Britain:
7.30pm CHOICE EastEnders:
Hour-long episode. Lucas loses
control with Denise: BBC News
8.30pm Outtake TV
9pm Traffic Cops
10pm BBC News
10.25pm Regional News
10.35pm Question Time
11.35pm This Week: Holiday
Weatherview
12.25am Sign Zone: Panorama
12.55am Sign Zone: Countryfile
1.55am Sign Zone: Halcyon River
Diaries 2.55am Sign Zone: Put Your
Money Where Your Mouth Is
3.55am-6am BBC News
6pm Eggheads
6.30pm Antiques Road Trip
7pm Natural World:
Following a harpy eagle
from birth to adulthood.
8pm Hampton Court Palace
Flower Show 2010: How
Shakespeare’s comedies are
reflected throughout the event.
9pm CHOICE Dive: The
first of a two-part drama,
by Dominic Savage.
10pm Mock the Week
10.30pm Newsnight: Weather
11.20pm Golf:
The Scottish Open
12.20am In Loving Memory
1.20am BBC News 3.55am-
6am Close
6pm London Tonight
6.30pm ITV News
6pm The Simpsons: The family
relocates to a farm.
6pm Home and Away:
6.25pm Live from Studio Five
TV PICK
7pm Emmerdale 6.30pm Hollyoaks: 7.30pm Fifth Gear: Vicki
7.30pm CHOICE Britain’s 7pm Channel 4 News Butler-Henderson tests the
Broken Roads: Tonight 7.55pm 4thought.tv: latest BMW 5 Series:
8pm Emmerdale 8pm Big Brother Five News Update
8.30pm Coronation Street 9pm The Sex Education 8pm Cheetah Man:
9pm Homes from Hell Show: Am I Normal? Pupils at Orphaned cheetah cubs are
10pm ITV News at Ten Bourne Grammar School prepared for their release into
10.30pm London News receive live anatomy the wild; Five News at 9
10.35pm Crash Scene lessons. Last in the series. 9pm FILM Conspiracy Theory: EASTENDERS
Investigators 10pm Underage and Having Thriller, with Mel Gibson. 1997. BBC1, 7.30PM
11.35pm Superhuman: Genius Sex: Part two of two. 11.40pm Cricket on Five: Lucas loses control with a terrified
12.30am The Zone; A mother has a heart-to-heart 12.40am SuperCasino Denise as the police continue their
ITV News Headlines with her 13-year-old son. 4.05am House Doctor 4.30am investigation into Owen’s death.
2.30am The Jeremy Kyle Show: 11.05pm Skins: House Doctor 4.55am Rough Guide Ian sees a different side to Phil.
Guests air their differences. 3.25am 12.10am Dirty Sexy Money to Weekend Breaks 5.10am The
Britain’s Broken Roads: Tonight 1.05am Big Brother: Live New Tomorrow 5.35am-6am
3.50am-5.30am ITV Nightscreen 5.15am-6am Countdown Michaela’s Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT 11pm Criminal Minds 12am 10.35pm Alan Carr: Chatty 4.40am Days That Shook the
SATELLITE & CABLE

