www.cityindex.co.
uk
Issue 1,195 Tuesday 10 August 2010
EU PLANS TO LEVY
DIRECT TAX ON UK
POLITICS
▲
BY DAVID CROW
EUROPEAN bureaucrats are preparing
plans for an EU-wide levy on financial
transactions, domestic aviation and
carbon dioxide emissions, putting
them on a collision course with the
British government.
The European Commission wants
to impose a series of pan-European
taxes to fund its €140bn (£116bn)
annual budget, allowing cash-
strapped member states to reduce the
amount of revenue they hand over to
the union.
Janusz Lewandowski, EU budget
commissioner, said a tax on all finan-
cial transactions that take place in the
27-member bloc was one of the
options under consideration. Such a
levy would hit the banking and finan-
cial services sectors hardest.
A separate plan for a levy on avia-
tion within the EU is also being
worked on, with the final proposals
set to be unveiled in September.
The British government – which has
promised to hold a referendum before
handing any new powers to Brussels –
moved quickly to voice its opposition
to the plans. Commercial secretary
Lord Sassoon, a former investment
banker at UBS, insisted the EU should
not be allowed to raise taxes.
He said: “The government is
opposed to direct taxes financing the
EU budget. The UK believes that taxa-
tion is a matter for member states to
FTSE 100 ▲ 5,410.52 +78.13 DOW ▲ 10,698.75 +45.19 NASDAQ ▲ 2,305.69 +17.22 £/$ 1.59 unc £/¤ 1.20 unc ¤/$ ▲ 1.32 +0.01
 
BUSINESS WITH PERSONALITY
HOW A FORMER PORN STAR
CAUSED HP CHIEF’S EXIT
JODIE FISHER UNVEILED P4
EU commissioner Janusz Lewandowski (left) and UK commercial secretary Lord Sassoon disagree over the levy Pictures: GETTY, Micha Theiner/City A.M.
determine at a national level and
would have a veto over any plans for
such taxes.”
Angela Knight, chief executive of
the British Bankers’ Association, said
European banks would consider relo-
cating outside of the union to avoid
the planned levy.
“The Commission has to recognise
that these banks are not just part of a
region – they’re part of the world. And
a global financial business can shift
quite easily. Any new levy should be

www.cityam.com
done in accordance with – and on the
same timetable as – our G20 part-
ners.”
The Commission is desperately try-
ing to find ways to fill its coffers, amid
fears that debt-ridden countries will
scale back their contributions to help
reduce their burgeoning budget
deficits.
Lewandowski said: “I’m hearing
from several capital cities – from
important ones like Berlin – that they
would like to reduce their contribu-
tion. Many countries want to be
relieved. And because of that, the door
has been opened on discussions over
income for the EU itself that does not
get claimed by the finance ministers.”
Meanwhile, the German govern-
ment also said it would oppose any
attempt to introduce a pan-European
tax. “Demands for the introduction of
an EU tax are in contradiction to the
position taken up by the government
in its coalition treaty”, said a finance
ministry spokesman.
LONDON
AVOIDS DIP
HOUSE PRICES IN
THE CAPITAL RISE
IN JULY P7
FREE
Investors
stop £1.7bn
super trust
▲
FUND MANAGEMENT
BY OLIVER SHAH
F&C ASSET MANAGEMENT was cele-
brating a dramatic victory last night
after small investors shot down a
merger between the F&C Commercial
Property Trust (FCPT) and Ignis’ UK
Commercial Property Trust (UKCPT).
Minority shareholders voted by a
narrow margin to block the creation
of a £1.7bn “super trust” by joining
the two real estate funds. In an
unusually rebellious gesture for the
sleepy investment trust sector, 50.07
per cent of investors opposed the
FCPT board’s recommendation. The
ballot will be seen as a wake-up call
for other management teams in the
industry who have often taken share-
holders’ cooperation for granted.
F&C, which was set to lose its man-
date through the deal, had been pas-
sionately opposed. In an interview
with City A.M. chief executive Alain
Grisay said: “Our performance on
that particular property trust was so
good it was capped last year. So what
is it these guys have done wrong?”
Yesterday the 140-year-old company
met with the trust’s board to deter-
mine if its team, led by Richard Kirby,
would continue at the helm.
Ignis and UKCPT had been confi-
dent of winning the vote. The tie-up
was backed by both trusts’ boards and
their two largest shareholders.
Chris Hill, chairman of UKCPT,
said: “We are clearly very disappoint-
ed that we cannot proceed with the
proposed merger, despite our share-
holders voting strongly in support.”
Certified Distribution
31/05/10 till 04/07/10 is 103,725
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 2 News
Taking on Sky is a risky Vision for BT
DEPUTY EDITOR’S LETTER
DAVID HELLIER
IN the run up to the new football sea-
son there is a fascinating encounter
taking place off the field as BT Vision
tries to take on the might of BSkyB in
the showing of live football.
BT Vision, boosted by a ruling from
the regulator on the price that Sky
can sell its sports channels to its
rivals, is offering football fans a pack-
age of just £6.99 to access live football
(actually one of Sky’s channels).
BT is losing money on each package
but it hopes to draw new customers
in who will then buy its broadband
and telephone services.
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Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
VOLATILITY IN WALL STREET TAKES
IT TOLL ON TOP BANKS
Goldman Sachs and Morgan Stanley
each suffered at least 10 days of trad-
ing losses in the second quarter,
underlining how turbulent markets
have cast a pall on Wall Street since
April. The banks’ trading results dete-
riorated sharply from the first three
months of the year, before uncertain-
ty about the US economy, European
sovereign debt and the fate of new
financial industry regulation sapped
investors’ confidence.
DIRECTOR BONUSES SOAR AS PER-
FORMANCE EXCEEDS EXPECTATIONS
Bonuses for the directors of the UK’s
biggest companies rose sharply this
year after a rebound in share prices
and corporate earnings exceeded
2009 performance targets tailored for
a bleaker economic environment.
Bonuses for the highest FTSE 100
It isn’t a comprehensive package
and, as Sky gleefully points out, it
isn’t in High Definition, but it is the
cheapest entry point for football fans.
BT hopes there is a large enough band
of people out there that want to see
live football but who don’t want to
spend the £20 plus a month that Sky
and Virgin Media charge for the privi-
lege.
BT Vision customers can pay extra
for another Sky Sports channel and
they can also get access to ESPN’s
channel. But their deal with Sky does
not include its Sports Channels 3 and
4 or its increasingly popular Sky
Sports News. BT Vision’s marketing
focuses naturally on the cheaper
entry point, while Sky hammers
home to would-be BT customers
(including potential defectors) what
they would not get with the BT Vision
package.
The whole episode reminds me of
previous attempts to take on Sky in
the world of televised sports.
ITV Digital (Rest In Peace) tried to
Skype eyes a
$100m listing
TELECOMS
▲
BY HARRY BANKS
SKYPE, a provider of Internet tele-
phone services, plans to raise up to
$100m (£62.8m) in an initial public
offering of its shares in the US,
according to filings made to regula-
tors yesterday.
Analysts said this could be a bid by
Skype’s private equity owners to
recoup some of their investment of
more than $2bn when they bought
the company in November or an
effort to entice other technology or
telecom companies into a deal.
The filing for Luxembourg-based
Skype, which provides free online
video and text conversations popular
with users such as college students
studying abroad, did not specify the
number of shares it would sell or give
an expected price range.
directors rose to an average of about
120 of base salary compared with 90
per cent in the last financial year.
GOVERNMENT CUTS LIKELY TO HIT
HILL & SMITH
Hill & Smith expects cuts in the gov-
ernment’s road building budgets to
hit demand, as the maker of motor-
way crash barriers reported steady
results. However, chief executive
Derek Muir said he was confident
that plans aimed at exploiting hard
shoulders on motorways to improve
traffic flow would succeed.
SEP PORTFOLIO BEATS DOWNTURN
Scottish Equity Partners, the Glasgow-
based venture capital group, reported
strong revenue growth across its port-
folio of technology companies in spite
of the weak economic backdrop.
Revenues for SEP portfolio companies
rose 30 per cent in the year to June 30,
while employment numbers rose by
seven per cent. This follows sales
growth of 23 per cent.
compete with Sky with a package of
non Premier League football and
failed to make ends meet. The conse-
quences were dire for the football
clubs who negotiated deals with ITV
Digital that were not honoured.
And more recently the Irish group
Setanta took on the Mighty Sky with a
package of Premier League games
that were most often the ones that
Sky didn’t want.
Setanta provided a decent enough
package but failed to attract the num-
bers necessary to make profits and it
really came a cropper when it started
to bid against Sky for international
matches that Sky probably did want.
Bidding against Sky, Setanta ended
up paying top dollar for these match-
es and ultimately it crashed.
BT Vision, a subsidiary of the much
larger BT, has got big pockets. But its
board will surely want to see some
encouraging signs at an early stage to
persuade it that this is a battle BT
Vision has a hope of surviving.
More on P11
Skype, which expects to trade on
Nasdaq, has drawn a large number of
customers with free computer-to-
computer services while a small per-
centage of its customers use Skype to
make calls to traditional phones at
discounted rates.
Only 8.1m or 6.5 per cent of Skype’s
124m average monthly users were
paying customers in the second quar-
ter of 2010, the company said it in the
filing. Skype had 560m registered
users in the first half of 2010.
The firm is led by chief executive
Josh Silverman.
Skype boss Josh
Silverman says the
web phone service has
124 million average
monthly users
INSULTS FLY FROM CHAT ROOM TO
COURTROOM
Two listed oil explorers are threaten-
ing to take legal action against users
of stock market chat rooms, whom
they accuse of spreading malicious
falsehoods in an attempt to drag
down share prices. Nighthawk and
Nostra Terra say that they have identi-
fied alleged defamers or market
abusers and may take them to court.
RULE CHANGES ARE A POTENTIAL
NIGHTMARE, SAY PENSIONS BOSSES
Leading figures in the retirement
industry have warned the govern-
ment’s plans to dilute the pension
rights of millions of private sector
workers are a “potential nightmare”.
In a letter to the Work and Pensions
Secretary, they say that the proposed
changes could lead to a retrospective
cut for some pensioners, in contra-
vention of the Human Rights Act.
CITY.A.M. AWARDS
The nominations are now in, so we
have been busy putting together a
short-list for CityA.M.’s inaugural
awards in October.
As journalists, we’re more accus-
tomed to spotting deals that go
wrong or chief executives who fail,
(the definition of a news story, I was
forever told, was something new and
interesting that somebody didn’t
want published) so it’s been an uplift-
ing experience to focus on City people
who have excelled.
The timetable now entails an
unveiling of the short-list in both the
paper and on the web site towards the
end of August. Our high powered
panel of judges will then meet in
October ahead of the awards ceremo-
ny on October 27. There are still tables
available for what should be an excit-
ing occasion and there is further
information on the
cityamawards.com web site.
david.hellier@cityam.com
Allister Heath is away
Unite has its eye on a strike over the Bank Holiday
Unions threaten air chaos
AVIATION
▲
BY ALAIN TOLHURST
UNIONS are threatening to cause
travel chaos in the run-up to the
August Bank Holiday with a ballot
over strike action against the British
Airports Authority (BAA).
The Unite ballot of more than
6,000 firefighters and ground staff at
six airports, including Heathrow, is
expected to come out in favour of
strikes on Thursday after talks failed
to resolve a pay dispute.
PRECIOUS METALS ARE BEST ASSETS
Precious metals such as gold were the
best performing asset class of the first
half of the year, according to research
by Lloyds TSB. They rose in value by an
average of 9.7 per cent, with gold turn-
ing in the best performance thanks to
a rise of 13.5 per cent, the bank’s sur-
vey of asset classes found.
GOVERNMENT BUYING PROCESSES ARE
ALIEN TO CREATIVE FIRMS
Government has closed the door on
cutting-edge design talent because of
its “alien”and “wooden” procurement
processes that exclude all but the
largest agencies from contract ten-
ders, according to an employers’
group. London First, the lobby group,
said small businesses were struggling
to win design business, including con-
tracts associated with the Olympics,
because of the complex and lengthy
contract procedures.
CITYA.M. 10 AUGUST 2010
NEWS | IN BRIEF
Gulf well stakeholder sells bonds
Anadarko Petroleum, which owns 25
per cent of the Macondo well at the cen-
tre of the Gulf of Mexico oil spill, said
yesterday it sold $2bn worth of bonds
and will now not need a $1.5bn loan it
previously lined up. Anadarko said it
raised $6.5bn in financing commitments,
in part to pay for potential liability from
the Gulf of Mexico oil spill. BP: p10
Ambac in bankruptcy warning
Financial services group Ambac said it
lost $57.6m in the second quarter, after
the US bond insurer suffered big losses
on securities. The company warned it
may have to file for bankruptcy if it can-
not restructure its liabilities by the sec-
ond quarter of 2011. The firm is looking
at raising capital as well as a debt
restructuring.
BBC to abolish pension top-ups
The BBC board is set to scrap pension
top-up payments to around 30 execu-
tives at the corporation, saving more
than £1m. The move would slash direc-
tor general Mark Thompson’s pay packet
by around 20 per cent, in a bid to diffuse
criticism over executive pay.
Unite has said it will move quickly
towards industrial action and
although the union would have to
give seven days notice it would be
able to begin strike action in time for
the holiday weekend.
A spokesman for BAA said: “We are
doing everything we can to prevent a
strike, and we are obviously talking
with Unite. But as it is firefighters
and security staff involved, if strike
action went ahead we definitely
would not be able to keep any of the
airports open.”
LONDON TO HOST NBA DOUBLE-HEADER
The National Basketball Association
is set to stage its first regular-season
games in Europe in an effort to glob-
alize the sport, the league’s
Commissioner, David Stern, said yes-
terday. The New Jersey Nets and
Toronto Raptors will take part in
back-to-back games at the O2 next
March as the NBA fulfils a commit-
ment to schedule games in the UK
ahead of the 2012 Olympics.
GERMAN EXPORTS ON THE RISE
German exports surged in June, con-
firming a revival in Europe's largest
economy after a severe recession and,
until recently, a sluggish recovery.
Germany posted strong growth last
quarter but the extent of the rebound
wasn't clear until the release of the
latest trade data, which showed a 3.8
per cent rise in exports from May and
a €14.1bn trade surplus.
CITYA.M. 10 AUGUST 2010 News 3

Banks to meet SME leaders

in bid to prove they will lend
chancellor George Osborne pledging An FPB spokesman said: “It will cer-
▲

BANKING
BY STEVE DINNEEN
SMALL business leaders will be invit-
ed to join forces with a new banking
taskforce designed to improve the
flow of credit to SMEs, City A.M. has
learned.
The British Bankers Association
(BBA), working in conjunction with
the chief executives of the six major
UK banks, yesterday drafted a letter to
to carry out research into lending
practices. Now the BBA says it will
invite leaders from groups such as
the British Chambers of Commerce
(BCC) and the Forum of Private
Business (FPB) to make suggestions
based on the research.
A BBA spokesman said: “After the
initial round of meetings we will for-
mally contact small business groups
to take our proposals to them.”
tainly help if SMEs are involved in the
taskforce. While we welcome the
admission by banks that they need to
examine which businesses they
should lend to we feel they should be
more pro-active.
“A roundtable situation would
allow us to give some useful input.
But we must ensure this is more than
a talking exercise – viable members
are still being denied credit.” BBA chief executive Angela Knight says the taskforce will provide vital information

GLG trio will

be paid more
than Man CEO
bonuses at the discretion of the Man
▲

FINANCIAL SERVICES
BY MARION DAKERS
THE THREE top managers at hedge
fund GLG Partners are set to have
higher basic pay packets than the
chief executive of rival Man Group
once the £1bn takeover of GLG is com-
plete.
Co-chief execs Noam Gottesman
and Emmanuel Roman, along with
Pierre Lagrange, senior managing
director, will all earn basic salaries of
$1m (just under £629,000), according
to a Man shareholder circular.
Man’s chief executive Peter Clarke
receives $925,000 a year, while chair-
man Jon Aisbitt earns $450,000.
According to the document: “The
employees are expected to devote the
whole of their working time, atten-
tion and abilities to their duties” in
return for a base salary of £1m and
board. The firm said the bonus provi-
sion does not apply to Gottesman.
The trio will remain “significant
investors” in the business, in an effort
to repeat the success of previous
funds.
The GLG heads have forfeited their
bonus payments and taken a $1
salary for the past year following the
disappointing returns on GLG funds,
though the company restored $1m
basic payments this year.
If the merger goes ahead, the
group will control assets of around
$63bn.
Pierre Lagrange (GLG)
$1m per year

Peter Clarke (Man Group) Emmanuel Roman (GLG)

