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▲ ▲ BUSINESS WITH PERSONALITY STEVEN GERRARD SAVES CAPELLO’S BLUSHES ENGLAND 2 HUNGARY 1 P22 LET

BUSINESS WITH PERSONALITY

▲ ▲ BUSINESS WITH PERSONALITY STEVEN GERRARD SAVES CAPELLO’S BLUSHES ENGLAND 2 HUNGARY 1 P22 LET
▲ ▲ BUSINESS WITH PERSONALITY STEVEN GERRARD SAVES CAPELLO’S BLUSHES ENGLAND 2 HUNGARY 1 P22 LET
▲ ▲ BUSINESS WITH PERSONALITY STEVEN GERRARD SAVES CAPELLO’S BLUSHES ENGLAND 2 HUNGARY 1 P22 LET

STEVEN GERRARD SAVES CAPELLO’S BLUSHES

ENGLAND 2 HUNGARY 1 P22

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GUNS AT THE READY FOR THE GLORIOUS 12THP18

Issue 1,197 Thursday 12 August 2010

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MARKETS PLUNGE ON FRESH DIP FEAR

WORLD ECONOMY

BY KATIE HOPE AND DAVID CROW

GLOBAL markets plummeted yester- day after the Bank of England cut its growth forecast and the US trade gap widened dramatically intensifying fears of a double-dip recession. On Wall Street, the Dow Jones recorded its biggest loss in six weeks, dropping 2.5 per cent to 10,378.83 and taking the index into negative territory for the year, while the FTSE 100 plunged 2.4 per cent to 5,245.21 – its biggest single-day percentage drop since 29 June. In Europe, leading indices followed suit with Paris and Frankfurt both closing more than two per cent lower. The sharp falls came as Bank gover- nor Mervyn King was forced to down- grade his forecasts for growth amid charges that he had been “wildly opti- mistic” in his earlier projections. The Bank now expects a “choppy recov- ery” with growth averaging 2.7 per cent in 2011, down from its forecast in May of 3.4 per cent, as chancellor Osborne’s public spending cuts, out- lined in his June Budget, begin. The Bank for the first time also indicated that there was an outside chance that the economy could dip back into recession, with its forecasts for growth suggesting that it was fac- toring in a three per cent likelihood of a renewed downturn. Labour’s Lord Myners said King had “pointed the finger squarely at the

5,380 5,245.21 11 Aug 5,340 5,300 5,260 5,220 09:00 10:00 11:00 12:00 13:00 14:00 15:00
5,380
5,245.21
11 Aug
5,340
5,300
5,260
5,220
09:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00

Mervyn King was forced to revise down the Bank of England growth forecasts in its Inflation Report yesterday

Picture: GETTY

government” in citing reduced confi- dence, limited credit and fiscal con- solidation as “the things bearing down” on economic activity. King’s downbeat outlook came as official data showed that the econo- my added workers at the fastest rate since 1989 in the three months to the end of June, but economists warned it would still not be enough to offset huge public sector job cuts in the off- ing. Employment jumped by 184,000

to 29m, the Office for National Statistics said, while unemployment on the International Labour Organisation measure fell by 49,000 to 2.45m. But the government was quick to play down fears of a double-dip reces- sion with employment minister Chris Grayling hailing the figures as a “good step in the right direction” and energy secretary Chris Huhne insist- ing the UK has “strong forces pushing

us towards prosperity”. Meanwhile, across the Atlantic the US monthly trade gap grew by a steeper-than-expected 18.8 per cent between May and June to $49.9bn

(£31bn) – the highest since October

2008. Emerging just a day after the

Federal Reserve’s renewed push toward monetary easing, the data confirmed fears of a weakening eco- nomic recovery.

INFLATION REPORT: P7, MARKETS: P16

FTSE 100 5,245.21 -131.20 DOW 10,378.83 -265.42 NASDAQ 2,208.63 -68.54 £/$ 1.56 -0.02 £/¤ 1.22 +0.01 ¤/$ 1.28 -0.03

UBS to fight plagiarism accusations

LEGAL

BY OLIVER SHAH

UBS last night said it would “vigorous- ly” fight a potentially embarrassing lawsuit from a small news agency, which has accused the investment bank of lifting copyrighted material for its in-house updates. Energy Intelligence, an oil and gas reporting service, claims UBS repro- duced parts of its articles for its own energy newsletter, Daily Oil News. It is understood UBS’ publication is an aggregation of sector-specific news rather than proprietary analysis. UBS lifted information from Energy Intelligence and sent it out to clients at least 10 times between 2006 and 2007, according to papers filed at the High Court of Justice. At the heart of the case is London- based UBS oil analyst Jon Rigby. Rigby had a single-user subscription to Energy Intelligence news and coordi- nated the institution’s Daily Oil News publication, which is sent out to 17 countries, the lawsuit alleges. According to Bloomberg, UBS is accused of acting “in a systematic manner over a long period of time [with a view to] enhancing its profile.” UBS stated: “UBS intends to defend the case vigorously.”

UBS stated: “UBS intends to defend the case vigorously.” UBS oil analyst Jon Rigby leads the

UBS oil analyst Jon Rigby leads the team accused of copying arti- cles from news agency Energy Intelligence

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News

CITYA.M.

12 AUGUST 2010

Desmond’s Channel Five revolution

A.M. 12 AUGUST 2010 Desmond’s Channel Five revolution DEPUTY EDITOR’S LETTER DAVID HELLIER THE inevitable

DEPUTY EDITOR’S LETTER

DAVID HELLIER

THE inevitable bloodbath occurred at Richard Desmond’s newly acquired Channel Five yesterday as seven direc- tors and more than a quarter of the 300 employees were given their marching orders. The Northern & Shell and Express Group owner has promised further cost savings at the loss-making broad- caster but also an expansion of the programming budget to £300m a year over the next five years. He will cross promote the channel in his celebrity-focused OK! magazine and no doubt there will be some

favourable mentions of Five pro- grammes in the Daily and Sunday Express. Back in the 1990s, Lord Clive Hollick promised the same sort of cross promotion when he owned both the Express group and the ITV fran- chises such as Meridian, HTV and Anglia. But the strategy never really worked, both because the broadcast- ing regulations at the time were tighter and because ITV was not a sin- gle unified group. Desmond’s chances of achieving cross fertilisation across his media must surely be higher. Imagine a new series of Big Brother promoted tire- lessly in OK! and the Express and Star

titles, with exclusive interviews, news stories and the like being shared across the group. There will be no reticence on Desmond’s part about cross promo- tion, current regulations permitting.

As far as I understand it, Channel Five

will be allowed to plug Desmond’s newspaper titles so long as it does not

give them undue prominence. And the newspaper titles will be free to plug Channel Five as much as their editors see fit (quite a lot, I suspect). The key will be the extent to which Desmond’s growing media empire is successful in creating content that people want to view or read about. His ownership of the Express and Star titles may have been profitable but the Express and its Sunday stable- mate have found it massively difficult to reverse circulation declines. While the newspapers in Desmond’s empire are marginal play- ers, the same is also true of Channel Five. This is no News International, whose brands, such as the Sun or Sky, are media powerhouses. Nevertheless my prediction is that Channel Five, which lost £34m last year, will shortly become profitable. It will employ fewer people than before and it will be a fairly unusual place to work. When Desmond took over the Express Group almost ten years ago,

he quickly changed its culture and screwed down costs. Most remaining

foreign postings were cut, staff num- bers were reduced sharply and all expenses considered unnecessary were phased out. My own favourite budget cuts story from the time relates, bizarrely, to uncooked pork. The features desk used to feature the recipes of a celebrity chef. Under a previous regime the recipe would be cooked by

a known restaurant and the result

would be photographed for the Express magazine. The new regime instructed that one of the depart- ment’s PAs cook the meals and then get them photographed on-site. The plan back-fired when the PA in question, being Jewish, refused to handle pork, leaving it in its raw state for the photographer, whose picture of the uncooked meat adorned the feature page in the magazine. Life is unlikely to be dull at Channel Five. david.hellier@cityam.com Allister Heath is away. More: P12

NEWS | IN BRIEF

AIG sounds out appetite for AIA

American government-backed insurance giant AIG has held talks with Asian sov- ereign wealth funds including Singapore’s GIC and Temasek over cor- nerstone investments for its autumn ini- tial public offering (IPO) of AIA, it is understood. National investment corpo- rations from Abu Dhabi, Kuwait and Qatar are also thought to have shown an interest in taking large chunks of shares in AIG’s Far Eastern business. Up to 30 per cent of the stock could be placed privately rather than through an IPO.

Lloyds exposed to resort failure

British taxpayers are on the hook for millions of pounds of losses after Sea Island, an exclusive US holiday resort part-owned by Lloyds Banking Group, filed for Chapter 11 bankruptcy. The founding family behind the property hopes to sell it to out of bankruptcy to a consortium of investors for $198m (£126m). At the end of last year, Lloyds was among banks exposed to the tune of $340m through loans to the compa- ny. Sea Island began life in 1929 and has hosted prestigious guests such as Presidents Coolidge and Eisenhower.

guests such as Presidents Coolidge and Eisenhower. 7 t h Floor, Centurion House, 24 Monument Street,

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Private equity job for Davies

PRIVATE EQUITY

BY HARRY BANKS

FORMER government minister and past chairman of Standard Chartered

Mervyn Davies has joined private equity firm Corsair Capital, boosting the specialist financial services investor’s senior management team. Lord Davies joins Corsair, which spun out of JPMorgan Chase in 2006,

as

vice chairman and partner, based

in

London.

He most recently served as minister of state for trade, investment and small business under Gordon Brown’s Labour government, a post he took up after leaving Standard Chartered in 2008. The move sees Welshman Davies return to the buyout firm in a full- time deal making capacity. He previ- ously served as a member of its

advisory board during his time as Standard Chartered chairman. He also served as a senior executive of Wall Street giant Citigroup earlier in his career. Corsair counts Standard Chartered’s Americas chief executive, David Stileman, and Resolution chief executive John Tiner – former head of City watchdog the Financial Services Authority – among its advisory board

members.

