Issue 1,224 Tuesday 21 September 2010

BUSINESS WITH PERSONALITY FREE

www.cityam.com

DANIELS QUITS CLEGG HIT BY LIB DEM

CONFERENCE
AS LLOYDS BOSS SCHOOLS
REVOLT
▲

BANKING
BY VICTORIA BATES
LLOYDS Banking Group chief executive Eric
Daniels yesterday became the third UK bank-
ing boss to quit his position in just two
P9
weeks, during a turbulent time at the top of
the industry.
Lloyds said Daniels would retire in a year’s
time, giving it time to conduct a thorough
search for his successor both externally and
within the bank.
Primary soundings from the banking
industry have thrown up a number of high-
profile potential candidates for the role,
including Naguib Kheraj, the former chief
executive of JP Morgan Cazenove; Fritz
Seegers, who quit as head of retail and com-
mercial banking at Barclays at the end of
last year; and Douglas Flint, HSBC’s softly-
spoken finance director.
The name of Stuart Gulliver, HSBC’s head
of investment banking, was also being tout-
ed around yesterday in the City, though
some believe that an investment banker
would be unpalatable to the government,
particularly given the furore over Bob
Diamond’s appointment to the helm of
Barclays earlier this month.
Lloyds’ head of retail banking Helen Weir
is thought to be the most likely candidate if
the bank plumps for an internal candidate.
Daniels’ decision to step down comes after
the bank’s chairman Sir Win Bischoff start-
ed to make enquiries in the City about a Potential successors to Lloyds
potential successor earlier this year. In May, Banking Group chief executive
Bischoff approached former trade minister Eric Daniels (top) could include
and Standard Chartered boss Lord Davies, (left to right) Douglas Flint,
though he has since accepted two positions Naguib Kheraj and Fritz Seegers
as chairman of Hong Kong’s PineBridge Pictures: REX
Investments and as a partner at US buyout
group Corsair Capital. which still holds a 41 per cent stake. “the right person at the right price”, suggest-
Daniels has had a rocky ride at Lloyds over The Treasury yesterday insisted that the ing the bank will come under significant
the last two years, having shouldered the recruitment of Daniels’ successor would be a political pressure not to lure a banking
brunt of the blame for leading the disastrous matter for the Lloyds board, adding that heavyweight with a generous pay package.
acquisition of HBOS in 2008. The deal led the UKFI manages the taxpayer’s stake “at arm’s Lloyds investors yesterday appeared unruf-
bank to the brink of bankruptcy, forcing it to length”. However, government sources said fled by the upheaval, with the shares gain-
accept a part-bailout from the government, the successful candidate would have to be ing 2.75 per cent to close at 77.41p.

MPs WARN OSBORNE OVER WATCHDOG

POLITICS Its autonomy was called into question in taken a view on whether it should be legally
▲

BY DAVID CROW
THE government’s fiscal watchdog should
be entirely independent of the Treasury, an
influential group of MPs has said, if it is to
avoid accusations of political bias.
In its first report on the Office for Budget
Responsibility (OBR), published today, the
powerful Treasury Select Committee says the
watchdog should be “an institution with its
own legal personality, responsible for
appointing its own staff”.
The OBR, which is charged with providing
economic forecasts free from political inter-
ference, is currently an adjunct of the
Treasury and borrows most of its staff on sec-
ondment, leading to accusations that it can-
not be truly independent.
June, after former chair Sir Alan Budd rushed
out unemployment forecasts ahead of sched-
ule, allowing David Cameron to use the fig-
ures as ammunition in a highly-charged
session of Prime Minister’s questions.
Andrew Tyrie, chairman of the committee,
said: “For the OBR to succeed, it will have to
be, and be seen to be, independent, particu-
larly after the difficult early period of the
interim body.”
George Osborne set up the OBR to stop
chancellors from “fiddling the figures to fit
the Budget”, but today’s report will put him
under pressure to make the body more inde-
pendent than originally envisaged.
An aide to Osborne said he had already
pledged to house the OBR in a building out-
side of the Treasury, but that he had not yet
independent.
But Chuka Umunna, a Labour member of
the select committee, said: “Just putting it in
a different building is not enough to give the
public and the City the impression that it is
independent.”
The Treasury select committee has already
convinced the chancellor to give it a veto over
any plans to hire or dismiss the OBR’s chair-
man. Last week it approved the appointment
of Robert Chote, formerly director of the
Institute of Fiscal Studies, as the new chair.
The OBR is currently operating on an inter-
im basis, and its final incarnation will
depend on legislation due in the Autumn.
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 2 News
Britain’s private sector jobs miracle
EDITOR’S LETTER
ALLISTER HEATH
WITH the money supply dipping in
August, and a flurry of other down-
beat indicators, it is clear that the
economy won’t grow especially quick-
ly in the next few months. But this
doesn’t necessarily bode ill for jobs.
One of the great surprises of the past
two years has been the performance of
the labour market, which didn’t dete-
riorate as much as expected. One
minor reason was the government’s
hiring spree, which was always unsus-
tainable. The state sector took on an
extra 209,000 people during the
downturn (excluding the 241,500 staff
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WHAT THE OTHER PAPERS SAY THIS MORNING
BLACKSTONE QUITS LIVERPOOL TALKS
The credit unit of Blackstone, which
had been mooted as a possible leader
of a £280m ($436m) refinancing of
Liverpool Football Club, has pulled
out of talks with its owners in a
potential setback in their attempt to
keep control of the company. People
close to the situation said the unit of
the US private equity company, called
GSO Capital Partners, had considered
the transaction but had decided
against proceeding last week.
HAIKE PUSHED INTO THE RED
Shares in Haike Chemical fell almost
57 per cent after the Chinese petro-
chemicals company dropped $21m
(£13.5m) into the red in the first half.
Haike, which has lost three of its five
non-executive directors this year, sig-
nalled the losses in June when it
reported a pre-tax loss of $1.8m on
revenues of $591.3m for 2009.
of the now state-controlled banks).
The primary reason for the
resilience, however, is that fewer pri-
vate sector jobs were lost than during
the last, much milder recession of the
early 1990s. I don’t know of a single
economist who predicted this. As Ian
Stewart, Deloitte’s excellent chief
economist, points out, 822,000 private
sector jobs were lost in 2007-09, com-
pared to 1.3m job losses in 1991-1993
(even though GDP fell by more this
time around).
Even more remarkably, a similarly
benign development wasn’t seen in
other economies. UK employment is
1.2 per cent below its pre-recession
peak – in the US, it remains 5.4 per
cent below peak, in the Eurozone 2.7
per cent lower and in Spain a disas-
trous 10 per cent lower. Once again,
Britain’s outperformance has been
extraordinary. Because the reduction
in jobs was much less than the drop in
GDP, the UK’s performance has noth-
ing to do with the government’s cycli-
cal’s policies, such as quantitative
OECD: US to avoid double dip
US ECONOMY
▲
BY STEVE DINNEEN
A GENERATION of young Americans
face a bleak future of unemployment
but the US economy will avoid a dou-
ble-dip recession, according to the
Organisation for Economic
Cooperation and Development
(OECD).
The Paris-based organisation yester-
day said it could be 2013 before
employment returns to pre-recession
levels after peaking at 10 per cent of
the labour force in 2009.
However, OECD secretary general
Angel Gurria said: “We don’t see a
risk of a double-dip recession. That
said, we don’t see either a recovery
that is strong enough to put a signifi-
cant dent in unemployment.”
The OECD report projects US eco-
nomic growth at a sluggish 2.6 per
cent in 2010.
It added that because of the degree
of slack in the economy and low
inflation, current low interest rates
were appropriate. But it urged policy-
makers to continue planning for a
L’ORÉAL ENDS CONTRACTS
TO BETTENCOURT’S FRIEND
L’Oréal has abruptly ended consultan-
cy contracts it had awarded to the
controversial photographer friend of
lawyered by David HooperLiliane
Bettencourt, the 87-year-old daughter
of the cosmetics group founder and
its biggest shareholder. The Paris-
based company terminated Francois-
Marie Banier’s consultancy contracts,
including a 10-year €4m ($5.2m) artis-
tic contract, because media attention
“was such that their continuation
would have been damaging for
L’Oréal,”
SAHARA IN TALKS TO RESCUE MGM
Sahara India Pariwar, an Indian
media-to-sports conglomerate con-
trolled by billionaire industrialist
Subrata Roy, is in talks to rescue
Metro-Goldwyn-Mayer, the debt-rid-
den Hollywood studio, in a move that
would deepen ties between
Bollywood and Hollywood.
easing; structural forces were at play.
It turned out that – despite a mas-
sive increase in regulation in recent
years – the UK labour market remains
surprisingly flexible. There has been a
sharp reduction in overtime and
hours worked, with an increase in
part time and temporary work; by
slashing costs, this helped keep pri-
vate sector employment reasonably
strong while spreading the pain. Even
more importantly, wages have tum-
bled significantly after adjusting for
inflation. This has cut the cost of
labour and boosted employment.
So far this year 344,000 extra jobs
have been created in the private sec-
tor; most were part time , but roughly
a third were full time. Crucially, the
private sector has created far more
jobs than have been lost in the public
sector – so far this year the public sec-
tor has shed 47,000 jobs out of the
600,000 cuts likely over the next five
years or so.
The Office for Budget Responsibility
thinks 80 per cent of the state sector
quick withdrawal of “the very accom-
modative stance of monetary policy”
as soon as conditions permit in order
to avoid spiralling inflation.
An announcement by the National
Bureau of Economic Research (NBER)
yesterday backed up the findings. The
TRAVELZEST FEUD LAID BARE
Brotherly love is in short supply at
Travelzest, the AIM-listed holiday
group, which faces legal claims
totalling about £5m. The company,
best known for its ownership of Peng
Travel, Britain’s biggest naturist tour
operator, is being sued for wrongful
dismissal by Edward and Shane
Carroll — respectively father and
brother of its chief executive
Jonathan Carroll.
SPAIN LOOKS FOR SUPPORT
FROM WALL STREET
The Spanish Prime Minister will meet
key Wall Street investors today in an
effort to convince them that his
Government’s austerity reforms are
enough to drag Spain out of reces-
sion. Jose Luis Rodriguez Zapatero
will attempt to explain how the
socialist government is aiming to
reduce the country’s deficit.
cuts will take place from 2013; just
40,000 jobs will go in both 2011 and
2012, 0.1 per cent of total UK jobs. So
employment will almost certainly
keep on going up over the next two
years, thanks to the private sector –
and after that the economy will hope-
fully have strengthened.
As the Deloitte report points out,
the recovery from the early 1990s
recession was accompanied by heavy
cuts in public sector jobs which did
not derail the recovery. The public sec-
tor shed 72,000 jobs in 1994, 87,000 in
1995 and 107,000 in 1996. These job
losses were dwarfed by rapid growth
in private sector employment.
There was a difference with today’s
conditions, however, and that was
that the UK’s long-term sustainable
rate of growth was much higher. Taxes
were lower, as was red tape; the size of
the state was much, much smaller.
So far the strong jobs market has
surprised everybody; let us hope it
continues to do so. There is no Plan B.
allister.heath@cityam.com
organisation said the US economy
officially exited recession in June
2009, making it the longest down-
turn since the Great Depression.
However, while the committee said
the economy has not returned to
operating at normal capacity, it effec-
PHARMA GIANTS TO WORK TOGETHER
The UK’s pharmaceutical giants are
gradually shedding their secretive
mindset and sharing experimental
compounds with other organisations
in a bid to develop more effective
medicines, according to one of
AstraZeneca’s most senior scientists. A
chief scientist at Astra will say collabo-
rating with other companies could
help deliver cost-effective medicines.
FACEBOOK DENIES SMARTPHONE PLAN
Facebook has denied several reports
that it is developing a smartphone, in
a move which would up the competi-
tion between itself and major rivals,
Google and Apple. Reports yesterday
alleged that Facebook is developing
smartphone software. Yesterday
TechCrunch, a technology site, ran a
saying the company was developing
mobile phone software.
CITYA.M. 21 SEPTEMBER 2010
NEWS | IN BRIEF
Economic freedom in freefall
The UK ranks 10th in a new poll measur-
ing how much economic freedom coun-
tries have, according to the Fraser
Institute and the Institute of Economic
Affairs. The survey says economic free-
dom in the UK has been on retreat since
2000 and Britain’s score fell again in
this year. This follows a general down-
ward trend, with economic freedom
experiencing its first global downturn in
a quarter of a century. Hong Kong
ranked number one, followed by
Singapore and New Zealand. Zimbabwe
has the lowest level of economic free-
dom among the 141 jurisdictions includ-
ed in the study.
Cotton prices surge to new high
Cotton prices surged more than three
per cent yesterday, jumping past the $1 a
pound level for the first time since 1995.
Buying by speculators, mills and trade
accounts stoked the rally. Clothing mak-
ers and other commercial users were
forced to buy at the inflated prices.
Investment funds sitting on money-mak-
ing long positions were also anticipating
cotton prices will get a further boost
from consumer demand down the road.
President Obama
has avoided a dou-
ble dip but the US
faces years of
unemployment.
Picture: GETTY
tively ruled out the possibility of a
double dip recession.
A spokesman said: “Any future
downturn of the economy would be a
new recession and not a continuation
of the 2007 recession.”
US HOMEBUILDER CONFIDENCE: P6
PROXY FIRM SIDES WITH BURKLE
In a potential blow to Barnes & Noble,
the US’s largest proxy advisory firm,
Institutional Shareholder Services, is
backing billionaire investor Ronald
Burkle’s slate for the book retailer’s
board. “Based on deteriorating oper-
ating performance, poor shareholder
return, less-than-enthusiastic analyst
recommendations, inadequate trans-
parency, we believe the dissidents
have demonstrated a compelling case
that change is warranted,” it said.
EUROPEAN STABILITY FUND
GETS TRIPLE-A RATINGS
The European Financial Stability
Facility — the vehicle that will issue
guaranteed debt to raise money for
euro-zone member countries that
can't borrow in the markets — has
received the key triple-A credit rat-
ings that should give it access to low-
cost funding.
CITYA.M. 21 SEPTEMBER 2010
Blow for King
after money
supply falls
▲
UK ECONOMY
BY MATTHEW WEST
THE amount of money in circulation
in the UK decreased by £4.1bn, or 0.2
per cent, in August compared with an
average monthly increase for the pre-
vious six months of £2.2bn, the Bank
of England (BoE) revealed yesterday.
The Bank’s latest figures also
showed the 12-month money supply
growth rate fell to 1.8 per cent from
2.3 per cent in July, the weakest annu-
al growth rate since monthly records
began in July 1983.
The figures are likely to make
uncomfortable reading for Bank gov-
ernor Mervyn King, with one econo-
mist already raising the possibility
that the BoE may have to restart
quantitative easing, which has been
on hold for the last few months.
Meanwhile, the BoE’s Trends in
Lending report showed lending to UK
businesses fell for a fifth month in a
row in July. Monthly net lending to
businesses contracted by £2.5bn, fol-
lowing a £3.2bn decline in June. Net
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lending to UK businesses was down
5.7 per cent on the year, compared
with a fall of 7.9 per cent in June, but
this was the smallest fall since August
2009.
“The BoE’s lending survey very
much maintains concern that tight
credit conditions are posing a signifi-
cant obstacle to economic activity,”
said Howard Archer, chief economist
at IHS Global Insight. “With money
supply growth also faltering further
in August and the economy showing
increasing signs of faltering, pressure
is mounting on the BoE to revive
quantitative easing.”
The BoE also noted that while cred-
it conditions were easing for larger
businesses “they remained tight for
smaller firms” while most major UK
lenders reported demand for credit
remained subdued.
John Walker, national chairman at
the Federation of Small Businesses,
called for more government help for
small businesses, saying many were
facing an “uphill struggle”.
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ALESSANDRO
PROFUMO
UNICREDIT
Alessandro Profumo, one of the most
colourful banking bosses in Italy, is
expected to leave the bank he trans-
formed into Italy’s largest lender.
During 13 years at the bank,
Profumo, 53, took UniCredit from
regional bank to pan-European player.
Profumo is
expected to leave
after 13 years at
the bank.
He is known as a pugnacious char-
acter and has threatened to quit in the
past unless he got shareholder back-
ing for his plans.
Now it seems that his reign at the
lender will come to an acrimonious
end at a special board meeting called
to discuss management relations this
afternoon.
Such is Profumo’s hold over the
institution, analysts say UniCredit is at
risk of being left rudderless at a time
when it is struggling more than most
of its peers to recover from the finan-
cial crisis.
News 3
UniCredit boss
Profumo set to
resign today
▲
BANKING
BY STEVE DINNEEN
UNICREDIT chief executive Alessandro
Profumo is expected to hand in his res-
ignation today after tensions over
stake-building by Libyan groups in the
bank boiled over.
Profumo has been accused by some
Italian shareholders and politicians of
letting Libya increase its stake in the
bank without informing other top
managers. It was not immediately
clear, however, whether the board
would accept his resignation.
Libya’s central bank and Tripoli’s
sovereign wealth fund have a com-
bined stake in UniCredit of around 7.6
per cent.
If Profumo does quit, he will likely
be replaced on an interim basis by
chairman Dieter Rampl and other
senior managers.
Market watchdog Consob and the
Bank of Italy have requested clarifica-
tion on the Libyan stakes.
The Libyan central bank –
UniCredit’s third biggest shareholder
with a 4.988 percent stake – said yester-
day it was an independent institution
and that it was “extremely satisfied”
with the UniCredit investment.
The Libyan Investment Authority,
Tripoli’s sovereign wealth fund,
raised its stake in the bank by 0.5 per
cent to 2.594 per cent last month.
 4 News
Record yields
to hit Ireland
bond auction
▲
ECONOMY
BY JESSICA MEAD
STRICKEN Ireland is poised to re-enter
the debt markets today but record
yields on its government bonds mean
it will have to pay a steep price for fail-
ing to convince investors that it can
meet the escalating cost of bailing
out its banks.
The extra yield premium demand-
ed by investors to hold Irish 10-year
bonds over German bunds widened
to 423 basis points yesterday, the
greatest since the euro was intro-
duced in 1999.
Central bank governor Patrick
Honohan warned yesterday that the
Irish government would need to take
even tougher fiscal action over the
next few years but this did little to
calm the market’s nerves.
Against this backdrop, the National
Treasury Management Agency
(NTMA), which manages Ireland’s
debt, is set to raise €1.5bn (£1.26bn)
with the issue of a four-year and
eight-year bond. However, it will be
forced to pay investors greater com-
pensation for holding Irish govern-
ment debt.
The auction is seen as a key test of
investor sentiment towards Ireland.
“After all the rumours and specula-
tion last week I think it’s going to be
quite tough for them. [We are] cer-
tainly going to see people demanding
much higher yields on the auction. I
think it could be tricky,” said Melanie
Bowler at Moody’s Analytics.
When Ireland last issued an eight-
year bond in June it achieved a yield
of 5.088 per cent. Secondary market
yields, which are seen as the best
guide to today’s auction, were yester-
day 6.13 per cent. It sold four-year
bonds at a yield of 3.11 per cent in
May. These are now trading around
4.875 per cent.
The biggest concern for investors is
the lack of clarity regarding the cost
of recapitalising nationalised Anglo
Irish Bank and the country’s Budget
deficit which is forecast to be 11.6 per
cent of GDP this year, the biggest in
the Eurozone.
PM Brian Cowen (l) and finance minister Brian Lenihan await the bond sale Pictures: PA
IRISH DEBT CRISIS | A TIMELINE
● October 2008 Ireland officially
becomes the first country in western
Europe to fall into recession as the global
economic downturn gathers speed.
● February 2009 Unemployment rate
reaches 11 per cent, the highest in over a
decade. Protests take place in Dublin
against Prime Minister Brian Cowen and
his government’s fumbled handling of the
crisis.
● March 2009 Public finances quickly
deteriorate amid a deep recession. The
Irish Republic loses its AAA debt rating,
in a massive blow for finance minister
Brian Lenihan. GDP falls 8.5 per cent
from previous quarter.
● April 2009 Government is forced to
present its second budget in six months
to deal with a fiscal shortfall of over
€4.5bn and a rapidly shrinking economy.
● October 2009 Economy exits reces-
sion with GDP growing by 0.3 per cent,
but GNP continued to contract by 1.4 per
cent.
● July 2010 According to the National
Treasury Management Agency, Ireland
successfully meets its debt servicing
requirements for 2010 and into the sec-
ond quarter of 2011.
● September 2010 Irish officials pre-
pare to sell up to €1.5bn of debt.
CITYA.M. 21 SEPTEMBER 2010
UK triple-A
credit rating
maintained
UK ECONOMY
▲
CREDIT ratings agency Moody’s has
maintained Britain’s triple-A status,
citing the coalition government’s
commitment to fiscal discipline and
the flexibility of the UK economy.
In a major coup for the coalition
government, Moody’s said its deficit-
cutting plans, the long maturity pro-
file of UK government debt and the
likelihood that growth will continue
even in the face of “austere fiscal con-
solidation” all supported a triple-A
rating.
Kenneth Orchard, Moody’s lead
analyst for the UK said while the glob-
al financial crisis caused “serious
long-term damage” to the UK’s bal-
ance sheet, the economy would main-
tain a moderate pace of growth over
the medium term.
Private sector deleveraging, the
uncertain state of the financial sector
and slower growth in the UK’s main
trading partners were still concerns,
he warned.
But Orchard said the budget would
be in surplus by around 2014, and
that the restructuring of the coun-
try’s banking sector would only incur
small additional costs.
The government welcomed the
news. “This supports the govern-
ment’s approach to cutting the
deficit,” said a Treasury spokesman.
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 6 Economic News CITYA.M. 21 SEPTEMBER 2010

US homebuilder confidence
remains stuck at rock bottom
for optimism with the gauge foreclosed properties for sale, suggest-

America’s housing market remains under intense pressure
▲
US ECONOMY
BY MATTHEW WEST
AMERICAN homebuilder confidence
remained unchanged in September,
having fallen to its lowest level for 18
months in August, as concern about
the rate of foreclosures and poor job
prospects continued to dampened
demand, a report said yesterday.
The National Association of Home
Builders (NAHB) report showed home-
Picture: GETTY builders felt there was little reason
unchanged at 13 in September, its
lowest level since March 2009.
NAHB chief economist David
Crowe acknowledged there were
legitimate concerns about the US
housing market but was more opti-
mistic about future months.
He said: “Builders report that the
two leading obstacles to new-home
sales right now are consumer reluc-
tance in the face of the poor job mar-
ket and the large number of
ing a moderate improvement in the
job market will help boost consumer
confidence and improve conditions
for new-home sales in this year’s final
quarter.”
Regionally, across the US, home-
builder confidence fell two points in
the Northeast and three points in the
Midwest, to 16 and 12, respectively.
The South posted a two-point
improvement to 14, while the West
remained unchanged, at 8.