2pm Live International Cricket
10.30pm Time of Our Lives
11.30pm Premier League
World 12am Football’s
Greatest 12.30am
International Cricket 2.30am
Premier League World 3am
Time of Our Lives 4am-6am
International Cricket
SKY SPORTS 2
7pm NRL Fulltime 7.30pm Live
Championship Rugby League
9.30pm Super League’s
Supermen 10pm World Cup
Report 10.30pm WWE: Late
Night – Raw 12.30am WWE:
NXT 1.30am NRL Fulltime
2am-4am Championship
Rugby League
SKY SPORTS 3
7pm Race World 8pm Live
US Women’s Open Golf 12am
Live PGA Tour Golf 2am
European Tour Golf 3.30am-
4.30am Golfing World
7pm Eurosport Flash 7.05pm
Soccer City Live 7.40pm
Eurosport Flash 7.45pm Fight
Club 9.30pm Cycling 10.30pm
Soccer City 11pm Olympic
Magazine 11.30pm Cycling
12.30am-12.35am Planet
Armstrong
ESPN
6.30pm AFL Review Show
7.30pm Superleague Formula
8pm FIA GT1 World
Championship Review 9pm I
Scored a Goal 10pm MMA Live
10.45pm UFC All Access
11.15pm ESPN Boxing
11.30pm DTM Review Show
12.30am Press Pass 2010
1.30am Major League Baseball
4.30am ESPN Boxing
4.45am-5.30am MMA Live
LIVING
7pm Four Weddings 8pm
Cougar Town 9pm Grey’s
Anatomy 10pm Private Practice
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 Total Wipeout 8pm
Undercover Princesses 9pm Big
Meets Bigger 10pm EastEnders
11pm Lee Nelson’s Well Good
Show 11.30pm Family Guy
12.15am Big Meets Bigger
1.15am Undercover Princesses
2.10am Lee Nelson’s Well Good
Show 2.40am Total Wipeout
3.40am The Real Hustle: High
Stakes 4.40am World Cup’s
Most Shocking Moments
4.55am-5.25am Bizarre ER
E4
7pm Hollyoaks 7.30pm Friends
9pm Big Bang Theory 9.30pm
How I Met Your Mother 10pm
Accidentally on Purpose
Man 11.25pm Important World 5.30am-6am How Does
Things with Demetri Martin That Work?
11.55pm-6am Big Brother:
Live DISCOVERY HOME &
HEALTH
HISTORY 7pm Babes in the Wood 8pm DIVE
7pm How the Earth Was Made Jon and Kate Plus 8 9pm BBC2, 9.00PM
8pm Ancient Discoveries 9pm Hospital 10pm Hospital Part one of two. Lindsey is a talented
Warriors 10pm Egypt 11pm Emergency 11pm Dr G: Medical diver with the 2012 Olympics in her
Ancient Apocalypse 12am Examiner 12am Hospital 1am sights, but an unplanned pregnancy
Ancient Discoveries 1am How Hospital Emergency 2am Dr G: leaves her facing a tough decision.
the Earth Was Made 2am Medical Examiner 3am Jon
Egypt 3am Pawn Stars 4am- and Kate Plus 8 4am Baby
5am Decoding the Past Tales 5am-6am Mum + One
DISCOVERY SKY1
8pm How Do They Do It? 7pm The Simpsons 8pm The
8.30pm How It’s Made 9pm Real A&E 8.30pm Real Filth
Venom Hunter with Donald Fighters 9pm A League of
Schultz 10pm Man vs Fish Their Own 9.30pm Modern
with Matt Watson 11pm Family 10pm Lie to Me 11pm
World’s Toughest Tribes 12am NCIS: Los Angeles 12am BRITAIN’S BROKEN ROADS:
Deadliest Catch 1am Bear Oops TV 1am Road Wars 3am TONIGHT ITV1, 7.30PM
Grylls: Born Survivor 2am Oops TV 3.25am 24 4.20am
Chris Barrie’s Massive Machines Tim Gunn’s Guide to Style Chris Choi investigates the state of the
3am World War Two in HD 5.10am-6am Are You Smarter nation’s roads, examining the highway
Colour 3.50am Raging Planet Than a 10 Year Old? policies that do not seem to be working.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
10 28 11 20 42 7 13 8 
26 27
 
11 14
Place the numbers from 1 to 9 in each empty cell so that each 31 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 11 16
26 19 6
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 21 15 4
 
above or to the left of it. 30 27
You can only use the digits 1-9 42    
   and you must not use the
23 15
45  
same digit twice in a block.
 The same digit may occur 40  
30 12
    more than once in a row or
column, but it must be in a
7
10
16
24
18

13 8
    separate block.
3 17 8 
26 17
    14 29


    ACROSS DOWN
1 Cook (vegetables) 1 Distilled wine (6)
   
 WORDWHEEL N M
briefly (6)
6 Forever (6)
2 Ludicrous acts
done for fun (6)
Using only the letters in the Wordwheel, you have 7 Affirm by oath (6) 3 Items of headgear (4)
   ten minutes to find as many words as possible,
I T 9 Diffusion of liquid 4 Passed out from
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters T through a porous
membrane (7)
weakness, physical or
emotional distress (7)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E R 10 Fraught with risk (5) 5 Country, capital