The firm’s investments include California’s East West Bank and Polish insurer PZU.

California’s East West Bank and Polish insurer PZU. Mervyn Davies helped establish Standard Chartered as one

Mervyn Davies helped establish Standard Chartered as one of the leading banks in Asia and the Middle East.

as one of the leading banks in Asia and the Middle East. Baroness Warsi described the

Baroness Warsi described the Labour government’s actions as “criminal”

Picture: REX

MPs told to return pay-off

POLITICS

BY DAVID CROW

FORMER Labour cabinet ministers should hand back the £20,000 pay-off they received on leaving government to apologise for running up a huge budget deficit, the coalition govern- ment said yesterday. In an attack that was dismissed as a “gimmick” by Labour, Conservative party chairman Baroness Warsi has written to MPs who served in Gordon Brown’s cabinet, accusing them of

accepting “rewards for failure”. “By running up colossal debts on the nation’s credit card… what Labour did to British people is frankly criminal,” she said at a press confer- ence yesterday. The coalition is trying to make sure that voters blame the previous gov- ernment for swingeing public sector spending cuts planned by chancellor George Osborne. A Labour spokeswoman dismissed Warsi’s claims as “pathetic” and “diversionary”.

WHAT THE OTHER PAPERS SAY THIS MORNING

“diversionary”. WHAT THE OTHER PAPERS SAY THIS MORNING EVERBRIGHT BANK PRICES IPO AT TOP OF RANGE

EVERBRIGHT BANK PRICES IPO AT TOP OF RANGE

China Everbright Bank, the last of China’s big national lenders to sell shares to the public, is set to raise up to Rmb21.7bn in its initial public offering after pricing its shares at the top end of an indicative range. The country’s 11th-largest bank will sell its shares at Rmb3.10 each in what will probably be the second-largest IPO so far this year in Shanghai, fol- lowing the listing of Agricultural Bank of China last month.

DIAMOND

SALE

SETS

OFF

ROW

IN

HARARE

Zimbabwe has begun selling 900,000 carats of rough diamonds from the controversial Marange-Chiadzwa field, amid a political row over con- trol of revenue from the sale. Sales from the field in eastern Zimbabwe were suspended in November 2008.

UKRAINE CONSIDERS CAP ON WHEAT EXPORTS

Ukraine, one of the world’s top grain exporters, said yesterday it was con- sidering a cap on wheat exports, a move that would put more pressure on surging global grain prices. The announcement was made after Russia had introduced a ban on grain exports until the end of the year fol- lowing the devastation of its crops by the worst drought in a century. The World Bank has urged countries not

to restrict trade in grain.

IRAN HIT BY TOUGH FUEL SANCTIONS

Tougher sanctions against Iran

appeared to have halved the country’s petrol imports last month, according to the International Energy Agency.

As a result Iran has been forced to pay

a 25 per cent premium to market

prices for its petrol deliveries as many companies shy away from supplying the country, the western countries’ oil watchdog said yesterday. The US introduced new sanctions in June.

said yesterday. The US introduced new sanctions in June. UNHEALTHY WEALTHY SCRAP BUPA PLANS Fewer Britons

UNHEALTHY WEALTHY SCRAP BUPA PLANS

Fewer Britons and Americans are tak- ing out private health plans, sending profits from illness insurance at Bupa in the UK and US tumbling. Bupa said yesterday its surplus before taxation came in at £162 million in the first half of the year, down 1 per cent.

SECURITY FEARS RAISED OVER PALM AND ANDROID SMARTPHONES

Concerns surrounding the security of data sent over smartphones have emerged after a technology consul- tancy proved how easy it is to com- mandeer a mobile phone and use it

to record conversations or steal pass-

words. MWR Labs took less than three days to crack the security of smart- phones running the Palm and Android operating systems and is cur- rently testing the integrity of similar phones.

and is cur- rently testing the integrity of similar phones. NUNS ACCUSE BANKS IN $5M LAWSUIT

NUNS ACCUSE BANKS IN $5M LAWSUIT

Germany’s Deutsche Bank and US investment bank Morgan Stanley are facing a $5m lawsuit led by a group of Irish nuns. The nuns allege the two banks profited at their expense by fail- ing to redeem an investment linked to the debt of German financial group Dresdner Bank and in so doing cost them millions of pounds.

BURBERRY CHIEF ANGELA AHRENDTS TAKES PROFITS ON SHARES

Angela Ahrendts, the chief executive

of Burberry, has raised about £3.4m by

selling almost 400,000 shares in the luxury goods retailer. The sale has left her with just under 364,000 shares in the company, although she has options over 1.8m more. Of the amount that Ms Ahrendts raised, about £814,000 was used to cover tax liabilities. Burberry shares have risen 332.5p over the past year.

Burberry shares have risen 332.5p over the past year. FASTWEB FOUNDER TO STAND TRIAL A judge

FASTWEB FOUNDER TO STAND TRIAL

A judge ordered Italian billionaire and Fastweb founder Silvio Scaglia to stand trial on Nov. 2 on charges of belonging to a criminal association aimed at tax fraud, Rome prosecutors said. Mr. Scaglia, along with other for- mer executives of Italian telecommu- nications operators Fastweb and Telecom Italia’s cable unit Sparkle, are accused of involvement in a 2 bil- lion ($2.64 billion) money laundering and tax fraud scheme.

LAVAZZA BREWS DEAL WITH GREEN MOUNTAIN

For an extra jolt to its finances, U.S.- based Green Mountain Coffee Roasters is selling a 7% stake to Luigi Lavazza, Italy’s best-selling espresso brand, for $250 million. Together, the companies plan to develop new sin- gle-serving espresso machines and espresso capsules.

CITYA.M.

12 AUGUST 2010

News

3

US to tighten rules in wake of flash crash

REGULATION

BY OLIVER SHAH

US regulators are considering sweep- ing measures to prevent a repeat of the so-called “flash crash” of 6 May, when the Dow Jones sparked panic by falling 1,000 points in 45 minutes. The Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission (CFTC) may extend upward and down- ward limits on stock movements. In June, the SEC approved rules to sus- pend trading in S&P 500 shares which see a 10 per cent swing in price dur- ing a five-minute period. The restric- tions could be applied to securities from other indices. The authorities are also mulling a ban on “stub” quotes used by market makers. Mary Schapiro, chairman of the SEC, announced the possible steps at a hearing to discuss the freak finan- cial event three months ago. The crash saw around 55 stocks on the S&P 500 dive precipitously in the space of minutes before climbing

back to their normal levels. Among those affected were Accenture, whose price plunged from $40 per share to one cent, and Procter & Gamble, which lost 35 per cent of its market value. The SEC and CFTC taskforce will

deliver a report addressing the occur- rence early next month. Some mem- bers warned a similar lightning bolt could strike again. CFTC commission- er Michael Dunn said: “One thing

really struck me today

pened on 6 May can happen again. In fact, [people] expect it to happen.” One senior Democratic senator, Charles Schumer, called on the panel to force market makers to step in and provide liquidity at times of rapid, unexpected price declines.

what hap-

FAST FACTS | FLASH CRASH

High frequency trading, whereby computer

algorithms transact large volumes of shares in

split seconds, has been seen as a possible cause.

The four main US public exchanges now have

“circuit breakers” on S&P 500 stocks.

now have “circuit breakers” on S&P 500 stocks. Rok finance director Ashley Martin (inset) has been

Rok finance director Ashley Martin (inset) has been suspended by the housing repair firm

Rok shares tank as audit finds big financial failures

PROPERTY

BY MARION DAKERS

HOUSING repair firm Rok shed nearly half its share value yesterday after it said “serious failings” were found in parts of the business, resulting in the

suspension of its finance director. Ashley Martin has been immediate- ly suspended due to a need for “new

financial leadership”. The firm said he is not suspected of fraud, but that a further review will be carried out.

Rok warned full-year profits would significantly undershoot market fore- casts of about £20m because of finan- cial mismanagement in its plumbing division. The profit warning followed an independent review by accountants BDO, who found “serious failings in financial controls”. The firm said its interim results due on Tuesday will still be in line with expectations. Shares closed down 45 per cent at 16p.

GM is poised to pull trigger for $20bn flotation

AUTOMOBILES

GENERAL MOTORS could file a regis-

tration for its initial public offering (IPO) of up to $20bn (£12.8bn) as soon

as tomorrow, after it reports quarterly

results today, three people with knowledge of the process said. GM’s IPO registration was expected later this month, but the company and advisers have sent conflicting sig- nals about how quickly that first step toward reducing the government’s majority stake could happen. The IPO filing was expected in mid- August, but GM chief executive Ed Whitacre said last week that the com- pany did not plan to file a registration in the near term, prompting specula- tion that the timing had slipped. The timing of the IPO filing had not yet been set and hinges on the progress GM makes on securing a credit facility in ongoing talks with banks, according to a source. GM, now 61 per cent-owned by the US government, is counting on the momentum from its second consecu-

tive quarter of profits to help it clinch

a $5bn bank credit facility as it pre-

pares for an offering by year end. If the American automaker does file for an IPO valued at $20bn, it would be the biggest US IPO since credit card firm Visa’s $19.7bn offer- ing in March 2008.

an IPO valued at $20bn, it would be the biggest US IPO since credit card firm

CITYA.M.

12 AUGUST 2010

News

5

▲ ▲ ▲ ▲ ▲ CITY A.M. 12 AUGUST 2010 News 5 ING boss Jan Hommen

ING boss Jan Hommen saw a rebound to profit in the first half

Picture: REUTERS

ING is back in the black

BANKING

BY OLIVER SHAH

BAILED-OUT Dutch bank ING

bounced back into first-half profit yesterday and said it was on track to divest its insurance arm to comply with European rules on state aid.

