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THE CITY
RBS REVIVAL
SHERLOCK HOLMES STRIPS IS ON TRACK
OFF FOR FRANKENSTEIN BUT FORCED TO
PAY DOUBLE THE
DANNY BOYLE’S HIT SHOW P24 TAX OF RIVALS P4
Issue 1,330 Friday 25 February 2011 www.cityam.com FREE
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WORLD
BY ALISON LOCK
DAVID Cameron and Obama last
WORLD ECONOMY night vowed to finally bring an end to
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2 News CITYA.M. 25 FEBRUARY 2011
Distribution helpline AIG, which was literally minutes ter included a one-time net gain of conducive to investing in the UK,”
If you have any comments about the distribution BY KATIE HOPE
of City A.M. Please ring 0207 015 1230, or email from collapse in the fall of 2008, sur- more than $16bn on asset sales. AIG Davis said in an interview with
distribution@cityam.com vived thanks to a $182bn government had said in November it would record MULBERRY chief executive Godfrey Drapers magazine.
bailout and the divestiture of major a “material gain” on the sale of Alico Davis has blamed the stringent rates of Godrey called on the government to
Editorial Statement international insurance units like to MetLife. tax for his refusal to open a second fac- introduce “NI holidays” for manufac-
This newspaper adheres to the system of Alico and AIA to remain in business. tory in the UK. turers, saying an ongoing tax break
self-regulation overseen by the Press Complaints The company, led by chief execu- AIG boss Bob The leader of the luxury goods would be a greater incentive than tra-
Commission. The PCC takes complaints about the tive Bob Benmosche, is hoping to retailer, famed for its handbags, said ditional golden handshakes used to
editorial content of publications under the Editor’s
begin repaying taxpayer funds with Benmosche said he he had been put off opening a second attract manufacturers from overseas.
Code of Practice, a copy of which can be found at
www.pcc.org.uk the help of an upcoming stock sale does not expect this plant to supplement Mulberry’s Employer NI contributions are set to
Printed by Newsfax International,
worth at least $15bn, following in the set of charges to affect Somerset factory due to the impact of rise to 13.8 per cent from 12.8 per cent
Beam Reach 5 Business Park, footsteps of other bailout recipients his asset sales plans rising national insurance rates. for those earning more than £136 a
Marsh Way, Rainham, Essex, RM13 8RS like Citigroup and General Motors. “Over the past 10 years the political week in April.
Iceland set to
News Corp ASSANGE TO APPEAL EXTRADITION RULING
▲
SUPERMARKET chain Iceland Foods is
to pay an £100m dividend this year to
management and creditors of its for-
mer Icelandic bank owners, for the
first time in three years.
Iceland is expected to report a
▲
MEDIA ing 61 per cent of BSkyB it does not bounceback in revenues and profits
BY ALISON LOCK already own and is prepared to this year as budget-conscious shop-
make concessions to do so. pers turned to its stores and the divi-
RUPERT Murdoch’s News Corp is Culture secretary Jeremy Hunt dend would be paid from cash
closing in on a deal with regulators has said he intends to refer the deal reserves, the Financial Times reported.
over its £7.8bn bid for broadcaster to the Commission, but last month The dividend will be declared for
BSkyB, sources said yesterday. granted News Corp an extension to the year to 31 March, and is the first
The media group is close to agree- address media plurality issues. since 2007 when it paid out £300m
ing a series of undertakings with Analysts have said News Corp would after it was refinanced.
the Office of Fair Trading that be unlikely to offer Sky News as a Iceland should report earnings
would satisfy its concerns that a concession unless necessary. before interest, tax, depreciation and
takeover would unduly concentrate But Murdoch is now thought to amortisation of £190m in the year to
the UK’s media sector. be keen enough to close the deal for March, from £180m the previous year.
The concessions may see News BSkyB, which is currently valued at Management, including its founder
Corp make structural changes such £13.2bn, to agree to it. and chief executive Malcolm Walker,
as separating out or essentially It would almost certainly mean owns about 26 per cent of the firm
surrendering control of its Sky News Corp avoiding a six-month while the rest is held by two Icelandic
News unit rather than just ensuring review by the Competition banks, Landsbanki and Glitnir, which
the two news providers remain dis- Commission. collapsed in the financial crisis.
tinct. The banks, whose creditors should
Sources close to News Corp told FAST FACTS | BSKYB TAKEOVER welcome the payout, took over the
City A.M. last night that there had stake from a third failed investment
been a lot of back and forth with ● News Corp made a 700p per share bid for group, Baugur, which had invested in
the regulators after the company BSkyB’s remaining 61 per cent in June 2010. WIKILEAKS founder Julian Assange should be extradited to Sweden to face sexual offence a number of high street retailers.
submitted its proposals to them. ● The deal values the broadcaster at £13.2bn. allegations, a judge ruled yesterday. The extradition under a European Arrest Warrant The winding up board of
News Corp is keen to avoid a full ● If Jeremy Hunt approves an agreement, the to face one charge of rape and three of sexual assault would not breach Assange’s human Landsbanki is expected to put Iceland
Competition Commission probe deal will go to a 15-day public consultation. rights, the judge said. Assange said the decision was a rubberstamping process but was up for sale soon, though no formal
into its bid to acquire the remain- nonetheless wrong. He will appeal the ruling. Picture: REUTERS move to do so has been made yet.
4 News CITYA.M. 25 FEBRUARY 2011
Ireland exacerbates painfully slow recovery ANALYSIS l Breakdown of RBS tax paid 2010, £bn
THE Qataris might be making posi- which £19bn is in dreaded commer- because the attributable loss of
tive noises about snapping up the cial real estate, it’s clear that the £1.1bn missed expectations of
government’s bank stakes, but it bank will need to take several further around £700,000. But it also reflects 0.6
will be some time before they are large impairments (Evolution reck- the fact that the shares, which were 0.7 Asset protection scheme
ready to buy shares in troubled RBS. ons there is another £3bn to come). trading at 39p at the beginning of the
Yesterday investors got more of the
same from chief executive Stephen
A glance at Ulster Bank’s loan-to-
deposit ratio highlights the problem.
year, have had a good run and these
results failed to live up to the hype.
0.3 Capital gains tax
Hester: steady but painfully slow It stood at 152 per cent in 2010 and, Ian Gordon at BNP Paribas was 0.5 Continental capital
progress. in 2009, it was an eye-watering 177 right when he told investors to “take
It was Ireland, that troubled per cent (proof if it were needed that the money and run” on 18 February, Employee payroll tax
Emerald Isle, which proved the Ireland’s property bubble was espe- and he likely still is. The recovery of
biggest drag on earnings. cially pernicious). To put that in per- RBS is very much a work in progress,
1.5 0.3 UK bonus tax
Impairments at Ulster Bank were a spective, the loan-to-deposit ratio in and an unremittingly sluggish one
hefty £1.2bn in 2010 and manage- UK retail was 110 per cent. at that. Other taxes
ment are expecting them to remain Yesterday, the shares closed down
high in the first half of this year.
With around £53bn of exposure, of
3.21 per cent at 45.6p, down from this
year’s high of 49p. That is partly
BOTTOMLINE
Analysis by David Crow
Tax bill is
RBS revival on double that
track despite of its rivals
Irish turmoil
▲
BANKING
BY JULIET SAMUEL
RBS and its staff paid £3.9bn to the
Treasury in taxes last year, the bank
has revealed.
The amount is almost double the
He emphasised that scaling down UK tax bills paid by other banks like
▲
BANKING
RBS’s unwieldy balance sheet is a top Barclays and Goldman Sachs,
BY JULIET SAMUEL
priority, revising his 2011 target for the because of the bank’s size and its con-
RBS has finally returned to operating size of its non-core assets from £118bn centration in the UK.
profit, generating £2.01bn versus a loss to £96bn. The high costs of its taxes is despite
of £6.23bn last year and meeting or Along these lines, the results showed the fact that RBS did not pay any cor-
overshooting most of chief executive that RBS’s loans-to-deposit ratio has poration tax because it made a loss.
Stephen Hester’s targets for his five- improved, reflecting an effort to lend The bank’s profits were hit by stay-
year recovery plan. from customer deposits, which are cur- ing in the government’s asset protec-
However, the bank is still losing rently considered more stable than tion scheme (APS), an expensive
money overall to the tune of £239m wholesale funding. Fifty-eight per cent insurance scheme for certain assets.
pre-tax and £1.23bn after tax. It has of the bank’s funding is now from RBS must pay £2.5bn to exit the
been hit particularly hard by its expo- deposits, versus 51 per cent a year ago; programme, minus any fees it has
sure to Irish real estate: RBS’s Ulster 33 per cent is from wholesale. already paid, and has therefore opted
Bank lost £761m in operating costs And Hester has set a return on equi- to stay in the APS until the fees it has
and the bank has an undetermined ty target of 15 per cent, which was paid are equal to the exit penalty.
amount of additional exposure in its beaten by the investment banking These fees alone cost the bank £700m
“non-core” assets. division last year. It returned 17 per last year.
Ireland’s turmoil has caused impair- cent and brought in £3.5bn in operat- Chief executive Stephen Hester
ments in commercial real estate to ing profit. echoed calls by others, including
continue their rise, bucking the Barclays chief Bob Diamond, chancel-
improving trend in the UK, so that the ANALYSIS l Royal Bank of Scotland lor George Osborne and JP Morgan
sector lost Ulster Bank £4.31bn last 50
p 45.60 Chase chief executive Jamie Dimon,
year, up 30 per cent on 2009. Its 2010 24 Feb by saying that the time for banker-
returns on equity (RoE) were also bashing is over.
46
worse: its value dropped 21 per cent, “We have to move on from the cri-
nearly double 2009’s 11.7 per cent fall. sis, from what went wrong and the
Ulster’s dismal performance forced 42 recriminations around that,” he said.
Hester to admit that the bank still has “Banks have a huge role as exporters,
a “long road” to travel, saying: “We employers and taxpayers in the UK.”
lent a lot of money against real estate 38 He added that it was time to start see-
in Ireland that we shouldn’t have ing banks “as economic engines”
done.” 29 Nov 17 Dec 11 Jan 31 Jan 18 Feb RBS chief executive Stephen Hester said the bank’s recovery is going according to plan rather than as liabilities.
BANKING
▲
BANKING
BY JULIET SAMUEL City A.M. that the bank’s “regretted £144,000. Bonuses are capped at dend of €0.45 a share, flat year-on-
losses” are on the rise due to the 50p £2,000. FRENCH bank Credit Agricole posted a year after a quarter of “solid business
RBS is losing its best staff due to the tax rate. RBS chairman Philip Hampton said: smaller-than-feared quarterly loss of momentum”.
stringent pay conditions imposed Hester added that morale at RBS has “If we are going to be in [investment €328m (£280.6m) yesterday, having Credit Agricole said it would not
upon it by the government, said chief been battered by banker-bashing: banking], not to pay our people the warned that its stake in Italy’s Intesa need to raise capital to meet incom-
executive Stephen Hester yesterday. “Working at RBS over the last couple market rate is not tenable.” Sanpaolo had suffered a €1.25bn ing Basel III rules, after revealing a 0.6
He told City A.M. that “regretted loss- of years has felt pretty beleaguered,” Hampton also revealed that RBS has writedown. percentage point jump in Tier 1 capi-
es” – losses of the bank’s most valued he said. Yesterday’s results showed seen some of its hedge fund clients Operating profit rose to €687m tal to 10.3 per cent in the fourth quar-
staff despite efforts to keep them – are that RBS’s compensation ratio of rev- move to Switzerland to escape the EU. from €41m a year earlier, helped by ter.
going up. “They’re too high. They need enues to pay for 2010 was 34 per cent, “London is a less attractive place now,” French retail and falling provisions. Its core Tier 1 ratio had risen to 8.8
to come down,” he said. up from 26 per cent on higher head- he told City A.M., adding that business- The bank’s revenues rose 12 per per cent by the end of 2010, thanks in
The disclosure follows a similar rev- count. Pay at the investment bank cost es were concerned about “pay, taxa- cent, though costs also rose seven per part to a new €5.5bn capital guaran-
elation from Barclays chairman £2.9bn versus £2.7bn in 2009, but aver- tion, regulation – everything!” cent on the previous quarter. tee from its parent banks.
