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Issue 1,208 Friday 27 August 2010 www.cityam.com FREE

S&P CASTS DOUBT Nadir offers


more cash
ON BANK REVIVAL to the Tories


POLITICS
BY STEVE DINNEEN
ASIL Nadir, the controversial tycoon
BANKING who yesterday returned to the UK

BY OLIVER SHAH after 17 years living in exile, embar-


rassed the Conservatives by saying he
RATING agency Standard & Poor’s would like to give them money.
(S&P) cast doubt on the strength of The notorious fugitive, who donat-
the UK banking sector’s recovery yes- ed £500,000 to the Tories in the 1990s,
terday, saying lenders had been said he would like to hand over even
buoyed by a rising economic tide. more cash to David Cameron’s party.
The claim, made after this month’s He said: “It’s only fair if you approve of
bumper first-half earnings season, the policies of a government, if you
was immediately rebuffed by banking want to extend their power, why not
industry figures. While institutions do it?”
realise they have been helped by an The Tories are privately furious about
improving trading environment, they the suggestion, with one source close to
argue they have made strenuous the party telling City A.M.: “He hasn’t got
efforts to shrink their balance sheets a cat in hell’s chance. There is no way
and sell off non-essential assets. we could ever take money from some-
S&P said a sustained upturn in UK one with a track record like Nadir’s.
banking performance remained “far There is no question. It will never, ever
from certain” despite a series of fore- happen.”
cast-smashing results earlier in A party spokesman was more diplo-
August. Stronger players Barclays and matic, saying: “All donors meet strict
HSBC generated pre-tax gains of £4bn requirements.”
and £7bn respectively, while state- Nadir was a playboy of the business
owned Lloyds Banking Group earned From left: Barclays’ John Varley, RBS’ Stephen Hester, HSBC’s Michael Geoghegan and Lloyds’ Eric Daniels Pictures: REUTERS/ GETTY world, with his firm reaping huge
£1.6bn and Royal Bank of Scotland rewards before it crashed amid allega-
made a profit of £1.1bn. nomic policy, which it expects to tinue to disproportionately influence nationalised banks emphasised the tions of large scale fraud. He will face
But the fortunes of banks are close- squeeze incomes. UK bank ratings throughout the efforts being made by Lloyds and RBS’ £34m fraud charges relating to his
ly tied to an uncertain economy, S&P Analysts wrote: “While a range of remainder of 2010.” management teams to shed non-core stewardship of failed conglomerate
said, with several lenders still deeply management actions have con- Angela Knight, chief executive of units to comply with European Union Polly Peck. ANALYSIS: P13
reliant on government-guaranteed tributed to the improved perform- the British Bankers’ Association, said: rules on accepting state aid. RBS has
wholesale funding and in need of fur- ance, in our view, the more “The UK banks have done substantial sold its share of a commodities trad- Asil Nadir mixed with
ther refinancing in the coming years. important contributory factors were capital raisings and have been repair- ing joint venture, Sempra, to top politicians and
The report concludes that the the developments beyond the control ing their balance sheets, writing off JPMorgan and offloaded 318 high
future credit ratings of British banks of banks’ management… We expect bad loans and so on. That has been street branches to Santander. royalty before leaving
are likely to largely remain out of the economic and market developments widely recognised – a lot of work has “Banks are working on their core the country following
hands of their management teams. that are largely beyond the control of taken place.” businesses too, trying to attract more allegations of fraud
S&P’s key concern is government eco- banks’ management teams will con- A source close to one of the part- deposits,” the source said.

FTSE 100 ▲ 5,155.84 +46.44 DOW ▼ 9,985.81 -74.25 NASDAQ ▼ 2,118.69 -22.85 £/$ 1.55 unc £/¤ 1.22 unc ¤/$ 1.27 unc Certified Distribution
05/07/2010 till 01/08/10 is 94,889
2 News CITYA.M. 27 AUGUST 2010

Chote is still best man for the OBR NEWS | IN BRIEF


Credit Suisse hired for AIA IPO
Months after advising Prudential on its
failed $35.5bn (£23bn) bid for AIA,
tation it has today. But if Osborne and Clegg can stom- usher in the autumn, there is always Credit Suisse has been hired to help the
Unfortunately some think that this ach it, they should embrace Chote, an air of excitement and expectation Asian business float on the Hong Kong
week’s row over whether the IFS was not keep him out of the fold. about the place. The holidays were stock exchange. Credit Suisse joins Bank
right to describe chancellor George The Office of Budget Responsibility fun but now we’re ready to swap the of America Merrill Lynch, Goldman
Osborne’s first Budget as unfair will only work as an institution if it is silly season for the busy season. Sachs, Morgan Stanley, Citigroup and
might jeopardise the chances of its seen to be totally free of government At City A.M. there’s plenty to look Deutsche Bank on AIA’s initial public
head, Robert Chote, becoming the sec- and the Treasury. The first incum- forward to. As from next Tuesday offering (IPO), whose basic features will
ond head of the Office for Budget bent, Sir Alan Budd, was never viewed (we’re not publishing on Bank be worked out over the next fortnight.
DEPUTY EDITOR’S LETTER Responsibility. But it shouldn’t do. as a man who might stand up to Holiday Monday) we’ll be available at
It is typical of Chote, a former jour- strong political pressure and his short a host of new stations including Dana attempts to delay takeover
DAVID HELLIER nalist with the Independent – where I reign has ended in tears. Marylebone, High Barnet and Angel. Dana Petroleum will try and stall KNOC’s
worked with him – and the Financial Chote has spent his career, both as Circulation will be increasing plans for a hostile takeover today by
THE highly respected Institue of Fiscal Times – that the little matter of the a journalist and as head of the IFS, as throughout the autumn with a grow- holding back details of its planned
Studies (IFS) has been a thorn in the possibility of a plum job in govern- a man unafraid to take on any party, ing number of readers able to get the £240m purchase of North Sea assets.
side of government – both ment would not make an iota of dif- and to do so in an extremely thor- newspaper at the beginning of their Dana hopes that by leaving the informa-
Conservative and Labour – for as long ference to his organisation’s take on ough way, with judgments backed by journey. Also on Tuesday we’ll begin tion out of its interim results, KNOC will
as I can remember. the Budget. the hard numbers. It’s still not clear the unveiling of the short list for our remain bound by insider trading rules.
During the Gordon Brown era it Osborne and deputy prime minis- whether he has applied for the post or inaugural awards competition that
constantly pulled up the then chan- ter Nick Clegg made much of the has been approached. But the govern- will take place at the Grange Hotel on Balls sees economic hurricane
cellor for overpromising on the public Budget’s fairness and for the IFS to ment shouldn’t let this week’s row 28 October. This will be a time to Labour leadership candidate Ed Balls
finances and earlier this week it sav- have questioned this claim was get in the way. In my view, an early acknowledge the heroes of the busi- will today pit his financial wits against
aged the current regime, declaring bound to cause a stir. It would also announcement heralding his ness world. So don’t miss next week’s the coalition government, by claiming an
that its recent Budget will hit the have caused more than a little irrita- appointment would be good for all papers to see if you or your company “economic hurricane” is about to hit the
poorest hardest. tion. concerned. is in the mix. Have a great Bank UK in a speech at Bloomberg HQ. Balls is
If it was seen to have been constant- But it would not have crossed Holiday weekend. set to tell the chancellor George Osborne
ly nit-picking, but without any merit, Chote’s mind to pull some punches AUTUMN LEAVES david.hellier@cityam.com he is a “growth denier” who is ignoring
then the IFS would not have the repu- when it came to the crunch. As the leaves fall onto the ground to Allister Heath is away signs of a global slowdown.

Pictures: REUTERS/GETTY
7th Floor, Centurion House,
24 Monument Street,
London, EC3R 8AJ
Greece starts
bank sell-off
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
ECONOMY fourth-largest lender, offered €701m

Associate Editor David Crow


Lifestyle Editor Zoe Strimpel BY OLIVER SHAH in cash for the shares. Vince Cable (left) and immigration minister Damian Green are at loggerheads
Art Director Darren Soulsby State-owned energy, infrastructure

Migration stats cause rift


Pictures Alex Ridley GREECE’S government took a step and utilities companies are also
toward offloading its stakes in expected to be handed over to the pri-
Commercial ATEbank and Hellenic Postbank yes- vate sector over the next three years.
Sales Director Jeremy Slattery terday when it named Deutsche Juergen Michels, chief Eurozone
Commercial Director Harry Owen Bank, HSBC and Lazard as advisers. economist at Citigroup, told City A.M.:
Head of Distribution Nick Owen A statement said the three invest- “Everyone knows they’re under pres-
ment banks would “explore and sure to sell, so the worry is they may POLITICS However, business secretary Vince

Distribution helpline assess the Greek state’s strategic not get the right prices.” Cable disputed the Conservative spin
If you have any comments about the distribution BY MARION DAKERS
of City A.M. Please ring 0207 015 1230, or email options, evaluate its holdings in the Finance minister George on the statistics, telling the Financial
distribution@cityam.com banking sector and assess the conse- Papaconstantinou said there was THE LATEST migration figures have Times: “It’s very clear from the fig-
quences of such options”. “light at the end of the tunnel after become a battleground for the coali- ures that the increase in recorded
Editorial Statement Athens needs to raise at least €1bn months of complete darkness”. tion government, after Conservative immigration has nothing to do with
This newspaper adheres to the system of (£817m) each year between 2011 and minister Damian Green used the 20 the number of non-EU work permits
self-regulation overseen by the Press Complaints 2013 as a condition of its European Greek finance minister per cent jump in net entrants to illus- issued: they actually declined.”
Commission. The PCC takes complaints about the Union bailout in May. Its 77.3 per cent trate the need for a cap on migration. Business bodies including the CBI
editorial content of publications under the Editor’s George
Code of Practice, a copy of which can be found at holding in troubled farm lender Immigration minister Green said and the Chartered Institute for
www.pcc.org.uk ATEbank and 33 per cent stake in Papaconstantinou said yesterday the figures “show why we Personnel and Development have
Printed by Newsfax International,
healthier Hellenic Postbank are the country’s prospects must tighten our immigration sys- come out against a cap on the num-
Beam Reach 5 Business Park, expected to be the first assets on the were slowly improving tem in order to reduce net migration ber of immigrants, claiming it will
Marsh Way, Rainham, Essex, RM13 8RS block after Piraeus Bank, Greece’s to manageable levels”. make the UK less competitive.

WHAT THE OTHER PAPERS SAY THIS MORNING


pared with the £5.4m he paid for
them.

BANKS BACK SWITCH TO RENMINBI CPP BENEFITS FROM DEMAND FOR ROLLS TAKES RIVAL TO COURT OVER ASTRAZENECA TACKLES EAST-WEST GEELY PLANS FOR VOLVO REVEALED
FOR TRADE FRAUD PROTECTION JET ENGINE FANS HEALTH DIVIDE Zhejiang Geely Holding Group Co. is
A number of the world’s biggest Continued strong growth in the UK Two of the world’s biggest aircraft Britain's second-largest pharmaceuti- considering partly repurposing a
banks have launched international helped CPP, the credit card and iden- engine makers are set to face off after cal company has invested $100m nearly completed Geely plant in
roadshows promoting the use of the tity theft insurer, report a 20 per cent Rolls-Royce took its rival Pratt & (£64m) in its Innovation Centre China southwestern China to make Volvo
renminbi to corporate customers rise in underlying interim profits to Whitney to court over alleged patent (ICC), specifically designed to research cars—part of a turnaround strategy
instead of the dollar for trade deals £24m. The company raised a total of infringements. Rolls told sharehold- diseases that are prevalent in China's for the Swedish brand that its new
with China. HSBC and Standard £150m at 235p a share when it joined ers yesterday that it had issued legal 1.3bn population and Asia as a whole. owner hopes will kick-start sales in
Chartered are offering discounted the full list in March. However, £120m action against United Technologies, Among the ICC's targets for future the world's biggest auto market. The
transaction fees and other financial went to Hamish Ogston, the which owns Pratt, Sikorsky helicop- drug development is chronic obstruc- plan also includes building another
incentives to companies that choose Yorkshire entrepreneur who started ters and Otis elevators. tive pulmonary disorder (COPD). car-assembly plant, possibly in
to trade in the Chinese currency. the company 30 years ago. Shanghai.
GOOGLE TAKES ON SKYPE WITH WORKERS FACE PAY CUTS AMID DOU-
$3M PAPER LOSS ON SVANBERG'S BP CHINA UNICOM PAYS PRICE OF 3G GMAIL CALLS BLE DIP RECESSION FEARS SWEDISH GOVERNMENT PROPOSES
SHARES COMPETITION Google is to go head-to-head with Staff are effectively facing dramatic ECONOMIC REFORMS
BP’s chairman is nursing a paper loss China Unicom on Thursday unveiled Skype by allowing users of its Gmail pay cuts as companies battle to keep Sweden's centre-right government
of almost £2m after the spill in the the damage caused by its attempts to service to make telephone calls from down costs amid fears of a double dip yesterday proposed reforms worth
Gulf of Mexico in April. Carl-Henric grab market share amid the fierce their e-mail inbox. The internet giant recession. Almost 15 per cent of 32.7bn Swedish kronor for the com-
Svanberg, who joined the UK oil competition sparked by the start of already offered free voice and video employers are pushing through pay ing four-year mandate period, includ-
group in January, owns 925,000 third-generation services in China calls via Gmail but will now allow freezes, the equivalent of a pay cut ing labour-market investments and
shares which he bought in two sepa- last year. The firm said its net profit email users to call landlines and once inflation is taken into account, tax cuts. In its manifesto ahead of the
rate lots. BP’s London shares closed fell 62 per cent in the first half year- mobile phones directly. The move the latest salary statistics reveal. The general election on 19 September, the
yesterday at 385.60p, valuing Mr on-year after it spent more than half puts it into direct competition with cuts would hit around one in 20 government said it plans to spend
Svanberg’s holding at £3.56m com- its mobile revenue on marketing. the internet telephony company. employees. SEK12.8bn in 2011 alone.
CITYA.M. 27 AUGUST 2010 News 3

Dow crashes
Selling prices below crucial
accelerate at 10,000 level

a record pace


FINANCIAL MARKETS
BY KATIE HOPE
THE Dow Jones closed below the psy-
chologically-crucial 10,000 level yes-
terday as investors shrugged off better
than expected US jobs figures to focus
on an expected downgrade for US

RETAIL August, compared to just 18 per cent GDP today.


BY JESSICA MEAD experiencing a decline. The US blue chip index fell 0.7 per
Sub-sectors that saw the strongest cent to 9986.81 – its lowest level since
SHOP price inflation accelerated in growth included clothing, grocers, Dell chief Michael Dell (l) and HP interim chief executive Cathie Lesjak Picture: REUTERS 6 July ahead of today’s GDP growth
August at its fastest rate since and durable household goods, which for the second quarter which analysts

HP trumps Dell in latest


February 1992, the CBI revealed yes- the CBI said has been helped by better are predicting could be almost halved
terday, raising the ugly spectre of per- weather at the beginning of the from the preliminary forecast of 2.4
sistently rising prices and creating month and the summer holidays. per cent to just 1.4 per cent.
even more of a headache for the Bank Lai Wah Co, CBI head of economic There are also fears of what Fed chair-

$1.8bn bid for rival 3PAR


of England. analysis, said: “Better sales growth man Ben Bernanke’s speech on the
In its August distributive trades sur- continued on the high street in early economy today, will reveal. Investors
vey, the business lobby reported that August, and retailers are upbeat want to “see if the pulse of the Fed is
a net 58 per cent of firms said average about prospects in the coming three beating at a fast rate with anxiety over
selling prices had risen compared to a months.” the economy,” said Avalon Partners’
year ago. The looming VAT hike to 20 “However, the broader outlook for Peter Cardillo. MARKET REPORT: P19
per cent in January, combined with consumer spending is still uncertain, M&A counter-offer from Dell. Dell signed

rising food prices, will only create given the VAT rise next year, subdued an agreement with 3PAR last week, ANALYSIS l Dow Jones
BY MARION DAKERS
more inflationary pressures. pay awards and the feed-through of but the deal contained a clause oblig-
While the outlook for consumer public spending cuts to job losses, ” THE FIGHT for data storage firm 3PAR ing the firm to match any rival bids. 10,100 9,985.81
spending remains uncertain, retailers she added. accelerated last night as Hewlett HP’s cash offer outbids Dell by 11 26 Aug
are at their most positive about the Analysts said that this boded well Packard upped its bid to $27 a share, per cent, and represents a 180 per 10,060
future since May 2004, with a net 22 for third quarter GDP growth, which valuing the business as $1.8bn cent premium on the data storage
per cent of firms forecasting that the had been expected to slump after a (£1.2bn), just hours after 3PAR accept- firm’s share price on 13 August,
overall business situation will stunning second quarter. Societe ed a $24.30 offer from Dell. before Dell’s initial approach. 10,020
improve over the next three months. Generale’s Brian Hilliard said that US shares in 3PAR shares rose to 3PAR’s board said yesterday when
More than half of the retailers sur- yesterday’s CBI data pointed to fur- $27.90 in extended-hours trading accepting Dell’s bid that it continued 9,980
veyed said that the volume of sales ther strong consumption growth in after HP’s announcement, suggesting to unanimously recommend the com-
rose during the first two weeks of the three months to October. investors are hoping for a lucrative pany as the best-placed suitor. 09:30 12:00 14:00 16:00
LONDON
CITY TO
COPENHAGEN
FROM £65
ONE WAY
With a flight time of less than
2 hours and a check in time of
only 15 minutes, you’ll hope the
rest of your stay doesn’t go as
quickly. Book at ba.com
CITYA.M. 27 AUGUST 2010 News 5

F&C left reeling by


Co-op chief execu-
tive Peter Marks
said talking down
the economy was
“absolutely” affect-

fresh cash outflows


ing confidence

2014. F&C suffered £2.5bn net out-


FUND MANAGEMENT
BY OLIVER SHAH flows of client cash in the six months
to 30 June. Although underlying pre-
SHAREHOLDERS in F&C Asset tax profit doubled to £12.4m, as cus-
Management are watching for a tomers bought more high-margin
move by activist investor Edward products, the firm’s loss after tax
Bramson after the company released widened from £8.7m to £19.5m.
a nightmarish set of interim results. F&C is expected to meet in the
Shares in F&C tumbled six per cent next few weeks with Bramson, who
to 58p yesterday after the fund man- has built up an 11 per cent stake
ager cut its dividend in half to 1p in through Sherborne, his turnaround
an effort to eliminate its net debt by vehicle.

