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Osborne:

Large cutsare coming

GEORGE Osborne yesterday told minis-ters to prepare for the toughest spend-ing cuts in a generation as ratingagency Fitch warned the UK faced a“formidable challenge” in reducing its

yawning £156bn deficit.His comments came as Fitch

warned Britain’s triple-A credit rating was at risk because its public debt hadrisen more quickly than any other

AAA-rated country.Fitch also said the UK had the

largest cyclically-adjusted budgetdeficit in Europe and would have toslash borrowing by a further £92bnover the next five years to avoid a crip-pling spike in interest payments.

Osborne told MPs they would needto rethink the role of the state as hefleshed out plans for a comprehensivespending review to be published in the

Autumn. Treasury officials said socialsecurity payments, tax credits andpublic sector pensions would bear the

brunt of cuts, which could end up being as high as 20 per cent.

A new “star chamber” will quiz min-isters on spending decisions to ensurethey provide good value for money. It

will be staffed by Osborne, his numbertwo Danny Alexander, foreign secre-tary William Hague and cabinet secre-tary Francis Maude

And experts including corporate big beasts like former BP boss Lord Browne

will challenge cabinet ministers, help-ing them follow the example of busi-nesses that have successfully slashedcosts in the recession.

BY DAVID CROW

POLITICS▲

US President Barack Obama yesterday said he would have fired BP’s boss over his comments Picture: REUTERS, Micha Theiner/CITY A.M.

PRESSURE was growing on PrimeMinister David Cameron last night todefend BP, the oil giant that has beenunder constant attack by US politi-cians in the wake of the Gulf of Mexico disaster.

As BP’s share price fell again yester-day closing 4.97 per cent lower at408.9p, President Barack Obamalaunched a scathing attack on thecompany’s chief executive Tony Hayward and said he wanted to know “whose ass to kick”.

Obama also criticised insensitivecomments by Hayward, including anassessment early in the crisis that sug-gested there would be only a modestenvironmental impact from the crip-pled well. “He wouldn’t be workingfor me after any of those statements,”said Obama.

Fears are mounting that BP is beingsingled out for blame in the disaster,

whereas the US firms that shareresponsibility are being let off rela-tively lightly. Investors are concernedthat Obama may yet seek to break upthe UK oil major to gain populist sup-port in the run up to the Novembermid-term elections, or pressure theoil giant into cutting its dividend.

“If US political rhetoric continues, we would like the British governmentto raise a diplomatic ‘red flag’ regard-ing the sanctity of UK incorporated

CAMERON TOLD TOSTAND UP FOR BP

BY EMMA SADOWSKI

ENERGY▲

www.cityam.comIssue 1,151 Wednesday 9 June 2010 FREE

SIR LEAHYCHECKS OUT

TESCO’S CHIEF

LEAVES AFTER 14

YEARS P4-5

OUR SPECIAL GUIDE TOTHE 2010 WORLD CUP16-PAGE SUPPLEMENT INSIDE

BUSINESS WITH PERSONALITY

entities. Such political interference isan issue that has profound implica-tions for all industries, not just the oilindustry,” said Fred Lucas, an analystat JP Morgan Securities.

BP has seen its shares drop by 38per cent since the 20 April explosionof the Deepwater Horizon rig andanalysts estimate £40bn has been

wiped off BP’s market value.Obama said: “There is already dam-

age done to the Gulf Coast and there will be economic damage done that we will make sure BP is responsible

for and compensate people for.” Tony Hayward will testify in frontof the US House Energy andCommerce subcommittee on 17 June.

BP is struggling in the face of whatcould be the worst oil spill in history.Do you think it can recover? Tell uswhat you think by signing up to ourunique panel of London’s business com-munity at www.cityam.com/panel by12pm today.

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News2 CITYA.M. 9 JUNE 2010

Osborne hints at truly radical change

IT was not exactly the most convinc-ing of public relation stunts – and pre-dictably enough, George Osborne’spledge yesterday to engage the publicin consultations on the upcomingspending review in a way which

would “strengthen and unite” thecountry was met with some derision.It is hard to imagine that anybody

who works in the public sector or whois in receipt of subsidies will put theirhands up and volunteer for their life-line to be cut off. Yet Britain’s disas-trously bloated government musturgently be hacked back to a more

affordable size if we are to avoid bank-ruptcy – as even Lord Myners, the for-mer City minister, now admits – andthat will mean making tough andtherefore unpopular decisions.

But there was much in Osborne’sannouncements yesterday that wasactually brave and carefully thoughtout. The best news is that all ministers

will have to measure their spendingagainst a set of tough benchmarks. If these criteria are genuine, and not

just for show, they could trigger areengineering and downsizing of thestate of a kind last seen in the 1980s,rather than merely a random decima-tion of spending across the board. This

would be a much more effective way of reducing the deficit, would ensurethat services are less at risk and couldtransform Britain’s long-run prospectsof achieving a healthy society andstrong economy.

The questions include whetherevery state activity is essential to meetgovernment priorities; whether thegovernment need to fund the activity;

whether it provides substantial eco-nomic value; whether it can be target-ed to those most in need; how it can

be provided at a lower cost and moreeffectively; how it can be provided by a

non-state body or citizens, wholly or inpartnership; how non-state providerscan be paid to carry out the activity according to results; and whetherlocal bodies could be in charge. Thequestions imply that some operationscould be shut down, others privatisedand yet more contracted out.

The problem for the coalition isthat its cuts will be extremely unpopu-lar, regardless of how much “consulta-tion” it engages in. Its only hope isthat the spending reductions createenough space for a private sectorrevival, which in turn would boost thefinancial health and prospects of itselectoral base. But the prospects forthis are not as good as they should be.

Contrary to what pseudo-Keynesianeconomists claim, there is plenty of evidence that fiscal consolidation usu-ally goes hand in hand with economic

recovery, especially when deficits areas gargantuan as Britain’s is today.

There is just one key condition: thedeficit needs to be eliminated viareduced public expenditure – and

especially cuts to current spendingand benefits, rather than infrastruc-ture projects – and not with highertaxes on income and capital, whichare the most damaging of all.Regrettably, the UK is about to hikecapital gains tax, is retaining all of therecent crippling income tax hikes(including the 50p rate) and may wellrestrict tax relief on pensions. Thesepolicies will endanger much of thegood work that Osborne is planning.

Mark Wise of Laffer Associates(founded by the supply-side econo-mist) describes the UK as the canary inthe Keynesian coal-mine. It is startingto look as if Osborne is serious aboutcuts – let us hope he is equally seriousabout creating a pro-growth tax sys-tem that allows the private sector totake the place of the retreating state.

[email protected]

NEWS | IN BRIEF

RBS whittles down shortlistsRoyal Bank of Scotland is closing in onthe sale of £4bn of assets. MorganStanley and Jeffries are understood tobe among the final bidders for RBSSempra Commodities’ North Americanunit, while two consortia led by AdventInternational and TPG are in the last

round for RBS’ card processing opera-tion, Global Merchant Services.

Hedge funds suffer tough MayMay was the worst month for hedgefunds since October 2008, whenLehman Brothers collapsed. The averagevehicle lost 2.26 per cent, according todata from Hedge Fund ResearchInformation, with no strategy endingthe month in positive territory.

Hambro to list iron ore divisionPetropavlovsk, the company formerlyknown as Peter Hambro Mining, isbelieved to be planning a $1bn (£691m)flotation of its iron ore operation on theHong Kong stock exchange. The group,which has its main listing in London, isunderstood to have chosen the FarEastern bourse because its ore minesare located close to the Chinese border.

EDITOR’S LETTER

ALLISTER HEATH

7th Floor, Centurion House,24 Monument Street,London, EC3R 8AJTel: 020 7015 1200 Fax: 020 7248 1729Email: [email protected] www.cityam.com

EditorialEditor Allister HeathDeputy Editor David HellierNews Editor Ben GriffithsNight Editor Katie HopeAssociate Editor David CrowLifestyle Editor Zoe StrimpelArt Director Darren SoulsbyPictures Alex Ridley

CommercialSales Director Jeremy SlatteryDeputy Sales Director Harry OwenHead of Distribution Nick Owen

Editorial StatementThis newspaper adheres to the system of

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Distribution helplineIf you have any comments about the distributionof City A.M. Please ring 0207 015 1230, or [email protected]

City investorsround on Pru

AT LEAST two of Prudential’s top 10shareholders will meet with the com-pany’s directors to demand a changeof management after its failed bid for

AIA, according to a report last night.Legal & General Investment

Management and Fidelity, who between them control nearly eightper cent of the insurer, are under-stood to want a replacement for chief executive Tidjane Thiam, who has

been marked by Prudential’s embar-rassing withdrawal from its $35.5bn(£25bn) pursuit of AIG’s Asian arm.

Along with Schroders, which ownsa smaller slice of Prudential, the pair

will meet with the company’s non-executives next week to make theiranger known, according to Sky News.

Other shareholders with smaller

stakes, including F&C, are known to be unimpressed with Thiam’s han-dling of the aborted transaction. Butmany believe there are no alternativecandidates suitable for the top job atthe FTSE 100 giant.

The news came as MauriceGreenberg, AIG’s former chief execu-tive, described Prudential’s attemptto take over AIA as “a bridge too far”.

Referring to difficulties the Britishoutfit encountered with Chinese reg-ulators, Greenberg said: “It was a

badly thought-out scheme from thepoint of view of Prudential.”

BYOLIVERSHAH

INSURANCE▲

AS US lawmakers hammered out afinal financial regulation bill, contro-

versy emerged last night over the pro-posed “Volcker rule” that would bar

banks from the risky private equity and hedge fund businesses.

White House economic adviserPaul Volcker, in a letter, said he firmly opposed giving banks that make only small investments in hedge funds orprivate equity funds any exemption

from his proposed ban. The letter from Volcker to Senate

Banking Committee chairmanChristopher Dodd emerged as CapitolHill negotiations intensified.

“I absolutely oppose any such mod-ification” of the US Senate’s WallStreet reform bill, Volcker said in the17 May letter to Dodd.

The Volcker rule, widely seen by analysts as eventually becoming law,threatens to reduce trading profits at

big banks, which have fought formonths to kill or weaken it.

BYHARRY BANKS

REGULATION▲

Volcker: Split up all banksWhite House adviser Paul Volcker hit back at efforts to weaken his rule Picture: REUTERS

Prudential boss TidjaneThiam is under fireover his handling of the$35.5bn AIAtransaction

GREECE SEEKS INVESTMENTS FROMLIBYAGeorge Papandreou will travel toLibya today for talks with MuammerGaddafi on possible investments inGreece as Athens struggles with itsdebt crisis. The Greek prime minister

will discuss potential investments by Libya’s sovereign wealth fund and itsstate-owned energy groups with thecountry’s leader, officials said.

EMERGING SPIN-OFFS WEIGH INTOFTSE 100

An African gold mining company andan Indian energy company are set to

become the newest members of theFTSE 100, adding to the growing

weight of emerging markets com-modities companies in the blue chipindex. Last night’s closing prices sug-gest African Barrick Gold and Essar

Energy will replace Thomas Cook andthe London Stock Exchange.

RUSH TO CASH SEES FLOOD OF BONDSALES TO BANK

Banks and investment funds rushedto sell corporate bonds to the Bank of England yesterday as they sought toswitch into the safety of cash andshort-term government bills. Banksand funds tried to sell £507.3m of cor-porate bonds to the Bank of Englandunder a programme designed to sup-port the market for the provision of debt to companies. Analysts said

banks had been seeking to raise cashdue to concerns that the public debtcrisis in the Eurozone could derailthe world economy.

TRIO ACCUSED OF RITZ SALE FRAUD A lawyer and two associates orches-trated a “well-targeted and extremely ambitious scam” in which they fraud-ulently tried to sell the Ritz hotel andcasino in Piccadilly -- which they didnot own -- for £250m, a court heard

yesterday. Conn Farrell, a solicitor,

Patrick Dolan and Anthony Lee wereinvolved in the deal, a jury was told.

CAMERON FACES EU SHOWDOWN OVERBUDGETDavid Cameron faces a showdown

with fellow EU leaders at his firstEuropean summit next week as heresists calls to present his budget toBrussels. The Conservative leader isrefusing to implement the plan beingpushed by Herman Van Rompuy, theEU President, in the first test of hisdetermination to prevent any furtherpowers slipping from Westminster.

FOXCONN TO PASS ON COST OF WAGERISESFoxconn, the Taiwanese company that assembles gadgets for Apple, Delland Sony, said that it would startpassing on to its customers the cost of massive wage rises at its Chinese fac-tories. The announcement came only a day after Foxconn told workers in

southern China it would raise their basic salary by about 70 per cent.

LLOYDS OFFERS 5.4PC CORPORATEBOND FOR SMALL INVESTORSLloyds TSB is to offer a bond payingmore than five per cent for five years –

but savers could get back less thantheir original deposit because the

bond is tradable on the stock market.Lloyds is launching a corporate bond,similar to those normally sold to insti-tutions, but targeted at privateinvestors. The bonds can be boughtand sold like shares via stockbrokers.

BANKING GIANTS REJECT SCOTTISHTAX POWER GRABScotland’s major high street bankshave rejected calls for broad tax-rais-ing powers to be transferred toHolyrood, arguing this would createan “unworkable” administrative quag-mire. The British Bankers’ Associationsaid the costs and burdens of a sepa-

rate tax system north of the borderoutweighed any perceived benefits.

FRANCE OPENS GAMBLING MARKETFrance opened up its online horse-rac-ing and sports-betting industry tocompetition yesterday, relaxing astate monopoly on gambling thattraces back to the 16th century, as itlooks to stabilise tax revenues fromonline bets. The move, timed to coin-cide with the World Cup, is anattempt to crack down on illegal bet-ting websites.

PROPERTY INVESTORS EYE SPAIN While Spain’s financial problemshave shaken up Europe, someinvestors are looking at them as anopportunity. Their hope: some sav-ings banks could begin to dispose of property faster than expected as partof their sudden and furious efforts torestructure. Driving the restructur-ing is the recognition by the govern-

ment and the Bank of Spain thatpotential default is a great risk.

WHAT THE OTHER PAPERS SAY THIS MORNING

8/9/2019 CityAM 09/06/2010


THE CHIEFTAINS of some of the City’smost successful independent stock-

brokers have thrown their support behind City A.M.’s campaign againstthe coalition government’s proposedhikes to capital gains tax (CGT).

Yesterday, Charles Stanley chair-man and ex-Lord Mayor of London SirDavid Howard said he applauded thecampaign, claiming that it would be

an “astonishing” move for the govern-ment to increase short-term CGT rates without the corresponding scal-ing down of tax on longer-term gains.

“Otherwise you are taxing savingstwice, you are undermining theentrepreneurship that the govern-ment seeks to encourage, and you aretaxing the effects of inflation,”Howard told City A.M.. “I think all tax-able assets should be subject to thesame uniform regime of a reducingscale of capital gains, with an addi-

tional boost for entrepreneurship by shortening the timescale for a clearly defined class of business assets.”

Oliver Hemsley, the chief executiveof Numis, also signed up to the cam-paign. “Anything that proves a disin-centive to entrepreneurs risking theircapital should never be counte-nanced by the government,” Hemsley said. “It is such a mistake.”

They join a long list of their peers who have already pledged support,including Panmure Gordon chief TimLinacre, Seymour Pierce boss KeithHarris and Brian Winterflood,

founder of Winterflood Securities.Business big-hitters such as Tullett

Prebon boss Terry Smith, entrepre-neur Luke Johnson, property mogulNick Leslau and private equity veter-an Jon Moulton have also backed City A.M. in calling for an alternativetapering CGT system. Under such asystem, short-term gains would betaxed at 40 per cent, with the ratedecreasing year by year to 30 per cent,20 per cent, 10 per cent and possibly even to zero on gains after five years.

Stockbrokingchiefs backCGT campaign MICHAEL Fallon is set to win the chair-

manship of the influential Treasury select committee (TSC) today, afterattracting significant support fromLabour MPs.

The MP for Sevenoaks has been thedeputy chair of the committee for thelast eight years, where he gained a rep-utation for grilling ministers andother witnesses with tough, insightfulquestions.

Fallon has won the backing of a sig-nificant number of influential LabourMPs, including Andy Love and JohnMann, who both sit on the committee.

And John McFall, the tenacious for-mer MP who chaired the committee

before standing down at the last elec-tion, is also advising Labour col-leagues to back Fallon.

Shadow ministers such as Gerry Sutcliffe and Phil Woolas are also saidto be supportive of Fallon, althoughthey have not made their positionpublic as the shadow cabinet hasagreed to remain neutral.

Yesterday, a senior Labour MP toldCity A.M. they believed Fallon, who first

became an MP in 1983, would be ableto keep the “youthful Treasury teamin check”.

He is up against fellow Tory MP Andrew Tyrie.

Labour MPsback Fallon togrill Treasury

Lord Myners accused Gordon Brown’s team of “flawed thinking” Picture: REUTERS

News 3CITYA.M. 9 JUNE 2010

BYDAVID CROWPOLITICS▲

BYVICTORIA BATES

CITY A.M.

CAMPAIGN

LORD MYNERS, the recently departedCity minister, launched an astonish-ing attack on his former Labour col-leagues’ economic record yesterday.

Backing the coalition govern-ment’s call for dramatic public spend-ing cuts, the peer said: “There isnothing progressive about a govern-ment that consistently spends morethan it can raise in taxation and cer-

tainly nothing progressive thatendows generations to come with theliabilities incurred with respect to thecurrent generation.”

Myners, who earned his spurs atfund manager Gartmore before join-ing Gordon Brown’s team in October2008, said he was frequently frustrat-ed by his fellow ministers’ “flawedthinking” on business matters.

New City minister Mark Hobanseized on the remarks as a “damningindictment” of Labour’s thinking.

Ex-City minister launchessavage attack on Labour

BYOLIVERSHAHPOLITICS▲

8/9/2019 CityAM 09/06/2010


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Focus on Tesco4 CITYA.M. 9 JUNE 2010

TESCO shocked the City yesterday by announcing that boss Sir Terry Leahy would retire in March.

Sir Terry has led the chain for 14 years, overseeing its rise to becomethe UK’s leading supermarket groupand will be replaced by internationaland IT director Philip Clarke.

The chief executive, who will be 55 when he retires, said he would retaina shareholding in the retailer whileconcentrating on “private invest-ment”.

During his reign Tesco has expand-ed its services, offering insurance, broadband internet, credit cards and

child trust funds. Tesco shares dropped by almost

three per cent after the announce-ment. Leahy was expected by many City analysts to stay in the post for atleast another two years.

Leahy, who has shares, options andpension rights worth an estimated£70m in Tesco, said: “When I becamechief executive I had a plan to build Tesco around its customers, to makeit number one in the UK and to findnew long-term growth in non-food, inservices and in international expan-sion.

“It has taken 14 years but that strat-egy has become a firm reality now and so I feel my work is almost com-plete.”

Meanwhile Clarke, who first joinedthe Tesco board in 1998, currently runs the supermarket’s Asian andEuropean operations, as well its IT division.

The 50-year-old is considered a “safepair of hands” by analysts who arelooking at the succession plan. Hesaid he was “honoured and delight-ed” to succeed Leahy. The group hasabout 30 per cent of the grocery mar-ket, making it easily the UK’s biggestsupermarket chain. In the year to theend of February, the company made apre-tax profit of £3.2bn – ten per centup on the previous year. Analyst atHargreaves Lansdown Keith Bowmansaid: “Clarke is seen as a safe pair of hands by the City”.

Leahy checks out of the top job at TescoBY JOHN DUNNE

RETAIL▲

ANALYSIS l Tesco

0

100

200

300

400

500

1996 1998 2000 2002 2004 2006 2008 2010

p

Turnover£13.9bn

Operating profit £774m

Share price 119 pence

UK stores 568

Turnover£57bn

Operating profit £3.4bn

Share price 395 pence

UK stores 2,482

ANALYSIS l Tesco

1997 2009

8/9/2019 CityAM 09/06/2010


Sir Terry Leahyleaves Tesco in good shape

Picture: REX

Focus on Tesco 5CITYA.M. 9 JUNE 2010

Stalwart’s exit is a blow

but shares still good buy AND so the curtain falls on Terry Leahy’s remarkable reign at Tesco.Most investors will be shocked by his departure; the received wisdom

was that Leahy would stick arounduntil 2014, when its troubled Fresh& Easy US venture started to comegood.

His exit is a major loss for the gro-cer, there is no doubt about that.

The company he leaves is virtually unrecognisable compared to theone he joined a decade and a half ago. Tesco’s remarkable expansion– both in terms of products andgeographical location – now servesas a blue-print for how to grow.Currently the world’s numberthree retailer, it has every chance of

becoming number two.Replacement Philip Clarke might

not be a household name, but histime as chief of Tesco International

will serve him well. Compared to itshome-grown rivals, Tesco has a mas-sive global footprint; J Sainsbury and Morrisons haven’t opened any overseas stores in the last three

years – but 65 per cent of Tesco’sfloor space is now abroad.

The effect on the bottom line has been clear: last year, trading profitsin Asia were up by 14 per cent to£440m, on sales of around £9bn.

And there’s much more to come.

Although 65 per cent of floor spaceis abroad, these younger storesaccount for just 23 per cent of sales.

As they approach full profitability over the next five years or so, they

will become the group’s major cashcows.

Clarke’s appointment tells it loudand clear: Tesco is going to becomean international – predominantly

Asian – firm. Depressing as it may be, it is following the likes of Standard Chartered, Prudentialand HSBC in search of Easternpromise. The party in the UK is welland truly over.

With that in mind, Tescodeserves a richer valuation.Currently trading on just around 14times expected earnings in 2011, inline with J Sainsbury andMorrisons, it should now be judgedin the same category as the global

big hitters like Germany’s Metroand France’s Carrefour (both tradeon around 16 times prospectiveearnings). Leahy’s departure was

weighing on the stock yesterday, which closed down 2.4 per cent at397.40p, creating a perfect buyingopportunity.

BOTTOMLINEAnalysis by David Crow

PHILIP Clarke has battled his way tothe top of the company after shelf-

stacking shifts for the supermarket asa schoolboy.The 50-year old has spent his whole

career at the company, which he joined in 1981 as a graduate traineeafter studying economics at LiverpoolUniversity.

Before that he worked as a part-time helper in 1974, getting a ground-ing in the company at the bottom rungof the ladder. He had been a store

manager, a buyer, and a marketerbefore taking charge of IT operations.He joined the Tesco board in 1998, ayear after Sir Terry was made chief executive. In 2003 he was also put incharge of the firm’s international arm.

He pushed through a £958m deal for38 hypermarkets in South Korea in2008 which helped Tesco

increase its Asian profits by 18.9 percent in the last financial year.

Leahy has put international expan-sion at the heart of his strategy for theretailer, with 5.1m square feet of newspace being opened in the last year.

However, Clarke has maintained thatthe key to success overseas is to main-tain a local focus – while not jumpinginto acquisitions too hastily. Tesco’sSouth Korean operation employs just ahandful of Britons out of 20,000 staff.

Clarke said in 2006: "We don't go

round the world planting flags. Whatwe do is look for an opportunity to cre-ate value for shareholders and wherewe have some certainty about that.”

He is married with two children andlives in Hertfordshire – as does Leahy.

Clarke's CV is similar to that of Leahy, who also grew up in Liverpooland worked for Tesco as a boy. Leahy,though, did not go straight into thecompany after university – he started

out at the Co-op after being rejected byTesco.Meanwhile, on a more personal note,

Leahy is an Everton fan while Clarkesupports Liverpool. He has been a non-executive director of leisure groupWhitbread since November 2005.

His salary broke the £1m-mark in2002 when he collected £1.14m. Histotal package last year was £2.7mcompared to £5.2m for Leahy.

PHILIP CLARKE ISTHE MAN TO STEPINTO THE SHOESOF TESCO CHIEFSIR TERRY LEAHY

Terry Leahy, who announced his retirement as boss of British retailer Tesco isthe longest serving chief executive of a top 20 UK-listed company, according toThomson Reuters. Below is breakdown of the others.

Company Value ($bn) Chief exec name In place Full yrs

HSBC 159.4 Michael Geoghegan May 2006 4

Royal Dutch/Shell 158.7 Peter Voser July 2009 0

BP 116.0 Tony Hayward May 2007 3

Vodafone 104.8 Vittorio Colao July 2008 1

GlaxoSmithKline 87.4 Andrew Witty May 2008 2

Rio Tinto 67.4 Tom Albanese May 2007 3

Brit Am Tobacco 61.7 Paul Adams Jan 2004 6

AstraZeneca 61.0 David Brennan Jan 2006 4

BHP Billiton 55.4 Marius Kloppers Oct 2007 2

Lloyds Banking 52.4 Eric Daniels Jun 2003 7

LEAHY LEADS FIELD IN LONG SERVING CHIEFS

8/9/2019 CityAM 09/06/2010


CHLORIDE, the UK power protectiongroup that is being courted by Emerson, yesterday shocked the mar-kets by announcing it has tied up a£860m deal with Switzerland’s ABB.

ABB is offering 325p a share, plusthe payment of a 3.3p dividend, andits bid easily beats an earlier rejectedoffer of 275p a share from the USpower group Emerson.

Although the Chloride board hasagreed the ABB bid, there were stillhopes yesterday that it might betrumped either by a higher offer fromEmerson or by a new entrant.

Chloride, whose technology is usedat Arsenal’s Emirates stadium, saw itsshares storm well above the ABB offerprice, to 343.5p at one point – 19 percent up on the opening.

Even though the ABB offer valuesChloride at a racy 27.5 times future

earnings, Seymour Pierce analyst IanRobertson reckons Emerson couldraise its bid as far as 373p to win con-trol of its bid target.

Emerson was keeping its counsel yesterday, issuing only a brief state-ment to the London stock exchange. The US group said it had noted thedevelopment and would make annannouncement in due course.

Analysts reckon that other UKgroups such as Invensys, MorganCrucible, Cookson, GKN, Melrose and Weir, could attrack overseas bids inthe wake of the interest expressed inChloride.

