To nominate or enter today

call 020 7234 8755 or visit

nationalbusinessawards.co.uk

BUSINESS WITH PERSONALITY

CHELSEA’S EURO HOPES RAB PAYS

OUT $400M
ROCKED BY ROONEY THREE YEARS ON
INVESTORS TO GET
UNITED IN POLE POSITION P30 THEIR CASH P4
Issue 1,359 Thursday 7 April 2011 www.cityam.com FREE

PORTUGAL IS THIRD
EU DOMINO TO FALL
EUROZONE CRISIS
€70bn approached but was ready to help.
▲

BY JULIET SAMUEL However, Socrates is only inter-

to €90bn
im Prime Minister since his resig-
PORTUGAL caved in to the unbearable
strain on its finances last night as
finance minister Fernando Teixeira €85bn Estimated Portuguese
nation after failing to get an
austerity budget through parlia-
ment last month, and lacks the
dos Santos (pictured) admitted that
it has asked the EU for a rescue.
Irish bailout cost legal power to negotiate a bailout.
“The EU has seen what hap-
With the government €10bn bailout cost pened in Ireland with the popular
(£8.8bn) short of the cash needed legitimacy of the package when
to see it through to the end of the government that negotiated
elections in June, interim Prime it didn’t implement it,” says
Minister Jose Socrates said that Kevin Dunning of the
he had bowed to the Economist Intelligence Unit.
“inevitable” in seeking a Instead, Lisbon could ask for
bailout. “I tried everything, but a bridge loan of €10-€15bn, leav-
in conscience we have reached a ing a new government to nego-
moment when not taking this tiate a formal rescue in June.
decision would imply risks that Such a move will prove
the country should not take,” he extremely unpopular in
told the nation. Germany, the Eurozone’s pay-
A sale of €1bn (£878m) of master, where it would be seen
Lisbon’s debt yesterday morning as an unconditional gift rather
saw yields reach an eye-watering than a bailout with strict terms.
5.1 per cent for six-month bonds, a Eyes will now turn to Spain,
price that Portugal’s government which has so far managed to
admitted was unsustainable.
The rescue is likely to cost between
€70bn and €90bn – similar to Ireland’s
€85bn bailout – with the UK liable for
€110bn “decouple” from other
peripheral euro states. But
many are sceptical.
Newedge’s Bill Blain said:
13 per cent of the costs. Greek bailout cost “I just can’t accept Spain
The European Commission con- is not a problem waiting
firmed that it had been approached by to happen. Banks and
Portugal “to ask for the activation of property, banks and
the financial support mechanisms”. property just won’t stop
The IMF said it had not yet been ringing in my ears.”

FTSE 100 ▲6,041.13 +34.07 DOW ▲12,426.75 +32.85 NASDAQ ▲ 2,799.82 +8.63 £/$ 1.63 unc £/¤ 1.14 ▼-0.01 ¤/$ ▲ 1.43 +0.01 Certified Distribution
31/01/11 - 27/02/11 is 107,265

=ZVYa^cZEVgicZg
=ZVYa^cZEVgicZg 8
8]Vg^inEVgicZg
]Vg^inEVgicZg Dg\Vc^hZYWn
Dg\Vc^hZYWn
THE HUNT IS ON...

BZY^VEVgicZg
BZY^VEVgicZg

CdlZciZg^c\^ihiZci]nZVg!i]ZCVi^dcVa7jh^cZhh6lVgYh^ceVgicZgh]^el^i]DgVc\Z!
            
8ViZ\dgnHedchdgh
8ViZ\dgnHedchdgh ^hXVaa^c\[dg7g^iV^cÉhejWa^XVcYeg^kViZhZXidgWjh^cZhhZhidZciZgi]Z'%&&6lVgYh#
            

Jedec_dWj[eh[dj[hjeZWo
   
XVaa&(&-()*.-++dgk^h^i
    
mmm$dWj_edWbXki_d[iiWmWhZi$Ye$ka
Celebrating
7JH>C:HH:M8:AA:C8:!>CCDK6I>DC6C9:I=>8H
   
 2 News
Nick Clegg has got it wrong yet again
EDITOR’S LETTER
ALLISTER HEATH
IT seems that Nick Clegg specialises in
making unsubstantiated statements.
He said yesterday that “who you know
is increasingly becoming more impor-
tant that what you know” when it
comes to securing a job in the City as
well as in politics, the media and
other professions. The key phrase here
is “becoming increasingly important.”
We all know that it helps to know
people to get a job. Clegg may be right
that politics has become even less
meritocratic; the coalition, for
instance, is now dominated by a tiny
elite from similar backgrounds.
7th Floor, Centurion House,
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Alice Hepple
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
WHAT THE OTHER PAPERS SAY THIS MORNING
PARTIES FAIL TO BREAK US BUDGET
DEADLOCK
The US began preparations to stand
down nearly 1m workers and suspend
services ranging from processing tax
returns to national parks as a govern-
ment shutdown loomed over stalled
budget talks. Republicans and
Democrats in Congress remained
deadlocked over a budget agreement
for the final six months of the current
fiscal year, ahead of a deadline on
Friday when funding for the govern-
ment runs out.
CITI INDONESIA ARM HIT BY THEFT
ALLEGATION
Citigroup has been barred from sell-
ing wealth management services to
new clients in Indonesia after allega-
tions that a long-time employee stole
millions of dollars from customers of
its premium retail bank. The ban was
revealed on Wednesday by Darmin
Chunks of the media are no better.
But the deputy prime minister isn’t
right that this is getting worse in the
City and in business: while recruit-
ment practices still leave much to be
desired in some respects, they are get-
ting more meritocratic, not less.
Headhunters are frequently used.
Big firms have professionalised their
graduate recruitment. Crucially, grad-
uates as well as executives are now
recruited from all over the world. The
talent pool has gone global. This has
all but eradicated the grip of the
British middle class, especially in
finance. US law firms are only interest-
ed in results, as are the multinationals
that dominate the economy. Old British
school ties mean nothing to them.
A few dinosaur firms remain,
where family or friendships are the
main way in, including some property
firms, traditional law firms, a few
minor PR agencies and the like. But
for most companies, especially suc-
cessful ones, the old days when the
sons of partners were automatically
US lawyer hit
by $32m case
REGULATION
▲
BY HARRY BANKS
A LAWYER and a trader were accused
by federal prosecutors of running a
17-year conspiracy to trade on corpo-
rate merger secrets stolen from three
of the nation’s most powerful law
firms, in one of the largest US insider
trading cases on record.
Prosecutors accused Matthew H.
Kluger and Garrett D. Bauer of reap-
ing more than $32.2m (£19.6m) from
trades on tips about upcoming merg-
ers and acquisitions that Kluger
learned as a lawyer at Wilson Sonsini
Goodrich & Rosati, the pre-eminent
firm representing Silicon Valley tech-
nology companies.
The complaint details a conspiracy
that had its origins in Atlantic City,
New Jersey, and ended with attempts
by the defendants to cover their
Nasution, Indonesia’s central bank
governor, who told legislators Citi had
been instructed to “temporarily sus-
pend” recruitment of new clients to
Citigold, the US bank’s flagship serv-
ice for wealthy customers.
GBAGBO REJECTS ALL TALK OF
SURRENDER
Laurent Gbagbo, Ivory Coast’s
besieged president, clung to the ves-
tiges of power on Wednesday as rival
forces tired to prise him from his pres-
idential palace in the leafy Abidjan
suburb of Cocody.
CAMERON HINTS AT HOSPITAL ROLE IN
ORDERING HEALTHCARE
Strong hints that hospital doctors and
nurses, rather than simply GPs, will be
involved in the commissioning of
NHS care emerged from the first of a
series of “listening exercises”, as David
Cameron rode to the rescue of reform
plans. Nick Clegg, his deputy, conced-
ed that ministers had not got “every
detail right.
hired after university – and in turn
became partners – are long since over.
Of course, there is still plenty of nepo-
tism, as there has always been. Clegg
could justifiably have said that there
are still too many second rate people
in positions of power – or that there is
too much cronyism at non-exec direc-
tor level – or even that the relation-
ship between fund managers and top
execs is too cosy. But his failure to
understand the modern, globalised
City destroys his argument.
Take Barclays Capital, the UK’s
biggest investment bank. Its executive
committee counts 11 people – just two
are British. The CEOs of the Prudential
and the London Stock Exchange, once
bastions of the old ruling class, are
French. Among top women, the trend
is even more pronounced. Of the five
female FTSE 100 CEOs in 2011, just two
are British and three American (and if
Santander UK floats, the sixth would
be Spanish). Of the 23 women appoint-
ed to directorships of FTSE 100 firms
in 2009, 14 had not previously held
tracks, including a discussion about
cleaning money in a washing
machine to rid it of fingerprints.
Kluger also regularly leaked infor-
mation he learned when he worked
previously at two other law firms,
Cravath Swaine & Moore LLP and
Skadden, Arps, Slate, Meagher &
Flom LLP, prosecutors said.
Yesterday’s charges do not cover any
trades that may have been made at
that time.
Federal prosecutors said Kluger
passed tips to an unnamed co-con-
spirator about mergers, such as
Oracle’s takeover of Sun
Microsystems, Adobe Systems’ pur-
chase of Omniture, Hewlett-Packard’s
takeover of 3Com and Intel’s pur-
chase of McAfee. The co-conspirator
would then tip Bauer, 43, who would
make trades for all three based on the
tips, according to the complaint.
DOUBTS GROW OVER BUFFETT’S
HANDS-OFF MANAGEMENT
Warren Buffett expressly warned his
senior executives last year against
trading in companies in which he
might invest. The disclosure comes a
week after one of Buffett’s key lieu-
tenants stunned the business world
by resigning amid reports that he had
bought shares in the Lubrizol chemi-
cal company just days before recom-
mending its purchase by Buffett’s
Berkshire Hathaway investment firm.
FORGET THE PAST, A RATE RISE IN
EUROPE WILL SEND SHARES LOWER
European shares defied conventional
wisdom and soared both times in
the past when eurozone interest
rates were raised for the first time
after a series of falls. But this time
will probably be different, according
to analysts at HSBC.
such posts – yet just one of these was a
UK citizen.
Clegg is also wrong about some-
thing else. The Social Market
Foundation has actually done some
real research on internships.
Remarkably, its polls reveal that 57
per cent of young people from a low
socio-economic group report not
being put off from a career that
requires unpaid work to get into, com-
pared to 59 per cent from a high socio-
economic group. There is no real
difference. The issue is not free intern-
ships, it is that the poor are not aware
of opportunities or don’t know how to
access them.
Britain is not a closed society. Our
tragic, urgent problem is that those
with inadequate education and skills
stand little hope in today’s ultra-com-
petitive world. Clegg should stop
moralising about things he doesn’t
understand and focus on improving
government policies.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
The majority owners of the supermarket chain are appointing advisers
Landsbanki to sell Iceland
CONSUMER
▲
BY JULIET SAMUEL
THE majority-owner of Iceland Foods
yesterday confirmed that it is a step
closer to selling its stake in the super-
market chain, thought to be worth
around £1.5bn.
The Landsbanki Resolution
Committee – the organisation in
charge of offloading the toxic assets
of bailed-out Icelandic bank
Landsbanki – said in a statement yes-
terday that it “has initiated a process
CHAMPIONS LEAGUE BRAND
CHAMPION ICON SOLD FOR £11M
A company involved in the branding
of the UEFA Champions League, the
Ryder Cup and Wimbledon is being
sold for £11m to Chime
Communications, the PR and market-
ing group chaired by Lord Bell. Icon,
which began operations in 1949, is a
so-called “experiential” marketing
business that aims to bring to life
sponsors’ brands.
TRADES EXIT BBC RADIO TIMES AND
TOP GEAR MAGAZINE AUCTION
Key trade bidders for BBC Magazines
have exited the race to acquire the
business behind the Radio Times and
Top Gear magazines after slashing
their offers. Bids from media compa-
nies such as Bauer, owner of Heat
magazine, were cut as it emerged that
Top Gear magazine and other leading
BBC titles were not for sale.
CITYA.M. 7 APRIL 2011
NEWS | IN BRIEF
Goldman to buy out Aussie JV
Investment bank Goldman Sachs said yes-
terday it was seeking to buy the remaining
55 per cent of its Australian and New
Zealand joint venture that it does not
already own. Goldman Sachs, which cur-
rently owns 45 per cent of the joint ven-
ture, said in a statement it had
commenced a formal process to take its
stake in Goldman Sachs & Partners
Australia Group Holdings to 100 per cent.
The bank’s Australian and New Zealand
business has operated as a joint venture
since 2003.
Libyan rebels stop oil production
Brent crude oil futures hit a 2.5-year high
of $123 per barrel yesterday as rebels said
that they had been forced to suspend pro-
duction in Libya’s eastern oil fields due to a
sustained assault by Muammer Gaddafi’s
forces. The hiatus means that rebel forces
have only managed to oversee the extrac-
tion and export of one tanker’s worth of
oil during their time in charge of the coun-
try’s rich eastern oil reserves, although
they have seen off two tankers that were
filling previous orders. Rebels are hoping
to use oil exports to fund the ongoing war
against Gaddafi.
to evaluate its options with regards to
its holding in Iceland Foods”.
The “process” is thought to be a
beauty parade – or invitation to pitch
– of investment banks to sell its 67 per
cent stake.
“The management of Iceland Foods
has been kept fully informed of devel-
opments,” the committee added.
Malcolm Walker, chief executive of
Iceland Foods, is likely to be a bidder.
The Landsbanki Resolution
Committee also owns the majority of
Hamleys, the toy shop.
CONFIDENCE AN ISSUE FOR IRISH
BANKS
Ireland’s banking regulator said it
will take years for investors to regain
confidence in the country’s banks,
which in the meantime are likely to
remain reliant on funding from cen-
tral banks. “It’s going to take a while
before there’s an Irish bond issue”
from a bank, said Matthew
Elderfield, the head of financial regu-
lation at the Central Bank of Ireland.
SPAIN PUSHES BIG BANKS TO BUY
CAJA
Spanish regulators are pressing Banco
Santander SA and other large Spanish
banks to take part in the cleanup of
the country’s financial sector. As the
lender, Caja de Ahorros del
Mediterraneo, approached Santander,
Banco Bilbao Vizcaya Argentaria SA
and midsize Spanish banks in recent
days in an effort to sell itself.
CITYA.M. 7 APRIL 2011
Gold hits new
record high
against dollar
▲
WORLD ECONOMY
BY JULIAN HARRIS
GOLD soared to a fresh record high in
New York yesterday, explained widely
by spiralling inflation and tumbling
confidence in the US dollar.
Silver also spiked, to a 31-year high,
with investors turning to both metals
as “safe havens” amid economic
uncertainty and historically accom-
modative monetary policy.
“The record price of gold is only
coming through against the US dol-
lar, and remains quite a way off in
sterling and euro terms,” said Adrian
Ash of Bullion Vault, a gold trading
service.
Gold surged past $1,463 (£897) an
ounce before closing at $1,461.50, hav-
ing rallied by more than eight per
cent over the last two months. Gold
futures also rose by half a per cent,
while silver hit a peak of $39.68 an
ounce during the day.
“The Fed has printed billions, its
monetary policy is unsustainable,”
commented Michael Hewson of CMC
I WAS
TH E O N E
THAT
A W A
GOTys from £229Y
Holida
Price correct at time of going to print, subject to availability and conditions. Price includes flights, 7 nights’ accommodation and based on 2 sharing in April 2011. lastminute.com acts as an agent for ATOL protected operators.
Markets. “And if the US can’t even
agree a Budget or a debt ceiling, what
confidence does that give the dollar
as a reserve currency?”
“People are losing faith in the abili-
ty of their governments to keep infla-
tion under control and maintain the
purchasing power of their curren-
cies,” added Tom Clougherty of the
Adam Smith Institute.
On Tuesday the Fed appeared to
confirm that its controversial pro-
gramme of asset-buying, coined QE2,
will not be curtailed.
While still dovish in its sentiment,
the minutes of the Fed’s last meeting
admitted that the size of the ongoing
quantitative easing could pose an
upward risk to inflation expectations.
Instability in the Middle East and
rising food, oil and other commodity
prices were also cited as potential fac-
tors behind the strength in gold and
silver – as well as seasonal peaks,
caused by demand in India.
India is the world’s leading con-
sumer of gold, spending 2.65 per cent
of its GDP on the metal.
For a full list of terms and conditions please visit www.lastminute.com
Generali chairman Geronzi Cesare has finally walked out after a string of rows
Generali chairman quits
▲
INSURANCE
BY JULIET SAMUEL
CESARE Geronzi, the longstanding
chairman of Italian insurance giant
Generali, resigned last night after a
dramatic series of rows that had
blighted the company for months.
The turmoil had seen two independ-
ent directors leave after arguments
between factions loyal to Geronzi and
those loyal to chief executive Giovanni
Perissinotto.
The matter came to a head after
board members tabled a no-confi-
dence vote that was expected to get
majority support at an emergency
meeting yesterday, but Geronzi quit
before the vote.
The company said that he had
walked out “as a result of the situation
that has developed owing to differ-
ences that prevent his involvement in
Generali”.
The resignation of the 76-year-old
marks the end of an era in Italian busi-
ness circles – and likely the end of a
high-flying career for Geronzi, former
chief of Capitalia and Mediobanca.
Generali’s shares rallied after the
news, closing up three per cent.
News 3
Google to spend
up to $100m on
YouTube revamp
MEDIA
▲
YOUTUBE is to undergo a major
overhaul that will see it reformatted
into “channels” or topics such as
sport and art, some of which will
feature original content produced
for the website.
Most of the channels will consist
of a reorganisation of material
already uploaded to make it easier
for users to find the content that
they want to watch, but a few pre-
mium channels will offer new,
specifically commissioned videos,
according to the Wall Street
Journal.
The new content, on which par-
ent company Google is to spend up
to $100m (£61m), are part of an over-
haul designed to prepare for the age
of internet-connected televisions,
likely to mean a further surge in the
sharing of video content.
Producing original content would
be a stark departure from its origi-
nal model for YouTube, which is
based around user-generated videos.
The commissioned material is
likely to stem from deals struck
with established Hollywood produc-
tion studios.
The first changes will start to be
phased in towards the end of this
year, with YouTube currently hiring
for staff to implement them.
4 News CITYA.M. 7 APRIL 2011

The rise and fall of a hedge fund star

THE story of RAB Capital’s fall from
grace serves as a metaphor for the
entire credit crunch. When Philip
Richards floated the fund on the
stock market in 2004, he made mil-
lions for himself, not to mention his
colleagues. Until the crisis, the fund
performed superbly; it appeared RAB
could do no wrong. But Richards
made a disastrous bet on Northern
Rock through the RAB Special
Situations (RSS) fund and lost virtual-
ly the entire investment after it was
nationalised.
As if that wasn’t enough, RSS
made lots of investments in illiquid
natural resources assets; investors
asked for their money back, but the
cash wasn’t there. When hubris
strikes, it strikes hard.
RAB gave RSS clients an ultima-
tum in 2008. Either it liquidated the
assets – meaning a massive loss – or
they agreed to be locked in for three
years while it proceeded with an
orderly sell-down. Now the firm has
six months before the gate is opened,
and it expects 79 per cent of
investors – who hold around $370m
– to pull out.
That is a quite simply staggering
state of affairs: a company that man-
aged £7.2bn at its zenith in 2007 will
soon have around $100m in its “mas-
ter” fund. Yesterday the chief execu-
tive admitted the firm had “made
mistakes”. Quite.
Of course, for the 20 per cent or so
who stick around, the real question
is how RSS will perform in the
future.
There are signs that RAB has
learnt lessons: its investments are
more liquid, and restricted to long-
only bets on the natural resources
sector and emerging markets.
That said, its recent play on
Falkland Oil & Gas was a shocker: the
firm’s shares have plummeted from
243.5p in July to 81.75p yesterday,
after its three-year quest for oil in the
Falklands proved fruitless. Richards
still has much proving to do.
BOTTOMLINE
Analysis by David Crow

Philip Richards’ RAB Capital will pay almost $400m back to investors.