SOLUTIONS 12 Commenced (7) Damascus (5)

KAKURO is at least one nine-letter word in the wheel.
A Y 17 Love intensely (5) 8 Asian plant widely
QUICK CROSSWORD 4 7 1 2 4 5 18 Either of two times
cultivated for its

' , 1 * 2 ) 5 2 1 7
1 2 7 4 9 8 SUDOKU          of the year when the
oily beans (4)
11 Moral (7)
1 9 1 8 5 1          day and night are of
2 ( + $ ,
1 3 4 2 7 3 9 8 equal length (7) 13 Hackney carriage (4)
7 ( ( 7 + ( 0 ( $ 1         
& : / $ % < 3 4 5 9 6 2 8 7
         20 Redirect (6) 14 Sets of twelve (6)
2 9 ( 5 / / < ( 6 9 4 8 5 1 7
        
0 5 ( )
$ 6 3
( 5 ( (
%
6
5 $ 0 3
2 5
5 9
7
8
3 4 1
7 2
3 4
7 4 1
WORDWHEEL          21 On a ship (6) 15 Liquid produced
& 8 ) 2 6 +          22 Detection device (6) by a flower (6)
+ , / / 5 8 6 7 / (
1 8 6 9 9 2 The nine-letter word
3 1 5 2 6 9          16 Jordan’s only port (5)
, 6
& , 9 ( 7
( 2 5
$ / * $ ( 9 8 7 6 1 5
was PEREGRINE         
19 Probabilities (4)
 Sport
26 CITYA.M. 8 JULY 2010

Results
WORLD CUP SEMI-FINAL
Germany .......................(0) 0 Spain.....................................(0) 1
Att: 60,960 Puyol 73
Puyol power
takes Spain
CRICKET
LV COUNTY CHAMPIONSHIP - DIVISION ONE: Kent v
Hampshire (The Rose Bowl); Kent 251 (J L Denly 67, S A
Northeast 50, D G Cork 5-50) and 191 (M van Jaarsveld
82no) v Hampshire 553-7 dec. (M A Carberry 158, N D
McKenzie 113, N Pothas 78, J M Vince 57, S M Ervine 56no).
Hampshire (24pts) beat Kent (3pts) by an innings and 111