The Chloride management is likely to be kept on by ABB.

ABB’s chief executive Joe Hogansaid after delivering the takeovernews: “The transaction is in line withour strategy to acquire companiesespecially in areas where power fordemand and automation solutions isconverging.”

ABB pounceswith surpriseChloride offerBYDAVIDHELLIER

INDUSTRIAL▲

SWITZERLAND’S delivery of UBS clientdata to US tax officials has beendelayed after the Swiss lower houserejected the Swiss-US deal to solve atax row, triggering a new parliamen-tary debate.

Yesterday’s last-minute rejection by the main arm of parliament contra-dicts a vote in favour of the deal by theupper house last week, meaning the

two houses will have to try and work out an agreement over a common text before a final vote later this month.

Washington agreed on 19 August2009 to drop tax evasion chargesagainst UBS after Berne promised it would transfer bank details of 4,450US clients of UBS by the end of August,in breach of Swiss bank secrecy laws.

But a Swiss court in January blockedthe data transfer, forcing the govern-ment to bypass the ruling with a legalpatch that requires parliamentary

approval and risks delaying the shar-ing of bank client information beyondthe August deadline.

The lower house’s vote against thedeal is another headache for the gov-ernment, which has struggled to winpolitical support for the deal, seen inSwitzerland as a capitulation to the USto get the country’s largest bank, UBS ,off the hook.

The US had accused UBS of helpingrich Americans hide almost $20bn of untaxed money in secret accounts.

Swiss handover of UBS clientdata delayed by political rowBYHARRY BANKS

FINANCIAL SERVICES▲


ABB’s Joe Hogan surprised the market with his move for Chloride Picture: REUTERS

CREDIT Suisse was behind the bidthat never was –Prudential’s £21bntakeover of AIA –but yesterday itemerged as the lead adviser on a bidthat is more likely to happen. CreditSuisse is the sole adviser to the Swissgroup ABB in its agreed bid forChloride.

The Credit Suisse Chloride bid teamis led by four managing directors,Zachary Brech, Vikas Seth, LaurentBouvier and Marco Illy. Brech waspart of the Credit Suisse team advis-ing the UK government on the recapi-

talisations of the Royal Bank of

ZACHARY BRECH

CREDIT SUISSE

Scotland and Lloyds Banking Groupdeals which put the bank at the top of the advisory league table for UK M&Athis year, according to Dealogic. Healso advised Resolution on its £1.9bnoffer for Friends Provident, ApolloGroup on its $483m purchase of BPPand Permira on its $369m acquisitionof Just Retirement.

Chloride is being advised by PhillipRobert-Tissot of Citi and by ChrisTreneman of Investec, while Greenhill’sBrian Cassin advises Emerson. All eyeswill be on Cassin to see where

Emerson goes next. David Hellier

VIKAS SETH

CREDIT SUISSE

8/9/2019 CityAM 09/06/2010


8/9/2019 CityAM 09/06/2010


THE European Union says it willpress ahead with its own bankinglevy after the world’s top economiesfailed to agree on taxing an industry seen as a main culprit behind theglobal economic meltdown.

Finance ministers finished talks yesterday to tackle bloated publicdebts with a promise to find a way of taxing banks more, days after a meet-ing of the Group of 20 countriesditched such an idea.

“The G20 was a setback. But not forEurope. We still want this and willcontinue to advocate it – the soonerthe better,” said Austrian financeminister Josef Proell.

German deputy finance minister Joerg Asmussen warned of growingimpatience among voters at a lack of progress in calling bankers to heelafter the crisis. “Over and above the

bank levy, we should introduce afinancial transaction tax. We will try to reach a global consensus but if thatis not possible, we ... should move for-

ward in Europe.” The EU’s plans came as Germany

was yesterday accused of “mislead-

ing” other European Union countries by using unusual arithmetic topledge €80bn (£66.5bn) of headline-grabbing austerity cuts yesterday.

Berlin said it would shave the fig-ure from public spending by 2014 toset an example to heavily indebtedneighbours such as Greece andPortugal. After a meeting of the 27 EUfinance ministers, chancellor AngelaMerkel said the “unique effort”

would include up to 15,000 job lossesin Germany’s public sector.

But analysts at Fortis Bank saidGermany was using peculiar account-ing, factoring in reductions in bor-rowing each year that would come asa consequence of modest cuts, toarrive at the €80bn figure. For exam-ple, a first tranche of €11bn of cuts in2011 appeared to have been re-count-ed each year on the basis of a lower

borrowing requirement to give a totalcut of €44bn over four years.

Nick Kounis, chief economist atFortis, told City A.M.: “ €80bn is a mis-leading number. Because they meas-ure the increase in debt cumulatively that would have occurred if they hadnot put this into place over a numberof years, it’s not only double counting

but triple counting.”

EU goes ahead

with plans forbank tax levy

SPANISH public sector workers stageda one-day protest at planned wagecuts yesterday, in a move to test

whether unions will be able tomuster a full-blown general strike.

Civil servants banged drums andchanted anti-government slogans in astand against a five per cent salary reduction this year, to be followed by

a pay freeze in 2011. Madrid is tryingto save €15bn (£12.4bn) in order to bring down the country’s budgetfrom 11.2 per cent of GDP to 9.3 percent this year, and then to six percent next year.

Prime Minister José Luis RodriguezZapatero’s socialist government seesthe measures as essential for kick-starting Spain’s beleaguered econo-my. It plans to push them throughunilaterally if unions cannot reach

agreement with management. Thecountry has 2.6m public sectoremployees, although only 16 per centof workers from both the public andprivate spheres are unionised.

Carlos Berrera from the University of Navarra said the action was “with-out a doubt a marketing exercise togauge support for a possible generalstrike”. But union leader CandidoMendez said: “We don’t triggerstrikes. We just convene them.”

Spanish unions test appetitefor unrest with one-day strike

HUNGARY’S Prime Minister vowed tointroduce a flat income tax and a tar-iff on banks, cut public pay and banforeign currency mortgages as hestrove to reassure investors he couldcontain the budget deficit.

After sweeping an April election with a two-thirds majority, ViktorOrban unveiled a programme depart-ing from that of the previous caretak-er socialist cabinet that cut spendinglast year after narrowly avoiding eco-nomic meltdown in 2008.

Despite warnings his centre-rightFidesz party’s pro-growth strategy

could undermine Hungary’s pledgesto cut its budget deficit under a €20bn (£16.6bn) international aidpackage, Orban said boosting jobsand output were key to economicrecovery.

Struggling to win back market con-fidence after Fidesz officials rattledinvestors by warning of a Greek-styledebt crisis last week, Orban said he

would enact a flat 16 per cent incometax over two years, effectively cuttingthe rate. He said his government

would cut taxes to small and mediumfirms and ban foreign currency mort-

gage lending. Those loans have been acrucial driver of Hungary’s economy.

Hungary to punish banks and banhome loans in foreign currencies

BYOLIVER SHAH

ECONOMY▲

ECONOMY▲

BYOLIVER SHAHECONOMY

▲

Sovereign Debt Crisis 9CITYA.M. 9 JUNE 2010

8/9/2019 CityAM 09/06/2010


LEGS ELEVENSpeaking of snatching your opportu-nities with the upcoming footy,accountancy giant Deloitte is anotherone to have it licked. Browsing idly onthe firm’s website yesterday, TheCapitalist chanced upon a link to theDeloitte Fantasy Football League –complete with national, regional andlocal office leagues for the firm’s staff all over the world.

I hear that Deloitte is also beingcanny in “suggesting” a £10 donationfrom its staffers taking part, to go intothe sizeable pot to be donated to itsthree corporate charities Help forHeroes, Cancer Research andChildren with Leukaemia.

So far, over 1,000 eager players havesigned up, in the hopes of winningoffice bragging rights and/or someswanky prizes, including corporatehospitality tickets to Premier Leaguegames, signed England memorabiliaand a replica World Cup trophy.Prizes for the most innovative team tosign up so far include sports businessgroup head Dan Jones, in charge of the firm’s annual review of footballfinance, with a team of past and pres-ent Man U players entitled “Republicof Mancunia”.

Mind you, The Capitalist is sure he’llhave a run for his money from a cer-tain lady staffer whose “Legs Eleven”squad is based solely on how good theplayers look in their shorts…

BEER FESTIVALRegular readers may recallthat Old Spitalfields Market iscurrently searching for whatmust be the best unpaid rolein the City – that of offi-cial “ale taster” for

London.I hear that the mar-ket has now whit-tled down thecandidates to ashortlist of justsix, who will gohead to head at anale tasting competi-tion at 1pm today in themarket.

This is not a job to be takenlightly, the organisers assure us– jobs include spending a week-ly “beer budget” on drinking inLondon pubs and reporting back on a blog. Hmmm. For the pure-ly recreational drinkers outthere, the market is today alsohosting a mini beer festival tocoincide with the competition,open between 9am and 3pm andoffering free samples of local ales

to the connoisseurs of the City. Just watch out for the stampede.

BLOWOUT LUNCHRoll up, roll up – the chance to bid forthe world’s most sought-after corpo-rate lunch has come round again.

Warren Buffett, the BerkshireHathaway chief and “Sage of Omaha”investment guru, is once again auc-tioning himself off for homeless char-ity Glide Foundation – at which the winning bidder and up to seven hang-ers-on will have the chance to dine with him at a steakhouse in New York.

The auction, which closes in theearly hours of Saturday morning UK time, has a minimum bid of $25,000,though beads of sweat must have been forming on our Buffett’s fur-

rowed brow on Monday, the first day of the auction, when it took 14 hoursfor the first bid to come in.

That’s all changed now, with thegoing price last night standing at$81,100 after 28 bids. But it’s likely togo much higher – last year, Toronto wealth manager Salida Capital won

with a $1.68m bid, and therecord is $2.11m, profferedin 2008 by Hong Konginvestor Zhao Danyang.

GOING FORBESPOKEIt’s cutting shears atdawn for the tailors of Savile Row, who areup in arms aboutsuitmaker MossBros’ latest ventureinto bespoke tailor-

ing, “Moss Bespoke”.“This is several thou-

sand miles from bespoketailoring,” spits Mark Henderson, chair of theSavile Row Bespoke

Association, who describesthe bespoke suit as “anindividual, hand-cut pat-

tern and a garmentindividually madeagainst that pat-

tern, under the guidance of aMaster Cutter”. Ouch.

FORGET SOUTH AFRICA; THE WORLDCUP IS COMING TO BISHOPSGATEROYAL Bank of Scotland has clearly been keeping an ear out for all thesage words of wisdom dropping fromthe sky over the World Cup.

The four-yearly event is one of themost sought-after corporate hospital-ity gigs in the calendar, but RBS,mindful of that taxpayer bailout itreceived during the crisis, isn’t biting.

Instead, the bank has decided toconvert one of the larger hallways at

its Bishopsgate HQ into a purpose- built “stadium” for investment bank-ing staff and clients to watch thegames, complete with coveringcanopy, indoor pitch and giantscreens.

As many as 3,000 lucky individuals will be invited to watch the games inthese salubrious surroundings, which RBS said were more “cost-effec-tive” than ferrying everyone out to

South Africa for the real thing. I’ll say. They’re also using the occasion to

run fundraising activities for chil-dren’s charity Sparks, thereby neatly ticking all three of the required boxes: philanthropy, keeping the costof the whole operation to a palatablelevel, and avoiding staff mutiny over whether or not to allow the watchingof games in the office.

Tick, tick, tick.

Here’s hoping RBS’s “football stadium” screens will be larger than this Pictures: REUTERS

The Capitalist10 CITYA.M. 9 JUNE 2010

EDITED BY

VICTORIA BATESGOT A STORY? [email protected]

Fancy bidding for lunch with Buffett?

8/9/2019 CityAM 09/06/2010


8/9/2019 CityAM 09/06/2010


Economic News12 CITYA.M. 9 JUNE 2010

EUROPEAN leaders are committed toensuring the survival of the euro andhave enough money to meet obliga-tions of heavily indebted membercountries, Federal Reserve chairmanBen Bernanke said yesterday.

In remarks to the Woodrow Wilson

Centre in Washington, Bernanke saida euro stabilisation package of nearly

$1 trillion was “a lot of money” andenough to protect Greece, Portugaland Spain from volatile credit mar-kets for a number of years.

But he acknowledged thatinvestors were not yet convincedEurope’s debt problems would beresolved, and said more Europeanrescue money may be needed.

Bernanke also said that the US

economy appeared to have enoughmomentum to avoid a double-dip

recession, pointing to strengtheningconsumer and business spending. Henoted the pace of recovery was mod-erate considering the depth of therecession.

Meanwhile Federal Reserve mem- ber Charles Evan said interest rates will stay low for “quite some time”.Evans reiterated the Fed’s pledge tokeep rates low for “an extended peri-

od”, which he said meant about sixmonths to him.

Bernanke: Europe is committed to euro

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THE growth in shop prices lostmomentum in May as consumer

uncertainty forced retailers to keepprices low, according to the latest survey from the British RetailConsortium (BRC).

Overall annual shop price inflationfell to 1.8 per cent last month com-

pared to two per cent in April despite big rises in some costs. Transportcosts are still being pushed up by pastrises in the price of oil, while interna-tional shipping prices are up over a

third and cotton prices are up 40 percent on a year earlier.But Stephen Robertson, director-

general of the British RetailConsortium (BRC), said: “Clothes andelectricals are cheaper than they were

last year, as retailers hold prices downin the face of customers’ reluctanceto spend.”

However, while non-food inflationslowed to 1.6 per cent in May from

two per cent in April, food inflationrose to 2.2 per cent. This is, however,expected to ease in the comingmonths as recent falls in commodi-ties, such as wheat and coffee, have yet to work through to shop prices.

Shop price inflation fallsBY JESSICAMEAD

RETAIL▲

GERMAN industrial production roseat a slower rate in April but managedto build on March’s bumper 4.3 percent monthly increase, boosting opti-mism among analysts about the out-look for the German economy in spiteof the ongoing sovereign debt crisisand the latest austerity cuts.

The increase in industrial produc-tion was driven by intermediategoods, energy and, once again, by theconstruction sector. As expected, con-struction continued its catching upsince the winter dip, increasing 2.6per cent.

ING’s Carsten Brzeski said: “Withfilling order books, the weak euro, business expectations back at pre-cri-sis level and increasing recruitmentplans, the near term future for theGerman economy looks bright.”

“Even yesterday’s austerity packageshould hardly have a lasting impacton economic growth. Of course, atsome point, the ongoing sovereigndebt crisis will very likely also take itstoll on the German economy. But thisis for later. For the time being,German industry is running ahead atfull speed,” he added.

There was some mixed news, how-ever, with the net trade figures for April. German exports fell by 5.9 percent on the month but imports fell ata faster pace of 7.3 per cent, goingsome way to offset the 11.4 per centsurge in March. This meant that theseasonally-adjusted trade surplus widened slightly to €13.1bn (£10.84)from €13bn in March.

The expectation is that Germanexporters should continue to benefitin the future from the weak euro and

the uptick in global demand. As aresult, the government’s austerity package should have little impact onexports, which are dependent onoverseas demand.

Good newsfor Germanexporters

LABOUR market conditions contin-ued to improve in May but growth inthe number of permanent hires fellfor the second consecutive month,the KPMG/REC Report on Jobs willshow today.

The survey said that higher staff appointments were underpinned by afurther improvement in demand forstaff during May. Recruitment consul-tancies indicated that growth of vacancies was strong, albeit marginal-ly slower than in April. Wages andsalaries also continued to increase forthe seventh month running.However, growth eased from thetwenty-five month high in April.

However, while the figures weregenerally positive, there was concernabout the outlook. Kevin Green, chief executive of the Recruitment &Employment Confederation (REC),said: “We remain concerned aboutthe overall employment outlook aspublic sector recruitment freezesstart to bite.” He added: “With feweropportunities in the public sector and jobs growth in the private sectorimproving only very slowly, predic-tions of a jobless recovery are lookingmore likely.”

Bernard Brown, partner and headof business services at KPMG, saidthat the figures suggest that hiringactivity in the public sector has start-ed to slow down.

The Manpower EmploymentOutlook for the third quarter, out yes-terday, held steady with a net balanceof one per cent of firms planning tohire staff between July and September.“The impact of government-imposedspending cuts on both public sector

departments and private sector out-sourcing is casting a shadow over theUK’s gradual recovery,” said Mark Cahill, Manpower UK’s managingdirector.

Job hires upbut outlookis less rosy

GOLD hit a record dollar high above$1,250 an ounce yesterday and new peaks in other currencies as concernover Europe’s economic outlook liftedrisk aversion, knocking stock marketslower for a third session.

Fears grew over prospects for aEuropean economic recovery after

ratings agency Fitch warned the UK faced a “formidable” challenge in

plans to cut government borrowing.Spot gold rose as high as $1,251.20

an ounce. US gold futures for Augustdelivery hit a record $1,254.50. Euro-priced gold also hit a record €1,050.86an ounce, while gold priced in sterlingand Swiss francs hit all-time highs of £870.63 an ounce and 1,450.40 francsan ounce respectively.

The precious metal, up around 12

per cent in the latest quarter, is bene-fiting from Eurozone debt fears.

Gold reaches record highCOMMODITIES

▲

Food prices are still rising Picture: Micha Theiner/City A.M.

BY JESSICAMEAD

UK ECONOMY▲

BYHARRY BANKS

ECONOMY▲

BY JESSICAMEAD

EUROPEAN ECONOMY▲

8/9/2019 CityAM 09/06/2010


UK operators are queuing up tocash in on Apple’s latest gadget.

Within hours of Steve Jobsunveiling the new iPhone 4, UK operators Vodafone and O2 con-firmed they will both offer dedicat-ed price plans for the handset.

O2 will give its customers a limit-ed special offer to upgrade theirexisting deals to the new iPhone.

UK chief executive of O2 RonanDunne said: “Apple has once againraised the bar with the iPhone 4.

“With three years’ experience inselling the iPhone we are wellplaced to support the new device

with the best overall experience,including making it easy for new and existing customers to get theirhands on one.”

Vodafone, which began stockingthe iPhone for the first time in

January after missing out on theoriginal contract to a last-ditch O2deal, will also offer a dedicatedpackage.

Vodafone is desperate to main-tain the momentum it has built upon the iPhone after it shifted a stag-

gering 100,000 in the first week onsale.

Orange – newly merged with T-Mobile – is expected to announce adeal for the handset soon.

The iPhone 4 will be released inthe UK on 24 June and is expected tocost £199 for the 16GB model and£299 for the 32GB.

It is made of glass and steel, withan HD screen offering four timesthe resolution of its predecessor. It

boasts a staggering 300 hours of stand-by battery life, with 40 hoursof music play, or seven hours of talk time between charges.

Operators in a raceto offer iPhone dealsBY STEVE DINNEEN

TELECOMS▲

FOR MORE NEWS

www.cityam.com


CITY VIEWS: ARE YOU FED UP WITH THE CONSTANT iPHONE UPGRADES?Interviews by Zhora Moledina

“I find it very useful especiallythe map and the GPS.I don’t think peoplewill get fed upwith upgradesbecauseinformation

technology isalwaysgoing to beuseful.”

RUSSELL HARRISON |NATWEST PRIVATE BANKING

“I am very happy. I don’t feelpressured at all because I amsatisfied with all theexisting applica-tions, there isnot really anyneed to keep

upgradingbecause thephone is bril-liant itself.”

FABIEN HUESO |LLOYDS BANKING GROUP

“I suspect the iPhone will besuperceded by some othertechnology. I am notinterested in it andthe number of people like myself will grow because

the people wholike italreadyhave it.”

JONATHAN COATMAN |QBE INSURANCE

The new iPhone,unveiled yesterdayby Apple boss Steve

Jobs, is being billedas the best phoneever.

Picture: REUTERS

8/9/2019 CityAM 09/06/2010


JEROME Kerviel faced judges yesterday as a long-awaited showdown beganover his part in a €4.9bn (£4bn) trad-ing loss that brought French bank Societe Generale close to collapse.

The 33-year-old trader, dressed in adark suit, white shirt and a light, thin-ly striped tie, yesterday described his“extreme” trader past on the first day of his long-awaited trial saying that he worked from 7am to 10pm, bank holi-days included, with only a brief break

to eat a sandwich at his desk.“At certain times it was extreme ...

Tiring, physically,” Kerviel said as hedescribed his job as trader at SocieteGenerale from 2005 after risingthrough the ranks of “middle-office”and assistant roles at the bank.

Kerviel, who could face five years in jail and a €375,000 fine if found guilty of charges of breach of trust, computerabuse and forgery, declared his cur-rent profession as “consultant” and hismonthly salary as €2,300.

The trial will dredge up uncomfort-able memories for SocGen as it tries torestore investor confidence in anatmosphere of fragile economic recov-ery and looming tighter regulation. Although Kerviel has admitted to building up unauthorised tradingpositions leading up to the loss in2008, he has said breaches in SocGen’srisk control system were tolerated, andthis has been a key part of his legaldefence.

SocGen has hit back by saying heacted alone and that investigatingmagistrates had already dismissed his

claims of tacit complicity from his bosses. The bank said before the trialthat it holds Kerviel entirely responsible and called for an “exemplary pun-ishment”. Facing off in the trial aretwo of Paris’ best-known lawyers –Metzner and Jean Veil. Cigar-smoking barrister Metzner’s clients include ex-Panama dictator Manuel Noriega, ex- Vivendi boss Jean-Marie Messier andformer French Prime MinisterDominique de Villepin. The trial is dueto run until 25 June.

Trial of roguetrader Kervielbegins in Paris

THE London Stock Exchange (LSE) yes-terday said it was to take on Europe’stwo dominant derivatives exchanges within a year, to broaden its footprint beyond its traditional share trading base.

Eurex, controlled by DeutscheBoerse and Liffe, part of transatlanticexchange NYSE Euronext, has longdominated exchange traded deriva-tives in Europe.

“We are on track, within the nextnine months to offer a credible alter-native to our two establishedEuropean competitors,” LSE chief executive Xavier Rolet said at theannual derivatives conference.

Rolet seeks to exploit regulatory momentum blowing in his directionas the European Union sets toapprove sweeping new rules over thecoming months in a bid to learn

from the financial crisis.Policymakers are planning to pushmore trading in the vast $615 trillion(£427 trillion) over-the-counter (OTC)derivatives sector onto exchanges toincrease transparency and cut risk after the sector’s key role in thedemise of two banks, LehmanBrothers and Bear Stearns.

Such changes raise the prospect of huge new revenue streams forexchanges at a time when margins inequities trading are being squeezed.

LSE to take on

Eurex and Liffe

in derivatives

Jerome Kerviel faces five years in prison if he is convicted. Picture: REUTERS

BYHARRY BANKS

COURTS▲

FINANCIAL MARKETS▲


8/9/2019 CityAM 09/06/2010


Trevor Steven tells us hisWorld Cup experiences

Team-by-team profile | PULL-OUT WALLCHART | Where to watchTeam-by-team profile | PULL-OUT WALLCHART | Where to watch

How England can bring thetrophy home By Ray Parlour

Trevor Steven tells us hisWorld Cup experiences

How England can bring thetrophy home By Ray Parlour

8/9/2019 CityAM 09/06/2010


8/9/2019 CityAM 09/06/2010


World Cup 2010 3CITYA.M. 9 JUNE 2010

S TILL, t this day, he’s the only Englishplayer ever to win three leaguechampionships in three differentcountries. He’s won two league

titles, an FA Cup, a European Cup WinnersCup and has also scored the 1,500th goalfor England.

Yet, despite a trophy-laden career, span-ning 17 years, nothing, he insists, will evercompare to playing in a World Cup.

Under the directorship of the late SirBobby Robson, Trevor Steven representedthe Three Lions in two World Cup finals,in Mexico in 1986 and then Italy 1990,thus earning his place in football folklore.

Steven was one of the wounded elevenon the day Diego Maradona eliminatedEngland in ‘86 with that infamous ‘Handof God’ goal and was the next scheduledpenalty-taker in that equally-heartbreak-ing shoot-out defeat against Germany four

years later.Now, World Cup time has come round

again, and Steven can’t help but reminisceon the glory days.

“There’s just nothing like the WorldCup,” said the City.A.M columnist. “It’s every young boy’s dream. I was lucky enough to win lots of championships and etch my name in the record books but the WorldCups will always overshadow everything.

“Just to be there was a dream, but I’mproud to have taken an active part and feellike I’ve contributed in two World Cups. We got to the quarter finals and then thesemi-finals and both eliminations werehard to take. It was certainly a case of what might have been.”

Twenty-four years on, Steven still hasn’tforgiven Maradona for his handball goal,inset, which sealed a 2-1 quarter-final vic-tory, but the former Everton wide man welcomes his place in the archives.

“It was such a long time ago but, yes, it was foul play and you’ve got to have some bad feelings towards Maradona and Argentina,” he stated. “Up to that point I’dnever really considered [Maradona] to be acontroversial figure but he’d certainly become one after that.

“On a personal level it was great to say I was there but we lost and were denied the victory as well. It was reported as the Handof God and it was all a little bit difficult totake because we were on our way home

You’re fulfilling every young boy’s dream

HOW ENGLAND FARED IN

BY JON COUCHWORLD CUPS GONE BY

England legend Trevor Steven reliveshis World Cup memories to Jon Couch

because of it. It changed the game, we hada really good chance up to that point.”

Four years later in Rome, Steven’s WorldCup dreams were shattered again, thistime at the semi-final stage. On as a sec-ond-half substitute for Terry Butcher in anew-look formation, Steven led theEngland recovery. Gary Lineker’s equalisersent the game into extra time and afterChris Waddle hit the inside of a post,England’s fate was to be decided by thelottery of penalty kicks.

“If Chris had scored and we’d goneahead then, they wouldn’t have caughtus,” he recalled. “We were all hyper- ventilating, trying to catch our breath, there was no time to assesshow we were feeling.

“All the two years of qualifi-cation, the preparation, camedown to a penalty shoot-out.Peter Shilton didn’t get any- where near their penalties butours, in the main, were justscraping in.