Co-op hits out


at Cameron’s
austerity talk
school and hospital workers to repli-

RETAIL
BY OLIVER SHAH cate co-operative structures in a bid to
improve public services. Chancellor
THE Co-operative Group blasted the George Osborne has praised mutuals
government for damaging consumer as a way of letting people “take own-
confidence with talk of an “age of ership of their own enterprise”.
austerity” yesterday, despite revealing Marks’ broadside came as the Co-op
an 18 per cent rise in profits. said its purchase of Somerfield
Britain’s largest mutual retailer helped push group turnover up eight
said it had beaten tough conditions to per cent to £6.9bn in the six months
grow in the first half of the year but to 3 July. The business, whose activi-
predicted a gloomy trading environ- ties span food retailing, financial
ment until at least the end of 2011. services, travel and funeral parlour
Chief executive Peter Marks told operations, said profit before pay-
City A.M.: “Are we going to be helped ments to members fell 31 per cent to
by the general economy any time £169m. But after one-off items it rose
soon? No – how can you be because 17.6 per cent to £260m.
the government is telling us about an Co-operative Financial Services,
age of austerity.” which merged with the Britannia last
Marks said negative language from year, picked up a stream of customers
politicians was “absolutely” affecting disillusioned with bigger-name
sentiment on the high street. He banks. Its operating results rose by
added: “If you talk loudly enough and more than a third to £109.3m and
long enough about something, peo- savers’ deposits grew to £1.4bn.
ple start believing it. However, it is
clear the government needed to tack- Prime Minister David
le the deficit. Everybody knows we
were living beyond our means.” Cameron has tried to
Marks’ comments are likely to hit encourage public
home with Prime Minister David sector workers to
Cameron. Earlier this year, Cameron form co-operatives
re-launched an initiative urging

Earthquake, rig explosion and


windstorm curb Chaucer profits
underwriting period… although our

INSURANCE
property and energy divisions still
THE Chilean earthquake, Deepwater produced credible results.”
Horizon oil rig disaster and European Analysts said the numbers were
windstorm Xynthia conspired to cut below expectations but highlighted
interim profits at Chaucer Holdings rate increases in half of Chaucer’s
by 59 per cent to £7m. underwriting portfolio as a positive.
Shares in the Lloyd’s of London The firm said it was particularly hop-
insurer fell 2.2 per cent to 45p yester- ing for higher motor insurance rates.
day as it said “an unprecedented level Mark Williamson at KBC Peel Hunt
of catastrophes” and a slump in said: “While the results themselves
investment performance meant its are disappointing, the market is like-
return on equity fell from 8.6 per cent ly to look through this and focus on
to 3.1 per cent. The company kept its the rate hardening.”
dividend at 1.3p, but earnings per Eamonn Flanagan at Shore Capital
share dropped from 2.7p to 0.9p. said the next three weeks of hurri-
Chief executive Bob Stuchbery said: cane season would be crucial for
“The first half proved to be a difficult Chaucer’s fortunes in the second half.
CITYA.M. 27 AUGUST 2010 Focus on Diageo 7

US and Europe shun premium brands


RECEIVED wisdom tells us that hard- keting spend, which was increased bullish on the firm’s prospects,
pressed customers hit the bottle in by 50 basis points (pretty expensive promising “improved” organic profit
times of economic woe. If they’re marketing when you consider the growth in the year ahead (an effec-
doing that this time round, they anaemic sales growth). tive downgrade to the four to five per
aren’t reaching for Smirnoff Vodka However, the main drag on prof- cent pencilled in by analysts).
or Johnnie Walker whisky. Save for a itability was stubbornly sluggish trad- In the long-term, Diageo will come
13 per cent rise in net sales at the ing conditions in North America, good. Emerging markets are falling
international division, which which still accounts for a worrying in love with prestige alcohol brands,
accounts for Africa, South America 40 per cent of profits, and Europe. In and iconic products like Guinness
and the Middle East, Diageo’s full- these regions, customers are shun- will thrive. But rising unemploy-
year numbers are pretty lacklustre. ning premium brands, or buying ment and spluttering economies in
In theory, Diageo should boast them in supermarkets and off- Diageo’s biggest markets make it
high operational gearing, but it isn’t licences, where Diageo’s margins are impossible to recommend these
evidenced by these results: overall much lower. In North America, net shares. david.crow@cityam.com
organic sales growth was just two sales were off three per cent while
per cent, while organic profits grew Europe dipped by two per cent.
by exactly the same amount.
This was partly due to higher mar-
These results don’t inspire confi-
dence, and management is far from
BOTTOMLINE
Analysis by David Crow

Chief executive Paul Walsh said emerging markets were growing Picture: REUTERS

Diageo offers
bleak outlook
Rose admitted he was being cau-

LEISURE
BY HARRY BANKS tious but insisted that he was ready
for any uptick in developed markets
DIAGEO, the world’s biggest spirits in 2011 with marketing spend set to
group, expects slightly higher profits rise above sales growth. He said
growth this year driven by develop- Diageo sees input costs flat this year
ing markets but a cautious outlook and is well hedged on grain.
hit its shares after meeting forecasts “We are a little cautious over our
for annual earnings. core developed markets in Europe
The London-based maker of and North America but we feel good
Smirnoff vodka, Johnnie Walker about our International and Asia
whisky and Guinness beer saw strong Pacific regions,” he said.
growth in Latin America, Africa and The group posted pre-exceptional
Asia, which account for a third of earnings up 13 per cent at 72p a
group earnings, while demand in share for the year to the end of June,
Europe and North America was still compared with a consensus of 72.5p.
weak. The final dividend rose six per cent
Chief executive Paul Walsh said to 23.5p a share, and the group said it
the group had seen a strong perform- would now look to increase dividend
ance in the first six months of 2010 payments by six per cent rather than
and now expects higher growth this the five per cent it said previously.
year than the two per cent rise in
underlying operating profit seen in ANALYSIS l Diageo
the reported year to June 2010. 1160 p
He added that the performance, 1050.00
1140 26 Aug
“gives us confidence that in fiscal
2011 we well be able to improve on 1120
the organic operating profit growth 1100
we have delivered this year”.
1080
But analysts said the outlook was
cautious with no share buyback pro- 1060
gramme announced and the rise in 1040
the dividend was very modest.
Diageo’s finance director Nick 1020
7 Jun 25 Jun 15 Jul 4 Aug

SALES BY REGION
ANALYSIS l Net sales by region

International

28%
of net sales

International

34%
of net sales

International

International 11%
of net sales
27%
of net sales
The Capitalist
8 CITYA.M. 27 AUGUST 2010
EDITED BY
JEREMY HAZLEHURST
GOT A STORY? EMAIL
jeremy.hazlehurst@cityam.com

A CAAN-DO It’s survival of


the fittest out
ATTITUDE there, if you
don’t fight for
IN FLOODED aid then you
PAKISTAN don’t get it.
That’s really
AT a time of year when many City folk are
sunning themselves on beaches abroad, not how it
it’s good to see that James Caan, the entre-
preneur most famous for his appearances should be DICK FULD: MAN
on Dragons’ Den, is putting his cash to
good use. Last week he flew out to
Pakistan to help with the flood relief
OF EMOTION
THIS is not something you hear very often,
efforts there. His missive about his experi- but here goes: “Poor Dick Fuld.” The for-
ences doing his bit makes for some mer Lehman Brothers boss, who was
extraordinary reading. James Caan gets hands-on in Pakistan. known as The Gorilla for his gruff, not to
Landing in Lahore, he set about trying say, er, hands-on, management style, is
to buy supplies for 1,000 families in a vil- hard to love, but it seems that he has a
lage outside Islamabad, but encountered
problems even finding enough food in
SADDLE UP AMISH ANALYST softer side.
BIKES are a far commoner sight in the ANOTHER sensitive City type is James Former Lehman employee named Kevin
the shops to load his lorry. City these days, what with Boris’s scheme Montier, an analyst at investment White has recently revealed a strange
Finally he got enough food together, of rent-a-bike, and now the City of management firm GMO. In a research encounter he had with his boss in the
but after travelling through the country- London is trying to encourage bicycling note this week he writes: “As those who wake of the investment bank’s collapse in
side, he concludes that “it really is sur- too. know me can attest, I’ve never worried late 2008. the 47-year-old told how, just
vival of the fittest out there, and if you They’re calling on senior managers to about being fashionable. Not for me, the after it became clear that Lehman had col-
don’t fight for it, you don’t get the aid. take part in sponsored cycle-rides as part fads and fashions of this contemporary lapsed, he went to see Fuld in his office.
This isn’t how it should be.” of European Mobility Week, 16-22 age. Indeed, I’m known affectionately to “Are you going to shoot me?” Fuld
His description of driving through the September, with each manager tasked some of my colleagues as “the Amish,” asked. No, replied White, and explained
flooded area makes vivid reading: “As we with raising £5,000. for my shunning of the modern world. that he was there to thank him for the
weaved in and out of the tops of trees The money goes to Re-Cycle, which Touch-screen technology and person- good times. “Give me a hug. I need a hug,”
that barely broke the surface of the sends second-hand bikes in Africa. less check-ins at airports haunt my responded an emotional Fuld, and
water, I saw people’s belongings floating To find out more, and to take the nightmares.” He finishes: “Perhaps I am embraced his astonished colleague. Then
to the top; kitchen utensils, and then the first step to seeing your boss tottering just a man from a different time.” he started crying. “Kevin, you’re the first
odd roof top here and there. It was mind- about on two wheels, see www.cityoflon- Then wandered off and started person to say thank-you to me,” wept poor
boggling.” Depressing. don.gov.uk/cyclechallenge. embroidering a quilt, presumably. old Dick. And the last, one assumes.
10 News CITYA.M. 27 AUGUST 2010

Playtech sees
William Hill is profits soar as
on track due it grows further

to World Cup
William Hill benefited from the football World Cup Picture: REUTERS GAMING


ANALYST VIEWS: IS WILLIAM HILL IN LINE PLAYTECH, the online gaming soft-
ware firm, yesterday reported a jump
FOR A BIG WIN? Interviews by Steve Dinneen
in profit of 14 per cent to €37m
(£30m), as launches of Italian bingo
and French poker networks increased
its presence in new markets.
IVOR JONES | NUMIS

GAMING Royal Ascot festival. Total revenue was up 29 per cent to


BY STEVE DINNEEN The average forecast for full-year €72.9 and core profit rose 20 per cent
core profit stands at £258m. to €54.2.
BRITAIN’S biggest bookmaker Earlier in August, rival Ladbrokes The share price has continued to be weak and The firm now expects further for-
William Hill said it was on track to reported a five per cent increase in William Hill has fallen to a level where we believe it is right ward momentum after the acquisi-
meet full-year expectations after first half operating profit as a boost to tion of Virtue Fusion in February


reporting a one per cent rise in first trading from the World Cup also off- to pick up shares for the medium-term. We are changing our 2010, which positions Playtech as the
half earnings. set unfavourable horseracing results, recommendation to ‘add’ from ‘hold’. leading B2B bingo network provider,
Reflecting industry trends, the especially at June’s Royal Ascot meet- with a pipeline of new licensee
firm benefited from a major boost ing, where punters cleaned up. prospects in UK and internationally.
from the World Cup. The company, Last month William Hill appoint- GEETANJALI SHARMA | EXECUTION NOBLE It also announced an interim divi-


which operates over 2,300 betting ed Gareth Davis as its new chair- dend of 9.4 cents per share, an
shops in the UK and Ireland, said man. Davis, who recently retired as increase of six per cent on the previ-
underlying profit rose to £135.6m chief executive of Imperial Tobacco, William Hill’s performance is impressive as its 26 per ous year.
compared with £134.6m the year will take the helm next week. cent group net revenue increase compares with eight per Chairman Roger Withers said: “We
before. have enjoyed a strong trading per-


The average forecast for first half ANALYSIS l William Hill cent at Ladbrokes. Management is being cautious on the formance in the first half. Regulatory
core profit had stood at £135.2m. 185 p expectations given the larger consumer concerns. change across Europe is transforming
William Hill, which takes over 1m 166.20 the market dynamics and opens up
180
26 Aug
bets a day, said results in the football many new opportunities.”
World Cup beat expectations, gener- NIGEL PARSON | EVOLUTION SECURITIES He added: “Although the restric-


ating a gross win of £32.2m for the 175 tions of the newly regulated French
tournament, which it said was a good market will, as anticipated, impact
margin. 170 William Hill’s results show no major surprises, with revenues in the second half, we have
However, it also saw relatively poor
165 flat Ebitda driven by online growth and a strong World Cup, a strong pipeline of new licensees
horseracing results in the period with which we expect to more than offset


a comparatively weak Grand National offset by horseracing results and higher marketing costs. The this in 2011 and help maintain our
160
in April followed by a loss making 7 Jun 25 Jun 15 Jul 4 Aug retail cash generation supports a solid dividend yield. growth trajectory.”

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CITYA.M. 27 AUGUST 2010 News 11

NEWS | IN BRIEF
Avis Europe motors to a profit
Car rental firm Avis Europe posted its DON’T MISS THE AWARDS SHORTLIST
best first-half results in five years,
swinging to a profit on new contract
wins and cost controls, and signalled
BEGINNING TUESDAY
growth in markets in Asia and the
Middle East. January to June underly-
ing pre-tax profit was €0.3m (£0.2m)
compared with a loss of €13.9m a year
ago. Rental income rose 1.1 per cent to
€539m, and net debt dropped to €786m
at the end of June.

Hikma boosted by rise in sales


Hikma Pharmaceuticals said a strong
performance in US generics and product
launches helped its first-half revenue
rise 11 per cent and put it on track for
similar growth for the year. The Jordon-
based company, which sells off-patent
generic drugs under its own brands and
in-licensed products across the Middle
East and North Africa, and generics in
the US, reported sales of $357.7m
(£230.1m) and adjusted operating profit
of $73.2m, up 20 per cent.

IMI is bullish on margins


IMI posted a sharp rise in first-half
profit that beat market forecasts on
higher margins, which the British engi-
neer expects to go up further in the sec-
ond half, and said it sees new clean
energy laws driving growth in several
markets. For the January to June period,
IMI reported an adjusted pre-tax profit
of £136.4m, compared with £86.4m a
year ago. Operating margins were 15.7
per cent versus 10.9 per cent a year ago.
Adjusted earnings per share grew by 61
per cent to 29.8p. Revenue rose nearly
three per cent to £925m.

Strong growth for Filtrona


British plastic and fibre products suppli-
er Filtrona reported a 37 per cent rise in
its first-half adjusted pre-tax profit,
helped by a revenue rise in its higher
margin divisions, and forecast strong
growth in the second half. The company,
which develops and manufactures prod-
ucts for use in consumer, medical and
industrial markets, raised its interim div-
idend by 11.1 per cent to 3p. January to
June adjusted pre-tax profit was
£34.6m, compared with £25.3m a year from
ago. Revenue for the year was up 8.7
per cent at £247.6m.

New business wins aid Huntsworth


UK public relations firm Huntsworth
posted a nine per cent rise in its first-
half pre-tax profit, helped by new busi-
ness wins, and said it could weather
cuts to government spending.
Huntsworth, whose public relations
brands include Citigate, Grayling and
Red, raised its interim dividend by 20
per cent to 0.90p. For the January to
June period, Huntsworth reported a pre-
tax profit of £12m, compared with £11m
a year ago. Revenue increased 14 per
cent to £87m.

Salamander eyes Asia expansion Fantastic deals on this destination


Salamander Energy is looking to expand
further in Asia through acquisitions and
farm-in deals, its chief executive said,
after swinging to a first-half adjusted
profit on higher production and crude oil
prices CLc1. Salamander forecast aver-
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rise to 20,000 barrels of oil equivalent
per day (boepd) after completing the
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CITYA.M. 27 AUGUST 2010 Focus on Asil Nadir 13

Blast from the past as Nadir returns


TIME LINE | THE RISE AND FALL OF ASIL NADIR
● May 1941 shares and file a bankruptcy petition. ● Late 1990s
Born in Lefka, northern Cyprus. ● 1991 Nadir runs a successful media company in
● 1960s Polly Peck collapses with debts of £1.3bn, Cyprus, defying calls to return to Britain.
After studying in Istanbul, moves to the following a Serious Fraud Office probe. ● 1 July 2010
UK to work in his father’s business. ● 1992 Nadir promises to return to the UK if the
● 1986 Nadir in a disputed hearing is set a £3.5m government guarantees he will not be
Wearwell, Nadir’s fashion business, floats bail after being charged with 66 counts kept in custody.
on the London stock exchange for £12m. of false accounting and theft. ● 26 August 2010
● 1990 ● 1993 Nadir returns to British soil after 17 years.
Stockbrokers demand Nadir pay up for Nadir flees to Cyprus two days before a ● 3 September 2010
trading in £3.6m worth of Polly Peck hearing for a £34m fraud trial. Trial is scheduled to begin.

Asil Nadir with his wife Nur landed in the UK yesterday Picture: REUTERS

Asil Nadir became a captain of industry


before his reputation was destroyed by
allegations of fraud, writes Steve Dinneen
A TORY Prime Minister is slashing the tipped off about alleged money trans-
budget, Iron Maiden are top of the fers to Northern Cyprus. The compa-
album chart and now exiled tycoon ny lost practically its entire value
Asil Nadir is back in the UK. It’s like overnight.
the 1980s never ended. Officers discovered millions pounds
Nadir, 69, touched down to a media worth of the firm’s assets had been
scrum yesterday, accompanied by his transferred into Nadir’s name, and
glamorous 26-year-old wife, Nur. found dozens of unexplained transac-
Tanned, wearing a double breasted tions, which Nadir claimed were per-
suit, only his thinning hair and sonal banking services for Turkish
hunched gait belied his 17-year hia- and Northern Cypriot businessmen.
tus. As he awaits court proceedings in Nadir was bankrupt and the firm
September he will be living in a was placed in administration, while
£20,000-a-month Mayfair flat. It the SFO began the three-year process
seems he has lost none of his love for of trawling through the labyrinthine
the finer things in life. company reports.
In many ways, Nadir’s tale is a per- Rumours spread like wildfire about
fect reflection of the enterprise, glam- the firm and it’s controversial chief
our and excess of the 1980s. During executive. Tales abounded that Nadir
his heyday he was blessed with a kept 14 “girlfriends” on the company
Midas touch. He took the reins at an books as special consultants.
all but unheard of textiles firm called The Midas touch became the kiss of
Polly Peck, a small fashion house that death as others were drawn into the
had shuffled along since 1940 with- fray. Close friend Michael Mates, the
out ever causing a stir. Within five Northern Ireland secretary, who
years it was a FTSE 100 company, a believed Nadir was being set-up by
vast conglomerate, selling everything MI6, gave him a watch engraved:
from mineral water to electronics, “Don’t let the buggers get you down”.
fashion to fruit. Nadir was placed on bail worth
By 1983, its stock had rocketed to a £3.5m, with the SFO convinced they
staggering £35 a share. Some investors could stand up a £34m fraud case
received returns of more than a thou- against him, claiming he had stolen
sand times their initial outlay. from shareholders. But when the bail
Nadir became a public figure, elapsed in 1993, he made his infa-
donating £500,000 to the Tory party, mous bunk to his homeland, where
befriending top politicians and brush- he remained a fugitive for 17 years.
ing shoulders with royals. It emerged during a court hearing
But even then, the company’s for- in July this year that Nadir was never,
tunes were sometimes rocky. Its share legally speaking, on the run because
price crashed when vital tax breaks technically bail had never been grant-
were withdrawn by the Turkish gov- ed in the first place.
ernment, taking it years to recover. Now, back in the UK his arrival will
By 1990 it had built back up to 450p force the Serious Fraud Office (SFO) to
a share, valuing the firm at almost pick up where it left off almost a
£2bn. But Nadir was still convinced decade and a half ago. Fears are
his empire was undervalued and he already growing in legal circles that it
made an ill-fated attempt to take it may prove near-but impossible to try
private, before unceremoniously Nadir on multiple fraud allegations
ditching the plans just a month later. given the time that has elapsed.
Then the tycoon reached his own, Crucial documents are believed to
very personal, nadir. have been lost and his lawyers are
Later that year the Serious Fraud expected to stress the practical obstal-
Office (SFO) stepped in after being ces of undertaking a trial after so long.
14 News CITYA.M. 27 AUGUST 2010