Borrowing at
a 10-year low
slightly different stories, our reading

▲
UK ECONOMY
BY MATTHEW WEST
MORTGAGE lending in the UK hit a
10-year low in August falling to
£11.4bn, down 14 per cent from
£13.3bn in July, the Council of
Mortgage Lenders (CML) said yester-
day.
The figure was also down six per
cent from £12.1bn in August 2009
with the CML warning lending levels
were likely to remain subdued until
the end of the year.
CML chief economist Bob Pannell
warned: “We face a difficult second
half of the year. However, the Bank of
England is likely to keep interest rates
at record lows for longer to support
the economy. This will continue to
alleviate payment pressures for many
borrowers.
“The rise in prices has unsurpris-
ingly run out of steam as a result and
some indicators point to modest falls.
While the various measures tell
of the situation is that there has been
little significant change since the
start of the year. Demand is subdued
and there are signs of more property
coming onto the market following
the abolition of home information
packs.”
The CML figures came as the Bank
of England’s Trends in Lending
report, also published yesterday,
showed UK net mortgage lending
slowed to £0.1bn, while gross mort-
gage lending remained static and
remortgaging continued to be weak.
Generally, the report noted credit
conditions would remain tight for
several months to come.
Pannell said that, while there were
a few more mortgage products avail-
able, “the upcoming need for some
firms to repay the various support
schemes, and replace this with more
expensive market funding, means
access is unlikely to improve in the
immediate future.”

ANALYST VIEWS: HOW SIGNIFICANT ARE

THE CML LENDING FIGURES ? Interviews by Matthew West
ALAN CLARKE | UK ECONOMIST, BNP PARIBAS

“ I think the housing market is going from bad to

worse. We are seeing confirmation that we are already in a

”
double dip recession for housing, and are going to see falling
property prices over the next six months.

GEORGE BUCKLEY| UK ECONOMIST, DEUTSCHE BANK

“ We are seeing a second downturn in mortgage lend-

ing in terms of year-on-year growth. Each time we are being

”
surprised by these figures. But I would say this is more a
stabilisation of the mortgage market.

HOWARD ARCHER | ECONOMIST, IHS GLOBAL INSIGHT

“ They [CML figures] reinforce our suspicion that

house prices are likely to fall by 10 per cent over the final

”
months of 2010 and during 2011 amid unfavourable eco-
nomic fundamentals and low consumer confidence.
CITYA.M. 21 SEPTEMBER 2010 News 7

FSA teams up
WTO predicts with US agency
record trade to monitor firms

during 2010
REGULATION

▲
THE FINANCIAL Service Authority
(FSA) has signed a deal with one of its
US counterparts in a bid to more
closely supervise the world’s largest
securities firms and markets, it said
yesterday.
The FSA signed a memorandum of
▲

WORLD ECONOMY people back to work,” said WTO direc- understanding with the US Financial
BY HARRY BANKS tor-general Pascal Lamy. “It under- Industry Regulatory Authority
scores, as well, the wisdom BayernLB chief executive Gerd Haeusler is looking at rival WestLB Picture: REUTERS (FINRA) on 15 September, agreeing to
INTERNATIONAL trade will grow by a governments have shown in rejecting share information on firms under

record 13.5 per cent this year, bounc-
ing back from a dismal 2009 and sig-
nalling an improvement in economic
activity around the world, the World
Consolidation is imminent
protectionism.” common supervision and collaborate
In 2009, exports worldwide con- on some investigations.
tracted 12.2 per cent – the biggest fall The FSA’s managing director of
since before World War Two – as supervision Jon Pain said: “Given the

as BayernLB eyes WestLB

Trade Organization (WTO) forecast
yesterday.
The WTO had predicted in March
that trade in merchandise goods
would rebound 10 per cent this year
as the world emerged from recession
but revised up its forecast because
demand for goods shrivelled in the
economic crisis, and finance to fund
trade dried up due to the credit
crunch.
WTO economists expect develop-
ing economies and countries in the
former Soviet Union to see exports
▲
linkages between our markets, it is
vital that both regulators cooperate
closely with each other; this [agree-
ment] will enhance the supervision of
firms and financial markets in both
the UK and the US.”
BANKING negotiations are to be held with an FINRA is the largest private regula-

global trade flows had recovered
faster than expected so far this year.
The global commerce umpire now
sees world trade growing at a faster
rate than at any time since the data
was first collected in 1950 as exports
and imports surge, especially in
China and other emerging
economies.
“This surge in trade flows provides
the means to climb out of this painful
economic recession and can help put
expand by a massive 16.5 per cent
after contracting 7.8 per cent in 2009.
Rich countries are set to enjoy an
expansion of 11.5 per cent after a
slump of 15.3 per cent last year.
Trade growth is likely to be less
impressive in the second half of this
year than in the first six months, as
the expiry of fiscal stimulus meas-
ures and post-recession restocking
restrains output growth, the WTO
said.
BY HARRY BANKS
BAYERNLB is interested in snapping
up fellow German lender WestLB, a
source close to the Munich-based
bank said yesterday.
The move comes amid a fresh push
for consolidation among state-con-
trolled landesbanks in Europe’s
biggest economy.
“The considerations are at a very
early stage,” the source said, adding
open outcome. tor of securities firms operating in
The WestLB supervisory board dis- the States, and has contracts to over-
cussed BayernLB’s offer to hold talks see several markets including the
at a meeting yesterday, a source close New York Stock Exchange and NAS-
to WestLB added. DAQ.
German Finance Minister Chief executive and chairman
Wolfgang Schaeuble recently Richard Ketchum said in a statement
launched a new campaign to merge yesterday: “To ensure consumer pro-
publicly-owned landesbanks, which tection and market integrity in
suffered in the credit crisis and could today’s global market, regulators
lose support more quickly under new must work together with key regula-
capital rules. tory partners.”

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CITYA.M. 21 SEPTEMBER 2010 News 9

Cracks start to appear in the

coalition over business plans
per cent of Tories are in favour of the thorny issue, with 87 per cent of Tories

▲
POLITICS
BY STEVE DINNEEN
THE two sides of the coalition look set
to clash over a string of key business
issues, according to a British
Chamber of Commerce (BCC) survey
of MPs.
One potential battleground is the
forthcoming appointment of outgo-
ing HSBC chairman Stephen Green as
full-time trade minister. Around 62
move, but half of the Lib Dems feel
the role is unnecessary.
There is also a gulf in opinion
between the two sides over invest-
ment in infrastructure. Lib Dems are
70 per cent in favour of maintaining
or increasing this area of expendi-
ture, a sentiment echoed by business
leaders. However, only 27 per cent of
Tories agree.
Employment law also looks to be a
saying the balance of power had shift-
ed too far towards the employee.
Around 71 per cent of Lib Dems dis-
agree.
David Frost, Director General of the
BCC, said: “We are concerned about
some of the gaps opening up between
ministers and their parliamentary
parties. This is a critical week for Nick
Clegg to re-state the importance of
business growth to his party.”

Get on your bike on your

Leader Nick Clegg with wife Miriam following his speech Picture: GETTY
City Break to Holland

Lib Dem revolt

overshadows
Clegg speech
LIB DEM
CONFERENCE
BY DAVID CROW
NICK CLEGG launched an impas-
sioned defence of his decision to cut a
power sharing deal with the Tories
yesterday, after his party issued a
stinging rebuke over the coalition’s
education plans.
Speaking in his keynote address to
the Liberal Democrat party confer-
ence, Clegg said the party had not
“lost its soul” by signing up to a
Conservative-led government.
He said swingeing spending cuts
were the “only choice” if Britain is to
plug its yawning Budget deficit, and
accused the former Labour govern-
ment of bringing “the country to the
brink of bankruptcy”.
But Clegg’s speech was overshad-
owed by a massive revolt over the
coalition’s schools policy. Party mem-
bers overwhelmingly passed a motion
opposing plans to create more acade-
mies and free schools, which are free
from local authority control.
The motion, which took party lead-
ers by surprise, said there was a risk
that the new schools would increase
“social divisiveness and inequity in a
system that is already unfair”.
The defeat is particularly troubling
for the Liberal Democrats because
members are supposed to set official
party policy at conference. That
means the party leadership is in the
uncomfortable position of promoting Visit Amsterdam,
a policy that has been vetoed by grass
roots members. Rotterdam & The Hague
Clegg was forced to hastily rewrite
part of his speech following the All within 35 mins of Amsterdam Airport
revolt. He insisted the policy – which
has been enthusiastically backed by
both coalition parties – was compati-
ble with Liberal Democrat values.
He said: “It wouldn’t be a Liberal
Democrat conference if we didn’t
London to
Amsterdam
have a motion that provoked strong
passions on both sides. The great
thing is that all Liberal Democrats
share a passion for education.”

DEMOCRATIC don’t like a policy, the leaders are sup-

from
TRADITION POSES posed to drop it. Nick Clegg even had
HEADACHE FOR LIB
DEM MINISTERS

For most parties, a grass roots revolt

to ballot members at an emergency
assembly before he went into a coali-
tion with the Tories.
The Lib Dem leadership is in an incredi-
bly tricky position. Now that the
motion attacking academies and free
schools has been passed, the party is
supposed to campaign against the poli-
£
29 .99
single
inc. taxes

wouldn’t be much of a problem. Tony
Blair was famous for pursuing policies
that upset rank-and-file Labour mem-
bers, while David Cameron has taken
the Tories in a direction that has
annoyed many among the party faithful.
But the Lib Dems are different. Their
conference is seen first and foremost
as a policy-making forum. If members
cy. But the legislation has already been
passed and Lib Dem schools minister
Sarah Teather (pictured) is responsible
for ensuring it is effective.
The democratic tradition has attracted
members interested in setting policy
rather than simply carrying cards. But We fly from Gatwick, Luton and Stansted. Price correct as at 8 September 2010. Available to book now for travel
it is a headache for a party that is now between 31 October 2010 and 26 March 2011. Variable charges for hold baggage apply and some payment
in government – not opposition. methods attract a handling fee. See website for details.
CITYA.M. 21 SEPTEMBER 2010
Paul Compton is still awaiting FSA clearance
Safran pens
deal with
BAE for L-1
▲
DEFENCE
BY HARRY BANKS
FACE-RECOGNITION software maker
L-1 Identity Solutions is being sold to
Safran and BAE Systems, two top
European defence firms.
French group Safran confirmed a
$1.09bn (£701m) cash deal to buy the
US security company and its core bio-
metric business in a move that will
also see British defence company BAE
Systems extend its reach in the US.
L-1’s shares rose 20 per cent to be
the top gainer in early New York trad-
ing after state-controlled Safran said
it would offer 24 per cent more than
L-1’s closing share price of $9.70 on
Friday, which valued the four-year-
old company at $900m.
The $12 per share deal will go
ahead if L-1 completes a plan to sell
its government consulting arm to
BAE for $296m.
The $12 per share offer from
Safran, which makes aero engines,
military goggles and security equip-
ment, matched the top end of analyst
forecasts seen before the announce-
ment.
“Great things come at a justified
price,” said Safran finance director
Ross McInnes.
The shake-up is the latest sign of
mid-tier security and defence firms
getting snapped up by traditional
arms suppliers.
As major contractors face sharp
cuts in defence budgets, they are
steadily targeting smaller players
with niche technologies in cybersecu-
rity, civil security, surveillance and
intelligence -- which is a deliberate
shift in corporate focus from bombs
to bytes.
L-1’s face-recognition and other
biometric products are used by gov-
ernment agencies for improving
security and border management
and commercially at financial insti-
tutions.
CITY VIEWS: SHOULD 9,000 PUBLIC SECTOR WORKERS BE PAID MORE THAN THE PRIME MINISTER?
AZHAR KHAN | NOMURA
“Given the importance of our PM's
role and the decision making
involved, his salary does not
make economic sense to me. I
think he deserves to be compen-
sated more.”
Compton role put on hold
▲
STOCKBROKING
BY DAVID HELLIER
PAUL Compton, the former Toscafund
hedge fund manager, is still waiting
for FSA clearance before being able to
take up his new role at the small com-
panies broker WH Ireland.
Compton, who worked at Merrill
Lynch and Collins Stewart before join-
ing Toscafund, has had the summer
GARETH MORTIMER | ADVANTAGE PROFESSIONAL
“I think it’s understandable. It seems
like rather a high number. It certain-
ly doesn't bother me that a doctor is
paid a high salary, but very highly
paid managerial roles should not
exceed the PM’s salary.
News 11
off waiting to assume his new role at the group had applied to the FSA for
WH Ireland. He joined the firm in approval of the new appointment and
September and has already been that it was now awaiting the outcome
active in the hiring process. of the application.
But yesterday it emerged that Sources close to the company said
chairman Rupert Lowe and finance they hoped approval would come
director Nigel Gurney are soon, but some in the City expressed
undertaking the chief executive’s role surprise that it had not come already.
at the company pending Compton’s Former chief executive Richard
clearance by the FSA. Ford decided to quit the group in May
A statement from WH Ireland said after two years.
EU targets
commodity
speculation
▲
FINANCIAL SERVICES
BY MARION DAKERS
EUROPEAN markets supremo Michel
Barnier yesterday said he was prepared
to crack down on speculation in the
commodities market, as he called for
greater transparency in bond and
derivatives trading, and dark pools.
He used his speech on reform of the
EU’s Markets in Financial Information
Directive (MiFID) rules to announce
plans to examine pre-trade transparen-
cy.
“The revision of MiFID is one of the
key elements of an ambitious reform
of the raw materials markets,” the
EU’s financial markets chief said,
stressing that commodity market reg-
ulation was high on his agenda.
He added: “The revision of MiFID
will not leave the questions which
were brutally asked by the crisis with-
out answers.”
MiFID was introduced in 2007 and
unleashed fierce competition, result-
ing in cheaper trading, smaller order
sizes, hammered margins, fragmented
share prices and upstarts winning
chunks of business from traditional
exchanges.
He said the EU’s plans for a bloc-
wide financial regulator alongside
new MiFID rules will aid transparency
in all trading markets, and warned:
“We are ready to go further. This is a
key issue. We will not hesitate to con-
sider further measures.”
EU agriculture minister Dacian
Ciolos also laid into the futures mar-
kets at the same conference.
“We need to go further, especially
today on the issue of position limits to
counter excessive movements,” he
said in his speech.
He added: “The role of futures mar-
ket is not to feed speculation and some
actors’ profits. The role of futures mar-
kets is to offer tools to anticipate, man-
age volatility and contribute to the
matching of supply and demand.”
Interviews by Alasdair Peoples and Victoria Scholar
MIKE JORDAN | HISCOX
“The Prime Minister's job involves a
great deal of pressure and respon-
sibility. I have always been sur-
prised that it isn't one of the
highest paid jobs in the country.”
 The Capitalist
12
CITY BOSS
FINDS SLICE
OF ARCTIC
HISTORY
REGULAR readers will remember Tim
Levy, the bold chief executive of alterna-
tive investment firm Future Capital
Partners, who last month set off on a gru-
elling expedition to the Arctic with one of
his best mates, hare-brained TV adventur-
er Bear Grylls.
Levy and Grylls – famed for his creepy
crawly-eating escapades on Channel 4’s
Born Survivor – headed off to the former-
ly frozen NorthWest Passage in order to
raise awareness of the effects of climate
change, completing the mission in a
souped-up, oversized rubber dinghy.
But I hear that the spirited pair experi-
enced more than they had ever dreamed
of when they stumbled upon what could
turn out to be a history-altering discovery
– human bones, makeshift graves and
scraps of clothing on a tiny frozen island.
The most likely explanation for the dis-
covery, according to historians, is that it
marks evidence of the last moments of
famous Arctic explorer John Franklin,
who disappeared in the Passage in 1845.
The wreckage of his vessels have never
been found, though the discovery by Levy
and Grylls of the remains of large fires on
their miniscule island suggest that
Franklin and his crew may have resorted
to burning their ship in desperation, in
the hope that a search mission would see
the smoke.
“That particular channel is only about
12 feet deep, so only boats with the flat-
test hulls can pass through it,” Levy tells
me. “That means that the island would
have seen virtually no human activity
before we came across it in the inflatable
boat. It’s a potentially momentous discov-
ery.”
It’s quite a break from the old day job,
at any rate.
TOP TRUMPS
What’s this, a Hollywood snub for US busi-
ness mogul Donald Trump?
Trump was one of several business
luminaries who were asked to film cameo
appearances for the second Wall Street
movie, “Money Never Sleeps”.
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
“Future
Capital boss
Tim Levy and
daredevil
adventurer
Bear Grylls
made an
astonishing
discovery”
Daredevil TV adven- thing to go by. The card firm has been in
turer Bear Grylls, touch to let The Capitalist know about a put-
above, accompanied ting green it will be installing at Canary
Future Capital Wharf later this month – with the surface
Partners boss Tim lined entirely with almost half a million
Levy, inset, on his pounds of banknotes (something to do
Arctic adventure with cashback when you spend on its
Platinum card).
Pictures: GETTY So what, I venture, will happen to the
banknotes after financial workers have
trampled all over them?
Apparently, £1,000 goes to the quickest
putter on the “green”, with a small cut
going to charity and the rest destined to
be tipped straight back into the firm’s cof-
fers. Perhaps times still aren’t quite so rosy
Trump’s Hollywood scene got the thumbs down after all.
But despite the billionaire giving up his
precious time in anticipation of stardom,
the scene – in which Trump advises the
SYMPATHY CARD
A ripple of sympathy yesterday at the City
film’s leading man Gordon Gekko (played Week financial services forum, as
by actor Michael Douglas) on a hairstyle Deutsche Bank’s UK chief executive
when the pair end up sitting next to each Colin Grassie bemoaned the downside
other in the barber’s – has not made the of working in his profession.
cut for the final big screen version of the “It’s a pleasure to be invited here,”
film. Grassie began. “Frankly, as a banker
“I only cut it because it was distracting,” it’s been a pleasure to be invited
director Oliver Stone tells the New York anywhere in the last couple of
Post. “He was at the end of the movie and years…”
all of a sudden, ‘Hey, there’s Donald At least his audience under-
Trump!’ Structurally, I think we put him stood what he’s been going
in too late...” through.
Trump fans needn’t despair, though –
the scene is due to be left in when the film
is eventually released on DVD. PLUM PUDDING
Most firms ensconced with-
in the older buildings of the
BANK ROLLING City will be aware of the his-
The good times must be back, if the latest tory of their surroundings,
gimmick from American Express is any- though law firm Berwin
CITYA.M. 21 SEPTEMBER 2010
Empire plum puddings have roots in the City
Leighton Paisner’s headquarters probably
have a stranger claim to fame than most.
The building – Adelaide House, just
next to London Bridge – was once the
tallest building in the City (how times
have changed), and also bears the dubious
distinction of having been the birthplace
of George V’s favourite pudding.
Apparently, the king had a special
Empire plum pudding made for him in
1927, which was mixed in an elaborate cer-
emony on the firm’s rooftop and subse-
quently carried amid much pomp and
circumstance to the Mansion House to be
devoured.
ALL FALL DOWN
Another candidate to add to the growing
list of trinkets “commemorating the cri-
sis”. It’s a game akin to the ever-popular
“Jenga”, but this time each of the 54
blocks represents one of the events or fac-
tors which contributed to the global finan-
cial meltdown.
Different blocks represent former presi-
dent George Bush, his succes-
sor President Obama,
Ponzi fraudster Bernie
Madoff, failed banks
Bear Stearns and
Lehman Brothers,
and everyone’s
favourite crisis demon,
collateralised debt obli-
gations (CDOs).
“What better way to
relive the financial turmoil
than to grab some family or
friends and try to build your
own financial fortress that’s
too big to fail,” shouts the website
for the game, “Collapse!”.
Predictably, the next step is to
gently tease out the blocks one by
one until the entire structure falls
down, though the “reminiscing about
the bad old days”, as the game sug-
gests, is optional.

