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BUSINESS WITH PERSONALITY

TOP FIRMS UNVEIL RAFT


MARKETS
BY OLIVER SHAH
INVESTORS cheered a string of strong

OF BUMPER RESULTS quarterly results from UK companies


yesterday. Shell nearly doubled profits
to £2.9bn, AstraZeneca pledged
increased share buy-backs, BT reported

UK PLC BOUNCES BACK a six per cent rise in earnings, BAE


Systems expected revenue growth and
Trinity Mirror said first-half sales leapt.

P 7, 9, 11, 13, 14, 17, 18, 19 Despite the good news the FTSE 100
closed down 5.73 points at 5,313.95.

Issue 1,188 Friday 30 July 2010 www.cityam.com FREE

FSA PAY RULES TO Coalition in


big welfare
HURT THOUSANDS shake-up


POLITICS
BY DAVID CROW
IAIN Duncan Smith, the work and
REGULATION pensions secretary, will today unveil

BY OLIVER SHAH plans to scrap all out-of-work benefits


and replace them with a single pay-
LONDON and Europe will lose out to ment, in what will be billed as the
other financial centres if tough rules biggest welfare shake-up in decades.
on pay are rushed in, City figures A so-called “universal credit” will
warned as the UK watchdog revealed replace the myriad of different bene-
plans to curb bonuses yesterday. fits that are currently available,
Fears were stoked after the including housing benefit, jobseek-
Financial Services Authority (FSA) said ers’ allowance and income support.
it would update its remuneration Crucially, the credit will also be
code to match harsh measures put available to those working in low
forward by the European Union in income jobs, to ensure they don’t lose
time for January. Hedge funds, asset out when they move off of benefits
managers, building societies, stock- and into employment.
brokers and many others will be Duncan Smith is expected to say:
caught in the crackdown as the regu- “For many people, taking a job leaves
lator widens the scope of its powers them no better off than a life on ben-
on pay from 26 key banks to more efits, and this has trapped significant
than 2,500 financial companies. parts of our society in inter genera-
In a set of proposals designed to tional worklessness and entrenched
stop “rewards for failure”, the FSA, poverty.
led by Hector Sants, said: “The complexity of the system also
• at least 40 per cent of bonuses creates risk and uncertainty for the
paid to certain “code” staff will have FSA boss Hector Sants wants to implement the crackdown by 1 January, while BBA chief Angela Knight (inset) urges caution people in society who most need sta-
to be deferred over three years; bility. We want to simplify the system
• a minimum of 60 per cent will • and employees will be forbidden by promising to be fair and propor- broader than EU-wide. The worry is to make it clear that work will always
have to be deferred when a bonus from using personal hedging strate- tionate in finalising the pay code. It always that if regions are going to dif- pay.”
exceeds £500,000; gies or alternative vehicles to get also recognised that “firms currently ferent timetables, the one that does it The proposals will be unveiled in a
• half of any deferred portion will around the rules. within the scope of the code have last becomes a magnet for business.” command paper entitled 21st
need to be paid in shares or non-cash Calling for an overhaul of risk and expressed concerns about losing their Tom Gosling at Century Welfare. It will outline plans
instruments; reward culture at “the very top levels staff to competitors outside the scope PricewaterhouseCoopers said smaller to combine the benefits and tax cred-
• guaranteed bonuses of more of management”, the FSA launched a of the code”. firms could be put at a disadvantage: its systems; combine out-of-work and
than one year will be banned apart consultation ending 8 October. It But industry insiders said the FSA “There is a danger of a two-tier system in-work benefits into a single system;
from in “exceptional circumstances”; aims to firm up the policy by and EU’s timetables were too short. emerging, between large and small and introduce a series of supplemen-
• large financial groups will have November and bring in the changes Angela Knight of the British Bankers’ banks, the individuals within them tary payments for the most needy,
to set up remuneration committees by 1 January. Association said: “The issue that con- and also between EU and non-EU such as the disabled.
to look at risk and incentivisation; The regulator tried to soothe jitters cerns us is the industry is much players.” ALLISTER HEATH: P2 RETIREMENT AGE SCRAPPED: P4

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2 News CITYA.M. 30 JULY 2010

Moody’s profits
Flawed logic at heart of bonus rules beat Wall St
ed by the pay rules will jump from 27
to 2,500, including stockbrokers, asset
managers, hedge funds and others.
the crisis – would chastened share-
holders not force firms to make sure
that pay policies were sufficiently
than huge failures in capital adequacy
and liquidity regulation.” Needless to
say, nobody listened, not even
expectations
The FSA is playing catch-up: it is imple- long-termist? After all, the bonus rules Turner’s own FSA.


menting directives laid down in are meant to protect shareholders There is a big difference between FINANCIAL SERVICES
Brussels. Bonuses are not being against their own staff, in a bizarre arguing that a few systemically impor-
capped – but many employees will see form of reverse Marxist logic. Second, tant banks should have their pay regu- MOODY’S posted better-than-expected
40-60 per cent of their compensation if short-termist bonus policies were so lated and saying that all financial second quarter profit as demand for
EDITOR’S LETTER deferred over three year periods and important in fuelling the bubble, why institutions should face the same debt ratings picked up.
paid out in equity or equity-like instru- is there no robust academic evidence rules, even if they are too small to pose Earnings rose to $121m (£77m)
ALLISTER HEATH ments. that demonstrates this? Why are seri- a risk to the economy. This massive from $109.3m yesterday, while rev-
It makes sense for pay policy to be ous academics more concerned with extension of the state’s power to regu- enue of $477.8m, down from the first
JUST a few years ago, it would have reformed, of course, and for compa- other factors, such as low interest late private contracts is therefore quarter but up six per cent from a
been unthinkable that governments nies to align their interests with those rates, faulty capital adequacy or incor- unnecessary, wrong and counter-pro- year earlier.
would seek to regulate the way of their staff. Some firms did incen- rect mathematical models? Third, ductive. The new rules will merely The rating agency was cautious
employees were paid by private firms. tivise some of their staff – especially how come Lehman, AIG and other guarantee less wealth and prosperity about the outlook for its business,
The recession changed all of this: it those with a sales role – to behave in flawed firms actually paid a large pro- for London. Over time, activity will which faces a tough second half as
soon became the received wisdom excessively exuberant ways; it is good portion of their bonuses in shares? For migrate to Asia, to the Middle East, to debt issuance slows and costs associ-
that large banks deemed “too large to that the largest institutions have some reason, what now passes as best Switzerland and even to the US. The ated with new financial regulation
fail” should have their pay policies reg- cracked down on this. Yet to acknowl- practice didn’t save them. rest of the EU doesn’t care; as far as increase. But Moody’s reported a big-
ulated by the state to make sure they edge the need for reform does not I’m not the only sceptic: at last Paris and Berlin are concerned, ger jump in revenue than Standard &
don’t encourage staff to take large mean accepting that the best way for- September’s Mansion House speech, London deserves to suffer. But the Poor’s. Regulatory changes now
risks which could jeopardize the eco- ward is for the government to step in. Lord Turner, the FSA’s chairman, coalition government should have threaten to cut into their businesses.
nomic system. Yesterday, the authori- Three points were never answered pointed out that “it is possible to over- stood up for the City; it beggars belief Under new financial reform, ratings
ties signalled a further extension of adequately by supporters of regula- state the importance of bonus struc- that it has not done more to protect agencies can be sued if they “reckless-
their powers with the FSA’s announce- tion: first, why – given that everybody tures in the origins of the crisis: they London’s competitiveness and jobs. ly” fail to review information in a rat-
ment that the number of firms affect- has learnt at least some lessons from were, I believe, much less important allister.heath@cityam.com ing.

7th Floor, Centurion House,


24 Monument Street,
London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
EU in push for market clarity
Email: news@cityam.com www.cityam.com
REGULATION “tape” or “pipe” that contains all the MIFID REVISED | THE NEW PROPOSALS AT A GLANCE

Editorial BY HARRY BANKS prices from share trades across the


Editor Allister Heath whole market to give investors a com-
Deputy Editor David Hellier EUROPEAN Union regulators pro- prehensive view. ● New trading facilities spawned by should in future be applied to cover most
News Editor Ben Griffiths posed radical changes in the way the The recommendations include les- MiFID to be treated like exchanges, a of the bonds trading sector, sovereign as
Night Editor Katie Hope region’s securities markets operate sons from the financial crisis on the step bourses have lobbied hard for. well as corporate.
Associate Editor David Crow yesterday so that investors have a need for more transparency and the ● Best execution rules improved though ● Industry-wide mandatory taping of
Lifestyle Editor Zoe Strimpel complete snapshot of prices currently demands on regulators to keep up Portugal wanted more radical change to voice communications handling share
Art Director Darren Soulsby fragmented by fierce competition. with big advances in trading technol- link all trading venues. orders, a step Germany opposed.
Pictures Alex Ridley Heavy lobbying by bourses for their ogy. ● Extending MiFID’s transparency rules ● MiFID’s post-trade transparency
new rivals to face the same tough However, regulators have made no from shares to similar instruments like regime should also apply to structured
Commercial rules as themselves appears to have proposals on high-frequency trading
deposit receipts, exchange-traded funds finance products and cover all asset-
Sales Director Jeremy Slattery paid off. In-house trading by big or ultra-fast computer-aided trading
Commercial Director Harry Owen banks also face tougher rules. that has come to represent a major and certificates. backed securities and collateralised debt
Head of Distribution Nick Owen The EU’s executive European chunk of volumes on exchanges. ● Investors should not be forced to buy obligations for which a prospectus has
Commission is reviewing the Markets CESR is due to become a more pow- huge wads of bundled data but have the been issued.
Distribution helpline in Financial Instruments directive erful pan-EU markets authority from choice to buy subsets, a step exchanges ● All credit default swap contracts, cor-
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email (MiFID), a set of EU rules introduced next year and wants specific powers may resist as data is a key moneyspinner porate or sovereign, should come under
distribution@cityam.com in 2007. to issue binding guidelines to regu- for the. MiFID’s transparency regime if they are
The Committee of European late any change in trading technolo- ● Volumes at in-house share trading net- eligible for clearing.
Editorial Statement Securities Regulators (CESR) is advis- gy. works at big banks will be limited, ● A harmonised post-trade transparency
This newspaper adheres to the system of ing the Commission on drafting
amendments to MiFID and has rec- beyond which they must become a for- regime for over-the-counter (off-
self-regulation overseen by the Press Complaints FSA director and CESR mally regulated market with all the exchange) derivatives should be devel-
Commission. The PCC takes complaints about the ommended major changes that will
editorial content of publications under the Editor’s rules co-author Sally transparency rules that entails. CESR is oped quickly.
change business models of stock
Code of Practice, a copy of which can be found at
www.pcc.org.uk exchanges, brokers, banks and new Dewar says the new eyeing whether a five per cent threshold ● A compulsory pre-trade transparency
Printed by Newsfax International,
trading venues. rules will deliver “major used in the US is suitable for the EU too. regime should be required for all non-
Beam Reach 5 Business Park, One key recommendation is the transparency benefits.” ● MiFID’s post-trade transparency rules equity instruments traded on exchanges.
Marsh Way, Rainham, Essex, RM13 8RS mandatory creation of a consolidated

WHAT THE OTHER PAPERS SAY THIS MORNING


the sector’s profits in coming years.
The burst of fundraising in the US is
in stark contrast to Europe where
LI KA-SHING PAYS £5.8BN FOR UK banks have struggled to issue debt as GOLDMAN SACHS CLAMPS DOWN ON HSBC GETS BULLISH ON RUSSIA YEN PULLS NINTENDO TO A LOSS
UTILITY the Eurozone crisis and worries about OFFENSIVE E-MAILS HSBC is plunging headlong into Nintendo yesterday reported its first
EDF of France is set to sell its UK elec- the financial industry have under- Goldman Sachs has tightened its Russian equities as it makes the quarterly loss in more than two years,
tricity networks business to Cheung mined market confidence. supervision of employees’ e-mails in world's biggest bet on the rising mid- as Japan’s strong currency and a lack
Kong Infrastructure of Hong Kong for an effort to ensure that embarrassing dle classes of Asia, Latin America, and of major new products further
£5.8bn, 45 per cent more than the EUROPEAN BUSINESS RECOVERY messages never again escape the the commodity bloc. pinched the videogame maker.
price originally suggested for the A number of Europe’s leading compa- walls of the investment bank. At a “Russia is our favourite,” said Nick Its weak fiscal-first-quarter results are
deal, according to a person close to nies reported stronger-than-expected recent meeting in London, staff were Timberlake, HSBC’s emerging mar- the latest sign that the high yen is
the negotiations. earnings on Thursday, underlining told that Goldman had changed the kets chief. “We’re being offered a huge weighing on Japanese exporters by
The state-controlled French electricity the strength of the corporate recovery search parameters on the system opportunity. It is not quite as good as canceling out the benefits of their
group is expected to announce the across the continent. used to monitor incoming and outgo- it was after Russia’s debt default in cost-cutting and recovering demand.
sale with its half-year results on Heavyweight names such as Siemens, ing e-mails. 1998, but it's excellent value.” Overseas markets accounted for 87
Friday morning. The deal at a stroke Royal Dutch Shell, Volkswagen and per cent of the Japanese game con-
reaches the €5bn target the French BASF all saw their second-quarter UK TAKES DELIVERY OF LIGHTER, CHINA BLOCKS GOOGLE AGAIN sole maker’s group revenue for the
utility set for disposals by the end of profits beat analysts’ forecasts consid- LEANER KINDLE Google’s internet search services were three-month period ended in June.
2011. erably. “It’s another good set of Amazon has launched a new version last night blocked in mainland China
results,” said Adrian Cattley, equity of its Kindle e-reader at a knock-down just three weeks after a denouement TOYOTA RECALLS 480,000 VEHICLES
US BANKS IN RUSH FOR CHEAP strategist at Citigroup speaking yes- price of £109 and will sell the device between the technology giant and the FOR STEERING FIX
FINANCE terday. “It is important not to confuse directly to UK customers for the first secretive superpower appeared to Japanese carmaker Toyota Motor is
US banks are taking advantage of [gross domestic product] with stock time. The Kindle had previously been have been reached. Google’s regular recalling about 480,000 vehicles
improving earnings and growing markets. Just because European GDP available on Amazon’s US website monitoring of its operations in the around the world, mostly Avalon
investor demand to raise billions of is poor doesn’t mean that European which meant that, including import country revealed last night that its large sedans in the U.S., for steering-
dollars in debt at historically low corporate profitability should be taxes, early adopters had to stump up search services had been fully blocked system flaws that could develop over
interest rates, a move that could boost poor.” more than £200 to buy the e-reader. in the region. time and lead to a loss of control.
CITYA.M. 30 JULY 2010 News 3

Citi pays SEC FED PRESIDENTS CLASH OVER POLICY NEWS | IN BRIEF
US plans offshore drilling vote
The US Senate is planning to hold a pro-
cedural vote next Wednesday to test

$75m to clear whether there is enough support to pass


legislation clamping down on offshore
oil drilling procedures and expanding
alternative energy. If Democrats cannot
get the necessary 60 out of 100 votes in
favor of debating the legislation, they

subprime case are likely to put off further action until


at least mid-September.

KNOC to finalise Dana bid loans


Korea National Oil Corporation (KNOC)
is one step closer to setting up the loans
it needs to put in a £1.7bn bid for Dana
BANKING material omission of disclosure Petroleum. The South Korean state

BY EMMA SADOWSKI requirements. owned oil company already has letters


Under the settlement, the bank did of commitment a consortium of banks,
CITIGROUP will pay $75m (£48m) to not admit or deny the allegations. which it plans to deliver to Dana’s advis-
settle charges that it failed to disclose The SEC has asked a federal judge to ers as early as tomorrow, it is under-
subprime exposure to investors in approve the settlement. stood. Under UK law, the loan is required
2007, the US Securities and Exchange Citigroup said the bank was before KNOC can make a firm offer,
Commission (SEC) said last night. pleased that it had reached an agree- while Dana said last week that talks
The SEC also charged former chief ment with the SEC. could not go through until it had
financial officer Gary Crittenden and received assurances that KNOC could
Arthur Tildesley Jr, Citigroup’s for- ANALYSIS l Citigroup finance the offer.
mer head of investor relations and 4.6 $ 4.11
current head of cross-marketing, 4.4
29 Jul Sony bounces back in to the black
making the officials among the few Sony said yesterday it had returned to
to face charges in the financial crisis. 4.2 the black in the fiscal first quarter due
The pair agreed to pay a total of to sales of televisions, PlayStation 3 con-
4.0
$180,000 to settle charges of con- soles and computers, as other Japanese
tributing to misleading statements 3.8 US FEDERAL Reserve officials have clashed over whether the bank should be more aggres- makers followed suit. Sony also revised
about the bank’s subprime exposure. sive in supporting the economy. St. Louis Federal Reserve Bank president James Bullard (l), its annual profit forecast by 20 per cent
The bank understated its exposure by 3.6 a voter on the Fed’s policy-setting panel, said the central bank should be ready to smore to 60bn yen in the year ending March
about $40bn, the SEC said. 3.4
aggressively pump credit into the financial system to get the economy going. But Dallas 2011, despite worries about the yen's
The SEC charged Citigroup with 3 May 21 May 11 Jun 1 Jul 22 Jul Fed president Richard Fisher (r) argued further accommodation would have little effect. strength.

Clapham House
shares rocket
TalkTalk gets tie-up BP in Venezuelan asset
sale talks with Russian JV
on bid approach deal with Vodafone The sale is part of a plan by BP to
BP IN CRISIS dispose of up to $30bn in assets over
The telecoms group is likely to BY EMMA SADOWSKI the next 18 months as it attempts to

LEISURE TELECOMMUNICATIONS
offer cheaper monthly contracts to offset some of the costs related to the
BRITISH restaurant operator Clapham MOBILE provider TalkTalk has customers, adding both to the servic- BP IS currently negotiating a deal Gulf of Mexico oil spill, now as high
House said yesterday it received an penned a deal with Vodafone unveil- es it provides and to pricing competi- that could see it sell off some of its as $32.2bn.
offer approach, sending its shares up ing a new mobile phone service tar- tion in the sector generally. Venezuelan assets to joint venture BP is also lining up a number of
as much as 27 per cent. geting existing broadband Vodafone won the contract over a partner TNK-BP. potential sales in Columbia, Vietnam
The owner of Gourmet Burger customers under its own name. number of bidders, making this a The Russian group, which is split and Pakistan to not only help pay for
Kitchen and the Real Greek said there Vodafone and TalkTalk are expect- noteworthy deal for the UK compa- between BP and a consortium of oli- the disaster, but to also meet its inten-
was no certainty that an offer would ed to report the deal this morning, ny. garchs known as AAR, is considering tions to become a smaller and leaner
be made. which is likely to add further compe- The deal will put Vodafone and the South American purchase in a bid company.
The company, which operates 73 tition to the mobile phone market. TalkTalk in line with rival Virgin to pursue plans to expand interna- It has already agreed a $7bn deal
restaurants across the UK and 15 Under the agreement, TalkTalk will Media, which is the only provider tionally. with US rival Apache and could sell
internationally, declined to comment use Vodafone’s network to launch the that offers home phone, mobile, TV Analysts estimate the sale to be off a further $500m in African retail
further about the approach. service by targeting customers that and broadband packaged services. worth $850m and TNK-BP said that it assets. It is understood that India’s
Clapham reported a 50 per cent already subscribe to its broadband Neither Vodafone or TalkTalk was actively evaluating the opportu- Reliance and the Essar Group are
rise in full-year pretax profit. and phone services at home. would comment last night. nity to invest in the assets. interested in making an offer.
4 Focus on retirement age CITYA.M. 30 JULY 2010

BUSINESS VIEWS: WHAT DO YOU THINK ABOUT THE GOVERNMENT’S


DECISION TO SCRAP THE DEFAULT RETIREMENT AGE?
JOHN CRIDLAND | GRAEME LEACH |

“ “
CBI INSTITUTE OF DIRECTORS

A default retirement age (DRA) We greatly regret the government’s


helps staff think about when it is right to decision to abolish the DRA. We do not see
retire, and also enables employers to plan how the removal of a mechanism that gives
more confidently for the future. In certain employers flexibility in managing their work-
jobs, especially physically demanding ones, force is compatible with the government’s

” ”
working beyond 65 is not going to be possi- stated desire to boost enterprise and de-reg-
ble for everyone.” ulate the employment arena.

CHRIS GORMAN | FORUM OF PRIVATE BUSINESS

“ If the default retirement age is scrapped, business owners will be forced to keep on workers past the


age of 65, whether they want to or not. This will prove a huge problem for thousands of small firms, hampering
their abilities to plan for the future.