CITYA.M. 25 FEBRUARY 2011 News 5
Saudi to plug
oil supply gap
may order the sabotage of the coun-
▲
“Everyone should be preoccupied because our society We fly from London Gatwick, London Stansted and Manchester. Price correct on 14 February for travel between
28 February and 17 April 2011. Variable charges for hold baggage apply and some payment methods attract a
demands rapid access to oil at reasonable prices.” handling fee. See website for details. Photo credit: DenmarkMediaCenter.
The Capitalist
6 CITYA.M. 25 FEBRUARY 2011
EDITED BY
ELIZABETH FOURNIER
GOT A STORY? EMAIL
thecapitalist@cityam.com
Teams from England, Scotland, Argentina and South Africa battled at the O2 last night
jessops.com eight of the world’s current top ten sponsored by Iceland, but all the
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music, food, drink and retail stores AN ANTIQUE MEAL
If you’ve ever worried about dropping
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or smashing your mother’s wedding
FREE £50 china, next month’s Dining off
Antiques dinner might just be your
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PHOTO VOUCHER But for those more steady of hand,
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15 megapixels, Full HD movies Argentina’s Nacho Figueras Picture: REX Le Gavroche chef and his co-host –
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ONLY £479.95 spread throughout the arena. Phillips antiques.
WAS £499 There was even a ‘have-a-go polo’ But while the celebrity names
stand for those inspired by the might be enough to tempt some, at
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help but pity the poor ponies being show will be the crockery.
squired around the pitch by anyone Seated around a Regency Rosewood
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Alison Cooper
Picture: REUTERS
Female FTSE chiefs: Far left Pearson’s Burberry chief executive Angela Ahrendts
Marjorie Scardino and Anglo American’s (near left) and Alliance Trust’s Katherine
Cynthia Carroll Picture: REX Garrett-Cox Picture: PA, REX
Davies issues
warning over THE WORLD’S FIRST DUAL-SCREEN 14” TOUCHBOOK
GOVERNANCE tt'
the far more complex issue of why '6--506$)*/5&3'"$&
6--506$)*/5&3'"$&
BY MARION DAKERS
women are failing to progress within
LORD DAVIES of Abersoch’s report on their organisations in the first place.
getting more women into the board- This is like painting over a damp wall”.
room stopped short of imposing imme- Law firm Eversheds warned the tar-
diate quotas yesterday, but some firms gets, coupled with the threat of quotas
warned that demanding equality from and EU legislation, could push firms
the top will not improve businesses. into hiring women in a way that leaves
Lord Davies’ study, commissioned by them open to sex discrimination cases.
business secretary Vince Cable last The Institute of Directors was also
August, called for FTSE 100 companies sceptical, arguing that targets for
to “challenge themselves” to increase recruitment and trans-
the number of female directors to 25 parency could lead to
per cent by 2015. the best candidates
He said smaller firms in the FTSE missing out on board
350 should set their own targets, but seats. “Improving flexi-
warned that quotas remain an option ble working opportuni-
if the gender balance fails to improve. ties for aspiring
“This is not about aiming for a spe- female execu-
cific figure and is not just about pro- tives will be
moting equal opportunities but it is central, with
about improving business perform- c o mp a n i e s
ance,” said Davies. rather than
The report said headhunters should govern-
shoulder some of the responsibility by ment tak-
drawing up a voluntary code of prac- ing the lead
tice for promoting gender equality in creating
when sourcing boardroom candidates. these oppor-
PwC partner Dawn Nicholson said tunities,” said Mervyn Davies stopped
the targets were “highly aspirational” the business short of imposing quotas
and merely encourage firms to hire in group.
tt(#.&.03:
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Apple also previewed the new ver-
▲
TECHNOLOGY
BY STEVE DINNEEN sion of its operating system, OS X
Lion. This will borrow heavily from
APPLE yesterday announced it will the innovations made for the iPad,
unveil a new range of MacBook Pros including full integration of apps
which the firm says will be twice as across all Apple devices.
powerful as the previous generation.
It packs next generation processors
and graphics and will also feature the
firm’s new Thunderbolt technology, a
port that allows transfer speeds of up 6, 53 & 245
to 10Gbps. TO
TOTTENHAM
TTENHAM COUR
COURTT R
RDD
It has a glass multi-touch trackpad
and built-in HD camera for use with O
ORDER ONLINE:BOWJLBDPN
RDER ONLINE: BOWJLBDPN O RDER BY PHONE:
ORDER
Apple’s FaceTime video calling soft-
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£1,000.
8 News CITYA.M. 25 FEBRUARY 2011
▲
ASSET MANAGEMENT tor of the capital markets
Group finance director Graeme and will deliver an immediate BY RICHARD PARTINGTON department of the
▲
ASSET MANAGEMENT
Dell said the firm had been hit by bounce in earnings. International
BY RICHARD PARTINGTON the weakening pound against the Arlington-based EMM, founded in ANTOINE Van Agtmael F i n a n c e
EMERGING markets fund manager dollar on its foreign exchange 1987, will continue to run its own coined the term “emerging Corporation, the pri-
Ashmore Group has increased its hedges, hitting profits. funds. markets” in the early 1980s vate sector orientat-
assets under management (AUM) by Ashmore’s results came as it Graeme Dell said: “We had a long at a time when placing assets ed affiliate of the
12 per cent to $46.7bn (£28.9bn). announced the purchase of a 63 per stated ambition to grow our equity in the so-called “third world” World Bank.
The firm saw net inflows of $5.2bn cent stake in US-based Emerging investment team so it does exactly was considered an unusual Today, as chairman
in the six months to 31 December Markets Management (EMM). that. and risky business. of Emerging Markets,
Net revenue for the asset manager The firm said it bought the con- He added: “We anticipate it being He founded Emerging he oversees more
jumped 17 per cent to £173.7m, trolling stake to beef up its equities a business where the employee con- Markets Management in 1987 than $10bn
while profits before tax increased 14 expertise. tinues to be incentivised by being to pioneer investment into a (£6.2bn) of
per cent to hit £127.6m. Ashmore said it would pay up to equity shareholders in the venture, broad group of up-and-coming assets under
Analysts had expected the group $246m for the stake in a part-cash, we’re delighted to have been able to nations. management.
to post total revenues of about part-shares deal. have the opportunity at the transac- Before founding the firm,
£183.7m and pre-tax profits of about The acquisition will bring its tion to complete a significant reallo- Vat Agtmael was deputy direc-
£130m. assets under management to $57bn cation of that equity.” ANTOINE VAN AGTMAEL
LSE takes on
NEWS | IN BRIEF
Barratt upbeat on house sales
Housebuilder Barratt Developments said
sales had picked up since the start of the
of a 19.9 per cent stake in the LSE’s Boeing wins $30bn tanker contract
▲
TRADING TECHNOLOGY
existing EDX derivatives platform Boeing yesterday won a contract worth
BY RICHARD PARTINGTON
held by TMX Group, operator of the over $30bn to build new refuelling
THE LONDON Stock Exchange (LSE) is Toronto and Montreal bourses. planes for the US Air Force, beating out
to launch a new pan-European deriva- EDX London already uses TMX’s Europe’s EADS, the Pentagon said yes-
tives trading platform in a bid to Sola trading technology, which will terday. Air Force secretary Michael
crack the dominance of rivals NYSE be used on the platform. Seymour Pierce chairman Keith Harris has deferred his move to Gerova Picture: Jason Alden/City A.M. Donley told reporters the contract was
Euronext and Deutsche Boerse. Europe’s largest clearing house worth over $30bn and Boeing’s shares
The European futures market has LCH.Clearnet will operate as clearer, rose nearly four per cent in after hours
M&A
ness will allow institutional investors Chicago Board Options Exchange It disclosed last week that a manage- Capital. This is despite 2011 being
and hedge funds to trade across (CBOD) became the latest market PROPOSED Seymour Pierce buyer ment overhaul caused the resignation described as many as the year for
Europe. operator to join a global frenzy of Gerova Financial Group has been of its chairman Gary Hirst and four emerging markets to dominate. In the
The platform, developed aside boerse mergers. Chief executive delisted from the New York Stock board members, while new chairman the first two months of 2011, the US has
from the merger deal, will offer the William Brodsky said yesterday Exchange due to concerns over its Dennis Pelino walked away from the had 24 IPOs, representing a rise of 85
trading of futures and options con- CBOD’s focus on equity derivatives financial disclosure. job before starting it. per cent from the year-earlier period’s
tracts on companies. had kept it competitive against larger Bermuda-based Gerova’s shares were Seymour Pierce chairman Keith 13 deals, according to the report. The
Trading of LSE derivatives would rivals, but said remaining a niche suspended by the NYSE on Tuesday Harris has also deferred his move to amount raised is up to $8.1bn from
take place on Turquoise Derivatives, player “may not be the only way that amid allegations it failed to report its Gerova and the merger looks shaky. $1.9bn. The increase comes despite an
formed through the acquisition by we will succeed.” financial dealings accurately to The NYSE also flagged concerns last overall slump in IPO activity. There have
Turquoise – the LSE’s existing pan- His comments leave the door open investors and its shares have been sub- week about “unusual market activity” been only nine IPOs outside the US larg-
European equities trading platform, to joining the consolidation wave that ject to insider trading. in Gerova shares, a sign it believes er than $100m in 2011. Yet in 2010,
operated with 12 shareholder banks – has swept the industry. Its share price was in freefall after a there is insider trading, traders said. there were 19 for the same period.
INSURANCE
▲
INSURANCE
BY ALISON LOCK markets in 2011 and a target to dou- before weather-related losses. German firm.
ble emerging market premiums to ANALYSIS l RSA Insurance INSURANCE giant Allianz posted a “Uncertainty factors will continue
BURST pipes put a dampener on insur- £2.2bn by 2015. 145
p
138.90 22.4 per cent jump in net income for to be significant: volatility in the finan-
er Royal Sun Alliance’s full-year Haste said 2010 was “an extremely 24 Feb the year yesterday, although analysts cial markets, indebtedness of govern-
results yesterday, though profits were tough year for the industry”, with grumbled that the 9.8 per cent divi- ment budgets, concerns about
better than analysts expected. group losses £255m more than nor- 135 dend hike was not enough. inflation,” chief executive Michael
Damage to homes from extreme mal levels and £175m up on 2009. Revenues rose 9.3 per cent to an all- Diekmann said.
winter weather caused RSA’s pre-tax Analysts said RSA was strongly man- time high of €106.5bn (£91.1bn) with The dividend rise to €4.50 was below
profit to fall 14 per cent to £474m, aged and the results were expected 125 strong sales in the UK and South consensus estimates. “I think there
from £554m in 2009, despite raising after a profit warning. “The headline America outweighing a drag from the had been some expectation that if
premium income 11 per cent to figures were fractionally above guid- US, France and Germany. they had a good end to the year maybe
£7.5bn from £6.7bn. ance,” said Panmure Gordon analyst 115 The impact of natural catastrophes they could do a little bit more,” said
Chief executive Andy Haste also Barrie Cornes, adding that return on 29 Nov 17 Dec 11 Jan 31 Jan 18 Feb including storms and earthquakes Collins Stewart analyst Ben Cohen.
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10 News CITYA.M. 25 FEBRUARY 2011
than double
Nat Express
▲
MEDIA
BY STEVE DINNEEN
STV is likely to bid for a licence to
Spain broadcast as part of Culture
Secretary Jeremy Hunt’s radical
TRANSPORT most of its services operate. Operating profit shake-up of local television.
▲
BY MARION DAKERS The firm said the 20 per cent cut to £86.2m STV chief executive Rob
the bus service operators grant 9.7 per cent Woodward said he is “excited” by the
NATIONAL Express showed further announced by the government in plans and told City A.M. he “wouldn’t
signs of rehabilitation yesterday as it October will cost it £4m a year once it be surprised” if a bid was made,
posted a 38 per cent jump in adjusted kicks in during 2012. adding he is in talks with the depart-
annual profits to £160.5m. National Express’s coach division United Kingdom ment of culture, media and sport.