A strong resurgence in retail bank-

ing helped push ING to a net gain of 2.4bn (£2bn) for the first six months

of the year, up from a loss of 722m last year, when it was hit by heavy writedowns to its bond and property portfolios. Underlying profits from high street lending tripled to 944m year-on-year in the second quarter as the institution enjoyed higher inter- est margins on savings and put aside

less cushioning for bad loans. But performance was less spectacu- lar at ING’s insurance division, which

it aims to run on a standalone basis by the end of the year. The business snuck back to a slim pre-tax profit of 154m over the half and lost 115m in the second quarter. Chief executive Jan Hommen said the unit would be floated or sold, with analysts estimating the total value at around 15bn. Proceeds will be used to repay the 5bn ING still owes the Dutch taxpayer.

Bank of Ireland sees losses surge

BANKING

BY VICTORIA BATES

BANK of Ireland (BoI) yesterday dis- tanced itself from its fellow state-sup- ported Irish banks by reiterating its commitment to regaining financial independence, despite admitting that underlying pre-tax losses doubled over the first half of the year. BoI, which is 36 per cent owned by the Irish government, posted a core pre-tax loss of 1.25bn (£1bn) for the six months to end of June, compared to a loss of 0.67bn last year. But chief executive Richie Boucher was adamant the group remains com- mitted to extricating itself in a “safe and prudent” manner from state sup- port. The pledge come in stark con- trast to its peers, after fully-nationalised Anglo Irish Bank on Tuesday won EU approval for a fresh bailout of up to 10bn from the Irish government. Boucher said Bank of Ireland’s recent 2.9bn independent capital raising exercise was a “critical step” in the process, demonstrating it has the support of investors. “We continue to build on this through our focus on gathering cus- tomer deposits and extending the maturity profile of our wholesale funding,” Boucher added. Bank of Ireland, which last month passed Europe’s stress tests with an adverse scenario tier one capital ratio of 7.1 per cent, comfortably over the six per cent EU threshold, warned yes- terday that loan impairment charges had remained high as the Irish econo- my continues to stutter. Excluding the pool of toxic loans which it has earmarked for sale to Ireland’s “bad bank”, the National Asset Management Agency (NAMA), impair- ment charges on loans and advances to customers fell over the first half to 893m, just 3.6 per cent below where they stood this time last year.

IN PARTNERSHIP WITH Paul McCartney (‘Mike’s Brother’) by Sam Walsh © estate of Sam Walsh
IN PARTNERSHIP WITH
Paul McCartney (‘Mike’s Brother’) by Sam Walsh © estate of Sam Walsh
Guess who I saw last night?
Enjoy art, music, drinks, tours, talks and workshops
Thursdays and Fridays 18.00 – 21.00. Free Admission
www.npg.org.uk l
Leicester Square

NAB reports hike in its bad debts

BANKING

BY STEVE DINNEEN

NATIONAL Australia Bank’s (NAB) UK operations have seen bad debts rise according to a market update. The firm’s Clydesdale and Yorkshire Bank operations saw debts that are more than 90 days overdue rise from 2.98 per cent of gross lend- ing in the first quarter to 3.36 per cent. This is in contrast to generally improving bad debt ratios across the majority of UK banks. The results are still an improve- ment on bad debt figures for 2009, however. The update said: “Trading condi- tions remain challenging for busi- nesses, and this is reflected in asset quality measures.” NAB says it is cautious about the state of the UK economy but believes it is on track to hit its target of £10bn of new lending by October 2011. It also said it has seen evidence that businesses are feeling more bullish and showing a greater appetite for borrowing. The bank reported earnings of $1.1bn (£700m) for the three months to June. However, group revenue was slight- ly below the average for the first half, with NAB citing “ accounting volatili- ty arising from increased credit spreads”.

ANALYSIS l NAB 23.89 AUS$ 11 Aug 25 24 23 17 May 7 Jun 28
ANALYSIS l NAB
23.89
AUS$
11 Aug
25
24
23
17 May
7 Jun
28 Jun 12 Jul 26 Jul 9 Aug

Underground workers vote to strike

TRANSPORT

BY STEVE DINNEEN

LONDON could be plunged into trans- port chaos after rail union RMT’s members voted overwhelmingly in favour of strike action. The underground workers are furi- ous the government is pushing ahead with tough cost cuts they say could total more than £4bn over three years.

is thought station and ticket staff

are likely to bear the brunt of the cuts. The union also says vital mainte- nance work will be affected. The union now has 28 days to decide whether it will stage a walkout that could bring the capital grinding

to a halt.

It

A spokesman for RMT said: “If you

start cutting back on these key staff it will impact on the entire system. It won’t just affect our members, it will

affect the transport-using public. “We also fear this is just the first wave of cuts that could badly affect the underground network. We want assurances this won’t happen.” Members of the union voted 76 per

cent in favour of strike action and 88 per cent of action short of striking.

It will now liaise with sister trans-

port union TSSA, which will announce its own ballot result next

week.

Cisco misses estimates

TECHNOLOGY

CISCO Systems quarterly revenue fell slightly short of Wall Street’s expecta- tions, disappointing investors who thought an improving economy and growing internet traffic would have spurred even stronger sales of routers

and switches. Cisco, the world’s biggest network equipment maker, said yesterday that revenue in the quarter ended 31 July

rose 27 per cent from a year earlier to $10.8bn (£6.9bn). That was slightly below market forecasts of $10.9bn. Its net profit rose to $1.9bn from $1.1bn a year earlier. Cisco shares are down around six per cent so far this year, due to wor- ries that slower growth in Europe and China could hurt a nascent recovery in global technology spending. Cisco is considered one of the technology sector’s prime bellwethers.

6

Focus on Standard Life

CITYA.M.

12 AUGUST 2010

Standard Life reports 10pc profits boost

INSURANCE

BY OLIVER SHAH

STANDARD LIFE delivered a higher operating profit and cranked up its dividend yesterday, but investors were underwhelmed by weaker UK per- formance and shrinking margins. The Scottish life and pensions group hailed “the progress we have made as a business” as David Nish announced his first interim results as chief executive. Strong sales in Canada and Asia helped push operat- ing profits up 10 per cent to £182m on an International Financial Reporting Standards (IFRS) basis, with the post-tax figure also standing at £182m after a loss of £20m last year. Standard Life also boosted its half-year payout 4.8 per cent to 4.35p. But disappointed investors sold Standard Life paper, sending the stock down 2.4 per cent to 151.1p. Given a share price rally of almost a quarter over the past month some analysts said profit-taking was to be expected, but others said concerns

were more deep-seated. UK operating profits were down five per cent to £76m, partially depressed by an investment pro- gramme, while the margin slipped 30 basis points to 1.5 per cent. Barrie Cornes at Panmure Gordon said: “What they’re doing in terms of investing all comes through in 12 to 18 months’ time. In the meantime I’m not convinced growth will be as stellar as it could be.” Marcus Barnard at Oriel Securities said it was difficult to gauge the out- look for the company as it was still in transition from mutual to large-scale seller of savings products. “You can give them the benefit of the doubt but it’s difficult to get any great deal of comfort from these numbers.” Nish insisted the group was more focused after the sale of its banking and healthcare units and said the board was unfazed by the prospect of a weak economy. “In a lower-growth environment you often see the sav- ings rate go up because individuals still have money,” he told City A.M.

A BREAKDOWN OF STANDARD LIFE'S FIRST-HALF RESULTS IFRS pre-tax operating profit up 10 per cent
A BREAKDOWN OF STANDARD LIFE'S FIRST-HALF RESULTS
IFRS pre-tax operating profit up 10 per cent
to £182m
EEV pre-tax operating profit up 11 per cent to
£364m
Net inflows up 71 per cent to £5.3bn
Investment spend up 64 per cent to £72m
Dividend up 4.8 per cent to 4.35p

Investors should stick with this stock

Y OU could forgive Standard Life’s management for being more than a little disgruntled yesterday. The life insurer

Still, a bearish broker’s note from Panmure Gordon, which downgrad- ed the shares from “buy” to “hold”, didn’t go down well with a febrile market: the stock closed off 3.6 per cent at 208.6p. Sure, investors were probably a little disgruntled that cash flow grew by six per cent to £160m, while the interim dividend was hiked by a less impressive 4.8 per cent. And it would be nice to know what the life

insurer plans to do with its ever- growing £1.3bn cash pile. But there is no doubt about it:

these are good shares, with an impressive yield of 5.66 per cent,

better than rivals like L&G (4.27 per cent) and Prudential (3.41 per cent). And the long-term outlook is good for life insurers, as people in the UK put aside more for their retirement to cope with the ever-worsening pensions landscape. Sure, the stock – like its peers – has had a good run of late, meaning some are going to take profits. But investors could make more if they stick by

Standard Life. david.crow@cityam.com

delivered a robust set of results, with embedded enterprise value (EEV) operating profit up 11 per cent to £364m, and International Financial Reporting Standards oper- ating profit up 10 per cent to

£182m.

New business growth was reassur- ingly strong at 29 per cent and

inflows at Standard Life invest- ments were up 52 per cent, bringing third party assets under manage- ment to a record-breaking £63bn.

BOTTOM LINE

Analysis by David Crow

cent, bringing third party assets under manage- ment to a record-breaking £63bn. BOTTOM LINE Analysis by

CITYA.M.

12 AUGUST 2010

News

7

Inflation forecasts stretch credibility

ECONOMICS

BY JULIET SAMUEL

ANALYSTS reacted with incredulity yesterday as Bank of England gover- nor Mervyn King claimed that “tem- porary shocks” were to blame for persistent above-target inflation and that the Consumer Price Index (CPI) would return to the Bank’s two per cent target before the end of 2011. This means the Bank once again pushed out the deadline by which it will hit the target, having previously forecast it would do so by the end of this year. But analysts said that after five years of getting it wrong, the Bank’s projections are testing credibility.