Glencore moves
Price hike joy
RIO TINTO BOSS SHRUGS OFF M&A TALK

to divest $5bn
at Kazakhmys of gold assets


COMMODITIES
THE WORLD’S biggest commodities
rest of the year could hit five per cent. trader Glencore unveiled plans yester-

MINING
The company said its smaller day to spin off or list its gold assets,
BY MARION DAKERS power, gold and petroleum divisions worth up to $5bn (£3.22bn), as it
KAZAKH copper miner Kazakhmys were also performing well. reported a surge in first-half profits
benefited from the rise in commodity Spending on new and existing proj- due to strong metals prices.
prices in the last six months, but ects rose by 48 per cent to $290m, Swiss-based Glencore has also
warned yesterday cost hikes could after a year of cash conservation. dropped the idea of finding a partner
catch up and dent future earnings. Kazakhmys also confirmed it is for its Prodeco coal assets, a source
Underlying profit rose 159 per cent considering a secondary listing in close to the situation said.
to $696m (£448m) in the six months Hong Kong. “We want to raise our Privately-held Glencore, which is
to July, though pre-tax profit dropped profile in China. It is our core market. preparing to become a listed compa-
5.2 per cent to $631m due to excep- This would be one way to do it,” said ny after issuing a $2.2bn convertible
tional items. chief executive Oleg Novachuk. bond last year, said the planned sale
The profit gains were lifted by Shares closed up 5.2 per cent at or flotation of its Kazzinc precious
strong copper prices in particular. £11.29 yesterday making the mining metals producer and other assets
The company said it sold its metal at company the biggest gainer in the would help meet $1bn of planned dis-
an average of $6,981 per tonne, up 73 FTSE 100. posals, of which $400m had already
per cent from last year. been agreed.
The London-listed group said it ANALYSIS l Kazakhmys The divestment news came as
expects to feel an impact from costs 1300 p Glencore posted a 42 per cent jump in
1250
1129.00
in diesel and steel as well as curren- 24 Aug first-half net profit to $1.56bn.
cies, and forecast that full-year gross 1200 Revenues leapt more than half to
cash costs would rise to 180 to 200 1150 $70bn thanks to a threefold increase
cents per pound from 159 cents last 1100
in industrial activities, while trading
year. revenues rose slightly.
1050
“It’s likely to be towards the north Net debt rose to $13.6bn from
of that guidance because we are see- 1000 RIO TINTO chief executive Tom Albanese told a conference in Brisbane yesterday the future $10.2bn, while debt coverage ratios
ing some cost pressures,” said chief 950 of the mining industry remains volatile, and that Rio will focus on production growth were largely unchanged due to
financial officer Matthew Hird yester- 900 rather than acquisitions. He has already dismissed the idea of bidding against rival BHP increased earnings and operating
day, adding that cost increases for the 7 Jun 25 Jun 15 Jul 4 Aug Billiton for fertiliser firm Potash, saying: “I’m a miner, not a farmer”. Picture: REUTERS cash flow, the company said.

UK oil firms post mixed results Petropavlovsk cuts its gold


targets by less than feared
as they aim to widen exploration fears over a miss and an even worse

MINING
production downgrade have been
its reserves base, while Premier said Premier added that a 17 per cent RUSSIAN miner Petropavlovsk cut its priced in during the run-up to

ENERGY
BY HARRY BANKS drilling plans in the North Sea and rise in first-half oil and gas produc- gold production target for the year results,” said Liberum Capital, adding
Indonesia could double its reserves. tion and higher prices allowed it to by less than expected, helping to out- that it expected a material improve-
BRITISH oil explorers Premier Oil and “We’re very excited about them,” swing to a profit after tax of $62m weigh disappointing interim results. ment in the second half.
Soco International flagged potential- Premier chief executive Simon (£39.9m) from a loss of $27.3m. It cut its gold output guidance by Shares closed 4.4 per cent up at
ly transformational drilling plans for Lockett said. Soco’s first-half net profit fell 62 around 40,000 ounces for the year, to £10.19 in London trading yesterday.
the second half of 2010 yesterday as The company said it was now more per cent to $12.0m due to a 23 per 636,500 to 670,000 ounces. The company posted a net loss of
they unveiled mixed results despite confident of reaching its target of cent drop in production, higher taxes Many analysts had already factored $56.2m (£36.2m) for the six months
higher oil prices. producing 75,000 barrels of oil equiv- and a rise in costs. in lower production, pushing the through June, compared to a profit of
Soco said its exploration pro- alent per day (boepd) in 2012 and Analysts at Evolution Securities shares down 11 per cent since the $74.m in the same period last year.
gramme, already under way in chief financial officer Tony Durrant said Premier remained a potential group announced first-half output of Sales slid 8.6 per cent to $195.7m,
Vietnam and the Democratic said he expected production of over takeover target but Lockett said he 166,300 ounces in July. thanks to lower grades of precious
Republic of Congo, could quadruple 100,000 boepd in 2015. had received no recent approaches. “While disappointing, we believe metal emerging from existing mines.
CITYA.M. 27 AUGUST 2010 Economic News 15

Eurozone loans
Wall Street to households
hails better surge in July

jobless claims
EUROPEAN ECONOMY


LOANS to European households and
businesses grew at the fastest pace in
more than a year in July as optimism
about the currency bloc’s economic
recovery grew, the European Central
Bank (ECB) reported yesterday.

US ECONOMY less bearish jobs data, analysts said The central bank said that lending
BY JESSICA MEAD the claims are still much too high to to the private sector increased 0.9 per
indicate a substantial shift in what cent on July 2009, building on a 0.5
REPORTS of shorter jobless queues in remains a weak labour market. A majority of surveyors in London have seen demand rise Picture: Micha Theiner/ CITY A.M per cent rise in June.
the United States gave Wall Street Analysts also pointed to the four- Analysts said that the real bright

London lettings boom as


some much-needed cheer yesterday week average of new claims, which is spot was that growth in lending for
after poor housing market and considered to be a more reflective house purchase – a leading indicator
durable goods figures earlier this measure of the underlying trends in of the Eurozone business cycle –
week heightened fears of a double-dip the US jobs market. This rose 3,250 to gained further momentum in July,

demand pushes up rents


recession. 486,750, which is the highest number rising to 3.5 per cent from 3.3 per
Initial jobless claims for state since late November. cent. However, bank lending to firms
unemployment benefits fell 31,000 to The outlook for August’s headline continued to contract with bank lend-
a seasonally-adjusted 473,000 last unemployment rate, which will be ing to non-financial firms down 1.3
week, far fewer than the 490,000 that published next Friday, is still extreme- per cent.
the market had been expecting. ly weak. Eurozone broad money growth was
The better-than-expected data On average, US economists forecast PROPERTY May to July. weak in July, expanding at just 0.2 per

boosted shares and helped the US dol- 110,000 layoffs, mostly Census-relat- BY KATIE HOPE The difficulty of securing mortgage cent on an annual basis, compared to
lar to gain ground against the yen as ed. This would put the jobless rate at financing is continuing to persuade a consensus of 0.3 per cent. This indi-
traders moved out of safe-haven assets 9.7 per cent. LONDON’S lettings market remains higher numbers of people to rent, cates that inflation pressures are like-
and bought back into the dollar. buoyant with a surge in tenant rather than buy, found the survey, ly to remain muted over the
“No one was bullish on the labour FAST FACTS | A BAD WEEK FOR US DATA demand pushing rents in the capital which says 76 per cent more survey- medium-term.
market, but it was not as bearish as higher. ors reported a rise in rents than a fall. However, Klaus Baader at Societe
some people had thought. Our call is ● Both new and existing home sales fell at the Forty three per cent more char- Just a year ago the picture was very Generale noted that shorter-term
still that we are not heading toward a sharpest monthly pace in July since records tered surveyors in London reported a different, as oversupply pushed rents measures of M3 growth are above the
double-dip,” said Thomas Simons, a began in 1963. rise in demand for property rather down and more surveyors reported annual rate, indicating strengthening
New York-based economist at ● Durable goods orders were weak, supported than a fall, up from 37 per cent in the falling not rising rents. A majority, 68 momentum – over the past six
Jefferies. only by a rise in commercial aircraft orders. first quarter, according to the latest per cent more surveyors expect rents months, M3 is up 1.9 per cent on an
Although traders welcomed the RICS residential lettings survey for to increase over the next quarter. annualised basis.

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CITYA.M. 27 AUGUST 2010 News 17

Domestic banking aids Credit Amec is upbeat on future


as customers spend more
Agricole to swing to a profit ENERGY


“We see a story of gradual improve-
to a profit of €330m in the second Shares of Credit Agricole closed up OIL services and engineering group ment to our pipeline,” said chief

BANKING
quarter from a loss of €87m a year 2.7 per cent on Euronext’s Paris mar- Amec posted a 20 per cent rise in financial officer Ian McHoul.
CREDIT Agricole, France’s third- earlier after it booked fewer losses on ket, having initially surged as much first-half profits yesterday and said it Amec – whose customers operate
largest banking group, said yesterday collateralised debt obligations, asset- as six per cent. The stock is still down saw customer spending returning in in the mining, oil and oil sands,
that growth in its domestic retail backed securities and other risky 18 per cent since the start of the year. most of its key markets. nuclear power and renewable energy
business and a strong investment holdings. The investment banking perform- Amec’s first-half earnings before sectors – said in March that 2010
banking performance more than off- Excluding the impact of those risky ance helped offset a €643m loss in the interest, tax and amortisation rose to would be challenging, but saw a
set further losses in its Greek unit. assets, profit from ongoing opera- group’s international retail banking £113.5m from £94.5m in the same return in the first half after winning
Second-quarter net profit surged 89 tions in the division fell 23 per cent to arm, which was driven by losses in its period last year. contracts with BP in Azerbaijan and
per cent to €379m (£310.4m), as net €401m as strong growth in financing Emporiki Bank business in Greece. Its order book grew eight per cent the US Navy.
banking income grew 20 per cent to a activities helped partially offset the Credit Agricole took a €418m good- to £3.5bn, it said, adding that the Amec’s full-year earnings before
record high of €5.47bn. sharp drop in trading revenues that will impairment charge on the busi- Gulf of Mexico oil spill would have no interest and tax are forecasted at
The group said its corporate and were reported across the industry in ness after Emporiki set out its impact as it has a small exposure to £228m. Amec’s shares yesterday
investment banking division swung the second quarter. restructuring plans in late June. the region. closed 5.1 per cent up at 891.5p.

City recruiter BEST OF THE BROKERS


ANALYSIS l BHP Billiton
p
1,802.00
ANALYSIS l Heineken
€ 34.99
26 Aug
ANALYSIS l Promethean
54
p
42.50

says bankers
2,000 26 Aug 26 Aug
36.50
50
1,900
35.50

46
1,800 34.50

aren’t leaving 1,700

16 Jun

BHP BILLITON
6 Jul 26 Jul 13 Aug

The mining group’s results were largely in


33.50

HEINEKEN
14 Jun 5 Jul 26 Jul

Deutsche Bank recently downgraded its


16 Aug
42

PROMETHEAN
16 Jun 6 Jul 26 Jul

Goldman Sachs repeated its “buy” recom-


13 Aug

line, said Citigroup, with iron ore revenue status to “hold” on the brewer, saying its mendation on the educational technology

RECRUITMENT delivering a surprising jump to $6bn. The sales growth is among the weakest of its firm, with a six-month price target of 235p.
The group saw revenue for the peri-
BY EMMA SADOWSKI od come to £188.8m, marking a 33 broker maintained its “buy” rating with a peers with no prospect of a big improve- However, the broker lowered its forecasts
ROBERT WALTERS, the chief execu- per cent hike on last year when the target price of £27.00. BHP’s recent eco- ment. DB has raised its earnings per share for 2011 and 2012 in light of its more cau-
tive at one of the City’s largest recruit- group reported £141.7m in income. nomic commentary has been cautious, estimates for the year to €2.45, but tious macro outlook. Key risks for the firm
ment agencies, yesterday backtracked Walters said the group’s positive
on comments he made earlier this financial results were directly linked though Citi conceded that investors were reduced its target share price to €40 pend- include a slowdown in educational spend-
year suggesting there would be an to the success of the company’s Asia likely to focus on its bid for Potash Corp. ing signs of solid growth. ing and rival products hitting sales.
exodus of bankers from London. Pacific business.
Walters told City A.M. that his Fee income in the region rose by 81
recruitment business, Robert Walters, per cent to £34.4m from £19m.
To appear in Best of the Brokers email your research to notes@cityam.com
had yet to see the mass exit of Trading conditions continued to be

Savills cautious on 12 month outlook


bankers from the City that he predict- difficult in the UK and Europe, said
ed in March and suggested that a the recruiter, and the outlook
change in government meant that remained uncertain.
“people were sitting tight”. Up to 70 per cent of Robert Walter’s
“The coalition government is doing fees come from outside the UK.
all of the right things at the moment.
I don’t think we’ve seen a massive ANALYSIS l Robert Walters £17.2m from £2.5m. Asked if Savills expected the first

PROPERTY
exit of bankers yet as people are wait- 260 p 235.00 Likewise, Savills transaction advice half of 2011 to be broadly flat against
ing to see what the government is 250 26 Aug GLOBAL property adviser Savills business saw revenues rise 57 per the same period in 2010, chief finan-
going to do,” said Walters. 240 maintained a cautious second-half cent to £116.6m, helping it swing to cial officer Simon Shaw said: “I think
His comments come as the 230
outlook and raised the spectre of a an underlying profit before tax of that’s probably as fair a position as
recruiter saw a return to profitability flat performance in the first six £9.4m from a loss of £7.6m a year ear- you can take.”
220
during the first six month of its months of 2011 after posting much- lier. “The concerns we are looking at
financial year after posting £5.2m in 210 improved interim results yesterday. Its property and facilities manage- ahead are really coming in this
profits. During the same period last 200 Savills booked group revenue of ment saw revenue rise eight per cent fourth quarter,” he said.
year Robert Walters reported losses of 190 £304.4m for the first half, up 23 per to £113.7m, although underlying Savills said it would pay an
£2.3m as the recruitment market 180 cent from the same period a year ago. profit before tax fell one per cent to unchanged interim dividend of 3p
dried up. 7 Jun 25 Jun 15 Jul 4 Aug Group underlying profit advanced to £7.1m. per share.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Tom Day in association with

Corporation. She has also acted as an Commerzbank London Capital Group


McGrigors independent director at Teekay GP, an The German bank’s corporates and The financial services firm has appoint-
The law firm’s London office has appointed international marine services provider, markets division has added six new ed Malcolm McCaig as a non-executive
Karl Woolley as a partner in its finance prac- since 2005. members to its global FX business. In director. McCaig has worked extensive-
tice. He is tasked with strengthening the London, Rahan Qureshi will join the for- ly in the sector, with experience in risk
firm’s relationship with the City’s banks and F&C Investments eign exchange desk as a senior trader. management, regulatory compliance
his experience in acquisition and funds The asset manager has announced the Winston Quek has been appointed and IT. He has been a partner at both
finance is expected to aid this expansion. appointment of Fiona Prendergast as a head of FX sales for Asia, whilst Roger Ernst & Young and Deloitte, and held
Woolley joins from SJ Berwin, where he is client director in its institutional team, Sieber joins FX sales for emerging mar- senior management positions at
currently a partner. Prior to joining SJ Berwin with effect from 1 September. She kets in Zurich. The bank’s New York Prudential, National Australia Bank
in 2006, he was also a partner at Addleshaw joins from Banquo Credit Management branch has also added several new and CIGNA. He is currently the chair-
Goddard. where she has worked since 2004, her hires: Joseph Volpicella and Kevin man of Kent Reliance Building Society
most recent role being client relation- Wilson join the FX sales and FX local and a House of Lords audit committee
Premier Oil accountant with extensive experience ship manager, a position she has held markets teams respectively, while Chia member. His non-executive director
Jane Hinkley will join Premier’s board in international shipping, has previously since 2007. Prendergast has also Kang Cheam will take up the role of FX portfolio also includes Unum,
as a non-executive director on 1 held managing directorships at Navion worked at Merrill Lynch as a senior local markets trader based in Renaissance Capital and Crest
September. Hinkley, a qualified Shipping and Gotaas-Larsen Shipping specialist in product data services. Singapore. Nicholson.

To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com
18 News CITYA.M. 27 AUGUST 2010

G4S sees opportunities in cuts Bloomsbury pins hopes


sector -- we can help the British gov- higher at £3.63bn pounds for the six
on Harry Potter reissue

SUPPORT SERVICES
ernment through a difficult time.” months to the end of June. It
BY DAVID CROW Services companies with exposure increased its interim dividend by five


SECURITY services group G4S report- to contracts with the British govern- per cent to 3.17p. PUBLISHING pipeline of new releases in the second
ed a three per cent rise in first-half ment are bracing themselves for half of the year, which is traditionally
profit, helped by strong performanc- Downing Street’s October Spending ANALYSIS l G4S BLOOMSBURY has seen profits during stronger for the publisher, will push
285 p
es at its emerging markets business- Review, which will outline the extent 254.10 the first six months of the year plum- its figures back up.
es, and predicted UK government of the coalition’s drive to cut public 280 26 Aug met by almost 50 per cent, as the pub- In November the group will re-
spending cuts would fuel further spending. 275 lishing house puts its hopes on a launch the Harry Potter series, which
growth. However, G4S , which provides serv- 270 November re-launch of the Harry will have new jackets, to coincide
“The Middle East, India and large ices ranging from cash transportation 265
Potter series to pull it back up to 2009 with the release of the latest film in
parts of Asia all show good signs of to security and protection, believes levels. the cinemas.
260
delivering double digit growth in the spending cuts may boost sales in areas For the period ended 30 June, Meanwhile, revenue at the publish-
second half,” chief executive Nick where outsourcers would be hired to 255 Bloomsbury saw profits of £949,000, er rose to £36.8m during the first six
Buckles said yesterday. achieve savings. 250 which were 48 per cent down on last months of the year, a marginal
“There are also growth opportuni- G4S posted an operating profit of 245 year when profits came to £1.8bn. increase from the £35.3m it posted in
ties in the UK outsourced government £238.1m on revenues four per cent 7 Jun 25 Jun 15 Jul 4 Aug Bloomsbury is hoping that a 2009.