Centre costs
Revenues fell 22 per cent to saw broadly flat revenues of £250.3m Operating profit The channel yesterday announced
£2.13bn, however, after the firm gave as the firm consolidates its longer- £13m it has more than doubled its pre-tax
up its loss-making East Coast rail fran- haul services. 3.9 per cent £94.1m profit from £6m to £13m as the
chise in November 2009. Rail revenues fell 46 per cent to 27.0 per cent advertising market continued to
National Express said it will pay a £637.5m after the government took recover. Operating profit grew 57 per
dividend of six pence per share, the control of its East Coast franchise just cent to £14m.
first payment in two years. over a year ago because the firm Operating profit TV revenues increased 16 per cent
Chief executive Dean Finch, who could not run the line profitably. £28.3m year-on-year and Woodward expects
took the top job last February said: Margins rose by 4.3 percentage points 7.5 per cent advertising to grow a further six per
“This is a renewed company. Our to 5.3 per cent thanks to cost control. cent in the first quarter of 2011.
much improved financial perform- Panmure Gordon said the results Bus The news sent STV shares surging
ance provides a platform to drive fur- were slightly ahead of forecasts, while 15 per cent, with Woodward saying
ther growth, continue targeted analysts at RBS said the firm has he sees no signs of an advertising
investment and restore a dividend. made strong progress. relapse.
With a clear focus on our strategy we Shares in the FTSE 250-listed firm Operating profit He said: “This is a strong set of
are confident in the year ahead.” fell one per cent to 247p yesterday. £32m results. The most positive part is that
The group, which cut net debt by we are now delivering growth across
2.3 per cent
seven per cent to £610.4m, said it was ANALYSIS l National Express all parts of the business.
seeing good margin progression and 265 247.00 Coach “Digital has been especially
p
revenue growth in 2011 so far and 24 Feb encouraging and we have already
was confident on prospects for the 255 beaten the usage metric set for 2012
balance of the year. The firm’s fuel so we are going to upgrade our fore-
use is fully-hedged for 2011 and 75 per 245
Operating profit casts. This confirms the rebound –
cent hedged for 2012. £33.8m the positive momentum is continu-
The number of passengers using 235 21.8 per cent ing and we see no signs of a slow-
National Express’s UK bus services fell down.”
four per cent in 2010, which the firm 225
Train Overall revenue at STV increased
said reflected lower economic activity from £110m to £112m, with debt also
in the Midlands and Dundee, where 29 Nov 17 Dec 11 Jan 31 Jan 18 Feb increasing from £49m to £52m.
BY RICHARD PARTINGTON angry shareholders, who had called Analyst at Arden Partners Geoff
on the board to sell out. Allum said: “Given that the price
SHARES in professional services Major shareholders approached [Costain] offered was a pretty rea-
firm Mouchel leapt yesterday after chairman Bo Lerenius last month sonable one, any such improved
the firm said it was in advanced calling for a sale, after the firm had offer might’ve meant more cash.
takeover talks with an unknown refused to accept repeated offers “It does at least say we’re in the
bidder. from Costain. end game. Shareholders of course
The embattled company had been The engineer said yesterday it had will be pleased.”
the subject of several approaches improved its offer for Mouchel as He added: “It gives some justifica-
from Costain, yet the engineer yes- recently as last week, without tion to management for holding out
terday said it was not a suitor for the revealing the details of the fresh as long as they have. It’ll be good for
firm. approach. them, especially if they can get a
Book now and take advantage of our amazing February, March & April Rivals linked with Mouchel Analysts said the new suitor’s higher price and a better offer than
special offers. include the outsourced service offer would have to beat Costain’s from Contain.”
providers Carillion, Interserve and sweetened 153p per share bid made Mouchel shares closed up 12 per
Apex City of London Hotel From £79* Balfour Beatty. last month in order to meet cent at 152.5p per share, valuing the
One of the top 15 rated hotels out of over 1000 London hotels reviewed on The prospect of an imminent Mouchel’s pledge to maximise firm at £171.4m.
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Toyota to recall another 2.2m vehicles
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nights during February, March & April. Also available between Monday the 18th April
and Sunday 1st May. Not available on 16/04/11. Rates on a room only basis in a
BY HARRY BANKS investigation into the safety crisis “These problems are going to
standard room and inclusive of VAT. This offer cannot be booked in conjunction with
any other offer and is valid for new bookings only. Full payment is required at the that damaged the firm’s once-fault- haunt the company until they get
time of booking and is non-refundable. ** at date of going to press. TOYOTA yesterday said it was recall- less reputation. to the real root of the issue,” said
ing nearly 2.2m vehicles over the Although Washington officials Sean Kane, president of Safety
Book online at risk that the accelerator pedal recently handed the carmaker a Research & Strategies.
apexhotels.co.uk could be trapped by loose or mis- huge victory by finding that its Since Toyota’s recalls of a wide
placed carpet mats on the driver’s electronic throttle systems were range of models, including its top-
or call 0845 365 0000 side. not a factor in the recall saga of selling Camry, the carmaker has
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Toyota’s decision to recall the nearly 8m vehicles in 2009 and lost market share and had to resort
vehicles was part of an agreement 2010, yesterday’s action raises new to discounts to win back American
it made with US regulators, who in questions about mechanical and consumers.
CITYA.M. 25 FEBRUARY 2011 Economics 11
UK ECONOMY
much needed growth for this coun- incentives to motivate companies to
BY JULIAN HARRIS try,” said the BCC’s David Frost. take on young people.
RADICAL reforms must be intro- Youth unemployment, which has Additionally, the BCC wants to see National Statistics (ONS) estimated.
▲
MIGRATION
duced if the private sector is to grow risen sharply due to the recession, the creation of targeted “opportuni- The government is unlikely to
the UK out of recession, the British could be tackled by cutting the ty zones” across the UK, to provide THE Conservatives’ election pledge to meet its target, the Institute for
Chambers of Commerce (BCC) will youth minimum wage, the BCC said. “businesses with tax breaks and the slash net migration from “hundreds Public Policy Research has said. And
say today. “The minimum wage is no use to total relaxation of planning laws.” of thousands to tens of thousands” the proposed cap on migration from
The minimum wage must be you if you’re out of work – like near- On capital allowances, the BCC is faces an uphill battle, after official outside the EU will harm the econo-
reduced for young people, and all ly a million young people,” agreed concerned that smaller firms may figures yesterday showed a 22 per my and education sector, it argued.
new employment regulations Eamonn Butler of the Adam Smith miss out on the government’s reduc- cent rise in the number of people set- Referring to possible restrictions
scrapped, the BCC is expected to Institute, a Westminster think tank. tion in corporation tax. tling in the UK. on student visas, the IPPR said: “Tens
state. “Many employers today, squeezed “Businesses should be able to Meanwhile, the number of people of thousands of genuine internation-
“If the government provides a rad- by high taxes and low demand, sim- carry forward unused relief, thereby emigrating fell in 2010, by 15 per al students could be turned away
ical framework, business will do ply cannot afford to hire young, helping them to make the choice to cent, according to the statistics. from universities and colleges, cost-
what it does best – creating wealth unskilled, inexperienced kids at invest in new plants and grow their Net migration in the year to June ing the UK billions of pounds, in pur-
and jobs, innovating to deliver minimum wage rates,” Butler said. operations,” the BCC said. 2010 reached 226,000, the Office for suit of an artificial target.”
UK ECONOMY
Respondents indicated a small should not worry us as consumer spend-
BY JULIAN HARRIS
improvement in personal finances ing seems to be taking over as the main
BRITAIN’S slump in consumer confi- over the past twelve months, and engine of domestic demand,” said ING’s
dence has continued into February, expected improvements over the Rob Carnell.
according to a survey commissioned coming twelve months.
for the European Union, released Both measures increased by two American jobless claims drop
today. points, with the index scores rising New unemployment benefit claims in
The GfK NOP index rose by one to -16 and -10 respectively. the US dropped to 391,000 in the week
point compared to January yet, at a Questioned on whether the cur- ending 19 February, while continuing
score of -28, remains 14 points below rent time is a good climate to make jobless claims fell below 3.8m. “The con-
where the index stood this time last major purchases, consumers provid- tinued improvement in this week’s
year. ed some hope to the British retail report signals that the weather-related
“Overall confidence remains low sector, delivering a four point uptick spikes in January did not alter the
and, although it has not reached the in the index. downward trend in claims, and we take
depths of two years ago, it is 10 However, the measure of appetite this as evidence that the labour market
points down on six months ago,” for major purchases remains low at recovery has not lost momentum,” said
said Nick Moon of GfK NOP Social -25, which is nine points below its Nicholas Tenev of Barclays Capital.
Research. level in February last year of -16.
The index’s headline figure had Meanwhile, Britons continue to US house price slump continues
floated around the -20 mark for the consider this a bad time to save, with American house prices continued to fal-
second half of 2010, yet plummeted the “savings index” plummeting six ter in December, dropping 0.3 per cent
to -29 in January. points to -11, five points lower than on the previous month, the Federal
Consumers in the UK are being the same time last year. Housing Finance Agency said yesterday.
squeezed by a combination of low Confidence in the economic out- In the final three months of the year,
wage growth and rising inflation. look remains notably weak, with the prices were 0.8 per cent down, com-
Consumer price index inflation survey reporting a further point pared to the three months to
hit four per cent in January -- twice drop in the “general economic situa- September. “Lingering unemployment
the Bank of England’s target rate – tion over the next 12 months.” BANK of England rate setter Andrew Sentance last night said he was pleased to see his and elevated inventories of for-sale
and is tipped to reach five per cent in On this variable the index score endorsement of higher interest rates gaining ground among Bank colleagues. Stressing homes contributed to the ongoing
the early months of this year. fell to -31, considerably below its pos- that inflation has been around three per cent for most of his term on the monetary policy decline of house prices,” said Edward
However, there was a positive itive score of plus four points, record- committee -- and has now hit four per cent -- Sentance dismissed talk of “temporary” DeMarco, acting director of the Federal
move in the survey’s recording of ed in February 2010. effects. “Solid growth is not built on a platform of easy money,” he said. Pic: Micha Theiner Housing Finance Agency.
16
have both dropped since last year
Eurozone mood highest since August
6
2007 as Germany’s recovery continues
Paribas. severe winter conditions.
▲
4
EUROZONE ECONOMY
BY JULIAN HARRIS “The breakdown remains one of “A drop in inventories subtracted
Index score
divergence, however, with exception- 0.4 per cent from quarterly GDP
BUSINESS confidence in the ally strong sentiment levels in the growth and then the weather related
-14
Eurozone sprung back in February, core, particularly in Germany, and plunge in construction activity in
rising above the expectations of econ- weaker, below average levels in the December subtracted another 0.4 per
omists to a 41-month high, official periphery.” cent,” said Howard Archer of IHS
data showed yesterday. The news came after German GDP Global Insight.
-24 The EU’s sentiment index recorded growth for the final three months of “These influences should be
Inclination to Save 107.8, a point up from January’s the year was announced at 0.4 per unwound in early 2011,” he predicted.
Consumer confidence upwardly revised score of 106.8. cent on the previous quarter. And there was more good news for
“Consumers, industry and services The score was generally seen as pos- the German recovery, as Munich-
-34 confidence all contributed to the itive for the Eurozone’s largest econo- based Ifo Institute reported an easing
Mar 10 May 10 Jul 10 Sep 10 Nov 10 Jan 11 rise,” said Eoin O’Callaghan of BNP my, which, like the UK, was hit by of credit constraints in February.
12 Consumer News CITYA.M. 25 FEBRUARY 2011
▲
LEISURE
both operationally and financially... fied natural gas from the world’s
CENTRICA yesterday reported a sharp meeting around 30 per cent of the biggest LNG exporter, Qatar -- a deal ANALYSIS l Centrica ONLINE gaming firm Sportingbet
rise in full-year profit, boosted by country’s total gas demand,” the com- worth about £2bn at current UK mar- 350
333.60 reported an increase in second-quar-
p 24 Feb
higher power demand during the pany said. ket prices. ter earnings yesterday and said
severe winter and as it added more The number of British Gas Adam Forsyth an analyst at Matrix: strong growth in Australia, Turkey
residential customers. accounts increased by 529,000, while said: “With a generally rising whole- and its emerging markets had offset
The energy company, which owns residential energy accounts were up sale price environment in both gas 330 weakness in Europe.