Stricken RAB
to pay $400m
to investors requests were in line with its expecta-
▲

HEDGE FUNDS
BY RICHARD PARTINGTON
A RAFT of redemption requests has
hit hedge fund RAB Capital, as
investors look for an exit from its
beleaguered flagship vehicle.
Investors are seeking to withdraw
almost $400m (£245m) from RAB’s
$500m Special Situations fund, three
years after harmful losses forced it to
restrict redemptions.
A series of ill-fated investments –
including a stake in Northern Rock
before the lender’s high-profile col-
lapse at the hands of the credit crisis
– made RAB one of the biggest hedge
fund casualties of the crash.
The firm locked investors into the
fund for three years in September
2008, until it could regain sufficient
liquidity to pay them back.
RAB said yesterday it expected to
repay 79 per cent of investors in
October. The firm said the payout
tions, and that it now has “adequate
liquid resources to pay the amount
in full”.
It added that its revenues would be
five per cent lower than last year due
to the redemptions.
Last year, RAB made a pre-tax loss
of £20m on revenues of £11.9m.
The hedge fund once held assets
under management of more than
$7bn, yet controlled just $1.1bn last
year.
“We made mistakes in the run up
to the crisis and that has been a chas-
tening experience,” said RAB co-
founder and manager of the Special
Situations fund Philip Richards.
“We have learnt from it and are
already using those lessons to the
benefit of our investors.”
He added: “We are pleased to be in
a position to fulfil our pledge to pay
out those investors who wish to
redeem from the fund.”

Cameron writes to ministers in

bid to reduce red tape on firms
can say which regulations they think
▲

POLITICS
DAVID Cameron has written to all
government ministers calling for a
“change in approach” to regulation.
He wrote: “Be in no doubt: all those
unnecessary rules that place ridicu-
lous burdens on our businesses and
on society – they must go, once and
for all.”
The government is launching a
website where members of the public
should be scrapped, made simpler or
kept.
It will form part of the govern-
ment’s campaign to tackle the stock
of more than 21,000 rules that busi-
nesses must abide by.
The British Retail Consortium said
the “clear-out of old rules must be
accompanied by a commitment on
keeping new regulations to a mini-
mum”.
 £2,930 saving
+
1 3 6
47.9
mpg
2 4 5
16" ALLOY AUTO ALL ELECTRIC ELECTRIC 6 SPEED MP3 FUEL
WHEELS AIR CON WINDOWS MIRRORS TRANSMISSION CONNECTIVITY ECONOMY

+
REPRESENTATIVE*

Auris TR from £12,995. It all adds up.

toyota.co.uk

Model shown Auris TR 1.33 VVT-i 3dr manual at £12,995, metallic paint £420 extra. Price is calculated by deducting £2,130 customer saving and £800 centre contribution from manufacturer’s list price and is correct at time of
JRLQJWRSUHVV,QFOXGHV9$7GHOLYHU\FKDUJHQXPEHUSODWHV\HDUȃVURDGIXQGOLFHQFH eɬUVWUHJLVWUDWLRQIHH6XEMHFWWRDYDLODELOLW\2QO\DYDLODEOHIRUQHZUHWDLORUGHUVRIPRGHOVKRZQEHWZHHQVW$SULOǿWK-XQH
DQG UHJLVWHUHG EHIRUH WK 6HSWHPEHU   \HDU PLOH PDQXIDFWXUHUȃV ZDUUDQW\ LV VXEMHFW WR WHUPV DQG FRQGLWLRQV LQFOXGLQJ UHTXLUHPHQW WKDW VHUYLFLQJ RI YHKLFOH LQ DFFRUGDQFH ZLWK WKH VWDQGDUG 7R\RWD VHUYLFH
VFKHGXOH IRU WKH IXOO  \HDU SHULRG )UHH VHUYLFLQJ RɫHU DQG  $35 UHSUHVHQWDWLYH RQO\ DYDLODEOH IRU QHZ UHWDLO RUGHUV RI PRGHO VKRZQ EHWZHHQ VW $SULO DQG WK -XQH  DQG UHJLVWHUHG DQG ɬQDQFHG WKURXJK 7R\RWD
)LQDQFLDO 6HUYLFHV *UHDW %XUJK %XUJK +HDWK (SVRP 6XUUH\ .7 8= EHIRUH WK 6HSWHPEHU  RQ D  \HDU $FFHVV7R\RWD 3&3 SODQ ,QGHPQLWLHV PD\ EH UHTXLUHG )LQDQFH VXEMHFW WR VWDWXV WR RYHU V 7R\RWD &HQWUHV
DUH LQGHSHQGHQW RI 7R\RWD )LQDQFLDO 6HUYLFHV )UHH VHUYLFLQJ RɫHU LQFOXGHV WKH ɬUVW WKUHH VFKHGXOHG VHUYLFHV DW DQ Rɮ FLDO 7R\RWD &HQWUH HYHU\  PLOHV RU  PRQWKV ZKLFKHYHU LV ɬUVW 7HUPV DQG FRQGLWLRQV DSSO\

  FLDO)XHO&RQVXPSWLRQ)LJXUHVLQPSJONP8UEDQ([WUD8UEDQ&RPELQHG&22(PLVVLRQVJNP

$XULV75997LGRRUPDQXDO2ɮ
CITYA.M. 7 APRIL 2011 News 7

IMF slams US for

The Olympic
Village site in
Stratford will be
converted into
housing after the

incomplete budget
2012 Games

Picture: GETTY

est, which it called “both expensive

▲
US ECONOMY
BY HARRY BANKS
THE United States should include in
its budget the cost of mortgage loan
guarantees and other housing sup-
ports, the International Monetary
Fund (IMF) said yesterday in a rare
criticism of its biggest shareholder.
The IMF also faulted the Obama
administration for failing to address
the tax deduction for mortgage inter-
and regressive.” The tax break is huge-
ly popular, and eliminating it would
no doubt cause political pain at a
time when the Obama administra-
tion is already preparing for the 2012
presidential election campaign.
The Obama administration has
kept Fannie and Freddie off the budg-
et. Including them would make an
already ugly fiscal picture look even
worse.

Three bidders
left in race for
Olympic site
ing to ease the severe shortage of
▲

PROPERTY
BY MARION DAKERS
THE OLYMPIC Delivery Authority
(ODA) has narrowed its search for the
future owner of the Olympic Village
to three candidates, it announced
yesterday, as the Games organisers
prepare to launch a massive advertis-
ing campaign to drum up ticket
applications.
Hong Kong conglomerate
Hutchison Whampoa has been short-
listed, alongside medical charity
Wellcome Trust and a consortium
made up of real estate investment
adviser Delancey and the property
arm of the Qatar Investment
Authority.
The ODA currently owns around
half of the 2,818 homes in the
Olympic Village site in Stratford,
along with six development plots
nearby with space for a further 2,000
properties.
Triathlon Homes, a joint venture
between London housing firms First
Base, Southern Housing and East
Thames, has already bought the
other half of the properties at the vil-
lage and plans to turn them into
affordable housing after the
Olympics.
The homes across the village sites
will range from studio apartments to
five bedroom houses once converted
from athletes’ accommodation, help-
affordable housing in east London.
ODA chief executive Dennis Hone
said: “The quality of the three short-
listed parties is a vote of confidence
in the Olympic Village, demonstrat-
ing both UK and international inter-
est in first-class British property.”
The ODA has spent nearly £1.1bn
building the Olympic Village site, out
of a total £9.3bn investment in the
2012 Games.
One of the candidates, Wellcome
Trust, is also considering an offer for
the bulk of the entire Olympics site,
including the stadium, aquatics cen-
tre and athletics village.
The Qatari investment group
already owns several high profile
properties in London, including
Harrods and a stake in the owners of
Canary Wharf.
A final decision on the manage-
ment contract will be made in the
summer.
The London Organising
Committee has said that demand for
tickets for the event was strong
ahead of the 26 April deadline for
pre-registration. But it is understood
that the group is lining up an adver-
tising campaign, after the group’s
chief executive Paul Deighton told
the International Olympics
Committee around £100m-worth of
tickets will not be sold in the pre-reg-
istration process.

ADVISERS: SAVILLS AND ERNST & YOUNG

ED DE JONGE
SAVILLS
THE Olympic Delivery Authority (ODA)
hired Savills last October to work on
the sale of the Village site, but the firm
has been involved in planning the lega-
cy of the sites for much longer, as part
of a property panel advising the ODA
on all aspects of the Olympic site.
Jones Lang LaSalle, CBRE, Deloitte,
DTZ and Gerald Eve with Ikon
Consulting are also on the panel.
Leading the Savills Olympics team
is Ed de Jonge, a director at the firm
with expertise in east London.
Financial services firm Ernst &
Young is also consulting on the Village
sale, but is remaining tight-lipped
about the team involved. The firm has
plenty of experience with Olympics
sites, although London will be hoping
that most of it won’t be needed – the
firm was appointed administrator for
the Vancouver Olympic Village last
November, barely a year after the
Canadian city hosted the 2010 Winter
Games.
Marion Dakers & Robert Leedham
 The Capitalist
8 EDITED BY CITYA.M. 7 APRIL 2011
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist

Pictures: Micha Theiner/City A.M.

€14M WAR Bob Wigley,
chairman of
CHEST FOR Yell, said the
neglect of the
WIGLEY’S country’s
FILM PLOT servicemen in
the past was
EACH year, the Big Curry Lunch hosted by
Lord Mayor Michael Bear gets “bigger and a disgrace John Griffith-Jones, chairman of KPMG
better” according to Bear, with 800 guests
from the City, Parliament and Livery
Companies sitting down to three servings
yesterday at the Guildhall.
FOX CALLS TIME OUT
Meanwhile, defence secretary Liam Fox
The annual banquet is held in aid of ABF hung back from bidding for the military-
The Soldiers’ Charity, and this year’s event themed lots – such as spending the day
raised more than £150,000 thanks to bene- with Sir Nick Parker, the commander-in-
factors including John Griffith-Jones, HRH the Duke of Kent, the Lord Mayor and Michael Hockney, chairman of the BCL committee chief of the British Army – as it would be a
EMEA chairman at KPMG (top right) and bit of a busman’s holiday.
Robin Creswell, managing principal of equity – split between UK and German overnight in the State bedrooms at the He said: “I certainly won’t be bidding
investment fund Payden & Rygel. investors – as executive producer of a film Mayor’s official residence at Mansion for a day with the military, because I can
However, the City guest with the most called Bomber, based on the wartime House – “one of the grandest surviving do that any time I like.”
personal connection to The Soldiers thriller of the same name by Len Deighton. town houses in London”, with a world- What Fox really wants – or, to be more
Charity was committee member Bob If all goes to plan, filming on the project class collection of paintings. accurate, what his medical director wife
Wigley (pictured bottom right), the former – which follows the progress of an ill-fated The Lord Mayor himself was hoping to Jesme Baird wants so she can spend time
chairman of Merrill Lynch EMEA who is Allied air-raid in 1943 – will take place next win a tour of the WW1 battlefields at with her husband – is a day off.
now chairman of Yell. year, with the movie scheduled for release Ypres as a twenty-first birthday present for Not that Fox was complaining about not
Wigley told The Capitalist how his father by Christmas 2012. his son Marc, who held a dinner party for having any time off work since 18
Joe was an RAF navigator in the Lancaster 40 “very well-behaved” engineering February and cancelling bank
Bomber Command, but his mother was friends from Birmingham University at holidays – as he made
left struggling when Joe’s state pension
was cut off on his death.
FATHER AND SON Mansion House last Saturday. clear, that’s just the
THERE were some “priceless experiences” Confidentiality prevents the City state of play when
He said: “It has been disgraceful that the as prizes at the event’s silent auction, of London naming which bidders you are in charge
country’s ex-servicemen have not been such as firearms training for six with the won each prize – so let’s hope the of the UK’s armed
properly looked after in the past.” City of London Police, a fishing trip for winning £1,750 bid to see the battle- forces as the coun-
In tribute to his late father, Wigley is in two on Northern Ireland’s River Mourne fields of Belgium is debited from try goes to war
the process of raising €14m (£12.3m) of and the chance for two couples to stay the Mayoral bank account. with Libya.
CITYA.M. 7 APRIL 2011 Consumer News 9

ANALYSIS l Retail Cheer for new M&S boss

Number of bras
sold in week leading
up to 14 Feb:
Men’s cotton
cashmere
sales up
JJB deal hit by row over fees
305,000 114% RETAIL

▲
£5m fee paid to advisers. Other advis- led by Keith Jones (pictured),
BY JOHN DUNNE ers include Lazard, law firms and secured a company volun-
compared to the PR firm Maitland. tary arrangement (CVA) in
ONE of sportswear retailer JJB’s advis- A Numis spokesman said: “We which landlords agreed to
Women's previous year ers was yesterday forced to defend its have worked very hard and spent forfeit up to £60m in rent.
swimwear sales up role in a £65m financing deal after an a lot of time on this. We are The proposed share
attack from a major investor. underwriters and have reviewed placing at 40p a share can

26%
during the
Men's Autograph
polo shirts -
The investor, who did not want to
be named, suggested that Numis
Securities had not earned a fee
the working capital among other
things.”
He said that Numis
only be triggered with the
backing of a shareholder
meeting later this
because it had “brought nothing to was steering JJB’s month.
fourth-quarter
15,000
sold in the
the party”.
JJB launched a £65m fundraisng
deal which includes a placing and
move from the
main market to
AIM, which was
The placing is
being backed by
the company’s
fourth-quarter open offer of 162.5m new shares at an intensive and four main
High-heeled shoes by 40p each. specialised sharehold-
Autograph, Sales up Numis hit back at the suggestion process. ers.

76% 6.5m
pairs of
that it had not earned its portion of a Last month JJB,

since ad aired showing Lisa

Snowdon modelling them tights sold in the NEWS | IN BRIEF
(pictured). fourth quarter
Source M&S Prezzo tops expectations was in line with expectations. Prezzo meeting. Abercrombie also revealed that
Pizza restaurant chain Prezzo yesterday recently agreed to buy six leasehold sites it expects to achieve the annual sales
Lisa Snowdon modelling high-heeled autograph shoes in the M&S ad posted a 37 per cent rise in full-year pre- from Caffe Uno. For the period to 2 goal of $7.5bn (£4.6bn) by 2015. The
tax profit that beat market estimates, January pre-tax profit was £14m. firm said that Hollister stores in Europe
driven by new restaurant openings, and have continued to deliver strong sales

M&S sales in said it expected to open at least 20 new

restaurants this year. The company,
which operates 160 restaurants, raised
its final dividend by 12.5 per cent to
0.225p a share and said current trading
Abercrombie bullish on outlook
Shares in clothing retailer Abercrombie
and Fitch rose up to 11 per cent yester-
day as the company provided an opti-
mistic fiscal 2011 outlook in an analyst
and it plans to add another 40 new
Hollister stores. It is also planning to
open 10 Abercrombie & Fitch stores
abroad this year and another ten next
year, including in Paris next month.

surprise lift
RETAIL
▲

or sales are falling off a cliff … the

BY JOHN DUNNE Budget has not had a big impact.
However there will be an increasingly
MARKS and Spencer yesterday lifted tough time over the next year,” he
some of the gloom surrounding the said.
retail sector with a slim sales rise – but Bolland said that special occasions
the company warned that times will like Mothers’ Day and Valentine’s Day
get tougher. had boosted sales as customers treat-
The chain – which had been expect- ed themselves after tightening their
ed to report a sales slump – was given belts in other areas of their expendi-
a boost from its food section. ture. Meanwhile M&S apologised
Overall its UK like-for-like sales rose after some UK customer details were
0.1 per cent in the 13 weeks to 2 April. stolen, including email addresses.
General merchandise fell 3.9 per
cent, but that was cancelled out by ANALYSIS l M&S
the 3.4 per cent rise in food sales. 390 p
Chief executive Marc Bolland, who 360.00
joined M&S from Morrisons, has 6 Apr
brought in hundreds of new food 370
ranges to the store. He said the food
category was performing well 350
because of the “unique” ranges it was
offering, but indicated that con-
sumers were becoming increasingly 330
hard pushed.
“It is not that we are hitting a wall 10 Jan 28 Jan 17 Feb 9 Mar 29 Mar

ANALYST VIEWS: CAN M&S BUILD ON ITS

UNEXPECTED SALES LIFT? Interviews by John Dunne

MATTHEW MCEACHRAN | SINGER CAPITAL MARKETS

“ This update is slightly better than feared, albeit we believe advertising

and promotional costs would have been slightly higher to achieve this.

”
Nevertheless, consensus forecasts should be achieved depending on the final staff
bonus costs, we think the shares might see a small relief bounce.

MAUREEN HINTON | VERDICT RESEARCH

“ As inflation becomes more evident in clothing, shoppers are looking for

quality and value to justify paying higher prices and M&S’ strengths lie in quality,

”
value and innovation, which it is highlighting in its marketing. Indeed it is seeing
customers trading up to their premium ranges rather than trading down.

SAM HART | CHARLES STANLEY

“ The shares have been derated in recent months, along with the whole
general retail sector, on growing concerns over the consumer outlook and higher

”
cotton prices. The current valuation, however, suggests that a lot of bad news is
already discounted. Our recommendation stays at ‘accumulate’.
 10 News CITYA.M. 7 APRIL 2011

Italy’s Intesa to raise €5bn fresh funds Japan relief plan

to issue no debt
BANKING
▲

ambitious 2013 targets designed to assets in 2013 and will increase annu- Intesa’s shares closed up 5.4 per
BY ALISON LOCK increase the bank’s profitability and ally. cent at €2.24 on the news.

ITALY’S second-biggest bank Intesa
Sanpaolo followed German counter-
part Commerzbank in announcing a
multi-billion euro capital raising yes-
terday.
Intesa, Italy’s biggest retail lender,
will raise €5bn (£3.1bn) from the cap-
ital markets by July to strengthen its
balance sheet ahead of stringent new
capital requirements on banks com-
ing into effect in 2013.
The fundraising is part of a set of
attractiveness, that will see it imple-
ment €770m of cost cuts including
the loss of 3,000 jobs.
Intesa is targeting a 56 per cent
jump in net profit to €4.2bn in 2013
from €2.7bn last year and wants to
pay dividends totalling €5.3bn in 2013
and €13.5bn in 2015, it said.
The overhaul will make the bank
better able to meet new Basel III capi-
tal requirements, which require
banks to hold at least eight per cent
of core Tier 1 capital against risky
▲
JAPAN
The capital raising would increase
Intesa’s high-quality Tier 1 capital ANALYSIS l Intesa Sanpaolo THE Japanese government is planning
ratio to 10 per cent, it said. 2.6 to provide an additional three trillion
€
Italy’s central bank governor Mario 2.24 yen (£21.4bn) to finance the country’s
Draghi has urged banks to take steps 6 Apr reconstruction without issuing new
2.4
to ensure they are better capitalised bond debt “to maintain market trust”,
ahead of further stress tests on banks 2.2
a blueprint for the budget said.
to ensure they can survive another To fund it, the government will use
crisis or major economic downturn. money previously assigned for basic
Although Italian banks weathered 2 pension benefits, as well as scrapping
the financial crisis relatively well, other premiums that were to be intro-
their capital ratios overall are at the duced before the catastrophe, such as
10 Jan 28 Jan 17 Feb 9 Mar 29 Mar
bottom of the European sector. payouts to households with children.

