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30/08/10 – 03/10/10 is 110,015

Shares areback to2008 level

GLOBAL stock markets surged yester-day to their highest level since the col-lapse of Lehman Brothers over two years ago, in reaction to the FederalReserve’s decision to try and hastenthe pace of the recovery by pumping$600bn (£372.69bn) of fresh funds intothe US economy.

The FTSE 100 index of leadingshares closed up 113.82 points or twoper cent at 5,862.79 –its highest pointsince 9 June, 2008, while in EuropeFrankfurt’s Dax rose by 1.8 per centand Paris’s CAC-40 by almost two percent.

Wall Street followed suit with theDow Jones industrial average jump-ing by 219.71 points to close at11,434.84 – its highest level since theLehman collapse. The Nasdaq, meanwhile, finished at its highest levelsince January 2008.

The rally was broad-based withcommodity prices rocketing, pro-pelling gold to a record high of $1,390.76 an ounce and the price of a barrel of Brent crude oil to a six-month high of $87.80.

Sterling raced to as much as$1.6299 against the dollar, a level notseen since January as investors betthe Fed’s boost could fuel inflationand devalue the greenback. “The Fedhas taken a fairly aggressive stanceraising confidence that Bernanke is

doing everything he can to keep theUS economic recovery on track,” saidCity Index’s Joshua Raymond. ALLISTER HEATH: P2, MARKETS: P23

BY KATIE HOPE

FINANCIAL MARKETS▲

A US jury did not believe that Terra Firma boss Guy Hands had been misled by Citigroup during his £4.2bn bid for EMI Picture: REUTERS

FINANCIER Guy Hands yesterday losthis “irresponsible” $2bn (£1.25bn)fraud case against Citigroup linked tohis purchase of struggling musicgroup EMI.

A New York federal court jury took four hours to decide unanimously lastnight that David Wormsley, one of Citigroup’s top bankers, did not lie toHands during his £4.2bn bid for thegroup in May 2007.

The decision is a blow for Hands, who said in court that 60 to 70 percent of his wealth is tied up in EMI.

The Guernsey-based British tycoonoriginally sued for $8bn, and claimed Wormsley repeatedly misled himabout a rival bid to trick him into rais-ing his offer for the music label, whichowns the Beatles’ back catalogue andthe Abbey Road studios.

Citi provided £2.6bn in last-minuteloans to help fund the takeover, net-ting the bank tens of millions of pounds in fees.

Hands’ private equity company Terra Firma struggled to turn the debt-laden music group around, and hemoved to place blame with his formerfriend Wormsley.

Terra Firma said after the judge-

ment it believed the lawsuit was “animportant action to bring and we hada responsibility to our investors to bring it. We will continue to focus on

GUY HANDS LOSES$2BN CITI TRIAL

BY MARION DAKERS

PRIVATE EQUITY▲

www.cityam.comIssue 1,257 Friday 5 November 2010 FREE

UK IPOSTILL ONSANTANDER

INSISTS FLOAT ISON TRACK P3

achieving the right result for themand EMI.”

The decision by controversial US judge Jed Rakoff could force TerraFirma to hand EMI to Citigroup, itsmain creditor, if the firm starts to breach banking covenants. Handsasked investors for £105m in June to

meet key repayments, and has askedCiti several times to consider refinanc-ing its £3bn debt pile.

Citigroup said: “The jury’s verdict

makes clear that Terra Firma’s irre-sponsible accusations of fraud werenothing more than a misguidedattempt to gain leverage in debtrestructuring negotiations.”

During the heated three-week trial, jurors heard Hands argue that Wormsley had fabricated a rival bid by

Cerberus Capital during three phonecalls the weekend before the deal. Wormsley said he couldn’t rememberthe details of the calls.

“I think Mr Wormsley was putthrough a terrible ordeal. He was total-ly innocent, he did nothing wrong,”Citigroup trial lawyer Ted Wells toldreporters outside the courtroom. “Heis a man of honesty and integrity.”

Wells told the court that Hands“can’t shift responsibility for his bad

business decision from his company toCitigroup.” Citi stock shot up 3.3 percent after the verdict to close at $4.33.

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8/8/2019 Cityam 2010-11-05


News2 CITYA.M. 5 NOVEMBER 2010

Russia in talksfor Potash bid A RUSSIAN group said yesterday it was in intensive talks ahead of launching a rival bid for Potash Corp,as BHP Billiton said its blocked $39bn(£24.7bn) bid for fertiliser groupPotash Corp was not dead andpledged to work with the Canadiangovernment.

Phosagro claimed it was in inten-sive talks with the Russian govern-ment and potential partners for arival bid, and said it would announceits next move after 15 November.

Meanwhile, a spokesperson for BHPsaid yesterday that the Anglo- Australian mining giant will contin-ue to work with Industry Canada toresurrect its takeover offer, which was blocked by industry minister on Wednesday night. The firm has 30

days to meet the government’s condi-tions, which have not been made pub-lic.

However, agriculture ministerGerry Ritz hinted yesterday that theBHP’s Australian roots had been a fac-tor. “Australia is a major marketer of alot of the same foodstuffs thatCanada is. We’re a volume producer -so are they,” he said in a speech.

BHP’s London-listed shares rocket-ed 6.6 per cent yesterday as relievedinvestors saw the odds of an expen-sive takeover lengthen dramatically.Shares in Potash fell 2.4 per cent.

BYMARION DAKERS

M&A▲

NEW HOLE IN CONNAUGHT DEBT The scale of debt at Connaught, thecollapsed property services group, will be greater than previously thought after administrators found50,000 invoices that the company hadnot accounted for. Managementaccounts had led administrators fromKPMG to believe that the social hous-ing maintenance arm of Connaughtowed £46m to unsecured creditors,on top of the £22m to HMRC.

SAMSUNG TARGETS SALES OF 1MTABLET PCSSamsung Electronics, the world’s sec-ond-largest mobile phone maker,forecast sales of more than 1m of itsfirst tablet computer by the end of this year, as it revealed plans tolaunch the device in several sizes tofight Apple’s dominance of the fast-

growing segment. Encouraged by thesuccess of Apple’s iPad, which sold

3.3m units in the three months afterits launch in April, groups including

Research in Motion, Cisco, Lenovo,Hewlett-Packard, LG Electronics andZTE are preparing their own tablets.

CLEARING HOUSE WARNING TO IRISHBOND TRADERSFears over the health of the eurozone bond market intensified after one of Europe’s biggest clearing houses warned investors they could be com-pelled to stump up substantially more money to trade in Ireland’sdebt.

ITALY SLAMS PRE-COOKED DEALSFranco Frattini, Italy’s foreign minis-ter, has lashed out at France andGermany for trying to “pre-cook”agreements for the rest of theEuropean Union, most recently at theDeauville summit where NicolasSarkozy and Angela Merkel ham-mered out their compromise on

budget rules and sanctions to preventanother Greek-style crisis.

HAULFRYN PITCHES ON WITH £60MDEBT FACILITYHaulfryn Group, one of Britain’s biggest holiday and residential park owners, has defied the credit crunchto secure a new £60m debt facility from Barclays. The group, founded inNorth Wales in 1935 by the Minopriofamily, from Italy, said that the new facility, from Barclays Corporate inManchester, would allow the group tospend £3m a year over the next five years upgrading the parks.

TECH GROUPS BLIND TO LURE OFOLYMPIC GOLDOnly one technology company back-ing David Cameron’s vision to createa Silicon Valley in East London hasformally agreed to move into theOlympic Park. Cisco Systems, makerof networking gear, has said it will

establish a presence but Facebook,Google plan to remain central.

HAMMERSON PLANS NEW ST ALPHAGELANDMARK The company has submitted an appli-cation for a two-building project on itsSt Alphage site at London Wall Place –formerly earmarked for JP Morgan’snew headquarters – and will immedi-ately start a search for a pre-let. Theproposed development, likely to cost£350m and designed by Make, is strik-ingly different to the skyscraper proj-ects restarted by British Land andLand Securities.

BRANSON BEGINS STRATEGIC REVIEWOF VIRGIN ATLANTICSir Richard Branson has hiredDeutsche Bank to examine strategicoptions for Virgin Atlantic in a movethat could eventually see him relin-quish control of his airline. Bransonasked the German bank to study the

airline’s market position in the wakeof BA’s tie-up with American Airlines.

GERMANY'S BAYERNLB, WESTLB ENDMERGER TALKSState-controlled wholesale banksBayernLB and WestLB said they termi-nated merger talks after just six weeks, dashing hopes for substantialprogress on consolidation in theGerman Landesbanken sector.BayernLB bank said its management board decided at its meeting Wednesday that the bank won’t con-tinue the talks.

ADIDAS RAISES SALES FORECAST Adidas AG raised its full-year salesforecast Thursday after reportingthird-quarter net profit rose 25 percent, driven by higher sales in all itsregional markets and at its Reebok unit. The sporting-goods maker saidnet profit in the three months to 30September was €266m (£232m) com-

pared to €213m last year. Revenueincreased 20 per cent to €3.47bn.

WHAT THE OTHER PAPERS SAY THIS MORNING

Stock markets are wrong about QE2

YESTERDAY’S stock market rebound isthe proof that investors don’t alwaysget it right – or at least, that they stilllove to get drunk on the prospect of cheap money. Stock markets in the USand UK jumped, taking equities back to the time when Lehman Brothers was just another big investment bank.

One may argue that higher equity prices are justified, with corporateearnings beating forecasts – but theresurgence of the past few weeks hasnothing to do with fundamentals andonly a bit to do with the US mid-termelections. Its overwhelming driver was

the Fed’s announcement (and prior tothat, the expectation) that it would buy more government bonds.

Yet America’s misguided QE2 policy will merely continue to fuel the bonds

bubble, driving down yields to irra-tional levels and reversing the re-pric-ing of risk. Thursday’s 5.3 per centdecline in the Vix index, Wall Street’sfear gauge, was irrational. Severalemerging market economies said theFed’s move made any substantive dealon cutting global economic imbal-ances less likely at next week’s G20meeting in Seoul. Developing coun-tries also threatened fresh steps tocurb capital inflows which are push-ing up their currencies against thedollar. Brazil said it would use the G20meeting as a forum to complain aboutthe Fed’s decision. The Chinese werealso predictably irate. In South Korea,the minister of finance and strategy said it would “aggressively” considercontrols on capital flows; Turkey’seconomy minister, where the central bank has been buying foreign

exchange to curb appreciation of thelira against the dollar, said the Fed’spolicy might backfire. Thailand raisedthe possibility of concerted action tocombat the flood of investment dol-

lars that are pouring into emergingmarkets. The Indians muttered veiled warnings. Even the Germansslammed the decision. The wholething is turning into a disaster and whipping up protectionist sentiment. Why is nobody listening?

In truth, some are: the CRB index of commodities hit its highest level inover two years, the greenback fell andthe price of gold surged. All of theseare typical inflation hedging signs. Ina note last night, Charles Dumas of Lombard Street Research went as faras to predict that QE2 will actually cutUS GDP by pushing up food and ener-gy prices, reducing domestic demand.

It is imperative that we start to wean ourselves from our addiction tocheap money. QE2 is creating anotherfalse market in government bonds just when we need to normalise

finance and price risk properly. TheFed is the problem – not the solution.

NO HAND OUTI have a lot of time for Guy Hands but

his decision to sue Citigroup over itsrole in his takeover of music giant EMI was a bad error of judgment. Ratherthan trying to shift the blame, heshould have taken responsibility forhis disastrous decision. He borrowed billions to buy the firm at the heightof the bubble, even though the entireindustry is being undermined by tech-nological change (though EMI isn’tdoing too badly at the moment).

It was always hard to know how aUS jury would rule, especially in thecurrent anti-finance climate – on theone hand, a dreaded Wall Street giant,on the other, an equally despised buy-out firm led by an Englishman. But yesterday’s decision against Hands was a breath of fresh air. He shouldstop grumbling and get on with try-ing to rescue his troubled empire.

[email protected]

LONDON firefighters called off theirBonfire Night strike last night with just hours to spare, citing concernsover the safety of the public.

Matt Wrack, general secretary of the Fire Brigades Union, said theunion had scrapped plans to strikeon Friday from 10am through to9am on Sunday.

“We are always concerned abouttaking any strike action -- including

on Bonfire Night,” Wrack said aftertalks between London Fire Brigadeand the union.

The dispute over proposed shiftchanges has not been resolved but Wrack said management had with-drawn a threat to sack firefighters if they refused to sign new contracts.

The London Fire Brigade had wona High Court order earlier in the day stopping striking firemen from blocking attempts by stand-in crewsto answer emergency calls onBonfire Night.

BYHARRY BANKS

PUBLIC SECTOR▲

Bonfire Night strike is off A firefighter at the picket line

NEWS | IN BRIEF

Bad mortgages to cost banksThe top US banks could face up to$31bn (£19.1bn) in losses from buyingback bad mortgages, Standard & Poor'ssaid in a report yesterday. Large USbanks are facing pressure to buy backsoured home loans that they packagedinto mortgage bonds and sold to

investors. The six most exposed firms,including Bank of America and JPMorgan, could face up to $43bn in totallosses from mortgage buybacks through2012, but they have already accountedfor about $12.4bn of those potentiallosses, according to S&P.