Work and pensions secretary Iain Duncan Smith authored the plans Picture: REX

Firms hit out


at retirement
age proposals
complex legal and employment ques-

POLITICS
BY DAVID CROW tions, which the government has not
yet addressed,” said CBI deputy direc-
BUSINESS groups yesterday rounded tor-general John Cridland.
on plans to scrap the default retire- And the Institute of Directors (IoD)
ment age (DRA), accusing the govern- hit out at the government, pointing
ment of rushing the proposals out it came to power on a promise of
through without proper consultation. cutting red tape for businesses.
From next October, firms will be Graeme Leach, director of policy at
unable to automatically lay off staff the IoD, said: “The coalition agree-
when they reach 65, allowing millions ment states... no new regulation is
to work into their 70s and 80s. brought in without other regulation
The DRA will be scrapped in being cut by a greater amount. So
October but the effects will be felt where are the announcements outlin-
from April onwards, as employers ing the regulations to be cut?”
must give six months’ notice to staff And Adam Marshall, director of
they want to retire. Policy at the British Chambers of
Unions and charities representing Commerce said the plans would
the elderly welcomed the move, but restrict businesses’ ability to manage
businesses reacted angrily. their workforce.
Employers’ group the CBI said the Audrey Williams, a partner at
timetable had given firms little Eversheds, warned younger employ-
chance to prepare for the changes. ees would become disgruntled, as the
“Scrapping the DRA will leave a vac- policy could cause a dearth of promo-
uum, and raise a large number of tion opportunities.

DEFAULT RETIREMENT AGE

Q. WILL FIRMS STILL BE ABLE TO GET


RID OF STAFF THAT ARE “TOO
OLD”?
employer will not
only have to prove
they were right to dis-
Q&A
A. It will be much, much harder.
Companies will have to begin a
performance management process to
miss the staff member on perform-
ance grounds, but also that they are
being even-handed across the work-
prove that a member of staff is no force. Otherwise they could stand
longer able to carry out their duties open to accusations of age discrimi-
effectively. Even if they can prove that nation.
an employee is underperforming,
they will have to give them ample
opportunity to try and improve, Q. CAN A FIRM INTRODUCE ITS OWN
COMPULSORY RETIREMENT AGE?
potentially delaying the point at
which they can terminate employ-
ment by months or even years.
A. In theory, yes, but it will be very,
very difficult. Firms would have
to prove that there was a good reason
for a compulsory retirement age that

Q. CAN AN EMPLOYEE APPEAL


AGAINST DISMISSAL?
applied across all types of roles in the
business. Although likely to be very

A. Disgruntled employees will be


able to take their employer to tri-
bunal if they think they are still per-
costly, most firms will probably want
to go down the route of dismissing
employees for performance-related
forming adequately in their job. The reasons.
CITYA.M. 30 JULY 2010 News 5

McAfee results
Eurozone pain trump Wall
Street’s target
eases profits TECHNOLOGY


at Santander MCAFEE, the security software
maker, reported better-than-expected
profit yesterday, lifted by growth in
its consumer business.
The company reported net earn-
ings for the second quarter of $39.4m
(£25.2m) up from $28.7m last year.
Revenue rose four per cent to
per cent to €1.01bn.

BANKING $489.2m, while non-GAAP revenue


BY VICTORIA BATES Santander, which is in exclusive Moore Capital boss Louis Bacon (right) with wife Gabrielle Sacconaghi Picture: GETTY came in at $495.3m. Wall Street was
talks to buy over 300 branches from targeting sales of $507.4m.

Moore Capital follows


SPANISH banking giant Santander the Royal Bank of Scotland, con- The company’s consumer business
yesterday unveiled a year-on-year fall firmed yesterday it would add 600 grew eight per cent, while the corpo-
in first-half profits, stung by a weak new jobs in the UK on the back of the rate business rose five per cent.
performance in the crisis-hit strong performance. Growth in North America and Asia-

rivals to open Swiss unit


Eurozone and another hike in the António Horta-Osario, the chief Pacific was strong, while sales in
amount it put aside to cover bad executive of Santander’s UK opera- Europe fell slightly.
loans. tions, said: “We have had growth McAfee forecast earnings for the
Net attributable profit over the across all areas of the business, current quarter, excluding items, of
first six months of the year slumped demonstrating that our transforma- $505m to $520m.
1.6 per cent to €4.45bn (£3.73bn), tion into a full-service commercial Shares rose less than one per cent
dragged down by a six per cent fall in bank is progressing successfully.” HEDGE FUNDS Switzerland offers an attractive pack- to $30.50 in extended trading.

income from continental Europe. The group said that the UK has BY OLIVER SHAH age in terms of work-life balance as
Provisions for bad loans, which now caught up with its home market, well as earnings. ANALYSIS l McAfee
have started to ease at many of the Spain, in terms of balance sheet MOORE CAPITAL, the New York-based Moore Capital, which is run by the 40 $
bank’s global peers, rose again by six share, with both contributing 33 per hedge fund, has become the latest flamboyant Louis Bacon and man-
per cent to €4.92bn, though cent of loans and 31 per cent of cus- alternative investment manager to ages an estimated $15bn (£9.6bn), fol-
38 30.25
29 Jul
Santander insisted that the rate of tomer funds. set up an office in Switzerland. lows in the footsteps of other funds. 36
increase had slowed sharply. Santander now has over 1,300 Moore Capital has opened a branch Last month, Brevan Howard Asset
However, in the UK – where branches in the UK, a tally which in Zürich to give its partners the Management co-founder Alan 34
Santander has been on a buying spree would be boosted significantly if a option of working in a low-tax envi- Howard moved to the firm’s newly 32
over the past few years, snapping up deal with RBS is announced, as ronment. Portfolio manager opened office in Geneva, joining two
Abbey, Alliance & Leicester and expected, within days. It employs over Kornelius Klobucar has moved from other traders. 30
branches of Bradford & Bingley – the 22,800 people in the UK, out of a London to lead the team. A Moore Capital spokesman con-
28
bank saw attributable profit soar 14 group workforce of 170,264. The investment firm believes firmed the move to City A.M. 3 May 21 May 11 Jun 1 Jul 22 Jul
A Daimler Brand

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Customer deposit £3,699 Optional purchase payment† £12,025 Total charge for credit £2,798.52 Total amount payable‡ £28,098.52
Number of payments 36 Acceptance fee £180 Amount of credit £20,265.48 Purchase activation fee† £95

Typical 5.9 % APR


Official government fuel consumption figures in MPG (Litres per 100km) for the C180 K BlueEFFICIENCY Executive SE Saloon with manual transmission: Urban: 32.8 (8.6), Extra Urban: 54.3
(5.2), Combined: 43.5 (6.5). CO2 emissions: 154 g/km. Model shown is a Mercedes-Benz C180 K BlueEFFICIENCY Executive SE Saloon manual with optional metallic paint at £630.00. Total price: £25,300.00 on-the-road (price includes VAT, delivery, maximum Road
Fund Licence, number plates, new vehicle registration fee and fuel). *Based on a Mercedes-Benz Agility agreement. **The Retailer contribution is only available with this finance offer. †Payable if you exercise the option to purchase the car. ‡Includes optional purchase payment and purchase activation
fee. Example based on 10,000 miles per annum. Excess mileage charges may apply. Guarantees and indemnities may be required. This finance campaign is available for C-Class Saloon models, excluding special request engines, registered between 1st July and 30th September 2010. Offer cannot be
used in conjunction with any other published offer from the Retailer and is subject to availability. Terms and conditions apply. Prices correct at time of going to print. Credit provided subject to status by Mercedes-Benz Financial Services UK Ltd, MK7 8ND.
6 Telecoms News CITYA.M. 30 JULY 2010

Sky smashes expectations


as HD fuels surge in demand
BT (FIRST QUARTER)
last three months. play” package of broadband, TV and The results do no favours for the

MEDIA
BY STEVE DINNEEN Adjusted revenue for the year was phoneline – a 36 per cent hike year-on- broadcaster’s biggest shareholder
up 11 per cent to £5.9bn, with pre-tax year. News Corp, which is mulling a multi- Revenue: £5bn (down 4%)
BSKYB is in touching distance of profit almost trebling to £1.17bn com- The broadcaster also announced a billion-pound bid to take control of the Adjusted profits: £446m (up 17%)
achieving 10m subscribers after pared to last year, when the company major tie-up with HBO, the US chan- firm. News Corp, which has a 39 per
announcing it made a net gain of booked a loss on its ITV stake. Adjusted nel behind hit shows like The Wire, to cent stake in the firm, last month saw Broadband customers added this
90,000 customers in the fourth quarter. operating profit – excluding a settle- screen its output in the UK. a bid of 700p-a-share rejected. quarter: 96,000
In a strong set of results the sub- ment with Electronic Data Systems – Chief executive Jeremy Darroch This would have valued the firm at
scription TV giant announced that rose 10 per cent to £855m. said: “We’ve had another good quarter £7.8bn but analysts suggest it may take Pension deficit reduction:
demand for its HD content has surged, In a blow to BT, 20 per cent of Sky’s to bring our financial year to a strong closer to 800p a share to tempt Sky’s
with 429,000 users signing up in the customers now subscribe to its “triple close.” board into recommending the offer. £2.4bn (from £9bn to £6.6bn)
ANALYSIS l BSkyB 711.00
750 29 July
700

650

600

550

19 May 9 Jun 29 Jun 19 Jul SKY (FULL YEAR)


ANALYSIS l BT Group 144.30
145 29 July Revenue: £5.9bn (up 11%)
140
Adjusted profits: £855m (up 10%)
130 Broadband customers added this
120 quarter: 119,000
Number of additional HD
110
subscribers this quarter: 429,000
19 May 9 Jun 29 Jun 19 Jul

BT profit climbs by 17pc


despite tough trading
The £9bn blackhole in BT’s pension

TELECOMS
BY STEVE DINNEEN scheme has started to shrink, with
the Pension Trust now estimating the
BT shrugged off difficult trading con- deficit to be around £6.6bn.
ditions in the wake of government The biggest surprise in the results
cuts to match expectations in its first came from the firm’s free cash-flow,
quarter. which is usually down by around
The telecoms giant, which last £100m during the first quarter but
month declared war on Sky with its shot up to £437m.
entry into the lucrative Premier Chief executive Ian Livingston
League subscription market, reported called the results “acceptable”.
first quarter revenue of £5bn, down Early reports suggest the uptake of
four per cent on the year before. BT’s Premier League football package
However, rigorous cost cutting has been sluggish, despite the firm
pushed core earnings up six per cent undercutting Sky.
to £1.4bn and profit before tax BT continued to invest in its fibre
jumped 17 per cent to £446m. cable network, which it said hit the
It also paid off a portion of its 1.5m home milestone this quarter. It
mammoth debt pile, reducing it by added 96,000 new broadband cus-
£1.6bn to £8.9bn. tomers through BT Retail.

A tale of two tech titans


BACK in 1989, if you had predicted ward. Public spending cuts won’t
that Sky TV would become more help; Ovum analyst David Maloney
successful than BT, you’d have been estimates that 23 per cent of GS rev-
laughed out of the room. Rupert enues come from the public sector,
Murdoch’s Australian chutzpah with eight per cent of that at risk
was considered no match for the from the impending fiscal squeeze.
state monopoly that BT was handed Although there are bright spots
on a plate, and which it squandered on the horizon – including a next
away over the following years. generation super-fast network that
You’d have been right though: will stand out from the crowd –
BSkyB, the plucky insurgent, is now there is one unalterable fact: BT’s
worth over £1bn more than BT in profits are only rising because man-
terms of market cap. agement is cutting costs faster than
Nor are things likely to change revenues are falling. Such a busi-
any time soon, if at all. Revenue at ness model is unsustainable.
Global Services (GS), the one-time
engine room of the business that
has become an albatross round its
neck, continues to move south-
BOTTOMLINE
Analysis by David Crow
CITYA.M. 30 JULY 2010 Telecoms News 7

European chief executive Matthew Key (l) welcomed the results in the wake of chairman Cesar Alierta’s (r) successful Vivo bid.

Telefonica looks to new buy


Vivo after positive results
TELECOMS Brazilian telecoms firm Vivo for one-third of group revenue.

BY STEVE DINNEEN €7.5bn (£6.3bn). The firm hopes the Revenue at the unit was down 3.2
deal will bolster revenue streams, per cent in the second quarter, hav-
O2 OWNER Telefonica posted a robust which are slowing in its mature ing fallen 5.7 per cent in the first. The
9.4 per cent rise in first-half profit as European markets. company managed to keep a lid on
strength abroad offset a weak, but Telefonica posted first-half net prof- costs and retain more customers as it
improving, performance in its native it of €3.78bn, with revenue of fought off cheaper competition.
Spain. €29.05bn, both slightly ahead of fore- In Latin America, Telefonica’s rev-
The results were released just cast. enue was up 10.2 per cent and core
hours after the firm announced it The results showed modest signs of earnings were up 6.1 per cent. The
had completed the long-mooted buy- improvement at Telefonica’s reces- unit accounts for the bulk of group
out of its joint venture partner in sion-hit Spanish unit, which makes revenue.
CITYA.M. 30 JULY 2010 News 9

ANALYSIS | Shell and BP second quarter results

Exxon Mobil tops Wall St as


$4.5bn
Profit
$17bn
loss output rises eight per cent
Asset Sales Asset Sales
$7-8bn $30bn Oil and gas output in the quarter have improved in recent months,


ENERGY
BY HARRY BANKS rose eight per cent, boosted by the with business and consumer demand
company’s liquefied natural gas proj- for diesel and gasoline rebounding.
EXXON MOBIL reported a better-than- ects in Qatar, Exxon said. Crude oil prices have also climbed
Dividend Dividend expected second-quarter profit, with While, Exxon’s refining business roughly 30 per cent from a year ago,
Payment Payment oil prices and margins to process reported a better-than-expected profit another factor that has contributed

$2.4bn
crude into fuel rebounding and pro- of $1.22bn in the second quarter, up to higher profits in the second quar-
0 duction rising.
Profits for the US-based group
sharply from $512m from a year earli-
er. Barclays Capital had expected
ter for oil companies.
Shares in Exxon rose to $61.35 in
came to $7.56bn (£4.83bn) in the quar- Exxon’s refining business to report a premarket trading from the previous
Costs relating ter excluding items, compared with profit of $860m. day’s close of $60.91, but fell slightly
Costs relating to the Gulf $4.09bn a year ago. Conditions in the refining sector to close at $60.52.
to the Gulf of Mexico spill
of Mexico spill
$56m $32.2bn

Shell trumps
BP by posting
strong profits
Shell, which will pay out a $2.4bn

ENERGY
BY EMMA SADOWSKI dividend, revealed plans to sell off up
to $8bn in assets through the course
ROYAL DUTCH SHELL eclipsed rival of next year.
BP yesterday after posting second “We will exit from non-core posi-
quarter profits of $4.5bn (£2.9bn) tions, both in upstream and down-
almost doubling last year’s numbers. stream as we refocus our portfolio on
The rise from $2.3bn a year ago material positions with growth
came after the Anglo-Dutch oil giant potential,” said Voser.
underwent a radical year-long However, Shell’s offshore drilling
restructuring, which delivered $3.5bn business in the US was hit by a six-
in savings, and axed around 7,000 month moratorium on deep sea
jobs. Profits were helped by higher drilling, which the Obama adminis-
refining margins than a year earlier, tration imposed after the explosion of
as well as higher oil and gas prices the Deepwater Horizon rig on 20
than in 2009, when much of the glob- April.
al economy was still in recession. Shell has already taken a $56m hit
Shell’s profits place the company as a result of the ban.
well ahead of embattled BP, which “[Shell] will be one of the most
reported quarterly losses of $17bn ear- affected by the Gulf BP accident and
lier in the week as a result of the dev- subsequent US government drilling
astating Gulf of Mexico oil spill. moratorium there...due to its large
Peter Voser, Shell’s chief executive operation,” said Christine Tiscareno,
officer said the company’s perform- at Standard & Poor’s Equity Research.
ance was good despite continual chal- Voser said he would consider
lenging macro economic conditions. reclaiming the money from BP.

Breathing space for Connaught


after it secures £15m overdraft
tangible evidence of support from

PROPERTY
our lenders. We will now seek to put
SOCIAL HOUSING maintenance firm in place arrangements which will
Connaught soothed investors yester- leave Connaught on a more secure
day with the news it has secured an footing for the longer term.”
additional £15m overdraft facility The firm is today expected to
and delayed repayments on other receive the results of an independent
loans. enquiry into its accounting policy,
The company said earlier this week conducted by Deloitte. It requested
it was in urgent need of funds to the investigation after a profit warn-
avoid breaching banking covenants. ing wiped more than 90 per cent off
Connaught said it will continue the firm’s share value in a month.
negotiations with banks to secure The FSA has also made an informal
long-term financing. Its lenders, led request for information on the firm’s
by RBS, did not respond to requests disclosure of its financial problems to
for comment yesterday. the stock market.
Sir Roy Gardner, the firm’s chair- Shares closed up 13 per cent at
man, said: “We are delighted by this 35.1p yesterday.
The Capitalist
10 CITYA.M. 30 JULY 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

NEW METRO “If our Metro


man has his
BANK LURES facts straight
about the
IN CANDY Candys’
BROTHERS involvement,
he’s gone and
OFF to the preview party for Metro Bank’s
new Holborn store on Wednesday evening, let the cat out
where anyone who was anyone gathered ing at the likes of the Royal Albert Hall.
to drink champagne under the gaudy red- of the bag” Guests at the bash yesterday could be
and-blue rafters and gush about the won- heard guffawing loudly at a printed
ders of sugar-coated customer service. poster on the wall (see above), showing
Attendees included Meredith Whitney, Ames in all the leather-jacketed, big-
the glamorous US banking analyst; Jamie haired glory of his singing days.
Reuben, son of property magnate David;
US investor Wilbur Ross – bizarrely Christian (l) and Nick Candy are sweet on the Metro Bank idea Pictures: REX, Victoria Bates/City A.M.
enough, since he has already invested in
Metro’s start-up rival Virgin Money; and final deal has been struck, though he cial display, where he was subjected to
BLUE ISThe
THE COLOUR
lessons from the recent
Nick Candy, one half of the smooth-talk- admitted the brothers have been mulling loop-the-loops and other aerobatic trick- financial crisis are clearly
ing sibling property duo. taking a stake in the bank for a while. ery from a proper front-row seat. filtering down to bank
Actually, The Capitalist was rather Watch this space. bosses. The latest in a long
intrigued to see Candy show up at the line of firms to crack
event, and quickly got to talking to one of BIRTHDAY BOY down on inappropriate or
the most senior members of Metro’s man-
agement team about the property
AIRBORNE DEVIL Many happy returns to Les Ames, incriminating email communica-
The Capitalist didn’t have Icap boss Michael the head of dealing over at WH tions is the mighty Goldman Sachs
mogul’s connection to the bank’s founder Spencer down as an adrenaline junkie, Ireland, who celebrated his big itself, according to the Wall Street
Vernon Hill. but it looks like he can be a true daredevil 6–0 yesterday at the Hatchet Journal.
“Why, the Candys have already taken a in his spare time. pub on Garlick Hill. City chums Apparently, the recent order banning
stake in Metro,” came the innocent reply. Spencer was at the Farnborough Air packed the boozer to pay their the use of expletives on email was passed
“I think it was around the same time as Show last week, where the Blades – an air respects to Ames, who started out in the down from on high verbally – to
the Reuben brothers invested, actually…” acrobatics troupe like the Red Arrows – Square Mile at the tender age of 18. avoid any embarrassing leaks,
Now that, if our Metro man has his were opening the show. As something of Mind you, he did have a spell of respite natch – and will be enforced via a
facts straight, is what’s known as letting an aeroplane fanatic, the former Tory in the middle of those four decades, special screening system.
the cat out of the bag. Candy himself party treasurer jumped at the chance to spending a few years as a professional There’ll be no more exchanges about
refused to comment on whether or not a go up with a Blades pilot after their offi- singer, starring in musicals and perform- “shitty deals”, then…
CITYA.M. 30 JULY 2010 News 11

Sanofi-Aventis promises more


takeovers after upbeat results
exceeded forecasts, thanks to tight- as vaccine sales declined.