Bankia to
hive off its Commerzbank
toxic assets to pay back
BANKING
€14bn bailout
▲

BY ALISON LOCK
BANKIA, Spain’s biggest savings bank,
said yesterday it would create a bad
bank for toxic assets such as repos-
sessed land, ahead of a stock market
listing expected later this year.
Bankia, formed from seven region-
al banks including heavyweight Caja
Madrid, said it would seek a stock
market listing with a net book value
of €12bn (£10.5bn) and assets totalling
▲
BANKING
BY ALISON LOCK
GERMANY’S second-largest bank
Commerzbank’s chief executive, Martin Blessing Picture: REUTERS Commerzbank announced its plan
for an ambitious capital raising to
repay the majority of its government
“We are surprised at
Commerzbank’s determination to
pay out €3.27bn of excess capital just
a few weeks before the European
banks stress test,” said RBS analysts.
“Management must be fully con-
vinced that it will pass the stress tests

€270bn.
Spain’s second-biggest savings bank
La Caixa said in January it would hive
off its real estate assets into an unlist-
ed company before reversing its bank-
ing business into its already listed
Criteria unit.
Spain’s government has told its sav-
ings banks, known as cajas, to raise
Q&A
bailout yesterday. even after the payout.”
WHAT THE PAYBACK PLAN MEANS The bank said it would raise a total The long-awaited package is subject
of €11bn (£9.6bn) through an €8.25bn to shareholder approval at its annual
notes to shares fol- rights issue between May and June, meeting on 6 May. Commerzbank is
Q. HOW IS COMMERZBANK
ARRANGING THIS?
It is converting €2.75bn of the
lowing a shareholder
vote at the annual general meeting
and by converting €2.75bn of the
German government’s current non-
among the first of the large European
banks to tap capital markets for fresh
A. ‘silent participation’ non-voting
stock held by the German govern-
on 6 May. The notes will be priced
on 13 April. It aims to raise €2.6bn-
€3.4bn of this from the market –
voting stock into shares.
It aims to repay 88 per cent, or
€14.3bn, of the €16.2bn bailout it was
funds before tough new Basel III regu-
lations take effect in 2013.

their solvency ratios to tough new
minimum levels, either by getting pri-
vate capital on board or accepting
state funds. Spain is under pressure to
reassure markets on the solvency of
its financial system, even more so
ment into ordinary shares, and ask-
ing investors to buy €8.25bn of new
shares in different forms.
Q. HOW WILL IT BE STRUCTURED?
and €0.9bn-€1.1bn by converting
silent participations to CoMEN,
which will then be converted to
shares. The second step will be a
rights issue after the annual meet-
ing to raise €6.5bn-€7.5bn, with
€1.6bn-€1.9bn raised by converting
granted in the financial crisis by June ANALYSIS l Commerzbank
this year, to enable it to resume divi- 6.4
€
dend payments and increase its 5.71
6 Apr
bankers’ salaries. Another €3.3bn will
be paid from its own saved capital,
while the remaining €1.9bn would be
6

after Moody’s cut the credit ratings of

seven Portuguese banks yesterday.
Banco Financiero y de Ahorros
A.
ible notes (CoMEN), a form of debt
The bank will offer investors
conditional mandatory convert-
silent participations and €4.9bn-
€5.6bn via the market.
paid down by 2014 at the latest.
The German government owns a 25
per cent stake in Commerzbank fol-
5.6

(BFA) will be the unlisted unit and that can be converted to equity. It Commerzbank is one of the first of lowing the 2009 bailout in the form of
include repossessed land and doubt- aims to raise €3.5bn-€4.5bn this way, the large European banks to tap capi- so-called silent participation, a form
ful real estate loans, Bankia said. with the intention to convert the tal markets prior to Basel III in 2013. of non-voting share capital. 10 Jan 28 Jan 17 Feb 9 Mar 29 Mar

Hardy sees Japan crisis NEWS | IN BRIEF

Chime Group moves into sport

losses capped at £12m

Advertising business Chime Group yes-
terday announced that it has bought
London-based sports marketing compa-
ny Icon, whose customers include foot-
ball regulation bodies FIFA and UEFA,
for £11m ($17.7m). The transaction will
be financed by a vendor placing of
INSURANCE estimate by risk modelling firm caused by the earthquake. £7.15m and cash placing of £5.1m at
▲

BY ALISON LOCK
JAPAN’S dual earthquake and
tsunami catastrophes will cost
Lloyd’s insurer Hardy
Underwriting between £9m
and £12m, it said yesterday.
The figure came in below
expectations thanks to a series
of decisions made by Hardy to
contain the impact of a possi-
ble crisis, including being well-
protected by reinsurance and
under-exposed to Japan’s rural
coastal areas.
The estimate is based on an
industry loss of $35bn (£21.5bn)
– higher than the maximum
AIR Worldwide, which placed
losses at $20-30bn.
Hardy, which wrote gross
premiums of £280m last year,
said its loss estimate was low
because it had based its disas-
ter scenarios on an event cen-
tred on Tokyo, whereas the
rural areas affected generated
far lower insured losses.
The losses will be to its rein-
surance division, which
insures other insurers’ cover-
age of risk and pays out only
on a proportion of the losses
they incur. Its reinsurance is
primarily of home contents,
rather than structural damage
The loss equates to about
seven per cent of Hardy’s net
tangible assets in 2010.
Analysts said the result was
“reassuring”.
“The group appears to have
benefitted from earthquake
and tsunami exclusions on its
material Kyosai account and a
more effective reinsurance
programme for 2011,” said
Numis analyst Nick Johnson.
“Hardy should be one of the
key beneficiaries of anticipat-
ed rate increases in Japan and
international catastrophe rein-
surance.” Its shares closed up
0.72 per cent at 280p.
260p a share. The group is also in talks
to buy a Brazilian marketing firm ahead
of the next football World Cup and the
Olympics, both to be held in Brazil.
Shire files to block infringement
Biopharmaceutical company Shire has
filed a lawsuit for patent infringement
and breach of contract against their US
rival Watson Pharmaceuticals which
intends to produce generic versions of
the Aderall XR drug before its patent
expires. The lawsuit follows Watson’s
new drug application with the US Food
and Drug Administration to market
generic versions of Aderall XR which
treats attention deficit and hyperactivi-
ty disorder.
CITYA.M. 7 APRIL 2011 News 11

More Riversdale
investors accept India blow for
Rio Tinto deal
Cairn-Vedanta
▲

MINING

RIO TINTO edged closer to sealing its M&A ONGC, currently pays all royalties on

planned takeover of Australian coal
group Riversdale Mining yesterday
after it secured acceptances from
49.49 per cent of shareholders.
In order to mop-up more than 50
per cent of the shares, Rio has extend-
ed its bid, which had been due to
close last night, until 20 April.
Rio announced the stake, the
extension and, as previously flagged,
the sweetening of the offer from $16
to $16.50, last night.
The firm lowered its acceptance
threshold last month after more than
four months of tussling, when
Riversdale’s top shareholders, Tata
Steel and CSN, refused to sell their
combined 46.9 per cent stake.
Rio Tinto is pursuing bolt-on acqui-
sitions rather than blockbuster deals
this year, as it returns $5bn to share-
holders under a buyback scheme.
Riversdale shares closed at A$16.42
yesterday in Australian trading before
Rio’s announcement.
▲
BY MARION DAKERS
CAIRN ENERGY’S £5.9bn deal to sell
most of its Indian business to Vedanta
suffered another setback yesterday
when the Indian government referred
the deal to a panel of ministers for fur-
ther scrutiny.
The Indian cabinet unanimously
said the royalties related to the deal
need to be looked at before the pur-
chase can be approved, and “such a
decision should not be taken in a
hurry”, one minister added.
The move causes further frustration
for Cairn and Vedanta, who first
agreed what could be India’s biggest
oil and gas deal last August and had
expected the government to make a
final decision in a matter of days.
Cairn has set an internal deadline
of 15 April to secure the deal. No
timetable has been set for the Indian
committee investigation.
Anil Agarwal, chairman of Vedanta Resources, was left disappointed yesterday Picture: GETTY Cairn’s partner in India, state-run
its oil operations, but India has been
pushing to share the royalty burden
between ONGC and Cairn. Both Cairn
and Vedanta oppose the move.
“We will continue to work with the
government of India in a constructive
fashion to secure all the necessary
conditions and approvals,” said a
Cairn spokesperson in London last
night.
Vedanta declined to comment. It
issued a statement yesterday saying
that its offer would open on 11 April
and close on 30 April regardless.
“It is surprising that they are going
ahead with the open offer, because if
the government gives a conditional
acceptance, then it will be value-
destructive for Vedanta,” said Deepak
Pareek, sector analyst at Mumbai bro-
kerage Prabhudas Lilladher.
The news knocked both companies’
shares, with Cairn closing down 2.8
per cent at 456.4p and Vedanta losing
0.8 per cent to £24.97.

BE
THERE
FOR
LONDON

Monaco remains the most

expensive city for top homes
PROPERTY
▲

ty. An investor with $1m can buy

BY MARION DAKERS
MONACO has kept its title as the
world’s most expensive place to buy a
high-end house, according to research
out yesterday, though cities in Asia are
quickly climbing up the leader board.
For $1m (£612,442), a property
investor can expect to buy just 15
square metres of luxury real estate in
Monaco, according to Knight Frank
and Citi Private Bank’s annual wealth
report.
Monaco’s biggest property deal last
year was the €240m (£210.6m) sale of
La Belle Epoque to an unnamed
Middle Eastern investor.
The penthouse was sold by the
Candy brothers, who also made £140m
from the sale of the penthouse at One
Hyde Park in London – the second
most expensive city for luxury proper-
around 18 square metres of space in VOLUNTEER AS A
POLICE OFFICER
the complex.
But Shanghai, Mumbai and
Singapore saw the biggest price rises
during 2010, with high-end properties 16 hours a month · Opportunities across London
in Shanghai going up by an average of Volunteer as a police officer for just 16 hours a month and make your spare time
21 per cent. The Chinese city is now truly worthwhile. Tackle crime and test yourself. Make London safer and make a huge
the 23rd most expensive city for top difference to your community. Wear the same uniform as a regular police officer and
real estate. The research also noted carry the same powers of arrest. Train for one of the most varied and fascinating
that $11 trillion of investable cash is volunteer roles around. Gain an incredible wealth of skills, confidence and experience.
now held in the Asia Pacific region. Be a highly trained special constable. Be there for London.
The area remains third-biggest
behind North America and Europe, To find out more and apply online visit www.metpolicecareers.co.uk/specials quoting
but its high net worth individuals saw ref 46/11 on your application. If you have any further queries please contact our
their wealth grow by 35 per cent last Recruitment Helpline, Mon-Fri, 9am-5pm, on 0845 727 2212.
year – well ahead of the next largest
increase of 25 per cent seen in Latin
America.
New York remains the most eco-
nomically active and influential city
according to the report, with London a
close second.
 12 News CITYA.M. 7 APRIL 2011

NEWS | IN BRIEF
Dish buys Blockbuster assets
JP returns to weather Actelion recruits
another investor storm Garnier in battle
Blockbuster’s assets were bought by
Dish Network at a bankruptcy auction
for a winning bid of $320m (£195.9m)
in the early hours of yesterday morn-
ing. The second-largest US satellite TV

for board control

provider will pay about $228m in cash
with the aim of bolstering offerings,
most likely using Blockbuster’s online
outlet to deliver movies to customers.
The video-rental firm had been unable
to stabilise its future following a drop-
off in the DVD market and concurrent
rise in piracy. Non-US subsidiaries,
▲ PHARMA
BY ALISON LOCK
AS chief executive of GlaxoSmithKline for eight
years, Jean-Pierre Garnier, known as JP in the
industry, is no stranger to activist shareholders.
In 2003 he became the target of Glaxo investors’ PHARMA contribute significantly towards our

including the UK’s 600 shops, are not
included in the bankruptcy proceedings.
Headstrong sold to Genpact
Backoffice services provider Genpact is
buying smaller rival Headstrong for
$550m (£336.8m) in cash as it seeks
to strengthen its financial services
offerings. The purchase of privately
held Headstrong, which gets most of
its sales from the capital markets, will
help Genpact’s banking, financial serv-
ices and insurance (BFSI) business as
the economy recovers from the reces-
sion. “BFSI has slightly better margins
than the rest of Genpact's business,”
chief executive Pramod Bhasin said.
The deal, Genpact's biggest yet, is the
second-largest this year by an Indian
IT services company, following iGate's
purchase of Patni Computer Systems
for $1.2m.
▲
wrath over his pay award, in one of the biggest BY ALISON LOCK objective of delivering a strategy that
shareholder rebellions in UK corporate history. maximises value creation for our
Despite Glaxo’s profits falling by a quarter, THE fight for control of Swiss biotech shareholders,” Cawthorn said.
Garnier’s pay was set to rise to up to £19m company Actelion continued yester- Elliott responded with a message,
from £6m in 2002. He was also to be day with a counterattack by the com- ostensibly from its proposed board,
made eligible for an £18.3m gold- pany against its activist investors. saying the proposals fell short of real
en parachute if he lost his job. Actelion said it would add two phar- reform. “The balance of power in the
Amid angry protests, more maceutical heavyweights, Jean-Pierre board needs to be fundamentally
than half the shareholders Garnier and Robert Bertolini, to its changed,” it said.
rejected the remuneration board with Garnier becoming chair-
report. It was just one episode man in 2012. ANALYSIS l Actelion
in an combative career. Garnier Elliott, which holds six per cent of
55
oversaw court cases suing Actelion, has accused the board of fail- CHF
developing countries for using ing to consider shareholders’ interests 54 52.05
53
6 Apr
cheap generic versions of anti- and proposed six new directors to
AIDS drugs, and led the firm join, while demanding that chief exec- 52
through protests over animal utive Jean-Paul Clozel and chairman 51
testing and product scares. Robert Cawthorn step down. 50
Post-Glaxo, Garnier until last But Actelion’s choices are respected 49
September headed French industry experts calculated to help 48
firm Pierre Fabre Labs. regain shareholders’ support.
JEAN-PIERRE GARNIER “Their combined experience...will 2011 24 Jan 7 Feb 21 Feb 7 Mar 21 Mar

Jitters hit Edwards

as listings struggle
CAPITAL MARKETS the London Stock Exchange. PricewaterhouseCoopers (PwC)
▲

BY RICHARD PARTINGTON
DEMAND for shares in Edwards,
the vacuum technology group that
intends to float in London, is too
low to guarantee an initial public
offering (IPO) will go ahead,
sources said last night.
Edwards is due to price its shares
before the end of the week, but
there have been concerns over the
appetite for stock.
Today is the last day of the firm’s
roadshow to drum up interest,
although sources close to the
process say talks with investors
have gone well and that significant
orders are still coming in.
Edwards is looking to raise at
least £375m through a listing on
Its private equity backers – CCMP
Capital and Unitas Capital – own a
combined 90 per cent stake of the
firm, which was valued at £1.5bn
last year.
It is one of a number of floats
that has faced volatile market con-
ditions since the start of this year.
Oil services firm Topaz Energy
and Marine last week pulled its
$500m (£306m) London floatation
after investors failed to show
enough appetite for the shares.
Danish outsourcer ISS and
French media group Lagardere
have also recently postponed list-
ing plans.
Just under €3bn (£2.6bn) in total
was raised through IPOs during the
first-quarter of this year, a report by
published today finds.
Deal values plummeted 71 per
cent, compared to the fourth-quar-
ter of last year, when floats generat-
ed more than €10bn.
Richard Weaver, capital markets
partner at PwC, said: “It’s a volatile
and uncertain time for the IPO
market.
“Investors are currently so wary
that the price they are prepared to
pay often doesn’t come close to
matching sellers’ expectations.
Those companies which are taking
the plunge in the coming weeks
will be acutely aware of this.”
He added: “I wouldn’t see it all as
doom and gloom, there is definite-
ly appetite for the right companies
to IPO.”

Rulemakers look Leveraged loans

at covered bonds hit pre-crash high
▲

CAPITAL MARKETS
▲

CAPITAL MARKETS
BRITAIN’S financial rulemakers have launched a
review of the UK’s covered bond market regulation,
to nurture the use of the securities by banks.
The Treasury and the Financial Services Authority
are consulting the City on the market for the instru-
ments, which are considered more resistant to finan-
cial jitters.
Tim Skeet, board member of the International
Capital Markets Association, said: “[Covered bonds]
are a vital source of long-term stable funding for the
financial sector. They’re a well thought out product
and are part of the solution, not the problem. We’re
delighted to see the government give them time and
resources.”
GLOBAL leveraged loan volume hit its highest level
last month since before the recession, according to
data provider Dealogic.
The combined value of leveraged loans was
$132.4bn (£81.1bn) during March, an increase of 42
per cent from the previous month.
The highest monthly level was last seen in October
2007, when $168.2bn worth of leveraged loans were
announced.
Almost 250 deals were revealed last month, the
highest level since July 2007.
Bank of America Merrill Lynch was the lead global
leveraged loan bookrunner with a 15 per cent market
share. JP Morgan placed second, taking 14 per cent.
 CitiF
CitiFX
X Pr
Pro
o
®

Pr
Professionals
ofessionals T
Trade
rade Forex
Forex with Citi

Professionals Can Now

Trade Margin FX with Citi

Citi’
Citi’ss margin
margin FX
FX platform
platform CitiFX
CitiFX Pro
Pro is now
now available
available to
to individual Professional
Professional Clients
Clients in the United
United Kingdom.
C
Celebrating
elebrating our launch we
we are
are offering
offering special pricing on all account
account ttypes.
ypes. Besides
Besides tight
tight spr
spreads,
eads, ther
there
e ar
are
e man
many
y
rreasons
easons wh
why
yeexperienced
xperienced tr
traders
aders ffavour
avour CitiF
CitiFX
X Pr
Pro:
o:

T rrade leading
ade with a le brand
ading br FX
and in FX Access
Access to
to CitiFX
CitiFX research
research and commentary
commentary
Citi client events
client e FX
vents with F try e
industry
X indus xperts
experts platforms for
Multiple platforms for execution
execution including MT4
Commission-based
C available
ommission-based pricing available Offerings for
Offerings for small and mid-sized
mid-sized institutions
institutions

Target
Ta
arget spr
spreads
eads by
by account
account siz
size
e

Currency
Currency cross
cross Premium Account* S
Standard
tandard Account**
Account** For
For a limited
o limit gett pr
li ited period ge premium
emium
EURUSD
EURUSD 1.2 1.6 pricing on your
your standard
standard account
account
USDJPY
USDJPY 1.7
1.7 11.9
.9 Apply before
before Ma
Mayy 6, 2
2011
011 tto
o rreceive
eceive
GBPUSD 2.0
2.0 2.3
2.3 pr
premium
emium pricing on a standard
standard account
account
inde finitely.*** Simply mention
indefinitely.*** mention
EURGBP
EURGBP 1.8 2.4
2.4
CityAM’ with y
‘CityAM’
‘Cit your
our applic
application!
ation!
AUDUSD
AUDUSD 1.9
1.9 2.4
2.4

Contact us Further details

Tel: 0800 279 4772 Visit our website:
Email: citifxpro.sales@citi.com www.citifxpro.com/UKoffer

©2
©2011
011 Citigr
Citigroup
oup Inc. All righ
rights
ts rreserved.
eserved. Citi is a tr
trademark
ademark o off Citigr
Citigroup
oup Inc. usused
ed and rregistered
egistered thr
throughout
oughout the w world.
orld.
T rading fforeign
Trading oreign exchange in
exchange volves a high degr
involves degree ee o
off risk. CitiF
CitiFXX Pr
Prooo ffers tr
offers ading on mar
trading gin. T
margin. he le
The verage cr
leverage eated b
created y tr
by ading on mar
trading gin can
margin can work
work against
against y ou as w
you ell as ffor
well or y ou, and lo
you, sses ccan
losses an e xceed your
exceed your entire
entire
in vestment. B
investment. efore opening an ac
Before count and tr
account ading, y
trading, ou should ensur
you ensure e that y ou under
you stand the risk
understand riskss and can
can withstand
withstand the lo sses and that y
losses ou sseek
you eek advic e fr
advice om y
from our advis
your ors as appr
advisors opriate. T
appropriate. his in
This formation
information
is directed only at per
directed sons in the UK who qualif
persons qualify y as Pr ofessional Clien
Professional ts ((as
Clients as defined in the rule
defined ruless o
off the Financial S ervices A
Services uthority) and CitiF
Authority) X Pr
CitiFX Pro o is only available tto
available o Pr ofessional Clien
Professional ts in the UK. Clas
Clients sification
Classification
Professional Clien
as a Professional Clientt ma
may y rrequire
equire an as sessment o
assessment off the per son’s e
person’s xperience and kno
experience wledge (in rrolling
knowledge olling spot
spot or similar instruments
instruments or mark ets). CitiF
markets). X Pr
CitiFX o is a sservice
Pro ervice o ffered to
offered to you
you by
by Citibank
Citibank International
International
authorized and regulated
plc which is authorized regulated byby the Financial Services
Services Authority.
Authority. Registered
Registered Office:
Office: Canada
Canada Square,
Square, Canary
Canary Wharf,
Wharf, London
London E14 5LB
5LB.. V AT rregistration
VAT egistration number GB 4 29 6
429 25 6
625 29. T
629. he main busine
The ss o
business off
Citibank In
Citibank ternational plc is b
International anking and ssecurities
banking ecurities busine ss. It is en
business. tered on the F
entered SA rregister
FSA egister under number 12 2342. CitiF
122342. X Pr
CitiFX o is only a
Pro vailable tto
available o Pr ofessional Clien
Professional ts in the UK as de
Clients fined in the rule
defined ruless o
off the FSA.
FSA.