$925,000 $1m per year

per year

KKR common GDF and IP set

unit sale is off to confirm deal
▲

PRIVATE EQUITY M&A

PRIVATE equity firm Kohlberg Kravis
Roberts & Co said yesterday it has can-
celled plans to sell $500m of new
common units, less than one month
after it listed on the New York Stock
Exchange
KKR, one of the biggest private
equity firms in the world, had
announced plans to sell the units in
May. The company did not provide a
reason for the change.
It said at the time proceeds would
be used to expand its business and for
general corporate purposes.
The firm announced the cancella-
tion in its second-quarter results.
FRENCH utility GDF Suez and
International Power are set to
announce they have struck a deal on
a planned asset tie-up this morning.
GDF will pay a cash dividend of
about 90p a share to International
Power shareholders as part of a
reverse takeover, after talks were
revived in July. The enlarged firm will
generate annual sales of €13.5bn
(£11.2bn). Under the deal, GDF will
inject its non-European power genera-
tion businesses into International
Power, as well as assets in the UK and
Turkey, in return for a majority stake
in a new UK-quoted vehicle.
 4 Focus on HP
Porn star takes centre stage in
the ousting of HP boss Mark Hurd
How the star of Sheer Passion brought about the
demise of HP’s chief executive, by Steve Dinneen
A
GLAMOROUS former porn star
set in motion the chain of
events that last week ended
with the downfall of one of
America’s most powerful chief execu-
tives.
HP boss Mark Hurd, 53, was forced
to resign after it was found $20,000
(£12,500) of expense claims in his
name were inaccurate.
It then emerged the married tech
boss had been desperate to conceal his
CITYA.M. 10 AUGUST 2010
relationship with the saucy star of
movies including Sheer Passion,
Intimate Obsession and Body of
Influence 2.
Jodie Fisher, 50, had been employed
at HP from 2007-2009 to meet and
greet clients of the world’s biggest
computer manufacturer.
The saga reached fever pitch when
Fisher, who has also worked as a sales-
woman and a marketing executive,
Jodie Fisher (above) alleged sexual harass-
ment against HP chief Mark Hurd (below)
filed a sexual harassment claim
against Hurd in June. HP found no evi-
dence of sexual harassment but
uncovered the expense claims, which
included payments to Fisher that did
not correspond with work she carried
out. There were also claims for meals
and travel that were not accounted
for. Hurd, who was hired to help clean
up the firm’s reputation, denies dis-
honesty, claiming the expenses were
legitimate and errors were accidental.
Investors baulked at the fallout of
the sleazy affair, with HP’s share-price
tumbling more than seven per cent
on news of his departure.
Fisher, who denies having a sexual
relationship with Hurd, said she was
“surprised and saddened” that Hurd
had lost his job.
In a statement released through best.”
celebrity lawyer Gloria Allred she said: Chief financial officer Cathie Lesjak
“I have resolved my claim with Mark has been drafted in as interim chief
privately, without litigation, and I do executive, while the group is looking
not intend to comment on it further. I internally and externally for a full-
wish Mark, his family and HP the time replacement.
ANALYSIS l Hewlett Packard
50 $ 42.60
9 Aug
48
46
44
42
10 May 19 May 28 May 9 Jun 18 Jun 29 Jun 9 Jul 20 Jul 29 Jul 9 Aug
TIME LINE | THE DEMISE OF HP BOSS MARK HURD
● 2007 against HP chief executive Mark Hurt.
Former soft-porn star Jodie Fisher is ● Friday 6 August
given a job meeting and greeting clients Hurd resigns over claims he filed
of the world’s biggest computer manu- $20,000 (£12,500) worth of inaccurate
facturer. expenses.
● 2009 ● Sunday 8 August
Fisher leaves the firm. Fisher emerges as the cause of the inves-
● June 2010 tigation but says she has settled her
Fisher files a sexual harassment claim issues without litigation.
CITYA.M. 10 AUGUST 2010 News 5

Rebound in European M&A EUROPEAN M&A ACTIVITY SINCE 2004

ANALYSIS l Quarterly M&A activity – All sectors
450,000
Value

begins to take a firmer hold

(€m)

400,000

350,000

300,000

Drivers report from MergerMarket, distressed deals drove activity in the

▲

M&A
BY VICTORIA BATES
GREEN shoots have started to take a
firm hold in the M&A arena, with
European deal value soaring this year
compared to the first half of 2009.
A total of €182.7bn (£151.8bn)
worth of deals came to the market in
the first six months of 2010, an
increase of over 25 per cent on last
year, according to the latest Deal
Hay Group and Merrill DataSite.
But while deal flow is looking
decidedly healthier than last year, the
report warns that the figures remain
some of the worst on record, showing
that the market still has a long way to
go before it picks up to normal levels.
The industrials and chemicals sec-
tor led in terms of volume over the
period, accounting for 20.8 per cent
of all European deals. Geographically,
250,000
UK and Ireland, which accounted for
a quarter of all M&A by volume and 200,000
value over the six months. And Credit
Suisse raked in the lion’s share of the 150,000
advisory work, advising on 57 deals
worth a combined €67.5bn. 100,000
The Pru’s $35.5bn bid for AIA was
the largest deal on the cards before it 50,000
fell through, to be replaced by drug
giant Novartis’ €18.25bn bid to take 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
full control of Alcon. ‘04 ‘04 ‘04 ‘04 ‘05 ‘05 ‘05 ‘05 ‘06 ‘06 ‘06 ‘06 ‘07 ‘07 ‘07 ‘07 ‘08 ‘08 ‘08 ‘08 ‘09 ‘09 ‘09 ‘09 ‘10 ‘10

Goldman bets
on derivatives
▲

BANKING The use of derivative instruments

BY OLIVER SHAH
DERIVATIVES activities generated up
to a third of Goldman Sachs’ revenues
last year, according to figures handed
to the US Financial Crisis Inquiry
Commission (FCIC).
Goldman derived between $11.3bn
(£7.1bn) and $15.9bn of its $45.2bn
net turnover from derivatives-based
businesses in 2009, a source close to
the bank confirmed. At the upper
end, the amount would represent 35
per cent of Goldman’s revenues.
Goldman is among several Wall
Street behemoths which have been
asked to provide details of their deriv-
atives franchises to the FCIC.
An FCIC spokesperson said: “This is
information we have asked for
because it’s important to get a sense
of these institutions’ derivatives oper-
ations. The banks have all assured us
they will get us that information.”
such as credit default swaps is one of
22 areas being examined by the com-
mission in the wake of 2008’s bank-
ing sector meltdown. Other topics of
interest include short-selling, lending
and securitisation and abuse of con-
sumers in the mortgage market.
The FCIC’s next public hearing on 1
September will examine the issue of
institutions being “too big to fail”. It
is not yet known which banks will be
represented at the session, a
spokesperson said.
The news came as Goldman said it
endured 10 days of trading losses in
the second quarter. Losses at
Goldman’s trading desks topped
$100m on three of those days, accord-
ing to a filing with the US Securities
and Exchange Commission, ending a
three-month clean sheet.
However, the bank made at least
$100m on 17 other days during the
three months to 30 June.

CITY VIEWS: ARE YOU WORRIED ABOUT RISING

FOOD PRICES? Interviews by Alain Tolhurst

ADAM BYRNES | ABSOLUTE VENTURES

"It’s inevitable really, but to be honest I have more things to
worry about. People still have to eat, it’s not causing me too
many sleepless nights, I think if prices go up then it will
only be a short-term issue."

PETER LAYCOCK | IRWIN MITCHELL

"I’m not particularly bothered about it to be honest. I don’t
Ve
er y Hot. Ve
er y Cool.
think the prices will be too astronomical, it won’t be as though
people wont be able to afford to put food on the table, the econ-
omy will stabilise." The T6 brings you boiling hot and ice-cold
purified water, straight from the mains.
PETER GYOURY | TPP RECRUITMENT
"It’s a bit annoying but there’s nothing we can do about it. It
could have a knock-on effect if it effects the consumer price
index and then interest rates, but in the long-term I don’t
think it will affect me that much." T6water.co.uk
T6w
water.co.uk 0845 30 22 493

>>>> FOOD CRISIS PANIC IS OVER-EGGED

TURN TO PAGE 18 >>>>
CITYA.M. 10 AUGUST 2010
Retail sales bleak
as spending cuts
dent confidence
CONSUMER
▲
BY JOHN DUNNE
RETAIL sales growth is slowing as fears
over public spending cuts hit con-
sumer confidence, according to the
British Retail Consortium (BRC).
Like-for like sales were up just 0.5
per cent in July compared with the
same month last year.
That was down on the 1.8 per cent
rise the year before.
Food sales performed relatively well
but footwear and homeware sales
were poor.
The BRC said that “big ticket” items
in homeware had been particularly hit
by the increased uncertainty caused by
the government’s plans for a cull in
public sector jobs.
On the upside clothing saw a lift
from discounting while cosmetics also
rallied. The figures showed that from
London braced for a
drop in house prices
PROPERTY
▲
BY VICTORIA BATES
LONDON’S house prices continue to
surge ahead for the moment, riding
roughshod over the decline that holds
the rest of the country in its grip,
though the capital is expected to suc-
cumb to falling prices in the coming
months.
London was one of only two regions
which reported material price hikes in
July, according to the latest Royal
Institution of Chartered Surveyors
(RICS) housing market survey. A total
of 14 per cent more surveyors in the
capital reported rising prices over the
month than those who witnessed a
decline, RICS said – though this repre-
Rise in the cost of crude oil forecast to
send petrol forecourt prices rocketing
OIL
▲
BY HARRY BANKS
PETROL prices are set to soar to a
record high of 126p a litre in the
New Year, it was predicted yesterday.
Higher fuel duty and a rise in VAT
– which are both due to come into
force in January – will exacerbate the
rising cost of crude oil and push
pump prices up by eight per cent,
according to RMI Petrol.
That will see prices surge from
today’s average of 116.65p for a litre
of unleaded to a staggering 125.9p a
litre – higher than the current record
of 121.61p a litre.
RMI Petrol, which represents two
Economic News 7
High Street sales
slowed in July
Picture: Micha
Theiner/City A.M.
Russians lead
army of oil rich
shoppers in UK
▲
RETAIL
The UK has seen a rise in internation-
al shoppers from oil rich countries,
according to new data.
In July there was an 81 per cent
May to July like-for-like sales on all increase in shoppers from the
goods rose 0.9 per cent. Russian Federation, 60 per cent more
Director general of the British Retail from the Middle East and 38 per from
Consortium Stephen Robertson said: Nigeria, compared to the same period
“These are poor results for non-food last year.
retailing, with some sectors actually According to the figures from
seeing sales falls. The vitality has even financial services firm Global Blue
faded from online sales growth. By the Russians’ favourite stores are bou-
contrast food sales continue to be tiques in bond Street.
JULY:
resilient.” Meanwhile, Nigerian customers are
He added: “Talk of public spending
cuts is unsettling customers and they
MAY – JULY: MAY – JULY: snapping up expensive jewellery,
men’s fashion and electronic goods.
are concentrating on essentials.” Like-for-Like sales % change on year ago % change on year ago Nigel Dasler, VP of Global Blue,
Robertson said interest rates should
0.5% Like-for-Like Total said: “Having witnessed the steady
remain low as consumer confidence arrival of Russian shoppers to the UK
was still at a low ebb. Food 1.6% Food 4.0% over the past four years, we have
He continued: “It’s clear the recov- Compared with noticed a definite peak.”
ery continues to need support. The
Like-for-Like sales Non-Food 0.3% Non-Food 2.3% A Harrods spokesman said:
Bank of England must resist pressure “Russian visitors constitute a well
to increase interest rates too soon.” The 2009 All Categories All Categories established proportion of Harrods
data showed that England’s early exit international customer base and
from the World Cup had denied retail- 1.8% 0.9% 3.0% numbers continue to grow signifi-
@
ers an extra lift. cantly every year.”
@
sented a significant drop from the 31 those who reported a fall, up from a
per cent discrepancy between rising differential of 18 per cent in June.
and falling price reports in June. RICS said that the property sector
The survey, which has a good had turned sharply bearish on the
record in revealing market trends outlook for house prices in the com-
first, showed that demand for proper- ing months, however. A balance of 15
ty, measured by the net balance of per cent of surveyors said in July they
new buyer enquiries, remained posi- expected a decline in prices, whereas
tive, though it halved from six to just in June a narrow five per cent expect-
@
three per cent, reflecting caution ed prices to rise. The Midlands, Wales
fuelled by mortgage lending restric- and the north of England saw the
tions and wider economic uncertain- biggest falls, according to RICS.
ty. “The fall in the RICS house price
RICS said that the market is mov- measure is a reflection of both the
ing more towards a glut of supply, increase in supply following the
showing that the “balance of power is scrapping of HIPS and the more cau-
shifting from sellers to buyers”. And tious stance from buyers,” RICS
28 per cent more surveyors reported a London director Amanda Gardiner
hike in new vendor instructions than said.
thirds of Britain’s 9,000 petrol fore- ber that the coalition did not cancel
court owners, also said pump prices the Labour government’s Budget
would rise by three per cent to 120p commitment to raising fuel duty by
by the Bank Holiday weekend. 1p a litre from 1 October and a fur-
British petrol prices have fallen in ther 0.76p a litre from 1 January.
the last two months to an average of
116.65p for a litre of unleaded, large- ANALYSIS l Brent Crude Oil Futures
ly due to sterling’s recent gains 84
$/barrel
against the dollar. 80.70
82 9 Aug
For most of this time, crude oil 80
prices have been hovering around 78
the $72-$73-a-barrel mark. But yester-
76
day a barrel of Brent Crude in
London was trading at $81.08, close 74
72
MORE NEWS
to its three-month high of $82 a bar-
rel. 70
ONLINE
Brian Madderson, chairman of www.cityam.com
RMI Petrol said: “We need to remem- 10 May 28 May 18 Jun 8 Jul 28 Jul
 8 News CITYA.M. 10 AUGUST 2010

Smoothies helped to boost

McDonald’s sales last month
Real Fruit Smoothies and Frappes ANALYSIS l McDonald's Corp

▲
CONSUMER
BY HARRY BANKS from its McCafe line of drinks. $ 72.92
In Europe, same-restaurant sales 9 Aug
MCDONALD’S yesterday reported a rose 5.3 per cent, led by sales gains in 72
better-than-expected seven per cent France, Britain and Germany and by
global increase in sales at established its programme to renovate 70
restaurants in July, fuelled by new McDonald’s restaurants and extend
drinks like smoothies, extended hours in the region.
68
hours in Europe and strength in Asia. Same-store sales rose 10.1 per cent
July sales at McDonald’s restau- in the Asia/Pacific, Middle East and
rants open at least 13 months rose 5.7 Africa (APMEA) area. The company 66
per cent in the US, boosted in large said Japan, Australia and China were
19 May 9 Jun 29 Jun 20 Jul
McDonald’s chief executive Jim Skinner had a good July Picture: REUTERS part by its recently launched McCafe standouts in the region.

Futures ‡ Commodities ‡ Options

Stocks ‡ Forex ‡ Bonds ‡ Funds Autobar sold
80
on over

Markets
Worldwide
for €1.2bn to
from One Account CVC Partners
Autobar in the market today”. CVC
▲

LEISURE
US Stocks* (all-in) UK Stocks and ETFs (all-in) BY OLIVER SHAH
USD 0.005 or less per share GBP 6.00 < 50,000 Value - UK2 AUTOBAR, the food and drink vend-
(minimum GBP 6.00 per order) ing machine operator, has become
the latest asset to be passed between
US Stock Options* private equity players after CVC
$0.15 - $0.70 per contract Capital Partners paid €1.2bn (£1bn) to
UK Options (all-in) take the business from Charterhouse.
(plus exchange fees) GBP 1.70 per contract - UK2 CVC will fund the deal with €650m
(minimum GBP 1.70 per order) of senior debt from Nomura, BNP
Paribas, ING, Lloyds Banking Group
Forex and HSBC. Charterhouse is expected
Spreads as low as ½ pip to keep an 11 per cent stake in the
UK Futures3 company after the transaction.
(plus a transparent low commission1)
GBP 0.15 to GBP 0.65 Autobar operates 255,000 vending
per contract - UK machines across Europe selling more
than 5m drinks every weekday. It had
(minimum GBP 1.70 per order) sales of €569m in the year to March,
according to a statement by CVC.
SIPP Accounts Supported It is understood the buyout firm
will now attempt to take over Selecta,
Autobar’s main competitor, and
knock the businesses together to cre-
ate a group with more than 400,000
vending booths across the continent
and revenues of €1.5bn.
Successful traders and investors understand that Andrew Bristow, Autobar’s chief
executive, said CVC and Charterhouse
superior technology and low trading costs would help to unlock “a significant
number of growth opportunities for
hold the key to greater returns.
Just Retirement crosses the £1bn
revenue barrier for the first time
Interactive Brokers
The Professional’s Gateway to the World’s Markets
▲
managing partner Rob Lucas said the
deal would take Autobar to “the next
stage” in its development.
CVC was advised by investment
bankers at HSBC. Charterhouse was
advised by bankers from Rothschild,
Nomura and BNP Paribas.
Autobar is the latest in a string of
secondary buyouts, whereby private
equity houses trade companies
between themselves rather than take
them from the public markets. Last
month Coller Capital gave Lloyds
£332m for a 70 per cent stake in its
Integrated Finance portfolio, while
KKR bought Pets At Home for £955m
from Bridgepoint in January.
Private equity dealmakers are sit-
ting on $1 trillion (£628bn) of
unspent capital globally, according to
data provider Preqin.
CVC’s Rob Lucas said
the buyout firm had
been “impressed with
the track record of
growth in the business”
“That’s a benefit to the customer