Fathom Consulting’s Danny Gabay called King’s explanation for missed forecasts “the Lemony Snicket defence – it’s all a series of unfortu- nate events. The Bank didn’t come clean about why their forecasts have been so badly wrong”. And Henderson’s Simon Ward cast doubt on the Bank’s assump- tion that spare capacity will weigh down on inflation next year: “Again, they wheeled out this argument about spare capacity without taking into account the fact that it has not worked,” he told City A.M The Bank’s argument about spare capacity defies some of its own analysis. Explaining why its projec- tions have been wrong, yesterday’s

report states: “The recent recession

may have had a more immediate

adverse impact on effective supply

than anticipated, so that a smaller

margin of spare capacity has emerged.”

ANALYSIS l CPIInflationpercentage (quarterly change on previous year) 5.0 4.0 Actual 3.0 2.0 Target 1.0
ANALYSIS l CPIInflationpercentage
(quarterly change on previous year)
5.0
4.0
Actual
3.0
2.0
Target
1.0
BoE Forecast
2006
2007
2008
2009 2010

CITY VIEWS: ARE YOU WORRIED THAT THE BANK GOT ITS FORECASTS SO BADLY WRONG?

Interviews by Victoria Bates

MATTHEW KING | LLOYD’S BROKER

by Victoria Bates MATTHEW KING | LLOYD’S BROKER “I think it would be much worse if

“I think it would be much worse if the situation changed and the Bank carried on being bullish regard- less – it’s much better that it is prepared to revise these estimates. Also, they are just forecasts, the Bank does not say this is what will definitely happen.”

JAMES COLERIDGE | RSA

is what will definitely happen.” JAMES COLERIDGE | RSA “It is very difficult to predict anything

“It is very difficult to predict anything too accurately at the moment with the climate being so volatile. The rest of Europe is having a major impact on our economy, as is the news coming out of the US, and the impact of the government’s austerity measures is yet to be seen.”

DANNY YIP | LLOYDS BANKING GROUP

is yet to be seen.” DANNY YIP | LLOYDS BANKING GROUP “The Bank is now being

“The Bank is now being realistic. Initially when we saw positive growth, everyone jumped on the recov- ery bandwagon. But at least now we are prepared for the worst – it is a sign of transparency that the Bank is ready to revise down its forecasts, not one of weakness.”

King ups the ante on bank lending to small firms

ECONOMICS

MERVYN King again waded into the row over bank lending rates at the Bank of England’s inflation report meeting yesterday, accusing banks of profiting off struggling small businesses. “The spread that banks are mak- ing on loans is much, much higher than it was before and compared

with the decade’s average,” he said. Unlike large businesses, he said that small firms are unable to access other sources of credit by issuing equities or bonds. His comments come after an appearance before the Treasury Select Committee last week in which he referred to banks’ levels of lending to small businesses as “heartbreaking”.

Small business groups added their voices to King’s, calling on the government to adopt a “carrot

and stick” approach to force banks

to lend, with penalties for failing to do so. Phil McCabe of the Forum of Private Business said: “Banks aren’t lending enough to small business- es and when they are the cost is too steep.”

Mortgage lending jumps in June but volumes stay below pre-crisis levels

PROPERTY

BY OLIVER SHAH

HOME loan volumes picked up in June but still languished at about a third of their pre-financial crisis levels, according to the Council of Mortgage Lenders (CML). Banks and building societies extended £13.1bn of credit to housebuyers in June, an increase of 15 per cent on May’s figure and seven per cent up on the previous

year. First-time buyers were among those who benefited in the uplift, with the number of loans going to people without a foot on the prop- erty ladder increasing 20 per cent month-on-month to 19,400. The total sum lent for mortgages in the second quarter – £35bn – was up marginally on last year, but remained well below the £93.9bn handed out in the same period of 2007. The CML warned the proper- ty market was unlikely to surge

upward in the next six months.

“Transaction levels are subdued

and likely to remain so while

access to credit is constrained,” said

CML economist Paul Samter.

The industry body also found fixed-rate home loans making a comeback. Nearly half of borrowers – 48 per cent – chose a fixed-rate mortgage in June, despite a histori- cally low base interest rate of 0.5 per cent. This was due to lenders cheapening their deals.

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CITYA.M.

12 AUGUST 2010

Consumer News

9

Nestle ups outlook as business booms in emerging markets

RETAIL

BY JOHN DUNNE

SWISS food giant Nestle raised its full- year outlook yesterday after buoyant demand for its strong brands in emerging markets boosted sales in the first half. The world’s biggest food group said its food and beverages business should show underlying sales growth of around five per cent. So far the group – whose brands include Nescafe coffee, Kitkat choco- late bars, Perrier water and Buitoni sauces – had only said growth should beat last year’s 3.9 per cent. Net profit rose to SwFr5.5bn (£3.3bn) from SwFr5.1bn in the year-earlier period, as sales grew 5.9 per cent to SwFr55.34bn. Underlying or organic growth -- which strips out currency effects and acquisitions -- at Nestle’s

food and beverages unit stood at 5.7 per cent. “We have increased invest- ment in our brands, people and capa- bilities and have prepared the company for a more challenging sec- ond half,” chief executive Paul Bulcke said in a statement. Jon Cox, an analyst at Kepler Capital Markets, said: “This is an excellent set of figures and a clear raise in guidance despite talk of reconfirmation.” Anglo-Dutch rival Unilever warned last week the second half would be tougher due to increased competition and higher raw material costs.

due to increased competition and higher raw material costs. Nestle chief executive Paul Bulcke was upbeat

Nestle chief executive Paul Bulcke was upbeat about the food and drinks company’s strong per- formance in the first half of the year

SWISS GIANT NESTLE IS ON A ROLL

Net profit was up 7.5 per cent to SwFr 5.5bn (£3.3bn) in the first half.
Net profit was up
7.5 per cent
to SwFr 5.5bn
(£3.3bn) in the first half.
Organic growth up
5.7 per cent
at food and
beverages unit
Nestle operates in
86 countries
around the world
and employs
283,000 people

NEWS | IN BRIEF

Harris is JJB’s largest shareholder

US investor Harris Associates has increased its stake in JJB Sports to 17.9 per cent, making it the biggest share- holder in the recovering sportswear retailer. Harris upped its stake to 116m shares from 104m over the last few days. Last week it raised its stake from 93m. The share-buying spree takes Harris Associates ahead of Crystal Amber, which has a 15.4 per cent stake in JJB. Chief investment officer at Harris Associates, David Herro, has been a long-term shareholder in the retail chain.

Flying Brand profit crashes

Flower and gardening home shopping group Flying Brands today said its half- year, pre-tax profits slid 26 per cent to £1.4m but added that confidence about shoppers’ spending meant it was recom- mencing shareholder payouts. But the firm, which owns the floral delivery service Flying Flowers, still announced an interim dividend of 1.6p a share after it had ditched the payout in March last year. It said sales in its gardening arm, which offers flowers, bird food and seeds online, were down slightly from £11.3m during the six months to July last year to £11m this time. The group's chief executive, Stephen Cook, said: “Our confidence in the future of Flying Brands is reflected in our decision to return to paying dividends.” The company said future sales should increase.

Thomas Cook hit as Brits shun holidays

LEISURE

BY JOHN DUNNE

TOUR operator Thomas Cook yesterday warned full-year operating profit would be at the lower end of forecasts after a slowdown in bookings as Britain’s emergency Budget forced holidaymak- ers into ditching their plans to go abroad. Europe’s second-biggest tour opera- tor also said the impact from disrup- tion caused by a volcanic ash cloud closing airspace in April and May had been worse than expected while unfavourable currency movements hit profits. Thomas Cook added that good sum- mer weather and the World Cup had contributed to holidaymakers opting

to stay in Britain. Chief executive Manny Fontenla- Novoa said: “The fine summer weather enjoyed over much of the UK and the uncertain economic environment have meant that bookings have been softer, which has resulted in lower margins.” He said the company now expected to make full-year EBIT (earnings before interest and tax) of between £404m and £405m compared with a consen- sus forecast among analysts of £415m. The total cost of the volcanic ash dis- ruption is now expected to be £82m compared with the company’s previ- ous forecast of £60m to £80m, he added. The company said its strategy will include concentrating in more upmar-

ket holiday destinations on countries including Turkey. Four or five-star hotels account for more than 40 per cent of its business. That proportion will rise to between 54 per cent and 57 per cent next year, Fontenla-Novoa said.

ANALYSIS l Thomas Cook Group p 240 180.90 230 11 Aug 220 210 200 190
ANALYSIS l Thomas Cook Group
p
240
180.90
230
11 Aug
220
210
200
190
180
17 May
7 Jun
25 Jun
15 Jul
4 Aug

ANALYST VIEWS: CAN THOMAS COOK BOUNCE BACK?

Interviews by John Dunne

RICHARD HUNTER | HARGREAVES LANSDOWN

While the news is disappointing and reflective of poor UK trading and prospects – quite apart from adverse

currency movements having had an impact – there are positives, such as the dividend yield which is currently six per

cent. Following these numbers, the current market consensus is that the shares are a ‘buy’.

SAM HART | CHARLES STANLEY

The shares look very cheap, but the trading update highlights the relatively low quality of earnings

in the tour-operator sub-sector. We think the shares will struggle to advance while earnings forecasts continue to be

downgraded. Our recommendation remains ‘hold’.