STV sees its


Battle for the advertising
next stage of revenue soar
TV heats up


MEDIA
BY STEVE DINNEEN
ABC will now provide its content through BT Vision SCOTTISH media group STV expects
its advertising revenue to be up 10

Steve Dinneen looks at the increasingly competitive CITY VIEWS: DO YOU THINK YOU WILL WATCH per cent in the third quarter, below
the overall TV market, due to weak-
MORE TV ONLINE? Interviews by Tom Day ness in its regional business.
The group says it expects the over-
internet TV battlefield, where viewers log on to tune in all TV market to be up 17 per cent in
the third quarter but that it was
BEN ARAM | KENNEDYS hampered by its regional business
DESPITE the ubiquity of the internet, The internet TV market-place in which will be down.
television viewing habits on both the US is already highly competitive, “I am from Germany and so I use such websites to catch up on Turnover in the period was up 20
sides of the Atlantic remain doggedly with Hulu, a joint venture between per cent year-on-year at £50m, while
traditional. Disney, News Corp and NBC shows I have missed. I am also a frequent YouTube user. pre-tax profits rose to reach £6m.
However, the battle for control of Universal, making in-roads on the Websites such as BBC iPlayer strike me as very useful and I It is now branching into new mar-
the next generation of TV viewers is dominance of user-generated video see myself using them more in the future.” kets, including a recent deal with
hotting up. Manufacturers, such as site YouTube. The potential value of YouTube that will see its content syn-
Samsung are already rolling out inter- internet streaming has led to specula- dicated in exchange for a share of the
net-ready TVs as they prepare for a tion Hulu could be in line for an IPO ad revenue.
monumental shift in viewing habits. valuing the firm at a staggering $2bn. TOM SPILLER | WILKINS BEAUMONT AND SUCKLING It will also launch a network of
BBC’s hugely popular iPlayer on- So is this the beginning of the end hyper-local news websites in
demand service has proved UK viewers for traditional broadcasters? Ian “I will not be watching TV online in the future. Television fills a Scotland.
are prepared to log on to tune in. Maude, analyst with Enders Analysis, Chief executive Rob Woodward
Now a host of firms hope to take is not so sure. particular void but I do not like it enough to go looking for it told City A.M.: “We’ve been through a
the concept to the next level and, He told City A.M.: “At the moment online.” turnaround. We are a new company
more importantly, monetise it. most content providers use internet with a clear focus and a new sense of
Apple, which has already revolu- TV to support existing revenue rather purpose. It has been a very positive
tionised the music market, hopes to than generate it, by giving subscribers beginning to the year. We have a very
ride the crest of this wave. It is expect- free online access to shows. clear organic strategy mapped out.”
ed to next week announce a new serv- “The margins can be very high TONY STARNS | NATWEST ITV said earlier this month that
ice allowing users to rent TV shows with online TV but the question is first-half ad revenue was up 18 per
and movies for as little as $1 (64p). whether there is enough appetite for “I have Sky Plus and that suits all my TV needs. I would much cent due to a boost from the World
And yesterday Walt Disney-owned premium shows over the internet to Cup and it is expected to be up
ABC said yesterday it will launch its sustain it. I can see why providers are rather use my large television screen than a small computer around 15 per cent in the third quar-
first video-on-demand site outside the getting involved – it could be a huge screen.” ter before comparatives with 2009
US by streaming its content on BT revenue stream in the future. But it is toughen, making the firm more cau-
Vision. the first step in a very long road.” tious for the future.

Segro posts a rise in its property value Building outfit Carillion


as it eyes future industrial development welcomes era of austerity
drop on the continent. data centres, manufacturers, and been hit by the timing of projects in

PROPERTY

PROPERTY
BY HARRY BANKS The group said its adjusted net companies seeking alternative office the Middle East and an increased focus
asset value per share edged up to space, prompting it to restart its BRITISH building and support services on margins over revenues.
INDUSTRIAL landlord Segro posted a 366p at the end of June 2010, from development schemes. firm Carillion said first-half underlying Many construction and outsourcing
slight rise in the value of its proper- 362p at the end of December 2009, The new developments, to be built pre-tax profit rose 17 per cent to firms are awaiting the British govern-
ties yesterday and aims to restart new while net rental income rose 11.3 per on Segro’s existing landbank, is £58.8m and it expected to benefit from ment’s spending review in October
developments amid returning inter- cent to £144.3m from a year ago. expected to add 155,000 square outsourcing as governments try to cut which is expected to reveal the extent
est from potential tenants. “We’ve seen capital values stabilis- metres of space and involve £145m of costs. of cuts to public spending.
Segro, which has about two-thirds ing on average across continental capital expenditure, to be paid for Sales were down 11 per cent on last “Our support services business is
of its properties in the UK and the Europe, but within that Spain and with existing credit facilities, the year, however, to £2.5bn for the first well positioned to benefit from the
rest across continental Europe, said Hungary still struggle,” Segro chief company said. half as a result of the company dispos- expected increase in government out-
its portfolio value grew 1.4 per cent in executive Ian Coull said. It agreed to £271m of new and ing of its public private partnership sourcing of non-core services, particu-
the first half, with a 2.5 per cent rise Segro said it is receiving interest extended bank facilities in the first investments, Carillion said yesterday. larly as we move through 2011 into
in the UK offsetting a 1.4 per cent from prospective tenants, such as half. The company said sales had also 2012 and 2013,” the company said.
Markets&Investment 19

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .257.80 +3.70 314.80 246.90 COLT Group . . . . . . . . . . . . . . . . 112.00 +1.00 144.20 107.70 Investec . . . . . . . . . . . . . . . . . . .466.80 +5.60 565.00 411.50 SABMiller . . . . . . . . . . . . . . . . .1850.00 +3.00 2090.00 1394.00
3i Infrastructure . . . . . . . . . . . . . 113.20 +0.10 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .525.00 +8.50 574.50 322.40 ITV . . . . . . . . . . . . . . . . . . . . . . . .55.70 +0.35 71.75 41.04 Sage . . . . . . . . . . . . . . . . . . . . . .244.00 +4.70 260.50 208.20
A.B. Foods . . . . . . . . . . . . . . . .1052.00 +5.00 1096.00 785.50 Cookson . . . . . . . . . . . . . . . . . . .424.90 +12.60 616.00 347.60 Jardine Lloyd Thompson. . . . . . .582.50 +5.50 604.50 420.70 Sainsbury(J) . . . . . . . . . . . . . . . .358.60 –1.90 373.00 307.60
Aberdeen Asset Man . . . . . . . . . .133.60 +0.60 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1253.00 +23.00 1361.00 607.00 Johnson Matthey . . . . . . . . . . .1591.00 +41.00 1814.00 1302.00 Schroders . . . . . . . . . . . . . . . . .1355.00* +25.00 1450.00 1029.00
Admiral. . . . . . . . . . . . . . . . . . .1524.00 +12.00 1556.00 1003.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .446.50 +5.20 539.00 371.80 JPMorgan Emerg Mkts . . . . . . . .523.50 +1.50 549.00 397.00 Schroders N/V. . . . . . . . . . . . . .1093.00* +22.00 1185.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . . 111.40 +0.70 137.30 96.60 Dana Petroleum . . . . . . . . . . . .1806.00 — 1817.00 968.50 Kazakhmys . . . . . . . . . . . . . . . . 1129.00 +56.00 1634.00 901.50
Afren . . . . . . . . . . . . . . . . . . . . . .99.95 +3.35 111.00 60.50 Davis Service . . . . . . . . . . . . . . .365.80 +1.80 442.30 356.00 Kesa Electricals . . . . . . . . . . . . .130.50 +0.90 162.00 98.45 Scot. & Sthrn Energy. . . . . . . . . 1119.00* –7.00 1206.00 357.50
African Barr Gold . . . . . . . . . . . .571.50 +4.50 685.00 520.50 De La Rue . . . . . . . . . . . . . . . . . .699.00 +9.50 1021.00 666.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .202.80 +4.30 255.00 196.50 Scottish Mortgage. . . . . . . . . . . .566.00 –5.00 623.50 441.00
Aggreko . . . . . . . . . . . . . . . . . .1395.00 +49.00 1639.00 634.50 Debenhams . . . . . . . . . . . . . . . . .57.10 +1.05 90.00 51.95 Ladbrokes . . . . . . . . . . . . . . . . .130.40* –1.00 174.29 114.60 SEGRO . . . . . . . . . . . . . . . . . . . .264.60 –10.40 403.10 244.00
Alliance Trust . . . . . . . . . . . . . . .308.60 +1.00 352.70 286.40 Derwent London . . . . . . . . . . . .1377.00 –6.00 1490.00 1077.00 Lancashire Hldgs . . . . . . . . . . . .523.00 –2.50 545.00 416.70 Serco . . . . . . . . . . . . . . . . . . . . .588.50 +2.00 656.50 451.20
AMEC . . . . . . . . . . . . . . . . . . . . .891.50 +43.00 937.00 720.50 Dexion Absolute . . . . . . . . . . . . .137.30 +1.70 148.00 121.10 Land Securities . . . . . . . . . . . . . .598.50 –4.50 743.50 543.00 Severn Trent . . . . . . . . . . . . . . .1291.00 –10.00 1358.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .407.10 –1.40 437.60 350.80 Diageo . . . . . . . . . . . . . . . . . . .1050.00 –16.00 1176.00 930.50 Legal & General . . . . . . . . . . . . . .91.05 +1.65 97.00 66.90 Shaftesbury . . . . . . . . . . . . . . . .405.90 –3.10 426.50 341.70
Anglo American . . . . . . . . . . . .2302.00* +48.00 3015.50 1846.50 Dimension Data . . . . . . . . . . . . .120.80 +0.80 125.50 56.50 Lloyds Banking Gp . . . . . . . . . . . .67.88 +1.88 77.61 45.30 Shire. . . . . . . . . . . . . . . . . . . . .1376.00 –11.00 1526.00 999.00
Antofagasta . . . . . . . . . . . . . . .1012.00 +34.50 1100.00 699.50 Domino’s Pizza . . . . . . . . . . . . . .413.50 +3.70 431.30 231.10 Logica . . . . . . . . . . . . . . . . . . . .109.60 +1.40 149.10 100.80 Smith & Nephew . . . . . . . . . . . . .540.50 –4.50 700.50 505.50
Aquarius Platinum . . . . . . . . . . .264.60 +2.70 490.00 211.50 Drax . . . . . . . . . . . . . . . . . . . . . .382.80 –2.70 496.50 321.50 London Stk Exchange . . . . . . . . .640.00 –1.50 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1133.00 –2.00 1242.00 771.50
ARM Holdings . . . . . . . . . . . . . . .333.00 +1.20 370.00 123.30 DSG Intl . . . . . . . . . . . . . . . . . . . .23.97 –0.03 39.75 23.32 Lonmin . . . . . . . . . . . . . . . . . . .1509.00 +32.00 2198.00 1336.00 SOCO Intl . . . . . . . . . . . . . . . . . .450.40 +13.00 476.60 380.60
Arriva . . . . . . . . . . . . . . . . . . . . .773.00 — 782.50 428.20 Dunelm . . . . . . . . . . . . . . . . . . . .398.30 +17.00 438.40 250.70 Man . . . . . . . . . . . . . . . . . . . . . .206.70 +0.10 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .873.50 –6.50 949.00 653.00
Ashmore . . . . . . . . . . . . . . . . . . .287.00 +3.90 311.20 211.60 Easyjet . . . . . . . . . . . . . . . . . . . .351.20 –1.10 499.90 308.50 Marks & Spencer. . . . . . . . . . . . .340.60 +6.40 412.70 321.90
Astrazeneca . . . . . . . . . . . . . . .3216.50* –13.50 3376.00 2668.00 Edinburgh Inv Tst . . . . . . . . . . . .393.30 +0.90 412.40 327.40 Meggitt . . . . . . . . . . . . . . . . . . . .267.40* +2.30 331.00 202.20 Spirax-Sarco Eng . . . . . . . . . . .1565.00 +3.00 1617.00 947.00
Atkins(Ws) . . . . . . . . . . . . . . . . .684.50* +8.00 801.00 532.50 Electrocomponents . . . . . . . . . . .206.30 +0.60 245.00 142.90 Melrose . . . . . . . . . . . . . . . . . . .221.60 +9.10 251.50 139.30 Spirent Comms . . . . . . . . . . . . . .125.10* — 135.90 74.05
Autonomy Corp . . . . . . . . . . . .1571.00 +11.00 2012.00 1272.00 EnQuest . . . . . . . . . . . . . . . . . . . 116.20 –0.10 125.90 87.35 Mercantile IT . . . . . . . . . . . . . . . .912.00 +4.50 1002.00 822.50 Sports Direct Intl . . . . . . . . . . . . .104.00 +0.50 134.00 81.80
Aveva . . . . . . . . . . . . . . . . . . . .1394.00 –6.00 1419.00 805.00 Essar Energy . . . . . . . . . . . . . . .402.70 +7.00 475.90 358.50 Michael Page Intl. . . . . . . . . . . . .389.70 +3.90 461.50 309.90 SSL Intl . . . . . . . . . . . . . . . . . . . 1163.00* +3.00 1190.00 536.00
Aviva . . . . . . . . . . . . . . . . . . . . .378.30 +3.00 474.00 290.20 Eurasian Nat Res . . . . . . . . . . . .852.00* +25.00 1276.00 776.00 Millen & Copthorne . . . . . . . . . . .490.00* +7.30 514.50 321.40 St James’s Place . . . . . . . . . . . . .251.60* –1.40 296.90 203.40
Babcock International . . . . . . . . .500.00 +7.20 660.50 482.10 Euromoney Inst Inv . . . . . . . . . . .586.00 –4.00 630.00 258.00 Misys . . . . . . . . . . . . . . . . . . . . .271.70 +1.80 281.70 173.90 Stagecoach. . . . . . . . . . . . . . . . .170.20 +0.20 204.90 126.20
BAE Systems . . . . . . . . . . . . . . .300.10 +1.00 389.90 294.20 Experian . . . . . . . . . . . . . . . . . . .616.50 +10.50 664.50 489.00 Mitchells & Butlers . . . . . . . . . . .286.50 +2.10 343.90 228.30 Standard Chartered . . . . . . . . . .1707.00* +46.00 1927.00 1351.00
Balfour Beatty . . . . . . . . . . . . . . .235.10 — 328.85 228.60 F&C Comm Prop . . . . . . . . . . . . . .88.00* –1.50 96.80 79.00 MITIE . . . . . . . . . . . . . . . . . . . . .190.60 +1.90 281.70 187.80 Standard Life . . . . . . . . . . . . . . .200.60* +1.60 237.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .302.00* +4.00 394.25 253.40 Ferrexpo . . . . . . . . . . . . . . . . . . .278.00* –0.20 396.20 138.00 Mondi . . . . . . . . . . . . . . . . . . . . .450.90* +3.90 491.30 278.00 SuperGrp . . . . . . . . . . . . . . . . . .995.00 +43.00 1100.00 499.00
Barratt Development . . . . . . . . . . .93.90 +2.45 193.31 89.10 FirstGroup . . . . . . . . . . . . . . . . .342.80 –0.70 448.80 331.20 Monks Inv Tst . . . . . . . . . . . . . . .293.90 +1.80 321.20 242.10 TalkTalk . . . . . . . . . . . . . . . . . . .125.00 +1.40 147.10 106.60
BBA Aviation . . . . . . . . . . . . . . .179.60* –0.90 220.00 136.60 Foreign & Col Inv Tst. . . . . . . . . .264.90* +1.10 297.20 232.70 Morrison Wm . . . . . . . . . . . . . . .287.80 –1.90 306.30 255.00 Talvivaara Mining . . . . . . . . . . . .390.90 –0.90 501.50 341.40
Bellway. . . . . . . . . . . . . . . . . . . .527.50 +14.50 927.50 510.00 Forth Ports . . . . . . . . . . . . . . . .1289.00 +1.00 1425.00 1020.00 Murray Intl Tst . . . . . . . . . . . . . . .824.50 –12.50 893.50 667.50 Tate & Lyle . . . . . . . . . . . . . . . . .414.10 +1.70 509.00 388.00
Berkeley . . . . . . . . . . . . . . . . . . .805.50 +0.50 984.00 735.00 Fresnillo . . . . . . . . . . . . . . . . . .1045.00* +47.50 1139.00 583.00 National Express. . . . . . . . . . . . .222.30 +1.10 258.60 155.86
BG . . . . . . . . . . . . . . . . . . . . . .1052.00* –7.00 1248.00 966.90 G4S . . . . . . . . . . . . . . . . . . . . . .254.10 +7.00 285.70 210.00 National Grid . . . . . . . . . . . . . . .537.00 +3.50 607.65 474.80 Taylor Wimpey . . . . . . . . . . . . . . .25.86 +0.91 54.90 24.29
BHP Billiton . . . . . . . . . . . . . . .1802.50 +35.50 2346.00 1527.50 Genesis Emerging Mkts Fd . . . . .462.50 +0.50 484.00 370.00 Next . . . . . . . . . . . . . . . . . . . . .1978.00 +46.00 2360.00 1601.00 Telecity . . . . . . . . . . . . . . . . . . . .464.40 –0.60 485.00 311.30
BlackRock Mining . . . . . . . . . . . .564.00 +7.00 654.50 420.00 GKN . . . . . . . . . . . . . . . . . . . . . .141.00* +2.50 155.00 100.20 Northumbrian Water . . . . . . . . . .326.40* –1.50 341.30 225.20 Templeton Emrg Mkts . . . . . . . . .539.50 +0.50 598.00 398.00
Bluecrest Allblue GBP . . . . . . . . .167.10 –0.30 169.00 137.60 GlaxoSmithKline . . . . . . . . . . . .1210.00* +4.50 1347.00 1088.00 Old Mutual . . . . . . . . . . . . . . . . .124.80 +1.90 130.20 86.85 Tesco . . . . . . . . . . . . . . . . . . . . .401.90 –0.80 454.90 366.30
Booker . . . . . . . . . . . . . . . . . . . . .43.25 –0.25 49.50 34.75 Great Portland Estates . . . . . . . .310.70 — 332.10 236.60 Pace . . . . . . . . . . . . . . . . . . . . . .209.00 +1.10 243.80 145.00 Thomas Cook . . . . . . . . . . . . . . .181.30 +0.10 277.20 172.30
BP . . . . . . . . . . . . . . . . . . . . . . .385.60 +10.45 658.20 296.00 Greene King . . . . . . . . . . . . . . . .404.70* +0.90 504.00 372.50 Partygaming . . . . . . . . . . . . . . . .261.70 +6.00 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .322.00 –0.70 325.70 155.00
Brit Insurance . . . . . . . . . . . . . . .956.50 +4.50 1017.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .479.00 –6.70 562.50 324.00 Pearson . . . . . . . . . . . . . . . . . . .948.50* +11.50 1069.00 715.50 Travis Perkins . . . . . . . . . . . . . . .751.00 +4.00 915.00 647.50
British Airways . . . . . . . . . . . . . .210.60 +1.90 255.80 172.40 Halma . . . . . . . . . . . . . . . . . . . . .270.10* +0.10 298.70 192.10 Pennon . . . . . . . . . . . . . . . . . . . .570.00* +5.00 613.00 440.40 TUI Travel . . . . . . . . . . . . . . . . . .199.10 +0.50 313.90 189.20
British Amer. Tob . . . . . . . . . . .2214.00* +33.00 2335.50 1832.00 Hammerson . . . . . . . . . . . . . . . .354.20* +2.00 460.30 332.20 Persimmon . . . . . . . . . . . . . . . . .364.90 +17.60 534.50 335.90 Tullett Prebon . . . . . . . . . . . . . . .371.00 — 436.20 261.20
British Empire Tst . . . . . . . . . . . .423.00 +0.50 467.90 338.50 Hargreaves Lansdown . . . . . . . .392.00 — 408.40 235.60 Petrofac . . . . . . . . . . . . . . . . . .1370.00 +15.00 1428.00 849.00 Tullow Oil . . . . . . . . . . . . . . . . .1259.00 +21.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .447.50 –1.90 531.00 416.00 Hays . . . . . . . . . . . . . . . . . . . . . . .89.90 +0.75 119.00 82.50 Petropavlovsk . . . . . . . . . . . . . .1019.00 +43.00 1370.00 685.00 UK Commercial Prop. . . . . . . . . . .77.10* –0.40 84.90 68.75
Britvic. . . . . . . . . . . . . . . . . . . . .474.70 –0.80 518.00 324.80 Henderson . . . . . . . . . . . . . . . . .121.70 +0.70 157.80 112.10 Premier Farnell . . . . . . . . . . . . . .217.50 +2.50 252.60 140.60 Ultra Electronics . . . . . . . . . . . .1624.00* +8.00 1718.00 1198.00
Brown(N.) . . . . . . . . . . . . . . . . . .224.50 +3.50 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .304.60* –0.40 585.00 298.20 Premier Oil . . . . . . . . . . . . . . . .1482.00 +2.00 1610.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . .706.00 +1.50 732.00 521.00 Hikma Pharma . . . . . . . . . . . . . .777.00 +42.50 785.00 440.00 Provident Financial . . . . . . . . . . .828.50 +4.00 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1720.00* +32.00 2024.00 1610.00
BT . . . . . . . . . . . . . . . . . . . . . . .130.60* –2.00 151.00 108.40 Hiscox . . . . . . . . . . . . . . . . . . . .368.90 +8.10 371.10 299.60 Prudential . . . . . . . . . . . . . . . . . .553.00* +6.00 665.00 475.70 United Utilities . . . . . . . . . . . . . .563.00 –2.50 620.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .685.00 +3.00 784.50 570.00 Hochschild Mining . . . . . . . . . . .327.90 +1.90 370.60 220.00 PZ Cussons . . . . . . . . . . . . . . . .339.10* –0.70 373.20 210.50 Utd Business Media . . . . . . . . . .547.00* — 579.50 408.30
Burberry . . . . . . . . . . . . . . . . . . .839.00 +18.50 891.50 457.70 Home Retail . . . . . . . . . . . . . . . .215.50 +3.40 336.50 208.50 Qinetiq . . . . . . . . . . . . . . . . . . . .106.90 +2.00 179.10 103.50 Vedanta Resources . . . . . . . . . .1860.00 +21.00 2967.00 1616.00
Cable & Wire Comms . . . . . . . . . .56.80 –1.10 150.00 53.00 Homeserve . . . . . . . . . . . . . . . . .445.00 +8.90 488.20 435.40 Randgold Resources. . . . . . . . .5815.00 +75.00 6600.00 3456.00 Victrex . . . . . . . . . . . . . . . . . . .1090.00 +10.00 1320.00 687.00
Cable & Wire Wwide . . . . . . . . . . .62.60 –0.15 94.80 60.05 HSBC Hldgs . . . . . . . . . . . . . . . .632.90* +1.40 766.80 595.20 Reckitt Benckiser . . . . . . . . . . .3172.00* +42.00 3667.00 2765.00 Vodafone . . . . . . . . . . . . . . . . . .149.45 +0.05 155.50 126.50
Cairn Energy. . . . . . . . . . . . . . . .462.50 +13.10 497.60 306.80 Hunting . . . . . . . . . . . . . . . . . . .566.00 +12.00 659.50 429.10 Reed Elsevier . . . . . . . . . . . . . . .515.00* +0.50 566.00 435.40 Weir . . . . . . . . . . . . . . . . . . . . . 1149.00 +19.00 1275.00 599.00
Caledonia Invs . . . . . . . . . . . . .1543.00 –2.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . .401.50 +5.30 478.30 291.70 Regus . . . . . . . . . . . . . . . . . . . . . .66.25 +0.20 125.50 64.05 WH Smith . . . . . . . . . . . . . . . . . .405.90 –0.60 551.00 392.20
Capita . . . . . . . . . . . . . . . . . . . . .701.50 +1.00 829.50 661.00 IG . . . . . . . . . . . . . . . . . . . . . . . .513.00 +4.50 517.00 291.00 Renishaw . . . . . . . . . . . . . . . . . .860.00 +10.00 915.50 475.00 Whitbread . . . . . . . . . . . . . . . . .1382.00 +14.00 1645.00 992.50
Capital & Counties . . . . . . . . . . . 115.50 –1.30 125.40 99.60 Imagination Tech Gp . . . . . . . . . .340.00 +2.00 362.00 149.75 Rentokil Initial . . . . . . . . . . . . . . . .93.05 +1.20 140.20 91.35 William Hill . . . . . . . . . . . . . . . . .166.70 –0.20 217.80 160.50
Capital Shopping Centres . . . . . .326.10 +0.70 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .657.50 –7.00 786.00 395.10 Resolution . . . . . . . . . . . . . . . . .248.00 +1.40 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .426.10* –3.10 487.00 380.00
Carillion . . . . . . . . . . . . . . . . . . .296.00 –2.20 361.90 263.90 Imperial Tobacco. . . . . . . . . . . .1814.00 –5.00 2159.00 1706.00 Rexam . . . . . . . . . . . . . . . . . . . .302.00 +9.00 348.80 252.80
Carnival . . . . . . . . . . . . . . . . . .2069.00* +32.00 2937.00 1804.00 Inchcape. . . . . . . . . . . . . . . . . . .254.30 +1.10 347.00 235.00 Rightmove . . . . . . . . . . . . . . . . .622.00 +25.50 729.00 456.90 Wolseley . . . . . . . . . . . . . . . . . .1240.00 +17.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .333.30* –0.70 394.60 303.20 Informa . . . . . . . . . . . . . . . . . . . .372.20* +0.20 439.40 263.30 Rio Tinto . . . . . . . . . . . . . . . . . .3177.00* +72.00 4104.00 2262.50 Wood Group (John). . . . . . . . . . .349.80 +4.20 411.70 277.00
Centamin Egypt . . . . . . . . . . . . .171.70 +1.90 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .671.00 +10.00 831.00 503.00 RIT Capital Partners . . . . . . . . . 1111.00 –13.00 1215.00 927.00 WPP . . . . . . . . . . . . . . . . . . . . . .638.50 +5.50 744.00 489.00
Centrica . . . . . . . . . . . . . . . . . . .323.30 –1.60 333.10 233.80 Intercontl Hotels . . . . . . . . . . . .1012.00* +12.50 1244.00 721.00 Rolls Royce . . . . . . . . . . . . . . . .559.00 +6.00 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . . .999.70 +23.60 1344.50 765.50
Charter Intl . . . . . . . . . . . . . . . . .583.50* +16.50 855.50 560.50 Intermediate Capital . . . . . . . . . .275.80 +0.40 332.00 233.50 Rotork . . . . . . . . . . . . . . . . . . .1527.00 +20.00 1569.00 939.50 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2627.00 +10.00 3711.00 2033.00 Intertek . . . . . . . . . . . . . . . . . . .1690.00 +15.00 1770.00 1136.00 Royal Bank Of Scot . . . . . . . . . . . .43.85 +0.86 58.95 28.25
Chloride Group . . . . . . . . . . . . . .373.60 –0.40 390.50 138.60 Intl Personal Fin . . . . . . . . . . . . .231.00 +2.40 283.00 134.75 Royal Dutch Shell A . . . . . . . . . 1711.50* +8.50 2068.50 1621.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .670.00 — 806.50 657.00 Intl Power . . . . . . . . . . . . . . . . . .364.60 –1.90 384.10 248.20 Royal Dutch Shell B . . . . . . . . .1652.00* +10.00 1997.50 1550.00
Cobham . . . . . . . . . . . . . . . . . . .208.00 +0.20 278.60 199.90 Invensys . . . . . . . . . . . . . . . . . . .230.60 –4.10 350.30 229.00 RSA Insurance . . . . . . . . . . . . . .122.80* +0.50 142.00 114.10 www.interactivedata.com