Britain’s biggest household energy by 267,000 as Britain was hit by a and electricity, we think Centrica will The company said EBITDA (earn-
supplier British Gas, reported an severe winter and one of the coldest struggle to retain this level of prof- ings before interest, tax, deprecia-
adjusted operating profit of £2.39bn, Decembers on record. itability in supply in the coming 310 tion and amortisation) rose to
on sales marginally higher at £22.4bn The group also increased its full- years. £14.5m in the three months to the
Analysts expected an operating year dividend by nearly 12 per cent to He added: “The one high point was end of January from £13.6m the year
profit of £2.31bn, on revenue of 14.3p. the dividend.” 29 Nov 17 Dec 11 Jan 31 Jan 18 Feb before.
Britvic hit
BAT triggers by rising
buyback but tide of costs
shares drop CONSUMER
▲
BY HARRY BANKS
SOFT drinks maker Britvic yesterday
forecast higher raw material infla-
tion than it previously expected as
CONSUMER annual revenues rose five per cent to BAT chief executive Paul Adams Picture: REX the cost of products it uses to make
▲
“
Mall cigarettes, fell 1.5 per cent BAT chief executive Paul Adams Shoot, said input-cost inflation for
despite the £750m share buyback said: “Some emerging markets are These results are in line with expectations but it seems that volumes Britain and Ireland would be 9 to 11
plan and BAT saying the worst of the now showing strong economic have disappointed while the economic headwinds which have put pressure on con- per cent, reflecting price increases of
”
recession was behind it. growth and even developed markets sumers have taken their toll. These factors seem to have outweighed the share steel and sugar.
BAT, the world’s second-biggest cig- are returning to growth, yet unem- buyback which the market usually likes. It previously expected inflation to
arette maker and most globally ployment remains stubbornly high in be five to six per cent. Britain’s sec-
spread of the big tobacco groups, said many parts of the world and dispos- ond biggest soft drinks maker behind
it had gained from raising prices, the
purchase of Indonesia’s PT Bentoel
able incomes are still under pres-
sure.” Operating officer Nicandro
KEITH BOWMAN | HARGREAVES LANSDOWN Coca-Cola Enterprises said inflation
would impact both its half-year and
“
and a weak pound as it posted a 15 Durante will succeed Adams, who is full-year results and, warned that it
per cent rise in annual earnings. retiring, as chief next month. Despite broadly progressive figures, the results appear to have remind- does not expect an improvement in
However, underlying cigarette vol- ed investors that even perceived inelastic demand for tobacco can be tested. operating profit margins in 2011.
”
umes are still in decline and likely to ANALYSIS l British American Tobacco “What we had previously guided
Nonetheless, the fall in volumes has been offset by continued group cost cutting,
stay weak in 2011. BAT has suffered as 2,550 p and the reintroduction of the buyback scheme should soothe nerves. was on an operating margin improve-
smokers switch to cheaper – and 2,396.50 ment, but clearly with the impact of
24 Feb
sometimes smuggled – cigarettes as the increased raw materials we do
they have been hit by excise tax rises
and high unemployment levels.
2,450
JULIAN HARDWICK | RBS not believe that operating margin
percentage will move,” Britvic chief
“
BAT has sought to offset this with executive Paul Moody said.
price rises and cost savings. 2,350 Britvic said yesterday that its oper-
The size of the buyback is sensible. The £750m effectively utilised
The group’s global cigarette vol- their cash flow. Anything more than that, it would have been borrowing to ating profit for 2011 should rise
”
umes fell two per cent to 708bn ciga- 2,250 fund its purchases. despite higher inflation because of
rettes in 2010, but after price rises 29 Nov 17 Dec 11 Jan 31 Jan 18 Feb strong performance during the sec-
ond quarter.
CHEMICALS
BASF said yesterday that sales and by analysts, as higher raw materials
BY HARRY BANKS operating earnings in 2011 are set to costs were largely passed on to cus-
GERMANY’S BASF returned to form clearly exceed last year’s levels, and tomers. €7.22bn (£6.2bn), helped by the sale of
▲
OIL
with an improved dividend payout for gains should also continue next year. assets in Brazil, mainly a stake in its
2010, although fourth-quarter earn- The maker of coatings and catalytic ANALYSIS l BASF SE SPANISH oil firm Repsol met analysts upstream operations to China’s
ings at the world’s biggest chemicals converters proposed an annual divi- 62
€ 59.00 estimates yesterday with a doubling of Sinopec in October.
company by sales fell short of fore- dend of €2.20 (£1.19) per share, up 24 Feb adjusted fourth-quarter net profit Repsol’s adjusted earnings before
casts. from €1.70 last year and ahead of an thanks to higher oil prices and refin- interest and taxes increased 41 per
60
BASF cut its 2009 dividend for the average analyst estimate of €2.14. ing margins. cent to €1.06bn. Repsol’s fourth-quar-
first time in 16 years after the global After incurring roughly €1bn in Repsol’s refining margins in its core ter earnings were also driven by capac-
economic crisis forced it to leave many integration costs for Ciba, the plastics 58 Spanish markets rose to $2.9 per barrel ity hikes in liquid natural gas from a
plants idle. and paper chemicals maker it from zero in the fourth quarter of new plant in Peru, together with a
It has since been helped by a buoy- acquired in 2009, BASF is now reaping 2009, while its oil fetched 16 per cent modest recovery in gas prices.
ant auto sector and a fledgling recov- the full benefits from cost cuts that fol- 56 more year-on-year. The company also said yesterday it
ery in demand from builders for its lowed the tie-up. Net debt at the company fell by may delay the exploration of its Libyan
insulation foams, allowing it to pass Fourth-quarter sales came in at 14 Dec 3 Jan 21 Jan 10 Feb over a third in the fourth-quarter to drilling projects.
Porsche hit
Profits return TARGET PROFITS LIFTED BY HOLIDAY SALES
by delays to
to GM as debt VW merger
and costs cut
▲
AUTOMOTIVE
SHARES in Porsche fell 10.7 per cent
yesterday to €55 after the German
car group said its merger with
Volkswagen is likely to be delayed, as
very good result,” he said. German prosecutors continue to
▲
AUTOMOTIVE
Fourth-quarter net income was investigate two of Porsche’s former
BY HARRY BANKS
$510m, or 31 cents per share. Earnings board members.
GENERAL Motors yesterday posted for the first three quarters of 2010 Prosecutors said they had found
fourth-quarter results that topped totalled $4.2bn. evidence of further crimes by former
Wall Street expectations, capping its After adjusting for a one-time Porsche chief executive Wendelin
most profitable year in over a decade charge for buying back preferred Wiedeking and former finance chief
after slashing costs and debt in a land- shares held by the US Treasury, fourth- Holger Haerter, and that the investi-
mark bankruptcy. quarter earnings per share were 52 gation had been extended to suspi-
Profit for all of 2010 was $4.7bn cents, at the high end of Wall Street cion of breach of trust.
(£2.9bn), GM’s first full-year earnings expectations. “There is suspicion that the for-
since 2004 and its largest profit since On an adjusted basis, GM’s earnings mer board members took existential
1999, when it earned $6bn on boom- before interest were slightly below risks for the company by doing share
ing sales of trucks and SUVs. expectations at about $1bn, reflecting price hedging deals in connection
Separately, GM said the audit com- higher costs as the automaker ramped with the attempt to take over
mittee of its board had determined up vehicle development efforts and Volkswagen,” the Stuttgart prosecu-
the company’s financial operations spent more on advertising. tors’ office said in a statement yester-
under finance chief Chris Liddell had Fourth-quarter revenue was $36.9bn, day.
remedied a “material weakness” in up from $32.3bn a year earlier. Volkswagen shares slipped 3.8 per
financial reporting, addressing a lin- GM’s European operations posted a cent on news of the delay.
gering concern for investors. loss of $568m for the fourth-quarter
The automaker said it would pay and a loss of $1.7bn for the year. The ANALYSIS l Porsche
more than $200m in bonuses to automaker has said it hopes the unit – 80
€ 55.00
hourly workers, including payouts of known for its Opel brand – will break 24 Feb
about $4,300 for each of its roughly even this year.
45,000 US factory workers represented 70
by the United Auto Workers union. General Motors chief
Liddell said he expected the current
quarter would represent a “strong executive Dan Akerson US RETAILER Target has posted a 10.5 per cent increase in quarterly profit, helped by 60
start” to 2011 and said the fourth-quar- said he was pleased the strong sales early in the holiday season and fewer write-offs of bad credit card debt. Sales
ter had been slightly ahead of the company was achieving rose 2.8 per cent to $20.28bn (£12.6bn), while sales at its established stores rose 2.4 per
automaker’s internal projections. sustainable profitability cent, outperforming its larger rival Wal-Mart Stores. The US discount chain earned net 50
“From our point of view it was a income of $1.04bn, or $1.45 per share, in the fourth-quarter ended 30 January. 29 Nov 17 Dec 10 Jan 28 Jan 17 Feb
INSURANCE
▲
UTILITIES
BY HARRY BANKS the crisis behind us”. 2008. yesterday. “We are rolling up our
The removal of state shackles will The company said its share issue of GERMANY’S RWE, Europe’s fifth- sleeves.”
DUTCH life insurer Aegon is to raise allow Aegon and other Dutch finan- 173.6m shares – about 10 per cent of largest utility, said it will cut invest- The largest emitter of carbon diox-
about €1bn (£850m) from a share cial services groups to go on the its common share capital – would ments and sell assets to counter a ide in Europe predicted its operating
issue to help repay €2.25bn of state prowl once again for acquisitions begin yesterday via an accelerated worsening outlook for profits in the profit would be at €5bn in 2013, when
aid by the middle of the year. and give them more room to com- book build. coming year after the 2010 result beat it will have to fully pay for emission
The repayment would free Aegon pete. Aegon, also one of the top 10 life expectations. certificates.
from EC restrictions imposed on The Dutch government paid nearly insurers in the US, where it owns The power provider is now forecast- That is almost 30 per cent less than
companies that received government €40bn to rescue the domestic finan- Transamerica, said in a statement it ing operating profit will drop 20 per it previously predicted and 20 per cent
cash during the credit crisis. cial sector in 2008 when it provided was in talks with one party to sell the cent this year to €6.16bn (£5.24bn), less than what analysts expect.
“After repayment the limitations capital injections for Aegon, ING, and reinsurance unit of Transamerica, a more than the 16 per cent decline pre- RWE said operating earnings in
that were imposed on us will disap- SNS Reaal and was forced to nation- plan which it had announced last dicted by an analyst poll. 2010 had risen eight per cent to €7.7bn,
pear,” Aegon’s chief executive, Alex alise ABN AMRO. year. “The company is preparing for a dif- more than the €7.5bn expected.
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CITY MOVES | WHO’S SWITCHING JOBS Edited by Maria Tadeo in association with
SRL Global in Jefferies' London offices, he will focus partner with Deloitte where he was arbitrations and High Court disputes.
The technology investment platform has made primarily on the company’s European responsible for a number of the firm’s
a new appointment by hiring Robin Ellison as a REGAL franchise as well as its major multinational audit clients. Oasis
new member of its executive advisory board. American counterpart US REGAL. Doyle Aurora Fashions, the group that owns
In this role, he will primarily focus on strength- previously served as head of European Mazars numerous high street clothing brands
ening SRL Global’s position in the pension fund lodging and gaming investment banking The international accountancy firm has such as Coast, Karen Millen, Oasis and
market. Ellison previously served as chairman at Bank of America/Merrill Lynch. appointed James Gilbey as its new Warehouse, has announced the appoint-
of The National Association of Pensions Funds director. He will focus on strengthening ment of Barbara Horspool as design
(NAPF). In his work at SRL, he will be spread- TUI Travel the litigation support and expert wit- director at Oasis. She comes to the firm
ing use of the firm’s investment aggregation The leisure travel group has announced ness practice within Mazars’ forensic with extensive fashion experience and
platform, Nexus Enterprise Solution, which the appointment of Minnow Powell as and investigation service team. Gilbey previously served as head of design for
enhances the efficiency of asset management. non-executive director of the board and brings experience in dealing with an Womenswear at M&S.
chairman of the audit committee. With extensive portfolio on fraud and regula- Aurora has also named Andy Griffiths
appointed Steffen Doyle as managing more than 34 years of experience in tory investigations on behalf of the as brand communication director for its
Jefferies director and European head of lodging international accounting and consulting, Financial Services Authority. He has also Oasis stores. He previously led Diesel’s
The investment banking group has and gaming investment banking. Based Powell recently served as senior audit given evidence in both international divisional communication.