NICK BATRAM | KCB PEEL HUNT

The market was clearly preparing for the worst following the update from TUI Travel. However, a five per

cent downgrade represents a relatively robust and creditable performance. The performance could have been much

worse given the challenging economic backdrop.

performance could have been much worse given the challenging economic backdrop. ” MORE NEWS ONLINE www.cityam.com
performance could have been much worse given the challenging economic backdrop. ” MORE NEWS ONLINE www.cityam.com
performance could have been much worse given the challenging economic backdrop. ” MORE NEWS ONLINE www.cityam.com

MORE NEWS

ONLINE

www.cityam.com

MORE NEWS ONLINE www.cityam.com
10 The Capitalist CITYA.M. 12 AUGUST 2010 EDITED BY VICTORIA BATES GOT A STORY? EMAIL
10 The Capitalist
CITYA.M.
12 AUGUST 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

GUARDIAN DRAGS ITS HEELS OVER RENEWING HAY SPONSORSHIP DEAL

WHAT with an enthusiastic push into online investment, a string of ill- advised private equity deals and a move to swanky new offices at Kings Cross, it appears more traditional stal- warts of the Guardian’s extra-curricu- lar programme could be coming under threat. A little bird tells The Capitalist that the newspaper’s long-standing spon- sorship of the Hay literary festival is

currently under review, with a renew- al of the deal next year “far from cer- tain”. “Not so,” huffs festival director Peter Florence, though he does admit that after almost a decade with the Guardian in the title sponsor’s spot, Hay is now “renegotiating” its media sponsorship. An announcement is expected in September. Word from the Guardian’s upper

echelons is that the “chances are that the sponsorship will be renewed”, with plenty of the usual waffle being spouted about contracts ending and the importance of its key audience. Mind you, that audience has cer- tainly altered a bit in recent years as Hay has broken free from its academic constraints. It’s now a regular hotspot for the doyens of finance and politics – 2010’s sparkling list of attendees

and politics – 2010’s sparkling list of attendees The Guardian has sponsored Hay for nine years
and politics – 2010’s sparkling list of attendees The Guardian has sponsored Hay for nine years
and politics – 2010’s sparkling list of attendees The Guardian has sponsored Hay for nine years
and politics – 2010’s sparkling list of attendees The Guardian has sponsored Hay for nine years
and politics – 2010’s sparkling list of attendees The Guardian has sponsored Hay for nine years
and politics – 2010’s sparkling list of attendees The Guardian has sponsored Hay for nine years
and politics – 2010’s sparkling list of attendees The Guardian has sponsored Hay for nine years

The Guardian has sponsored Hay for nine years Pictures: GETTY, Micha Theiner/City A.M.

included HSBC chairman Stephen Green, big cheeses from fellow spon- sors Barclays Wealth and Sky and min- isters Michael Gove and David Willetts.

CALAMITY CHRIS

A statistical headache yesterday for

employment minister Chris Grayling, after the Department for Work and Pensions rapped out a press release claiming that there are 71,000 house- holds in London where no-one has ever worked, equivalent to 23 per cent of the capital. Perturbed by the maths, a conscien- tious City A.M.er rang up to check the figures, to be greeted by a red-faced

FISH BOWL

They say looking at fish swimming peacefully in an aquarium promotes psychological and physical wellbeing, so the many City workers moving into the newly-constructed Heron Tower are

set to be a very healthy bunch indeed. The tower yesterday took delivery of Europe’s largest privately-owned aquarium, shipped to Bishopsgate all the way from Colorado. Once it has been filled, the 12m x 4m x 2m tank will hold 70,000 litres of water and will be home to more than 1,200 tropical marine fish imported from the epony- mous Heron Island, located off the Great Barrier Reef.

mous Heron Island, located off the Great Barrier Reef. Grayling has made a few statistics slip-ups

Grayling has made a few statistics slip-ups

spinner. “It’s actually 61,000 house-

holds, equivalent to just seven per cent

of London,” she explained, apologeti-

cally. This isn’t the first run-in Grayling has had with a calculator, of course:

earlier this year, as shadow home sec- retary, he was publicly rebuked by the head of the UK Statistics Authority for manipulating crime statistic compar- isons in the election. Here’s to third time lucky, eh?

SEX APPEAL

GREED IS GOOD

Investors who are easily star-struck should probably steer clear of the CLSA investor conference in Hong Kong next month, where none other than Hollywood star Michael Douglas is due to be guest speaker. Douglas’ main credential for the job is his role playing trader Gordon Gekko in the Wall Street films, though he’s not afraid to bring a bit of alterna- tive spice to the conference – topics will range from filmmaking to nuclear abolition and the prevention of small arms proliferation.

CRIME STOPPERS

Finally, a bit of sleuthing for our read- ers, after the British Transport Police got in touch to ask for help solving a case at Liverpool Street station. The incident, which took place on Sunday 11 July at 10.45pm, occurred when a woman began to throw rub- bish at three other women outside McDonalds. When her targets asked her to stop, they were assaulted by her male companion, who broke one of the ladies’ eye sock-

her male companion, who broke one of the ladies’ eye sock- When it comes to sexual

When it comes to sexual conquests, iPhone users are even more successful than England foot- ballers. That’s the word from dating site OKCupid.com, anyway, which has crunched the numbers on almost 10,000 smartphone owners and found that Apple’s device was up to twice as likely to get its owner some bedroom action

as

Android phones. Men with iPhones had on average 10 sexual partners by age 30, com- pared to 8.1 for the BlackBerry and a

ets. The woman is white, between the ages of 20 and 23, with blonde hair which was tied up. She was wearing an orange dress with a leop- ard print scarf. The man is white, 5’10” and of the same age, with short dark brown hair. Anyone with infor- mation can contact BTP 0800 40 50 40, quoting reference 470 and the date of the attack.

those with BlackBerry or Google

pitiful six for the Android. The effect,

it

nounced for female iPhone users, who

would appear, is even more pro-

had around 12.3 partners by age 30, compared to similar numbers to the men for the other two devices.

CITYA.M.

12 AUGUST 2010

News

11

▲ ▲ ▲ ▲ ▲ CITY A.M. 12 AUGUST 2010 News 11 Russian oligarch Oleg Deripaska

Russian oligarch Oleg Deripaska wants to float another one of his firms Picture: REUTERS

Deripaska eyes new IPO

ENERGY

BY HARRY BANKS

RUSSIAN oligarch Oleg Deripaska is understood to be valuing his electrici- ty producer EuroSibEnergo at around $8bn (£5.1bn) ahead of a planned Hong Kong IPO this autumn. The billionaire, who successfully listed aluminium giant Rusal on the same bourse in January, is currently

marketing his power unit – formerly called En+ Power – to potential cor- nerstone investors in Moscow. Deripaska hopes to list 25 per cent of EuroSibEnergo shares, meaning he could raise $2bn in what would be a huge boost to the flagging Russian IPO market. The Rusal float generated $2.2bn at the beginning of the year, but the Russian IPO market has been all but

closed since then as investors fret amid global economic uncertainty. Deripaska was Russia’s richest man before last year’s economic slowdown plunged his metals and power empire into financial crisis – only alleviated by a major debt restructuring and the Rusal IPO. Deutsche Bank and China’s BOC International are set to be the joint bookrunners on the EuroSibEnergo IPO.

RWE starts auction for German grid

PRIVATE EQUITY

BY HARRY BANKS

GERMANY’S RWE, Europe’s fifth- largest utility, said it has launched an auction process for the sale of its gas transmission network Thyssengas. RWE, which has to sell the business by March 2011 after settling an EU antitrust investigation, said it was expecting expressions of interest for the grid by 25 August. “We contacted potential investors from Germany and abroad last week. We hope to get answers from serious investors by 25 August and finish the process by the end of the year,” an RWE spokeswoman said late yesterday. One source who declined to be named, but who is familiar with the deal, said Thyssengas is estimated to have a regulated asset base of around

500m.

A consortium of Bavarian gas com- pany Bayerngas and local utilities Stadtwerke Dortmund, Dortmunder Energie und Wasser, Stadtwerke Bochum, Munster and Gelsenwasser is interested in bidding for Thyssengas, spokespeople for it said. The sale could attract financial investors such as infrastructure funds, though German gas infrastruc- ture deals have recently struggled. RWE shares closed down 2.3 per cent to 54.2, in line with the German blue-chip DAX index, which closed down 2.1 per cent.

ANALYSIS l RWE 54.19 € 11 Aug 62 60 56 52 17 May 4 Jun
ANALYSIS l RWE
54.19
11 Aug
62
60
56
52
17 May
4 Jun
24 Jun
14 Jul
3 Aug
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Tribal Group receives bid approaches

M&A

BY VICTORIA BATES

TRIBAL Group, which provides gov- ernment outsourcing services and coordinates school inspections, saw its shares leap yesterday after con- firming it had been the subject of a slew of takeover approaches. The interest is thought to have come primarily from private equity companies, with Asia-focused New Silk Route (NSR) or larger rival Capita touted as potential buyers. Analysts said Tribal’s budding Asian education software business would strike a chord with NSR’s strategic focus on investing in Eastern markets. Tribal’s government business also looks attractive to bidders as the Aim- listed company positions itself as a leading consultant to the public sec- tor, to help steer it through the slim- ming-down process prompted by the coalition’s austerity drive. “The company is very well-posi- tioned to support public sector organ- isations as they undertake change and to participate in an expected acceleration of outsourcing opportu- nities that will contribute to the improvement in public sector effi- ciencies,” Tribal said in an update yes- terday. Reports put the potential price tag for Tribal at around 100-125p a share, though sources close to the firm said a bid at that level would be viewed as relatively low-ball. Taking house bro- ker Investec’s year-end EPS forecast of 11.6p as a basis, a bid at 125p per share would put the company’s valua- tion at under 11 times earnings – a marked discount to larger rivals such as Capita, which trades at over 17 times earnings. “Tribal confirms that it has received preliminary expressions of interest which may or may not lead to an offer being made,” the firm said yesterday.

Micro Focus slashes its revenue target

TECHNOLOGY

BY STEVE DINNEEN

MICRO FOCUS International was forced to slash its full-year revenue target after underlying growth stalled in the first quarter, with customers delaying contracts and low-value deals remaining weak. The firm’s shares fell 31 per cent to a 16-month low yesterday after the company, which upgrades legacy

mainframe applications for compa- nies like Boeing and Tesco, updated the market. The company said it now expected low single-digit like-for-like revenue growth in the year to the end of April 2011, instead of mid-single digit growth. However, it expected no change to earnings guidance after cost cuts helped margins. Analysts at Numis believe the mar- ket overreacted, adjusting their rec-

ommendation to “buy”. David Toms said: “Our view is that the underlying performance is fairly consistent. It was clearly a disappointment and has refreshed investor concerns but in our view these are overdone.” Chief executive Nigel Clifford said:

“We still expect to meet our previous expectations for full year 2011 adjust- ed Ebitda and to achieve double-digit revenue growth over the medium term.”

