www.cityindex.co.
uk
Issue 1,175 Tuesday 13 July 2010
FSA SET TO RIP UP
MORTGAGE RULES
FINANCIAL SERVICES
▲
BY MARION DAKERS
THE FINANCIAL Services Authority
(FSA) unveiled plans to overhaul the
mortgage market this morning, with
some warning the changes will pun-
ish borrowers while doing little to
tackle the number of repossessions.
The FSA said in a report today it
will impose “affordability tests” on all
borrowers, effectively banning self-
certified mortgages and further
restricting credit for those with a che-
quered borrowing history.
It said borrowers must be tested on
their ability to repay the entire mort-
gage, even if the loan starts with an
interest-only offer. This type of loan
relies on the increasing value of the
house to repay the capital.
The regulator stopped short of cap-
ping loan-to-value ratios, meaning
125 per cent mortgages could make a
return, but said a ban on interest-only
mortgages remains an option and
requires further consultation.
While the FSA claims the measures
will protect vulnerable homeowners
from uncontrollable debts, the
Council for Mortgage Lenders (CML)
last night slammed some of the pro-
posals, saying they will make it more
difficult to obtain a mortgage with-
out preventing defaults.
Director general Michael Coogan
said: “There will always be a regulato-
ry trade-off between protecting con-
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&&&#('$
BUSINESS WITH PERSONALITY
WHY THE STATE NEEDS
TO TAKE A BACKSEAT
WOL KOLADE INTERVIEW P16
FSA chief executive Hector Sants will today unveil plans to impose “affordability tests” on all borrowers
sumers from over-borrowing, and
increasing the barriers to home-own-
ership. The risk is that the gain will
not match the pain in the short
term.”
The CML claimed just one in ten
mortgage arrears are caused by over-
borrowing, compared to the 40 per
cent caused by job losses, which cannot
be predicted in an affordability test.
The trade association also warned
that a curb on interest-only loans
NASDAQ ▲ 2,198.36 +1.91
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could penalise borrowers who need
the flexibility of payment breaks.
The FSA has not specified the
method of income assessment banks
must use, and says the aim of the
measure is to reduce exaggeration of
income and outright fraud on mort-
gage applications.
The regulator said almost half of
mortgage customers between 2007
and April 2010 did not have to pro-
vide proof of income. While most of
£/$ ▼ 1.50 -0.01
 !"

# 
 #" ! "
Picture: REX
the main banks no longer offer self-
assessed loans, some smaller institu-
tions continue to do so.
Lesley Titcomb, FSA chief operating
officer, said: “While it is clear the
mortgage market has worked well for
many, we need to build a strong new
framework to protect customers and
to ensure that the problems we have
seen do not happen again.” The FSA
has given lenders until November to
come forward with feedback.
£/¤ 1.19 unc ¤/$ 1.26 unc
NHS SET FOR
SURGERY
LANSLEY DETAILS
RADICAL REFORM
PLANS P8
FREE
UK’s rating
not secure,
warns S&P
▲
ECONOMY
BY KATIE HOPE
GEORGE Osborne’s bid to get the UK’s
spiralling Budget deficit under con-
trol was dealt a blow yesterday when
Standard & Poor’s (S&P) warned
Britain remains at risk of losing its
prized triple-A rating.
The credit rating agency said it was
keeping its negative outlook on the
UK’s debt despite Osborne’s austerity
Budget and warned the economy was
unlikely to grow at the pace forecast
by the Office for Budget
Responsibility (OBR).
“Standard & Poor’s medium-term
economic forecasts for the UK are less
optimistic than the assumptions
underlying the Budget. We therefore
believe there is still a material risk
that the UK’s net general government
debt burden may approach a level
incompatible with the ‘AAA’ rating,”
S&P said in a statement.
The pound fell to $1.5017 in the
minutes immediately after the
announcement as the credit rating
agency’s move fuelled fears over the
coalition government’s grip on the
economy. Within a week of taking
office, Osborne announced £6bn of
emergency spending cuts and out-
lined proposals for the sharpest cuts
in public spending in post-war history.
“The chancellor is very clear the job
is not done. The next step will be to
set out individual departmental
spending totals in the Spending
Review on 20 October,” said a
Treasury spokesman. ALLISTER
HEATH: PAGE 2, GDP REVISION: P6
Certified Distribution
3/05/10 - 30/05/10 is 106,097
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 2 News
Lies, damn lies and the UK’s statistics
EDITOR’S LETTER
ALLISTER HEATH
BRITAIN’S economy shrank even more
than previously thought during the
recession – that, at least, is what the
Office for National Statistics informed
us yesterday and what we are there-
fore expected to believe. The economy
is thought to have collapsed 6.4 per
cent from peak to trough, a figure
that will probably go on being revised
for years (previously, the estimate was
a contraction of 6.2 per cent).
What I find deeply irritating is the
way the City, the media and politi-
cians alike all take every pronounce-
ment from our official statisticians as
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Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
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WHAT THE OTHER PAPERS SAY THIS MORNING
RIO CLASHES OVER THE RIGHTS TO
MONGOLIAN COPPER MINE
Tensions are rising between Rio Tinto
and Canada’s Ivanhoe Mines over
rights to a world-class copper deposit
in Mongolia as the multinational
mining group releases hundreds of
millions of dollars to develop the
mine over which it has limited con-
trol. Ivanhoe, which owns the Oyu
Tolgoi project, vowed it would defend
a scheme which it believes protects
shareholders against takeovers, but
Rio believes is a violation of its rights.
RISE IN NUMBER OF LAWSUITS
AGAINST SOLICITORS
Lawsuits against solicitors have
increased by 163 per cent in one year
as a result of the recession and the
falling property market. There were
210 claims against solicitors launched
in the High Court in 2009, up from 80
in 2008, said data from the court.
akin to the gospel – even though the
figures keep being changed, often dra-
matically so. The 0.3 per cent growth
in the first quarter went unrevised but
crucial details were unrecognisable.
Until yesterday, we were told that
investment spending had gone up by
1.5 per cent – yet yesterday this was
changed radically to 4.6 per cent. The
new figures show that government
consumption went up 1.5 per cent in
the first quarter, three times faster
than previously thought, prompting
many to argue that this meant that
the economy would have shrunk with-
out the public sector. There are two
flaws with this reasoning – the first is
that the figures could easily be revised
again; the second is that the whole
point of cutting spending is to ensure
that it no longer crowds out the pri-
vate sector, allowing it to grow faster.
Exports of goods and services fell
back by 1.7 per cent on the quarter;
again, this is a big change. One driver
was new estimates for inflation of
exported and imported goods – of
Pay decisions
left to banks
POLITICS
▲
BY MARION DAKERS
A TREASURY minister last night
urged banks to show restraint when
awarding bonuses, but said the gov-
ernment will only regulate pay as
part of an international agreement.
Financial secretary Mark Hoban
told the British Bankers’ Association
dinner that the banking world has a
real chance to reclaim its reputation.
“We have the opportunity to send a
clear message to the public that the
banking system now operates in a
way that is fair and stable and no
longer rewards employees based on
short-term performance whilst leav-
ing investors and taxpayers exposed
to the long-term risks.
“It is better for the industry to lead
these changes,” he said in a speech.
He added that the FSA has been
RMS CONTESTS RISE IN LONGEVITY
RISK
The increase in life expectancy is like-
ly to slow compared with the past 30
years, meaning that insurers and pen-
sion funds could be overestimating
the risk of longevity increases on lia-
bilities, according to new forecasts.
RMS, a modeller of natural catastro-
phe risk for the insurance industry,
has created a model that explores
how improvements in longevity come
about.
BIG PROFITS REVIVE BUY-OUT GROUPS’
INTEREST IN CHINA
China is attracting renewed interest
from private equity groups after a
series of highly profitable deals that
have marked a sharp turnround from
the country’s previous poor record
for buy-out firms. “For years there has
been growth in China but it has been
profitless growth,” Jonathan Zhu, co-
head of Asia for Bain Capital in Hong
Kong said. “But in recent years, we
have seen growth with real profits.”
course, these new numbers may be
right but I do wonder. I once spent
ages poring through ONS data on eco-
nomic growth and comparing
changes – the findings were astonish-
ing. Economic history was completely
revised over and over again at the
stroke of a statistician’s pen; the tim-
ing, duration and depth of recessions
in particular tends to be modified for
years afterwards (and even more
depressingly, the definition of GDP
has changed several times over the
past 40 years, injecting even greater
confusion into the picture).
The figures leave GDP 5.7 per cent
below its peak, Investec calculates. By
contrast, the US is just 1.3 per cent
smaller than it was at its peak. This is
an implausibly large gap given that
the UK labour market appears to have
been more resilient than the US.
Another oddity is that UK public
finance numbers have been outper-
forming for months (though they
remain grim). All very strange.
So what next? Ruth Lea, a director
asked to examine further options in
its review of bankers’ pay.
It also emerged last night that the
coalition has called a meeting with
banking chiefs later this week to dis-
cuss industry reform, lending to busi-
nesses and banking stress tests.
Hoban praised the extended EU
stress tests as building underlying
confidence, and said the government
will work with the G20 to introduce
minimum capital requirements.
He also said the government will
publish a consultation paper on the
new bank levy today.
Financial secretary
Mark Hoban said that
bonuses have shown
“significant restraint”
since the recession
PESSIMISTIC BOSSES REIN IN
MARKETING SPEND
Bill Gates once said that if he was
down to his last dollar, he would
spend it on marketing. British compa-
nies are not apparently convinced of
the merits of such a strategy.
According to the latest Bellwether
Report from the Institute of
Practitioners in Advertising and
accountants BDO, 20 per cent of com-
panies reduced their marketing
budgets over the three months to the
end of June.
HE MAY BE ANNOYING BUT SINGER
HITS RIGHT NOTES FOR
GOCOMPARE.COM
The price comparison website whose
moustachioed opera singer commer-
cials were voted the most annoying
ads of last year has soared into profit.
GoCompare.com reported after-tax
profits of £12m for 2009.
of Arbuthnot Banking Group, has
crunched the numbers. If the Budget
forecast is to be realised the private
sector will have to grow at around five
per cent a year on average. There are
precedents for this. After the early
1990s recession, government spend-
ing was tight but the economy grew
strongly, as a weaker sterling helped
drive exports. Few jobs were created
by the public sector, but private
employment grew strongly. There is
another precedent: over 1m jobs were
lost in 1929/30 (a large figure in those
days). But by 1934 employment had
surpassed its 1929 peak, even if unem-
ployment also remained high.
None of this changes my forecast
that we are in for years of weak
growth (but no double-dip). But one
other thing is clear: beware the statis-
tical spin-merchants who claim to
know more about the minutiae of the
economy than they really do.
Excessive precision is impossible in
economics, as yesterday’s data shows
all too well. allister.heath@cityam.com
Sir Alan Budd told the chancellor the agency needed more independence Picture: REUTERS
Budd asks for freer OBR
POLITICS
▲
BY OLIVER SHAH
SIR Alan Budd, chairman of the
Office for Budget Responsibility
(OBR), sent a letter to chancellor
George Osborne yesterday outlining
how the agency should run perma-
nently.
As well as producing two forecasts
for the economy and public finances
every year, the OBR should do broad-
er work on fiscal sustainability, Budd
said. He suggested the unit’s inde-
CHINESE RATING AGENCY STRIPS
WESTERN NATIONS OF AAA STATUS
China's leading credit rating agency
has stripped America, Britain,
Germany and France of their AAA rat-
ings, accusing Anglo-Saxon competi-
tors of ideological bias in favour of the
West. The US falls to AA, while Britain
and France slither down to AA-.
Belgium, Spain, Italy are ranked at A-
along with Malaysia.
UK WOULD STILL BE IN RECESSION
WITHOUT GOVERNMENT SPENDING
Prudent households trying to save are
in danger of pushing the economy
back into recession, economists have
warned. Official figures suggested
that the recession of last year was
deeper than originally thought and
that British families were tightening
their belts – a move that could send
the country into a double dip reces-
sion.
CITYA.M. 13 JULY 2010
NEWS | IN BRIEF
Tube strike off after pay offer
Tomorrow’s strike by Tube Lines has
been suspended while staff vote on
whether to accept a new offer of a 4.2
per cent pay rise and increased job secu-
rity. Rail union RMT confirmed yester-
day that its members would vote on the
revised package. Management will rec-
ommend that members accept the offer.
Tube Lines workers, who walked off the
job late last month for three days, were
scheduled to strike from tomorrow
evening until Friday. TfL said the offer is
consistent with packages accepted by
London Underground and TfL staff last
year.
Glaxo drug under fresh scrutiny
The US will today begin a review into
GlaxoSmithKline’s diabetes drug
Avandia. The Food and Drug
Administration will debate over two
days whether to restrict or withdraw
the medicine, also known as rosiglita-
zone. Research in 2007 showed the drug
could cause higher rates of heart
attacks, while a government report ear-
lier this year suggested the company
may have been aware of the risks but
did not withdraw the drug from sale.
pendence be cemented by moving it
into a separate office from the
Treasury, using a mixture of external
recruits and Treasury secondees and
giving parliament a role in appoint-
ing committee members. The advice
follows a controversy over changes to
the OBR’s calculations on future job-
lessness ahead of Osborne’s emer-
gency Budget in June. Budd said: “It
will inevitably take time to settle in,
but I am confident the OBR will play
a substantial part in enhancing the
quality of fiscal policy.”
SLOVAKIA OPPOSES GREEK RESCUE
The new Slovakian government
remains opposed to a rescue package
for Greece, Prime Minister Iveta
Radicova said Monday, after a meet-
ing with EU Council president
Herman van Rompuy. She also said
she would need to further discuss
with her cabinet and Parliament the
EU's plans for a permanent Financial
Stability Facility.
STRAPPED FLORIDA BANKS SEEK HELP
Florida banks, already weakened by
the real-estate bust and hit again by
customers suffering from the BP oil
spill, are asking federal regulators for
a reprieve from government-ordered
capital raising as they struggle to stay
alive. Florida's top banking lobbyist
requested all local banks be granted a
12-month break from higher capital
requirements, new regulatory sanc-
tions and loan appraisals.
CITYA.M. 13 JULY 2010
Former LTCM trader surfaces
at London-based hedge fund
▲
EXCLUSIVE
BY OLIVER SHAH
ONE of the survivors of Long-Term
Capital Management (LTCM), the US
hedge fund infamously bailed out by
Wall Street in the late 1990s, has
resurfaced at London-based Capula
Investment Management.
Ayman Hindy became a partner at
Capula last week, according to a regu-
latory filing. He has been working at
BP boosted as
closes in on
key asset sale
BP IN CRISIS
BY EMMA SADOWSKI
BP’S shares soared yesterday on the
back of news that the company was
close to securing a number of deals to
sell off some assets and that it will
begin capturing three times more oil
through a new containment cap.
BP shares closed up 9.5 per cent at
399.4p yesterday. That is more than
30 per cent higher than the low hit
on 25 June, but 40 per cent off its pre-
spill peak.
Shareholders were reacting to the
news that the embattled oil giant
could be close to securing a deal to
sell a large part of its Prudhoe Bay
field in Alaska to rival Apache.
A BP spokesperson declined to com-
ment on the deal and said the group
is looking at shedding $10bn (£6.6bn)
worth of non-core assets as part of its
fundraising to help pay for the spill.
“BP has to be careful with its asset
sales. Although the Apache sale is
fine, BP has to be careful about what
kind of pricing they receive because it
is a valuable part of the business,”
said George Godber at Matterly.
US issues deepwater drilling ban
as a result of the Gulf oil disaster
▲
OIL
The US Interior Department yesterday
formally issued its new offshore oil
drilling moratorium, saying it would
end by 30 November or sooner and it
would no longer be based on water
depths.
“More than eighty days into the BP
oil spill, a pause on deepwater
drilling is essential and appropriate
to protect communities, coasts, and
wildlife from the risks that deepwater
drilling currently pose,” Interior
Secretary Ken Salazar said.
“I am basing my decision on evi-
dence that grows every day of the
industry’s inability in the deepwater
News 3
the government fixed income special- after Russia defaulted on its debts in
ist for some time as a senior portfolio 1998 and had to be rescued up by its
manager, City A.M. understands. He creditors, including Goldman Sachs
moved to its US office in June. and Barclays, in a move arranged by
Hindy was a strategist at LTCM the Federal Reserve. It closed in 2000.
when it ran into trouble just over a At the time, Hindy was quoted as
decade ago. The fund ballooned to saying: “The models tell you where
control more than $100bn (£67bn) things will be in five years. But they
assets at its peak, wowing investors don’t tell you what happens before
with heady returns achieved through you get to that moment of certainty.”
highly leveraged arbitrage trades. But Capula was launched in 2005. As of
LTCM suffered gargantuan losses last year it ran $3.5bn of assets. Ayman Hindy was made a partner at Capula last week
Halifax Mortgages
We know that it’s expensive moving home or buying a house for the first time.
So, to help lower the cost of your move, at Halifax we’ve cut our product fee in
half across a number of mortgages. Just apply on or before 9th August 2010.
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or call 0845 122 1511
Investors also reacted to the news
that containment efforts were pro-
ceeding better than expected as BP
prepared to lower a cap on the
Macondo well last night that is capa-
ble of capturing up to 80,000 barrels
of oil a day.
Meanwhile, a White House panel
probing the oil spill started its investi-
gation yesterday, with hopes that it
could make recommendations in six
months time on deepwater drilling.
The seven-member national com-
mission on the BP Deepwater
Horizon spill and offshore drilling
will probe the 20 April explosion of
the Deepwater Horizon rig and subse-
quent oil spill.
ANALYSIS l BP
p
700
650
399.40
600 12 Jul
550
500
450
400
350
300
250
12 Apr 30 Apr 21 May 11 Jun 1 Jul
to contain a catastrophic blowout,
respond to an oil spill, and to operate
safely,” he added.
The revised ban does not suspend
offshore activities based on water
depth, but on the basis of “drilling
configurations and technologies,” the
department said.
The previously announced drilling
ban, which was blocked by the courts,
affected drilling in waters more than
500 feet (152 meters) deep.
The revised moratorium follows a
US appeals court decision last week
that the US government’s first plan YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
for suspending deepwater drilling Terms and conditions apply. Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered office: The Mound,
was too broad and failed to take into Edinburgh EH1 1YZ. Available to homemovers, first time buyers, remortgage customers and buy to let customers. Offer available by phone,
online or in branch. We may monitor and record calls. Lines are open Monday-Friday 8am-8pm, Saturday 9am-4pm. Compliance number 10/04102
account its economic impact.
CITYA.M. 13 JULY 2010 News 5

Standard Life overhaul sees

investor relations boss leave
executive David Nish, Aitken will not ious units were “fit for purpose”, the

▲
EXCLUSIVE
BY OLIVER SHAH
STANDARD Life’s head of investor
relations has left the company after a
shake-up of the insurer’s operations
led to his position being axed.
Gordon Aitken, a former sell-side
analyst with JPMorgan and Credit
Suisse First Boston, departed a fort-
night ago. Under the terms of a
group-wide review ordered by chief
be replaced. Instead, finance director
Jackie Hunt will increase her contact
with analysts and shareholders, sup-
ported by Standard Life’s three-strong
investor relations team.
A spokesperson said Aitken was
one of several senior managers to exit
the FTSE 100 firm as part of the
restructuring of its business. Nish,
who became head of Standard Life in
January, wanted to make sure its var-
spokesperson said.
But industry insiders said they
were surprised to see Aitken leave at a
time when the company is trading at
nearly a 40 per cent discount to 2010
embedded value. One said: “If you’re
trying to get good news out there,
this is a funny way to go about it.”
Aitken joined Standard Life in sum-
mer 2006 and saw it through its
demutualisation and flotation.

Greg Chase heads

Aon, while Russ
Fradin will lead
the new unit Aon
Hewitt

Aon snaps up
Hewitt with
$4.9bn offer
Shields added in a research note.
▲

INSURANCE
BY HARRY BANKS
AON, the world’s largest insurance
brokerage, yesterday said it’s buying
Hewitt Associates for $4.9bn (£3.3bn)
in cash and stock to create the world’s
largest human resources company.
With Hewitt, Aon will get a firm
foothold in human resource and bene-
fits outsourcing and take on rival
insurance broker Marsh and
McLennan’s Mercer unit.
The deal, the second major transac-
tion in the consultancy space in a year,
surpasses the $4bn merger of Towers
Perrin and Watson Wyatt, which creat-
ed the world’s largest HR consultants
when it closed in January 2010.
Stifel, Nicolaus & Co analyst Meyer
Shields said Aon’s shares were under-
valued relative to peers, so using stock
to buy Hewitt was a negative. “Deals of
this size almost always invoke signifi-
cant distractions for management,”
Aon’s offer of $50 a share – $25.61 in
cash and 0.6362 in Aon stock – is 41
per cent above Hewitt’s closing stock
price on Friday.
Aon plans to integrate Hewitt with
its existing consulting and outsourc-
ing operations and sees annual rev-
enue of $4.3bn. The combined unit
will be named Aon Hewitt and will be
headed by Russ Fradin, chairman and
chief executive officer of Hewitt.
Fradin will report to Greg Case, chief
executive of Aon.
Aon expects the deal to add to 2011
and 2012 earnings and generate
$355m in annual cost savings in 2013,
primarily from reduction in back-
office areas.
The purchase price reflects a multi-
ple of about 7.5 times Hewitt’s fiscal
2010 consensus estimate for earnings
before interest, taxes, depreciation and
amortization. The deal is expected to
close by mid-November.