*Premium accounts
*Premium accounts rrequire
equire an initial depo
deposit off £3
sit o 0,000. **S
£30,000. tandard ac
**Standard accounts equire an initial depo
counts rrequire sit o
deposit off £
£7,500. ***CitiFX
7,500. ***CitiF X PrPro avors tto
endeavors
o ende o provide y
provide ou with the mo
you st ccompetitive
most ompetitive ttarget
arget bid/ a spr
bid/ask
/ask eads
spreads
available under normal market
available market conditions
conditions and taking
taking into account
into account the ccategory
ategory ooff y
your account
our ac count as specified abo above. The
ve. T Target
he T Spreads
arget Spr auto-execution amoun
eads and auto-execution amountsts may be adjus
may ted b
adjusted byy Citi subject tto
ooother
ther
considerations, as determined
considerations, determined byby Citi from
from time toto time,
time, including, without limitation,
limitation, volatility
volatility and poor liquidity.
liquidity. In periods ooff high volatility liquidity, the spreads
volatility or poor liquidity, spreads may
may be increased
increased and auto-execution
auto-execution
amounts ma
amounts y be rreduced
may educed (in ssome
ome ccases, auto-execution
ases, aut o-execution ma may disabled
y be dis altogether
abled altogether and dedeals
als will be rrouted
outed fforor manual execution).
execution).
 14 News
Daimler and
Rolls launch
Tognum bid
ENGINEERING
▲
BY MARION DAKERS
ROLLS ROYCE and Daimler formally
laid out their takeover bid for motor
and turbine maker Tognum yesterday,
telling shareholders their €3.2bn
(£2.8bn) deal offers the chance for
strong future growth.
The companies, which announced
their interest in March, said investors
would retain their rights to a 50 cents
dividend for 2010 on top of the €24 a
share offer – adding an estimated
€65m to the deal’s value.
ING holds nine per cent of Tognum
shares, and said this week it would be
“extremely disappointed” if the firm’s
management recommended that
investors accept the offer.
The prospective buyers have set a
threshold for the bid to succeed of at
Europe set to EasyJet enjoys CITYVIEWS: WOULD YOU BUY A HYBRID AS YOUR NEXT CAR?
grant Airbus a boost to its
Save or Borrow peer to peer at RateSetter.com
defence bailout traffic in March
▲
AVIATION
SEVEN European nations are set to
formalise their backing for the prob-
lematic Airbus A400M airlifter with a
€3.5bn (£3.07bn) rescue deal today.
The bailout comes after months of
political wrangling to prevent the col-
lapse of Europe’s largest single
defence project, originally agreed in
March 2010, following costly overruns
and delays with redundancies of
10,000 jobs.
The UK opposed the plans due to
the high cost, at a time when domes-
tic defence spending is being cut.
CITYA.M. 7 APRIL 2011
Car sales fall in
March for ninth
month in a row
▲
AUTOMOTIVE
CAR sales in the UK are still below pre-
recession levels and have been declin-
ing for nine consecutive months,
according to a report by the Society of
Motor Manufacturers and Traders
(SMMT).
least 50 per cent of Tognum’s share A total of 366,101 new 11-plate cars
capital plus one share. That includes were registered in March, a 7.9 per cent
Daimler’s 28.4 per cent stake in slump in like-for-like sales on the same
Tognum. period last year.
The companies said their offer rep- TOP SELLING CARS IN 2011 Last year’s sales, however, were bol-
resents a 30 per cent premium to stered by the government scrappage
Tognum’s share price before the 1 Ford Fiesta 27,924 scheme, meaning a better than expect-
takeover interest was made public. ed result was registered, with actual
Tognum shares closed 0.5 per cent
2 Ford Focus 24,435 sales up 5.9 per cent if the incentive
up at €25.70 yesterday - more than €1 3 Vauxhall Corsa 20,536 volumes are excluded, the SMMT said.
above the offer price. On a greener note, average new car
Rolls Royce also announced the sale 4 Vauxhall Astra 17,250 emissions for the first quarter of 2011
of engines for nine Boeing 787 were at a record low of 140.3gms per
Dreamliner planes yesterday, continu-
5 VW Golf 17,101 kilometre, down 3.4 per cent com-
ing its order spree for the Trent 1000 6 VW Polo 12,214 pared to last year.
engine after seeing off competition Alternative fuel car sales were up
from General Electric. Rolls has sold 7 Vauxhall Insignia 11,904 27.3 per cent, marking a widespread
the engines to low-cost carrier change in consumer attitude as the US
Norwegian, plus a long-term service
8 Peugeot 207 10,335 reports a 37 per cent increase in hybrid
contract worth $450m (£275.9m). 9 BMW 3 Series 10,141 and electric car sales in the first quar-
The firm has won engine orders for ter of 2011, according to research firm
six of the last seven Dreamliner deals. 10 Nissan Qashqai 9,253 Edmunds.com.
Interviews by Phoebe Torrance and Eugenio Montesano
IN ASSOCIATION WITH
www.RateSetter.com Customer Phoneline: 08442490115
SIMON FOSS | ALAN GAUDENCIO | NICK SMITH |
RSA INSURANCE WELLS FARGO WILLIS
▲
AVIATION
BUDGET airline easyJet yesterday
reported a better-than-expected 12 “I wouldn’t buy a hybrid as I live “No, as it doesn’t suit my lifestyle. “Yes. They are environmentally
per cent jump in monthly passenger in central London so it’s easier for I need a big car and there isn’t friendly and with petrol prices
figures compared to last year.
The Luton-based budget carrier me to use local enough choice soaring, they
flew 4.4m people in March, up from transport. The in the market. are also cheap-
3.9m a year earlier.
The airline carried 51.2m passen- benefits are The benefits are er in the long
gers in the 12 months ending March interesting, but wonderful, but run, especially
2011, up 8.5 per cent from 47.2m a
year earlier, with an improved annual
I couldn’t take they are still 50 with the con-
load factor – a measure of how well advantage of per cent more gestion charge
an airline fills its planes – of 87.1 per them anyway.” expensive.” benefits.”
cent from 86.4 per cent, it said.
CITYA.M. 7 APRIL 2011 News 15

Misys’ banking ventures

pay off as revenues rise
£85m, taking revenue growth into markets (TCM) orders rose 50 per
▲

TECHNOLOGY
BY HARRY BANKS
BRITISH software company Misys
posted a seven per cent rise in third-
quarter revenue, helped by new prod-
ucts serving banks and financial
markets.
Misys, which sold most of its stake
in its Allscripts-Misys joint venture
last year, said yesterday revenue in
the three months to February was
positive territory in its 2010-11 year.
“We have made a big investment
over the last several years to get new
products into the market and those
investments are really paying off,”
chief executive Mike Lawrie said.
Misys shares, which have outper-
formed European peers by 32 per cent
in the past 12 months, closed 2.8 per
cent higher at 335.1p.
Misys said treasury and capital
cent, while banking orders were up
17 per cent. It became TCM sector
leader, with about a third of the mar-
ket, when it bought Dublin-based
Sophis for £375m in November.
Misys, which competes with Swiss
company Temenos in banking, said it
won six new customers for its
Bankfusion retail banking platform,
taking the total to 19 in the year to
date. Misys boss Mike Lawrie said the company’s investments were paying off

Robert Walters’ profits

up as it reopens in Japan
“We continue to pursue our strategy
▲

RECRUITMENT
BY HARRY BANKS of international expansion and diversi-
fication, having chosen Brazil, China
RECRUITMENT firm Robert Walters and Germany as new markets provid-
yesterday said its first-quarter net fees ing strong opportunities for growth,”
rose 23 per cent, helped by a strong per- said chief executive Robert Walters,
formance in Europe and Asia Pacific, who established the firm in 1985.
and the company said its Japanese busi-
ness was now operational. ANALYSIS l Robert Walters
However, the company said it may 350 p
320.00 people
be some time before the market fully
recovers in earthquake-hit Japan.
340
6 Apr fo rc e d m o re than 100,000 HHG
Robert Walters, which specialises in 330
Shocking viole
nce ha s
D 0 D Q \ D UH LQGHVSHUDWHQ
UL
placing people in accountancy, engi- KERXULQJ/LEH s now.
neering and IT, posted net fee income,
320
WRÀHHWRQHLJ H elp save live
or gross profit, of £40.1m, up from 310
D Q G Z D WH U
£32.6m a year earlier. RIIRRG
0 1999
300

Call. 0300 20
Gross profit from the Asia-Pacific
region rose 29 per cent, while Europe 290

fa m .o rg .uk/ivorycoast
x
10 Jan 8 Feb 9 Mar 29 Mar

Click. www.o
posted a 32 per cent increase.

’ to 70 066 to give £5*

E
Kids
Kids a
and
nd S
Seniors
eniors ffor
or a Q
Quid!
uid! Text. ‘DONAT

Wednesday 27 April
(Kick-Off 8pm)

On General Sale
Book online at
fulhamfc.com
or call 0843 208 1234
(option 1) now

£1 Junior and Senior tickets are available until 5pm, Tuesday 19th April.
Tickets are subject to availability, terms and conditions apply.
 16 Economics
Shock drop in
UK’s industry
knocks pound
UK ECONOMY
▲
BY JULIAN HARRIS
STERLING was hit yesterday by a
report showing a shock fall in British
industrial production.
Industrial production fell by 1.2 per
cent in February compared to January
– the largest fall since August 2009,
the Office for National Statistics (ONS)
said.
The pound plummeted by over half a
cent against the dollar in morning trad-
ing, as the chances of an earlier interest
rate rise appeared to recede, yet eventu-
ally recovered to gain on the day.
However, the surprise data, which
appears out of kilter with recent busi-
ness surveys, was questioned by some
economists.
The data showed the manufactur-
ing sector stagnating in February, con-
trasting with a record high for the
month according to a recent purchas-
ing managers’ index (PMI).
“We are puzzled by the weakness of
the data relative to the PMI survey,
and believe that underlying growth
momentum is stronger than these
Kingston
University
School
London
REAL POTENTIAL.
OPEN DAY@KINGSTON
Invest in and shape your future with a postgraduate degree at Kingston University,
conveniently nestled in a green corner of London. Come to our Open Day to
find out more about our wide range of courses in BUSINESS and LAW
including Pg Dip Law, LLM, General Management, Finance, Marketing,
Human Resource Management, and Business Information Technology,
plus our renowned MBA programme.
Postgraduate Open Day
Saturday 9th April 2011 from 10.30am until 1.30pm,
Frank Lampl Building, Kingston Hill campus, KT2 7LB
For more details and to book your place visit
business.kingston.ac.uk/events or law.kingston.ac.uk/events
manufacturing data indicate,” said
Chris Williamson of Markit, which
compiles the PMI data.
The surprise drop in the wider
industrial figure was largely attrib-
uted to a 9.5 per cent fall in mining
and quarrying, due to reduced oil and
gas extraction. While a decline at this
time of year is a regular seasonal
effect, the drop was greater than usu-
ally witnessed, the ONS said.
“Yet that component of industrial
production is typically volatile from
month to month. February’s drop in
industrial production is not quite as
bad as it first looks,” said Samuel
Tombs of Capital Economics.
A relatively mild February was anoth-
er one-off factor behind the figures, as
gas supply output fell by 9.2 per cent,
and the energy sector as a whole was
down 2.1 per cent month-on-month.
According to the underlying trend,
production was up 0.8 per cent in the
three months to February, compared
to the previous three months.
Manufacturing on the quarter-by-
quarter measure was up 1.1 per cent,
according to the figures.
CITYA.M. 7 APRIL 2011
CITY A.M. | SHADOW MPC EDGES CLOSER TO A RISE IN INTEREST RATES
ALLISTER HEATH | CITY A.M.
“With consumer price index inflation of 4.4 per cent and heading upwards, it’s time to end over two years
of ‘emergency’ levels of interest rates. The Bank rate should be edged up by 0.25 per cent this month.”
SIMON WARD | HENDERSON
“Half-point rise. The economy has rebounded solidly in early 2011 while wage settlements are picking up and
sterling has weakened. The February Inflation Report implied that an increase was necessary so why delay?”
GEORGE BUCKLEY | DEUTSCHE BANK
“The combination of economic recovery and persistent inflation questions the need for ‘emergency’ interest
rates. A small rise would retain an accommodative stance while at the same time begin normalisation.”
GRAEME LEACH | IOD
“Raising rates now will have little or no impact on 2011 inflation, but a considerable impact on GDP growth.
Despite inflation, there is little or no evidence of a wage-price spiral, and broad money growth is anaemic.”
VICKY REDWOOD | CAPITAL ECONOMICS
“I still don’t think a rate rise is needed for the UK. The rise in oil prices will push inflation up further in the
near-term. But the extra squeeze on real incomes will make it more likely inflation drops further ahead.”
TREVOR WILLIAMS | LLOYDS TSB
“Given global uncertainty and impending fiscal tightening, I think rates should be left at 0.5 per cent. Once it is
clear what is happening to demand, then I believe that rates should go up – probably, later on this year.”
HOWARD ARCHER | IHS GLOBAL INSIGHT
“Hold rates. Consumer spending is a concern, fiscal tightening really kicks in from April and high oil prices
are a threat to growth. With pay muted, we see little risk of a damaging wage-price spiral developing.”
JAMIE DANNHAUSER | LOMBARD STREET RESEARCH
“A sustained recovery is not assured here. Premature withdrawal of monetary stimulus is a risk; but the infla-
tion outlook has deteriorated further recently. A rate hike is imminent but not warranted at this meeting.”
VICKY PRYCE | FTI CONSULTING
“Hold rates. Inflation expectations need managing but raising rates will have little effect. Real wages are
falling, the employment path is uncertain and confidence weak. Manufacturing in February was at standstill.”
House prices continue to
drop in the first-quarter
▲
HOUSING and individual financial circum-
stances are likely to constrain hous-
THE cost of housing fell by 0.6 per ing demand, resulting in some
cent during the first-quarter of 2011, modest downward pressure on
marking the property market’s prices.”
fourth consecutive quarterly decrease Recent increases in employment,
in prices, it was yesterday revealed. particularly in full-time jobs, were
Research by the Halifax House thought to be the cause of a marginal
Price Index showed an average reduc- March price rise of 0.1 per cent on fig-
tion of 2.9 per cent for the first three ures for the end of 2010, leaving an
months of 2011 in comparison to the average house costing £162,912 in the
same period last year. This marks the UK.
biggest annual decline in the market Halifax also warned that the coali-
since October 2009. tion government’s FirstBuy scheme
“Our forecast remains for a two per would have a limited future impact
cent decrease in house prices in 2011 on the housing market since the
as a whole,” commented Martin Ellis, shared equity plan will assist only the
housing economist, “Uncertainty equivalent of five per cent of 2010’s
over the general economic outlook first-time buyers.
NEWS | IN BRIEF
Sluggish growth weighs on the UK to fully insulate the country from rising
The UK has averaged just 0.1 per cent oil prices, it was revealed yesterday.
growth per quarter in the last six Swiss consumer prices rose 0.6 per cent
months, the National Institute of compared with February, doubling the
Economic and Social Research (NIESR) annual inflation rate in March to one per
said yesterday. The Westminster think- cent from 0.5 per cent in February.
tank has estimated first-quarter growth
of 0.7 per cent for the first three months Surge in German factory orders
of the year, reversing the reported 0.5 German industrial orders soared in
per cent contraction in the economy at February, driven by big-ticket purchases
the end of 2010. “This strong figure for backed by strong domestic demand.
the first-quarter of this year is flattered
Orders were up 2.4 per cent, compared
by the economic impact of the adverse to January, with investment goods lead-
weather in the final quarter of last year,”
ing the charge – well above the fore-
NIESR said. casts of economists. “The industry-led
recovery is alive and kicking,” said ING’s
Swiss consumer inflation doubles Carsten Brzeski “The strong increase
Swiss inflation rose more than expected was driven by both domestic and foreign
in March as the strong Swiss franc failed demand.”
CITYA.M. 7 APRIL 2011 News 17

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

SWIP
William Low has been appointed as head of
global equities at Scottish Widows Investment
Partnership’s (SWIP) International Equities
team. Low, who joins from a 15-year tenure as
director and portfolio manager at Blackrock, will
be based in SWIP’s Edinburgh office and will be
responsible for driving the firm’s global equity
strategy across a range of portfolios. He brings
more than 24 years of global equity asset man-
agement experience to the position.
Threadneedle Latin America, where he will be respon-
The international asset manager has sible for a £1.2bn fund. Isidori joins
hired Daniel Isidori as fund manager for Threadneedle’s Asia and Global
Emerging Markets equities team from
Baring Asset Management.
Ernst & Young
The investment management company
has appointed Howard Mannion and
Valerie Nott to its UK Asset
Management division, as partner and
director respectively.
Barclays Wealth
The wealth manager has appointed
Peter Arkell and Fred Lane to its High
Net Worth business within the UK &
Ireland Private Bank. Arkell has been
appointed as a director from Credit
Suisse, where he sourced and managed
clients for four years. Lane, also from
Credit Suisse, has been appointed as a
vice president.
Schroder Property
Nick Scott has been appointed as head
of UK retail property at Schroder
Property. Scott joins from NewRiver
Retail and will oversee retail transac-
tions and asset management for the
Schroder Exempt Property Unit Trust.
Sacker & Partners
Ian Pittaway has been re-elected as
senior partner at the pensions law firm,
marking his third consecutive term in
the role. Pittaway was recently named
the best pensions lawyer in London by
the Legal 500.
Alexander Forbes
Alexander Forbes Financial Services
has promoted Gemma Goodman to
head of the Annuity Bureau and DC
operations.
Renaissance Capital
The emerging markets investment bank
has appointed Igor Bilous as head of
investment banking and finance,
Ukraine and Central and Eastern
Europe, as well as the firm’s co-chief
executive in the region. Bilous joins
from UBS Investment Bank.

To appear in CITYMOVES please email your career

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com morganmckinley.com

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

ANALYSIS l Burberry ANALYSIS l International airlines group ANALYSIS l Barclays 294.80

1,210.00 6 Apr
1,250 p 6 Apr 320 p 320 p

280
1,150 223.80 280
6 Apr
240
1,050 240
200
10 Jan 28 Jan 17 Feb 9 Mar 29 Mar 10 Jan 28 Jan 17 Feb 9 Mar 29 Mar 2011 24 Jan 7 Feb 21 Feb 7 Mar 21 Mar 4 Apr

BURBERRY INTERNATIONAL AIRLINES GROUP BARCLAYS

Nomura rates the luxury retailer “neutral” with a target price of £12. The
broker expects the firm’s half-year trading update on 19 April to show a 14
per cent rise in like-for-like retail sales, which will make up 70 per cent of
overall sales. While Nomura expects another vintage year from Burberry, it
has kept a neutral rating because it belives that strong growth across the
world is already assumed in the share price.
Credit Suisse rates the British Airways and Iberia parent company “over-
weight” with a target price of 340p. The broker was disappointed by
Iberia’s traffic growth, up 2.7 per cent, but thinks the next two months
look promising as capacity growth progresses. Credit Suisse also points out
that BA’s 11.9 per cent year-on-year traffic growth was bolstered by poor
figures caused by strike action last March.
Canaccord Genuity has upgraded the bank to “buy” with a target price of
330p. The broker thinks the Independent Commission on Banking report
due next Monday will prove a positive catalyst for Barclays shares, as regu-
latory uncertainty is reduced. The broker also thinks the bank can cope
with any enforced separation or ringfencing of retail banking operations,
despite an estimated £1bn gross hit, by offloading low-return assets.