to the brink
runs. Essex v Nottinghamshire (Chelmsford); Essex 154 and
328 (J C Mickleburgh 91, M J Walker 70, J K Maunders 70,
A R Adams 4-57, C E Shreck 4-81) v Nottinghamshire 180 (A
D Brown 50no, M A Chambers 6-68) and 159 (A D Brown
62, Danish Kaneria 4-51, M A Chambers 4-55). Essex (19pts)
beat Nottinghamshire (3pts) by 143 runs. Yorkshire v
Warwickshire (Headingley Carnegie); Yorkshire 425 (G L
Brophy 103, A Lyth 84, A McGrath 57, N M Carter 4-87) v
Warwickshire 253 (I J Westwood 66, A U Rashid 4-71, S A
Patterson 4-57) and 193-3 (67.0 overs).
DIVISION TWO: Gloucestershire v Sussex (Arundel); He added: “From defence through
Gloucestershire286-9 (97.0 overs) (C G Taylor 89, Kadeer Ali
58). v Sussex. Northamptonshire v Glamorgan
(Northampton); Northamptonshire 494 (D J G Sales 127, N
GERMANY 0 to attack we played a great game.
We’ve got another game in front of
Boje 98, A J Hall 84no, S D Peters 76, J W M Dalrymple 4- us, let’s see if we are able to control
71) and 40-0 v Glamorgan 207 (J Allenby 59no, E
Chigumbura 4-67) and 325 (M J Cosgrove 115, T L Maynard
64, A J Hall 4-49). Northamptonshire (24pts) beat
SPAIN 1 the ball. We’re in good shape physi-
cally, so let’s see if we can win.”
For Joachim Low’s German side, it
Glamorgan (2pts) by 10 wickets.
FRIENDS PROVIDENT T20 - NORTH DIVISION: WORLD CUP 2010 proved a game too far in an other-
wise memorable tournament, but
Leicestershire v Worcestershire (Grace Road); Leicestershire BY JON COUCH
142-8 v Worcestershire 146-7. Worcestershire (2pts) beat his young starlets showed plenty to
Leicestershire by 3 wickets. suggest they can challenge for major
VARSITY MATCH: Oxford University v Cambridge CARLES PUYOL finally broke honours for many years to come.
University (The Parks); Oxford University 606-5 dec. (D King German hearts by heading Spain Del Bosque even had the audacity
189, A A Sharma 185no, S S Agarwal 117, M T Taylor 4-161) into their first-ever World Cup final to leave out the out-of-form
v Cambridge University 191-4 (80.0 overs) (P H Hughes 74).
in an intriguing match in Durban. Fernando Torres from his starting
WOMENS 1ST ODI: England v Ireland (Kibworth); England The Barcelona centre-back thun- line-up, opting instead for
274-7 (C M Edwards 72, L A Marsh 67) v Ireland 127.
England Women beat Ireland Women by 147 runs. dered home a winner from Xavi’s Barcelona’s Pedro.
corner 17 minutes from time to His side settled down the quicker
CYCLING
hand the European champions a but didn’t really hurt Germany,
TOUR DE FRANCE (Cambrai - Reims, 153.5km)— Stage 4: 1
Alessandro Petacchi (Ita) Lampre-Farnese Vini 3hrs 34mins
date with Holland – their first-ever although keeper Manuel Neuer had
55secs, 2 Julian Dean (Nzl) Garmin - Transitions at same World Cup meeting – in Soccer City to be alert early on to deny David
time, 3 Edvald Boasson Hagen (Nor) Sky Professional on Sunday. Villa the chance to add to his five
Cycling Team at s ame time. General classification after It was no more than the Spanish goals in the tournament so far.
stage 4: 1 Fabian Cancellara (Swi) Team Saxo Bank 18hrs
28mins 55secs, 2 Geraint Thomas (Gbr) Sky Professional
deserved after a dazzling display of But the Germans soon worked
Cycling Team at 0.23, 3 Cadel Evans (Aus) BMC Racing Team passing football, although the their way back into the game with
at 0.39. Germans squandered a great chance Piotr Trochowski, in for the suspend-
to draw level in the closing stages – ed Thomas Mueller, going close
TODAY’S DIARY substitute Tony Kroos volleying from distance and Mesut Ozil going
straight at keeper Iker Casillas. down under the challenge of Sergio
CRICKET “All of our players were extraordi- Ramos, only for referee Viktor Kassai
1st ODI: England v Bangladesh (Trent Bridge). nary – but we still have a match to to wave away his penalty claims. Iniesta’s ball across the six-yard box. who scuffed his effort at Casillas.
play,” said Spain coach Vicente del Spain upped the ante after the Germany’s big chance, however, And it was to prove costly. A mat-
SPORTS EDITOR JON COUCH Bosque. “We know Dutch football break with Xabi Alonso and Andreas came on 70 minutes when Lukas ter of minutes later, the brilliant
email sport@cityam.com and it will be very tough in the Iniesta both shooting narrowly wide, Podolski broke free down the left Xavi delivered a pinpoint corner
final.” while Villa just failed to connect with and centred for the unmarked Kroos, from the left and Puyol rose highest

It’s a final for the purists Mandela doubt is

Iniesta controlled the midfield, while
Carles Puyol was a real hero at either
end, scoring what proved to be the
winning goal, then throwing himself
at every German attack.
Germany have enjoyed a fantastic
tournament, make no bones about it,
but I was disappointed with them last
cup final headache
Koscielny
route to finally prise them open.
seals £10m
Arsenal deal
So, it’s Spain versus Holland, and WE may be one step closer to
that immediately throws up an knowing who will lift the World
intriguing duel between the two play- Cup on Sunday night, but organis-
makers, Xavi and Wesley Sneijder. ers have yet to decide who will
Whereas Sniejder is cuter than present the trophy.
Xavi, the Spaniard will run and run, South African icon Nelson
and I feel that whoever performs the Mandela is thought to be the pre-
▲