Wall Street reform moves a step

closer as approaches its final vote
as possible,” Reid said in a statement.
▲

FINANCIAL SERVICES
THE US Senate will vote this week on
a landmark rewrite of financial regu-
lations, Senate democratic leader
Harry Reid said yesterday after three
Republicans said they would back the
measure.
“We will finish our work on this
bill this week to ensure that these
critical protections and accountabili-
ty for Wall Street are in place as soon
The 2,400-page financial overhaul
legislation has already been passed by
the US House of Representatives.
It creates new rules for complex
securities blamed for helping precipi-
tate the economic crisis in 2008 and
provides for a new agency assigned to
protect consumers from potentially
dodgy financial products, including
mortgages. The new rules will still
allow banks to invest in private equity.
 6 Economic News CITYA.M. 13 JULY 2010

Brief sunny spell for retailers Uncertainty hits buyer

al of the BRC, said: “The performance apt description for this month’s sales.
demand and house prices
▲

RETAIL
is better when you remember the While the World Cup did impact per-
BY JESSICA MEAD comparison is with a similarly strong formance on individual days and pro-

SUNNY weather and summer clear-
ance sales gave retail sales a much-
needed boost last month, the British
Retail Consortium (BRC) will say
today in its monthly survey.
Retail sales values rose 1.2 per cent
on a like-for-like basis on June 2009
while total retail sales values were up
3.4 per cent. However, in the three
months to June, like-for-like sales
were flat on the same period in 2009.
Food sales values inched up by 0.1 per
cent while non-food items were flat.
Stephen Robertson, director gener-
performance in a sunny June a year
ago.”
The BRC said that food sales
growth was about the same as in May,
thanks to the hot weather and the
World Cup. But clothing and
footwear sales growth slowed, since
many people had already bought in
May’s sun. Televisions benefited from
the football and outdoor DIY and
leisure also improved, but at the
expense of indoor homewares.
Helen Dickinson, head of retail at
KPMG, said: “Trundling along is an
vide a welcome uplift for some, it did
not shift overall spending patterns
much one way or the other.”
She added: “It was a bit of a tempo-
rary lift and I don’t think the outlook
is particularly positive.”
Dickinson said that retailers will be
trying very hard to absorb the VAT
hike but that they had already
worked to make a lot of changes.
“Most are suggesting that they won’t
have any choice but they will benefit
from spending being brought for-
ward into the end of 2010.
▲
PROPERTY
WEAK demand and a flood of proper-
ties onto the market hit house price
expectations last month, according to
the Royal Institution for Chartered
Surveyors (RICS) monthly survey pub-
lished today.
Only a net 10 per cent of estate
agents reported a rise rather than a
fall in prices compared to 22 per cent
in May.
Buyer interest fell for only the sec-
ond time since October 2008, reflect-
ing in part heightened uncertainty
over the near term outlook for the
economy, the RICS said.
But a net 27 per cent of estate
agents reported a rise in new instruc-
tions – the highest reading since May
2007 – and the average number of
stocks on surveyors’ books rose to 67.
Jeremy Leaf, spokesman for the
RICS, said: “With the supply of prop-
erty now beginning to outstrip
demand there is a risk of some mod-
est slippage in prices during the sec-
ond half of the year.”

ECONOMIST VIEWS: WHAT WILL DRIVE THE

UK recession
NEWS | IN BRIEF
UK’S ECONOMIC RECOVERY? Interviews by Jessica Mead
OECD unemployment rate falls
The unemployment rate in the
SIMON WARD | HENDERSON Organisation of Economic Cooperation

was deeper “ The UK GDP revision confirms a domestic demand-

led recovery. Domestic demand was stronger than previously
thought in the latest quarter and over the last year, with net
and Development’s (OECD) member
countries fell to 8.6 per cent in May
from 8.7 per cent the previous month.
The country with the highest rates was
Spain (19.9 per cent) while the lowest
was South Korea at 3.2 per cent.

than thought exports correspondingly weaker. The demand upgrade was

focused on fixed investment.

MICHAEL SAUNDERS | CITIGROUP

”
Business price inflation slows
Business price inflation (BPI) continued
to fall in June despite stubbornly high
consumer price inflation, according to
the London Chamber of Commerce. The
BPI fell by 0.8 per cent in June on a

“
a previous estimate of a more sub- year earlier and both fixed and variable
▲

UK ECONOMY
BY JESSICA MEAD
BRITAIN suffered a far deeper con-
traction than had previously been
dued 0.5 per cent increase. On the
investment side, capital expenditure
by general government surged by 6.5
per cent.
cost inflation slowed. The index is a
We expect that this ongoing monetary stimulus measure of business costs and is com-
[weak pound and low interest rates], plus the improvement in piled in conjunction with Fathom
corporate and household balance sheets over recent quarters, Financial Consulting.

thought and the health of the econo-
my was far more reliant on public
spending in the first three months of
2010, official figures from the Office
for National Statistics (ONS) showed
yesterday.
The data, which had been delayed
“The forthcoming era of austerity
will soon consign increases of these
magnitudes to the annals of history,
and the key is whether private sector
demand will be able to sustain the
economy looking ahead,” said
Investec’s Philip Shaw.
”
will cause the recovery to gradually strengthen, despite head- ECB curbs rate of bond buying
winds from fiscal tightening and poor credit availability. The European Central Bank (ECB)
slowed the pace of its controversial buy-
ing of government bonds to a near halt
last week, adding substance to sugges-
SIMON HAYES | BARCLAYS CAPITAL tions from one of its top policymakers

by nearly two weeks, due to “poten-
tial errors” showed that the economy
shrank by 6.4 per cent from peak to
trough, sharper than the 6.2 per cent
previously estimated. This was the
deepest recession in Britain’s post-
Equally worrying was the down-
ward revision to net exports.
Previously estimated to be flat on the
quarter, the updated figures now
showed a 1.7 per cent decline, the
worst performance since the first
“
that the programme could soon be
phased out. It said yesterday it had
Although we expect households to save a higher frac- bought just €1bn (£838m) worth of
tion of their income in the future than they had prior to the bonds last week, taking the overall total
to €60bn but bringing new purchases to
recession, we expect that over the next year, the pressures on a virtual standstill.

war history and was worse than the
early 1980s, when output contracted
by six per cent.
However, the ONS confirmed that
the economy continued to recover,
albeit weakly in the first quarter of
2010. Output grew by 0.3 per cent
quarter of 2009 and highlights the
fact that sterling’s depreciation has
failed to boost UK economic activity.
Although the data showed a fall in
the household savings ratio to 6.9 per
cent versus 7.2 per cent in the fourth
quarter of 2009, economists warned
”
household incomes from a weak labour market and fiscal con-
solidation are likely to cause the saving ratio to drop. China’s property market falters
China’s frothy property market may
have peaked after a government clamp-
down on speculators, new data indicat-
ed yesterday. Property prices across 70
PHILIP SHAW | INVESTEC cities fell 0.1 per cent in June compared

compared to the last three months of
2009, held back by poor weather.
The detail of the data showed that
much of the improvement in the first
quarter was as a result of public
that this would have to fall further
for the UK to record any decent
growth over the next year or so. ING’s
James Knightley said: “With austerity
set to intensify over the next few
“
with May – the first monthly fall since
February 2009. Despite the monthly fall
At the start of this year, activity was highly dependent in June, property prices across China
on public spending, but GDP was probably held back by poor still remained 11.4 per cent higher than a
weather and the reaction to the VAT hike. The readjustment of year ago. Financial markets are now try-

”
spending. Government consumption years, the savings rate may have to ing to assess whether the chinese prop-
is now thought to have surged by 1.5 push close to zero if the economy is to the household balance sheet should enable the private sector erty market will deflate in the painful
per cent on the quarter, compared to avoid slipping back into recession.” to take on a more prominent role in driving the economy. way the US market has done since 2007.

IoD survey finds a third of firms have Mortgage lending up in

been refused access to additional credit May but outlook unclear
the Bank of England. getting finance in 2009. The survey CML director general Michael Coogan
▲

FINANCIAL SERVICES
▲

BY DAVID ELWARD
A THIRD of businesses have been
refused additional borrowing this
year by their banks due to a tighten-
ing of lending criteria and increased
demands for security, according to a
report released today.
New findings by the Institute of
Directors (IoD) show businesses are
still struggling to access finance from
their banks despite the continued
injection of cash into the economy by
The survey of 899 company direc-
tors found 39 per cent of member
firms applied for finance with a bank
in the first six months of the year; an
increase on the 25 per cent applica-
tion rate for the longer full year peri-
od of 2009.
But there are signs of increased liq-
uidity and borrowing from the banks.
Despite 33 per cent of IoD members
being declined finance in the first six
months of this year, it is a fall from
the 57 per cent who had difficulty
suggests banks appear to be requiring
more security before approving
requests for finance.
And 37 per cent noted an increase
in the amount of security being
requested against any lending, up
from the 29 per cent in the previous
survey.
IoD director-general Miles
Templeman said: “The best way to
improve access to finance in the
longer-term is getting a lot more com-
petition into the banking sector.”
PROPERTY
MORTGAGE lending rose slightly in
May thanks to continued record low
interest rates, the Council for
Mortgage Lenders (CML) said yester-
day.
It reported that 42,000 loans worth
£6bn for house purchase were
advanced in May, a 15 per cent
increase on a year earlier.
Remortgaging activity recovered a lit-
tle as well in May, rising on the previ-
ous month but still down on the year.
said: “House purchase lending contin-
ues its recovery but positive compar-
isons with equivalent months a year
ago look unlikely to continue.
Activity picked up in the second half
of 2009 due to the stamp duty holiday
but with the government’s austerity
drive picking up momentum we are
unlikely to see a repeat of those buoy-
ant numbers this year.”
He added that the CML’s 2010 fore-
cast for gross lending in 2010 may
now be looking a little optimistic.
CITYA.M. 13 JULY 2010 News 7

Olympic champion Usain Bolt

shuns London over tax fears
yesterday ahead of Friday’s Diamond thing he earns, whether in Britain or

▲
SPORT
BY JON COUCH
TRIPLE Olympic champion Usain Bolt
will not compete at next month’s
Diamond League meeting in London
because it will not be financially
viable owing to Britain’s tax laws, the
Jamaican said yesterday.
“I am definitely not going to run (in
London),” the world 100m and 200m
Usain Bolt has refused to compete in London Picture: REUTERS record holder told a news conference
League meeting in Paris where he will
run the 100 metres at the Stade de
France.
Asked if it was because he would
lose more money than he would earn
from running in London, Bolt replied:
“That’s what my agent told me.”
It was feared that if Bolt competed
once in Britain and only five races
elsewhere, British tax authorities
would demand one-sixth of every-
not.
Bolt, who is suffering from a nag-
ging Achilles tendon strain, will face a
stern test in Paris as he will meet for-
mer record-holder Asafa Powell, the
last man to beat him in July 2008, in
Stockholm, for the first time this sea-
son.
“My main goal is definitely to stay
unbeaten. I definitely don’t want to
lose that race,” he said.

Alcoa returns
to profit as US

40% OFF
UP TO
results begin
still the volatility that could poten-
▲

US ECONOMY
BY MARION DAKERS
ALUMINIUM miner Alcoa said it had
returned to profit yesterday thanks to
growing sales, and raised its estimate
for global consumption of the metal.
The largest US aluminium produc-
er, whose results are often viewed as a
bellwether of the American economy,
said it made a $136m (£91m) profit
for the quarter, compared to a loss of
$201m in the previous three months
and a loss of $454m in the same peri-
od last year.
Revenue rose 22 per cent to $5.2bn,
tially come from financial markets.”
Based on the improved demand,
Kleinfeld said Alcoa was raising its
projection for global aluminium con-
sumption to 12 per cent this year.
The firm is the first in the Dow
Jones index to post results, and is
often seen as a taster of earnings for
the rest of the large-cap companies.
“It’s constructive and it helps start
the earnings season off on a positive
note,” said Brian Hicks of US Global
Investors in Texas.
“From the standpoint of Alcoa,
they see the economy continuing to

ALL OUR FARES

the Pittsburgh-based company said. expand. It’s robust enough that they
Chairman and chief executive have to increase their forecast for
Klaus Kleinfeld told analysts that global aluminium production.”
strong industry fundamentals were
expected to drive demand for alu- ANALYSIS l Alcoa
minium in the next ten years with an $
15
average growth rate of six per cent 10.87
per year. 14 12 Jul
“You see robust consumption
13
growth in places like China, Brazil,

GUARANTEED
India, modest increases in North 12
America and Europe.
11
“There’s a lot of very positive indi-
cations there of a real recovery in 10
almost all of these markets,” he said.
“But I believe that the biggest risk is 12 Apr 30 Apr 20 May 10 Jun 30 Jun

Hedge fund sues banks for $1.2bn

loss linked to subprime mortgages FLIGHTS FROM LONDON (STANSTED)
underwriting standards were aban-
▲

BANKING
doned in order to meet demands for
A HEDGE fund is taking aim at the mortgages from Wall Street.
world’s biggest banks in an effort to The case could encourage other

TRAVEL SEPT - OCT

recoup $1.2bn it lost on subprime
mortgages, entering a legal fight
where so far Wall Street has largely
been unscathed.
The lawsuit by Cambridge Place
Investment Management against
Morgan Stanley, Goldman Sachs and
about 10 other banks, is one of the
biggest cases of its kind to be filed so
far in US courts.
The case cites a sizable number of
so-called “confidential witnesses”
quoted in the lawsuit, who said
investors, such as large pension
funds, to bring similar lawsuits
against Wall Street.
The lawsuit brought by Cambridge
centres around residential mortgage-
backed securities, which are bonds
backed by home loans. Cambridge
invested $2.4bn in the securities.
Goldman Sachs and Morgan
Stanley declined to comment on the Book until 15.07.10. Subject to availability. Terms and conditions apply, see
lawsuit. Two other defendants,
JPMorgan Chase and Citigroup also Ryanair.com for details. Fares exclude optional fees/charges.
declined to comment.
 8 News
Kent Reliance confirms talks
with buyout firm JC Flowers
▲
BANKING
BY HARRY BANKS
KENT Reliance Building Society con-
firmed yesterday it was in talks with
US private equity firm JC Flowers on
creating a joint venture to bolster its
balance sheet while remaining a
mutual organisation.
Kent Reliance said the new struc-
ture would allow for substantial new
capital investment to support the 150-
year old building society, which is
owned by its members. Sources on
Sunday said that JC Flowers, which
previously tried to buy the UK’s strick-
en bank Northern Rock, would com-
bine a £50m investment with the
assets of the British building society
in a new vehicle.
The building society would retain
control with a 51 per cent stake,
sources familiar with the matter said
on Sunday.
Kent Reliance, which is the only
building society based in the south-
east England county of the same
name, made a pre-tax profit of £2.3m
in 2009 and had assets of £2.3bn at
year-end.
JC Flowers plans to use the Kent
Reliance joint venture as a starting
point from which to target other
regional building societies which can
no longer maintain the capital ratios
required of them by the Financial
Services Authority purely from
retained profit. The US firm is a veter-
an investor in distressed assets.
Health secretary Andrew Lansley announced the reforms yesterday
Doctors set to
hold NHS cash
▲
POLITICS
BY STEVE DINNEEN
THE new coalition government, seek-
ing to cut a record Budget deficit,
announced a radical shake-up of its
sprawling health service yesterday.
The reorganisation of the world’s
largest public healthcare system will
see family doctors take charge of the
lion’s share of a £110bn healthcare
budget. Losing out will be thousands
of managers in the National Health
Service (NHS) whose jobs will be cut
to slash bureaucracy and save money.
The restructuring of the NHS is
politically sensitive, coming after a
series of reorganisations which have
had mixed results.
The opposition Labour party said
the coalition of centre-right
Conservatives and centrist Liberal
Democrats was taking a “huge gam-
ble” by giving doctors control of bil-
lions of pounds of taxpayers’ money.
Its ideal of good healthcare avail-
able to all, regardless of wealth, still
commands near universal approval
and remains unchanged in the latest
L’Oreal says it will return to profit
this year as consumers hit shops
▲
RETAIL
LUXURY cosmetics group L’Oreal
posted higher sales in the second
quarter helped by emerging markets
and positive currency effects, con-
firming a recovery in consumer
spending.
Second quarter revenues climbed
5.2 per cent to €4.9bn (£4.1bn) on a
like-for-like basis, slightly ahead of
analysts expectations.
CITYA.M. 13 JULY 2010
Picture: PA
reorganisation.
The Conservative-Liberal Democrat
coalition is protecting the NHS from
deep cuts sought elsewhere in govern-
ment to tackle a budget deficit of
around 11 per cent of GDP.
Health Secretary Andrew Lansley is
concentrating on structural reforms
he says will improve the outcomes for
patients as well as saving money at a
time of limited resources.
He wants patients to be able to use
information about the quality of dif-
ferent hospitals and consultants to
choose the treatment best for them.
More than 150 local health author-
ities in England, will be scrapped,
along with ten larger regional man-
agement bodies.
Meanwhile, education secretary
Michael Gove was back under the
spotlight yesterday as MPs rounded
on him over allegations he was
advised to delay an error-strewn list of
axed school building projects.
The list was later found to contain
25 mistakes and led to 20 schools
being wrongly reassured their proj-
ects would not be affected.
L’Oreal, which sells Garnier sham-
poo and Vichy facial creams, does not
provide annual forecasts. But it
pledged to return to growth and said
in a statement “it can tackle the sec-
ond half with confidence”.
The group, which was were severe-
ly hit by the spending slump last
year, saw signs shoppers were return-
ing to stores in the first three months
of the year and the trend was con-
firmed in the second quarter.
CITYA.M. 13 JULY 2010
BAA’s June traffic
numbers knocked
by BA crew strike
TRANSPORT
▲
BY EMMA SADOWSKI
STRIKES staged by British Airways
(BA) cabin crew caused airports group
BAA passenger traffic numbers to fall
by 1.7 per cent last month.
The airport operator, which is
majority-owned by Spanish infra-
structure firm Ferrovial, said 9.5m
passengers flew from its UK airports
last month, down from 9.7m in June
2009.
BAA said without the impact of
industrial action, which affected nine
days of travel last month, passenger
traffic at its largest airport, Heathrow,
would have risen by 2.5 per cent as
compared to the same period last
year.
But as a result of the strike,
Heathrow, which is BA’s main hub,
saw 140,000 fewer passengers than it
Boris ramps up fight
against London cuts
TRANSPORT
▲
BY VICTORIA BATES
BORIS Johnson has stepped up his
campaign to protect funding for
London’s sprawling transport net-
work, after transport minister
Norman Baker hinted that the capi-
tal’s Tube, buses and trains would have
to suffer cutbacks along with the rest
of the country.
Aides to the Mayor said he was “pre-
senting his case clearly to the govern-
ment, both in public and in private”
in order to emphasise the importance
of the network to the economic recov-
ery.
Kulveer Ranger, the Mayor’s trans-
port adviser, said: “London’s trans-
Santander agrees to acquire
SEB’s German arm for €555m
BANKING
▲
BY HARRY BANKS
SPANISH bank Santander consolidated
its full service operation in Germany
with the acquisition of the retail bank-
ing division of Sweden’s SEB, the bank
said yesterday.
The €555m (£465m) deal comes as
the Eurozone’s number one bank by
market capitalisation attempts to
increase its footprint in Europe’s
biggest economy at a time when the
retail banking sector is in a state of
flux. “Germany is a core market for
Santander. This acquisition is a signif-
had estimated, with only 5.8m cus-
tomers.
Glasgow, Aberdeen and Edinburgh
also reported a significant drop in
passenger numbers last month as the
strike took its toll on short haul travel
across the UK.
Scotland’s main hub, Glasgow, saw
a seven per cent decline in passenger
traffic.
Meanwhile, Aberdeen and
Edinburgh reported a respective four
and two per cent decline in numbers.
BA’s cabin crew were on strike for a
total of 22 days this year as part of a
long-running industrial dispute.
The airline has been hit by a series
of strikes organised by the Unite
union this year, which have so far cost
it £150m.
BAA owns and operates seven air-
ports across the UK and one in
Naples.
port funding must be safeguarded as
to cut it would be to sever the motor
of the UK economy. Tough decisions
have already been made. The capital
is already two years ahead of the rest
of the country and the government
must take these actions into account.”
Johnson has already set out a pro-
gramme for efficiency savings of
£5bn at Transport for London (TfL),
counterbalancing
Mayor Boris Johnson
has already introduced
a £5bn programme of
efficiency savings at
Transport for London
icant step toward achieving our goal
of being a full service retail bank in
Europe’s largest market,” chairman
Emilio Botin said in the bank’s press
release. The purchase price is close to
what it had previously been reported
Santander would pay for SEB’s
German retail division, which made
an operating loss of €117m in 2009.
The acquisition includes 173 branches
serving more than 1m customers in
Germany. The impact on Santander’s
financial position is relatively small
with the bank saying its core capital
ratio could fall by ten basis points
from the acquisition. SEB will book a
News 9
CITY VIEWS: HAVE STRIKES AND THE DRIVE TO AUSTERITY PUT YOU OFF
FLYING? Interviews by David Elward and Emma Sadowski
SARA ABDOLZADEH | AVIVA
“I had to cancel my holiday to Egypt because of the volcanic ash. But it has not deterred me from
travelling by air again this year. I am flying out to South Africa this summer. While I didn't book
this trip, having had to cancel Egypt has made me more wary of booking in future.”
MARIAM BALOGUN | ROYAL BANK OF CANADA
“I do not think I will be changing my summer travel plans as I do not normally fly with British
Airways because it is so expensive and there are a lot of other cheaper airlines. Virgin
Atlantic provides just as good service for a little less.”
RYAN QUINCEY | LEGAL & GENERAL INVESTMENT
“Anything can happen, any day of the year and we've seen the strikes and the volcano this year of
course. Even though the recession has hit, you still need to have your holiday and there are a lot of
good deals at the moment.”
JACOB BOROWICZ | ACE EUROPEAN GROUP
“I am not put off of flying because all of the problems, including the volcano and everything relat-
ed has passed now. However, the British Airways strikes have put me off the airline and I will seek
an alternative carrier.”
@
@
an increase in fares across the net-
work which has already been imple-
mented this year.
His renewed campaign to protect
TfL came after Baker admitted there
is a feeling elsewhere in the UK that
“London gets a very good deal. If we
are all going to have to take difficult
decisions they have to be fair and not
@
be seen to advantage one part of the
country over another.”
The mayor last week raised the
issue with Prime Minister David
Cameron in crunch talks over the
public spending cuts.
The Department for Transport will
have to shoulder cuts of up to 40 per
cent to its £15.9bn budget in the gov-
ernment’s autumn spending review.
net loss of €240m in 2010 results with
an overall negative impact of €320m,
the Swedish group said.
ANALYSIS l Santander
€
11 9.88
12 Jul
10
9
MORE NEWS
8 ONLINE
7 www.cityam.com
19 Apr 7 May 27 May 16 Jun 6 Jul
 The Capitalist
10
CITY LOSES
TO OCTOPUS
IN FOOTY
FORECASTS
OH, HOW they chortled in the City yes-
terday at comparisons between the
world’s most famous cephalopod and
those investment banks who dared to
put out predictions on the outcome of
the World Cup.
Paul the psychic octopus, they snig-
gered, had managed to get EVERY SINGLE
ONE of his predictions correct, beating
statistical odds of 1/256.
Kaggle, the data prediction platform,
jumped in on the action, yelling that in its
own World Cup predicting competition,
JP Morgan, Goldman Sachs, UBS and
Danske Bank had all fared between 28th
and 64th out of 65. (JP Morgan picked
England to win it – don’t laugh, it did
seem at least remotely plausible at the
time – while the other three plumped for
Brazil.)
All of the banks kept a dignified silence
on their thrashing yesterday except for
Evolution, whose fixed income specialist
Gary Jenkins had also released a tongue-
in-cheek forecast for the tournament
(Brazil, again) and was happy to give his
tuppence-worth on the results.
“Clearly against Paul, we’ve all done
appallingly,” Jenkins roared enthusiasti-
cally. “But he has got a huge advantage
over me – one, he doesn’t have to work
and can sit in his tank all day watching
footy, and two, he’s got more brains.
Everything’s working in his favour…”
Good to see at least one of the red-faced
analysts taking the defeat on the chin.
HUMAN TOUCH
After all of the vehement banker-bashing
to which the City has been subjected in
the wake of the crisis, it makes a wel-
come change to hear someone actually
willing to stop and ask for a second side
to the story.
The fact that the person in question is
actor and Old Vic artistic director Kevin
Spacey makes it that much more gratify-
ing.
Spacey has been busy over the past few
months doing reams of research for his
latest film project, Margin Call, which is
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
“At least one
of the City’s
red-faced
analysts took
their World
Cup forecast
defeat
squarely on
the chin”
Banking analysts new venture to be listed at the end of the
were put to shame by month. First Virgin Money came out guns
Paul the psychic octo- a-blazing, claiming they’d still be “very
pus, predicting Brazil much in the hunt” for the Lloyds and
rather than eventual Northern Rock assets on which the experi-
winners Spain enced pair have a beady eye. And now
another of their new rivals, Metro Bank,
Picture: ACTION has entered the fray, with chairman
IMAGES Anthony Thomson insisting that unless
something changes, Levene and Walker
are going to find the going rather tougher
than expected.
“If all they’re going to do is buy a bit of
Lloyds or Northern Rock, paint it a differ-
ent colour and put a different logo on it,
how will that be different?” Thomson
Spacey wants to humanise bankers Picture: PA demanded during a chat yesterday. “The
reality is that if there is no significant
set during the chaos of the financial crisis. point of differentiation, there is no
And having descended for a while on encouragement for customers to switch
Citigroup’s New York offices to talk to the to them and stay with them.”
bankers, Spacey is clearly keen to show the Metro, of course, makes differentia-
world their point of view.
“I’m trying to humanise bankers,”
tion its key business ploy, offering late
hours, weekend openings and
Spacey told a US newspaper between takes other little touches such as
on the film set. “Everyone talks about free water and chewies for
facts, figures and debt. I was more inter- customers’ dogs, so it’s cer-
ested in what they were feeling… I listened tainly got the cute factor.
with some degree of surprise about the
weight of having knowledge that others
don’t, how that shifted relationships –
what guys couldn’t even tell their wives at
ROW OF LEAN
Congratulations are
the height of the turmoil…” most certainly in order
The Capitalist awaits the finished product for one of the most
with anticipation. impressive feats of
endurance The Capitalist
has seen from one of the
DOG EAT DOG City crowd.
A warning to Lord Levene and Sir David John “Johnners”
Walker, who are attempting to break into McCormick, the managing
the UK high street banking world with a director of financial print-
Whole Native Lobster & Chips
£24.50
With A Glass Of J&B NV Champagne
Subject to availability until 16th August
Celebrating Justerini & Brooks 250th Anniversary
Boisdale of Belgravia - Boisdale of Bishopsgate - The Lamb at Hindon
15 Eccleston Street, Swedeland Court,
London, SW1W 9LX 202 Bishopsgate
020 7730 6922 London, EC2M 4NR
020 7283 1763
www.boisdale.co.uk
CITYA.M. 13 JULY 2010
A delighted Johnners at the finish line
ers Sterling, at the weekend completed an
awe-inducing 920-mile, 12-week charity
run all the way from John O’Groats to
Land’s End.
McCormick – who’ll readily admit that
before he started he wasn’t exactly a lean,
mean, running machine – is now 8lbs
lighter and a whole lot trimmer, apart
from with a very swollen left knee. After
arriving at Land’s End, he blogged: “There
was no immediate euphoric sense of
achievement (perhaps that will come
later), just more a feeling of immense
relief, satisfaction and something I strug-
gle with at times, pride… Then the mad-
ness started. Cava, banners, kisses,
handshakes, a tenner for a photograph at
the signpost, and a massive round of
drinks in the pub.” For anyone who wants
to chuck him a few quid in aid of disad-
vantaged children’s charity Chicks, his
website is www.johnnersrunsjogle.com –
on which he’s posted, among other things,
a web diary of the changes to his
nude physique over the course of
the run. Ooh-err.
JOKE DU JOUR
Good to see from the first extract
of Lord Mandelson’s memoirs
that not all the members of
New Labour lost their sense
of humour after their drub-
bing at the general election.
Mandy recounts that he
texted former Prime
Minister Tony Blair (left)
on the Sunday following
the election to set up a
time to talk about the
coalition discussions with
Nick Clegg, mentioning
that “GB is going to church”.
“He’ll find that a tougher
negotiation,” replied Blair, dead-
pan.
Hindon near Salisbury,
Wiltshire, SP3 6DP
01747 820 573
CITYA.M. 13 JULY 2010 News 11