FTSE nears seven-year high Demand for tech

as M&S boosts retail sector stocks lifts Wall St
The yield on 12-month T-bills holding in Tesco on account of its Tuesday the one-time technology bell-

THELONDON spiked to 5.902 per cent from 4.311

per cent three weeks ago, and on six-
dominant position in the retail
space and as it is seen as longer-term THENEW YORK wether and Wall Street darling has
lost its way and will need to restore its

REPORT
month bills to 5.117 per cent from
2.984 per cent, highlighting the
financial pressure ahead of big
redemptions this month and in
REPORT
undervalued. “Whilst a potential credibility. Hewlett-Packard shares
price war is not beneficial to the sec- rose 2.2 per cent to $41.18. Microsoft
tor in general, long term the last rose 1.4 per cent to $26.15.
man standing is said to clean up, so The Dow Jones industrial average

B
ANKS helped drive Britain’s June. any issues which Tesco might have, rose 32.85 points, or 0.27 per cent, to

top shares to a near seven-
week high yesterday following
a Portuguese debt auction,
while Marks & Spencer rose on bet-
ter-than-expected sales, lifting senti-
ment in retailers.
The FTSE 100 ended up 34.07
points, or 0.6 per cent, at 6,041.13,
its highest closing level since 18
February.
Lex van Dam, hedge fund manag-
er at Hampstead Capital, is bullish
on the FTSE 100’s prospects in 2011,
seeing “an enormous switch out of
bonds into equities”.
“The big issue at the moment is
the worry about inflation and the
search for yield, and there’s a lot of
people who own lots and lots of
bonds – they are starting to get real-
ly worried about it because it's just
not a great asset class to hold when
there’s inflation coming in.”
Banks were in favour, notching up
a 4.1 per cent rise this month in the
wake of March’s 6.2 per cent
decline, as the sale in Portugal of 6-
and 12-month treasury bills brought
some temporary relief, with mar-
kets closing before the country’s
finance minister admitted it would
need an EU bailout.
Lloyds Banking Group led the sec-
tor higher, firming 3.9 per cent,
with traders citing expectations
that it will avoid a call for a break-up
of its business by the Independent
Commission on Banking.
Marks & Spencer was the stand-
out blue-chip riser, up six per cent,
after beating sales forecasts and
winning market share with innova-
tive products like stormproof suits,
new food ranges and staples like lin-
gerie.
Sector peers, which endured a tor-
rid time last week on downbeat
news from companies including
Dixons, Mothercare and John Lewis,
found support, with Next the third
biggest riser, ahead 3.2 per cent.
Jamie Seaton, manager of the
£58.7m SVG UK Focus Fund, run by
SVG Investment Managers, is bear-
ish on the retailers.
“We think there’s limited pricing
power,” he said. “The consumer is
going through a process of delever-
aging, and it’s very very hard to see
how these (firms), unless in excep-
tional circumstances, can grow
their top-line in this type of environ-
ment.”
He does however have a small
Sainsbury/Morrison/whoever are
going to feel it significantly harder
and Tesco we believe is the ultimate
beneficiary.”
Elsewhere, FTSE 100 tour operator
TUI Travel and midcap peer Thomas
Cook advanced 2.6 per cent and 3.2
per cent respectively after Citigroup
upgraded its ratings on the pair on
valuation grounds.
Cairn Energy topped the FTSE 100
fallers’ list, off 2.8 per cent, as the
Indian cabinet further delayed a
decision on its sale of a majority
stake in Cairn India to Vedanta
Resources. Vedanta reversed earlier
gains, dropping 0.8 per cent.
Pearson and Wolseley both fell
after going ex-dividend.
ANALYSIS l FTSE
6,100 6,041.13
6 Apr
6,000
5,900
5,800
5,700
5,600
5,500
10 Jan 28 Jan 17 Feb 9 Mar
T
HE S&P 500 index inched
upward on relatively light vol-
ume yesterday, with investors
adding to winning positions in
technology stocks, but avoiding large
bets ahead of corporate earnings due
next week.
After days of struggling, the broad-
er market index broke above the
closely watched 1,333 level. The next
closely watched technical point is
1,344, the high dating to June 2008.
“It would be tough (to break above
1,344). We might go near that before
the earnings since I think earnings
will be mostly ‘sell on the news’,” said
James Dailey, portfolio manager at
TEAM Asset Strategy Fund in
Harrisburg, Pennsylvania.
It has now been nine trading days
since the S&P 500 rose or fell more
than 0.7 per cent, a sign of relative
calm amid few trading catalysts.
Volume was 7.31bn on the New York
Stock Exchange, NYSE Amex and
Nasdaq, compared with last year’s
estimated daily average of 8.47bn.
Markets derived some comfort
from Tuesday’s comments from Cisco
chief executive John Chambers. Cisco
Systems shares rose 4.9 per cent to
29 Mar $18.07 after Chambers admitted on
close at 12,426.75. The Standard &
Poor’s 500 Index gained 2.91 points,
or 0.22 per cent, to 1,335.54. The
Nasdaq Composite Index advanced
8.63 points, or 0.31 per cent, to
2,799.82.
Stocks also got a lift from the presi-
dent of the Atlanta Federal Reserve
Bank, Dennis Lockhart, who said the
Fed will complete its $600bn bond-
buying plan as scheduled at the end
of June. He said he does not see any
reason to end the programme early.
The percentage of US stock market
bulls rose to the highest level in near-
ly four months as equities continue to
recover from their recent fall, accord-
ing to a weekly survey of advisers by
Investors Intelligence.
Broadcom shares gained 3.9 per
cent to $39.95 after Oppenheimer
raised its rating on the chipmaker’s
stock and set a price target of $55.
In earnings news, global agribusi-
ness Monsanto said net income
jumped about 15 per cent in the sec-
ond-quarter on strong sales of corn
seed for spring planting and
improved profit margins. But its stock
fell 5.7 per cent to $69.16 after the
world’s largest seed company did not
raise its full-year outlook.
 Business Features | Careers
18
Forget the made-for-TV
nonsense, the race is on
to find real apprentices
The next generation grad scheme is here: a new foundation
has set out to train entrepreneurs, writes Donata Huggins
D
AVID Willetts, the minister for
universities and higher educa-
tion, courted controversy
when he suggested that gradu-
ates should consider starting a busi-
ness if they were struggling to find
work. But some of the City’s finest
took this to heart and cooked up an
idea to boost Britain’s entrepreneur-
ial spirit and give the UK’s best and
brightest youngsters entrepreneurial
training.
The hope is that the scheme – run
by the New Entrepreneurs
Foundation, a new registered charity
– will churn out the next Sir Richard
Branson, Luke Johnson or Charles
Dunstone.
CITYA.M. 7 APRIL 2011
The programme will place 25
young people with a chief executive
(CEO) of a fast-growing small or medi-
um-sized enterprise (SME) for a year
(details in the box below). They will be
mentored by that CEO, salaried and
given additional training from
Deloitte, London Business School and
Cambridge’s Judge Business School in
@ business finance, strategy and man-
agement alongside their internship.
The programme came together
because Oliver Pawle, chairman of
of Dee Stirling coaching persuaded
dozens of corporations to support the
scheme. Deloitte, 3i and McKinsey are
among the supporters who have
>>>
Korn Ferry Whitehead Mann, Sir pledged to fund the scheme.
Nigel Rudd, chairman of Invensys and Sir Nigel Rudd says that now is the
@
BAA, Lord Davies of Abersoch, the for- right time to launch the scheme:
mer trade minister and Standard “Entrepreneurism is more important
Chartered chairman and Dee Stirling now than ever. Interestingly, more
www.cityam.com
CITYA.M. 7 APRIL 2011
new ventures tend to be started in a
downturn than in a boom, and we
want to ensure that aspiring business
leaders are equipped with the skills
and contacts they need to make such
ventures successful.”
And it seems he is thinking what
David Cameron is thinking. Last week
Cameron threw his weight behind
the StartUp Britain campaign to
encourage and support British entre-
preneurs.
The programme on offer hopes
that its “on the job” training will pro-
vide the kind of knowledge, skills and
contacts that the StartUp Britain cam-
FACTS | THE APPRENTICESHIPS
Some of the companies already
committed to taking an intern:
l LiveEx, specialist internet wine
business
l London Advertising, a fast-growing
advertising agency
l Better Capital, specialist private
equity company
l 2 Sisters Food Group, fast-growing
specialist food group
l White Bear Yard, early stage tech-
nology investor
l Pi Capital, an investor network
l Groupon, online discount payments
system
l YouGov, research and polling com-
pany
l PKR, online gambling
lTravelEx, a wholesale foreign
exchange company
l LBR International, digital market-
ing company
Programme: The programme is 12
months long, pays £20K in London,
£14K elsewhere, and requires the
19
Right: Oliver Pawle
(right), one of the
New Entrepreneurs
Foundation’s founders
and Edward East
(left) a programme
participant
Far left: Alan Sugar.
The new programme
won’t be much like
his, Top left: Mervyn
Davies, Bottom left:
Nigel Rudd
Inn today’s
today
today’’s market you
yo
ou need to understand
he key principles of
the o structured finance:
paign advocates. Lord Davies says he
thinks it will give the successful can-
didates a headstart: “Often young
people may have the incentive to start
their own venture but not have the
knowledge or tools to realise it.”
Pawle says they want to appeal to
City workers: “Smart young people
Securitisation.
Securit isation
isation.
who have found they are not enjoying
their jobs and would prefer to be out
there running their own business
A
Analysi
ly is.
is
Analysis.
would be ideal applicants.”
Young people reading this should
consider taking up Willetts on his
Valuatio
on
on.
Valuation.
challenge. After all, the opportunity
has arisen.
S&P V Valuation R Strategies Principles of Structured Finance
aaluation and Risk
is designed to help you better understand, surveil and value structured finance
assets. Can you afford to miss out?
candidate’s full-time commitment.
Successful candidates will be placed
with the founder or CEO of a small or
medium-sized enterprise as their 11 - 13 May
May,, 2011
assistant. Deloitte, London Business Standard & Poor’
Poor’s,
s, 20 Canada Square, Canary Wharf, London, E14 5LH
School and Judge Business School
will provide additional training Full course £2,200 ++VAT
VAT
throughout the year in areas such as Register: www
www.standardandpoors.com/london_training
.standardandpoors.com/london_training
business finance, strategy and man-
agement.
Selection: The programme is open For information on Standard & Poor’
Poor’ss Risk Driven Investment Analysis Education
to final year students, recent gradu- Programme please e-mail emea-marketing@standardandpoors.com
ates and non-graduates who can
demonstrate a keen interest in Please note: the course curriculum
becoming a successful entrepreneur. does not cover the ratings criteria,
The judges are looking for 25 candi- methodologies, or applications of
dates with drive and ambition. Poor’ss Ratings Services.
Standard & Poor’
Technology skills and experience of
starting a business at school or uni-
versity will be advantageous.
Further details: To apply visit Standard & Poor’s broker-dealers,
Poor’s and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers,
investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including
www.newentrepreneursfoundation.c address.
organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address.
om. The closing date is 12pm on 15 Copyright © 2011 by Standard & Poor’s,
ST
TANDARD
A
STANDARD
Poor’s, a division of The McGraw-Hill Companies, Inc. All rights reserved.
& POOR’S and S&P are registe Poor’s Financial Services LLC.
registered trademarks of Standard & Poor’s
April 2011
 20 CITYA.M. 7 APRIL 2011

Wealth Management Isas |

Sun shines for the

start of new tax year
Moving quickly to fill up your Isa can ciently, it can be beneficial to take
full advantage of tax allowances early
be a wise move, writes Craig Drake in the tax year, ideally as soon as it
begins. Investors who use their Isa
allowance at the start of the tax year

T
HE excitement of the end of
tax year rush to fill up your tax
free Individual Savings
Account (Isa) may be over, but
don’t fret. Yesterday’s sunshine and
birdsong heralded the start of a new
tax year and the chance to start
investing in a new Isa.
This tax-year also sees a rise in the
Isa allowance from £10,200 to
£10,680. The investment will be free
from capital gains tax on any growth
and from income tax on dividends or
interest. Early-birds who take advan-
tage of their allowance could benefit
to the tune of £748.
According to research from the
Fair Investment Company, if you
were to invest the full allowance of
£10,680 into a stocks and shares Isa
right at the beginning of the tax year,
based on growth of 7 per cent, by the
end of it you could have £11,428.
“This figure just shows how much
better off you can be by acting fast,”
explains Julie Smith, savings and
investment analyst at Fair
Investment Company. “Every March
and April there is a mad rush on Isas,
but these people who do leave it
until the last minute could be miss-
ing out on hundreds of pounds in
interest. While those who invest at
the start of the tax year benefit from
a full 12 months worth of interest on
their investment, and as you can see,
that can make a really big differ-
ence.”
According to Barclays
Stockbrokers, a third of their Isa
investors will invest a lump sum in
their Isa account at the start of the
new tax year.
Catherine Penney, vice president
of Barclays Stockbrokers, comments:
“When it comes to investing tax effi-
have the opportunity to shelter an
extra year’s returns from tax, com-
pared to someone who chooses to
invest on the last day of the tax year”.
Investors also appear to be shying
away from the returns currently
available from cash and so are con-
tinuing to invest in equities.
STOCKS AND SHARES OVER CASH
According to Catherine Penney,
“with interest rates remaining low, This week’s sunshine heralds a new Isa for all Picture: GETTY
and inflation above 4 per cent, many
of our clients prefer to hold equity exchange-traded commodities (ETCs) still pays to start depositing money
investments in their Isa to access the and structured products. Individuals early. Based on 7 per cent growth,
potentially better returns available can choose from a wide range of investing the full stocks and shares
and are prepared to accept the risk in products to build a bespoke portfolio allowance but spread out evenly over
doing so.” that suits their risk appetite and 12 monthly payments would result
Furthermore, the benefit of invest- investment objectives. in a return of £401.
ment Isa is the breadth of choice that However much you are able to
they offer, not just stocks and shares INCREMENTAL BENEFITS invest, the early-bird catches the fat-
but also funds, gilts and bonds, Even if you are not in a position to test worm, and the longer you leave
exchange-traded funds (ETFs), invest the full £10,680 in one go, it it the less you are likely to benefit.

The UK’s ‘Best Buy’ James

Customer
Account Manager e-ISA

instant access Bristol

online cash ISA

Between 2 February and 3 April our e-ISA has made an
amazing 22 Best Buy appearances in National newspapers.
But being a Best Buy product means there’s more to our
e-ISA than a consistently great rate.
You get instant access to your money, too. And because it’s
a cash ISA, all the interest you earn is tax-free.
From 6 April your new cash ISA allowance is £5,340 and the
sooner you start saving the more tax-free interest you’ll earn.
What’s more, when you transfer a cash ISA to us you will start
earning interest as soon as we receive your application1.
This is Promise number 4 of our seven Savings Promises.
We can offer accounts like this to our savers because we
don’t have shareholders to worry about.

With no shareholders our only focus is you

VISIT nationwide.co.uk

1
Provided that your funds are free to move and not subject to any notice period.
Our Savings Promises will form part of your savings account terms and conditions. These Savings Promises DO NOT apply to accounts opened with Cheshire Building Society, Derbyshire Building Society and Dunfermline Building Society. Rate applies to accounts opened from
6 April 2011. Interest is paid annually. Rate correct at 06/04/2011. Please note there may be different bonuses paid on e-ISA depending on when the account was opened. The rate advertised is a limited offer and may be withdrawn without notice. AER stands for Annual
Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Tax-free is the contractual rate of interest payable where interest is exempt from income tax. The tax information provided is based on our current
understanding of current law and HM Revenue & Customs practice which can change. Applications are required. Standard terms and conditions available on request. Nationwide Building Society, Head Office, Nationwide House, Pipers Way, Swindon, Wiltshire SN38 1NW.
CITYA.M. 7 APRIL 2011 21

Saving a little at a

Junior Isas to
time can result in a
large nest egg

Picture: GETTY

match adult
savings funds
The saving scheme for under-18s will
fill child trust fund gap, says Craig Drake
Do you have an

I
N LAST month’s budget, the providers to set up viable business
ISA portfolio that’s

ly
chancellor announced the models. Junior Isa is different in that

e
arrival of the Junior Isa scheme, the annual contribution is higher

which will become available in
November of this year. The Junior Isa
is a replacement for the Child Trust
Fund (CTF), but will do away with the
government contribution of the pre-
vious scheme (see the table below).
The Junior Isa will mimic its grown
up equivalent with no capital gains
tax, no income tax on savings and no
further tax on dividend income.
Withdrawals from Junior Isas will not
be permitted until the child reaches
18. Eligible children over the age of 16
u
uniq tailored
than the CTF and hopes to capitalise
on the phenomenal success of the
Isa.”
Tom Stevenson, investment direc-
tor at Fidelity International, says: “We
welcome the chancellor’s announce-
ment on Junior Isas and believe this is
a really positive move which endorses
the idea of saving from as early an age
as possible. Young people often have
the greatest opportunity to benefit
from the long-term performance of
stock markets and the Junior Isa will

to you?
will also be able to open Junior Isas allow them to do so in a tax-efficient
for themselves. way, while also learning about the
6m children will be eligible from benefits of saving.”
the outset, followed by around Figures from the 2011 Barclays
800,000 per year. Based on the equity and gilt study indicate that for
amount of parental contributions longer-term savings, a stocks and
made to the Child Trust Fund shares Junior ISA should produce a
scheme, it is expected that it will see much better return than cash. There
an uptake in the name of some 1.2m is a 99 per cent probability that stock
children. markets will outperform cash over 18
Danny Cox, head of advice for years.
raders do
Selft
Hargreaves Lansdown, is optimistic As the standard disclaimer goes,
about the new scheme. “Junior Isa “past performance is no guarantee of
ta
has the potential to be the most suc- future results.” However, should don’t wan
cessful children’s savings scheme of Junior Isas provide the same returns s to c k m arket, but e le c t Shares
in v e st in the n o p e n a self-s
all time. The Child Trust Fund was as their adult stablemate, then the Wan t to
all’ portfo
lio?  e select the
well intentioned, however, the regula- scheme should more than fill the gap s iz e fi ts u r p o rt folio and .
‘on e . Tailor y o est return
tions made it difficult for investment left by CTFs.
A w it h Selftrade in k w il l y ield the b
IS ou th
nts that y s and gilts
COMPARISON | CHILD TRUST FUND VS JUNIOR ISA investme TFs, bond
fu n d s , E
s,
from share vested
Child Trust Fund (CTF) Junior Isa • Choose oney is in
a n d h o w your m
ere
AIMS when, wh
• Decide scription
a c k y o u r ISA sub
in b
u could w
Encourage children and their families to save and To provide families with a simple, transparent,
provide a nest egg for every child at age 18 accessible and competitive product to save for • Plus yo 8 0 (t erms app
ly)
to £ 1 0 ,6 nger-term
children who do not have a CTF up e s ig ned for lo
d e
wrap p e r well as ris
A is a ta x-efficient tm e n ts c an fall as le s m ay
Financial education – to help children and their To create the conditions for families to save
An IS
e v a lu e of inves in v e s te d. Tax ru
. an yo u trad e
investing ck less th nces. Self
families to engage in investments and savings more than they otherwise would
d y o u m ay get ba d iv id u a l circumsta
an d on in
nd depen advice.
change a id e in vestment
ELIGIBILITY o t p ro v
does n

ISA now
Children born between 1 September 2002 Junior Isas will be open equally to all UK
and 2 January 2011, resident in the UK and resident children, under 18, who don’t currently
O pen an
not subject to immigration restriction hold CTFs
lftraders.
Join the se o.uk/isa3
.c
.selftrade
CONTRIBUTIONS
Visit w w w
0
Government contribution of between £50 No government contribution
5 0700 72
and £250 depending upon circumstances.
Initially a further payment of £250 was to be
or call 084
made on the child’s seventh birthday. Children
on low incomes would get a further £250.
All age seven payments have now stopped and
won’t be paid for children who turn seven after
31 July 2010

Additional payments of initially up to £1,200 a Payment of up to £3,000 a year until age 18 Lines are open Monday to Friday 7.45am – 7pm. Calls may be recorded. Selftrade® is a trading name of Talos Securities Limited and
year until age 18 can be made by relatives, now can be made by relatives registered trade mark of Boursorama. Talos Securities Limited is incorporated in England and Wales (Registration No. 4196325,
Registered Address: Boatman’s House, 2 Selsdon Way, London E14 9LA), is authorised and regulated by the Financial Services
increased to £3,000 Authority (FSA Register No. 208271) and is a member of the London Stock Exchange and PLUS Markets plc.