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News 13
Petra results
sparkle after
stone sale
▲
MINING
PETRA Diamonds announced record
pre-tax annual profits of $70.2m
(£45.1m) yesterday, in a remarkable
turnaround from the losses of $89m
it announced in2009.
Gross revenue at the mining com-
pany also increased to $177.7m for the
year, up 88 per cent on the $94.4m
recorded in the 12 months to 30 June
2009.
The mining company, which owns
six diamond mines in South Africa,
attributed the turnaround in part to
the discovery of a 507 carat rough dia-
mond in its Cullinan mine with the
rare stone netting $35.3m, the high-
est ever price paid on record for a
rough diamond.
Petra also put the turnaround
down to the recovery in the diamond
market and rough diamond prices
from the previous year’s downturn
when global production fell 25 per
cent.
It added the past twelve months
had seen an increase in the volume
and value of imported polished dia-
monds and consumer sales in the
North American market.
Petra chief executive Johan
Dippenaar, said the company had
experienced an “exceptional year’
adding: “The outlook for the dia-
mond market is positive, with a sig-
nificant supply gap anticipated in the
coming years as demand continues
apace in emerging markets.”
Diamond firm
is investor’s
www.theheron.co.uk best friend
0844 544 9030 DIAMONDS are a shareholder’s
sales@theheron.co.uk best friend. Yesterday’s prelims
from Petra cap a year that has been
full of positives. A six per cent
increase in gross production to
1.16m carats a year and a bigger
stake in the Cullinan mine, from
37 per cent to 74 per cent, were the
main underlying factors. But it
was the sale of a 507 carat stone
for $35.3m that really flattered the
results, and shareholders should
remember this before getting too
carried away. These numbers are
good – but they’re not as good as
first seems.
That shouldn’t detract from an
impressive performance. Ongoing
operations are doing well, allow-
ing the firm to focus on extracting
maximum value from its recent
acquisitions, especially the
Cullinan and Williamson mines.
The latter is on track to more than
double production to 2.5m carats
by the end of 2014-15.
Meanwhile, the market for dia-
monds goes from strength to
strength. Petra says it recent ten-
ders show a “substantial improve-
ment” in prices while the US
market is finally on the up. These
shares mightn’t be forever – but
they’ll certainly do for now.
BOTTOMLINE
Analysis by David Crow
 14 News CITYA.M. 21 SEPTEMBER 2010

Caan eyes luxury houses

as he teams up with K10
become the market leader in luxuri- on what he describes as “the golden
▲

PROPERTY
BY VICTORIA SCHOLAR
JAMES CAAN, the entrepreneur best
known for his role in the BBC TV pro-
gramme Dragon’s Den, has joined
forces with Kam Babaee of K10
Developments to launch Hamilton
Bradshaw Real Estate (HBRE).
The new venture aims to combine
Caan’s investment insight with the
K10 Developments’ experience in high-
end central London development to
ous residential property.
HBRE is ambitiously positioning
itself to rival Candy & Candy’s One
Hyde Park development, targeting
properties “within a five minute taxi
from Knightsbridge” and representing
“aspirational London living”.
HBRE is currently working on its
first development acquisition, valued
at over £20m and is looking to invest
over £100m over the next two years.
Caan plans to focus his investment
triangle” – Knightsbridge, Chelsea
and Mayfair.
Caan said: “The market for luxury
flats is indeed saturated but we are
focusing on bespoke homes, targeting
individual homebuyers and offering
them quality. High end London prop-
erty has been extremely resilient in
the downturn and while supply is
scarce demand is still plentiful for
luxury homes. This is a great opportu-
nity for us.”
James Caan wants to develop “aspirational” houses Picture: Micha Theiner/City A.M.

JAMES CAAN and turnarounds in the UK. Besides his

ENTREPRENEUR
INVESTOR, entrepreneur and philan-
thropist James Caan who left school
at 16 (later attaining a degree in busi-
ness from the Harvard management
school) now acts as CEO of private
equity firm Hamilton Bradshaw.
Founded in 2004, the firm specialises
in real estate, buyouts, venture capital
entrepreneurial work Caan is known
for charitable efforts, being appointed
chairman of The Big Issue in
December 2009. His role was to instill
a sense of entrepreneurship into the
company and modernise its approach.
Beyond this, Caan was responsible for
setting up the James Caan Foundation
in 2006 to help children’s education in
Pakistan. Caan, a father of two, lives in
London with his wife Aisha.

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 16 News
Unite to wage
legal war on
BA in courts
▲
AVIATION
BY EMMA SADOWSKI
TRADE union Unite is preparing to
wage a legal war on British Airways
(BA) as the fight between the two gets
set to hit the courts once again.
Unite is to launch a legal battle at
the High Court this week over the
removal of travel perks for up to 7,000
cabin crew who went on strike for 22
days this year at a cost to BA of
£150m.
The dispute over travel perks,
which include heavily discounted
fares, are a bitter point of dispute
between BA and Unite.
A date has not been set for the
appearance but Unite said it is expect-
ed before the end of the week.
A Unite spokesperson said: “We are
being forced to defend our members
and their rights to just treatment in
the court room because BA refuses to
play fairly at the negotiating table.”
In a similar move, Unite will come
head to head with the British flag-car-
rier in the Court of Appeal on 11 and
12 October, over claims that BA’s
reduction of crew numbers on long-
haul flights was a breach of contract.
Unite took BA to the High Court
earlier this year over the disagree-
ment, but the court threw out the dis-
pute and ruled in BA’s favour.
“The ruling found that the modest
changes to onboard crew numbers on
flights from Heathrow were reason-
able, did not breach crew contracts
and could therefore remain in place.
We will defend our position vigorous-
ly,” said BA.
Unite will also head to the
European Court of Human Rights by
the end of this month to challenge
the UK government’s interpretation
of ballots held for industrial action.
FAST FACTS | UNITE LEGAL ACTION
● This week: Unite takes BA to High Court.
● This month: Unite heads to the European
Court of Human Rights over UK balloting laws.
● Next month: Unite takes BA to Court of
Appeal.
CITYA.M. 21 SEPTEMBER 2010
Flybe looks at
expansion after
profitable year
AVIATION
▲
FLYBE, the UK’s largest domestic air-
line, has flown back into profit
despite the damaging effects of the
recession on the commercial aviation
industry and has set its sites on
expansion in Western Europe.
Pre-tax profit excluding one-off
items in the year to 31 March 2010
came to £5.7m, marking a rise from
last year when profits were just
Flybe boss Jim French has struck a number of deals with rivals this year Picture: GETTY £100,000.
Chief executive Jim French said:
ANALYSIS l Flybe 2010 full year results “Against a backdrop of the continued
impact of the recession and the
effects of extreme volatility in fuel
prices, Flybe grew its market share.”
Revenue £570.5m However, underlying profit fell
from £12.8m to £6.8m during the
year, despite flat passenger numbers
of 7.2m.
Revenue for the year also remained
Pre-tax profits £5.7m flat at £570.5m, despite the airline
taking a £12m hit from the closure of
airspace in April and May due to the
Icelandic volcano.
But Flybe management is eyeing
Net debt £21m expansion in Western Europe.
The airline has already struck an
operational agreement with Olympic
Air in Greece and has signed a code-
sharing deal with Air France. The
Passenger numbers 7.2m firm is also in talks with Finnair
about regional services in the Nordic
region.
CITYA.M. 21 SEPTEMBER 2010
IBM bids $2bn
for analytics
firm Netezza
▲
TECHNOLOGY
BY STEVE DINNEEN
IBM yesterday said it will buy data
analytics company Netezza for $1.7bn
(£1.1bn) in a bid to expand its technol-
ogy services business.
It hopes the acquisition will help
its clients more expertly analyse mar-
ket information as it shifts its focus
from computer hardware to higher-
margin software and services.
The deal values Netezza at $27 per
share, a 9.8 per cent premium from
Friday’s closing price of $24.60.
Analysts are now speculating a
rival bidder could emerge, pushing
the price up even higher.
Massachusetts-based Netezza sells
appliances that combine analytical
software and hardware to clients
such as online dating site eHarmony
and financial exchange operator
NYSE Euronext.
IBM said the speed of Netezza’s
technology had convinced it to buy
the company. The two are currently
partners, with Netezza using IBM
hardware.
Arvind Krishna, general manager
of information management at IBM,
said analytics, which accounted for
about $9bn of IBM’s $95.8bn in rev-
enue last year, was a significant
growth opportunity for the company.
IBM said in May it planned to spend
about $20bn in acquisitions through
2015 to expand its software and serv-
ices business. The firms said they
expect the deal to close in the fourth
quarter. The deal includes a termina-
tion fee of $56m, according to a regu-
latory filing.
The agreement also comes amid a
resurgence in mergers and acquisi-
tions activity. Last month saw an
unseasonable burst of deal making,
with data showing announced deals
totaled $262bn, the highest for an
August since 1999.
Analysts have said this could con-
tinue, helped by low interest rates,
record cash holdings and low stock
market values, with ambitious firms
striving to become one-stop shops sell-
ing everything from networking and
servers to software and services.
ANALYSIS l IBM
132 p Corp (UTC) over a takeover or financ-
131.84
21 Sep
130
128
126
124
122
21 Jun 19 Jul 30 Jul 19 Aug
Clipper chief executive Mauricio Quintana joined the firm from UTC
Clipper in talks with UTC
over possible takeover
ENERGY
▲
BY STEVE DINNEEN
WIND turbine maker Clipper
Windpower is in talks with major
shareholder United Technologies
ing deal as it seeks additional capital
to continue operating.
Clipper, which is burning
through cash, said UTC had indicat-
ed it would be willing to acquire the
remaining shares in Clipper it does
not already own, subject to due dili-
gence and other terms and condi-
tions.
9 sep UTC may now increase its stake to
55 per cent after invoking a cash out-
flows clause in the subscription
agreement signed earlier this year.
It had previously been limited to a
49.9 per cent stake until January
2012. Clipper said along with the
acquisition talks, it is also looking at
raising capital and credit lines with
financial providers and negotiating
with UTC on additional credit sup-
port.
It expects revenue to fall to
between $150m (£96m) and $154m
from $357.3m after selling only 43
turbines in the last quarter, com-
pared with 127 for the same time last
year.
News 17
HP and Oracle
sign agreement
over transfer of
Mark Hurd
▲
TECHNOLOGY
BY HARRY BANKS
HEWLETT-PACKARD said yesterday it
has settled a legal dispute over
Oracle’s hiring of Mark Hurd.
The companies did not disclose the
terms of the settlement, but said in a
joint press release that, “Hurd will
adhere to his obligations to protect
HP’s confidential information while
fulfilling his responsibilities at
Oracle.”
In a filing with the US Securities
and Exchange Commission, HP said
Hurd has agreed to modify the terms
of his separation agreement.
HP said Hurd has agreed to waive
his rights to the 330,177 performance-
based restricted stock units granted to
him in January of 2008, and to the
15,853 time-based restricted stock
units granted to him in December
2009.
Oracle announced the hiring of
Hurd as co-president earlier in
September, roughly a month after he
was ousted as HP’s chief executive. HP
said he filed inaccurate expense
reports related to a female contractor.
HP sued Hurd shortly after Oracle
hired him, and sought to block him
from joining the company.
But the companies reaffirmed their
commitment to their partnership on
yesterday.
“Oracle and HP will continue to
build and expand a partnership that
has already lasted for over 25 years,”
said Oracle boss Larry Ellison.
 18 Consumer News CITYA.M. 21 SEPTEMBER 2010

NEWS | IN BRIEF
Ivy founder in Middle East deal
Foster’s wine in the
sights of US private
Richard Caring, the entrepreneur behind
The Ivy, Rivington Grill and Scott's has
signed a joint venture with Jumeirah,
the Dubai-based hotels and leisure busi-
ness. The deal allows Jumeirah to open

equity businesses
restaurants under the Caring brands.
There is already a Rivington grill in
Dubai, which opened in 2008. It is
understood Caring's holding company,
Caprice, will provide senior staff on a
consultancy basis. The aim is to “pay
tribute” to the restaurants rather than
produce replicas, say those close to the M&A after spending around A$7bn (£4.2bn)

process. Caring has an estimated for-
tune of £350m.
Queenco in Cambodia move
Hotel and casino operator Queenco
Leisure is moving into Cambodia.
It yesterday signed a joint-venture deal
with Paradise Investment to open a
hotel, casino, restaurant and karaoke
premises. This is Queenco’s first move
into Asia, though it has businesses in
Greece, Belgrade and Bucharest. It will
own 70 per cent of the Cambodian ven-
ture, which will initially be based at the
Holiday Palace Hotel in Sihanoukville in
Cambodia. Queenco is to pay for renova-
tions to the property, including the
development of a new wing for the
hotel. A long-term lease of 25 years has
been agreed, with an option for a fur-
ther 25 years after that should the ven-
ture prove a success.
▲
BY HARRY BANKS
PRIVATE equity firms Kohlberg Kravis
Roberts and TPG have held early talks
about teaming up to bid for the wine
unit of Australian brewer Foster’s.
The pair are yet to decide whether to
proceed either together or separately,
according to reports in Australia.
In 2007, KKR and TPG united to take
Texas-based Energy Future Holdings,
formerly TXU, private in the largest
leveraged buy out ever.
The latest talks come after Foster’s
rejected a private equity offer this
month worth up to $2.5bn (£1.6bn) for
its underperforming wine business,
saying the bid was too cheap.
Foster’s wants to continue with
plans to separate its beer and wine
businesses, with top brands including
Foster’s has already rebuffed one offer for its wine business Picture: REUTERS Penfold’s, Beringer and Wolf Blass,
buying wine assets at the top of the
market.
The wine business, rebranded as
Treasury Wine Estates, is seen as
attractive to buyout firms because of
depressed earnings at the weak point
of the wine-making cycle, and strong
brands.
TPG had held about 55 per cent of
Beringer with some partners when it
sold to Foster’s in 2000.
Last year KKR bought the South
Korean subsidiary of Oriental Brewery
from Anheuser-Busch InBev.
Meanwhile, SABMiller, one of the
world’s largest brewers, was reportedly
mulling a $10.9bn acquisition of
Carlton and United Breweries (CUB),
the beer making arm of Fosters Group
Ltd.
However, no official offer has been
forthcoming.

Retail chiefs in call

for rates shake-up
RETAIL of a period of grace in which busi- “We’re urging the Government
▲

BY JOHN DUNNE
RETAIL chiefs have demanded that
the government changes the way it
calculates business rates to help
struggling shops to stay afloat.
The current rate is partly based
on September’s Retail Price Index
(RPI) which is expected to be
around four per cent.
But the British Retail
Consortium (BRC) has called on the
coalition to find an alternative
measure as the retail sector strug-
gles to find its feet after the reces-
sion.
Some retailers would be hit with
a 22 per cent rise in April, accord-
ing to the BRC.
That is partly because of the end
nesses were given some relief from
steep rises because of the dire state
of the economy. The business rate
is pegged to the market rate for
commercial property as well as RPI.
The BRC has written to the secre-
tary of state detailing its fears if
business rates are hiked at a time
when consumer confidence is
weak, with a looming jobs cull in
the public sector.
BRC director general Stephen
Robertson said: “One large retailer
estimates every extra RPI percent-
age point could add £1.3m to their
business rate costs.
“September’s RPI is expected to
be above four per cent but few
retailers have budgeted for increas-
es as large as four to five per cent.
to use alternatives to September’s
RPI to calculate next April’s bills.”
BRC campaigning saw a one year
exemption for empty properties
with a rateable value of less than
£15,000 in 2008.
This qualifying limit was later
increased to £18,000 and extended.
This relief will last into 2011 but
the BRC wants it extended again
until 2012.
Robertson added: “The business
rates blow will undermine retail-
ers’ ability to create and maintain
jobs and to contribute to the suc-
cess of town centre regeneration
projects. Retailers need more pre-
dictability and a permanent move
to a more stable way of calculating
business rates.”

House of Fraser plans to set up shop

out of town in bid to boost revenues
▲

RETAIL called HOF. although Debenhams and John

DEPARTMENT store chain House of
Fraser is understood to be drawing
up plans to open out-of-town stores.
House of Fraser has hired proper-
ty agency DTZ to find out-of-town
stores as precious city centre space
becomes more difficult to find.
It would be the first time that
the department store has opened
stores outside city centre or shop-
ping centre sites.
Indeed, in October 2007 it was
reported to have been considering
opening smaller format stores
According to reports this week
the department store is consider-
ing opening in locations with the
correct catchment area where it
doesn’t already have a town or
shopping centre store.
The size and format is not clear
House of Fraser
chief executive
John King is look-
ing at out-of-town
opportunities
Lewis have both opened smaller
store formats to combat the moth-
balling of property deals in town
centres.
House of Fraser recently
launched plans to breathe new life
into the Biba label, which it bought
in November last year.
Biba concessions will open in 61
House of Fraser stores nationwide
by Spring. House of Fraser will look
to return the brand to its roots,
described by chief executive John
King as “fashionable clothing at an
affordable price”.
 20 News CITYA.M. 21 SEPTEMBER 2010

French authorities THE TOP TEN GLOBAL FINANCIAL CENTRES

2010
Rank
2010
Rating
2009
Rank
2009 Change in Change in
Rating Rank Rating

fine 11 banks after London 1 772 1 775 - -3

price-fixing probe 1. 6. New York

Hong Kong 3
2 770

760
1

3
775

739
-1

-
-5

21

BANKING at €100m and Natixis parent BPCE at

▲

BY ALASDAIR PEOPLES €91m. HSBC received a fine of €9m. 2. 7. Singapore 4 728 4 733 - -5
The fines were set according to
ELEVEN banks, including UK giant each bank’s market share of cheques
HSBC, were yesterday fined €384.9m in France, its weight in the economy Tokyo 5 697 5 692 - 5
(£323m) for colluding to fix the price and past practices.
they charge for handling cheques. A spokeswoman for BNP Paribas,
The French competition authority which was fined €63.3m, said the Shanghai 6 693 11 668 5 25
found that the banks acted in concert bank was “surprised” at the decision 3. 8.
to set interbank cheque fees on 80 per because the cheque fees had been
cent of cheques circulating in France conceived as “transitional” measures
between January 2002 and July 2007, with full transparency and in full Chicago 7 678 6 678 -1 -
during the transition to a new digital view of the authorities.
system for processing cheques. The competition authority is also
The banks, which include Credit investigating interbank card charges 4. 9. Zurich 8 669 7 677 -1 -8
Agricole and BNP Paribas along with and will deliver a verdict in 2011.
British based HSBC, will be able to A pan-European study published by
appeal against their fines in court but the European commission in Geneva 9 661 8 671 -1 -10
must pay them regardless, a spokes- September 2009 put France among
woman for the competition authority the worst offenders for high bank
said. account charges. It cited high debit
The biggest individual fines were card charges among the contributing 5. 10. Sydney 10 660 9 670 -1 -10
for Credit Agricole and subsidiary LCL factors.

| PROMOTION
Hong Kong gains
10
.10
.20
10

Head chef Anna Hansen

at The Modern Pantry

Win a meal for two at this year’s most

ground on the City
exclusive London food event, thanks to UK ECONOMY
▲

The report prompted Stuart pant growth of the Chinese econo-

BY MATTHEW WEST Fraser, policy chairman at the City my. Projections suggest the econo-
American Express® THE government was warned yes-
of London Corporation, to warn
that uncertainty over UK tax policy
my will have grown by seven per
cent by the end of the year.
terday not to risk London’s position and future restrictions on pay and Those financial centres, which
American Express 10-10-10 is a landmark three course lunch for two at one of the as the world’s largest financial cen- bonuses could “combine with a have fallen down the index include
culinary event created in celebration of the participating restaurants, The Modern tre as a report showed the City and less hospitable business environ- Jersey, the Isle of Man, Bermuda
New York losing ground to Hong ment making it difficult for firms and the Cayman Islands all of
company’s partnership with the London Pantry with head chef Anna Hansen, who is Kong. to recruit the staff required to which have suffered as a result of
Restaurant Festival. The event is selling out partnering with Frances Atkins from The Hong Kong has now joined New meet their corporate objectives.” intergovernmental regulatory
fast, so tickets are in high demand. Yorke Arms in Yorkshire. York and London as one of the “Big Fraser added: “The City under- action jeopardising their position
Taking place on 10 October 2010, London Restaurant Festival is a citywide Three” financial centres for the stands the need to minimise risk as tax havens
American Express 10-10-10 will see ten celebration of eating out, designed to show- first time, according to the latest and to repair the damage to our Fraser’s remarks come a week
celebrated chefs from outside London join- case London's extraordinarily diverse and Global Financial Centres Index, public finances but we must also after the London Stock Exchange
while Singapore was ranked as the seek to retain a business environ- warned government proposals to
ing forces with ten of their equally exciting range of restaurants. From 4-18 fourth largest. ment that allows London to contin- merge the UK Listing Authority
renowned London peers to offer a unique October 2010 food lovers can explore some Launched in 2006 the eighth bi- ue to attract the top firms and the with the Financial Reporting
collaborative menu for Sunday lunch. of the capital’s finest cooking, from its high- annual report, conducted by Z/Yen top talent from around the world.” Council would damage the City’s
Pairings include Michelin Two Star chef profile Michelin-starred restaurants to Group, ranks 75 global financial Hong Kong has steadily closed competitiveness as a global finan-
Claude Bisi at Hibiscus with Alain Roux coveted neighbourhood bistros. centres based on senior industry the gap to London and New York cial centre and ultimately costs
figures’ perceptions of each. over three years reflecting the ram- jobs.
from The Waterside Inn in Berkshire and The event forms part of American
Michelin One Star chef Anthony Demetre at Express’ award winning Preferred Seating

German bank lobby warns new rules

Wild Honey with Tom Kerridge from The
Hand and Flowers in Marlow.
City A.M. has teamed up with American
Express to offer you the chance to win a
For more information, visit londonrestaurantfestival.com
TO BE IN WITH CHANCE OF WINNING THIS FANTASTIC PRIZE,
SIMPLY ANSWER THIS SIMPLE QUESTION:
Programme, which provides Cardmembers
with exclusive offers to a host of entertain-
ment and cultural events, helping them to
create some truly memorable moments.
will choke profits and hurt growth
▲

BANKING Deutsche Bank and Commerzbank. said would result.