BEST OF THE BROKERS To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Henderson Group 156.50 ANALYSIS l Travis Perkins ANALYSIS l Informa 419.10
170
p
24 Feb 1,150
p
984.00 470 24 Feb
24 Feb p
1,050 450
150
430
950
130 410
850
390
110 750
29 Nov 17 Dec 11 Jan 31 Jan 18 Feb 29 Nov 17 Dec 11 Jan 31 Jan 18 Feb 29 Nov 17 Dec 11 Jan 31 Jan 18 Feb
REPORT REPORT
price of oil has hit multi-year highs, “We sense a pause in the pace of support, suggesting a bigger market
threatening to derail the global eco- its recent rapid profit rise,” pullback may not be in store yet.
nomic recovery. Citigroup says in a note. The week’s declines have driven
“Oil is the lubricant of economic Capita was the star FTSE 100 per- calls that a correction is near. The S&P
U
NREST in the Middle East and expansion, and its rising price acts former, up 7.2 per cent, as the out-
U
S stocks fell for a third day yes- 500 is up about 24 per cent since the
North Africa hit Britain’s top as a tax on global growth, which is sourcing group's full-year results and terday as US crude oil prices start of September, roughly when the
shares again yesterday, though making investors risk averse and strong bid pipeline pleased the mar- hovered near $100 (£61.73) a bar- recent rally began.
rising crude prices and upbeat encouraging them to book profits,” ket. rel on violence in Libya. The CBOE Volatility Index, Wall
comment from oil major BP on its said Henk Potts, strategist at Barclays Miner Antofagasta continued its Oil’s sharp rise this week has Street’s fear gauge, was down 0.5 per
Indian activities lifted energy stocks. Wealth. winning streak, up 2.7 per cent yes- fuelled worries about the effect of cent at 22.02, reversing course for the
The FTSE 100 closed down 3.55 The FTSE volatility index, which terday, while outsourcing group energy costs on consumers and busi- first time in two days. The index has
points, or 0.1 per cent, at 5,919.98, measures investor appetite for risk, Serco rose 2.6 per cent. ness. US crude oil futures were at an inverse correlation to the S&P 500,
pinned just below a seven-month is up 35 per cent this week. Outside the top flight, Mouchel their highest since late August 2008, indicating stocks could rise.
technical support level of 5,920. Banks were the most significant rose 12 per cent after it revealed as the escalating problems in Libya Helping to limit the Nasdaq’s loss
US crude oil futures rallied for a drag on the index, as investors advanced talks with a potential sparked supply worries. Brent crude was Priceline.com, which jumped 7.2
third session yesterday as prices looked uneasily at the unrest in the takeover bidder. futures hit an intraday high at per cent to $456.55 after a number of
soared to their highest since late Middle East and North Africa. Sports retailer JJB tanked 23.9 per $119.79 and then pulled back to brokerages raised their price targets
August 2008 as escalating violence RBS came off worst, down 3.6 per cent in reaction to the news that one $114.45 at midday. on the stock. The online travel agency
in Libya sparked supply worries. cent, as its results met with disap- of its landlords planned to reject its But while the Dow and S&P 500 reported a larger-than-expected profit
Tullow Oil added three per cent. pointment. last-ditch rent agreement. closed down, they finished well off late on Wednesday.
BP’s Indian head, Sashi Bad debts from Ireland, an unin- Soft drinks group Britvic fell 11.7 the day’s lows, suggesting investors General Motors’ earnings topped
Mukundan, estimated there were 15 spiring investment banking per- per cent after it said rising commod- weren’t ready to give up on the rally. estimates, but the stock slid 4.1 per
trillion cubic feet of gas resources in formance and lack of dividend put ity costs would cause it to miss profit Oil does have “an economic slow- cent to $33.16.
the 23 blocks it has bought into in its pressure on the shares, traders said. forecasts. ing impact as the price goes, and so The S&P 500 was trading just above
$7.2bn deal with Reliance Industries, British American Tobacco fell 0.7 the question is, ‘How long will this support at 1,296, the index’s January
and there could be more. per cent, after the maker of Kent, ANALYSIS l FTSE 5919.98 last?’ and ‘How significant will it be?’ highs, while analysts were also eyeing
BP gained 0.9 per cent on the Dunhill, Lucky Strike and Pall Mall 6100 24 Feb ... It’s hard to decide at the moment,” the S&P 500’s 50-day moving average
news, which also helped spark a 2.4 cigarettes reported full-year results. said Stephen Lieber, chief investment – now at 1,287 as further support. A
per cent rally in oil explorer Cairn “[The numbers] all looked in line, officer of the Purchase, New York- break below those levels could indi-
Energy. the dividend was slightly better than 5900 based Alpine Mutual Funds. cate further weakness lies ahead.
Cairn Energy, which has blocks in expected, and [it announced] a Investors may need to take a “wait- The Dow Jones industrial average
India, is currently trying to sell a £750m buyback, but the market 5700
and-see” attitude until there's a clear- was down down 37.28 points, or 0.31
majority stake in its Indian arm expected £1bn, so that was a little er idea of how events in Libya and per cent, to end at 12,068.50. The S&P
Cairn India to Vedanta Resources. disappointing,” said Alwyn Phillips, elsewhere will turn out, he said. 500 Index was down 1.3 points, or 0.1
However, weakness from risk-sen- a trader at IG Index. 5500 “My bias is that we are still likely to per cent, to finish at 1,306.10. The
sitive banks helped keep the index in GKN shed 2.3 per cent after be in a recovering economy, and if Nasdaq Composite Index was up 14.91
the red for a fifth session. Citigroup cut its rating for the auto- 29 Nov 17 Dec 11 Jan 31 Jan 18 Feb this creates dumping of securities points, or 0.55 per cent, at 2,737.90.
Wealth Management
16 CITYA.M. 25 FEBRUARY 2011
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Business Features | Entrepreneurs
17
UK GRADS ARE
NOT MOTIVATED The entrepreneur who
FOR REAL WORK
JOHN STRAW
FOUNDER AND CEO OF LINKDEX
has found just the ticket
Donata Huggins meets
I
the way we have, in the last 12 years, man- AM worried about the Olympics.” Joe
aged to reduce the assault rifle-like compet- Cohen, the founder and CEO of
itive edge in our graduates to the Seatwave, leans forward to explain.
effectiveness of a flintlock muzzle loader. “They are capping the cost of all the tick-
We know how it’s happened but it’s not ets at face value, which is a stupid idea. It’s
even in public debate and, unless we get the simple economics that whenever you have a
edge back, our long term economic outlook situation where demand exceeds supply and
will surely suffer. Where are the competitive you have a price cap, a black market is creat-
business people of the next 20 years? ed,” he sighs. “It is just going to open millions
The rot set in a dozen years ago when we of people up to being ripped off.”
started to see the win/lose concept disap- “I’ve tried campaigning against it, I’ve even
pear from our state schools. No one won made suggestions on how to prevent it. But
but, more to the point, no one loses either; there’s no political will to push for a safe,
regardless of whether you are more inclined transparent, floating price exchange. It’s like
towards sports or academia. The very basis live entertainment is the last industry where
of competition was nobbled. Within five it is wrong to make money from solutions.”
years, the rot had set in and kids were enter- Cohen’s business, Seatwave, could offer
ing university thinking that competition was the Olympic solution. The company is an
something that didn’t exist in their Facebook online secondary ticket exchange that pro-
world. vides a safe and transparent way for people
Here’s an interesting fact, though. to buy and sell tickets to major events. It dis-
Britain’s medal trawl that year was the best plays all the different tickets on sale in com-
of any Olympics we have competed in. parison to one another next to a map of the
Nearly 50 per cent of the medals we won venue. “I’m trying to create competition
came from competitors who had received between sellers and allow users to develop a
their education from private schools, which price mechanism.” Seatwave tries to reassure
represents only 5 per cent of the education its customers by making those selling tickets
system. Goldman Sachs will have hired all of provide their card details and sign a pledge
those before I get a look in. saying that they own legitimate tickets and
My startup has been looking for grads to will deliver them to the buyer on time. If not, The man who is shaking up the live entertainment industry Picture: Micha Theiner/City AM
take on in sales and public relations roles. then they are liable for the cost Seatwave
We’ve been stunned by what appears to be pays to obtain the buyer a ticket. get it out of my head.” notion that if there’s any money to be
a universal indifference to ambition or drive. With a handshake agreement for fund- made above the face value ticket price then
Sales and profit are dirty words. Being in a A DREADFUL EXPERIENCE ing from a venture capitalist, Cohen quit it should be made by those inside the
career with your mates seems to be the Cohen explains that he started up the site his job and started Seatwave. venue or show. Anyone else and then
highest level of ambition. because he had a dreadful experience in “I don’t want to make what I do sound there’s an ‘ethical issue’.”
Actually, there is a solution. Want to hire 2005: “I wanted to go to this big American easy, it’s not. It’s really hard, but I don’t Cohen said the exchange is already
ambitious young people who want to learn football game with my Dad and two friends. I have to convince people to want to go see improving the market. Over the last three
and want to get their hands dirty? was living in the UK, so I thought if I was Justin Bieber. They want to do that already. years the average price of a ticket on the
Hire Aussies and Kiwis. We’ve going to go all the way to the States, I wanted That’s why it’s a great business model, but exchange has dropped to only twice the
got a collection in the office (and a good seat.” But the only way he could get it got a really violent reaction from promot- original face value of the ticket. “The viscer-
some Canadians thrown in for good hold of these tickets was to bid on eBay. He ers and venues, and ticket managers.” al reaction I’ve got from those in the indus-
measure) and they get the whole ambi- tracked down four tickets next to each other, Cohen says. try made me realise that I’m on to
tion and work ethic thing brilliantly. All but they were being sold in two blocks of two “Within the industry there is still this something.”
they seem to want in return is a fair by the same seller. “We really needed them
salary package but also the real ability to be all together,” Cohen explains. So he and CV | JOE COHEN
to learn and gain experi- all his friends were determined to win and
ence. For me as an employ- all bid for them. His friends won, paying
er it’s a great package. $1,100 for each ticket. “It was a dreadful con- Job title: Founder and CEO Idol: Jeff Bezos
The only downside is sumer experience, made so much worse by Age: 43 Talents: “I make a mean grilled cheese sand-
that they gain huge the fact the next day I got nine emails from Born: Cleveland, Ohio, USA wich.”
experience and eventu- people claiming to be the winning bidder, Studied: “I flunked out of four universities Favourite business book: Leadership Secrets
ally take it back home offering to sell their tickets to me. It was and never finished.” of Attila the Hun by Wess Roberts
to benefit their local absolute fraud.” Motto: “It's not the size of the dog in the First ambition: Documentary maker
economies in long Cohen had been working for the UK divi- fight, it's the size of the fight in the dog." Awards: GP Bullhound Media Momentum
term. sion of Match.com at the time. His wife had
I’m still worried. just had their third child and they had Drinking: Patron Silver tequila Awards, 2009; Fast Growth Business Awards,
recently bought their first home. “I sat on the Reading: "Wikileaks" by Luke Harding 2009; Tech Media Invest Awards
idea for Seatwave for a while, but I couldn’t
John Straw is a seri-
al entrepreneur. His
current venture is ENTREPRENEURS NEWS | IN BRIEF
Linkdex, a company
that organises
Google search opti- A Dragon in Romania New crowdsourcing site launched Review of Small Business Act
misation campaigns The founding Dragons’ Den panellist Doug A new crowd-funding website called The European Commission this week published a
for clients. Richard has been drafted in by Romania’s Crowdcube has been launched that makes it review of the Small Business Act, implemented
Post-Privatisation Foundation (PPF) to deliver possible for the general public to buy shares between 2008 and 2010 with the aim of alleviat-
an intensive training course which aims to in start-ups and growing businesses. ing administrative burden, facilitating SMEs’
Agree with John Straw? help Romanian entrepreneurs turn their ideas Entrepreneurs can showcase their business access to finance and supporting their access to
We welcome debate. Do into fast-growth successful businesses. The and investment potential to thousands of new markets. Business and Enterprise Minister
you have a strong view on program will train 250 Romanian entrepre- micro-investors by uploading a “Dragons’ Mark Prisk said: “I fully endorse the idea of an EU
small business and entre- neurs and thanks to the PPF, the School for Den” style video pitch, images and supporting forum for small business ministers and I look for-
preneurship in the UK? Start-ups will be able to offer scholarships to documents. People can support an idea, per- ward to meeting European business ministers to
Email: donata.huggins cover 80 per cent of costs. Richard says: son or business by investing small amounts of learn from one another's experiences and examine
@cityam.com “Entrepreneurship is a skill that can be taught money, starting at £10, in exchange for how we can work together to unleash entrepre-
and must be learned.” shares in the business. neurial talent and small business growth.