BLOOD MONEY
INVESTORS yes-
Threadneedle hires
L&G’s equities head
terday sank their
teeth into
Entertainment
One, after the
film content and
distribution busi-
ness said the
third Twilight firm in the first quarter of 2011. Sarah

▲
FUND MANAGEMENT
cult vampire BY HARRY BANKS Arkle, Threadneedle’s current chief
movie had investment officer, will become vice
achieved the high- FUND firm Threadneedle has hired chairman. Burgess has been responsi-
est UK box office Mark Burgess as its new chief invest- ble for Legal & General Investment
opening of the ment officer, bringing in a leading Management’s (LGIM) active equity
year so far. The player in Britain’s corporate gover- business with assets of around £10bn.
Twilight Saga: nance debate. Earlier this year, Threadneedle
Eclipse raked in In a statement yesterday, strengthened its equities team with
an estimated Threadneedle said Burgess, currently three fund manager hires and pro-
£13.8m on its head of UK equities at Legal & moted Leigh Harrison, head of UK
opening weekend. General’s funds arm, will join the equities, to a broader role.

PR firms fight
for M&A work
▲

M&A £13.3bn and Maitland, which han-

BY OLIVER SHAH
FINANCIAL DYNAMICS muscled out
other PR firms to advise on the high-
est number of takeovers in the first
half, as deal activity recovered.
FD provided communications on
31 UK transactions worth £8.5bn,
according to figures compiled by
mergermarket. Among others, the
company advised engineering sup-
port services firm Babcock on its
£1.3bn pursuit of rival VT Group and
is helping utilities outfit Spice defend
against an approach from Cinven, the
private equity business.
FD was followed by Brunswick,
which worked on 20 deals worth
dled 23 situations worth £5.3bn.
The six months to June saw a global
pickup in corporate activity, merger-
market said. Global mergers and
acquisitions (M&A) totalled $881bn
(£586.6bn) in the first half, up 7.8 per
cent year-on-year, fuelled by a resur-
gence in leveraged buyouts.
It was the busiest period for cross-
border transactions since the first
half of 2008, with American firms
seeking to take advantage of weak-
ness in sterling and western bosses
casting their eyes eastwards for
growth. Ebitda multiples, which
value companies based on their
underlying earnings, were also at
their highest level for two years.

PR ADVISERS TO UK M&A: VOLUME

Deal
Ranking H1 2010 H1 2009 count
H1 2009 H1 2010 Company name Value (£m) Deal count Deal count change
1 1 FD 8,486 50 31 19
4 2 Brunswick Group 13,246 37 20 17
2 3 Maitland 5,313 28 23 5
5 4 Citigate 4,422 27 13 14
3 5 Finsbury Group 9,801 20 22 -2
8 6 Tulchan Communications 4,106 15 6 9
12 7 College Hill 1,643 11 5 6
14 8 Hogarth Partnership 358 10 4 6
11 9 M:Communications 4,077 9 5 4
13 10 Pelham Bell Pottinger 655 9 4 5

Hugh Hefner launches campaign

to take Playboy empire private
cent of Playboy’s Class A common
▲

ENTERTAINMENT
HUGH Hefner, the doyen of top-shelf
magazines, has launched a bid to take
his Playboy Enterprises empire pri-
vate.
The octogenarian mogul yesterday
announced a proposal to buy out all
of the outstanding shares in the
group for $5.50 per share in cash, a
premium of over 30 per cent, valuing
the firm at around $185m (£123m).
Playboy said Hefner had secured a
partnership agreement for the deal
with Rizvi Traverse Management,
which had already been in contact
with major lenders about financing.
Hefner currently owns 69.5 per
stock and 27.7 per cent of its Class B
stock.
He has advised the board that he
will not contemplate a sale or merger
of the company or entering into dis-
cussions with any other partners, out
of concern for “the Playboy brand, the
editorial direction of the magazine
and Playboy’s legacy”.
Playboy and its famous bunny logo
were set up by Hefner in 1953 and the
company listed in New York in the
early 1970s. However, it has recently
struggled to cope with soaring levels
of competition spawned by the inter-
net and has had to make large-scale
cut-backs to its workforce.
 12 News
Mid-capM&Aactivity surges as economy rebounds
▲
FINANCIAL SERVICES
BY VICTORIA BATES
SMALL and mid-size companies have
been increasingly active on the M&A
scene in the first half of the year, dab-
bling in a greater number of more
lucrative deals as the economic tide
begins to turn.
The value of global mid-market
mergers and acquisitions, among
companies valued up to $500m,
surged by 42.3 per cent to $311.7bn
(£206.9bn) over the past six months,
according to the latest review by
Thomson Reuters. The number of
deals was also up on the same period
Falklands Oil
& Gas plunges
on empty well
▲
ENERGY
BY OLIVER SHAH
FALKLANDS Oil & Gas saw its market
value halve yesterday after the com-
pany said its Toroa exploration well
to the south of the islands had not
yielded reserves.
Crestfallen investors, who had
hoped to replicate rival Rockhopper’s
successful drilling to the north of the
disputed British territory, rushed to
dump the stock. Falkland’s shares
closed 52.7 per cent down at 95.5p,
giving the wildcat prospector a mar-
ket capitalisation of £295m.
Chief executive Tim Bushell said
the Toroa news was “disappointing”,
but added: “It has to be remembered
that this is the first well in a previ-
ously undrilled frontier basin. We
look forward to continuing our
exploration programme once a suit-
able deepwater rig has been secured.”
Trading in the three other compa-
nies actively drilling in the region
was mixed. Rockhopper and Desire
Petroleum closed in positive territory
but Borders & Southern fell nine per
cent to 65.5p.
Canaccord Adams analyst Richard
Slape was sanguine about Falkland’s
failure to find oil. He said: “Toroa is a
City property deals top £1bn during Morgan Stanley private
last quarter, thanks to foreign buyers equity co-heads resign
▲
PROPERTY
BY MARION DAKERS
OVERSEAS investors looking for sta-
ble assets ratcheted the value of com-
mercial property deals in the City by
57 per cent to £1.1bn in the last quar-
ter, according to research published
yesterday.
A further £1.1bn worth of property
in the Square Mile and Docklands is
under offer with sales set for the
third quarter of 2010, said real estate
firm Cushman & Wakefield.
last year, from 18,279 to nearly 19,100,
echoing the tentative return of confi-
dence to the markets.
In a surprising twist, almost every
region of the globe experienced
growth in mid-market M&A activity,
including the UK, despite fears over
the impact of the coalition govern-
ment’s fiscal tightening drive. UK
mid-market deal values rose by
almost 90 per cent to $19.8bn, while
the number of deals climbed to 1,177
for the half-year.
Financial advisory firms were
quick to reap the gains of the
increased activity over the period.
Morgan Stanley advised on the
very big prospect and the market has
taken a view as to the likelihood of
that being successful. There was
bound to be a negative reaction.”
Keith Morris of Evolution
Securities said smart investors would
be aware of the geographic and geo-
logical differences between
Falkland’s prospect and
Rockhopper’s fruitful Sea Lion site.
Ocean Guardian, the drilling rig
being shared by the four British
explorers, will now pass to
Rockhopper. The Aim-listed firm is
expected to begin work on its second
prospect, Ernest, towards the end of
the month. Analysts say it could
match Sea Lion, which holds an esti-
mated 242m barrels of crude.
ANALYSIS l Falkland Oil and Gas
p
95.50
260
240 12 Jul
220
200
180
160
140
120
100
12 Apr 30 Apr 21 May 11 Jun 1 Jul
Foreign investors accounted for 60
per cent of central London deals in
the last quarter. Bow Bells House on
Cheapside, which was sold to a pri-
vate overseas investor for £140m on
Friday, is a high-value example.
Around £4.45bn of commercial
property deals have been done in cen-
tral London so far this year, more
than double the first half of last year.
The West End has seen a leap of 94
per cent in the total value of transac-
tions in the last quarter, to £1.68bn.
Cushman’s head of central London
CITYA.M. 13 JULY 2010
largest share of deals by value, M&A ADVISERS TO MID CAP COMPANIES, H1 2010
though its advisory fee bill was just
$221m compared to closest rival Institution Deal value No. of deals Advisory fee bill
Goldman Sachs’ $244.2m. 1. Morgan Stanley $13.9bn 109 $221m
Among small cap companies, those
valued up to $50m, the value of M&A 2. Goldman Sachs $12.6bn 85 $244.2m
deals increased by almost a quarter 3. JP Morgan $11.11bn 82 $177.3m
over the past half year, to $60.5bn. 4. Lazard $11.08bn 90 $236m
However, the number of deals only
inched up to 17,546, from 17,228 in 5. UBS $10.3bn 81 $139.9m
the first half of 2009. 6. Credit Suisse $9.8bn 82 $156m
Ernst & Young was the most prolif- 7. Deutsche Bank $9.5bn 62 $119.3m
ic financial adviser to small caps by 8. Rothschild $8.6bn 92 $225m
deal value, followed up by Nomura
and Lazard. But the accountancy 9. BoA Merrill Lynch $6.5bn 48 $107.2
giant’s fee bill paled in comparison 10. Nomura $6.0bn 69 $67.2m
with its banking peers at just $3.4m. Source: Thomson Reuters/Freeman Consulting
Halliwells executive
chairman Ian
Austin has jumped
ship to join
Manchester rival
Heatons
Halliwells moves to avoid administration
by selling off assets to rival legal outfits
Partners at Barlows will this week has given it a 20 July deadline to sell
▲
LEGAL
decide on whether the firm should off its business in order to avoid going
HALLIWELLS, the law firm, is in talks make a move to take over Halliwells into administration.
with a number of rivals to sell off insurance arm. Meanwhile, Halliwells former exec-
parts of its business after filing notice Hill Dickinson and HBJ Gateley utive chairman Ian Austin has joined
to appoint an administrator. Wareing are also understood to be lin- local firm Heatons as head of the
City firm Barlow Lyde & Gilbert is ing up to acquire parts of Halliwells commercial litigation practice.
one of a group of law firms currently business. Austin was appointed to lead
vying for a portion of Halliwells busi- The Manchester based firm filed a Halliwells last September, when the
ness, with the firm considering tak- second notice of intention to appoint firm overhauled the shape of its sen-
ing over its insurance practice. an administrator last week, which ior management.
investment, Clive Bull, said: “It is 2007 and planned to build a large pri-
BANKING
regarded as a relatively safe and stable BY MARION DAKERS vate equity business. But the firm’s
home for equity in an uncertain envi- investment management section was
ronment where returns of other asset STEPHEN Trevor and Stuart Bohart battered by losses during the finan-
classes remain extremely low. Rents are resigning as co-heads of Morgan cial crisis, causing the firm to retool
look set to climb, fuelled by demand Stanley’s private equity division, the its private equity business.
in the retail sector and a lack of quali- latest change as the Wall Street firm Bohart was responsible for equity,
ty office supply.” The jump in demand overhauls its investment manage- fixed-income and hedge-fund invest-
has been echoed in most financial ment unit. ments. The firm has recently
centres, according to property invest- Morgan Stanley investment man- installed a new leadership team led
ment fund PRUPIM. “Though largely agement chief Gregory Fleming by Fleming, a former Merrill Lynch
confined to well-located, prime assets announced Trevor and Bohart’s president and chief operating officer.
let to tenants with good covenants on departure in an internal memo. Trevor and Bohart are the highest
longer leases,” it adds. Trevor joined Morgan Stanley in profile departures since he started.
CITYA.M. 13 JULY 2010
Domino’s sees
sales lift due
to World Cup
▲
CONSUMER
BY JOHN DUNNE
DOMINO’S Pizza yesterday reported a
29 per cent increase in first half pre-
tax profit as sales were boosted by the
World Cup and the company’s spon-
sorship of ITV hit Britain’s Got Talent.
Domino’s, which operates the
British and Irish franchises of the
global delivery brand, made a pre-tax
profit of £17.5m in the half year to 27
June while sales increased by 21 per
cent to £237.1m.
The high profile of Britain’s Got
Talent and the impact of the World
Cup – with football fans tucking into
pizzas while watching games –
fuelled the rise.
Domino’s sold 5,000 pizzas in
London between 2pm and 5pm (kick-
off was 3pm) and 24,000 pizzas in
England, up 374 per cent on the same
time last year when the national
team met Slovenia on 22 June.
Meanwhile, online sales grew by
more than 60 per cent in a massive
move towards internet ordering.
Chief executive Chris Moore said:
“It is easy to try and attribute our suc-
cess to one thing – be it the weather,
or Britain’s Got Talent, or the World
Cup – but the underlying trend shows
a more compelling picture.”
He added: “We have now been in
business for 25 years and those years
of experience give us the foundation
from which we can seize every oppor-
tunity. It is great pizza, delivered as
quickly as possible, by dedicated fran-
chisees and store teams, which result
in solid and steady sales growth.”
Domino’s, which has 627 stores, is
paying an interim dividend of 4.5p per
share, up from 3.5p the year before.
FAST FACTS | DOMINO’S
● Domino’s UK was founded 25 years ago and
now has 627 outlets.
● The company employs 60,000 people world-
wide and makes 60m pizzas a year.
● Domino’s franchises cost £280,000.
Consumer News 13
Thomas Cook
in €30m deal
for Oger tours
LEISURE
▲
HOLIDAY group Thomas Cook has
bought German tour operator Oger
for €30m (£25.2m).
Oger specialises in holidays in
Turkey and tours and carried more
than 400,000 passengers last year.
It reported gross revenues of
€256m and operating profit of €3.3m.
Thomas Cook said that the deal
Domino’s chief executive Chris Moore says sales will keep rising. Picture: Micha Theiner could create €8m in cost savings.
Manny Fontenla-Novoa, group chief
29 per cent
executive, said: “I am delighted to be
able to bring such a well-established
and respected brand as Öger Tours
increase in first half into the Thomas Cook Group.
pre-tax profit He added: “We have been exploring
opportunities to reinforce Thomas
Cook’s strong position in Germany,
£17.5m
pre-tax profit total
one of the group’s largest and most
important operating segments, and
this acquisition represents an impor-
tant step in our strategy to achieve
this.”
24,000
pizzas sold in England
Last week Thomas Cook and travel
transaction processing business
Amadeus announced a global distri-
bution agreement extension for
during England v Slovenia
World Cup match another five years.
The addition of five new markets –
4.5 pence
India, Denmark, Finland Norway and
Sweden – brings to 14 the list of coun-
tries where Thomas Cook and
per share - interim dividend Amadeus work together. Others
include Austria, and Belgium.
 14 News CITYA.M. 13 JULY 2010

Kier loses Mattar but still bullish Regulatory doubt a threat

secured almost 90 per cent of its tar- had been having an affair.
to business, finds survey
▲

ENGINEERING
geted revenue on its order books for They married after Dodds split from
BY DAVID ELWARD 2011. his wife.