FINANCIAL SERVICES
www.interactivebrokers.co.uk JUST RETIREMENT, the pensions and
property specialist, has crossed the
£1bn sales mark for the first time but
is braced for a difficult second half as
020 7 776 7800 the stockmarket treads water.
The company said sales of annuity
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Services Authority. FSA register policies and equity release mortgages
entry number 208159 - * $1.00 minimum on all orders, no extra ticket charge. No technology surcharges. rose 33 per cent to a little more than
[1] Commission is 0.1 to 0.2 basis points * trade value. USD 2.50 minimum commission on forex. [2] Stamp £1bn in the year to June. Chief execu-
duty on UK stock, ETFs (purchases) and option exercises (UK=0.5%) is passed through to the customer. [3] Plus tive Rodney Cook, who joined last
exchange, regulatory and carrying fees. Options and Futures are not suitable for all investors. The amount month, said progress on annuities
you may lose may be greater than your initial investment. Before trading options read the “Characteristics had been fuelled by a decision to
and Risks of Standardized Options”. Before trading futures, please read the CFTC Risk Disclosure. For a copy
of either disclosure, call 020 7 726-9500. slash the average underwriting time
07IB10-281 from 30 days to 20 days.
and to the independent financial
adviser (IFA), because they’re being
rewarded for the hard work they’re
doing without having to wait for
months,” Cook said.
Head of marketing David Cooper
said annuities sales had slowed in the
last quarter, adding: “At the moment
the market outlook for the second
half is far from clear, largely because
of the volatility we’re seeing in the
stockmarket.”
Permira bought Just Retirement for
£228m in November. The business
turned a profit of £32.1m in 2009.
CITYA.M. 10 AUGUST 2010
AstraZeneca
pays $198m to
drug victims
▲
PHARMACEUTICALS
BY ALAIN TOLHURST
ASTRAZENECA yesterday agreed to
pay $198m (£124m) to settle 17,500
cases brought by patients claiming
side effects from its anti-psychotic
drug Seroquel.
The Anglo-Swedish drugs giant
faces ongoing litigation over claims
its best-selling drug, which is used to
treat schizophrenia and bi-polar dis-
order, also carries an increased risk of
passing on diabetes.
Seroquel, which last year generated
$4.9bn in global sales, accounts for 15
per cent of the firm’s sales and is the
fifth-highest selling drug in the
world. Each claimant will receive an
average of $11,300, which is modest
compared to recent drug company
payouts.
Astra said: “We remain committed
to a strong defence effort, but will
also continue to participate in good
faith in court-ordered mediation.”
However this deal does not cover a
further 4,500 cases, although Astra
Menton [Côte d’Azur]
Nightclubs ......................................... 2
Mégane ............................................ 21
CAN A CAR CHANGE A TOWN? TheMeganeExperiment.com
Data source: Knowledge & Trends Menton + Gisburn Survey, July 2010. The official fuel consumption figures in mpg (l/100km) for the Mégane
Hatch GT TCe 180 are: Urban 27.7 (10.2), Extra Urban 46.3 (6.1), Combined 37.2 (7.6). The official CO2 emission figure is 178g/km.
AstraZeneca boss David Brennan settled a large slice of his Seroquel lawsuits yesterday
says over half of these have been dis-
missed.
Last month, the US Food & Drug
Administration wrote to the pharma-
ceutical group warning it that infor-
mation it released to doctors about
Seroquel was “misleading” for over-
stating efficacy and omitting materi-
al facts and risks associated with the
drug.
Astra said: “We are taking steps to
address the contents of the letter and
update our promotional materials as
appropriate.” The firm said the settle-
ment would not affect its full-year
core earnings guidance.
Despite the announcement of the
deal, Astra’s share price closed up 1.5
per cent at £33.05.
FAST FACTS | ASTRAZENECA
● The UK’s number two pharmaceutical group
after GlaxoSmithKline, specialising in a range of
prescription medicines to fight disease.
● It reported first half sales of £10.5bn and
pre-tax underlying profit of £4.6bn this year.
The drugs that ran into trouble...
GlaxoSmithKline has faced nearly
1,000 lawsuits over its anti-depres-
sant Paxil, which is alleged to cause
birth defects when mothers use it dur-
ing pregnancy. In October last year a
lawsuit in America ended with the jury
awarding $2.5m (£1.57m) to the vic-
tim. GlaxoSmithKline said last week
that it expects to take a $2.36bn
(£1.48bn) charge against its second-
quarter earnings for settlements for
legal cases over Paxil and other drugs.
Merck withdrew arthritis drug Vioxx
in 2004, after a study said that from
its approval in 1999 until 2003, nearly
28,000 heart attacks and sudden car-
diac deaths would have been avoided
Gisburn [Lancashire]
Nightclubs ......................................... 0
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Focus on AstraZeneca
if a competing drug was taken
instead.
It has faced litigation ever since and
although Merck placed a final $4.1bn
(£2.57bn) payment to its Vioxx settle-
ment fund earlier this year it could
face further lawsuits.
US drug group Pfizer acquired rival
Wyeth last year but picked up with it
the hundreds of lawsuits against the
company over its hormone replace-
ment drug Prempro, which victims
claim gave them breast cancer.
Earlier this year the US Supreme
Court rejected Pfizer’s appeal of a ver-
dict in favour of an Arkansas woman,
leaving intact a $2.7m (£1.7m) award
that may grow with punitive damages,
marking the first federal verdict over
Prempro.
9
Fears of huge
payout allayed
FEARS that claims over Seroquel
would turn into a full-scale phar-
maceutical scandal were clearly
overblown. At just $11,300 (£7,000)
per claimant, AstraZeneca has got
off pretty lightly. With 4,500 out-
standing claims to settle (2,900 of
which have already been dis-
missed) it is clear that the fallout
is not going to run into the bil-
lions of dollars, as was first
thought.
Still, Seroquel has been a dis-
traction from the real problem:
Astra’s new drugs cupboard is
looking increasingly bare, with
hopes of finding a new block-
buster fading fast.
Zibotentan, Astra’s prostate can-
cer drug, didn’t exactly shine in
second stage trials, which showed
the drug doesn’t stop the disease
from progressing. There does
seem to be a beneficial impact on
overall survival rates, but investors
will have to wait for phase three
trials to see if this is enough to
make the drug a success. It was
once tipped as a rival to
Dendreon’s market leader
prostate cancer drug Provenge,
but it looks as though it won’t
come close.
Astra needs to find a replace-
ment – and fast.
BOTTOMLINE
Analysis by David Crow
 10 News CITYA.M. 10 AUGUST 2010

Alexander
BP warns oil demands
disaster costs deeper cuts
have hit $6bn

BP IN CRISIS
BY HARRY BANKS
BP’s estimate of its costs for the Gulf of
Mexico oil spill have spiralled by more
than $2bn over the past three weeks
to $6.1bn (£3.8bn), the company said
yesterday.
The costs include the $319m BP has
He said the spill response authori-
ties were closely watching a tropical
weather system moving east over the
Florida peninsula, which forecasters
see crossing in a few days near BP’s
Deepwater Horizon spill site.
Allen said that depending on its
strength and direction this system
could affect the timing of the relief
well “bottom kill” operation to per-
Moscow’s Kremlin has been shrouded in smog for over two weeks
▲
POLITICS
BY DAVID CROW
DANNY Alexander, the chief secretary
to the Treasury, has written to cabinet
ministers to demand deeper cuts to
departmental budgets.
The Treasury’s axe man sent the
letter amid escalating tensions over
the biggest public spending cuts in
Britain’s peacetime history.
An aide to Alexander confirmed he
had sent the letter, but insisted it was
part of an “ongoing process” ahead of
Picture: REUTERS the comprehensive spending review
due 20 October.

Moscow death rate has

already paid out in compensation to manently shut down the crippled In recent weeks, some ministers
businesses and individuals affected Macondo well, which was provisional- have stepped up their fight against
by the 20 April disaster. In its last esti- ly capped on 15 July. the Treasury in a bid to protect their
mate on 19 July, BP said the costs had Forecasters were giving this weath- department’s most sacred projects.

doubled since wildfires

reached $3.95bn.
BP also yesterday confirmed it had
made an initial deposit of $3bn into a
$20bn escrow fund set up for the spill.
Yesterday, BP was closing in to start
a permanent kill of the blown-out
Gulf of Mexico oil well this week,
er disturbance a low 20 per cent A handful of cabinet ministers,
chance of strengthening into a tropi- including welfare secretary Iain
cal depression. As the deepwater engi- Duncan Smith, have gone over chan-
neering operation advanced, BP said cellor George Osborne’s head and
it was also moving to fulfill its public protested directly to the Prime
commitments to compensate for eco- Minister.
nomic damage caused by the spill, during normal times is between 360 Vince Cable, the business secretary,
▲

unless an approaching weather sys-
tem disrupts the timing, the top US
oil spill response chief said.
“They are closing in on the last 30-
40 feet... It’s ongoing and going in seg-
ments,” retired Coast Guard Admiral
Thad Allen told a conference call to
update on the final stages of defini-
tively plugging the world’s worst off-
shore oil spill.
“We expect that sometime before
the end of the week we will be able to
intercept the annulus (space between
the well shaft and surrounding rock)
and commence the kill,” Allen added.
WORLD ECONOMY
which has hit marshes, fisheries and BY MARION DAKERS and 380 people per day,” said Andrei is fighting tooth and nail to keep
tourist beaches along the Gulf Coast. Seltsovsky, Moscow’s health depart- funding for those projects he thinks
SCORCHING heat and smoke have ment chief. “Today, we are around will boost economic growth. An aide
ANALYSIS l BP caused death rates in Moscow to 700.” said Cable thought the department
p
550 431.40 almost double, a city official said yes- While officials have predicted an had lots of “levers” to promote
9 Aug terday, as smog from forest and peat end to the fires within a week, growth, but insisted there was no ten-
500
fires covered Russia’s capital for a Muscovites have been warned to stay sion with the Treasury.
450 third week. indoors, and there have been reports
400
Firefighters battled wildfires cover- that morgues in the city have run out Chief secretary to the
ing an area bigger than Greater of room. Treasury Danny
350 London, in what the chief state weath- Russia’s worst drought in decades
er forecaster said he believed to be has also spooked world grain markets, Alexander has become
300 Russia’s worst heat wave for a millen- driving wheat prices up at the fastest the public face of
250
nium. rate in more than 30 years and raising spending cuts
19 May 9 Jun 29 Jun 19 Jul 6 Aug “The average death rate in the city the prospect of a food crisis.

Freddie Mac asks for a fresh $1.8bn

bailout as makes fourth loss in a row
FINANCIAL SERVICES es.The company lost $840m, or 26 from the seller/servicers, which
▲

BY HARRY BANKS
MORTGAGE lending giant Freddie
Mac is seeking $1.8bn (£1.1bn) in
aid from the US Government after
bad home loans prompted its
fourth consecutive quarterly loss.
Freddie Mac, the second largest
provider of funding for US residen-
tial mortgages, said it lost $6bn, or
$1.85 per share, in the April-to-June
period. The company is required to
pay a 10 per cent annual dividend
to the Treasury Department on
money it has received from the gov-
ernment. That made up $1.3bn of
the company’s second-quarter loss-
cents a share, in the same quarter
last year.
It is taking steps to speed the
pace of faulty loan repurchases by
lenders in an effort to more quickly
cut losses it bills to taxpayers.
The government-controlled com-
pany said $5.6bn in repurchase
requests had piled up as of 30 June,
with some 24 per cent of the obli-
gations outstanding more than 120
days. Three of the larger lenders
have had 24 per cent of their repur-
chase demands outstanding for
more than 120 days.
In the last six months, Freddie
Mac has clawed back about $2.7 bn
generally are lenders that sold
loans into its mortgage-backed
securities. Loan repurchases have
come into focus as Freddie Mac and
other financial institutions seek to
push losses onto lenders that made
mortgages that fell short of stated
terms as they were packaged into
US-supported mortgage bonds.
The push by Freddie Mac and
rival Fannie Mae is key for reducing
taxpayer-shouldered losses as both
companies have come to rely on
the government for their survival.n
In June, Freddie Mac was forced
to delist from the New York Stock
Exchange.

Southern Cross says it will miss profit forecast

HEALTHCARE cent of its value since the begin- lished homes fell in the third quar-
▲

BY HARRY BANKS
SHARES in Southern Cross Health
Care fell sharply yesterday after the
care-home operator says it will miss
analyst earnings forecasts for the
year as public sector spending is
scaled back.
Shares fell 2.4 per cent in the
first half-hour of trading, but pared
losses to close one per cent down at
31.25p. The stock has lost 78 per
ning of the year.
Investec analyst Sebastien Jantet
said says the main problem is occu-
pancy, as the group is not seeing
the usual seasonal uplift.
“There’s a lot of risk left in the
forecasts,” he said. “From an invest-
ment perspective, whether there’s
an equity value left in this is finely
balanced.”
The company said yesterday that
average occupancy in its estab-
ter, to 85.4 per cent from 87.5 per
cent a year ago, and it saw no recov-
ery in demand in the short term.
“Whilst the longer-term funda-
mentals for residential care remain
positive, the short-term outlook is
challenging as pressure grows to
reduce overall public sector spend-
ing,” the company said.
It now expected core earnings of
about £53m for the year, short of
an average of £61.14m expected.
CITYA.M. 10 AUGUST 2010
BT says sports
package has a
good take-up
▲
MEDIA
BY STEVE DINNEEN
FIRST blood was drawn by
Manchester United against bitter
rivals Chelsea in the new football sea-
son last weekend.
But a battle of equally epic propor-
tions is heating up off the pitch, with
BT claiming its new sports package,
which is significantly undercutting
Sky, is building momentum.
BT Vision chief executive Marc
Watson told City A.M. the number of
subscribers to its Sky Sports 1 and 2
offering is increasing exponentially
as the start of the league approaches.
“We don’t report numbers but the
volume of subscribers is building as
we get closer,” he said. “We have a
good mix of new and existing cus-
tomers signing up.”
The move into Premier League foot-
ball is the most significant yet by the
former state telecoms provider to
stem the flow of customers leaving its
services to join Sky.
With BT charging well below the
wholesale price levied by the broad-
caster, it will actually make a loss on
every customer who signs up, relying
on revenue from services such as
broadband and fixed line phone to
absorb the impact.
But Watson insists the move is vital
for BT to become a major player in the
TV market. “This is far from a short-
term strategy,” he said. “If we want to
succeed we have to be able to meas-
ure our customers in millions, not
thousands. We’re very confident this
is the right thing to do. It is all about
having the full spectrum of services
and we believe this puts BT on a great
footing.”
Commentators, however, are not so
sure. Ian Watt, analyst with Enders
Analysis, said: “It is a brave, aggressive
move but unfortunately for BT, Sky is
one of the most formidable players in
the pay-TV space anywhere in the
world. It will take more than a cheap
Sky Sports package for BT to catch up
with it.”
Sky has already seen off challenges from rivals
Setanta and ITV Digital, writes Steve Dinneen
B
T SAYS its sports offering is the
first step in an aggressive
expansion into pay-TV it hopes
will eat away at Sky’s domi-
nance of the market (at last count Sky
was tantalisingly close to 10m sub-
scribers, while BT is languishing with
less than 500,000). But BT would do
well to bear in mind the cautionary
tales of previous firms who tried to
take on the satellite giant.
ONdigital, launched in 1998 as one
Focus on BT
of the first digital TV offerings, ini-
tially involving a tie-up between Sky,
Carlton and Granada.
However, when Sky was forced to
withdraw from the consortium, it
was effectively placed in direct com-
petition with the venture, later
rebranded ITV Digital.
Despite regulators ensuring Sky
wholesaled its Sports package to its
rival, a blistering advertising drive by
the satellite broadcaster trumped its
11
BT Vision chief
executive Marc
Watson says
his service is
quickly gaining
subscribers
rival at every turn. ITV Digital
responded by buying the rights to
non-Premier League games but buck-
led under the weight and went into
administration in 2002.
Setanta was also forced out of busi-
ness in the UK last year after attempt-
ing to chip away at Sky’s dominance
of the Premier League market. After
launching a rival service it expanded
too quickly and was pulled under by
its mammoth costs.
 12 Property News
Quintain JV
sells offices
at Pier Walk
▲
PROPERTY
BY MARION DAKERS
REAL estate investor Quintain has
sold its Pier Walk development near
Canary Wharf to DekaBank,
Germany’s largest open-ended fund
manager, for £97.1m.
Quintain, which owned the seven-
story building at Greenwich
Peninsula in a joint venture with
Bovis Lend Lease, said the sale repre-
sents a six per cent uplift on the prop-
erty’s valuation in March and an
investment yield of 5.9 per cent.
Transport for London remains the
sole office occupant of the 198,000
square foot building, after taking out
a 20-year lease in August 2009, while
the retail units will be leased back to
the joint venture at no cost for 125
years.
As part of the deal, Quintain and
Bovis keep control of the seven retail
units on the ground floor, five of
which are shortly due to be let.
The sale is a boost for Quintain,
which posted a 1.5 per cent drop in
net asset value in June.
Quintain’s deputy chief executive
Nick Shattock said: “Following the
successful sale of The O2 last year, this
disposal at a price above valuation… is
another resounding endorsement of
the value to be realised at Greenwich
Peninsula, even in the early stages of
this transformational regeneration
scheme.”
The joint venture is one of three
businesses currently working to build
10,000 new homes and create 24,000
jobs in the Peninsula area.
Quintain has sold Pier Walk along with the lease of its sole tenant Transport for London
JOHN RIGG
SAVILLS
PROPERTY agent Savills acted for
Quintain and Lend Lease on the sale of
Pier Walk, the latest in a long line of
high profile deals for the firm. The
£160m sale of 10 Gresham Street to
Hammerson is one recent success, and
the team are currently busy marketing
JP Morgan’s headquarters on Gresham
Street, which has a £260m price tag.
John Rigg heads up the agent’s
international investment team, and
has been at Savills since 2001. He has
previously worked for the Middle
East branch of DTZ.
He worked with Jon Crossfield on
the Pier Walk sale – Savills’ expert in
German open-ended funds. Crossfield
worked for DTZ and Jones Lang
LaSalle before joining in 2002. He has
a Cambridge degree in land economy.
Simon Barrowcliff headed the
CBRE team acting as agents for pur-
chaser DekaBank. He joined the firm
in 1984 and has a focus on the West
End market. He is a keen mountaineer
and regularly visits the Alps.
Clifford Chance advised the ven-
dors on legal matters, while Simmons
& Simmons advised Deka.
Connaught shares continue to fall as
fears of a debt-for-equity swap build
PROPERTY
▲
BY MARION DAKERS
SHARES in embattled housing
maintenance firm Connaught
tanked again yesterday, as investors
reacted to last week’s warning of
“material losses” and talk of a debt-
for-equity swap.
The stock closed down 29 per
cent at 11p, after hitting a low of
just 9.2p earlier in the day. The 52-
week high for Connaught shares
stands at 448.3p.
“I think the market was slow to
react on Friday and I was surprised
the stock didn’t end lower,” said
one analyst.
Lack of funding poses threat to building work
PROPERTY
▲
BY HARRY BANKS
THE OUTLOOK for UK commercial
development activity over the next
three months turned negative for
the first time since July 2009, hit by
a lack of funding and concern over
public sector demand, a report
published yesterday found.
Developers surveyed last month
feel most pessimistic about new
building activity for offices, fol-
Office demand
drives Morgan
Sindall profit
PROPERTY
▲
BY MARION DAKERS
CONSTRUCTION group Morgan
Sindall said growing demand for office
space was helping to offset the impact
of government spending cuts,
although the construction recession
was not over yet.
“The commercial side is growing,
but let’s not over exaggerate – it’s
growing a bit but not as quickly as
governments are spending less,” said
executive chairman John Morgan.
Morgan told City A.M. public sector
contracts have fallen from 60 to 50
per cent of total work this year, with a
further drop to 40 per cent expected.
When asked whether private con-
tracts will cover the drop, Morgan
said: “It will make up some of it, but
not all… It’s probably going to make
up about half the difference.”
The group posted a three per cent
fall in first half pre-tax profit to
£23.1m yesterday, on the back of rev-
enue down 14 per cent to £980m.
It maintained the interim dividend
at 12p per share and increased its net
cash balance 55 per cent to £128m.
“Our figures came in as expected,”
said Morgan. “Conditions are difficult
out there but we have done better
than most because of our size and
expertise.”
The company said demand for
He added: “When a company,
which has lost around £200m in
value, is also making serious under-
lying losses it is very worrying.”
The troubled firm is in talks
with creditors including Royal
Bank of Scotland over a long-term
financing deal, after delivering a
spate of profit warnings in recent
months.
Insiders believe a debt-for-equity
swap is the most likely outcome,
which could all but wipe out
investors and hand control to
lenders.
“A rights issue is out of the ques-
tion and a swap is all that is left,
but it’s hard to know if that will
lowed by retail and leisure proper-
ties, consultancy Savills’ Total
Commercial Development Activity
Index showed yesterday.
“A general collapse in expecta-
tions for the UK economy on the
back of public sector austerity has
clearly washed over into the devel-
opment market,” Michael Pillow,
head of building consultancy at
Savills, said.
The government has vowed to
slash spending in a bid to drive
CITYA.M. 10 AUGUST 2010
office space was being driven by
financial firms in London, and that
its fit out business had seen revenue
increase 12 per cent to £179m.
The firm’s affordable housing divi-
sion Lovell remained largely flat with
revenue of £173m, but the firm said
demand remains robust despite con-
tinued difficulties for customers
obtaining mortgages. It expanded in
June by purchasing maintenance
firm Powerminster.
Morgan said the firm could benefit
from the woes of housing mainte-
nance firm Connaught.
“We’ve added half a billion pounds
to the order book since the start of
the year, cash flow is significantly
ahead and we’re seeing a lot of new
opportunities. The future is about
hard graft for the next couple of years
and improving market share,”
Morgan added yesterday.
ANALYSIS l Morgan Sindall
p
600 570.00
9 Aug
580
560
540
520
500
480
19 May 9 Jun 29 Jun 19 Jul 6 Aug
even happen,” said the analyst.
“It could sell its compliance busi-
ness but with doubts about what
shape it is in and the fact
Connaught is a distressed seller
you don’t know what it will fetch.”
ANALYSIS l Connaught
p
350
300 11.00
9 Aug
250
200
150
100
50
19 May 9 Jun 29 Jun 19 Jul
down its deficit, compounding the
grief in a sector already reeling
from the size of its unpaid com-
mercial mortgages and the reluc-
tance of banks to lend more.
“We expect to see further cau-
tion about the future until the full
details of the spending review are
announced in October,” Pillow said,
adding the index showed firms on
balance expect growth in the
industrial and warehouse sectors
however.
The Capitalist EDITED BY 13
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