Living
18 CITYA.M. 24 FEBRUARY 2011
| Design
more fashionable
Donata Huggins finds what its like to live in a
home styled by designer label Felder Felder
B
LACK leather rock and roll was cer- They have brought the individuality of
tainly a feature of this year’s their clothes to interior design. And this
London Fashion Week. Kate Moss looks set to become the latest craze. With
was slapped across yesterday’s Jade Jagger styling the Baglioni hotel in
papers for finishing the week in a floor Marrakech and Jean Paul Gaultier
length leather dress. But she wasn’t the launching a distinctively stripy home-
only one to be upping the ante and ware collection, there seems to be greater
embracing cow skin. The German twins, appetite for creating homes with more
Daniela and Annette Felder, behind the character.
Felder Felder fashion label, grabbed some So forget Magnolia walls and stick on
lime light too, trotting out their latest your artist’s beret. Now is the time to
gothic-themed collection. step-up your creative credentials.
The blonde pair (pictured right), how- Annette Felder explains: “We wanted
ever, are not just jumping on the grungy to bring the outside in, make the flat
bandwagon. They are punk rock through reflect the Felder girl we design clothes
and through. How do I know? Because I for and her surroundings.” This is no sim-
spent a night inside a flat they designed ple task considering that the flat sits This designer flat is
before Christmas. between the excitement of Camden Town located in the
The result certainly has impact. The and the gentler world of Primrose Hill. Henson building,
walls screamed with personality. Not dif- “The Felder girl,” Annette says, “is like us: developed by
ficult when they were decorated with fun-loving, but also likes luxury. She Londonewcastle.
leather-studs, blood red paint, and col- loves music, has a creative job and likes
laged like a ransom note. to have a good time.”
The one-bed apartment once housed But does one go about creating interi-
Jim Henson’s muppets. The fact it was a ors like that? Annette explains: “We tried
factory allows for enormous windows to create moods in the different rooms by
across its studio kitchen-dining-living working with signature pieces from flea
area. The room’s raw brick and stone- markets. The couch, for example, we
effect walls provide the necessary level of found in Paris and then got it re-uphol-
sophistication you required to balance stered with the fire print tye-dye print we
out the designers’ quirkier features. The used in our last collection.”
corrugated iron breakfast table, for I really recommend thinking outside
instance, needs to be bathed in natural the box. Don’t be shy about giving rooms
light to be appreciated. your own touch.”
London Bridge
Bermondsey
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20 Living | London Property CITYA.M. 25 FEBRUARY 2011
London’s hidden
property gems
Traditionally non-glamorous areas can
have pockets of real value, says Amy Higgins
ROTHERHITHE, SE16
The renaissance of this former dock has
gone largely unnoticed, and house prices
are generally cheaper than surrounding
areas. Carl Davenport, of estate agents
Chesterton Humberts, says Rotherhithe is
the “overlooked neighbour” of Tower
Bridge. “Prices are in many cases cheaper by
up to 20 per cent on a like to like basis,” he
says. “Though once thought of as a bit of a
no-man’s-land connecting Tower Bridge
and Canary Wharf, the area is currently
undergoing a massive makeover which will
serve to neaten up the passageway”.
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STRATFORD RENTING
BY AMY HIGGINS
DOWNSELL ROAD
LETT ROAD
Price: £795,000
Fancy having a front
row seat for the 2012
Q&A
Price: £239,995
Olympics in your living
This two bedroom Victorian
room? A brand-new Tim Hassell
cottage would make an DIRECTOR OF CENTRAL LON-
appealing starter property energy-efficient devel-
opment at the heart of DON LETTINGS FIRM,
for young professionals. It DRAKER LETTINGS
has been recently redeco- Stratford is able to
promise just that. This WWW.DRAKER.CO.UK
rated in soft neutral colours
and boasts a compact but plush three-bedroom
Q.
I have a rental property that
pretty garden. Ideally locat- apartment is packed has been on the market for
ed for commuters on the with top-of-the-range some time now. I have also not
Stratford/Leyton border, fittings and eco-friend- heard from my agent for a while. Is
with no less than five rail or ly touches (each flat there anything I can do to speed
tube stations under a mile has a dedicated cycle things up?
away. Contact: Jason rack). Contact: Currell
New Homes on 020
A.
Joseph at Keatons on 020 There are four things you can do
8534 7788 or go to 7226 6611 or go to when a property is not letting as
www.keatons.com. www.currell.com. quickly as desired. Firstly, you can
fire your agent; but beware – if they have
viewed the property regularly, this may not
be the problem. Secondly, you can improve or
PORTWAY NEED TO KNOW | AREA INSIGHT redecorate the property. Look carefully at the
cleanliness and condition of each room with a
Price: £475,000 critical eye – this is what your tenants will
A commanding family Commuting: First-rate connectivity. comprehensives. If you’re opting to go
do. You may just need to give the property a
home with five bedrooms Liverpool Street is just five minutes private, expect to travel further afield. little TLC with regard to presentation.
and many period features away on the central line, while the Thirdly, you can drop the price. This is often
including sash windows, jubilee line can transport you to Canary Restaurants and bars: Hidden the last thing a landlord wants to do, but can
high ceilings and original Wharf in a quarter of an hour. amongst the fast-food outlets is Circus often be the most logical choice. If you have
fireplaces. Rooms are Eats – a budget eatery that fuses a property that looks great and is being regu-
exceptionally spacious, and Crime: Crime rates are higher than Caribbean and East End cuisine. larly viewed without success, the price is nor-
many boast views of near- national averages, but regeneration Particularly novel are their “school din- mally the only variable left to change. Finally
by West Ham Park. Kids in you can wait a bit longer, an option I would
particular will relish the projects (most notably – the Olympics) ners”: meat and two veg followed by a
avoid – especially if you have been waiting
proximity to the park, should encourage these to fall. sponge and custard for a snip at £4.50. for a while.
which has tennis courts, a
Education: Stratford might not boast Leisure: The biggest urban mall in
Q.
cricket square and several I have just moved in with my
football pitches. Contact: the most rarefied selection of schools, Europe – Westfield Stratford City– will partner and want to let my flat
Jason Joseph at Keatons but St. Angela’s (for girls) and St. open in 2011. Cultural stimulation can out. There are so many agents to
on 020 8534 7788 or go to Bonaventure’s (for boys) are decent be found at The Theatre Royal. choose from and they all seem to
www.keatons.com. charge different prices. Can you give
me any advice on how to choose and
whether I should have more than one?
CURRENT MORTGAGE DEALS BY AMY HIGGINS Source: MoneySupermarket.com
A.
Lettings is generally a multi-agency
business. Most landlords instruct
two or three agents and the first
Lender Fixed/Flexible Rate Until Standard Rate APR Maximum Loan past the post wins and gets paid (no AV sys-
(per cent) (per cent) (per cent) to Value (per cent) tem here!) When deciding who to choose, I
would take into account the agencies person-
Santander Flexible 2.65 April 2013 4.24 4.2 60 alities and approach to the market. You have
larger companies who can be very good at
HSBC Flexible 2.99 April 2013 3.94 4 70 generating mass viewings, but may leave you
stone cold with their level of service offered.
Loughborough BS Flexible 3.55 2 years 4.99 5 80 This is fine as long as you have a little experi-
ence, and do not expect much more than a
Leek United BS Flexible 3.75 March 2014 5.19 5.1 75 tenant thrown through your door and a large
fee taken. Next you have the more reliable
Skipton BS Flexible 3.78 April 2014 4.95 4.9 60 brands that are generally very good and tend
to reflect market trends: for example, if it is
First Direct Fixed 1.99 2 years 3.69 3.5 65 busy they will get the job done; if the market
Santander Fixed 2.19 2 years 4.24 4 60 is quieter, they may struggle. Finally you have
the more local, boutique agencies that can
HSBC Fixed 2.29 Term 3.94 2.3 60 give a more personal level of service and tend
to be more personality driven. My advice
Yorkshire BS Fixed 2.29 April 2013 4.99 4.6 60 would be to choose one of each and see
which one comes out on top.
NatWest Fixed 2.39 April 2013 4 3.9 60
PROPERTY NEWS
BY AMY HIGGINS
HOMEBUYERS GAIN INVESTOR POWERS GAZUMPING HIGH IN PRIME LONDON MARKET CASA FORMA REVEALS NEW LUXURY FLAT DEMAND FOR RENTED HOMES HITS RECORD HIGH
A new service which will enable homebuyers to enjoy Gazumping has made a dramatic return to the capital’s Architectural and interior design firm Casa Forma has Demand for rented homes hit a two-year high during
many of the same perks as property investors has been prime property market, according to research by estate unveiled a new bespoke property, adding to its collection the final quarter of 2010, says buy-to-let lender
launched this week by property company Assetz. agency Marsh & Parsons. Agents have reported an of aspirational high-end London residences. The four bed- Paragon Group. The percentage of landlords reporting
“Assetz Homes” will help buyers to secure the best increase in cases of gazumping – where a vendor rejects room flat is housed in a Georgian building with a prime increased tenant demand rose from 36 per cent to 40
properties at the most competitive prices by negotiating an accepted offer in favour of a higher price – as location on Davies Street between Grosvenor Square and per cent in the last three months of 2010. Just 4 per
discounts on their behalf – a significant advantage in demand for properties hit record highs, averaging at Bond Street. The finest natural materials have been used cent of landlords said that they had seen a decrease in
what are challenging market conditions for buyers. For 14.3 applicants per property. A speedy exchange of con- to give the apartment a sense of understated luxury. For demand. The high comes as more and more people are
further information go to www.homes.assetz.co.uk. tracts is recommended to avoid being caught out. further information go to www.casaforma.co.uk. unable to secure mortgages and are forced to rent.
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LET
us deal with it
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24 CITYA.M. 25 FEBRUARY 2011
| Reviews
ANIMAL KINGDOM Highly-acclaimed, award-win- BURKE & HARE Simon Pegg and Andy Serkis are THE SECRET SISTERS Country music the way it BULLETSTORM (PS3, X360, PC) Interplanetary
ning Australian crime drama. the famous Edinburgh grave robbers. should be played. first-person shoot-em-up yada yada yada...
THE RITE Antony Hopkins stars in this not-very- CYRUS Very strange comedy with Jonah Hill, John THE LOW ANTHEM Folky follow-up to last year’s TWO WORLDS II (PS3, X360 PC, MAC OS,
scary excorcism thriller. C Reilly and Marisa Tomei. debut, titled Smart Flesh. ONLIVE) Swords ‘n’ sorcery role player.
Lifestyle SPA HEAVEN IN 25
MARRAKESH
| Fashion SEE MONDAY’S
TRAVEL SECTION
2
4 1
HOW TO GET
DRESSED: OSCAR
Q&A
SPECIAL
Clare Rous & Kara Iland
FOUNDERS OF ROUS ILAND MEMBERS’ BOUTIQUE, WWW.ROUSILAND.COM
Q.
With the Oscars on Sunday, I
fancy going all-out with a big,
glamorous dress soon. Any tips
on how I can look like a star?
A.
Looking like a star is all about radi-
ating confidence and inner poise –
see Sandra Bullock, last year’s Best
Actress winner, pictured right.