Xstrata to face Sphere rivalA rival bidder has emerged forAustralian iron ore prospector SphereMinerals, which has already agreed aA$514m (£320m) takeover bid byLondon-listed Xstrata. Sphere's biggestshareholder, Sin-Tang Development Pte,said yesterday it plans to reveal an alter-native bid as soon as today. The grouprefused to support the takeover effortsof Xstrata, which currently holds an 8.15stake in the firm and this week raised itsoffer by 25 per cent to secure an agree-ment from Sphere.

EDITOR’S LETTER

ALLISTER HEATH

7th Floor, Centurion House,24 Monument Street, London, EC3R 8AJTel: 020 7015 1200 Fax: 020 7283 5334Email: [email protected] www.cityam.com

EditorialEditor Allister HeathDeputy Editor David HellierNews Editor Ben GriffithsNight Editor Katie HopeAssociate Editor David CrowBusiness Features Editor Marc SidwellLifestyle Editor Zoe StrimpelPictures Alex Ridley

CommercialSales Director Jeremy SlatteryCommercial Director Harry OwenHead of Distribution Nick Owen

Editorial StatementThis newspaper adheres to the system of

self-regulation overseen by the Press ComplaintsCommission. The PCC takes complaints about theeditorial content of publications under the Editor’sCode of Practice, a copy of which can be found at www.pcc.org.uk

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BHP Billiton chief exec-utive Marius Kloppersbegan a hostile $130-ashare bid for PotashCorp in August

8/8/2019 Cityam 2010-11-05


News 3CITYA.M. 5 NOVEMBER 2010

SPANISHlender Banco Santander willgo ahead with plans to list its Britishunit, which grew during the globalfinancial crisis chiefly through acqui-sitions, chairman Emilio Botin said

yesterday. A tentative timetable for the share

sale could be during the first half of 2011, Botin said at a news conferencein Sao Paulo. The largest Eurozonelender announced last week that itsplanned initial public offering of

Santander UK could fetch about$4.8bn.

“For now we don’t have any otherplans to list other subsidiaries,” Botin,accompanied by the chief executive of Santander’s Brazil unit, Fabio Barbosasaid.

Botin’s remarks come after Wednesday’s unexpected departureof Antonio Horta-Osorio as head of Santander’s UK business. Horta-

Osorio was seen by analysts as the banker who steered the consolidationof the Spanish lender’s acquisitions inthis country.

The bank’s UK unit began after itspurchase of Abbey National in 2004.Santander expanded over the pasttwo years with the purchase of

Alliance & Leicester and parts of Bradford & Bingley and Royal Bank of Scotland. Santander named Botin’seldest daughter, Ana Botin, to replaceHorta-Osorio later on Wednesday.

Emilio Botin added that his bank has no plans to expand in Asia

through acquisitions or change thecurrent structure of the bank’s Chinapartnerships. He added thatSantander plans “no big investments”in Asia.

In addition to positioning for aneventual recovery of the UK economy,Santander has also been ramping uplending in Latin America, wheregrowth will likely be near the highestin three decades this year.

Santander topress on with

UK IPO plansBYHARRY BANKS

BANKING▲

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Osborne willgive Budgeton 23 March

THE Conservative-Liberal Democratgovernment will present its 2011 budg-et to parliament on 23 March, chancel-lor George Osborne said yesterday,proposing changes to the way govern-ment spending is dished out.

Osborne foreshadowed tighterchecks on a huge part of the budgetused for top-up funding by govern-ment departments which face swingsin unpredictable areas such as socialsecurity. Osborne said he hoped next

year’s fiscal policy statement wouldcontain details of a new framework for department funding to improve

budget discipline across government,as the coalition seeks to cut £81bnfrom spending over four years.

Osborne also yesterday hinted thata fresh round of so-called ‘quantita-tive easing’ (QE) could be on thecards.

“The Governor of the Bank of England has observed that robust fis-cal policy gives more flexibility tomonetary policy, and that is the prin-ciple I take to economic policy-mak-ing,’ Osborne told the Commons

Treasury Select Committee yesterday.

BYHARRY BANKS

POLITICS▲

OBAMA’S TAX COMPROMISE

THE White House yesterday signalled it could compromise with Republicans on tax cuts,the first possible policy shift by US President Barack Obama since his Democrats lost thisweek’s midterm elections. Reeling from an electoral defeat that gave Republicans control of the House of Representatives and strengthened their ranks in the Senate, Obama needs toagree on extending Bush-era tax cuts or they will all run out at the end of the year.

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NEWS | IN BRIEF

Coca-Cola offers $4.5bn in debtCoca-Cola Co hit the market yesterdaywith its largest ever debt offering of $4.5bn, including a three-year trancheat one of the lowest interest rates everin the high grade corporate bond mar-ket. The offering comes as the soft drinkcompany aims to take advantage of lowrates. Coke is offering to buy back arange of debt securities in a tender offer,including three-year notes at a couponof 0.75 percent, which tied it with thedeal obtained last month by Wal-Mart .

Oracle could hit SAP for billionsOracle has laid the groundwork to claimbillions of dollars more from SAP thanpreviously indicated, raising the stakesin their closely watched legal battle oversoftware theft. SAP, Europe’s largestsoftware firm, has admitted to liabilityfor the theft by a now-defunct sub-sidiary, TomorrowNow. The two arefighting it out to determine how muchthe German company should compen-sate its bigger American rival. FormerOracle president Charles Phillips told thecourt yesterday his ex-employer wouldhave charged SAP at least $4bn to $5bn

for the rights to use the software thatTomorrowNow improperly downloaded.That far surpasses Oracle’s previousdamages estimate of about $2bn.

Japan’s Resona in share issueResona Holdings plans to raise about$6.2bn in the Japanese bank’s first pub-lic stock offering since it was effectivelynationalised in 2003. Resona, Japan’sfourth-largest bank, will issue about500bn yen worth of new shares.

Peacocks sale is called off The owners of Peacocks, the discountfashion retailer, have called off talks tosell the company after prospective buy-ers opted against stumping up the£500m price tag, according to SkyNews. Bain Capital and Blackstone, thetwo remaining bidders for the company,have decided not to make formal offersafter indicating that they were not pre-

pared to meet the asking price of Peacocks' owners.

8/8/2019 Cityam 2010-11-05


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RUPERT Murdoch was yesterday assessing how much damage a probeinto his proposed bid to bring BSkyB

back under the News Corp umbrellacould cause.

Business secretary Vince Cablestepped in to order a preliminary investigation into the bid by media

watchdog Ofcom, with a full EUprobe also on the cards.

At the very least News Corp faces alengthy delay in a deal it had previ-ously thought would be a formality.

Speculation was last night mount-ing that Murdoch is already weighingup plans to offload either Sky News,the root of recent “media plurality”complaints, or even his flagship

Times newspaper. Media analystClaire Enders, of Enders Analysis, told

City A.M.: “If Sky News was sold, that would be problem solved as far asmedia plurality goes. But Sky News isan integral part of News Corp’s plans. Itis also loss making and will remain that

way, which would make it difficult tosell. The same goes for the Times.”

News Corp wants to buy the 61 percent of Sky it doesn’t already own in adeal that would value the firm at £12bn.

News Corp isfacing longSky bid delayBY STEVE DINNEEN

MEDIA▲

BT’S mammoth pension deficit willfall by £2.9bn thanks to a change that

will link pension payments to theConsumer Prices Index inflationmeaure instead of the Retail PricesIndex. The fall in deficit, which stood at£9bn in 2009, will immediately havean impact on interest payments made

by the telecoms giant.It will also have an affect on BT’scontributions to the scheme whenthe level of deficit is recalculated atits triennial review in 2011. BT hasalready suggested the deficit hasdropped to around £6.6bn since 2009.

The reduced liabilities will meanBT could end up either paying lessthan its current £525m a year contri-

bution, or paying off the sum soonerthan planned.

Future pension increases for266,000 former workers will now bearound 0.75 per cent lower than

before, translating to a cut of almost afifth in payments.

BT has stressed it has no say in theimplementation of the new inflationmeasure, which was applied to allpublic sector pension schemes by thecoalition in July. The City welcomedthe move, with shares in the firm

jumping almost 3.3 per cent to 161.6p.

BT pension deficit slashed by£3bn by new inflation measureBY STEVE DINNEEN

TELECOMS▲


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Vince Cable (top) has asked Ofcom to probe News Corp’s bid for Sky, led by Jeremy Darroch

HOW BIG IS RUPERT’S HEADACHE?

Q.SO WHO IS INVESTIGATING THENEWS CORP BID?

A.Business secretary Vince Cablehas asked communications

watchdog Ofcom to prepare a reportfor him. Cable will then decide

whether an investigation by theCompetition Commission should belaunched. The EuropeanCompetition Commission will alsodecide whether it will launch a sepa-rate investigation after being noti-fied of Sky’s intentions on

Wednesday.

Q.WHY ARE BOTH THE EU AND UKINVESTIGATING?

A. As the deal would be worth over£5bn it falls to the European

Commission to approve the deal. It will decide whether a full competi-tion investigation needs to take place.But Cable is looking at the deal froma different angle: media plurality.Ofcom will prepare a report advising

the business secretary if it thinks thedeal could harm UK media.

Q.SO HOW LONGIS THAT GOING

TO TAKE?

A. At the moment we’re not sure.Cable has asked Ofcom to pre-

pare its report by the end of December. He will then consider

whether to ask the CompetitionCommission to investigate. If he goesfor this option, a 24 week investiga-tion will be launched which wouldinvolve inviting evidence, holdinghearings and reporting findings. TheEuropean Commission probe would

be marginally quicker at around fourmonths.

Q.HOW LIKELY IS A FULLINVESTIGATION?

A. It’s a pretty good bet. Last timeOfcom looked at a similar case

was Sky attempting to take a stake inITV, and the watchdog decided there

were implications for media plurali-ty. It’s difficult to imagine them not

expressing similar concerns thistime around.

Q A&

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NEW US claims for jobless aid rose last week and a strong rebound in produc-tivity in the third quarter showedemployers wringing more outputfrom current workers rather than hir-ing. US business productivity rose at astronger-than-expected 1.9 per centannual rate, the Labour Departmentsaid yesterday, leading to a surprise dipin unit labour costs, a closely watchedgauge of inflation pressure.

The data came a day after theFederal Reserve launched a pro-gramme to buy an additional $600bn

(£369bn) worth of government bondsout of concern over lofty unemploy-

ment and the risk slowing inflationcould lead to a downward price spiralthat could shackle the economy.

The US government’s closely watched monthly employment report,to be released today, is expected toshow anemic jobs growth in October.

Initial claims for state unemploy-ment benefits increased 20,000 last week to a seasonally adjusted 457,000,reversing the prior week’s decline, thedepartment said in a separate report.Economists had expected claims tocome in at 443,000.

The data suggested little improve-ment in the stagnant US labour mar-

ket and continued downward pressureon inflation.

BNP PARIBAS, France’s biggest listed bank, ruled out a capital increase tomeet tougher industry rules andpromised a positive end to the year, boosting investor confidence in the banking sector.

French bank stocks have laggedpeers for much of the year over con-cerns they lack the capital strength tomeet incoming capital regulationsknown as Basel III. But sentiment isturning after forecast-beating resultsfrom BNP and rival Societe Generale.

Falling loan provisions and strongretail banking exposure helped thetwo beat third-quarter forecastsdespite a sluggish quarter for invest-ment banking that hurt rivals CreditSuisse, Nomura and Morgan Stanley.

Both BNP and SocGen have also saidtheir own profit generation would beenough to comply with the Baselrequirements ahead of the 2019 dead-line, ruling out the need for a capitalincrease.

BNP chief executive Baudouin Protsaid BNP would outdo SocGen underBasel III with a core Tier 1 ratio “bet-ter” than 7.5 per cent by January 2013.

“[There will be] no capital increase whatsoever... I’m very confident on thecapital position,” Prot said.

BNP, Europe’s third-biggest bank by market value behind HSBC and BancoSantander, said its Tier 1 ratio at theend of 2012 would overall beunchanged. It is currently nine percent. The bank also said the shift tonew Basel capital requirements wouldadd a total of €70bn (£61bn) to its risk- weighted assets.

BNP reported net income of €1.9bn,up 46 per cent year-on-year. Revenue, which was forecast to fall slightly, rose1.8 per cent. Prot said corporate andinvestment banking held up welldespite a sluggish quarter – revenuesat the unit fell 17 per cent – whileretail rebounded “strongly”.

BNP Paribas’

outlook addsto confidence

INSURER Old Mutual yesterday report-ed better-than-expected sales and saidplans to streamline the company wereon track despite a failed attempt to sell banking subsidiary Nedbank to HSBC.