THE CITY’S GOT TALENT: THE HUNKIEST GENTS IN FINANCE

. RICKY CHAPMAN

1
ANTHONY ASTBURY,
GFI GROUP
Environmental markets broker
Anthony takes the crown in the sec-
ond annual round-up of the City’s
8 ERNST & YOUNG
A volley of praise came in for this
cheeky chappie, who works for
Ernst & Young as an insurance sector
account coordinator. I’m told Ricky
hunkiest gents, voted for by your good lives for the summer, with his sultry
selves and judged by a panel of terribly Hispanic colouring, and has a “heart of
dedicated City A.M.ers. gold and a wicked sense of humour” –
A keen sportsman, who boxes, skis an attractive set of accolades indeed.
and plays football when he’s not jetting
around Europe meeting clients,
Anthony has been at GFI for three years.
In keeping with his elevation onto
the City’s Got Talent pedestal, he’s also MATTHEW ALLEN
a former model of sorts. I hear our man
was once picked as one of just ten gen-
tlemen to model Joop underwear at a
Cosmopolitan magazine party, and his
gleaming torso later graced the pages of . GUY DE BLONAY
9 EVERSHEDS
The legal eagles have managed to
make it onto the leaderboard this
year for the first time in the form of
Eversheds partner Matthew Allen.
the saucy rag.

GEORGE GODBER
2 JUPITER
You readers are a fickle lot,
meaning that Guy is the only
man to make it back onto the list
from last year. He’s returned with
Matthew leads the financial services
dispute resolution team and has acted for
a sparkling roster of clients, including
Schroders and Hermes Fund Managers.

3 MATTERLEY
Gorgeous George is another one
flying the flag for fund managers.
He moved from Credit Suisse to co-
found Matterley in 2008, later selling it
on to Charles Stanley. Outside work he
is an ardent fan of Northamptonshire
Rugby Club and a keen golfer (though
ladies, don’t let his passion for stamp
collecting put you off…)
good reason, though: the Jupiter
fund manager’s heady mix of dash-
ing good looks and softly-spoken . JAMES HICKMAN
Swiss vowels turns the ladies posi-
tively weak at the knees. Throw in an
ancestral castle – his family owns
the impressive-sounding Chateau de
Blonay near Geneva in Switzerland –
10 CAXTON FX
Officially the steamiest char-
acter in the forex space, James
worked as an investment manager at
Williams de Broe and Brewin Dolphin
and his position on the hot list is eas- before joining Caxton FX seven years
ily secured. ago. Part of his charm is that he’s also a
family man with three young children
– which always makes the ladies melt.

. ALEX ODWELL . ADAM LAWSON

4 HARRINGTON STARR
Hunky Alex is one of the founders
of recruiter Harrington Starr. His
sporting career has also been illustrious
– he was previously a professional foot-
6 ARBUTHNOT
Don’t let the decidedly un-glitzy
“smaller company analyst” job title
fool you: Adam has certainly upped the
temperature over at Arbuthnot
SILVER FOX AWARD
JOHN HARRISON
baller in the US for Chicago Fire and Securities since joining the stockbroker NUMIS
also enjoys white collar boxing, follow- as an analyst last year. He previously A new award this year, espe-
ing in the footsteps of his father, who worked in a similar role over at cially for the City’s older gen-
once represented GB at the Olympics. Teathers/Landsbanki. tlemen. At 62, John
Harrison is the oldest per-
son at Numis, yet he’s also
one of the ladies’
. TOM BASSET JOSH LEWSEY favourites. Nicknamed

5 DELOITTE
Corporate finance manager Tom
is another outdoorsy type to make
it into this year’s hotlist, as a keen win-
ter sports and hiking enthusiast. He
7 PRICEWATERHOUSECOOPERS
Ladies over at PwC have had a
spring in their step ever since
hunky ex-England rugby star Josh
Lewsey joined their ranks. Josh, who
“Commander Bond” in the
office for his dashing good
looks and dapper style, he
also earned himself an
amusing moniker back in
spent the first year of his City career as luckily managed to escape the dreaded his Lloyds days, when he was
an analyst at Goldman before moving “cauliflower ear” as a glamour boy in known as “the tailor’s
to Deloitte, where he works for a range the back line, is now a senior consultant dummy”. A worthy winner of the
of private equity and corporate clients. at the beancounting house. inaugural silver fox trophy.

Whole Native Lobster & Chips

£24.50
With A Glass Of J&B NV Champagne

Subject to availability until 16th August

Celebrating Justerini & Brooks 250th Anniversary

Boisdale of Belgravia - Boisdale of Bishopsgate - The Lamb at Hindon
15 Eccleston Street, Swedeland Court, Hindon near Salisbury,
London, SW1W 9LX 202 Bishopsgate Wiltshire, SP3 6DP
020 7730 6922 London, EC2M 4NR 01747 820 573
020 7283 1763

www.boisdale.co.uk
 14 News CITYA.M. 10 AUGUST 2010

United Carpets sees profit M&B PULLS OUT OF HOLLYWOOD

soar but slowdown looming

er have made for an exceptionally offer through a series of planned
▲

CONSUMER
BY HARRY BANKS
UNITED Carpets’ pre-tax profits
surged by 84.5 per cent to £1.1m in
the year to 31 March.
However, trading has weakened
with like-for-like sales in carpets
falling 2.6 per cent in the past 17
weeks.
The retailer said it was affected by
“the World Cup, the general election
and subsequent Budget which togeth-
tough trading period”.
In the full year, revenue grew 2.5
per cent to £27.5m. Network sales,
which include the retailers’ fran-
chised stores, increased 7.4 per cent to
£69.9m. Gross margin increased from
64.0 per cent to 66.2 per cent reflect-
ing the “increased proportion of fran-
chise related income to total
revenue”.
United Carpets said it “continued
to differentiate the United Carpets
advertising campaigns” in the full
year period. The 82-store retailer
opened two new shops in the period.
Chief executive Paul Eyre said:
“Sales of flooring and beds remained
stable during the period under
review which resulted in a good per-
formance for the year.”
Eyre added: “However, the market
environment remains challenging,
with little improvement in volume
across the housing market.”
£39m 24 33 2,000

POLO
the number of the number of the number of
Total price tag for bowling alleys AMF
Hollywood Bowl Hollywood Bowls outlets M&B
in the group already owns has in the UK

M&B is offloading its “non core” businesses Picture: ALAMY

INVITATIONAL M&B to sell

CVs INFANTRY
HAC
AC
bowling firm
in £39m deal
our market-leading growth brands.”
▲

LEISURE
BY JOHN DUNNE
PUBS and restaurants group Mitchells
& Butlers is offloading its Hollywood
Bowl ten-pin bowling business to rival
AMF Bowling for £39m.
AMF will add Hollywood Bowl’s 24
sites to its existing 33 UK bowling cen-
tres. M&B is selling non-core business-
es to focus on its pub operations,
which include Harvester, Toby
Carvery, Vintage Inns and O’Neill’s.
Last month, M&B said its rate of
sales growth slowed in June and July
istockphoto.com artist: isaxar. as food sales fell during the World
M&B has focused its business on its
food offering since smoking bans
were introduced in 2006 and 2007.
In a note, broker Panmure Gordon
suggests the money raised from these
pubs will allow M&B to reinstate its
dividend to shareholders as well as
provide the capital needed to deliver
on the group’s plans to grow its food
led brands.
Former Debenhams chairman
John Lovering took over as M&B chair-
man earlier in the year.
ANALYSIS l Mitchells & Butlers


 +!

Cup. In July, the pub group said it was 330
p 324.60
making good progress towards 9 Aug
achieving its objectives for the year. 320
The £39m sale of the bowling busi- 310
% '$' $,
"!%'&  
 ness is made up of £27m for the
Hollywood Bowl and another £12m 300

+ (&   for four freehold properties.

Mitchells chief executive Adam
290

Fowle said: “This further disposal of 280

"#+* /
!"$)& /
&) 0* ' )

non-core assets is another important
step towards focusing the business on 10 May 28 May 18 Jun 8 Jul 28 Jul

,)!* &$"&
...-&+$(!&+'%!('$'"&-"++"'&$ 
)'* ' +' ! 
 &-'$&+ ,&
Portmeirion boosted as Koreans
snap up its patterned ceramics
▲
CONSUMER
POTTERY group Portmeirion saw its
profit surge by 88 per cent as its sales
in Korea and the US took off.
The Spode and Royal Worcester
brands the company bought helped
to fuel the rise with revenues up 24
per cent to £21m.
Chairman Dick Steele said half the
sales rise came from the acquired
brands and half from existing
Portmeirion patterns.
The group’s sales are skewed to the
second half of the year as, in particu-
lar, US shoppers stock up on Spode’s
Christmas tree pattern.
Steele said: “We sell very well in the
US and Korea. But the type of product
that sells well differs. In Korea very
ornate patterns sell well while in the
UK more plain items are popular. In
the US, it’s the Christmas patterns
they want.”
CITYA.M. 10 AUGUST 2010 News 15

ECB concerned
Watchdog will over new bank
look at NAB’s capital rules

$12bn Axa buy

BANKING

▲
THE European Central Bank (ECB) yes-
terday said planned changes to capi-
tal requirement rules could make it
too easy for banks to offload risky
NAB’s chief execu- assets on the ECB .
tive Cameron The new plans, which should come
▲

BANKING
BY HARRY BANKS
AUSTRALIA’S competition regulator
agreed to consult the market on
National Australia Bank’s proposals
to salvage its $12bn (£7.5bn) takeover
of Axa Asia Pacific, giving it a glim-
mer of hope the deal would succeed.
The Australian Competition and
Consumer Commission (ACCC) said
yesterday it hoped to rule on the
undertakings or some proposed asset
sales by 9 September.
Axa and NAB said in a statement
they had agreed to extend the period
for transaction documents until 9
September to enable the ACCC to “sat-
isfy concerns” it raised.
NAB is hoping its revised offer will
ease the concerns of the regulator,
which rejected its original proposal
in April, and it will then be able to
wrap up the long-awaited deal to
secure its dominance in the fast grow-
ing $1 trillion Australian wealth man-
agement market, the world’s fourth
largest.
The regulator’s announcement
ends weeks of speculation over
whether NAB will be able to ease the
opposition of the regulator to the
deal. Market rumors reached such
heights that Axa Asia, a unit of
France’s Axa, asked for a halt in the
trading of its shares last Thursday.
With the regulator’s move, analysts
predicted NAB, Axa Asia Pacific and
Axa would extend their agreement
beyond its 31 August expiry date.
“This indicates the deal is back in
play and NAB is not too far off the
mark as previously thought. Can it
pull off the deal? It is still a toss of the
coin but the tilt is now toward NAB,”
said Angus Gluskie, chief investment
officer at White Funds Management,
which owns NAB and AMP shares.
The ACCC blocked the original deal
citing competition worries in the
retail investment platform market --
an internet portal that binds the
wealth manager with the customer --
and said it favoured a now lapsed
takeover deal by second biggest
wealth manager AMP.
Clyne
Picture: REUTERS
Warren Lee heads Axa in Australia and New Zealand
into force next year, are designed to
strengthen banks’ capital in order to
help avert a repeat of the financial cri-
sis. However, the ECB warned that def-
initions of what can be classed as
appropriate capital could allow com-
mercial banks to dump risky assets,
such as asset backed securities (ABS),
on the Eurozone.
“A possible consequence of the pro-
posed directive could be to provide
strong incentives for monetary policy
counterparties to package their ABS
into the cover pool of such covered
bonds, thereby obtaining more
favourable treatment, to the detri-
ment of the Eurosystem’s risk expo-
sure,” the ECB said in a legal opinion.
It also criticised plans to scrap a
requirement for banks to have top
notch ratings on covered bonds. “This
could further undermine the credibil-
ity and transparency of the covered
bonds market and, ultimately, have
consequences for financial stability,”
it said, adding that a rating require-
ment should be reinserted into the
rules.