OUR MAN IN DURBAN night to be honest.
Instead of showing the kind of
TREVOR STEVEN attacking instinct which blew
England and Argentina away, Joachim
better in Johannesburg will go a long
way in determining which of the sides
will claim a first-ever World Cup.
With Sniejder’s guile and Arjen
ferred choice but the 91-year-old is
leaving it until the last minute to
decide whether to attend.
“He has an open invitation,” said
FOOTBALL
BY JON COUCH
ARSENAL new boy Laurent Koscielny
set his sights on the Premier League

W
ITH their slick passing styles Low, adopted a more negative Robben cutting in from out wide, a spokesman for organisers. “The title after completing his £10m move
and fantastic quality on approach, keeping things compact Holland will pose the biggest threat Mandela family will make a deci- to Emirates Stadium last night.
show, Holland and Spain across the middle and trying to make yet to Puyol and the Spanish defence, sion on the day of the final.” Gunners boss Arsene Wenger has
will provide the perfect the Spanish play from side to side. but with a European crown already A spokesman for world govern- tracked the 24-year-old centre back for
showpiece at Soccer City on Sunday. Holding them at bay for the whole under their belts, I just feel Vicente del ing body Fifa said yesterday it had some time after he impressed for
We saw last night just what a com- 90 minutes was always going to be Bosque’s men are better equipped for “no information on this so far”. French Ligue 1 side Lorient.
plete side Spain are. Xavi and Andreas tough, although it took the direct the occasion. And Koscielny, who can play for
either France or Poland, says he
jumped at the chance to move to

Cash-strapped Barca haven’t paid last month’s wages

north London. “It wasn’t a difficult
decision to make,” he said on agree-
ing a four-year deal. “It is exceptional
to have a club like Arsenal wanting to
sign you. I know the club have the
means and the ambition to get that
Laporta last week, said he had been (£125m). The club is not bankrupt an £8m loss just 12 months after he Premier League title and to go as far
▲

FOOTBALL
BY FRANK DALLERES forced to offload defender Dmitro because it generates income.” had been signed, a deal Rosell said as possible in the Champions League.”
Chygrinskiy to raise funds to ease Only last week Barca trumpeted an helped “resolve this tension”. Wenger added: “We identified him
BARCELONA’S reputation as a model cash-flow. increase in revenue to £370m, but The revelations cast huge doubt on as a very strong centre-half, who has
club is in tatters after their new pres- “We found a club in debt, with liq- Rosell said the club was now in trou- Barca’s ability to sign Cesc Fabregas, made big progress very quickly. He
ident admitted they need a £125m uidity problems. The squad were sup- ble because “it has spent more than it who Arsenal are refusing to sell has shown he is mentally strong, he’s
loan because they still have not paid posed to be paid at the end of last has made”. unless they receive a mammoth offer. a fighter and a very strong competi-
last month’s wages. month and still haven’t been,” said Chygrinskiy was sold back to for- But Rosell insists they still have at tor. Koscielny is a great addition to
Sandro Rosell, who succeeded Joan Rosell. “We’ll fix a loan of €150m mer Shakhtar Donetsk this week for least £40m to spend this summer. our squad.”
CITYA.M. 8 JULY 2010 27

Aviva agree £20m rugby deal

Carles Puyol is
congratulated by
team-mates after
his 73rd-minute
winner against
Germany in
Durban.
nificant investment in community right sponsorship opportunity and

▲
RUGBY UNION
Picture: GETTY BY JON COUCH
AVIVA have agreed a £20m deal to
become the new sponsors of
Premiership rugby.
The insurance giants penned a
four-year deal to replace Guinness as
the top-flight’s title sponsors, starting
immediately.
Premiership chiefs confirmed that
both parties have agreed to make “sig-
programmes” as part of the deal.
“This is a fantastic sponsorship
which is going to give us great oppor-
tunities to reach many of the people
and businesses we work with across
the UK, through what is arguably the
most competitive and exciting rugby
competition in the world,” said Aviva
UK chief executive Mark Hodges.
“We’ve invested a lot of time and
effort looking for and researching the
we know that rugby, the fastest-grow-
ing participation sport in England,
fits absolutely with Aviva.”
Premiership Rugby chief executive
Mark McCafferty added: “A title spon-
sorship deal with Aviva is another sig-
nificant milestone in the growth of
Premiership Rugby. It provides us
with a long-term partnership com-
mitment to our sport and to our work
in the community.”