Source: Hargreaves Landsdown

22 Wealth Management | Funds
Profit from the energy
of Brazil’s private sector
The Allianz RCM Brazil fund is worth a closer look for investors looking to cash
in on buoyant growth in Latin America’s powerhouse, writes Philip Salter
A low rate 2 Year Tracker
After a new mortgage? We could have the
perfect arrangement for you. Our 2 Year
Tracker Repayment Mortgage gives you
a great mortgage rate with the flexibility
to overpay as often as you choose.
So, make tracks, call us today.
2 Year Tracker
Repayment Mortgage
Tracks the Bank of England base rate plus
1.49% for 2 years, currently
1.99%
Changing to our Standard Variable Rate
for the rest of the term, currently
3.69%
The overall cost for comparison is
3.6% APR
Maximum loan to value (LTV) is 65%.
Minimum mortgage is £10,000.
Arrangement fee is £999.
Other fees and charges may apply.
You must hold or open a 1st Account
to qualify. This offer may be withdrawn
at any time without notice.
A range of mortgages, nicely arranged
0800 151 3009
firstdirect.com
Your home may be repossessed if you do not keep up repayments on your mortgage.
AC20517
first direct credit facilities are subject to status. Rates correct as at 7 March 2011. Because we want to make sure
we’re doing a good job, we may monitor and/or record our calls. © HSBC Bank plc 2011. All Rights Reserved. first direct
40 Wakefield Road, Leeds LS98 1FD.
CITYA.M. 7 APRIL 2011
T
HE Brazilian stock market has
beaten its fellow Brics – Russia,
India and China – since 2002
and its future looks strong.
Carlos de Leon, who manages the
Allianz RCM Brazil fund, is an advo-
cate for the country’s long-term
potential. Whether in energy, health-
care, education or retail, de Leon
believes that Brazilian companies
will be able to profit from the rise of
the world’s fifth biggest country.
The Allianz RCM Brazil fund was
launched on 7 October 2010. De Leon
manages the fund with Michael
Konstantinov, who also runs the
£1bn Allianz RCM BRIC Stars fund.
There are two ways of looking at the
fund, according to de Leon. It can
either be seen as a play on the Brics,
or a play on the Latin American mar-
ket. As the table shows, Brazilian
equities have outperformed the other
Brics since 2002 and gone from repre-
senting around 30 per cent of the
weighting of the MSCI Latin America
index a decade ago, to around 80 per
cent today. “This shows you the shift
that has taken place,” says de Leon.
The fund is benchmarked to the MSCI
Brazil index, but is more weighted
towards mid to small cap companies.
De Leon points out that although
Chile, Peru and Colombia have also
grown, the Brazilian stock market
(Bovespa) outshines its regional com-
petitors. In China, GDP growth has
not been concurrent with equity
rises, but de Leon suggests that this is
not the case with Brazil. He says this
is because the Bovespa covers every
conceivable sector, has great breadth
of stocks and is very liquid, with daily
trading of over $3bn, plus a similar
amount of American Deposit Receipt
(ADR) trading. For de Leon, it “offers
tremendous opportunities in terms
of investment.”
With commodities on a high,
Brazil is well placed: much of its
economy is based on oil, gas, iron ore
and food revenue. Vale, the second-
largest mining company in the
14.7 years. “Now it is all about execu-
tion, converting reserves into produc-
world, makes up 8.62 per cent of the tion and cash flow. That’s what the
fund, while the Brazilian state of market is focussing on at the
Mato Grosso has the size, soil fertility moment,” say de Leon. Traditionally
and weather patterns to supply an the oil produced by Brazil has been
increasing amount of the world’s thick crude oil, but recent finds are
food, says de Leon. Energy is a partic- thinner, so once refineries have been
ular focus of the fund. According to upgraded, profits should flow.
de Leon it will be “a massive invest- Private companies are growing to
ment theme for the next ten years,” meet the demands of healthcare and
and “Brazil is a hotspot in the global education. Rising wages and the for-
energy industry. It was very appeal- malisation of employment – shifting
ing five or ten years ago and it is even employees from the black to the
more so now.” There are two big sedi- white economy – combined with a
mentary offshore basins in Brazil, the
Campos Basin and the Santos Basin,
relatively low unemployment level.
has put pressure on employers to
which hold huge reserves of
untapped oil. “The challenge for
offer better benefits to employees.
Healthcare is a growth industry. De
Brazil is not to find reserves, but to Leon likes Odontoprev, Latin
exploit them at a competitive cost,” America’s largest dental benefits
says de Leon. provider, Diagnosticos da America
Petrobras is the main player in the (DASA) and Fleury, medical diagnos-
oil industry and accounts for 9.61 per tic services providers.
cent of the fund’s assets. It is the Education is also a growing indus-
largest company in Brazil, has a mar- try in emerging markets and is a big
ket capitalisation of $228bn, and issue for the Brazilian government.
14bn barrels of oil in proven reserves The government offers tax breaks for
with an average reserve life of around the education sector and facilitates
CITYA.M. 7 APRIL 2011 Wealth Management | Funds 23

STOCKMARKET PERFORMANCE OF BRICS SOURCE: LIPPER (AS AT 31 DECEMBER 2010, MSCI INDICES IN GBP)

2002 2003 2004 2005 2006 2007 2008 2009 2010 Cumulative

1st Russia Brazil Brazil Russia China Brazil China Brazil India Brazil +737%

2nd India China India Brazil Russia India Brazil Russia Russia India +568%

3rd China India Russia India India China India India Brazil China +366%

4th Brazil Russia China China Brazil Russia Russia China China Russia +333%

BIG
ON UBIQUITY
From Shanghai to Rio, St Petersburg to Cincinatti, our
fund managers know their way around really well. They’re
prepared to invest anywhere in the world – whatever
the strasse, rue or avenida.

Here at Baillie Gifford we know exactly

where we’re going with our global
flagship fund, the Scottish Mortgage
Investment Trust. Our direction really
is resolutely international. Our fund

De Leon delivers convincing reasons why investors
should take a look at Brazil. As with any emerging
market, risks and opportunities present themselves
the industry by taking on the risk of
financing, covering the costs of stu-
dents who drop out. But the private
sector delivers the education. De
Leon likes Anhanguera, a postsec-
ondary education group that runs
campuses focused around Sao Paulo.
It teaches about 295,000 students,
who undertake courses for around
three to four years. These are not
wealthy students, working to pay fees
in the evening, but upon graduation
they can expect to double or triple
their salaries.
Retail is another trend that de
Leon is keen on. Natura, Brazilian
equivalent of Avon, employs a direct
sales model, with an astonishing
1.2m sales representatives. De Leon
Petrobras is dig-
ging for oil in the
Campos Basin
Picture: REUTERS
believes it is very well run. According
to de Leon the big growth story in
retail is responding to the growing
“C” class, those earning R$1,200 to
R$4,800 per month. Interestingly, de
Leon says that Brazilian consumers
prefer buying Brazilian goods, which
bodes well for indigenous companies.
De Leon delivers convincing rea-
sons for why investors should take a
look at Brazil. As with any emerging
market, risks and opportunities pres-
ent themselves in equal measure.
Provided the political stability con-
firmed by Luiz Inácio Lula da Silva’s
smooth handover to Dilma Vana
Rousseff remains, any bumps in the
road should be handled well by a
flourishing private sector.
managers actively seek companies that
we believe offer sustainable growth
for the future, and, here’s the thing, we
don’t mind where in the world those
companies are found. Are you going
our way?
Please remember that changing stock
market conditions and currency
exchange rates will affect the value of
investment in the fund and any income
from it. You may not get back the
amount invested.
Call 0800 027 5227 or
visit www.scottishmortgageit.com
The Scottish Mortgage Investment Trust is available
as a Share Plan or an ISA
We may record your call. Baillie Gifford Savings Management Limited is the manager of the Baillie Gifford
Investment Trust Share Plan and Investment Trust ISA and is wholly owned by Baillie Gifford & Co, which
is the manager and secretary of the Scottish Mortgage Investment Trust PLC. Baillie Gifford Savings
Management Limited, Calton Square, 1 Greenside Row, Edinburgh EH1 3AN.
 24 Wealth Management | Markets CITYA.M. 7 APRIL 2011

('  ('  ('  L'& #+ "'% '$ 

K      K

    
             

    K
I    
          
J     K
J    
$@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E $@713 65 756 =E
 (' #"'(&)(#"  !(& ' /;3::7/        ';7B6A @=C>          3/H:3G         3<B/;7< 5G>B B         /;;3@A=<         +3B63@A>==<        
6/@:3A (/G:=@ =         /B:7< @=C> B2        C@/A7/< "/BC@/:          /<AB33< =:27<5A         /20@=93A         
(AG            /:4=C@ 3/BBG         7BG =4 =<2=< @         "& &( &' $$ @=C>          @3A<7::=         /<2 '31C@7B73A          !/@AB=<A        
(AG          3::3@ @=C>         7BG =4 =<2=< <         @=E< "  @=C>        7A1=F B2          3; 7/;=<2A B2        '&#         !7::3<<7C;  =>B        
(AG           73@ @=C>         :=A3 @=B63@A @         /@>3B@756B         /@27<3 :=G2 (6=          =16A167:2 !7<7<5         '6/4B3A0C@G        !7B163::A  CB:3       
(AG           =::7<A 'B3E/@B         303<6/;A       /<1/A67@3 =:27<         /H/96;GA         "/B7=</: F>@3AA        
(AG             (&(- '#(+&  #!$)(& '&*
D=:CB7=< @=C>          75<7BG         &' <AC@/<13 @=        3<;/@3 &3A=C@13A        $C<16 (/D3@<A        
(AG            @/F @=C>           AA3B !/</53;         7F=<A &3B/7:        =<;7<        CB=<=;G =@>=@/B          &/<9 @=C>        
(AG           '1=BB7A6  '=CB63          /@5@3/D3A /<A2=         C<3:; @=C>            "')&" $3B@=>/D:=DA9         D3D/ @=C>         &3AB/C@/<B @=C>      
(AG          =;7<= $@7<B7<5 '         3:>67@3 @=C>         /:4=@2A @=C>        D7D/        &/<25=:2 &3A=C@13           =;>CB/13<B3@         'B/531=/16 @=C>        
(AG             3<23@A=< @=C>         =;3 &3B/7: @=C>        35/:  3<3@/:          &7= (7<B=         723AA/ @=C>          (6=;/A ==9 @=C>        
(AG            (&#"   (& %
756E/G />7B/:         <161/>3        #:2 !CBC/:        *32/<B/ &3A=C@13A          <D3<AGA        () (@/D3:        
(AG            /:;/         $          '>=@BA /A67=<        $6=3<7F @=C> =:         ,AB@/B/         =4/F          +67B0@3/2         
(AG            /7@2          @=C> =:27<5A         3A/ :31B@71/:A        $@C23<B7/:        =571/          +7::7/; 7::        
(AG              !=@5/< @C170:3         <B3@;327/B3 />7         7<547A63@         &3A=:CB7=< B2         !#  ( #!' !71@= =1CA <B3@         
(AG            &3<7A6/E         <B3@</B7=</: $3@        !/@9A  '>3<13@            'B /;3AA $:/13        <;/@A/B           !7AGA         ! 
(AG           '>31B@7A         <B3@</B7=</: $C0         !=B63@1/@3        'B/<2/@2 743         *=2/4=<3 @=C>          '/53 @=C>        01/;       
(AG           <D3AB31         "3FB         '          :03;/@:3  =<2        
(AG             %)(- "*'(!"( "'(&)! ! "#"%)(- "*'(! #!!
$ @=C>         '>=@BA 7@31B <B        (3:317BG @=C>         ;3@7AC@ &3A=C@13       
(AG            03@4=@B6 ';/::3@         C>7B3@ C<2 !/</         + ';7B6         7;>@7<B @=C>         3<3A7A ;3@57<5          @167>3:/5= &3A=C        
(AG            ::7/<13 (@CAB        !' />7B/:         357A @=C>        ')$$#&( '&*' '#'          
(AG            /<93@A <D (@CAB           ( & %)$!"(  ' #  ' $&#)&'
=<2=< 7</<13          :==;A0C@G $C0:7A         55@39=         C@3:7/< #7:  /        
(AG             :=0/: B2          =<2=< 'B=19 F16         ';7B6  "3>63E         @7B7A6 '9G @=/2         4@3<        A6B3/2 @=C>       D/<B7 =;;C<71/B         
(AG             :=0/: B2 )'        !/< @=C>         'G<3@5G 3/:B6         3<B/C@ !327/          @=C>         B97<A +'         D=13B !7<7<5       
(AG             !/1@= B2 )&        $/@/5=< @=C> #4         67;3 =;;C<71/B7         $         /01=19 <B3@</B7          :7<9F        
(AG             !/1@= B2 $         $@=D723<B 7</<17          #  '  #! #"'(& @3AB=<         /7@< <3@5G        3@3<2A3<        =@23@A  '=CB63@        
(AG            !/1@= B2 )'         &/B60=<3 @=B63@A          /@@/BB 3D3:=>;3        /7:G !/7: /<2 3         <%C3AB        C<H:         =E 3D3<       
(AG           :/19&=19 +=@:2 !         &3/: AB/B3 @327       3::E/G         C@=;=<3G <AB7BC         AA/@ <3@5G         />7B/ @=C>          /:32=< &3A=C@13A        
(AG           :C3@3AB :::C3        &'! (3<=< @=C>         3@93:3G @=C> =         CBC@3         F7::=< <3@5G         /@7::7=<        />3        
(AG            @7B7A6 AA3BA (@         '  )         3@7B/53 #7:         3 / &C3         =<G5/@ <D3AB;3<         
(AG           @7B7A6 ;>7@3 '3         '16@=23@A         , #7:  /A         :31B@=1=;>=<3<BA       =D3 <3@5G        
(AG     
(AG      
 
 
 
 
 
 
/:32=<7/ <D3AB;    
7BG =4 =<2=< <   
    
   
'16@=23@A "=<*=        
(C::3BB $@30=<        
!" "' )  $@3;73@ #7:    
&=G/: CB16 '63::    
   
    
F>3@7/<        
7:B@=</ $         
/7AG @=C>   
3A7@3 $3B@=:3C;    
 
 
 
 
(AG            3F7=< 0A=:CB3        +/:93@ @7>A @=C         &=G/: CB16 '63::         '         !' @=C>        
(AG            27<0C@56 @/5=<         &7A3@A  /::3@A 
'/:/;/<23@ <3@5G         /GA        <1=@3 #7:        
(AG            27<0C@56 <D (@C        , " ( #!' !/@9A  '>3<13@ @     E7< >/@BG 757B/:     '=1= <B3@</B7=</       =;3A3@D3         /@=3 $3B@=:3C;        
(AG            :31B@/ $@7D/B3          ( @=C>         &3<7A6/E     (/G:=@ +7;>3G     (C::=E #7:         =E23< =7<3@G @          C:4A/<2A $3B@=:3        
(AG             <D (@CAB         /0:3  +7@3:3AA        <B3@B39 @=C>         + $6/@;/13CB71/:        
(AG            3<B/;7< 5G>B B2     3B4/7@ @=C>    
723:7BG 67</ '>         /0:3  +7@3:3AA         # %)$!"(  '&*' !716/3: $/53 <B3         /;E=@B6G         
723:7BG C@=>3/<         
$/13    /@@/BB 3D3:=>;3<    
# ( @=C> '        F7::=< <3@5G     /7@< <3@5G     ;31          !7B73 @=C>        /@5@3/D3A '3@D71        
723:7BG '>317/:        (/:9(/:9 (3:31=;       C<B7<5          $@3;73@ /@<3::        3/:B61/@3 =1C;A        
3@/:2 <D (@CAB          $3B@=>/D:=DA9     <D3<AGA     =6< +==2 @=C>        &35CA          ;;C<=27/5<=AB71        
 <4@/AB@C1BC         ##  &) &( &' /<1/A67@3 =:27<5     $3/@A=<     /;>@3::         &3<B=97: <7B7/:         /;3A /:AB3/2        
&#'$  "
;>/F <D7@=<;3<B          ==93@ @=C>         :=G2A /<97<5 @=     &=B=@9     $3B@=4/1 B2         &$' @=C>         /:/6/@7 !7<3@/:A        
 'GAB3;A        $!=@5/< ;3@71/<         @355A          !=B63@1/@3    =571/      '3@1= @=C>          =<2=< !7<7<5        
63;@7<5 @=C>         $!=@5/< A7/< <         !=@@7A=< +; 'C>       $&'#" ##' '6/<9A @=C>          =<@6=        
C<3:; @=C>      3; 7/;=<2A B2   
=06/;        $!=@5/< ;3@57<5         #1/2= @=C>         C@03@@G @=C>           '        C>CA />7B/:       
!3557BB         $!=@5/< C@=>3/<         '/7<A0C@G          $. CAA=<A         '(6@33         ! $ D/<A @=C>         
%7<3B7% @=C>         $!=@5/< <27/<         $@713 65 756 =E $@713 65 756 =E
(3A1=         'C>3@5@=C>          (@/D7A $3@97<A          !/83AB71 +7<3        
&=::A&=G13 @=C>          $!=@5/< &CAA7/<          =D7A =;3A @=C>          /G<3A $C0:7A67<5         +=:A3:3G          !/G C@<3G <B35@        
'3<7=@        /E 303<BC@3 =@       ## $&#)&' $&!)( '  #( !=<7B7A3        
$3@A7;;=<        C<BAE=@B6         ("# #- &+  %)$
):B@/ :31B@=<71A         !3@1/<B7:3 <D (@         AA=17/B32 @7B7A         &3197BB 3<197A3@          <4=@;/         AB@/.3<31/          !C:03@@G @=C>        
)(#!# '  $&(' !3@16/<BA (@CAB           @/<AE719         &32@=E          ( @=C>        (        &! =:27<5A         "/<=1= @=C>        
!=<9A <D (@CAB         /7@G @3AB @=C>          (/G:=@ +7;>3G        (*         3<CA        '&        "/CB71/: $3B@=:3C        
"       !C@@/G <1=;3 (@C         3D@=         =2G1=B3         =6<AB=< $@3AA        :/F=';7B6:7<3          ;/57</B7=< (316<         "716=:A        
"' !C@@/G <B3@</B7=         $@3;73@ ==2A        !31=; @=C>         79;/ $6/@;/13CB7         $/13         "C;7A =@>=@/B7=<        
$3@>3BC/: <1=;3        (/B3  G:3         ")'(& ""&" '67@3 $:1          '>7@3<B =;;C<71/         $/B/5=<7/ =:2        
!=<3GAC>3@;/@93B       
/@1:/GA        $=:/@ /> (316<=:       )<7:3D3@         6/@B3@ <B3@</B7         $3/@A=<         $C@AC7B G</;71A        
' =:27<5A        &( />7B/: $/@B<            & '(( "*'(  '&* (##
3<<3@        &332 :A3D73@         &=196=>>3@ F>:=@        
:=G2A /<97<5 @        '16@=23@ A7/ $/1         #&'(&-  $$&
!         &756B;=D3         />7B/:  =C<B73         @7B7A6 ;3@71/<         &+' =:27<5A        
&=G/: /<9 =4 '1=         '1=BB7A6 <D (@CA         !=<27         !3:@=A3         '(* @=C>         /38/< =:27<5A         ;>3@7/: (=0/11=         '=<507@2 AB/B3A        
'B/<2/@2 6/@B3@3         '1=BB7A6 !=@B5/53         "=@B65/B3        (/@ACA @=C>          =;;3@17/: $@         'B3@:7<5 <3@5G        
'* />7B/:        ' +(&  !) ()( (' (&*  ')&
*&' &=B=@9          (@7<7BG !7@@=@         @/7<53@         */:7/<B $3B@=:3C;        
(3;>:3 /@ <D (@         3<B@71/          '>7@/F'/@1= <57          )<7B32 CA7<3AA !          3:71/: /@         D7A C@=>3         */BC9=C:/ =:2 !7        
 /@@          (3;>:3B=< ;3@57<         <B3@</B7=</: $=E         +37@ @=C>         )(* !327/        =<2=<  'B/;4=@2         3B4/7@ @=C>         -=C<5  =A @3E       
@7BD71         (& $@=>3@BG <D (         "/B7=</: @72        3@@3F>=         +7:;7<5B=< @=C>         '/D7::A         E7< >/@BG 757B/         
7/53=            (& $@=>3@BG <D (        "=@B6C;0@7/< +/B3          (/:D7D//@/ !7<7<5        +$$         'B !=2E3< $@=>3@         /@<7D/:        
'!7::3@          +7B/< <D (@CAB          $3<<=< @=C>          -3:: @=C>         ) =;;3@17/: $@=         =;>/AA @=C>        
'3D3@< (@3<B         ")'(& (&"'$#&((#" )<7B3 @=C>        =;7<=A $7HH/ )        
! ' "" '&*' !""
)<7B32 )B7:7B73A           D7/B7=<         3/AG3B        
. :31B@=<71 !/B          7 @=C>         & '(( "*'( (&)'('
"& ")'(& ' =@B6 $=@BA         4@71/< /@@719          <B3@>@7A3 <<A        
@=2/ <B3@</B7=<         7 <4@/AB@C1BC@3         'B=0/@B @=C> B2         <5:= ;3@71/<          75 -3::=E @=C>         7@AB@=C>       
:3;3<B7A         03@233< AA3B !/          ==9A=< @=C>          <5:= $/17471 @=        @7B7A6 /<2 =         =63/2 @=C>        


  
=6<A=< !/BB63G         A6;=@3 @=C>         ' ';7B6         "#"  "')&" <B=4/5/AB/         />7B/: '6=>>7<5         @33<3 7<5       
*71B@3F         3@93:3G (316<=:=       
&3F/;       2;7@/: @=C>          ?C/@7CA $:/B7<C;         3@E3<B =<2=<          <B3@=<B7<3<B/:         
-C:3 /BB=  =         @3E7< =:>67< =         &$ @=C>         ;:7<        $ 7::7B=<         @3/B $=@B:/<2 A        <B3@</B7=</: =<       
 

)L'&' )'L'&'
In association with

Don’t miss breaking

$@713 65 756 =E $@713 65 756 =E
& %)         !        
 ".         #(( '        
 '(#!          #        
")')' "*  
& #&!((  
,  
 

 
 
 
 
 
 
 
news with our new  (& &#)$  
!.#" #!  
!&" ,$&''  
 
 
 
 
 
 
 
 
 
"# '"("&         !" "        
' '  
-&  
*  
 
 
 
 
 
 
 
 
 
10:30 AM EMAIL $$   
((  
" # !&  
 
 
 
 
 
 
 
 
 
!+         &'& (+         
"$ $&'  
&&#)&  
 
 
 
 
 
 
Each day we’ll cover the morning’s breaking news, #" #  
&'(# !-&' '%)  
 
 
 
 
 

&( &#   
& $   
 
 
 

 
 
give you current market analysis and (&$ &  
*&#"  
 
 
 
 
 
 
! &  
"#"  
 
 
 
 
 
 
the most up-to-date financial headlines. '# '-'(!'  
##   
 
 
 
 
 
 
)(' "         # ( $ !# *        
)(' #&'         #"##$ $'        
)(' ( #!  
 #" 
 
 
 
 
 
 
Sign up now to ensure you ) $#"(  "!&  
! #&$  
 
 
 
 
 
 
"  
"  
 
 
 
 
 
 
receive our free email. ,,#" !#  
#& !#(#&  
 
 
 
 
 
 
&" ( #!         "&  (&       
 ').        In association with # !" '' &$        
"&  ''  
&&#   
 
 
 
 
 
 
Visit: www.CityAM.com/newsletter ##    
+ (( $&  
 
 
 
 
 
 
" &#$ *         #! $#(        
"(' '"$# #       !        
#" $ $'  (&         "( #&$        
#&         $ !#&" '        
*!          +#&  "' #"'#"  #"'#"        
!)" &          &( ##'         
$@713 65 165 $@713 65 165 $@713 65 165 $@713 65 165
"#         ! #" ' #&$        
('        '$              #*'$ '# $# #      
&$'# -$         !& " # "+        
('  ",       "'% #!$#'(       '" ' ",       '% #*& ",      
&+         !&#'#(       
(' )  '&       (')&#&'(        " '"        '(      
'"(#"         # $(&# )!        
(' !  '       "  *&       '$
',  ",       !      
'"#*"('         #&  #&$        
#+ #"' ")'          ,  $&#&!"        ',  #&"&'       '+'' !&( ",      
'$         $$'#        
'"&  (&  
'!"'  
 