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 16 News
NewsCorp drops China stake
Capital is a private equity fund with
▲
MEDIA
5bn yuan (£463m) in assets under
BY HARRY BANKS management and a focus on invest-
RUPERT Murdoch’s News Corp said ments in the media industry.
yesterday that it will sell control of its It is backed by Shanghai Media
three Chinese TV channels to a fund Group (SMG), the dominant player in
backed by China’s second-largest Shanghai, as well as China
media company, in a pullback from Development Bank and China
the market after years of difficulty. Broadband Capital.
The deal would see China Media The move could mark the begin-
Capital acquire a controlling stake in ning of a wind down for News Corp in
News Corp’s Xing Kong, Xing Kong China’s tightly controlled media mar-
International and Channel Mainland ket, which has proved highly frustrat-
China channels, along with its ing to the company and its Western
Fortune Star Chinese movie library, peers after numerous limitations and
News Corp said in a statement. restrictions by Beijing.
Established in 2009, China Media The terms of the deal were not dis-
Quarterly loss
for Chrysler
as sales flag
show a profit. Ford posted a $2.6bn
▲
AUTOMOTIVE
(£1.6bn) second-quarter profit.
BY HARRY BANKS Chrysler said it still expected to at
CHRYSLER Group posted a quarterly least break even on an operating basis
net loss on yesterday, underscoring in 2010, but it was likely to raise that
the pressure on the smallest US outlook when it announces third-
automaker from a slack economy and quarter results.
an aging product line-up. Ron Bloom, the US Treasury official
The carmaker, which plans an IPO overseeing the government’s invest-
next year, saw US sales growth of 12 ment in the auto sector, said last week
per cent in the first half of the year, that Chrysler was ahead of where the
lagging the industry’s nearly 17 per White House-appointed autos task
cent growth for the same period. force had expected at this point.
Chrysler chief executive Sergio Officials have previously said the
Marchionne said the automaker had Obama administration was divided
an “extraordinary amount of work” over the question of whether Chrysler
left to do as part of its turnaround but could be successfully turned around,
said its restructuring was on track. but gave it a bailout to save jobs and
Chrysler, which emerged from a US- prevent a cascade of failures among
government supported bankruptcy in suppliers.
June 2009 under the management The third-largest US automaker said
control of Italy’s Fiat, said it could its net loss narrowed to $172m in the
raise its financial outlook later this second quarter from $197m in the
year. first quarter. The year-earlier quarter
Chrysler’s rival General Motors included only a few weeks of the oper-
(GM), which was also restructured in a ations of the new Chrysler. Revenue
government-funded bankruptcy, is rose eight per cent to $10.5bn in the
preparing for an IPO possibly later in second quarter from the first three
2010. GM will report second-quarter months of 2010. Operating profit rose
results on Thursday and is expected to $40m from the first quarter to $183m.
CITY MOVES | WHO’S SWITCHING JOBS
Rosenblatt Solicitors
The City law firm has hired James Klein as a
corporate partner, effective from 1 September.
Klein joins from Berwin Leighton Paisner,
where he was a corporate finance partner
focusing in particular on the technology.
He has a wide range of experience on merg-
ers and acquisitions, private equity and venture
capital issues and has also co-headed the cor-
porate department at Arnold & Porter and
worked at DLA Piper.
Nomura Securities Foran moves over from Goldman
Brian Foran is to join the Japanese Sachs, where he was a senior analyst
bank’s US equity research department covering mid-cap banks, trust banks
as a managing director and senior ana- and specialty finance.
lyst covering the banks sector. He will work closely with Glenn
To appear in CITYMOVES please email your career
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
updates and pictures to citymoves@cityam.com
closed, but the three channels com-
bined were generating no more than
$50m (£31.4m) annually in revenue at
the time of the deal, said Vivek Couto,
a media analyst at Media Partners
Asia.
“News Corp, after two decades in
China, has done the inevitable in the
last few years,” Couto said. “They see
the best option to grow in the market
is to make sure the business is in con-
trol of local hands.”
News Corp and global rivals like
Time Warner and Viacom held out
great hopes for China when they
launched TV channels there starting
in the late 1990s.
BEST OF THE BROKERS
ANALYSIS l Meggitt
330 p 285.30
9 Aug
320
310
300
290
280
270
19 May 9 Jun 29 Jun 19 Jul 6 Aug
MEGGITT
Citi reiterates its “buy” rating on Meggitt
saying its recent share price weakness is
overdone. Acknowledges that first-half
sales were disappointing, but is confident
of a second-half recovery. Notes also that
first half margins were significantly better
than expected, and that cost-cutting contin-
ues. “Valuation remains compelling,” it says.
BMW brand sales leap 12pc on China
▲
AUTOMOTIVE
BMW, the world’s biggest premium
car maker, increased sales volumes of
its flagship BMW brand by 12 per
cent in July thanks largely to soaring
demand in China.
“Sales increased for the eleventh
straight month since September
2009. We also expect our sales per-
formance to remain strong over the
coming months,” said Ian Robertson,
Edited by Victoria Bates
Schorr, who covers brokers and asset
managers for Nomura.
T. Rowe Price
The investment management firm has
appointed Andrew Clifton as a
European equity portfolio specialist
based in London.
Clifton will be responsible for cover-
ing European core equity, European
structured research equity and
European smaller companies equity
strategies for clients and prospects.
He was formerly an equity strategist
at UBS Global Asset Management.
JP Morgan
JP Morgan Private Bank has appointed
Georgina Gordon to its UK domestic
Generics assault on key
drug hits profits for King
▲
PHARMACEUTICALS
KING Pharmaceuticals’ quarterly
profit was cut in half as sales of its
muscle-relaxant drug Skelaxin
plunged 95 per cent due to generic
competition, but overall results
slightly topped expectations yester-
day.
The company reported net income
of $18m (£11.3m), or seven cents per
share. That compared to $37.9m, or 15
cents per share in the year-earlier
period.
ANALYSIS l RBS
54 p
52
50.35
9 Aug
50
48
46
44
42
40
38
19 May 9 Jun 29 Jun 19 Jul 6 Aug
RBS
Morgan Stanley reiterates its “equal-
weight” rating on RBS, saying it was reas-
sured by last week’s results which it says
marked a “solid quarter”. Believes the risks
for shareholders are steadily reducing as
retail and commercial banking makes up
for the weaker performance of investment
banking. Prefers RBS to Lloyds on valuation.
To appear in Best of the Brokers email your research to notes@cityam.com
head of group sales and marketing, in
a statement yesterday.
He reaffirmed guidance for vol-
umes to rise by about 10 per cent this
year to over 1.4m vehicles.
A breakdown of BMW’s main mar-
kets showed a 10.1 per cent increase
in US sales and a leap of 52.1 per cent
in Asia, owing to sustained demand
in China.
Starting in September, BMW will
receive a boost from new model
in association with
team, led by Richard Madeley.
Based in London, Gordon will focus
on developing the bank’s business in the
Channel Islands and the Isle of Man.
Prior to joining JP Morgan, she was a
portfolio manager at GAM Holdings,
where she managed a global client base
of high net worth individuals, trusts,
charities and pension schemes. She has
also previously worked at Close Private
Asset Management.
Sara Lee
The consumer group said yesterday
that chairman and chief executive
Brenda Barnes will be stepping down
permanently from her roles in order to
focus on improving her health.
Barnes had been on medical leave
CITYA.M. 10 AUGUST 2010
Excluding special items, the drug-
maker earned 17 cents per share.
Analysts on average expected 16 cents
per share.
King’s revenue fell almost 17 per
cent to $371m, hurt by recent intro-
duction of two generic versions of
Skelaxin, King’s longtime biggest
product. But company revenue came
in about $10m above Wall Street
expectations. The quarterly results
graphically illustrated just how devas-
tating generic competitors can be to
branded drugs.
ANALYSIS l Rolls-Royce 563.00
620 p 9 Aug
600
580
560
540
520
19 May 9 Jun 29 Jun 19 Jul 6 Aug
ROLLS-ROYCE
Investec reiterates its “buy” rating on Rolls-
Royce following its recent results which it
says indicate the group is returning to
growth. Notes the share have drifted eight
per cent lower since the results, and calcu-
lates they are trading at under 13 times
2011 earnings per share. Expects civil aero-
space to see upside of 5-15 per cent.
launches including the 5 Series
Touring estate, the long wheelbase
version of the 5 Series for China, the
second generation X3 and the Mini
Countryman.
Orders for Mini’s all new SUV are
already well over plan, according to
the company. Sales of Rolls-Royce
jumped five-fold to 251 cars thanks to
the new, smaller Ghost.
Shares of BMW gained 0.6 per cent
in Frankfurt trading.
since 14 May after suffering a stroke.
The board said it had started a
process to select a new chief executive,
looking at both internal and external
candidates. Marcel Smits will continue
as interim chief executive and Mark
Garvey as interim chief financial officer.
Southern Bear
The industrial and support services
group has hired Neil Chapman and
Christopher Arnott as non-executive
directors.
The pair, aged 41 and 37 respective-
ly, previously founded specialist fire and
corrosion protection company
Intumescent Protective Coatings
(IPCL), which was acquired by
Southern Bear last December.
+44 (0)20 7557 7245
morganmckinley.com
 Markets&Investment 17

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 . . . . . . . . . . . . . . . . . . . . . . . .287.30 +2.90 314.80 246.90 Compass . . . . . . . . . . . . . . . . . .533.50 +7.00 574.50 308.10 ITV . . . . . . . . . . . . . . . . . . . . . . . .53.45 +2.00 71.75 40.34 Sage . . . . . . . . . . . . . . . . . . . . . .244.20 +4.00 260.50 199.50
3i Infrastructure . . . . . . . . . . . . . 112.00 +0.30 115.00 89.35 Cookson . . . . . . . . . . . . . . . . . . .487.70 +3.30 616.00 347.60 Jardine Lloyd Thompson. . . . . . .592.50 +8.00 604.50 420.70 Sainsbury(J) . . . . . . . . . . . . . . . .354.30 +7.30 373.00 307.60
A.B. Foods . . . . . . . . . . . . . . . .1037.00 +22.00 1096.00 785.50 Croda Intl . . . . . . . . . . . . . . . . .1320.00 +8.00 1355.00 581.00 Johnson Matthey . . . . . . . . . . .1733.00 +23.00 1814.00 1302.00 Schroders . . . . . . . . . . . . . . . . .1429.00 +58.00 1450.00 957.00
Aberdeen Asset Man . . . . . . . . . .140.50 +2.60 155.60 111.00 CSR . . . . . . . . . . . . . . . . . . . . . .336.10 –0.50 524.00 333.70 JPMorgan Emerg Mkts . . . . . . . .529.00 +6.00 549.00 395.10 Schroders N/V. . . . . . . . . . . . . . 1164.00 +44.00 1185.00 804.50
Admiral. . . . . . . . . . . . . . . . . . .1506.00 +19.00 1520.00 965.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .503.00 +3.30 539.00 328.10 Kazakhmys . . . . . . . . . . . . . . . .1273.00 +5.00 1634.00 803.50 Scot. & Sthrn Energy. . . . . . . . . 1145.00* +22.00 1206.00 357.50
Aegis . . . . . . . . . . . . . . . . . . . . . 119.40 +2.30 137.30 88.50 Dana Petroleum . . . . . . . . . . . .1712.00 +4.00 1729.00 968.50 Kesa Electricals . . . . . . . . . . . . .132.90 –1.10 162.00 98.45
Afren . . . . . . . . . . . . . . . . . . . . . .98.05 +1.10 111.00 52.50 Davis Service . . . . . . . . . . . . . . .393.30 +4.30 442.30 354.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .214.60 +2.50 255.00 196.50 Scottish Mortgage. . . . . . . . . . . .597.00 +8.00 623.50 439.70
African Barr Gold . . . . . . . . . . . .558.00 –10.00 685.00 520.50 De La Rue . . . . . . . . . . . . . . . . . .797.00 +4.00 1021.00 725.50 Ladbrokes . . . . . . . . . . . . . . . . .145.80 +1.20 174.29 114.60 SEGRO . . . . . . . . . . . . . . . . . . . .276.70 +2.70 403.10 244.00
Aggreko . . . . . . . . . . . . . . . . . .1577.00 +14.00 1639.00 558.50 Debenhams . . . . . . . . . . . . . . . . .62.70 +0.65 91.65 51.95 Lancashire Hldgs . . . . . . . . . . . .517.00 +1.00 545.00 416.70 Serco . . . . . . . . . . . . . . . . . . . . .547.50 +5.00 656.50 394.60
Alliance Trust . . . . . . . . . . . . . . .321.70 +5.10 352.70 281.00 Derwent London . . . . . . . . . . . .1399.00 +21.00 1490.00 1000.00 Land Securities . . . . . . . . . . . . . .620.50 +5.50 743.50 543.00 Severn Trent . . . . . . . . . . . . . . .1338.00 +7.00 1358.00 929.50
AMEC . . . . . . . . . . . . . . . . . . . . .913.00 +4.00 937.00 693.50 Dexion Absolute . . . . . . . . . . . . .137.30 +6.10 148.00 121.10 Legal & General . . . . . . . . . . . . . .90.25 +3.15 94.70 61.50 Shaftesbury . . . . . . . . . . . . . . . .407.90 +3.30 426.50 341.70
Amlin . . . . . . . . . . . . . . . . . . . . .428.70 +3.60 436.20 336.30 Diageo . . . . . . . . . . . . . . . . . . . 1105.00 +26.00 1176.00 916.00 Lloyds Banking Gp . . . . . . . . . . . .74.98 +1.26 77.61 45.30 Shire. . . . . . . . . . . . . . . . . . . . .1471.00 +27.00 1526.00 948.50
Anglo American . . . . . . . . . . . .2534.00 +3.00 3015.50 1777.50 Dimension Data . . . . . . . . . . . . .122.50 +1.40 125.50 55.00 Logica . . . . . . . . . . . . . . . . . . . . 118.90 +2.80 149.10 100.80 Smith & Nephew . . . . . . . . . . . . .570.50 +4.00 700.50 464.10
Antofagasta . . . . . . . . . . . . . . .1047.00 +22.00 1100.00 680.00 Domino’s Pizza . . . . . . . . . . . . . .420.70* +4.80 431.30 229.00 London Stk Exchange . . . . . . . . .664.50* +8.50 949.50 540.50 Smith(Ds) . . . . . . . . . . . . . . . . . .144.00 +1.80 150.20 75.90
Aquarius Platinum . . . . . . . . . . .273.50 +4.70 490.00 211.50 Drax . . . . . . . . . . . . . . . . . . . . . .388.00 +3.10 496.50 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1590.00 +33.00 2198.00 1330.00 Smiths . . . . . . . . . . . . . . . . . . . 1124.00 +17.00 1186.00 764.00
ARM Holdings . . . . . . . . . . . . . . .318.20 +2.20 370.00 120.50 DSG Intl . . . . . . . . . . . . . . . . . . . .27.05 +0.14 39.75 23.32 Man . . . . . . . . . . . . . . . . . . . . . .226.60 +0.10 373.60 199.60 SOCO Intl . . . . . . . . . . . . . . . . . .465.70 +8.30 476.60 380.60
Arriva . . . . . . . . . . . . . . . . . . . . .772.00 +1.00 782.50 428.20 Dunelm . . . . . . . . . . . . . . . . . . . .391.90 +0.30 438.40 250.70 Marks & Spencer. . . . . . . . . . . . .347.80 +4.30 412.70 321.90 Spectris . . . . . . . . . . . . . . . . . . .931.50 +16.00 949.00 556.50
Ashmore . . . . . . . . . . . . . . . . . . .286.00 +4.10 311.20 211.60 Easyjet . . . . . . . . . . . . . . . . . . . .392.50 +1.90 499.90 308.30 Meggitt . . . . . . . . . . . . . . . . . . . .285.30 +7.20 331.00 189.90
Astrazeneca . . . . . . . . . . . . . . .3305.00* +50.00 3376.00 2668.00 Edinburgh Inv Tst . . . . . . . . . . . .405.90 +8.00 412.40 315.60 Melrose . . . . . . . . . . . . . . . . . . .234.90 +6.30 251.50 122.90 Spirax-Sarco Eng . . . . . . . . . . .1559.00 +13.00 1617.00 929.00
Atkins(Ws) . . . . . . . . . . . . . . . . .790.00 +7.00 801.00 532.50 Electrocomponents . . . . . . . . . . .222.50 +7.50 245.00 142.90 Mercantile IT . . . . . . . . . . . . . . . .972.00 +14.50 1002.00 822.50 Spirent Comms . . . . . . . . . . . . . .132.80 +7.80 135.90 68.55
Autonomy Corp . . . . . . . . . . . .1649.00 +14.00 2012.00 1195.00 EnQuest . . . . . . . . . . . . . . . . . . . 110.30 +0.10 121.40 87.35 Michael Page Intl. . . . . . . . . . . . .402.50 +1.30 461.50 289.10 SSL Intl . . . . . . . . . . . . . . . . . . . 1164.00* +2.00 1190.00 522.50
Aveva . . . . . . . . . . . . . . . . . . . .1359.00 +5.00 1375.00 805.00 Essar Energy . . . . . . . . . . . . . . .414.30 +6.60 475.90 358.50 Micro Focus . . . . . . . . . . . . . . . .421.70 +0.20 550.00 300.90 St James’s Place . . . . . . . . . . . . .289.00* +19.00 296.90 193.00
Aviva . . . . . . . . . . . . . . . . . . . . .390.00 +8.30 474.00 290.20 Eurasian Nat Res . . . . . . . . . . . .982.00 –5.50 1276.00 731.00 Millen & Copthorne . . . . . . . . . . .501.00 +11.00 514.50 297.90 Stagecoach. . . . . . . . . . . . . . . . .170.40 +0.10 204.90 126.20
Babcock International . . . . . . . . .564.50 +32.00 660.50 459.80 Euromoney Inst Inv . . . . . . . . . . .617.00 +2.00 630.00 245.00 Misys . . . . . . . . . . . . . . . . . . . . .265.00 +3.20 281.70 173.90 Standard Chartered . . . . . . . . . .1846.00 +28.00 1927.00 1340.00
BAE Systems . . . . . . . . . . . . . . .324.60 +4.60 389.90 294.20 Experian . . . . . . . . . . . . . . . . . . .631.50 +8.00 664.50 489.00 Mitchells & Butlers . . . . . . . . . . .324.60 +1.80 343.90 228.30 Standard Life . . . . . . . . . . . . . . .215.20 +2.50 237.00 170.00
Balfour Beatty . . . . . . . . . . . . . . .267.80 +2.50 328.85 228.60 F&C Comm Prop . . . . . . . . . . . . . .92.50 +0.55 96.80 79.00 MITIE . . . . . . . . . . . . . . . . . . . . .209.80* –1.50 281.70 195.20 SuperGrp . . . . . . . . . . . . . . . . . .987.50 +47.00 1030.00 499.00
Barclays . . . . . . . . . . . . . . . . . . .335.00 +10.40 394.25 253.40 Ferrexpo . . . . . . . . . . . . . . . . . . .309.30 +2.30 396.20 138.00 Mondi . . . . . . . . . . . . . . . . . . . . .479.70 +10.20 488.00 262.30 TalkTalk . . . . . . . . . . . . . . . . . . .127.90 +1.40 147.10 106.60
Barratt Development . . . . . . . . . .107.20 +2.60 193.31 89.10 FirstGroup . . . . . . . . . . . . . . . . .373.30* +2.10 448.80 331.20 Monks Inv Tst . . . . . . . . . . . . . . .295.90* +3.10 321.20 240.00 Talvivaara Mining . . . . . . . . . . . .432.70 +6.00 501.50 341.40
BBA Aviation . . . . . . . . . . . . . . .201.60 –0.40 220.00 136.60 Foreign & Col Inv Tst. . . . . . . . . .277.40 +9.40 297.20 229.50 Morrison Wm . . . . . . . . . . . . . . .278.50 +6.10 306.30 255.00 Tate & Lyle . . . . . . . . . . . . . . . . .450.40 +5.50 509.00 362.00
Bellway. . . . . . . . . . . . . . . . . . . .638.00 +7.00 927.50 554.00 Fresnillo . . . . . . . . . . . . . . . . . .1075.00 +18.00 1139.00 539.50 Murray Intl Tst . . . . . . . . . . . . . . .860.50* +9.00 893.50 632.00 Taylor Wimpey . . . . . . . . . . . . . . .32.16 +0.78 54.90 24.29
Berkeley . . . . . . . . . . . . . . . . . . .827.50 +3.00 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .263.50 +3.80 285.70 208.50 National Express. . . . . . . . . . . . .238.70 +1.60 258.60 155.86
BG . . . . . . . . . . . . . . . . . . . . . .1019.50* +14.50 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .474.80 +1.80 484.00 370.00 National Grid . . . . . . . . . . . . . . .539.00* +11.50 607.65 474.80 Telecity . . . . . . . . . . . . . . . . . . . .435.80 +6.80 458.90 310.80
BHP Billiton . . . . . . . . . . . . . . .2038.50 +16.50 2346.00 1481.00 GKN . . . . . . . . . . . . . . . . . . . . . .148.10 +3.10 155.00 100.20 Next . . . . . . . . . . . . . . . . . . . . .2048.00 +34.00 2360.00 1601.00 Templeton Emrg Mkts . . . . . . . . .546.50 +6.50 598.00 390.00
BlackRock Mining . . . . . . . . . . . .586.00 +8.50 654.50 413.00 GlaxoSmithKline . . . . . . . . . . . . 1152.00* +19.50 1347.00 1088.00 Northumbrian Water . . . . . . . . . .338.80 +7.70 341.30 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .404.50 +4.55 454.90 361.20
Booker . . . . . . . . . . . . . . . . . . . . .44.12 –0.30 49.50 33.00 Great Portland Estates . . . . . . . .313.90 +6.10 332.10 236.60 Old Mutual . . . . . . . . . . . . . . . . .127.60 +3.20 130.20 85.80 Thomas Cook . . . . . . . . . . . . . . .198.50 +2.50 277.20 172.30
BP . . . . . . . . . . . . . . . . . . . . . . .432.75 +7.40 658.20 296.00 Greene King . . . . . . . . . . . . . . . .449.90 +7.50 504.00 372.50 Pace . . . . . . . . . . . . . . . . . . . . . .215.00 — 243.80 145.00 Tomkins . . . . . . . . . . . . . . . . . . .323.40 +1.40 325.70 155.00
Brit Insurance . . . . . . . . . . . . . . .999.00 +11.00 1017.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .475.10* +4.60 562.50 324.00 Partygaming . . . . . . . . . . . . . . . .291.00 +2.50 339.70 205.80 Travis Perkins . . . . . . . . . . . . . . .863.50 +2.50 915.00 647.50
British Airways . . . . . . . . . . . . . .233.40 +4.50 255.80 161.00 Halma . . . . . . . . . . . . . . . . . . . . .279.90* –2.00 298.70 186.60 Pearson . . . . . . . . . . . . . . . . . .1005.00 +5.00 1069.00 695.00 TUI Travel . . . . . . . . . . . . . . . . . .225.60 +9.20 313.90 202.30
British Amer. Tob . . . . . . . . . . .2252.50 +40.50 2335.50 1832.00 Hammerson . . . . . . . . . . . . . . . .379.90 +4.00 460.30 332.20 Pennon . . . . . . . . . . . . . . . . . . . .609.00 +8.50 611.00 434.40 Tullett Prebon . . . . . . . . . . . . . . .381.60 +4.00 436.20 261.20
British Empire Tst . . . . . . . . . . . .440.00 +4.90 467.90 338.50 Hargreaves Lansdown . . . . . . . .374.90 +3.90 387.00 214.00 Persimmon . . . . . . . . . . . . . . . . .392.80 +7.70 534.50 340.20 Tullow Oil . . . . . . . . . . . . . . . . .1280.00 +17.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .458.90* +9.10 532.00 416.00 Hays . . . . . . . . . . . . . . . . . . . . . . .93.50 +1.60 119.00 88.05 Petrofac . . . . . . . . . . . . . . . . . .1318.00 +16.00 1372.00 803.00 UK Commercial Prop. . . . . . . . . . .75.00* –1.20 84.90 65.25
Britvic. . . . . . . . . . . . . . . . . . . . .490.10 +10.50 518.00 324.80 Henderson . . . . . . . . . . . . . . . . .135.20 +1.70 157.80 110.60 Petropavlovsk . . . . . . . . . . . . . .1083.00 +4.00 1370.00 601.00 Ultra Electronics . . . . . . . . . . . .1679.00 +3.00 1684.00 1189.00
Brown(N.) . . . . . . . . . . . . . . . . . .239.10 +2.00 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .446.00 +0.80 587.00 368.70 Premier Farnell . . . . . . . . . . . . . .243.30 +7.40 252.60 140.60 Unilever . . . . . . . . . . . . . . . . . .1716.00 +27.00 2024.00 1580.00
BSkyB . . . . . . . . . . . . . . . . . . . .712.00 +2.00 732.00 521.00 Hikma Pharma . . . . . . . . . . . . . .718.00 –3.00 746.00 440.00 Premier Oil . . . . . . . . . . . . . . . .1557.00 –15.00 1610.00 984.00
BT . . . . . . . . . . . . . . . . . . . . . . .146.30 +3.30 151.00 108.40 Hiscox . . . . . . . . . . . . . . . . . . . .363.00 +4.00 369.30 299.60 Provident Financial . . . . . . . . . . .837.50 — 986.00 795.00 United Utilities . . . . . . . . . . . . . .602.50 +2.50 606.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .684.50 –4.00 784.50 526.00 Hochschild Mining . . . . . . . . . . .321.10 +0.60 370.60 220.00 Prudential . . . . . . . . . . . . . . . . . .587.00 +15.50 665.00 455.00 Utd Business Media . . . . . . . . . .571.00 +9.00 579.50 408.30
Burberry . . . . . . . . . . . . . . . . . . .862.50 +7.00 891.50 440.20 Home Retail . . . . . . . . . . . . . . . .234.50 +2.30 336.50 208.50 PZ Cussons . . . . . . . . . . . . . . . .341.60 +2.40 373.20 210.10 Vedanta Resources . . . . . . . . . .2583.00 +24.00 2967.00 1616.00
Cable & Wire Comms . . . . . . . . . .61.30* +0.85 150.00 53.00 Homeserve . . . . . . . . . . . . . . . . .481.30 +18.30 488.20 435.40 Qinetiq . . . . . . . . . . . . . . . . . . . .122.60 –0.50 179.10 113.90 Victrex . . . . . . . . . . . . . . . . . . . 1188.00 +1.00 1320.00 613.50
Cable & Wire Wwide . . . . . . . . . . .66.20* +0.10 94.80 64.85 HSBC Hldgs . . . . . . . . . . . . . . . .670.70 +9.30 766.80 595.20 Randgold Resources. . . . . . . . .5395.00 –15.00 6600.00 3351.00 Vodafone . . . . . . . . . . . . . . . . . .154.90* +2.65 155.50 124.05
Cairn Energy. . . . . . . . . . . . . . . .461.00 +0.60 485.30 306.80 Hunting . . . . . . . . . . . . . . . . . . .551.00 +7.00 659.50 423.20 Reckitt Benckiser . . . . . . . . . . .3107.00* +46.00 3667.00 2686.00 Weir . . . . . . . . . . . . . . . . . . . . .1255.00 +15.00 1275.00 585.00
Caledonia Invs . . . . . . . . . . . . .1610.00 +2.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . .392.90* +3.30 478.30 291.70 Reed Elsevier . . . . . . . . . . . . . . .549.50* –4.50 566.00 414.00 Wetherspoon(J.D.) . . . . . . . . . . .447.30 +6.70 556.00 378.70
Capita . . . . . . . . . . . . . . . . . . . . .710.00 +9.50 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .488.70 +2.10 498.90 291.00 Regus . . . . . . . . . . . . . . . . . . . . . .75.40 +0.90 125.50 68.65 WH Smith . . . . . . . . . . . . . . . . . .424.00 +7.40 551.00 396.00
Capital & Counties . . . . . . . . . . . 112.70 –0.30 125.40 99.60 Imagination Tech Gp . . . . . . . . . .350.60 +7.80 358.30 149.75 Renishaw . . . . . . . . . . . . . . . . . .888.00 +13.50 915.50 420.00 Whitbread . . . . . . . . . . . . . . . . .1470.00 +27.00 1645.00 917.00
Capital Shopping Centres . . . . . .333.90 –1.20 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .730.00 +19.50 786.00 357.60 Rentokil Initial . . . . . . . . . . . . . . .105.50 +1.10 140.20 94.10 William Hill . . . . . . . . . . . . . . . . .171.20 –0.80 217.80 160.50
Carillion . . . . . . . . . . . . . . . . . . .314.80 +2.10 361.90 263.90 Imperial Tobacco. . . . . . . . . . . .1822.00* +25.00 2159.00 1643.00 Rexam . . . . . . . . . . . . . . . . . . . .305.90 +4.60 348.80 222.50 Witan Inv Tst . . . . . . . . . . . . . . . .449.90 +6.90 487.00 365.50
Carnival . . . . . . . . . . . . . . . . . .2317.00 +5.00 2937.00 1747.00 Inchcape. . . . . . . . . . . . . . . . . . .295.40 +0.20 347.00 235.00 Rightmove . . . . . . . . . . . . . . . . .644.50 +4.50 729.00 404.00
Catlin . . . . . . . . . . . . . . . . . . . . .376.10 +6.10 394.60 303.20 Informa . . . . . . . . . . . . . . . . . . . .402.20 +3.40 439.40 250.20 Rio Tinto . . . . . . . . . . . . . . . . . .3455.50 +24.50 4104.00 2205.00 Wolseley . . . . . . . . . . . . . . . . . .1497.00 +27.00 1742.00 1155.00
Centamin Egypt . . . . . . . . . . . . .166.50 +6.50 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .739.00 –2.50 831.00 491.00 RIT Capital Partners . . . . . . . . . 1150.00 +5.00 1215.00 913.50 Wood Group (John). . . . . . . . . . .374.00 +4.00 411.70 267.70
Centrica . . . . . . . . . . . . . . . . . . .321.40 +2.50 324.20 216.00 Intercontl Hotels . . . . . . . . . . . . 1124.00 +7.00 1244.00 697.50 Rolls Royce . . . . . . . . . . . . . . . .563.00 +2.50 631.50 409.60 WPP . . . . . . . . . . . . . . . . . . . . . .701.00 +16.50 744.00 458.80
Charter Intl . . . . . . . . . . . . . . . . .680.00 +1.50 855.50 560.50 Intermediate Capital . . . . . . . . . .265.60* +8.60 332.00 233.50 Rotork . . . . . . . . . . . . . . . . . . .1490.00 +10.00 1537.00 933.00 Xstrata . . . . . . . . . . . . . . . . . . .1085.00 +1.00 1344.50 713.00
Chemring . . . . . . . . . . . . . . . . .2880.00* +19.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1713.00 +28.00 1745.00 1068.00 Royal Bank Of Scot . . . . . . . . . . . .50.35 –0.75 58.95 28.25 LONDON TOP 250 BY MARKET CAPITALISATION
Chloride Group . . . . . . . . . . . . . .374.40 +1.20 390.50 138.60 Intl Personal Fin . . . . . . . . . . . . .247.50 +1.00 283.00 128.25 Royal Dutch Shell A . . . . . . . . .1822.50* +26.50 2068.50 1542.00
Close Bros . . . . . . . . . . . . . . . . .692.50 +3.00 806.50 660.50 Intl Power . . . . . . . . . . . . . . . . . .380.00 +13.60 384.10 243.00 Royal Dutch Shell B . . . . . . . . .1760.00* +31.50 1997.50 1510.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .226.30 +4.50 278.60 186.90 Invensys . . . . . . . . . . . . . . . . . . .269.00* +3.20 350.30 234.50 RSA Insurance . . . . . . . . . . . . . .136.60 +2.30 142.00 114.10
COLT Group . . . . . . . . . . . . . . . .126.00 –0.10 144.20 112.60 Investec . . . . . . . . . . . . . . . . . . .481.90* +6.10 565.00 378.20 SABMiller . . . . . . . . . . . . . . . . .1905.00* +41.00 2090.00 1307.00 www.interactivedata.com