FTSE begins to recoup losses Economic worries


as miners and banks advance stall Wall St gains
Gold and silver prices steadied, but G4S rose 2.8 per cent after the secu- 9,985.81. The Standard & Poor’s 500
THELONDON remained near recent highs after the
US data, with precious metal miner
rity services group reported a rise in
first-half profit thanks to strong per- THENEW YORK Index shed 8.11 points, or 0.77 per
cent, to 1,047.22. The Nasdaq

REPORT Fresnillo a big riser, up 4.8 per cent.


Sector peers rallied after taking a
mauling on Wednesday, along with
formance at its Asia and Middle East
businesses, and said it expected more
growth in the second half.
REPORT Composite Index lost 22.85 points, or
1.07 per cent, to 2,118.69.
It was the first time the Dow has
metals prices, from gloomy reports Segro topped the FTSE 100 fallers’ closed below the psychologically

B U
RITAIN’S top share index rose on US housing and durable goods list, down 3.8 per cent, after the S stocks sagged yesterday and important 10,000 level since 6 July.
yesterday, boosted by a rebound orders. industrial property landlord reported the Dow closed below 10,000 a In his speech today Bernanke is
in commodity stocks and Xstrata was up 2.4 per cent after first-half results and only a small rise day ahead of an expected down- likely to discuss the uncertain
helped by better-than-expected major shareholder Glencore in asset value per share. Evolution ward revision in US second- prospects for the economy but isn’t
economic data from the US. International, the Swiss mining and Securities cut its rating to “neutral” quarter economic growth and a expected to give many clues about
The FTSE 100 closed up 46.44 commodities trading giant, posted from “add”, saying there was “no cat- major speech by Federal Reserve whether the US central bank will
points, or 0.9 per cent, at 5,155.84, as robust first-half results on strong alyst for equity outperformance”. chairman Ben Bernanke. pump more cash into the economy to
London’s blue chips rallied from a metals prices. Investors were awaiting economic Major technology shares were keep the recovery going.
seven-week closing low on BHP Billiton climbed 2.0 per cent as data out today, including second- among the biggest losers, with the After a recent spate of poor eco-
Wednesday. its chief executive flies to North quarter GDP estimates in the UK and Nasdaq falling more than the Dow nomic numbers, there were jitters
Weekly jobless claims in the United America this week to crank up the a speech from US Federal Reserve and S&P 500. Tech shares have been the GDP data could show the econo-
States declined more than expected charm offensive with Potash Corp Chairman Ben Bernanke for clues on seen as a proxy for economic growth. my is weaker than originally thought.
to a seasonally adjusted 473,000 in shareholders after dousing expecta- whether the Fed will support the Cisco Systems fell 2.4 per cent to The government’s preliminary read-
the latest week, well below market tions he would sweeten a $39bn bid economy with fresh injections of cash $20.70, while Intel gave up 1.6 per ing is expected to come in at 1.4 per
expectations for a drop to 490,000. for the fertiliser giant. in the coming months. cent at $18.18. cent, down from 2.4 per cent estimat-
“The weekly unemployment claims Energy stocks also recovered after A drop in shares of coal companies ed a month ago.
are just giving an excuse for this mar- falls in the previous session, rising ANALYSIS l FTSE 5,155.84 also weighed on the energy sector. In deal news, Dell raised its bid for
ket to have a bit of a technical with crude prices. 26 Aug Stocks initially rose on data show- data storage company 3PAR to $1.6bn,
5,500
bounce. I don’t really think there is Oil services and engineering group ing first-time claims for jobless bene- offering slightly more than bigger
5,400
much more in it than that,” said Amec added 5.1 per cent after it post- fits fell more than expected last week, rival Hewlett-Packard.
5,300
David Morrison, market strategist at ed a 20 per cent jump in profits. but the number was still too high to HP came back with a revised pro-
GFT Global. Banks also bounced, with 5,200 signal a shift in the weak labour mar- posal after the closing bell, sending
Kazakh copper miner Kazakhmys Germany’s economy continuing to 5,100 ket. The four-week average of new 3PAR’s shares up 7.2 percent to $27.90
was the top FTSE 100 riser, up 5.2 per set the pace in the euro zone. Bank 5,000 claims, regarded as a better gauge of in extended-hours trading. Shares of
cent after it reported a 130 per cent lending in the bloc is also showing 4,900 trends, rose to the highest since late 3PAR closed at $26.76. HP closed
rise in underlying first-half earnings signs of revival, data showed, but 4,800 November. down 0.1 per cent at $38.22, while
per share and said it was on track to Spain and Italy face a harder road to 4,700 The Dow Jones industrial average Dell ended down 0.3 per cent to
meet its full-year output goals. recovery. 7 Jun 25 Jun 15 Jul 4 Aug 24 Aug fell 74.25 points, or 0.74 per cent, to $11.75.
20 Investment | Personal Finance CITYA.M. 27 AUGUST 2010

A more subtle
way to show
Investing in art is
a more subtle way
of showing off
your wealth
your wealth
Picture: GETTY
Post-crisis, investors are ditching the boys’
toys for high-brow art, writes Jessica Mead

T
HERE was a time, not so very long Michael Plummer, co-founder of Artvest
ago, that bling was in. Fast cars, Partners, an independent art-finance
sleek super yachts, and private consulting firm that advises a range of
planes were fundamental to living clients across the world on how to invest
the jet-set lifestyle which was the City in art and helps them to negotiate the
dream for much of the Noughties. art market. He adds: “People are more
But then the markets collapsed and prudent about their passion investments
sunning yourself on your yacht in the post-crash. We help clients determine if
Caribbean became little more than a they are spending their money in the
pipe dream. Many wealthy individuals right place and advise about whether
suffered badly from the collapse in equi- that sector of the art market is a good
ties in the autumn of 2008 while those place to invest their money.”
lucky few who had kept their wealth no There is also growing interest among
longer flaunted what they had. the Asian wealthy in fine French wines
However, the 2010 Merrill and Scottish whiskies says CapGemini’s
Lynch/CapGemini World Wealth Report van der Linde. These have been proving
showed that the population of high net popular thanks to their tangibility and
worth individuals (HNWIs) grew 17.1 per their lower entry prices. For example,
cent in 2009, nearly recovering the fine wine merchant Bordeaux Index says
declines of 2008. And demand for so- that while demand is driven principally
called passion investments started to by consumption, there is also a parallel
return in 2009, although outright global increase in collecting and investing. This
Put your offshore banking in demand remained weaker than before
the crisis. But while the wealth might be
is expanding the market and making
fine wine a more tradable and robust
the hands of the expat experts back, the bling has gone. More and more
high net worth individuals are choosing
asset class, it says.
With wealthy individuals increasingly
to invest in art and jewellery – a more choosing to invest in non-bankable
13°N – Rizal, Philippines subtle form of showing your wealth than assets, it is important to have a global
the traditional boys’ toys. overview of their total wealth. Many
Ileana van der Linde, principal in wealth managers will take a holistic view
CapGemini’s wealth management prac- to your assets and can point you to spe-
9JGP[QWoTGNKXKPICPFYQTMKPICDTQCF[QWPGGFCDCPMVJCVWPFGTUVCPFU[QWTWPKSWG tice, says: “After the crisis, what is inter- cialists and insurance providers.
circumstances and has the expertise to help you manage, grow and protect your savings esting is how more high net worth However, Swiss private bank Lombard
and wealth. You can trust HSBC Bank International in Jersey to offer you just that. individuals are still cautious about the Odier has developed a global custody
financial markets and we are starting to product that fully integrates all your
r /WNVKEWTTGPE[QHHUJQTGUCXKPIUCPFKPXGUVOGPVUVQJGNR[QWCEJKGXG[QWT see a trend of investor-collectors emerge. assets from equities to collectibles in one
They were typically not interested in online platform. Gery Odermatt, head of
ƂPCPEKCNCURKTCVKQPU such passion investments but are now the bank’s global custody business devel-
r 2QVGPVKCNVCZUCXKPIUFGRGPFKPIQP[QWTEKTEWOUVCPEGU looking for a safe haven for their money.” opment, says: “Customers would like to
She says that these investor-collectors have all the elements included in one
r 4GNCVKQPUJKRCPFYGCNVJOCPCIGTUYJQCTGURGEKCNKUVUKPVJGKTƂGNFOCP[ are still cautious and consequently they report that gives them an overview on
of whom are expats are gravitating towards art, fine wine, everything.”
antiques and other memorabilia. Passion items are not bought purely as
r #TCPIGQHUGTXKEGUVJCVOCMGOQXKPICPFNKXKPICDTQCFCUGCU[CURQUUKDNG “Many investors are looking for a pleas- an investment, but the value and tangi-
e.g. account set up even before you arrive in your new country* and personal ure that is not going to lose its value, bility of art and other memorabilia is cer-
unlike automobiles and yachts,” says tainly increasingly appealing.
travel security assistance
#PFYKVJ'ZRCV'ZRNQTGTVJGYQTNFoUNCTIGUVGZRCVUWTXG[PQYKPKVUTFEQPUGEWVKXG PERSONAL FINANCE NEWS
year, we have a unique insight into expat life across the globe. BY KATHLEEN BROOKS
6QDGPGƂVHTQOQWTGZRCVGZRGTVKUGQRGPCPQHHUJQTGCEEQWPVVQFC[
RECESSION FLAT SHARE ANYONE? invest in a Sipp do so because they want to
Call +44 (0) 1534 616079 According to a new survey by easyroom- make their own investment decisions
mate.co.uk there has been a surge in the about how their pension savings are man-
Visit www.offshore.hsbc.com/am number of people looking for flat shares in aged. Almost a quarter cited this as the
the wake of the recession. It found that main reason for choosing a Sipp. One in
flat sharing was up 59,000 since the start five used it as a way to supplement other
of the crunch and now the total number of pension savings. However, further research
people who flat share in the UK tops nearly found that out of the 783 people it sur-
2.5m. The website found that the cost of veyed, 12 per cent didn’t have a pension
living in a shared flat is significantly lower and 13 per cent saw other long-term
than renting somewhere else alone. It esti- investments such as a property as a saving
mates that renters can save more than for the future.
£5,000 a year by shunning the extra
privacy living on their own could CONSUMERS PAYING OFF MORE DEBT
*Available to HSBC Premier customers. HSBC Premier is available in 45 countries worldwide. Financial eligibility criteria applies. bring. The more people you Saving levels have plunged as consumers
HSBC Bank International is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation,
Investment and Fund Services Businesses and licensed by the Guernsey Financial Services Commission for Banking, Collective share with the larger the sav- rush to pay off their debt, research
Investment Schemes and Investment Business. Licensed by the Isle of Man Financial Supervision Commission. Deposits and ing. If you share with four peo- from unbiased.co.uk, the independent
KPXGUVOGPVUOCFGYKVJQWTQHƂEGUKPVJG%JCPPGN+UNCPFUCPFVJG+UNGQH/CPCTGPQVRTQVGEVGFD[VJGTWNGUOCFGWPFGTVJG7-oU
(KPCPEKCN5GTXKEGUCPF/CTMGVU#EVHQTVJGRTQVGEVKQPQHTGVCKNENKGPVUKPENWFKPIVJG7-(KPCPEKCN5GTXKEGU%QORGPUCVKQP5EJGOG ple you can save £5,225 on financial adviser, has found.
CPFVJG7-oU(KPCPEKCN1ODWFUOCP5GTXKEG*QYGXGT*5$%$CPM+PVGTPCVKQPCN.KOKVGFKUCOGODGTQHVJG&GRQUKVQTU%QORGPUCVKQP rent, council tax and utility Savings levels fell by £7bn in the
Scheme as set out in the Banking (Depositors Compensation) (Jersey) Regulations 2009. HSBC Bank International Limited is a bills. This drops to £3,725 when second quarter of the year rela-
RCTVKEKRCPV KP VJG )WGTPUG[ $CPMKPI &GRQUKV %QORGPUCVKQP 5EJGOG6JG 5EJGOG QHHGTU RTQVGEVKQP HQT nSWCNKH[KPI FGRQUKVUo WR VQ
UWDLGEVVQEGTVCKPNKOKVCVKQPU6JGOCZKOWOVQVCNCOQWPVQHEQORGPUCVKQPKUECRRGFCVKPCP[ƂXG[GCTRGTKQF you share with just one other tive to the first three months.
&GRQUKVUOCFGYKVJQWTQHƂEGUKPVJG+UNGQH/CPCTGRTQVGEVGFD[VJG+UNGQH/CP%QORGPUCVKQPQH&GRQUKVQTU4GIWNCVKQPU(QT person. It notes that this is the sec-
further information on these Schemes, please visit the Important Information section on our website www.offshore.hsbc.com/1/2/
KORQTVCPVKPHQTOCVKQP%QRKGUQHNCVGUVCWFKVGFCEEQWPVUCTGCXCKNCDNGQPTGSWGUV#RRTQXGFHQTKUUWGKPVJG7-D[*5$%$CPMRNE6Q ond time since the onset of
help us to continually improve our service, and in the interest of security, we may monitor and/or record your communications with us. SIPP HOLDERS ARE DOING IT FOR the credit crunch that peo-
© HSBC Bank International Limited 2010. All Rights Reserved. MC8316/SJ/2206397/AC19238
THEMSELVES ple have rushed to pay off
Research from Barclays Stockbrokers debt and could be related to
has found that people who choose to fears of a double-dip recession.
City Focus GOODMAN HITS 21
THE CITY
| Entrepreneurs REVIEW PAGE,
TUESDAY’S PAPER

CONTROLLING COSTS

Baking up a name for herself Q.