Most of us don’t have the chance to
wear Oscar-worthy gowns much. The clas-
sic trap is to fall in love with a dress as an
object or “work of art” rather than your-
self in the outfit. If you aren't careful you
can end up feeling exposed and gawky
gaucheness is never glamorous.
The key is to focus on a style that best
fits your body in a fabric and cut you feel
comfortable in. Don’t shy away from mak-
ing adjustments to your dress to ensure it
looks like it was coutured for you. If dress-
es just aren't flattering then try exquisite
separates for effortless elegance. A long
sequined skirt and simple top or silk
trouser suit in a beautiful colour can be
more head turning than the fussiest gown. styles or separates, choose one larger
Find one part of your body you are most statement cuff, earrings or necklace
happy to flaunt as a focal point. Avoid rather than dated sets of little pearls or
looking tacky by showing too much flesh. sparkles.
A thigh length split, low back or plunging There are plenty of independent design-
neckline can be individually elegant but ers who cut amazing gowns if you would
not when combined together. The new rather not bankrupt yourself on couture.
mood is to cover up so don’t shy away Favourites include Rachel Gilbert,
from sheer or fitted arms when going full Leifsdottr, Ginger & Smart and Lisa Ho to
length. name just a few. Under-exposed creations
Don't hide behind accessories. If your from these up and coming talents will help
dress is very bright, lacey or glittery then you avoid the embarrassment of bumping
you won't need anything else. For plainer into anyone else with the same outfit.
26 Lifestyle | TV& Games CITYA.M. 25 FEBRUARY 2011
SKY SPORTS 1 5am Premier League Preview Minds 12am CSI: Crime Scene 1.10am Gok’s Clothes Roadshow DISCOVERY HOME &
SATELLITE & CABLE
5.30am-6am Kings of the Snow Investigation 2.40am Charmed 2.05am Wife Swap 3am
7pm Sky Sports News at Seven
4.20am Four Weddings US Samantha Who? 3.40am Young, HEALTH
7.30pm Live Super League BRITISH EUROSPORT 7pm A Baby Story 8pm How
10pm Take It Like a Fan 5.10am-6am Maury Sexy and Royal 4.25am Running
6.40pm Alpine Skiing 7.45pm in Heels 4.45am-6am Switched Clean Is Your House? 9pm Born
10.30pm Premier League Live Boxing 10pm Strongest BBC THREE on a Bad Day 10pm Raising 10
Preview 11pm Football League
Weekend 12am ICC Cricket
Man 11pm World Superbikes 7pm Almost Famous IV 7.05pm HISTORY Kids: The Hayes Way 11pm BENIDORM
12am-12.30am Video Gaming Doctor Who 8pm The Real 7pm Heir Hunters 8pm Swamp Emergency: Life in the ER 12am ITV1, 9PM
World Cup 2am Take It Like a Hustle on Holiday 8.30pm The People 9pm IRT Deadliest Born on a Bad Day 1am Raising
Fan 2.30am Premier League ESPN Lock Up 9pm Little Britain Roads 11pm Swamp People 10 Kids: The Hayes Way 2am The Garveys arrive at Madge’s villa,
only to discover she has sold it to a TV
Preview 3am Football League 7pm Goal! 7.30pm Live 9.30pm Lunch Monkeys 10pm 12am IRT Deadliest Roads 2am Emergency: Life in the ER 3am
Weekend 4am Super League Bundesliga 9.30pm Premier EastEnders 10.30pm Junior Disappearing Britain 3am How Clean Is Your House? 4am personality, and Gavin turns up at
5.30am-6am Take It Like a Fan League Preview 10pm ESPN Doctors: Your Life in Their Hands Machu Picchu: City in the Clouds Bringing Home Baby 5am-6am Solana with a new companion.
MMA Live 10.45pm ESPN 11.25pm Two Pints of Lager and 4am Decoding the Past 5am- A Baby Story
SKY SPORTS 2 Kicks: Extra 11pm Freestyle a Packet of Crisps 12.25am 6am Ancient Discoveries
7pm Road to London 7.30pm World Cup Magazine 11.30pm Family Guy 1.10am The Lock Up SKY1
Live Football League 10pm Poker 12.30am NBA 1.40am Coming of Age 2.10am DISCOVERY 7.30pm The Middle 8pm The
Tennis 12am NFL: Total Access Countdown 1am Live NBA Lunch Monkeys 2.40am Junior 8pm How Do They Do It? Simpsons 8.30pm Modern
1am Super League 2.30am Basketball 3.30am UFC Doctors: Your Life in Their Hands 8.30pm How It’s Made 9pm Family 9pm Raising Hope
Tennis 4.30am NFL: Total Access Unleashed 4.30am ESPN MMA 3.35am The Real Hustle on Aircrash Confidential: The chaos 9.30pm The Simpsons 10pm
5.30am-6am Football’s Greatest Live 5.15am ESPN Kicks: Extra Holiday 4.05am Snog, Marry, caused by fires on aircraft. 10pm Louie Spence’s Showbusiness
5.30am-6am Total Italian Avoid? 4.35am-5.05am Hotter Weird or What? 11pm Monsters 11pm Got to Dance 12.30am
SKY SPORTS 3 Football Than My Daughter Inside Me 12am Bear Grylls: Road Wars 1am Body Language
7pm Live World Golf Born Survivor 1am Deadliest Secrets 1.50am Inside: FRIDAY NIGHT DINNER
Championship 11pm Tight Lines SKY LIVING E4 Catch 2am Future Weapons 3am Surviving Prison 2.40am Glenn CHANNEL 4, 10PM
12am British Rally 7pm Ghost Whisperer 8pm 7pm Hollyoaks 7.30pm Friends Greatest Tank Battles 3.50am Martin, DDS 3.30am Threshold New series. Comedy following two
Championship 12.30am World Bones 9pm Criminal Minds 9pm Gok’s Clothes Roadshow The First World War 4.40am 4.20am Don’t Forget the Lyrics brothers who visit their parents’ house
Golf Championship 4.30am 10pm CSI: Crime Scene 10pm Wife Swap 11.05pm Tool Treasure Quest 5.30am-6am 5.10am-6am Sell Me the once a week for dinner. Comedy,
British Rally Championship Investigation 11pm Criminal Academy 12.10am Scrubs How Does That Work? Answer starring Simon Bird and Paul Ritter.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
QUICK CROSSWORD
SUDOKU KAKURO
34 6 14 20 17 18
22 19
10 12 30
45
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 13 16
11
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 10 4 16
above or to the left of it. 13 23
You can only use the digits 1-9 21 8
and you must not use the
8
10 9
same digit twice in a block. 26 15 16 17 28
The same digit may occur 4 39
ACROSS DOWN
1 French brandy (6) 1 Diced (5)
WORDWHEEL A L
6 Fill with optimism (6)
7 Harsh or corrosive
2 Country (6)
3 Inhibit (4)
Using only the letters in the Wordwheel, you have in tone (6)
ten minutes to find as many words as possible,
I E 4 Sorcerers (7)
8 Indistinct or hazy
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters L in outline (6) 5 Remains in place (5)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
S E 10 Lure (5) 9 Large luxurious
car (abbr) (4)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
T T
13 Without weapons (7)
11 Barrier to vision (7)
16 Attack (5)
QUICK CROSSWORD 9 7 4 8 5 8
12 US university (4)
B A T H E R B E T A
7 6 1 4 5 3 2 SUDOKU
18 Song of devotion
or loyalty (6) 14 Ceasing (6)
4 2 5 3 1 9 2
L A A O S
I P A R A L Y S I S
2 9 3 4 2 7 3 1
20 Frozen spike (6) 15 Perhaps (5)
N E W C G 4 8 2 1 9 8 6
G U S T A V O G L E 1 4 7 3 8
21 Short underpants (6) 17 River which flows
D E X I
O D I N A
S T
U T
O
H O R
1 4 2
6 8 3
6 1
7 9
9 8
2 7 1
WORDWHEEL 22 Small stamp or
through Nottingham (5)
E U T O O
3 9 3 2 4 1 6 19 Fail to hit (4)
P R E O C C U P Y U The nine-letter word was seal on a ring (6)
A U R L N 6 4 8 2 3 5 1
W I G S D E F E N D 5 9 9 6 8 7
SHORTCAKE
Punter
27
| Racing
RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THE BEST BETS OVER THE WEEKEND
McCoy to land
another Racing
Post Chase with
Fistral Beach
T
HE first three horses to immediately who had a wind operation over the sum-
catch my eye in tomorrow’s Racing mer and won nicely over a shorter trip at
Post Chase were Nacarat, Tatenen Wincanton on his seasonal reappearance.
and FISTRAL BEACH. At around 11/2 he is a rock-solid each-way
The first named of the trio finished sec- proposition and has AP McCoy in the sad-
ond in this race 12 months ago, having dle looking for his third win in this race in
won it back in 2009, while Tatenen is six seasons.
showing signs of a return to the form that This race tends to go to one of those
saw him sent off favourite for the Arkle towards the head of the market, but I
Chase a few seasons ago. wouldn’t rule out Howard Johnson’s DOOR
Yet, the combination of trip, ground BOY each-way at a massive 25/1. He had
and weight means that I’m prepared to some decent form over hurdles and he
swerve those two in favour of Fistral could have a chance of sneaking into a
Beach, although the trends suggest place off his feather weight.
that shouldering a burden should be no The totesport.com Eider Chase is always
problem. one of the most difficult handicaps of the
According to www.racingtrendsre- season and the 12-year-old Comply Or Die
vealed.co.uk, 10 of the last 13 winners of will be attempting to win the race for a
the race have remarkably carried 10st 13lb second time. He was successful in 2008
or more. before going on to win the Grand
However, Nacarat is set to lug 11st 12lb National, but he’s an old boy now and may
tomorrow and he would have been beaten be susceptible to one of the younger
further by Razor Royale last year if Nigel improvers.
Twiston-Davies’ runner hadn’t ploughed Charlie Longsdon has his string in fine
through the last. I’m also slightly con- fettle and this has been the target for
cerned about the form of his trainer who MINELLA BOYS since his brave second to
has had a few horses disappoint in recent West End Rocker at Warwick last month.
weeks. He was staying on at the death that day
As for Tatenen, who looked back to his which indicates that he will relish this
best at Ascot last time, he is a really inter- marathon slog.
esting each-way proposition at around He should be a good each-way price and
14/1 with Victor Chandler and would be the danger could be the Victor Dartnall-
half his current price if still in the hands trained Giles Cross who ran a stormer to
of Paul Nicholls. finish second to Synchronised in the
The worry with him is that I’m not real- Welsh National.
ly sure he’s ideally suited to three miles
and his legs may turn to jelly late on.
Fistral Beach will be bidding to make
POINTERS...
amends for 12 months ago when he was FISTRAL BEACH e/w 3.00pm Kempton (tomorrow)
sent off favourite for this race and unseat-
ed early on.
DOOR BOY e/w 3.00pm Kempton (tomorrow)
He looks a progressive eight-year-old MINELLA BOYS e/w 3.15pm Newcastle (tomorrow)
COUNTDOWN TO CHELTENHAM
With just 17 days to go until the able on Betdaq for this year’s ing hope in the race and will
start of the best four days racing Cheltenham Gold Cup. His win almost certainly be ridden by AP
in the calendar, the majority of at Leopardstown earlier in the McCoy.
the ante-post markets on the month was his second Grade 1 Sticking with Willie Mullins
non-handicaps are pretty settled. chase success over trips of three and the masterful Irish trainer
Finding horses that will start miles or more in his four latest indicated this week that his
considerably shorter on the day starts – not many others in the promising hurdler RAPTOR will
is no easy task, but there are a race can boast similar levels of most likely be aimed at the
few that catch the eye. form. Albert Bartlett Hurdle. He is cur-
Firstly, there is no way that However, the two main rea- rently trading at 34.0 for that
Willie Mullins’ Irish Hennessy sons to believe that Kempes’ race and I’d be amazed if he isn’t
winner KEMPES will trade big- price will collapse are that he at least half those odds on the
ger than the 17.0 currently avail- will probably be Ireland’s lead- day.