“I was due to have the nextpenalty and I have no idea how I would have coped with it. Iscored 25 out of 28 for Everton, but I could have been a hero ora villain. There must have been amillion thoughts in those 50 yardsfrom halfway line to penalty spot.”

Since then, England have suffered two

further eliminations from shoot-outs, to Argentina in 1998 and Portugal in 2006, so with that dreadful experience in mind,Steven is just praying Fabio Capello’sEngland don’t experience the same hell

this time round. “We have had some fan-tastic footballers, but somehow they’vehad a better mentality than we have from12 yards,” he admitted. “I just really hope we don’t have to go through that again.”

1966 - WINNERSThat memorable day – 30th July,1996 at Wembley Stadium when aGeoff Hurst hat-trick and Martin

Peters goal saw England beat WestGermany 4-2 after extra time tohold aloft the Jules Rimet Trophy.

1970 - QUARTER-FINALSGoals from Alan Mullery and Petersput England 2-0 up in their quarter-final clash in Leon, but the FranzBeckenbauer-inspired Germansexacted sweet revenge to win 3-2after extra time.

1974 - DID NOT QUALIFYA desperately disappointing 1-1home draw with Poland in their finalqualifying round in October 1973meant England failed to qualify –

just seven years after winning it.

1978 - DID NOT QUALIFYAn away defeat to Italy meantEngland crashed out again at thequalifying stages, this time on goal

difference.

1982 - SECOND ROUNDGot through to group stges withthree wins from three, but 0-0draws to Germany and hosts Spain

meant Ron Greenwood’s Englandfailed to negotiate the second roundstage.

1986 - QUARTER-FINALSSir Bobby Robson’s men were elimi-nated by the best and the worst of Argentina’s Diego Maradona. First amesmorising goal, beating off sixchallengers, then the ‘Hand of God’,to complete a controversial 2-1 win.

1990 - SEMI-FINALSKnockout victories over Belgiumand Cameroon took England to thelast four, but penalty misses fromStuart Pearce and Chris Waddlebroke England hearts.

1994 - DID NOT QUALIFYDisappointing home draws toNorway and Holland saw Englandcrash out again and lead to the

sacking of coach Graham Taylor.

1998 - SECOND ROUNDAfter David Beckham’s harsh send-ing off and Sol Campbell’s controver-sial disallowed goal, England were

taken to penalties by Argentina, butmisses by Paul Ince and David Battyled to more heartache.

2002 - QUARTER-FINALSRonaldinho’s speculative 40-yardfree-kick over the head of DavidSeaman completed a 2-1 victory forBrazil as Sven-Goran Eriksson’s lack-lustre England squandered MichaelOwen’s early lead.

2006 - QUARTER-FINALSMore penalty woe as Portugal heldEngland to a 0-0 draw after WayneRooney was sent off. Lampard,Gerrard and Carragher missed thevital spot-kicks this time.

2010 - ????????Nine wins out of ten qualifyingmatches have given Fabio Capello’smen a sound base, but can they end

44 years of hurt?

Steven played in twoWorld Cups for England, Mexico in1986 and in Italy four

years later.

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ENGLAND

Put your faith inFabio, with thislot, we’ll go closeCapello’s men have the strength in depth to goall the way, says ex-Arsenal and England ace

IN Fabio Capello we trust. TheItalian is the ideal man to leadthe England charge in South

Africa. He believes we have achance, and that’s good enough forme, now it’s up to the nation to sharethat belief.

Man for man, this is our best chanceof success for many a year. At his dis-posal, Capello has agility in goal, solid-ity at the back, invention and pace inmidfield and goals up front.

I’ve been involved in many a suc-cessful side, both domestically for

Arsenal, and for England, and firmly believe that this could well be our year after so many years of hurt.

Here is my run-down on theoptions available and the strengthsand weaknesses we possess:

BETWEEN THE STICKS

Still not our strongest area, but thefact that all three goalkeepers have

reasonable first-team claims adds tocompetition and that can only behealthy.

If you look at Spain, they havePepe Reina as their third-choice, andhe’s one of the best keepers in thePremier League. Even the UnitedStates have three decent keepersfrom our top-flight.

If you’re going on form, then JoeHart is the man. He’s had a fantas-tic season for Birmingham, whileDavid James and Robert Greenhave both had it tough this yearfor Portsmouth and West Hamrespectively.

But I can’t help thinking back to when Steve McClaren threw inScott Carson for the vital qualifi-er with Croatia in 2008. He

buckled on the night and disap-peared out of contention. I’d

hate that to happen to a talent-ed young keeper like Joe Hart if

EXPERT VIEW

RAY PARLOURExpected line-up: 4-4-2 The alternative: 4-2-3-1

David James David JamesSteven Gerrard

Ashley Cole

Glen Johnson

John Terry

Ledley King

Glen Johnson

Ashley Cole

Aaron Lennon

Joe Cole

Ledley King

John Terry

Steven Gerrard

Aaron Lennon

Gareth Barry

Frank Lampard

Frank Lampard

Gareth Barry

Wayne Rooney

Wayne Rooney

Emile Heskey

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World Cup 2010 5

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thrown into the deep end.For that reason, James has to given

the start against the USA onSaturday. He’s a cool andexperienced head for the big occasion, and as this will surely be his lastmajor tournament, it’sthe perfect final bow.

AT THE BACK The back four

have comeunder scruti-ny after ana w k w a r d w a r m - u p

campaign, but I’msure oncean under-standingis built,this won’t

be Capello’s biggest con-cern when

he looks athis squad.Sure, the

loss of RioFerdinand is a

massive blow, but itneedn’t be the end

of the world giventhe quality of player we have tostep into the breach.

Rio is a fantas-tic player and, of course, any team will misstheir skipper, but

when one doorcloses, another one

opens, and in Michael Dawson, Fabiohas a confident young defender, bangin form and desperate for a chance toimpress.

I would have picked Dawson initial-ly given the season he’s had with

Tottenham, yet he still falls behindhis Spurs team-mate Ledley King and

Jamie Carragher in the pecking order,and on a par with West Ham’sMatthew Upson.

If Ledley’s knee holds up, he’s oneof the best defenders in the Premier

League and has to be the No1 con-tender to partner John Terry in thecentre of defence.

Unfortunately, you get the feelingthis will be King’s last tournament, soI just hope his knee can last the dis-tance and pull out the stops.

Carragher is a good, solid profes-sional, whose decision to come out of retirement would have been a mas-sive boost to Capello. Equally comfort-able at right back or in the centre,he’s the perfect guy to have aroundand I can see him playing a big part inSouth Africa.

Ashley Cole is, in my opinion, the best left-back in the world and anailed-on starter, while Glen Johnsonshould get the nod to start on theright.

Both of these guys love to get forward, but while Cole is equally effec-tive bombing down the left or asdefensive cover, Johnson is not the

best defender in the world.Capello will be drumming it into

these guys to make the right choicesin when to go forward and when totuck in and cover whenever the otheris more advanced.

CENTRE OF THE PARK The options open to Capello here areendless, but the key factor here is the

fitness of Gareth Barry. Barry’sdefensive mind is crucial tofreeing up Steven Gerrardand Frank Lampard andgives England balance.

Barry misses out againstthe USA on Saturday, whichis a blow, but in MichaelCarrick, Capello has agreat passer of a ball

who is used to the big-game atmos-phere withM a n c h e s t e rUnited. He would

be an idealreplacement.

Lampard isCapello’s littlegem after a

brilliant sea-son withC h e l s e a .

There’s been a lotof hype about whether he

and Gerrard can play together, but,for me, it’s just that, hype. A Barry-type figure may give them more free-dom, but they are quality individuals,

playing at their peak of their careers,so parting them is not a necessity should Capello find his options limit-ed.

Capello seems to be looking atplaying Gerrard just off the left

flank, and that’s not such a bad thing. With

Ashley Cole back-ing him up on

the overlap,Gerrard hasthe free-dom to cutin and

cause the kind of damagehe does for Liverpool.

Having a right-footer onthe left is not such a badthing. I remember at Arsenal, both MarcOvermars and RobertPires were right-footers

playing on the left,and, if anything, it

gave the side extra options.In contrast, the right side should

offer more width with Aaron Lennon,for me, the most likely starter.

Lennon’s had his problems withinjury this season, but his pace is aconstant threat and his final ball hasimproved no end under Harry Redknapp at Spurs.

All of these, however, will be awareof a certain Joe Cole, left, pushing fora starting place. He’s been England’s

best player in the last two warm-upgames and has the added advantageof his versatility, given he can play right, left, centre or as a supportingstriker.

Joe’s been unlucky for starts atChelsea this season, but has shown agreat attitude in working his way intothe reckoning. The only question is,

where do you play him?

UP TOP Arguably, he is the most criticised of England’s 23-man party, but EmileHeskey’s contribution in South Africa

could be key to England’s chances. Yes, Peter Crouch and Jermain

Defoe have better scoring records, butHeskey has the knack of bringing outthe best in Wayne Rooney, main inset,and that has to be Capello’s number

one priority as an attacking force.Rooney is different class and ourgreat hope and without him firing onall cylinders, there is none.

While there is the option of playinga Gerrard or a Joe Cole just behind,it’s imperative we give Rooney asmuch support as possible and youcan be assured Capello will be sayingto Heskey ‘work your socks off for 60-65 minutes’ before thinking of hisnext move.

Rooney’s temperament has comeunder scrutiny also in the run-up tothe World Cup, but I think it’s a cru-cial facet of his game.

Denis Bergkamp had that nasty streak also in our days at Arsenal and,as a midfield player, it’s a great sightto see your striker putting tackles inand dying for the cause. Take thatfrom his game, he’s not the sameplayer and that’s a risk England cer-

tainly can’t afford to take.Words by Jon Couch

This England squad hasstrength in all areas.

Picture: P.A.

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THE SQUAD STATS

World Cup 20106 CITYA.M. 9 JUNE 2010

ENGLAND

WHEN Fabio Capello named hisfinal 23-man squad, he sur-prised most observers byplumping for experience over

youthful vigour. Shaun Wright-Phillips(28) got the nod over Theo Walcott(21), Joe Cole (28) was preferred toAdam Johnson (22), despite scant play-ing time, while Jamie Carragher (32)was tempted out of exile for the cam-paign. One theory is that the Italianfavoured older players because hebelieves those who try hardest are theones who feel their time at the top isrunning out, for whom this represents alast chance to win the World Cup.

Well, for Frank Lampard, StevenGerrard et al, read Capello (right).

When he accepted the FootballAssociation’s advances in 2007 he indi-cated that this would be his last big

job. Capello’s recent flirtation withInter Milan suggests he may yet betempted by a return to club manage-ment, but either way it certainlyseems likely that this will bethe 63-year-old’s one and onlyshot at winning what isarguably the mosticonic prize in all of sport.

His already exem-plary CV includes

just about everyhonour apart froma World Cup win-ners’ medal.Wherever he has gone, theman from San Canziand’Isonzo, near the borderwith Slovenia, has deliv-

ered his own brand of dis-

passionate excellence, winning thedomestic league title for each of thefour clubs he has managed. It isbeyond question that he deserves to beconsidered one of the greatest man-agers of all time, but a glorious sum-mer in South Africa would elevate himto an even more elite group of coaches.

Only one World Cup-winning man-ager, his compatriot Marcello Lippi,can boast the Champions League aswell – the two most coveted honoursat club and international level – butCapello stands to match that achieve-ment. Few can claim to have enjoyedsuccess with the consistency of theformer AC Milan, Roma, Juventus andReal Madrid boss. Indeed, by taking on

his role with England – whose support-ers frequently combine world-wearypessimism with irrational expectation– Capello risked tarnishing his unblem-ished record.

That in itself should be a source of encouragement for England. A reputedsalary in excess of £5m cannot havedeterred, but Capello would not havealigned himself with a team he did notfeel had a strong chance of deliveringthe international glory he craves.

Reaching the semi-finalsmight be the widely accept-ed target for the class of 2010. But if that deeplylined, granite face is tocrack into a smile,Capello may have toensure his one excursioninto the international

arena is as glorious as hisspells in Italy and Spain, and

bring home the World Cup.

FOCUS ON

FABIO CAPELLO

ITALIAN TAKING HIS

TILT AT IMMORTALITY

BY FRANKDALLERES

GOALKEEPERS CLUB AGE CAPS GOALS1 David James Portsmouth 39 50 0

12 Robert Green West Ham 30 10 023 Joe Hart Man City 23 3 0

DEFENDERS2 Glen Johnson Liverpool 25 22 13 Ashley Cole Chelsea 29 78 05 Michael Dawson Tottenham 26 0 06 John Terry Chelsea 29 60 613 Stephen Warnock Aston Villa 28 1 015 Matthew Upson West Ham 31 19 118 Jamie Carragher Liverpool 32 36 020 Ledley King Tottenham 29 20 2

MIDFIELDERS4 Steven Gerrard Liverpool 30 80 167 Aaron Lennon Tottenham 23 17 08 Frank Lampard Chelsea 31 78 2011 Joe Cole Chelsea 28 54 1014 Gareth Barry Man City 29 36 2

16 James Milner Aston Villa 24 8 017 Shaun Wright-Phillips Man City 28 31 622 Michael Carrick Man Utd 29 22 0

FORWARDS9 Peter Crouch Tottenham 29 38 2110 Wayne Rooney Man Utd 24 60 2519 Jermain Defoe Tottenham 27 39 1121 Emile Heskey Aston Villa 32 58 7

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GROUP C

ALGERIA ENGLAND

SLOVENIA USA

SQUAD:

GK’s: Lounes Gaouaoui, Faouzi Chaouchi, Rais MBolhi DEF’s: Abdelkader Laifaoui, MadjidBougherra, Carl Medjani, Rafik Halliche, AntherYahia, Habib Belaid, Nadir Belhadj, DjamelMesbah. MID’s: Hassan Yebda, Medhi Lacen, YazidMansouri, Adlene Guedioura, Riad Boudebouz,Djamel Abdoun, Fouad Kadir, Karim Ziani, KarimMatmour.FWD’s: Abdelkader Ghezzal, RafikDjebbour, Rafik Saifi.

TEAM PROFILE:In a first World Cup appearance for 24 years, theAlgerians, ranked 99th in the world, have it all todo if they are to reach the knockout stages for thefirst time in their history. The Algerians, however,are capable of springing the odd surprise – justask West Germany in 1982 and Africa Cup of Nations champions Egypt, who failed to qualify atthie expense. Nine of the squad have changed alle-giances having played for the French youth team.

THE COACH:Rabah SaadaneEnjoying, arguably, hismost successful stintas Algerian nationalboss in his fifth spell.The 64-year-old for-mer player firstcoached the side in1981, returned fouryears later then wait-ed another 13 yearsfor a second return.has also coached theYemen national team.

THE COACH:Fabio CapelloThe Italian won thehearts of the nationafter sealing England’splace in South Africawith nine wins fromten qualifying match-es. Was identified asthe FA’s No1 choice forthe job after enjoyinga glittering manageri-al career with ACMilan, Juventus andReal Madrid.

THE COACH:

Matjaz KekA former Slovenianinternational, Kekbegan his career withhometown club

Maribor in 1979before moving toAustria to play forSpittal/Drau and GAKbefore retuning toMaribor where hewon three leaguetitles. Became nationalcoach in 2007.

THE COACH:

Bob BradleyNew Jersey-bornBradley began hiscoaching career in col-lege football before

moving into the MLS,manging the ChicagoFire, Metrostars andChivas over nine sea-sons. Became nationalteam coach in 2006,leading the side torunner-up in the 2009Confederations Cup.

ALGERIAENGLANDSLOVENIAUSA

GROUP C FIXTURES:SATURDAY 12 JUNEEngland v USA 19.30SUNDAY 13 JUNEAlgeria v Slovenia 19.30FRIDAY 10 JUNESlovenia v USA 15.00England v Algeria 19.30WEDNESDAY 22 JUNESlovenia v England 15.00USA v Algeria 15.00

TREVOR STEVEN’SPREDICTIONFabio Capello’s England should

have far too much for this groupand win at a canter. USA willfancy their chances of qualifyingalso, ahead of Slovenia, whileAlgeria have it all to do

ODDS TO WIN GROUPEngland 4/11USA 5/1Slovenia 11/1Algeria 20/1

odds supplied by Paddy Power

JAMES

MILNER

ONE TO WATCH

The midfielder has enjoyed afine season for Aston Villa.Good on the ball with greatvision, Milner can play any-where across the midfieldand can score goals

SQUAD:

GK’s: Joe Hart, David James, Robert Green.DEF’s: Jamie Carragher, Ashley Cole, MichaelDawson, Glen Johnson, Ledley King, John Terry,Matthew Upson, Stephen Warnock. MID’s: GarethBarry, Michael Carrick, Joe Cole, Steven Gerrard,Frank Lampard, Aaron Lennon, James Milner,Shaun Wright-Phillips. FWD’s: Peter Crouch,Jermain Defoe, Emile Heskey, Wayne Rooney.

TEAM PROFILE:Nine victories from ten matches signals an easyqualification for Fabio Capello’s men –so hard tobelieve this is more or less the same side whichfailed to qualify for Euro 2008 under SteveMcClaren. Reached the quarter-finals in each of the last two World Cups, although Capello willalso be looking to arrest an unwanted record withthe Three Lions boasting the worst penalty shoot-out record in World Cup history.

SQUAD:

GK’s: Samir Handanovic, Jasmin Handanovic,Aleksander Seliga. DEF’s: Bojan Jokic, MarkoSuler, Bostjan Cesar, Branko Ilic, Matej Mavric,Elvedin Dzinic, Miso Brecko, Suad Filekovic. MID’s:Andraz Kirm, Andrej Komac, Rene Krhin, DaliborStevanovic, Robert Koren, AleksanderRadosavljevic, Valter Birsa. FWD’s: MilivojeNovakovic, Zlatko Dedic, Zlatan Ljubijankic, NejcPecnik, Tim Matavz.

TEAM PROFILE:Their only World Cup appearance came in 2002when they slumped to three group stage defeatswithout scoring a goal. Any improvement on thatwould be a start and after disposing of a fanciedRussian side in the European play-offs, you would-

n’t bet against them. Coach Matjaz Kek promoteda number of the successful under-21 side to thesenior ranks and it’s paid dividends, but this issurely their toughest test to date.

SQUAD:

GK’s: Brad Guzan, Tim Howard, MarcusHahnemann. DEF’s: Carlos Bocanegra, JonathanBornstein, Steve Cherundolo, Jay DeMerit,Clarence Goodson, Oguchi Onyewu, JonathanSpector. MID’s: DaMarcus Beasley, MichaelBradley, Ricardo Clark, Clint Dempsey, LandonDonovan, Maurice Edu, Benny Feilhaber, StuartHolden, Jose Torres FWD’s: Jozy Altidore, EdsonBuddle, Robbie Findley, Herculez Gomez.

TEAM PROFILE:Reaching the final of both the Confederations Cupand Gold Cup in South Africa last year, in thespace of a month, will give the Americans belief they can achieve something here. With a numberof high-profile Premier League players in their

ranks, they won’t fear England and after breakingthe world record unbeaten run of Spain last year,nor should they. Will fancy their chances of reach-ing at least the last 16.

GROUP D

AUSTRALIA GERMANY

GHANA SERBIA

SQUAD:

GK’s: Mark Schwarzer, Adam Federici, Brad Jones,Eugene Galekovic. DEF’s: Lucas Neill, Craig Moore,Scott Chipperfield, David Carney, Luke Wilkshire,Mark Milligan, Michael Beauchamp. MID’s: TimCahill, Mark Bresciano, Vince Grella, BrettEmerton, Jason Culina, Brett Holman, Carl Valeri,Mile Jedinak, Richard Garcia, Dario Vidosic.FWD’s: Josh Kennedy, Nikita Rukavytsya, HarryKewell.

TEAM PROFILE:With a cluster of Premier League stars in theirranks, the Socceroos will be fancied, at least, for a

last 16 place. But recent performances, includingan unconvincing second half display against NewZealand last week, has left fans uncertain. CoachVerbeek has taken a more pragmatic approachcompared to popular predecessor Guus Hiddink,but in Tim Cahill and Harry Kewell they possesspotential match-winners.

THE COACH:Pim VerbeekThe Dutchman will

leave his post after theWorld Cup to takeover as YouthTechnical Director of the Moroccan nationalteam – and he’s goingto want to go out witha bang. The 54-year-old has been in coach-ing for 29 years andhas previously been incharge of South Korea.

THE COACH:Joachim LowDespite his previous

popularity with theGerman opress andpublic, the shock omis-sions of Torsten Fringsand Kevin Kuranyi hasput Low in the firingline. The formerStuttgart andFenerbahce boss hasbeen at the helm forfour years now, it allrests on this month.

THE COACH:

Milovan RajevacThe Serbian coach hasenjoyed great successin his two years incharge, leading Ghanato the final of theAfrica Cup of Nations,and also World Cupqualification for onlythe second time. Aged56, Rajevac is a for-mer Red StarBelgrade player andmanager.

THE COACH:

Radomir AnticA surprise successorto Miroslav Dukic in2008 –simplybecause he’d turnedthe job down manytimes previous. Notalways enjoyed thebest of relationshipswith the Serbian FAbut impressively guid-ed the team throughqualifying and hassigned a new deal.

AUSTRALIAGERMANYGHANASERBIA

GROUP D FIXTURES:

SUNDAY 13 JUNEGermany v Australia 19.30Serbia v Ghana 15.00FRIDAY 18 JUNEGermany v Serbia 12.30SATURDAY 19 JUNEGhana v Australia 15.00

WEDNESDAY 23 JUNEGhana v Germany 19.30Australia v Serbia 19.30

TREVOR STEVEN’SPREDICTIONGermany will start as favouritesbut have suffered from injuriesand could find it tough edging outa quietly-impressive Serbians,although both Ghana andAustralia can spring a surprise

ODD’S TO WIN GROUPGermany 10/11Serbia 10/3Ghana 5/1Australia 9/1


MESUT

OZIL

ONE TO WATCH

The Werder Bremenyoungster is earning quite areputation for himself as aplaymaker and attackingcentral midfielder. Is beingeyed by English scouts

SQUAD:

GK’s: Joerg Butt, Manuel Neuer, Tim Wiese. DEF’s:Dennis Aogo, Holger Badstuber, Arne Friedrich,Jerome Boateng, Marcell Jansen, Philipp Lahm,Per Mertesacker, Serdar Tasci.MID’s: SamiKhedira, Toni Kroos, Marko Marin, Mesut Oezil,Bastian Schweinsteiger, Piotr Trochowski.FWD’s:Cacau, Mario Gomez, Stefan Kiessling, MiroslavKlose, Thomas Mueller, Lukas Podolski

TEAM PROFILE:Never underestimate the Germans, that’s the say-ing, but the loss of a number of key players, includ-

ing talismanic captain Joachim Low, has led manyto believe the Germans will not be the force of old.Indeed, Low has only two out-and-out midfieldersin his ranks, but plenty of exciting young defend-ers who emminate from the successful Europeanunder-21 side. In Miroslav Klose and LukasPodolski, they have goals at thier disposal.

SQUAD:

GK’s: Richard Kingston, Daniel Adjei, StephenAhorlu. DEF’s: Samuel Inkoom, Hans Sarpei, LeeAddy, John Mensah, Rahim Ayew, Isaac Vorsah,John Pantsil, Jonathan Mensah. MID’s: DedeAyew, Kwadwo Asamoah, Stephen Appiah,Anthony Annan, Sulley Muntari, Quincy Owusu-Abeyie, Derek Boateng, Kevin-Prince Boateng.FWD’s: Prince Tagoe, Asamoah Gyan, Dominic

Adiyiah, Matthew Amoah.

TEAM PROFILE:Reached the second round for the first time in2006, but with a tough group, the Black Stars willhave to shine as bright as ever to repeat that feat.The squad is packed full of players with topEuropean experience, but the loss of talismanMichael Essien is a killer blow. Members of theirUnder-20 World Cup-winning squad are there asback-up and give the squad a winning mentalityand a confident look.

SQUAD:

GK’s: Vladimir Stojkovic, Zeljko Brkic, BojanIsailovic, Andjelko Djuricic. DEF’s: BranislavIvanovic, Antonio Rukavina, Nemanja Vidic, NevenSubotic, Aleksandar Lukovic, Ivan Obradovic,Aleksandar Kolarov. MID’s: Dejan Stankovic,Nenad Milijas, Miloss Krasic, Milan Jovanovic,Milos Ninkovic, Zdravko Kuzmanovic, Zoran Tosic,Gojko Kacar, Radosav Petrovic. FWD’s: Nikola Zigic,

Marko Pantelic, Danko Lazovic, Dragan Mrdja.

TEAM PROFILE:After nine appearances as the former Yugoslaviaand one with Montenegro in 2006, Serbia enterthe competition as an independent nation for thefirst time – and look a team to be feared.Impressively finished ahead of France in theirqualifying group and with the likes of ManchesterUnited’s Nemanja Vidic, Chelsea’s BranislavIvanovic and giant striker Nikola Zigic, they havean experienced look about them.


8/9/2019 CityAM 09/06/2010


GROUP E


HOLLAND CAMEROON

DENMARK JAPAN

SQUAD:

GKs: Maarten Stekelenburg, Sander Boschker,Michel Vorm DEFs: Khalid Boulahrouz, EdsonBraafheid, Giovanni van Bronckhorst, JohnHeitinga, Joris Mathijsen, Gregory van der Wiel,Andre Ooijer MIDs: Mark van Bommel, Nigel deJong, Stijn Schaars, Wesley Sneijder, Rafael vander Vaart, Demy de Zeeuw, Ibrahim AfellayFWDs: Dirk Kuyt, Eljero Elia, Ryan Babel, Klaas-Jan Huntelaar, Robin van Persie, Arjen Robben

TEAM PROFILE:The Dutch arrive in buoyant mood, having followedan impressive Euro 2008 with a perfect qualifyingcampaign. Questions, as ever, linger about thefragility of their temperament, previous campaignshaving been undermined by internal friction. Butthey have the best attacking talent outside of South America, in Wesley Sneijder, Robin vanPersie and Arjen Robben – all that remains is forthem to finally live up to their billing.