PHARMACEUTICALS
BY MARION DAKERS ened spending and demand for its Sanofi last week cut its 2010 earn-
diabetes drugs, growth in emerging ings per share forecast to between sta-
FRENCH pharmaceutical firm Sanofi markets and a weaker euro. ble and four per cent lower.
-Aventis pledged discipline in pursu- Business net income rose 7.6 per Meanwhile, Sanofi’s board autho-
ing growth through acquisitions yes- cent to €2.48bn (£2.08bn). Earnings rised a takeover bid of up to $18.7bn
terday, as the drugmaker posted per share climbed eight per cent to (£12bn) for rival Genzyme.
better-than-expected results and €1.90, ahead of predictions of €1.78. The firm refused to comment, but
remained tight-lipped on its expected Sales increased 4.6 per cent to said it hopes to match last year’s
bid for US biotech company €7.78bn even as competition grew record 33 acquisitions. An initial
Genzyme. from generic copies of blood thinner approach is expected by the end of
Sanofi’s second-quarter earnings Plavix and cancer drug Eloxatin, and the week.
ANALYSIS l AstraZeneca
3,300 p
3,289.00
3,200 29 Jul
3,100

3,000

2,900

2,800

2,700
10 May 28 May 18 Jun 8 Jul 28 Jul
AstraZeneca boss David Brennan saw sales and profits rise at the drug company

AstraZeneca
profits rise
cheaper, generic competitors to its

PHARMACEUTICALS
BY MARION DAKERS blood pressure, asthma and prostate
cancer drugs flooded the market.
ASTRAZENECA, the UK’s second- Turnover in emerging markets rose
largest drugs company, doubled its 16 per cent, as the firm shifts its focus
2010 share buyback plan to $2bn to non-US customers.
(£1.3bn) yesterday after posting strong David Brennan, chief executive,
results and clearing several regulato- told analysts yesterday: “Our emerg-
ry hurdles in the US. ing market business is a significant
Pre-tax profit in the second quarter proportion of our growth, due to the
rose to $6.4bn (£4.1bn) from $5.6bn in success of products that are a bit
the same period a year ago, on sales more mature in the developed mar-
up three per cent at $8.18bn, the firm kets.”
said in its quarterly update. Brennan added: “In many emerg-
The company upped its earnings ing markets, some products have
per share forecast for the full-year by already lost exclusivity, but of some
30 cents to $6.65. markets are planning to give more
Sales of cholesterol drug Crestor exclusivity to new products.”
were particularly strong, rising by a AstraZeneca said it will double its
quarter compared with a year earlier. planned share buyback programme,
Last month the firm won a three-year after scrapping an earlier attempt in
legal battle in the US to protect the 2008. The buyback will mean higher
drug’s patent until 2016. earnings per share and should cush-
The company also said it won ion the firm from future stock mar-
approval in the US for its patent on a ket volatility.
potential money-spinner heart drug The firm also announced that Dr
Brilinta on Wednesday, giving the Bruce Burlington will join the board
firm a chance to recoup losses pre- as a non-executive director from 1
dicted as several other patents expire. August.
US revenues have already declined Shares closed three per cent up at
four per cent in the second quarter as £32.97 yesterday.

stock market as it attempts to con-


centrate the value of existing stock.
BARCLAYS BANK Barclays was heavily involved in
AstraZeneca’s bid to buy back shares
in 2008, which was halted due to
market volatility during the credit
crunch but is now going full pelt again.
The banking group has also advised
British American Tobacco on its repur-
ASTRAZENECA employs a slew of chase of two per cent of its total
banks to advise on its global finances, shares in 2007, and helped Marston
but Barclays has taken the lion’s share Hotels bring 45 per cent of publicly
on the firm’s share buyback pro- traded shares back into the family-run
gramme. business for £30m. The latest
The bank has plenty of experience AstraZeneca buyback move, on 29
with such deals, having bought back June, left around 1.4bn shares in the
almost a billion of its own shares marketplace. At yesterday’s prices,
between 1995 and 1997. It continues this values the publicly traded portion
to periodically pick off shares from the of the pharmaceuticals giant at £46bn.
12 Economic News CITYA.M. 30 JULY 2010

US jobless claims in
Properties are now
selling for less.

Picture:
Micha Theiner

a surprise tumble
/City A.M.

part, thanks to fewer layoffs at car


WORLD ECONOMY
plants in Michigan and New York.
NEW claims for US unemployment While unemployment levels remain
benefits fell unexpectedly last week stubbornly high, claims are substan-
to 457,000, down 2.4 per cent from tially down from this time last year,
the previous week, the Labor when they hit 578,000.
Department said. But according to the figures, some
Jobless claims fell by 11,000 in the 4,565,000 Americans still asked for
week ending 24 July, down substan- government aid to get by in the week
tially from the 464,000 level expected ending 17 July, up 81,000 versus the
by analysts. previous week, according to seasonal-
The jobless figures were lower, in ly adjusted statistics.

House price
fall fuels fear
of double-dip
ing prices may be in store.”

PROPERTY
BY JESSICA MEAD Tight credit conditions have ham-
pered the property market since the
FEARS of a sustained double-dip in start of the financial crisis and the
Britain’s property market intensified latest figures from the Bank of
yesterday after mortgage lender England show little sign of a substan-
Nationwide reported that house tial easing in lending.
prices fell this month for the first The Bank of England reported that
time since February and the Bank of mortgage approvals dropped from
England revealed that mortgage 49,500 to 47,600 in June, only slightly
approvals dropped to a four-month above the average during the reces-
low in June. sion. Net mortgage lending totalled
The latest figures from Nationwide just £0.7bn on the month, one of the
showed that house prices fell by 0.5 lowest outturns in the series’ history.
per cent in July, echoing the falls in “Weak mortgage lending, as indi-
the Halifax index over the past three cated by today’s data, could go some
months. The decline cut the annual way to explaining the weakness we
rate of house price inflation to 6.6 per have seen in the housing market in
cent from 8.7 per cent and the aver- recent months,” said Varun Bhabha at
age price of a house to £169,347. Barclays Capital.
Martin Gahbauer, chief economist Lucian Cook, director of Savills resi-
at Nationwide, said: “A combination dential research, said: “This evidence
of restrictive credit conditions and all raises the question of price falls in
uncertainty about the future eco- the second half of the year and seems
nomic outlook continues to limit the to have drawn some of the house
pool of buyers to those with relatively price doomsters back out of the wood-
large financial resources.” work. Our view is that house prices
But he warned: “It will take several will fall over the next six to nine
more months to establish whether months but the extent of those falls is
house prices are now simply oscillat- likely to be capped by the fact that,
ing around a flat price trend or for those able to access the market,
whether a period of downward trend- mortgage affordability is high.”

NEWS | IN BRIEF
Retailers recruit more staff January, taking the three-month annu-
High street retailers employed 22,000 alised rate down to six per cent in June
more staff between April and June com- from 8.9 per cent in May. “It’s evident
pared to the same period a year earlier, a that the ongoing fall in bank lending to
new employment monitor from the firms is being influenced significantly by
British Retail Consortium will show low corporate demand for credit in addi-
today. The increase in employment was tion to restricted supply,” said Howard
driven by a three per cent net annual Archer at IHS Global Insight.
increase in the number of stores in the
second quarter. Retailers’ employment Consumer confidence falls again
intentions are generally positive with 58 Consumer confidence fell for the fifth
per cent intending to maintain staffing successive month in July, according to
levels over the next quarter and a third the latest barometer from GfK NOP pub-
planning to increase their staff count. lished today. The overall consumer confi-
dence index dropped three points to -22
M4 lending slows in June with falls in consumers’ expectations for
THE flow of money to non-financial com- their personal finances over the next
panies – a gauge of the effectiveness of year, the current general economic situa-
the Bank of England’s £200bn asset pur- tion and the economy over the next 12
chase programme – slowed markedly in months. But the major purchase index
June. M4, excluding intermediate other rose by eight points, perhaps because of
financial corporations, rose by just 0.2 the looming VAT hike, said Nick Moon,
per cent on the month, the lowest since director of GfK NOP Social Research.
CITYA.M. 30 JULY 2010 News 13

Rolls Royce to
BAE Systems Net profit Sales Order book raise dividend
£618m s9% £43.6bn after profit rise
stays bullish six months to June
£10.64
to
bn
down from
£44.3bn
despite cuts
ENGINEERING

s
from
ENGINE and turbine maker Rolls-
£9.76bn Royce reported a stronger than
expected 4.5 per cent rise in first half
profit yesterday, and said a tight lid
on costs had allowed it to raise full-
year forecasts and dividend pay-
ments.
s

ENGINEERING and Asian governments at last week’s The British behemoth posted an
BY MARION DAKERS Farnborough airshow. underlying first-half pre-tax profit of
BAE signed a £500m deal with £465m, up from £445m a year ago.
BAE SYSTEMS remains bullish in the India last Wednesday to supply 57 Revenues climbed 14.7 per cent to
face of looming government spend- Hawk jets, which came as part of £10.4bn and its order book hit a
ing cuts, after posting a 14 per cent Prime Minister David Cameron’s dele- record £58.3bn.
rise in first-half earnings yesterday to gation to the country. However, its The world’s second-largest maker
swing back into profit. order book now stood at £43.6bn, of aircraft engines increased the final
The firm’s chief executive Ian King down £700m on last year. dividend payment by five per cent to
said: “The group anticipates a chal- Europe’s largest arms firm posted 9p a share but said it expected the
lenging trading environment as gov- underlying earnings of £1.11bn, on short-term trading environment to
ernments look for cost savings to sales nine per cent higher at remain difficult in civil aerospace.
address budgetary pressures and £10.64bn, for the six months to the Chief executive Sir John Rose said:
enhance value for money,” but added end of June. “Rolls-Royce has delivered a solid set
he expects growth during 2010. The firm cut of results despite difficult trading
The company was looking to ANALYSIS l BAE Systems conditions. This demonstrates the
expand in emerging markets to com-
pensate for defence spending cuts in
the UK and US, which make up 70 per
360

350
320.30
70% 3,300 resilience of our business.”
He added: “Our record order book,
the breadth of the portfolio across all
cent of total sales. King said: “If you
look at Brazil, it’s a big economic
340
29 July of sales come from jobs in the last six four sectors, our strong balance sheet
and the early action we have taken to
powerhouse and it’s looking to spend 330
UK and US markets months as part of a reduce costs will enable us to manage
money on defence. In terms of
defence spending I would say that it’s
320
cost-cutting drive short-term difficulties and deliver
long-term growth.” Rolls-Royce said it
310
got to be top of the list.” expected to double its sales over the
He said BAE saw unprecedented lev- next decade, driven by new projects
19 May 9 Jun 29 Jun 19 Jul
els of interest from Middle Eastern such as Boeing’s Dreamliner.
14 Consumer News CITYA.M. 30 JULY 2010

Rank profit up
PartyGaming TGI FRIDAY’S IN BUYOUT DEAL

as bingo makes
and Bwin set a comeback

to join forces
CONSUMER


BRITISH bingo hall and casino opera-
tor Rank Group reported an increase
in first-half pre-tax profit yesterday as
its Grosvenor Casinos and Mecca
Bingo halls attracted more cus-
tomers.
The company, which operates 35

LEISURE executive Jim Ryan said.“It’s tough to casinos and 103 bingo halls in Britain,
BY JOHN DUNNE quantify it until we actually see the made a pre-tax profit of £25.1m com-
form of legislation, but there was a pared with £24.7m the year before.
BRITAIN’S PartyGaming and Austria’s very positive step made,” he added. Overall customer numbers
bwin unveiled a deal yesterday to cre- Under the terms of the deal, classi- increased by 11.9 per cent to more
ate a £2.1bn online gaming business, fied as a reverse takeover of bwin by than 2.5m during the period, with
positioning them to profit from any PartyGaming under UK rules, bwin average spend per visit rising by 1.5
forthcoming deregulation in the shareholders will get 12.23 new per cent to £22.48p.
lucrative US market. PartyGaming shares for each bwin Shares rose up to nine per cent,
The deal to create the world’s share, giving them 51.6 per cent of before closing yesterday 7.1 per cent
biggest listed online gaming company the new company. The new group higher at 117p, as the group revealed
could kickstart a flurry of M&A activ- will be listed on the London Stock that its Grosvenor Casinos division
ity in a fragmented sector that is seen Exchange and jointly run by the chief had drawn in more than one million
as ripe for consolidation because of executives of the companies. customers for the first time.
opportunities created by the relax- The group has stepped up spend-
ation of gambling laws around the
ANALYSIS l PartyGaming ing to support growth plans with
320 p
world, according to analysts. £50m in capital investment ear-
Moves in the United States to over- marked for this year. Chief executive
turn 2007 legislation that effectively 309.50 Ian Burke said: “All of our businesses
280 29 Jul
outlawed the industry gained have achieved growth in revenue as a
momentum when the House result of increased numbers of cus-
Financial Services Committee voted tomers and customer visits.”
to approve a bill which would legalise 240 RESTAURANT chain TGI Friday’s is poised for UK expansion after hospitality group Rank said it would pay an interim
and regulate Internet gambling in Carlson bought out its British partner for £60m. Carlson, which already operates TGI in dividend of 0.74p per share, having
the country. the US and across the globe, bought the 60 per stake it did not already own from private not paid one at this stage last year
“We’re very excited about the US 200 equity group AAC Capital Partners. Carlson said it is investing $100m (£63.9m) in the because of tough trading conditions,
10 May 28 May 18 Jun 8 Jul 28 Jul
opportunity,” PartyGaming chief UK business. Picture: REX in the economic downturn.

Menton [Côte d’Azur]

James Bond movies filmed here ........................... 1


Mégane ................................................ 21

CAN A CAR CHANGE A TOWN? TheMeganeExperiment.com


Data source: James Bond film – Internet Movie Database www.imdb.com. The official
250 are: Urban 24.6 (11.5), Extra Urban 42.2 (6.7), Combined 33.6 (8.4). The offi
CITYA.M. 30 JULY 2010 News 15

Metro Bank
Metro Bank was set
up by chairman
Anthony Thomson,
pictured, and US
banking grandee
Vernon Hill

arrives on the Picture:


Micha Theiner
/City A.M.

UK high street CITY VIEWS: DO YOU THINK NEW START-UP BANKS HAVE A CHANCE OF
customer toilets, no-commission SHAKING UP THE HIGH STREET? Interviews by Emma Sadowski

BANKING
BY VICTORIA BATES change machines and a much-vaunt-
ed plan to allow dogs to come with
THE WORLD and his dog queued up
outside Metro Bank’s first branch in
their owners into the stores.
The bank also claims to allow peo-
ANDREW FRANCIS | MUNICH RE
Holborn yesterday morning for the ple to open accounts in as little as 15
opening of the UK’s first high street minutes, printing debit and credit “The new start-ups are not likely to take major market share, but they probably will see an
bank for over a century. cards in-store which are ready to use
Metro, which freely admits it will as soon as the customer walks out of increase in customers who will move for customer service reasons because the big banks are
not offer the best rates for savers, is the door. lacking in that area. I doubt people will move because the start-ups have better rates.”
counting on a dedicated customer However, analysts yesterday
service and convenience-based remained sceptical on whether the
approach to lure consumers into its bank’s touchy-feely approach to cus- CAROLYN BEGG | HISCOX
stores. tomer service would be enough to
If the strategy goes to plan – as it convince level-headed customers to
did over the past three decades with make the move over from their cur- “Generally people will stay with the big banks because they are much more secure than the
billionaire founder Vernon Hill’s rent bank, particularly given Metro’s
Commerce Bank venture, now one of uncompetitive savings rates.
smaller start-ups. At the end of the day, people will remain loyal to a bank if they’ve used it for
the biggest retail banks in the US – Metro plans to open four stores in a number of years because they’ve built up interest.”
the bank is aiming for an ambitious London before the end of the year,
target of between five and 10 per cent with a further eight to come in 2011.
of the UK retail banking market with- “People’s lives have changed, great RICHARD HAYWARD | MITSUI SUMITOMO INSURANCE GROUP
in the next decade. retailers have moved with them and
First, it will attempt to break the banking should reflect that,” said
London market by offering branch chief executive Craig Donaldson. “A lot of people are disillusioned with the high street banks after the credit crunch, especially
banking services seven days a week He added: “Metro Bank is going to because overdraft fees are so ridiculous. But I also think that people can’t be bothered to
from early in the morning until late, change the face of UK banking for
as well as personalised touches like good.” switch to a start-up bank.”

Gisburn [Lancashire]

James Bond movies filmed here ........................... 0


Mégane ................................................. 0

fuel consumption figures in mpg (l/100km) for the Mégane Coupé Renaultsport
cial CO2 emission figure is 195g/km.
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CITYA.M. 30 JULY 2010 News 17

Collins Stewart’s profits climb Henderson loses appeal


group’s wealth management arm, Iceland on its banking restructure.
against Patrick Evershed

FINANCIAL SERVICES
which acquired two smaller rivals, But the group’s market-related
BY VICTORIA BATES Corazon and Andersen Charnley, over activities suffered as investors fled on
FINANCIAL services group Collins the period. Assets under manage- concerns over a double dip recession. entitled to potentially unlimited


FUND MANAGEMENT
Stewart continues to tread with cau- ment grew to £6.8bn at the end of the damages from New Star’s new owner
tion in tricky market conditions, six months, more than a third higher ANALYSIS l Collins Stewart PATRICK Evershed, the ex-New Star Henderson when the case eventually
despite receiving a boost over the first than at the end of the same period in 95 p fund manager who is suing the firm’s goes before an employment tribunal.
half of the year from its wealth man- 2009 and a significant step towards 90 74.00 founder John Duffield for unfair dis- Evershed claims to have been
agement and corporate finance divi- the group’s target of £10bn of assets 29 Jul missal, yesterday triumphed in the unfairly ousted from New Star after
sions. under management by 2012. 85 Court of Appeal over his former reporting Duffield for staff bullying
Collins Stewart said yesterday that Revenue at the asset management employer, who had argued that the to the firm’s head of HR. The case was
80
pre-tax profit for the six months to division rose 2.7 per cent to £22.6m case should not fall under whistle- first brought in October 2008.
June rose 6.6 per cent to £6.5m, on over the period. Hawkpoint – Collins 75 blowing laws. Henderson said yesterday it would
revenues which inched up to £96.1m Stewart’s corporate advisory business Lord Justice Rimer upheld a previ- vigorously defend itself at a tribunal.
from £95.3m in the first half of 2009. – grew its revenue by a third to 70 ous court decision to grant Evershed Duffield, who also formerly found-
Chief executive Mark Brown said £16.7m, boosted by a number of high- 65
the right to sue under the whistle- ed Jupiter, has since set up a new ven-
he was pleased with progress at the profile mandates, including advising 19 May 28 May 18 Jun 8 Jul 28 Jul blowing act, meaning he could be ture, Brompton Asset Management.

Tchenguiz
Carmakers in brothers
slow lane as lose appeal
US sales drag


LEGAL
PROTECTION previously afforded to
thousands of people in divorce pro-
ceedings has been removed following
a landmark Court of Appeal judge-
emerging markets overall, and a bit ment.

AUTOMOTIVE
more moderate growth in mature Until now a husband or wife who
BY HARRY BANKS
markets,” he said. “This is still a very came across information showing
A STRONG crop of results from car- volatile market out there and we are their partner was hiding money
makers Nissan, Hyundai and cautious.” could copy it, use it and put it before
Volkswagen yesterday failed to dispel German industrial group Man the courts.
fears of slowing demand from major returned to profitability in its core Vivian Imerman with former wife Lisa But the court reversed the princi-
markets such as China and the US. European truck operations in the sec- Tchenguiz (above) and property tycoons ple, intended to help the financially
A patchy recovery in the US is a big ond quarter as promised and forecast Robert (left) and Vincent Tchenguiz below. weak, as part of a bitter multimillion-
industry concern, in particular for a significant increase in group order Pictures: Alan Davidson, pound divorce battle involving Lisa
Japanese carmakers, which rely heavi- intake for the full year. Micha Theiner/City A.M. Tchenguiz, sister of property tycoons
ly on that market for profits. Man was the latest in a string of Robert and Vincent Tchenguiz, and
And in Europe carmakers cheered truckmakers to sound an optimistic her former husband Vivian Imerman,
by signs that underlying demand was note, showing that the sector is getting who once owned Del Monte Foods.
coming back as scrapping schemes back on its feet after demand for new The judgement ruled that the
ground to a halt are now fearful that trucks halved virtually overnight financial information downloaded
austerity measures including tax hikes when the global economic slowdown from Imerman’s computer in secret
in many markets will slow down the struck. Industry leader Daimler Trucks by the Tchenguiz brothers to help
recovery. has raised its operating profit forecast their sister’s divorce proceedings was
Volkswagen, Europe’s largest car- twice this year, while Sweden’s Scania taken unlawfully and should be hand-
maker, said it was confident it would posted a record operating margin of 17 ed back to him.
improve sales and margins in the full per cent. “This is a victorious day for Mr
year, but warned the strong growth it Nissan reported its strongest quar- Imerman. His documents should not
saw in the first half “would not contin- terly operating profit in more than have been taken,” said his lawyer,
ue undiminished”. two years as sales surged, but it left its Renato Labi of Hughes Fowler
Also in Germany, automotive parts cautious guidance unchanged amid Carruthers.
supplier Continental reiterated its con- an increasingly murky outlook for Carruthers added: “This is a land-
fident outlook after a strong first half. demand. South Korea’ s top automak- mark ruling because it overturns
Andre Lacroix, chief executive of er, Hyundai, beat forecasts but warned decades of practice in the family
multinational car dealer Inchcape, global car demand will likely ease in courts which have encouraged spous-
echoed the uncertainty. “We are see- the second half due to a slowdown in es to secretly obtain, copy and use the
ing an uneven global recovery: very key markets like China, Europe and other’s documents in divorce pro-
strong recovery in Asia-Pacific and the US. ceedings.”