Old Mutual boss Julian Roberts saidHSBC’s surprise withdrawal lastmonth from the deal, seen as a key plank of Old Mutual’s overhaul, was “a

shock to everybody,” but would notderail the three-year restructuringeffort. “Right now we’re thinking of what is the appropriate option for usmoving forward. We’re not in any rushto do anything,” he said.

Old Mutual, an Anglo-South Africanfinancial conglomerate with opera-tions in over 30 countries, had intend-ed to sell its majority stake in South Africa’s Nedbank as part of a strategy to concentrate on life insurance amid

investor concerns its lack of focus hadheld back its share price.Old Mutual reported unit trust sales

for the three months to 30 Septemberof £2.9bn, up 36 per cent compared with the same period last year, and well ahead of the £2.2bn expected by analysts. The strong unit trust sales off-set a flat performance in life insur-ance, where sales rose one per cent onthe year to £351m, lagging consensusat £372m.

Old Mutual says it’s unfazedby failed deal to buy Nedbank

Employers wringing more fromstaff as US jobless claims surge

BYHARRY BANKS

BANKING▲

WORLD ECONOMY▲

BYHARRY BANKSINSURER▲


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MAN Group saw client assets reboundmore strongly than expected, boost-ing its shares and raising the prospectthat the world’s largest listed hedgefund company can finally start win-ning back investors.

Man – which has just bought small-er rival GLG with its $25bn (£15.4 bn)of assets to become less reliant oncomputer-driven funds -- said it ran$40.5bn at the end of September,$1bn more than an earlier forecast.

Stronger returns from Man’s flag-ship fund AHL have driven the recov-ery. AHL, the $21.9bn fund thatlatches onto trends in global futuresmarkets, is named after 1980sfounders Michael Adam, DavidHarding and Martin Lueck. The fundshave recently benefited from the

weakness of the dollar.“This better run from AHL com-

bined with the potential from theGLG acquisition provides Man withstrategic opportunities for the second

half of 2011 and into 2012,” saidEvolution’s Michael Sanderson, who

yesterday published a ‘buy’ recom-mendation on the stock.

Man declined to say whetherOctober marked a turnaround in out-flows after clients pulled out money for the eighth straight quarter in thethree months to the end of September, even as the wider indus-try has started to win back clients.

The shares surged 12.6 per cent toclose at 290.8p after the announce-ment, having underperformed theFTSE All-Share by 24 per cent so far

this year. Man said that client out-flows – institutional as well as privateinvestor money –in the three monthsto 30 September were $600m.

The firm also said pre-tax profit forthe six months to September beforeadjusting items was $227m, abovethe $215m it forecast in September.

Man has said it will make $50m worth of cost savings in the after-math of the GLG takeover and ana-lysts are expecting around 180-200redundancies.

MAN sharesboosted by astronger AHLBYDAVID HELLIER

FUND MANAGEMENT▲


Man Group chief executive Peter Clarke saw client assets rebound morestrongly thanexpected in thethree months to theend of September

Picture: GETTY

The time has come for a stock re-ratingOh Man. The world’s largest listedhedge fund group has gone throughthe wringer over the past few months with clients pulling money

out of its funds faster than it canattract new money in.

This has been the pattern not justfor one quarter, but for eight on thetrot. What’s never a good trend for afund manager, especially one asambitious as Man, was magnified asfar as the commentators are con-cerned because of its decision to buy out its small but tremendously highprofile rival GLG.

Yesterday saw the first welcome

signs of a possible reversal of thattrend, although it is probably toosoon to be confident the group hasachieved a lasting breakthrough.

There is definitely the prospect of some light, it seems, at the end of this very long tunnel. In particularthe recent weakness of the US dollarhas had the effect of boostinginflows into Man’s flagship AHLfund, which focuses on trends inglobal futures markets.

With cost savings due from themerger, this could be the time tosupport the shares, which trade at asizeable discount to the sector.

BOTTOMLINEAnalysis by David Hellier

p290

270

250

210


ANALYSIS l Man Group

p 290.804 Nov

8/8/2019 Cityam 2010-11-05


nomic cycles. “The problem of pricing bitsof paper has been around for a long time,”he summarised. “But of course, S&P willdo a great job for you.” Ever the graciousguest, Professor.

EYE-POPPYINGCity folk might have noticed an unusually high number of poppies dispersedthroughout the Square Mile yesterday – but it was no accident. Five years ago, Aoninsurance’s Ben Hancock was fresh out of the army after 11 years’ service, having just moved to his job in the City. “The f irst winter, I noticed there weren’t many peo-ple wearing poppies, so I grabbed five of the old muckers [from the army] andcame here to sell them,” he told TheCapitalist in busy Leadenhall Market, where servicemen and women were gath-ered to grab a pint between shifts of

poppy-selling. This year marks the fifthtime that Hancock has organised for serv-ing infantry to come into the City in uni-form and sell poppies. “Seeing young guys

in uniform is such a powerful message,”he says, “and seeing them standing side by side with young guys in the City – it’sthe good old military principle of concen-tration of force.” It seems to be working. This year the poppy sellers have expandedto include those in the navy and airforceto beat last year’s record fund-raising of £60,000 in a day. With 450 sellers fromPaddington to Canary Wharf, Hancock isconfident: “At lunchtime we had £15,000in Canary Wharf alone, from 120 sellers,”he said. City A.M. proudly displays a poppy on its front page. Keep buying!

GIVING IT AWAY The great and good of theCity philanthropy worldgathered for a three-course banquet yesterday as JMFinn launched its2010 Charity P e r f o r m a n c eGuide. The 1,192-page guide offersthe latest financialinformation oncharity investmentmanagers, legal advis-ers, auditors, trusteesand funds and was launchedat a meal for some 50 trustees of dif-ferent charities around the UK hosted by JM Finn’s head of charities JohnDale. The issue at stake was theshrinkage of charitable funds over the

last year, with overall assets declining 2.5per cent as hard-pressed philanthropists withdraw their funds for other require-ments. Over salmon and steak, the vari-ous trustees and non-profit professionalsheard economist Chris Watling of Longview Economics warn of a bond bubble in the wake of the Fed’s quantitativeeasing programme. “The hot money isrunning into bonds. You always want todo the opposite of what the central bank

says,” he advised, to some rather disgrun-tled bond investors among the gatheredtrustees. But it was on emerging marketsthat he hit his stride. “South Korea hasproved it can grow,” he said. “Nigeria stillhasn’t proved it.” News to JM Finn’s Anthony Eaton, head of the firm’s Africaninvestments, who flashed a cheerfulsmile. He’s off to Nigeria in just a coupleof weeks to check up on that unprovengrowth.

JOCKEYING FOR FUNDSIrish City supremo Basil Geoghegan wason the prowl for his countrymen this

week, inviting JP MorgaCazenove employees up to theseventh floor of the firm’sMoorgate building for anevent to promote the IrishFund of Great Britain (IFGB),supported by City bankers

like Goldman Sachs’Michael Casey andLazards’ Peter Kiernan.Geoghegan was keen todiscuss the great tri-

umphs and downfalls of Irish colleagues in the City

and to promote the Irish members’ network, whose reach

extends from New York toSingapore. And Irishmen and women arekeeping a keen eye out for the group’snext event, featuring ex-jockey and racingcommentator Mick Fitzgerald.

BROUGHTONLYING LOW

AT CHELSEAMATCHESMARTIN Broughton, the Liverpool FCchairman who brokered the deal to sellthe troubled club to the owners of theBoston Red Sox last month, was back where he feels most comfortable this week. Broughton was spotted walkingout of Stamford Bridge after watching his beloved Chelsea beat Spartak Moscow.But Broughton, who will ease himself outof Liverpool once the new owners arefully ensconced, has a diplomatic issue tosort out before the weekend whenChelsea visit Liverpool. Last season, the wily businessman, who is also British Airways chairman, absented himself

from the corresponding fixture whenChelsea needed to win to come close totying up the Premiership. But this timeBroughton can’t bring himself to stay away. The Capitalist understands that heis intent on travelling to Anfield for theSunday afternoon fixture but he will bekeeping a “low profile”. No singing Blueis the Colour for the Liverpool chairmanthen.

VERTIGO To the aptly named Vertigo at Tower 42, where guests of S&P SecuritiesEvaluation’s risk-to-price cocktail party reported popped ears and slightly queasy stomachs after the whiz up the elevatordeposited them so close to the bar’s stun-ning, wraparound view over the City. TheCapitalist has to admit that swiftly refilledchampagne flutes and a sparkling, vertig-inous view make for a heady mix – but what better way to enjoy the sights of London than from forty floors abovethem? S&P Securities Evaluation MDDamian Burleigh kicked off the evening,advising the crowd of bankers and invest-ment managers that the setting – in Vertigo’s narrow circular bar – was apt todemonstrate that “there’s always a blindspot” (one can only hope the firm’s risk pricing advice comes with the same prac-tical twist). Economist Tim Congdon,meanwhile, was keen to regale the crowd with some poetry, reciting a work by 19thcentury banker Lord Overstone on eco-

Liverpool FC chairman promiseshe’ll keep a low profileat Sunday’s game

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The Capitalist10 CITYA.M. 5 NOVEMBER 2010

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Ted Jones and Mungo Ker, ex-army muckers

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8/8/2019 Cityam 2010-11-05


THE Bank of England yesterday votedto hold fire on further quantitativeeasing (QE) and kept interest rates onhold at 0.5 per cent, in a move that was widely expected following thestrong GDP data released last week.

Prior to the publication of third-quarter GDP, which showed the econ-omy growing at twice the rateexpected by City economists, many had tipped November as a likely month for the Monetary Policy

Committee (MPC) to move.Since it is an Inflation Report

month, the Bank benefits from freshgrowth and inflation forecasts. These will be made public next Wednesday when the Bank’s Inflation Report ispublished.

The decision not to follow in thefootsteps of the Federal Reserve boost-ed sterling against a broadly weakerdollar, reaching an intra-day high of $1.6296.

Many analysts still believe that the

Bank of England will expand QE fur-ther in 2011.

“A simultaneous launch of QE2 on both sides of the Atlantic wasn’tgoing to happen, but we still think the Bank of England will be forcedinto taking the plunge in 2011,” saidGraeme Leach, chief economist at theInstitute of Directors.

ING’s James Knightley said: “Thelack of credit availability, fiscal aus-terity and falling house prices arelikely to weigh on activity and we do believe that the Bank will eventually follow the Fed down the route of addi-

tional QE.” He adds that this is mostlikely to happen in the second quar-ter with £50bn of gilt purchasesspread over three months.

The European Central Bank (ECB)also maintained the status quo yester-day, leaving the cost of borrowing atone per cent. In the press conference,ECB president Jean-Claude Trichet saidhe was confident the Federal Reservestill supports a strong dollar, after itcommitted to pumping more money into its economy via bond purchases.

GDP surprisekeeps MPC onhold for now

Bank of England governor Mervyn King still has plenty to worry about Picture: GET

BY JESSICAMEAD

UK ECONOMY▲

Focus on MPC decision 11CITYA.M. 5 NOVEMBER 2010

“

PHILIP SHAW |INVESTEC

The MPC isnervous about highinflation and recentbrighter news on theeconomy would likelyhave to swingsharply into reverseto prompt thecommittee torestart QE.

”

“

ANDREW GOODWIN |ERNST & YOUNG ITEM CLUB

Further QE isonly likely if there aremore tangible signsthat the recovery isrelapsing. Equallypolicy is unlikely tobe tightened anytime soon given thenumber of risksto the outlook.

”

“

MICHAEL SAUNDERS |CITIGROUP

Sticky infla-tion data and decentGDP growth will per-suade the MPC thatextra QE is not need-ed in coming monthsas well. We do notexpect the MPC tohike in the nearterm either.

”

ECONOMIST VIEWS: WILL THE MPC EXPAND QUANTITATIVE EASING?Interviews by Jessica Mead

8/8/2019 Cityam 2010-11-05


NORTHERN Rock yesterday con-firmed chief executive Gary Hoffman will quit the firm for NBNK Investments, the new high street banking venture established by Lloyd’s of London chairman LordLevene.

Hoffman will be placed on garden-ing leave until 30 April, until whichpoint he will receive his full £700,000a year salary, car and petrol allowanceand pension paid at 40 per cent of salary.

He will not receive a bonus for the year or a “golden handshake” pay-ment.

Chairman Ron Sandler will step upto executive chairman – the positionhe first held in 2008 – with immedi-

ate effect. Sandler says the bank hasno plans to find a replacement chief executive and he will take on his new

role “indefinitely”.He denied Hoffman’s departure

was linked to the imminent re-privatisation of Northern Rock.

The move causes a headache forthe taxpayer-owned bank as NBNK is widely regarded as a potential buyerfor Northern Rock.

However, under the terms of theagreement, NBNK will not be allowedto bid for the bank for at least 12months, potentially forcing the tax-payer to maintain control of the troubled lender for longer than planned.

Sandler stressed there is “notimetable or process in place” for thesale of the bank.