AM G
I T D IN
BR A
Y
LE L E
CE ’ S
O UK
PR HE
T

FROM YOUR DESK

IN THE CITY
TO THE FIRST TEE RETURN IN 24HRS!
ARCHERFIELD LINKS, MONDAY 19TH JULY 2010

to power a header beyond Neuer. on-one with the German defence.

Torres was given his chance in But it mattered not as Spain com-
the latter stages and was left curs- fortably saw the game out to ensure
ing Pedro for not playing him in for there would by a new name of the
an almost certain second when two- World Cup trophy come Sunday.

Strauss eyes
Bangladesh
whitewash TEAM PACKAGE INCLUDES:
1 team of 3 Amateurs and 1 Celebrity G Champagne Reception G Gala Auction Dinner

dayers and we’re very keen to win ACCOMMODATION, FLIGHTS AND TRANSFERS INCLUDED
▲

CRICKET
BY FRANK DALLERES
ENGLAND captain Andrew Strauss is
targeting three wins out of three
from the one-day series against
Bangladesh, which starts today at
Trent Bridge.
The hosts will be expected to
achieve the clean sweep, having just
wrapped up a one-day series victory
over Australia, who represent far
more daunting opponents. England
also enjoyed three ODI triumphs
over Bangladesh in the spring, fol-
lowed by two Test successes against
the Tigers earlier in the summer.
So although he was quick to
remind his side against complacen-
cy, Strauss made it clear he wants to
end the three-match series with a
100 per cent record.
“We’ve won four out of six one-
these three,” he said.
“They’re a dangerous side, they all For further information please call Sophia Tabiowo at WSM Sponsorship
play shots, and Tamim Iqbal in par- on +44 (0) 20 7183 4621 or email sophia.tabiowo@wsmsponsorship.com
ticular is very dangerous. In
Bangladesh [in March] we had to
labour to win the one-day series and PREMIER PARTNER:
we’re going to have to work hard
and make sure we don’t give them
any inroads into the game.
“I don’t think we’re a good
enough team just to turn up and
win. We want to take things forward
from our Australia win. There’s no
room for complacency on our part.”
Batsman Ian Bell is expected to be SPONSORS:
named in the England side for his
first senior limited-overs appearance
since 2008. Bell, who was recalled
after Kevin Pietersen was ruled out
by injury, warmed up in style by hit-
ting 158 off 143 balls as the Lions
drew with India A on Tuesday.
 FOREX • STOCKS • CFDS • FUTURES • COMMODITIES • FX OPTIONS • BONDS

AWARD-WINNING FX – THAT’S
JUST PART OF THE PICTURE
Investors who are familiar with FX trading will no doubt already be aware of Saxo Bank’s
prominence in the market, a view endorsed by our impressive collection of awards.

They may not however, be familiar with the fact that as an account holder of Saxo Bank,
they can utilize the same technologies and platform to trade a wide range of instruments
across a comprehensive array of global financial markets.

Featuring:
• Multi-financial instrument trading, all on one platform
• Trade 155+ FX Currency Crosses, including Spot, Forward and FX Options,
6500+ Equity CFDs, 16 Index-tracking CFDs, ETFs, Futures and Stocks from
22 Exchanges
• An award-winning platform that can be as mobile as you wish. Available as a desktop
application, web based or on your mobile technology
• In-depth Market Analysis, Streamed News Reports and Advanced Charting to aid
informed decision making
• Fast execution - full range of order type and one-click execution

Our service includes complex derivative products which carry a high degree of risk and
are not suitable for every investor. You can lose more than your initial deposit and you
should ensure you fully understand all the risks involved.

With a minimum account balance of just £6,000 to open a Saxo Trader Account or
£60,000 to open a Saxo Premium Account, you can make full use of our advanced
trading platform and renowned Market Analysis tools, with whichever instrument or
market you choose.

For more information visit us at www.saxobank.co.uk or call 020 7151 2100

Saxo Bank A/S is authorised by Finanstilsynet, the Danish Financial Supervisory Authority.