THE COACH:Bert van MarwijkThe ex-Feyenoord bosschose not to tinkerwith the team that litup the EuropeanChampionship twoyears ago underMarco van Basten. Hisbiggest wish will bethat the notoriouslyinjury-plagued VanPersie and Robbensurvive the tourna-ment unscathed.

THE COACH:Paul le GuenBest know to Britonsfor a disastrous spellat Rangers, he has hadfar more success withCameroon. After beinghired a year ago, heset about implement-ing a more profession-al infrastructure andsaw instant results,salvaging a dire quali-fying campaign to leadthem to the finals.

THE COACH:

Morten OlsenThe longest-servingcoach at the WorldCup, Olsen has been incharge for 10 years,

despite missing thelast two major tourna-ments. A great quali-fying campaign wonhim a new two-yearcontract, and will pre-sumably get a job forlife if he can get pastthe last 16.

THE COACH:

Takeshi OkadaNow in his secondstint as national boss,Okada courted ridiculeby bragging that

Japan would reachthe semi-finals thistime around. The 53-year-old did not do sowell last time, at the2002 tournament,masterminding threedefeats and promptlystepping down.

HOLLANDCAMEROONDENMARKJAPAN

GROUP E FIXTURES:MONDAY 14 JUNEHolland v Denmark 12.30Japan v Cameroon 15.00

SATURDAY 19 JUNEHolland v Japan 12.30Cameroon v Denmark 19.30

THURSDAY 24 JUNEDenmark v Japan 19.30Cameroon v Holland 19.30

TREVOR STEVEN’SPREDICTIONWith a perfect qualifying record,

Holland should have no danger ingoing through as group winnershere. The big question is who willfollow them, Denmark andCameroon will slog that one out.

ODDS TO WIN GROUPHolland 4/7Denmark 9/2Cameroon 5/1Japan 14/1

odds supplied by Paddy Power ONE TO WATCH

The Arsenal man looks backto his scintillating best aftera long injury lay-off. If – andit’s a big if – he avoids get-ting crocked again, he couldpropel Holland to greatness

SQUAD:

GKs: Guy Roland N'Dy Assembe, Idriss CarlosKameni, Hamidou Souleymanou DEFs: BenoitAssou-Ekotto, Sebastien Bassong, Gaetan Bong,Aurelien Chedjou, Geremi, Stephane Mbia, NicolasNkoulou, Rigobert Song MIDs: Achille Emana,Enoh Eyong, Jean Makoun, Georges Mandjeck,Joel Matip, Landry Nguemo, Alex Song FWDs:Vincent Aboubakar, Eric Choupo-Moting, SamuelEto'o, Mohamadou Idrissou, Achille Webo

TEAM PROFILE:The Indomitable Lions boast the best World Cuppedigree of all African countries and topped theirqualifying group, but a disappointing Cup of Nations campaign has reined in expectations. Theyare not short of talent: few strikers are deadlierthan Samuel Eto’o and Carlos Kameni is a superbgoalkeeper, while Alex Song, Sebastien Bassongand Benoit Assou-Ekotto are Premier League stars.All will need to be at their best to progress.

SQUAD:

GKs: Thomas Sorensen, Stephan Andersen,Jesper Christiansen DEFs: William Kvist, SimonKjaer, Lars Jacobsen, Per Kroldup, Daniel Agger,Patrick Mtigliga, Simon Poulsen MIDs: MartinJorgensen, Christian Poulsen, Jakob Poulsen,Dennis Rommedahl, Thomas Kahlenberg, ThomasEnevoldsen, Christian Eriksen, Mikkel Beckmann,Daniel Jensen, Jesper Gronkjaer FWDs: Jon DahlTomasson, Soren Larsen, Nicklas Bendtner

TEAM PROFILE:They may never challenge Holland or Spain in thesexy football stakes, but Denmark might surprise afew people. Olsen’s men saw off Portugal and rivalsSweden to top their qualifying group and look wellequipped to maintain their record of always reach-

ing the second round. Solid at the back, where theyare marshalled by Liverpool’s Daniel Agger, theirattacking threat will come from golden boy andArsenal forward Nicklas Bendtner.

SQUAD:

GKs: Seigo Narazaki, Eiji Kawashima, YoshikatsuKawaguchi DEFs: Yuji Nakazawa Marcus TulioTanaka, Yuichi Komano, Daiki Iwamasa, YasuyukiKonno, Yuto Nagatomo, Atsuto Uchida MIDs:Shunsuke Nakamura, Yasuhito Endo, KengoNakamura, Junichi Inamoto, Yuki Abe, MakotoHasebe, Keisuke Honda, Daisuke Matsui FWDs:Shinji Okazaki, Keiji Tamada, Yasuhito Okubo,Kisho Yano, Takayuki Morimoto

TEAM PROFILE:Goals look like being hard to come by for Japan,who have never won a World Cup match on for-eign soil. They have consistently struggled to finda reliable goalscorer, and a meagre return in quali-fying suggests that has not changed. Saying that,

they were the first team to book their place at thefinals, and have quality in midfield from KeisukeHonda and Shunsuke Nakamura, but their coach’sboasts look likely to backfire spectacularly.

GROUP F

ITALY SLOVAKIA

PARAGUAY NEW ZEALAND

SQUAD: GKs: Gianluigi Buffon, Morgan DeSanctis, Federico Marchetti DEFs: SalvatoreBocchetti, Leonardo Bonucci, Fabio Cannavaro,Giorgio Chiellini, Domenico Criscito, ChristianMaggio, Gianluca Zambrotta MIDs: MauroCamoranesi, Daniele De Rossi, Gennaro Gattuso,Claudio Marchisio, Riccardo Montolivo, AngeloPalombo, Simone Pepe, Andrea Pirlo FWDs:Antonio Di Natale, Alberto Gilardino, VincenzoIaquinta, Giampaolo Pazzini, Fabio Quagliarella

TEAM PROFILE:The Azzuri are widely assumed to be past theirbest, short of inspiration and unlikely to reach the

latter stages. But then that is exactly what theircritics said four years ago, and they went on toupset the odds to win the trophy for a fourth time.Italy’s reputation for stifling, negative play will notbe helped by the absence of the now-retiredFrancesco Totti, but they remain a threat and haveperhaps been written off a touch too quickly.

THE COACH:Marcello LippiThe former Juventus

boss steered them tosurprise glory in2006, so knows howto win the trophy. Theonly man to have wonthe Champions Leagueand World Cup, hereturned to the helmafter RobertoDonadoni’s disappoint-ing spell in charge atEuro 2008.

THE COACH:Vladimir WeissThe 45-year-old is the

youngest coach at thetournament and isfond of picking his son,Vladimir junior, of Manchester City.Weiss, who built hisreputation atArtmedia Bratislava,is a hugely popularfigure in his homeland,having led Slovakia totheir first finals.

THE COACH:

Gerardo MartinoThe Argentine haspromised to leave hispost if Paraguay donot break new groundand get to the quar-ter-finals, and the 47-year-old Martinowould likely be sorelymissed, having foundsuccess despite asmall pool of playersby demonstrating tac-tical flexibility.

THE COACH:

Ricki HerbertThe former All Whitescentre-back played forhis country at the1982 tournament andcombines his role withmanaging club sideWellington Phoenix. Asecond salary proba-bly comes in handy asHerbert is thought toonly earn £25,000 forcoaching the nationalteam.

ITALYNEW ZEALANDPARAGUAYSLOVAKIA

GROUP F FIXTURES:

MONDAY 14 JUNEItaly v Paraguay 19.30TUESDAY 15 JUNENew Zealand v Slovakia 19.30SUNDAY 20 JUNESlovakia v Paraguay 12.30Italy v New Zealand 15.00

THURSDAY 24 JUNEParaguay v New Zealand 15.00Slovakia v Italy 15.00

TREVOR STEVEN’SPREDICTIONDefending chamoions Italy wantshooting if they can’t comethrough unscathed here, althoughParaguay are an unknown quanti-ty and are being well backed.Neither should be troubled.

ODDS TO WIN GROUPItaly 4/7Paraguay 3/1Slovakia 7/1New Zealand 80/1

odds supplied by Paddy Power ONE TO WATCH

A RARE creative outlets inItaly’s line-up, the veteranforward has been a latebloomer but now has achance to shine on thebiggest stage of all

SQUAD:

GKs: Jan Mucha, Dusan Kuciak, Dusan PernisDEFs: Peter Pekarik, Martin Petras, MartinSkrtel, Jan Durica, Radoslav Zabavnik, MarekCech, Kornel Salate MIDs: Kamil Kopunek, JanKozak, Juraj Kucka, Marek Sapara, MarekHamsik, Vladimir Weiss, Miroslav Stoch, ZdenoStrba FWDs: Erik Jendrisek, Robert Vittek,Martin Jakubko, Filip Holosko, Stanislav Sestak

TEAM PROFILE:Having been overshadowed by Czech Republicsince the countries split in 1993, Slovakia are now

enjoying bragging rights, after qualifying for theirfirst World Cup at the expense of their neigh-bours. Liverpool’s Martin Skrtel is a familiar facein defence, while they have talented midfielders inNapoli’s goal-getting Marek Hamsik and Chelseayoungster Miroslav Stoch, who spent last seasonon loan with Steve McClaren at FC Twente.

SQUAD:

GKs: Justo Villar, Aldo Bobadilla, Diego BarretoDEFs: Claudio Morel Rodriguez, Denis Caniza,Paulo da Silva, Dario Veron, Julio Cesar Caceres,Carlos Bonet, Aureliano Torres, Antolin AlcarazMIDs: Edgar Barreto, Cristian Riveros, VictorCaceres, Enrique Vera, Jonathan Santana, NestorOrtigoza FWDs: Roque Santa Cruz, Nelson HaedoValdez, Oscar Cardozo, Edgar Benitez, Lucas

Barrios, Rodolfo Gamarra

TEAM PROFILE:They beat Brazil and Argentina in qualifying andhave amassed a decent pedigree, having reachedthe last three World Cups, so hopes are high thatParaguay will beat their previous best perform-ance and make it into the quarter-finals. Form hasslipped in recent months but they are strong inattack, where they boast Manchester City’s RoqueSanta Cruz and Benfica’s Oscar Cardozo, and theirchances look good of making it to the last 16.

SQUAD:

GKs: James Bannatyne, Glen Moss, Mark PastonDEFs: Andy Boyens, Tony Lochhead, Ryan Nelsen,Winston Reid, Ben Sigmund, Tommy Smith, IvanVicelich MIDs: Andy Barron, Leo Bertos, TimBrown, Jeremy Christie, Aaron Clapham, SimonElliott, Michael McGlinchey, David MulliganFWDs: Jeremy Brockie, Rory Fallon, Chris Killen,Shane Smeltz, Chris Wood

TEAM PROFILE:While the All Blacks may be among the mostfeared sides in rugby, their footballing counter-parts are unlikely to put the wind up anyone. Theyare rank outsiders, have come off second bestagainst Fiji, Tanzania and Botswana in recentmatches, and only qualified after edging a play-off against that superpower of the game, Bahrain.While captain Ryan Nelsen plays for Blackburn,midfielder Andy Barron also works in a bank.

ANTONIO

DINATALE

ROBIN

VAN PERSIE

8/9/2019 CityAM 09/06/2010


GROUP G

BRAZIL IVORY COAST

PORTUGAL NORTH KOREA

SQUAD:

GKs: Julio Cesar, Doni, Heurelho Gomes.DEFs: Maicon, Daniel Alves, Michel Bastos,Gilberto, Lucio, Juan, Luisao, Thiago Silva.MIDs: Gilberto Silva, Felipe Melo, Ramires, Elano,Kaka, Julio Baptista, Kleberson, Josue.FWDs: Robinho, Luis Fabiano, Nilmar, Grafite

TEAM PROFILE:This Brazil team is not the freewheeling band of entertainers synonymous with the five-time win-ners, having been reinforced with a defensivesolidity by Dunga. That said, any team with Kakaand Robinho in the side is sure to dazzle and theSouth Americans are among the favourites toreclaim the trophy. Recent results have lookedominously dangerous, while the familiar climateand conditions should also work in their favour.

THE COACH:DungaThe man who cap-tained Brazil to gloryin USA in 1994 hasbrought pragmatismto the side in his veryfirst job as a coach,and to positive effect.The 46-year-old wonfive games out of fiveat last summer’sConfederations Cupand breezed throughqualifying.

THE COACH:Sven-Goran ErikssonThe former Englandmanager was hired tobring some tacticalexpertise and majortournament experi-ence, and the Swedehas something toprove after an ulti-mately fruitless spellwith the Three Lionsand disastrous stintsin charge of Mexicoand Notts County.

THE COACH:

Carlos QueirozMoustache-sporting,touchline-fighting ‘BigPhil’ Scolari wasalways going to be a

hard act to follow, andQueiroz has found thegoing tough, not leastbecause he inherited adeteriorating squad,so the formerManchester Unitedcoach is desperate fora good tournament.

THE COACH:

Kim Jong HunExpect an emphasison defence from theboss, who prizes fit-ness, organisation and

motivation in his team.Propaganda has itthat he has even takentactical guidance dur-ing matches fromleader Kim Jong-Il,using special mobilephones not visible tothe naked eye. Ahem.

BRAZILIVORY COASTNORTH KOREAPORTUGAL

GROUP G FIXTURES:TUESDAY 15 JUNEIvory Coast v Portugal 15.00Brazil v North Korea 19.30MONDAY 20 JUNEBrazil v Ivory Coast 19.30TUESDAY 21 JUNEPortugal v North Korea 12.30FRIDAY 25 JUNENorth Korea v Ivory Coast 15.00Portugal v Brazil 15.00

TREVOR STEVEN’SPREDICTIONIn all groups of death, there has to

be a loser, but North Korea aside, Ireally can’t pick one here. Brazilwill surely claim one of the places,leaving the opening game betweenPortugal and Ivory Coast as crucial.

ODDS TO WIN GROUPBrazil 8/13Portugal 10/3Ivory Coast 5/1North Korea 100/1


ROBINHO

ONE TO WATCH

MANCHESTER may nothave agreed with him butRobinho is grinning againafter a spell in his homelandand seems to reserve hisbest for for his country

SQUAD:

GKs: Boubacar Barry, Aristides Zogbo, DanielYeboah. DEFs: Souleymane Bamba, Arthur Boka,Benjamin Brou Angoua, Guy Demel, EmmanuelEboue, Steve Gohouri, Siaka Tiene, Kolo Toure.MIDs: Jean-Jacques Gosso Gosso, AbdelkaderKeita, Emmanuel Kone, Gervinho, Koffi N'DriRomaric, Cheik Ismael Tiote, Yaya Toure, DidierZokora. FWDs: Aruna Dindane, Didier Drogba,Salomon Kalou, Bakary Kone.

TEAM PROFILE:Much is expected of the Elephants as the conti-nent’s leading nation at the first African WorldCup – or at least it was until star striker DidierDrogba broke his arm in a warm-up match. Whilehe may yet play some part, the absence of theChelsea talisman for any period will hit theIvorians hard, despite the quality of a squad thatalso includes the Toure brothers, Salomon Kalouand Didier Zokora.

SQUAD:

GKs: Eduardo, Daniel Fernandes, Beto.DEFs: Miguel, Paulo Ferreira, Ricardo Carvalho,Bruno Alves, Rolando, Ricardo Costa, Duda, FabioCoentrao.MIDs: Pedro Mendes, Pepe, Tiago, Deco, RaulMeireles, Miguel Veloso.FWD’s: Simao Sabrosa, Danny, Liedson, HugoAlmeida, Cristiano Ronaldo, Ruben Amorim.

TEAM PROFILE:Portugal may still boast the likes of Deco, RicardoCarvalho and Paulo Ferreira, but that generation ison the wane, and Cristiano Ronaldo will need tobe at his inspirational, single-handed best if theyare to trouble the later rounds. Fortunately for

Carlos Queiroz, the prolific Real Madrid forward isno stranger to carrying underperforming sides,and goes into the tournament off the back of afine first season in Spain.

SQUAD:

GKs: Ri Myong-Guk, Kim Myong-Gil, Kim MyongWon. DEFs: Cha Jong-Hyok, Pak Nam-Choi, Ri Jun-Il, Ri Kwang-Chon, Pak Choi-Jin, Nam Song-Choi,Pak Sung Hyok, Ri Kwang Hyok. MIDs: Ji Yun-Nam, Mun In-Guk, Kim Yong-Jun, Ri Choi-Myong,Pak Nam-Choi, An Yong-Hak, Kim Kyong-Il. FWDs:Hong Yong-Jo, An Choi Hyok, Jong Tae-Se, ChoeKum-Choi, Kim Kum-Il.

TEAM PROFILE:Vying with New Zealand for the title of worstteam, North Korea ought to pop the champagnecorks if they take a single point. All but two of their squad play for domestic teams, with JongTae Se and An Yong Hak enjoying the relative

glamour of Japan. A cunning plan to take an extrastriker by listing him as a goalkeeper backfiredafter they were told Kim Myong Won is onlyallowed to play in goal, having been listed as such.

GROUP H

SPAIN CHILE

SWITZERLAND HONDURAS

SQUAD:

GKs:Iker Casillas, Jose Manuel Reina, VictorValdes DEFs: Raul Albiol, Alvaro Arbeloa, JoanCapdevila, Carlos Marchena, Gerard Pique, CarlesPuyol, Sergio Ramos MIDs: Xabi Alonso, SergioBusquets, Cesc Fabregas, Andres Iniesta, JavierMartinez, David Silva, Xavi Hernandez FWDs:Jesus Navas, Juan Manuel Mata, Pedro Rodriguez,Fernando Llorente, Fernando Torres, David Villa

TEAM PROFILE:The reigning European champions are the hotfavourites to win their first World Cup, and it is

not hard to see why: a squad of superstars at theirpeak and a settled team that has been playing thesame way for several years. Yet fitness doubtshover over Fernando Torres, Xavi and AndresIniesta, their key players have been through gru-elling club seasons, plus they have the added pres-sure of now being expected to win.

THE COACH:Vicente del BosqueThe man once inexpli-

cably fired by RealMadrid has picked upwhere Luis Aragonesleft off after Euro2008, and has won allbut one of his gamesin charge. Del Bosqueis bidding to makeSpain the firstEuropean country towin the trophy outsidetheir home continent.

THE COACH:Marcelo BielsaThe third Argentine

coach in the tourna-ment, Bielsa was incharge of his owncountry when Englandbeat them at the2002 World Cup. He isdetermined toimprove on that first-round exit and hasmoulded Chile into aunit that looks capa-ble of doing so.

THE COACH:

Ottmar HitzfeldThe vastly experi-enced German coachled the Swiss to a five-game winning streakthat sealed their quali-fication to the tourna-ment but the61-year-old will haveto go some to equalthe country’s best evertournament, in 1954,when they made it tothe quarter-finals.

THE COACH:

Reinaldo RuedaThe 53-year-old failedto take his nativeColombia to the finalsfour years ago, havingtaken over during adoomed qualifyingcampaign, but did thebusiness with hiscountry’s less fanciedneighbours this timearound. Made hisname with Colombia’sUnder-17 team.

CHILEHONDURASSPAINSWITZERLAND

GROUP H FIXTURES:

WEDNESDAY 16 JUNEHonduras v Chile 12.30Spain v Switzerland 15.00

MONDAY 21 JUNEChile v Switzerland 15.00Spain v Honduras 19.30

FRIDAY 25 JUNEChile v Spain 19.30Switzerland v Honduras 19.30

TREVOR STEVEN’SPREDICTIONAs dead certs go, European cham-pions Spain are right up there inemerging as group winners. Chileare dangerous and Hondurasunknown, so Switzerland will havetheir work cut out to qualify.

ODDS TO WIN GROUPSpain 2/7Chile 6/1Switzerland 12/1Honduras 66/1


DAVID

VILLA

ONE TO WATCH

ONE of the deadliest marks-men around and not likely tobe short of chances, givenSpain’s talented midfield,and will want to show whyBarca paid £30m for him

SQUAD:

GKs: Claudio Bravo, Miguel Pinto, Luis MarinDEFs: Pablo Contreras, Ismael Fuentes, MauricioIsla, Gary Medel, Gonzalo Jara, Waldo Ponce,Arturo Vidal MIDs: Carlos Carmona, MarcoEstrada, Matias Fernandez, Gonzalo Fierro,Rodrigo Millar, Rodrigo Tello, Jorge ValdiviaFWDs: Jean Beausejour, Mark Gonzalez, FabianOrellana, Esteban Paredes, Alexis Sanchez,Humberto Suazo

TEAM PROFILE:Chile were the revelation of the South Americanqualifying campaign, thumping in 33 goals and

winning 10 games as they finished second only toBrazil. Hulking Real Zaragoza forward HumbertoSuazo leads the line in a counter-attacking systemthat relies on the invention of Sporting Lisbon’sMatias Fernandez and Udinese winger AlexisSanchez. Look likely to slug it out withSwitzerland for second place in the group.

SQUAD: GKs: Diego Benaglio, Johnny Leoni,Marco Woelfli DEFs: Stephan Lichtsteiner,Stephane Grichting, Steve Von Bergen, PhilippeSenderos, Mario Eggimann, Christoph Spycher,Reto Ziegler MIDs: Valon Behrami, Gokhan Inler,Benjamin Huggel, Gelson Fernandes, XherdanShaqiri, Pirmin Schwegler, Tranquillo Barnetta,Marco Padalino FWD: Thierry Henry, NicolasAnelka, Andre-Pierre Gignac, Sidney Govou, Djibril

Cisse, Mathieu Valbuena

TEAM PROFILE:Lost at home to Luxembourg in qualifying but,that monumental blip aside, had little difficultyreaching a ninth finals, where they will have gen-uine hopes of progressing from the group stage.In order to see off Chile and Honduras, they willneed strong showings from star men, captain andtalismanic striker Alexander Frei, tricky BayerLeverkusen winger Tranquillo Barnetta and WestHam’s dynamic midfielder Valon Behrami.

SQUAD:

GKs: Ricardo Canales, Noel Valladares, DonisEscober DEFs: Victor Bernardez, MaynorFigueroa, Oscar Garcia, Sergio Mendoza, EmilioIzaguirre, Johnny Palacios, Mauricio Sabillon,Osman Chavez MIDs: Edgard Alvarez, Julio Cesarde Leon, Roger Espinoza, Amado Guevara, RamonNunez, Wilson Palacios, Hendry Thomas, DaniloTurcios FWDs: David Suazo, Georgie Welcome,

Carlos Pavon, Walter Martinez

TEAM PROFILE:They may boast Tottenham midfielder WilsonPalacios, one-time Inter Milan striker David Suazoand, er, Wigan duo Maynor Figueroa and HendryThomas, but that is where the well-known namesend, save for perhaps Genoa midfielder JulioCesar de Leon, who goes by the nickname Rambo.Honduras only qualified thanks to a last-minuteUSA equaliser against Costa Rica and few wouldpredict anything other than a first-round exit.


8/9/2019 CityAM 09/06/2010


has continued to shorten over the past few weeks and at a best-priced 7/1, I still think ARGENTINAare worth backing. They bare-ly made it through qualifying due to somehorrific performances, including a 6-1defeat in Bolivia. Much of the blame wasplaced firmly on head coach DiegoMaradona’s shoulders, but they have now won all five games in 2010 and have a fear-some strikeforce. The combined names of Lionel Messi, Gonzalo Higuain, DiegoMilito and Carlos Tevez are enough to sendshivers down the spine of the most experi-enced defenders and the side could bepeaking at exactly the right time.

South Americans have done this in thepast – Brazil were awful in qualifying for2002 before going on to win it, while Argentina were also poor in the run-up totheir last victory in 1986.

This could be the tournament whereMessi cements his position as the best play-er the world has seen since Maradona andhe could feasibly win the tournament by

WE are now only days away from

World Cup 2010 and let’s justhope there are no more lastminute injuries to some of the

stars on show. I can’t remember a tourna-ment where so many top players havemissed out due to physical breakdowns, but at least the world’s best player, LionelMessi, seems to be in one piece.

Looking at the outright market and it isno wonder that Spain and Brazil are vyingfor favouritism at 4/1 and 9/2 respectively

with William Hill. The Spanish are thereigning European champions andarguably have the strongest squad, whileBrazil’s World Cup record speaks for itself and Dunga has made them more difficult

to breakdown. However, I’m of the opin-ion that Spain could rely too heavily oninjury-prone Fernando Torres and Brazildon’t quite have the star names that wecome to expect.

England have drifted in recent days with the news that Rio Ferdinand willmiss the tournament, but they were tooshort and 8/1 is a fairer reflection of theirchances. I wouldn’t be overly surprised tosee England reach the semi-finals, but Ican’t see them progressing further than

that. Holland are interesting at a general10/1 and could easily make the last four, ascould current holders Italy, who seem tohave been written off with a quote of 16/1.

However, there has been one team that

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himself, just as his boss did 24 years ago.It would be folly to write off the old

enemy GERMANY as well, despite themlosing their captain Michael Ballack. Timeand time again the Germans are underrat-ed coming into the big tournaments andtime and time again they come up withthe goods. Their World Cup record is noth-ing short of outstanding; since 1954 they have only failed to reach the quarter-finalsin one of 14 tournaments.

They are a big price at 14/1 with WilliamHill and on Betdaq and offer the perfecttrading opportunity on the exchange, oron Sporting Index’s outright index. They have won their group in all of the last five World Cups and their price will be muchshorter if they do that again and get adecent second round draw.

Magical Messi

the inspirationfor Argentina

FOOTBALL TRADER BEN CLEMINSON RUNS THROUGH HIS BEST BETS FOR WORLD CUP 2010

World Cup 2010 | Punter14 CITYA.M. 9 JUNE 2010

THE RACE FOR

THE GOLDEN BOOT

David Villa is the favourite withevery bookmaker to win theGolden Boot and his goalscor-ing record for Spain is excel-

lent, finding the net 37 times in 57games. LIONEL MESSI is next bestat 10/1 with Paddy Power and if Argentina are to do well he has tohave a decent chance of winningthe Golden Boot. He’s been top scor-er in the Champions League for thelast two seasons and if he starts tofind his feet in the group stages, the28/1 with William Hill aboutArgentina winning the tournamentand him topping the charts could be

very good value.