I am thinking about
selling my business in
the near future. How do I
go about finding a buyer?
Q&A
Kathleen Brooks meets the
A.
The most common route is to get in
touch with corporate finance advisers,
woman who has turned the says Jenny Robertson, senior associate
at Stevens & Bolton, a law firm. “The first thing
you need to do is to get a corporate finance
wedding cake into a piece of art expert. They are usually from a boutique
finance company or an accountancy firm. Their
job is to line up potential suitors for your busi-

S
HE’S been called the “Bentley” of Mich Turner, founder ness.” Robertson says that they usually have in-
cakes by Gordon Ramsay and was in of the Little Venice depth knowledge of a sector and will know
the kitchen of her flat when she Cake Company who might be interested in buying your busi-
received the orders to make wedding ness. It is almost impossible to go through this
cakes for Madonna and Pierce Brosnan. process on your own, so your best bet is to find
Mich Turner has spent the last decade a corporate finance firm that you trust will
building the Little Venice Cake Company work in your business’ best interests.
(LVCC) that is now a by-word for luxury.

Q.
She partly credits her success with her Can I do this and keep costs down?
time as a pastry buyer for Knightsbridge
department store Harvey Nichols where
she worked from 1996: “This is where I

A.
learned how far a brand can take you. Once Advisers’ and lawyers’ fees tend to be
you describe yourself as premium, the bar the biggest costs. While the adviser is
is raised.” It was the day of the 1999 total usually dealing with the commercial
eclipse that Turner decided to go out on to a lavish creation that takes centre stage. work. She gets up at 4.50am, has breakfast side and ensuring you get the best price possi-
her own: “As the lights went off, the light But her business acumen has also helped with her children, and drives them to ble for your business, the lawyers deal with
went on for me,” she says from her LVCC to flourish. She has always been cau- school before heading into her Marylebone the legal side of the transaction. Usually you
Buckinghamshire home where she lives tious about funding the business; it has no office for 9am. Building a successful brand will be charged a percentage of the sale price,
with her husband and two young sons. debt and is owned 100 per cent by Turner. has had its sacrifices. But she understands which is negotiated at the start with the cor-
It takes a long time to become an “When I came out of university I had an what it takes: “We don’t spend our week- porate expert. Lawyers will usually charge by
overnight success and after 10 years LVCC overdraft of £1,500, after I cleared that I ends socialising with friends and we’ve the hour for their time. Robertson says that
is on the cusp of becoming a household said I would never get into debt ever probably missed out on some of the holi- there are ways to keep the costs down. The
name. Turner recently signed licence deals again.” LVCC averages about 15 bespoke days that other people would take, but I easiest way to do this is to ensure that the
with both Tesco and Sainsbury’s and has orders a week. But it’s not a cheap business have no regrets. We have this business that process will run smoothly and as quickly as
designed a range of baking equipment that to run: “We need to make £40,000 a month we have built, it wasn’t a family business, possible, since time really does cost a lot of
will be on sale from February next year. just to stand still,” Turner says. we did it by ourselves.” money. This means getting your house in order
“It’s not enough to make cakes every day. LVCC won the coveted Walpole Brand of before you even think about selling your busi-
You have to have the passion to drive the Tomorrow in 2009. This offers luxury com- CV | MICH TURNER ness. The key thing that tend to hold up a
business forward,” she says. panies with turnover of less than £2m per process is due diligence. “The most important
Her proudest moment was when she was year advice on how to grow the business. Age: 40 Reading: The Girl With The thing to the buyer is to make sure that the
informed she was awarded an MBE, which One change LVCC’s Walpole mentors sug- Lives: Buckinghamshire Dragoon Tattoo, by Stieg Larsson business has customers, so it is vital that com-
she will collect from the Queen (for whom gested was to scrap its online service. mercial contracts are in place and up-to-date.
she has also made cakes) on 25 November. “People just don’t like to buy luxury food Studied: University of Surrey, Favourite cake: “The Queen If you have let commercial contracts expire
Turner’s artistic flair has changed the online,” says Turner. BSc in food science and nutrition Elizabeth date cake. I made it for then you need to replace them as soon as pos-
wedding cake from a rather-sad looking Turner could talk about her business all Car you drive: Land Rover the Queen’s birthday.” sible. Also, employee contracts need to be up-
thing pushed into a corner at a reception, day and its success is all down to her hard to-date and employee terms and conditions
should be in place.” Robertson says that if there
is a problem with contracts then it can delay

Start-ups affected
the whole process: “If a due diligence issue
crops up a week before completion then that
can set the whole process back by at least a
few weeks and that is when the costs start to
add up.” So being as prepared as you possibly

by internet debate
can be before the process starts is the first
way to limit costs. The second is to pick your
law firm carefully. Robertson says that a small
business with turnover of between £5m-£10m
doesn’t need to hire a Magic Circle law firm. A
smaller firm or one that is based outside of the
City can be just as good and they are a fraction
Net neutrality is essential for small business of the cost. Some of the City’s top firms can
charge upwards of £600 an hour for a partner
to flourish in the UK, writes Kathleen Brooks and £300 an hour for a newly qualified lawyer
so there are savings there. However, Robertson
recommends that you check out what size law
firm your prospective buyer is using before you

I
F YOU haven’t heard of the net neu- (FSB) and the Forum of Private Business make your own choice: “The corporate finance
trality debate then you soon will. The support net neutrality. “If we moved to a adviser should be able to give you a steer on
debate centres on whether internet system whereby connection speeds are whether the firm will run a deal on a hardline
service providers (ISPs) have the right auctioned off to the highest bidders, small basis or if they tend to be more relaxed. If the
to charge different prices for various serv- firms would undoubtedly lose out as they buyer is using one of the Magic Circle then you
ices on the internet. For example, down- simply don’t have the cash reserves to don’t want to use a small high street law firm
loading a video might cost more than just compete with big businesses,” says Chris as it could put you at a disadvantage.”
opening a web page. Gorman from the Forum of Private

Q.
The debate stepped up a gear in the US Business. How should I manage the whole
last week when Google and Verizon told The plans to charge for internet access process?
the US Federal Communications does have some benefits, says Jag Singh,
Commission (FCC) that they support pro- co-founder of MessageSpace, an online

A.
posals to charge for certain internet serv- advertising business. And Singh is not Keeping on top of the process and
ices. This has outraged supporters of net alone. Some people argue that millions of knowing what
neutrality, who believe that all content people downloading video all day slows should be
delivery on the web should be charged at the whole system down, so people who do happening and
the same rate. They argue it will create a this should pay for the extra bandwidth when is key, says
two-tier internet service with a fast-lane they use. Google and Verizon play. This means that in the long run I Robertson. Selling
for those who can afford it. However, Singh is concerned that it will have said they won’t be able to create jobs. No one wins your business is a
The FCC now has to make a decision. increase costs for businesses and entrepre- support charging under that scenario, in my opinion.” great achievement, just
Although it will only affect internet servic- neurs: “One of the trends in the start-up more for certain But Singh does not think the UK will fol- don’t let the fees eat up all
es in the US, the UK authorities will be movement is the reliance on cloud-com- internet services in low the example of the US if the FCC of your profits.
watching with interest. The government puting. If “toll roads” are placed all over the US decides to abandon net neutrality: “Ofcom
has pledged to support net neutrality, but the internet, all these services powering Picture: REUTERS is a lot stronger from a regulatory perspec- Kathleen Brooks
it will be interesting to see if this position my product will cost more, and there will tive than the FCC. I just don’t think it
can be maintained if US rules change. come a point where it’s just going to be would let this sort of thing become
Both the Federation of Small Businesses too expensive for me to have to pay-to- enforceable,” adds Singh.
Living
22 CITYA.M. 27 AUGUST 2010

| Second Homes

STRATHKYLE
RIVERSIDE LODGE, ARDGAY
COTTAGE, Price: £1.1m
BEAULY This three-bed hunting
Price: £450,000 lodge from 1871 comes
This secluded three- with a 183-acre plot of
bedroom property is woodland, pasture and
set amid three acress a private trout-fishing
of grassy meadow loch. It has a gatehouse
and comes with two with wood-panelled
other cottages that dining room and is set
can be rented out to between a tranquil
holidaymakers. The pond and thick alpine
main cottage fea- forest. It’s nine miles
tures an open fire in from the village of
its living room and Ardgay, and 54 miles to
offers stunning views Inverness airport.
over the River Beauly, Contact: 01463 719
home to excellent 171. www.struttand-
salmon fishing. It is parker.com
within eight miles of
the bustling village of
Beauly and 17 miles
to Inverness (one
hour flight to LOWER DERRAID,
London). SPEYSIDE
Contact: Price: £300,000
01463 723 500. Set amid wildflower
www.macan- meadows, this three-
drewandjenkins.co.uk bedroom cottage fea-
tures exposed stonework
above its cosy fireplace,
as well as a sunny mas-

Why your dream


ter bedroom with bal-
cony. Large windows
overlooking the beautiful
River Spey – one of the
best salmon-fishing
rivers in Scotland. It is

home may just be three miles from


Grantown-on-Spey and
30 miles from Inverness.
Contact: 01463 719 171.
www.struttandparker.com

up in Scotland’s WATERNISH
ESTATE, ISLE OF
SKYE

northern reaches Price: £1,550,000


The Waternish Estate
extends to 255 acres of pas-
ture, mature woodland
(including a bluebell wood),
a burn with old waterwheel
and a mile of Skye coastline.
Rural Scottish properties often come with a The main house, with five
bedrooms, has its original
terrific spread of acreage, writes Juliet Samuel courtyard and belltower
steeple still in tact and fea-
tures solid oak doors as well
as fully modern fittings

T
HE number of holiday homes in the property market is still sluggish in many
UK is on the rise, according to places: a lot of houses have come onto the throughout. Rooms have
research by Knight Frank. After market and stayed there, which gives buy- sweeping sea views. It is
declining in 2008, the number of ers both choice and a discount. However, in 132 miles to Inverness.
British second homes swelled 2.6 per cent a slow market it’s not just a matter of snap- Contact: 0131 247 3720.
last year and is set to rise another 2 per cent ping up a bargain; it’s important to make www.savills.com
this year. sure the home you buy will retain its
So with demand once again on the up, appeal – and therefore its value.
buyers should be on the lookout for homes The key here, says Chris Hall of
that will retain both their peaceful appeal Edinburgh estate agent Rettie, is to only go
and their value. North-western Scotland is for the exceptional: “When something that ALLT-A-BHRUAIS,
one of the few areas where it is not only is manifestly good pops up, people are still SPEAN BRIDGE
possible to buy a rustic home set amid pris- recognising quality.” By that, he means Price: £520,000
tine scenery, but to buy a sizeable chunk of homes with that rare combination of char- Designed by the eminent
the scenery as well. acter, tranquility and a reasonably conven- Edinburgh architect Ian
Strutt & Parker’s Suzanne Moss says that ient transport connection. This can be a Gordon Linsday in 1937,
it is not hard to find acreage attached to a difficult balancing act for buyers: even a this four-bedroom house
rural Scottish home: “A lot of properties beautiful old stone-built cottage will lose its sits in 3.2 acres of land
have land with them. To get something value if it is too close to a road or if a wind with spectacular views of
similar down south, you’re paying double farm is installed nearby. But if you do find a the highest Highland peaks.
the money.” Often it is not just a matter of home that fits that bill, it is likely to be a Many of the rooms retain
buying a big garden. Even many of the bargain given its investment value. Estate original features such as a
lowliest cottages come with three to 30 agent GKD Galbraith’s Sue Bourne says: bell-pull system on the wall.
acres of the surrounding land and some “The demand for traditional cottages in The grounds include a
hunting lodges come with hundreds or beautiful villages far outstrips the supply.” small burn, a wildflower
even thousands. In places like Sutherland, For buyers who have had enough of eke- meadow and vegetable
the Cairngorns, along the Spey River and ing out narrow spaces in cities or tourist garden. It is one mile to the
the Isle of Skye, that can mean acres of hotspots, Scotland is the perfect antidote. village of Spean Bridge and
heather-clad moorland, wildflower mead- And once you’ve bought the place, Rettie’s 56 miles to Inverness.
ows and woodland overlooking a misty val- Chris Hall says it’s simple: “The right quali-
ley or loch. ty of property will look after you if you look
Contact: 0131 220 4150.
Despite these attractions, the Scottish after it.” www.rettie.co.uk
PRIME AVENUE
B A LT I M O R E W H A R F , LO N D O N E 1 4
THE NUMBER ONE ADDRESS IN DOCKLANDS

Central location next to Canary Wharf, iconic architecture


and extensive luxury leisure facilities make Prime Avenue
the prime residential investment opportunity in London today.

PRIME LOCATION: Next to Canary Wharf financial district and four luxury retail malls
PRIME ARCHITECTURE: Designed by Skidmore Owings and Merrill, master planners of Canary Wharf
PRIME SPECIFICATION: Custom designed kitchens, luxury marble bathrooms, full height windows, luxury flooring
PRIME FACILITIES: Concierge services, valet parking, 24 hour security, retail and restaurant
PRIME LEISURE: Health spa and gymnasium with swimming pool, sauna, steam and hydrotherapy pool
PRIME TRANSPORT: Next to Crossharbour DLR station and short walk to Canary Wharf underground

www.baltimorewharf.com

P R I C E S F R O M O N LY £ 2 4 5 , 0 0 0

Baltimore Wharf Marketing Suite


76 Marsh Wall
London
E14 9SL
P RIME A VENUE
BALTIMORE WHARF
Tel: 0800 404 8855 A Ballymore Development
24 Living | The Knowledge CITYA.M. 27 AUGUST 2010

FOCUS ON: WEMBLEY, HA9 SELLING


Q&A
BY JESSICA MEAD

MIDHOLM
£470,000
It’s in need of some mod-
ernisation, but this three-
Russell Hunt
CENTRAL APARTMENTS MANAGING DIRECTOR,
From £230,000 bed detached property is PROPERTY HUNT
Ideal for first-time buyers, this an ideal family home.
new development comprises Located in a popular resi- Dear Russell, with property prices
113 apartments. All flats are
open-plan and have their own
balconies with views as far as
dential area, it has a back
garden, off-street parking
and a garage.
Q. projected to fall and interest rates
forecast to rise, should I buy?

the London Eye. Contact: St Contact: Winkworth on


A.
As with anything to do with property, it
Modwen’s on 0844 371 1301, 020 8904 8822 , is all about timing. The latest surveys –
www.wembley-central.co.uk www.winkworth.co.uk whether they are from the major
lenders, the high-street banks or the online prop-
erty portals –are all pointing to further falls; they
just differ in the magnitude of the forecast drop.
You have to look at your circumstances and
what you want to buy. Rates are still low, so
you need to agree a mortgage at a sensible
rate for as long as you can. Once you have
NEED TO KNOW | WEMBLEY agreed your finances, start looking and do
your research. There are so many microcosms
Commuting: Underground services are Greek restaurant that has been popular of the property market so decide on your area
and research the properties available.
HARROWDENE RD provided on the Metropolitan line and for more than two decades. The Swan Sometimes there have been properties sitting
£3.2m Jubilee line at Wembley Park, taking is a popular pub that offers live music on the market for a while – find out if they
An impressive property under half an hour to get to Waterloo. with good food and beer. have been reduced. Just because it hasn’t been
with eight bedrooms, a selling, it doesn’t mean it is a dud property –
spacious living area, a roof Schools: Lyon Park School is a good Leisure: Wembley Stadium regularly perhaps the agents have lost interest in it,
terrace, an extensive gar- primary. Alperton Community School sees major sporting events, with maybe it is overpriced or needs a lick of paint.
den and a pool. What has had consistently strong examina- Wembley Arena playing host to a vari-
more could you want? Dear Russell, what features should I
Contact: Foxtons on 020
8429 6600, www.fox-
tons.co.uk
tion results. Buxlow Preparatory
School is an independent school for
four to 11-year-olds.
ety of concerts and other entertain-
ments. Wembley Central Square is
being redeveloped with new leisure and
Q. look out for when purchasing a buy-
to-let?
retail facilities.
A.
The first piece of advice is that you
Crime: Figures are significantly higher should not look at it from a perspective
than the national average. Famous people: Rock out with Charlie of would I want to live there. You need
Watts of The Rolling Stones and Lady to take that out of the equation and think ration-
Restaurants and Pubs: Arena is a Sovereign. ally about who would want to live there. You
should try to buy a property where the bed-
rooms are as equal as possible. If there are
only two bedrooms, then tenants prefer not to
CURRENT MORTGAGE DEALS Source: MoneySupermarket.com share a bathroom – look for places with either
two bathrooms or an en suite. You should
always offer either furnished or unfurnished.
Lender Fixed/Flexible Rate Until Standard Rate APR Maximum Loan It might seem obvious, but you want to buy
(per cent) (per cent) (per cent) to Value (per cent) somewhere where the building is in good repair
and has a long lease. You should also find out if
the property has a good rental track record. If it
HSBC Flexible 2.19 Term 2.19 2.2 60 has never been let out before, try to find out
what similar properties in the area have rented
NatWest Flexible 2.19 To Nov 2012 4 4 60 for. Aim for quieter residential roads and if you
do look at a lower ground floor flat, make sure it
First Direct Flexible 2.29 Term 2.3 2.3 65 is light. If the flat is on a higher floor, there needs
ING Direct Flexible 2.29 2 years 3.5 3.5 60 to be a lift, but remember that a lift and a porter
entail higher management charges.
The Co-operative Bank Flexible 2.49 To Nov 2013 4.24 3.9 75 You should always be a bit conservative on
your rental projections. The service charge,
ING Direct Fixed 2.79 To Nov 2012 3.5 3.5 60 which you are liable for, is an important cost
and you need to look at the potential manage-
Post Office Fixed 2.85 To Sep 2012 3.49 3.6 65 ment charges and the letting fee, which can
Santander Fixed 2.85 To Oct 2012 4.24 4.2 60 both eat into your return.
Russell Hunt is managing director of
Leeds BS Fixed 3.65 To Jul 2013 5.69 5.5 75 Property Hunt, a search agent for London and
the Home Counties. www.property-hunt.co.uk
Market Harborough BS Fixed 3.69 To Aug 2013 5.49 5.1 80