Deutsche eyes EU greens

ENERGY

ALTERNATIVE energy investment

prospects have shrivelled in the United States after the Senate was unable to break a deadlock over tackling global warming, a Deutsche Bank official said. “You just throw your hands up and

we’re going to take our money

elsewhere,” said Kevin Parker, global

head of the bank’s Deutsche Asset

say

Management Division. Parker oversees nearly $700bn (£575bn) in funds that devote $6bn to $7bn to climate change products. Amid so much political uncertain- ty in the United States, Parker said Deutsche Bank will focus its “green” investment dollars more and more on opportunities in China and Western Europe, where it sees gov- ernments providing a more positive environment.

12

Technology and Media News

CITYA.M.

12 AUGUST 2010

New Five boss wanted Airey

MEDIA

BY STEVE DINNEEN

NEW Channel Five owner Richard Desmond was desperate to maintain the services of outgoing chief execu- tive Dawn Airey before her shock res- ignation yesterday, according to industry sources. Airey has enacted a clause in her contract that guaranteed her a senior role at former Five parent company RTL in the event of the broadcaster being bought. She will remain at the channel for “a few months” to oversee the transi- tion, which will include around 80 job losses from the 300-strong staff. She said yesterday: “The day Five was sold, my job was done. I love Five, its staff, its spirit and all we have achieved. I wish the channel, its team, Richard Desmond and Northern & Shell all the success they deserve.” Also following her out at board level will be channel controller

Richard Woolfe, director of strategy Charles Constable, director of corpo- rate affairs Sue Robertson, managing director Mark White, director of finance David Hockley, director of legal Paul Chinnery and head of HR Natasha Adams.

It was announced that Five’s direc-

tor of digital channels Jeff Ford will be

promoted to programme director.

Desmond says the cost cutting drive will be partly used to fund an ambi- tious £300m a year investment pro- gramme.

A spokesman said: “The savings aim

to realise efficiencies deriving from Five’s integration into the Northern & Shell group of companies and at the same time develop an ambitious new investment plan that will see the channel go toe-to-toe with the biggest players in the TV world.” Trusted Desmond lieutenant Paul Ashford is understood to have been drafted in to oversee the cost cutting drive.

to have been drafted in to oversee the cost cutting drive. (Clockwise from top left) Five
to have been drafted in to oversee the cost cutting drive. (Clockwise from top left) Five
to have been drafted in to oversee the cost cutting drive. (Clockwise from top left) Five
to have been drafted in to oversee the cost cutting drive. (Clockwise from top left) Five

(Clockwise from top left) Five boss Dawn Airey, Five controller Richard Woolfe, Paul Ashford and Five owner Richard Desmond

Richard Woolfe, Paul Ashford and Five owner Richard Desmond Ousted HP boss lowest rated CEO TECHNOLOGY

Ousted HP boss lowest rated CEO

TECHNOLOGY

BY STEVE DINNEEN

THE HP boss who was forced out after allegations by a former porn star had the lowest employee-rating of any major tech chief executive. Glassdoor, a website that allows employees to anonymously rate com- panies and their bosses, has Mark Hurd languishing at just 34 per cent approval, falling as low as 19 per cent last year. This is in stark contrast to Apple boss Steve Jobs who has an astonish- ing 98 per cent approval rating. 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 chief executive had been desperate to con- ceal his relationship with Jodie Fisher – the saucy star of movies including Sheer Passion, Intimate Obsession and Body of Influence 2.

BlackBerry faces India disconnection

TELECOMS

BY STEVE DINNEEN

JUST days after avoiding its services being shut down in Saudi Arabia, BlackBerry is facing an even bigger problem, with India questioning whether to allow its services. The emerging economic superpow- er may temporarily shut down BlackBerry’s messenger and email facilities if security concerns are not addressed in a meeting later today. The news will heap pressure on BlackBerry maker Research In Motion (RIM), which was forced to cave in to Saudi demands to hand over user codes that would let Saudi authori- ties monitor its BlackBerry Messenger service. In a matter of a few weeks the BlackBerry device – long the darling of the world’s chief executives and politicians – has become the target for its encrypted email and messag- ing services.

India, like several countries in the Middle East and North Africa, wants access to encrypted Blackberry com- munication, which has been linked to militant activity including the Mumbai attacks in 2008. India’s home ministry will press for a deadline to be fixed for RIM to share encryption details. Mobile phone operators could be asked to shut down RIM’s enterprise email and messenger services tem- porarily as a last alternative, if RIM does not agree to offer access to data. The responsibility to meet Indian security requirements rests with mobile phone operators in India rather than RIM.

rests with mobile phone operators in India rather than RIM. BlackBerry chief executive Mike Lazaridis is

BlackBerry chief executive Mike Lazaridis is desperate to avoid a ban of the firm’s services in India.

Google Street View put under scrutiny by German officials

TECHNOLOGY

THE German government said yester- day it will scrutinise Google’s prom- ise to respect privacy requests by letting people opt out of its Street View mapping system and that it would be ready to intervene if neces- sary. The response to Street View has been overwhelmingly negative, even though Germans have been given assurances they can have images of their homes kept out. But Google’s announcement on

Tuesday that it would allow Germans to stay out of Street View failed to allay fears that privacy would be compromised by the navi- gation system. Consumer minister Ilse Aigner said: “We’ll take a very close look at how effectively this works in practice and we’ll see from there.” More than 10,000 Germans have already formally requested their homes be deleted from Street View. Criticism from civil rights watchdogs will likely push that figure higher.

CITYA.M.

12 AUGUST 2010

Property and Construction News

13

Balfour Beatty sees profit lift

PROPERTY

BY MARION DAKERS

CONSTRUCTION group Balfour Beatty said it was well-placed to with- stand public sector spending cuts as it announced an increased order book and an earnings boost from its US acquisition. The construction firm said yester- day half-year pre-tax profit rose by 32 per cent to £141m, compared with £107m in 2009. “Our strategy has been to build Balfour as a global infrastructure

business. The results now reflect the acquisition of Parsons Brinckerhoff it’s performed extremely well in the first half,” chief executive Ian Tyler said. Profit at Balfour’s professional serv- ices division rose to £49m, against £6m in 2009, largely as a result of the company buying US management firm Parsons Brinkerhoff, which con- tributed a profit of £35m. Its interim dividend rose five per cent to 5.05p per share. Balfour also has signed a £460m contract for the second phase of satel-

lite building for Terminal Two at Heathrow. Tyler remained confident in the face of government cuts in the con- struction sector. “While there are challenges in some markets, overall we still would see in 2010 to 2011 areas where the business will grow,” he said. The firm’s order book stood at £14.6bn in June, up from £14.1bn at the end of last year. Tyler pointed out that a substantial number of con- tracts were funded by industry rather than the public sector.

Breeden dumps shares in Connaught after warning

PROPERTY

HEDGE fund Breeden European Partners has sold almost half its stake in troubled social housing repairs group Connaught, after the value of its holding plunged by more than £13m in recent weeks. Breeden European had declared a stake of 13 per cent, or 18m shares, at the start of July, fuelling talk of a break-up of the embattled firm.

A stock exchange filing yesterday showed Breeden disposed of 8m shares on Friday, the day Connaught said it would make a loss for the year. Asset manager Toscafund and Norway’s national bank Norges have also disposed of large holdings in recent days as Connaught stock remained in the doldrums. Shares closed up 2.2p at 15.6p yesterday. Breeden European could not be reached for comment.

Minerva calls EGM following KiFin bust-up

PROPERTY

BY MARION DAKERS

PROPERTY developer Minerva has called an emergency meeting to drum up support following demands for a boardroom shake-up from rebel investor KiFin, owned by billionaire Nathan Kirsh. In the latest chapter of an extended power struggle at Minerva, KiFin has proposed the sacking of chairman Oliver Whitehead and chief executive Salmaan Hasan and called for more transparency on terms of its recent restructuring and profit share agree- ments. KiFin plans to install London prop- erty veteran Philip Lewis as interim chief executive, along with former Investec boss Bradley Fried as a non- executive director, if the moves win shareholder approval at an emer- gency meeting on 8 September. Minerva has hit back at the propos- als, accusing leading shareholder KiFin of trying to take control of its activities without paying, after its 50p

per share takeover bid collapsed earli- er this year. “It’s a pretence to say they don’t want to take control, given their actions over a period of time,” Whitehead told City A.M. “We have no problem with them taking over as long as they pay a proper price. By try- ing to install Lewis, they are trying to gain control without the hassle of a takeover.” “Besides the demands set out, we have no idea what KiFin has planned for the company. They are just mak- ing mischief, putting out negative tit- tle-tattle,” Whitehead added. Lewis called yesterday for Minerva’s other board members to get involved and calm the dispute. “They have got three good non- executive directors who should be making an effort to find a solution to this problem,” Lewis said. “Kirsh is not seeking control of the company. We simply want management to understand the importance of full disclosure of the key financial infor- mation that we are requesting.”

the key financial infor- mation that we are requesting.” Liebherr rescued Southampton FC from the brink

Liebherr rescued Southampton FC from the brink of extinction.

Picture: GETTY

Saints left shocked after owner Liebherr dies at 62

SPORT

BY JON COUCH

SOUTHAMPTON Football Club was left stunned yesterday by the death of owner Markus Liebherr, aged 62. The billionaire Swiss businessman rescued the club from the brink of extinction in July 2009 when he com- pleted an estimated £13m takeover. No cause of death was given. Liebherr was a member of wealthy family who specialise in construction

machinery, although he operates independently through his own group of companies, the Mali Group. “To say he will be missed is an unmistakeable understatement,” the club said in a statement. Southampton FC assured fans that Liebherr’s passing will not affect its future. It said: “The club will ensure that Markus’ wishes are carried out in full. The Saints were Markus’ constant preoccupation. He certainly didn’t like losing.”