CIVIL engineering and building spe-
cialists Kier said yesterday record net
cash balances and strong order books
will push it towards the upper end of
market expectations when it reports
full year underlying profit before tax.
The update came as the group
announced finance director Deena
Mattar is to leave the company, with
Haydn Mursell of Balfour Beatty set to
replace her.
Kier said it ended the financial year
with net cash balances at a record level
of more than £170m and having
Mattar’s departure follows that of
her husband John Dodds, former chief
executive, who retired last year after
40 years with the company.
The couple hit the headlines four
years ago when it was revealed they
Kier finance director
Deena Mattar (left)
will be replaced by
Haydn Mursell of rival
firm Balfour Beatty
Phil White, chairman of Kier, said
Mattar was highly respected and
would be missed “enormously”.
Mursell, who has been deputy
group finance director of Balfour since
October 2008, will arrive at the group
in November and will have to grapple
with the effects of public sector cuts.
But Kier anticipates cuts to the
Building Schools for the Future pro-
gramme will have a limited impact.
Kier made £52.8m last year and ana-
lysts forecast between £52m and
£56.2m when results are announced.
▲
BUSINESS
ORGANISATIONS have cited regulato-
ry uncertainty as the key threat to
business performance for the next 12
months as the global economy contin-
ues the climb out of recession.
The third annual Ernst & Young
Global Business Risk report found
political uncertainty surrounding the
regulatory system was contributing to
businesses placing regulation in the
top spot.
Recruiting and managing talent
also feature as a key concern.
Gerard Gallagher, advisory partner
and head of private sectors at Ernst &
Young, warned now is not the time for
companies to take their eye off the
ball. “Although there is some sense of
normality with firms now refocusing
on how to compete with available tal-
ent and looking at the risks as well as
the opportunities of investing in
emerging markets, access to credit is
still the second highest risk that busi-
ness face and the risk of a double dip
recession the third,” he said.

Armani sets
Luxury shops out resilient
in boost from sales report
Indian spend

▲
RETAIL
ITALIAN fashion house Giorgio
Armani yesterday said it had displayed
“resilience” to battle through the glob-
al economic crisis, as it announced
There was 31 per increase in Thai falls in its sales and profits.
▲

RETAIL
BY JOHN DUNNE
THE number of luxury goods pur-
chased by Indian shoppers visiting
the UK in June surged by 89 per cent
compared with the same month last
year, according to a retail survey.
The figures, compiled through a
poll of 15,000 businesses, reveals the
extent to which high street spending
is fuelled by foreign spending power.
According to the data, from finan-
cial services firm Global Blue, Indians
are now high on the list of overseas
visitors from emerging markets who
are heading to Britain in search of
designer goods.
And many Indian shoppers are buy-
ing designer goods having previously
been more inclined to shop in mid
market high street stores. Brands
including Miu Miu, Prada and Jimmy
Choo are the most popular with
Indian shoppers, the survey found.
There was an overall 31 per cent
increase in the number of Indian
shoppers in UK shops.
Other emerging markets have pro-
duced rises including Brazil which
saw an 11 per cent increase in luxury
goods transactions.
purchases and almost a 50 per cent
rise in Malaysian customers.
Meanwhile, the average amount
spent by Indian visitors on shopping
has risen from £398 in 2008 to £444
in 2010.
Global Blue vice president Nigel
Dasler said: “India has become an
important market for the UK with a
31 per cent rise in travellers. This may
be an indication of the growing
wealth of the country.”
The average spend by Malaysian
customers in the UK is now £480 –
£52 more than in 2008.
Much of the rise in foreign visitor
spending has been in London, while
periods where the pound has been at
its weakest have encouraged savvy
shoppers to make the most of the
exchange rate.
Jill McArdle head of marketing at
Westfield London shopping mall said:
“We have seen significant footfall
from the Indian tourist market dur-
ing the summer period and specific
brands that have experienced strong
sales from Indian tourists holidaying
in the capital.”
She said Jimmy Choo shoe sales
had risen as a result.
The company said consolidated rev-
enues shrank by six per cent to €1.52bn
(£1.27bn), down from sales of €1.62bn
last year. And the company saw its
operating profit plunge by 28 per cent
to €218m from €303m.
The results are the first since the
management structure of the compa-
ny, owned entirely by the 76-year-old
designer, was reorganised last autumn
following a deterioration in his health.
Armani had delegated power by pro-
moting a trio of executives into the
upper echelons of the company hierar-
chy. Livio Proli, who was appointed
general manager, and John Hooks,
who became deputy chairman, both
entered the Board, and Gianni
Gerbotto took over the company’s
financial management.
But while Armani felt the effect of
purses tightening in Europe and the
US, the company saw considerable
growth in the Far East. Sales in the
Chinese market grew by 32 per cent.
Armani, who unveiled his haute
couture collection in Paris last week,
said it had been a tough year through-
out the industry but its solid financial
position would give it momentum
Giorgio Armani saw profits at his design-house plunge 28 per cent last year. Picture: REUTERS going forward.

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

Chartered, will become a director in DWF underwriter for construction, engineer-

HSBC Private Bank
The bank has appointed three associate direc-
tors to its high net worth team.
Simon Gamse has over 28 years of experi-
ence, including working for Merrill Lynch,
Goldman Sachs and Barclays Wealth.
Jonathan Reed joins from Seven Investment
Management, while Paul Avant (pictured)
returns to London to take up his new position,
having previously been seconded to HSBC’s pri-
vate clients team in Jersey.
Dunn, Rogers and Humphries join as
RBC Capital Markets managing directors from the Royal
The corporate and investment bank has Bank of Scotland, BNP Paribas and
hired Martin Dunn, Chris Rogers, Nicole Barclays Wealth respectively.
Humphries and Laurence Sherlock to its Sherlock, who was head of business
global financial institutions group. development in Europe for Standard
correspondent banking.
Frontier Capital Management
The investment manager has promoted
Colin Hodges to the role of chief execu-
tive and Michael Azlen, the founder of
the company in 2004, to executive
chairman.
Hodges joined Frontier Capital in
2006 after seven years with Gartmore
Investment Management in Tokyo and
London.
In addition, Marc Davies becomes
head of investments after four years
with the firm as an investment analyst,
prior to which he was a financial
accountant for Goldcrest Films
International.
The law firm has appointed five new
lawyers to its insurance team in
London.
Peter Blake joins from Kennedys,
Nick Connolly from Barlow Lyde and
Gilbert and Dan Verow from BLM, all as
senior solicitors.
James Manning also joins from
Barlow Lyde and Gilbert as a legal exec-
utive, while Sophie Mourmouris moves
over from Baker and McKenzie as a
solicitor.
RSA
The insurance group has hired Soledad
Vitale as a renewable energy under-
writer.
Vitale previously worked as an
ing and renewable energy at HSB EIL,
after having moved to the UK from
Marsh’s Argentina office.
Syscap
John Allbrook is to join the independent
finance provider as its new executive
chairman.
He was previously chief executive of
asset sales and services provider
GoIndustry-DoveBid, leading the com-
pany through its Aim listing and the
acquisition of DoveBid for $27m
(£18m) in January 2008.
Prior to that, he worked for nine
years at GE Capital, latterly as EMEA
managing director for Sun
Microsystems Finance.

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
CITYA.M. 13 JULY 2010
Avanti gets £70m in share sale
▲
TECHNOLOGY
BY STEVE DINNEEN
BROADBAND provider Avanti is
preparing to launch a new satellite it
says will be able to provide superfast
broadband to swathes of Europe and
the UK without the need for expen-
sive underground cables.
It then plans to send out a second
satellite in 2012 that will connect
thousands of people in the Middle
East and Africa.
A third satellite bound for the skies
Every worker
online in 2012,
says Lane Fox
▲
TECHNOLOGY
BY ALBERTINE BRANDON
MORE than a fifth of the British pop-
ulation are missing out on access to
public services and employment
opportunities because they do not
use the internet, the government’s
digital champion said yesterday.
Launching her “Manifesto for a
Networked Nation”, Martha Lane Fox
called on the government, industry
and charities to take urgent action to
help get every British citizen of work-
ing age online by the end of 2012.
Around 10m adults in Britain have
never used the internet.
“The disadvantages of being offline
are becoming so great and growing at
such a pace, that for reasons of social
justice and economic necessity we
must act now”, Lane Fox said in the
manifesto.
Recommending a rewards scheme
to encourage first time users, she said
Google invests $200m in game maker
▲
TECHNOLOGY
BY STEVE DINNEEN
GOOGLE has invested up to $200m
(£133m) in social gaming group
Zynga as it prepares to crash into the
games arena later this year, according
to sources close to the firm.
Google Games will specialise in
“social” games similar to those devel-
oped by Zynga, which users can play
over Latin America is slated for a later
release.
The firm yesterday completed a
£70m share placement which will
help to finance a bond used to pay for
the European satellite, known as
HYLAS 1.
The placing, which represented
23.7 per cent of Avanti’s existing
issued ordinary share capital, was car-
ried out by Cenkos Securities and
Jefferies International.
Aim-listed Avanti will now eye a
move to the main market, which
the government should expect people
to use some key online public services
and provide training to those who
need help.
Lane Fox, who co-founded travel
and leisure website lastminute.com,
also said there was a sound business
case for the internet initiative.
If everyone in Britain were online,
the total benefit to the economy
would exceed £22bn she said, citing a
recent survey by advisory firm
PricewaterhouseCoopers.
Prime Minister David Cameron
praised the campaign. He said:
“Promoting digital inclusion is essen-
tial for a dynamic modern economy.”
Martha Lane Fox said
getting the whole
country online would
benefit the economy
by £22bn.
online without downloading soft-
ware.
Zynga shot to fame after releasing
hit games including FarmVille and
Mafia Wars over Facebook.
It is now estimated to have revenue
of up to $350m, which analysts
believe could rise to $1bn in 2011.
Google is developing its own social
network in the style of Facebook,
thought to be called Google Me, after
would put it into the FTSE 250.
The directors of the firm, which is
working to prevent a six-week delay
in the September launch of the satel-
lite, topped up their share holding
during the placement.
The firm claims the satellite could
solve the “digital divide” in the UK by
allowing those in rural areas to con-
nect to fast broadband without mas-
sive infrastructure costs.
The firm also announced it is mov-
ing its head quarters offshore to take
advantage of tax breaks.
BEST OF THE BROKERS
ANALYSIS l GlaxoSmithKline
1,300 p
1,155.00
12 Jul
1,250
1,200
1,150
1,100
12 Mar 30 Apr 21 May 11 Jun 1 Jul
GLAXOSMITHKLINE
Royal Bank of Scotland (RBS) has given
GlaxoSmithKline (GSK) a “buy” rating and
said that it believes that the drug company
is returning to sales growth in 2010 on an
underlying basis, excluding pandemic flu
sales. RBS has made some minor adjust-
ments to its sales and costs forecasts
ahead of GSK’s second quarter results.
NEWS | IN BRIEF
J&J to buy Micrus for $480m
Johnson & Johnson will buy Micrus
Endovascular for $480m (£319.8m) to
expand its portfolio of medical devices
that treat and prevent strokes, the com-
panies said yesterday. J&J will pay $23.40
a share, a 5.5 per cent premium over
Micrus’ closing price on Friday. Micrus’
shares have climbed 50 per cent this year.
its gmail-based network Buzz failed
to attract a big audience.
Google is desperate to compete with
Facebook in the social networking
stakes but is unlikely to make much of
a dent in its 500m user base – especial-
ly after its founder Mark Zuckerberg
boasted nothing can stop the site from
hitting the 1bn mark.
Google said: “We do not comment
on rumour and speculation.”
Technology News
Every home may have a
3DTV within three years
▲
TECHNOLOGY
THE sale of 3D TVs will be driven by a
massive expansion in 3D video
games, according to an executive at
Ubisoft, the world’s biggest game
publisher.
UK head of marketing at the firm
Murray Pannel said the new technolo-
gy could be in every living room with-
in three years.
ANALYSIS l Michael Page
460 p
393.40
12 Jul
440
420
400
380
360
12 Mar 30 Apr 21 May 11 Jun 1 Jul
MICHAEL PAGE
Citigroup has raised its rating on Michael
Page from “hold” to “buy” citing an acceler-
ation in the recruitment group’s gross prof-
it in the UK and Europe. Citigroup said that
UK gross profit has seen sequential
improvement, the final large market to turn
for the group. Citi notes that company con-
fidence remains robust.
To appear in Best of the Brokers email your research to notes@cityam.com
Motorway operators to merge
Italian motorway operators Atlantia and
SIAS said yesterday they plan to merge
their Chilean operations into a billion-euro
company, which may be listed.
Atlantia and SIAS filed their plan to
merge Societa Autostrade per il Cile srl
(APC) and Societa Autostrade Sud
America srl (ASA) with the Milan registry.
Microsoft shows Apple does not
have monopoly on tablet PCs
▲
TECHNOLOGY
MICROSOFT chief executive Steve
Ballmer showed off new tablet-style
devices running the Windows 7 oper-
ating system from a host of top manu-
facturers yesterday, underlining the
giant software company’s eagerness
to counter the explosion of interest in
15
Publishers are already well under-
way in developing next-generation 3D
games, which they say will be even
more immersive than the current
crop of titles.
Some basic 3D games, including an
Avatar adaptation, have already been
released but have been poorly
received, largely due to a low prolifer-
ation of hardware capable of taking
advantage of the new technology.
ANALYSIS l Tullow Oil
1,350 p
1,300
1,138.00
12 Jul
1,250
1,200
1,150
1,100
1,050
1,000
12 Mar 30 Apr 21 May 11 Jun 1 Jul
TULLOW OIL
Numis has rated Tullow Oil as “add” saying
that the company’s investments in Ghana
are undervalued. Numis said it is apparent
that the oil company is on-track and
believes infrastructure investments will
play pivotal roles in the development of
future discoveries. Numis was impressed by
Tullows’ investments in Accra and Takordi.
UK will not abolish food watchdog
Health secretary Andrew Lansley denied
yesterday he was planning to abolish
Britain’s food watchdog but wanted to
see some of its duties reassigned. Lansley
has criticised the agency’s promotion of
traffic-light labelling on convenience food
to tackle rising levels of obesity, saying its
approach was counter-productive.
Apple’s iPad.
New Windows-powered tablet or
slate devices -- small, hand-held, wire-
less computers -- are in the pipeline
from Acer, Dell, Samsung, Toshiba,
Sony and a dozen other PC makers.
Apple’s iPad, which launched in
April, has already sold more than 3m
units worldwide.
 16 News WORDS BY STEVE DINNEEN CITYA.M. 13 JULY 2010

SMEs will save the UK... but my kids

are all learning Spanish just in case
Isis boss and private “In terms of
equity pioneer regulation, it
Wol Kolade argues always gets
that the state needs worse.
to take a backseat Politicians
say ‘what can

W
OL KOLADE, managing partner
at Isis, is worried. The future of we do to help
private equity – and the UK
economy as a whole – is at a business?’ I
turning point, he says, and he’s not sure
which way things will go. say: get out
And when Kolade worries, people
should listen – he knows what he is talk- of the way.”
ing about. He joined the private equity
vehicle 17 years ago, having worked on
scores of investments – most of them, he
boasts, providing a generous rate of
return. He has also had a stint as chair-
man of the British Private Equity and
Venture Capital Association, taking up the
role in the bad old days of 2007, when his
industry was hated, just in time to receive
the grilling of his life from the Treasury
Select Committee.
Small business is his passion, the force
that gets him out of bed in the morning –
“hug an entrepreneur” he jokes at one
point – and he thinks it can be the saviour
of the British economy. “Big companies
don’t really care about the UK,” he says,
speaking with the measured enthusiasm
of a seasoned speaker. “They will go any-
where. It’s SMEs who drive the economy.”
Isis invests in just such companies –
small, dynamic, growing businesses,
where it can take entrepreneurial spirit
and supplement it with experience.
Kolade, 43, who trained as an engineer
at Kings College, says his firm is finally
loosening the purse strings after a period
of consolidation in the wake of the finan-
cial crisis. Last month it invested £4m in
GettingPersonal.co.uk, a gift retailer with The biggest problem most of the firms Wol Kolade says his can we do to help business?’ I say: ‘get out Banks must play their part in encourag-
a £10m turnover. It was the firm’s third he invests in face is coming to terms with firm is finally loosen- of the way’. ing borrowing too. Kolade says if lending
investment in a month, having ploughed the daily grind of running a successful ing the purse-strings “What isn’t understood in government doesn’t pick up soon, a “whole lot” of busi-
£3.2m into business support firm Inspired business. “I don’t think any entrepreneur in the wake of the circles is that entrepreneurs are the ones nesses will go bust over the next five years.
Thinking Group and buying Adapted goes into this game to run a business - financial meltdown. who will drive us out of recession.” So how worried is he about the future?
Vehicle Hire. they go into it in order to execute on some Kolade passionately believes that most “I’m getting my children to learn lan-
They will all hope Isis can work the kind vision they have – that’s their drive. The Picture: services can be better taken care of by the guages just in case. They are learning
of magic that took clothing retailer Fat running the business actually becomes Micha Theiner private sector – things like fostering, chil- Spanish – I’d get them to take up
Face from 20 stores to 97 – and made it a quite irritating. Our job is to capture the /City A.M. dren’s services, adult care. “There’s no Mandarin but it’s just too complicated.
high street staple – in the five years before best of what they have to give and screen need for these things to be done in the “The aberration in the last 2,000 years
its exit in 2005. out the rest.” public sector. The private sector can do it of economy is the dominance of the west.
Isis is a compact operation, with 55 staff After three years he wants a firm to cheaper, more effectively and more effi- Population has always been the driver of
spread over offices in London, Manchester, have arrived in a position where founders ciently,” he says, banging his coffee cup on wealth but the industrial revolution and,
Birmingham and Leeds. Most of the 25 can give up their hands-on role altogether, the table top to emphasise each point. to a lesser extent, slavery, negated that.
professionals in the company are directors providing input as a director or sharehold- “The next revolution will be in that. What we’re seeing now is a reversion to
in firms Isis has invested in. er. After that, he says, his preferred route And I’m looking forward to it.” the norm, with China and India being
It will usually buy between 25 and 75 of exit is a trade sale. He says the squeeze in public spending where the wealth is. Now we’re in the
per cent of a firm, a range Kolade says He claims Isis has lost its investment in should be used to drive opportunities to information age, they are the places that
strikes the right balance of power between less than 10 per cent of cases over the last the private sector, where small enterprise will benefit, not here.”
investor and entrepreneur. decade. The majority make a decent can take up the slack and drive the econo- The challenge, he believes, is for politi-
return and ten per cent see far higher my. Whether it will achieve this depends cians to learn to trust business – and
multiples, as in the case of Fat Face. on how the government manages the cuts quickly: “You politicians in Europe – do
CV | WOL KOLADE The main hindrance to his work, he “People are and whether businesses have the confi- you understand what our children will be
says, is government intervention: “In dence to keep borrowing. inheriting if we carry on as we are?”
Isis: Kolade joined the private equity firm in terms of regulation, it always gets worse.” thinking about This is one of his major concerns about But it isn’t all doom and gloom for the
He campaigned against the hike in cap- the UK economy – that the reputation of UK. Kolade says he has seen a cultural shift
1993 and is managing partner of the busi-
ness. ital gains tax (CGT) in the run-up to the debt in the debt has been irrevocably tainted. “People in recent years. “The dotcom boom and
election; a “purely political” levy which he are thinking about debt in the wrong bust did a lot of damage but one thing it
BVCA: He was named chairman of the British
says will “destabilise entrepreneurship”. wrong way. way – debt is OK. Companies running with did was to legitimise entrepreneurship.
The government’s biggest mistake, cash in the bank are inefficient. In order “This has fed into the TV programmes –
Private Equity and Venture Capital
Association in 2007, after serving as a coun-
though, was not fixing the rise in CGT for Debt is OK. to grow you need to borrow – because the likes of Dragon’s Den and The
the duration of the parliament. “It could then you are betting today for tomorrow. Apprentice. These resonate with the pub-
cil member from 2002. go up again next year. It creates an atmos- Companies “In the latter half of the last financial lic. I’ve got a good feeling about the British
phere where people don’t know what is cycle it got out of control but I challenge entrepreneur. We’re inventive, creative
Barclays: He spent three years as a banker coming.” running with you to find me anyone who hasn’t benefit- people.
at Barclays from 1990. So how harmful does he think the hike ed from debt. Anyone who has bought a “I was doing a talk to a bunch of 14 year-
has been? “I’ll tell you in ten year’s time. cash in the house, retailers, governments, everyone. olds last month. At the end I said ‘So who
London School of Economics: He is a coun- That’s when you will see how much dam- “It annoys me when people say leverage wants to run their own business when
cil member and chair of the audit committee age has been done.” bank are is bad – it’s what has built the entire civil- they’re older?’ I was expecting one or two
of the University and a director of the Social Despite his campaigning, he says he is isation we live in. But It usually takes a but more than half put their hands up.
Finance Board (SFB). not interested in politics. “My job is to try inefficient.” generation for people’s attitude towards That has to be a good thing for business in
and work around it. Politicians say ‘what debt to change.” this country.”
BROKERS WILL ENTER.WILL YOU?