Hoffman willleave RockBY STEVE DINNEEN

BANKING▲

CABLE & Wireless Communications(CWC) reported a two per cent rise infirst-half sales in what it said was amixed economic environment, andsaid its full-year expectations wereunchanged.

CWC, which trades in a number of overseas territories including the

Caribbean, the Maldives and Panama,said a strong performance in Macao

and Monaco & Islands, however, had boosted its core profit by four percent. In the first half, CWC’s revenue was $1.2bn (£738m) and earnings before interest, tax, depreciation andamortisation were $424m. CWC splitfrom the former Cable & Wirelessgroup this year.

The remaining business, nowcalled Cable & Wireless Worldwide,

services corporate and governmentcustomers.

CWC sees sales rise as it battlesthrough choppy economic watersTELECOMS

▲

THE OFFICE of Fair Trading (OFT) said yesterday that smaller retail banksface significant challenges when try-ing to entice customers away from thehigh street giants.

Customers are reluctant to switch banks and remain loyal to existing brands, the watchdog said in aresearch paper published yesterday.

Smaller banks also complained of

difficulties in getting approval fromthe Financial Services Authority, andof higher capital requirements hit-ting new entrants disproportionately.

“A number of firms have recently entered the market, and more areexpected to follow,” said OFT execu-tive director for goods, services andmergers Clive Maxwell, in a nod tothe newly-opened Metro Bank.

“While we found few barriers tosetting up, new firms trying to grow in this market face difficulties due to

customers’ low levels of switching,loyalty to incumbent providers, andattachment to a local branch.”

The OFT also warned that a lack of inter-bank lending following thefinancial crisis could also hinder thegrowth of new banking groups.

The OFT’s review will be submittedto the Independent Commission onBanking, which was set up by thenew government in June to look atcompetition and stability in the bank-ing market.

OFT claims new banks facehurdles to high street successBYMARION DAKERSBANKING▲


Northern Rock boss Gary Hoffman leaves for start-up rival NBNK Picture: REUTERS

Ron Sandler will stepup from chairman toexecutive chairman to

fill the post left byGary Hoffman

8/8/2019 Cityam 2010-11-05


OCTOBER showed more weakness inUK auto sales, an industry group said yesterday.

Total UK automotive sales fell 22.2per cent in October, to just over131,000 units, according to theSociety of Motor Manufacturers and Traders (SMMT), with further declinelikely in the next few months. Despitethe declines, total car sales year-to-date are up 1.5 per cent over 2009.

Total new car registrations are fore-cast to be 2.026m this year, a 1.9 percent increase from 2009. The decline

comes as the SMMT chief executivePaul Everitt sees “slow, but steady”

economic growth boosting registra-tions in 2011, according to the trade body.

Other analysts think the sectorfaces hard times next year.Government budget cuts and a rise in VAT tax may equal less disposableincome, according to IHS GlobalInsight economist Howard Archer.

“These pressures will make con-sumers’ very careful about splashingout on as big-ticket an item as a car,” Archer said. But Archer also said con-sumers may buy more cars before the VAT rate increases to 20 per cent next year. Corporate buyers have also

stayed out of the car market, suggest-ing pent-up demand.

AVERAGE property prices have fallen1.2 per cent in the last three months,according to the latest Halifax houseprice index.

The closely watched index from theLloyds Banking Group-owned lendershowed house prices rose 1.8 per centin October which helped to partially reverse the 3.7 per cent decline fromthe previous month.

But the quarterly decline in houseprices is still the sharpest fall sincethe middle of last year.

The drop is not as steep a decline assome previous falls seen over the lasttwo years, however, which were some-times as much as five per cent duringthe height of the economic downturn wiping around 25 per cent off proper-ty prices in just one year before recov-ering.

House prices were also only 1.2 percent higher than a year ago, downfrom an annualised rise of seven percent back in May.

“An increase in the number of properties for sale in recent months,together with a decline in demandhas put some downward pressure on

prices,” Martin Ellis, Halifax’s chief economist, said.

“We do not believe that prices areset to fall sharply over a sustainedperiod. Interest rates are likely toremain very low for an extended peri-od, which will continue to supportthe improved mortgage affordability position for homeowners.”

However, Howard Archer, econo-mist at IHS Global Insight said heexpected further falls in house pricesover the next twelve months predict-ing they could decline by as much asten per cent.

The figures from Halifax are in line with those produced by theNationwide building society, theother closely watched house priceindex, which showed house pricesover the last three months had fallen1.5 per cent but had risen 1.4 per centin October year-on-year.

The most recent data from theCouncil of Mortgage Lenders (CML)also showed the number of mortgageapprovals for last month were lessthan half their average prior to theeconomic downturn. First-time buy-ers are on average being asked for adeposit of around 20 per cent fromlenders, according to the CML.

Market cools

as propertyprices tumble

Car sales down in October withweakness ahead, industry warns

BYMATTHEWWEST

UK ECONOMY▲

ECONOMY▲

Economic News 13CITYA.M. 5 NOVEMBER 2010

CITY VIEWS: WHERE DO YOU THINK HOUSE PRICES WILL GO IN THE NEXT FEW MONTHS? Interviews by Juliet Samuel

“I’d estimate house prices will rise.Personally, I think a double dip isn’t going to

happen, contrary to whata lot of people say.House prices havealways been the firstto bounce back, even if they might have to godown in thenear term.”

SUNIL KESUR |SELF-EMPLOYED TRADER

“I’m fairly bearish on property. The num-ber of properties on the books is going up

and so I’m not hopeful forprices. There are lowvolumes so the resultsare volatile month-to-month. I think nextsummer will bethe troughin prices.”

KEITH ABERCROMBY |LV

“In general I believe they’ll continue to godown and as long as the economy in general

is not going anywhere, prop-erty won’t go anywhere.We might see a turn-up inspring – assuming theeconomy picks up.Otherwise, they’ll staywhere they arefor a long time.”

RICHARD DEEM |OPENREACH

“I hope house prices will recover but Idon’t see any particular reason why they

would. I think London issheltered from it tosome degree but over-all, despite some signsof recovery, the latestfigures don’tmake pleas-ant reading.”

MILES OSORIO |MONTPELIER SYNDICATE & LLOYDS

8/8/2019 Cityam 2010-11-05


DIRECTLY Operated Railways (DOR)reported profit of £1.2m yesterday asa result of a three per cent increase inpassenger numbers, but chief execu-tive and chairman Elaine Holt

warned more work was required before the operator was fit to bereturned to private hands in 2012.

The company, created by the gov-ernment in July last year, when iteffectively re-nationalised the EastCoast Mainline, said turnover in thenine months to 31 March amountedto £233.8m while operating expendi-

ture stood at £232.3m for the period.Holt said the company’s financial

performance for the period had beenstrong and that it was “exceeding itstargets.”

She added the company had beenable to pay back more money to thegovernment meaning the business

was now self-funding.More than £10.3m of new invest-

ment had been committed by DOR for the East Coast business includingdevelopments at several mainline sta-tions, she added.

DOR said May 2011 would see theintroduction of the biggest timetablechange for the railway line in 20

years, which would make an extra

10,800 seats available each weekday and provide 20 additional services.

SHARES in Rolls-Royce, the aircraftengine maker and European

Aeronautic Defence and Space(EADS), the parent company of Airbusfell sharply yesterday after Qantasgrounded its entire fleet of A380safter an engine failure forced one of its aircraft into an emergency landingin Singapore.

Qantas grounded the aircraftimmediately after the superjumbocarrying 459 passengers and 29 crew

was forced to land.Passengers reported hearing a

“massive bang” before the aircraftturned back and Indonesian TV showed pictures of debris on theground near Batam airport, which itsaid belonged to the plane.

Qantas chief executive, Alan Joyce,said the Airbus 380, which had origi-nally flew from London suffered a sig-nificant failure on one of its enginesshortly after it left Singapore onroute to Sydney. The airline hasopened an investigation into whathappened but in the meantime wastaking no risks, he said. Qantas hassix Airbus A380s, and three A380

flights were scheduled for yesterday,one originating in Sydney and two inLos Angeles, all of which were scrapped.

The move also prompted Singapore Airlines to ground its fleet in order tocarry out similar checks to those

being carried out by Qantas.Shares in Rolls-Royce closed 4.8 per

cent down in London at 622p, whileEADS stock closed down 3.3 per cent €17.57 in Paris.

Rolls-Royce responded to the inci-dent by saying that it was already

working with investigators to under-stand what had happened “As alwaysthe safe operation of our products isour number one priority,” it added.

The incident is one of the most seriousfor the Airbus in three years of service.

A380’s forced

landing hurtsRolls-Royce

East Coast Rail returns to profitand repays government early

BYMATTHEWWEST

AVIATION▲

TRANSPORT▲

AEROPLANE parts supplier Meggittsaid in a third quarter update it hadreturned to sales growth, driven by astrong performance from its civilaerospace arm, and stronger order

volumes.Meggitt, which supplies products

such as flight displays and wheels toaircraft manufacturers such as

Airbus and Boeing said revenues

grew one per cent year-on-year in thethird quarter after having fallen 10per cent in the first quarter and twoper cent in the second quarter.

It said civil aviation equipment,maintenance and energy revenuesgrew in the quarter driven by a 17 percent increase in order intake on last

year but that military revenues weredown.

Order intake for the last ninemonths was seven per cent ahead of

the same period last year. Civil avia-tion orders were up more than 25 percent but military orders were downeight per cent as a result of multi-yearorders received last year.

“Revenues grew, continuing animproving trend and, together withthe healthy order intake, gives us con-fidence that we will see further rev-enue growth in the fourth quarterand modest growth for the year,” thecompany said in a statement.

Meggitt returns to profitdespite fall in military ordersAVIATION

▲


Yesterday’s incident was one of the most serious for the A380 in three years of service

p660

620

580


ANALYSIS l Rolls Royce

p621.50

4 Nov

8/8/2019 Cityam 2010-11-05


Consumer News 15CITYA.M. 5 NOVEMBER 2010

WM MORRISON supermarkets said yesterday it expected shoppers toremain under pressure into thesecond half of next year, as it metforecasts with a 1.3 per cent rise inthird-quarter underlying sales.

However, the fourth-biggest gro-cer played down fears of a surge infood prices, saying it did not see biginflationary pressures and con-sumers were offsetting the impactof rising prices by buying moregoods on promotion.

Britain’s retailers are worriedthat tax hikes and public spendingcuts aimed at reducing govern-ment borrowing could hit spend-ing in the coming months, and

that they might struggle to pass onrising input prices to cash-strappedshoppers.

“We think through until really the second half of 2011, people will

be very focused on value,” financedirector Richard Pennycook said.

Morrison’s, which runs over 430stores and, unlike major rivals, pro-duces much of the food it sells, saidsales at stores open over a year rose1.3 per cent, excluding petrol and

VAT sales tax, in the 13 weeks to 31October – its fiscal third quarter.

That was up from one per cent inthe second quarter, helped by asmall increase in food prices, andcompares with analysts’ averageforecast of 1.4 per cent in a Reuterspoll of 11.

“We had hoped for a bit more

than that ... Morrison’s will need todo better in the key fourth quarterto meet our second-half forecast of over two per cent like-for-like salesgrowth,” said Arden Partners ana-lyst Nick Bubb. Morrison is lockedin a battle for market share withrivals including Tesco and Asda.

Morrison sluggishas hard times biteBY JOHN DUNNE

RETAIL▲

JD Wetherspoon said it will make aprofit this year, thanks to strongsales and investments in new andexisting pubs.

The pub chain, which has almost800 pubs in Britain, reported a risein profit before tax of 7.3 per centto £71m, with total sales of nearly £1bn.

Wetherspoon is making signifi-cant investment in new pubs and

systems.

The group plans to open 50 new pubs a year throughout the UK in2011, and invest in new till systemsand staffing. The company cited agovernment crackdown on under-age drinking as its biggest long-term risk.

Chairman Tim Martin said thatthe government’s measures wouldonly force drinking elsewhere.“Pubs provide a supervised drink-ing environment, while beachesand parties don’t.”

Analysts said they were confi-

dent Wetherspoon’s new pubs and

systems will pay off in the long run.“JD Wetherspoon is always lookingto the long-term for its investments,”says Nigel Parson of EvolutionSecurities. “These investments can

bring short-term pain, but they should pay off in the long run.”

Wetherspoon last monthannounced that finance directorKeith Down and chief operatingofficer Paul Harbotttle were toleave the company. However, thefirm said there had been littlechange since the last trading state-

ment on 7 October.

Wetherspoon gives upbeat view fornew year as investments pay off

NEWS | IN BRIEF

Figures sweeter for Tate & LyleTate & Lyle yesterday beat forecastswith a 21 per cent rise in half-year profitand said it was confident for the full-year. The sweeteners firm posted adjust-ed pre-tax profit of £136m for the sixmonths to the end of September. Chief executive Javed Ahmed said: “In addi-

tion to good operational performanceand steady demand growth in a numberof our markets, we benefited fromstrong seasonal demand and improvedproduct income.” Tate is bouncing backfrom the global recession which forcedit into price cuts for its sweeteners,while its sugar cane business is also fac-ing increase competition.