PROPERTY NEWS
BY JESSICA MEAD

BACK TO THE BOOM YEARS FOR PUTNEY INCREASE IN SUPPLY TO DRIVE UP ACTIVITY RICS: POSITIVE OUTLOOK FOR UK RENTS LEEDS’ NEW FIVE-YEAR FIXED RATE MORTGAGE
The property boom years are back, at least in Putney. An The number of properties coming onto the market in cen- Buy-to-let investors will be cheering the RICS’s positive Uncertainty about the future for interest rates is prompt-
eight-bedroom house in Heathview Gardens has just sold tral London has risen 28 per cent in the past six months outlook for rents: 33 per cent more surveyors expect ing more prospective buyers to take out fixed-rate mort-
for £5.3m, one of the highest prices ever paid for a prop- while demand has stayed strong. Peter Rollings, manag- rents to increase in the next quarter than fall. This is sup- gages. Leeds Building Society has just launched a new
erty in SW15. Russell White, franchisee of Winkworth ing director of Marsh & Parsons, said: “The rise in supply ported by rising tenant demand in the three months to five-year fixed mortgage range available from 3.94 per
Putney who handled the sale, said: “The Putney sales of homes for sale is a healthy development for the July, according to the RICS Residential Lettings Survey cent for those with a 40 per cent deposit. Those with
market has enjoyed a strong pick-up in the first half of London property market. There is now a greater balance out today. The survey shows 26 per cent more agents smaller deposits can pay a slightly higher monthly rate.
2010. The sale of Heathview Gardens demonstrates that between supply and demand for properties and this will reporting a rise in demand for property rather than a fall. The mortgage is fully portable should customers wish to
confidence has come back to the market since the tur- encourage more activity in the housing market and see Encouragingly, the pace of decline in new landlord move and 10 per cent capital repayments are allowed
moil of the financial markets in 2007.” house prices rise at a more sustainable pace.” instructions is moderating. each year without penalty.
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Lifestyle | Fashion
26 CITYA.M. 27 AUGUST 2010

Looking good, kid: autumn style


Cute patterns and grown-up Oh, and a side pony tail. These days, kids from middle
class families are expected to be almost as fashionable as
looks are both par for the their parents. More so even, if the September launch of
a babies and kids version of super-luxury online retailer
course, says Zoe Strimpel Net a Porter, means anything. Your kids, from babies to
teens, can wear Burberry, Dior, Prada and Armani.
But whether you’re in the market for trendy togs or
just plain fun for your kids, there are lots of brilliant

W
HEN I was a child in the US, back-to-school ideas out there for jazzing up their autumnwear. From
fashion (we didn’t have uniforms) was a mat- funky rucksacks, journals and watches for school, to
ter of two new scrunchie hairbands and a new eye-catching clothes for the weekend, there’s something
pair of spandex rose-patterned cycle shorts. for every budget out there.

M/02B
TheMeganeExperiment.com
Can a car change a town?

Kit your kids out in autumn’s finest. Picture: GETTY

Menton [Côte d’Azur] Gisburn [Lancashire] 1 2


a. Kisses per hour .......... 30 c. Kisses per hour ........... 1
b. No. of Mégane ............ 21 d. No. of Mégane ............. 0

4
30 30 30 30
Data source: Knowledge & Trends Menton Survey, July 2010. Knowledge & Trends Gisburn Survey, July 2010.

5
0 0 0 0
6
7
8

a. b. c. d.
10
1 Eiffel Tower striped jumper with sequin, Tu at
Sainsburys, from £10, www2.sainsburys.co.uk 2 Black Essentials polo
9
shirt for boys, Christian Dior, £85, www.diorcouture.com/uk 3 Pink Resin Hello Kitty
watch, Victoria Couture, £139, www.harrods.com 4 Long-sleeved double layer dress,
Diesel, £56, www.houseoffraser.co.uk 5 Girls’ straw boater, John Lewis, £21,
www.johnlewis.com 6 Gabardine trench coat, Burberry, £350, uk.burberry.com
7 Floral backpack, Cath Kidston, £25, www.cathkidston.com 8 Harrods Luxe calf-
leather journals, from £29.95, www.harrods.com Grey polka dot cord trousers, John
Lewis, £12-£13, www.johnlewis.com 10 Harrods French sole pumps, from £115,
www.harrods.com
CITYA.M. 27 AUGUST 2010 Lifestyle | TV& Games 27

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK


TERRESTRIAL
6pm BBC News 6pm Eggheads 6pm London Tonight 6pm The Simpsons 6pm The Boss Is
6.30pm BBC London News 6.30pm Restoration Roadshow 6.30pm ITV News 6.30pm Hollyoaks Coming to Dinner
7pm The One Show 7pm Who Do You 7pm Emmerdale: Jimmy 7pm Channel 4 News 6.25pm Live from Studio Five
7.30pm A Question of Sport; Think You Are? tells Carl he wants to work 7.25pm 4thought.tv 7pm Five News at 7
BBC News: Regional News 8pm Mastermind in the pub full-time. 7.30pm The Incubator 7.15pm Cricket on Five
8pm EastEnders 8.30pm Gardeners’ World 7.30pm Coronation Street 8pm A Place in the Sun: 8pm Police Interceptors:
8.30pm QI 9pm Home Movie Roadshow: 8pm Dickinson’s Real Deal Home or Away World Cup fever hits
9pm My Family A colour film of the 8.30pm Coronation Street 9pm Ultimate Big Brother Essex; Five News at 9
9.30pm Outnumbered Festival of Britain. 9pm Doc Martin 10pm CHOICE Pete Versus Life 9pm The Mentalist
10pm BBC News 10pm Roger and Val 10pm ITV News at Ten 10.35pm Ultimate Big Brother 10pm Law & Order:
10.25pm Regional News Have Just Got In 10.30pm London News 11.25pm Stand Up for the Special Victims Unit WOULD I LIE TO YOU?
10.35pm CHOICE 10.30pm Newsnight 10.35pm UEFA Super BBC1, 10.35PM
Week Best Bits 11pm CSI: NY
Would I Lie to You? 11pm CHOICE The Review Cup Highlights 12.15am Music on 4: Katy 11.55pm Cops in Crisis Miranda Hart, Hugh Fearnley-
11.05pm The National Lottery
Draws 11.15pm FILM The Ring:
Show at the Edinburgh 11.35pm Cops with Cameras Perry: T4 Special 12.15am SuperCasino Whittingstall, Rufus Hound and Rhod
Festival Weather 12.30am The Zone; 12.45am Music on 4: CTRL Student 4.05am The Boss Is Coming to Gilbert join team captains David Mitchell
Weatherview 2002 1.05am Sign
Zone: Celebrity MasterChef 2.05am 11.50pm FILM Swimming with ITV News Headlines Tour 1am Ultimate Big Brother: Live Dinner 4.30am Motorsport Mundial and Lee Mack for the panel show.
Celebrity MasterChef – The Final Sharks: Black comedy, starring 2.30am FILM Outbreak: Thriller, 2.50am This Week’s 4Music Top 20 4.55am County Secrets 5.10am
3.05am Ben Fogle’s Escape in Time Kevin Spacey. 1994. starring Dustin Hoffman. 1995. 4.40am Beauty and the Geek The New Tomorrow 5.35am-6am
3.50am-6am BBC News 1.20am-6am Close 4.35am-5.30am ITV Nightscreen 5.25am-6.10am Countdown Michaela’s Wild Challenge

SKY SPORTS 1 12.30am Ladies European Tour 10pm CSI: Miami. A reality 11.20pm Big Brother’s Big 3.50am Treasure Quest
SATELLITE & CABLE

7pm Sky Sports News 7.30pm Golf 1.30am Golfing World show contestant is killed. 11pm Mouth 12.25am-6am 4.40am The American Civil
Live UEFA Super Cup Football 2.30am Triathlon 3.30am Criminal Minds 12am CSI: Ultimate Big Brother: Live War 5.30am-6am How Does
10pm Take It Like a Fan Currie Cup Rugby Union Crime Scene Investigation 1am That Work?
10.30pm Premier League 5.30am-6am World Sport Charmed 3am CSI: Crime HISTORY
Preview 11pm Football League Scene Investigation 3.50am 7pm Mountbatten: Death of a DISCOVERY HOME &
Weekend 12am UEFA Super BRITISH EUROSPORT The Jerry Springer Show Royal 8pm The Last Nazis 9pm HEALTH THE REVIEW SHOW AT THE
Cup Football 1.30am Take It 6.45pm US Open Tennis 4.40am Nothing to Declare King Arthur’s Round Table 7pm Portland Babies 8pm 10 EDINBURGH FESTIVAL BBC2, 11PM
Like a Fan 2am Premier League 8.45pm Strongest Man 5.30am-6am Home Shopping Revealed 10pm Combat School Years Younger 9pm 18 Kids
Preview 2.30am Football 9.45pm UEFA Europa League 11pm The Family Who Survived and Counting. The bizarre case Kirsty Wark introduces highlights of
League Weekend 3.30am Take Football 10.45pm-12.20am BBC THREE the Holocaust 12am King of a trawler that disappeared the International, Fringe and TV
It Like a Fan 4am UEFA Super MotoGP 7pm Live Athletics 9pm Arthur’s Round Table Revealed in calm waters. 10pm Little Festivals. Last in the series.
Cup Football 5.30am-6am Reading Festival 2010 10pm 1am Mega Disasters 2am People, Big World 11pm I Was
Take It Like a Fan
ESPN EastEnders 10.30pm Reading Mountbatten: Death of a Royal Dead 12am 18 Kids and
7pm Goal! 7.30pm Live Festival 2010 12am Family Guy 3am Deep Sea Detectives Counting 1am Little People, Big
SKY SPORTS 2 Bundesliga 9.30pm Premier 12.45am Young, Dumb and 4am-5am The Universe World 2am I Was Dead 3am
7pm Tight Lines 8pm Test League Preview 10pm UFC Living Off Mum 1.45am FILM 10 Years Younger 4am A Baby
Cricket 10pm Tight Lines 11pm Unleashed 11pm French Top 14 Scary Movie 2 2001. 3am The DISCOVERY Story 5am-6am Bringing
NFL: Total Access 12am Test Rugby Union 12.45am MMA Adventures of Daniel 3.30am 8pm How Do They Do It? Home Baby
Cricket 2am NFL: Total Access Live at UFC 118 1.45am Press The Klang Show 4am Inn 8.30pm How It’s Made 9pm
3am World Sport 3.30am Test Pass 2010 2.15am MMA Live Mates 4.30am-5.30am Young, Weird or What? 10pm How the SKY1
Cricket 5.30am-6am IEX 3am UFC Unleashed 4am UFC Dumb and Living Off Mum Universe Works 11pm Human 8pm Must Be the Music 11pm
Magazine All Access 4.30am-5am Body: Ultimate Machine 12am Lie to Me. Cal tries to rescue PETE VERSUS LIFE
Superleague Formula E4 Bear Grylls: Born Survivor 1am Gillian’s new boyfriend. 12am CHANNEL 4, 10PM
SKY SPORTS 3 7pm Hollyoaks 7.30pm Friends Deadliest Catch 2am Rory Road Wars 1am Bones 1.50am Pete agrees to a marriage of
7pm IEX Magazine 7.30pm LIVING 9pm Supernanny. A mother McGrath’s Best of British Road Wars 3.30am The 4400 convenience in an effort to be more
World Sport 8pm Live PGA Tour 7pm Four Weddings 8pm with a clingy toddler. 10pm Engineering 3am World War 4.20am Top Design 5.10am- charitable. Comedy, starring Rafe Spall,
Golf 11pm European Tour Golf Passport Patrol 9pm Medium Wife Swap 11.05pm Rude Tube Two: The Complete History 6am Sell Me the Answer Simon Greenall and Ian Kirkby.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
36 14 3 20 9 7
19 6
22 13 11  
45
Place the numbers from 1 to 9 in each empty cell so that each  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 11 24
29 42 17
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 6 12 10
   
above or to the left of it. 12 28
You can only use the digits 1-9 15 14  
   and you must not use the
7
21 13    
same digit twice in a block. 4 10
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11
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column, but it must be in a
9
9 13
8 16

7 4
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17 15 14 5
45
    23 18
 

  ACROSS DOWN
1 Return (2,4) 1 Pick (2,3)
 
   WORDWHEEL N T
4 Jetty (4)
6 Putting into
service (9)
2 Promotional statement
(as found on the dust
jackets of books) (5)
Using only the letters in the Wordwheel, you have 3 Very hot and finely
   ten minutes to find as many words as possible,
D O 8 Rowing pole (3)
tapering pepper (6)
10 Insurgents (6)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters D 13 Brass instrument (4) 4 Former Spanish coins (7)
5 Piece of scrap material (3)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
I E 14 Dry red table wine
from Spain (5) 7 Immense cloud of gas
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
M A 16 Yield (4)
17 Snuggle (6)
and dust in space (6)
9 Arm of the Mediterranean
QUICK CROSSWORD 8 1 2 4 9 5 20 Column of light (3)
between Greece

( 9 ( 1 5 $ 5 ( 5
9 6 8 4 7 5 7 4 SUDOKU          21 Course of appetisers
and Turkey (6)
11 Christian recluse (7)
2 7 1 3 1 5 2          in an Italian meal (9)
/ 2 2 = ( ( +
6 8 9 9 2 6 12 Male child (3)
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2 ' ( % $ & / ( 0 2 7 6 4 1 2 3
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: 2 1 $ 8 ' , ( 1 4 3 5 7 8 5 9 Islands (6)
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Punter
28 CITYA.M. 27 AUGUST 2010

| Football

FOOTBALL TRADER BEN CLEMINSON TAKES A LOOK AT THE CHAMPIONS LEAGUE DRAW AND PICKS OUT THE TEAMS TO WATCH

Wembley braced for


a Spanish invasion
dented three sides from the city in the their place at the European top table, but
CHAMPIONS hat, hopes might be high for a first-ever Spurs have been thrown in at the deep
LEAGUE 2010-11 London European Cup winner.
Of the trio, Chelsea’s 13/2 odds on
end with current holders Inter Milan for
group company along with Werder
BY BEN CLEMINSON
Paddy Power suggest they have the best Bremen and FC Twente. Don’t take the
THE road to Wembley has been mapped chance and they might be worth an each- 40/1 for them to win the tournament, but
out for England’s representatives in the way poke considering their magnificent a few home wins are within their grasp.
Champions League with the biggest obsta- domestic start. They have also reached at Barcelona should at least reach the
cles, La Liga giants Barcelona and Real least the semis in three of the past four semis and score bundles en route, but at
Madrid who head the betting at 3/1 and campaigns and the Blues should advance 5/1 on Betdaq, Jose Mourinho’s Real
5/1 respectively, kept out of harm’s way for even if they could have done without a Madrid look better value than the 2009
now. trip to Roman Abramovich’s homeland to winners and are the outright tip.
Fourth favourites Manchester United face Spartak Moscow. Elsewhere, there will be plenty of inter-
will be pleased with their group draw, but Arsenal must also negotiate a tricky trip est in the top scorer markets. Barca’s
the big doubt about the 8/1 shots is how east thanks to their pairing with Shakhtar David Villa is clear favourite at 6/1 and I
they stand up on the biggest stage if Donetsk but the 16/1 contenders will be simply can’t oppose that. We saw his
Wayne Rooney is out of form or injured. confident of prolonging their involve- exceptional scoring ability in South Africa
Carlo Ancelotti completed his first mis- ment beyond the first phase. There’s no and linking up with Xavi and Andres
sion at Stamford Bridge last term by doubt that if the Gunners could finally Iniesta for his club does his prospects no
dethroning United at the Premier League make it their season, it would be all the harm whatsoever.
summit, and now the Chelsea suits will sweeter for their fans with the winners’
have their eyes firmly fixed on Euro glory
– having been a goal-post’s width and a
coronation taking place at a ground they
once called home for Champions League
POINTERS...
slip away from lifting the 2008 trophy. games. Real Madrid to win the Champions League at 5/1 on Betdaq
With the final taking place in the capi- Tottenham looked like kids given free Chelsea to win outright at 13/2 each-way with Paddy Power
tal and with the Blues among an unprece- reign in the sweetshop after securing David Villa to be top goalscorer at 6/1 with William Hill Last year’s winners Inter Milan Picture: ACTION
CITYA.M. 27 AUGUST 2010 The Punter | Football 29