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 18 News
Think inclusively and watch people help you
DRAGON’S VIEW
JULIE MEYER
T
HIS past week saw the departure
of my good friend, Richard Titus,
who had been chief executive of
Associated Northcliffe Digital
(AND) within the Daily Mail and
General Trust (DMGT) empire. I intro-
duced Richard to DMGT chairman
Lord Rothermere at a lunch in
September 2008. And sometime later
Titus was selected to energise the
Associated digital business.
Titus is an interesting animal. An
expat American, like myself, he has
sold businesses to WPP, built firms in
the media tech space, and worked at
the BBC where he was part of the sen-
ior team and a key driver of the
iPlayer.
He is not the only media executive
to be changing jobs. Will Lewis, who
resigned as chief executive of Euston
Partners, the Telegraph Media Group
spin-out, reemerged as group general
manager of News International last
week. It is thought his job is to stem
“unsustainable losses” at Wapping.
Lori Cunningham, digital strategy
director of Johnson Press, left her role
recently as well.
What’s going on with this game of
musical chairs? As the media moguls
enjoy the legendary Allen & Co Sun
Valley conference this weekend, the
meta-information is not who’s buying
whom, but who’s building the new
business model for firms which will
organise our lives online.
Murdoch has been the most vocal
about the paid content battle, but the
battle lines between Google, Apple,
Microsoft and Facebook are where the
real action lies. Each comes at the
prize from a different location. Google
has created a multi-billion pound
empire aggregating anonymous per-
sonal information for advertisers, and
giving no economic benefit back to
users other than a free search. The
information we are confiding to our
Facebook pages is largely untouchable
by Google, so a massive threat to its
plans. Apple started the remapping of
media business models by busting
open the mobile carrier cartels with
its iPhone and challenging the record
labels with the iPod.
EU toughens
up protection
for investors
▲
FINANCIAL SERVICES
BY HARRY BANKS
ACCOUNT holders in the European
Union who are faced with a run on
their bank would get their money
back within a week under a draft EU
law published yesterday to protect
consumers in the wake of the global
crisis.
The European Commission’s pro-
posals are intended to restore investor
confidence, shattered by the worst
financial crisis since the 1930s, dur-
ing which household savings were
whittled away and governments were
forced to shore up banks.
“We don’t want to await a new
Madoff case in Europe to better pro-
tect investors,” said EU internal mar-
ket commissioner Michel Barnier.
He added: “We are not talking
about offsetting the risk of the invest-
ment itself but we want to protect
them against fraud, negligence and
sometimes just mere incompetence
on the part of those [to whom] they
have entrusted their money.”
Some of the changes proposed by
Barnier seek to plug the sorts of gaps
highlighted by Wall Street fraudster
Q&A: EU INVESTOR PROTECTIONS
Q. WHAT DO THE EU PROPOSALS TO
BOLSTER PROTECTIONS COVER? A.
A. They will protect bank account
holders and retail investors such
as introducing faster and better pro-
tection of investors who face a run
on their banks or have been the vic-
tims of fraud. A public consultation
on improving the safeguards for
insurance policy holders has also
been opened.
Q. WHY WAS IT NECESSARY TO
BOOST INVESTOR PROTECTION?
A. The EU plans are part of the
wider efforts to learn from the
financial crisis, in which the savings
of millions were hit by extreme mar-
ket volatility and some banks had to
be rescued by taxpayers.
Q. WHAT WILL IT MEAN FOR BANK
DEPOSITS?
CITYA.M. 13 JULY 2010
Microsoft has the right strategy
insofar as it’s giving the user some-
thing back in return for their personal
data – an opportunity to have cash
back or to give it to a good cause.
The winners of the media land-
scape in the next decade will be those
companies that think inclusively
about their business model – cutting
in the artist, the user, the developer,
the gamer.
Like most things in life, if you make
it in someone’s interest to help you,
you will go further.
Julie Meyer is chief executive of Ariadne
Capital and a dragon on the BBC’s Online
Dragon’s Den.
Bernard Madoff, who swindled
investors out of billions of dollars
through a worldwide scam that he
ran for decades.
The proposals are part of wider EU
efforts to introduce “brick by brick,
week by week” all the reforms
pledged by the Group of 20 countries,
which includes the European Union,
to learn from the financial crisis.
Highlighting the complexity of
introducing such reforms across the
27-country bloc, one planned EU
measure to centralise the supervision
of banks, insurers and markets is
deadlocked because of British opposi-
tion to giving the EU supervisory
authorities powers over national reg-
ulators.
Barnier said talks on that measure
were now in the “final straits” but
that the new bodies must be credible
and effective. “The new authorities
will not replace the existing national
structures,” he said.
Barnier proposed toughening EU
rules that protect bank account hold-
ers and retail investors. He also
opened a public consultation on
improving how insurance policy hold-
ers are safeguarded.
It proposes
increasing deposit
Q&A
guarantees to €100,000
(£83,000) per depositer per bank by
the end of 2010, which covers 95 per
cent of EU account holders. From the
end of 2013 customers will get
deposits back within seven days,
compared to three months currently.
Q. WHAT DOES IT MEAN FOR
RETAIL INVESTORS?
A. The Commission proposes
changing 1997 law on compensa-
tion to include full or partial payouts
within nine months compared with
several years currently. Compensation
could rise to €50,000 from €20,000
and consumers would no longer have
to swallow the first 10 per cent of loss-
es. It wants compensation schemes to
be funded to a level of 0.5 per cent of
the value of assets covered.
 Investment | Contracts for Difference
19

CORPORATE
EARNINGS TO Service providers get
SET THE TONE
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
squeezed by the cuts
Profit margins erode
L
AST week saw extraordinary gains on equi-
ty markets just when it looked like we were
heading for another meltdown. In the pre- as the government
ceding week, numerous technical support
levels were breached as a number of major indices gets competitive,
slumped below significant retracement levels. There
was talk of “death crosses” appearing on various says Kathleen Brooks
charts as 50-day moving averages slipped below
their corresponding 200-days, suggesting further

downside to come. But when US traders returned
from their long holiday weekend they brought back
a renewed appetite for stocks. Many stock indices
had their best week in nearly a year, with the S&P
finishing 5.4 per cent higher.
Looking at the charts, it appeared that equities
had fallen too far, too fast. A corrective rally was
due and the S&P bounced off an area of support
created by Fibonacci retracements of the October
2007 to March 2009 and March 2009 to April
2010 rallies. Fundamentally, there had been so
much negative news surrounding the markets that
it took only the slightest let-up in gloom to lift spir-
its. BP reported that it was ahead of schedule to
stem the flow of oil from its gushing well in the
Gulf of Mexico; the European banking stress-tests
were increasingly spun as a potential market posi-
tive; even the grim US economic data of the past
few weeks suddenly had an upside, at least as far
as equities were concerned; and given that unem-
ployment and housing are still so awful, there is an
increased possibility of a second round of quantita-
tive easing being introduced.
This week sees the start of the second quarter
earnings season, and aluminium maker Alcoa yes-
terday released its numbers. This will be an unusu-
al first week as some big names are joining Alcoa
and reporting early. These include Intel, AMD,
Google, JP Morgan, General Electric, Bank of
America and Citigroup. It is going to be a tricky
one for investors as corporations have been reluc-
tant to give much in the way of forward guidance.
But investors will be mindful that year-on-year
comparisons could flatter once again, so compa-
nies’ statements and future outlooks will be crucial
in forming future investment decisions.
T
HE words austerity and budget are
now commonplace in our national
lexicon. For those with a glass-half-
full mentality the shrinking of the
state offers an opportunity for private out-
sourcing firms. However, some analysts
have now thrown that into doubt.
Execution Noble, the investment bank-
ing group, has produced research suggest-
ing that service providers in the private
sector will no longer be able to see govern-
ment contracts as a free lunch. Instead it
argues that the government will demand a
tougher bargain, which could squash profit
margins for maintenance companies, IT
firms, administration firms and manage-
ment consultants.
As details of the extent of the UK’s budg-
et cuts have been revealed – in some cases
budgets will be cut by up to 40 per cent –
outsourcing companies came into focus:
“Outsourcing remains one of the most
practical ways to reduce the UK’s indebted- Outsourcing companies are
ness given the scope for savings, approach- in for a pressing time
ing 30 per cent, which can be achieved Picture: GETTY
without adversely impacting service levels,”
Execution Noble’s analysts wrote.
This is an appealing prospect. But requires a deep level of knowledge and tion. Firstly, try to choose companies that
although demand from the state for these skill. Babcock also has a strong global pres- have specific areas of expertise, or are in
services is rising, the outcome might not be ence. sectors where there isn’t tough competi-
so favourable as the government pushes for Execution Noble also likes the prospects tion. Secondly, look for attractive features
a better deal fuelling higher competition. for WSP Group, the consulting firm, due to that might make stock prices rise in volatile
Due to this, contracts for difference (CFD) its global business and public/private sector financial markets – for example, stocks that
traders who want to ride a wave of greater balance. Added to this, WSP Group has an are cheap or have strong dividend yields.
outsourcing by the government need to attractive dividend yield of 4.3 per cent. In In the past government contracts were
pick companies that have scale or an advan- contrast, it has a sell recommendation for considered a safe revenue flow. This is no
tage, such as high barriers to entry. Mouchel Group, the consulting and high- longer the case. Although the government
Babcock International, the engineering ways business. Execution Noble argues that will still spend a huge amount of money
company that provides marine mainte- the company will be hit by tighter-than- this year, it will be less than in past years
nance to the government, is one of forecast transport budgets, which should and companies will have to try harder to
Execution Noble’s top stock picks because hurt revenue growth in the medium-term. get a slice of the government spending pie.
there is a high barrier of entry – defence Traders should think about copying the For traders this leaves the task of sifting the
maintenance is highly specialised and investment bank’s method for stock selec- wheat from the chaff.