England will rely heavily onWayne Rooney if they are toprogress to the semi-finals for thefirst time since 1990, but they havenever been prolific scorers in bigtournaments. He will surely be thetop scorer for the Three Lions, but Iwouldn’t be interested in backinghim at 11/1. However, Paddy Powerare offering a nice concession inEngland’s opening group game to

refund all bets if Rooney scores atany time.

MIROSLAV KLOSE won theGolden Boot at the last tournamentand even though he hasn’t been inform for Bayern Munich, he doesstep up at international level. Hewould become the first player towin back-to-back Golden Boots, butI think he is overpriced at 33/1 withWilliam Hill.

POINTERS...

Lionel Messi to win the Golden Boot at 10/1 with Paddy PowerLionel Messi / Argentina double at 28/1 with William Hill

Miroslav Klose to win the Golden Boot at 33/1 with William Hill e/w

POINTERS...

Argentina to win the tournament at 7/1 on BetdaqBuy Germany at 28 on the Sporting Index outright index

Messi will be looking to cement his positionas the best player inthe world.

Picture: P.A.

8/9/2019 CityAM 09/06/2010


FRANCE have made it to two of thelast three World Cup finals, but they

were knocked out in the groupstages in 2002, taking just one point

and the same happened at Euro 2008.It is remarkable that Raymond

Domenech has managed to keep his joband they are only really in South Africathanks to the hand of Thierry Henry. They

just don’t look like a squad that is togeth-er in my opinion and are therefore worthtaking on in Group A.

Franck Ribery is a class player, but hehas had personal issues leading up to thetournament and didn’t look great forBayern Munich at the back-end of last sea-son. Nicolas Anelka is another potentialmatch winner, but it may just be that they

will rely too heavily on the Chelsea strikerto get the goals. The French are as short as3/10 to qualify and that looks poor value

in a group that includes Mexico, Uruguay and South Africa, all decent sides on theirday.

There isn’t one standout team in thisgroup and they may well nick points off each other. Uruguay and Mexico bothhave strong players, while South Africahave the backing of a vociferous homecrowd. Everyone knows that no hostnation has ever failed to make it to the sec-ond round, but some believe that theSouth Africans are the worst team to try it.

I’m of the opinion that they can progressand like the look of the 2/1 on Betdaqabout them doing just that. I’ll also be sell-ing France on Sporting Index’s Group A index at 14.5.

Fabio Capello was delighted when hisside were drawn with the USA, Sloveniaand Algeria in Group C. The Three Lionsshould really have far too much for theiropposition, although it wouldn’t surpriseme if they struggle slightly against the

Americans on Saturday. England are tradi-tionally slow starters in the major tourna-ments and the much improved USA should be their toughest opponent in thegroup stage. It is 13/8 on Betdaq for theEngland-USA straight forecast and thatlooks a decent price.

As I’ve already advised, write off Germany at your peril. They don’t havethe best individual players, but they

always play for each other and don’t for-get that they reached the Euro 2008 finalagainst Spain. The Germans have toppedtheir group in all of the last five WorldCups and are just a shade of odds-on to dothe same again. It won’t be easy for

Joachim Löw’s side, as they face Serbia,Ghana and Australia, but they should stillhave too much strength in depth.

The Serbs strike me as the next best andthey could quite easily be the dark horsesof the tournament. England certainly

wouldn’t look forward to a meetingagainst them in the second round.Manchester United’s Nemanja Vidic andChelsea’s Branislav Ivanovic are top quality defenders and their 6ft 7in striker NikolaZigic could prove a handful up front. They look a decent bet to qualify alongside theGermans, so back the Germany-Serbiastraight forecast at 3/1 with William Hill.

Those expecting a similar Brazil side tothe one that last won the World Cup in2002 will be disappointed. This is a farmore disciplined and less flashy teamthan we’ve become used to, but they should still be strong enough to win thegroup of death. Kaka and Luis Fabiano will

be the key upfront and, as long as they stay injury-free, it will be a battle betweenIvory Coast and Portugal for the secondqualification spot.

The Portuguese were disappointing in

qualifying and they will be relying onCristiano Ronaldo to hit form if they are toprogress. Similarly, Ivory Coast are nerv-ously waiting to see if Didier Drogbarecovers from a fractured arm. They werefavourites in the African Nations Cup, but

were eliminated in the quarter-final stageand will be hoping to go at least as far asthat this time. Sven-Goran Erikssson is aproven international manager and he caninspire the Ivorians to finish second

behind Brazil in Group G.

All the latest odds and £100s of bookie freebets

oddschecker.com

l France not to qualify from Group A at 2/1 with Paddy Power / SellFrance on Sporting Index’s Group A index at 14.5l South Africa to qualify from Group A at 2/1 on Betdaq

l England-USA straight forecast in Group C at 6/4 with Paddy Powerl Germany-Serbia straight forecast in Group D at 3/1 with Hillsl Brazil-Ivory Coast straight forecast in Group G at 11/4 on Betdaq

POINTERS...

France could struggleto get through Group A

Ribery struggled for form with Bayern Munichduring the back- end of last season.

Picture: P.A.

World Cup 2010 | Punter 15CITYA.M. 9 JUNE 2010

Check the latest prices of the Football Trader’s tips at oddschecker.com

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8/9/2019 CityAM 09/06/2010



WHERE TO WATCH

THE WORLD CUP

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From a buzzy pop-up to an opulent lounge, we’ve gotthe viewing spot for you, says Zoe Strimpel

FEVER PITCH, FULHAM

You won’t miss a second of build-up if it’s upto World Cup pop-up bar Fever Pitch inFulham. Open since May and closed after

the final, this is the place to enjoy the actionon nine screens spanning 360 degrees whilesipping a pretty decent selection of beer.The 400-capacity venue will serve hotdogs,patriotic breville toasties with ham andmustard and even foie gras and chilli jam.Large French doors and outside space meanyou can take a breather when the goinggets tough. Party atmosphere guaranteed.474-476 Fulham Broadway, SW6 1BY,tel: 020 7610 3137.

BROWN’S HOTEL,MAYFAIRWatch the footie in the heart of civilisationand luxury at the Donovan Bar at the plushBrown’s hotel, where all England games will

be screened along with a football menu andbeers from around the world. You can alsobook a private dining room (fits between 12-60 people sitting, 100 standing) – food will beburgers and bookmaker’s sandwiches, thescreens will be huge and numerous, and therewill be plenty of flags to go around. Check thewebsite for other World Cup packages.Albemarle Street, W1S 4BP. Tel: 020 7518 4162, www.brownshotel.com/world-cup.

MAY FAIR HOTEL, MAYFAIR

One of Mayfair’s classiest establishments,the May Fair Hotel, will provide a super-swish alternative to the hustle and bustleof the local pub screening. Its Amba Salon

will be turned into a screening room serv-ing everything from champagne and winesto brandy and cognac, and fine SouthAfrican beers – Castle and Windhoek. Thehotel is also available for groups of 10-200,screening the games in private suites or inthe 201-seat private theatre. Other pack-ages are available. 70 Stratton Street, W1J 8LT. Tel: 0207 915 3892 ,www.themay- fairhotel.co.uk/world-cup.

PROUD CAMDEN, CAMDEN STABLES

The super-cool Camden stables bar willcater to your wildest World Cup fantasies(bar England winning, perhaps), with a

SKY 3D complex and fifty-inch HD TVs.Cold buckets of beer can be pre-ordered;for afternoon kick-offs, take-away can beordered and delivered to the stable at noextra charge from the bar. Or indulge in abit of Proud’s finest BBQ. Tickets from £2 for Friday games and £1 for Wednesday fixtures. Sky 3D stables including hostess and guest-list passes: £200/£300, 12pm- 6pm/7pm onwards. The Stables Market,NW1 8AH. Contact: [email protected].

BOISDALE OF BISHOPSGATE, CITY

This warm and cosy tartan restaurant fullof blokes drinking whisky and eatingScottish beef will fling itself open to thegods of football come World Cup time, with

a 72” screen in the champagne and oysterbar, and air conditioning (quite a big dealfor somewhere that can get as close asBoisdale). The famous Boisdale burger willbe on offer at halftime throughout thetournament, bar Saturdays and Sundayswhen it’s closed. There will also be largescreens at Boisdale Belgravia. Swedeland Court, 202 Bishopsgate, EC2M 4NR, tel: 020 7283 1763, www.boisdale.co.uk.

THE DECK AT THENATIONAL, SOUTH BANKTurn this elevated terrace at the NationalTheatre into your own private stadium. Partythrowers can cover the space with artificial

turf and change the colour of The Deck’swalls to match their team’s strip, courtesy of a sophisticated lighting system. A suspended65” plasma screen will show the game andwith specially installed speakers, even in thetoilets, so none of the action need be missed.Street food with a South African twist will bewashed down with bottles of beer. National Theatre, South Bank, SE1 9PX. Tel: 020 7452 3796, www.nationaltheatre.org.uk/thedeck.

See the World Cupin world-class style

8/9/2019 CityAM 09/06/2010



TEMPORARY power supplier Aggrekopredicted better than expected annu-al results yesterday, thanks to lucra-tive contracts to power events like the2010 World Cup.

The FTSE 100 company said in atrading update that revenues willgrow by around 10 per cent, and pre-tax profit by about 20 per cent.

The firm said it expects to see a 16per cent increase to revenues fromshort term contracts, mainly through its work at the World Cup,Glastonbury Festival and the WinterOlympics in Vancouver.

Aggreko will deliver broadcastingpower to all ten World Cup match venues, as well as power and tempera-ture control at the broadcast centre –its biggest ever contract for a sportingevent.

The firm also announced it hadsecured a record number of new con-tracts in the first half of the year,including large amounts of work inBangladesh, Indonesia, and Centraland South America.

Chief executive Rupert Soames istravelling to Africa today to highlightthe need for its products on the conti-

nent, as part of the firm’s interna-tional expansion.

Growth in Africa has been affected by the end of several large contractsin Kenya and Yemen, after localpower sources became fully opera-tional.

Revenue for the firm’s internation-al power project is still set to grow by around eight per cent.

The company said rentals of its gen-erators, heaters and coolers have“accelerated markedly” during thisquarter, with around 18 per centmore rentals by power volume expect-ed by the start of the third quarter.

Capital expenditure will now riseto £265m this year, up £45m, withhalf going towards the introductionof low emission generators in North America and half towards the compa-ny’s international expansion.

The firm said that rates “remain weak”, but are showing modest signsof improvement.

Market expectations for full-yearpre-tax profit currently range between £239m and £280m, with theconsensus at £257m, according to a Thomson Reuters analyst poll.

Aggreko was founded in Holland in1962, and the firm now has 3,500staff worldwide.

MALAYSIAN budget airline, AirAsia isplanning to publicly list its long haul business next year as the company undergoes a restructuring.

AirAsia X, the long haul arm, said yesterday it is gearing up for an initialpublic offering during the secondhalf of next year, subject to marketconditions, in a bid to fund further

expansion. The airline, which is part owned by

Sir Richard Branson’s Virgin Group, iscurrently trying to raise 100m ringgit(£20.8m) through a rights issue tohelp with f inancial independence.

“This arrangement gives AirAsia Xfinancial independence and the lati-tude to develop its own marketingstrategy,” said AirAsia chief executive Tony Fernandes.

AirAsia’s business model, whichalso includes a short haul network,has began to show signs of dilution,

according to Fernandes, which led tothe decision to take AirAsia X down a

new route. The group’s long haul operation

has flown more than 2m passengersand is projected to post 2010 revenueof 1bn ringgit.

AirAsia X could re-brand, althoughthe airline said it is currently assess-ing whether or not it will do so. Fornow it will continue to use the AirAsia brand.

Fernandes said: “It is a fantasticproduct and service and we see this

reorganisation as symbolic of it com-ing into its own.”

AirAsia to shed its long haul businessahead of a 2011 initial public offering

TOUR operator Thomas Cook is set tolose its place in the FTSE 100 Indexfollowing the latest reshuffle of blue-chip stocks.

The firm’s shares have fallen by athird in the past three months as thetravel industry copes with the reces-sion and Iceland’s volcanic ash cloud.

The result of the reshuffle will beconfirmed today –although based on Tuesday’s closing share prices, theLondon Stock Exchange is also set to

join it in the FTSE 250. The duo are likely to be replaced in

the blue-chip ranks by yet more over-seas companies. Indian power groupEssar raised £1.2bn in the biggestflotation in London for two years inMay, while it will be joined by Tanzania-focused gold produce African Barrick Gold in making aFTSE 100 debut.

Elsewhere, current small capsportswear retailer JD Sports is set to join the FTSE 250 Index, as well as fel-low fashion chain SuperGroup.

FTSE reshuffle sees newfloats dominate the indexDEFENCE

▲ AIRBUS celebrated yesterday afterreceiving a record breaking order

from Emirates Airline for 32 A380planes worth $11.5bn (£8bn). The deal, the largest of its kind yet,

was signed in Berlin by the airline’schief executive and chairman Sheikh Ahmed Bin Saeed Al-Maktoum and Airbus president and chief executive Tom Enders.

The signing was witnessed by German chancellor Angela Merkel atthe Berlin Air Show.

Enders called the endorsement by

Emirates the best he could imagineand thanked the airline for its sup-port.

“Emirates has supported the devel-opment of the A380 from the earliest

days, and today’s order – the singlelargest A380 order ever – is the bestendorsement I can imagine,” saidEnders.

The Dubai-based airline first pur-chased the luxury jetliner, which canhold up to 835 passengers, two yearsago and yesterday’s order will add toits existing fleet of 58 A380 planes.

“Our latest commitment signalsEmirates’ confidence in the growth tocome in a thriving aviation sector,”

said Saeed Al-Maktoum.Over 16 airlines currently have

orders for A380 crafts, bringing thetotal number of orders to 234.

The orders are good for Airbus,

which posted a 64 per cent drop inoperating profit last year to €83m(£69m), which missed the averagemarket expectations.

Airbus owner EADS, had said lastmonth that the A380 continued tosignificantly weigh on its underlyingperformance.

Meanwhile, Airbus has seen a fur-ther request for 20 A320 and five A350-900 aircraft by Brazilian airline TAM.

Airbus signs $11bn A380 dealBY EMMA SADOWSKI

AVIATION▲

Aggreko set

for a WorldCup windfallBYMARION DAKERS

ENERGY▲

BY EMMA SADOWSKI

AVIATION▲

Aggreko chief executive Rupert Soames is travel- ling to Africatoday to highlight the need for its products on thecontinent, as part of the firm’s inter-

national expansion.

NEWS | IN BRIEF

Umeco’s profits take a hitAerospace parts supplier Umeco sawadjusted pre-tax profits drop by almost13 per cent last year after taking a signif-icant hit from the recession.The UK-based company said profits fellto £24.9m from £28.5m during the yearafter declining business levels hit its com-posite arm, which supplies parts to theautomotive, marine and wind energy sec-tors. “We are weathering the effects of the economic downturn well and havesignificantly reduced our net debt,” saidchief executive Clive Snowdon.

Bridges Wharf £275m purchaseLondon & Stamford Property hasexchanged contracts with Weston

Homes to buy the remaining 57 residen-tial units at Bridges Wharf on the

Southbank of the River Thames next toBattersea Heliport. The acquisition alsoincludes 57 car parking spaces. London& Stamford is acquiring a long leaseholdinterest in the apartments and the carparking spaces for approximately£27.5m. London & Stamford will fundthe acquisition out of existing resources.The Bridges Wharf development com-prises three buildings with a total of 267flats and a five-star hotel.

Henderson Global raises £90mHenderson Global Investors yesterdayachieved a successful first closing of theHenderson Central London Office FundII, having raised £90m of capital from anumber of European and North American

institutional investors, providing it witharound £200m for acquisitions.

ANALYST VIEWS: WHAT DOES THE TRADING UPDATE MEAN FOR AGGREKO?Interviews by Marion Dakers

“

PAUL JONES | PANMURE GORDON

It’s difficult to give enough superlatives about how well Aggreko is performing. They have abusiness that performs extremely well to satisfy both short and long term power demands. There isa lack of investment in power infrastructure in some of their markets and wind and hydro-electric power are unpredictable, so Aggreko’s products will always be in demand.

”

“

GEOFF ALLUM | ARDEN PARTNERS

It is particularly encouraging to see that Aggreko’s push into the Asian and central & southAmerican regions has paid off handsomely. A number of projects are coming to an end in Kenya andYemen, and clearly the kit needed to power the World Cup will also not be needed next year.We have therefore put in only modest growth for next year. Firm ‘hold’.

”

“

MIKE MURPHY | NUMIS SECURITIES

We predicted last week that the warm weather in the US would benefit the business, but wewere still surprised at the amount by which they upgraded. The increased capital expenditure showsthat it has confidence that there is a future in its international projects and services. It’s thethird time it has upgraded their capital expenditure guidance this year, which is very positive.

”

8/9/2019 CityAM 09/06/2010


SENIOR executives at the country’slargest firms are evenly spilt over whether UK takeover rules should betightened in the wake of Kraft’s acqui-sition of Cadbury, according to areport released today.

Fifty per cent of executives at 100major companies with a combinedmarket value of £290bn say the coun-try’s takeover rules should not bechanged, found a survey by DC Advisory Partners (formerly CloseBrothers Corporate Finance).

However, an equal number favournew measures like the minimumlevel of shareholder support beingraised from a simple majority, or only letting long-term shareholders voteon takeovers. And 72 per cent of allthose asked said the expected number of UK firms bought by foreignfirms would rise unless the UK’stakeover rules are changed.

DC Advisory Partners chief execu-tive Richard Madden said: “Peoplefeel more vulnerable. And the execu-tives we talked to are at the sort of big

companies that will be targets.” The moves comes in the wake of US

food firm Kraft’s £11.7bn takeover of Cadbury in January, which led tocomments by the then Labour busi-ness secretary Lord Mandelson thatUK firms might be too vulnerable toforeign takeovers.

The Takeover Panel last monthlaunched a public consultation over whether its rules should be tight-ened. The current coalition businesssecretary Vince Cable backed thePanel’s review. He said: “We welcomeforeign investors but we want allshareholders to be empowered andthe takeover process to be more trans-parent.”

DC’s Madden added that we are ina new period of shareholder activism,shown by Prudential investors forcingits board to drop its $35.5bn (£25bn) bid for rival AIA last month, whichmay ease the need for Takeover Panelrule changes.

He said: “Long-term shareholdersdon’t have to sell to speculators orrival companies. Shareholders at thePru have shown that.”

BRITISH oil explorer Rockhopper yes-terday raised £48.5m to allow it todrill larger-than-expected reserves atits Sea Lion well in the Falklands.

The Sea Lion exploration well findhas sparked renewed tensions between Britain and Argentina, whofought a war over the islands’ sover-eignty nearly 30 years ago.

Rockhopper said it will also use the

cash to develop a second ErnestProspect site.

The explorer issued just over 17mshares, or 10 per cent of shares cur-rently in issue, at 280p per share. Thisrepresents a 3.5 per cent discount tothe stock’s closing price on Monday of 290.25p.

Shares in Rockhopper soared over50 per cent on Friday after it told themarket that Sea Lion had discovered242m barrels of recoverable reserves,more than the original estimate of 170m barrels, and at a higher quality too. It added that further upgrades

were possible.Rockhopper was the first of the trio

of oil firms drilling in the Falklandsto discover oil.

Oil explorer Rockhopper raises £50mto develop a new find in the Falklands

ING has appointed Morgan Stanley tooversee a possible sale of its realestate management arm, as theDutch bank reinvents itself after astate bail-out, sources familiar withthe matter said yesterday.

The hiring of the US investment bank follows months of speculationon the future of the unit – which has$92bn (£63.9bn) in assets under man-agement –while ING is making heavy

cuts to its business at the behest of the European Union.

A spokesman for ING i Amsterdam declined to comment.Morgan Stanley also declined to com-ment. The bank, which received astate bail-out package in October2008, in February scrapped plans tointegrate the unit into INGInvestment Management.

Property market sources suggestthe appointment of banker WilliamConnelly to the helm of REIM inMarch following the sudden retire-ment of George Jautze suggested a

trade sale or break-up of the unit wasa serious ambition.

ING selects M Stanley forpossible real estate sale

PROPERTY▲

UK directors

split over newrules on M&ABYROGER BAIRD

REGULATION▲

BYHARRY BANKS

OIL▲


Funeral policies surge in demand as cost rises

THE death of a friend or lovedone can bring unexpected finan-cial costs, which can compoundthe emotional impact of the

loss. A number of insurance compa-nies offer products which will coverthe cost of a funeral and any related

costs. A report by YouGov SixthSensehas found that only 11 per cent of Britons either currently hold a funer-al insurance policy, and that a further26 per cent answered that they did

not hold a policy at present, but arecontemplating obtaining one in thefuture.

There remains a large core (48 percent of respondents) who hold nofuneral insurance policy and wouldnot consider buying one. Looking atthe recent rise in funeral prices, oureagerness to invest in funeral policiesis completely understandable.

A recent report released by theNational Association of FuneralDirectors found the average price of astandard grave has risen 42 per cent

in the past three years, with an aver-age increase of 48 per cent and 67 percent for cremation and interringrespectively. Since 2003 there has been a cap on social fund grants,

which with funeral costs rising farmore quickly than inflation, hasresulted in a £500 shortfall whichleaves little wonder as to why 37 percent of the public either own or areconsidering investing in a funeral pol-icy.

Elsewhere, YouGov’s BrandIndexhas found that Prudential’s refusal tolaunch another bid for AIG’s Asiansubsidiary, AIA, has been met by decreasing BrandIndex scores.

The Index score is an aggregate of the quality, impression, value, reputa-

tion, satisfaction and recommenda-tion scores, and so serves as a power-ful indication of the overall publicperception of a brand.

Prudential hit a month high of +0.1

on 24 May, but as time passed and an

acquisition seemed increasingly unlikely, the score fell. Having failedin their bid, Prudential’s Index scorehad fallen to -1.2 on 7th June.

Stephan Shakespeare is founder and

chief executive of YouGov.

Fans are protesting over the controversial Glazer ownership Picture: GETTY

BRANDINDEX

STEPHAN SHAKESPEARE

%

16%

26%

11%

48%

ANALYSIS |Funeral Policies

Would rather not say

I do not have a policybut would consider one

I do not have a policy andwouldn’t consider one

I have a funeral policy

Man United

fans slow torenew tickets

MANCHESTER United owners theGlazer family continued their miser-able week with news that only a thirdof the clubs fans have renewed theirseason tickets.

With just four days remaining before the deadline imposed by thethe club, only 18,000 of United’s54,000 strong season ticket base haverenewed their seats.

United fans are renowned for leav-ing it until the last minute beforethey sign-up for another season butCity A.M. understands the number atthis time last year was around 30,000.

Fans hope the numbers reflect agrowing protest against the Americanowners, who have saddled the club with more than £700m of debt.

Supporters group Must are under-stood to hope as many as 15,000 fans will forgo their tickets this year in a bid to force the Glazers to sell theirstake in the club.

More misery was heaped on thefamily last night with the screeningof a documentary revealing an extra£400m of previously undisclosed debttied to the family’s US business inter-ests.

Despite this they maintain Old Trafford is not for sale and will notconsider a fans’ bid of around £1bn.

BY STEVE DINNEEN

SPORT FINANCE▲

GREEN AND GOLD CAMPAIGN PAYING OFF?

4Days until

deadline to renewseason tickets

54,000Total number

of seasonticket holders

15,000Number of tickets thesupporters’ trust hope

will not be renewed

30,000Number who

had renewed thistime last year

18,000Number who have

renewed already

ANALYSIS l Rockhopper

0

50

100

150

200

250

300

350

28 May10 May19 Apr26 Mar8 Mar

p

296.008 Jun

8/9/2019 CityAM 09/06/2010



BT staff may strike for the first timein over 20 years after a pay deal wasrejected yesterday by theCommunication Workers Union(CWU).

The telecoms giant is locked in a bitter feud over pay with their staff.City A.M. has learned BT tabled a two

year pay offer including a three percent rise in 2011, in addition to thetwo per cent already offered for this

year, and a bonus of £250 related toperformance. The group is alsounderstood to have agreed that nocompulsory redundancies will bemade before the end of 2011.

But the CWU said the offer was“unacceptable” as it does not includean immediate pay hike. Last year theunion agreed to a pay freeze but isdetermined to secure a real-term risefor staff this time around.

The union pointed to the firm’sswing back to profit in the fourth fis-cal quarter after a loss the year before.Now it will ballot its staff again todecide whether to down tools.

A BT spokesman said: “Our door hasalways been open to the CWU. We aredisappointed by their initial response.

“We were prepared to go the extramile to try and settle this.”

The UK’s leading fixed-line and broadband provider is desperate toavoid its first strike since it was priva-tised in 1984.

It is understood to be bristling thatthe CWU is pushing for an immediatefive per cent hike after settling for

just two per cent for workers it repre-sents at Virgin Media.

Troubled BT finally began arrestingits declining revenues last month. Itslowed its drop in revenue to just twoper cent and the company now pre-dicts a return to growth in 2012-13.

It is also operating under the cloudof a huge pension deficit, whichstands at £5.7bn. The firm is awaitingresults of a review by the pension reg-ulator into its proposed 17-year planto fund the deficit.

BT plans to cut another £900m incosts this year, after £1.75bn worth of cuts last year.

LONDON bullion dealers are strug-gling to source enough gold sovereignand Britannia coins to keep up withsurging demand ahead of an expectedhike in capital gains tax (CGT) in thenew government’s emergency budgeton 22 June.