FOOTBALL TRADER BEN CLEMINSON HAS TEAMED UP WITH


BETTORLOGIC TO BRING YOU THE CITY AM FOOTBALL TRADER ...the home of form

Hard to separate sides


in key Villa Park clash
ASTON VILLA

EVERTON

SUNDAY – 4.00PM SKY SPORTS 1


ASTON VILLA and Everton were involved in
arguably the most exciting tussle in the
Premier League last year, the race for the
fourth Champions League place. Both ulti-
mately fell short – Everton finishing eighth
behind Villa’s sixth. Two weeks into the
new season then and a challenge for
Europe this year must seem a long way off
for both sides.
The Villans have had to come to terms
with the massive blow of Martin O’Neill’s
walkout just days before the season and,
judging by the 6-0 walloping they were
dealt by a newly promoted Newcastle last
weekend, they are struggling. Everton,
meanwhile, have taken just a single point
from their two opening matches. Even at
this early stage of the campaign, neither
of these closely matched sides will want to
lose ground on the other, so perhaps we
should expect both David Moyes and Villa drew eight times at
Kevin MacDonald to set up to avoid defeat home last season.
rather than go all out for victory. Picture: ACTION IMAGES
Aston Villa and Everton have tied five of
their last seven meetings and both display
a tendency to draw against similarly The analysis regarding the number of hosts will miss the threat of the departed
matched teams too. In Villa’s 12 home goals is a little less clear-cut. The outcome James Milner, scorer against the Hammers
matches against top-half, non-Big Four of previous meetings would suggest a and Everton clearly lacked a cutting edge
sides since 2008/09 they have finished high-scoring match as there have been in attack on their trip to Blackburn.
level on eight occasions, while the Toffees four or more goals in four of the last five Selling goals at 2.4 with Sporting Index
have drawn five of their eight such away head-to-heads in the Premier League, and looks the right option, while a 1-1 result is
games in the same period. Furthermore, in five out of six if you include the fifth- good value at 6/1 with Hills.
with eight draws at Villa Park last year and round FA Cup tie at Goodison Park in
nine during the 2008/09 campaign, no
group of home fans have watched more
2009. However, aside from Villa’s opening
day victory over a poor West Ham and
POINTERS...
matches finish level in the last two sea- Everton’s win against League One’s Match to be drawn at 23/10 on Betdaq
sons. Back this match to be drawn at 23/10 Huddersfield in the week, neither team Sell goals at 2.4 with Sporting Index
on Betdaq. has really impressed in front of goal. The Match to finish 1-1 at 6/1 with William Hill

aren’t going the way of West Ham. were to nil while the Red Devils, besides
At the Boleyn Ground again in mid- doing the double over West Ham for the
MANCHESTER UNITED week, the Hammers looked certain to past two seasons, won all four of these
have to deal with the embarrassing out- matches without conceding. The 8/11 with
WEST HAM come of being held to a draw by League Paddy Power for the hosts to win to nil
Two’s Oxford until captain Scott Parker therefore looks very appealing.
got his side out of jail with a goal in stop- Like Chelsea against Wigan and Arsenal
TOMORROW – 5.30PM ESPN page time. against Blackpool last week, if United get
After Grant’s own admission that his ahead they are liable to twist the knife
AVRAM GRANT has made a pretty charges are a bit down in the dumps, it’s far and push on to win by four or five. The
appalling start as manager of West Ham. from an ideal time – if there ever is one – to Hammers have only managed to score
Comprehensively beaten 3-0 by the other be visiting Old Trafford. Manchester United from the spot in the league so far, so
claret and blues on day one, the Upton are a best-priced 1/6 and it seems the rather than buy goals, I also suggest buy-
Park faithful subsequently had to witness Londoners will have to wait to pick up their ing United’s supremacy at 2.5 with
a 3-1 defeat to Bolton last weekend. There first points of the season. United have won Sporting Index.
was some encouraging play, particularly all of their last 15 matches at home to bot-
in the first half, but the fact that the
Hammers couldn’t convert – and a
tom-half teams, but there are better bets to
be had than simply backing United to win
POINTERS...
Matthew Upson headed own-goal – surely at such short odds. Man Utd to win to nil at 8/11 with Paddy Power
only added to the feeling that things An impressive 13 of the these 15 wins Buy Man Utd supremacy at 2.5 with Sporting Index

will not be as easy as the odds of 8/13 sug- dle-third sides over the past two seasons.
BLACKBURN gest. With this in mind it is difficult to side
On their way to a top-half finish last sea- with the visitors at the price available and
son, Blackburn were unbeaten at home to laying Arsenal at 8/11 on Betdaq has far
ARSENAL the Big Four, including a 2-1 victory over more appeal.
Arsenal. Perhaps even more impressively, Blackburn seem to start well in front of
Rovers have won seven of their last 10 their own fans and of their seven most
TOMORROW – 12.45PM SKY SPORTS 2 matches at home. Arsenal looked full of recent home wins, they went in at the
confidence against Blackpool at the break leading 1-0 on all but one occasion.
OF THE numerous apparent mismatches Emirates last weekend and go into this Also back Blackburn to lead at half-time at
in the Premier League this weekend, match knowing they have won on three of 5/1 with Totesport.
Blackburn Rovers arguably stand the best their last six trips to this particular part of
chance of causing an upset. Big Sam has
made Ewood Park a very tricky place to
Lancashire but, of late, the Gunners have
been misfiring outside of North London.
POINTERS...
visit and a manager as astute as Arsene They are winless in five on the road and Lay Arsenal at 8/11 on Betdaq
Wenger will know that getting a win here have won just half of their 18 trips to mid- Blackburn to lead at half-time at 5/1 with Totesport
Sport
30 CITYA.M. 27 AUGUST 2010

Results
Diop 23
UEFA EUROPA LEAGUE
PLAY-OFF ROUND - SECOND LEG
AEK Athens .................(1) 1 Dundee Utd.......................(0) 1
Daly 78
Strauss falls as England denied by rain
Att: 600
Agg: 2-1.
CRICKET light and showers forced an early end tially to fend off the catch, while a review spared the

Aston Villa....................(1) 2 Rapid Vienna...................(0) 3
Agbonlahor 22 Nuhiu 52 to play, and it might have been threat of Pakistan’s England man on nine when Amir
Heskey 77 Sonnleitner 78 ENGLAND only faced 12.3 overs on a worse for the home side had attack. thought he had him caught behind.
Att: 29,980 Gartler 81 rain-hit first day of the fourth Test, Alastair Cook not been dropped Strauss could do little to Jonathan Trott managed eight
Agg: 3-4.
FC Utrecht....................(2) 4 Celtic.....................................(0) 0 but that was still enough time for on one. combat Asif’s superb in- before the umpires deemed the light
van Wolfswinkel 12 (pen), 20 (pen), 47 Pakistan to dismiss captain Andrew Pakistan captain Salman Butt, swinger, which flew unplayable at around 5:45pm.
Maguire 63 Att: 18,000 Strauss. seeking a victory in this deciding between bat and pad, and Batsman Kevin Pietersen, mean-
Agg: 4-2.
Man City ........................(1) 2 FC Timisoara ...................(0) 0
The skipper (right) has endured a Test to ensure the series ends 2-2, left him cursing another while, has admitted to concerns
Wright-Phillips 43 modest series with the bat and that won the toss and it was no surprise meagre return. about his drop in form during an
Boyata 59 Att: 23,542 lacklustre sequence continued yester- when he put England in to bat. Cook almost went in the injury-hit past 18 months.
Agg: 3-0. day when he was bowled by Seam-friendly conditions kept third over when he edged “I’ve got to look at the positives and
Motherwell.................(0) 0 Odense BK..........................(1) 1
Att: 9,105 Utaka 28 Mohammad Asif for 13 at Lord’s. the home side’s openers on Mohammad Amir only for Umar drag my confidence up, which has
Agg: 1-3. England reached 39-1 before bad their toes and they did well ini- Gul to drop a straightforward been hammered,” said Pietersen.
The New Saints FC..(1) 2 CSKA Sofia........................(1) 2
M Williams 14 Aquaro 11
Evans 62 Tiboni 80

Kuyt rejects
Att: 843
Agg: 2-5.
Trabzonspor................(1) 1 Liverpool............................(0) 2
VILLA MAKE RAPID EXIT
Gutierrez 4 Kacar 84 (og)
Att: 21,065 Kuyt 88
Agg: 1-3.
CARLING CUP SECOND ROUND

Inter talk as
Birmingham.................(1) 3 Rochdale .............................(1) 2
McFadden 28 (pen) Jones 26, 76
Murphy 48
Derbyshire 53 Att: 6,431
CRICKET
FOURTH TEST MATCH
England v Pakistan

Reds qualify
LORD’S: England have scored 39 for one wicket against
Pakistan
ENGLAND: First Inns
A Strauss b Asif ............................................................................................13
A Cook not out ..............................................................................................10
I Trott not out ..................................................................................................8
W5 nb3 ....................................................................................................8
Total (1 wkt., 12.3 overs) ..............................................................39
Fall: 31.
Bowling: Amir 5.3-2-18-0, Asif 6-1-17-1, Riaz 1-0-4-0.
Umpires: B Bowden & A Hill. Liverpool. I’m 30 years old and I want-
LV COUNTY CH’SHIP - Division One: Yorkshire v Hampshire
(Scarborough); Yorkshire 322-9 dec. (A U Rashid 76, A Lyth
TRABZONSPOR
1-3 on aggregate
1 ed to know if any club in the world
showed any interest in me. The club
63, D G Cork 5-64) and 225-4 dec. (J A Rudolph 54, J M spoke to me and explained every-
Bairstow 50no) v Hampshire 498-6 dec. (J H K Adams 196,
J M Vince 180). Yorkshire (7pts) drew with Hampshire
(11pts).
LIVERPOOL 2 thing. They said I was really impor-
tant for Liverpool and that made me a
CLYDESDALE BANK 40 - Group B: Gloucestershire v really proud person. At that point I
focused my thoughts on Liverpool.”

Holland (Rotterdam); Gloucestershire 122-3 v Holland 68-6. FOOTBALL


Gloucestershire (2pts) beat Holland by 54 runs.
BY FRANK DALLERES Reds manager Roy Hodgson added:
GOLF “I have said all along, there has been
JOHNNIE WALKER CH’SHIPS (Gleneagles)— —1st rnd (Gbr & LIVERPOOL forward Dirk Kuyt no offer for Dirk Kuyt, Dirk Kuyt is
Irl unless stated, par 72): 66 Richard Finch. 67 Richard pledged his future to the club after not for sale, so excuse me for not real-
Bland, Gary Boyd, Robert Rock, Stephen Gallacher, David his goal helped them to a comeback ly understanding the speculation or
Lynn. 68 Francesco Molinari (Ita), Nick Dougherty, Julien
Guerrier (Fra), Simon Dyson, Gary Lockerbie, Ricardo win and a place in the Europa League being particularly happy now that
Gonzalez (Arg), Sam Walker, Marc Warren, Mark F Haastrup group stage. he’s said he is staying, because I have
(Den), Gregory Bourdy (Fra), Paul McGinley. The Reds, missing star trio Steven never doubted he was staying.”
Gerrard, Fernando Torres and Javier English teams will discover their
TODAY’S DIARY Mascherano, looked in for a difficult group stage opponents today when
(Football 7.45pm unless stated) night when Teofilo Gutierrez scored the draw is made.
UEFA Super Cup for Trabzonspor and levelled the tie.
Inter Milan v Atletico Madrid................................................................................
But fears eased when Giray Kacar’s
npower League One
own goal put Liverpool back in front
CITY BONUS | BLUES CRUISE
Colchester v Carlisle ..................................................................................................
npower League Two on aggregate and Kuyt made sure of
Bradford v Southend ................................................................................................ the win two minutes from time. ENGLAND winger Shaun Wright-Phillips
GOLF The Holland star has this week scored as Manchester City cruised past
USPGA Tour: The Barclays (Ridgewood Country Club, been linked with a move to Inter Timisoara 2-0 and into the Europa ASTON VILLA crashed out of Europe last night with a 3-2 defeat at home to Rapid
Paramus, New Jersey, United States). Milan, where he would be reunited League group stage. Belgian youngster Vienna. Stephen Ireland (above) set up Gabriel Agbonlahor to put Villa ahead in the
with former Anfield boss Rafael Dedryck Boyata headed his first for the play-off second leg and, following an equaliser and Stiliyan Petrov’s missed penalty,
SPORTS EDITOR JON COUCH Benitez. club as City won 3-0 on aggregate. Emile Heskey restored their lead. But late goals from Mario Sonnleitner and Rene
email sport@cityam.com But Kuyt said: “My future is at Gartler sent Rapid through, while Celtic went out 4-0 at Utrecht. Picture: PA

SPORT | IN BRIEF
Chiefs tighten up
blood injury rules
Molinari books Ryder Cup spot Mayne-Nicholls, who led the Fifa delega-
GOLF: Italy’s Francesco Molinari has tion, said: “Fifa is a family too and we
secured his place in Europe’s Ryder Cup fully understand why he could not be
team after Ross McGowan pulled out of with us. The Prime Minister took the
the Johnnie Walker Championship right decision.”
through injury. England’s bid was warmly received,
McGowan’s pinched nerve means he with Mayne-Nicholls adding that a num- Premier Rugby have

RUGBY UNION
no longer has any chance of overtaking ber of aspects were “perfect”. BY FRANK DALLERES decided to make it
Molinari in the top nine ranking places mandatory.
this weekend at Gleneagles. Schumacher sends ‘sorry’ text TOP-FLIGHT chiefs are convinced “We have put the
England’s Simon Dyson, who needs to FORMULA ONE: Michael Schumacher there will be no a repeat of the right steps in place
win the tournament to gatecrash the has cleared the air with Rubens Bloodgate scandal that shamed the [to ensure it doesn’t
automatic spots, boosted his chances Barrichello ahead of this weekend’s sport after tightening up regulations happen],” said direc-
with a four-under-par round of 68. Belgian Grand Prix with a text message. for the new season. tor of rugby Phil Winstanley. “We shop to fool the officials. The scam
Mercedes driver Schumacher caused a Aviva Premiership rules set to come introduced the blood inspection pro- was later rumbled, with the club
PM praised by Fifa inspectors storm in Hungary earlier this month into effect mean doctors from the tocol. It is a reassurance. There were fined and individuals banned.
FOOTBALL: Fifa inspectors praised Prime when he almost ran Ferrari’s Barrichello opposing team will have the right to no incidences at all of anyone ques- Ex-Quins doctor Wendy Chapman
Minister David Cameron for choosing to into the pit wall. demand a look at any blood injury tioning whether there was a cut.” was yesterday found guilty of deliber-
skip their four-day visit to evaluate “I received a message from him today, they suspect to be fake. Last season Harlequins notoriously brought ately cutting Williams’ lip after the
England’s 2018 World Cup bid. an SMS,” said Barrichello. “He apolo- clubs were encouraged to allow fake blood injuries to prominence match, an act which helped cover up
Cameron’s wife Samantha gave birth gised. I accepted it, wished him a good access to opposing medical staff and last year when winger Tom Williams the plot, but not of deception at a
to a daughter on Wednesday and Harold weekend, life goes on.” the measure was such a success that used a capsule bought from a joke General Medical Council hearing.
CITYA.M. 27 AUGUST 2010 Sport | Football 31

Wembley ‘big
HOW BRITISH SIDES FARED IN THE DRAW
GROUP A GROUP C GROUP F GROUP H
TOTTENHAM MAN UTD CHELSEA ARSENAL
Best: Semi-finals (1962) Best: Winners (‘08, ‘99, ‘68) Best: Runners-up (2008) Best: Runners-up (2006)

incentive for
Last year: Did not qualify Last year: Quarter-finals Last year: Last 16 Last year: Quarter-finals
Fixtures: Fixtures: Fixtures: Fixtures:
14 Sep: Werder Bremen (A) 14 Sep: Rangers (H) 15 Sep: MSK Zilina (A) 15 Sep: Braga (H)
29 Sep: FC Twente (H) 29 Sep: Valencia (A) 28 Sep: Marseille (H) 28 Sep: Partizan (A)
20 Oct: Inter Milan (A) 20 Oct: Bursaspor (H) 19 Oct: Spartak Moscow (A) 19 Oct: Shakhtar (H)
2 Nov: Inter Milan (H) 2 Nov: Bursaspor (A) 3 Nov: Spartak Moscow (H) 3 Nov: Shakhtar (A)
24 Nov: Werder Bremen (H) 24 Nov: Rangers (A) 23 Nov: MSK Zilina (H) 23 Nov: Braga (A)

London clubs’
7 Dec: FC Twente (A) 7 Dec: Valencia (H) 8 Dec: Marseille (A) 8 Dec: Partizan (H)
Inter Milan Valencia Marseille Shakhtar Donetsk
Stadium: Giuseppe Meazza Stadium: Estadio Mestalla Stadium: Stade Velodrome Stadium: Donbass Arena
Capacity: 80,000 Capacity: 55,000 Capacity: 60,000 Capacity: 51,000
Rafael Benitez faces a steep The Spaniards are back in the Chelsea connections abound Ukrainian champions bought
challenge to replace Jose Champions League after a at Didier Drogba’s former club Eduardo from the Gunners in
Mourinho, but the Spaniard two-year absence, having fin- who, under new boss Didier summer, and the Croatian is
90,000-capacity national stadium as a has retained most of the play- ished third last season, but it Deschamps, won their first assured a warm reception on
CHAMPIONS major factor. “There is a real incentive ers who won this trophy in remains to be seen how they league title for 18 years. Have his return to the Emirates.
LEAGUE 2010-11 for all English clubs, especially the May, and loves nothing more
than European competition
will cope without stars David
Villa and David Silva
started the new season with
consecutive defeats, however
Not a part of the world
Arsenal relish going to
BY FRANK DALLERES London clubs,” said Gazidis. “It would
be fantastic to play in the final in Werder Bremen RANGERS Spartak Moscow Braga
ARSENAL chief executive Ivan Gazidis London and I know Spurs and Chelsea Stadium: Weserstadion Stadium: Ibrox Stadium: Luzhniki Stadium Stadium: Estadio AXA
believes a Wembley final will provide will feel the same way. There will Capacity: 42,000 Capacity: 51,000 Capacity: 78,000 Capacity: 30,000
extra motivation for London clubs to probably be a mini competition with- World Cup star Mesut Ozil Their clashes with United Scene of the 2008 final, in Finished a best-ever second in
go all the way in the Champions in a competition there.” has flown the nest but the promise to be blockbuster which Chelsea lost to Man the Portuguese top flight and
League after British sides learned United manager Sir Alex Ferguson Germans showed they will be affairs, and they surely can’t Utd on penalties, it is unlikely then beat Celtic and Sevilla to
tough nuts to crack in the do worse than last year, to be the Blues’ favourite reach the group stage for
their fates yesterday. is relishing facing a club he supported play-off round when they when they only managed two venue, not least because first time. Fans known as
Newcomers Tottenham got the as a boy and went on to play for, now mounted an unlikely come- points and lost 4-1 at home to games at the Luzhniki are Arsenalistas, owing to kit’s
plum draw they hoped for with a managed by his former assistant back to beat Sampdoria Unirea Urziceni. Can they? played on an artificial pitch resemblance to Gunners strip
group that includes last season’s win- Walter Smith. “You can’t complain
ners Inter Milan, while Chelsea and about that, it’s a good draw for us,” FC Twente Bursaspor MSK Zilina Partizan Belgrade
the Gunners were handed more said Ferguson. “Walter Smith’s Stadium: De Grolsch Veste Stadium: Bursa Ataturk Stadium: Pod Dubnom Stadium: Stadion FK Partizan
Capacity: 24,000 Capacity: 18,000 Capacity: 11,000 Capacity: 32,000
straightforward opposition. already been on the phone, talking
Manchester United will face about tickets for Old Trafford. I’m real- Steve McClaren rebuilt his Won the Turkish Super Lig Slovakia’s dominant team of Have ruled the Serbian top
reputation by leading them to for the first time last season the last decade, they won flight for the past three years
Rangers in two mouth-watering all- ly looking forward to our games the Dutch title last season, and are making their debut in their fifth title in nine years and are back in the group
British clashes after they were drawn against each other.” but the Englishman has since Europe’s top competition. Not last season. Were the first stage for the first time since
together in Group C, while Jose United’s draw raises concerns, how- departed. Like Liverpool, they great bets to reach last 16, team Chelsea played after 2003/4, having squeezed
Mourinho’s Real Madrid join AC ever, about the return to Manchester sing You’ll Never Walk Alone but are splendidly nicknamed Roman Abramovich bought past Anderlecht in the play-
Milan, Ajax and Auxerre in arguably of Rangers fans, some of whom rioted before kick-off the Green Crocodiles the club in 2003 off on penalties
the pick of the draw. after the 2008 Uefa Cup final defeat to
London has three teams in the Zenit St Petersburg. Around 150,000 THE REST OF THE GROUPS
group stage this season for the first descended on the city for that match Group B Group D Group E Group G
time, and Gazidis identified the but Rangers chief executive Martin Lyon Benfica Barcelona Panathinaikos Bayern Munich Roma AC Milan Real Madrid
appeal of a potential showdown at the Bain said there would be no repeat. Schalke Hapoel Tel Aviv FC Copenhagen Rubin Kazan FC Basle CFR Cluj Ajax Auxerre
Cell,
cell,
cell.

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