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Depressed mining stocks are finally
starting to look attractively valued
After being hit by risk
aversion and the tax
on profits, the sector
is appearing cheap,
writes Jessica Mead
I
T WAS a tough second quarter for
London-listed miners, which were
dealt a severe blow by a toxic combi-
nation of general risk aversion, a
planned tax on miners’ profits in Australia
and a government-orchestrated slowdown
in China. After reaching 25,356.51 on 6
April – its best level since July 2008 – the
FTSE 350 mining sector took a nosedive in
the three months that followed and ended
the quarter some 7,000 points lower at
18,412.96. And despite a strong start to July,
which saw the mining sector rise back
above the 20,000 level, the sector is still
trading at a 25 per cent discount to the
wider market, according to Citigroup.
The diversified mining stocks – Anglo
American, BHP Billiton, ENRC, Rio Tinto,
Vedanta Resources and Xstrata – are cur-
rently trading on a base price-to-earnings
(p/e) multiple of 6.2 times. Multiples have
recently been ranging within a band of 8-
10 times, suggesting that the market may
have oversold.
Consequently, contracts for difference
(CFDs) traders looking for another opportu-
nity to get exposure to emerging markets’
appetite for natural resources may well be
rubbing their hands at the thought of such
cheap valuations. But do current levels rep-
resent an attractive entry point, or are we
likely to see lower levels?
Citi analyst Heath Jansen falls into the
former camp: “This presents an attractive
entry point in our view for those who are
sceptical of the extent of the recent sell-off
in commodity markets. We believe the
market has overshot the recent uncertain-
ty emanating from the Chinese govern-
ANALYSIS l Performance of the FTSE 350 miners compared to spot metals prices
5,000
4,500
LME index (left-hand side)
4,000 FTSE 350 mining index (right-hand side)
3,500 R squared = 0.86
3,000
2,500
2,000
1,500
1,000
500
Nov 01 Apr 03 Sep 04
THE TIPSTER
ASHMORE
GROUP REAPS
EMERGING
SUCCESS
I
NVESTMENT management company
Ashmore Group releases its trading
update tomorrow. It was recently recom-
mended as a “buy” by KBC Peel Hunt as it
should benefit from continued allocation of
investment funds to emerging markets and
European corporate credit markets.
Investment | Contracts for Difference 21
ment-led slowdown and the Eurozone sov-
ereign debt crisis.” He adds: “The market
could be placing too much emphasis on
the movement in spot prices in the wake of
recent global uncertainties, thus ignoring
the medium- to long-term fundamentals,
which appear much more stable.”
However, there is currently a strong pos-
itive relationship between FTSE 350 min-
ing stocks and spot prices – see chart. In
contrast, earnings momentum is a much
less reliable indicator of stock performance
during periods of market volatility. This is
more relevant during the mid-cycle – still
some way off – when moderate move-
ments are the norm and the future is fair-
ly certain.
Another relationship that CFD traders
should be looking at is the correlation
between Chinese monetary expansion and
net copper imports. With money growth
beginning to moderate, market fears of a
slowdown in copper demand from the
Chinese construction sector appear valid,
says Jansen although he adds that these
fears may turn out to be exaggerated.
Indeed, figures out yesterday showed that
China’s copper imports fell for the third
straight month, by 17.3 per cent to 328,231
tonnes. This would appear to support the
view of WorldSpreads’ Alastair McCaig,
who says that we may well get a bit more
downside over the next few weeks and that
we might get some cheaper levels at which
to pick up mining stocks.
CFD traders can either choose to take a
punt on the UK mining sector or on specif-
ic stocks. Individual stocks may well be
attractive since traders with long CFD posi-
tions receive dividend payments.
JP Morgan’s David Butler says: “We
should also almost certainly see the restart
of interim dividends at Rio Tinto and
Xstrata, while BHP Billiton never stopped
paying out. Only Anglo American appears
unlikely to take the plunge just yet.” In his
view, investors should make the most of
the uncertainty and dip a toe into a sector.
JP Morgan’s preferred plays are Rio Tinto,
Xstrata and Vedanta. They could well prove
to be a profitable seam for the second half.
Digging for profit
35,000
Source: Citigroup Picture: GETTY
30,000
25,000
CALENDAR | EARNINGS SEASON
20,000 Tuesday 13 July Experian – Q1
Burberry – Q1 Mothercare – Q1
15,000 Intel – Q2 JP Morgan – Q2
Wednesday 14 July Google – Q2
Richemont – full-year Friday 16 July
10,000 Barratt Developments – full year trading update General Electric – Q2
Rio Tinto – Q2 Citigroup – Q2
5,000 Wetherspoon – trading update Bank of America-Merrill Lynch – Q2
Thursday 15 July LVMH – Q2
Carrefour – Q2 Mattel – Q2
Feb 06 Jul 07 Nov 08 Apr 10
Ashmore’s shares have risen 10 per cent since
then, but are still 2 per cent down for the
allow the share price to continue its recent
strength. Capital Spreads quotes a price of
year. The 272p level should provide resistance
to the upside again, with support at 250p. A
389.3p-390.0p.
Cable took a double whammy yesterday
break of the 272p area should see 290p as
the next target. Spread Co offers a spread on
as, firstly, UBS came out with a sell recom-
mendation, citing seven different reasons to
Ashmore Group of 266.2p–267.1p.
BP's share price has finally found support
sell sterling with a target of $1.400. This
was followed in the afternoon by a warning
around 300p and is back above its 20-day
moving average. The firm is apparently try-
from S&P that the UK government debt bur-
den may approach a level incomparable with
ing to dispose of assets to help with the a triple-A rating. This warning has eroded
clean-up bill from the Gulf of Mexico oil spill, confidence in the currency and could contin-
including selling its stake in the Alaskan oil ue to do so in the coming months. Sterling-
fields. This concerted action comes alongside dollar has found resistance from former
hopes that the relief well being drilled in the support around $1.5074, so look to sell on
Gulf of Mexico will be successful in allowing approaches to this level. Spread Co offers a
it to cap the leak in August and return to a spread on sterling-dollar of $1.5014-$1.5017.
degree of normality. A successful cap could Juliet Samuel One of Ashmore’s investments in the Philippines Picture: GETTY
 22 Markets & Investment CITYA.M. 13 JULY 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .278.50* +0.10 314.80 216.75 Cobham . . . . . . . . . . . . . . . . . . .234.20 +5.70 278.60 173.20 Investec . . . . . . . . . . . . . . . . . . .474.80 +6.80 565.00 324.25 Sainsbury(J) . . . . . . . . . . . . . . . .343.90* +0.90 373.00 307.60
3i Infrastructure . . . . . . . . . . . . . 113.50* +0.70 115.00 89.35 COLT Group . . . . . . . . . . . . . . . .124.60 +0.50 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .52.60 +0.55 71.75 31.75 Schroders . . . . . . . . . . . . . . . . .1225.00 –1.00 1450.00 771.00
A.B. Foods . . . . . . . . . . . . . . . .1013.00 +6.00 1045.00 752.00 Compass . . . . . . . . . . . . . . . . . .540.50* +3.50 574.50 307.75 Jardine Lloyd Thompson. . . . . . .554.00 –1.50 604.50 399.00 Schroders N/V. . . . . . . . . . . . . .1027.00 +2.00 1185.00 649.50
Aberdeen Asset Man . . . . . . . . . .128.50 +0.10 155.60 111.00 Cookson . . . . . . . . . . . . . . . . . . .419.40 –7.20 616.00 222.00 Johnson Matthey . . . . . . . . . . .1560.00* +2.00 1814.00 1117.00 Scot. & Sthrn Energy. . . . . . . . . 1181.00 +1.00 1206.00 357.50
Admiral. . . . . . . . . . . . . . . . . . .1460.00 –14.00 1483.00 870.50 Croda Intl . . . . . . . . . . . . . . . . .1084.00 –7.00 1101.00 536.00 Kazakhmys . . . . . . . . . . . . . . . .1057.00 –31.00 1634.00 574.50 Scottish Mortgage. . . . . . . . . . . .580.50 +6.50 623.50 376.00
Aegis . . . . . . . . . . . . . . . . . . . . .107.00 –1.20 137.30 81.50 CSR . . . . . . . . . . . . . . . . . . . . . .376.90 –4.90 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .126.30 –1.80 162.00 98.45
Afren . . . . . . . . . . . . . . . . . . . . . .84.95 –1.55 111.00 50.25 Daily Mail ‘A’ . . . . . . . . . . . . . . . .460.60* –0.50 539.00 285.75 .LQJÀVKHU . . . . . . . . . . . . . . . . . .216.30 –3.00 255.00 184.80 SEGRO . . . . . . . . . . . . . . . . . . . .272.30 +2.60 403.10 244.00
African Barr Gold . . . . . . . . . . . .589.00 +4.50 685.00 520.50 Dana Petroleum . . . . . . . . . . . .1421.00 +6.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .136.10 +1.40 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .565.00 +3.00 656.50 394.30
Aggreko . . . . . . . . . . . . . . . . . .1569.00 +26.00 1575.00 492.50 Davis Service . . . . . . . . . . . . . . .371.40 +0.50 442.30 312.25 Lancashire Hldgs . . . . . . . . . . . .522.00 +1.50 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1273.00* –4.00 1310.00 921.00
Alliance Trust . . . . . . . . . . . . . . .316.90* +3.80 352.70 261.25 De La Rue . . . . . . . . . . . . . . . . . .921.00* — 1021.00 808.50 Land Securities . . . . . . . . . . . . . .582.50* +3.50 743.50 418.50 Shaftesbury . . . . . . . . . . . . . . . .385.10 +5.60 426.50 286.50
AMEC . . . . . . . . . . . . . . . . . . . . .871.00 +7.00 891.00 603.50 Debenhams . . . . . . . . . . . . . . . . .59.95 –1.15 91.95 51.95 Legal & General . . . . . . . . . . . . . .85.55 –0.55 94.40 49.60 Shire. . . . . . . . . . . . . . . . . . . . .1450.00 +8.00 1526.00 818.00
Amlin . . . . . . . . . . . . . . . . . . . . .413.00 +2.60 428.50 291.00 Derwent London . . . . . . . . . . . . 1311.00 +23.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .62.26 +0.55 75.58 40.42 SIG . . . . . . . . . . . . . . . . . . . . . . .103.50 –3.40 146.60 86.75
Anglo American . . . . . . . . . . . .2385.00 –37.00 3015.50 1614.50 Dexion Absolute . . . . . . . . . . . . .139.00 +0.60 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . .105.40 –3.10 149.10 74.50 Smith & Nephew . . . . . . . . . . . . .604.00 –3.00 700.50 435.25
Antofagasta . . . . . . . . . . . . . . . .902.00 +16.00 1100.00 568.50 Diageo . . . . . . . . . . . . . . . . . . .1099.00 +11.00 1176.00 857.00 London Stk Exchange . . . . . . . . .594.50 –2.50 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1107.00 — 1186.00 678.00
Aquarius Platinum . . . . . . . . . . .306.10 +0.10 490.00 172.75 Dimension Data . . . . . . . . . . . . . .96.20 +1.35 105.00 54.75 Lonmin . . . . . . . . . . . . . . . . . . .1457.00 –24.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . . .414.50 +3.20 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .299.00 +3.50 362.40 118.50 Domino’s Pizza . . . . . . . . . . . . . .397.00 –6.00 410.00 204.50 Man . . . . . . . . . . . . . . . . . . . . . .215.80* –3.90 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .800.00 +3.50 928.00 512.50
Arriva . . . . . . . . . . . . . . . . . . . . .766.00 –0.50 782.50 379.75 Drax . . . . . . . . . . . . . . . . . . . . . .383.60 –9.50 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .348.10* +0.10 412.70 311.50 Spirax-Sarco Eng . . . . . . . . . . .1534.00 +13.00 1591.00 809.00
Ashmore . . . . . . . . . . . . . . . . . . .268.40 +16.20 311.20 183.25 DSG Intl . . . . . . . . . . . . . . . . . . . .27.15 +0.06 39.75 19.25 Meggitt . . . . . . . . . . . . . . . . . . . .316.10 –2.60 331.00 154.75
Astrazeneca . . . . . . . . . . . . . . .3236.50 +14.50 3262.00 2644.00 Dunelm . . . . . . . . . . . . . . . . . . . .358.00 +5.20 438.40 210.25 Melrose . . . . . . . . . . . . . . . . . . .226.00 +0.10 251.50 90.00 Spirent Comms . . . . . . . . . . . . . . 115.90 +0.70 127.80 55.00
Atkins(Ws) . . . . . . . . . . . . . . . . .695.00 +7.00 747.00 532.50 Easyjet . . . . . . . . . . . . . . . . . . . .413.00 –1.30 499.90 260.00 Mercantile IT . . . . . . . . . . . . . . . .894.00* +3.50 1002.00 726.00 Sports Direct Intl . . . . . . . . . . . . . 110.30 +0.40 134.00 72.50
Autonomy Corp . . . . . . . . . . . .1880.00 +5.00 2012.00 1121.00 Edinburgh Inv Tst . . . . . . . . . . . .393.90* +0.90 412.40 298.50 Michael Page Intl. . . . . . . . . . . . .393.40 — 461.50 232.75 SSL Intl . . . . . . . . . . . . . . . . . . . .860.00 –8.00 893.50 522.50
Aveva . . . . . . . . . . . . . . . . . . . .1266.00* –5.00 1277.00 666.50 Electrocomponents . . . . . . . . . . .226.60* +2.90 245.00 134.25 Micro Focus . . . . . . . . . . . . . . . .436.70 –3.90 550.00 300.90 St James’s Place . . . . . . . . . . . . .233.60 +3.50 296.90 172.25
Aviva . . . . . . . . . . . . . . . . . . . . .345.80 +4.50 474.00 274.75 EnQuest . . . . . . . . . . . . . . . . . . .103.40 +1.60 112.70 87.35 Millen & Copthorne . . . . . . . . . . .422.80 –0.20 496.30 227.75 Stagecoach. . . . . . . . . . . . . . . . .181.70 –2.70 204.90 123.50
Babcock International . . . . . . . . .616.00* –3.00 660.50 452.75 Essar Energy . . . . . . . . . . . . . . .439.00 –8.70 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .248.20 +1.30 281.70 165.25 Standard Chartered . . . . . . . . . .1727.00 +8.50 1847.00 1121.00
BAE Systems . . . . . . . . . . . . . . .321.00 –0.70 389.90 294.20 Eurasian Nat Res . . . . . . . . . . . .855.00 –14.00 1276.00 632.00 Mitchells & Butlers . . . . . . . . . . .294.80 –3.30 343.90 228.30 Standard Life . . . . . . . . . . . . . . .189.50 –1.10 237.00 170.00
Balfour Beatty . . . . . . . . . . . . . . .246.20 +0.50 328.85 228.60 Euromoney Inst Inv . . . . . . . . . . .610.00* +10.00 630.00 218.25 MITIE . . . . . . . . . . . . . . . . . . . . .213.60* –0.10 281.70 198.70 SuperGrp . . . . . . . . . . . . . . . . . .809.50 –10.00 838.00 499.00
Barclays . . . . . . . . . . . . . . . . . . .299.95 –0.50 394.25 253.40 Experian . . . . . . . . . . . . . . . . . . .613.00* +8.00 664.50 437.50 Mondi . . . . . . . . . . . . . . . . . . . . .402.50 –5.90 488.00 187.50 TalkTalk . . . . . . . . . . . . . . . . . . .120.00 –0.40 147.10 106.60
Barratt Development . . . . . . . . . .102.50 +0.40 193.31 89.10 F&C Comm Prop . . . . . . . . . . . . . .94.10 +2.05 96.80 73.50 Monks Inv Tst . . . . . . . . . . . . . . .289.00* +1.50 321.20 223.00 Talvivaara Mining . . . . . . . . . . . .396.00 –1.00 501.50 323.75
BBA Aviation . . . . . . . . . . . . . . .193.40 +2.50 220.00 114.75 Ferrexpo . . . . . . . . . . . . . . . . . . .273.30 +3.30 396.20 112.00 Morrison Wm . . . . . . . . . . . . . . .280.20 –0.20 306.30 241.00 Tate & Lyle . . . . . . . . . . . . . . . . .486.40* +2.30 509.00 284.75
Beazley. . . . . . . . . . . . . . . . . . . .121.50 +2.00 124.80 95.25 FirstGroup . . . . . . . . . . . . . . . . .391.60 +6.20 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .853.50 +11.50 893.50 593.50 Taylor Wimpey . . . . . . . . . . . . . . .26.85 –0.37 54.90 24.29
Bellway. . . . . . . . . . . . . . . . . . . .608.50 –3.50 927.50 580.50 Foreign & Col Inv Tst. . . . . . . . . .271.10 +0.60 297.20 210.25 National Express. . . . . . . . . . . . .232.70 +1.50 256.80 135.99
Berkeley . . . . . . . . . . . . . . . . . . .830.00 +3.00 989.50 735.00 Fresnillo . . . . . . . . . . . . . . . . . .1072.00 –17.00 1115.00 447.00 National Grid . . . . . . . . . . . . . . .495.90* +1.00 607.65 474.80 Telecity . . . . . . . . . . . . . . . . . . . .394.40 +0.30 455.00 300.00
BG . . . . . . . . . . . . . . . . . . . . . .1082.50 +1.00 1248.00 966.90 G4S . . . . . . . . . . . . . . . . . . . . . .268.30 +3.40 285.70 208.50 Next . . . . . . . . . . . . . . . . . . . . .2076.00 +18.00 2360.00 1564.00 Templeton Emrg Mkts . . . . . . . . .549.50* +6.50 598.00 349.50
BHP Billiton . . . . . . . . . . . . . . .1825.00 –27.50 2346.00 1274.50 Genesis Emerging Mkts Fd . . . . .466.00 +15.90 484.00 370.00 Northumbrian Water . . . . . . . . . .323.50 –1.70 328.80 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .395.35* +0.30 454.90 348.50
BlackRock Mining . . . . . . . . . . . .557.50 +7.50 654.50 346.00 GKN . . . . . . . . . . . . . . . . . . . . . .130.40 +0.20 155.00 71.75 Old Mutual . . . . . . . . . . . . . . . . . 112.90 +0.40 127.20 74.60 Thomas Cook . . . . . . . . . . . . . . .187.90 –3.60 277.20 172.30
BlueBay . . . . . . . . . . . . . . . . . . .299.10 +5.00 393.00 188.00 GlaxoSmithKline . . . . . . . . . . . . 1155.00 +13.00 1347.00 1076.50 Partygaming . . . . . . . . . . . . . . . .238.20 +6.40 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .232.30 –2.20 261.10 144.00
Booker . . . . . . . . . . . . . . . . . . . . .41.31* +0.13 49.50 33.00 Great Portland Estates . . . . . . . .300.00 — 332.10 208.50 Pearson . . . . . . . . . . . . . . . . . . .919.00 +10.00 1069.00 587.00 Travis Perkins . . . . . . . . . . . . . . .799.00 +6.50 915.00 543.50
BP . . . . . . . . . . . . . . . . . . . . . . .398.95 +34.15 658.20 296.00 Greene King . . . . . . . . . . . . . . . .434.80 +0.80 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .576.00 — 582.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .220.50 –2.30 313.90 202.30
Brit Insurance . . . . . . . . . . . . . . .905.50* +5.00 975.00 709.00 Halfords . . . . . . . . . . . . . . . . . . . 511.50* –6.50 562.50 309.00 Persimmon . . . . . . . . . . . . . . . . .388.40 +2.00 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .340.50 –3.00 436.20 261.20
British Airways . . . . . . . . . . . . . .204.70 –2.00 255.80 117.70 Halma . . . . . . . . . . . . . . . . . . . . .284.10 +2.10 287.40 184.00 Petrofac . . . . . . . . . . . . . . . . . .1256.00 +20.00 1294.00 640.00 Tullow Oil . . . . . . . . . . . . . . . . . 1141.00 +13.00 1375.00 843.00
British Amer. Tob . . . . . . . . . . .2219.00 +10.50 2335.50 1686.00 Hammerson . . . . . . . . . . . . . . . .360.50 +5.50 460.30 277.00 Petropavlovsk . . . . . . . . . . . . . .1204.00 –36.00 1370.00 516.50 UK Commercial Prop. . . . . . . . . . .79.80 +1.70 84.90 62.25
British Empire Tst . . . . . . . . . . . .425.10 +3.50 467.90 338.50 Hargreaves Lansdown . . . . . . . .334.00 +2.00 387.00 197.25 Premier Farnell . . . . . . . . . . . . . .239.20 +5.30 252.60 122.25 Ultra Electronics . . . . . . . . . . . .1569.00 –1.00 1678.00 1094.00
British Land . . . . . . . . . . . . . . . .450.00* +2.50 532.00 357.50 Hays . . . . . . . . . . . . . . . . . . . . . . .95.80 –0.85 119.00 81.75 Premier Oil . . . . . . . . . . . . . . . .1425.00 +15.00 1437.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1844.00 +9.00 2024.00 1422.00
Britvic. . . . . . . . . . . . . . . . . . . . .496.50 –0.60 505.00 286.25 Henderson . . . . . . . . . . . . . . . . .126.20 +1.80 157.80 87.75 Provident Financial . . . . . . . . . . .857.50 +1.50 986.00 763.00
Brown(N.) . . . . . . . . . . . . . . . . . .245.90* +0.20 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .425.60 –1.60 587.00 368.70 Prudential . . . . . . . . . . . . . . . . . .534.00 –3.00 665.00 350.25 United Utilities . . . . . . . . . . . . . .554.50* –0.50 575.00 429.00
BSkyB . . . . . . . . . . . . . . . . . . . .695.00 +1.50 732.00 471.75 Hikma Pharma . . . . . . . . . . . . . .715.00 –10.00 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .349.00 –1.00 356.40 198.00 Utd Business Media . . . . . . . . . .521.00 +3.50 579.50 364.75
BT . . . . . . . . . . . . . . . . . . . . . . .138.70 –1.30 151.00 99.50 Hiscox . . . . . . . . . . . . . . . . . . . .348.70 –1.30 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . .125.40 –0.10 179.10 113.90 Vedanta Resources . . . . . . . . . .2269.00* –31.00 2967.00 1277.00
Bunzl . . . . . . . . . . . . . . . . . . . . .690.00 +0.50 784.50 510.00 Hochschild Mining . . . . . . . . . . .305.60 –1.00 370.60 220.00 Randgold Resources. . . . . . . . .6125.00 –100.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . . 1165.00 +21.00 1193.00 563.50
Burberry . . . . . . . . . . . . . . . . . . .789.50* –4.50 815.50 407.00 Home Retail . . . . . . . . . . . . . . . .225.50* –0.80 336.50 208.50 Reckitt Benckiser . . . . . . . . . . .3219.00 +26.00 3667.00 2686.00 Vodafone . . . . . . . . . . . . . . . . . .143.40* –0.10 153.80 111.90
Cable & Wire Comms . . . . . . . . . .59.00* –0.65 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2104.00* –3.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .515.00 –2.50 548.00 403.75 Weir . . . . . . . . . . . . . . . . . . . . . 1161.00 –7.00 1183.00 439.50
Cable & Wire Wwide . . . . . . . . . . .88.15* +0.20 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .632.40 +5.30 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .72.40 –0.40 125.50 61.00 WH Smith . . . . . . . . . . . . . . . . . .412.20 +4.10 551.00 396.00
Cairn Energy. . . . . . . . . . . . . . . .459.30 +8.70 462.50 306.80 Hunting . . . . . . . . . . . . . . . . . . .501.00 +11.20 659.50 387.75 Rentokil Initial . . . . . . . . . . . . . . . 111.20 +1.30 140.20 82.25 Whitbread . . . . . . . . . . . . . . . . . 1411.00* +10.00 1645.00 778.50
Caledonia Invs . . . . . . . . . . . . .1595.00 +24.00 1759.00 1495.00 ICAP . . . . . . . . . . . . . . . . . . . . . .432.90 +1.70 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .70.15 +0.15 99.15 58.45 William Hill . . . . . . . . . . . . . . . . .180.50 +1.40 217.80 160.50
Capita . . . . . . . . . . . . . . . . . . . . .742.50 +2.50 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .473.70 +3.40 477.10 261.25 Rexam . . . . . . . . . . . . . . . . . . . .315.10 +4.10 331.20 222.50 Witan Inv Tst . . . . . . . . . . . . . . . .438.50 +3.60 487.00 329.50
Capital & Counties . . . . . . . . . . .108.90 –0.30 125.40 99.60 Imagination Tech Gp . . . . . . . . . .312.40 +5.30 314.00 136.75 Rightmove . . . . . . . . . . . . . . . . .617.00 +1.00 729.00 334.00 Wolseley . . . . . . . . . . . . . . . . . .1396.00 +8.00 1742.00 1026.00
Capital Shopping Centres . . . . . .320.60 +3.40 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .724.50 +3.50 756.50 275.25 Rio Tinto . . . . . . . . . . . . . . . . . .3102.50 –70.00 4104.00 1822.00
Carillion . . . . . . . . . . . . . . . . . . .323.00 +2.10 361.90 244.00 Imperial Tobacco. . . . . . . . . . . .1888.00 +5.00 2159.00 1582.00 RIT Capital Partners . . . . . . . . . 1186.00 –1.00 1215.00 900.00 Wood Group (John). . . . . . . . . . .347.20 +5.30 411.70 231.25
Carnival . . . . . . . . . . . . . . . . . .2212.00 +4.00 2937.00 1574.00 Inchcape. . . . . . . . . . . . . . . . . . .286.10 +15.90 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .586.00 +3.50 631.50 346.50 WPP . . . . . . . . . . . . . . . . . . . . . .650.50 +2.00 744.00 380.50
Catlin . . . . . . . . . . . . . . . . . . . . .371.20 +5.40 380.50 284.75 Informa . . . . . . . . . . . . . . . . . . . .358.10 –5.80 439.40 217.75 Rotork . . . . . . . . . . . . . . . . . . .1383.00* +5.00 1482.00 779.50 Xstrata . . . . . . . . . . . . . . . . . . . .931.20 –12.40 1344.50 555.10
Centamin Egypt . . . . . . . . . . . . .157.90 –1.30 174.75 77.86 Inmarsat . . . . . . . . . . . . . . . . . . .734.50 –0.50 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .44.68 +0.43 58.95 28.25 Yell Group. . . . . . . . . . . . . . . . . . .26.40 –0.28 86.00 21.00
Centrica . . . . . . . . . . . . . . . . . . .309.50 +1.40 320.00 215.50 Intercontl Hotels . . . . . . . . . . . . 1120.00 — 1244.00 592.50 Royal Dutch Shell A . . . . . . . . .1771.00 +11.00 2068.50 1431.00 LONDON TOP 250 BY MARKET CAPITALISATION
Charter Intl . . . . . . . . . . . . . . . . .666.00 –7.00 855.50 406.50 Intermediate Capital . . . . . . . . . .265.90 +1.30 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1690.00 +13.00 1997.50 1437.00
Chemring . . . . . . . . . . . . . . . . .3012.00 –4.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1577.00 +7.00 1596.00 1024.00 RSA Insurance . . . . . . . . . . . . . .123.30 –0.20 142.00 113.10 * Ex-Dividend † Suspended
Chloride Group . . . . . . . . . . . . . .371.20* –0.10 390.50 129.00 Intl Power . . . . . . . . . . . . . . . . . .316.60 –2.00 354.00 233.75 SABMiller . . . . . . . . . . . . . . . . .1944.50 +21.50 2090.00 1215.00
Close Bros . . . . . . . . . . . . . . . . .695.00 +7.50 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .265.10* –2.50 350.30 213.00 Sage . . . . . . . . . . . . . . . . . . . . . .237.30 +2.70 260.50 169.50 www.interactivedata.com

BP gains while UK economic Traders hold their

headwinds subdue the FTSE breath for results
34 points to the index - its entire gain Europe and the United States due for materials index sliding 1.1 per cent

THELONDON for the day - after it said it expects to

attach a new containment cap on the
release over the course of the week
and a raft of data from China were THENEW YORK after Chinese data over the weekend
showed the country's copper demand

REPORT REPORT
Macondo wellhead later on Monday also expected to attract attention. dropped. Freeport McMoRan Copper
that should more than triple the Mining stocks were out of favour, & Gold lost 4.2 per cent to $63.22.
amount of leaking oil being collected. falling back after a strong advance in US-listed shares of BP jumped 8 per
Elsewhere, Cobham added 2.5 per the previous session, after the world's cent to $36.76 with the company in
JUMP in the share price of BP cent as Bank of America Merrill Lynch top metals consumer China reported talks with US oil and gas company

A on hopes that the Gulf of

Mexico oil leak will soon be
capped outweighed a weakness
in miners to push the FTSE 100 share
index higher for a fifth session yester-
upgraded its rating on the stock to a
“buy” from “neutral”, with an
unchanged 270p price target, in a
review of the European Aerospace &
Defence sector.
a drop in copper imports for the third
straight month in June.
Kazakhmys, Rio Tinto and Vedanta
Resources were the worst off, shed-
ding 1.5 per cent to 2.3 per cent.
C
AUTION prevailed in the US
stock market yesterday, with
indexes edging higher as
investors kept bets to a mini-
mum in front of earnings.
Apache and others to sell assets worth
up to $10bn.
In addition to Alcoa, other Dow
components set to report earnings
this week include Intel, JPMorgan
day. But overall the outlook for the UK Banks, which also advanced on Volume was among the lightest of Chase & Co and General Electric.
The index closed up 34.08 points, economy looked beset by headwinds. Friday, were mixed. Lloyds Banking the year with investors wanting to see For the second quarter, analysts see
or 0.7 per cent, at 5,167.02 having last Bank of England policymaker Group, Royal Bank of Scotland and if corporate outlooks validate last earnings growth of 27 per cent for
week gained 6.1 per cent – its biggest Adam Posen said that Britain was at Standard Chartered fell 0.6 per cent week's surge, the strongest week in a companies in the S&P 500, up from
weekly percentage rise in a year. risk of returning to recession, in part to 0.9 per cent, while HSBC rose 0.2 year. Dow component Alcoa reported previous readings in the past three
But the index is still down 11.3 per because of looming fiscal austerity per cent. its second-quarter results after the quarters, which hovered around 22
cent since April when investor fears and problems in the euro zone, The energy sector as a whole found closing bell. per cent. This would also exceed the
about euro zone debt and a double- according to an interview published support as China revealed a bigger- Earnings are “going to be the test to 22.4 per cent analysts were predicting
dip recession began to worry on Monday. than-expected trade surplus in June, the durability of the bounce that at the beginning of the year.
investors and technical analysts cau- Meanwhile Standard & Poor's easing worries about a slowdown in started last week”, said Scott The market got some support from
tioned that there was plenty of scope affirmed Britain's AAA long-term the global economic recovery and oil Marcouiller, senior equity market M&A activity after Aon said it will buy
for more weakness. debt rating yesterday but kept a nega- demand. strategist at Wells Fargo Advisors. Hewitt Associates for $4.9bn to create
“The 200-day moving average is at tive outlook, saying that the govern- Royal Dutch Shell rose 0.4 per cent, The aluminium producer reported the world’s largest human resource
5,322 and unless we move above that ment's debt burden may prove while BG Group added 0.1 per cent. a second-quarter profit as sales rose services company. Hewitt surged 32.2
level then there's still the worry that inconsistent with the top rating. 22 per cent. Alcoa slipped 0.6 per cent per cent to $46.79, while Aon sagged
we are in a corrective phase of an Britain's economy grew at the same ANALYSIS l FTSE 5,167.02 to $10.87 during the session, but 7.1 per cent to $35.62.
6,000
ongoing downtrend,” said Phil pace as previously estimated in the 12 Jul jumped 3.9 per cent after the bell. Also on the upside, Qualcomm
Roberts, chief European technical first three months of this year, but 5,800 The Dow Jones industrial average climbed 3.5 per cent to $35.10 after
strategist at Barclays. the recession that preceded it was 5,600 added 18.24 points, or 0.18 per cent, Goldman Sachs added the company
Volumes are still low, he said, indi- deeper than previously thought, the to end at 10,216.27. The Standard & to its conviction buy list.
5,400
cating that many people could be Office for National Statistics said. Poor’s 500 Index edged up just 0.79 of About 6.34bn shares traded on the
waiting for the market to retreat Many investors were on the side- 5,200 a point, or 0.07 per cent, to 1,078.75. New York Stock Exchange, the
again before returning to equities. lines ahead of the start of the quarter- 5,000 The Nasdaq Composite Index gained American Stock Exchange and
Only around 50 per cent of the last ly results reporting season in the 1.91 points, or 0.09 per cent, to close Nasdaq, well below last year's estimat-
4,800
90 trading days were transacted yes- United States, which starts with Alcoa at 2,198.36. ed daily average of 9.65bn, and mak-
terday. after the bell on Monday. 4,600 Resource companies’ shares were ing yesterday the second-lowest
12 Apr 30 Apr 21 May 11 Jun 1 Jul
BP gained 9.4 per cent and added Inflation numbers from the UK, the biggest drag overall, with the S&P volume day of the year.
 Lifestyle ASTON MARTIN 23
V8 VANTAGE
| Health IN TOMORROW’S
MOTORING PAGE

CELLULITE-BUSTERS:

How to be a water baby WE REVIEW TWO

CELLUTOX AROMA SPA OCEAN WRAP
hhhhi
After booking a last minute summer break, I
Swim your way to had one week to get myself bikini-ready.
Although I upped my gym-going, I quickly
fitness this summer, realised that nature would need a hand. A buff,
a scrub and a seaweed wrap were called for, so
says Zoe Strimpel the Cellutox sounded fantastic.
After the buffing, a delicious citrussy body oil
was rubbed all over, followed by a body sculpt-
ing cream. This was applied to the “problem