Profits surge at CME as chief executive Repsol closer to listing its


rules out another wave of consolidation Brazilian upstream assets
derivatives through exchanges and change in thinking for CME, which lic offering its assets on their own.

FINANCIAL MARKETS

ENERGY
BY HARRY BANKS clearinghouses. has bought two large exchanges – the “Our initial idea is to go to the mar-
Although Donohue was quiet on Chicago Board of Trade and the New SPAIN’S Repsol is close to choosing to ket with Petrobras but in any case we
DERIVATIVES giant CME yesterday when exactly it will begin clearing York Mercantile Exchange – since 2007. float part of its reserve-rich Brazilian plan to IPO by the last quarter of this
posted higher-than-expected quarterly over-the-counter swaps – seen as key to With those companies now fully inte- upstream assets rather than sell a year,” said chief operating officer
profit as heightened volatility in debt the company’s growth – he said there grated, CME will no longer be the driv- stake to finance development of the Miguel Martinez.
and stock markets boosted trading in was no need to catapult expansion er of consolidation it once was. oilfields, a company executive said yes- Repsol estimates its Brazilian
the exchange operator’s futures con- with a big takeover. “We have a very The strong second-quarter results terday. acreage will provide it with over 170m
tracts. bullish view of our growth opportuni- came as trading in CME contracts hit a The company, one of the largest out- barrels of oil equivalent in proven
Chief executive Craig Donohue also ty organically in our core business,” he record in May, helped by the stock side investors in Latin America, could reserves in five years. The group thinks
said that a recent trading slump will said. “We do not foresee the need for market “flash crash” and by swings in join forces with Brazil state-run oil a 40 per cent capital increase at its
not spur it into a buying spree. CME additional large-scale M&A transac- interest rate expectations as Europe’s group Petrobras – the operator of business in Brazil followed by an IPO
stands to benefit from sweeping US tions to drive growth.” escalating debt crisis prompted fears many fields where it is present – but is would be enough to fund its five-year,
rule changes that will drive far more Donohue’s comments mark a of a global economic slowdown. also prepared to arrange an initial pub- $5-6bn development plan for the area.
18 Technology and Media News CITYA.M. 30 JULY 2010

Siemens swings back to black Smartphone sales push


TECHNOLOGY gramme of swingeing cost cuts which from lightbulbs to fast trains, said it
Motorola above forecasts

have stripped €1.2bn from its expen- saw a recovery across its businesses,
BY STEVE DINNEEN diture. The euro’s recent weakness particularly those more sensitive to
THE German economy breathed a against key currencies, which makes cyclical or economic swings. TELECOMS growth, affirmed its previous annual


sigh of relief after bellweather busi- Siemens’ exports cheaper to pay for target.
ness Siemens stormed back in to the in foreign currencies, also helped ANALYSIS l Siemens MOTOROLA posted stronger-than- The stronger-than-expected results,
black with a 40 per cent hike in oper- boost results. € expected quarterly results yesterday, including a six-fold increase in profit,
74.42
ating profit. The last time Europe’s number one 78 29 July boosting its shares despite frustration helped lift shares of Motorola. The
The jump to €2.3bn (£1.92bn) beat engineering conglomerate posted an it did not raise its phone sales target. company is selling its network equip-
76
even the most optimistic forecasts. In increase in both new orders and sales Investors had hoped the popularity ment business this year and plans to
another positive sign, new orders also was in the quarter to the end of 74 of Motorola’s Droid X, its latest phone split the rest of the company in two
shot up, prompting the firm to September 2008. 72 being championed by Verizon next year.
increase its profit guidance for the Chief executive Peter Loescher said: 70
Wireless, would result in a new, high- In the second quarter, it posted a
second time in 12 months. “We see solid growth across all parts er forecast for 2010 smartphone sales. profit of $162m (£104m), up from
The results, which broke a streak of of our businesses, and particularly 68 Instead, Motorola, which is count- $26m the year before. Motorola
nearly two years of declining sales, strong growth in emerging markets.” ing on sales of smartphones based on shipped 8.3m phones in the quarter
were flattered by a two year pro- Siemens, which makes everything 17 May 7 Jun 28 Jun 19 Jul Google’s Android software for including 2.7m smartphones.

Reuters profit BEST OF THE BROKERS


ANALYSIS l Easyjet
480 p
395.10
29 Jul
ANALYSIS l Centrica
320 p
306.70
29 Jul
ANALYSIS l Ferrovial
6.50

6.65
29 Jul

drops 8pc as
460 310
6.00
440 300

420 290 5.50

400 280
5

contracts cut
380 270

360 260
10 May 28 May 18 Jun 8 Jul 28 Jul 10 May 28 May 18 Jun 8 Jul 28 Jul 17 May 31 May 14 Jun 28 Jul

EASYJET CENTRICA FERROVIAL


easyJet revealed strong revenue trends for JP Morgan Cazenove gives the utility group Citigroup said that Ferrovial-owned BAA
the same quarter a year earlier. the third quarter, according to Royal Bank an “overweight” rating and raises its target reported encouraging first half numbers,
MEDIA

Revenue from the division was up of Scotland (RBS), which said it was, how- price to 390p from 385p, noting that its despite the closure of Heathrow and
BY STEVE DINNEEN interim results were 10 per cent ahead of Stansted for five days in April due to the
from the first quarter. ever, lower than expected. Profit guidance
THOMSON Reuters saw its quarterly Revenue rose two per cent in the was unchanged as the volcano impact was consensus forecasts. Calculates potential volcanic ash cloud and the 34 days of
profit slide eight per cent despite professional division, which sells confirmed at the top of the range. RBS reit- 28 per cent upside from the current share British Airways cabin crew strikes. Citi
arresting its free-falling revenue. databases and other information
Underlying operating profit fell 17 reservoirs to lawyers, accountants, erates its “hold” rating, noting operational price. Believes Centrica’s valuation is “unde- gives Ferrovial a “buy” recommendation on
per cent to $655m (£419m) as the scientists and healthcare workers. instability is leading to incremental costs. manding” at 12.1 times price to earnings. the back of BAA’s numbers.
firm struggled to bounce back from The Reuters news agency business
the hammering it suffered in the reported a three per cent fall in rev-
wake of the financial meltdown. enue, but net sales turned positive To appear in Best of the Brokers email your research to notes@cityam.com
The firm was hit by a glut of can- after it won a contract with Time

Cost cuts at Trinity Mirror start to pay


celled contracts as businesses Warner’s CNN cable news network.
stripped back their spending. Thomson Reuters said sales of
Adjusted earnings per share fell to WestlawNext, a new version of the
47 cents from 58 cents a year earlier. company’s Westlaw deep informa-

off as advertising begins to pick up


Revenue from ongoing businesses tion database for lawyers, were well
fell two per cent to $3.22bn but the ahead of expectations, with about
firm expects to see a return to rev- 5,700 customers buying the product
enue growth in the third quarter. since launch in February.
Chief executive Thomas Glocer
said: “Net sales have been positive for ANALYSIS l Thomson Reuters
$
the firm as a whole for three quar- 38.68 MEDIA recruitment and property sales to £25m from £20m and said it had

ters, and increasingly positive 40 29 July remained weak. achieved £15m of this in the first half.
toward the end of the second quar- 39.50 NEWSPAPER publisher Trinity Mirror Trinity Mirror said national adver- The company is cutting about 200
ter.” 39 reported a leap in first-half profits tising would be flat in July, with jobs at its newspapers.
He added: “Sales have been 38.5 driven by cost cuts and helped by regionals’ revenue dropping nine per Earlier this year, Trinity Mirror
encouraging enough that we think 38 improving advertising trends. cent, but said the general trend was took the first step in consolidating
we actually will turn positive before 37.50 The publisher of the Daily Mirror positive. Britain’s regional newspapers, which
the fourth quarter.” 37 said national advertising revenue Total revenue for the six months have all been devastated by a loss of
The firm’s markets division, 36.50 picked up by 2.2 per cent in the first was flat at £382.2m. Operating profit classified advertising revenue, by buy-
which serves the financial industry, half but advertising at its regional rose 25.7 per cent to £61.7m. ing Guardian Media Group’s local
saw revenue fell four per cent from 19 May 9 Jun 29 Jun 19 Jul newspapers fell eight per cent as It raised its 2010 cost-savings target newspapers.

Reed Elsevier returns to growth in a Interpublic sees rebound


sign firms are loosening purse strings as the economy improves
MEDIA this year but not last. as legal activity slowed and operat- MEDIA Erickson, rose 9.7 per cent to $1.62bn,

BY STEVE DINNEEN Underlying revenue for the six ing profit fell 14 per cent as it contin- beating estimates of $1.51bn.
months rose one per cent to £2.99bn. ued to invest to regain market share INTERPUBLIC, the world’s fourth Chief executive Michael Roth
PUBLISHING and events group Reed Adjusted operating profit fell three lost to Thomson Reuters’ Westlaw. largest advertising company, yester- attributed the revenue growth to
Elsevier beat first half forecasts as per cent at constant currencies to The company said science and day posted a larger-than-expected rise improved business from both existing
underlying revenues returned to £758m. medical journal subscription in quarterly revenue, amid signs that and new clients across many of its
growth after a torrid few years. Scientific and academic publish- renewals were as expected, while the the ad industry is poised for a agencies.
The positive results were lifted by ing division Elsevier, which account- academic budget environment was rebound. “With revenue stability and growth
a stabilisation in advertising and ed for 42 per cent of the company’s difficult. The company said net income rose back in the picture, we feel we are
promotions. adjusted operating profit, reported Informa and Euromoney have also to $105.3m (£67.4m), or 15 cents a very much on track to deliver on our
The firm’s exhibitions business – two per cent revenue growth and a reported improving trends for trade share, from $20.9m, or four cents a operating margin objective of better
the world’s largest – grew nine per four per cent increase in profit. fairs in the last week as companies share, a year earlier. than eight per cent for 2010,” he said.
cent after benefitting from a series Reed said revenues were flat in its begin to loosen travel and sponsor- Revenue for Interpublic, parent to Shares of Interpublic jumped 7.3
of biennial shows that took place LexisNexis legal publishing business ship budgets. well-known agencies like McCann- per cent to $8.85 yesterday.
CITYA.M. 30 JULY 2010 News 19

Saint-Gobain sees profits rise Colgate disappoints as its


at the end of June. get for the year to €1.4bn, from the
revenue misses forecasts

INDUSTRIALS
The company, whose glass panels €1bn previously expected.
BY HARRY BANKS were used to build the Louvre Shares in Saint-Gobain, of which
FRANCE’S Saint-Gobain, the world’s Pyramid and London’s Gherkin tower, financial holding company Wendel is exchange, acquisitions and divesti-


CONSUMER GOODS
largest building materials group, reported a 4.3 per cent rise in sales to the largest holder with a 17.5 per cent tures, increased 3.5 per cent.
posted a rise in first-half sales and €19.53bn in the first six months of stake at the end of 2009, closed up 0.5 COLGATE-PALMOLIVE posted weaker- That was far below the consensus
operating profit, helped by the the year, as the construction sector in per cent before the statement was than expected second-quarter sales seven per cent gain expected and the
strength of the construction sector in Asia continued to be strong. released. and said it would take a bigger hit company’s implied six to eight per
emerging markets, especially Asia. “The economic environment is than expected from Venezuela’s cur- cent guidance.
Operating profit rose 55.4 per cent globally improving,” chairman and FAST FACTS | SAINT-GOBAIN rency devaluation. Volume of goods sold was up three
and the group raised its 2010 cash- chief executive officer Pierre-Andre Colgate’s net income in the sec- per cent and global pricing rose 0.5
flow target. de Chalendar said. He said the group ● France’s Saint-Gobain is the world’s largest ond quarter rose to $603m (£386.6m), per cent.
St Gobain confirmed its target for a would seek small acquisitions in building materials group. from $562m a year earlier. The company also said the full-year
strong rise in operating profit this emerging countries in the energy ● Glass panels, made by Saint-Gobain, were Sales rose two per cent to $3.81bn, hit of a currency devaluation in
year and said operating profit would efficiency sector in the second half. used to build the Louvre Pyramid in Paris and below the $3.94bn analysts had Venezuela would be 10 to 15 cents a
be slightly higher in the second half The results prompted the group to the Gherkin tower in London. expected. share, up from its previous estimate
than the €1.45bn (£1.21bn) reported raise its free cashflow generation tar- Organic sales, excluding foreign of six to 10 cents.

Raytheon is
Kazakhmys is DR PEPPER LOSES SUMMER FIZZ

hit by a key
on track with contract loss
firm demand


DEFENCE
DEFENCE contractor Raytheon
reported lower net income yesterday
and cut its full-year sales and profit
forecasts, citing a termination notice
now “probably some upside” to on a UK border security programme.

MINING
Kazakhmys’ full-year copper produc- Net income at the New York-listed
BY OLIVER SHAH
tion estimate. “We are very bullish on firm came to $208m (£133m), or 55
CENTRAL Asian miner Kazakhmys the outlook for copper prices so it cents a diluted share, in the second
said copper production was ahead of should stand to be an obvious benefit quarter, compared with $489m, or
target yesterday and reassured of that,” Cliff added. $1.23 a share, a year earlier.
investors customer demand Overall ore production was up The missile maker said the termi-
remained firm, batting away fears of slightly in the six months to June nation notice by the UK Border
a cooling in the Chinese economy. from 16m tonnes last year to 16.2m Agency cut profit by 71 cents a share.
Shares in Kazakhmys rose 1.9 per tonnes. The average grade of copper It said it was required to recognise the
cent to £12.20 after the FTSE 100 com- slipped from 1.19 per cent to 1.14 per potential financial effect of the termi-
pany said output of copper ore – cent due to a decline in grade at two nation notice in the second period,
which accounts for the bulk of its rev- mines in eastern Kazakhstan and a and added it intends to pursue collec-
enues – stood at 164,300 tonnes in the decline in the Zhezkazgan region. tion of unbilled receivables and dam-
first half. The number was down Zinc production fell 5.9 per cent to ages. The latest results also included
from 170,100 tonnes year-on-year but 80,900 tonnes. Silver output was pension expense of nine cents a
ahead of expectations. down 26.8 per cent to 6.7m ounces share. Adjusted for items, profit came
Chief executive Oleg Novachuk while gold output dropped 8.3 per to $1.27 a share, compared with $1.19
said: “Mining, processing and smelt- cent to 67,100 ounces. a share expected by analysts.
ing have all met or exceeded targets The UK government ended the con-
and we remain on track for our antic- ANALYSIS l Kazakhmys tract under which Raytheon provided
ipated annual production of at least 1,500 p technology to carry out security
300,000 of copper cathode.” 1,400
1,220.00 checks on travellers earlier this
Novachuk implicitly addressed con- 29 Jul month. Sales fell two per cent to
cerns that a slowing demand for raw 1,300 about $6bn, compared with $6.43bn
materials from China would affect expected by analysts. The UK pro-
orders and ore prices, adding: 1,200 gramme termination cut quarterly
“Customer demand remains firm for 1,100 DR PEPPER SNAPPLE Group posted lower-than-expected quarterly revenue yesterday as sales by $316m. Raytheon said it now
our metals and our objective will be sales of higher-priced drinks ebbed when retailers like Wal-Mart cut prices on soda in the expects full-year earnings from con-
to maintain our operational consis- 1,000 key summer selling season. The US firm, led by chief executive Larry Young (inset), said tinuing operations in the range of
tency in the second half.” second quarter net income was $183m (£117m) up from $157m a year ago. Sales, at the $4.00 a share to $4.15 a share, down
900
Paul Cliff at Nomura said there was 10 May 28 May 18 Jun 8 Jul 28 Jul firm which also makes Sunkist and 7UP, rose 2.6 per cent to $1.52bn. from its prior view of $4.75 to $4.90.

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

in the regulator’s Solvency II depart- PricewaterhouseCoopers, Investec, years as an investment analyst at


RBC Wealth Management ment. While there, he also worked on a Williams de Broe and HSBC. Mercer, where he advised trustees of
The wealth manager has promoted Philip number of domestic prudential policy He takes up his new position in UK pension schemes. He spent the first
Harris to the position of head of private client initiatives, including the development of September and will work alongside part of his career as an associate actu-
wealth management for the British Isles. the Individual Capital Adequacy fund manager Paul Marriage on arial consultant at Aon Consulting.
Harris has been at the firm since early last Standards regime. Cazenove’s Absolute UK Dynamic fund,
year, when he joined to create a domestic Prior to joining the FSA, he worked UK Dynamic Absolute Return fund and Eversheds
wealth management business. He previously at Royal & Sun Alliance and Aviva. the UK Smaller Companies fund. The law firm has appointed partner
founded financial advisory business Scott Richard Moulton to lead its private
Goodman Harris, which was sold in 2004 to Cazenove Capital SEI equity practice.
UBS, where he moved up the ranks to lead the The investment manager has appointed The fiduciary management provider has Moulton has over 15 years of experi-
UK domestic high net worth business. John Warren, a small and mid-cap sell- expanded its institutional advice team ence in the private equity sector and
side specialist, as a fund manager on its with the appointment of Cyprian has been at Eversheds since 2003,
UK equity team. Njamma as an asset and liability ana- working with clients such as ECI
KPMG accountancy firm KPMG, as a director Warren was formerly director of UK lyst. Partners, Inflexion, CBPE Capital,
Paul Brenchley has moved over from in its insurance risk team. mid and small-cap sales at UBS, and Njamma is a fellow of the Institute of Gresham and Baird Capital Partners
the Financial Services Authority to Brenchley was previously a manager has also held positions at Actuaries and previously spent three Europe.