 
  
 
 
 
#!!#(' &(  &(' $.&  
$ $ !#&&' "(  
 
 
 
 
 

'#( "&          #"  #" , !    (" '     = & #D3@<756B     C@= /A3 &/B3     $&#(& " !         
( #! (          ' *& " , !     ." '     = &  2/GA     7</<13 6=CA3 0/A3 @/B3     %) #!! "        
( #"         !$    #.     = &  ;=<B6     )' 32 4C<2A     ' )!&&        
&"( '$#( ",      = &  ;=<B6A     )' :=<5 0=<2 G73:2     
(#(         #" $ (")! !     (&* &' '        
'#-     = &  ;=<B6A     C@=>3/< @3>= @/B3    
)" &#!# '         #" $ )! !    )"( ("# #        
##     #& C@=  =D3@<756B     C@= C@70=@    
)"&(         )!")! '     #& C@=   ;=<B6A     (63 D7F 7<23F     *&.#" #!!'        
)" *& *        #$$& '      #     + !&( '(#&'        
#& )'  =D3@<756B     (63 0/:B71 2@G 7<23F    
*"          '     &)     #& )'   ;=<B6A     !/@97B 7=FF     + ( '"- #        
**"        " '     +(     /:74/F ;=@B5/53 @/B3     !/@97B 7(@/FF     + ' &#  #        
 Lifestyle
25

| Technology

Gadgets for
TUMI ELECTRIC
TRAVEL ADAPTOR
Tumi is known for its smart lug-
gage, but the company produces a
range of nifty travel gadgets too.
NICK
globetrotters
This ingenious, one-size-fits-all plug
adaptor works all over the world
and is beautifully designed.
BOOTH
TECH TALK
£50, www.tumi.com

Whether planning your holiday or jetting off on LEICA ULTRAVID

42MM HD
Software
business, some traveller-friendly tech could be
the making of your trip, says Timothy Barber
BINOCULARS
If you’re heading to the wilderness,
out on safari or anywhere remotely
for a simpler
digital life
wild, you’ll want to see as much of
your surroundings (and what’s liv-
ing among them) as closely as pos-
sible. By a distance, these are the
binoculars to do the job. £1,589,

NOKIA BOOKLET 3G
Light as anything and with a battery that lasts several
hours, this tiny netbook enables you to run up spread-
sheets and presentations from the departure lounge or
the beach. £589, www.nokia.co.uk
APPLE IPAD 2 SALTER LUGGAGE SCALE
Thinner, lighter, faster and cooler still than its predecessor (and this time with a cam- Unexpected baggage charges are the bane of even the
era too), the new generation iPad is already inspiring tech-envy in airport executive most careful traveler, making this small gadget with a
lounges everywhere. Keep that seat-back telly switched off on a long-haul flight, and simple digital weight display essential travel kit. £14.99,
sit back with this instead. From £399. www.apple.com/uk www.salterhousewares.com
www.leica.com
SONY NEX 3
Simply one of the best SLR-compact hybrid cameras
around. With changeable 16mm and 18-55mm lenses,
you get SLR-quality pictures in a small, light, travel-
friendly piece of kit. £548.95, www.jessops.com
TUMI TRAVEL SPEAKER
Using vibration technology to turn a table or desk into a
high fidelity speaker, this portable speaker system for
MP3 players and laptops connects to a standard head-
phone jack and USB. £125, www.tumi.com
T
HE problem with the technology revolu-
tion is the hours we now spend simply
organising our digital existences and
inputting the same information. But
there are software programmes and apps
designed to give us our lives back.
Roboform, for example, tackles those time
thieves masquerading as online forms. Since so
much of life is now organised online, from job
applications to property purchases, we’re end-
lessly re-typing the same basic information into
websites. Roboform will remember everything
and paste it in for you. Even your dubious
account of your success in your last job or the
different product descriptions you concocted
for Amazon, eBay and that new business you
are starting on Pixmania. It’ll remember the
most complicated passwords on every trading
system and social network you throw at it.
Once you’re in, LifeSort unifies and manages
all the pictures, videos, emails, texts, Facebook
entries and eBay auctions in your life. Let’s say
you’re working on the train. Rather than an
unstructured mess of files and folders, videos
and pictures you may need, LifeSort arranges
things into Personal, Professional and Public
“environments” that can be accessed on your
desktop, through a browser and via the cloud.
It works with computers and phones, and
saves hours of faffing.
It also tackles social media. An HTC Wildfire,
for example, is brilliant for using LinkedIn,
Facebook and Viadeo, through its FriendSteam
app. Its pinch and zoom functions make it good
for viewing web sites, maps and apps. But
Lifesort brings them all together in one place,
where they can be organized much better. So
the jumble of your digital life becomes less
complicated and easier to manage.
Nick Booth is the editor of
www.mobbed-online.com

 

 
    

  

 
! 

  "$
#&! # !%) #&! # &#$&'
 !&'#" '%' *!" #(%'  &#$&'
#"#"   #"#"  


  
 


###!
( ' '# )!!'+

 26 Lifestyle | TV& Games CITYA.M. 7 APRIL 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
6.55pm Party
Political Broadcast
7pm The One Show
7.30pm EastEnders: BBC News
8pm CHOICE Watchdog
9pm New Tricks
10pm BBC News
10.25pm Regional News
10.35pm Question Time
11.35pm This Week: The past
seven days in politics: Holiday
Weatherview 12.25am Sign Zone:
Finished at Fifty? – Panorama
12.55am Countryfile 1.55am
Antiques Roadshow 2.55am Rip
Off Britain 3.25am-6am BBC News
6pm Eggheads
6.30pm Great British Menu
7pm David Attenborough’s
First Life: Part two of two.
How animals began
to survive on dry land.
8pm Lambing Live
9pm CHOICE
A History of Celtic B ritain
10pm Rhod Gilbert’s Work
Experience: The comedian
becomes a butler for the day.
10.30pm Newsnight: Weather
11.20pm Filthy Cities
12.20am BBC News
3.25am Close 4am-6am
BBC Learning Zone
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.25pm Party Election 6.30pm Hollyoaks 6.30pm OK! TV
Broadcast 7pm Channel 4 News 7pm 5 News at 7
6.30pm ITV News 7.55pm 4thought.tv 7.25pm How Do They Do It?
7pm Emmerdale 8pm Three in a Bed 7.55pm Live UEFA Europa
7.30pm The True Price of a 9pm Dad’s Having a Baby: League Football: Benfica v PSV
Pint: Tonight A Bodyshock Special Eindhoven (Kick-off 8.05pm).
8pm Emmerdale 10pm 10 O’Clock Live 10pm FILM Dragon:
8.30pm Coronation Street 11.05pm Friday Night Dinner The Bruce Lee Story: Biopic
9pm CHOICE Monroe 11.35pm The Ricky WATCHDOG
of the kung fu movie star,
10pm ITV News at Ten Gervais Show BBC1, 8PM
12.05am Music on 4: 4Play: The
starring Jason Scott Lee. 1993. Anne Robinson, Matt Allwright and
10.30pm London News 10.35pm
12.25am SuperCasino:
Benidorm 11.35pm Celebrity Kills 12.25am On Track 12.40am Chris Hollins return with the
Grimefighters 12.30am The Zone; The Crush 1.35am Face of Britain Live interactive gaming. investigation show that exposes
ITV News Headlines 2.35am British 2.30am Dispatches 3.20am 4.05am The FBI Files 4.55am fights for consumers’ rights.
Touring Car Championship Unreported World 3.45am Hill Rough Guide to Eco Escapes
Highlights 3.50am Jeremy Kyle Street Blues 4.40am Ugly Betty 5.10am Wildlife SOS 5.35am-
4.45am-5.30am ITV Nightscreen 5.25am-6.10am Countdown 6am House Doctor

SKY SPORTS 1 Rallying 11.45pm-12.45am BBC THREE Martin 3.15am Ugly Betty 4.40am Nasa’s Greatest
SATELLITE & CABLE

7pm Live US Masters Golf
12.30am Premier League World
1am Ringside 2am Time of Our
Lives 3am Trans World Sport
4am Premier League World
4.30am Ringside 5.30am-6am
Football’s Greatest
SKY SPORTS 2
7pm Live Darts 10.30pm Time
of Our Lives 11.30pm Rugby
Club Special 2.30am-3am
ATP Tour Uncovered
SKY SPORTS 3
7pm Live Rugby Club Special
10pm Ringside 11pm WWE:
Late Night – Raw 1am WWE:
NXT 2am-5.30am Premier
League Darts
BRITISH EUROSPORT
5.55pm Live WTA Tennis
9.45pm Live Curling 11.30pm
Cycling
ESPN
5pm Brunei Masters Football
7.45pm ESPN Kicks: Scottish
Premier League 8pm Live UEFA
Europa League Football 10pm
Goal! 10.30pm UFC Unleashed
11.30pm NBA Action 12am
Premier League World 12.30am
ESPN Press Pass 1am UEFA
Europa League Highlights 2am
Goal! 2.30am NHRA Drag
Racing 5am-6am Formula 3
Euroseries Review
SKY LIVING
7pm CSI: Crime Scene
Investigation 8pm Chuck 9pm
Three in a Bed 10pm Katie 11pm
Criminal Minds 12am Ghost
Whisperer 1am CSI: Crime
Scene Investigation 2.40am
Charmed 4.20am Nothing to
Declare 5.10am-6am Maury
7pm Top Gear 8pm Police
Academy UK 9pm Botox
Britain: Your Face in Their
Hands 10pm EastEnders
10.30pm Russell Howard’s
Good News 11pm Family Guy
11.45pm Botox Britain: Your
Face in Their Hands 12.40am
Russell Howard’s Good News
1.10am My Brother the Islamist
2.10am Police Academy UK
3.10am Thailand: Tourism and
the Truth – Stacey Dooley
Investigates 4.10am-5.10am
My Brother the Islamist
E4
7pm Hollyoaks 7.30pm Friends
9pm Glory Daze 10pm The
Inbetweeners 11pm Shameless
12.10am My Name Is Earl
1.05am The Inbetweeners
1.55am Shameless 2.50am
Important Things with Demetri
3.55am Privileged Missions 5.30am-6am
4.40am-6am Switched Destroyed in Seconds
HISTORY DISCOVERY HOME &
7pm America: The Story of the
US 8pm IRT Deadliest Roads
HEALTH A HISTORY OF CELTIC BRITAIN
7pm A Baby Story 8pm 17 Kids BBC2, 9PM
9pm The Kennedys 10.55pm
and Counting 9pm I Didn’t Neil Oliver explores the origins of
Pawn Stars 11.25pm Mud Men
12.30am IRT Deadliest Roads Know I Was Pregnant 10pm Britain and its people, discovering how
1.30am Pawn Stars 2am Mud Facing Trauma 11pm A&E 12am a golden age of bronze gave way to a
I Didn’t Know I Was Pregnant period of social and economic crisis.
Men 3am America: The Story of
the US 4am The Universe 1am Change of Face 2am A&E
5am-6am Ice Road Truckers 3am 17 Kids and Counting 4am
Bringing Home Baby 5am-6am
DISCOVERY A Baby Story
8pm Wheeler Dealers 8.30pm
How It’s Made 9pm Coldest SKY1
Race on Earth with James 8pm Hawaii Five-0 9pm
Cracknell 10pm HMS Ark Royal Martina Cole’s The Runaway
11pm Trawler Wars 12am Bear 10pm House 11pm NCIS 12am MONROE
Grylls: Born Survivor 1am Night Cops 1.50am Road Wars ITV1, 9PM
Deadliest Catch 2am Future 2.40am Cold Case 3.30am Lost The neurosurgeon has to confront the
Weapons 3am The Russian 4.20am Dom Joly’s Happy Hour prospect of operating on a colleague
Revolution in Colour 3.50am 5.10am-6am Liza and Huey’s when registrar Sally Fortune collapses.
World War Two in HD Colour Pet Nation Drama, starring James Nesbitt.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
4 16 17 39 10 22 42 8
27 28
 
24 11
Place the numbers from 1 to 9 in each empty cell so that each 11
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 34
3 44 5
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 3 7 7
  
above or to the left of it. 23 19
You can only use the digits 1-9 17 21
    and you must not use the
21
21 9    
same digit twice in a block. 4 6 14
    The same digit may occur 20 33
12
 more than once in a row or
column, but it must be in a
7
24
7
13
6
  
22
   separate block.
8 11 17
16 14
    30 29
 

   ACROSS DOWN
1 Popular game played 1 Ancient unit of

    WORDWHEEL O G
with pieces of
stiffened paper (5)
4 Block used as a building
length (5)
2 Went faster (3)
3 Quench (5)
Using only the letters in the Wordwheel, you have or paving material (5)
    ten minutes to find as many words as possible,
B A 7 Dressing for a
4 Noise made by
a sheep (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E wound (7)
8 Chronic drinker (3)
5 Underwriter (7)
6 Sailing vessel with
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E K 9 Mark (~) placed two masts (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
R R
over the letter n
in Spanish (5)
10 29 February (4,3)
12 Motor coaches (5)
11 Portable light (5)
QUICK CROSSWORD 2 1 3 1 6 2
13 Extinguish (5)

S U M P T I G H T S
6 9 2 4 7 3 8 1 5 SUDOKU         
12 Name given to a
product (5)
14 Tip at an angle (5)
7 8 8 5 9 6 7
         15 Skinny,
H A C I D R
9 7 3 9 3 8 14 Drinking tube (5)
A V O N C A N C E R          underweight (5)
B I H N 8 3 2 1 4 5 4 9 16 Ground containing
9 2 7 2
         18 Be of service (3)
B L A C K B O A R D a matt of grass and
WORDWHEEL
Y G A U R 7 9 5 6 9 8 4 7
        