Name one of the chefs that is participating
in American Express 10-10-10? NEW banking rules and levies
aimed at preventing future finan-
cial crises will choke profits and
PLEASE SEND YOUR ANSWER AND CONTACT may threaten economic growth,
the trade lobby for Germany’s big
DETAILS TO lucky@cityam.com banks said yesterday.
The Basel III changes to banking
TERMS & CONDITIONS: The prize is a lunch for two at The Modern Pantry in Clerkenwell, London on 10 October 2010. The cost of the meal
capital rules adopted this month
is capped at £200 for two people inclusive of drinks. The prize is non refundable and non-transferable. The promoter is American Express and went in the right direction but,
the promoter reserves the right to change the prize to one of equivalent or greater value without notice. Entry in to the promotion is free and taken in context with a raft of other
no purchase is necessary. Entrants must be aged 18 and over. Accommodation and travel are not included. The closing date is 11:59pm on 21 proposed taxes and reforms, vastly
September 2010. The winner will be drawn at random from all the correct entries and will be notified on 22 September 2010. By entering the increased the burden on lenders in
promotion you agree to receive further information and similar promotions from City A.M. If you wish not to receive any further information
please add ‘No’ after your answer. The winners, by accepting the prize, agree to publicity if required. The Editor’s decision is final.
Europe’s biggest economy, said the
BDB banking association, which
represents top lenders like
“Out of every €10 (£13) in profit
there will be only €3 left once taxes
and levies are deducted,” associa-
tion head Manfred Weber said.
That projection did not even take
into account the possible impact of
the new Basel III capital require-
ments, he said.
The Bundesbank said that
although the new Basel rules and a
planned levy in Germany would
crimp revenues at German banks in
the short term, compared with
before the financial crisis, lenders
would also benefit from the
increased financial stability that it
Banks would be able to meet the
new capital rules without hurting
growth, the central bank predicted.
“The Bundesbank’s assessment is
that German financial institutions
will be able to raise the additional
necessary capital to meet the capi-
tal requirements via accumulated
earnings and raising capital if need-
ed, without there being a reduction
in debt to the real economy's detri-
ment,” it said.
Germany’s recovery had weak-
ened in the last few months but
was still intact, the central bank
added.
 LLET’S
LETTT’SS
TTALK
TA
A
ALLK
FOREX
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 22 News
Employers ignore staff needs Partners at Magic Circle
▲
RECRUITMENT
BY ALASDAIR PEOPLES
EMPLOYERS do not properly under-
stand what motivates their staff to
continue working for them, accord-
ing to a report by one of the world’s
largest recruitment and HR services
companies.
Randstad ranked the main factors
driving people to stay at UK compa-
nies as their brand, culture and the
benefits packages on offer. This was
in sharp contrast to what employees
ranked as the most important fac-
tors: level of remuneration, training
and development, a good career path
BP confirms
the Macondo
well killed off
BP IN CRISIS
BY EMMA SADOWSKI
BP has “effectively killed” the leaking
Macondo well in the Gulf of Mexico
153 days after the explosion that
caused the death of 11 oil rig workers.
The group confirmed that it had
sealed and killed the blown out well,
which leaked over four million bar-
rels of oil into the Gulf.
The five month spill, which outgo-
ing chief executive Tony Hayward has
called a “tragedy” has already cost the
oil giant $9.5bn (£6.1bn).
But compensation claims connect-
ed to the spill have soared since
Kenneth Fienberg, the independent
claims payout administrator, took
control of the Gulf Coast Claims
Facility (GCCF).
Since 23 August, over 68,000 claims
have been submitted to the fund,
with 19,000 claims totalling $240m
already paid.
This includes a $34.5m fund for
real estate brokers and agents in the
area.
This number is on top of the
127,000 claim payments BP made
prior to the transfer to the GCCF,
which totalled £399m.
Brit Insurance shares rocket after it
recommends CVC and Apollo takeover
▲
M&A
BY MARION DAKERS
SHARES in Brit Insurance roared
upwards yesterday after it advised
shareholders to accept an £850m
joint offer from buyout firm CVC
Capital Partners and original bidder
Apollo.
Brit closed up 4.1 per cent at £10.28
yesterday as the markets reacted to
news of the joint bid on Friday. The
price values the listed element of the
firm at £778m.
and flexible working conditions. The
report also found that over 50 per
cent of people feel their skills are
under utilised.
Among the most disillusioned
were those that during the economic
downturn have improved their skills
to cover additional responsibilities,
often because organisations have not
hired new staff.
This group represents a third of
permanent staff and a fifth of inter-
ims and contractors and has been
dubbed “Generation R”.
The report highlights that there is
growing gap between what organisa-
tions think will motivate their key
BP has said the $20bn escrow fund
the group set out in June would be
more than enough to cover the costs
arising from the spill.
Analysts maintain that BP still has
the financial strength to meet all of
its commitments to the clean-up and
aftermath of the spill.
“BP still believes the [escrow] fund
being set up will be more than ade-
quate to cover compensation and we
continue to believe it has the neces-
sary financial strength to meet its
commitments while continuing its
ongoing operations,” said Christine
Tiscareno at Standard & Poor’s Equity
Research.
The group’s shares closed up 0.11
per cent at 411.35p after earlier in the
day leading the markets higher.
ANALYSIS l BP 411.35
20 Sep
440
400
360
320
280
21 Jun 9 Jul 29 Jul 18 Aug 8 Sep
A spokesman for Brit said that CVC
linked up with Apollo over the sum-
mer.
“During the course of the due dili-
gence that Apollo had been undertak-
ing it became apparent that Apollo
wouldn’t be able to do this on their
own. CVC approached the board of
Brit at that time and the board of Brit
worked quite hard to get Apollo and
CVC in a place where they could work
together on this,” the spokesman
said.
Brit Insurance agreed to open its
talent to stay with them and what
their employees actually say will
retain them. Brian Wilkinson, head
of Randstad UK, said: “It is important
that organisations act now to resolve
this gulf in understanding, other-
wise they risk losing talented people
who have up-skilled during the reces-
sion and made themselves more
valuable.”
Wilkinson added: “While organisa-
tions are focusing on the realities of
today, they must not lose sight of the
long-term trends which point towards
skill shortages, particularly as the
number of people of working age
declines and the population ages.”
SEX AND A DIFFERENT CITY
Creditsafe launches identity theft alert
service as company fraud increases
▲
FRAUD
CREDITSAFE has teamed up with the
Metropolitan Police to develop an
online service, which notifies compa-
nies of possible identity fraud.
Businesses fearing identity fraud
can now receive free email alerts
every time changes are made to their
information on Companies House.
The group has developed the fraud
books to Apollo in July after the US
private equity firm raised its offer to
£10.75 a share, after two earlier bids
were knocked back.
CVC and Apollo offered the same
price on Friday, plus a further 25p per
share if the fully diluted value of
Brit’s assets passes £10.75 per share
before the end of the year.
Brit said in a statement that the
consortium’s due diligence was at a
“reasonably advanced” stage, but that
shareholders could yet reject the
sweetened offer.
law firms push rates up
▲
LEGAL
HOURLY rates charged by partners at
the UK’s elite law firms have soared to
£700, according to new research.
An annual survey conducted by
City costs lawyer, Jim Diamond,
shows that rates charged by the top
five Magic Circle law firms – Allen &
Overy, Clifford Chance, Freshfields
Bruckhaus Deringer, Slaughter and
May, and Linklaters – have bounced
back to pre-recession levels.
The legal sector, according to
alert service after several months of
consultation with the Economic
Crime Unit at the Met Police and after
witnessing a continuing growth in
company fraud.
Figures obtained from Companies
House show that between 50 and 100
cases of identity fraud are committed
each month, while the Federation of
Small Businesses has said that last
year 12,000 of its members reported
ANDREW
GALLOWAY
WEST HILL
Apollo is using a team from West Hill,
led by co-founder and partner Andrew
Galloway, together with Bank of
America Merrill Lynch.
Galloway helped set up HSBC’s
investment banking arm in 1997,
before leaving in 2002 to repeat the
trick at West Hill. Recent deals include
a placing for Metro Bank and the
£851m takeover of Willis by KKR; less
recent business includes advising
media tycoon Robert Maxwell when
Galloway worked for merchant bank
CITYA.M. 21 SEPTEMBER 2010
Diamond’s research for The Lawyer
magazine, last year saw the biggest
drop in hourly rates ever recorded by
the legal profession, when Magic
Circle firms charged £400 an hour.
Meanwhile, the ten largest firms
which rank below the Magic Circle,
have also seen a sharp spike in hourly
rates, as partners charge £600 an
hour for their work.
Diamond notes that the smaller
commercial firms in the UK main-
tained charge out rates for a second
consecutive year in a row.
Fashion lovers
focused their atten-
tion away from
London Fashion
week briefly as
crowds gathered at
St Paul’s Cathedral
to commemorate
the death of
Alexander
McQueen. Sarah
Jessica Parker, star
of Sex and the City,
paid her respects
and flaunted her
much admired
style, this time in a
City slightly closer
to our hearts.
Models Kate Moss,
and Naomi
Campbell also
offered their
condolences.
Picture: GETTY
instances of company identity fraud.
A change in address or listed direc-
tors on Companies House are some of
indicators that identity fraud is being
committed.
David Knowles, business develop-
ment director at Creditsafe, said: “We
take the rise in identity fraud serious-
ly. Busy company directors don’t tend
to keep an eye on the details held on
themselves or their companies.”
Samuel Montagu. Galloway is working
with West Hill colleagues John
Terrando and Monica Wajda.
Bank of America Merrill Lynch’s
team is led by Phillip Noblet with
Andrew Chen and Matthew Watkins,
together with the corporate broking
team of Mark Astaire and Peter
Brown. Brit has taken on a team at
Lexicon, led by Angus Winther,
Duncan Buck and Neil Bhadra. Lexicon
is an old hand at M&A in the Lloyd’s
insurance market, having worked for
Wellington when it was taken over by
Catlin in 2006.
Latecomer CVC is understood to
have taken on Bob Fleischer and
Stephen Matthews at Willis and
Citigroup’s head of UK investment
banking David Wormsley to advise,
with Clifford Chance offering legal
help.
CITYA.M. 21 SEPTEMBER 2010
Unilateral
rule making
will harm City
Top bankers have issued
a stark warning on the
danger of going it alone,
says Victoria Bates
PERCHED at a regulatory crossroads,
the government is on the verge of
decisions that will shape the UK econ-
omy’s competitiveness for genera-
tions to come. That much was clear
from the opening day of the City
Week financial services forum yester-
day, where financial services doyens
united in a call to policymakers to
think long and hard about the conse-
quences of their actions in altering
the course of industry regulation.
At the heart of the matter is the
clear need for a unified approach
across Europe and the rest of the
world, without which the City’s most
senior bankers warned that Britain
faces the prospect of lagging behind
To register for this event, visit:
www.rbs.co.uk/markets
This adver tisement contains numerous trade marks belonging to The Royal Bank of Scotland Group plc and other companies in the RBS Group. These trade marks include, but are not limited to, The Royal Bank of Scotland logo, The Royal Bank of Scotland and RBS. If you are in doubt as to
whether an item is a trade mark of The Royal Bank of Scotland Group plc or a member of the RBS Group, please contact us for clarification at the registered office address The Royal Bank of Scotland plc, Registered in Scotland No 90312. Registered Office: 36 St Andrew Square, Edinburgh
EH2 2YB. RBS is authorised and regulated in the UK by the Financial Ser vices Authority
Financial Services Forum 23
its future rivals.
“G20 governments have quite right-
ly promised to find a common
approach to financial regulation, but
on the ground we are seeing an
increasing divergence in the
approaches to rule-setting and imple-
mentation,” said Colin Grassie, chief
executive of Deutsche Bank in the UK.
“If no global consensus on regula-
tion can be found, the UK’s position,
as well as Europe’s position, will indi- Deutsche Bank’s
rectly be defined by regulation in the UK chief Colin Lloyds Banking Group chairman Sir Win
US and ‘non-regulation’ in Asia. This Grassie warned Bischoff, top, and London Stock Exchange
will not be good for the US, but at of the dangers of chief executive Xavier Rolet
over-regulation
least its market is more US-centric. It Pictures: REX/ Micha Theiner/CITY A.M
will be very bad for the UK, whose
domestic financial services industry from a level playing field”, Grassie ger of being taxed out of the top tier. utive Xavier Rolet added that the
rubs shoulders with the truly interna- said, the new proposals for a financial “The UK is home to a core set of argument swings both ways, with the
tional market for wholesale services.” activities tax could also have the leading and world-class industries,” onus now on countries with less strict
Of paramount importance is the effect of a “bonus tax in disguise”. added Lloyds Banking Group chair- regimes to ensure their regulatory
UK’s stance on compensation and tax Add to that the 50 per cent top man Sir Win Bischoff, “but there are standards are up to scratch.
– both of which, according to Grassie, band of personal income tax voices calling for a rebalancing of the “All countries are now intercon-
need to be handled with a sure hand (Singapore and Hong Kong’s is just 15 economy by scaling down one of our nected globally,” Rolet said. “For any
by David Cameron’s government. per cent) and next year’s introduction key industries – namely, finance... country to see an opportunity to lift
While our one-off bonus tax was a of a bank levy in the UK, France and Policymakers should be wary of con- some business from the US or the UK
unilateral move which went beyond Germany, and the UK’s financial serv- fusing retribution with reform.” on the basis of a looser regulatory pol-
G20 principles and “moved us away ices industry faces the very real dan- London Stock Exchange chief exec- icy would spell disaster.”
y. RBS is an authorised agent of The Royal Bank of Scotland N.V in cer tain jurisdictions.
 24 News CITYA.M. 21 SEPTEMBER 2010

Energy firms take a battering HSBC sells its Amadeus will

distribution arm offload Opodo
Sterling’s chairman Alastair Jurassic interval is less well proven.”
▲

ENERGY
Beardsall said: “The initial recovery of HaiKe Chemical Group shares tum-
BY MARION DAKERS gas flowing to surface from these bled 55 per cent to 19.25p, after the BANKING TRAVEL

A SPATE of Aim-listed oil and chemi-
cal stocks fell yesterday, as poor
results and disappointing discoveries
spooked investors.
Sterling Energy said its wells in
Kurdistan had produced less gas than
expected, sending its shares on the
Aim market down 39 per cent to
78.5p.
Its two Sangaw wells had initially
produced 4m cubit feet of gas per day,
but the supply quickly dwindled. The
company had spent almost a year
drilling to more than 2km but fresh
tests showed mainly water in the
underground reservoir.
zones within the Kometan and
Shiranish is encouraging. However
the subsequent water flow from
these zones is disappointing. We shall
now resume drilling to evaluate the
Qamchuqa and then on to the
Jurassic [areas].”
Oriel Securities analyst Nick
Copeman downgraded the stock
from “buy’ to ‘hold”.
“At this stage we see this well as
high risk as the Cretaceous acts as
one reservoir interval in many of the
discoveries in Kurdistan suggesting
that the Cretaceous zones are likely
to be mainly water bearing and the
Aim-listed company said in its half-
year results that pre-tax profit fell
93.9 per cent to $1.4m (£900,000).
The firm said a 79 per cent rise in
revenues to $467m was not enough to
offset falling prices and the cost of
the expansion of its petrochemical
business.
Max Petroleum shares fell more
than 14.5 per cent to 11.75p after the
oil explorer said it would abandon its
exploration well in Kazakhstan. The
KAW-1 well reached a depth of 1.9km
but only found minor hydrocarbons.
The company said it will move on to
drill in other parts of the country.
▲
HSBC has sold its Asian banknote dis-
tribution business for $15m (£9.6m)
to United Overseas Bank.
The banking group has closed the
remaining 60 per cent of its global
distribution branch.
HSBC said in June it would dispose
of the arm as a non-core operation.
Its role as a banknote producer in
Hong Kong will be unaffected by the
sale, which is expected to close in the
fourth quarter of 2010.
“This largely standalone business
was not core to [the bank’s] strategy,”
the firm said yesterday.
SPANISH travel services group
Amadeus is said to be seeking a buyer
for its European online travel agent
Opodo. JPMorgan has been hired as
an adviser and a deal could be
announced before the end of the year.
Amadeus, the travel-reservations
technology company, has controlled
Opodo since 2004 but does not view
the holding as strategic. Opodo,
which is 99.4 per cent owned by
Amadeus, competes with US rivals
such as Expedia.
Amadeus, JPMorgan and Opodo
declined to comment.

BHP will stick BEST OF THE BROKERS

ANALYSIS l Carphone Warehouse
250 p 241.00
20 Sep
ANALYSIS l Royal Bank of Scotland
54 p
52 49.02
20 Sep
ANALYSIS l Credit Agricole
12 € 11.68
20 Sep

to $39bn bid
11
230
48
10
210
44
9

for Potash
190 40 8

30 Jun 29 Jul 27 Aug 30 Jun 29 Jul 27 Aug 30 Jun 29 Jul 27 Aug

CARPHONE WAREHOUSE ROYAL BANK OF SCOTLAND CREDIT AGRICOLE

Morgan Stanley has raised its Carphone JP Morgan assumes RBS will exit from the Credit Agricole has outperformed the
Warehouse target from 220p to 275p and asset protection scheme at the end of European banks index by six per cent since
▲

MANUFACTURING
BY HARRY BANKS
BHP Billiton chief executive Marius
Kloppers said yesterday the company
has no intention of changing its $39bn
(£25bn) takeover offer for Potash, the
world’s biggest fertiliser producer.
During a visit to the home base of its
takeover target intended to build polit-
ical support in Canada, Kloppers
brushed aside rumours that China,
issues an “overweight” rating for the retail- 2012. The broker therefore expects to see its second quarter results. This comes after
will allow its $130 per share bid for
Potash to proceed. Potash has rejected er. The broker believes consensus forecasts an impact on the back in 2012, but says the announcement that Basel III will be
the offer as inadequate. for Carphone Warehouse do not factor in free cash flow generation will be substan- delayed until 2018, which Credit Suisse says
Saskatchewan, the Canadian the impact that high-selling-price smart- tial in 2013/14 providing non-core run-off is removes the risk of a rights issue at the bank
province that is home to Potash, has
said it is concerned about the possibil- phones will have on like-for-like sales over successful. The broker retains an “under- for the medium to longer-term. It upgrades
ity that BHP will remove Potash’s the next 12 months. weight” rating for the bank. its rating to “outperform”.
mines from Canpotex, the offshore
marketing arm of Saskatchewan
potash producers. To appear in Best of the Brokers email your research to notes@cityam.com
Saskatchewan, which will advise

City seeks business-savvy accountants

through its state-owned companies,
might be assembling a rival bid.
“We have no plans to change what is
currently the only offer on the table,”
he said. “I’ve seen a lot of speculation
and rumours [about a China-backed
offer] but the reality is there is only
the Canadian government on whether
to approve the takeover bid, depends
heavily on potash royalties, which are
determined largely by the fertiliser
nutrient’s price.
Asked about BHP’s potential partici-
pation in Canpotex, Kloppers said the whole. regulation,” said Neil Owen, director
▲

one cash bid on the table and that’s
ours at the moment.”
The 19 October deadline for Potash
shareholders to sell their shares to BHP
could be pushed back, depending on
whether competition regulators in
Canada and the United States ask for
more time to review BHP’s proposal,
he said.
BHP expects to hear today whether
the Canadian Competition Bureau
company prefers to do its own market-
ing, but that “nothing is static forev-
er”. Kloppers also said Canpotex’s
marketing infrastructure is unrivalled.
“We would have no intention of dupli-
cating that.”
Kloppers spoke to reporters at the
opening of BHP’s office in Saskatoon,
where Potash is based. At least one
Saskatchewan cabinet minister was in
attendance.
RECRUITMENT
FINANCE professionals working in
large companies need to have com-
mercial skills in order to succeed,
new research by recruiters Robert
Half revealed yesterday.
Up to 90 per cent of business and
finance leaders in London agree that
strong commercial skills are needed
to ensure the long-term success of
finance teams and their business as a
Nearly two-thirds of the business
leaders interviewed by Robert Half in
London believe their finance teams
currently lack strong commercial
skills to help drive the business for-
ward and 90 per cent believe this to
be damaging to the development of
their team.
“Finance teams need to be seen as
adding value to a business, especially
with all of the changes in financial
at Robert Half.
Meanwhile, understanding how
the wider business works is one of the
most important commercial skills a
finance team needs to posses, accord-
ing to 90 per cent of business leaders.
The same proportion of leaders inter-
viewed by Robert Half also said that
finance teams need to posses an
understanding of business strategy
and vision.

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

Matrix Group
The financial services group has taken on Peter
Bax as head of property asset management.
Bax was most recently a portfolio manager
at Citi Property Investors for nine years, having
previously held the position of vice president of
global real estate investment origination at
Citi’s private banking arm.
He also formerly worked for BZW
Investment Banking as a director in the proper-
ty advisory group.
Quintain utive of Ladbrokes, as a non-executive
The property group has hired director.
Christopher Bell, the former chief exec- Bell, who becomes the senior inde-
pendent director on Quintain’s board,
led Ladbrokes until April 2010. He is
also currently senior non-executive
director of FTSE 250 retailer Game
Group and is a member of the
Responsible Gambling Strategy Board,
which advises the Gambling
Commission and the government on
policy and strategy in the field.
Hermes BPK Partners
The fund of hedge funds has appointed
Pawel Kisielewski as a partner to drive
its business development strategy.
Kisielewski joins from Caliburn
Capital Partners, where as a partner
and member of the management com-
mittee he led the client development
activity for the past four years. Prior to
that he was at Merrill Lynch, running
the global technology sales team.
Debevoise & Plimpton
David Innes is to join the law firm as a
partner in its London private equity
transactional practice.
Innes moves over from Travers
Smith, where he has been a partner
since 2000 specialising in private equi-
ty and M&A work.
Protiviti
Tim Brooke, a former consultant to
Northern Rock during its restructuring,
has joined the business consultancy
firm as a managing director and head
of the UK internal audit and financial
controls team.
At Northern Rock, Brooke helped to
prepare the bailed-out bank for its
return to private ownership. Prior to
that, he was a VP at JP Morgan Chase.
The Jockey Club
The UK horseracing industry’s biggest
commercial group has appointed
Andrew Crean as its new finance direc-
tor. Crean joins after a decade at
Compass Group, where he is currently
finance and commercial director of its
sport, leisure and hospitality divisions.