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Markets&Investment
20 CITYA.M. 30 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 . . . . . . . . . . . . . . . . . . . . . . . .290.30 +0.30 314.80 246.90 COLT Group . . . . . . . . . . . . . . . .131.90 –0.30 144.20 106.75 Investec . . . . . . . . . . . . . . . . . . .507.00* +5.00 565.00 378.20 Sainsbury(J) . . . . . . . . . . . . . . . .345.20 –0.50 373.00 307.60
3i Infrastructure . . . . . . . . . . . . . 112.00 +0.80 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .535.00* –7.00 574.50 308.10 ITV . . . . . . . . . . . . . . . . . . . . . . . .53.60 +0.25 71.75 37.00 Schroders . . . . . . . . . . . . . . . . .1286.00 +9.00 1450.00 923.00
A.B. Foods . . . . . . . . . . . . . . . .1028.00 –16.00 1096.00 777.00 Cookson . . . . . . . . . . . . . . . . . . .458.00 +2.00 616.00 292.50 Jardine Lloyd Thompson. . . . . . .585.50 –4.00 604.50 420.70 Schroders N/V. . . . . . . . . . . . . .1068.00 +7.00 1185.00 783.00
Aberdeen Asset Man . . . . . . . . . .142.00 +2.50 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1307.00 +40.00 1323.00 541.00 Johnson Matthey . . . . . . . . . . .1704.00* –3.00 1814.00 1302.00 Scot. & Sthrn Energy. . . . . . . . . 1117.00* +2.00 1206.00 357.50
Admiral. . . . . . . . . . . . . . . . . . .1463.00 –10.00 1519.00 938.00 CSR . . . . . . . . . . . . . . . . . . . . . .357.00 +1.50 524.00 338.75 Kazakhmys . . . . . . . . . . . . . . . .1220.00 +23.00 1634.00 768.00 Scottish Mortgage. . . . . . . . . . . .603.50 +1.50 623.50 424.25
Aegis . . . . . . . . . . . . . . . . . . . . . 119.50 +2.50 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .494.70 +8.90 539.00 290.00 Kesa Electricals . . . . . . . . . . . . .128.50 –0.80 162.00 98.45
Afren . . . . . . . . . . . . . . . . . . . . . .91.25 –1.35 111.00 51.75 Dana Petroleum . . . . . . . . . . . .1710.00 –6.00 1728.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .218.70 –2.30 255.00 196.50 SEGRO . . . . . . . . . . . . . . . . . . . .287.20 +3.60 403.10 244.00
African Barr Gold . . . . . . . . . . . .533.50 –9.50 685.00 520.50 Davis Service . . . . . . . . . . . . . . .379.90 +3.40 442.30 323.25 Ladbrokes . . . . . . . . . . . . . . . . .138.70 +1.70 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .556.00 +2.50 656.50 394.30
Aggreko . . . . . . . . . . . . . . . . . .1543.00 +16.00 1639.00 524.50 De La Rue . . . . . . . . . . . . . . . . . .729.00* –1.50 1021.00 727.00 Lancashire Hldgs . . . . . . . . . . . .537.00 –0.50 545.00 416.70 Severn Trent . . . . . . . . . . . . . . .1280.00* –5.00 1310.00 921.00
Alliance Trust . . . . . . . . . . . . . . .319.60* –1.70 352.70 281.00 Debenhams . . . . . . . . . . . . . . . . .64.10 –0.80 91.95 51.95 Land Securities . . . . . . . . . . . . . .622.00* +1.50 743.50 501.00 Shaftesbury . . . . . . . . . . . . . . . .406.00 +4.10 426.50 310.00
AMEC . . . . . . . . . . . . . . . . . . . . .876.50 –3.00 909.50 684.50 Derwent London . . . . . . . . . . . .1369.00 +11.00 1490.00 911.00 Legal & General . . . . . . . . . . . . . .92.10 +0.15 94.70 57.00 Shire. . . . . . . . . . . . . . . . . . . . .1490.00 +21.00 1526.00 850.00
Amlin . . . . . . . . . . . . . . . . . . . . .430.20 +9.20 433.40 326.75 Dexion Absolute . . . . . . . . . . . . .140.00 +1.20 148.00 118.00 Lloyds Banking Gp . . . . . . . . . . . .68.91 –0.44 75.58 45.30 Smith & Nephew . . . . . . . . . . . . .551.00 +3.50 700.50 458.60
Anglo American . . . . . . . . . . . .2541.00 +1.50 3015.50 1777.50 Diageo . . . . . . . . . . . . . . . . . . . 1104.00 –8.00 1176.00 900.50 Logica . . . . . . . . . . . . . . . . . . . .107.10 +5.10 149.10 85.50 Smith(Ds) . . . . . . . . . . . . . . . . . .146.70 +4.70 150.20 70.00
Antofagasta . . . . . . . . . . . . . . . .997.50 +3.50 1100.00 676.00 Dimension Data . . . . . . . . . . . . .123.90 +0.30 125.50 55.00 London Stk Exchange . . . . . . . . .658.00* –3.00 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1118.00 –3.00 1186.00 715.00
Aquarius Platinum . . . . . . . . . . .276.40 –8.10 490.00 211.50 Domino’s Pizza . . . . . . . . . . . . . .414.80* –3.00 431.30 228.40 Lonmin . . . . . . . . . . . . . . . . . . .1580.00 +21.00 2198.00 1214.00 SOCO Intl . . . . . . . . . . . . . . . . . .425.80 –2.20 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .331.80 –3.70 370.00 120.50 Drax . . . . . . . . . . . . . . . . . . . . . .388.50 +4.90 496.50 321.50 Man . . . . . . . . . . . . . . . . . . . . . .223.40 –1.10 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .893.00 +2.50 949.00 545.00
Arriva . . . . . . . . . . . . . . . . . . . . .770.50 — 782.50 415.50 DSG Intl . . . . . . . . . . . . . . . . . . . .27.87 +0.26 39.75 23.25 Marks & Spencer. . . . . . . . . . . . .351.20 –1.20 412.70 321.90 Spirax-Sarco Eng . . . . . . . . . . .1561.00 –19.00 1617.00 893.50
Ashmore . . . . . . . . . . . . . . . . . . .285.40 –5.10 311.20 195.00 Dunelm . . . . . . . . . . . . . . . . . . . .380.40 –4.90 438.40 250.70 Meggitt . . . . . . . . . . . . . . . . . . . .305.10 –2.80 331.00 168.50
Astrazeneca . . . . . . . . . . . . . . .3289.00 +86.50 3376.00 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .396.00 –7.60 499.90 281.25 Melrose . . . . . . . . . . . . . . . . . . .230.30 –1.00 251.50 111.50 Spirent Comms . . . . . . . . . . . . . .128.50 –1.50 135.90 65.25
Atkins(Ws) . . . . . . . . . . . . . . . . .729.50 — 760.50 532.50 Edinburgh Inv Tst . . . . . . . . . . . .398.50* +1.30 412.40 313.50 Mercantile IT . . . . . . . . . . . . . . . .972.00* +13.50 1002.00 781.00 Sports Direct Intl . . . . . . . . . . . . . 112.50 –1.50 134.00 81.80
Autonomy Corp . . . . . . . . . . . .1658.00 +8.00 2012.00 1161.00 Electrocomponents . . . . . . . . . . .225.40 +0.50 245.00 142.90 Michael Page Intl. . . . . . . . . . . . .393.20 –0.70 461.50 274.00 SSL Intl . . . . . . . . . . . . . . . . . . . 1180.00 — 1190.00 522.50
Aveva . . . . . . . . . . . . . . . . . . . .1353.00* –3.00 1371.00 755.00 EnQuest . . . . . . . . . . . . . . . . . . .120.90 +1.90 121.40 87.35 Micro Focus . . . . . . . . . . . . . . . .414.20 –10.80 550.00 300.90 St James’s Place . . . . . . . . . . . . .279.90 +6.60 296.90 172.25
Aviva . . . . . . . . . . . . . . . . . . . . .365.90 +7.10 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .428.90 –4.90 475.90 358.50 Millen & Copthorne . . . . . . . . . . .481.80 +11.60 504.00 250.00 Stagecoach. . . . . . . . . . . . . . . . .174.50 –2.80 204.90 126.20
Babcock International . . . . . . . . .557.50 +6.00 660.50 459.80 Eurasian Nat Res . . . . . . . . . . . .900.50 –10.50 1276.00 731.00 Misys . . . . . . . . . . . . . . . . . . . . .255.70 +0.70 281.70 171.75 Standard Chartered . . . . . . . . . .1861.00 –8.00 1927.00 1310.00
BAE Systems . . . . . . . . . . . . . . .320.10 +3.10 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .598.00 +1.00 630.00 223.50 Mitchells & Butlers . . . . . . . . . . .313.10 –0.70 343.90 228.30 Standard Life . . . . . . . . . . . . . . .204.40 +2.10 237.00 170.00
Balfour Beatty . . . . . . . . . . . . . . .252.30 +0.20 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .635.00 +1.00 664.50 475.75 MITIE . . . . . . . . . . . . . . . . . . . . .210.50* +1.30 281.70 195.20 SuperGrp . . . . . . . . . . . . . . . . . .979.00 –9.00 1030.00 499.00
Barclays . . . . . . . . . . . . . . . . . . .334.10 –5.00 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .90.85* –0.15 96.80 75.50 Mondi . . . . . . . . . . . . . . . . . . . . .447.40 +1.20 488.00 238.75 TalkTalk . . . . . . . . . . . . . . . . . . .123.30 +1.30 147.10 106.60
Barratt Development . . . . . . . . . . .98.10 +0.55 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .289.50 +4.10 396.20 138.00 Monks Inv Tst . . . . . . . . . . . . . . .295.00* +2.20 321.20 238.75 Talvivaara Mining . . . . . . . . . . . . 411.50 +5.50 501.50 341.40
BBA Aviation . . . . . . . . . . . . . . .197.10 +2.10 220.00 123.50 FirstGroup . . . . . . . . . . . . . . . . .375.90* +1.80 448.80 322.75 Morrison Wm . . . . . . . . . . . . . . .269.20 –1.30 306.30 255.00 Tate & Lyle . . . . . . . . . . . . . . . . .452.70* –3.20 509.00 336.50
Beazley. . . . . . . . . . . . . . . . . . . .120.00 +1.00 125.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .274.60 –0.30 297.20 229.50 Murray Intl Tst . . . . . . . . . . . . . . .863.50* +17.50 893.50 632.00 Taylor Wimpey . . . . . . . . . . . . . . .27.21 +0.20 54.90 24.29
Bellway. . . . . . . . . . . . . . . . . . . .588.00 +8.50 927.50 554.00 Fresnillo . . . . . . . . . . . . . . . . . .1029.00 –5.00 1139.00 539.50 National Express. . . . . . . . . . . . .236.80 –6.10 258.60 155.86
Berkeley . . . . . . . . . . . . . . . . . . .820.00 +4.00 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .259.40 –0.10 285.70 208.50 National Grid . . . . . . . . . . . . . . .510.50* –2.50 607.65 474.80 Telecity . . . . . . . . . . . . . . . . . . . .439.80 +6.30 458.90 300.00
BG . . . . . . . . . . . . . . . . . . . . . .1013.00 –26.50 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .472.10 +4.10 484.00 370.00 Next . . . . . . . . . . . . . . . . . . . . .2161.00 –5.00 2360.00 1601.00 Templeton Emrg Mkts . . . . . . . . .553.00* +4.50 598.00 390.00
BHP Billiton . . . . . . . . . . . . . . .1977.50 –14.00 2346.00 1481.00 GKN . . . . . . . . . . . . . . . . . . . . . .138.80 –1.10 155.00 90.00 Northumbrian Water . . . . . . . . . .329.90 +0.30 333.20 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .398.25 +2.25 454.90 361.20
BlackRock Mining . . . . . . . . . . . .570.00 –8.00 654.50 412.00 GlaxoSmithKline . . . . . . . . . . . . 1121.50* –13.00 1347.00 1088.00 Old Mutual . . . . . . . . . . . . . . . . .122.90 +1.00 127.20 85.80 Thomas Cook . . . . . . . . . . . . . . .186.80 +0.80 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .43.58 –0.28 49.50 33.00 Great Portland Estates . . . . . . . .308.00 +4.70 332.10 221.50 Pace . . . . . . . . . . . . . . . . . . . . . .210.80 +1.80 243.80 145.00 Tomkins . . . . . . . . . . . . . . . . . . .324.70 +1.10 325.50 155.00
BP . . . . . . . . . . . . . . . . . . . . . . .413.45 +10.95 658.20 296.00 Greene King . . . . . . . . . . . . . . . .444.90 +2.10 504.00 372.50 Partygaming . . . . . . . . . . . . . . . .309.50 +52.50 339.70 205.80 Travis Perkins . . . . . . . . . . . . . . .859.00 +29.00 915.00 647.50
Brit Insurance . . . . . . . . . . . . . . .997.00 –8.00 1017.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .486.20* –0.80 562.50 324.00 Pearson . . . . . . . . . . . . . . . . . .1012.00 +12.00 1069.00 667.50 TUI Travel . . . . . . . . . . . . . . . . . .214.80 +3.20 313.90 202.30
British Airways . . . . . . . . . . . . . .216.00 –4.00 255.80 127.50 Halma . . . . . . . . . . . . . . . . . . . . .278.00* +3.00 298.70 184.25 Pennon . . . . . . . . . . . . . . . . . . . .577.50 — 587.50 434.40 Tullett Prebon . . . . . . . . . . . . . . .344.20 –0.80 436.20 261.20
British Amer. Tob . . . . . . . . . . .2197.00 –45.50 2335.50 1807.00 Hammerson . . . . . . . . . . . . . . . .389.90 +2.10 460.30 325.50 Persimmon . . . . . . . . . . . . . . . . .361.30 +5.10 534.50 340.20 Tullow Oil . . . . . . . . . . . . . . . . .1252.00 –33.00 1375.00 970.00
British Empire Tst . . . . . . . . . . . .439.90 +2.60 467.90 338.50 Hargreaves Lansdown . . . . . . . .364.90 +4.30 387.00 211.00 Petrofac . . . . . . . . . . . . . . . . . .1273.00 –14.00 1372.00 730.00 UK Commercial Prop. . . . . . . . . . .77.00* +0.90 84.90 62.25
British Land . . . . . . . . . . . . . . . .466.90* –2.80 532.00 409.00 Hays . . . . . . . . . . . . . . . . . . . . . . .91.25 –0.05 119.00 87.25 Petropavlovsk . . . . . . . . . . . . . .1010.00 –29.00 1370.00 601.00 Ultra Electronics . . . . . . . . . . . .1618.00 +30.00 1681.00 1094.00
Britvic. . . . . . . . . . . . . . . . . . . . .480.20 –2.50 518.00 323.25 Henderson . . . . . . . . . . . . . . . . .132.00 +1.30 157.80 101.25 Premier Farnell . . . . . . . . . . . . . .238.50 +0.80 252.60 138.75 Unilever . . . . . . . . . . . . . . . . . .1821.00 –44.00 2024.00 1524.00
Brown(N.) . . . . . . . . . . . . . . . . . .227.20* –7.30 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .414.40 +0.40 587.00 368.70 Premier Oil . . . . . . . . . . . . . . . .1496.00 –9.00 1610.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . . 711.00 –9.00 732.00 516.50 Hikma Pharma . . . . . . . . . . . . . .720.00 –4.00 746.00 430.00 Provident Financial . . . . . . . . . . .815.00 –4.50 986.00 792.50 United Utilities . . . . . . . . . . . . . .560.50* –1.50 575.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .144.80 +4.90 151.00 108.40 Hiscox . . . . . . . . . . . . . . . . . . . .357.00 +8.10 369.30 299.20 Prudential . . . . . . . . . . . . . . . . . .561.00 +9.50 665.00 426.00 Utd Business Media . . . . . . . . . .573.00 +24.00 579.50 366.00
Bunzl . . . . . . . . . . . . . . . . . . . . .703.50 –1.50 784.50 514.00 Hochschild Mining . . . . . . . . . . .293.80 –6.20 370.60 220.00 PZ Cussons . . . . . . . . . . . . . . . .350.10 –1.10 373.20 210.10 Vedanta Resources . . . . . . . . . .2479.00* –45.00 2967.00 1616.00
Burberry . . . . . . . . . . . . . . . . . . .848.00* +1.50 886.50 436.00 Home Retail . . . . . . . . . . . . . . . .239.60 –0.20 336.50 208.50 Qinetiq . . . . . . . . . . . . . . . . . . . .124.90 –1.80 179.10 113.90 Victrex . . . . . . . . . . . . . . . . . . .1212.00 –2.00 1245.00 613.50
Cable & Wire Comms . . . . . . . . . .61.00* +0.75 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2301.00* –4.00 2376.00 1336.00 Randgold Resources. . . . . . . . .5665.00 –25.00 6600.00 3351.00 Vodafone . . . . . . . . . . . . . . . . . .150.50* +2.25 153.80 118.55
Cable & Wire Wwide . . . . . . . . . . .67.80* –0.65 94.80 64.85 HSBC Hldgs . . . . . . . . . . . . . . . .656.30 –7.00 766.80 564.70 Reckitt Benckiser . . . . . . . . . . .3181.00 –49.00 3667.00 2686.00 Weir . . . . . . . . . . . . . . . . . . . . . 1188.00 –3.00 1266.00 524.50
Cairn Energy. . . . . . . . . . . . . . . .468.80 –0.10 485.30 306.80 Hunting . . . . . . . . . . . . . . . . . . .534.50 –4.00 659.50 395.75 Reed Elsevier . . . . . . . . . . . . . . .552.00 +20.00 566.00 403.75 Wetherspoon(J.D.) . . . . . . . . . . .435.00 –0.20 556.00 378.70
Caledonia Invs . . . . . . . . . . . . .1621.00 +25.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . .408.00* –3.60 478.30 291.70 Regus . . . . . . . . . . . . . . . . . . . . . .76.50 +0.25 125.50 67.50 WH Smith . . . . . . . . . . . . . . . . . .421.10 –4.20 551.00 396.00
Capita . . . . . . . . . . . . . . . . . . . . .727.50 –3.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .479.80 +3.70 492.20 291.00 Rentokil Initial . . . . . . . . . . . . . . .107.30 +3.90 140.20 87.25 Whitbread . . . . . . . . . . . . . . . . .1439.00 +1.00 1645.00 827.50
Capital & Counties . . . . . . . . . . . 111.50 –0.30 125.40 99.60 Imagination Tech Gp . . . . . . . . . .330.00 –10.00 345.60 149.75 Rexam . . . . . . . . . . . . . . . . . . . .316.50 –11.10 348.80 222.50 William Hill . . . . . . . . . . . . . . . . .173.30 +4.00 217.80 160.50
Capital Shopping Centres . . . . . .349.00 +0.20 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .718.00 –11.00 786.00 315.50 Rightmove . . . . . . . . . . . . . . . . .665.00 –1.50 729.00 398.75 Witan Inv Tst . . . . . . . . . . . . . . . .450.30 +4.30 487.00 357.50
Carillion . . . . . . . . . . . . . . . . . . .305.50 –2.90 361.90 246.25 Imperial Tobacco. . . . . . . . . . . .1813.00* –14.00 2159.00 1625.00 Rio Tinto . . . . . . . . . . . . . . . . . .3355.00 –32.50 4104.00 2205.00
Carnival . . . . . . . . . . . . . . . . . .2306.00 –15.00 2937.00 1649.00 Inchcape. . . . . . . . . . . . . . . . . . .321.70 +8.20 347.00 235.00 RIT Capital Partners . . . . . . . . . 1169.00 +11.00 1215.00 910.50 Wolseley . . . . . . . . . . . . . . . . . .1453.00 +1.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .382.40 +0.10 394.60 303.20 Informa . . . . . . . . . . . . . . . . . . . .406.60 +13.50 439.40 225.00 Rolls Royce . . . . . . . . . . . . . . . .585.50 –2.00 631.50 368.00 Wood Group (John). . . . . . . . . . .363.70 –1.20 411.70 261.50
Centamin Egypt . . . . . . . . . . . . .151.30 –2.00 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .747.00 –9.50 831.00 491.00 Rotork . . . . . . . . . . . . . . . . . . .1494.00 +98.00 1504.00 869.00 WPP . . . . . . . . . . . . . . . . . . . . . .686.00 +10.50 744.00 440.00
Centrica . . . . . . . . . . . . . . . . . . .306.70 +2.70 320.00 215.50 Intercontl Hotels . . . . . . . . . . . . 1107.00 –1.00 1244.00 632.50 Royal Bank Of Scot . . . . . . . . . . . .49.96 +0.23 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . .1032.00 –12.50 1344.50 713.00
Charter Intl . . . . . . . . . . . . . . . . .758.50 +8.00 855.50 488.25 Intermediate Capital . . . . . . . . . .272.00* +1.80 332.00 172.00 Royal Dutch Shell A . . . . . . . . .1783.50 –3.50 2068.50 1521.50 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2934.00* –8.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1602.00 –2.00 1745.00 1024.00 Royal Dutch Shell B . . . . . . . . .1713.00 +6.00 1997.50 1505.00
Chloride Group . . . . . . . . . . . . . .373.80* +0.70 390.50 132.50 Intl Personal Fin . . . . . . . . . . . . .235.90 +2.70 283.00 127.00 RSA Insurance . . . . . . . . . . . . . .128.30 +0.50 142.00 114.10 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .683.50 +1.00 806.50 660.00 Intl Power . . . . . . . . . . . . . . . . . .360.10 +1.70 375.90 243.00 SABMiller . . . . . . . . . . . . . . . . .1926.50 +15.50 2090.00 1307.00
Cobham . . . . . . . . . . . . . . . . . . .237.80 +0.60 278.60 173.60 Invensys . . . . . . . . . . . . . . . . . . .271.60* –7.50 350.30 234.50 Sage . . . . . . . . . . . . . . . . . . . . . .239.90 –3.60 260.50 191.00 www.interactivedata.com

Bumper UK earnings fail to lift Downbeat outlook


FTSE as bank sell-off weighs for tech hits Wall St
“It’s now a question of getting the ding 1.5 per cent, while HSBC fell 1.1 12.87 points, or 0.57 per cent, to
THELONDON corporate results season out of the
way and making sure there aren't any
per cent.
Rexam was the standout blue-chip THENEW YORK 2,251.69.
Friday’s GDP number is widely

REPORT more nasties on the economic front


because obviously still in the back-
ground are concerns about the
decliner, shedding 3.4 per cent after
Credit Suisse cut its rating following
the firm’s first-half results.
REPORT expected to show US economic
growth slowed in the second quarter
as some investors fret about the possi-
strength of the global economic Negative broker sentiment also bility of a double-dip recession.