Paphitis reveals lingerie plansDragons’ Den entrepreneur TheoPaphitis has said that his new lingerierange will be launched under the nameBoux Avenue. The mid market brand willbe launched at Shopping centres includ-ing the Trafford in Manchester. Thebrand will be up against La Senza, whichPaphitis used to own, as well as Marksand Spencer and department stores.Paphitis told Retail Week: “I’m deadproud of it. The product, the brand, themarketing concept. It’s fresh. We’re

launching in one of the most uncertaintimes in living memory, but I’m a longterm player.” The retailer is expecting toopen 30 shops starting from nextMarch. Bras will be priced at up to £34.Unilever is battling in a tough consumer environment. Picture: GETTY

UNILEVER saw its underlying sales rise by 3.6 per cent in the third quarter – but warned it could raise prices because of rising commodity costs.

The Anglo-Dutch consumer giant, whose products include Knorr Soupsand Dove soap, was upbeat about thecompany’s prospects despite con-sumers tightening their belts.

After the announcement yesterday shares in the firm jumped around fiveper cent as it emerged that profit mar-gin had also been raised.

Chief executive Paul Polman saidthe frosty market conditions had

helped the company to focus on keep-ing costs down.

He told an investor briefing: “I amconfident that in 2010 we will deliveragainst the model.

“But of course we need to demon-strate we can do so year in, year out.”

Analysts said that the company, which also makes Ben & Jerry’s Icecream and Pond’s skin creams, hadturned in respectable figures, particu-larly in the face of tough competitionfrom rival Procter & Gamble.

Graham Jones of Panmure said:“Trading conditions have remained

very difficult but we believe Unilever isin much better shape than in the past.”

The company’s underlying operat-ing earnings rose 19 per cent – driven

by £874m in cost savings so far the year.

“We think these results will go some way to restoring confidence in the

company’s turnaround, we remainhappy buyers”, said analyst MartinDeboo at Investec Securities. Polmanhas been in charge for 22 months andis revamping the company.

Unilever sees salesrise despite tough

market conditionsBY JOHN DUNNE

CONSUMER▲

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ANALYSIS l Morrison

p278.70

4 Nov

BY THOMAS HAMED

LEISURE▲

3.6%rise in third quarter

underlying sales

19%rise in third quarter

earnings

£874min cost savings so

far the year.

8/8/2019 Cityam 2010-11-05


SWISS Re said it would repay a costly loan from US billionaire WarrenBuffett early, as it had replenished itscapital to comfortable levels since tak-ing a hit during the global credit crisis.

The world’s second-biggest reinsur-er almost doubled third-quarter prof-it, comfortably beating analysts’forecasts.

Swiss Re said yesterday it would not be penalised for bringing forward therepayment date on the $3.1bn

(£1.9bn) convertible loan fromBuffett-owned rival BerskshireHathaway from early 2011. But it would have to pay full interest dueincluding an adjustment for foreignexchange, leading to a $1bn charge inthe fourth quarter.

Swiss Re took out the loan, whichcarries a hefty 12 per cent coupon, with Buffett in February 2009 aftertaking hits from risky assets duringthe credit crisis, putting its capital base in jeopardy. The firm also has topay Buffett a 20 per cent repaymentpremium, or Sfr600m (£385m).

Swiss Re chief financial officerGeorge Quinn said he could not com-ment on whether Buffett was inter-ested in adding to his three per centin the company.

Buffett raised his stake in MunichRe to above 10 per cent and planned

to further expand the holding, SwissRe’s rival said in October. Third-quar-ter net profit almost doubled to$618m as property and casualty rein-surance profit margins improvedmarkedly on below average naturalcatastrophe losses.

Swiss Re willrepay Buffettloan earlier

THE FSA has insisted that the coming bonus season will go smoothly despitelate publication of the remunerationcode which will govern payments.

The guidelines have to comply withthe Committee of European BankingSupervisors (CEBS) regulations, whichhave been delayed by a month toaround 10 December. Banks will haveto comply with the rules from 1 January.

Concerns that this will throw the bonus season into disarray were dis-missed by the FSA. A spokesman said:

“It won’t change anything. There will be transitional rules for those who arecurrently not covered. We are working with the large firms to make sure thatthey are in the right shape.”

Some disagree. “If banks are expect-ed to meet their deadlines, it would benice if CEBS and the FSA had mettheirs,” said Nicholas Stretch of law firm CMS Cameron McKenna.

“Reacting to changes in the middleof December is always difficult.People want a printed document thatthey can put on the table at remuner-ation meetings.”

Starbucks raises forecastsas customers flock back

STARBUCKS raised its full-year profitforecast yesterday, boosting investorconfidence its turnaround plan hasushered in a new phase of growth.Rising prices and improving traffic inits stores gave the leeway to hike itsfiscal 2011 outlook.

US sales at restaurants open at least13 months jumped eight per cent inthe fiscal fourth quarter from a yearago, driven by a six per cent rise incustomer visits and a two per centincrease in spending per visit.

International same-restaurant sales were up seven per cent, helped by afour per cent traffic increase and a

three per cent rise in average ticket. Those factors, coupled with effi-

ciency efforts and cost controls,prompted the company to hike itsearnings target for the current 2011fiscal year to a range of $1.41 to $1.47per share, from $1.36 to $1.41 previ-ously. Wall Street’s average forecast was for $1.43, near the low end of thenew range. Net revenue grew morethan 17 per cent to $2.8bn.

“The increase really is based on thestrength of the quarter we justrecorded and the momentum we bring into the new year,” Starbuckschief financial officer Troy Alsteadsaid.

Pay code delay noproblem, says FSA

BYHARRY BANKS

INSURANCE▲

THE world’s second biggest sportsgoods maker, Adidas, yesterday announced an upbeat outlook for 2011.

Adidas forecasts a rise of 10-15 percent in earnings per share in 2011.

The company also reported strongsales in the US and eastern Europe of €3.47bn (£3.05bn) in the third quar-ter, beating analysts’ forecasts andcheering investors.

Adidas – which also owns the US brand Reebok – had previously enjoyed a boost from sales related tothe 2010 World Cup.

Adidas bullishon growth assales rise again

REMUNERATION▲

ONSUMER▲

CONSUMER▲


KRAFT PROFITS BOLSTERED BY CADBURY

KRAFT Foods chief executive Irene Rosenfeld reported better-than-expected quarterly profit yesterday and affirmed its outlook for this year and next, with growth fuelled by itsacquisition of Cadbury. Kraft’s net income was $754m, or 43 cents per share, in the thirdquarter, down from $824m, or 55 cents per share, a year earlier.

NEWS | IN BRIEF

Customer numbers up at easyJetBudget airline easyJet said yesterday itspassenger numbers rose 8.6 per cent inOctober to nearly 4.6m. Its flights werea total of 88.2 per cent full last month,up from 86.8 per cent in the same peri-od last year, pushing the annual rate upto 87.1 per cent. In the year to October

2010, the firm said it has carried morethan 49m passengers, meaning an 8.1per cent rise since last year.

Tube union in talks to halt strikesThe RMT union met with LondonUnderground bosses yesterday to tryand head off another city-wide strikeover staffing levels in ticket offices.Transport for London (TfL) said the talkswere constructive, while a spokespersonfor mediation body ACAS said the twosides had arranged to meet again nextweek as part of ongoing negotiations.TSSA, the other union containingUnderground workers, did not attendthe talks and has no plans to meet withTfL. Another strike is scheduled for 28and 29 November.

Apache profit surges 74 per centApache, the largest US independent oiland gas producer, posted a 74 per cent

jump in quarterly profit as natural gasand crude oil prices rose from a yearearlier and output grew. Third-quarterearnings at energy companies such asApache have been fattened by a 13 percent increase in US crude oil prices anda 23 per cent jump in the price of gas.

8/8/2019 Cityam 2010-11-05


. c o m

Focus on EMI trial 17CITYA.M. 5 NOVEMBER 2010

GROWTH in emerging marketshelped revenue at RSA InsuranceGroup jump by just under 10 percent in the third quarter. Net

written premiums rose to £5.5bnin the nine months to 30September, up from £5.03bn a

year earlier. The insurer announced strong

numbers in emerging markets with net written premiums up 19per cent to £683m, and a massiverise of 33 per cent for India, to£84m.

Latin America was also strongfor the insurer, where premiums

were up 23 per cent across the board. The figure in Argentina

was up 63 per cent and in Brazilit was 31 per cent.

The group said that it expectsto return a double-digit growthin emerging markets in 2011 andpredicted that it will come closeto that number this year.

“We continue to supplementorganic growth with targetedacquisitions,” said Andy Haste,Group CEO of RSA. “We remainexcited about the group’sprospects and confident of deliv-ering sustainable profitable per-formance.”

Performance in the UK was alsostrong, with premiums up by 10per cent to £2.175bn. The launchof a pet insurance business inassociation with supermarketgiant Tesco is expected to be a big

income stream for the group, andRSA calculates that it will gener-ate around £100m of premiumsin 2011.

RSA has made a number of overseas acquisitions in the past

year, most recently of GCAN inCanada.

Emerging marketsboost RSA figuresBY JEREMY HAZLEHURST

INSURANCE▲

HEALTHY stock markets led to aninflow of money at wealth manag-er Rathbones in the third quarter,

with funds under managementincreasing by 11 per cent since theend of last year, but warned thatthe next year looks “mixed” for the

wealth manager. The total amount of funds under

management stood at £14.54bn at30 September 2010, up from£13.1bn at 31 December 2009. The

fair winds in the markets also ledto a 22.5 per cent in increase in

income from fees over the firstthree quarters, and a 30.2 per centincrease in commissions over thesame period. Income from interest

was 54.8 per cent lower than the£16.8m earned in the correspon-ding period in 2009, due toreduced yields on treasury assets.

CEO Andy Pomfret was cautiousabout the prospects for the coming

year. “Whilst the recent equity market rally is welcome,economies remain fragile having

yet to face the full effect of deficit

reduction plans being implement-ed by many governments,” he said,

adding that this presented a“mixed outlook for 2011.”

Net operating income was£84.8m for the nine months end-ing on 30 September 2010, 8 percent higher than 2009. The wealthmanagement firm’s unit trust armincreased from £0.88bn at 30 Juneto £0.95bn at 30 September.

Income was £84.8m for the ninemonths ending 30 September 2010,eight per cent up on 2009.Rathbones underlined its stability,pointing out that its Tier 1 ratio is

26 per cent, way above the Basel IIIminimum of seven per cent.

Rathbones tempts clients to investmore leading to a boost in revenuesWEALTH MANAGEMENT▲

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● 18 - 21 May 2007Guy Hands claimed David Wormsleymade three phone calls to Guy Handsencouraging Terra Firma to bid 265p ashare for EMI by 9am the next day toclose the deal.

● 21 May 2007Terra Firma borrows £2.6bn fromCitigroup to buy out EMI for £4.2bn.

● October 2008EMI posts a full-year loss of £757m.

● September 2009Terra Firma writes down the invest-ment by 50 per cent and its entireportfolio by 45.5 per cent.

● 11 December 2009Hands files lawsuit at the New YorkSupreme Court accusing Citi of trickingTerra Firma into buying EMI.

● August 2010EMI achieves 2010 revenues of £1.65bn and a net loss of £512m.

● October - November 2010

Fraud case opens in Manhattan, even-tually dismissing Hands’ claims thatWormsley lied to push him into bidding.

TIME LINE |TERRA FIRMA AND EMI

JED RAKOFF provoked the ire of Wall Street whenhe rejected Bank of America’s $33m attempt to set-tle a dishonesty probe last year, describing suchoffers as “half-baked justice at best”.

He redeemed himself in the eyes of one Americanbank yesterday, though his merciless courtroom

treatment of long-winded witnesses gained himfew friends. He was happy to slash Hands’ damagesclaim by $6bn, and once cut off irrelevant argu-ments about Hands’ and Wormsleys’ children bysnapping: “I congratulate them on their fertility.”

THERE were numerous raised eyebrows in bothmusic and private equity camps when Guy Handsbought EMI in 2007. As a private equity tycoonwith huge stakes in the Meridien hotel chain andShanks waste plants, Hands never seemed the rightfit for the home of Kylie Minogue and Pink Floyd.

Nevertheless, he has poured millions of poundsfrom his own funds into keeping afloat the recordlabel he hunted for close to 15 years. He said incourt last month that between 60 and 70 per centof his personal fortune is tied up in the firm.

Hands graduated from Oxford with a third classdegree in politics and economics, and started hiscareer as a bond trader at Goldman Sachs.

He also spent time at Nomura before setting up

his private equity vehicle Terra Firma in 2002.He is now based in Guernsey, having moved from

Kent last year for tax reasons. He claims to almostnever visit his wife and two school-age children toretain his exile status.