To appear in CITYMOVES please email your career

updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
morganmckinley.com
 Investment
TRUST GOLD
MORE THAN
POLITICIANS
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
T
he summer is behind us. While equity
trading volumes have yet to pick up,
we’ve seen more activity from policy-
makers and central banks. Last week’s
intervention by the Bank of Japan (BoJ) to
halt the rise of the yen was a notable example.
However, investors are likely to test the BoJ’s
resolve. Germany is watching its competitive
advantage ebb away as the euro-dollar heads
back over $1.30. US policymakers are calling
foul over Japan’s move and are gearing up to
pillory China for currency manipulation ahead
of the mid-term elections. Meanwhile, China
has condemned the BoJ for cheapening the
yen, making Chinese goods less competitive.
There is a danger that this could develop into
protectionism given the threat to jobs in all
countries.
Today we’ve got the Federal Open Market
Committee meeting. There has been specula-
tion about the likelihood of another round of
quantitative easing (QE). The recent poor US
data suggests that a second round of QE
could come soon. Weighing against any fur-
ther stimulus must be the $1 trillion EU-IMF
European bailout package earlier in the year.
The initial positive market reaction faded
remarkably quickly, so given the diminishing
returns, further QE in the US will have to be
sizeable. Not only would this add to the
budget deficit, but it could terrify investors.
Against this background, silver and gold
continue to soar. For as long as policymakers
insist that boosting exports will save the
economy while ignoring the fact that we
can’t all run trade surpluses simultaneously,
there will be a rush to devalue every fiat cur-
rency. As a result, precious metals would
seem to be the most sensible asset for
investors, being both a store of value and the
ultimate medium of exchange for when peo-
ple lose faith in their central banks’ promises
to protect their currencies.
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| Contracts for Difference
25
Check the momentum
behind any break out
Don’t be fooled by
a market fake out,
says Jessica Mead
D
ESPITE a summer where equities
drifted sideways and the recent slew
of less upbeat economic data, the
FTSE 100 has had a promising start to
the autumn. Since the start of September it
has risen around 400 points to close yester-
day at 5,602.4 and some market partici-
pants are anticipating another move higher.
“UK equities are cheaper than they were
in March 2009, and represent the bargain of
the decade. It is clear to us that the markets
are now entering a bottoming phase and
that the next move is higher. We expect the
present uneasy tension to break soon and to
the upside. When it does so, we are poised
and will be ready to act,” says Paul Meader,
head of Guernsey Portfolio Management
and a member of Collins Stewart Wealth
Management’s asset allocation committee.
But the markets are still bouncing
around all over the place and market moves
are failing to gain traction. For example, the
blue-chip index tried to break through the
5,610 level on Friday but was rejected and
sank sharply in afternoon trading to close The next step is to look for
the week at 5,525. So how can contracts for clues.
difference (CFD) traders tell when the break Picture: GETTY
higher actually happens? There are a num-
ber of indicators that they can use to con-
firm a move in a market before jumping in. which tries to determine the overbought should filter out the fake-outs and ensure
First, check the volume. A break needs to and oversold conditions of an asset by com- you don’t jump in too late.
be supported by sufficient volumes if it is to paring the magnitude of recent gains to
be sustained. A surge through a resistance recent losses. The RSI ranges from 0 to 100
level with only minimal volume is more and once it nears 70, the asset is seen as ANALYSIS l Relative Strength Index
likely to be a fake-out than a breakout. overbought and may well see a pullback. If it for the FTSE 100
Second, look at the trendlines. “A break of falls to 30, then it is seen as oversold and
a trendline confirms that the trend is no probably due a recovery bounce. The RSI on 80
longer continuing at the same pace, which the FTSE 100 has risen sharply to verge on
can be the first indication of a turn, or a 70 but the RSI has turned down in the past
pause,” says Tom Pelc, head of technical week to 61.76, indicating that the blue-chip 50
analysis at RBS. “But if the original trend FTSE is starting to appear better value.
was very steep, a break may just signal a Watch for a fall towards 50 before buying.
return to a more normal gradient,” he adds. If you are looking to verify a genuine 20
Third, momentum indicators can signal break higher, look for a whole day’s trading
the strength of a break higher (or lower). or two consecutive closes above the trend-
Look at the relative strength index (RSI), line. This, combined with the other signals, 2010 May Jun Jul Apr Sep
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 26 Investment | Contracts for Difference
UK banks might
look cheap, but
pick carefully
Jumpy markets give
an opportunity for
trading as further
Basel details emerge,
writes Juliet Samuel
U
K BANKING stocks rallied last week
after the announcement of the Basel
III banking reforms. But although
the sector has avoided further bank-
bashing, much of the detail has yet to
emerge and a jumpy market should make
for fruitful autumn trading.
New capital ratio requirements made
most of the Basel III headlines, with Tier 1
capital ratio requirements rising from 4 per
cent to 6 per cent, to be phased in over the
next five years. The changes prompted S&P
Equity Research to declare: “The European
bank sector is heading to a new landscape
of lower return on equity.”
But although the relatively lenient time-
frame – and the fact that most UK banks
already hold capital to these levels or plan
to do so – triggered a rally in banking
stocks, some of those gains disappeared as
the fine print revealed that a change in the
definition of the risk-weighted assets (RWA)
to which these requirements would apply
could make them 30 per cent tougher than
they appeared. Both Lloyds Banking Group
and Barclays stocks dived 3.5 per cent since
the Basel announcement.
This demonstrates that despite the sec-
tor’s progress in confronting widespread
credit problems and the fact that most UK
banks will not actually have to alter their
plans in response to Basel, the markets
remain sensitive. The full details of the
measures have yet to emerge, with vital
information – such as the definition of a
RWA and therefore the effective change in
capital ratio requirements – still undecided
until the new rules are presented to a for-
FOCUS | STANDARD CHARTERED
Standard Chartered has seen one of the steepest
share price rises compared to its peers in the UK bank-
ing sector.
Its stock has risen 14.4 per cent over the last
month, catching a swell of optimistic sentiment about
the sector given many banks’ low valuations. Standard
– which avoided being bailed out through government
equity buy-in – has continued to expand its operations
THE TIPSTER
PLUGGING THE
MACONDO WELL
HAS BUOYED BP’S
SHARE PRICE
B
P’S NEWS that the Macondo well in the
Gulf of Mexico has finally been complete-
ly capped came as welcome news. The
stock has responded well, rising over 1 per
cent in early trade yesterday. This could be an
opportunity for the oil giant to draw a line under
the catastrophe and hopefully regain some of
the share price losses. Capital CFDs quotes a
price of 409.0p-409.9p for BP.
A survey released yesterday suggested that
CITYA.M. 21 SEPTEMBER 2010
mal meeting of the G7 nations in
November. This gives contracts for differ-
ence (CFD) traders plenty of leeway to trade
on movements as news emerges.
But despite the focus on regulatory
shenanigans, traders should still consider
the fundamentals. Many analysts still see
UK bank shares as offering some of the best
deals in Europe over the medium-term.
Evolution Securities places Lloyds, RBS and
Standard Chartered among its top five
picks of European banking equities.
Evolution’s Arturo de Frias says: “There’s
very little revenue growth across Europe
and funding costs are going up. Standard
Chartered is one of the few examples of
double-digit revenue growth, while both
RBS and Lloyds are examples of good
value.” Frias is anticipating equity returns
of around 14-15 per cent on Lloyds over the
next two-to-three years.
Killik & Co’s Jonathan Jackson also puts
Lloyds on his “buy” list, citing its cost effi-
ciency drive (currently on-target) as having
the potential to make it “one of the most
efficient banks in Europe”. Although loans
to retail mortgage-holders still dominate its
lending profile – at 57 per cent of the
bank’s loans – impairments are on a steady
downward trend and the government’s 41
per cent stake compares favourably to RBS’s
84 per cent state ownership. In contrast to
Frias, Jackson therefore recommends sell-
ing RBS shares: aside from the inevitability
of a government sell-off at some point, he
highlights that the bank still needs to
offload many of its toxic assets.
So despite the sector’s progress towards
properly pricing risk (as in the widening
spreads on low-deposit mortgages – see
chart), continuing wobbles in the UK prop-
erty market coupled with the possibility of
further regulation, whether from Basel or
potential lending requirements in the UK,
make banking stocks an uncertain proposi- UK banking stocks are ANALYSIS l Risk pricing: spread between 95% and 75% Loan to value (LTV) ratios
tion. With part-state-owned banks not even currently in favour. %
Source: Bank of England/Killik & Co.
paying dividends until 2012, traders should
1.4 Spread 2 yr discount 95% - 75% LTV
be sure that the stocks’ seemingly attractive Picture: REX
valuations truly reflect the risk. 1.2 Spread 2 yr fix 95% - 75% LTV
1 Spread 5 yr fix 95% - 75% LTV
0.8
abroad, avoiding some of the risks associated with its
more UK-centric peers. 0.6
Overall profit before taxation in the first half of 0.4
2010 came to $3.1bn, up 9.8 per cent on the same six
months of last year, with consumer banking in Asia 0.2
Pacific generating an impressive 75.5 per cent rise in
0
net profit. Markets value the stock highly, as demon-
strated by a price-to-earnings ratio of 17.63 times. 01/04/96 01/10/98 01/04/01 01/10/03 01/04/06 01/10/08
the manufacturing sector is finding it increas-
ingly difficult to borrow money since banks
For someone looking for a low-risk, reason-
ably neutral trade, a pairs trade on Lloyds and
remain cautious over the strength of the recov- RBS might be worth considering this week.
ery. Next week will see results from Wolseley Over the past three months, Lloyds has outper-
who have been doing well compared to others
in the sector. Analysts predict that larger play-
formed RBS by almost 30 per cent, which has
caused their pairs spread to pop out to 1.57.
ers could squeeze out some smaller firms with This spread typically trades around 1.32 and
more restricted access to capital. Cantor Index was as low as 1.25 in June. The trade would be
offers a December spread on Wolseley of to sell Lloyds and buy RBS looking for this
1430.4p-1441.1p. spread to converge towards the mean again for
Gold and silver are both in the headlines as profit. To keep the trade neutral you would buy
precious metals receive support regardless of 157 lots of RBS for every 100 lots of Lloyds you
the economic outlook. A double dip will push sell. Spread Co offers a spread on Lloyds of
more investors into safe havens whilst contin- 75.91p-76.06p and on RBS of 48.38p48.5p.
ued economic expansion will keep buoying Having opened 53 stores in the last five
demand. Extractors are undoubtedly in favour. years, accounting for 41 per cent of the estate
Fresnillo, the world’s largest silver producer, but only 15 per cent of profits, the pawnbroker
has already seen its share price increase more H&T looks like it offers a great growth opportu-
than ten fold in the last two years from below nity. IG Markets offers a December spread of
the 100p mark. The current IG Markets price is 292.06p-294.40p.
1175p-1178p Donata Huggins Investors flee to gold as a safe haven. Picture: REX
Which way is the dollar heading?
If you know what affects the forex markets and have
an opinion on currencies, you should consider CFD trading
with IG Markets.
Take a position on a wide variety of currency pairs and
other markets with the UK’s number one CFD provider.*
CFD trading can result in losses that exceed your
initial deposit.
Discover more at igmarkets.co.uk or call 0800 195 6300.
*Largest single provider of CFD accounts in the UK,
Investment Trends report 2009.
 28 Markets & Investment CITYA.M. 21 SEPTEMBER 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .283.50 +4.00 310.00 246.90 Cookson . . . . . . . . . . . . . . . . . . .501.00 +5.30 616.00 347.60 Johnson Matthey . . . . . . . . . . .1782.00 +9.00 1814.00 1302.00 SABMiller . . . . . . . . . . . . . . . . .2014.50 +40.00 2090.00 1450.00
3i Infrastructure . . . . . . . . . . . . . 114.00 +0.90 115.00 97.00 Croda Intl . . . . . . . . . . . . . . . . .1426.00* +3.00 1460.00 637.00 JPMorgan Emerg Mkts . . . . . . . .582.00 +12.00 582.00 437.10 Sage . . . . . . . . . . . . . . . . . . . . . .259.30 +4.10 262.20 208.20
A.B. Foods . . . . . . . . . . . . . . . .1075.00 +25.00 1096.00 790.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .509.50 +14.00 539.00 381.00 Jupiter Fnd Mgmt . . . . . . . . . . . .242.50 –1.00 256.50 180.00 Sainsbury(J) . . . . . . . . . . . . . . . .394.10 +8.70 394.10 307.60
Aberdeen Asset Man . . . . . . . . . .151.20 +2.80 155.60 111.00 Dana Petroleum . . . . . . . . . . . .1792.00 +2.00 1817.00 968.50 Kazakhmys . . . . . . . . . . . . . . . .1402.00* +14.00 1634.00 955.00 Schroders . . . . . . . . . . . . . . . . .1404.00* +1.00 1450.00 1053.00
Admiral. . . . . . . . . . . . . . . . . . .1674.00 +6.00 1686.00 1003.00 Davis Service . . . . . . . . . . . . . . .395.70* +4.90 442.30 356.00 Kesa Electricals . . . . . . . . . . . . .142.00* +2.80 162.00 98.45 Schroders N/V. . . . . . . . . . . . . . 1146.00* +1.00 1187.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . .125.60* +1.60 137.30 103.10 De La Rue . . . . . . . . . . . . . . . . . .674.50 –10.50 1021.00 638.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .229.20 +4.60 255.00 196.50
Afren . . . . . . . . . . . . . . . . . . . . .108.60 +1.70 111.00 73.00 Debenhams . . . . . . . . . . . . . . . . .66.80 +0.50 90.00 51.95 Ladbrokes . . . . . . . . . . . . . . . . .143.80* –0.50 174.29 114.60 Scot. & Sthrn Energy. . . . . . . . . 1151.00* +23.00 1206.00 357.50
African Barr Gold . . . . . . . . . . . .599.00* –1.00 685.00 520.50 Derwent London . . . . . . . . . . . .1494.00 +16.00 1540.00 1174.00 Lancashire Hldgs . . . . . . . . . . . .557.50* +8.50 557.50 416.70 Scottish Mortgage. . . . . . . . . . . .625.00 +13.50 625.00 475.00
Aggreko . . . . . . . . . . . . . . . . . .1590.00 –23.00 1639.00 664.50 Dexion Absolute . . . . . . . . . . . . .140.80 +1.40 148.00 127.60 Land Securities . . . . . . . . . . . . . .634.00* +13.50 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .269.30* +5.50 395.10 244.00
Alliance Trust . . . . . . . . . . . . . . .332.60 +4.40 352.70 292.80 Diageo . . . . . . . . . . . . . . . . . . .1092.00* +22.00 1176.00 930.50 Legal & General . . . . . . . . . . . . .101.60* +1.85 105.00 69.05 Serco . . . . . . . . . . . . . . . . . . . . .619.50* +6.00 656.50 485.60
AMEC . . . . . . . . . . . . . . . . . . . . .961.00 +18.00 961.50 724.50 Dimension Data . . . . . . . . . . . . . 119.70 +0.30 125.50 59.30 Lloyds Banking Gp . . . . . . . . . . . .77.41 +2.07 78.62 45.30 Severn Trent . . . . . . . . . . . . . . .1374.00 +12.00 1404.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .404.20* +1.90 437.60 350.80 Dixons Retail . . . . . . . . . . . . . . . .24.23 +0.24 39.75 23.11 Logica . . . . . . . . . . . . . . . . . . . .125.80* +3.30 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .428.00 +1.70 446.60 341.70
Anglo American . . . . . . . . . . . .2546.50 +31.00 3015.50 1846.50 Domino’s Pizza . . . . . . . . . . . . . .476.40 +2.80 481.10 272.10 London Stk Exchange . . . . . . . . .693.00 +17.00 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1492.00* +24.00 1532.00 999.00
Antofagasta . . . . . . . . . . . . . . . 1189.00* +24.00 1189.00 699.50 Drax . . . . . . . . . . . . . . . . . . . . . .399.90 +5.90 490.30 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1690.00 +31.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .572.50 +13.00 700.50 525.50
Aquarius Platinum . . . . . . . . . . .324.40* +10.20 490.00 211.50 Dunelm . . . . . . . . . . . . . . . . . . . .389.70 +11.30 438.40 303.00 Man . . . . . . . . . . . . . . . . . . . . . .227.30 +2.10 373.60 199.60 Smiths . . . . . . . . . . . . . . . . . . .1220.00 +5.00 1244.00 814.00
ARM Holdings . . . . . . . . . . . . . . .395.70* +5.10 416.40 132.90 Easyjet . . . . . . . . . . . . . . . . . . . .385.70 +3.80 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .382.30 +7.80 412.70 321.90 SOCO Intl . . . . . . . . . . . . . . . . . .452.80 +11.30 510.00 380.60
Ashmore . . . . . . . . . . . . . . . . . . .321.00 +2.20 335.30 215.00 Edinburgh Inv Tst . . . . . . . . . . . .431.10 +10.30 436.00 338.00 Meggitt . . . . . . . . . . . . . . . . . . . .296.00* +1.70 331.00 220.10 Spectris . . . . . . . . . . . . . . . . . .1009.00 +11.00 1043.00 653.00
Astrazeneca . . . . . . . . . . . . . . .3345.00 +18.50 3389.50 2668.00 Electrocomponents . . . . . . . . . . .230.10 +7.00 246.30 142.90 Melrose . . . . . . . . . . . . . . . . . . .264.10* +0.50 275.10 160.00
Atkins(Ws) . . . . . . . . . . . . . . . . .739.00* +0.50 801.00 532.50 EnQuest . . . . . . . . . . . . . . . . . . . 118.60 –0.70 125.90 87.35 Mercantile IT . . . . . . . . . . . . . . . .973.00 +10.00 1002.00 822.50 Spirax-Sarco Eng . . . . . . . . . . .1695.00 +4.00 1736.00 1001.00
Autonomy Corp . . . . . . . . . . . .1857.00 +24.00 2012.00 1278.00 Essar Energy . . . . . . . . . . . . . . .458.80 +6.50 475.90 358.50 Michael Page Intl. . . . . . . . . . . . .456.90* +8.60 461.50 314.40 Spirent Comms . . . . . . . . . . . . . .139.50 +1.60 145.10 84.15
Aveva . . . . . . . . . . . . . . . . . . . .1419.00 +25.00 1487.00 856.50 Eurasian Nat Res . . . . . . . . . . . .914.50* +13.00 1276.00 781.00 Micro Focus . . . . . . . . . . . . . . . .373.10* +5.40 550.00 272.20 Sports Direct Intl . . . . . . . . . . . . .126.20 +0.60 130.50 89.85
Aviva . . . . . . . . . . . . . . . . . . . . .423.50 +11.40 474.00 290.20 Euromoney Inst Inv . . . . . . . . . . .594.00 +9.00 630.00 298.00 Millen & Copthorne . . . . . . . . . . .522.50* –5.50 547.00 321.40 SSL Intl . . . . . . . . . . . . . . . . . . . 1158.00 +1.00 1190.00 596.50
Babcock International . . . . . . . . .560.50 –0.50 660.50 489.00 Experian . . . . . . . . . . . . . . . . . . .671.50 +8.50 683.00 509.50 Misys . . . . . . . . . . . . . . . . . . . . .292.20 –0.20 295.80 180.80 St James’s Place . . . . . . . . . . . . .287.20 +14.10 296.90 203.40
BAE Systems . . . . . . . . . . . . . . .333.80 +4.60 389.90 288.10 F&C Comm Prop . . . . . . . . . . . . . .99.00* +1.50 99.00 79.50 Mitchells & Butlers . . . . . . . . . . .296.90 +2.50 343.90 228.30 Stagecoach. . . . . . . . . . . . . . . . .186.50 +2.30 204.90 137.00
Balfour Beatty . . . . . . . . . . . . . . .266.90 +0.20 322.66 228.60 Ferrexpo . . . . . . . . . . . . . . . . . . .304.00* –10.10 396.20 138.00 MITIE . . . . . . . . . . . . . . . . . . . . .197.90 –0.70 269.20 187.80 Standard Chartered . . . . . . . . . .1898.00* –2.00 1946.00 1366.50
Barclays . . . . . . . . . . . . . . . . . . .313.35 +8.70 394.25 253.40 FirstGroup . . . . . . . . . . . . . . . . .350.00 +1.80 448.80 331.20 Mondi . . . . . . . . . . . . . . . . . . . . . 511.00 — 519.00 300.70 Standard Life . . . . . . . . . . . . . . .227.50* +4.10 237.00 170.00
Barratt Development . . . . . . . . . .103.70 +1.60 184.92 89.10 Foreign & Col Inv Tst. . . . . . . . . .287.10 +5.10 297.20 240.50 Monks Inv Tst . . . . . . . . . . . . . . .323.90 +5.90 323.90 265.00 SuperGrp . . . . . . . . . . . . . . . . .1290.00 +13.00 1295.00 499.00
BBA Aviation . . . . . . . . . . . . . . .196.60* +2.60 220.00 145.90 Fresnillo . . . . . . . . . . . . . . . . . . 1181.00 +13.00 1197.00 647.00 Morrison Wm . . . . . . . . . . . . . . .306.30 +7.50 307.10 255.00 TalkTalk . . . . . . . . . . . . . . . . . . .138.50 +2.30 147.10 106.60
Bellway. . . . . . . . . . . . . . . . . . . .599.50 +14.00 927.50 510.00 G4S . . . . . . . . . . . . . . . . . . . . . .252.00* +1.80 285.70 217.70 Murray Intl Tst . . . . . . . . . . . . . . .891.50 +20.00 907.50 719.00 Talvivaara Mining . . . . . . . . . . . .448.80 +15.10 501.50 341.40
Berkeley . . . . . . . . . . . . . . . . . . .837.50 +11.00 949.50 735.00 Genesis Emerging Mkts Fd . . . . .505.50 +8.30 509.50 370.00 National Express. . . . . . . . . . . . .240.00 +0.90 258.60 155.86 Tate & Lyle . . . . . . . . . . . . . . . . .471.50 +8.80 509.00 388.00
BG . . . . . . . . . . . . . . . . . . . . . . 1114.00 +31.50 1248.00 966.90 GKN . . . . . . . . . . . . . . . . . . . . . .168.40* +7.40 171.20 100.40 National Grid . . . . . . . . . . . . . . .554.50 +3.00 607.65 474.80
BHP Billiton . . . . . . . . . . . . . . .1980.00* +40.00 2346.00 1583.50 GlaxoSmithKline . . . . . . . . . . . .1290.00* +16.00 1347.00 1088.00 Next . . . . . . . . . . . . . . . . . . . . .2203.00 +36.00 2360.00 1726.00 Taylor Wimpey . . . . . . . . . . . . . . .29.42 +0.12 47.22 24.29
BlackRock Mining . . . . . . . . . . . .627.00 +11.00 654.50 474.00 Great Portland Estates . . . . . . . .335.00 +6.40 335.00 236.60 Northumbrian Water . . . . . . . . . .344.20 +4.20 353.00 225.20 Telecity . . . . . . . . . . . . . . . . . . . .515.00 +14.00 542.50 311.30
BlueBay . . . . . . . . . . . . . . . . . . .350.50 +5.50 393.00 251.00 Greene King . . . . . . . . . . . . . . . .429.40 +3.80 484.00 372.50 Ocado Grp . . . . . . . . . . . . . . . . .143.00 –4.50 169.00 132.00 Templeton Emrg Mkts . . . . . . . . .600.00 +10.00 600.50 444.10
Bluecrest Allblue GBP . . . . . . . . .166.50 –1.90 169.00 143.00 Halfords . . . . . . . . . . . . . . . . . . .441.00 –21.20 562.50 329.30 Old Mutual . . . . . . . . . . . . . . . . .138.50 +3.70 140.50 94.75 Tesco . . . . . . . . . . . . . . . . . . . . .437.50 +8.85 454.90 368.40
Booker . . . . . . . . . . . . . . . . . . . . .49.00 –0.25 49.99 37.50 Halma . . . . . . . . . . . . . . . . . . . . .312.20 +0.60 320.50 198.00 Partygaming . . . . . . . . . . . . . . . .294.10 –1.90 339.70 205.80 Thomas Cook . . . . . . . . . . . . . . .190.60* +0.10 277.20 172.30
BP . . . . . . . . . . . . . . . . . . . . . . . 411.35 +8.30 658.20 296.00 Hammerson . . . . . . . . . . . . . . . .395.30* +12.50 460.30 332.20 Pearson . . . . . . . . . . . . . . . . . .1022.00* +13.00 1069.00 751.50 Tomkins . . . . . . . . . . . . . . . . . . .324.40 –0.10 325.70 155.00
Brit Insurance . . . . . . . . . . . . . .1028.00 +40.50 1045.00 709.00 Hargreaves Lansdown . . . . . . . .447.30* –14.20 478.00 259.40 Pennon . . . . . . . . . . . . . . . . . . . .597.50* +7.50 616.50 440.40 Travis Perkins . . . . . . . . . . . . . . .824.00 +3.50 915.00 647.50
British Airways . . . . . . . . . . . . . .242.10 +6.10 255.80 172.40 Hays . . . . . . . . . . . . . . . . . . . . . . 112.60 –3.00 119.00 82.50 Persimmon . . . . . . . . . . . . . . . . .403.80 +4.50 521.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .220.50* –1.20 313.90 189.20
British Amer. Tob . . . . . . . . . . .2403.50* +44.50 2403.50 1832.00 Henderson . . . . . . . . . . . . . . . . .133.90* +3.40 157.80 112.10 Petrofac . . . . . . . . . . . . . . . . . .1407.00 +12.00 1446.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .398.90 +8.90 436.20 261.20
British Empire Tst . . . . . . . . . . . .457.50 +9.50 467.90 338.50 Heritage Oil. . . . . . . . . . . . . . . . .316.10 –1.90 585.00 298.20 Petropavlovsk . . . . . . . . . . . . . .1220.00 +8.00 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1279.00 +18.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .476.10 +7.30 531.00 416.00 Hikma Pharma . . . . . . . . . . . . . .726.00* –40.00 813.00 443.00 Phoenix Group . . . . . . . . . . . . . .714.00* –10.00 775.00 550.50 UK Commercial Prop. . . . . . . . . . .81.65 +0.85 84.90 69.10
Britvic. . . . . . . . . . . . . . . . . . . . .481.40 +2.00 518.00 340.00 Hiscox . . . . . . . . . . . . . . . . . . . .364.00* +1.80 371.10 299.60 Premier Farnell . . . . . . . . . . . . . .263.00 +3.40 272.60 140.60 Ultra Electronics . . . . . . . . . . . .1717.00* –31.00 1774.00 1198.00
BSkyB . . . . . . . . . . . . . . . . . . . .708.00 — 732.00 521.00 Hochschild Mining . . . . . . . . . . .427.60* +9.60 429.90 220.00 Premier Oil . . . . . . . . . . . . . . . .1683.00 +15.00 1695.00 984.00
BT . . . . . . . . . . . . . . . . . . . . . . .142.10 +3.20 151.00 108.40 Home Retail . . . . . . . . . . . . . . . .214.10 +2.20 326.30 208.50 Provident Financial . . . . . . . . . . .844.50 +4.50 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1803.00 +53.00 2024.00 1662.00
Bunzl . . . . . . . . . . . . . . . . . . . . .762.50 +14.50 784.50 613.50 Homeserve . . . . . . . . . . . . . . . . .471.90 –13.30 502.00 435.40 Prudential . . . . . . . . . . . . . . . . . .626.00* +14.00 665.00 475.70 United Utilities . . . . . . . . . . . . . .583.50 +12.50 620.00 429.00
Burberry . . . . . . . . . . . . . . . . . . .942.00 +12.50 944.50 467.20 HSBC Hldgs . . . . . . . . . . . . . . . .679.60* +6.90 766.80 595.20 PZ Cussons . . . . . . . . . . . . . . . .347.10* +2.50 373.20 226.50 Utd Business Media . . . . . . . . . .636.50* +4.50 656.50 408.30
Cable & Wire Comms . . . . . . . . . .61.10 +0.10 150.00 53.00 Hunting . . . . . . . . . . . . . . . . . . .622.50 +2.00 659.50 429.10 Qinetiq . . . . . . . . . . . . . . . . . . . . 110.60 –0.50 179.10 103.50 Vedanta Resources . . . . . . . . . .2153.00 +8.00 2967.00 1795.00
Cable & Wire Wwide . . . . . . . . . . .77.30 –1.10 94.80 60.05 ICAP . . . . . . . . . . . . . . . . . . . . . .439.10 +6.40 478.30 291.70 Randgold Resources. . . . . . . . .6435.00 +95.00 6600.00 3930.00 Victrex . . . . . . . . . . . . . . . . . . .1216.00 +13.00 1320.00 726.50
Cairn Energy. . . . . . . . . . . . . . . .426.80 –1.60 497.60 306.80 IG . . . . . . . . . . . . . . . . . . . . . . . .501.50* +12.20 532.00 291.00 Reckitt Benckiser . . . . . . . . . . .3500.00* +105.00 3667.00 2938.00 Vodafone . . . . . . . . . . . . . . . . . .164.00 +3.70 164.40 126.50
Caledonia Invs . . . . . . . . . . . . .1630.00 +25.00 1759.00 1496.00 Imagination Tech Gp . . . . . . . . . .369.10 +0.70 385.00 154.00 Reed Elsevier . . . . . . . . . . . . . . .552.00 +17.00 566.00 454.60 Weir . . . . . . . . . . . . . . . . . . . . .1434.00 +5.00 1450.00 635.00
Capita . . . . . . . . . . . . . . . . . . . . .775.00* +9.00 829.50 693.00 IMI . . . . . . . . . . . . . . . . . . . . . . .747.00* +4.00 786.00 410.00 Regus . . . . . . . . . . . . . . . . . . . . . .76.35* –0.15 125.50 64.05 WH Smith . . . . . . . . . . . . . . . . . .446.00 +10.60 551.00 392.20
Capital & Counties . . . . . . . . . . .133.40 +3.90 133.40 99.60 Imperial Tobacco. . . . . . . . . . . .1918.00 +4.00 2159.00 1728.00 Renishaw . . . . . . . . . . . . . . . . .1001.00* +21.00 1021.00 479.00 Whitbread . . . . . . . . . . . . . . . . .1613.00 +13.00 1645.00 1141.00
Capital Shopping Centres . . . . . .369.30 +9.40 580.00 300.10 Inchcape. . . . . . . . . . . . . . . . . . .293.70 +4.70 347.00 235.00 Rentokil Initial . . . . . . . . . . . . . . .104.40 +0.30 140.20 91.15 William Hill . . . . . . . . . . . . . . . . .183.50 –0.10 217.80 160.50
Carillion . . . . . . . . . . . . . . . . . . .316.10* +1.00 361.90 263.90 Informa . . . . . . . . . . . . . . . . . . . .427.50* +11.90 439.40 263.30 Resolution . . . . . . . . . . . . . . . . .243.20* –4.00 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .467.10* +3.90 487.00 396.30
Carnival . . . . . . . . . . . . . . . . . .2489.00 +118.00 2937.00 1876.00 Inmarsat . . . . . . . . . . . . . . . . . . .712.00 +6.50 831.00 526.00 Rexam . . . . . . . . . . . . . . . . . . . .313.80* +11.20 348.80 253.40
Catlin . . . . . . . . . . . . . . . . . . . . .337.90* +7.40 394.60 303.20 Intercontl Hotels . . . . . . . . . . . . 1133.00* +11.00 1244.00 762.50 Rightmove . . . . . . . . . . . . . . . . .732.50 –1.50 796.50 456.90 Wolseley . . . . . . . . . . . . . . . . . .1469.00 +46.00 1742.00 1155.00
Centamin Egypt . . . . . . . . . . . . .193.50 +2.70 194.40 92.00 Intermediate Capital . . . . . . . . . .292.50 +6.20 320.00 233.50 Rio Tinto . . . . . . . . . . . . . . . . . .3604.00 +46.50 4104.00 2435.00 Wood Group (John). . . . . . . . . . .390.60* +2.50 411.70 279.60
Centrica . . . . . . . . . . . . . . . . . . .341.00 –0.20 347.00 236.30 Intertek . . . . . . . . . . . . . . . . . . .1853.00 +65.00 1860.00 1136.00 RIT Capital Partners . . . . . . . . . 1135.00 +22.00 1215.00 940.00 WPP . . . . . . . . . . . . . . . . . . . . . .729.00 +17.50 744.00 520.50
Charter Intl . . . . . . . . . . . . . . . . .660.00 +2.50 855.50 563.50 Intl Personal Fin . . . . . . . . . . . . .267.40* +1.00 283.00 135.30 Rolls Royce . . . . . . . . . . . . . . . .591.00 +8.00 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . . 1191.00* +24.00 1344.50 815.00
Chemring . . . . . . . . . . . . . . . . .2977.00 +10.00 3711.00 2363.00 Intl Power . . . . . . . . . . . . . . . . . .386.80 +6.80 396.80 248.20 Rotork . . . . . . . . . . . . . . . . . . .1684.00* +16.00 1712.00 1081.00 LONDON TOP 250 BY MARKET CAPITALISATION
Close Bros . . . . . . . . . . . . . . . . .718.00 +12.50 806.50 657.00 Invensys . . . . . . . . . . . . . . . . . . .287.70 +1.90 350.30 224.90 Royal Bank Of Scot . . . . . . . . . . . .49.02 +1.18 58.95 28.25
Cobham . . . . . . . . . . . . . . . . . . .236.90 +0.40 278.60 205.50 Investec . . . . . . . . . . . . . . . . . . .499.80 +12.20 565.00 411.50 Royal Dutch Shell A . . . . . . . . .1903.00 +39.50 2068.50 1621.00 * Ex-Dividend † Suspended
COLT Group . . . . . . . . . . . . . . . .122.70 +6.20 144.20 107.70 ITV . . . . . . . . . . . . . . . . . . . . . . . .57.75 +0.95 71.75 41.04 Royal Dutch Shell B . . . . . . . . .1852.00 +41.00 1997.50 1550.00
Compass . . . . . . . . . . . . . . . . . .544.00 +10.00 574.50 350.10 Jardine Lloyd Thompson. . . . . . .600.00* +11.00 604.50 420.70 RSA Insurance . . . . . . . . . . . . . .131.20* +2.50 142.00 114.10 www.interactivedata.com