Dealers are reporting a backlog of orders for bullion coins recognised asUK legal tender, which are exemptfrom CGT. Anthony Baird, managingdirector of gold dealer Baird & Co, says

the company cannot deliver any Britannia coins until August due to

lack of supply. “We buy directly fromthe public,” said Linda Warner, salesmanager at bullion merchant ATSBullion. “In the last couple of weeks,supply has been drying up becausepeople hold on to what they’ve got in asituation like this.”

The supply situation is worse fromoverseas sources, with European salesonto the market of coins and otherforms of investment bullion particu-larly slack.

London dealers struggleto meet gold coin demand

COMMODITIES▲

NATIONALISED lender NorthernRock plans to cut up to 650 jobs, or 14per cent of its staff, by the end of the

year, as it presses ahead with an over-haul of the bank to prepare for areturn to private ownership.

Northern Rock, Britain’s firstmajor casualty of the credit crunch,

yesterday said it was aligning the size

of its staff with a now much reduced business. The bank is now writingone-fifth of the mortgage business itdid then. The cuts will affect jobsacross the bank, which currently employs some 4,500 people.

Northern Rock also plans to closeits final salary pension scheme, withcurrent members being offered mem-

bership in the money-purchase sec-tion of the scheme, where investment

risk is borne by the employee. Itexpects terms there to be improved.

“We remain in public ownershipand it is important that we continueto deliver value for taxpayers,” chief executive Gary Hoffman said. “Thereis still a challenging economic envi-ronment and in order to meet ourobjectives, we must align our staffinglevel to match the smaller size of the

business.”

Northern Rock reveals plans to slash650 jobs ahead of planned privatisation


SIR DAVID Howard, the former LordMayor and chairman of stockbroker

Charles Stanley, yesterday warnedthat the Treasury’s proposals to intro-duce “living wills” for financial firmscould cost the sector hundreds of mil-lions of pounds in lost profits.

Howard said the cost of such amove to Charles Stanley would bearound £1m, meaning that the sectoras a whole could be hit by a bill of hundreds of times that amount.

The Treasury’s proposals wouldrequire all financial firms to establish

and maintain a detailed due dili-gence mechanism as part of precau-tionary provisions for an orderly

wind-down of their business in theevent of failure.

But Howard argued that the “over- whelming majority” of affected firms,including Charles Stanley, pose negli-gible systemic risk and thereforeshould be granted an exemption fromthe costly procedure. He said his firmis already required to provide the FSA

with detailed plans to wind down the business, meaning that the new plans– which include one director havingto spent a fifth of his or her time over-seeing the due diligence procedures –

are superfluous.“This is just one example of what I

regard as almost ridiculous over-regu-lation of the financial sector, imple-mented as a knee-jerk reaction to the

crisis,” Howard told City A.M..Charles Stanley yesterday unveiledrobust growth in revenue and profitsfor the year to the end of March.Revenue rose 13 per cent to £115m,

while adjusted pre-tax profit leapt 10per cent to £13.7m.

The firm also reaped the benefitsof acquiring boutique Matterley AssetManagement last year, with fundsunder management up 42.2 per centto £12.8bn over the year.

Charles Stanley: No living willsBY VICTORIA BATES


BT staff closer

to door as paydeal rejectedBY STEVE DINNEEN

TELECOMS▲

BEST OF THE BROKERS

ANALYSIS l Davide Campari-Milano

2

4

6

8

9

17 Mar 8 Apr 28 Apr 18 May

€4.158 Jun

CAMPARIJP Morgan Cazenove downgrades Camparito “underweight” noting that the June2011 discounted cash flow derived pricetarget is €3.80 (was €3.85) which is somenine per cent below the current shareprice. It notes Campari’s stock is up 14 percent on an absolute level and relative to thelocal Italian index in the past month.

ANALYSIS l Centrica

260

280

300

320


p

277.308 Jun

CENTRICACentrica is positioned to deliver solid earn-ings growth, according to Bank of AmericaMerrill Lynch (BoAML), which said Centricawill be helped by the impact of acquisitions,the absence of one-off charges, and thedecision to allow margins at British GasResidential to expand. BoAML rates theenergy group “neutral.”

ANALYSIS l Hardy Underwriting

220

240

260

280

300


p230.00

8 Jun

HARDY UNDERWRITINGNumis issues Hardy Underwriting with a“buy” recommendation but said that sharesare likely to remain weak until 2010 earn-ings risks recede towards the end of thehurricane season. However, on a longerterm basis Numis remains positive givenHardy’s growth potential and current lowrating.

To appear in Best of the Brokers email your research to [email protected]

RathbonesThe investment management firm hasappointed Christine Lane as an invest-ment director in its New Bond Streethead office.

Lane joins from HSBC Global AssetManagement and specialises in manag-ing investments for private clients,trusts, pensions and charities.

She is also a fellow of the Chartered

Institute for Securities andInvestments.

Legal & General PropertyThe property-focused fund manage-ment group has appointed TimothyRussell as senior asset manager of itsProperty Unit Trust, Sofia Underabi asbusiness development analyst and NickEldridge as asset manager of itsManaged Fund.

Russell joins from Cushman &Wakefield, where he acted for Hermesand The Wellcome Trust.

Underabi was previously a senioranalyst at IPD, while Elvidge previously

joined L&G Property from Knight Frankon a six-month secondment.

F&CThe investment group has appointedEberhard Glöckner as director for insti-tutional sales, based out of its Frankfurtoffice.

Glöckner previously spent 15 years atAllianz Global Investors, initially as aportfolio manager and then in sales andclient servicing. He has also worked atDresdner Bank and LandeszentralbankKoblenz.

AvivaThe insurer has appointed AnthonyMiddle as UK strategic partnershipsdirector.

Middle will join in December fromrival Axa, where he was most recently

managing director of commercial linesfor the UK general insurance business.

MorrisonsThe supermarket group has announcedsome changes to its team of directors.Martyn Jones, the group trading direc-tor, will move into a new role as groupcorporate services director, focusing ongovernment affairs, corporate responsi-bility, public relations and food safety.

In addition, Richard Hodgson has joined the group as the new commercialdirector. Hodgson, 40, was previouslydirector of buying and then commercialdirector at Waitrose. Prior to that, hespent ten years working in senior rolesat Asda.

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

To appear in CITYMOVES please email your career updates and pictures to [email protected]

Signia WealthThe ultra high net worth wealth manager hashired mobile phones tycoon John Caudwell totake up a seat on its advisory board.

Caudwell will provide entrepreneurial leader-ship for the firm alongside its other advisers,including private equity guru Jon Moulton.

Caudwell previously founded and led theCaudwell Group, including mobile phone retailerPhones 4 U. He sold the group in 2006 for£1.46bn.

NUMBER OF BT WORKERSTHREATENING TO STRIKE

55,000

8/9/2019 CityAM 09/06/2010


WH SMITH yesterday blamed disrup-tion caused by the the Icelandic vol-canco ash cloud for denting salesduring the 14 weeks to 5 June.

The company’s 570 high streetstores saw like-for-like sales fall fourper cent in the period. The group saidlike-for-like sales in the third quarterhad fallen by four per cent at the 500stores in its travel operations, as fewerpassengers passed through its airportshops. Stripping out the effect of the

volcano disruption, like-for-like sales would have been down by just twoper cent, it added.

In a statement to the London Stock Exchange, WH Smith said: “Whilstairport passenger numbers haveremained soft, we continue to outper-form.” WH Smith said the economicenvironment remained uncertain,adding that it would continue to becautious about consumer spending.

The store also yesterday announcedthe appointment of Walker Boyd asthe new non-executive chairman toreplace the retiring Robert Walker.

Boyd re-joined the board on 1February 2010 and will become chair-man on 1 September.

Group chief executive Kate Swannsaid: “The board and I are delightedthat Walker Boyd has agreed to

become chairman of WH Smith. Walker has extensive retail andfinance experience which will servethe company and its shareholders

well.Boyd said: “I am excited at the

opportunities that lie ahead for WHSmith and I look forward to workingclosely with Kate and her team.”

As of 31 August 2010, non-executivedirector Luke Mayhew will also bestepping down from the board and

will be replaced by the appointmentof Henry Staunton, who is a non-exec-utive director at Legal & General,Merchants Trust, Capital & CountiesProperties and retailer New Look.

GUCCI Group’s chief executive RobertPolet has struck a blow to the UK’sstanding in the world luxury goodsmarket by quitting London forSwitzerland.

Polet, whose group includes highend fashion labels like StellaMcCartney and Alexander McQueen,is relocating from Grafton Street, off

Berkeley Square, to Cadempino,Switzerland, along with chief operat-

ing officer Alexis Babeau. The group’shuman resources, legal and IT depart-ments will remain in London.

A Gucci Group spokesman said themove made strategic sense becauseSwitzerland is closer to key marketsin Paris, Milan and Florence.

Yesterday Gucci Group would notcomment on reports that Polet waskeen to move because of the £30,000annual levy per head on foreign, non-domiciled residents in the UK. The

group would not say whether theDutch-born chief is domiciled in the

UK, but sources close to the firm toldCity A.M. a figure that size would beunlikely to affect such a decision.

Gucci, owned by French conglom-erate PPR, moved its corporate head-quarters to London in 1998.

Gucci cuts into London luxury as itsbosses quit London for Switzerland

COMPASS Group yesterday continuedits acquisitive streak, snapping upSoutheast Service Corporation (SSC)in the US.

The global catering firm will handover £45m for SSC, a “soft service”support firm for business and educa-tion with a turnover of £106m.

Compass chief executive RichardCousins said: “Building on the suc-cess of our significant education food-service business, this acquisition

enables us to extend the range of serv-ices we provide in this important sec-

tor.“In addition to this it furtherstrengthens our business and indus-try soft support service offer in North

America.”SSC has been acquired by Compass

Group North America through itsoperating company, Crothall ServicesGroup.

SSC has over 6,500 employees providing services to schools and col-leges, plus commercial clients.

Compass buys SoutheastService Corp for £45mM&A

▲

WM MORRISON yesterday luredRichard Hodgson from Waitrose to becommercial director to replace trad-ing director Martyn Jones, who has

been give the new role of corporateservices director.

Jones will take up his new positionfrom September 2010 when he willstep down from the Morrison’s board.

Hodgson has experience across allareas of the UK grocery market andhas held a number of key roles in

both the premium and value sectors.He previously worked as brand andmarketing director at Asda for ten

years and since 2006 as director of buying for Waitrose. After 2008 hisresponsibilities increased to includemarketing, international develop-ment and merchandising.

Chief executive, Dalton Philipssaid: “I’m delighted to welcomeRichard to the Morrisons team. He

brings wide experience from all areasof the UK grocery market and hasmade a big impact in all of his seniorroles. His appointment underlinesMorrisons ability to attract the very

best talent in retail to our team and we very much look forward to work-ing with him.”

WM Morrison poaches Waitrose secondin command as seeks to move upmarketRETAILING

▲

BRITISH supermarket Sainsbury’spaid its chief executive Justin King

£7.6m in cash, benefits and deferredshares last year.King received £1.1m in bonus pay-

ments, amounting to 120 per cent of his salary, as well £4.2m throughexercising share options, £990k innew deferred shares, a £900k basicsalary and a pension supplement of £270k, according to the firm’s annualreport.

His pay has risen by 60 per cent onlast year, though the remuneration

committee said it had been “mindfulof the current economic climate” by freezing basic salaries for directors.

Finance director Darren Shaplandpicked up a £1.5m package plus

deferred shares, while trading direc-tor Mike Coupe earned £1.4m in basicpay, the figures showed.

Total boardroom pay reached£7.1m.

The board oversaw a strong year forthe grocer, which put on 1m extracustomers to serve 19m per week. Itincreased its market share in the UK

by 0.2 per cent, to 16.1 per cent. The company’s expansion plans

continued despite tough conditions,

with over 100 shops opened orextended to create 6,500 jobs andincrease overall shop floor space by nearly seven per cent.

Underlying pre-tax profit out-

stripped expectations by rising 17 percent, helped in part by a jump in sales by more than five per cent, to£21.4bn. Like-for-like sales, excludingfuel, rose by 4.3 per cent, ahead of thegrocer’s forecasts.

A non-executive bonus pool of £80m will be shared between thegroup’s 127,000 employees.

Shares remained fairly stable fol-lowing the release of the report, clos-ing down 0.6 per cent at 321.5p.

Sainsbury’s King pockets £8mBYMARIONDAKERS

RETAIL▲

Ash cloud hits

airport salesat WH SmithBY ZOHRAMOLEDINA

RETAIL▲

BY JENNY FORSYTH

RETAIL▲

MCDONALDS reported a stronger-than-expected 4.8 per cent rise in

worldwide May sales at establishedrestaurants yesterday, but warned itexpects a weak euro to take a bite outof its full-year profits.

Roughly a quarter of McDonald’sconsolidated operating income origi-nates in countries that use the euro

currency, the world’s biggest ham- burger chain said yesterday.

And based on current exchangerates, McDonald’s expects currency conversion to hurt full-year netincome per share, versus its previousexpectation for a slight benefit.

May sales at McDonald’s restau-rants open at least 13 months rose 3.4per cent in the US and 5.7 per cent inEurope. May same-store sales rose 3.8per cent in the Asia/Pacific, MiddleEast and Africa region due to strengthin Australia and China, better than

the 3.1 per cent increase analysts hadexpected.

McDonalds warns eurowill hurt full-year profits

BYHARRY BANKS

LEISURE▲

Consumer News18 CITYA.M. 9 JUNE 2010

HONDA STRIKES AGAIN

A NEW strike hasbroken out at a factory making exhaust systems for one of Honda

Motor’s China joint ventures, Hondasaid yesterday, just days after the set- tlement of a strikeat another Hondasupplier in China.Some workers at the factory, a joint venture betweenYutaka Giken,which is 70 per cent owned by Honda, and aTaiwanese company, had been onstrike since the first shift on Monday.

Picture: GETTY

ANALYSIS l WH Smith

420

460

500

520

19 May28 Apr8 Apr17 Mar

p 435.008 Jun

Gucci chief executiveRobert Polet took thehelm in 2004, sincethen operating profits

have trebled

8/9/2019 CityAM 09/06/2010


*Selected Austin Reed branded merchandise only.

19

Markets&Investment

over the Gulf of Mexico oil spill, the worst enviromental disaster the UShas faced.

Royal Dutch Shell, Cairn Energy,and Tullow Oil shed 0.5 to 1.2 percent, failing to benefit from a firmercrude price, although BG Groupadded 0.5 per cent after a closing auc-tion rally.

UK-focused banks were poor per-formers on twin concerns over theEurozone debt situation, and thethreat of possible levies on lenders.

European finance ministers sought

agreement yesterday on how to make banks pay for financial crises.

Meanwhile, in a direct warning toBritish investors, ratings agency Fitchsaid the UK faced a formidable fiscalchallenge, sending up the cost of pro-tecting British government debtagainst default.

Lloyds Banking Group, Barclays,Royal Bank of Scotland, and StandardChartered fell 1.9 to 4.1 per cent. Butglobal bank HSBC added 0.6 per cent.

Retailer Tesco shed 2.4 per centafter long-standing chief executive Terry Leahy announced he wouldretire in March 2011.

Miners rose with a firming in met-als prices following recent sharp falls.

Fresnillo, Randgold Resources, BHPBilliton, Anglo American, andAntofagastaadded 0.8 to 4.6 per cent.

ANALYSIS l FTSE

5,000

4,800

5,200

5,400

5,600

5,800

6,000

26 Mar 19 Apr 10 May 28 May8 Mar

5,028.158 Jun

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk

3i . . . . . . . . . . . . . . . . . . . . . . . . 275 .20 –6. 30 314. 80 216 .75

3i Infrastructure . . . . . . . . . . . . .106.60* –1.20 114.40 85.25A.B. Foods . . . . . . . . . . . . . . . . .963.50* –3.00 1045.00 718.50

Aberdeen Asset Man. . . . .. . . . .136.10* –0.10 155.60 111.00

Admiral. . . . . . . . . . . . . . . . . . .1324.00 +1.00 1403.00 833.50Aegis . . . . . . . . . . . . . . . . . . . . . 106. 40 * –2. 60 137. 30 79. 75

Afren . . . . . . . . . . . . . . . . . . . . . . 86. 70 –2. 55 111 .00 38. 50Aggreko . . . . . . . . . . . . . . . . . .1407.00 +53.00 1425.00 476.25Alliance Trust . . . . . . . . . . . . . . .308.10 –4.00 352.70 260.25

AMEC. . . . . . . . . . . . . . . . . . . . . 808. 00 * — 891 .00 603 .50Amlin . . . . . . . . . . . . . . . . . . . . . 369. 30 –2. 60 428 .50 291 .00

Anglo American . . .. . . . .. . . .2477.50 +19.50 3015.50 1540.00Antofagasta . . . . . . . . . . . . . . . .838.50* +6.50 1100.00 546.50Aquarius Platinum .. . . . .. . . . .354.30 +6.50 490.00 172.75

ARM Holdings. . . . . . . . . . . . . . .264.30 –8.50 274.90 104.00Arriva . . . . . . . . . . . . . . . . . . . . . 765. 00 –0. 50 782 .50 378 .50

Ashmore. . . . . . . . . . . . . . . . . . .242.90 +0.90 311.20 183.25Ashtead . . . . . . . . . . . . . . . . . . .106.00 –3.10 128.50 52.00Astrazeneca . . . . . . . . . . . . . . .2921.50 –3.00 3136.00 2472.00

Atkins(Ws) . . . . . . . . . . . . . . . . .685.00 –4.50 730.00 513.50Autonomy Corp . . .. . . . .. . . .1768.00 –35.00 1897.00 1121.00

Aveva . . . . . . . . . . . . . . . . . . . . 1127.00 –31.00 1237.00 661.00Aviva . . . . . . . . . . . . . . . . . . . . . 317. 70 –5. 70 474 .00 274 .75Babcock International . . . .. . . . .565.50 –2.00 660.50 448.50BAE Systems . . . . . . . . . . . . . . .320.30 +1.20 389.90 294.20Balfour Beatty. . . . . . . . . . . . . . .249.90* –3.80 328.85 238.50

Barclays . . . . . . . . . . . . . . . . . . .276.55 –9.35 394.25 255.00Barratt Development . . . . .. . . . ..95.45 –4.55 193.31 91.80BBA Aviation . . . . . . . . . . . . . . .177.60 –6.80 220.00 105.00Beazley. . . . . . . . . . . . . . . . . . . . 112 .70 –1. 20 122. 00 86. 00Bellway. . . . . . . . . . . . . . . . . . . .636.00* –32.00 927.50 591.50

Berkeley . . . . . . . . . . . . . . . . . . .756.00 –14.50 989.50 716.50BG . . . . . . . . . . . . . . . . . . . . . . 1050. 00 + 5. 00 1248. 00 966 .90

BHP Billiton . . . . . . . . . . . . . . .1768.00 +33.00 2346.00 1274.50BlackRock Mining. .. . . . .. . . . .545.00 –11.00 654.50 346.00

Booker . . . . . . . . . . . . . . . . . . . . . 40 .00* –0. 10 49. 50 32. 75BP . . . . . . . . . . . . . . . . . . . . . . . 408. 90 * –21 .40 658. 20 396 .80Brit Insurance . . . . . . . . . . . . . . .728.00 –6.00 831.60 709.00

British Airways . . . . . . . . . . . . . .190.40 –6.00 255.80 117.30British Amer. Tob . .. . . . .. . . .2149.00 +13.50 2335.50 1637.00British Empire Tst . .. . . . .. . . . .418.20* –6.30 467.90 338.50

British Land . . . . . . . . . . . . . . . .436.30 –9.80 532.00 353.00Britvic . . . . . . . . . . . . . . . . . . . . . 469. 80 * –6. 20 497. 70 253 .25

Brown(N.) . . . . . . . . . . . . . . . . . .250.80 –0.40 284.30 204.25BSkyB . . . . . . . . . . . . . . . . . . . .563.50 –6.00 637.50 423.75BSS . . . . . . . . . . . . . . . . . . . . . . 425 .20 –5 .30 444. 90 231. 10

BT . . . . . . . . . . . . . . . . . . . . . . . 125. 60 –2. 80 151 .00 91. 40Bunzl . . . . . . . . . . . . . . . . . . . . . 709. 00 * –1. 00 784. 50 478 .50

Burberry. . . . . . . . . . . . . . . . . . .726.50 +2.00 750.00 359.00Cable & Wire Comms . . . .. . . . ..61.15 –1.20 150.00 53.00Cable & Wire Wwide . . . . . . . . . . .83.05 –2.20 94.80 68.60

Cairn Energy . . . . . . . . . . . . . . . .389.70 –3.20 441.50 306.80Caledonia Invs . . . .. . . . .. . . .1566.00 –24.00 1759.00 1459.00

Capita. . . . . . . . . . . . . . . . . . . . . 770. 50 +1 .00 829. 50 643 .50Capital & Counties .. . . . .. . . . .102.00 +1.80 125.40 99.60Capital Shopping Centres . . . . . .323.50* +3.40 580.00 300.20

Carillion . . . . . . . . . . . . . . . . . . .314.20* –0.80 361.90 236.75Carnival . . . . . . . . . . . . . . . . . .2505.00* –63.00 2937.00 1431.00

Catlin . . . . . . . . . . . . . . . . . . . . . 319. 90 –2. 70 380 .50 284 .75Centrica . . . . . . . . . . . . . . . . . . .277.30* –4.10 320.00 212.50Charter Intl . . . . . . . . . . . . . . . . .660.00 –1.00 855.50 395.25

Chemring . . . . . . . . . . . . . . . . .3259.00 –11.00 3711.00 1910.00Chloride Group . . . . . . . . . . . . . .344.50 +55.90 345.00 129.00

Close Bros . . . . . . . . . . . . . . . . .697.00 –23.50 806.50 623.00Cobham . . . . . . . . . . . . . . . . . . .228.30* –1.20 278.60 164.90

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p )

COLT Group . . . . . . . . . . . . . . . .126.00 –3.20 144.20 98.25

Compass . . . . . . . . . . . . . . . . . .543.50 –6.00 572.00 307.75Cookson. . . . . . . . . . . . . . . . . . .419.00 –6.00 616.00 220.00

Croda Intl. . . . . . . . . . . . . . . . . .994.50 –10.50 1047.00 498.50

CSR . . . . . . . . . . . . . . . . . . . . . . 386 .70 –4 .30 524 .00 320 .75Daily Mail ‘A’ . . . . . . . . . . . . . . . .460.70 –11.70 539.00 264.25

Dana Petroleum . . . . .. . . . .. .1039.00 –13.00 1549.00 968.50Davis Service . . . . . . . . . . . . . . .373.30 –11.80 442.30 307.00De La Rue . . . . . . . . . . . . . . . . . .942.50 +2.50 1021.00 808.50

Debenhams . . . . . . . . . . . . . . . . .55.05 –0.85 91.95 53.75Derwent London . . . . .. . . . .. .1300.00* –30.00 1490.00 844.00

Dexion Absolute . . . . . . . . . . . . .138.10 –0.90 148.00 107.75Diageo . . . . . . . . . . . . . . . . . . .1063.00 +3.00 1176.00 829.00Dimension Data . . . . . . . . . . . . . .95.85 –2.00 105.00 53.75

Domino’s Pizza . . . . . . . . . . . . . .349.60 –10.20 371.20 192.75Drax . . . . . . . . . . . . . . . . . . . . . . 337 .60 + 4. 40 496 .50 321 .50

DSG Intl . . . . . . . . . . . . . . . . . . . . 23. 91 –0. 39 39. 75 19. 25Dunelm. . . . . . . . . . . . . . . . . . . .344.80 –25.20 438.40 202.00Easyjet . . . . . . . . . . . . . . . . . . . .398.10 –8.90 499.90 260.00

Edinburgh Inv Tst . . . .. . . . .. . .387.60 –0.40 412.40 297.50Electrocomponents. . .. . . . .. . .209.90 –2.70 245.00 134.25

EnQuest . . . . . . . . . . . . . . . . . . .101.10 +2.10 112.70 87.35Eurasian Nat Res . . . .. . . . .. . .963.00* +2.00 1276.00 582.00Euromoney Inst Inv . . .. . . . . .. .575.50* –19.00 630.00 191.25Experian. . . . . . . . . . . . . . . . . . .609.50 –5.50 664.50 434.00F&C Comm Prop . . . . . . . . . . . . . .92.00 –1.50 96.80 73.50

Ferrexpo. . . . . . . . . . . . . . . . . . .238.60 –4.30 396.20 112.00FirstGroup . . . . . . . . . . . . . . . . .374.50 –6.50 448.80 322.75Foreign & Col Inv Tst. .. . . . .. . .268.90 –0.70 297.20 210.25Fresnillo . . . . . . . . . . . . . . . . . . .939.00 +41.50 950.00 438.00G4S . . . . . . . . . . . . . . . . . . . . . . 270 .70 + 4. 20 285 .70 197 .90

Genesis Emerging Mkts Fd . . . . .436.50 +3.20 484.00 370.00GKN . . . . . . . . . . . . . . . . . . . . . . 118 .40 –3. 00 155 .00 67. 49

GlaxoSmithKline. . . . .. . . . .. .1157.00* –7.00 1347.00 1023.50Great Portland Estates . . . . . .. .280.50 –10.50 332.10 203.75

Greene King . . . . . . . . . . . . . . . .376.20 –5.80 504.00 359.50Halfords . . . . . . . . . . . . . . . . . . .487.00 –16.50 524.00 299.00Halma. . . . . . . . . . . . . . . . . . . . . 249. 50 + 0. 10 278 .50 168 .50

Hammerson . . . . . . . . . . . . . . . .348.00 –5.10 460.30 277.00Hansen Trans . . . . . . . . . . . . . . . .85.60 –2.85 163.50 78.00Hargreaves Lansdown . . . . . .. .355.00 — 387.00 197.25

Hays. . . . . . . . . . . . . . . . . . . . . . . 96 .00 –1. 00 119. 00 80. 00Henderson . . . . . . . . . . . . . . . . .128.00 +0.80 157.80 83.75