B U
RITAIN’S top shares closed recovery.” weighed on British American S stocks sagged in volatile Nvidia fell 9.9 percent to $9.13, and
easier yesterday as a retreat BAE Systems, Europe’s largest Tobacco, off two per cent after trading yesterday after weak Symantec dropped 11.2 percent to
from banks and investor cau- defence contractor, climbed one per Morgan Stanley cut its rating on the outlooks from technology $13.03.
tion ahead of US growth data cent after it reported a 14 per cent cigarette maker after it’s results. companies and downbeat Exxon Mobil, the S&P’s largest com-
offset a batch of robust UK corporate rise in first-half earnings and said it “After an initial early lift from comments from a Federal Reserve pany by market capitalization, fell 0.9
earnings from companies including expected to deliver growth in the full some positive blue-chip earnings official gave investors little reason to percent to $60.34 after reporting a
AstraZeneca. year. updates, it has turned out to be some- buy. better-than-expected quarterly profit.
The FTSE 100 closed down 5.73 BT added 3.5 per cent as the tele- thing of a lacklustre day in the end,” The market has struggled to make Consumer staples also fell, with the
points, or 0.1 per cent, at 5,313.95, coms provider said it did not expect said David Jones, chief market strate- headway this week. The S&P 500 fell S&P consumer staple index down 1.1
after it ended 0.9 per cent lower on to be overly damaged by looming gist at IG Index. for a third straight day. per cent after Kellogg lowered its out-
Wednesday. British spending cuts and repeated its Earlier in the session, investors wel- Friday’s Commerce Department look and Colgate-Palmolive posted
AstraZeneca advanced 2.7 per cent full-year outlook. comed a drop in US weekly jobless report on second-quarter gross weaker-than-expected sales.
after the drugmaker doubled its 2010 And Vodafone rose 1.5 per cent as claims. Initial claims for state unem- domestic product will be another Through yesterday morning, 60 per
share buyback programme, posted talk turned to plans for an initial pub- ployment insurance dropped by marker for the strength of the recov- cent of companies in the S&P 500
strong results and won an endorse- lic offering by the Indian telecoms 11,000. ery. have reported quarterly earnings,
ment from a US advisory panel for its venture between the British mobile The PHLX Semiconductor Index with 75 per cent of companies beat-
potential blockbuster heart drug telecoms provider and Essar Group. ANALYSIS l FTSE bounced off a session low near its 200- ing expectations and 35.1 per cent
Brilinta. Essar said plans are at an initial stage. 5,800 day moving average, watched by year-over-year earnings growth.
5,313.95
Reed Elsevier also notched up good Energy stocks were mixed, with 29 July investors to determine market move- About 8.45 billion shares traded on
5,600
gains, adding 3.8 per cent, after the Royal Dutch Shell reversing gains to ment. The index was still down 1.9 the New York Stock Exchange, the
publishing and events group said end 0.2 per cent lower in the wake of 5,400 per cent but was up six per cent for American Stock Exchange and
underlying revenues returned to its second-quarter results. July. Nasdaq, short of last year's estimated
5,200
growth in the first half, beating Banks were out of favour, retreat- The Dow Jones industrial average daily average of 9.65 billion.
expectations. ing after an advance earlier in the ses- 5,000 dropped 30.72 points, or 0.29 per Advancing stocks outnumbered
“(UK) corporate earnings generally sion and following recent strong cent, to 10,467.16. The Standard & declining ones on the NYSE by a ratio
speaking have been fairly pleasing,” gains on relief after Europe’s recent 4,800 Poor’s 500 Index dropped 4.59 points, of about 9 to 8, while on the Nasdaq,
said Richard Hunter, head of UK equi- stress tests. 4,600 or 0.41 per cent, to 1,101.54. The about nine stocks fell for every eight
ties at Hargreaves Lansdown. Barclays was the worst off, shed- 19 May 9 Jun 29 Jun 19 Jul Nasdaq Composite Index dropped that rose.
CITYA.M. 30 JULY 2010 Investment | Personal Finance 21

Ensure your
money is safe
from inflation Don’t get caught
Savers should look to equity income funds out in a storm
Picture: GETTY
to beat price pressures, writes Jessica Mead

W
HEN the world turns topsy- gilts. But neither offer particularly good
turvy, savers want to stuff returns on short-term fixed rate prod-
their cash under the ucts. For example, the Santander 18-
metaphorical mattress. And month fixed rate bond – one of the most
up until very recently, National Savings generous on offer – requires you to lock
& Investment (NS&I) index-linked sav- up a minimum of £25,000 until
ings certificates, which were linked to February 2012 for an interest rate of 3.25
the RPI, were the product of choice. per cent.
More than £11bn was poured into Even five-year lock-ups won’t offer you
these Treasury-backed certificates over more than 5 per cent – the ICICI five-
the last five years as the tax-free income year fixed rate bond is one of the best
and inflation-beating guarantee attract- around right now but you’ll only get
ed savers. And they didn’t just protect 4.75 per cent and can’t make any addi-
your from inflation – your initial outlay tional deposits during the term.
would be protected in full and the inter- Adrian Lowcock, senior investment
est rate would never slip below 1 per adviser at BestInvest, says: “Savings-wise,
cent. in the short-term you are going to find
But last week the NS&I announced it difficult to protect against inflation
that it had withdrawn these inflation- in the current environment.”
proof products from sale in the wake of But he doesn’t recommend locking
excess demand. This year has seen con- up your money for anything longer
sumer price index (CPI) inflation consis-
tently exceed 3 per cent while the retail
than two years: “The problem is that
you don’t know where rates and infla-
&KUEQXGTVJGDGPGƂVUQHQHHUJQTG
prices index (RPI) touched 5.3 per cent
in April, its highest level in 19 years.
tion will be in two years time.”
Instead, he points to dividend growth DCPMKPIYKVJ*5$%2TGOKGT
So at a time when inflation protec- as a potential inflation-beating source
tion is needed more than ever, where of income. “Equities will benefit from 33°N – Beirut, Lebanon
can savers put their hard-earned rising prices in general and it is proba-
money? Nothing even comes close to bly the most suitable given the uncer-
the NS&I’s index-linked savings certifi- tainty on the economy.”
cates. Lowcock suggests both the Standard We enable expats to manage, grow and protect their wealth and, depending on
Cash ISAs might appear attractive – Life Higher Equity Income fund, man-
interest is received tax-free, you can put aged by Karen Robertson and the circumstances, achieve potential tax savings that offshore banking can bring.
up to £5,100 into them every year and Artemis Income fund, managed by
you don’t have to lock up your money. Adrian Frost and Adrian Gosden. The To save you time, money and hassle we provide:
Thanks to the Financial Services Artemis fund’s historic yield is 4.8 per
Compensation Scheme, capital is also cent. r 5RGEKCNKUVJGNRCPFCFXKEGHTQOCPQHHUJQTG4GNCVKQPUJKR/CPCIGOGPVVGCO
protected up to £50,000. In terms of dividend growth, he rec-
But they don’t protect you from infla- ommends the Henderson Asian r #PCYCTFYKPPKPI +PVGTPGV$CPMKPIUGTXKEGVJCVCNNQYU[QWVQ
tion, especially when interest rates are Dividend Income fund, which yields – Use a single login to access all your eligible worldwide HSBC accounts
so low. Even if you agree to lock up your about 4.1 per cent a year and gives you
money for five years, no cash ISA will exposure to a region which sees divi- – Transfer money between those accounts instantly, free of charge
currently offer you an interest rate that dend growth of about 7 per cent a year.
exceeds the RPI. No product will beat the NS&I certifi- r 2TGHGTGPVKCNTCVGUQPOCP[UCXKPIUCEEQWPVUCPFHQTGKIPGZEJCPIGVTCPUCEVKQPU
In terms of investments, you could cates, but diversifying your income
look at fixed bonds and index-linked stream will give you some protection. r 6JGCDKNKV[VQOCPCIGOQPG[KPWRVQFKHHGTGPVEWTTGPEKGUKPENWFKPIUVGTNKPI
US dollar and euro
PERSONAL FINANCE NEWS r #P+PVGTPCVKQPCN9GCNVJ/CPCIGOGPVUGTXKEGVQJGNR[QWCEJKGXG[QWT
BY JESSICA MEAD NQPIVGTOƂPCPEKCNIQCNU
6QƂPFQWVJQYYGECPJGNRGZRCVUNKMG[QW
STAYCATION IS STILL IN FAVOUR TIED PRODUCTS SURGE IN 2010
Britons are feeling the pinch when it The proportion of mortgages and regular Call +44 1534 616079
comes to holidays with almost 40 per cent savings accounts that are only available for
of us actively trying to spend less money people who have another product with the Visit www.offshore.hsbc.com/am
on our holidays this year. And of those same provider has increased dramatically
looking to cut back, more than half have since the beginning of 2010, discouraging
decided not to go abroad to cut costs. A consumers from shopping around to get
survey by trade body R3 showed that 42 the best deals, research by Which? Money
per cent of Londoners are trying to cut the showed earlier this week. While the prod-
cost of their holiday and, of those, 43 per- uct itself might be a good deal, the product
cent will be holidaying in the UK. it is tied to might actually be very poor
value.
RATE CUT ON CO-OP’S ETHICAL CARD
The Co-operative Bank will be cutting rates LEEDS LAUNCHES CASHBACK MORTGAGE
on its “think” credit card on Monday to Leeds Building Society has this week *Best Consumer Internet Bank, Channel Islands – in the Global Finance Best Internet Banking Awards 2009. HSBC Bank International
reward ethically-minded consumers. The launched a 3 per cent cashback mortgage is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation, Investment and Fund Services
Businesses and licensed by the Guernsey Financial Services Commission for Banking, Collective Investment Schemes and Investment
ethical bank has teamed up with a number which is available throughout the UK. The $WUKPGUU.KEGPUGFD[VJG+UNGQH/CP(KPCPEKCN5WRGTXKUKQP%QOOKUUKQP&GRQUKVUCPFKPXGUVOGPVUOCFGYKVJQWTQHƂEGUKPVJG
of companies such as IKEA, Trainline, maximum loan-to-value available is 80 Channel Islands and the Isle of Man are not protected by the rules made under the UK’s Financial Services and Markets Act 2000 for
Lush, Ecotricity and Raleigh. Interest per cent. There is no higher lending the protection of retail clients, including the UK Financial Services Compensation Scheme and the UK’s Financial Ombudsman
Service. However, HSBC Bank International Limited is a member of the Depositors Compensation Scheme as set out in the Banking
rates will be cut to 0 per cent for charge and an early repayment fee (Depositors Compensation) (Jersey) Regulations 2009. HSBC Bank International Limited is a participant in the Guernsey Banking
three months on purchases made only applies for the first three Deposit Compensation Scheme. The Scheme offers protection for ‘qualifying deposits’ up to £50,000, subject to certain limitations.
6JGOCZKOWOVQVCNCOQWPVQHEQORGPUCVKQPKUECRRGFCVKPCP[ƂXG[GCTRGTKQF&GRQUKVUOCFGYKVJQWTQHƂEGUKPVJG
with selected partners. Balance years. The mortgage is also Isle of Man are protected by the Isle of Man Compensation of Depositors Regulations 2008. For further information on these
transfer rates will be portable, which means you Schemes, please visit the Important Information section on our website www.offshore.hsbc.com/1/2/important-information. Copies
reduced to 3.9 per cent can take the product of latest audited accounts are available on request. Approved for issue in the UK by HSBC Bank plc. To help us to continually improve
our service, and in the interest of security, we may monitor and/or record your communications with us. © HSBC Bank International
per annum from 7 per with you without Limited 2010. All Rights Reserved. MC8313/AC15972/SJ/2206388
cent for six months penalty should you
with no fee. decide to move.
Living
22 CITYA.M. 30 JULY 2010

| London Property

QUEEN MARY’S WEST HAM


GATE VICTORIAN
With the Olympics TOWNHOUSE
causing a ripple Price: £374,995
effect in house This authentic
prices, this develop- Victorian house fea-
ment in south tures hard-wood
Woodford could be floors in its spacious
the ultimate bargain sitting room as well
for buyers. Prices as three bedrooms
start at £197,500 and a fully-fitted
for a one-bedroom modern kitchen with
flat, with access to dark granite coun-
nine acres of land- tertops. It also
scaped gardens and offers a secluded
water features for rear garden, a
residents to roam jacuzzi in one of the
around, all 19 min- bathrooms and
utes from Liverpool beautiful views onto
Street station on the the open spaces of
train. Contact: 020 West Ham Park.
8506 1955, Contact: 020 8534
www.telford- 7788,
homes.plc.uk. www.keatons.com.

Buy now to take LETT ROAD


Price: £235,000
This brand new
Stratford apartment
block offers residents

advantage of the stunning views over


the Olympic park from
its roof terrace.
With five units already
sold, the block could
sell out fast. Contact:

Olympic dream 020 7718 5220,


www.thornsett-
group.com.

Price rises in east London 2005-2010


Buyers are moving east for value in advance Haringey
Waltham Redbridge
of the 2012 games, writes Juliet Samuel Forest 1 E1
Shoreditch
2 E2
Bethnal Green
3 E3
Bow
£225,441 ● £234,960 ● £222,269 ●
14 £345,827 ■ £317,888 ■ £292,805 ■

N
EW data released by Lloyds TSB and Stratford, which contains the Olympic vil- 53% 35% 32%
the Land Registry this week revealed lage, has yet to see significant price rises in 10
that since London won its bid to contrast to the surrounding districts. This 4 9 4 E5
Clapton
5 E6
East Ham
6 E7
Forest Gate
host the 2012 Olympic games, prop- could be because some of the planned £207,805 ● £189,368 ● £203,717 ●
erty prices in east London have climbed an infrastructure improvements have only Hackney 11 £288,720 ■ £203,500 ■ £219,241 ■
average of 26 per cent. This compares to a
22 per cent rise across London with houses
just reached Stratford station, with a lot of
the surrounding area still little more than
ngton 6 39% 7% 8%

in the top-performing district, Homerton, a building site. Now, however, 7 8 7 E8 8 E9 9 E10


jumping by nearly 70 per cent in value. Cunningham says a buzz is building about 13 Newham
Dalston
£218,190 ●
Homerton
£210,119 ●
Leyton
£186,369 ●
With the two-year countdown to the the area: “If you go to Stratford station now, 3 £303,243 ■ £355,522 ■ £209,769 ■
games kicking off this week, buyers look- it’s a beautiful big, glass construction. The 2 12 5 39% 69% 13%
ing to get on the housing ladder, upgrade aim is to integrate the canals and the Tower
their home or just make some extra money industrial history with the modern. You’re Hamlets London City 10 E11 11 E12 12 E13
on the side would be wise to look east for asking people to buy into that vision.” City 1
Airport Leytonstone
£237,187 ●
Manor Park
£206,207 ●
Plaistow
£187,222 ●
deals. Aside from price rises, those whose £297,002 ■ £214,850 ■ £196,426 ■
Of course, not all of the East End’s properties have good connections to 25% 4% 5%
above-average price rises are due to the Olympic facilities stand to rake in rental
13 E15 14 E17 15 SE10
games. But the infrastructure develop- revenues at up to a triple their normal Southwark Stratford Walthamstow Greenwich
ment taking place in the area has jump- rates. Tim Boughton of online rentals serv- 15 £206,211 ● £193,314 ● £234,939 ●
started the market. The Westfield
shopping centre is due to open in
ice HomeAway Holiday-Rentals says:
“We’re already seeing an unusual number
Greenwich £212,217 ■
3%
£224,327 ■
16%
£262,492 ■
12%
Stratford next summer and in the span of of enquiries into 2012, with Greenwich
a few years, East London has seen an top of the list.” And some savvy owners are East London Average
extension of the East London line, an already planning to take advantage of this Bexley
£209,170 ●
expansion of the over-ground network demand. Deola Laniyan works at an adver- eth £262,953 ■
and, for the north-eastern boroughs, the tising agency and intends to stay at a 26%
● Average price July 2005
connection of a high-speed rail link to friend’s while she rents out her property
King’s Cross. There is more to come with for the games: “It’s the perfect chance to Lewisham ■ Average price April 2010
the opening of new cycle superhighways, take advantage of the location, to pay off Olympic site
improvements to London City airport, a some debt and use the money towards my
Jubilee and Victoria line upgrade and even mortgage,” she says. River Habitat’s Julian
the opening of the east London cable car,
which will shuttle people across the river
Jarvis also says that holiday rental
demand is already rising for the summer
NEED TO KNOW | RENTING OUT YOUR OLYMPIC HOME
from the Royal Docks to Greenwich. of 2012.
Developers have been trying to jump on Some owners are even contemplating l The best properties to rent out for the Olympic peri- rental starts.
this bandwagon for years, but not all of renting out their place for the whole year od will be two to three-bedroom properties with excel- l Rental agencies can take a 25 per cent cut of your
them will make it, says Bernadette in the hopes of catching demand from lent transport links to sporting facilities. rental revenues for a short-term let. Try marketing the
Cunningham of Thornsett Homes: “With a those who have to spend the year preparing l With a huge anticipated shortfall in hotel rooms, property yourself by listing on cheaper paid-for adver-
two-year window it’s gotten very tight for for the games (tending the grass or oversee- rental prices are expected to rise nearly threefold dur- tising sites such as www.holiday-rentals.co.uk, where
construction delivery before the Olympics. ing building works, for example). ing the games. fees are £209 for the year.
If developers aren’t ready to start digging All of which means that for London buy- l Aim to provide a professonial service and be sure to l Look beyond the immediate area close to the Olympic
they’re not going to make that deadline.” ers trying to capture returns beyond the take all the same precautions you would take for a long- village: it will also be accessible from Victoria Park and
That means that buyers could benefit from vagaries of the housing market, east term rental: a proper contract (which can be found Greenwich should benefit from hosting the equestrian
constricted supply before the games. London should deliver good value and solid online), a deposit, IDs and take an inventory before the events.
Moreover, as the map on the right shows, returns.
I M E A PA R T M E N T S I N
PR . . .
PR I M E L O C A T I O N S
v i n g o r L o n d o n l e t t i n g
... f o r L o n d o n l i
e
LONDON SE8
Greenwich Creeksid
West Greenwich, many
1, 2 & 3 bedroom apartments in
utes walk to DLR and rail
with River Thames views. Six min
Canary Wharf and under
stations - under 10 minutes to
. Reserve now!
20 minutes to Bank for The City
r 2010.
Ready for move -in from Octobe
urday 10am - 6pm
Sales centre open Monday - Sat
00*
Prices from £240,0
Call: 020 8694 8186

LONDON E18
LONDON E8

Queen Mary’s Gate


minutes
Kinetica 3 bed roo m apa rtm ent s in the heart of South Woodford only 17
the new East London Luxury 1, 2 & landscaped
Hackney five minutes walk from 20 min ute s to Ban k for The City. 24 hour concierge,
1, 2 & 3 bedroom apartments in . from Liverpool Str eet and tion.
lston Junction. Six minutes journey time to Shoreditch for The City d par king and just ten min utes walk from a Central line tube sta
line tube station at Da gardens, secure - 5pm
only ay 10am - 6pm & Sunday 11am
Viewing strictly by appointment centre ope n Mo nda y - Sat urd
Sales
* 00*
Prices from £245,000 Prices from £197,5
Call: 0800 032 0077 Call: 020 8506 1955

(out of hours) 0800 032 0077 telfordhomes.plc.uk


*Prices correct at time of going to press. Photographs depict Queen Mary’s Gate and Kinetica. CGI of Greenwich Creekside.
24 Living | The Knowledge CITYA.M. 30 JULY 2010

FOCUS ON: THORNTON HEATH, SURREY SELLING


Q&A
BY JESSICA MEAD

793 LONDON RD FLORIDA ROAD


Price: From £149,995 Price: £415,000
Taylor Wimpey has Located in the popular Russell Hunt
launched the second Americas estate, this MANAGING DIRECTOR,
phase of its one and two- smart four-bedroom PROPERTY HUNT
bed flats within reach of family home has a large
the train station. There back garden. It is close Dear Russell, I am looking to
are just six two-bed flats
and two one-beds left.
Contact: Taylor Wimpey
to Norbury Park and
several primary schools.
Contact: Haart on
Q. invest in a London property. Is
central London still the best
place to buy?
on 01372 385800, www. 020 8689 0191,