FTSE 100 gets a US boost to Wall St rises, S&P

close at a four-month high makes strong gains
killed the Gulf of Mexico oil well that terday’s news that the bank’s chief IBM was among the top boosts to
THELONDON began spilling oil and ravaging its
share price in April.
executive Eric Daniels will retire in
the next year, leaving the part-nation- THENEW YORK the Dow after it agreed to buy
Netezza Corp for $1.7bn in the latest

REPORT BP ended the day up just over two

per cent, with fellow integrated oil
and gas majors Royal Dutch Shell and
alised British bank to find a successor
capable of fighting off a potential
break-up.
REPORT in a string of large tech deals. Shares
of IBM rose 1.2 per cent to $131.78.
Volume was light with about 7.16
BG Group also up over two per cent. Daniels , criticised by Lloyds share- billion shares traded on the New York
In association with Looking ahead, technical factors
remain positive in the short term,
holders for the takeover of rival HBOS
at the height of the financial crisis
In association with Stock Exchange, the American Stock
Exchange and Nasdaq, below last
said Nicolas Suiffet at Paris-based two years ago, will stay at the helm year’s estimated daily average of 9.65
technical analysts Trading Central. until a replacement is found. The billion.
“Both 20-day and 50-day moving HBOS deal saddled conservatively run Recent days have seen weak to mod-
averages are bullish with Bollinger Lloyds with huge losses on commer- erate volume, and traders are looking

B T
ritain’s leading share index bands widening substantially. Daily cial and retail loans and forced the he S&P 500 closed at a four- for a pick-up in trading to confirm the
extended early gains to close MACD is holding above its signal line bank to take £17bn of emergency gov- month high yesterday as a long- market has made a convincing break-
strongly yesterday, after US and short-term momentum oscilla- ernment help, handing a 41 per cent awaited break above a technical out.
market bulls helped London to tors remain positive with further stake to the taxpayer. range and a flurry of positive The Dow Jones industrial average
its highest close since late April. upward potential,” he said. Miners also rose, lifted by gold’s corporate news increased investor was up 145.77 points, or 1.37 per cent,
The FTSE 100 closed up 94.09 Next resistance should be met move to a fresh high, with precious optimism. at 10,753.62.
points, or 1.7 per cent, at 5,602.54, around 5,665 and 5,755 points “in the metals miner Fresnillo ending up 0.7 The break came a day before a The Standard & Poor’s 500 Index
more than reversing the 0.6 per cent forthcoming days,” although a break per cent. Federal Reserve meeting in which the was up 17.12 points, or 1.52 per cent,
decline in Friday’s session after risk below 5,510 could see it decline Leading the FTSE fallers was insur- central bank is expected to renew a at 1,142.71.
appetite made a strong return. towards next support at 5,350, said ance buyout vehicle Resolution, promise to keep its portfolio from The Nasdaq Composite Index was
“Traditional defensives have Suiffet. which ended down 1.6 per cent after shrinking but is not seen taking new up 40.22 points, or 1.74 per cent, at
enjoyed their day in the sun, with Gains at the US open helped under- a strong run prior to its entry to the steps to ease monetary policy. 2,355.83.
investors taking the view that Friday’s pin the FTSE, traders said, with all FTSE 100 at the index’s latest reshuf- The S&P 500 has struggled to make The National Bureau of Economic
sell-off was overdone,” said Yusuf eyes on the next Federal Reserve inter- fle. a sustained move above 1,130, which Research said that the longest reces-
Heusen, senior sales trader at IG est rate decision on Tuesday and UK has been the upper end of a range sion since World War Two officially
Index, referring to demand for divi- home sales data later in the week for ANALYSIS l FTSE 5,602.54 that has persisted since June. ended in June 2009, though that did-
dend-yielding stocks. the next macro push. 20 Sep Yesterday’s gains could be a shot in n’t mean the economy had “returned
5,600
“It has been a well supported rally The heavyweight banking sector the arm if it sways institutional to operating at normal capacity.”
from a mix of sectors, with cruise helped drive the rally, adding 12 5,400 investors that September’s rally of 8.9 The bureau's announcement “is a
operator Carnival the strongest blue points to the index, buoyed by the per cent by the benchmark S&P index nice shot in the arm, psychologically,
chip ahead of tomorrow’s update,” he return of risk appetite and a positive 5,200 has further to go. since it suggests more progress than
added. broker note from JP Morgan “We’ve been waiting for this level some parts of the market had allowed
Carnival ended the day the top Cazenove. 5,000 to be penetrated, and breaching it for,” said Bruce McCain, chief invest-
FTSE 100 gainer, up five per cent. Barclays ended up 2.8 per cent, just 4,800
makes it hard to be too negative right ment strategist at Key Private Bank in
Gains for oil major BP fuelled the pipping sector peer Lloyds Banking now,” said Frank Gretz, market ana- Cleveland, Ohio. He added: “It sug-
rally earlier in the session after the Group, up 2.7 per cent. 4,600 lyst and technician at Shields & Co in gests an opening of potential going
firm announced it had permanently The rise at Lloyds came despite yes- 21 Jun 9 Jul 29 Jul 18 Aug 8 Sep New York. forward.”
CITYA.M. 21 SEPTEMBER 2010
In association with Markets & Investment 29

A libertarian innovator burning to

see his company grow even further
The co-founder of “Regulatory
Saxo Bank speaks environment
to Marc Sidwell on is the biggest
the investment challenge for
giant’s 18th birthday Saxo Bank.
Regulation is
important
F
RESH off the plane from Denmark,
Kim Fournais talks rapidly, his pas-
sion unmistakable. He is in celebrato- but not over-
ry mood. “Saxo Bank is 18 years old
today – we are old enough for a driving regulation.”
licence!” Evidently, to Fournais the compa-
ny he helped found is still young. “I love it.
I love what we’re trying to do. I log in to
our platform and I get a lot of ideas daily.”
Many traders don’t realise how much
they rely on the Danish investment bank,
which provides white label services to
other financial institutions, customising
trading platforms based on their underly-
ing technology. Saxo Bank’s net profits in
the first half of 2010 were DKK 551m
(£62m). The bank’s clients’ collateral
deposits are DKK 26.6bn, while Saxo Asset
Management has DKK 28.8bn under man-
agement. Since 2008 the bank has opened
new offices in nine countries. It is apply-
ing for a separate licence for its London
office to stay local and flexible.
Saxo Bank began in the friendship of
Fournais and Lars Seier Christensen, who
was based in London, working as a broker
for Gerald Metals. It wasn’t an easy start,
as Fournais remembers: “We had $100,000
in capital to start – it would be hard to do
it like that today – we had just three and a
half months to get a positive cash flow.”
For Fournais and Christensen, it was a
chance they had to take. Their entrepre-
neurial drive has always been matched by
their libertarian beliefs. A copy of Ayn CV | KIM FOURNAIS
Rand’s novel Atlas Shrugged sits proudly
on display in the office where we talk. The
book is so important to Saxo Bank’s
founders that they arranged a Danish world’s best white label solution provider. Kim Fournais (rhs) couldn’t keep buying cars with money Age: 44
translation and gave copies out to their They have 200 IT staff in their Copenhagen and Lars Seier they don’t have. At least in the UK you are
employees. They are outside Denmark’s office, and more in India and the Ukraine. Christensen (lhs). The trying to change. In Denmark we are Education: “Uneducated”.
intellectual mainstream: it is known for Still, Fournais is clear where his biggest founders of Saxo paralysed. Politicians wait for the plat-
social democratic politics. But they were problem lies, and it isn’t the challenge of Bank began with just form to be burning, so there could still be Work: Co-founder and chief executive of
able to see opportunities that convention- managing giant IT projects. “Saxo Bank’s a few months to a more drastic development.” Saxo Bank.
al opinion missed. They achieved positive biggest challenge is the regulatory envi- make the business Yet in Asia, he sees the passion that
cash flow within just two months. ronment. Regulation is important, but work. drove his own success: “‘Political correct- Family: Married a second time, three kids.
“We are always competing on product, over-regulation is not creating a safer or ness’ won’t help the welfare societies of
price and service,” says Fournais. “We saw more sound system. Rule changes are very Picture: Europe. People become complacent. In Hobbies: A very active sportsman,
an opportunity in Denmark. It was not resource intensive for us.” Micha Theiner Asia there are people who work hard for Fournais is passionate about nature and
optimal conditions but we had a low cost Recent cutbacks at Saxo Bank have cer- /City A.M. what is a low-paying job here. They want it outdoor life. He owns an island in
base and we provided a service that was tainly helped to reduce other costs. “We as much as we did when we started.”
closer to clients.” Saxo Bank’s drive to cre- had a little too much ‘social democracy’ at Fournais has clear advice for anyone in
Denmark.
ate greater transparency soon came into Saxo Bank,” Fournais jokes. They brought the City with ambitions to follow in he
its own with the arrival of the web: “We in “someone with a sharpened pencil”, and his partner’s footsteps: “You need per- On being an entrepreneur: ”It must be
hadn’t heard of the internet when we Eric Rylberg, to execute greater corporate sistence. You have to burn with everything something you have to do. It isn’t funny
started. But we saw E-Trade and others in discipline. That hard decision has brought you’ve got. Then from nothing you can be some days: you’d rather stay home in bed.”
the United States and in 1995 we began their best ever half year results. part of changing the environment.” Still a
discussing how to use it.” This year, Saxo Fournais is less optimistic about the man in a hurry, burning with energy and Favourite book: Atlas Shrugged, by Ayn
Bank launched a new online equity plat- power of politicians to stop running up looking for new frontiers, Kim Fournais Rand.
form and in June they won the title of the unsustainable deficits. “A private person has clearly only just begun.