Y
OU never regret a swim,” the saying
goes, and anyone who swims regular-
ly will concur. It’s the ultimate sum-
mer workout – you can huff and puff
outdoors without breaking a sweat. But if
you want to work out in the water, you’re
going to have to resist the temptation to
just splash and paddle. You have to work
hard. If you do, the rewards are great, since
swimming works all your muscles at once:
your chest as you dip your hands in, your
triceps and back as you pull your stroke
through, your core and midsection as you
hold the stroke in the water, and your hips
and bottom as you kick.
NO DOGGY PADDLE ALLOWED
Jon Roberts, director of upmarket gym
chain Matt Roberts (www.mattroberts.co.
uk), says: “The main thing people tend to
get wrong is that they don’t work hard
enough in the water to achieve cardiovascu-
lar exercise and fat burning. In the water,
the body is always kept cool, so you have to
work harder to break a metaphorical sweat.
And because of water pressure, the body
works more efficiently, so your heart rate is
lower than it would be on land. People
doing casual breast stroke for 40 minutes
aren’t going to see an improvement in fit-
ness. Yes, it’s good for range of movement,
and if you’re really unfit it’ll help. But if
you’re reasonably fit, you have to work
much harder than that to achieve benefits.”
HOW TO IMPROVE YOUR WORKOUT
Avoid the trap of repetitive, non-cardiovas-
cular swimming by changing it up, with
FIVE OF THE BEST
OUTDOOR POOLS
HAMPSTEAD HEATH SWIMMING
PONDS, NW5 1QR
Unlike anything else in
London, the Hampstead
Heath ponds are three
distinct oases of nature
and calm just a few
kilometres from the
centre of the world’s
largest cities. Swim
amid the lilies, wil-
lows and assorted
plant life in one of
three ponds that date
back to 1860: one is
strictly ladies’, (the most
tranquil and lovely), one is
men’s only (with a well-
known gay element), and then
intervals of sprinting. Roberts recommends Swimming: the
kicking off with a five minute warm-up, ultimate summer
gradually building speed throughout. Then workout.
do some intervals of four lengths at top
speed so that you’re out of breath. Stop to Picture:
have 30 seconds rest and repeat. Then do GETTY
one length regular sprinting, followed by a
length using a float between the legs so
that you’re just using your arms, then a leg-
only length, then a regular length again.
Warm down in the final five minutes.
TECHNIQUE
Do some slow swimming to make sure
you’ve got everything working properly.
With front crawl, your body should be bal-
anced and relaxed. Keep your bottom and
head high and try to glide through the
water. Keep everything as even as possible;
for example, breathe on both sides if you
TOOTING BEC LIDO, SW16 1RU
At 91.5m, this is the second largest pool in
Europe and the largest fresh-water pool in
England. An Art Deco lido, it is a glorious
addition to the south London communi-
ty. With a paddling pool, a sunbathing
area and a café, this is the kind of place
you could pass whole weekends at a
time, and, should you desire, become
extremely fit while you’re at it. The lido
is also home to the South London
Swimming Club, one of England’s oldest
swimming clubs, founded in 1906. (See
www.slsc.org.uk for more info).
Tooting Bec Road. Tooting Bec Tube.
www.dcleisurecentres.co.uk
can so that you avoid a tightening of the
body on one side. Control your leg action,
so that the kick comes from the hips, not
the knee. Feel your hand entering the
water and the drag as you pull it through.
Remember to roll slightly with each
stroke; it’s also important to exhale entire-
ly when you’re under water so your inhala-
tion is most efficient.
With breast stroke, make sure you
breathe out under water so that your body
can remain flat, which is essential for the
full-body workout and the grace of the
stroke – keeping your head out of the
water means your hips and legs will be too
low, which throws off the balance and
vigour of the stroke.
Finally, get a heart monitor: it’s the best
way to show how hard you’re working since
you won’t be breaking a sweat.
the public lidos, get a member of
Shoreditch House – East London’s media-
centric club – to invite you in for a day at
the rooftop pool. The scene atop the unas-
suming building off Bethnal Green Road
is one of complete hedonism as the
world’s beautiful people cavort and
lounge in their bikinis, briefs and perfect
suntans, sipping champagne and reading
the weekend papers. It’s like walking into
Miami Beach – or perhaps Ibiza. It’s cer-
tainly one way to pass a sunny day. Ebor St.
Liverpool Street Tube. www.shoreditchhouse.com
areas”, which for me meant a liberal dose on
my thighs, bum and stomach. Made with bitter
orange peel, the cream felt cool and sticky and
smelled lovely. Next, I was covered in a sea-
weed body masque and wrapped – Turkey-
style – in foil, while a relaxing scalp massage
and eye treatment was applied. I am a sucker
for these added extras since I hate it when
beauty therapists leave you alone in the room.
After about 20 minutes I was unwrapped
before heading straight to the shower.
And the results? Well, I’m not sure it took
any inches off my thighs or stomach. But it cer-
tainly made my tired, dull-looking skin look and
feel a million dollars. My only complaint is that I
didn’t have time to wash my hair, which after
the scalp massage looked like an oil slick. At a
pound a minute, I think this treatment is worth
it. CityPoint Club, 1 Ropemaker Street, London
EC2Y 9AW, tel: 020 7920 6200; £75 for 75
mins. Kathleen Brooks
BODY SCULPTING CELLULITE AND COLON
THERAPY
hhhhi
A cellulite quick fix – a treatment that promises
to eliminate the dreaded orange-peel effect and
whip thighs and tummies into shape pronto – is
the beauty Holy Grail. So it was with excite-
ment and some trepidation that I arrived at the
Elemis Day Spa in Mayfair to try the “Body
Sculpting Cellulite and Colon Therapy”, which
aims to flush out the digestive, circulatory and
lymphatic systems in one go.
Having donned the obligatory paper panties,
it was down to work, starting with body brush-
ing and a kneading massage on my arms and
legs using Elemis’ Lipo-Redefining Serum. A
vigorous thigh pummelling at the hands of my
waif-like masseuse followed, before she applied
a deliciously warm fennel and birch peel-off
mask to my legs. I had awaited the effects of
the colon massage with foreboding after any
number of dire warnings, but the pressure on
the stomach was not altogether unpleasant, my
stomach remained flat for days afterwards –
and no, I wasn’t left running for the loo as soon
as the massage finished.
After the body mask was removed and a
firming cream applied, I left feeling relaxed and
rejuvenated, with cooler, smoother and lighter
limbs and a trim tummy. The verdict? Certainly
a confidence-booster for the beach, even if the
orange-peel did, sadly, remain unchanged to the
naked eye. Elemis Day Spa, 2-3 Lancashire
Court, W1S 1EX, tel: 20 7499 4995; £90 for 60
mins. Victoria Bates

BROCKWELL PARK LIDO, SE24 9BN

South London’s iconic lido
LOSING YOUR HAIR?
there’s a slightly hectic mixed pond (left) has been a summer At The Wimpole Clinic, the most advanced hair
(pictured above right). Hunker down for stalwart and pillar of the restoration centre in Europe, Dr Michael May F.R.C.S.
some seriously bucolic sunbathing – that community since 1937. has pioneered a permanent solution to
said, hardcore locals swim in the ponds The pool is a 50m
year round, rain or shine. All have chang- Olympic-size beauty, male pattern baldness using advanced
ing facilities. Access is via Millifield Lane, N6. attached to a Grade follicular unit transplant techniques.
Gospel Oak or Hampstead Heath railway sta- II-listed building
tions. www.cityoflondon.gov.uk/hampstead housing state-of- For your FREE consultation
the-art fitness and with Dr May call today on
LONDON FIELDS LIDO, E8 3RH
020 7935 1861
spa facilities. A
This heated, Olympic-sized pool is beloved modern café serves
for its famously colourful lockers, its eclec- fresh and seasonal
tic mix of hardcore swimmers and splash- delights. Brockwell www.wimpoleclinic.com
ing families, and its lovely park location. Park, Dulwich Road.
Even when it gets busy, there are enough
lanes to enjoy a proper swim. An area at
Herne Hill rail station or
Brixton Tube. THE WIMPOLE CLINIC
one end with tables and chairs is dedicated www.brockwelllido.com Registered 0000061435

to groups that just fancy a natter without Hannah House, 1 1-16 Manc hester Stre et, London W1U 4DJ
getting wet. An outdoor café serves good
food. London Fields Park. London Fields rail.
www.hackney.gov.uk/c-londonfields-lido.htm
SHOREDITCH HOUSE, E1 6AW
For those who feel they’re a cut above the
family-tastic, ice-cream smeared scene of
IT CAN BE RESTORED!
 24 Lifestyle | Restaurant Review WORDS BY
ZOE STRIMPEL
CITYA.M. 13 JULY 2010

A superb Ambassadeur’s reception

The restaurant of the
exclusive Park Lane
casino is open to the
public for lunch, and
it’s worthy of royalty

The Milroy
5 Hamilton Place, W1J 7ED,
Tel: 020 7317 6108

FOOD hhhhi
SERVICE hhhhi
ATMOSPHERE hhhii
Cost per person without wine: £40

T
HOSE accustomed to the opulence
of Les Ambassadeurs, the exclusive
London casino, may not be blown
away by the Milroy, its in-house
restaurant. But now that it has opened to
the public for lunch, those of us for whom
the marble and mahogany-filled mansion
off Park Lane has heretofore been off lim-
its are in for a real treat. Not just because
you feel like you’re hoi palloy washed up
in a royal palace, but because everything
else – food, service, views, interiors, atmos-
phere – are just right too.
The Milroy stands adjacent to Les
Ambassadeurs at 5 Hamilton Place, on the
site of one of Henry VIII’s hunting lodges
(where didn’t Henry have a hunting
lodge?), and has belonged to the Marquis
Conyngham and Rothschild families. It
was extravagantly remodelled by Leopold
de Rothschild in the late 1870s, and
English Heritage has maintained the fin-
de-siècle Louis XV style that originally one that is also admirably restrained, The palatial interior of fish restaurant – she was delighted with
influenced its interiors.
We began with a drink in the dark pan-
down-to-earth, and just the way modern
European food should be served these
The Milroy. the Portland king crab with lemon mayon-
naise, mango and avocado salad. Indeed: it
FOOD & BOOZE
elled den that is the bar, nestled in plush days. Ingredients are both locally sourced was refreshing in the extreme, the silky, NEWS
arm-chairs overseen by paintings and etch- and imaginative and dishes range from slightly creamy meat lifted by the zingy
ings from a much older, and seemingly the simple to the decadent. They are also salad. TIMOTHY BARBER
more jovial time. In due course we were generous, ultimately representing good Main courses include a “grills” section,
led up some grand, deeply carpeted stairs value. from which I went for a sole meuniere LARDER OF LONDON REOPENS
to the dining room, a hall of green velvet, To start, who could resist kipper and (meat-lovers might enjoy the Scottish rib- For a foodie city, one thing London is shamefully
light and marble. I felt like I was entering Glenmorangie single malt pate served eye with kidneys and chips); it was filetted short of is quality food markets. Anyone who’s
Versailles as we were led to a side chamber with sesame tuile? Not us: and it was a for me by the table, and presented in full had enough of fighting their way through the
with marble arches – gloriously embel- rich, robust paste whose flavours worked buttery, cotton-light glory. Scrumptious. Borough Market hoards can now instead fight
lished – and a massive window looking in edgy harmony. Every detail here is My companion chose chargrilled calves’ their way through the West End hoards each
out onto Hyde Park. Settled thus, the sun superb: the sesame tuile was in itself a liver: a beautifully rich dish embellished Saturday at the newly-launched Foodlovers
beaming into the cool room, the large delight; curved, faintly sweet and buttery. with treacly dry-cured bacon, rosemary Market in Soho, once reputed as the “larder of
glass of pink champagne we began with Seared yellow fin tuna with cauliflower gravy, cabbage and mash. London”. Running weekly, the market has around
seemed truly ebullient. puree and spicy tomato coulis was a We finished this feast with a sculptural, 30 stalls from specially-selected producers.
The food here is serious: chef Simon hearty plate of pepper-crusted tuna hunks, delicate dessert of elderflower and lime Every Saturday, 9am-4pm, Rupert St, W1.
Foster was previously at Pierre Koffman’s red in the middle, and quite refreshing jelly, mixed berries and crème fraiche, www.foodloversbritain.com
famous La Tante Claire, and Claridges. In with its Mediterranean asides. My com- with the jelly in a cone on top. It cleansed
keeping with the setting he’s gone for a panion insists that the true test of a rather than cloyed, and ensured we SURF & TURF IN CLERKENWELL
grand menu featuring a certain amount restaurant’s worth is its crab, and – having walked out feeling completely sated: full There’s another place to add to Clerkenwell’s
of fancy shmancy mousses and foams, but been recently let down by a well-known and happy. A meal that’s fit for a king. ever-lengthening roster of restaurants. Redhook,
by the group behind Soho’s fashionable (sort of)
members’ gaff Milk & Honey, is in a former drill
TASTING NOTES hall on Turnmill Street – think exposed brick-
work, vintage furniture etc – and specialises in
BY TIMOTHY BARBER steak and seafood. As well as Canadian lobsters,
New York striploin and Aussie wagyu, you can

Where to eat when you’re high-rolling

enjoy oysters and cocktails at the bar.
89 Turnmill St, EC1M 5QU.
www.redhooklondon.com

STEAK BECOMING LESS AND LESS RARE

I
N his current book describing The present day Crockford’s (www.crock- Street, you can take a break from high Talking of steak, two of London’s finest purvey-
London’s early Victorian gambling fords.com), on Curzon Street, is maintaining stakes punto banco with fine Italian food in ors of all things bloody and beefy are expanding.
scene, Gentlemen & Blackguards, the tradition too. The dining room – like the club’s mirror-panelled dining room Goodman, the Russian-by-way-of-New York
author Nicholas Foulkes points the casino – is a vision of classical opu- (pictured left). Even better, in summer chain which opened in Mayfair last year, is open-
out that Crockford’s, then the most lence, with a menu overseen by chef there’s a swell outdoor terrace restaurant. ing a second London site in the heart of the City
famous and exclusive gaming club extraordinaire Anton Mosiman. In Marylebone – a quick walk from – on Jewry Street – later in the summer.
in town, was as known for its fine With their international clientele, Marble Arch – you’ve got The Sportsman, a Meanwhile the renowned Hawksmoor in
food as it was for relieving aristos or casinos tend to be good places to eat if supremely suave place with a basement Spitalfields – source of the best burgers in
their fortunes. As with The Milroy your food tastes have a global bent. restaurant serving a pretty good interna- London – will be opening
(see above), that’s still the case with Crockford’s has separate menus for tional menu. Usefully, it’s open until 3am. its second venue in Seven
top casinos – after all, any casino Italian, modern British, Oriental, Middle And there’s always The Ritz. Gambling Dials, Covent Garden in
owner worth his salt knows that the Eastern and Indian cuisines, as does the doesn’t get more elite than The Ritz Club October. Watch this space
more comfortable you make your high- fashionable Palm Beach (www.thepalm- Casino (www.theritzclub.com), in the for more details.
rolling punters, the longer they’ll hang beach.co.uk) on Berkeley Street. Piccadilly landmark’s old ballroom, where www.goodmanrestau-
around to keep donating to the profit At Aspinall’s (www.aspinalls-club.com), the restaurant has an all-new summer rants.com; www.the-
sheet. the clubby Mayfair venue also on Curzon menu. hawksmoor.co.uk
CITYA.M. 13 JULY 2010 Lifestyle | TV& Games 25

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

QUICK CROSSWORD
    

SUDOKU KAKURO
15 10 6 5 11 16
20 11
31 13     
12 26
Place the numbers from 1 to 9 in each empty cell so that each 16 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 24
18 27 35 17
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 33
  
above or to the left of it. 7 18
You can only use the digits 1-9 16 14
  and you must not use the
33
28 29      
same digit twice in a block. 9
    The same digit may occur 6 15 
17
  more than once in a row or
column, but it must be in a
41
 
23
    separate block.
8 9 4 7 17 10
14 27
    8 12
 

    ACROSS DOWN
1 Lure (5) 1 Lever operated
 
    WORDWHEEL D I
4 Commandeer (5)
7 Stay away from
deliberately (6)
with the foot (7)
2 Birthplace of
Mohammed (5)
Using only the letters in the Wordwheel, you have 10 Catholic Holy Father (4) 3 In that place (5)
  ten minutes to find as many words as possible,
E A 12 Plant pigment 5 Fictional character with
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters L converted to vitamin
A in the body (8)
special powers (9)
6 Stout twists of fibre (5)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
R M 13 Major party to a
financial transaction at
8 Night before All
Saints’ Day (9)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
L T a stock exchange (6)
14 English flower (4)
9 Disinclined to
exertion (4-3)
QUICK CROSSWORD 4 1 7 3 8 1
16 Reverberate (4) 11 Yoko ___, widow of

1 ' % . $ 5 0 $
1 5 2 8 5 6 9 7 SUDOKU         
19 Detective who
follows a trail (6)
John Lennon (3)
15 Make more attractive (7)
7 9 5 8 1 2 6 4         
8 1 , & 2 5 1 8 %
3 4 1 6 2 7 22 Common hedge shrub (8) 17 Preside over (a
5 / 1 2 $ ) 2         
6 2 $ 5 6 : $ ) ( 5 7 2 6 7 1 2 7 23 Sport (4) meeting) (5)
        
24 Officer in the
( 7 ( $
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18 Gammon (3)
6 , 5 ( ( / '          20 Silt deposited by
1 6 8 2 7 3 The nine-letter words bodyguard (6)
7 + 5 ( : $ 1 . / (
2 1 3 5 8          the wind (5)
5 2 : ( % $ 3 8 6 9
were BELONGING 25 Take in fluids through
$ $ / ( $ ) / ( 7 8 7 4 9 6 6 1 2         
the mouth (5) 21 Cause to lose
3 ( 5 , / * , + 9 3 3 1 9 8 and ENGLOBING          one’s nerve (5)
26 From that time (5)
 26 Sport CITYA.M. 13 JULY 2010

Results
FOOTBALL
FRIENDLY MATCHES: Kidsgrove Ath 2 Crewe XI 3, Oldham 1
When chips were down, captain shone
Burnley 2, Quorn 0 Crewe 4, Winterton Rangers 1 Hull 2.
BASEBALL But while I’m sure some of the choice dressing room for the deciding match Trott getting among the runs, but I
MAJOR LEAGUE: Arizona Diamondbacks 0 Florida Marlins
words used would’ve turned the place yesterday will probably never be still believe there is more to come
2, Chicago White Sox 15 Kansas City Royals 5, Colorado blue, it certainly did the trick. repeated, but England’s response was from him. His innings at Bristol on
Rockies 7 San Diego Padres 9, Detroit Tigers 3 Minnesota England’s resurgence in limited- magnificent as they showed the Saturday wasn’t the cleverest, but he
Twins 6, Houston Astros 2 St Louis Cardinals 4, Los Angeles overs cricket over the last nine world that Saturday was just a blip. played his part in a stunning partner-
Dodgers 7 Chicago Cubs 0, Milwaukee Brewers 6 Pittsburgh
Pirates 5, New York Mets 3 Atlanta Braves 0, Oakland months or so has been based on When there’s a point to prove, ship with Strauss yesterday and will
Athletics 5 LA Angels 2, Philadelphia Phillies 1 Cincinnati sharpness, with bat, ball and in the there’s no-one better than Andrew take confidence from his maiden ODI
Reds 0, Seattle Mariners 2 New York Yankees 8, Tampa Bay field. On Saturday, they lost that Strauss to show the way. As is his style century.
Rays 6 Cleveland Indians 5, Texas Rangers 1 Baltimore
Orioles 4, Toronto Blue Jays 2 Boston Red Sox 3, AT THE CREASE WITH sharpness and that edge. They just as captain, Strauss put his neck on When the chips were down, Strauss
weren’t themselves. the line and led front the front with a and England came to the party. For
Washington Nationals 2 San Francisco Giants 6
CRICKET ANDY LLOYD In their defence, sometimes it’s dif- tremendous innings. that reason, I’m not unduly con-
THIRD ONE DAY INTERNATIONAL ficult to prepare for a series against a Strauss may not be in the world’s cerned about Saturday. It was a wake-

I
England v Bangladesh ’D like to have been a fly on the side who are not seen as competitive. elite, but he’s a top class batsman and up call, which won’t do them any
EDGBASTON: England beat Bangladesh by 144 runs wall of the England dressing But that is no excuse. They took their has blossomed into an inspirational harm. It also gives them a chance to
ENGLAND
A Strauss c Al Hasan b Hossain ..........................................................154 room in Bristol after their defeat foot off the gas and paid the price. leader. From a personal point of view, refocus for the tougher test against
C Kieswetter b Mortaza................................................................................0 to Bangladesh on Saturday night. Just what was said in the Edgbaston I’ve been delighted to see Jonathan Pakistan in the coming weeks.
J Trott c Al Hasan b Mortaza ................................................................110
L Wright c Jahurul Islam b Mortaza......................................................0
P Collingwood c Ashraful b Hossain ......................................................8

Strauss inspires series win

E Morgan c Iqbal b Shafiul Islam..............................................................1
R Bopara not out............................................................................................45
T Bresnan c Iqbal b Shafiul Islam..........................................................10
M Yardy not out................................................................................................8
B1 lb4 w4 nb2 ......................................................................................11
Total (7 wkts., 50 overs) ..............................................................347
Fall: 1, 251, 251, 272, 280, 283, 297.
Bowling: Mortaza 10-2-31-3, Islam 9-0-97-2, Hossain 9-0-61-
2, Razzak 9-0-63-0, Al Hasan 10-0-75-0, Mahmudullah 3-0-15-0.
BANGLADESH
T Iqbal c Wright b Shahzad......................................................................16
▲

I Kayes c Kieswetter b Shahzad ..............................................................4