A.
taylorwimpey.co.uk www.haart.co.uk It certainly makes sense to invest in
prime central London property
because at the end of the day it is
all about supply and demand. Yes, you will
pay a high price per square foot but it is all
about the rental yield.
You need to remember that location is
extremely important and that young profes-
sionals are prepared to pay more to be clos-
NEED TO KNOW | AREA INSIGHT er to where they work. This will give you a
much better return in the long term.
TREE TOPS Commuting: Thornton Heath mainline national average, especially for robbery. From a purely long-term point of view,
Price: £2.59m you’ll also get more capital growth – the lat-
This aspirational five- railway station is 25 minutes away est surveys suggest that a lot of central
bed property is in neigh- from Victoria. It is also close to Restaurants and Pubs: French London is still bucking the trend. Places like
bouring Shirley. Set into Norwood Junction, which is on the restaurant Le Cassoulet in nearby Bayswater are good – W2 is a good post-
the hillside, it has exten- newly-opened East London Line and Croydon opened its doors in 2008. code where you can get a bit more for your
sive grounds, a pool and about 23 minutes from Canada Water. The Victoria Cross is a traditional pub money.
far-reaching southerly with plenty of real ale on offer. Kensington & Chelsea and central areas
views. All the rooms are Schools: St James The Great RC just south of the river also offer good invet-
to a high specification. Primary and the David Livingston Parks and Leisure: Within spitting ment opportunities.
Contact: Hamptons on Primary are both strong at Key Stage distance of Crystal Palace FC and

Q.
01883 345255, Dear Russell, we both work in the
2. Old Palace School of John Whitgift Crystal Palace National Sports Centre, City and are looking to buy a fami-
www.hamptons.co.uk is a good independent girls school and which will host some Olympics events ly house. What would you advise?
Whitgift School is good for boys. in 2012. Close to Norbury Park and

A.
Mitcham Common, home to Mitcham When you buy a family home, the
Crime: Generally worse than the Golf Club. property of your dreams is simply
not enough. You also need to
research the schools in the local area and
see which catchment area your prospective
properties lie in.
CURRENT MORTGAGE DEALS BY JESSICA MEAD Source: MoneySupermarket.com For example, a lot of people who work in
the City and have children tend to live in
south London suburbs such as Clapham,
Lender Fixed/Flexible Rate Until Standard Rate APR Maximum Loan Tooting and even Balham. These are well-
(per cent) (per cent) (per cent) to Value (per cent) connected to the City – via the Northern
line – and Canary Wharf. Another area
which is well connected is Blackheath.
NatWest Flexible 2.19 To Aug 2012 4 4 60 The schools tend to be good but bear in
mind that you will pay more for streets
First Direct Flexible 2.29 Term 2.3 2.3 65 which just fall inside the catchment areas of
sought-after schools. Also check the waiting
ING Direct Flexible 2.29 2 years 3.5 3.5 60 lists and find out whether your child has a
Yorkshire BS Flexible 2.39 To Sep 2012 4.99 4.7 75 realistic chance of getting a place at this
school. Make sure that the catchment areas
The Co-operative Bank Flexible 2.49 To Nov 2013 4.24 3.9 75 haven’t recently changed – this can happen
frequently and you may get caught out.
HSBC Fixed 2.69 To Oct 2012 3.94 3.9 60 If you are after space and a garden, then
Balham and Tooting are probably your best
Santander Fixed 2.85 To Sep 2012 4.24 4.2 60 bets in terms of price per square foot.
Market Harborough BS Fixed 2.89 To Jul 2012 5.49 5.1 70 Russell Hunt is managing director of
Property Hunt, a search agent for London
Leeds BS Fixed 3.65 To Jul 2013 5.69 5.5 75 and the Home Counties. www.property-
hunt.co.uk
Yorkshire BS Fixed 3.99 To Sep 2015 4.99 4.8 75

PROPERTY NEWS
BY JESSICA MEAD

HIGH DEMAND TO KEEP FARMLAND PRICES UP WINKWORTH OPENS COUNTRY HOUSE OFFICE BARCELONA MARINA TO BE SUPER YACHT BASE DIVORCE BEHIND 10PC OF PROPERTY SALES
Increased demand for commercial farmland and a con- There’s no shortage of Londoners looking to escape to Plans are afoot to transform Barcelona’s marina into a Divorce is responsible for plenty of things but increased
tinued lack of supply are keeping rural land price high, the peace and quiet of the countryside. And to meet super-yacht base following the marina’s acquisition by property sales? New research from Savills shows that
the latest Rural Land Market Survey from the Royal their demands, estate agency Winkworth has just Salamanca Capital Investments, a Mayfair-based couples untying the knot were responsible for one in 10
Institution of Chartered Surveyors (RICS) will show opened a new country house department specifically to investment advisory business. Salamanca said that sales of properties worth between £500,000 and £1m
today. Over the past six months a net 47 per cent of offer a bespoke service for those moving out of London Marina Port Vell will become home to some of the in the first six months of the year. Greater transaction
estate agents reported a rise rather than a fall in or those selling their country property. The new depart- world’s largest privately owned yachts, with some activity and higher prices in the first half of 2010
demand for commercial farmland. Surveyors expect ment will be based in West London and will serve as a berths catering for vessels of up to 185 metres. It allowed divorces to proceed, said Lucian Cook, director
farmland prices to continue rising over the next year central office for Winkworth’s network of country added that redevelopment of the marina will com- of residential research at Savills. When house prices
with commercial farmland to see the sharpest rises. offices in places such as Bath and Northampton. mence in the autumn and will be complete by mid-2011. rise people typically feel they can afford to divorce.
CITYA.M. 30 JULY 2009 Living | Specialty Properties 25

Grape escapes: OLD LUXTERS


VINEYARD,
HENLEY
Price: £3.5m
A successful, award-

make the vineyard


winning winery and
brewery business
with a lovely farm-
house and cottage,
overlooking the
Hambleden Valley.

dream come true


Contact: Knight
Frank,
01491 844 900.

CHATEAU, GREVE IN
GERS CHINATI,
They’re beautiful and rewarding, but don’t Price: €2.7 TUSCANY
A rare 18th cen- Price: €5.75m
expect to make a fortune, says Zoe Strimpel tury “char- A vineyard of
treuse” with 42 2.7 ha., nearly
ha. of land half of which is

I
’D guess that at some point in your about wine-making for its own sake or including appel- Chianti Classico.
career in the City you’ve sat back and even for a bit of fun on the side.” Picture
daydreamed about a life outdoors, the type of plonk you get in most
lation contrôlée The villa is
working the land, relaxing at sunset European village cafes – and imagine one
grapes. Contact: deeply elegant
on a terrace overlooking your vines and with your label on it. Gascony and luxurious.
sipping the product of your labour. So, given that the Krug estate is not Properties: 0033 Contact: Knight
Vineyard properties are among the about to become available, the prospect of 562625406. Frank on 020
most magical, particularly those in the making a fortune, either in terms of prop- 7629 8171.
well-known grape regions of France and erty appreciation or the business, is far-
Italy. But if you’re thinking of buying a fetched. Having vines does add to a BRITISH VINEYARDS | WINE-GROWING AT HOME
vineyard, first be absolutely sure about property’s sale value, but the cost of car-
what you’re after: a wine business, or a ing for them, either by you or by a hired
lovely property with a few vines on the farmer if it’s not your primary residence, An interesting, very zeitgeisty alternative to buying a Hush Heath, in Kent.
side? is high. If you want to start afresh, replant- vineyard in Chianti is to buy one in...Henley. The UK has The English vineyard market is still small, says Toby
According to Rupert Fawcett, head of ing vines and building a winery is enor- been slowly rising through the ranks of all things oeno- Milbank, of Knight Frank’s country department. But
Knight Frank’s Italian department, most mously expensive – new equipment can logical and is now producing top of the range bubbly because of the improvement in the wine, and the fact
properties offer one or the other. Then cost a small vineyard £1m, and after 15 (some, like Nyetimber, costing more than a bottle of that the UK now has some of the best wine-making
there’s the fact that you’ll probably have years of wear and tear, will not add value Krug), whites and roses. Chapel Down’s Bacchus in Kent technology in the world, there’s more interest in buying
to settle for making table wine even if you to the property. and West Sussex’s Bolney Estate are both fine exam- them. Unlike in Europe, Milbank says that most of the
do have loads of vines. “The types of vine- Therefore many wine-makers send their ples. Even Richard Balfour Lynn, CEO of of the British vineyards he sells are family-run businesses, fully
yards producing really top quality wines harvest off to the local co-op for produc- Alternative Hotel Group, which owns De Vere, produces kitted up as wineries and sometimes breweries too –
barely come to market,” says Fawcett. tion and bottling, then take their share of the award-winning Balfour Brut rose from his vineyard therefore most buyers devote themselves to it full-time.
“Therefore you need to be passionate the result. Not a bad compromise.

793 London Road


Croydon CR7 6AW

Just launched: ‘Phase 2’ – 2 bed, 2 bath apartments


with parking from £179,995
1 bedroom apartments available from £118,995

If 5.6% return NEW F


EO
RELEASOOM
2 BEDR ENTS
(First Time Buyer price*).
That’s just £466.33 per month!*

sounds good APARTM

to you, read on!


Our 2 bedroom, 2 bathroom apartments with parking are
great for investors and tenants alike – and with a 5.6% return,
they just got better.
Sales information centre and Showhome open
But hurry – there are only six 2 bedroom apartments available! Friday – Monday 11am – 6pm, Thursday 12 noon – 7pm

0845 026 5211


*Assumes borrower is aged over 18. Loan of £111,396 over 35 years on a repayment mortgage basis and payment of £466.33 which is a discount variable pay
rate for 2 years of 3.49% followed by lenders standard variable rate of 4.24% with monthly payment of £513.37. Typical APR is 4.3%. A mortgage application
fee of £250 is payable on application and refunded on completion and a lenders arrangement fee of £995 will be added to the loan. All loans subject to
status and valuation. Total amount payable is £214,044.56. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR
taylorwimpey.co.uk/swt
MORTGAGE. Selected plots only. Price correct at time of going to press. Computer Generated Image of 793 London Road.
City Focus
26 CITYA.M. 30 JULY 2010

| Entrepreneurs

ACCOUNTS
The million euro silver lining Q.
I have just started a
new business and want
Q&A
to adopt the best practices for filing
my accounts. Do you have any advice?
A financial spread betting firm
A.
Each private company has to file its
was born out of a sporting loss. accounts at Companies House, the
official government register of UK pri-
vate companies. The deadline is nine months
Kathleen Brooks tells the story. after the company’s financial year-end, so if
that is 31 December, you have to get your
accounts to Companies House no later than 31

T
HE final moments of a sports match Conor Foley, founder September the following year. The key thing is
can be excruciating. Even more so if of WorldSpreads to get the basics right, says Sarah Shillingford,
you placed a heavy bet on one of the a partner in Deloitte’s entrepreneurial business
teams to win. That was what hap- Picture: group. “The first thing to do is to make sure
pened to Conor Foley, an avid rugby fan, Micha Theiner that you file them on time. When you are busy
when he watched New Zealand lose in a /City A.M. running a business, nine months can pass by
shock defeat to France in the quarterfinals very quickly. Penalties for late submission are
of the Rugby World Cup in 1999. modest, but overall, if you have a history of fil-
“I never had exposure to losses like that ing accounts late, it won’t look good.” A bad
before,” says Foley. But that sickening expe- track record could come back to haunt you if
rience, coupled with the dot-com boom, you decide you want to list on a stock
had an even more dramatic effect on his exchange or if you want to attract investors.
life. He quit his job as a head trader at It’s also worth noting that there can be an ele-
Banque Paribas in Dublin, Foley’s home- ment of choice to the GAAP accounting rules,
town, and set up an online spread betting for example the rule for when you book rev-
firm. he sold the sports and Irish side of the busi- Although it’s obvious that Foley’s ambi- enues and the timing of booking revenues.
“I decided that you couldn’t beat the ness for €12m to concentrate purely on tions stretch beyond this (it’s given away in Shillington’s advice is clear: stick to the crowd.
odds, so I jumped to the other side,” says WorldSpreads. Foley held the role of group his razor sharp focus and the plush office “Make sure you benchmark your accounts
Foley. With his brother Michael and anoth- CEO until earlier this month when he also in the City) he isn’t going to adopt the traits with your peers or other companies in your
er partner he set up SportsSpread in Dublin took over the day-to-day running of of a super-charged boss: “I don’t get up sector. You need to make sure that you are
in March 2000, a mere six months after WorldSpreads in London. everyday and go for a run before 6am. I get aligned with the best practice in order to give
New Zealand crashed out of the World Cup. To say that he relishes the role is some- up at 8am, am in my office at 9am and put the best impression.”
The launch cost £250,000 – the trio’s own thing of an understatement: “This is the in a full eight hours, although inevitably,
money – most of which went on the age of financial spread betting. It’s as per- there is something happening to keep you

Q.
website and marketing. But it didn’t fect a product as it gets. There is leverage, back in the evevning. Something like this I would eventually like to list, how
exactly get off to a flying start. “I remember no capital gains tax, low transaction costs has to be a labour of love.” does the accounting process differ
the first day, I don’t think that we got a sin- and you can trade 24 hours a day.” The for listed companies?
gle customer until about 4.30pm.” company has grown from six employees in CV | CONOR FOLEY

A.
A decade ago, the internet was fairly trial 2000, to more than 80 now across 14 loca- All private companies have to use UK
and error. After an aborted online casino, tions. It listed on Aim, the London Stock Age: 43 Life and Times of Denis O’Brien, by Generally Accepted Accounting
Foley hit the jackpot when he launched a Exchange’s small cap exchange, back in Home: London Siobhan Creaton. Principles (GAAP) accounting rules,
financial spread betting platform called 2007. And what about the future? He wants says Shillingford. However, all companies list-
WorldSpreads back in 2003. “I had an eco- to continue building “white label”, rev- Hobbies: Currently training for He is also the founder of the Irish ed on a publicly traded exchange have to use
nomics degree and my background was enue-sharing partnerships – it currently his pilot’s licence in Florida: “the International Business Network the International Financial Reporting
currency trading, so it was what I knew.” has partnerships with Ladbrokes, Victor weather is good there.” (IIBN): “Every successful business Standards (IRFS) when compiling their
Until 2009, the company had two Chandler and 188Bet – and developing the accounts. So any company that is listing
brands: sports and financial, but last year business overseas.
Reading: A Mobile Fortune: The man can network well.” should be familiar with IFRS rules. If you are
planning to list then you will need at least two
years of past accounts that comply with IFRS

Social networking,
accounting rules. It is important to prepare
for this, says Shillingford: “You need to know
what your accounts will look like under IFRS
rules and if there will be any differences
between them and your GAAP accounts.”

is it really worth it?


Getting your financial house in order is imper-
ative before a listing. It’s not just accounts
that you need to consider when you are plan-
ning a listing; you also need to provide extra
financial and non-financial information for
your company prospectus. “You need robust
systems to make sure you can get that infor-
For the best results, Twitter or Facebook must mation, so you’ll need to start planning at least
a year in advance. It will be a painful process
be used strategically, writes Kathleen Brooks if you do it three months before.”

Q.
If I want to attract investors, what
information should I reveal to

L
AST week Facebook, the social net- But does it work for a small company? Companies House?
working site, announced it had sur- Lexi Proud, the founder of online dating

A.
passed the 500m-user mark. So if you website ArrangeMeADate.com, has The only information required by
want to reach half a billion people recently launched a Twitter meme called Companies House is fairly basic finan-
then you should sign up, right? #getbritaincourting. For the last two cial information. You can include more
It’s easy to get swept up in the buzz that weeks, Proud has tweeted dating advice detail, however Shillingford says you must be
surrounds social media, but does all of that throughout the day and, so far, it has been aware that once the information is made pub-
posting and tweeting really have an effect a success. “People have been following us lic you can’t take it private again. “If you want
on a company’s bottom line? on Twitter and then going to our website,” to attract investors, it can be wiser to produce
Perhaps, says Jag Singh from she says. And it has already had an effect on a separate document – coupled with a confi-
MessageSpace, the online political advertis- her bottom line: “Hits on our website have dentiality clause – that includes information
ing website. He says that consumers are risen substantially and since the Twitter about your future strategy or
more demanding these days and social net- campaign was launched we’ve seen a 12 revenue projec-
working is a good way to cater to these per cent increase in membership.” tions.” Make
demands. “There is lots of interest in how But to get these results you have to sure you comply
companies are run behind the scenes – make sure it is worth your followers’ mak- with Companies
how a product gets made – and social ing the effort and visiting your website. For House rules,
media is a great way for consumers to example, Proud is running her Twitter but, equally,
access this information.” campaign alongside a promotion for a don’t leave
Ben & Jerry’s is a good example: “It month’s free membership to yourself
devised a marketing campaign directly for ArrangeMeADate.com. Singh says that if Using a social to get people to visit your website then you exposed.
Twitter and Facebook and invited you want social networks to work for your network can boost must make sure that it is perfect and func-
customers to devise new ice-cream flavours. business then you have to treat them as your bottom line tioning correctly.” Kathleen
It was a great way for an established compa- you would a more formal media To harness the power of social networks Brooks
ny to build an affinity with its brand, which campaign: “It’s a science. You have to Picture: make sure you apply the same level of com-
they hope will convert to an increase in squeeze as much as you can out of your Micha Theiner mitment, skill and professionalism as you
sales of its ice cream,” says Singh. customers. So if you are using social media /City A.M. would to any other marketing campaign.
Lifestyle WHITE SANDS 27
PARADISE
| Reviews THE MALDIVES IN
MONDAY’S TRAVEL

Pity these fools – The A-team flops

Big action sequences the A-Team set about clearing their names
in renegade style, which at one point sees
Lucy Gordon (who tragically killed herself
last year after filming). It’s a story of success
Above, the A-Team fail
to impress, unlike Eric
King James Bible decades later – arguably
the most influential work ever published
can’t save a pointless them fly a tank.
If that sounds like fun, it isn’t – there’s
and excess, journeying through Serge’s
impressive back catalogue and culminat-
Elmosnino as Serge
Gainsbourg, above
in the English language, which Brenton
sees as finally drawing to an end the
remake of the 1980s just nothing to redeem this. Sharlto
Copley’s borderline insane Murdock is
ing in alcohol-induced derailment.
What saves Gainsbourg from amounting
right. Below, James
Garnon and Miranda
bloody hostilities between Protestants and
Catholics.
television favourite probably the pick of the bunch, but with a
dreadfully underdeveloped plot there’s
to a pretty formulaic, if educational, biopic,
is the stylistic presentation by director Sfar,
Raison in Anne
Boleyn.
Dramatic events for sure, and yet the
one thing this play is curiously short of ¬–
absolutely no weight behind all the would- who marks himself as a talent to watch out for the most part – is drama. Anne herself,
be impressive action sequences. Fingers for. There’s great imagination – Serge is fol- winningly played by Miranda Raison
crossed the inevitable sequel somehow lowed by an anti-Semitic caricature who (who is taking the same role in the
Film never happens. repeatedly pops up as the devil on his
shoulder, for instance – and Gainsbourg is
Globe’s concurrent production of
Shakespeare’s Henry VIII), mixes
THE A-TEAM visually entrancing. Whilst it might test hard-nosed ambition and religious
Cert: 12A GAINSBOURG patience at just over two hours long, it’s passion beneath her slinky,
Cert: 15 both an impressive debut and an elegant charming, notably fair (Anne
Rhys Griffiths hiiii tribute to the man who for many epito- was famously dark in complex-
Rhys Griffiths hhhhi mizes Gallic cool. ion) exterior, but it’s not clear
A QUARTER of a century years after the which is really motivating her.
finale of the TV show, the A-Team blunders GRAPHIC novelist turned movie director We learn even less of Henry’s
its way into the twenty-first century – and
what should be a film providing two hours
Joann Sfar makes his debut with this surre-
alist biopic of cult (at least on this side of
Theatre interior life (Anthony Howell),
as the play keeps skipping for-
of nostalgic, action-packed fun falls short of the channel) French singer and all round ANNE BOLEYN wards years on an almost arbi-
even the simplest of tasks. Instead it’s king-of-cool Serge Gainsbourg. Delivered Shakespeare’s globe trary basis.
lengthy and boring. with all the style and chic its subject matter By far the most interesting
There’s very little in the way of plot. We demands, the film treads close to style-over- Timothy Barber hhhii character and performance is
meet the various members of the team, substance but is a largely successful story of James Garnon’s King James I,
headed by Liam Neeson (with a rubbish a remarkable life. THERE’S political skulduggery, heresy, looking back at the reign of Anne
grey hair-dye job) as Hannibal Smith with The film traces the journey of the young backstabbing, spying, adultery and no Boleyn as he attempts to marshal
Bradley Cooper (The Hangover) as Lucien Ginsburg from his Jewish childhood shortage of theological and constitutional the religious forces of his own
Templeton “Face” Peck, martial arts fighter in pre-Second World War France to his squabbling in Howard Brenton’s new time. Gay, Scottish, Tourettes-
Quinton “Rampage” Jackson as B. A. transformation into the Brigitte-Bardot-dat- play, which uses the life of Henry VIII’s afflicted, and an outrageous
Baracus and Sharlto Copley (District 9) as ing, pop icon Serge Gainsbourg, portrayed second wife to examine one of the most wit, he’s also a cerebral, stead-
H.M. “Howlin’ Mad” Murdock making up here brilliantly by Eric Elmosnino. Serge cataclysmic periods in British history. fast politician. Garnon gives a
the numbers. Originally an army unit sta- smokes and seduces his way though Brenton maps a line from the break virtuoso performance that’s
tioned in Iraq, they stick their oar in when numerous women, the volume of which is with Rome and the Reformation equal and opposite to the
they aren’t wanted by retrieving some high- topped only by the amount of cigarettes he under Henry (to enable his divorce sparse entertainment on offer
ly coveted metal plates, get set up and face gets through. Among his various lovers is from Catherine of Aragon and mar- when he’s offstage. One looks for-
prison terms. After breaking out of prison, Jane Birkin, played by the young actress riage to Anne) to the drawing up of the ward to seeing more from this actor.