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 Lifestyle
30
Battling Jesus and
Poker Gods in WC2
Dominic Wells is mixing it up
with the world’s best at the
World Series of Poker Europe
R
AISE 2,000,” I say, and toss my chips
on to the table. My face is carved
from granite, but my heart thumps
so loudly it could start its own drum
‘n’ bass label. In any big poker tournament
there’s always one Table of Death, the one
table where all the top pros happen to be
seated. And I’m on it.
This is Day One of the prestigious World
Series of Poker Europe, which for two
weeks takes over the Casino at the Empire
in London’s own beating heart, right on
Leicester Square. Gathered here today for
poker glory and a prize pool of more than
half a million pounds are the world’s very
best players... and me.
The capital’s gone mad for Texas Hold
‘Em: your local pub probably runs a week-
ly tournament; most casinos now offer
tournaments and cash games; and
the new Fox poker club opens on
Shaftesbury Avenue this Friday after
a series of mildly farcical delays. But
this tournament is on a completely
different scale: 582
players spread
across nearly 60
poker tables
have have
paid £1,000
each to enter.
Just the noise
of riffled chips is deafening. The Casino at
the Empire is part of the Harrah’s chain,
which owns half a dozen Las Vegas land-
marks including Caesar’s and the Rio,
| Poker
home of the massive World Series of
Poker. And, hearteningly, it’s also my regu-
lar. I often descend, fortified by a few
drinks, to the all-night poker room at this
high-tech Aladdin’s Cave. But it’s one
thing to pit your wits and nerve against a
few late-night gamblers and wannabe
pros, and quite another to take on a clutch
of World Champions.
Especially when so many are sat at my
table. To my left, five-times WSOP champ
Chris “Jesus” Ferguson, so named
because with his long black hair and
beard he resembles Christ seated at the
Last Supper -- that is, if He had worn a
black Stetson in place of a halo. Opposite,
Ramsey “the Ramsinator” Ajram, a fear-
less British player. To my right, Antonio
Esfandiari, a former magician and WSOP
champion, dressed in a lurid green shirt.
“Whatever you do,” my friend and poker
mentor “Casino” Steve had warned me
earlier, “stay away from the guy in the
green shirt.” Now he’s only gone and sat
next to me.
But the scariest of the lot is a blond
Scandinavian youth with the fluffy white
cardigan of a school teacher, the tousled
hair of a choirboy and the ice-cold stare of
a serial killer. He pauses after my raise, fid-
dles with his towering chip stacks, deep in
thought. Will he call me? For once, I
wish he would.
Instead, this
cherubic
assassin does
a clever
thing: he scru-
tinises not my face, but
my fingers. He notices
a tell-tale tremor, more
often the sign of a mas-
sive hand than of weakness...
and folds. A big bald bully in
shades is less cautious. “I’m all-in,” he
growls, shoving his whole stack into the
centre, hoping to force me off the pot.
“Then I’m snappin’,” I say calmly, and
push in all my chips. I’ve only learned this
slang word for “calling instantly” today,
but I’m using it to convince the others I’m
a globe-trotting poker veteran. The pros
are like sharks: if they smell blood, if they
think you’re “dead money” (a novice, easy
to knock out), they’ll eat you alive. I turn
over pocket Aces, the best of all starting
hands, that comes along just once in every
221. Cursing, the bald bully hurls his hum-
ble King-Jack on to the felt.
I’m way ahead. Things get tense when
the dealer turns up a second King, but my
pair of Aces stays good. I’m up to 17,000
chips! Not bad considering we all started,
six hours and a lifetime ago, with just
3,000.
After that, the Poker Gods smile on me.
Even the world champs give me respect. I
loosen up, shoot the breeze between
hands. Poker’s a sociable game, after all,
played by clever people with a lot of time
on their hands. And so I learn that the
“AYODHYA” tattoo on a player’s arm
means “Undefeatable” in Sanskrit, and
that his brother has one that’s an ambi-
gram – ie it reads the same upside down. I
learn the Finnish for “supercalifragilistic-
expialidocious”: it is, I am reliably
informed, “superopsimopsitopsipangphe-
nomenalis”. And I learn one of the many
side-betting games that pros use to while
away the hours, as if betting on their
poker hands wasn’t quite enough.
Esfandiari plays it with Ramsey, at €100.
It goes like this: while having his shoul-
WSOPE | THE PROS TO AVOID IN THE £10,000 MAIN EVENT, 23-28 SEPT
Phil Ivey The world’s best all-round poker player
won his eighth World Series tournament this
summer.
Chris Bjorin Swedish veteran Bjorin has cashed
in half the WSOPE events held in the past four
years, final tabling a third of them.
Annette Obrestrad The 21-year-old Norwegian
CITYA.M. 21 SEPTEMBER 2010
Dominic Wells
gets stuck into
the action at the
Casino at the
Empire.
ders rubbed at the table, Esfandiari asks
the massage girl a random question –
“How many push-ups can President
Obama do?”, or “How much money
would it take to get Ramsey there to give
up sex for six months?”, or “How much
would you have to pay him to shave his
head?” Whoever gets closest to her num-
ber wins. The results are funny, and
strangely revealing.
And somehow, even on the Table of
Death, I manage not just to stay alive, but
to prosper. I catch some good hands, and
pull off a bluff or two. And when finally,
after 12 intense hours of play, the tourna-
ment director calls a halt, I’m up to
25,000 chips.
It’s now midnight. I savour a beer on the
balcony of the Empire’s Icon bar, literally
and figuratively on top of the world, as
drunken clubbers lurch about Leicester
Square below. I have made the top 15%.
One of just 120 men left standing from
Day One.
True, I didn’t play the Main Event. This
has a nerve-shredding buy-in of £10,000,
lasts five days, and is open to all-comers
this Thursday – come and have a go if you
think you’re hard enough. But for me, it’s
more than enough. I’ve held my nerve
against the pros. And I have every chance
still of making serious money.
Because on Monday, Day Two, I have to
do it all over again...
Dominic made a valiant run yesterday, finally
going out in 38th place, beating 95 per cent of
the field and collecting £3,300 for his efforts. The
WSOPE Main Event is at the Casino at the
Empire, Leicester Square, from Sept 23-28. Free
admission to spectators. www.thecasinolsq.com.
prodigy won the first WSOPE Main Event in
2007, and remains a feared opponent.
Michael Mizrachi “The Grinder”, as he’s known, is
on a roll at the moment, winning big at the Vegas
WSOP in the summer.
Jeffrey Lissandro The tough Aussie won the Pot
Limit Omaha event at the weekend.
CITYA.M. 21 SEPTEMBER 2010 WORDS BY
ZOE STRIMPEL
Lifestyle | Restaurant 31

NYC chic at the Wharf

Advertisement feature

A Sunday lunch
that promises to
be a perfect 10
M
The bar at elissa Sargin is an events manager at
Tompkins. Blueprint Café, one of the host restaurants
for the American Express® 10-10-10
event, as part of this year’s London
Lots of choice and a concentrate flavours (mine was neon yel-
low, my friend’s was hot pink), we soon
chips were great, though. My wiener
schnitzel made from milk-fed veal and
Restaurant Festival. She tells us what this relaxed
riverside restaurant has to offer and how they’re
good location make hurried back to the safety of wine, to the
clear irritation and offence of the barman.
served with spinach was a bit average –
people get very touchy about their
celebrating this new event.

WHAT IS YOUR ROLE AND WHAT DO YOU LOVE ABOUT IT?

this Pan Peninsula We had a table by the window and lost
ourselves in the view, which is thrillingly
futuristic. That’s not to say the menu did-
newbie a smart bet n’t draw the eye too – it did, with its lucky-
dip approach to modern dining. Lobster
bisque jostled with sardine pate, goat’s
cheese salad and chicken liver; meanwhile
Tompkins mains include the requisite “grill” section;
a hefty pasta section; and plat du jour and
3 Pan Peninsula Square E14 9HN seafood platter lists too.
020 8305 3080, www.tompkins.uk.com Luckily, my companion is a good eater
and he did our table proud by ordering a
FOOD hhhii starter, pasta and grill dish. His pea and
SERVICE hhhhh ham soup was a great effort, with large,
ATMOSPHERE hhhii fibrous strips of pig floating through a
thick, green soup that clearly came from
Cost per person without wine: £30 peas (not tins). My lobster bisque was also
tasty, rich and sweet with a dash of brandy.
Rhodri’s herb and mascarpone risotto
schnitzel and this one would probably
have left such people slightly cold. I found
it hard to discern a particular taste and
the batter was too bready and not puffy
enough, but it was still pretty nice in a
fried sort of way.
Desserts were surprisingly limited con-
sidering the scope of the menu. We had a
perfectly fine crème brulee and a seriously
good chocolate fondant with pistachio
cream. Other choices were underwhelm-
ing: raspberry cheesecake, sorbet, passion
fruit tart.
It’s hard to know with a menu as vast
and conceptually baggy as this one
whether dishes like the schnitzel are spe-
cialties or just more choice on a choice-
filled menu. On balance, though,
Tompkins is a good thing. It’s got every-
“My job is Front of House as well as events manager; one of my
main responsibilities is to look after the diners and ensure they
have a wonderful experience. I enjoy greeting people and look-
ing after them; I turn into a bit of a mother hen! I’m in the
office sometimes but I get a great buzz out of working in the
restaurant; it’s where I prefer to be.”
WHAT MAKES BLUEPRINT CAFÉ SPECIAL?
“Jeremy Lee, the chef. I’m so totally inspired by him; I really
admire his style. There is no fuss, no frills. He knows his food so
well and he gets great produce that doesn’t need tampering
with. Although the views here are fantastic, they are a bonus.
The food is the main event. I’m proud to serve his food, it’s not
pretentious in the slightest. If you enjoy good food and good
wine, you’ll be happy.”
BLUEPRINT CAFÉ IS INVOLVED IN THE LONDON RESTAURANT
FESTIVAL – ARE YOU DOING ANYTHING SPECIAL?

T
HE day we went to Tompkins, on the
ground floor of Docklands’ largest
residential tower Pan Peninsula, it
was grey and chilly. This was a
shame, since there is an impressive river-
side terrace where suits relaxing from a big
day at the Wharf are meant to kick back
with their gin and tonics and shoot the
financial breeze before heading inside for
good wine and top grub. A warm and
sunny evening would have set the scene
well.
Instead of lingering outdoors, we quick-
ly ducked inside, slipping out of the gaze
of the skyscrapers and the undulating DLR,
and found ourselves somewhere rather
unexpected. Books, nick nacks and other
homely flotsam form at least 50 per cent of
the look at Tompkins, perhaps in reference
to its location inside a residential block.
Still, if this is meant to be your kitchen
away from home, it’s pretty glamorous.
Huge river-facing windows, extreme-
ly high windows and a mezzanine
all add minimalist chic.
First, we sat up at the bar, fac-
ing a huge display cabinet with
quirky bits and bobs in it.
If felt almost Bohemian
– if such a thing is possi-
ble in the shadows of
towering banks. But the
cocktails, which you’d
expect to be excellent in
a place that has mod-
elled itself on the
hip diners of NYC,
were disappoint-
ing. Sickly sweet
with made-from-
was a grainy rice pat oozing herby flavour,
and enriched – not weighed down – by the
cheese. I ate more of it than he did, feeling
sudden greed. His 28 day-old fillet steak
was a fair attempt at a NY-style beef but
not remarkable (would the herb-crusted
one with marrow have been better?). The
thing you need: a terrace, two bars, great “Yes. We’re participating in American Express 10-10-10. It’s an
views and a convenient setting. And even exclusive event for American Express customers and we’re
if the steak isn’t quite up to New York stan- partnering with The Three Chimneys in Isle of Skye and their
dards, the spirit of choice on the menu is chef Michael Smith to create a unique Sunday lunch. Like many
deeply American. If you’re looking for a great London restaurants, this lunch will encourage Londoners
friendly, tasty one-size-fits-all restaurant, to make the most of the many diverse and exciting restaurants
this is a good bet. that are available to them. I’m really looking forward to setting
it up actually.”
ANY INSIDERS’ TIPS FOR GETTING THE BEST OUT OF BLUEPRINT
CAFÉ?
“There’s a little terrace that not many people know about that’s
open even when the restaurant isn’t; it’s a great place for tea
and cake.”
Taking place on 10 October 2010, American Express 10-10-10 will see ten
celebrated chefs from outside London pairing up with ten of their equally
renowned London peers to offer a unique collaborative menu for Sunday
lunch in each of the host restaurants.
London Restaurant Festival forms part of American Express’ Preferred
Seating Programme, which provides Cardmembers with exclusive offers
to a host of cultural events, helping them to create some truly memorable
moments.
For more information, visit
londonrestaurantfestival.com
American Express Services Europe Limited. Registered Office: Belgrave House, 76 Buckingham Palace Road,
London SW1W 9AX. American Express Services Europe Limited is authorised in the United Kingdom by the
Financial Services Authority under the Payment Services Regulations 2009 (reference number 415532) for the
provision of payment services.
 32 Lifestyle | TV& Games CITYA.M. 21 SEPTEMBER 2010

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders; BBC News
8pm Holby City
9pm Lost Land of the Tiger
10pm BBC News
10.25pm Regional News
10.35pm CHOICE My Story
11.05pm FILM The Girl in the
Park: Drama, starring
Sigourney Weaver 2007;
Weatherview
12.55am Sign Zone: See Hear
1.25am Sign Zone: Digging for
Britain 2.25am Sign Zone: Natural
World 3.25am Sign Zone: Britain’s
Empty Homes 3.55am-6am BBC
News
6pm Eggheads
6.30pm Climbing Great
Buildings
7pm Live Snooker: The World
Open.
8pm The Great British Bake
Off: The three remaining
contestants head for London
for the grand final. Last in the
series.
9pm CHOICE Excluded
10pm Later Live – with Jools
Holland
10.30pm Newsnight; Weather
11.20pm Today at Conference
11.50pm Snooker
12.40am Snooker Extra
2.40am BBC News 3.55am-6am
Close
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
7pm Emmerdale 7pm Channel 4 News 7pm Five News at 7
7.30pm Grimefighters 7.55pm 4thought.tv 7.30pm How to Take Stunning
8pm New Who Wants to Be a 8pm Help! My House Is Falling Pictures; Five News Update
Millionaire?: Big-prize quiz. Down 8pm Nature Shock: The Crocs
9pm 71 Degrees North: The 9pm Ramsay’s Best Restaurant That Turned to Rubber; Five
eight remaining celebrities are 10pm This Is England ‘86 News at 9
challenged to build a snow 11.05pm Alan Davies’ Teenage 9pm CHOICE CSI: Miami
cave. Revolution 10pm CSI: NY; Five News
10pm ITV News at Ten 12.10am Late Night Poker Update MY STORY
10.30pm London News 1.10am Beach Volleyball 2am BBC1, 10.35PM
Triathlon ITU World Championship 11pm CSI: Crime Scene
10.35pm Swingtown Investigation Christine Bleakley hears three moving
Series 2.55am Duathlon. The World
11.35pm Ladette to Lady Championship. 3.20am KOTV 12am NCIS 12.55am SuperCasino true-life love stories, including that of a
12.30am The Zone; ITV News Boxing Weekly 3.45am British 4.05am Chinese Food in Minutes woman’s unrequited affection for a
Headlines Formula Ford Championship 4.15am 4.30am House Doctor 4.55am Catholic priest.
2.30am The Rockford Files 3.20am The Grid 4.40am World Sport Rough Guide to Activity Holidays
The Jeremy Kyle Show 4.15am- 5.05am GT Academy 5.35am- 5.10am The New Tomorrow 5.35am-
5.30am ITV Nightscreen 6.20am UK School Games 6am Michaela’s Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT LIVING Ricky Gervais Show 11pm King 5.30am-6am How Does That
SATELLITE & CABLE

7pm Sky Sports News at Seven
7.30pm Soccer Special
10.30pm Football Asia 11pm
A-League 11.30pm FIFA 12am
Carling Cup Football 1.25am
Spanish Football 3.30am Carling
Cup Football 5am Football Asia
5.30am-6am A-League
SKY SPORTS 2
6.30pm Ladies European Tour
Golf 7.30pm Live Carling Cup
Football 10pm The Ultimate
Fighter 11pm Poker Million 1am
The Ultimate Fighter 2am-4am
Davis Cup Tennis
SKY SPORTS 3
7pm World Pool Masters 8pm
European Seniors Tour Golf
8.55pm Live Spanish Football
11pm Golfing World 12am Asian
Tour Golf Show 12.30am Golf
1am Ladies European Tour Golf
2am European Seniors Tour Golf
3am Asian Tour Golf Show
3.30am-4am Golf
7pm Live Snooker 10pm World
Touring Car Championship
10.30pm World Series by
Renault 11pm-2am Women’s
Under-17s World Cup Football
ESPN
7pm Live Bundesliga. TSG
Hoffenheim v Bayern Munich
(Kick-off 7.00pm). 9pm ESPN
Game of the Week 9.30pm
ESPN Serie A Kicks 9.45pm
ESPN Scottish Premier League
Kicks 10pm Pardon the
Interruption UK 10.30pm
Premier League Review
11.30pm Russian Premier
League Review 12am ESPN
Game of the Week 12.30am
Press Pass 2010 1am AFL
Review Show 2am ESPN
Premier League Kicks 2.15am
ESPN Serie A Kicks 2.30am
Bundesliga Review Show
3.45am ESPN Scottish Premier
League Kicks 4am-5am FIA
GT1 World Championship
7pm Four Weddings US 8pm
Britain’s Next Top Model 9pm
Drop Dead Diva 10pm Teen
Mom 11pm Criminal Minds
12am CSI: Crime Scene
Investigation 2am Charmed
3.50am Girls of the Playboy
Mansion 4.40am The Jerry
Springer Show 5.30am-6am
Home Shopping
BBC THREE
7pm Total Wipeout 8pm Cherry
Gets Married 9pm Don’t Tell the
Bride 10pm EastEnders
10.30pm Ideal 11pm Family Guy
11.45pm Don’t Tell the Bride
12.45am Bizarre ER 1.45am
Ideal 2.15am Total Wipeout
3.15am Glamour Models, Mum
and Me 4.15am-5.15am Cherry
Gets Married
E4
7pm Hollyoaks 7.30pm Friends
9pm Smallville 10pm The
Cleveland Show 10.30pm The
of the Hill 12am Scrubs 1am The Work?
Ricky Gervais Show 1.25am The
Cleveland Show 1.50am King of DISCOVERY HOME &
the Hill 2.35am Joan of Arcadia HEALTH
3.20am Samantha Who? 4am 7pm Multiple Mums 7.30pm
The Hills 4.25am-6am Switched From Here to Maternity 8pm EXCLUDED
HISTORY Sex Change 9pm Embarrassing BBC2, 9PM
Illnesses 10pm Eat Yourself Partly improvised drama exploring the
7pm How the Earth Was Made
8pm Mysteryquest 9pm Sexy with Gillian 11pm Plastic problems faced by inner-city schools.
Ancient Discoveries 10pm Nazi Surgery 12am Embarrassing Starring Bryan Dick, Craig Parkinson
Hunters 11pm The Nostradamus Illnesses 1am Eat Yourself Sexy and George Whitehead.
Effect 12am Ancient Discoveries with Gillian 2am Plastic Surgery
1am The Lost Evidence 2am 3am Sex Change 4am A Baby
How the Earth Was Made 3am Story 5am-6am Bringing Home
The Cosmos: A Beginner’s Guide Baby
4am-5am Clash of the Gods
SKY1
DISCOVERY 8pm The Little Couple 8.30pm
8pm How Do They Do It? Super Nurses 9pm FILM Batman
8.30pm How It’s Made 9pm Forever. Adventure sequel, with
Deadliest Catch 11pm X- Val Kilmer. 1995. 11.20pm
Machines 12am Bear Grylls: House 12.20am Road Wars CSI: MIAMI
Born Survivor 1am Deadliest 1.20am Night Cops 2.15am UK CH FIVE, 9PM
Catch 2am Chris Barrie’s Border Force 3.05am Oops TV When a homeless man is arrested for
Massive Machines 3am Top Tens 3.30am The 4400 4.20am the stabbing of an heiress, Horatio and
3.50am Clash of the Dinosaurs Crash Test Dummies 5.10am- the team discover Delko is working as
4.40am Unsolved History 6am Sell Me the Answer a forensics expert for the defence.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
24 10 15 8 39 13 19 
8 17 4