CRICKET
J Siddique c Wright b Bresnan ..............................................................25 BY FRANK DALLERES
J Islam c Strauss b Broad ........................................................................27
S Al Hasan run out ..........................................................................................6 ENGLAND captain Andrew Strauss
M Ashraful lbw Bopara ..............................................................................13 toasted a timely riposte from his side
M Mahmudullah lbw Yardy ......................................................................42 after inspiring them to an emphatic
M Mortaza c Kieswetter b Bopara........................................................14
A Razzak c Bresnan b Bopara ................................................................27 144-run triumph that clinched a 2-1
S Islam b Bopara............................................................................................16 one-day series win over Bangladesh.
R Hossain not out ............................................................................................2 Strauss led by example, bludgeon-
Lb2 w5 nb4............................................................................................11
Total (45 overs) ..............................................................................203
ing a boundary-laden 154 and sharing
Fall: 20, 24, 64, 77, 86, 102, 124, 180, 190. a 250-run partnership with Jonathan
Bowling: Shahzad 4-1-24-2, Bresnan 7-0-39-1, Broad 10-1-27- Trott as the hosts racked up an impos-
1, Wright 7-0-27-0, Bopara 10-1-39-4, Trott 3-0-18-0, Yardy 4-0- ing 347-7 at Edgbaston.
27-1.
Umpires: A Rauf & R Kettleborough. Recalled Ravi Bopara, who plun-
SECOND WOMEN’S ONE DAY INT’L: (Taunton); England dered 45 off just 16 balls, proved
Women 208-9 (S C S C Taylor 66) v New Zealand Women equally ruthless with the ball, taking
211-6 (S W Bates 75no). New Zealand Women beat England 4-48 as the tourists were dismissed for
Women by 4 wickets.
203 with five overs to spare.
GOLF England’s third highest one-day
USPGA JOHN DEERE CLASSIC (The TPC at Deere Run, total was just the kind of response
Silvis, Illinois)—FFinal rnd (USA unless stated, par 71): 258
Steve Stricker 60 66 62 70. 260 Paul Goydos 59 68 67 66. 264
Strauss needed only two days after
Jeff Maggert 66 65 63 70. 265 Shaun Micheel 69 66 63 67. slipping to a first ever defeat to
267 Matthew Jones (Aus) 64 67 66 70. 268 Vaughn Taylor 71 Bangladesh.
66 64 67. 269 Brendon De Jonge 67 65 68 69, Charley “It was a good way to bounce back
Hoffman 65 69 70 65, Tim Clark (SA) 71 66 66 66. 270 Brett
Quigley 68 67 68 67, Troy Matteson 69 66 67 68. 271 John after Bristol,” said Strauss. “We were
Senden (Aus) 70 66 65 70, Greg Chalmers (Aus) 68 70 67 66, obviously very disappointed with our
Tom Pernice Jnr. 71 67 65 68. performance there and wanted to put
US WOMEN’S OPEN (Oakmont Country Club, Oakmont, it right today.”
Allegheny County, Pennsylvania)—FFinal rnd (USA unless
stated, par 71): 281 Paula Creamer 72 70 70 69. 285 Na Yeon Strauss also savoured a personal tri-
Choi (Kor) 75 72 72 66, Suzann Pettersen (Nor) 73 71 72 69. umph, as his majestic innings – the
286 In-Kyung Kim (Kor) 74 71 73 68. 287 Jiyai Shin (Kor) 76 71 biggest ever by an England one-day
72 68, Amy Yang 70 75 71 71, Brittany Lang 69 74 75 69. 289 skipper – answered critics who have
Inbee Park (Kor) 70 78 73 68, Christina Kim 72 72 72 73. 290
Yani Tseng (Tai) 73 76 73 68, Sakura Yokomine (Jpn) 71 71 76 questioned whether he merits a role Strauss’s 154 was the biggest ever one-day score by an England captain and helped clinch a 2-1 series win. Picture: GETTY
72, Alexis Thompson 73 74 70 73. 291 Song-Hee Kim (Kor) 72 in the limited-overs side.
76 78 65. “I’ve been hitting the ball really whose haul included 16 fours and five control with some fine batting. Luke Iqbal started their response with pur-
TENNIS well throughout the one-dayers with- sixes. Another upset looked on the Wright, Paul Collingwood and Eoin pose, rattling off three fours, but was
WTA TOUR ECM PRAGUE OPEN (Prague, Czech out translating it into big scores and I cards when opener Craig Kieswetter Morgan all went cheaply before dismissed when Ajmal Shahzad foxed
Republic)—11st rnd: Anna Tatishvili (Geo) bt Magdalena
Rybarikova (Svk) 0-6 7-5 7-5, Polona Hercog (Slo) bt Tatjana was very determined to do that fell in the first over, but Strauss and Bopara’s dazzling cameo. him with a slow ball and Wright
Malek (Ger) 6-4 6-2, Johanna Larsson (Swe) bt Karolina today,” added the Middlesex batsman, Trott, who hit 110, put England in Bangladesh dangerman Tamim caught at mid-off.
Pliskova (Cze) 6-4 6-4.
ATP SKISTAR SWEDISH OPEN (Bastad, Sweden)—11st rnd:

Europeans are primed for

Potito Starace (Ita) bt (8) Florent Serra (Fra) 6-2 6-2, Pere
Riba-Madrid (Spa) bt Peter Luczak (Aus) 4-6 6-2 7-6 (8-6), THE OPEN | SELECTED TEE TIMES
Andreas Vinciguerra (Swe) bt Daniel Brands (Ger) 7-6 (8-6)
6-7 (5-7) 6-4.
ATP MERCEDES CUP (Stuttgart, Germany)—11st rnd: Marco
08.20 – Lucas Glover (US), Rory McIlroy
Chiudinelli (Swi) bt (8) Victor Hanescu (Rom) 7-6 (7-4) 6-3, (NI), Tim Clark (SA)

Open success, says Gallacher

Mischa Zverev (Ger) bt Sergiy Stakhovsky (Ukr) 6-4 6-3.
08.42 – Ian Poulter (Eng), Ernie Els (SA),
TODAY’S DIARY Stewart Cink (USA)
(Football 7.45pm unless stated) 09.09 – Tiger Woods (USA), Justin Rose
UEFA Champions Lge Second Qualifying Round First Leg:
AIK v Jeunesse Esch (6pm), Birkirkara v MSK Zilina (5pm), (Eng), Camilo Villegas (Col)
Bohemians v The New Saints FC, Dinamo Zagreb v Koper 09.20 – Padraig Harrington (Ire), Ryo
(7.15), Hapoel Tel-Aviv v Zeljeznicar Sarajevo (7pm), Inter
Baku v Lech Poznan (4pm), Levadia Tallinn v Debrecen (5pm), Ishikawa (Jap), Tom Watson (USA)
Litex Lovech v Rudar Pljevlja (6pm), Omonia Nicosia v Renova
(6pm), SK Liepajas Metalurgs v Sparta Prague (5pm), SV Red THE OPEN 12 months ago, the Europeans have
fought back and now account for half
Matchplay and of course Rory has
been doing so well. There’s also Justin 12.47 – Luke Donald (Eng), YE Yang
Bull Salzburg v HB Torshavn (5pm).
Friendly Matches: Bamber Bridge v Preston (7pm), Bath City
CHAMPIONSHIP of the world’s top 20 positions. Rose. Paul Casey hasn’t won a Major (Kor), Ricky Barnes (USA)
v Aldershot, Cammell Laird v Tranmere (7pm), Cirencester v BY JON COUCH Graeme McDowell bagged his first yet but he’ll be knocking on the door. 13.31 – Paul Casey (Eng), Angel Cabrera
Cheltenham, Clitheroe v Accrington Stanley, Crusaders v Major success at the US Open last “I don’t want to say who will win it
Macclesfield, Dartford v Dag & Red (7pm), Forfar v Raith THREE-TIME Ryder Cup captain month, while Justin Rose, Ian Poulter, but I think it will be a European.” (Arg), Rickie Fowler (USA)
(7.30), Frickley v Grimsby (7.30), Grays Athletic v Dag & Red Bernard Gallacher believes British Lee Westwood and Rory McIlroy have l Meanwhile, in-form Rose has 13.42 – Miguel Angel Jimenez (Spa), Lee
XI (7.30), Hereford v Swansea, Kettering v Northampton,
MFK Ruzomberok v Leeds (6.30), Mickleover Sports v Burton players have stolen a march on their all won on the PGA Tour this season. been drawn alongside world No1 Tiger Westwood (Eng), Adam Scott (Aus)
Albion, Nantwich Tn v Port Vale (7pm), Radcliffe Borough v American counterparts – and fully Gallacher said: “I think this is a Woods for the first two rounds of the 13.53 – Jim Furyk (USA), Graeme
Bury, Stocksbridge P S v Sheff Wed XI, Welling v Charlton. expects a home winner in this week’s new era. We had it in the 1980s and I Open, which starts on Thursday.
CRICKET Open Championship at St Andrews. think we’re reaching out to another Rose will tee off at 9.09am along- McDowell (NI), Geoff Ogilvy (Aus)
First Test Match—day 1 of 5: Pakistan v Australia (Lord’s). Irishman Padraig Harrington is the golden era led by Padraig Harrington, side Woods and Colombian Camilo 14.09 – Hiroyuki Fujita (Jap), Steve
SPEEDWAY only European to have lifted the a three-time Major champion. Villegas, while reigning champion Stricker (USA), Sergio Garcia (Spa)
National League: Isle of Wight v Plymouth. Claret Jug in the last decade, with the “Graeme McDowell’s victory at the Stewart Cink opens his defence along-
United States claiming 11 of the last US Open will inspire this generation. side Ian Poulter and another former 14.20 – Colin Montgomerie (Sco), Phil
15 winners since John Daly tasted suc- But there are so many players. I will champion, Ernie Els. Mickelson (USA), Retief Goosen (SA)
cess here at the Home of Golf in 1995. be very disappointed if Lee Westwood European Ryder Cup captain Colin 14.31 – Rhys Davies (Wal), Edoardo
SPORTS EDITOR JON COUCH But since Stewart Cink continued doesn’t win a Major this year. Montgomerie pairs up with world Molinari (Ita), Justin Leonard (USA)
email sport@cityam.com that trend with victory at Turnberry “Ian Poulter won the World No2 Phil Mickelson and Retief Goosen.
CITYA.M. 13 JULY 2010
Englishman Webb showed 14 yellow
cards and one red in a bad-tem-
pered final. Picture: ACTION IMAGES
Webb had ‘hard task’
admits chief Blatter Forlan dedicates Golden
WORLD CUP
2010
BY JON COUCH
FIFA president Sepp Blatter yesterday
leapt to the defence of under-fire ref-
eree Howard Webb for his handling
of Sunday’s ill-tempered World Cup
final in Johannesburg.
Englishman Webb brandished 14
yellow cards and one red to Holland’s
John Heitinga in an incident-packed
game, which saw Spain lift the trophy
for the first time, courtesy of 1-0 win.
Dutch coach Bert van Marwijk and
several of his players accused Webb of
being softer on the Spanish, while the
38-year-old was booed as he walked
up to collect his medal.
SPORT | IN BRIEF
Wiggins hit by Gerrans exit
CYCLING: Bradley Wiggins’ hopes of
winning the Tour de France suffered a
blow during yesterday’s rest day after his
Team Sky team-mate Simon Gerrans
withdrew from the race with a broken
arm.
Australian Gerrans, who had been
selected to help Wiggins in the mountain
stages, suffered the injury in a crash on
Sunday.
Wiggins struggled on the category one
climb to Avoriaz on Sunday and now lies
2.45mins behind yellow jersey holder
Cadel Evans.
Rossi set for shock return
MOTO GP: Valentino Rossi could be set
for a dramatic comeback to racing on
Sunday in the German Grand Prix.
The six-time Moto GP champion was
expected out for up to six months after
suffering a compound fracture of his
right shin at Mugello on 5 June.
But the Italian rode in a private test
session in the Czech Republic last week,
and is mulling over whether to make a
return.
But the former policeman yester-
day received widespread backing,
ranging from former Premier League
referees, a Premier League manager,
and indeed the most powerful man
in the game.
“The final was not exactly what I
expected in terms of fair play,” Blatter
said. “It’s not up to me judge the per-
formances of the officials, I can only
say it was not easy, really not easy and
they were really not helped in this
task.”
Elsewhere, Graham Poll, who rep-
resented England in the 2006 World
Cup, added: “I thought he did very
well in very testing circumstances.
“He chose to do it his way, which I
think made it a better game. Had he
chosen to step in and apply the laws
Murtagh won’t appeal ban
HORSE RACING: Top jockey Johnny
Murtagh has decided not to appeal
against the six-day ban he received for
careless riding aboard winner
Starspangledbanner in last Friday's July
Cup.
The suspension would rule the
Irishman out of the King George VI And
Queen Elizabeth Stakes at Ascot, and
indeed the first two days of Glorious
Goodwood, but Murtagh has opted
against challenging the decision of the
Newmarket stewards.
Molinari breaks into top 20
GOLF: Edoardo Molinari has moved into
the world’s top 20 for the first time after
his victory in the Scottish Open on
Sunday.
The Italian finished three shots clear
of Darren Clarke to claim his first
European Tour title, and moves into 19th
in the standings, back ahead of his broth-
er Francesco in 30th.
American Steve Stricker remains
fourth despite defending his John Deere
Classic title in Illinois.
strictly, which hasn’t been done the
whole World Cup to be fair to Howard,
we could have ended up with probably
eight Dutch players on the pitch.
“As it’s a World Cup final I’d give
his performance a nine [out of 10].”
Fellow retiree Dermot Gallagher
added: “He had one of the toughest
games he’s ever had but I don’t think
his career is in tatters, like some are
saying. Any referee would have had a
monumental task in that match.”
Sunderland boss Steve Bruce lent
his support, adding: “I think he han-
dled the thing very, very well. He was
mindful of the fact he didn’t want to
spoil the occasion by brandishing red
cards. But 14 yellow cards – and you
could look at them and think all of
them, really, deserved it.”
Golf buggy shame Powell
on course to join Wasps
▲
RUGBY UNION
BY FRANK DALLERES
WASPS are poised to swoop for Wales
and British Lions No8 Andy Powell
after Cardiff Blues confirmed they
are to terminate his contract early.
The Amlin Challenge Cup winners
said Powell had “lost his way some-
what” and cited the 28-year-old’s infa-
mous golf buggy incident earlier this
year.
Powell was arrested and suspended
from international duty in February
after taking the vehicle on a drunken
excursion on the M4 motorway hours
after a Six Nations match.
The player, meanwhile, says he
wants to leave the club because he is
keen to take on a new challenge.
Cardiff director of rugby David
Young said: “When he’s fully focused
Dutch anti-football
earns no sympathy
from legend Cruyff
WORLD CUP
2010
BY FRANK DALLERES
DUTCH icon Johann Cruyff has torn
into the Holland side, insisting they
deserved to lose the World Cup final
for adopting dirty, vulgar tactics.
Cruyff is the poster boy for the
Dutch concept of Total Football, hav-
ing starred in the 1970s national
team that wowed fans with their free-
flowing style.
And the former Barcelona coach
was therefore distinctly unimpressed
by his countrymen ditching tradition
and attempting to spoil the final by
systematically fouling Spain.
“On Thursday they asked me from
Holland ‘Can we play like Inter? Can
we stop Spain in the same way
Mourinho eliminated Barca?’,” said
Cruyff, who now lives in Spain.
“I said no, no way at all. I said no,
not because I hate this style – I said no
because I thought that my country
Ball award to team-mates
WORLD CUP
2010
BY JON COUCH
DIEGO FORLAN yesterday dedicated
his Golden Ball award to his
Uruguayan team-mates following
their fine World Cup campaign.
The Atletico Madrid striker was
named the best player of the tourna-
ment after his five goals fired the
South Americans to the semi-finals
before they were beaten by Holland.
“It’s as great as it is unexpected. I
Andy is one of the best back-row for-
wards in the country.
“However, it’s fair to say this last
season has been a difficult one for
Andy following the unwise incident
with the golf buggy and he has lost
his way somewhat.
“Both parties felt it was in the best
interests of the region and Andy if we
parted company and we wish him
well with his future rugby career.”
Powell has won 14 Wales caps and
toured with the Lions last summer,
and his agent said in a statement:
“Andy would like to thank Cardiff
Blues for all of their support over the
last five memorable years.
“Andy, however, felt that he needed
a new challenge and sees this next
season as pivotal in his ambitions to
represent his country and play in the
World Cup next year.”
Sport 27
wouldn’t dare to and would never
renounce their style. I said no
because, without having great players
like those of the past, the team has its
own style. I was wrong. Of course I’m
not hanging all 11 of them by the
same rope, but almost. They didn’t
want the ball.”
Holland accrued eight bookings in
the 1-0 defeat, with defender John
Heitinga getting a red card.
Cruyff added: “Regrettably, sadly,
they played very dirty. So much so
that they should have been down to
nine immediately, then they made
two ugly and hard tackles that even I
felt the damage.
“It hurts me that I was wrong in
my disagreement that instead
Holland chose an ugly path to aim for
the title.
“This ugly, vulgar, hard, hermetic,
hardly eye-catching, hardly football
style, yes it served the Dutch to unset-
tle Spain. If with this they got satisfac-
tion, fine, but they ended up losing.
They were playing anti-football.”
never even imagined something like
this, nor did I have my sights set on
it,” said Forlan, who beat Wesley
Sneijder and David Villa to the award.
“As I’m a striker, I perhaps could
have seen myself chasing the Golden
Shoe, and in fact I came close. That
would have been more normal.
“But to go from that to winning the
prize for the best player, I’m enjoying
it and I’m delighted, but I’m very
aware that it’s the result of the spec-
tacular tournament the team has
had. It’s another reward for this posi-
tive period for Uruguayan football.”
Red Bull expect
Webber to see
out contract
▲
FORMULA ONE
RED BULL chiefs expect Mark Webber
to see out his contract despite fresh
tension with team-mate Sebastian
Vettel.
Australian Webber raced to victory
at the British Grand Prix on Sunday
and then immediately hit out at his
team’s perceived favouritism towards
Vettel. The friction has cast doubt on
the future of Webber, who is contract-
ed to Red Bull until the end of next
season.
But team principal Christian
Horner said: “We’ve provided him
with a car that has enabled him to
run at the front, win grands prix and
challenge for the world champi-
onship. I doubt very much he is going
to walk away from that.”
 Sport
28
REIGN IN SPAIN
WORLD CUP
2010
BY FRANK DALLERES
SPAIN enjoyed a heroes’ welcome yes-
terday as legions of ecstatic fans and
the country’s top dignitaries alike
clamoured to greet the returning
world champions.
Around a million supporters lined
the streets of Madrid to cheer the
team, who celebrated a maiden
World Cup triumph with an open-top
BBC take ITV to the cleaners Schumacher may quit,
in World Cup final ratings war warns F1 boss Ecclestone
▲
FOOTBALL
BY JON COUCH
THE BBC proved the big winner in the
ratings war with ITV for the World
Cup final with almost five times as
many people tuning in to their cover-
age.
More than 21 million British view-
ers saw Spain lift the trophy for the
first time in their history with a 1-0
extra-time win over Holland.
The BBC drew a peak audience of
17.9 million during the tense period
of extra time, between 9.55pm and
10pm, with a 60 per cent share of the
bus parade. King Juan Carlos and
Prime Minister Jose Luis Rodriguez
Zapatero both personally thanked
Vicente del Bosque’s men, while
street parties were still in full swing
late last night.
Captain Iker Casillas had earlier
proudly carried the trophy across the
runway after the squad’s return
flight from South Africa touched
down at the capital’s Barajas airport
just after 1:30pm local time.
Spanish flags flew from the cock-
pit windows of a plane decorated
total audience.
ITV, however, could only manage a
peak of 3.8 million from 10pm to
10.05pm with a 13 per cent share.
But despite their resounding
defeat, ITV director Peter Fincham
said he was proud of his team’s
efforts. “Adrian Chiles and the entire
team brought our viewers coverage of
the highest quality and offered a
fresh perspective on the competi-
tion,” he said.
Worldwide, the final drew an esti-
mated audience of 700 million – 100
million more than the opening cere-
mony of the 2008 Beijing Olympics.
STRAUSS LEADS
BY EXAMPLE
ENGLAND CLINCH
ONE-DAY VICTORY: P26
with the slogans ‘Champions’ and
‘Proud of our squad’, while two fire
engines spraying water formed a
guard of honour.
They were soon whisked to
Zarzuela Palace for a reception with
King Juan Carlos, Queen Sofia and
their children Princess Elena and
Prince Felipe. The King spoke to each
of the 23 players, including Arsenal’s
Cesc Fabregas and Liverpool’s
Fernando Torres, before telling them:
“Thank you champions, in the name
of all of Spain and all Spaniards. You
TOTAL PEAK*
21.7m
BBC
17.9m
ITV
3.8m
*Figures based on audiences at their peak
brought together all Spaniards, made
our dreams a reality and projected
the name of Spain around the world.”
Next it was the turn of Prime
Minister Zapatero to meet them at
Moncloa Palace, where Real Madrid
goalkeeper Casillas said they had
deserved to add the World Cup to
their 2008 European Championship.
“I have the great fortune to repre-
sent all these great players,” he said.
“We’ve brought this trophy back
because we deserve it. This is for you
and the whole of Spain.”
FORMULA 1
2010
BY CHRIS SYLT
FORMULA One boss Bernie Ecclestone
says he doubts that seven-time world
champion Michael Schumacher will
stay in the sport if he continues to
under-perform for his Mercedes team.
Schumacher finished Sunday’s
British Grand Prix in ninth place and
he lies in the same spot in the stand-
ings with 36 points – less than half
the tally of team-mate Nico Rosberg.
“If Schumacher doesn’t perform I
doubt whether he will want to stay,”
said Ecclestone, adding that “he is
CITYA.M. 13 JULY 2010
Fans lined Madrid’s streets for a team
bus parade (left); King Juan Carlos
greeted Iker Casillas (top); Xabi Alonso
sprayed champagne (middle); and
Prime Minister Zapatero greeted coach
Del Bosque. Pictures: REUTERS, GETTY
Fabregas, meanwhile, earlier dedi-
cated his win to Arsenal, but mererly
added to confusion over whether he
will stay at the club.
The midfielder, who is wanted by
Barcelona, said: “All I can say is that
this is for the Arsenal players, for the
Arsenal fans, for the manager and for
all of the staff. I am really proud to
have been an Arsenal player.”
The Gunners captain then correct-
ed himself, saying: “I am an Arsenal
player and I am really proud to be able
to give this trophy to all the fans.”
obviously fit, motivated and talented
but the car hasn’t been up to him.”
Ecclestone tips fourth-placed
Sebastian Vettel to win the champi-
onship and he believes that his Red
Bull Racing team “deserve to win”.
“Red Bull bought a team that was
no good, it’s not like they bought
Ferrari,” said Ecclestone.
He also gave praise to Vettel’s team
mate Mark Webber who clinched a
third victory of the season at
Silverstone.
“Mark has done a good job,” said
Ecclestone, adding: “I would never
have believed it at the beginning of
this year if somebody had said to me
he is going to do this.”