C O N T R A V E N E         
grass roots (3)
2 7 1 6 1 2
R A O M
1 4 5 2 3 2 9          17 Oblivious (7)
V A N I S H D I V E The nine-letter words were
W T A C K D 4 6 7 1 2 9 5 3 8          19 Flair (5)
HETEROTIC and THEORETIC
A L W A Y S A L L Y 8 9 5 8 9 7          20 Now (5)
 Punter
GOLF TRADER DAVID WILD PICKS OUT THE BEST BETS AT AUGUSTA
Mickelson’s the Master,
but Aussie Aaron appeals
THE MASTERS 2011
STARTS TODAY - 7PM, SKY SPORTS
H
ANDS up who can spot the differ-
ence at the top of the US Masters
betting list this year? At first
glance it has a highly familiar look
about it. PHIL MICKELSON and Tiger
Woods again head the field although this
time 12/1-shot Tiger - who has teed-off as
the favourite at Augusta for the last 11
years consecutively - is playing second fid-
dle to Mickelson, who is available at 13/2
with Paddy Power.
The bookies’ caution regarding ‘Lefty’
and Tiger is perfectly understandable.
Mickelson has won three titles here; his
natural left-handed fade, power and
exquisite short game are all perfectly suit-
ed to the track. Woods has won four times
previously and still holds the 270-stroke
72-hole course record he set in 1997.
Although the Green Jacket has not
graced Woods’ back since 2005, his
Masters record since is still impressive;
going backwards from 2010, he has fin-
ished fourth, sixth, second, second and
third.
Even so, I wouldn’t touch Tiger with a
barge pole this time. He hasn’t won a tour-
nament in well over a year, the imple-
mented changes to his swing have been a
hindrance to his game and his normally
dependable putting stroke deserted him
on the lightning greens of Augusta last
year.
Mickelson, on the other hand, has
apparently timed his resurgence to perfec-
Scotsman Laird can be best of ‘Brits Abroad’
WHILE the European Tour has grown in
stature and Martin Kaymer and co have
established themselves at the top of the
world order, across the pond Scotsman
Martin Laird has quietly progressed
through the ranks to become one of the
biggest dangers on the American circuit.
He earned his summons to the Masters
thanks to his victory at the Arnold Palmer
Invitational a fortnight ago and will not
be overawed on his debut. His high ball
| Golf
tion. On the PGA Tour, he appeared out of
sorts until cruising to victory in the Shell
Houston Open last weekend, his first tour-
nament triumph since beating Lee
Westwood to last year’s Masters title. That
victory would not have been a surprise to
anyone who had heard reports of
Mickelson’s performances on the range
and I hope they backed him for Augusta
success before last weekend. His odds
have contracted considerably since, but
backing a winner at short odds is better
than not backing a winner at all. Phil
Mickelson cannot be ignored.
For those looking for superior value, it
pays to bypass Europe - in the last three
years, the only Europeans to have
featured in the top-10 are Westwood, Ian
Poulter, Padraig Harrington and Miguel
Angel Jimenez - and go Down Under.
Australian AARON BADDELEY has every
chance to follow in the footsteps of fellow
Ryder Cup ineligibles Angel Cabrera,
Trevor Immelman and Mike Weir, all
Masters winners in the last decade. This
year has seen Baddeley revert to his old
swing and, consequently, has also
ushered in a sensational return to form.
He is a much better player than when
he finished 17th on his last visit two years
ago and when he tees off at 1.51pm local
time tomorrow he will do so with the self-
belief of a recent Tour winner. He tri-
umphed at the Northern Trust Open in
February and will have done his confi-
dence no harm when tying for fourth,
thanks in part to a second round 65 and a
third round 66, at the Augusta-a-like
Redstone last weekend. He has power, is a
good striker of the ball and can putt - all
the right ingredients for a happy weekend
flight gives him an advantage and the
22/1 available on Betdaq for Laird to be
top European is certainly tempting.
The 28-year-old is also one of Sporting
Index’s ‘Brits Abroad’ hotshots where the
firm quote the combined performance of
Laird, Luke Donald, Justin Rose and Ian
Poulter at 23-27, where 25 points are award-
ed for each player finishing in the top ten
plus a 25 point bonus for the winner. Rose
is another who normally plies his trade in
27
at Augusta - so Baddeley is a strong each-
way recommendation, at 55/1 with Paddy
Power, who are paying six places, quarter
the odds.
Consistency and a proven track record
at the course are two other factors that
should be valued for the Masters, leading
to two final outright tips. Not many pun-
dits have mentioned MATT KUCHAR’s
name in the build-up, presumably
because his low-ish shot trajectory is not
ideal at Augusta. That said, one cannot
argue with six top-10 finishes in his eight
starts this year and one of the best short
games in the world. A sound tempera-
ment could be an important additional
asset and I suggest selling the finishing
position of the graduate of nearby
Georgia Tech at 30 with Sporting Index.
Of the old school set, Fijian veteran
VIJAY SINGH looks likeliest to turn back
the years. Although he missed the cut last
time, his overall record at Augusta is out-
standing. After winning the Green Jacket
in 2000, between 2002 and 2006 he fin-
ished in the top-10 for five consecutive
years. Importantly, he has also shown
form this season finishing third in the
Phoenix Open and second, behind
Baddeley, in the Northern Trust Open.
Back him each-way at 100/1 with Victor
Chandler - he’s as short as 70/1 elsewhere.
POINTERS...
Phil Mickelson each-way at 13/2 with Paddy Power
Aaron Baddeley each-way at 55/1 with Paddy Power
Sell Matt Kuchar’s finishing position at 30 with
Sporting Index
Vijay Singh each-way at 100/1 with Victor Chandler
the US and has impressed of late, Donald
sits at the top of the Race to Dubai after his
WGC-Accenture Match Play victory and
Poulter will be keen to better his tied-10th
last time. A small buy at 27 looks the call.
POINTERS...
Martin Laird to be Top European at 22/1 on Betdaq
Buy ‘Brits Abroad’ Hotshots performance at 27 with
Sporting Index
28 Punter | Racing
RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT DAY ONE OF AINTREE’S GRAND NATIONAL MEETING
Denman should
be opposed after
Festival exertions
P
AUL Nicholls saddles the first three
red-hot favourites on the card at
Aintree’s Grand National meeting
which gets underway live in front
of the BBC cameras at 2.00pm this after-
noon. Betting shop punters across the
land will perm Big Buck’s, Zarkandar and
Denman and the latter will be sent off
really short if the first two ‘good things’
oblige. However, I will only be backing
one of the three and will be laying the
other two on Betdaq.
Let’s start with Denman, currently trad-
ing at evens with Hills, Victor Chandler
and Paddy Power, in the totesport Bowl
(3.05pm). On paper he looks a certainty,
particularly now that the recent rain has
softened the ground.
Only Long Run prevented him from
regaining his Cheltenham Gold Cup
crown on ground that would have been
far too lively for him. Yet, he was trained
for Cheltenham and, quite literally, ran
his heart out there. He showed at
Punchestown last year, after finishing a
gallant second to Imperial Commander at
Cheltenham, that he badly needed a sum-
mer holiday and I expect more of the same
this afternoon. Now, the beauty of the
advent of the betting exchanges is that we
no longer have to find something to beat
Denman. All we have to do is ‘lay’ him at
the shortest price possible on Betdaq.
Nacarat looks the most likely to pick up
the pieces, although he doesn’t really
seem to stay this three miles plus trip and
the ultra game mare Carole’s Legacy may
well be the answer with AP McCoy in the
saddle.
Big Buck’s kept up his extraordinary
unbeaten run over hurdles when landing
a third World Hurdle at Cheltenham last
month and he will be many people’s idea
of the banker of the meeting. He is by far
the most likely winner, but makes
absolutely no appeal at around 8/15. In
fact, I will be looking to lay him on Betdaq
at that price because I’m not sure Aintree
really suits him.
Now, that might well sound crazy as he
is unbeaten in three appearances at the
Grand National meeting. However, his
two wins in this race over the last two sea-
sons have been his least impressive. Last
year, he was pushed out to beat ‘trees’,
while two years ago, I was convinced that
Mighty Man had him beat approaching
the last flight. I’ve just got a feeling that
Grands Crus will be ridden more aggres-
sively and will be the one to lower his
colours. That said, by laying Big Buck’s on
Betdaq you get all of the other 10 running
for you. It won’t be all doom and gloom
for ‘Team Nicholls’ as it’s pretty hard to
%$
&7&3:0/&µ4
"
8*//&3
%$
Investec Derby Festival – 3rd & 4th June 2011
Featuring the world’s greatest flat race Book now: 0844 848 3256 epsomdowns.co.uk
CITYA.M. 7 APRIL 2011
see past ZARKANDAR in the 2.30pm con-
test. He was mightily impressive at
Cheltenham and I see no real reason why
Grandouet should reverse that form.
The Fox Hunters’ Chase (3.40pm) is as
wide open as every year and you always
need a great deal of luck. I like to back
horses who have had experience over the
National fences before, so will be with last
year’s runner-up MONCADOU and
OFFSHORE ACCOUNT. The former has
been laid out for the race again, while the
latter ran really well in Mon Mome’s
National and was seventh in the Topham
last year.
Alan King thought MEDERMIT was his
best chance of a winner at Cheltenham
and was obviously disappointed with his
performance in the Arkle. It seemed as
though he just got tapped for toe over two
miles and he should appreciate the step
back up to 2m4f in the 4.50pm.
Wishfull Thinking will attempt to
make the running as he did in the Jewson,
but I’d be worried about him getting
caught up the long Aintree straight.
‘Choc’ Thornton should be able to get
Medermit into a better rhythm over this
extended trip and I fancy him to pick off
Philip Hobbs’ runner.
Get Me Out Of Here was unlucky not to
win the County Hurdle last month and-
connections will be looking for compensa-
tion in the 5.25pm. He has to carry top
weight, though, and there are a whole
host of unexposed horses that could well
be better handicapped.
I like horses with Aintree form and I’m
going to stick with two each-way selec-
tions who won at last year’s meeting. Gary
Moore’s MEGASTAR was an impressive
winner of the Bumper here on Grand
National Day and finished an excellent
fifth in the Neptune at Cheltenham. He
will love the good ground, as will
ORSIPPUS, who won the four-year-old
Novices’ Hurdle at a massive 40/1 12
months ago. He was a decent third in last
month’s Coral Cup and Michael Smith’s
yard is absolutely flying at the moment.
POINTERS...
LAY BIG BUCK’S 2.00pm Aintree
ZARKANDAR 2.30pm Aintree
LAY DENMAN 3.05pm Aintree
MONCADOU e/w 3.40pm Aintree
OFFSHORE ACCOUNT e/w 3.40pm Aintree
MEDERMIT 4.50pm Aintree
MEGASTAR e/w 5.25pm Aintree
ORSIPPUS e/w 5.25pm Aintree
 Sport “POULTER’S ALWAYS 29
RIGHT ISN’T HE?”
TIGER RESPONDS TO
ENGLISHMAN’S JIBE: P31

James buys a
FACT FILE | LEBRON JAMES
l The 26-year-old plays in the NBA for Miami
Heat. He moved there in controversial circum-
stances from Cleveland Cavaliers last year.
l In December 2007, James was ranked at No1

stake in Reds in the Forbes Top 20 Earners Under 25 with

annual earnings of $27m.
l In March 2008, James became the first black
man to appear on the cover of Vogue.
l Last July James became a free agent and
announced live on an ESPN special broadcast
Reds managing director Ian Ayre
▲

FOOTBALL that he would be joining Miami Heat, who were

BY FRANK DALLERES said: “LeBron shares our love of all
sports and we are very excited to offering a salary of $14.5m per year.
BASKETBALL superstar LeBron James make him part of the Liverpool fam- l Last December he was voted the sixth most
has taken a stake in Liverpool as part ily. James has acquired the minority shareholding in Liverpool Picture: ACTION IMAGES disliked sportsman in America.
of a partnership with the club’s “We look forward to working with
American owners, in an unprece- LeBron, LRMR and FSM, and explor-
dented move that aligns two of the ing the business opportunities this
world’s biggest sporting brands. new relationship could bring forth
James, twice named Most Valuable both here in the U.K. and abroad.”
Player in the NBA, has acquired the The arrangement is thought to be
minority shareholding in the the first time a sportsman with the
Anfield team as part of a deal that status of James has taken a stake in a
will see Reds owners the Fenway sport team of Liverpool’s global repu-
Sports Group market the 26-year-old tation and value.
worldwide. Fenway Sports Group, headed by
“Liverpool is one of the most John Henry and Tom Werner,
important clubs in all of sports, and I bought Liverpool for £300m in
am excited to be affiliated with this October and owns a portfolio of
incredible organization,” said the sporting interests including base-
Miami Heat star. ball’s Boston Red Sox.

Lennon: Don’t make me

Tottenham’s scapegoat
Twitter account to dispel the notion
▲

FOOTBALL
nerves had gotten the better of him.
TOTTENHAM winger Aaron Lennon He said: “Saying I fell ill before the
insists his manager Harry Redknapp game is bull**** I fell ill on Sunday
was aware there was chance he would morning where the med team put
miss Tuesday’s 4-0 drubbing at the me on antibiotics, but only got worse
hands of Real Madrid as early as last before Tuesday.”
Sunday and hit back at suggestions He later posted: “Believe me this is
the size of the occasion caused his one game I did not want to miss and
last minute withdrawal. still devastated now!!!! But will not be
Redknapp claimed the England made a scapegoat saying they only
star was unable to play in the knew just before kick off.”
Champions League quarter-final first Meanwhile, defender Michael
leg after suffering a bout of illness. Dawson reveled that Peter Crouch
But Lennon contradicted that take apologised to his team-mates after he
on events, and yesterday used his was sent off in the 15th minute.

SPORT | IN BRIEF
Cueto facing lengthy ban BOA back down over cash row
RUGBY UNION: England winger Mark OLYMPICS: Lord Coe, chair of London
Cueto has been cited for eye gouging. 2012 organisers Locog, insists he no
The charge carries a minimum ban of 12 longer sees the cash wrangle with the
weeks, jeopardising his hopes for the British Olympic Association as a dispute.
World Cup in September. Cueto is alleged Coe’s comments came after the BOA
to have made contact with the eye area backed down in the row by asking Locog
during Saturday’s Premiership clash with for fresh talks and putting on hold their
Northampton. He’ll appear before an RFU legal action with the Court of
disciplinary panel next Monday. Arbitration for Sport.

Results
L<=8:?8DG@FEJC<8>L< KFGF=K89C<  G N ; C = 8 >; Gkj
HL8IK<I$=@E8C=@IJKC<> :\ck`Z%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)0 )) + * -+ (/ +- .'
9XiZ\cfeX%%%%%%%%%%%%%% )  , J_Xb_kXi;fe\kjb%%%%'  ( IXe^\ij%%%%%%%%%%%%%%%%%%%%%%%%%%)0 )) ) , -+ ). *. -/
@e`\jkX)#;Xe`8cm\j*+ IXb`kjb`p,0 ?\Xikj%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%*( (/ , / +- *' (- ,0
G`hl\,*#B\`kX-' ;le[\\Lk[%%%%%%%%%%%%%%%%%%%*( (* (' / +) *. , +0
OXm`/- 8kk1/-#/+. B`cdXiefZb%%%%%%%%%%%%%%%%%%%%*( (* . (( +- *- (' +-
:_\cj\X%%%%%%%%%%%%%%%%%%'  ' DXeLk[%%%%%%%%%%%%%%%%%%%%%%(  ( Dfk_\in\cc%%%%%%%%%%%%%%%%%%%*) (* + (, *- +* $. +*
8kk1*.#0(, Iffe\p)+
:CP;<J;8C<98EBGI<D@<IC<8>L<
:\ck`Z%%%%%%%%%%%%%%%%%%%%% *  * ?`Y\ie`Xe%%%%%%%%%%%%%%%%%%%'  ( KF;8PËJ;@8IP
Jkfb\j+ D`cc\i-.g\e =ffkYXcc/%',gdlec\jjjkXk\[
?ffg\i)'g\e #*0  <lifgXC\X^l\HlXik\i=`eXc=`ijkC\^
Dfk_\in\cc%%%%%%%%%%% )  ) ;le[\\Lk[%%%%%%%%%%%%%%%'  ( 9\e]`ZXmGJM<`e[_fm\e%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
Dlig_p)- Iljj\cc.0 ;peXdfB`\mm9iX^X%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
?ldg_i\p+( 8kk1*#+*, GfikfmJgXikXbDfjZfn%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
JkD`ii\e%%%%%%%%%%%%%%%%(  * 8Y\i[\\e%%%%%%%%%%%%%%%%%%'  ) M`ccXii\Xcm=:Kn\ek\%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
?`^[fe- DliiXp+.f^
;Xi^f,. D`cjfd0' >FC=
K_fdjfe-/ 8kk1*#+/0 K_\DXjk\ij8l^ljkXEXk`feXc>fc]:clY#8l^ljkX#>\fi^`X %

email sport@cityam.com
30 Sport CITYA.M. 7 APRIL 2011

Rooney and
referee give
Carlo Blues
stoppage time when Ramires burst
CHELSEA 0 into the penalty area only to brought
down by last man Patrice Evra.
It looked a spot kick but ref
MANCHESTER UTD 1 Alberto Undiano Malleco ignored
the appeals, leaving Ancelotti to
bemoan an injustice and question didnt deserve to lose but we have to was it looked like a 50-50.” contest midway through the first
the Spaniard’s character after the change the result at Old Trafford.” Defeat leaves Chelsea needing to half.
▲

FOOTBALL
BY FRANK DALLERES, STAMFORD BRIDGE
CHELSEA manager Carlo Ancelotti
accused the referee of cowardice
after being denied a late penalty in a
defeat that leaves his side facing an
uphill task to keep their Champions
League quest alive.
A first half strike from in-form
striker Wayne Rooney gave
Manchester United the lead but the
home side might have equalised in
final whistle blew on the quarter-
final first leg.
“It was clear. Everyone knows that
was clear,” said the Italian. “The
problem is that I understand it’s not
easy to give the penalty in the last
minute of the game -- you need to
have personality and courage. And I
don’t think referees in general
always have these kind of skills. I’m
disappointed but it doesn’t matter.
This is the result; it is the past. We
United manager Sir Alex
Ferguson, who was incensed at refer-
ee Martin Atkinson’s performance
when his team lost at Stamford
Bridge in the Premier League last
month, had little sympathy for his
opposite number.
“Somebody said it could’ve been a
penalty,” said Ferguson. “If it is I
think it’s the first decision we’ve had
here is seven years, so I don’t feel
guilty about that at all. From where I
win at Old Trafford if they are to
reach the last four of a competition
that remains their most realistic
chance of silverware this season, and
is so coveted by owner Roman
Abramovich.
Rooney, at the centre of negative
headlines since his foul-mouthed
rant into a TV camera at West Ham
on Saturday, was barracked by Blues
fans but cracked a rare smile when
he slotted the only goal of a scrappy
Out of nowhere Chelsea almost
levelled on the stroke of half-time,
goal-less £50m striker Fernando
Torres hitting the post before Frank
Lampard’s point-blank follow-up was
somehow kept out while half of the
stadium were already celebrating.
A Torres header exercised Edwin
van der Sar, but it was not until the
dying seconds that a gap appeared,
when midfielder Ramires broke free
but Evra controversially intervened.
 CITYA.M. 7 APRIL 2011
KEY MOMENTS | A BRIDGE TOO FAR
24 mins: A largely uneventful game was illu-
minated by wonderful goal when Michael
Carrick’s long pass was taken down by Ryan
Giggs and his cross was converted by Wayne
Rooney via the inside of the far post.
45 mins: The post came to United’s rescue on
the stroke of half-time when Fernando Torres
glanced Didier Drogba’s cross onto the wood-
work and Frank Lampard, from six yards, was
unable to force the ball beyond Patrice Evra.
90 mins: Chelsea have been on the end of
some rough Champions League refereeing
decisions in the past and it was the case here
again when Alberto Undiano Malleco failed to
spot Evra’s obvious trip on Ramires.
McDowell relishing Masters spotlight
▲
GOLF
BY JAMES GOLDMAN
RYDER CUP star Graeme McDowell
insists he’s far from daunted at the
prospect of playing the opening two
rounds of his Masters campaign
alongside Tiger Woods.
McDowell, the US Open champion,
played with Woods in the third round
two years ago and was outscored 70-
73, but he has come a long way since
then, while Woods has fallen to sev-
enth in the world rankings.
Indeed, it was only last December
that the American lost a four-shot
lead on the final day of the Chevron
World Challenge in California and
was beaten in a play-off by McDowell.
“I always say to Kenny, my caddie,
when we are out there playing with
him – at Doral (last month) or
Chevron or Shanghai last year – that
this is good practice for when it hap-
pens in the big shows,” said
McDowell, who skipped last night’s
traditional par three warm-up event
in favour of watching his beloved
Manchester United take on Chelsea in
the Champions League.
“It doesn’t get much bigger than
The Masters. I feel like I’ve played
with him enough now to where it’s
pretty normal once you get used to
the whole buzz that surrounds him,
especially inside the ropes.
“I’ve got to go and play my own
game and let him play his game. I
would have been intimidated a cou-
McDowell is the reigning US Open champion
ple of years ago, but nowadays it’s rea-
sonably normal. I was expecting to
get a draw somewhere along those
lines this week.”
This is McDowell’s fourth Masters
and only once has he made the cut,
but he added: “I’m very keen to have a
Picture: PA
great week. I’ve dreamt of putting the
green jacket on my back and I’m defi-
nitely very driven to do the job.
“The more often I come to this
place I feel like my awareness and my
knowledge of this golf course contin-
ues to increase.”
Sport 31
AMEN CORNER |
STATS, CONDTIONS AND BANTER
DAY FOUR FORECAST
HIGH 240
LOW
170
Sunny intervals
THE COURSE
In 2001, the course measured
6,925 yards from the Masters tees.
It was lengthened to 7,270 yards
for 2002, and again in 2006 and
now plays 7,435 yards. There have
been no major amendments this
year but a few subtle changes
including the flattening of some
greens to create new pin positions.
WHO’S NO1?
Martin Kaymer might be the cur-
rent world No1, but victory for any
of his closest rivals at Augusta
could see him overhauled by
Sunday night. Britain’s Luke Donald
and Lee Westwood along with US
Open champion Graeme McDowell
are in range of the German, as are
American duo Tiger Woods and
Phil Mickelson.
QUOTE OF THE DAY
“Poulter’s always right isn’t he?” –
Tiger Woods responds to the
Englishman’s claim that he won’t
finish in the top five this week.
 Forex

Live charts and issuer information

Futures Trade 450+ Futures

450+
Sovereign, Government

Extensive range available

Online research
ETFs

Comprehensive
450+ C
Co
Award winning and Corporate Bonds

mm e Me cies, fts a
Bas urre ats, S
160+ currency pairs, Spot and Forwards Purchase or deposit to your Saxo account
&ETCs

odi tals, Sho nd S

Real-time monitoring of positions
Live pricing 160+ currency

Trade across 23 global Exchanges Diversify

to trade margined products* No hidden fees
Up to 95% value as collateral Trade on Margin
ties Pre rt-T toc
Trade over
on 40 FX pairs, Spot and

Me
n
Forwards 1,000+ ETFs

on ciou erm k In
Options Trade across

Ag
Excellent liquidity
15 major

ricu s Met Intere ices F

Tight spreads
& leverage up CFDs Exchanges Access to 11,000 Stocks

ltur als, st R lexi

to 200 times Trade from
Stocks

al P Bon ate
7,000+ CFDs,
Trade across 16 Indices, 15 major flat fee £8

rod ds, s,
23 global 700+ ETFs, 20 Exchanges Traded and

uct

Bonds
Exchanges Commodities Direct settled like

s, ,
Direct Market Access
0.10% Market traditional stock
Diversify your
Flexibility commission Access
portfolio and
Limits

ble
Competitive pricing, fast executions Stop-Limit spread the risk Trade from flat fee £8
Currency trading on live streaming quotes Research & stock screener
that highlight the exact execution Stops Combine the ease of investing
in stocks with the advantages All from one platform
price upfront Trailing Stops of mutual fund investing Multi Award Winning Trading Platform

Manage your entire portfolio from ONE account.

Forex CFDs Stocks ETFs Futures Bonds

160+ currency pairs,
Spot and Forwards
Live pricing on 40 FX options
Tight spreads & leverage
up to 200 times
Excellent liquidity
7,000+ CFDs, 16 Indices,
700+ ETFs, 20 Commodities
27 global Exchanges
0.10% commission
Direct Market Access
Access to 11,000 Stocks Trade 1,000+ ETFs Trade 450+ Futures 450+ Sovereign, Government
23 global Exchanges 15 major Exchanges 15 major Exchanges and Corporate Bonds
Trade from flat fee £8 Trade from flat fee £8 Direct Market Access Purchase or deposit to your
Saxo account
Research & stock screener Traded & settled like stock Online research
Up to 95% value as collateral
to trade margined products*
Real-time positions update

Transfer your stock portfolio into your account Complex derivative products traded on margin carry
and use up to 75%* for margin trading. a high degree of risk and are not suitable for every
investor. You can lose more than your initial deposit
and you should ensure you fully understand all the
* Subject to acceptable stock or bond and risk rating of the particular stock or bond.
risks involved.

Make the switch today and call 020 7151 2100

2010 or visit us online at www.saxobank.co.uk
Saxo Bank A/S is authorised by Finanstilsynet, the Danish Financial Supervisory Authority.