10 10 11
Place the numbers from 1 to 9 in each empty cell so that each 29 7    
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 19 34
38
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 21 3
above or to the left of it. 16 12 10
You can only use the digits 1-9 12 17 
  and you must not use the
12 14 11
45  
same digit twice in a block.
   The same digit may occur 13 28     
16 27
    more than once in a row or
column, but it must be in a 20 7
16
22
6
23
33 17
  separate block.
10 
6 21 14
    9 11 17


  ACROSS DOWN
4 Golf course by 1 Liquid used as a
   
   WORDWHEEL C H
the sea (5)
7 Underwater missile (7)
base for soup (5)
2 Pare (4)
Using only the letters in the Wordwheel, you have 8 Sound practical 3 Reject or turn down (4)
  ten minutes to find as many words as possible,
E R judgment (6,5) 4 Deprivation (4)
12 Game-bird of the
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters O pheasant family (9)
5 Middle of the day (4)
6 Item of bed linen (5)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
P A 15 Pottery made of
porous clay fired 9 Be worthy or
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
S K at low heat (11) deserving (5)
10 Hospital worker (5)
20 Marine plant (7)
QUICK CROSSWORD 6 8 2 9 9 5 7 21 Exchanges for 11 Give qualities or
% ( 7 7 ( 5 % )
9 7 3 8 3 1 5 2 SUDOKU          money (5) abilities to (5)
4 1 5 8 4 9 7          13 Roman goddess
$ ( $ ' + ( 5 (
1 3 9 7 2 8 9
6 7 2 5 $ * ( 1 9          of love (5)
, 5 6 7 $ 7 8 ( 4 5 7 1 2 3
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%
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+ '
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8 1 2
6 1 4 9 8 7
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WORDWHEEL          16 Small stream (4)
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% , / 2 = ( 1 * (
7 2 3 1 9 4 7 8          18 Not diluted (4)
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 Sport
Holmes firmly
behind track
legacy plans
Olympic great on the
2012 stadium row and
Commonwealth Games.
By Frank Dalleres
L
ONDON’S Olympic Stadium will
retain an athletics track after
the 2012 Games, regardless of
who moves in – and more peo-
ple will benefit as a result, says Dame
Kelly Holmes.
The future of the Stratford Olympic
Park’s centrepiece is still shrouded in
uncertainty with less than two years
to go until the first starter’s pistol is
due to be fired in the capital.
West Ham are one of the leading
parties interested in occupying the
arena after the Games, when the
capacity will be significantly reduced
from its initial 80,000 seats.
But the east London football club
have had to accept that the running
track will remain, despite the diffi-
culties it poses to tenants, as London
looks to deliver on its promise of an
athletics legacy.
Hammers fans may not agree but
Holmes, who won 800m and 1500m
gold at the Athens Olympics in 2004
and visited the Stratford stadium just
two weeks ago, insists that is exactly
how it should be.
“The way it’s going to go is the
track will stay,” Holmes told City A.M.
“The debate is about how big the
capacity will be: 80,000 or 25,000.
“Even if West Ham come in the
track has to stay. It happens all over
Europe – most stadiums are track and
sport.
“Part of the Olympics is the legacy
and that means it’s accessible. If there
are two sports in there that means
more people will reap the benefits.”
Of more immediate concern to
Holmes, and indeed all British athlet-
ics aficionados, is the upcoming
Commonwealth Games in India.
The event, which starts next week,
STRAUSS ‘OUTRAGE’ AT
BUTT’S FIX CLAIMS
ENGLAND CAPTAIN’S ANGER
AT PAKISTAN CHIEF: PAGE 35
has been overshadowed by delays and
security fears, but Holmes, who is
Commonwealth Games England pres-
ident, is still looking forward to it.
“The controversy hasn’t affected
my enthusiasm at all,” she added.
“There is always going to be contro-
versy surrounding the Games but we
had that with Athens where they
were still planting trees on the day it
opened. Delhi is probably a bit fur-
33
Dame Kelly Holmes
says the 2012 stadi-
um will retain a
running track even
if West Ham move
in post-Olympics.
Picture: GETTY
ther ahead than that.
“The Games are a platform, a step-
ping stone for many young people.
From an athletes point of view it is so
overwhelming [at big competitions].
It is giving athletes a good idea of
what it’s all about.”
Dame Kelly Holmes was speaking at the
launch of Aviva Street to School. For more
information on Aviva Street to School please
go to www.aviva.co.uk/street-to-school
 34 Sport | Football CITYA.M. 21 SEPTEMBER 2010

Results
CRICKET
FOURTH ONE DAY INTERNATIONAL
England v Pakistan
We’re still up
for the cup,
LORD’S: Pakistan beat England by 38 runs
PAKISTAN
K Akmal c Strauss b Broad ....................................................................28
M Hafeez c Trott b Swann ......................................................................64
A Shafiq b Swann ........................................................................................11
M Yousuf c Davies b Swann ......................................................................3
F Alam b Swann ..........................................................................................29
U Akmal c Davies b Broad........................................................................21

vows Harry
S Afridi c Strauss b Bresnan ..................................................................37
A Razzaq not out..........................................................................................44
U Gul not out ....................................................................................................5
B2 lb17 w4......................................................................................................23
Total (7 wkts., 50 overs)........................................................................265
Fall: 62, 86, 94, 137, 155, 209, 210.
Bowling: Bresnan 10-0-62-1, Anderson 10-1-54-0, Broad 10-0-
44-2, Yardy 7-0-39-0, Swann 10-0-37-4, Collingwood 3-0-10-0.
ENGLAND
A Strauss c Alam b Akhtar ....................................................................68
S Davies b Ajmal ..........................................................................................49 Although Redknapp has been forced
J Trott b Afridi ................................................................................................4
I Bell c Sub b Ajmal ....................................................................................27
TOTTENHAM to follow Wenger’s lead and protect his
P Collingwood b Gul ......................................................................................4
first-team stars, the wily boss can’t
E Morgan c Yousuf b Akhtar ..................................................................28 understand why clubs not playing in
M Yardy b Akhtar ..........................................................................................9
T Bresnan b Gul................................................................................................1
ARSENAL Europe continually devalue the com-
petition by fielding under-strength
G Swann b Gul................................................................................................12
S Broad b Gul....................................................................................................2 sides. “The Carling Cup is important,”
▲

J Anderson not out........................................................................................2 CARLING CUP he went on. “I can’t understand teams
B4 lb1 w14 nb2..............................................................................................21 in the middle of the table resting their
Total (46.1 overs) ......................................................................................227 BY JON COUCH
Fall: 113, 125, 127, 149, 171, 197, 205, 211, 224.
players in the Carling Cup. You have a
Bowling: Akhtar 10-0-59-3, Razzaq 7-0-42-0, Gul 8.1-0-32-4, TOTTENHAM boss Harry Redknapp chance of going to Wembley.
Hafeez 7-0-27-0, Ajmal 7-0-31-2, Afridi 7-0-31-1. says he will continue to show the “It’s a chance to win a cup and I
Umpires: B Doctrove & R Kettleborough. Carling Cup full respect – despite don’t know why they mess about
SNOOKER vowing to name an under-strength with their teams. It is different if you
WORLD OPEN (Glasgow)—33rd rnd: R O'Sullivan (Eng) bt M side for tonight’s north London derby. have Champions League football.”
King (Eng) 3-0. 4th rnd: A Mcmanus (Sco) bt M Stevens Spurs have a proud tradition in the One youngster set to make his
(Wal) 3-2, L Song (Chn) bt J Jogia (Eng) 3-1, J Cope (Eng) bt
D Harold (Eng) 3-2. League Cup having reached the final Tottenham bow tonight is Brazilian Brazilian Sandro
TENNIS at Wembley in two of the last three midfielder Sandro, who is in line for is set to make his
ATP BCR OPEN ROMANIA (Bucharest)—11st rnd: F Volandri seasons. his first start since arriving in a £6m debut tonight.
(Italy) bt L Kubot (Poland) 6-3 6-0. But with the added distraction of a move from Internacional. Picture: ACTION
ATP OPEN DE MOSELLE (Metz, France)—11st rnd: M Berrer Champions League campaign this sea- And Redknapp joked that chief IMAGES
(Germany) bt R Schuettler (Germany) 7-6 6-2; T Robredo son, Redknapp has been forced to scout Ian Broomfield could be for the
(Spain) bt D Brands (Germany) 6-1 7-6; D Istomin shuffle his pack and throw in his high jump if the 21-year-old isn’t up
(Uzbekistan) bt F Serra (France) 6-4 6-4 .
youngsters at White Hart Lane. to scratch. “He [Bloomfield] followed
WTA TASHKENT OPEN (Tashkent, Uzbekistan)—11st rnd: E “We’ve got lots of players who need him,” Redknapp explained. “I think he BOSSES’ LEAGUE CUP RECORDS LEAGUE CUP | HEAD TO HEADS
Ivanova (Russia) bt K O’Brien (GB) 7-5 6-1.
to play who haven’t featured recent- watched him four times; I didn’t have
WTA HANSOL KOREA OPEN (Seoul)—11st rnd: E Baltacha
(GB) bt S Kim (South Korea) 6-3 6-4. ly,” the Spurs boss said. “They are a chance to go to Brazil last year, it was League Cup Redknapp Wenger Redknapp Tottenham
good quality players who need games impossible for me during the season. Games 81 47 vs Wenger vs Arsenal
TODAY’S DIARY under their belt and some of the play- “Ian is my chief scout, I rely on
ers need a rest. him. It was the first time I’ve done Wins 38 27
(Football 7.45pm unless stated) Redknapp wins 0 Spurs wins 3
Carling Cup Third Round “I can’t keep using the same play- that but he came back and recom- Draws 14 6
Birmingham v Milton Keynes Dons...................................................................... ers. I am going to protect some of mended him very highly. Wenger wins 2 Arsenal wins 5
Losses 29 14 Draws 2
Brentford v Everton.................................................................................................... them. There will be lots of changes. “We checked him out with Dunga Draws 3
Burnley v Bolton..........................................................................................................
Arsene Wenger’s done it over the and and got fantastic reports, so we’ll Goals for 124 95 Redknapp goals 4 Spurs goals 15
Millwall v Ipswich ......................................................................................................
Peterborough v Swansea ........................................................................................ years and played the youngsters even have a look at the game tomorrow Goals against 99 65 Wenger goals 9 Arsenal goals 15
Portsmouth v Leicester ............................................................................................ in cup semi-finals. You’ve got to do night and see if Ian’s still got a job on % of wins 46.9% 57.4%
Stoke v Fulham ............................................................................................................ what’s right for the team.” Wednesday.”
Sunderland v West Ham ..........................................................................................
Tottenham v Arsenal..................................................................................................
Wolverhampton v Notts County ..........................................................................

Wenger charged and mulling a tinker

npower League One
Dag & Red v Exeter....................................................................................................
Plymouth v Brighton..................................................................................................
Co-operative Insurance Cup Third Round
Brechin v Motherwell................................................................................................
Falkirk v Hearts............................................................................................................
Rangers v Dunfermline..............................................................................................
St Johnstone v Queen of South ............................................................................
Blue Square Bet Premier: Altrincham v Barrow, Cambridge Utd v minute, after the officials had sig- ma comes as he faces another big Jay Emmanuel-Thomas, Henri
▲

Kettering, Darlington v Luton, Fleetwood Tn v Kidderminster, CARLING CUP

Forest Green v Eastbourne Borough, Gateshead v Grimsby, Hayes
& Yeading v Newport County, Mansfield v York, Rushden & BY FRANK DALLERES
D’monds v Histon, Tamworth v Bath City, Wrexham v Southport. ARSENAL manager Arsene Wenger is
SNOOKER facing a touchline ban after being
World Open (Glasgow). charged with improper conduct relat-
TENNIS ing to Saturday’s dramatic 1-1 draw at
ATP BCR Open Romania (Bucharest). Sunderland.
ATP Open de Moselle (Metz, France). Wenger is accused by the Football
WTA Hansol Korea Open (Seoul, Korea).
Association of “using abusive and/or
insulting language and behaviour” to
WTA Tashkent Open (Tashkent, Uzbekistan).
the officials in the wake of Darren
SPORTS EDITOR JON COUCH Bent’s last-gasp equaliser for the Black
email sport@cityam.com Cats.
Bent’s strike came in the 95th
nalled that there would only be four
minutes of stoppage time.
The Gunners boss was visibly
incensed at the goal and appeared to
confront fourth official Martin
Atkinson after the final whistle.
Wenger now has until Thursday to
decide whether to accept the charge
which, under the FA’s new fast-track
procedures, will automatically trigger
a one-match touchline ban and an
£8,000 fine. If he chooses to challenge
the accusation his case will be heard
by a panel. The Frenchman’s dilem-
decision, this time regarding his team
selection for tonight’s Carling Cup
trip to bitter rivals Tottenham.
Wenger has traditionally used
domestic cup competitions to blood
his best youth team players but is
thought to be considering ditching
that policy on a one-off basis.
While he is unlikely to field a full-
strength team, he has fewer back-up
players of the requisite standing to
call upon, having been hit by a glut of
injuries, and is set to promote only
three players from his youth team:
Lansbury and Craig Eastmond.
Wenger will also need no reminding
of the 5-1 thrashing his second string
took at White Hart Lane in the same
competition in 2008, and the subse-
quent dip in the first team’s form.
Captain Cesc Fabregas is among the
injured but revealed yesterday his
hamstring injury is not as bad as first
feared and he expects to recover with-
in two weeks. The Spain midfielder
now faces a race to be fit for the
crunch Premier League trip to
Chelsea on Sunday 3 October.

Hicks’ Liverpool buyout hit by refinancing blow

scramble for another backer before with George Gillett, having reached has proved a deterrent. buying the club in 2007.
▲

PREMIER LEAGUE
BY FRANK DALLERES he has to repay a £237m loan to Royal agreement in principle following The GSO refinancing They have failed to win a
Bank of Scotland next month – or risk talks during recent weeks. would have meant Hicks, trophy and sold midfielder
LIVERPOOL’S future is mired in uncer- the bank seizing the club. The total Hicks is thought to have then right, buying out Gillett Javier Mascherano in the
tainty once again today after co- money now outstanding to RBS is detailed his plans to strike a deal with and suggestions an agree- summer, although they did
owner Tom Hicks’s attempt to thought to be around £280m due to GSO to chairman Martin Broughton ment was imminent pro- hold on to captain Steven
refinance his debt and take full con- penalty fees. and the rest of the Anfield board in a voked several Liverpool Gerrard and striker
trol of the club collapsed. Fans’ groups are planning a sit-in meeting in London last week. supporters’ groups to Fernando Torres.
GSO Capital Partners, the debt protest following Saturday’s visit of Liverpool’s board is said to be voice their opposition British Airways chairman
restructuring arm of private equity Sunderland to show opposition to the opposed to Hicks tightening his grip over the weekend. Broughton was hired earlier
group Blackstone which had dis- owners and demand more trans- on the club and thereby delaying its The Americans are unpop- this year to accelerate a sale
cussed loaning Hicks £280m, is parency in the way the club is run. sale. The Reds have been actively seek- ular figures on Merseyside, but no bid has emerged
thought to have walked away from GSO Capital Partners were said to ing a buyer for months, but the owing to the chaotic and despite interest from Rhone
talks with the American. be on the brink of completing a deal Texan’s desire for a healthy profit on largely disappointing Capital and Chinese busi-
It leaves Hicks facing a desperate with Hicks, who co-owns Liverpool his and Gillett’s initial £218.9m outlay nature of their reign since nessman Kenny Huang.
CITYA.M. 21 SEPTEMBER 2010
Pakistan triumph at Lord’s to set up series decider
▲
4TH ONE-DAY INTERNATIONAL
BY FRANK DALLERES
A HUGELY tainted one-day interna-
tional series will be decided at the
Rose Bowl tomorrow after Pakistan
put off-field rows to one side to draw
level with England.
In a match that was in severe dan-
ger of being called off due to an esca-
lating controversy surrounding
comments made by Pakistan Cricket
Board chairman Ijaz Butt, the tourists
Strauss left
in outrage at
fixing claims
England captain hits back
at Pakistan chief Butt
over Oval accusations
▲
FIXING ROW
BY JON COUCH
ENGLAND captain Andrew Strauss
yesterday lashed out at suggestions
his side deliberately set out to lose
last Friday’s one-dayer with Pakistan.
Pakistan Cricket Board chairman
Ijaz Butt caused fury among the
England dressing room after telling
an Indian TV station he had heard
that some England players had
“taken enormous amounts of money”
to fix the outcome of the match at
The Oval. “We have positive proofs
here before us,” he said.
Butt’s comments led to Strauss
admitting he had mixed feelings
about continuing to play the last two
games of the series – the first of
which they went on to lose last
night – as he issued a robust defence
of his side.
“We refute these allegations and
will explore all legal options open to
It’s time for the younger generation, says Sidebottom
Sidebottom waited six years for a second opportunity with England. Picture: ACTION IMAGES
claimed a deserved 38-run victory at
Lord’s last night.
Abdul Razzaq (44) and Mohammad
Hafeez (64) did the damage with the
bat as Pakistan, having won an all-
important toss, racked up 265-7.
Shoaib Akhtar (3-59) and Umar Gul
(4-32) then terrorised England with
the ball as the hosts were dismissed
with 23 deliveries to spare.
“It was a tough day,” said England
captain Andrew Strauss. “There was a
lot of raw emotion around and it took
us,” Strauss said in a statement
through the England and Wales
Cricket Board.
“We are disappointed that our
integrity has been brought into ques-
tion. Under the circumstances, we
have strong misgivings about contin-
uing to play the last two games of the
current series and urge the Pakistani
team and management to distance
themselves from Mr Butt’s allega-
tions.
“We do, however, recognise our
responsibilities to the game of cricket
– and in particular to the cricket-lov-
ing public in this country – and will
therefore endeavour to fulfil these
fixtures to the best of our ability.”
The International Cricket Council
has vowed to investigate “scoring pat-
terns” – alleged to involve Pakistan,
not England – during Thursday’s one-
dayer, which the tourists won by 23
runs to pull the series back to 2-1.
Butt responded to the ICC’s inter-
vention by claiming there was a “con-
spiracy to defraud Pakistan and
Pakistan cricket”.
Indeed, yesterday, he told India’s
NDTV channel: “There is loud and
clear talk in bookie circles that some
English players were paid enormous
us a while to get into the game. It was
played in a very good spirit and,
regardless of what’s gone on, we want
to win this series and we’ll be fully
motivated to do so.”
The result means the five-match
series stands level at 2-2 and at least
guarantees that the on-field action
retains a touch more significance
while other rows rage on.
Butt’s incendiary comments, and
England’s predictably angry reaction,
aside, there were further fireworks in
amounts of money to lose. No wonder
there was total collapse of the English
side.”
Later, however, he backtracked by
saying he was only reporting what he
▲
ENGLAND
BY JON COUCH
RYAN SIDEBOTTOM delivered a blow
to England selectors yesterday by
announcing his international retire-
ment.
The 32-year-old seam bowler was
England’s most productive bowler in
their World Twenty20 triumph back
in May.
But after losing his place in the 50-
over set-up, the Nottinghamshire
player has decided to call time on his
international career – and hand over
to the next generation.
Yorkshire-born Sidebottom made
his Test debut against Pakistan at
Lord’s in 2001 but had to wait anoth-
er six years to earn a recall.
Since then, however, he has estab-
Sport | Cricket 35
the build-up to yesterday’s contest mate over and then five consecutive
when Jonathan Trott, the fours in the final five balls.
Warwickshire batsman, was involved Strauss started the reply well
in a confrontation in the nets with enough with a resolute 68, but as
Wahab Riaz. night fell, the Pakistani bowlers’ skill
Once the action began, however, at achieving movement told, and the
Pakistan seemed better able to forget hosts fell from 113-0 to 149-4. The last
tensions and cut loose. Hafeez top- five wickets tumbled in six overs to
scored before becoming one of Shoaib and Gul.
Graeme Swann’s four victims, but it Pakistan captain Shahid Afridi said:
was Razzaq who stole the show. In an “England played well at the begin-
explosive 20-ball cameo, he blasted ning, but I knew my spinners were
three fours and a six in the penulti- capable of controlling the situation.”
Pakistan Cricket
Board chairman
Ijaz Butt said that
England players had
“taken an enormous
amount of money”
to throw Friday’s
third one-dayer at
The Oval.
Picture:
ACTION IMAGES
had heard and said he had no proof whatever proof we can provide,” he
that England’s players had thrown said. “The total statement I made [to
the game. “The bookies have been NDTV] categorically explained that
talking about it and we will investi- the bookies are saying this. I am not
gate the matter and come up with saying this.”
lished himself as a regular in all have no doubts that now is the right
forms of the game with his highlight time to announce my retirement.”
coming in 2008 when he took a hat- Sidebottom made his decision after
trick on his way to Test best figures of helping to guide Nottinghamshire to
7-47 against New Zealand in their second County Championship
Hamilton. title in six years last week.
“I have had a truly fantastic period He is, however, looking for a new
of my life with England but now it is county for 2011 after announcing he
time to hand over the ball to those a is to leave Notts after seven seasons.
little younger,” Sidebottom said.
“If I look back on my international SIDEBOTTOM | ENGLAND STATS
career I have achieved more than I
could ever have dreamed. Winning
the Twenty20 World Cup in the West Tests ODIs
Indies, my Test debut at Lord’s, a Test Matches: 22 Matches: 25
hat-trick against New Zealand, plus a Wickets: 79 Wickets: 29
man of the series award, are just a Average: 28.24 Average: 35.82
few of the highlights. 5 wickets: 5 5 wickets: 0
“I have been fortunate enough to
live the dream with England. 10 wickets: 1 10 wickets: n/a
“It has been a fantastic time but I Best: 7-47 Best: 3-19
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