NEWS | IN BRIEF

Capital & Regional back in black

UK property fund manager Capital & Regional swung to a first-half profit of £18m yesterday, after a loss of £131m a

year ago, helped by higher property val- ues and disposal of assets. The owner of leisure centres and shopping malls said

it sold ten properties for £378m, with

its own share accounting for £80m. However, the firm expects the pace of asset sales to slow down after the expected sale of its wholly owned prop- erty Great Northern in Manchester.

DIY job for Berkeley chairman

The boss of building group Berkeley took DIY to the extreme last year by calling in his own firm to carry out £1.32m worth of repair work on his luxury home. Tony Pidgley took advantage of the firm’s “own build scheme”, where employees can get good rates on con- struction work, according to the firm’s annual report. He was paid a total of £2.25m last year, while Rob Perrins, managing director, collected £1.1m, both in line with last year. Berkeley recorded

pre-tax profits of £110.3m in the period,

a decline of 8.4 per cent.

Grainger set to gain from slump

Britain’s biggest residential landlord Grainger said yesterday it plans to cash

in on the wilting housing market by buy-

ing up discount real estate. The firm,

which has around £2.8bn of assets under management, bought £154.8m of properties in the past ten months, with

a further £67.6m of buys in the pipeline.

It sold 593 vacant units at a sales mar- gin of 42.6 per cent. The firm also com- pleted its purchase of Sovereign Reversions, snapping up the equity release adviser for £34.6m.

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CITYA.M.

12 AUGUST 2010

News

15

Shire sells off Attention Deficit Disorder drug to Noven as reiterates profit view

PHARMACEUTICALS

BY HARRY BANKS

SPECIALITY biopharmaceutical com- pany Shire yesterday announced the sale of its brain stimulant medicine Daytrana to Noven Pharmaceuticals, granting Noven global marketing rights for the medicine, effective from 1 October 2010. Shire also main- tained its earnings outlook for the full-year 2010. The book value of the assets to be disposed is approximately $95m (£60m) or a gross, pre-amortisation value of approximately $150m.

Shire also backed its full year 2010 outlook for non-GAAP earnings trending towards $4.00 per American Depositary Share (ADS), which was announced recently with its second quarter earnings. Analysts on average expect the company to report earn- ings of $3.98 per ADS for 2010. In its second quarter report, Shire said it expects 2010 underlying earn- ings to grow 15 per cent from 2009. Daytrana, developed and manufac- tured by Noven, was originally licensed globally to Shire in 2003 and was approved and launched in the US in 2006. Shire’s net sales of the prod-

uct in 2009 were $71m. In June, the FDA approved Daytrana for treatment of attention deficit hyperactivity disorder (ADHD) in adolescents aged 13 to 17 years. Daytrana was already an FDA- approved ADHD treatment for chil- dren 6 to 12 years. ADHD is one of the most common psychiatric disorders in children and adolescents. The disorder manifests as a persist- ent pattern of inattention and/or hyperactivity-impulsivity that is more frequent and severe than is typically observed in individuals at a compara- ble level of development.

CVC to buy 15pc Abertis stake from ACS for 1.7bn

CONSTRUCTION

ACS has agreed to sell a 1.7bn (£1.4bn) stake in toll road operator Abertis to private equity fund CVC Capital Partners, freeing up the Spanish builder to cut debt and pur- sue energy investments. ACS, Spain’s largest builder by mar- ket value, and British private equity firm CVC said yesterday they will form joint ventures to manage ACS’s 25.8 per cent stake of Abertis . ACS will get 15 per share for its Abertis stake, or 2.86bn, about a fifth of which it will reinvest to retain

an indirect holding of 10.28 per cent of the motorway firm, while CVC will get a 15.5 per cent stake. The deal, funded by a 1.5bn loan from a syndicate of banks, brings sta- bility to Abertis after months of spec- ulation that ACS and CVC were seeking financing for a leveraged buy- out of a large piece of the company. La Caixa – Abertis’s largest share- holder – and Spanish banking giant Santander are in the syndicate financing the deal, which was advised by Italy's Mediobanca. ACS will take on 600m of the debt for the deal, with CVC taking the rest.

AIG hit with a $1.9bn loss on Fortress

INSURANCE

BY HARRY BANKS

AMERICAN International Group (AIG) said yesterday it will sell most of its consumer finance unit to Fortress Investment Group and take a $1.9bn (£1.2bn) pre-tax loss due to the sale. AIG, majority owned by the US gov- ernment, is selling 80 per cent of American General Finance to Fortress managed funds and affiliates as it restructures after a bailout. It did not disclose terms of the deal. AIG will own the 20 per cent of the group that it did not sell to Fortress, but said the unit will not be included in its financial statements. The com- panies expect the deal to close by the end of the first quarter of 2011. Fortress, one of only a few publicly traded hedge fund groups, was involved in a similar deal earlier this year when some of its funds bought European assets from Ally Financial’s Residential Capital unit. It has made other recent acquisi- tions. It bought bond manager Logan Circle Partners for $21m and announced a deal in July for loan

servicing firm CWCapital. Fortress’s share price has been a disappointment for investors since it debuted at $18.50 in 2007. Yesterday, after the AIG deal was announced, the share price fell 4.5 per cent to $4, making it the industry’s worst per- former for the day. AIG, once the world’s largest insur- er, nearly collapsed in September 2008 from credit default swaps that left it on the hook for tens of billions of dollars in payouts to some of the biggest US and European banks. It has been selling assets to repay taxpayers, to whom it still owes more than $100bn. American General Finance, which provides loans to people in the United States, Puerto Rico, the Virgin Islands and the United Kingdom, has assets of about $20bn and liabilities of about $18bn. It reported an operating loss of $11m for the second quarter on Friday, compared with a loss of $202m a year ago. The loss narrowed because of a drop in the provision for loan losses due to favorable trends in credit quality.

BEST OF THE BROKERS

ANALYSIS l Anglo American p 2,800 2,358.00 11 Aug 2,700 2,600 2,500 2,400 2,300 2,200
ANALYSIS l Anglo American
p
2,800
2,358.00
11 Aug
2,700
2,600
2,500
2,400
2,300
2,200
17 May
7 Jun
25 Jun
15 Jul
4 Aug

ANGLO AMERICAN

Morgan Stanley downgrades Anglo American to “equalweight” from “over- weight” and lowers its price target to 3,208p. Believes all the positives have been priced into the shares, which are trading at at a 10 to 15 per cent premium to the sec- tor. Believes that investors should switch into Xstrata which it rates as “overweight”.

ANALYSIS l International Power p 380 364.80 360 11 Aug 340 320 300 280 260
ANALYSIS l International Power
p
380
364.80
360
11 Aug
340
320
300
280
260
17 May
7 Jun
25 Jun
15 Jul
4 Aug

INTERNATIONAL POWER

UBS upgrades International Power to “Buy” post its deal with GDF Suez which it sees as a “win-win”. Says shareholders will get immediate share price upside as well as improved long-term growth. Sees little risk of the deal failing, and says IPR is now well positioned for future growth. Ups target to 410p from 320p.

ANALYSIS l Barclays 313.60 360 p 11 Aug 340 320 300 280 260 240 17
ANALYSIS l Barclays
313.60
360
p
11 Aug
340
320
300
280
260
240
17 May
7 Jun
25 Jun
15 Jul
4 Aug
BARCLAYS

Seymour Pierce reiterates its “hold” rating saying it is concerned that reports of BarCap cutting jobs indicates that revenue in the investment bank is disappointing. Notes that top line income at BarCap was down 32 per cent year-on-year in the first half. Advises caution, noting investment banking appears to be losing momentum.

To appear in Best of the Brokers email your research to notes@cityam.com

China’s industrial activity is still slowing

GLOBAL ECONOMY

CHINESE industrial production growth slowed for the second consec- utive month in July, fueling fears that its economy was losing steam. Output rose by 13.4 per cent year- on-year in July. This was slightly below the 13.7 registered in June and significantly down on the 16.5 per cent reading in May. The cooling off in the industrial

sector was partly due to a base effect – growth was extremely strong this time a year ago – and withdrawal of stimulus measures implemented after the financial crisis. Authorities in Beijing who have been trying to slow the housing mar- ket, might take heart from the data. There was a sharp slowing in heavy industry output used for construc- tion. Mark Williams from consultan- cy Capital Economics, said that

suppliers to the sector might be antic- ipating a slowdown as developers delay project starts. But fears that the Chinese government’s plans to shut inefficient production lines in an attempt to meet its year-end emis- sions targets could de-rail industrial production, might end up being a damp squib, said Williams. He noted that similar directives set by the gov- ernment had been unsuccessful in the past. INVESTMENT: P17

CITY MOVES | WHO’S SWITCHING JOBS in association with Edited by Victoria Bates Coutts syndicate
CITY MOVES | WHO’S SWITCHING JOBS
in association with
Edited by Victoria Bates
Coutts
syndicate desk. Prior to that, he was at
Lehman Brothers.
The private bank has appointed Jeff
Stubberfield as a commercial banker in its
media banking team, looking after clients in the
music, TV and entertainment business.
Stubberfield has over 15 years of experience
in financial services and joins from Barclays,
where he spent eight years, latterly as a rela-
tionship director managing a portfolio of media
clients across music, TV, talent and booking
agencies and publishing.
ary securitisations within the EMEA
region. She joins after 14 years at JP
Morgan, latterly as a managing director
and northern European head of struc-
tured finance derivatives.
Insynergy
Société Générale
commerce respectively.
George joins from Execution Noble,
where he covered software and hard-
ware for the past six years. Dorgan was
previously head of research at Panmure
Gordon and head of the European retail
team at Goldman Sachs.
Cecile Houlot has joined the investment
bank as a managing director and head
of the European securitisation team
within the global structured solutions
group.
Based in London, Houlot will be
responsible for all primary and second-
SocGen has hired Richard Wolff to its
investment bank as a managing direc-
tor and head of US debt capital mar-
kets syndicate.
Based in New York, Wolff will over-
see the management and growth of the
bank’s US dollar high grade bond syndi-
cate. He joins from Barclays Capital,
where he covered Yankee, industrial,
utility and financial issuers for the US
The investment management firm has
appointed Chris Howard as a discre-
tionary sales manager.
Howard joins with 15 years of asset
management experience, most recently
gained at River and Mercantile. He has
also formerly held senior roles at
Skandia and Credit Suisse.
RSA
Morgan Stanley
Altium
Arun George and Philip Dorgan have
joined the broker’s equity research team
to cover technology and retail and e-
The insurer has hired Bobbie Turton and
Matt Poll to its UK affinity division.
Turton becomes partnership director
for pet insurance, having worked at Axa
and Legal and General. Poll was previ-
ously head of sales within Axa’s person-
al lines broker division and becomes a
sales director in RSA’s affinity team.
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com
+44 (0)20 7557 7245
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
morganmckinley.com

16

Markets&Investment

CITYA.M.