OUT THIS WEEKEND


PREVIEWS

FILM DVD MUSIC GAMES


KARATE KID Shame on you Jackie Chan. Remake CLASH OF THE TITANS Lame-brained Greek gods TOM JONES Album 39 for everyone’s favourite sep- STARCRAFT II: WINGS OF LIBERTY (PC) Long-in-
with Jaden “son of Will and Jada” Smith as the kid. and goddesses adventure, with Sam Worthington. tuagenarian Welsh crooner, titled Praise and Blame. the-making sequel to the 90s gaming classic.

SOUTH OF THE BORDER Oliver Stone’s documentary REMEMBER ME Romantic drama starring Robert JEDWARD Right, they’ve done it, they’ve made an COMMANDER: CONQUEST OF THE AMERICAS (PC)
about South America’s left wing resurgence. “Twilight” Pattinson, with Pierce Brosnan. album, it’s called Planet Jedward. Now make it stop. Settle a colony in this strategy game. Poor natives.

BEAUTIFUL KATE Harrowing, incest-themed THE BOUNTY HUNTER Another rotten nail in the THE MAGIC NUMBERS The indie pop band have BBC BATTLEFIELD ACADEMY (DS, PSP) Beeb-
Australian drama, with Bryan Brown. coffin of the rom com, with Jennifer Anniston. made it to album three, The Runaway. sanctioned historical battle game.
28 Lifestyle | Style CITYA.M. 30 JULY 2010

Tourbillon:
More than the ultimate
a simple complication
stopwatch I
F chronographs are at one end of the
complications scale, at the other you
find the tourbillon. Originally devel-
oped by the Abraham-Louis Breguet in
the 18th century, it’s designed to lessen the
effect of gravity and motion on the watch’s
Luxury chronographs are worth accuracy by mounting the escapement and
balance wheel – which transform the inner
their price, says Timothy Barber workings into regular, timekeeping motion
– in a rotating cage. Put more simply, it’s
exceptionally complicated and delicate.
BREGUET CLASSIQUE ZENITH STRIKING Normally housed in an opening in the
WATCH that tells the time is one thing. A watch that tells 10TH EL PRIMERO watch face, the tourbillon is the calling

A the time, the date, the temperature and has an alarm and
stopwatch is – well, child’s play in the world of digital tech-
nology, but really rather impressive in a hand-made, hand-
wound mechanical piece.
It’s not for nothing that such features on mechanical watches
Mayfair shop William & Son on Mount Street
is now selling watches from the prestigious
Breguet brand. This tidy number, with indent-
ed enamel face and spiralling red tachometer
Having been a pioneer in chronograph move-
ments, Zenith has raised the bar further with
this watch, the second hand of which actually
card of prestige watchmaking and a plat-
form for even more extreme innovation.
And that adds a lot of zeros onto the price.
Here are a couple of ultra-rare tourbillon
watches that happen to be for sale in
are called complications. The most common complication is the dial, may just be the pick of the bunch. moves in tenths of a second. London right now – though you’ll only find
chronograph – basically a stopwatch function. Smaller dials will £27,500 www.williamandson.com £6,995 www.zenith-watches.com one of each. At William & Son in Mayfair
measure seconds, minutes and sometimes hours, while allowing (www.williamandson.com) is the Brequet
for endless variations on the theme. Tradition Fussé [top], made using anti-mag-
Of course if you need an accurate stopwatch you can use your netic silicium and one of only three such
phone, but to dismiss chronographs on that basis is to miss the A LANGE & watches so far made. It costs £113,800.
point. Chronographs, thanks to those smaller dials, are aesthetical- At the New Bond Street shop of Jaeger Le
ly beautiful, stylistically sophisticated and the basic benchmark of SOHNE Coultre (www.jaeger-lecoultre.com), mean-
the engineering complexity which defines haute horlogerie. 1815 while, there’s one version left of the
Reverso Gyrotourbillon 2, with its extraor-
We love the crisp, flow- dinary cylindrical tourbillon. It’s £232,000.
ing design, smart colours
and the cool “flyback” BREGUET TRADITION FUSSÉ 7047
functionality of the
German company’s brand
new chronograph.
£28,500
www.alange-soehne.com

JAEGER-LE COULTRE DUOMETRE


CHRONOGRAPH
A supremely smart watch employing Jaeger-Le Coultre’s “dual-wing”
mechanism, containing two independent power reserves.
£25,550 www.jaeger-lecoultre.com

JAEGER-LE COULTRE REVERSO


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PATEK PHILIPPE MONTBLANC


REF 5170J STAR 4810
Newly released this year, Patek’s new chrono- Once known only for its fountain pens,
HERMES ARCEAU EBONY graph is a true connoisseur’s piece, with its Montblanc has successfully navigated its way
A watch mixing chronograph functionality with classic Hermes ele- clean stylings in yellow gold and the classical into the world of luxury watches, as this
gance, including the trademark sloping numerals of the Arceau range. beauty of the watch face. rather suave chronograph shows.
£3,180 www.hermes.com £46,560 www.patek.com £11,200 www.montblanc.com

W
HY would you want to draw and one pair of royal blue ones. avert my gaze away from those socks.
SOCKS IN THE CITY attention to a skinny, some-
times hairy piece of leg
between your trousers and
I’m all for pulling focus to your good
points and making the most of your
most attractive assets, whatever they
Guiding other people’s eyes firmly to
your ankle means they’ll scrutinize your
shoes and trouser length, so you’d bet-
your shoes? Is it because you’re particu- are. Certainly in the office you should ter be confident that they’re perfect.

Sara larly fond of the knobble on your ankle


and it warrants extra attention? Or that
you feel that the five inches in question
draw the eye towards your most valu-
able tools of communication, your eyes
and smile, by wearing coloured acces-
Personally I’d be more inclined to splash
the colour with a striking tie which
points to your face – a much more pleas-
Hollamby needs cheering up?
After David Beckham’s appearance on
sories or ties that will enhance your fea-
tures, and shapes that flatter your
ant lasting memory. Sorry Becks: this is
one fashion statement I advise you all
last Friday’s Jonathan Ross when he neckline. not to follow. (I liked the hair-do
Style flashed his red socks from underneath
his very dapper (and I’m sure very costly)
Of course Becks has one of those faces
that your eyes get glued to, red socks or
though…!)
Sara Hollamby is a business image consultant
Counsel suit, I have been flashed at, at least four
times in the City, with red socks. Oh,
not, but we’re not all as good looking as
him, and even then, I found it hard to
with WorkingVoices.com.
Email sara@workingvoices.com
CITYA.M. 30 JULY 2010 Lifestyle | TV& Games 29

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COFFEE BREAK
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QUICK CROSSWORD
    

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co-operating) (6,5)
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Sport
30 CITYA.M. 30 JULY 2010

Idowu hunting 2012 HUGHES MOVES INTO THE COTTAGE


MARK HUGHES

glory after Euro gold


has pledged to
“move Fulham for-
ward in the right
direction” after
being confirmed as
the Premier League
club’s new manag-
ATHLETICS “There is one more medal in my er last night. The

career I need to win and that will former Manchester


BY FRANK DALLERES
come in a couple of years,” he City boss has
BRITISH triple-jump king Phillips said. “I’ve worked hard for this, signed a two-year
Idowu immediately targeted victory people think I’m a lucky ath- contract at Craven
at the London 2012 Olympics after lete, but I’m not lucky, I’ve Cottage and has
adding European Championship gold to been doing this for 10 years already been
his burgeoning collection. now. I win gold medals. linked with Aston
Idowu cemented his reputation as That’s what I do. Villa defender Luke
the man for the big occasion last night Hopefully now people Young.
in Barcelona by blowing away his rivals will stop doubting me.”
with a personal best leap of 17.81m. Idowu had been short of form Picture: ACTION
Frenchman Teddy Tamgho, who had this year while Tamgho, 21, IMAGES
been tipped to challenge Idowu (right), jumped a world-leading 17.98m
could only manage 17.45m and had to last month, and he added: “I knew I

Torn Fabregas set


make do with bronze, behind would have to do a big jump to win
Romania’s Marian Oprea (17.51m). here but me and my coach got it
Londoner Idowu’s success right and we planned for this day.”
added to his Commonwealth and Earlier, Britain’s Martyn Bernard
World golds, meaning only claimed a superb bronze medal in the
Olympic glory has evaded him – high jump, while Mo Farah and Chris

for Gunners return


something he intends to put right Thompson both booked their places in
on home soil. Sunday’s 5,000m final.

ETF SECURITIES And amid suggestions he will ask Emirates Cup, but made his frustra-

FOOTBALL
Wenger for a second time to let tion at Barca’s relentless public
CITY TOUCH TOURNAMENT BY FRANK DALLERES
ARSENAL captain Cesc Fabregas
him leave, having seen Arsenal
reject Barca’s opening £30m offer,
pursuit of Fabregas plain this week
when he dismissed the Spaniards’
admits he is torn by his love for Fabregas has revealed why he latest overtures as “noise”.
FRIDAY 6TH AUGUST 2010 Barcelona and a sense of duty to
the Gunners as he prepares to
yearns to rejoin the blaugrana.
“I’m a Barca fan, I’m a socio [club
And his skipper admits he owes a
debt of gratitude to the
return to north London. member], as is my grandfather, my Frenchman, adding: “He is a sec-
Fabregas has seldom spoken uncle, my cousin,” the midfielder ond father for me, the most impor-
about his desire to move back to his told a Spanish magazine. tant person in my life after my
native Catalonia during a summer “I have felt the colours from a father. He has behaved really well
of uncertainty over the 23-year-old’s young age, I’m Catalan. However, with me and taken me in like a son.
future. I’m the captain of Arsenal, I’m a I am part of his family. He doesn’t
But he is set to come face-to-face Gunner, and I have become a player want me to leave. And in my last
with Arsene Wenger again in the there and matured as a person.” conversation with him in London,
next few days, possibly even at this Wenger is expected to address it was one of the most difficult
weekend’s Emirates Cup, which he the situation today when he holds moments I have experienced. I
is likely to attend as a spectator. a media conference ahead of the ended up very upset.”

VENUE:
V E
HAC | ARTILLERY GROUND
H
Ngog double gives Roy perfect start
CITY ROAD | LONDON | EC1Y 2BQ
C
- 3.30PM REGISTRATION, Ngog pounced on a defensive There was no doubting Ngog’s
4.00PM KICK OFF RABOTNICKI 0 error after 18 minutes to put a cal-
low Reds side ahead and volleyed a
sharpness, however, with the
Frenchman who scored eight times
second before the hour. last season going some way to
- PROFESSIONAL PLAYER
COACHING EACH TEAM LIVERPOOL 2 “Ngog has done well in all the
games he has played for me,” said
equalling that in just 90 minutes.
The 21-year-old began the first
Hodgson. “Tonight he crowned his double of his Liverpool career by
- ENTRY FEE – £600 PER TEAM performance with two goals and capitalising on a defensive slip to

EUROPA LEAGUE FOOTBALL


(+vat; up to 10 members) that’s what strikers need to do.” poke past goalkeeper Martin
BY FRANK DALLERES
Hodgson was forced to name a Bogatinov. Ngog then sealed victory
- £5 PER SPECTATOR LIVERPOOL striker David Ngog team missing 10 of his tired World when full-back Martin Kelly made
(all spectator proceeds to charity) struck twice to get Roy Hodgson’s Cup stars, including Steven Gerrard space to cross from the right and
reign as manager off to a winning and Fernando Torres, for the third the forward stroked home a classy
start in Macedonia. qualifying round, first leg fixture. near-post volley.
OPPORTUNITY TO MEET THE STARS FROM LONDON’S
RUGBY LEAGUE PRO
O CLUBS - HARLEQUINS RL AND
LONDON
NDON SKOLARS
LON
For more information or to enter, contact Howard Kramer on:
Results
ATHLETICS FRIENDLY MATCHES: Club America 1 Man City 1 (Man RICOH WOMEN'S BRITISH OPEN (RoyalBirkdale Golf Club,

020 8888 8488 or e-mail:


IAAF EUROPEAN CHAMPIONSHIPS (Barcelona, Spain):
High Jump Final: 1 Aleksander Shustov (Rus) 2.33m, 2
Ivan Ukhov (Rus) 2.31, 3 Martyn Bernard (Gbr) 2.29.
Triple Jump Final: 1 Phillips Idowu (Gbr) 17.81m, 2 Marian
City win 4-1 on penalties), Gillingham 1 Hearts 2, Kendal Tn
1 Darlington 2, MLS All-Stars 2 Man Utd 5.
GOLF
EUROPEAN TOUR IRISH OPEN (Killarney, Co Kerry)—1st rnd:
Southport)—1st rnd: 68 Yani Tseng (Tai), Katherine Hull (Aus). 69
Sun Young Yoo (Kor), Anna-Lise Caudal (Fra), Brittany Lincicome
(USA), Amy Yang (Kor). 70 Michelle Wie (USA), In-Kyung Kim
(Kor). 71 Stacy Prammanasudh (USA), Jiyai Shin (Kor), Stacy Lee
Bregman (Rsa), Juli Inkster (USA), Stacy Lewis (USA), Brittany
Oprea (Rom) 17.51, 3 Teddy Tamgho (Fra) 17.45. (Gbr & Irl unless stated, par 71): 64 David Howell. 65 Damien Lang (USA), Gwladys Nocera (Fra)
howardkramer@skolarsrl.com FOOTBALL
McGrane, Richard Green (Aus). 66 Jean-Baptiste Gonnet (Fra),
Seung-yul Noh (Kor), Anton Haig (Rsa), Marcel Siem (Ger), Darren
www.etfsecurities.com | www.quins.co.uk | www.skolarsrl.com | www.londonrl.co.uk
www.e co.uk Clarke, Brett Rumford (Aus), Paul Lawrie, Gonzalo Fdez-Castano TODAY’S DIARY
UEFA EUROPA LEAGUE THIRD QUALIFYING
(Spa), Michael Hoey. 67 Martin Wiegele (Aut), Francesco Molinari (Football 7.45pm unless stated)
ROUND - FIRST LEG (Ita), Anders Hansen (Den), Francois Delamontagne (Fra), Friendly Matches: Altrincham v Tranmere, Brentford v Crystal
IN ASSOCIATION WITH: Aalesund 1 Motherwell 1, Maribor 3 Hibernian 0, Maritimo 8 Andrew Dodt (Aus), Johan Edfors (Swe), Danny Lee (Nzl), David Palace (8pm), Cheltenham v Wolverhampton, Fleetwood Tn v
Bangor City 2, Rabotnicki Kometal 0 Liverpool 2, Shamrock Drysdale, Rory McIlroy, Eirik Tage Johansen (Nor), Mark F Bolton XI, Grimsby v Lincoln City (7.30), Oxford City v Oxford Utd,
Rovers 0 Juventus 2. Haastrup (Den), David Dixon Gateshead v Newcastle XI (7.30), Benfica v Feyenoord (9.15).

SPORTS EDITOR JON COUCH


email sport@cityam.com
CITYA.M. 30 JULY 2010 Sport 31

Hero Morgan
SPORT | IN BRIEF
Illustrious victory for Knight
RACING: William Knight-trained
Illustrious Blue was the big winner on

hits maiden day three of Glorious Goodwood after


winning the Artemis Goodwood Cup.
The 8-1 shot, ridden by Jim Crowley,
beat off Electrolyser (33-1), Purple Moon
(13-2) and odds-on favourite Age of
Aquarius into the places.

Test century Meanwhile, Kieren Fallon led veteran


Borderlescott (9-2fav) to a half-a-length
victory in the Audi King George Stakes
after seeing off fast-finishing pair Group
Therapy (8-1) and Astrophysical Jet (7-1).

Massa: I’m no No2 to Alonso


18-year-old bowling sensation FORMULA ONE: Felipe Massa insists he

CRICKET
BY JON COUCH Mohammad Aamer was Pakistan’s is not playing second fiddle to Ferrari
instigator, enhancing his glowing rep- team-mate Fernando Alonso despite
EOIN MORGAN told of his pride after utation with the wickets of Cook, being made to allow the Spaniard to
a magnificent maiden Test century Jonathan Trott (38) and captain pass in last Sunday’s German Grand Prix.
put England in control of the first of a Andrew Strauss (45) in a devastating “The time I say I’m a No2 driver, I will
four-match series against Pakistan at morning session, before Pietersen was not race anymore,” said Massa ahead of
Trent Bridge. clean bowled by his strike partner this weekend’s Hungarian Grand Prix.
The Irish-born batsman, playing in Mohammad Asif. That left Morgan SCORECARD | ENGLAND (1ST INNINGS) “I’ve spoken to everyone inside the
only his third Test, smashed 125 not and Collingwood at the crease and team and I’m not just here to race, I’m
out in a record fifth-wicket partner- they transformed the game with a A Strauss c K Akmal b Aamer 45 here to win.”
ship with Paul Collingwood (81no) as remarkable unbroken stand of 213. A Cook c Farhat b Aamer 8
England recovered from a wobble to “The major fact of my innings was I J Trott lbw b Aamer 38 Howell leads Irish Open
end the day on an imposing 331-4. allowed myself to get in, in difficult K Pietersen b Asif 9 GOLF: England’s David Howell rolled
“It’s extremely satisfying, to score a circumstances,” Morgan added. “Paul back the years with a seven-under-par
Test match hundred in only my third and I set up a great platform for our- P Collingwood not out 81 64 to take the overnight lead on the
game,” Morgan raved. “It’s a great selves, getting past that swing ¬- and E Morgan not out 125 opening day of the Irish Open.
achievement, and I’m very proud of then took advantage when the wicket Extras (7nb 5w 5b 8lb) 25 Howell, without a Tour win in four
myself. The feeling of getting to three went flat and the ball a bit soft.” years, leads Australian Richard Green
figures was fantastic. It was a huge Morgan was justifiably proud of his TOTAL (4 wkts, 90 overs) 331 and South Korea’s Seung-yul Noh by a
moment in my career.” innings, given he was desperate to Fall: 42, 93, 116, 118 shot, while Darren Clarke is among a
But while England toast Morgan’s make an impression ahead of the win- Bowling: Aamer 19-4-39-3, Asif cluster of players a further stroke adrift.
arrival in the five-day arena, concerns ter Ashes series Down Under, and
remain over out-of-form duo Kevin never doubted he could step up from
20-6-65-1, Gul 16-4-58-0, Kaneria 21-0-100-0 Briggs next up for Klitschko
Pietersen and Alastair Cook, who limited-overs starlet to Test hero. Shoaib Malik 11-2-39-0, Ali 1-0-9-0, Amin 1-0- BOXING: Vitali Klitschko will defend his
made nine and eight respectively as The Middlesex left-hander said: 3-0, Farhat 1-0-5-0 WBC heavyweight crown against for-
they crashed to 118-4 at one stage. “I’m quite a confident player, and a mer WBO champion Shannon Briggs,
Just like against Australia last week, guy who likes expressing himself.” Morgan shared a record unbroken stand of 213 with Collingwood. Picture: GETTY possibly in Hamburg, on 16 October.
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