Join now for a risk free £20 bet and 2.5% in association with:
commission until March 31st (Betdaq T&Cs
Apply, see site for details.) www.betdaq.com
0870 178 1221
28 Punter | Sport CITYA.M. 25 FEBRUARY 2011
SPORT TRADER DAVID WILD AND OLLIE DREW BRING YOU THE BEST RUGBY
AND CRICKET BETS AHEAD OF A TOUGH WEEKEND FOR ENGLAND
FRANCE
M
ARC LIÈVREMONT does not like
the English. The French coach
admitted so this week, initiating
the mind games ahead of ‘Le
Crunch’ tomorrow.
The fact is hardly surprising, given that
it is the English that stand in the way of a
Grand Slam for Les Bleus, while England
themselves also have one eye on their first
lossless Championship since 2003.
Lièvremont’s admission might also have
been expected given his frustrations at his ably since then, so while we should not the downside, they also shipped three
nation’s recent record at Twickenham, expect such a pronounced win again, I am tries. To put that in context, the Scots
the venue for tomorrow’s showdown. Two confident enough to predict England will failed to score a single touchdown at
wins from five matches at HQ for the overcome their five point handicap. Get home against an average Wales side a fort-
French flatters to deceive - look a little on with Victor Chandler who are offering night ago and managed only three during
closer and there is plenty to favour the evens on all Six Nations handicap bets this the whole of the 2010 Championship.
hosts. weekend. There will be chances for the home side,
The Red Rose won by a margin of 24 Similarly to their record in southwest which will please Chris Ashton in particu-
points on the last meeting on English soil, London, France’s opening two results in lar, while the nature of England’s new
two years ago, and secured a 26-18 victory this Championship perhaps paint a rosier breed of rugby will likely present open-
in the 2007 tournament. France narrowly picture than is deserved. A two-point victo- ings too. We made a packet buying
won a World Cup warm-up in August 2007 ry at Lansdowne Road had more to do Ashton’s try minutes a fortnight ago
against a largely experimental England with Ireland’s lack of discipline and fail- (bought at 47, makeup 158), but I think
side - only James Haskell and Andrew ure to take advantage of their chances the French backs will pay extra attention
Sheridan from that starting XV will start than any exceptional rugby by their oppo- to him tomorrow - they’d be daft not too.
tomorrow - while the French win in 2005 nents. France took a while to get going in Gaps may appear elsewhere, though, and
was by a solitary point. Without getting that match and when faced with a bar- it is still worth buying total match tries at
carried away, against Italy England at rage of sound from a fired-up 3.9 with Sporting Index.
times showed form of the like that we Twickenham perhaps the same should be
haven’t seen in any England team since
the Grand Slam-winning side eight years
expected of them this weekend. England
to lead at both half-time and full-time
POINTERS...
ago. Then, with Martin Johnson as cap- looks good at evens, also with Victor England to win with 5pt handicap at evens with Victor
tain, the Red Rose lauded over their Gallic Chandler. Chandler
opponents with a 31-point victory. In a gem of match against Scotland, England to lead HT/FT at EVS with Victor Chandler
Rugby Union has moved on consider- France showed moments of genius but, on Buy total match tries at 3.9 with Sporting Index
shocker and will wince if he ever looks at to win this one and 4/9 on Betdaq is a fair
the scorecard again having conceded 72 price for them to accomplish that. Those
ENGLAND runs without a breakthrough. Anderson is wanting to have a punt on England are
almost certain to keep his place, but the advised to back Graeme Swann to be top
selectors will need to decide whether to English bowler.
INDIA draft in an additional specialist spinner, Swann was one of the few to emerge
in the shape of Michael Yardy, to support with any credit from Nagpur where he
SUNDAY – 9.00AM SKY SPORTS 2 the bowling attack at Bangalore on a track took two wickets and would have had
expected to offer little for pacemen. another but for a horrendous mix-up
ENGLAND’S victory against Netherlands Something certainly needs to change if between Kevin Pietersen and Anderson in
in their first World Cup outing did little to England are to avoid embarrassment the field. He should find the conditions to
dispel fears about their tournament against India. Our pre-tournament selec- his liking here and at 11/4 with Victor
hopes. The plucky Dutch, powered by a tion justified their favouritism in the out- Chandler is the standout choice in the
sublime innings from Ryan ten right market with a commanding 87-run market.
Doeschate, forced the Three Lions into the win over Bangladesh. India blasted their
third-highest successful run-chase in com-
petition history and can be disappointed
way to 370/4 from their allotted overs and,
having seen England bleed 292 runs
POINTERS...
not to have defended their total having against the Associate side, spread bettors India to win at 4/9 on Betdaq
seen the way Andrew Strauss’ men played. might like to consider buying India’s runs Buy India runs at around 290 with Sporting Index if
Uncharacteristically feeble in the field, at around 290 with Sporting Index should batting first
England were let down by bad bowling they bat first. Graeme Swann to be top English Bowler at 11/4 with
too. James Anderson, in particular, had a It is hard to see the host nation failing Victor Chandler
F
RANCE boss Marc Lievremont this month. France, however, pose a alleged incident in a nightclub. “We are
has aimed a few shots across the much bigger test. Les Bleus know looking into it and will speak to Danny
bows by accusing the English of about winning, are Grand Slam cham- today but we won’t be making any
arrogance ahead of tomorrow pions and have a really big pack who statement about it before the game
RBS 6 Nations match, but the players
know that’s all just hype. They’re also
will take England on.
For a change England have the bet- VERDICT [against ACT Brumbies today]," said a
Rebels spokesman.
accustomed to it; whenever they pull ter back line, but a major question
on the shirt and no matter who mark lingers over the long-term England will win. If they score early South Africa on the march
they’re playing the opposition want to prospects of Hape-Tindall centre pair- it’ll be by 15 points, if not they’ll edge CRICKET: South Africa got their World
ENGLAND V FRANCE: KEY CLASHES rip their heads off. ing. Martin Johnson’s men are at it right at the end. In any case it defi- Cup campaign off to a winning start
KYRAN BRACKEN England proved they can handle
hostility by winning in Wales earlier
home and will be favourites, but it is
sure to be an incredible battle.
nitely won’t seal the title; Ireland may
yet prove tougher opponents.
with a crushing seven-wicket win over
West Indies in Delhi. Leg-spinner Imran
Tahir took 4-41 on debut, while AB de
Villiers scored an unbeaten century as
the Proteas reached their victory target
I’ve always been a big fan of Yachvili. He has an incredible of 223 with over seven overs to spare.
record against England, so much so that he is something of a
nemesis. He is not as quick as he used to be but his kicking to Westwood and McIlroy are out
corners and at goal is very good indeed, so England can’t give GOLF: World No1 Lee Westwood and
VS
English. But tomorrow he comes up one of the best No8s in ;peXdfB`\m%%%%%%%%%%( + 9\j`bkXj%%%%%%%%%%%%%%%%%%%%%' '
the world at the moment. Easter is so strong, gets forward and 8^^1/$(%
=:Kn\ek\%%%%%%%%%%%%%%( ) IlY`eBXqXe%%%%%%%%%%%%%% ) )
understands the way this England team plays. He may not get 8^^1+$)%
the headlines of Youngs and Ashton, but he is the unsung hero C`m\igffc%%%%%%%%%%%%%%%' ( JgXikXGiX^l\%%%%%%%%%%' '
of Johnson’s current crop. He is from the old school and excels Blpk/- 8kk1+)#0+0
in the tight just like his old boss at Harlequins, Dean Richards, 8^^1($'%
once did, taking balls off people at will, holding it and moving DXe:`kp%%%%%%%%%%%%%%%% ) * 8i`jJXcfe`bX%%%%%%%%%%%%' '
l NICK EASTER l SEBASTIEN CHABAL forward without going to ground early. Without realising it, ;q\bf.#()
Kfli\PXpX., 8kk1*-#.+/
England desperately need Easter to have a good game. 8^^1*$'%
GJ>%%%%%%%%%%%%%%%%%%%%%%%%' ' 98K<%%%%%%%%%%%%%%%%%%%%%%%%%%%' '
8^^1)$)2GJ>n`efeXnXp^fXcjilc\%
I’m not sure the French realise just how good Yannick Jauzion GJM%%%%%%%%%%%%%%%%%%%%%%%%' * C`cc\%%%%%%%%%%%%%%%%%%%%%%%%%%%%%( (
is. He is so strong, has plenty of pace and on his day is very 8^^1,$*%
JgXikXbDfjZfn%%' ( 9Xjc\%%%%%%%%%%%%%%%%%%%%%%%%%%%( (
tough to stop. Shontayne Hape, meanwhile, has a lot still to 8^^1+$*%
prove. He is riding the wave of success that England’s backs Jgfik`e^%%%%%%%%%%%%%%%%%( ) IXe^\ij%%%%%%%%%%%%%%%%%%%%%%( )
VS
have generated over the last 12 months but is yet to really D\e[\j+) ;`fl])'
come out of his shell in the way, say, Toby Flood has during this ;aXcf/* <[l0'
RBS 6 Nations. He can show and go, tackle and get around 8kk1(,#*.,
8^^1*$*%IXe^\ijn`efeXnXp^fXcjilc\%
well, but this is a huge test for him. From the changes they M]9Jklkk^Xik%%%%%%%' ' 9\e]`ZX%%%%%%%%%%%%%%%%%%%%%%%( )
have made it looks like France will target England’s centre pair- 8^^1($+%
ing; the question is whether Hape and Mike Tindall have the M`ccXii\Xc%%%%%%%%%%%%%%% ) ) EXgfc`%%%%%%%%%%%%%%%%%%%%%%%%%%( (
capability at the highest level. Tomorrow at Twickenham they 8^^1)$(%
l SHONTAYNE HAPE l YANNICK JAUZION have the chance to show they do. Q\e`kJkG\k\ijYli^( * Pfle^9fpj%%%%%%%%%%%%%%%%%( (
8^^1+$*%
l Kyran Bracken was speaking courtesy of GamePlan Solutions: Managing high profile and popular sport stars; Speakers, Leaders, Motivators, Ambassadors email sport@cityam.com
www.gameplansolutions.co.uk
30 Sport CITYA.M. 25 FEBRUARY 2011
CRICKET
BY JAMES GOLDMAN
FOOTBALL
BY FRANK DALLERES But the Spain midfielder was to protect their first-leg advantage in TOTTENHAM winger Gareth Bale
Paris 2007: Four years after they failed to offered hope that he could recover for his native Catalonia, Wenger added: could make his comeback against AC
turn up in Sydney, France had their shot at ARSENAL captain Cesc Fabregas faces the return leg of the last-16 tie with “It is very difficult to give a deadline. Milan in the Champions League,
revenge on home soil. England hit the a race to be fit for next month’s emo- his former club Barca at Camp Nou It is impossible.” according to his manager Harry
ground running after a moment of hesitation tional homecoming Champions on Tuesday 8 March by manager Winger Theo Walcott looks likely Redknapp.
from Damien Traille allowed Josh Lewsey to League clash at Barcelona after Arsene Wenger’s assessment. to miss the Barcelona trip after Bale has missed the last month
nip in for a second minute try, the boot of admitting defeat in his quest to play “It is a very small injury but cer- Wenger admitted his ankle sprain, with a back injury but could have
Lionel Beauxis looked like it had put the in Sunday’s Carling Cup final. tainly Cesc will be out for Sunday. For also sustained against Stoke, would recovered by the time the Serie A
hosts into the final. But a Wilkinson penalty Fabregas was last night ruled out of how long I don’t know but definitely need another “one or two weeks” to leaders come to town on 9 March.
in the 75th minute and a trademark drop leading the Gunners at Wembley as for Sunday,” said Wenger. “He is disap- heal. Those two aside, Wenger has an Redknapp said: “He’s back in train-
goal three minutes later time crushed French they go in search of a first trophy for pointed. We all feel sorry and sad for almost full squad to choose from ing today so we’ll look at him tomor-
dreams. six years owing to the hamstring him. The only way we help him now against Birmingham after Robin van row. He’s started to run, which is
injury he sustained early in is to win the Carling Cup as he con- Persie, Laurent Koscielny and Abou good, so he could be available. He’s an
Wednesday’s Premier League victory tributed a lot in this competition.” Diaby were all passed fit. important player for us.”