Heritage Oil . . . . . . . . . . . . . . . . . 415. 00 — 630 .00 409 .80Hikma Pharma . . . . . . . . . . . . . .680.00 –9.00 730.00 412.00Hiscox . . . . . . . . . . . . . . . . . . . .337.30 +1.80 369.30 279.50

Hochschild Mining . . .. . . . .. . .292.60 +12.60 370.60 220.00Home Retail . . . . . . . . . . . . . . . .233.80* –6.20 336.50 233.10

Homeserve . . . . . . . . . . . . . . . .2060.00 –25.00 2190.00 1336.00HSBC Hldgs . . . . . . . . . . . . . . . .633.00* +3.60 766.80 487.00Hunting . . . . . . . . . . . . . . . . . . .443.10 –12.30 659.50 377.00

ICAP . . . . . . . . . . . . . . . . . . . . . . 390 .90 + 5. 80 478 .30 291 .70IG . . . . . . . . . . . . . . . . . . . . . . . . 392 .20 –0. 80 436. 30 216 .50

Imagination Tech Gp . .. . . . .. . .235.00 –0.20 289.30 80.00IMI . . . . . . . . . . . . . . . . . . . . . . . 642. 00 –1 .00 742 .00 275. 25Imperial Tobacco. . . . . . . . . . . .1889.00 –14.00 2159.00 1547.00

Inchcape. . . . . . . . . . . . . . . . . . .258.60 –12.80 347.00 255.40Informa. . . . . . . . . . . . . . . . . . . .366.80 –8.50 439.40 216.00

Inmarsat . . . . . . . . . . . . . . . . . . .781.00 –6.50 819.00 491.00Intercontl Hotels . . . . .. . . . .. .1067.00 –20.00 1175.00 584.50Intermediate Capital . .. . . . .. . .252.40 –3.90 332.00 170.25

Intertek. . . . . . . . . . . . . . . . . . .1379.00* — 1576.00 987.50Intl Power . . . . . . . . . . . . . . . . . .289.60* –2.80 354.00 228.00

Invensys. . . . . . . . . . . . . . . . . . .269.40 +1.30 350.30 212.25Investec . . . . . . . . . . . . . . . . . . .468.00 –3.90 565.00 309.75

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p)

ITV . . . . . . . . . . . . . . . . . . . . . . . . 51. 75 –2. 40 71 .75 31. 75

Jardine Lloyd Thompson. . . . . . .552.50 –5.50 604.50 393.00Johnson Matthey .. . . . . .. . . .1493.00 –20.00 1814.00 1077.00

JPMorgan Emerg Mkts. . .. . . . .491.00 +2.00 549.00 350.50

Kazakhmys. . . . . . . . . . . . . . . .1059.00 –15.00 1634.00 567.50 . . . . . . . . . . . . . . . . . .216.00* –0.20 255.00 171.40

Ladbrokes . . . . . . . . . . . . . . . . .134.10 –2.60 174.97 114.60Lancashire Hldgs .. . . . . .. . . . .482.50 –0.80 540.00 416.70Land Securities. . . . . . . . . . . . . .587.50 –13.50 743.50 415.25

Legal & General . . . . . . . . . . . . . .75.65 –0.20 94.40 49.37Lloyds Banking Gp . . . . . . . . . . . .51.76 –2.20 75.58 39.62

Logica . . . . . . . . . . . . . . . . . . . . 119 .50 –2. 00 149. 10 70. 25London Stock Exchange . . . . . . .598.50 –13.00 949.50 592.50Lonmin. . . . . . . . . . . . . . . . . . . 1543 .00 — 2198. 00 950. 00

Man . . . . . . . . . . . . . . . . . . . . . . 235 .10 + 1. 60 373 .60 199 .60Marks & Spencer . . . . . . . . . . . . .332.20* –5.20 412.70 277.75

Meggitt . . . . . . . . . . . . . . . . . . . .304.80 +3.80 328.70 151.75Melrose . . . . . . . . . . . . . . . . . . .209.20 –3.10 251.50 87.75Mercantile IT. . . . . . . . . . . . . . . .876.00 –13.50 1002.00 716.50

Michael Page Intl. . . . . . . . . . . . .376.70* +2.80 461.50 218.50Micro Focus . . . . . . . . . . . . . . . .478.60 –21.40 550.00 300.90

Millen & Copthorne . . . . . .. . . . .393.70 –4.80 496.30 217.25Misys . . . . . . . . . . . . . . . . . . . . . 223. 50 –4. 10 264 .50 157 .25Mitchells & Butlers . . . . . .. . . . .302.50 –10.40 343.90 221.75MITIE . . . . . . . . . . . . . . . . . . . . . 220. 90 –3. 40 281 .70 204 .25Mondi. . . . . . . . . . . . . . . . . . . . . 384. 00 –5. 90 488 .00 182 .00

Monks Inv Tst . . . . . . . . . . . . . . .284.00 –1.10 321.20 222.00Morrison Wm . . . . . . . . . . . . . . .262.00* — 306.30 234.25Murray Intl Tst. . . . . . . . . . . . . . .803.00 –2.50 893.50 575.00National Express. . . . . . . . . . . . .218.00 –5.40 256.80 135.08National Grid . . . . . . . . . . . . . . .484.40* –1.00 607.65 466.71

Next . . . . . . . . . . . . . . . . . . . . .2042.00* –14.00 2360.00 1402.00Northumbrian Water . . . . .. . . . .281.50 –0.90 296.30 219.90

Old Mutual . . . . . . . . . . . . . . . . .107.80* –1.20 127.20 71.00Partygaming. . . . . . . . . . . . . . . .256.00 –4.00 339.70 213.30

Pearson . . . . . . . . . . . . . . . . . . .902.50 –15.00 1069.00 574.00Pennon. . . . . . . . . . . . . . . . . . . .527.00 –5.00 558.00 434.40Persimmon . . . . . . . . . . . . . . . . .359.50 –19.30 534.50 340.25

Petrofac . . . . . . . . . . . . . . . . . . 1174.00 –18.00 1294.00 580.00Petropavlovsk. . . . . . . . . . . . . .1228.00 +6.00 1370.00 515.00Premier Farnell . . . . . . . . . . . . . .216.00* –1.60 249.70 121.25

Premier Oil . . . . . . . . . . . . . . . . 1133.00 –15.00 1431.00 984.00Provident Financial . . . . . .. . . . .814.50* –9.00 986.00 763.00

Prudential. . . . . . . . . . . . . . . . . .525.50 –8.50 665.00 350.25PZ Cussons . . . . . . . . . . . . . . . .295.00 +1.10 305.50 169.75Qinetiq . . . . . . . . . . . . . . . . . . . .119.10 –4.10 179.10 113.90

Randgold Resources . . . . .. . . .6090.00 +135.00 6285.00 3351.00Reckitt Benckiser .. . . . . .. . . .3141.00 –42.00 3667.00 2651.00

Reed Elsevier . . . . . . . . . . . . . . .476.20 +4.80 548.00 403.75Regus. . . . . . . . . . . . . . . . . . . . . . 82. 40 + 0. 40 125 .50 58. 75Rentokil Initial. . . . . . . . . . . . . . .115.70 –1.10 140.20 82.25

Resolution . . . . . . . . . . . . . . . . . . 59. 00 –0. 35 99 .15 58. 45Rexam . . . . . . . . . . . . . . . . . . . .309.00 –4.10 330.50 222.50

Rightmove . . . . . . . . . . . . . . . . .682.00* –42.00 729.00 334.00Rio Tinto. . . . . . . . . . . . . . . . . .3062.00 +10.00 4104.00 1822.00RIT Capital Partners . . . . .. . . .1056.00 –9.00 1159.00 861.50

Rolls Royce . . . . . . . . . . . . . . . .584.50* +3.00 631.50 325.00Rotork . . . . . . . . . . . . . . . . . . .1306.00 –22.00 1482.00 779.50

Royal Bank Of Scot . . . . . . . . . . . .41.45 –1.64 58.95 28.25Royal Dutch Shell A . . . . .. . . .1780.00* –8.50 2068.50 1431.00Royal Dutch Shell B . . . . .. . . .1708.50* –7.50 1997.50 1437.00

RSA Insurance . . . . . . . . . . . . . .117.30 –1.40 142.00 113.10SABMiller . . . . . . . . . . . . . . . . .1883.00 –7.00 2090.00 1210.00

Sage. . . . . . . . . . . . . . . . . . . . . . 236 .80* –4. 40 260. 50 167 .20Sainsbury(J) . . . . . . . . . . . . . . . .321.50* –1.90 373.00 306.50

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p )

Schroders. . . . . . . . . . . . . . . . .1294.00 –12.00 1450.00 764.00

Schroders N/V. . . . . . . . . . . . . .1037.00 –8.00 1185.00 643.50

Scot. & Sthrn Energy. .. . . . .. .1062.00 –12.00 1206.00 357.50

Scottish Mortgage. . . .. . . . .. . .553.00* –6.50 623.50 376.00SEGRO. . . . . . . . . . . . . . . . . . . .261.10 –6.20 403.10 250.00

Serco . . . . . . . . . . . . . . . . . . . . . 606. 50 + 0. 50 656 .50 394 .30

Severn Trent . . . . . . . . . . . . . . .1223.00 –7.00 1258.00 921.00

Shaftesbury . . . . . . . . . . . . . . . .353.50 –3.70 426.50 284.00

Shire . . . . . . . . . . . . . . . . . . . . .1405.00 –9.00 1526.00 798.50

SIG . . . . . . . . . . . . . . . . . . . . . . . 109. 40 –0. 60 146 .60 82. 25

Smith & Nephew . . . . . . . . . . . . .625.00 –5.00 700.50 435.25

Smiths . . . . . . . . . . . . . . . . . . .1021.00 +3.00 1177.00 649.00

SOCO Intl . . . . . . . . . . . . . . . . .1567.00 –27.00 1796.00 1068.00

Spectris . . . . . . . . . . . . . . . . . . .800.00* +8.50 928.00 493.50

Spirax-Sarco Eng . . . .. . . . .. .1391.00 –14.00 1591.00 749.50

Spirent Comms . . . . . . . . . . . . . .104.50 –0.90 127.80 54.50

Sports Direct Intl . . . . . . . . . . . . . .94.15 –1.40 134.00 72.50

SSL Intl. . . . . . . . . . . . . . . . . . . .818.00 –7.50 893.50 481.25

St James’s Place. . . . . . . . . . . . .229.60 –7.10 296.90 172.25

Stagecoach . . . . . . . . . . . . . . . . .177.70 –6.40 204.90 114.75

Standard Chartered. . .. . . . .. .1580.00 –31.00 1847.00 1115.00

Standard Life . . . . . . . . . . . . . . .176.10 –0.80 237.00 172.60

TalkTalk . . . . . . . . . . . . . . . . . . .123.70 –0.80 147.10 106.60

Talvivaara Mining . . . .. . . . .. . .353.30 –0.40 501.50 315.00

Tate & Lyle . . . . . . . . . . . . . . . . .460.70 –5.60 481.40 284.75

Taylor Wimpey . . . . . . . . . . . . . . .28.10 –2.12 54.90 27.80

Telecity. . . . . . . . . . . . . . . . . . . .374.00 –11.00 455.00 272.00

Templeton Emrg Mkts .. . . . .. . .528.50 +2.50 598.00 346.50

Tesco . . . . . . . . . . . . . . . . . . . . . 397. 40 * –9. 70 454. 90 347 .40

Thomas Cook . . . . . . . . . . . . . . .190.60 –5.80 277.20 189.70

Tomkins . . . . . . . . . . . . . . . . . . .237.60* –3.10 258.50 135.00

Travis Perkins . . . . . . . . . . . . . . .746.50 –11.50 915.00 461.00

TUI Travel . . . . . . . . . . . . . . . . . .215.30 –7.80 313.90 214.20Tullett Prebon . . . . . . . . . . . . . . .330.20 –4.30 436.20 261.20

Tullow Oil . . . . . . . . . . . . . . . . .1104.00 –13.00 1375.00 834.50

UK Commercial Prop. . . . . . . . . . .76.85 –1.35 84.90 59.50

Ultra Electronics . . . . .. . . . .. .1589.00 –7.00 1678.00 1064.00

Unilever . . . . . . . . . . . . . . . . . .1867.00* +17.00 2024.00 1419.00

United Utilities . . . . . . . . . . . . . .552.50 — 575.00 429.00

Utd Business Media . .. . . . .. . .487.00 –13.00 579.50 364.75

Vedanta Resources . . .. . . . .. .2090.00 –16.00 2967.00 1262.00

Victrex . . . . . . . . . . . . . . . . . . .1075.00 +5.00 1123.00 498.50

Vodafone . . . . . . . . . . . . . . . . . .135.40* –2.10 153.80 111.40

VT . . . . . . . . . . . . . . . . . . . . . . . 740. 50 –2 .00 773 .00 416. 00

Weir . . . . . . . . . . . . . . . . . . . . . . 902 .00 + 8. 00 1076. 00 437 .50

Wetherspoon(J.D.) . . .. . . . .. . .410.90 –14.40 556.00 348.00

WH Smith . . . . . . . . . . . . . . . . . .435.00* –19.00 551.00 405.25

Whitbread. . . . . . . . . . . . . . . . .1344.00* –24.00 1645.00 778.50

William Hill . . . . . . . . . . . . . . . . .175.40 –0.40 219.50 160.50

Witan Inv Tst . . . . . . . . . . . . . . . .430.00 –0.40 487.00 329.50

Wolseley. . . . . . . . . . . . . . . . . .1524.00 –63.00 1742.00 986.00

Wood Group (John) . . .. . . . .. . .293.10 –2.60 411.70 231.25

WPP . . . . . . . . . . . . . . . . . . . . . . 647 .50 –10 .50 744 .00 380 .50

Xstrata . . . . . . . . . . . . . . . . . . . .924.90 +5.90 1344.50 555.10

Yell Group . . . . . . . . . . . . . . . . . . . 26 .60 –2. 15 86 .00 20 .25

LONDON TOP 250 BY MARKET CAPITALISATION

* Ex-Dividend † Suspended

www.interactivedata.com

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p)

B

ritain’s FTSE 100 share index

fell yesterday, led down by ener-gy shares as BP dropped againon fresh Gulf of Mexico oil slick

worries and banks which were hit by Eurozone debt concerns and thethreat of punitive taxes.

By the close the FTSE 100 was off 40.91 points, or 0.8 per cent at5,028.15 after a choppy session, hav-ing recovered from an intraday low of 4,984.66.

“It has been a bit miserable againtoday, with the bad news over thepast few days for BP, and the banksholding sway,” said David Morrison,market strategist at GFT Global.

“With the FTSE testing the psycho-logically and technically significantlevel at 5,000 ... it’s all a little bit wor-rying.”

Energy shares were the biggest blue-chip fallers, led lower by BP which dropped five per cent after US

president Barack Obama said that he wanted to know “whose ass to kick”

FTSE sunkby BP’s oilslick woes

THELONDONREPORT

Bernanke’sbullishnessboosts US

US stocks mostly rose in volatiletrading yesterday, led by materi-als and financial shares, butinvestors shied away from big-

cap technology shares on concernsabout their European exposure.

The Dow Jones industrial averagegained 123.49 points, or 1.26 per cent,to 9,939.98. The Standard & Poor’s 500Index rose 11.53 points, or 1.10 percent, to 1,062.00. But the NasdaqComposite Index dropped 3.33 points,or 0.15 per cent, to 2,170.57.

Overnight, Federal Reserve chair-man Ben Bernanke said the US econo-my seemed to have enoughmomentum to avoid a “double-dip”recession, giving support to domestic-oriented companies.

Banks amd telecommunicationsservices ranked among the top per-formers. AT&T rose 2.7 per cent to$24.97. Bank of America rose 3.4 per

cent to $15.33 and Procter & Gamble2.5 per cent to $62.14.

THENEW YORKREPORT

8/9/2019 CityAM 09/06/2010


COMMERCIAL property is back in fash-ion. A recent survey by Aberdeen

Asset Management found that UK pension funds are actively looking to

increase their commercial property expo-sure. It found that out of the 166 pensionfunds it interviewed, two thirds had expo-sure to property and 36 per cent of thosesaid they would increase their holdings.Out of the pension funds that weren’tinvested in property, 35 per cent said they

were actively considering making an invest-ment.

So what makes property so attractive forinstitutions? According to John Danes,head of UK research and investment strate-gy at Aberdeen Asset Management, thereare two reasons for this. Firstly, property prices have started to rise again, althoughat a more sustainable rate than before thecrisis. Data from the Investment Property Databank (IPD) shows that commercial

Property’s renaissance

DEBT is the thing: staggering amounts of it,now taken on by sovereign states. And as aresult, there’s a strong bear case forinvestors. But there’s a bull case too.

If you accept that the “debt repayment race”will be won by the least impaired economy, thenthe UK has a pretty good chance. An experi-enced US investor visiting London this week hasprofessed to being mystified as to the popularityof his currency. From his perspective, US indebt-edness and public finances are on a par with thepariahs.

But if it plays its cards right, the UK has theprospect of emerging with a better reputation.How? Its currency is independent, its economicpolicy can be adjusted to fit its circumstancesand its debt has a long maturity. So it is less like-ly to be bullied by financial markets. What ismore, the UK has a relatively developed tax base.We generally play cricket by the rules. We

understand why tax should be paid. And ourbanking system, although not without its prob-lems, is comparatively transparent.

Contrast this with economies where a savingsbank with €45bn of assets is run by a priest-hood; where in the suburbs of a certainMediterranean city the required swimming pooltax is paid by 300 good folk when Google Earthhas identified 17,000 pools; where doctorsdeclare €15,000 of annual earnings yet haveover a million euros in the bank; and a govern-ment where the state uses 626,000 official cars,many of which are Maseratis costing €150,000each. The UK economy, which is still a largemanufacturer, could grow out of its problems. Todo so would see UK assets, gilts and equities,become sought after by investors once again.Yet until now, courtesy of some prominent com-mentators, we seem determined to align our-selves with those countries in the Eurozoneentrapped by debt.

Standing back from this and taking a long-term perspective, there is scope for UK equitiesto do well. Valuations are not demanding, andwe have many world-class companies here.

So even amid the debt, let’s think positively.You never know: it might work.

THE UK LEADSIN THE RACEFOR RECOVERY

DICK TURPINMANAGING DIRECTOR, ARTEMIS

property prices fell by 45 per cent from June 2007 to July 2009. However, priceshave staged a recovery in the past 10months and have risen by 14 per cent.

The second factor is yields. Mark Callender, head of property research atSchroders, says that the average yield in thecommercial property market in the UK isrising and is currently at 6.5 per cent. Even

when you subtract inflation, currently 3.7per cent, commercial property is still yield-ing 2.8 per cent, which is superior to thenominal yield on 10-year gilts, which is 3.47per cent.

Some sections of the market are moreattractive than others, says Callender. Hefavours second-tier commercial property,for example shopping centres or office

blocks located in affluent areas, ratherthan prime property in the City of London,

which he says is starting to look overpriced.He says that the tertiary sector is lookingless attractive. “Old shopping centres orindustrial estates with high vacancy ratesmight have yields of 9-10 per cent, however,the uncertainty about the economic out-look makes these types of investmentsmore risky.”

It can also be worth looking outside of the UK for opportunities, says JesperDambourg, chief executive officer of SaxoProperties, a property investment fund. He

There are goodopportunities in thecommercial sector,says Kathleen Brooks

ANALYSIS l Yields are rising

3 month change incommercial property(% points) Retail

-0.5

0.5

1.0

1.5

0

-1.0

Mar 2007 Mar 2008 Mar 2009 Mar 2010

All PropertyOfficeIndustrial

S o u r c e : I P D / A b e r d e e n A M

Commercial property is back on investors’ horizons Picture: Micha Theiner/City A.M.

Investment | Fund Management20 CITYA.M. 9 JUNE 2010

says there are attractive opportunities incentral Copenhagen, where distressedassets are still selling at a large discount,and he also favours the Swedish market.

Property can pay off. Schroders WestLondon Property Unit Trust, which isfocused on central London office space, hasan average return of 7.9 per cent over five

years. It’s also possible to invest in property funds through equity investments.

Aberdeen Property A Share, a £200m fundthat invests in property company securities,has returned nearly 20 per cent in the last12 months.

The property sector remains far fromhealthy, but it is looking like an increasing-ly attractive addition to a portfolio.

8/9/2019 CityAM 09/06/2010


Issued by Artemis Fund Managers Limited which is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk), 25 The North Colonnade, Canary Wharf, London E14 5HS.For your protection calls are usually recorded. CAM/AE

Each determined, tenacious and above all independent . Yet united in a common cause.

Talk to your Financial Adviser, call 0800 092 2051 or visit www.artemisonline.co.uk

EARN INCOME IN EMERGING MARKETS

JP Morgan Asset Management has announcedthat it intends to launch the first investmenttrust that will focus on dividend income fromemerging markets. Traditionally, emergingmarket equities are a good play on growth.However, as markets mature, more and morecompanies are paying good dividends. Thefund’s initial target is a 4 per cent dividendyield. JP Morgan Asset Management is hopingto have a prospectus available by the end of this month, and it plans to launch at the end of July. The fund will be managed by RichardTitherington.

FUND RATINGS ALERT

OBSR, the fund ratings service, suspended theA rating for DWS Invest Diversified FixedIncome Strategy after it was announced thatMark Dowding, the head of fixed income inEurope for DWS, was leaving the company.OBSR says it will review the situation in thecoming weeks. The ratings service alsoannounced that the Schroder Asian IncomeFund has been awarded an A rating. It arguedthat the fund has employed a pragmatic andvaluation-driven approach, adding that itbelieves the fund is a “solid proposition” in theAsia sector.

NEW UCITS THREE MACRO FUND

M&G’s new Macro Episode Fund is a Ucits IIIversion of a global macro fund managed byPrudential Life for the last decade, which hasreturned an average of 12.2 per cent perannum. Not only does the fund adhere to thehigh regulatory standards demanded by UcitsIII, but it also aims to offer investors highertotal returns than global equities over themedium to long term but with lower volatility.The minimum investment is £1m. The fund ismanaged by Dave Fishwick and Eric Lonergan,who use elements from behavioural finance intheir investment strategy.Emerging markets such as India offer juicy dividends Picture: REX

FUND MANAGEMENT NEWSKATHLEEN BROOKS

CONFRONTED by the statistics, itcould be hard to argue in favour of active management. Very few activefund managers succeed in beating

either the benchmark or their peers on aconsistent basis. Research by Thames RiverCapital revealed that only 10 funds of the1,065 with a three-year track recordappeared in the top performance quartile

in all three years.Disillusionment with active manage-

ment has been growing. Choosing anactive fund did not protect investors fromthe worst of the financial crisis despiteexpensive fees and mediocre performance. Active funds naturally incur greater costs,making it more difficult for their man-agers to generate enough returns to offsetthe fees and create alpha for theirinvestors.

Little wonder, then, that UK pensionsfunds and the like are increasingly recog-nising the attraction of passive invest-ments. The Investment Management Association’s (IMA) latest asset manage-

ment report showed that 23 per cent of institutional assets were passively man-aged in 2008. Saker Nusseihbeh, head of investment at Hermes, says that the active-passive debate is a primarily English issuethanks to the size of the UK pension fundindustry – the second largest in the worldafter the US – relative to the small size of the main market. “The index size makes it

much more difficult for active fund man-agers to add value,” he says.

Given all of this, it is tempting to won-der what place there is, if any, for activefund management. In Nusseibeh’s view,many pension funds still have too muchexposure to what he would call core plus. These are ostensibly active funds but which perhaps only outperform the index by 1-1.5 per cent per year. After fees, the value of these funds is questionable.

The typical model nowadays, says DavidNorman, co-founder of tcfinvestment, isfor sophisticated individuals to have the bulk of investments in a passive strategy but then have a satellite of racier invest-

There’s roomfor both activeand passiveInvestors should get the best of both worldsand blend the two strategies, says Jessica Mead

Look beyond the coreto the satellites

Picture: GETTY

ments where you really believe that theindividual fund manager can add value.

A passive core of around 70-75 per centgives investors exposure to the benchmark, which provides them with beta and allowsthem to devote the time and resources toselecting the best active satellite strategies.

There are some very successful fundmanagers out there but statistics wouldsuggest that unfortunately they are theexception rather than the norm.Institutional investors should choose very high alpha active strategies that comple-ment their low-cost core holdings and ded-icate resources to finding a consistently good manager.

ANALYSIS l Use of Passive and Active Management

0%

20%

40%

60%

80%

100%

CorporatePension

Fund

LocalAuthority

Charity SovereignWealthFund

ThirdParty

Insurance

In-houseInsurance

OtherInsurance

TotalInstitutional

Active Passive

S o u r c e : I M A

Investment | Fund Management 21CITYA.M. 9 JUNE 2010

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8/9/2019 CityAM 09/06/2010


T

HE recent recovery in the oil price has

seen the Canadian dollar strengthen off its lows against the US dollar due to theloonie’s high sensitivity to Canadian oil

exports to the US. A continued rebound in theoil price could well see US dollar-Canadian

dollar fall towards trend line support aroundC$1.0400 and C$1.0330. However, with crudeoil prices currently looking a little weak, wecould see a recovery back towards the recenthighs dollar-Cad highs of C$1.0650. CMCMarkets spread on US dollar-Canadian dollaris C$1.0534-C$1.0538.

The euro continued to be out of favourwith investors and hit a new all time lowagainst the Swiss franc, despite the SwissNational Bank’s (SNB) Herculean attempts tointervene and weaken the franc. The SNB’spresident has said in the past that he plansaction to counter “excessive appreciation” of the franc, and the bank’s efforts saw a sharprise in the euro. But the fundamentals lookset to win out and overall, the chart contin-ues to look bad for the euro. Further losses

could be made, so any traders who are shortmight want to add to positions by sellingmore. Capital Spreads quotes the euro-franc

at Sfr1.3805-Sfr1.3809.The Australian dollar continues to fall

against most currency pairs, once again

bouncing off the American dollar at the$0.81 level that lent it support on two occa-sions in late May. The last time it touched$0.81 it rallied to $0.85 in a matter of daysbut it will take a break of the $0.855 level toconfirm a reversal for the pair. Look to buy ondips back to $0.81. Spread Co offer a spreadon Australian dollar-dollar of $0.8226-$0.8228.