DAVID WORMSLEY, known as The Worm in finan-cial circles, was once Guy Hands’ financial adviserand used to take shooting holidays with him and hisfamily. Citigroup’s UK chair of investment banking isunlikely to get another invitation.

Wormsley, 50, had until recently managed tosteer clear of the public eye, despite being namedthe top mergers and acquisitions banker in the Cityseveral years running. He has been linked withgigantic deals including Ferrovial’s £10bn purchaseof BAA and a £41bn restructuring at Shell.

His most recent distractions from the US fraudcase included advising CVC Capital in its £850m

joint takeover bid for Brit Insurance, the sponsor of the England cricket team, earlier this year.

In an email to Hands in 2006 he told his oldfriend: “I am incapable of not trying to get you tothe best possible outcome.”

Despite the sour outcome of the EMI deal, theUS courts agree with him.

The EMI trial in New York pittedone of the toughest private equityplayers against one of the SquareMile’s best known bankers, saysMarion Dakers

JUDGE JED RAKOFF

GUY HANDS DAVID WORMSLEY

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NUMBERS of house sales will con-tinue to drop even lower and theUK is at risk of a “mortgagefamine” unless the governmentacts to boost the market by help-ing buyers to take out loans, saidthe housebuilder Redrow yester-day as it announced its thirdquarter results.

“Deliberately suppressing hous-ing demand at the very time thatthe country has a chronic hous-ing shortage is laying the founda-tions for the next boom/bustcycle,” said the firm’s chairmanSteve Morgan.

“The way to end the cycle of boom and bust is to increase the

supply of new homes to meet thedemand by freeing up the supply of affordable mortgages. The reg-ulators are going too far and themedicine risks killing thepatient.” Despite the gloomy out-look about the industry, Redrow announced that private homesales in the financial year to date were nine per cent up on thesame period last year at £133mand that the average house price went up 16 per cent to £174,000, which reflected the company’slaunch of its Heritage Collection,estates of 1920s Arts and Crafts-style family homes that it has built around the country. Itsshares closed up 2.9p at 112p onthe news.

Redrow said that although the

economic climate has obviously affected the demand for housesthe underlying demand remainsstrong. Morgan said that the firm was having to turn away poten-tial purchasers who were not ableto raise the deposit of 25 per centor more.

Housebuilder warnsof mortgage famineBY JEREMY HAZLEHURST

PROPERTY▲

A CONSORTIUM made up of investment bank Morgan Stanley and private equity houses 3iInfrastructure and Star Capitalhas bought HSBC’s train rollingstock unit, Eversholt Rail Group,for £2.1bn. The deal took fivemonths of talks before it came tofruition.

The new consortium, which isnamed Eversholt InvestmentGroup, immediately becomes one

of the three biggest rolling stock companies in the country, own-

ing about 29 cent of the total cur-rent British rail fleet with 19fleets of rolling stock that aredesigned and built for the UK railnetwork. It will lease its fleets toseven train operating companies.

HSBC is the last UK high-street bank to dispose of its train-leas-ing business, after both RBS andSantander off-loaded theirs in2008.

“We are delighted to be acquir-ing Eversholt,” said Neil King,partner in the infrastructure

team at 3i Investments PLC, which manages 3i Infrastructure.

“Its strong market share, well-diversified customer base andhigh quality cash flows from leas-es contracted over the medium tolong term make this an attractiveasset with strong infrastructurecharacteristics.”

The three members of the new group will each pay £176m of equity with the remainder of themoney being financed with debt.Eversholt Investment Group saidthat the steady cash stream thatthe rolling stock will produce

will be sufficient to service theinterest.

Consortium becomes third-biggestUK rolling stock leasing companyTRANSPORT▲

NEWS | IN BRIEF

UBS forced to buy back notesA Wall Street arbitration panel orderedUBS to pay a retired couple $529,688for selling them “structured notes”backed by Lehman Brothers thatplunged in value when the investmentbank collapsed in 2008. A FinancialIndustry Regulatory Authority arbitra-

tion panel yesterday ruled that UBSmust buy back the notes from the cou-ple, Steven and Ellen Edelson. Some of these Lehman notes were called “princi-pal protected,” a label that critics com-plain implied that investors could notlose money. The Swiss bank’s US broker-age arm sold $1bn of Lehman-backednotes, with these sales continuing wellinto 2008. Lehman went bankrupt inSeptember 2008.

Elizabeth Arden beats hopesCosmetics maker Elizabeth Arden post-ed higher-than-expected quarterly earn-ings, boosted by strong sales overseasand at duty-free shops, and raised itsfull-year sales goal yesterday. The com-pany’s travel retail and distributor busi-ness, which includes duty-free shops,saw sales soar 31 per cent, due tostrength in Asia and Latin America.Elizabeth Arden’s sales rose 14 per cent

in Europe and six per cent in NorthAmerica, the company’s biggest market.Elizabeth Arden said net earnings were$4.9m, or 17 cents per share, in its fiscalfirst quarter ended 30 September.

PROSECUTIONS against banks,accountants and financial advisersresulting from the economic down-turn will continue to be brought for years to come, says a City law firm.

Cases at the High Court, wheremost financial services sector casesare heard, have jumped 16 per cent to49,583 so far in 2009, up from 42,709in 2008.

“This data suggests it is too early tocall time on the post credit crunchincrease in litigation,” said GeraldineElliott, head of commercial litigationat law firm Reynolds Porter

Chamberlain. “Big ticket, significantand complex claims which arelaunched in the High Court inLondon still seem to be on the rise.”

The firm added that a growing

number of claims have beenlaunched against investment banks who sold clients “toxic” financialproducts. It said that some sophisti-cated investors have already takeninvestment banks to court for mis-selling products or mismanagingfunds, and more will follow.

There has also been a rise in negli-gence cases against surveyors andaccountants, said the firm.“Professionals often face legal claimsafter a recession as businesses andindividuals try to pin the blame onthem in an attempt to recover theirlosses.”

The firm also predicted that there will be a slew of claims related to the

collapse of businesses, with creditorsfighting over assets, just as with col-lapsed bank Lehman Brothers.Businesses usually have six years itolodge a legal claim.

Legal fallout fromcredit crunch will

drag on for yearsBY JEREMY HAZLEHURST

LAW▲

Champion Trader - Day 4

User Name Account Value % Difference

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To register and the full standings, visit www.intertrader.com/champion

1 urosbric3 £56,106.50 461

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3 alonsove £42,658.69 326

4 Gekko1981 £40,170.50 301

5 renoraines £38,800.00 288

6 Euro having a laugh £38,313.50 283

7 TheWozman £36,940.13 269

8 fivericket £32,545.32 225

9 black-panther882288 £27,062.99 170

10 jasonkhan £26,075.39 160

p


ANALYSIS l Redrow

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8/8/2019 Cityam 2010-11-05


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IRELAND is planning to push throughspending cuts and tax hikes totalling €6bn (£5.2bn) next year, the toughest budget in the country’s history, in alast-ditch effort to convince investorsit is not on the verge of financialmeltdown.

With Irish borrowing costs breach-ing record highs every day this week,finance minister Brian Lenihan is bat-tling to turn the tide of market opin-ion and avoid the risk of a Greek-style

bailout.He said yesterday he was frontload-

ing next year some 40 per cent of the €15bn in adjustments he is targeting between now and 2014, the deadlinehe has promised Brussels to get the

worst budget deficit in Europe back within EU limits.

“I am well aware that such meas-ures will impact on the living stan-dards of everybody,” Lenihan said in astatement. “But our spending andrevenue must be more closely aligned. This is the only way to ensurethe future economic well-being of oursociety.”

Lenihan got a vote of confidencefrom European Central Bank presi-

dent Jean-Claude Trichet, who saidIreland’s plans to cut the deficit by €15bn over the next four years should be sufficient to solve its debt crunch.

“The €15bn ... are not in our view insufficient but of course you have to

be alert permanently and stand ready to do all that is needed,” Trichet said.

Ireland’s finance ministry said itexpected the measures, which will befleshed out in a four-year plan laterthis month, would cut the deficit to9.25 to 9.5 per cent of GDP next yearand to 2.75 to 3 per cent of GDP in2014. The shortfall is set to blow outto a jaw-dropping 32 per cent of GDPthis year due to the one-off inclusionof a mammoth bill for bailing out its

banks. Even excluding the bank bill,the deficit will be nearly 12 per centof GDP this year.

Lenihan is hoping his fiscal meas-ures will reassure investors andreduce Irish borrowing costs enablingthe country to tap bond marketsagain in January. If yields do notcome down by then, the governmentmay be forced to seek external assis-tance. The premium investorsdemand to hold Irish bonds over

benchmark German bunds stayed ata fresh peak of 543 points after the

budget forecasts were unveiled.

FRENCH private equity fund PAIPartners could launch the sale of its50 per cent stake in French yoghurtmaker Yoplait later this month withinterest likely to come from interna-tional food giants or other private bid-ders.

Nestle, the world’s biggest foodgroup, may team up with Europe’slargest dairy group Lactalis to bid,French daily Le Figaro reported yester-day.

A spokesman for PAI Partners saidthat the sale process would take sever-al months.

“We are not far away from the beginning of the process,” he said.

Banks were hired a few monthsago, including BNP Paribas andRothschild, which are advising PAI,and Morgan Stanley, which is manag-ing the sale.

The unlisted Yoplait, which is val-ued at over €1.3bn (£1.1bn), has beenin the spotlight since the summer

when PAI said it wanted to sell. The second Yoplait stakeholder,

France’s largest milk cooperativeSodiaal, reiterated yesterday it had nointention of reducing its stake.

The sale is expected to draw inter-est from Nestle, General Mills, whichdistributes the Yoplait brand in theUnited States, and Asian food groups.

Private equity funds are also tippedas possible buyers but PAI has said anindustry buyer would be most likely.

PAI ready tosell Yoplait in

€1.3bn dealPRIVATE EQUITY

▲

COVE Energy, the AIM-listed energy group, yesterday said it was raising

£110m via a placing of 145m new shares at 76p each. The placing price is at a 4.1 per cent

discount to the last closing price. The net proceeds of the placing,

together with Cove’s existing cash balances, will be used to fund thegroup’s share of anticipated costsrelating to its existing assets inMozambique, Tanzania and Kenyaand potential new opportunities.

Cove, which raised £25.7m in

March to fund costs for its assets inMozambique, recently found a biggas deposit at the deepwaterBarquentine exploration well withlicence partner Anadarko.

Cove shares have more than tripledin value since it found gas at its Windjammer prospect in February,

John Craven, chief executive officerof Cove Energy, said: ”I am very pleased to announce this successfulconditional placing with institution-al and other investors...our ability toattract such significant new equity istestament to the strategy implement-ed by the board which has yielded aportfolio of quality assets that now

contain major gas discoveries at Windjammer and Barquentine andthe first oil encountered, offshoreEast Africa, at the Ironclad well.”

Cove Energy to raise £110mBY DAVID HELLIER

ENERGY▲

Ireland plans

€6bn budgetcuts for 2011BY HARRY BANKS

EU ECONOMY▲


BMI THREATENS TO SUE HEATHROW

HEATHROW’S second biggest airline customer, British Midland International, is threat- ening to sue the airport over what it says is an “outrageous” 50 per cent rise in charges for its domestic UK passengers. Wolfgang Prock-Schauer, BMI’s chief executive, says thenew fees will be a significant blow to the loss-making airline’s domestic flights as it struggles to regain its financial footing.

MercerKim Honess has joined the consultancy’s

health and benefits business as head of flexible benefits, and will be based in

the firm’s London office. She has over13 years of experience in employee ben-efits, most recently at Towers Watsonwhere she worked as head of flexiblebenefits consultants. Before this, sheheld various roles at Gissings andPaymaster.

Clifford ChanceThe magic circle law firm has electedMalcolm Sweeting as its next seniorpartner, to replace Stuart Pophamwhen he stands down from the role inJanuary. Sweeting has been a partnerat the firm’s finance practice since1990, and during his tenure has acted

as leader of the London banking groupand as a member of the partnershipcouncil. His notable transactions includeDe Beers’ $18.7bn privatisation, thefinancing of Sir Philip Green’s bid forMarks & Spencer and the recent $16bnrefinancing of CEMEX’s debt.

Berwin Leighton PaisnerThe law firm has appointed structuredfinance lawyer Lucy Oddy as a partnerwithin its London team. Oddy joins fromClifford Chance, and has a broad rangeof experience with UK and pan-European structured finance dealsincluding work with Lloyds, Merrill

Lynch and Deutsche Bank. BLP has alsorecently hired Matthew Kellett as man-aging partner of the finance depart-ment. He has previously worked atLinklaters.