Banks boost FTSE past the Wall Street pauses

5,400 mark after quiet day ahead of Fed rates
Group rose 1.7 per cent. The latest Federal Reserve rate deci- lower interest rates to encourage bor-
THELONDON Insurers were in demand with
Prudential, set to unveil its first-half
sion is due after the London market
close today, although no change is THENEW YORK rowing. It could also halt payment of
interest on banks’ excess reserves to

REPORT results on Thursday, up 2.7 per cent.

Legal & General, Old Mutual and
Aviva, which all reported results last
expected to US monetary policy yet.
Integrated oils were strong per-
formers. The sector is bouncing back
REPORT encourage lending.
Stocks have generally reacted well
on Fed days since the zero-interest
week, rose 2.2 to 3.6 per cent, boosted after weakness following BP’s oil spill rate policy was put in place in

F U
INANCIAL stocks boosted the by price target hikes from Deutsche in the Gulf of Mexico and along with S stocks rose yesterday in the December 2008. The S&P 500 is up 85
UK’s leading share index yester- Bank, UBS and BofA Merrill Lynch the price of crude, which rose above quietest session of the year on per cent of those days, with average
day, rallying from falls in the respectively. $80 a barrel. speculation that the Federal gains of 1.18 per cent, according to
previous session following weak Rebounding stock markets sharp- BP climbed 1.7 per cent. The oil Reserve would signal potential Bespoke Investment Group.
US jobs data and supported by energy ened appetite for fund managers major said the cost of dealing with its steps to boost the sluggish economic But Bespoke wrote that because the
markers which gained in tandem with Schroders, up 4.2 percent, also ruptured oil well in the Gulf of recovery. Fed is expected to make changes in its
with crude. helped by BofA Merrill Lynch which Mexico has risen to $6.1bn, including Volume was a mere 5.71bn shares, comments, “trading following tomor-
The FTSE 100 was up 78.13 points, lifted its target price after last week's $319m in compensation payments to compared with last year's estimated row’s statement could prove to be
or 1.5 per cent, at 5,410.52, having first-half results. businesses and individuals affected daily volume of 9.65bn shares, as more volatile than recent announce-
closed 0.6 per cent lower on Friday, London’s blue chips were back on by the spill. investors were wary of taking new ments”.
albeit in light volumes, with the the front foot after reversing sharply Royal Dutch Shell was up 1.5 per positions before the Fed's statement Hewlett-Packard was by far the top
index having traded just 53 per cent on Friday, following worse than cent and BG Group 1.4 per cent. today. drag on the Dow yesterday, tumbling
of its 90-day average volume. expected non-farm payrolls from the Oil services firm Petrofac rose 1.2 The Dow Jones industrial average 8 per cent to $42.60 after chief execu-
“Stocks remain on historically low Untied States which cast doubt over percent after it won a $430m contract was up 45.19 points, or 0.42 per cent, tive Mark Hurd resigned late on
price earnings multiples, so any the sustainability of the economic by Kuwait Oil Company. at 10,698.75. The Standard & Poor's Friday. The news of his resignation,
weakness presents a good buying recovery. 500 Index was up 6.15 points, or 0.55 following an investigation into sexual
opportunity particularly given the “We are seeing a lot of speculative ANALYSIS l FTSE per cent, at 1,127.79. The Nasdaq harassment charges by a female con-
robustness of the recent corporate buys on optimism that the Fed, when 5,410.52 Composite Index was up 17.22 points, tractor, sent the company’s shares
5,500 9 Aug
earnings season,” said Jimmy Yates, they start meeting tomorrow, will or 0.75 per cent, at 2,305.69. down 10 per cent in extended trade
5,400
head of equities at CMC Markets. announce some extra stimulus meas- “We're expecting the Fed to official- on Friday.
5,300
The FTSE closed above the 5,400 ures to help maintain the US recov- ly lay the groundwork for a policy McDonald’s hit a lifetime high at
level for the first time since 13 May. ery,” said Joshua Raymond, market 5,200 change predicated on another month $73.33 after it reported July sales data
Banks were favoured among strategist at City Index. 5,100 of economic data,” said Quincy that was stronger than expected,
investors following their solid report- In the small caps Cyprotex, a phar- 5,000 Krosby, market strategist at though the stock later pared gains to
ing season last week. Barclays put on maceuticals tester, closed up 18.75 4,900 Prudential Financial in Newark, New end at $72.92, up 1.6 per cent.
3.2 per cent, HSBC and Standard per cent to 4.75p after expanding into 4,800 Jersey. The Nasdaq got a boost from
Chartered added 1.4 and 1.5 per cent the US market through acquiring 4,700 The central bank could resume pur- Research in Motion, whose US-listed
respectively, while Lloyds Banking testing provider Apredica. 10 May 28 May 18 Jun 8 Jun 28 Jul chases of certain debt securities to shares rose 3.5 per cent to $55.31.
 18 Markets & Investment
TRY SILVER IF
YOU WANT A
GOOD RETURN
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
P
RECIOUS metals have had a particularly
rough ride of late. Gold has struggled
since hitting a fresh all-time high just
under $1,265 on 21 June this year, while
silver has also retreated sharply after jumping
30 per cent in the first quarter of 2010.
Technically, prices for both metals have bro-
ken down below significant support levels.
Silver fell below its 50, 100 and 200-day mov-
ing averages (DMA) some days ago, while at the
time of writing, gold is comfortably below both
its 50 and 100-DMAs, falling down to $1,200.
This certainly represents a target for sellers, yet
a move below here doesn’t invalidate the bullish
argument for the metals.
Bullish investors tend to interpret such pro-
longed sell-offs in precious metals as a result
of speculative leveraged holders relinquishing
their positions. As a consequence, such moves
provide the perfect opportunities for long-
term holders to add to their positions. For
committed bulls, precious metals are the only
assets worth holding in uncertain times. Their
argument is that all fiat currencies are at the
mercy of self-serving governments and central
bankers. Consequently, physical precious met-
als are the only universally recognised stores
of wealth and mediums of exchange. With a
number of emerging market central banks
(notably China, India and Russia) still appar-
ently anxious to diversify their foreign
exchange reserves away from fiat currencies
and into gold, there should be a floor to how
far prices can fall.
But silver has even greater trading potential
than gold. Not only is it an investment metal
as it can operate as both a medium of
exchange and a store of value, but it is also
viewed as an industrial metal, which is both a
blessing and a curse. It has applications over
and above being used in jewellery, such as in
photography, batteries and printed circuits.
This means that it sometimes moves with the
business cycle, in a similar way to copper. But
for speculators who are looking for volatility
and believe in the fundamentals of the gold
trade, exposure to silver can be an exciting
alternative.
AMPLIFY
YOUR DEPOSIT
*Minimum trade volumes and withdrawal restrictions apply. See gftuk.com for full terms and conditions. CFDs, spot forex and spread bets are leveraged
products and may not be suitable for everyone as it is possible to lose more than the funds you deposit. Please ensure that you fully understand the risks
involved. GFT Global Markets UK Ltd. is authorised and regulated by the Financial Services Authority.
SPREAD BETS | CFDs | FOREX / gftuk.com / free phone 0800 358 0864
CD03UK.115.080310
CITYA.M. 10 AUGUST 2010
Panic over a new global
food crisis is over-egged
Traders call the end
of this wheat rally,
writes Juliet Samuel
T
RADERS have been watching wheat
markets breathlessly over the past
few days as the grain bounced up
and then down. Having gained 8.08
per cent last Thursday – up 80 per cent on
prices in the middle of June – the grain
plummeted on Friday, wiping out much of
Thursday’s gain to end the day down 7.64
per cent. But while on the surface the price
of food is shooting up, the fundamentals
don’t justify the amount of money pouring
into soft commodities in the hope of a sus-
tained short-term rally.
Wheat prices’ yoyo-ing movement was
prompted by a Russian export ban after
fires in the ex-Soviet region wiped out an
unknown amount of this year’s harvest.
Gary Vaughan-Smith of SilverStreet Capital
estimates that the disaster has cost the
Black Sea region – which accounted for 27
per cent of wheat exports last year – about
30 per cent of its production. Meanwhile, Wheat fires in Russia
too little moisture in the east has coincided have prompted panic-
with far too much in the west: the buying Picture: GETTY
Canadian Wheat Board estimates that its
wheat exports will be 17 per cent lower
than last year due to heavy rains (Vaughan- supply-side shocks with relative ease. So although the Black Sea fires have
Smith puts the damage higher, at a third of Barclays Capital’s Sudakshina depleted stocks and made this year’s sup-
last year’s production). Add in the threat of Unnikrishnan says: “Global supply is at ply of grains more sensitive to any
locusts hovering over Australia’s yield and comfortable levels and that is likely to cap impending shocks, traders might have
you have conditions ripe for panic-buying – significant upside momentum to prices.” missed this spike. Instead, try waiting for a
followed by a profit-taking correction. Moreover, CMC Markets’ Michael small rally in bread and livestock prices
Meanwhile, the price of barley has nearly Hewson says there is another fundamental due to the jump in input costs. Or, better
doubled since early June, soyabeans enjoyed difference between the recent rallies and still, with so much hot money floating
a sustained rally in July and maize prices are the 2007-2008 highs: “Whereas in 2008 around, it is well worth getting in early on
up 10 per cent on this year’s average. The there was the perception of a demand prob- the next grain-buying panic – try rice.
upwards trend in staples has prompted lem, at the moment there are concerns
ANALYSIS l Wheat Price ($/ton)
Source: IGC
comparisons to the 2007-2008 food crisis about supply. But Russia’s harvest problems 600
amid fears that we are in for another sus- don’t justify a doubling of the wheat price
tained jump in prices (see chart). in six weeks. A lot of hot money has gone 500
But comparisons with the last food panic into this.”
are over-egged, say some. For one thing, the And punters seem to be trading on the 400
world began 2009-2010 with much more in assumption that prices could be about to
the granaries than had been set aside at the spike as they did in 2008 (see chart). Global 300
beginning of 2007-2008. According to esti- food demand is rising as consumers in
mates from the International Grains Asia become wealthier and start eating 200
Council, we started this growing year with more protein. But without further supply-
global grain stocks at 370m tonnes – 27 per side shocks in the coming months, there 100
cent higher than they were at the outset of is no reason to think that prices will con-
2007-2008. While this isn’t a huge surplus, tinue to ramp up at such speeds in the
it should allow the market to absorb recent short-term. 2/1/07 2/1/08 2/1/09 2/1/10
OPEN AN ACCOUNT WITH GFT
AND WE’LL MATCH
5% OF YOUR DEPOSIT.*
Offer ends 15 September.
Get started now at gftuk.com.
CITYA.M. 10 AUGUST 2010 Investment | Contracts for Difference 19