12 AUGUST 2010

LONDON’STOP250

Tradethesesharesfrom£1.50withInteractiveInvestor - 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

(p)

(p)

(p)

(p)

(p)

(p)

(p)

(p)

(p)

(p)

(p)

(p)

3i

274.90

–10.30

314.80

246.90

Cobham COLT Group Compass Cookson Croda Intl Daily Mail ‘A’ Dana Petroleum Davis Service De La Rue Debenhams Derwent London Dexion Absolute Diageo Dimension Data Domino’s Drax DSG Intl Dunelm Easyjet Edinburgh Inv Tst Electrocomponents EnQuest Essar Energy Eurasian Nat Res Euromoney Inst Inv Experian F&C Comm Prop Ferrexpo FirstGroup Foreign & Col Inv Tst Fresnillo

219.10

120.60

515.50

462.70

1254.00

471.10

1693.00

375.10

794.00

59.40

1378.00

138.00

1096.00

121.40

.411.00*

379.90

25.13

395.00

364.00

396.00

212.40

.112.00

392.60

935.00

607.50

621.50

89.50

282.30

355.20*

268.50

1022.00

–7.00

278.60

190.60

Investec

.465.40*

–9.90

565.00

378.20

3i Infrastructure A.B. Foods Aberdeen Asset Man Admiral Aegis Afren African Barr Gold Aggreko Alliance Trust AMEC Amlin Anglo American Antofagasta Aquarius Platinum ARM Holdings Arriva Ashmore Astrazeneca Atkins(Ws) Autonomy Corp Aveva Aviva Babcock International BAE Systems Balfour Beatty Barclays Barratt Development BBAAviation

.

.

.

.

.

.

.

.

.

.

.

.

.112.50

+0.10

115.00

89.35

–3.50

144.20

114.80

ITV

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.50.80

–2.00

71.75

41.04

1017.00

–23.00

1096.00

785.50

–9.50

574.50

308.10

.580.00

–4.50

604.50

420.70

134.40

1464.00

.114.50

–2.60

–31.00

–3.40

155.60

1520.00

137.30

111.00

965.50

89.00

–17.30

–34.00

–14.10

616.00

1355.00

539.00

347.60

581.00

330.00

Jardine Lloyd Johnson Matthey

JPMorgan Emerg Mkts

 

.1658.00

.519.00

.1168.00

–38.00

–2.50

–73.00

1814.00

549.00

1634.00

1302.00

395.10

803.50

94.70

–1.95

111.00

52.50

–7.00

1729.00

968.50

Kesa Electricals

.131.80

–2.20

162.00

98.45

542.50

–6.50

685.00

520.50

–11.90

442.30

354.00

.204.50

–7.10

255.00

196.50

1527.00

–30.00

1639.00

558.50

–3.00

1021.00

725.50

Ladbrokes

.135.60

–3.80

174.29

114.60

312.00

–7.60

352.70

281.00

–1.50

91.65

51.95

Lancashire Hldgs

.515.00

–1.50

545.00

416.70

875.50

–25.00

937.00

693.50

–8.00

1490.00

1044.00

Land

.604.00

–8.50

743.50

543.00

418.60

–6.10

436.20

336.30

+1.00

148.00

121.10

Legal & General

.87.65

–2.25

94.70

61.50

2358.00

989.50

–115.50

–31.50

3015.50

1100.00

1777.50

680.00

–6.00

–0.20

1176.00

125.50

921.50

55.00

Lloyds Banking Gp

.

Logica

.

.

.

.

.

.

.

.

.

.

.70.03

.112.70

–5.09

–4.20

77.61

149.10

45.30

100.80

256.20

–3.80

490.00

211.50

–9.00

431.30

229.00

London Stk

.658.50*

+0.50

949.50

540.50

305.80

–11.20

370.00

120.50

–5.10

496.50

321.50

.1505.00

–55.00

2198.00

1330.00

772.00

782.50

428.20

–1.33

39.75

23.32

Man

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.212.40

–10.50

373.60

199.60

282.00

–3.10

311.20

211.60

–2.50

438.40

250.70

Marks &

.330.00

–12.10

412.70

321.90

3273.50*

–74.50

3376.00

2668.00

–15.90

499.90

308.30

Meggitt

.

.

.

.

.

.

.

.

.

.268.00

–12.50

331.00

189.90

765.50

–23.50

801.00

532.50

–7.50

412.40

315.60

Melrose

.

.

.

.

.

.

.

.

.

.

.226.70

–4.80

251.50

122.90

1582.00

–54.00

2012.00

1229.00

–9.60

245.00

142.90

Mercantile

.944.00

–23.00

1002.00

822.50

1330.00

–10.00

1375.00

805.00

–1.00

121.40

87.35

Michael Page

.387.90

–9.00

461.50

289.10

371.20

–14.00

474.00

290.20

–10.80

475.90

358.50

Micro Focus

.300.00

–119.00

550.00

280.10

542.50

–15.50

660.50

473.80

–30.50

1276.00

731.00

Millen &

.481.10

–7.90

514.50

297.90

317.00

–9.90

389.90

294.20

–7.50

630.00

245.00

Misys

.

.

.

.

.

.

.

.

.

.259.00

–6.00

281.70

173.90

259.10

313.60

97.50

–3.80

–20.05

–3.90

328.85

394.25

193.31

228.60

253.40

89.10

–12.50

+1.50

–19.50

664.50

96.80

396.20

489.00

79.00

138.00

Mitchells & Butlers

. . Monks Inv Tst Morrison Wm Murray Intl

.

.

.

.

.

.

MITIE

.

.

.

.

.

.

.

.

.

.

.

.

.303.30

.198.20*

.461.30

–12.50

–7.70

–7.80

343.90

281.70

488.00

228.30

195.20

262.30

189.50

–10.10

220.00

136.60

–12.60

448.80

331.20

.290.00

–4.70

321.20

240.00

 

.115.40*

–1.60

125.80

95.25

–6.00

297.20

229.50

.277.30

–2.20

306.30

255.00

Bellway

587.00

–19.50

927.50

554.00

–40.00

1139.00

539.50

.845.00*

–11.00

893.50

632.00

Berkeley

BG

797.50

1003.50*

–7.50

–16.00

989.50

1248.00

735.00

966.90

G4S

Genesis Emerging Mkts Fd

261.00

466.00

–3.40

–5.00

285.70

484.00

209.40

370.00

National

National Grid

.222.00

.533.00*

–10.50

–5.50

258.60

607.65

155.86

474.80

BHP Billiton

1925.00

–66.50

2346.00

1481.00

GKN

138.40

–4.90

155.00

100.20

Next

.

.

.

.

.

.

.

.

.1950.00

–74.00

2360.00

1601.00

BlackRock Mining

Bluecrest Allblue GBP Booker

557.50

166.10

–17.50

+0.10

654.50

167.90

413.00

136.20

Great Portland Estates Greene King Halfords Halma Hammerson Hargreaves Lansdown Hays Henderson Heritage Oil Hikma Pharma Hiscox Hochschild Mining Home Retail Homeserve HSBC Hldgs Hunting ICAP IG Imagination Tech Gp IMI

.1165.50*

312.00

417.90

453.30

272.60*

371.80

376.90

91.00

133.50

353.90

721.00

354.60

309.00

225.10

476.10

657.50

525.50

381.00*

478.90

339.20

700.00

–11.50

+1.80

1347.00

332.10

1088.00

236.60

Northumbrian Water

Old Mutual

 

.322.00

.123.10

–16.30

–3.40

341.30

130.20

219.90

85.80

43.25

–0.50

49.50

33.00

–17.10

504.00

372.50

.

.

.

.

.

.

.

.

.

.

.

.210.00

–2.20

243.80

145.00

. Brit Insurance British Airways British Amer. Tob British Empire Tst British Land Britvic Brown(N.) BSkyB BT Bunzl Burberry Cable & Wire Comms Cable & Wire Wwide Cairn Energy Caledonia Invs Capita Capital & Counties Capital Shopping Centres Carillion Carnival Catlin Centamin Egypt Centrica Charter Intl Chemring Chloride Group Close Bros

BP

.

.

.

.

.

.

.

.

.

.

.

.

.411.00

986.50

–8.35

–7.00

658.20

1017.00

296.00

709.00

–16.70

–7.30

562.50

298.70

324.00

186.60

Pearson

.

.

.

.

.

.

.

.

.

.

.282.60

.984.50

–6.00

–13.00

339.70

1069.00

205.80

695.00

217.30

–10.10

255.80

161.00

–4.00

460.30

332.20

Pennon.

.

.

.

.

.

.

.

.

.

.579.00

–27.00

613.00

434.40

2210.00

–14.00

2335.50

1832.00

+0.20

387.00

214.00

.360.70

–12.70

534.50

340.20

433.30

–5.10

467.90

338.50

–1.60

119.00

88.05

Petrofac

.1276.00

–35.00

1372.00

816.00

446.80*

–7.00

532.00

416.00

–2.40

157.80

110.60

.1019.00

–29.00

1370.00

601.00

478.90

–6.30

518.00

324.80