Bircham Dyson BellThe law firm has hired Nick Holland ashead of contentious trusts and estates.He joins next week from SolomonHarris, a Cayman Islands-based lawfirm, where he held a similar role. He isqualified to practice law in several juris-dictions including British Columbia,Ottowa, the Cayman Islands andEngland and Wales.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Marion Dakers

AvivaThe insurer has hired Helen Hislop as chief financial officer and Patrick Dixneuf as chief operations officer for its European arm, witheffect from 1 January. Both will be based inParis, and will work under EMEA chief execu-tive Andrea Moneta. Hislop replaces Tim Harris,who has moved to Aviva as deputy chief finan-cial officer, and joins from General Electric’sglobal banking division. Dixneuf joins fromAllianz, where he was head of group operations.

+44 (0)20 7557 7245morganmckinley.comTo appear in CITYMOVESplease email your careerupdates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT

in association with

CENKOS Securities is Cove Energy’sfinancial adviser, nominated adviser

and broker and is acting as sole bookrunner to the placing.The team is led by Jon Fitzpatrick in

the corporate finance department of Cenkos, and by Joe Nally.

Nally and Fitzpatrick, veterans of the sector having had senior roles for-merly at Williams de Broe and BrewinDolphin respectively, are being supprt-ed by a team that includes KenFleming, Charlie Henderson, Iain

Macarthur, Gregor Paterson, GuyBriselden, Will Dymott and AshleyKelty. Fitzpatrick joined Cenkos in2008 from Brewin Dolphin’s Glasgowoffice while Nally has spent most of his career in the City.

Nally, a fun-loving character with abig City following, joined Williams deBroe in 1976 as an investment analystcovering property and insurance com-panies. In 1992 he was a founder of

the institutional corporate financedepartment at Williams de Broewhere he gained experience across abroad range of sectors in IPOs, sec-ondary fund raising and takeovers andmergers, particularly in naturalresources. Earlier this year Cenkos,which prides itself on its energyexpertise, advised on a money-raisingin London for the Canadian groupIthaca Energy.

CENKOSSECURITIES

JOE NALLY

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ANALYSIS l Cove Energyp 80.50

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NISSAN Motor lifted its annual guid-ance and posted a doubling in quar-terly operating profit as thepopularity of new cars such as theMarch/Micra subcompact helpedoffset currency losses.

Nissan, owned 43 per cent by France’s Renault, is on its way tooutselling Honda to become Japan’ssecond-biggest automaker this yearas its market share inches up inChina, North America and Europe.

Nissan also has strong momen-tum in the coming months withinventory levels on the low side asthe pace of production trailed deliv-ery to customers, analysts said.

Chief executive Carlos Ghosn is

looking to boost Nissan’s globalmarket share by beating rivals'growth in emerging markets suchas China as well as mature marketsin Europe. Fuelled by strong sales,Nissan raised its global sales forecastto 4.1m vehicles from 3.8m for the

year to March 2011.Further out, Ghosn, the dual

chief executive officer of Nissan andRenault, is aiming to turn thealliance into the industry leader inzero-emission vehicles, taking a sig-nificant first step by delivering thefirst Nissan Leaf electric car to cus-tomers in Japan and the US nextmonth.

Nissan now expects operatingprofit for the year to 31 March 2011of 485bn yen (£3.7bn) instead of 350bn yen. The new figure would

represent a 56 per cent rise from theprevious year. Nissan sees annualnet profit at 270bn yen instead of 150bn yen.

For the three-moth period of July to September, Nissan reported anoperating profit of 166.96bn yen, upfrom 83.28bn yen a year ago and

beating the average 151bn yen esti-mated by three analysts.

Second-quarter net profit was101.73bn yen, quadrupling from25.53bn yen a year earlier.

Nissan lifts forecastthanks to sales hikeBYHARRY BANKS

AUTOMOTIVE▲

BANKS’ continuing reluctance tolend to small businesses inLondon is damaging the capital’sreputation as a place to do busi-ness, says a report by law firmMishcon de Reya and the LondonChamber of Commerce andIndustry.

Of 170 small business ownersin London who were interviewed62 per cent said that they havechosen to self-finance or use sav-

ings to grow and develop their businesses recently, rather than

taking on debt, with only 26 percent turning to the bank forfinancing.

Thirty-five per cent of businessowners rated growth and invest-ment opportunities in London as“poor” and only 20 per centdescribed the opportunities as“good”.

The report, which was carriedout by ComRes, showed that 30per cent of businesses have noplans to invest in growth for thenext two to five years, although

40 per cent said this had nothingto do with the recession.

Speaking at the report’slaunch, Luke Johnson, chairmanof Risk Capital Partners, saidthat the government should“address the issue of bank lend-ing by making it easier for thecreation of new commercial

banks”. The head of the Britis

Bankers’ Association, AngelaKnight, pointed out that justthree weeks ago the banks set upa £1.5bn fund to invest in small

businesses, adding that “90 per

cent of applications for credit arenow granted.”

SME owners say that bank lendingproblem damages London’s imageSMALL BUSINESS▲


NEWS | IN BRIEF

Dubai’s Deyaar hit by recessionDeyaar, Dubai'’s second-largest propertydeveloper by market value, suffered athird-quarter net loss of 145m dirhams(£24.3m), it said yesterday, missing ananalyst forecast. The company, a rival of Emaar Properties and Union Properties,also said in a statement that gross rev-

enue for the period came in at 63.5mdirhams. Deyaar’s total equity stood at6.23bn dirhams at the end of September, it said. A NomuraInternational analyst had forecast thatDeyaar would post a 53m dirham loss,after the company made a profit of 81.6m in the third quarter of 2009.

Panalpina: Freight growth slowingSwiss logistics group Panalpina seesfreight growth slowing in the fourthquarter after its third-quarter grossprofit growth just missed expectations.The group, which competes with Kuehne& Nagel, continued to outpace the mar-ket with nine-month volume growth of 27 per cent for air and 16 per cent forocean freight. It reiterated yesterday itsforecast for 2010 market growth of atleast 15 per cent in air cargo and 10 percent in ocean freight. The group said ithad settled a bribery case in the US,

paying a total fine of $81.9m. But it saidthe market began to slow in the thirdquarter due to less restocking activity, ahigher comparison base and a shorter-than-usual peak season in ocean freight.

WINE has gained more value this yearthan either gold or shares, drivenlargely by Chinese demand.

According to research from theBordeaux Index – which tracks livechanges in the prices of 80 to 100 of the most traded wines – demand forfine wine grew by 26 per cent in the

year to date, and 39 per cent in 2009.Demand for premium wines above

£80 far outstrips supply, according to areport from wine merchant Bordeaux

Wines. One wine, Chateau Lafite, isnot ready to drink yet, but sold at aHong Kong auction for £43,000 a case

– three times its market value. Wine merchants do not see a specu-

lative bubble forming, despite therapid price rise. Gary Boom, manag-ing director and founder of Bordeaux

Wines, says that most wine sold leavesLondon, suggesting that investorsactually consume the wine.

The news comes as the Hong KongInternational Spirits and Wines fair

begins. The Fair is the largest in Asia,and has twice as many vendors this

year as last. Hong Kong now has more wine auctions than London, trailingonly New York.

The Bordeaux Index research alsoshowed prices for the most popular

wines climbed 1.7 per cent duringOctober, driven largely by a 45 percent rise in turnover compared withthe same month a year ago.

Boom said: “With continued stronggrowth in both Asia and Latin

America – and expected improve-ments from the US and Europe –

we’re confident investors’ money willcontinue to flow into wine over thenext two months.”

Chinese thirst seesmoney pouring into

sales of fine winesBY THOMAS HAMED

INVESTMENT▲

BEST OF THE BROKERS

ANALYSIS lNext

2,200

2,000

2,400

9 Aug 27 Aug 17 Sep 7 Oct 27 Oct

p2133.00

4 Nov

NEXTArden Partners rates the retailer an “add”with a reduced target price of £23.50.Despite the firm’s disappointing results ear-lier in the week, the broker sees encourag-ing signs in its earnings per share growthrecord and current modest rating. However,Arden expects M&S to impress more whenit brings out interim results next week.

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

ANALYSIS lBT

145

135

155

165

9 Aug 27 Aug 17 Sep 7 Oct 27 Oct

p161.00

4 Nov

BTUBS rates the telecoms group a “sell” witha 12-month target price of 120p. The bro-ker forecasts a four per cent fall in revenuewhen BT announces its quarterly resultsnext Thursday, and believes the company’shuge pension deficit will remain the pri-

mary focus. It also predicts that the firmwill have made moderate cost cuts.

ANALYSIS lBabcock

580

570

590

600

4 Aug 11 Aug 18 Oct 25 Oct 1 Nov

p 567.004 Nov

BABCOCKBrewin Dolphin rates the support servicesgroup a “buy” with a 12-month target priceof 710p. The broker believes Babcock hasunderperformed in the last month, and thatits interim results due on Tuesday shouldreassure shareholders that the investmentcase is intact. Brewin adds that the weak-ening of peer Serco will aid the firm.

Nissan chief executiveCarlos Ghosn aims tobeat rivals’ growth inemerging markets aswell as mature markets

8/8/2019 Cityam 2010-11-05


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

3i . . . . . . . . . . . . . . . . . . . . . . . . 316 .40 + 8. 20 319. 20 246 .90

3i Infrastructure . . . . . . . . . . . . .113.50 –0.10 115.00 97.00A.B. Foods . . . . . . . . . . . . . . . .1061.00 +12.00 1096.00 790.00

Aberdeen Asset Man. . .. . . . .. .185.80 +6.70 187.30 111.00Admiral. . . . . . . . . . . . . . . . . . .1680.00 +10.00 1721.00 1003.00Aegis . . . . . . . . . . . . . . . . . . . . . 128. 60 –0. 20 137 .30 103 .10

Afren . . . . . . . . . . . . . . . . . . . . . 134. 00 + 3. 90 135 .90 77. 00African Barr Gold . . . .. . . . . .. .557.50 +19.00 685.00 520.50

Aggreko . . . . . . . . . . . . . . . . . .1590.00 +63.00 1698.00 727.50Alliance Trust . . . . . . . . . . . . . . .356.20 +4.40 357.00 292.80AMEC. . . . . . . . . . . . . . . . . . . .1102.00 +22.00 1104.00 728.00Amlin . . . . . . . . . . . . . . . . . . . . . 416. 50 + 4. 80 437 .60 355 .90Anglo American . . . . .. . . . . ..2965.00 +74.50 3019.00 2210.00

Antofagasta . . . . . . . . . . . . . . .1396.00 +73.00 1402.00 755.50Aquarius Platinum . . .. . . . . .. .384.10 +15.40 490.00 211.50ARM Holdings. . . . . . . . . . . . . . .338.90 –6.50 419.50 146.50Ashmore. . . . . . . . . . . . . . . . . . .379.00* +8.40 400.50 215.00Astrazeneca . . . . . . . . . . . . . . .3071.00 –41.00 3389.50 2668.00

Atkins(Ws) . . . . . . . . . . . . . . . . .771.50 +3.50 801.00 532.50Autonomy Corp . . . . .. . . . . ..1445.00 +2.00 2012.00 1315.00

Aveva . . . . . . . . . . . . . . . . . . . .1505.00 +14.00 1520.00 880.50Aviva . . . . . . . . . . . . . . . . . . . . .414.10* +11.60 428.70 290.20Babcock International . .. . . . .. .567.00 –0.50 660.50 489.00

BAE Systems . . . . . . . . . . . . . . .342.60* –0.50 389.90 288.10Balfour Beatty. . . . . . . . . . . . . . .275.40* +0.60 304.80 228.60

Barclays . . . . . . . . . . . . . . . . . . .287.10 +7.70 394.25 253.40Barratt Development . .. . . . . .. . .83.50 +5.85 149.90 75.50BBA Aviation . . . . . . . . . . . . . . .205.30 –0.20 220.00 145.90

Bellway. . . . . . . . . . . . . . . . . . . .551.00 +21.00 838.00 510.00Berkeley . . . . . . . . . . . . . . . . . . .844.50 +19.00 917.50 735.00

BG . . . . . . . . . . . . . . . . . . . . . .1296.00 +34.50 1301.50 966.90BHP Billiton . . . . . . . . . . . . . . .2430.00 +150.00 2432.00 1644.00BlackRock Mining. . . . .. . . . .. .712.00 +22.00 713.50 488.20

BlueBay . . . . . . . . . . . . . . . . . . .481.50* –0.30 495.00 251.00Bluecrest Allblue GBP. .. . . . .. .172.90 +0.10 174.00 151.00

Booker . . . . . . . . . . . . . . . . . . . . . 55 .00* –0. 15 55 .50 37. 50BP . . . . . . . . . . . . . . . . . . . . . . . 445. 10 +5 .80 658 .20 296 .00Brit Insurance . . . . . . . . . . . . . .1045.00 +2.00 1052.00 709.00

British Airways . . . . . . . . . . . . . .286.00 +11.90 290.00 180.20British Amer. Tob . . . .. . . . . ..2429.00 –15.00 2490.50 1832.00

British Empire Tst . . . .. . . . . .. .491.40 +7.90 493.70 338.50British Land . . . . . . . . . . . . . . . .520.00* +6.00 525.00 416.00Britvic. . . . . . . . . . . . . . . . . . . . . 482. 80 + 3. 60 518 .00 341 .50