After waiting
in the shadows,
the telco sector
is looking good
But beware, as a rally fuel tax in Germany could imply a 67 per
cent effective tax rate on nuclear fuel.
could be short-lived, This could cut energy provider E.on’s
earnings-per-share for 2011-2012 by 17-19
per cent, according to calculations by
says Kathleen Brooks UBS. Elsewhere, authorities in Spain and
Finland have announced that they will
also consider taxing nuclear energy and

S
INCE the outbreak of the European hydro power. Belgium, meanwhile, is
debt crisis, analysts have sung the pressing for a windfall tax to “repay” the
praises of the utilities sector. It had value of free carbon emissions given to
all the ingredients to be recession- companies by the European Carbon
busting: utility stocks tend to be anti- Emissions Scheme. These proposed tax
cyclical, they hold up well when other rises for the sector are bad news for
stocks tumble and they provide a reliable investors since they threaten dividends
dividend. But as the global economy and any potential share buy backs.
emerges from recession, some analysts
are beginning to lose interest in the sec- TELCOS LOOK ATTRACTIVE
tor that provided them such hope at the So if investors retreat from utilities,
peak of the financial crisis. where should contract for difference
UBS recently downgraded utilities to (CFD) traders be looking for investment
neutral, adding that it has been “too bull- opportunities? Well, in the short-term,
ish” on the utilities sector. Although its the telecoms sector. UBS recently upgrad-
analysts acknowledge that there is still ed it from underweight to overweight
value to be had in the sector and, at this due to three factors: solid results in the
stage, it does not appear to be in over- second quarter, strong earnings momen-
bought territory, there are hurdles to fur- tum and, last but not least, it is the most
ther price appreciation. over-sold sector in the market, as you can
Chief among the concerns for the util- see in the chart below.
ities sector are slowing earnings momen- But it now looks ripe to outperform.
tum, tax increases and reduced Solid second quarter earnings and a posi-
dividends. It notes that governments tive short-term growth trajectory should Telefonica, the owner yielding 7 per cent – 1.75 times the aver- contrast, BT is one of its least-favoured
across Europe have either announced or boost the sector. Added to this, its divi- of O2, has exposure to age. And UBS argues that the dividend is stocks; the company has persistent prob-
are considering a windfall tax for the sec- dend yield is at a 40-year high relative to Latin America pretty secure, at least in the near-term, lems with its pension deficit. Other
tor. For example, the proposed nuclear the overall market. Telco stocks are now due to continued demand for smart- stocks to look out for are Pace, which
Picture: phones and data services. develops technology for cable television
ANALYSIS l UBS net client flows year-to-date, net buying/ selling as a percentage of total volumes Micha Theiner and Iliad, the French maker of electronic
8 Source: UBS client flows, UBS “Flow Watch” EMERGING MARKETS EXPOSURE
/CITY A.M. readers. Royal Bank of Scotland (RBS) has
6 UBS’s preferred stock is Telefonica, the a buy rating on Pace. It was impressed by
4 Spanish corporate that owns O2, the UK its interim results for the first half of
2
mobile phone operator. The investment 2010: revenue growth was an impressive
bank is attracted to its valuation – the 21 per cent higher than the same period
0
stock price remains 20 per cent below its in 2009. It also sees strong growth ahead
-2 January 2008 high – and its exposure to in pay-for television, especially in emerg-
-4 fast-growing markets in Latin America. In ing markets. Execution Noble recently
-6 upgraded Iliad to a buy, after its stock
Average net flows YTD (%) price fell below its fair value level.
-8
-10
The sector now looks ripe to outperform. For So if CFD traders want to get some
short-term profits in the last weeks of
example, its dividend yield is at a 40-year summer, then they should look beyond
Cap Goods

Chemicals

Metals &

Insurance

Food Staples

Health Care

Consumer

Construction

Comml Svs

Media

Energy

IT

Utilities

Banks

Div Fivs &

Food, Bev &

Telecoms

traditionally defensive utilities. After a

high relative to the overall market long time in the shadows, it is time for
the telecoms sector to shine.

THE TIPSTER been an obstacle for further appreciation for

the last seven months. The IG Markets’ CFD
lawsuit against its antipsychotic drug
Seroquel was settled for the relatively
KEY LEVEL KEEPS price is 215.2p-215.3p.
Tui Travel also announces its third quar-
minor sum of $198m. Even while the court
case was going on it continued to attract a
THWARTING ter trading statement today, which should lot of buying attention – the stock barely
arouse some interest in the market. The blinked during the peak of the European sov-
STANDARD LIFE’S good weather in the UK has already hurt hol- ereign debt crisis. Shares continue to attract
iday bookings. Tui announced earlier this investors due to the company’s pledge to
STOCK PRICE year that bookings were down 17 per cent in increase its share buyback programme this
May and 12 per cent in June. This could year. Capital CFDs quotes a price of
weigh on its results when they are 3298.8p-3302.7p as the shares close at a

T
OMORROW sees the latest interim announced. Spread Co offers a spread on Tui near four-year high.
results from FTSE 100 insurer Travel of 222.43p-223.17p. The maker of the steak-bake Greggs
Standard Life. Expectations are run- The flurry of results also includes releases its first half trading report today,
ning high for a good performance with International Power. These results will be where it is expected to announce any poten-
some market participants looking for under- particularly interesting, since the group is tial impact of the rising cost of wheat on its
lying profits to have jumped ahead by 50 per expected to confirm the partial merger future margins, combined with its recent
cent in the first half of the year. After slip- between it and GDF Suez, with GDF taking a expansion plans – it now has 1,400 stores
ping to its worst levels in more than a year majority stake in IP. Look out for any impact and is planning to open a between 50 and
at the beginning of July, the share price has on profits due to the sale of its Czech busi- 60 this year. Greggs is currently trading at
staged an impressive turnaround and in ness. Spread Co offers a spread on recent lows, after reaching highs of approxi-
recent days it has traded back up to its best International Power of 374.82p-375.68p. mately 500p in April. Spread Co offers a
levels for 2010. But there could be a struggle There was good news for pharma giant spread of 430.28p-432.52p on Greggs.
to push much higher. The 220p mark has AstraZeneca yesterday, after a class action Kathleen Brooks Insurer Standard Life reports results tomorrow Picture: PA
 Lifestyle
20 CITYA.M. 10 AUGUST 2010

| Health & Beauty

A Sunday service with edge

FIT IN
Timothy Barber finds THE CITY
a virtuoso shave in a BY LAURA WILLIAMS
boys’ own shop a FITNESS & DIET EXPERT

recipe for relaxation

How you can
W
HAT’S your idea of perfect

maximise your
Sunday relaxation? Climbing
into a barber’s chair and getting
lathered up probably isn’t first
on many lists, but after discovering the

grooming service on offer at West London’s
smartly idiosyncratic boys’ own shop Carter
& Bond, it’s shot to the top of mine.
Carter & Bond is like finding the perfect
men’s magazine (no, not that kind) in shop
form. It’s named after Jack Carter (Michael
Caine’s Get Carter character) and James
Bond, for a start, and sits across the road
from one excellent pub – well-known W2
hangout The Westbourne – and a few doors
along from another (Tom Conran’s The
Cow). And it’s run by a former tank com-
mander, 38-year-old Joe Cotton.
The little interior is a classy paradise for
the modern bloke who hasn’t quite grown
up. Shelves are filled with retro toys –
1950s-style robots, beautiful wooden bi-
planes (a few of which swing from the ceil-
ings) – as well as funky modern watches
and colourful lifestyle knick-knacks. There
are groovy prints of 1950s glamour models
and vintage copies of Playboy.
Along one wall run shelves stacked with
men’s grooming products of the smartest,
hardest-to-find, most beautifully packaged
variety. It’s a veritable apothecary of splen-
did niche brands with names like Baxter’s
of California, Aqua de Colonia and Zirh.
It’s these fine grooming products that
form the heart of Carter & Bond’s business,
an online trading operation that’s existed
for eight years. Cotton only opened the
shop a couple of years ago, sourcing unusu-
al products that play to every chap’s sense
of nostalgia and cool. He’s recently added a
barbering service, which is available on
Sundays (and Wednesdays, for anyone who
can make it from the office).
The shop is on Westbourne Park Road
near Notting Hill, a quiet and pretty area to
stroll through on a sunny Sunday. Having
installed a barber’s chair and grand
Victorian sink, Cotton needed a barber
with the skills to do the place justice. I can
attest that he’s found this in Moustapha
Boussain, a friendly Moroccan gent with –
blade in hand – a virtuoso touch.
With the gentle murmur of pub chatter
from The Westbourne in the background –
not to mention the odd passing dad and
Top, Moustapha son wandering in wide-eyed – Moustapha
Boussain gives owner applies an enlivening facial scrub and car-
Joe Cotton a shave. ries out a face massage. Next he wraps the
face in a pair of hot towels loaded with
Above, the interior is scented oils, leaving them on for a couple
part gents’ apothe- of minutes – I started to drift off at this
cary, part boys’ own point. After elaborately lathering up the
toy shop. face in layers of cream, he sets the open
Pictures: razor dancing across the skin with all the
Micha Theiner skill and intuition of a jazz musician.
/City A.M. Next comes a clay mask and another
massage, a further hot towel, moisturiser,
eye replenisher, cold towel and final balm –
my skin felt like putty and my mind was
drifting at about 30,000 feet. The brilliant
thing is that after this kind of shave you
don’t need to reach for the razor for a cou-
ple of days, making Monday mornings easi-
er – and you can top off this flawless
relaxation with a pint across the road. Now
that’s what Sundays are about.
Hot & Cold Towel wet shave, or haircut, from £30.
Carter & Bond, 83 Westbourne Park Road, W2
5QH. 020 7727 3141, www.carterandbond.com
gym session
Make sure you use those all-important min-
utes at the gym as efficiently as possible to
get the most out of that lunchtime workout.
Forget endless reps Research has shown that
doing any more than 15-20 reps is a waste of
time – you need to be failing at your 20th rep
for the set to count, and therefore to derive any
increase in muscle tone from the set. Make sure
that come the 15th rep (max) of any set, you’re
struggling to lift the weight. Endurance work-
outs like BodyPump and circuit training are the
only exceptions to this rule.
Keep socialising to a minimum It may be a
good motivational boost to go to the gym
with a colleague but it’s probably best to go
your own separate ways once you get there.
Chatting alongside each other on the tread-
mill means that you’re probably not going to
push yourself as hard as you should.
Stick to big moves Isolation moves such as
bicep curls are not a good use of time – make
sure that you opt for multi-joint (compound)
moves to engage as many muscle groups at a
time. Good examples of compound moves
include press ups, chin ups, squats and lunges.
Don’t get waylaid by the TV There’s nothing
wrong with a bit of external stimulus to allevi-
ate exercise boredom but you’re better off put-
ting together a fast-paced, upbeat playlist for
your MP3 than peddling away watching Sky
News and hoping to get your heart rate up.
Watch your form Improper exercise tech-
nique poses a greater injury to muscles and
joints, plus you’ll be losing the benefits of the
exercise. Arching your back, pushing your
head forward and lifting your feet off the
floor to squeeze that last rep out all increase
your chance of tearing something.
www.laurawilliamsonline.co.uk

Diet must be an integral part of every runner’s training regime

sider diet a key component of the training
regime, and that means thinking about how to
fuel before, during and after a run. Before a run,
have a light meal or a carbohydrate-based snack.
Running on an empty stomach is not a good idea
but do allow one to two hours between eating
and running to give food time to digest – that
minimises stitch and tummy problems.
FITNESS If you intend to run for more than an hour
WATCH you should look to take onboard carbohydrates
during the run, at a rate of between 30-60g
per hour. Try sports drinks, gels, energy bars,
BY KEITH ANDERSON flapjacks or dried fruit.
PERSONAL COACH AT FULL POTENTIAL Once you finish your run you should aim to
replenish your levels of glycogen with a quick
DIETARY DOS AND DONTS
DO:
l Allow carbohydrates (such as pasta, pota-
toes and bread) to form 60-65 per cent of
your total calorie intake
l Eat protein to help recovery (1.5g of protein
per kilo of bodyweight for an active person)
l Incorporate “good” fats (like Omega 3) from
fish, nuts and olive oil
l Maximise vitamin and mineral intake with
at least five portions of fruit and veg per day
l Eat iron-rich foods (good ones are lean red
meat, lentils and spinach) to prevent fatigue
and anaemia
techniques by grilling and steaming, rather
than frying, food
DON’T:
l Have too much sugar, caffeine or alcohol
l Regularly opt for refined, processed, or
fast foods
l Wait until you’re thirsty when taking in fluid
l Binge eat: you should graze regularly
through the day so you’re never
hungry but never too full.
Runners wanted for the Garmin #4miler. For
further information and to sign up your
office visit

G
OOD nutrition is vital for health and well-
being. For runners there’s the additional
significance of enhanced performance,
faster recovery between sessions and the
prevention of illness and injury. We should con-
snack like a banana or sports recovery drink. Do
this immediately after training and aim to have
a balanced meal within a couple of hours. This
will help shorten recovery times and reduce
muscle soreness the following day.
l Go wholegrain: swap white pasta and bread www.garmin4milechallenge.co.uk.
for healthier brown, wholegrain versions
l Protect the nutrients in your food by using
seasonal produce and keeping food fresh
l Choose healthy cooking and preparation
CITYA.M. 10 AUGUST 2010 Lifestyle | TV& Games 21

BBC1 BBC2 ITV1 CHANNEL4 FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders; BBC News
8pm Holby City
9pm CHOICE The Deep
10pm BBC News
10.25pm Regional News
10.35pm Madness in the Fast
Lane
11.25pm FILM Mother’s Boys:
Thriller, starring Jamie Lee
Curtis 1994; Weatherview
1am Sign Zone: The Edible Garden
1.30am How to Live a Simple Life
2.30am Monty Halls’ Great
Hebridean Escape 3.30am Put Your
Money Where Your Mouth Is
4.15am-6am BBC News
6pm Eggheads: Quiz show with
Dermot Murnaghan.
6.30pm Restoration Roadshow
7pm Coast: The team explores
Brittany in northern France.
8pm CHOICE Domesday:
Stephen Baxter examines the
purpose of the Domesday Book.
9pm That Mitchell and Webb
Look
9.30pm Shooting Stars
10pm Russell Howard’s Good
News
10.30pm Newsnight; Weather
11.20pm How Not to Live Your
Life
11.50pm The Normans
12.50am BBC News
4.15am-6am Close
6pm London Tonight 6pm The Simpsons 6pm The Boss Is Coming to
6.30pm ITV News 6.30pm Hollyoaks: Malachy Dinner
7pm CHOICE Emmerdale: tries to track down Veronica. 6.25pm Don’t Stop Believers
Rhona discovers she has 7pm Channel 4 News 6.30pm Live from Studio Five
feelings for Paddy. 7.55pm 4thought.tv 7pm Five News at 7
7.30pm Children’s Hospital 8pm Help! My House Is Falling 7.15pm Cricket on Five
8pm New Who Wants to Be a Down 8pm Great Railway Adventures
Millionaire? 9pm Who Knows Best: Getting with Dan Cruickshank:
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with the shock of his father’s 10pm Big Brother 10pm CSI: NY
death. 11.10pm The Inbetweeners 10.55pm Don’t Stop Believers THE DEEP
10pm ITV News at Ten 11.45pm Pete Versus Life BBC1, 9PM
11pm CSI: Crime Scene
10.30pm London News 12.20am The Poker Lounge Investigation The researchers on the Orpheus
10.35pm Ladette to Lady 1.20am Big Brother: Live 4am 12am NCIS 12.55am SuperCasino submarine run into severe danger in
11.35pm October Road KOTV Boxing Weekly 4.25am 4am The Boss Is Coming to Dinner their quest to find rare micro-
12.30am The Zone; ITV News British Formula 3 Championship 4.25am Wildlife SOS 4.50am Rough organisms. Starring Goran Visnjic.
Headlines 4.50am The Grid 5.20am World Guide to Activity Holidays 5.05am
2.30am The Jeremy Kyle Show Sport 5.45am-6.15am Freesports The New Tomorrow 5.30am-6am
3.25am-5.30am ITV Nightscreen on 4: 2010 Roxy Jam Michaela’s Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT 3am Passport Patrol 3.50am E4 3am Weaponology 3.50am
SATELLITE & CABLE