Theeuro-dollar pair was “unnaturally bid”according to some traders yesterday morningas it found plenty of support in the$1.1900–$1.1950 area. This might be the

time for traders to take advantage of theeuro’s support by selling, since prospects oth-erwise look gloomy for the Eurozone, as itsrecent lows suggest. Spread Co offer aspread on euro-dollar of $1.1978–$1.1980.

Juliet Samuel

23CITYA.M. 9 JUNE 2010 Investment | Foreign Exchange

The Canadian dollar relies on oil Picture: GETTY

THE TIPSTEROIL JUMPSEES LOONIE

RALLY, BUTNOT FOR LONG

Japan wins the forex ugly contest

The clouds may parton the euro later thisyear

Picture: REX

Japan is still seen as asafe haven in a dan-gerous world

Picture: REX

I T IS testament to the uncertainty of the times that the yen, the currency of a country with public debt at over200 per cent of GDP, is still viewed as

a “safe haven.” But as CMC Markets’Michael Hewson says: “Currencies are

vying for the title in battle of the uglies”and the yen is a serious contender.

Ever since the euro crisis deepened five weeks ago, prompting a monthly euro low of ¥112 and a dollar low of ¥89, specula-tion has been rife that the Bank of Japan(BoJ) might move to stop the yen fromstrengthening further and hurting

Japan’s vital export sector. These rumours were given a push recently when primeminister Hatoyama resigned (see chart),making way for his finance minister,Naoto Kan, who has said he would makeefforts to “bring the exchange rate to

appropriate levels”.Most analysts, however, admit thatdirect intervention is unlikely, given itsprobable ineffectiveness and its potentialto undermine efforts to persuade China toun-peg the yuan.

But while direct intervention is out, fur-ther QE and fiscal intervention are stillpossible if the dollar-yen drops into themid-80s, depending on how the new prime minister chooses to address thepublic debt problem. Despite his morehawkish rhetoric, Kan is viewed with sus-picion by the markets: his government hasso far only promised to stabilise debt at200 per cent of GDP.

Consequently, Capital Economics’ Julian Jessop sees the yen as almost certainto weaken in one of two ways: either thegovernment will fail to tackle the debt,prompting a fiscal crisis and collapse inconfidence in the yen as a safe haven, or“if the government does its bit and tight-

ens, the Bank of Japan (BoJ) would do its bit and loosen monetary policy”. Jessop

therefore forecasts a dollar-yen level of ¥100 by the end of the year. A fall in the yen would help Japan’s elec-

tronics exporters, but this scenario relieson the cooperation of external events: aglobal downturn or further euro crisiscould spark additional risk aversion thatstrengthens the yen no matter how theBoJ responds. Many are still inclined to

view Japan as a viable safe haven: its highpublic debt is counterbalanced by low pri-

vate debt and a solid financial sector. Andthere seems to have been a levelling out inconsumer confidence.

But as Jessop points out, even if Japandoes lead a recovery, there will still bepressure on the central bank to ensure alow yen, if not through direct interven-tion, then potentially by firing up theprinting presses.

And growth is by no means certain. Thecountry’s ageing population is quickly making its debt burden unsustainable as

former high-saving earners becomespenders in retirement. Saxo Bank’s John

With gloomy global prospects,the yen might be the best of abad bunch, writes Juliet Samuel

ANALYSIS l The ‘Hatoyama effect’

90.50

91.00

91.50

92.00

92.50

93.00

30 May 31 May 01 Jun 02 Jun 03 Jun 04 Jun

PM Hatoyama resigns

US dollar-yen

Source: SG Cross Asset Research

Hardy says that there isn’t anything theBank of Japan can do: “The situation willcontinue until there’s just a horrible col-lapse in trust in Japanese bonds and thecurrency.”

Even so, with the euro testing Brussels’resolve and rumours of a second stimulusin time for mid-term elections in the US,the yen could still be the best of a bad

bunch.

8/9/2019 CityAM 09/06/2010


IF YOU’RE the kind of driver that getstheir kicks out of economy and effi-ciency and can’t wait for the advanc-ing wave of super economical electric

vehicles to get here, then Volvo’s C30 1.6DDRIVe could be the car for you.

The coolest thing about Volvo’s C30DRIVe Start/Stop model is undoubtedly reading the LED screen in front of thesteering wheel which always seems to

read “450m to empty tank”, regardless of how many trips you’ve made. It sips so lit-tle fuel it’s virtually teetotal – in a publici-ty stunt, it was driven from Land’s End to

John O’Groats without refuelling. Which is pretty clever. Thanks to its fuel

efficiency of more than 74mpg, refuellingis not something you’re going to need to

worry about very often. Any performancecompromises with its tweaked 107bhp 1.6litre diesel motor are surprisingly bear-able. The car feels speedy enough and theengine, though loud around town, is sur-prisingly quiet on the motorway. In factthere’s not much here to grumble about.

The car seems quick and, despite a lack of oomph at the top end the drive, was per-fectly satisfactory. The handling was betterthan expected, if a little softer than I

would have liked and the Start/Stop sys-tem worked fine.

Looks-wise, the C30 is attractive. It’sundoubtedly the looker in the Volvorange, not a brand known for its aestheticappeal in the past. The C30 won’t be toeveryone’s taste – it’s a rival to cars likethe Audi A3 and even the kind of design-savvy buyers that may also be up for aMINI or, more recently, a Citroen DS3. Butthe C30 DRIVe beats both hands down oneconomy, for sure. The DRIVe model iseven more intriguing thanks to its tur-

bine-like alloy wheels, which reduce drag,further increasing fuel efficiency. Volvohas put the bulk of its efforts into aerody-namics, and the car now has a smoothunderbody, which – like the wheels –

reduces drag. It even gets its own specially designed spoiler for the same reason.

The elements of the C30 DRIVe that aredifficult to live with are specific to theC30’s design and not its fuel-efficientDRIVe engine. Inside it feels cramped. Theseats are comfortable but stiff – it felt like

we sat on them rather than in them – andthe interior materials – though decent(particularly the soft-touch dash and alu-minum trim) are a little Scandinavian inunderstatement. But the steering wheel is

just too big and the design of the console between the front seats – particularly thearmrest and cupholders – intrusive. Thecupholders are a particular bugbear.Located as they are behind the gear stick,if you put your Innocent smoothie inside,

your elbow will jam into it every time youchange from third to fourth gear. What

with that and the oversized steering wheel, I found myself wanting to sit in the

back just so I could have some elbow room.It does seem more spacious in the back,

though there are two rear seats ratherthan a bench, so it’s only a four-seater.Instead there’s an armrest and a hatchthat you can poke your skis through in

theory, although God knows I wouldn’t want to introduce anything else into thecabin.

As for the boot…well, thanks to theunusual multifaceted shape of the rear of the car the boot is only big enough for acouple of overnight bags. If you can stow them that is, because you’ll have to shovethem through a ludicrous parcel shelf

with a tiny opening flap as if you’re tryingto post an oversize parcel into a postbox.

However, there are some really nice,thoughtful touches. There’s a little clearplastic clip for parking permits so usefulthat I wondered how I had ever lived with-out it. And operating the audio and cli-mate controls – which are housed in whatis the thinnest centre console in produc-tion, with a “floating” aluminium fascia –is simplicity itself. The navigation systemfunctions via a remote which is stored inthe centre cubby, or via switches on the

steering wheel for when the car is moving, which means the system has beendesigned to allow you to input an address

while driving (although I suspect a dis-claimer is needed here that it’s far betterto just pull over). Still, it’s superior to a lotof daft systems that require touch-screen

input, and though people shouldn’t do it, we all know that people do operate thesesystems when driving. Volvo has at leastattempted to make this reality a littlesafer.

For the economy alone I can’t hesitateto recommend a test drive in this car.

Think again, though, if you require any load-lugging practicality. For an urbancommute and occasional weekenderthere’s no doubt that the Volvo C30 DRIVeis worth a look. Just pack light.

The new Volvo lacksspace and beauty,but it’s a knockout if you’re after seriouspetrol economy

The gas-sipping Volvo.

Lifestyle | Motoring

24 CITYA.M. 9 JUNE 2010

OUT OF OFFICEZOE STRIMPEL

LOTUS ART POP UP SHOPBespoke luxury service Couturelab is tohost a pop-up store for high-end Thai

brand Lotus Arts de Vivre, a rare oppor-tunity to purchase one-off pieces.Founded by a Bangkok-based family,Lotus Art de Vivre is known for its strik-ing creations of rare and exquisite jew-ellery, accessories and home décorpieces including cutlery, wine goblets

and suitcases. Opens today, runs to 31 July.Couturelab, 37 Davies Street, W1.

TASTE OF LONDON: CLEAR THE DIARYLondon’s iconic restaurant festival

begins next week, and anyone wholikes good food would be a fool to missit. The great and the good of the capi-tal’s world-leading restaurant scene

will be in situ, selling bite-size portionsof their dishes. Stallholders include

Trishna, Yauatcha, Maze, Le Gavroche,the Dorchester Grill and more, along

with loads of foodie events and speak-ers. 17-20 June, www.tastefestivals.comOne of Lotus Arts de Vivre’s colourful pieces.

The car that delicately sips its fuel

The facts:you can afford a MercedesThe figures:mercedes-benz.co.uk /offersFor more information on our tailor-made

packages or to book a test drive, visit us online.

WORDS BYRYAN BORROFF

THE VERDICT:DESIGN hhhii

PERFORMANCE hhhhi

PRACTICALITY hhiii

VALUE FOR MONEY hhhii

THE FACTS:VOLVO C30 1.6D DRIVe START/STOP

PRICE: £17,6900-62MPH: 11.3 secsTOP SPEED: 118 mphCO2 G/KM: 99MPG COMBINED: 74.3 mpg

8/9/2019 CityAM 09/06/2010


T E R

R E S T R I A L

BIG BROTHER: THE LAUNCHCHANNEL4, 9PM

New series. Davina McCall presents thelast-ever series of the reality show asthe new housemates arrive at thecompound.

MAKE ME A NEW FACE...BBC2, 9PM

Ben Fogle visits Ethiopia to investigatethe efforts of a British charity in treatingchildren who suffer from noma, adisease that causes facial disfigurement.

JUNIOR APPRENTICEBBC1, 9PM

Alan Sugar sends the remainingcontestants to Amsterdam where theymust select designer products and sellthem to retailers back in the UK.

BBC1

SKY SPORTS 17pm Live Twenty20 CupCricket 10.30pm Boots ’n’ All11.30pm FIFA Futbol Mundial12am Football Asia 12.30amTwenty20 Cup Cricket 2.30amSoccer AM: The Best Bits3.30am FIFA Futbol Mundial4am-6am Twenty20 CupCricket

SKY SPORTS 25.55pm Live Junior World

Championship Rugby Union8pm Live Junior WorldChampionship Rugby Union10pm Live Churchill Cup RugbyUnion 12.30am Live ChurchillCup Rugby Union 3am TotalRugby 3.30am-4.30am Boots’n’ All

SKY SPORTS 37pm F3 Euroseries 8pm Boots’n’ All 9pm Polo 10pmTransworld Sport 11pm GolfingWorld 12am European TourWeekly 12.30am Inside the

PGA Tour 1am Champions TourGolf 2am F3 Euroseries 3amMax Power 4am-6am PGAEuroPro Tour Golf

BRITISH EUROSPORT7pm Soccer City Live 7.15pmFIFA World Cup Giants 7.45pmWednesday Selection 7.50pmShow Jumping 8.50pm RidersClub 8.55pm US Tour Golf 9.55pm Ladies European TourGolf 10.05pm Golf Club

10.10pm Sailing 10.40pmYacht Club 10.50pm Cycling11.50pm Rallying 12.20am-12.40am Soccer City

ESPN6pm England v France: 1982World Cup 8pm PremierLeague Football 10pm UltimateFighting Championship 11pmDTM Highlights 12am VWScirocco Cup Review 1amPress Pass 2010 1.30amUltimate FightingChampionship 2.30am DTM

Highlights 3.30am VWScirocco Cup Review 4.30am-5am Press Pass 2010

LIVING7pm Ghost Whisperer 8pmNothing to Declare 9pmSupernatural 10pm MostHaunted 11pm Criminal Minds12am CSI: Crime SceneInvestigation 2am Exposed:Julia Roberts 3am The FreshPrince of Bel-Air 3.50am Maury

4.40am Nothing to Declare5.30am-6am Home Shopping

BBC THREE7pm The World’s StrictestParents 8pm World Cup’s MostShocking Moments 10pmEastEnders 10.30pm FamilyGuy 11.15pm American Dad!12am Junior Apprentice 1amWaterloo Road 2am Bizarre ER2.30am World Cup’s MostShocking Moments 4.30am-5.30am Who Is NelsonMandela?

E47pm Hollyoaks 7.30pm MyName Is Earl 7.55pm Friends9pm Derren Brown: Evening of Wonders 10.35pm BigBrother’s Big Mouth 11.40pm-6am Big Brother: Live

HISTORY7pm How the Earth Was Made8pm The Real Jason and theArgonauts 9pm Royal Inquest10pm World War Two Lost

Films 11pm How the EarthWas Made 12am Royal Inquest1am Clash of the Gods 2amAncient Discoveries 3am NotForgotten 4am-5am WeirdWeapons: The Axis

DISCOVERY8pm How Do They Do It?8.30pm How It’s Made 9pmCreating Synthetic Life 10pmBear Grylls 11pm DeathMachines 12am Deadliest Catch1am Bear Grylls 2am How DoThey Do It? 2.30am How It’s

Made 3am ExtremeEngineering 3.50am TreasureQuest 4.40am World War Two:The Complete History 5.30am-6am How Does That Work?

DISCOVERY HOME &

HEALTH7pm Baby Tales 8pm Hospital9pm Hospital Sydney 10pmSaving Babies 11pm The RealA&E 12am Hospital Sydney1am Saving Babies 2am The

Real A&E 3am Hospital 4amBringing Home Baby 5am-6amStudent Midwives

SKY18pm Fat Families: SecondHelpings 9pm FILM BattlestarGalactica: The Plan 2009.11.20pm Ross Kemp MiddleEast: Israel 12.20am Oops TV12.50am Road Wars 2.40am24 3.30am Tru Calling 4.20amCelebrity Parents’ SOS 4.45amOops TV 5.10am-6am Sell Methe Answer

BBC2 ITV1 CHANNEL4 FIVE

S A T E L L I T E &

C A B L E

TV PICK6pm BBC News6.30pm BBC London News7pm The One Show7.30pm EastEnders; BBC News8pm Waterloo Road9pm CHOICE JuniorApprentice10pm BBC News10.25pm Regional News

10.35pm The National LotteryDraws10.45pm Children’s Emergency11.15pm FILM Proof of Life 2000;Weatherview.1.30am Sign Zone: Country Tracks2.25am Sign Zone: DIY SOS2.55am Sign Zone: Watchdog3.55am Sign Zone: Great BritishMenu 4.55am-6am BBC News

6pm Eggheads6.30pm Great British RailwayJourneys7pm The Beauty of Maps7.30pm South Africa Walks8pm Springwatch 2010: SimonKing looks for young roe deer inDorset.9pm CHOICE Make Me a New

Face: Hope for Africa’s HiddenChildren10pm QI: With Jimmy Carr,Rob Brydon and Bill Bailey.10.30pm Newsnight; Weather11.20pm An African Journeywith Jonathan Dimbleby12.20am South Africa Walks12.50am BBC News5am-6am Close

6pm London Tonight6.30pm ITV News7pm Emmerdale7.30pm Cumbria – Life AfterDeath: Tonight8pm Coronation Street8.30pm Coronation Street9pm Father & Son: Michaelsuspects DI Conroy cannot be

trusted.10pm ITV News at Ten10.30pm London News10.35pm FILM The Illusionist:Premiere. Mystery thriller,starring Edward Norton. 200612.35am The Zone; ITV NewsHeadlines2.40am The Jeremy Kyle Show3.30am-5.30am ITV Nightscreen

6pm The Simpsons6.30pm Hollyoaks7pm Channel 4 News8pm Come Dine with Me:Wags Special: Chantelle Tagoe,Jude Cisse, Jessica Lawlor andNicola T compete.9pm CHOICE Big Brother: TheLaunch: New series. The new

housemates arrive at thecompound.10.35pm DesperateHousewives11.35pm The Big Bang Theory:12am My Name Is Earl12.30am My Name Is Earl1am Music on 4: The Crush 1.30amBig Brother: Live 5.15am-6amCountdown

6pm Home and Away6.25pm Live from Studio Five:Topical reports.7.30pm Daring Raids of WorldWar Two; Five News Update8pm Tutankhamun: TheMystery Revealed; Five News at9.9pm NCIS: A scientist goes

missing.10pm CSI: NY10.55pm CSI: Crime SceneInvestigation11.55pm Poker12.55am SuperCasino4.05am Wildlife SOS 4.30amWildlife SOS 4.55am Rough GuideTo5.10am Neighbours 5.35am-6am Home and Away

9 7 16

39 8

7 30

14 10

13 38

22 25

21 4

11 11

27 5

11 37

3 23 10

5

29

6

31

19

15

28

12

41

8

6

5

16

37

12

12

9

24

42

17

23

4

Fill the grid so that each block

adds up to the total in the box

above or to the left of it.

You can only use the digits 1-9

and you must not use the

same digit twice in a block.

The same digit may occur

more than once in a row or

column, but it must be in a

separate block.

COFFEE BREAKCopyright Puzzle Press Ltd, www.puzzlepress.co.uk

KAKURO

QUICK CROSSWORD

LAST ISSUE’SSOLUTIONS

KAKURO

WORDWHEELUsing only the letters in the Wordwheel, you have

ten minutes to find as many words as possible,

none of which may be plurals, foreign words or

proper nouns. Each word must be of three letters

or more, all must contain the central letter and

letters can only be used once in every word. There

is at least one nine-letter word in the wheel.

SUDOKU

WORDWHEEL

Place the numbers from 1 to 9 in each empty cell so that each

row, each column and each 3x3 block c ontains all the numbers

from 1 to 9 to solve this tricky Sudoku puzzle.

SUDOKU

QUICK CROSSWORD

ACROSS

1 In a softened tone (5)

4 Lone Star Stateof the USA (5)

7 Unspecified items (6)

9 Endorsement madein a passport (4)

10 Fill to satisfaction (4)

12 Child of Adamand Eve (4)

13 Appetising (5)

15 Appropriate, seize (3)

17 Poplar tree (5)

19 Live-action filmabout a piglet (4)

21 Successor (4)

23 Motor vehicle (4)

24 Is unable to (6)

25 Souvenir (5)

26 Smudge, daub (5)

DOWN

1 Shared by two or

more parties (6)

2 Skeletal muscle havingthree origins (7)

3 Lodgings (4)

5 Projecting edgeof a roof (5)

6 Drench (4)

8 Of or relating tothe Devil (7)

11 Children’s game (3)

14 Apprentice (7)

15 Honey-producinginsect (3)

16 Improved (6)

18 Means of communication (5)

20 Stop (4)

22Tatters (4)

The nine-letter word

wasDESERTING

A

G

O

E

RP

N

S

A

4 9 8 6 2

6 3 2 1 4 2 1 5

9 2 6 9 7 5 3 8

7 1 5 8 7 4 9

8 7 9 2 3 1

6 7 4 8 9 3 5

8 6 9 9 7 2

1 5 4 2 4 9 3

4 7 3 1 5 2 6 1

2 8 1 9 7 6 8 5

9 6 1 4 2

Lifestyle | TV& Games 25CITYA.M. 9 JUNE 2010

8/9/2019 CityAM 09/06/2010


Results

ANDY MURRAY admitted he wasgiven a tough test after opening thedefence of his Aegon Championshiptitle with a hard-fought victory overIvan Navarro at Queen’s Club.

Murray, considered as one of the best grass court tacticians in thegame, was given a thorough early sea-son workout by Spaniard’s effectiveserve-and-volley game before eventual-

ly coming through 7-6 (10-8), 6-3.

“It isn’t what I expected from aSpaniard, having a player comeforward to the net,” said Murray,

who now takes on Mardy Fish orSantiago Giraldo in the thirdround.

“I haven’t played a serve-volley-er this year so it was tricky but Istarted returning it well and wehad some good rallies and I madesome good lobs and pass-ing shots.

“I thought I moved pretty well

and I hit the ball well.”Earlier, fellow Briton AlexBogdanovic crashed out after suf-

fering a 4-6, 6-3, 6-4 first-round defeat to Bulgarian wildcard Grigor Dimitrov, while sixth seed GaelMonfils became the tour-nament’s first high-profilecasualty after going down6-3, 6-7 (4-7), 6-2 to GermanRainer Schuttler.

Murray squeezes through at Queen’s

BY JON COUCH

TENNIS▲

LOCK Dave Attwood could be forced toreturn home in disgrace after beingcited over two alleged stamping inci-dent’s in England’s opening tourmatch with the Australian Barbariansin Perth yesterday.

The Gloucester forward is said tohave waded in on Barbarians scrum-half Josh Valentine and then oppositenumber Mitch Chapman in separateincidents either side of the break.

Attwood will now appear before anindependent disciplinary hearing thismorning where, if found guilty, could

be forced to sit out the rest of the five-match summer tour.

The incident capped a disappoint-ing tour opener for Martin Johnson’s

men, who only survived defeat by a

last-minute penalty miss by Berrick Barnes.

Wallaby wonderkid JamO’Connor did much of the early dam-age, scoring a superb hat-trick of triesand adding 10 points with the bootafter two Olly Barkley penalties hadgiven England an early advantage.

A Lee Mears try split O’Connor’sscoring spree, before Dan Ward-Smithand Matt Banahan touched down tocomplete a rousing England fightback to put them 28-25 ahead.

But, not for the first time, ill-disci-pline cost England dear as Barneskicked over once to level the scores

before then missing the vital kick to win the game at the death.

Johnson was not wholly satisfied with his team’s display and insistedsuch mistakes must be rectified aheadof Saturday’s first Test with Australia.“Every part of our game today wasgood in bits and inconsistent in bits,”he said. “We did lots of good things

but we also compounded a few errors.“If you make mistakes at this level

you get punished. Our defence got too

narrow and we paid the price.”

Attwood inban fear asEngland toil

CRICKET

FRIENDS PROVIDENT T20—North Division: (Northampton):Leicestershire 149-8 v Northamptonshire 137-9 (M N Malik4-25). Leicestershire (2pts) beat Northamptonshire by 12 runs. South Division: (The SWALEC Stadium): Hampshire114-9 v Glamorgan 115-3.Glamorgan (2pts) beat Hampshire by 7 wickets. (Brit Insurance Oval): Surrey 97 v Gloucestershire98-0. Gloucestershire (2pts) beat Surrey by 10 wickets.

LV COUNTY CHAMPIONSHIP—Division Two: (Derby):Sussex 429 (R S C Martin-Jenkins 130, M W Goodwin 121)and 71-7 v Derbyshire 337 (C J L Rogers 79, L J Wright 5-65).Derbyshire (8pts) drew with Sussex (11pts).

TENNIS

ATP AEGON CHAMPIONSHIPS (Queen’s Club, London)—1strnd: Grigor Dimitrov (Bul) bt Alex Bogdanovic (GB) 4-6 6-3 6-4, Mardy Fish (USA) bt Somdev Devvarman (Ind) 6-1 6-4,Nicolas Mahut (Fra) bt Yen-Hsun Lu (Tpe) 7-6 (7-2) 6-4, (13)Santiago Giraldo (Col) bt Evgeny Korolev (Kaz) 7-6 (8-6) 4-6

6-3, Xavier Malisse (Bel) bt Dmitry Tursunov (Rus) 6-2 7-6 (7-3), Bernard Tomic (Aus) bt (15) Andreas Seppi (Ita) 6-3 5-76-3, Marc Gicquel (Fra) bt Michael Russell (USA) 7-6 (8-6) 6-3, Dustin Brown (Jam) bt Frank Dancevic (Can) 7-5 6-7 (4-7)6-4, Marcel Granollers (Spa) bt (10) Janko Tipsarevic (Ser) 6-4 3-6 6-3. 2nd rnd: (3) Andy Murray (Gbr) bt Ivan Navarro(Spa) 7-6 (10-8) 6-3, Rainer Schuettler (Ger) bt (6) GaelMonfils (Fra) 6-3 6-7 (4-7) 6-2, (11) Richard Gasquet (Fra) btRajeev Ram (USA) 6-3 7-5, (4) Andy Roddick (USA) bt IgorKunitsyn (Rus) 6-2 6-1.

ATP GERRY WEBER OPEN (Halle, Germany)—1st rnd:Andreas Beck (Ger) bt Sergiy Stakhovsky (Ukr) 6-1 7-5,Nicolas Kiefer (Ger) bt (3) Mikhail Youzhny (Rus) 4-6 6-1 7-5,Marco Chiudinelli (Swi) bt Olivier Rochus (Bel) 6-3 2-6 6-3,Mischa Zverev (Ger) bt Florent Serra (Fra) 6-4 6-4, PhilippKohlschreiber (Ger) bt Ruben Bemelmans (Bel) 7-6 (7-2) 6-7(10-12) 6-4, (1) Roger Federer (Swi) bt Jarkko Nieminen (Fin)6-4 6-4, (6) Jurgen Melzer (Aut) bt Alexandre Kudryavtsev(Rus) 3-6 7-6 (7-2) 6-2.

SPORTS EDITOR JON COUCH

email [email protected]

SPONSORS:

PREMIER PARTNER:

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FROM YOUR DESK

IN THE CITY

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’S LEAD

ING

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AM England’s Dan Ward-Smith is brought down by Mark Chisholm. Picture: ACTION IMAGES

Sport26 CITYA.M. 9 JUNE 2010

BY JON COUCH

RUGBY UNION▲

28

28

AUST. BARBARIANS

ENGLAND

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