7pm Football’s Greatest
7.30pm Soccer Special
10.30pm Test Cricket 12.30am
Carling Cup Football 2am
Football Asia 2.30am Test
Cricket 4.30am-6am Carling
Cup Football
SKY SPORTS 2
7pm Golf: The 2008 US PGA
Championship. 8pm Test
Cricket 10pm Poker: Action
from the LA Poker Classic at
the Commerce Casino in Los
Angeles. 11pm Golfing World
12am Asian Tour Golf Show
12.30am Golf 1.30am Sports
Unlimited 2.30am Bowls
4.30am Golf 5.30am-6am
Asian Tour Golf Show
SKY SPORTS 3
6pm Pool 7.30pm Live Carling
Cup Football 10pm Golf 11pm
Sports Unlimited 12am A-
League 12.30am Mountain
Bike World 1am-2am Poker
7pm Boxing 9.45pm
Swimming 11.15pm European
Aquatics Championships: Pool
Talk 11.30pm-12.30am Diving
ESPN
7pm Live International Football
9.45pm Eredivisie Review Show
10.45pm Russian Premier
League Review 11.15pm AFL
Review Show 12.15am Talk of
the Terrace 12.30am Press Pass
2010 1am Live International
Football 3.30am AFL Review
Show 4.30am-5.30am
Eredivisie Review Show
LIVING
7pm Four Weddings: Featuring
a couple inspired by David and
Victoria Beckham. 8pm
Britain’s Next Top Model: The
girls meet singer Alesha Dixon.
9pm Dating in the Dark 10pm
16 and Pregnant 11pm Criminal
Minds 12am CSI: Crime Scene
Investigation 1am Charmed
The Jerry Springer Show 7pm Hollyoaks 7.30pm Friends Swamp Loggers 4.40am Days
4.40am Maury 5.30am-6am 9pm Smallville 10pm The That Shook the World 5.30am-
Home Shopping Ricky Gervais Show 10.35pm 6am How Does That Work?
The Cleveland Show 11pm King
BBC THREE of the Hill 12am-6am Big
DISCOVERY HOME &
7pm Doctor Who 7.45pm
Brother: Live HEALTH DOMESDAY
Doctor Who Confidential 8pm 7pm Extreme Pregnancy 8pm BBC2, 8PM
Underage and Pregnant: A girl HISTORY 10 Years Younger 9pm Raising Stephen Baxter examines the purpose
who feels that motherhood is 7pm Conquistadors 8pm 10 Kids: The Hayes Way 10pm of the Domesday Book – an 11th-
wrecking her life. 8.30pm Mysteryquest 9pm Ancient Jon and Kate Plus 8 11pm century record of land and property
Baby Beauty Queens: Discoveries 10pm Nazi Hunters Plastic Surgery 12am Raising ownership in England.
Youngsters compete in a 11pm The SS 12am Ancient 10 Kids: The Hayes Way 1am
pageant at Epsom racecourse. Discoveries 1am Deep Sea Jon and Kate Plus 8 2am
9pm Tulisa – My Mum and Me Detectives 2am Conquistadors Plastic Surgery 3am 10 Years
10pm EastEnders: Ryan opens 3am Cities of the Underworld Younger 4am Extreme
up to Whitney about his 4am-5am The Universe Pregnancy 5am-6am Bringing
insecurities. 10.30pm Home Baby
Mongrels 11pm Family Guy DISCOVERY
11.45pm Tulisa – My Mum and 6pm Mythbusters 8pm How SKY1
Me 12.45am Underage and Do They Do It? 8.30pm How 8pm My Son, Drugs and Me
Pregnant 1.15am Baby Beauty It’s Made 9pm River Monsters: 9pm Must Be the Music:
Queens 1.45am Mongrels Jeremy Wade investigates the Countdown 10pm House 12am EMMERDALE
2.15am Mongrels Uncovered arapaima. 10pm X-Machines Road Wars 1.50am Oops TV ITV1, 7PM
2.45am Glamour Models, Mum 11pm Clash of the Dinosaurs 2.40am Road Wars 3.30am Rhona is shocked to discover she has
and Me 3.45am Alice and Her 12am Deadliest Catch 1am The 4400 4.20am Project feelings for Paddy after pretending to
Six Dads 4.45am-5.15am Bear Grylls: Born Survivor 2am Runway 5.10am-6am Are You be his girlfriend, and Leyla tells David
Mongrels Uncovered More Industrial Revelations Smarter Than a 10 Year Old? her relationship with Alicia is broken.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
34 5 12 18 33 6
15 20
11 12   
15 6
Place the numbers from 1 to 9 in each empty cell so that each 22 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 8 30
38 4
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 17 13 11
  
above or to the left of it. 17 16
You can only use the digits 1-9 42
   and you must not use the 6 14  
same digit twice in a block. 7 17 29 16
    The same digit may occur 38
23
 more than once in a row or
column, but it must be in a
3
13
19 12
   
11 8
    separate block.
13 9 11
12 35
  24 7
 

    ACROSS DOWN
1 Joint just above 1 Map-collection (5)

    WORDWHEEL O E
the foot (5)
3 Writing tables (5)
2 Set free (9)
3 Carried out (3)
Using only the letters in the Wordwheel, you have 6 Large entrance hall
   ten minutes to find as many words as possible,
U D or waiting area (5)
4 Transgression (3)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters O 7 Classroom fool (5)
5 Glossy, smooth (5)
8 Released from
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
B D 10 Small bird that preys
on other birds (11)
a tether (9)

SOLUTIONS KAKURO is at least one nine-letter word in the wheel.

L G 13 Limit (11)
9 Griping tummy ache (5)
11 Edgar Allan ___, US
QUICK CROSSWORD 7 9 8 2 3 6 5 1
15 Guides (5)
writer and poet (3)
6 $ / 7 < ( 1 5 2 /
1 3 6 7 5 9 8 3 SUDOKU          18 Object (5)
12 Romance (3)
7 9 4 8 8 7         
: 2 1 ( ,
7 1 4 2 9 6 19 In an unfortunate
$ : $ < 6 7 $ 7 8 (          13 Reigns over (5)
1 1 : 5 5 * 9 2 1 3 4 2 4 1 manner (5)
        
6 : , 3 ( $ % , ' ( 5 1 8 7 4 14 Time before sunrise (5)
         20 Allow to enter (5)
0 $
6 + $ :
/ $ ,
/ /
6 (
( 9 ( (
3 1 2
9 2
9 8 5 6
5 3 1
7
2
WORDWHEEL          16 As well as (3)
2 7 5 6 ( /         
/ 2 , 7 ( 5 7 5 ( ( 5 1 3 9 7 4 The nine-letter word 17 Outer space as viewed
8 3 2 1 4 1 2 5         
( 2
6 < 1 2
$
' 6
2
7 8
*
' < 9 4 6 8 7 6 3 9
was SACRIFICE          from Earth (3)
 Sport
22 CITYA.M. 10 AUGUST 2010

Results
CARLING CUP FIRST ROUND
Milner deal the final straw
Stevenage.....................(1) 1 Portsmouth......................(2) 2
CRICKET

as O’Neill quits Villa helm

SECOND TEST MATCH
England v Pakistan
EDGBASTON: England beat Pakistan by nine wickets
PAKISTAN: First Innings 72
(Broad 4-38, Anderson 4-20)
ENGLAND: First Innings 251
(Pietersen 80, Trott 55, Ajmal 5-82)
PAKISTAN: Second Innings
(Overnight 291-9)
U Gul not out ....................................................................................................13
M Asif c Pietersen b Broad........................................................................14
▲

PREMIER LEAGUE
B16 lb14..................................................................................................30
Total (117.5 overs) ..........................................................................2296 BY JON COUCH O’NEILL |
Fall: 1, 53, 54, 76, 82, 101, 153, 268, 269. VILLA STATS
Bowling: Anderson 28-13-62-1, Broad 28.5-14-66-2, Finn 16- FRUSTRATED Martin O’Neill finally
5-57-1, Swann 37-20-65-6, Collingwood 7-2-14-0, Pietersen 1-0- lost patience with Aston Villa owner Games – 190
2-0.
ENGLAND: Second Inns
Randy Lerner yesterday and quit as Wins – 80
A Strauss not out ..........................................................................................53 manager just five days before the Drawn – 60
A Cook b Amir ..................................................................................................4 start of the new Premier League sea-
I Trott not out..................................................................................................53 son. Lost – 50
B5 nb3........................................................................................................8 The Northern Irishman brought Win % – 42.1
Total (1 wkt., 36.3 overs) ..............................................................1118
Fall: 7. an abrupt end to his four-year tenure
Bowling: Amir 11-1-31-1, Asif 6-0-20-0, Ajmal 14.3-1-42-0, at Villa Park amid speculation the
Malik 5-0-20-0. club were about to let midfielder
Umpires: S Davis & M Erasmus. James Milner join Manchester City in
a £24m move.
TODAY’S DIARY O’Neill, 58, pledged his future to
(Football 7.45pm unless stated) Villa back in May following clear-the-
International Match
Italy v Ivory Coast......................................................................................................
air talks with Lerner over the club’s
Under-21 Friendly Match ambition to break into the top four.
England v Uzbekistan (7.30) .................................................................................. But he is said to be unhappy with
Carling Cup 1st rnd the club’s sell-to-buy policy and in
Aldershot v Watford.................................................................................................. particular the way the Villa board
Barnsley v Rochdale .................................................................................................. bowed down to the demands of big-
Bradford v Nottm Forest..........................................................................................
Brentford v Cheltenham .......................................................................................... spending City and reduced their
Carlisle v Huddersfield.............................................................................................. £30m estimation for Milner.
Chesterfield v Middlesbrough................................................................................ Caretaker Kevin MacDonald will
Crewe v Derby.............................................................................................................. take charge of Villa’s opening
Doncaster v Accrington Stanley .......................................................................... Premier League game with West
Exeter v Ipswich.......................................................................................................... NEXT IN LINE | LEADING CANDIDATES
Hereford v Colchester................................................................................................ Ham on Saturday, while names such
Leeds v Lincoln City .................................................................................................. as Sven-Goran Eriksson, Bob Bradley
Leicester v Macclesfield .......................................................................................... and Martin Jol are being linked to the Bob Bradley – 7/2
Milton Keynes Dons v Dag & Red ........................................................................ job on a permanent basis. Led the USA to the quarter-finals of the
Morecambe v Coventry ............................................................................................ O’Neill has transformed the for-
Northampton v Brighton.......................................................................................... World Cup and Villa chief Randy Lerner
tunes of Villa since replacing David
Norwich v Gillingham ................................................................................................
O’Leary in August 2006, taking the may seek comfort in linking up with a
Oxford Utd v Bristol Rovers....................................................................................
Peterborough v Rotherham .................................................................................... club into the Premier League’s top fellow American.
Plymouth v Notts County ........................................................................................ six in each of the last three seasons. Martin Jol – 4/1
QPR v Port Vale............................................................................................................ Announcing his decision, the for-
Scunthorpe v Oldham................................................................................................ Ajax’s former Tottenham boss has already
mer Celtic boss said: “I have enjoyed
Sheff Wed v Bury........................................................................................................
my time at Aston Villa immensely. turned down Fulham but may find the
Shrewsbury v Charlton ............................................................................................
Southampton v Bournemouth................................................................................ It’s obviously a wrench to be leaving O’Neill led Villa into the top six for the last three seasons. Picture: ACTION IMAGES lure of Aston Villa harder to resist.
Southend v Bristol City ............................................................................................ such a magnificent club. Sven-Goran Eriksson – 5/1
Stockport v Preston .................................................................................................. “I would like to pay tribute to the Villa chief executive Paul under his management. We wish
Swansea v Barnet ...................................................................................................... Currently out of work and with an ultra-
Villa players, my coaching staff and Faulkner added: “The club would him the best in the future.”
Swindon v Leyton Orient.......................................................................................... the Villa supporters for all the sup- like to thank Martin for the great Former Villa and England boss impressive CV, but will the ex-England
Walsall v Tranmere ....................................................................................................
Wycombe v Millwall .................................................................................................. port and encouragement they have work he has done at Aston Villa over Graham Taylor, wasn’t surprised, boss be popular with the fans?
Yeovil v Crystal Palace.............................................................................................. given both the club and me personal- the past four years. He has helped to however, by O’Neill’s decision. Alan Curbishley - 11/2
Friendly Matches: Altrincham v Wigan XI (7.30), Birmingham XI v ly during my time as manager. I wish establish the club in the upper eche- “I think it’s been coming,” he said.
Harrow Borough.
them all the best for the future. I will lons of the Premier League, has “What has happened is that he realis-
Out of work since leaving West Ham in
obviously be assisting the club in the taken us to Wembley and we have es he will need more money to take September 2008, has been linked with
SPORTS EDITOR JON COUCH
email sport@cityam.com immediate short-term with regard to also qualified for European competi- this club further and it would appear several posts but yet to win over a board.
the handover of my duties.” tion for the past three seasons that is not forthcoming.”

Capello denies England unrest after retirements

tion failure with his squad, blaming He added: “Robinson called us and
▲

INTERNATIONAL FOOTBALL
BY JON COUCH the pre-season for any misunder- said he wanted to stay at home. I
standing. spoke with Brown here. I told him
FABIO CAPELLO yesterday refuted “I spoke with Sir Alex Ferguson yes- why I didn’t select him for the World
claims of a communication break- terday after he won the trophy and he Cup because he didn’t play for the
down with his players despite the said sorry,” said Capello on explain- last two months. You have to accept
furore surrounding his latest squad ing the Carrick situation. “He told me what they want to do.”
selection. Carrick had been injured two days Not for the first time, Capello
Since naming his 23-man party for previously but then turned up on blamed the events of South
tomorrow’s friendly with Hungary at Saturday and said he wanted to play. Africa on tiredness, but he
Wembley, Capello has seen two of his “I also had a conversation with insists lessons have been
included players, goalkeeper Paul [sporting director] Frank Arnesen learned and is hoping tomor-
Robinson and defender Wes Brown, at Chelsea about Daniel row’s friendly will signal the
announce their retirement from Sturridge. He said he had not start of a bright new future.
international football. trained for two weeks, which “When you play a World Cup
And he was left red-faced again at is why he was not selected competition, you have to arrive
Sunday’s Community Shield at the for the U21s. in really good physical condi-
sight of Michael Carrick turning out “In pre-season it is not tion,” he added. “We were not so
for Manchester United, inset, after easy to understand what fresh as the games we played
the midfielder had been omitted really happens because before the World Cup. We
from Capello’s squad due to injury. you can recover from injury changed some things but it
The events have led to suggestions really quickly.” was not enough. Every
that Capello has lost touch with his Capello also said he experience is important
England fringe players, but the accepted the decision of for the players, the man-
Italian says he has no communica- Robinson and Brown to quit. ager – I learned a lot.” Capello says he has learned from the experiences of South Africa. Picture: ACTION IMAGES
CITYA.M. 10 AUGUST 2010
Match-winner
Strauss backs
bad boy Broad
▲
CRICKET
BY MARTIN CAPARROTTA
CAPTAIN Andrew Strauss leapt to the
defence of hot-headed Stuart Broad
after leading England to a comfort-
able nine-wicket win over Pakistan in
the second Test at Edgbaston.
Seamer Broad was fined 50 per cent
of his match fee (around £3,000) after
petulantly throwing the ball at bats-
man Zulqarnain Haider and hitting
him on the shoulder.
And after steering England to a 2-0
series lead with an unbeaten half-cen-
tury, Strauss was quick to show sup-
port to his “maturing” bowler.
“He understood that he over-
stepped the mark and he has paid the
price for it,” the skipper said.
“Over the summer he has been out-
standing in terms of the way he has
gone about his business, so let us just
hope this is a one-off incident.
“He is maturing and when you
mature you learn from mistakes.”
Broad had earlier finished off the
Pakistan second innings with the
final wicket of Mohammad Asif
which dismissed the tourists for 296
and left England with a victory target
of 118.
But what should have been a rou-
tine run chase suffered an early set-
back when Alastair Cook, who has
made only 100 runs in seven Test
innings this summer with a top score
of 29, saw his middle stump ripped
out by a delivery which kept low from
seamer Mohammad Amir.
That paired Strauss and Jonathan
Trott at the crease and they steadied
the ship before seeing England home
with 53no apiece.
“This was a timely reminder you do
have to work hard for a Test match,” a
relieved Strauss said afterwards.
The captain also insisted he is
unconcerned by Cook’s dip in form
and is confident the Essex opener will
turn things around.
“I know he’s a quality player,” he
added. “I know these first two Test
matches the wicket hasn’t been great.
He’s achieved a huge amount in his
career and he will continue to do so.”
Sport 23
SPORT | IN BRIEF
Harbinger forced to quit
HORSE RACING: Record-breaker
Harbinger was officially retired to stud
yesterday after suffering a crippling
injury at the weekend.
The colt, who rallied to an impressive
11-length win in the King George VI at
last month, fractured his near-fore can-
non bone at Newmarket on Saturday.
He underwent successful surgery on
Sunday but it wasn’t enough to save the
career of the Sir Michael Stoute-trained
four-year-old, rated as the best flat
racer in the world.
“The owners, for whom this is very
sad, are naturally sorry that their great
horse has had his racing career cut
short,” said Highclere Racing chief Harry
Herbert.
Miley leads British charge
SWIMMING: Britain’s Hannah Miley
stormed to gold yesterday in the 400m
individual medley at the European
Championships in Budapest.
The 21-year-old staged an impressive
fightback to win by over three seconds
after trailing Hungary’s Katinka Hosszu.
The British women’s 4x100m
freestyle relay team claimed a silver
medal, finishing behind Germany, after
edging out Sweden.
No Murray rift, says ex-coach
TENNIS: Coach Miles Maclagan insists
he is still on good terms with Andy
Murray despite his recent split with the
world No4.
Maclagan spent two-and-a-half years
working with the British No1 but con-
firmed the split was “very amicable”.
“We left on very amicable terms,” he
said. “I’ve heard from him a couple of
Strauss, right, and Trott led England to victory with a 111 stand. Picture: ACTION IMAGES times since, a couple of messages.”