Brown(N.). . . . . . . . . . . . . . . . . .295.40 +7.90 308.00 204.80BSkyB . . . . . . . . . . . . . . . . . . . . 711.50* +5.50 732.00 521.00

BT . . . . . . . . . . . . . . . . . . . . . . . 161. 60 +3 .90 165 .50 108 .40BTG . . . . . . . . . . . . . . . . . . . . . . 258 .50 + 1. 50 264. 60 150. 00Bunzl . . . . . . . . . . . . . . . . . . . . . 733. 50 –7. 50 784 .50 614 .00

Burberry. . . . . . . . . . . . . . . . . .1040.00 +21.00 1065.00 534.50Cable & Wire Comms .. . . . . .. . .46.99 –7.06 150.00 46.99

Cable & Wire Wwide . . . . . . . . . . .69.95 –1.35 94.80 60.05Cairn Energy. . . . . . . . . . . . . . . .387.00 +6.00 497.60 306.80Caledonia Invs .. . . . .. . . . . ..1827.00 +43.00 1833.00 1496.00

Capita. . . . . . . . . . . . . . . . . . . . .733.00 –11.50 829.50 693.00Capital & Counties . . .. . . . . .. .155.20 +0.20 156.80 99.60

Capital Shopping Centres . . . . . .388.20* +5.80 523.50 300.10Carillion . . . . . . . . . . . . . . . . . . .352.50* +6.90 361.90 272.00Carnival . . . . . . . . . . . . . . . . . .2767.00 +34.00 2937.00 1895.00

Catlin . . . . . . . . . . . . . . . . . . . . . 360. 10 + 5. 80 394 .60 303 .20Centamin Egypt . . . . . . . . . . . . .172.40 +7.70 194.40 103.50

Centrica . . . . . . . . . . . . . . . . . . .330.70* –0.60 347.00 239.70Charter Intl . . . . . . . . . . . . . . . . .682.00 –45.50 855.50 563.50Chemring . . . . . . . . . . . . . . . . .2890.00 –19.00 3711.00 2551.00

Close Bros . . . . . . . . . . . . . . . . .796.50* +7.00 804.00 657.00*

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p)

COLT Group . . . . . . . . . . . . . . . .121.30 –0.10 144.20 107.70

Compass . . . . . . . . . . . . . . . . . .523.00 +4.00 574.50 390.30Cookson. . . . . . . . . . . . . . . . . . .562.00 +11.50 616.00 353.60

Croda Intl . . . . . . . . . . . . . . . . .1452.00 +22.00 1540.00 735.00Daily Mail ‘A’. . . . . . . . . . . . . . . .567.00 +11.50 569.50 393.30Davis Service . . . . . . . . . . . . . . .423.30 +2.00 442.30 356.00

Debenhams . . . . . . . . . . . . . . . . .75.60 +0.20 90.00 51.95Derwent London . . .. . . . .. . . .1525.00* +7.00 1633.00 1183.00

Dexion Absolute . . . . . . . . . . . . .137.10 +0.20 148.00 131.20Diageo . . . . . . . . . . . . . . . . . . .1169.00 +9.00 1240.00 978.00Dixons Retail . . . . . . . . . . . . . . . .27.31 +0.24 39.75 23.07Domino’s Pizza . . . . . . . . . . . . . .513.00 +15.50 513.00 278.20Drax . . . . . . . . . . . . . . . . . . . . . . 379 .80 + 0. 80 478 .00 321 .50

Dunelm. . . . . . . . . . . . . . . . . . . .503.00 +7.10 515.00 319.40Easyjet . . . . . . . . . . . . . . . . . . . .479.00 +15.80 499.90 339.80Edinburgh Inv Tst . .. . . . .. . . . .460.90 +9.60 462.50 339.50Electrocomponents.. . . . .. . . . .255.70 +3.50 260.00 151.60EnQuest . . . . . . . . . . . . . . . . . . .135.50 +2.40 137.00 87.35

Essar Energy . . . . . . . . . . . . . . .545.00 +8.00 553.50 358.50Eurasian Nat Res . .. . . . .. . . . .949.50 +61.50 1276.00 801.00

Euromoney Inst Inv .. . . . .. . . . .655.00 +5.00 660.00 373.00Experian . . . . . . . . . . . . . . . . . . .733.00 –7.00 763.50 559.00Ferrexpo. . . . . . . . . . . . . . . . . . .352.90 +18.00 396.20 145.10

FirstGroup . . . . . . . . . . . . . . . . .404.70 –0.80 428.40 331.20Foreign & Col Inv Tst . . . . .. . . . .297.80 +3.70 299.60 249.90

Fresnillo . . . . . . . . . . . . . . . . . .1367.00 +74.00 1367.00 647.00G4S . . . . . . . . . . . . . . . . . . . . . . 261 .50 + 3. 50 285 .70 238 .70Genesis Emerging Mkts Fd . . . . .533.00 +10.00 540.50 373.51

GKN . . . . . . . . . . . . . . . . . . . . . . 176 .50 + 5. 20 188 .40 100 .40GlaxoSmithKline. . .. . . . .. . . .1227.50* +15.00 1347.00 1088.00

Great Portland Estates . . .. . . . .345.80 +1.50 368.60 239.60Greene King . . . . . . . . . . . . . . . .430.00 — 484.00 372.50Halfords . . . . . . . . . . . . . . . . . . .430.30 +2.30 562.50 370.10

Halma. . . . . . . . . . . . . . . . . . . . . 336. 20 +5 .70 345. 50 218 .60Hammerson . . . . . . . . . . . . . . . .429.90 +10.90 460.30 332.20

Hargreaves Lansdown . . .. . . . .487.50 +7.40 489.10 259.40Hays . . . . . . . . . . . . . . . . . . . . . . 111 .60* + 1. 10 125. 30 82. 50Henderson . . . . . . . . . . . . . . . . .137.00 +3.90 157.80 112.10

Heritage Oil. . . . . . . . . . . . . . . . .354.00 +5.80 585.00 295.90Hikma Pharma . . . . . . . . . . . . . .778.50 +1.50 813.00 452.20

Hiscox . . . . . . . . . . . . . . . . . . . .349.10 +2.80 371.60 299.60Hochschild Mining .. . . . .. . . . .522.00 +23.40 522.50 220.00Home Retail . . . . . . . . . . . . . . . .210.50 –1.70 326.30 201.70

Homeserve . . . . . . . . . . . . . . . . .439.10 +0.50 502.00 422.00HSBC Hldgs . . . . . . . . . . . . . . . .695.10 +25.10 766.80 595.20

Hunting . . . . . . . . . . . . . . . . . . .644.50* +10.00 661.00 429.10ICAP. . . . . . . . . . . . . . . . . . . . . . 481 .30 + 20 .90 485 .20 291 .70IG . . . . . . . . . . . . . . . . . . . . . . . . 539 .00 + 10 .00 560 .00 294. 30

Imagination Tech Gp . . . . .. . . . .402.30 –5.50 445.00 200.00IMI . . . . . . . . . . . . . . . . . . . . . . . 833. 50 + 17 .00 837 .50 425 .70

Imperial Tobacco. . . . . . . . . . . .2040.00 –10.00 2159.00 1728.00Inchcape. . . . . . . . . . . . . . . . . . .345.90 –0.20 358.00 235.00Informa. . . . . . . . . . . . . . . . . . . .448.10 +4.70 450.50 263.30

Inmarsat . . . . . . . . . . . . . . . . . . .660.00 +3.50 831.00 567.50Intercontl Hotels . . .. . . . .. . . .1222.00 +16.00 1244.00 793.00

Intermediate Capital . . . . .. . . . .334.90 +8.40 337.40 233.50Intertek. . . . . . . . . . . . . . . . . . .1926.00* +63.00 1930.00 1136.00Intl Personal Fin . . . . . . . . . . . . .318.00 +4.60 324.50 181.40

Intl Power . . . . . . . . . . . . . . . . . .430.00 +10.30 433.50 250.40Invensys. . . . . . . . . . . . . . . . . . .300.30 +13.40 350.30 224.90

Investec . . . . . . . . . . . . . . . . . . .514.50 +11.50 565.00 411.50ITV . . . . . . . . . . . . . . . . . . . . . . . . 72. 10 + 2. 60 72 .10 43. 09Jardine Lloyd Thompson. . . . . . .590.00 +7.50 604.50 420.70

Johnson Matthey . .. . . . .. . . .1973.00 +55.00 1990.00 1408.00*

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p )

Jupiter Fnd Mgmt . . . .. . . . .. . .294.10 +8.90 295.00 180.00

Kazakhmys. . . . . . . . . . . . . . . .1462.00 +93.00 1634.00 955.50Kesa Electricals . . . . . . . . . . . . .160.50 +2.30 172.40 98.45

Kingfisher . . . . . . . . . . . . . . . . . .240.20* +3.30 255.00 196.50Ladbrokes . . . . . . . . . . . . . . . . .135.90* +0.30 164.60 114.60Lamprell . . . . . . . . . . . . . . . . . . .380.60 +5.10 386.80 157.30

Lancashire Hldgs . . . .. . . . .. . .583.00 +10.00 585.50 416.70Land Securities. . . . . . . . . . . . . .686.50 +16.00 743.50 543.00

Legal & General . . . . . . . . . . . . .103.60 +4.05 107.50 69.05Lloyds Banking Gp . . . . . . . . . . . .70.25 +1.05 79.15 45.30Logica . . . . . . . . . . . . . . . . . . . .127.30 –1.70 149.10 100.80London Stk Exchange .. . . . .. . .750.00 +6.50 938.50 540.50Lonmin. . . . . . . . . . . . . . . . . . .1862.00 +89.00 2198.00 1344.00

Man . . . . . . . . . . . . . . . . . . . . . . 290 .80 + 37 .10 373 .60 199 .60Marks & Spencer . . . . . . . . . . . . .412.80 –6.70 431.40 321.90Meggitt . . . . . . . . . . . . . . . . . . . .332.00 +4.90 336.70 230.50Melrose . . . . . . . . . . . . . . . . . . .294.50 –1.70 303.10 160.00Mercantile IT. . . . . . . . . . . . . . .1013.00 +17.50 1013.00 822.50

Michael Page Intl . . . . . . . . . . . . .491.40 +10.60 495.40 324.20Micro Focus . . . . . . . . . . . . . . . .374.20 +1.40 550.00 272.20

Millen & Copthorne . . .. . . . .. . .565.00 +17.50 585.00 329.20Misys . . . . . . . . . . . . . . . . . . . . .296.20 +10.80 298.00 196.60Mitchells & Butlers . . .. . . . .. . .344.90 +7.90 349.50 233.40

MITIE . . . . . . . . . . . . . . . . . . . . . 205. 60 + 1. 90 248 .60 187 .60Mondi. . . . . . . . . . . . . . . . . . . . . 511 .50 –9 .50 562. 00 304 .70

Monks Inv Tst . . . . . . . . . . . . . . .345.80 +7.30 347.10 265.00Morrison Wm . . . . . . . . . . . . . . .278.70* –11.30 307.10 255.00Murray Intl Tst. . . . . . . . . . . . . . .911.50* +8.50 938.50 720.00

National Express . . . . . . . . . . . . .255.80 +0.20 261.30 155.86National Grid . . . . . . . . . . . . . . .596.00 +7.00 607.65 474.80

Next . . . . . . . . . . . . . . . . . . . . .2133.00 –47.00 2361.00 1816.00Northumbrian Water . .. . . . .. . .358.00 +2.00 364.00 230.00Ocado Grp . . . . . . . . . . . . . . . . .144.00 +2.40 169.00 120.90

Old Mutual . . . . . . . . . . . . . . . . .131.90* +2.80 146.90 95.30Partygaming. . . . . . . . . . . . . . . .225.40 +4.30 339.70 205.80

Pearson . . . . . . . . . . . . . . . . . . .973.50 +1.50 1069.00 812.00Pennon. . . . . . . . . . . . . . . . . . . .634.50 +13.50 634.50 441.00Persimmon. . . . . . . . . . . . . . . . .362.20* +25.70 520.00 335.90

Petrofac . . . . . . . . . . . . . . . . . .1525.00 +42.00 1529.00 900.00Petropavlovsk. . . . . . . . . . . . . . .941.00 +37.50 1370.00 834.00

Phoenix Group . . . . . . . . . . . . . .685.00 +13.50 775.00 550.50Premier Farnell . . . . . . . . . . . . . .284.10 +8.50 284.90 144.40Premier Oil . . . . . . . . . . . . . . . .1764.00 +58.00 1770.00 984.00

Provident Financial . . .. . . . .. . .761.50* +12.50 983.50 744.00Prudential. . . . . . . . . . . . . . . . . .647.00 +28.00 665.00 475.70

PZ Cussons . . . . . . . . . . . . . . . .395.00 +0.90 406.80 231.70Qinetiq . . . . . . . . . . . . . . . . . . . . 103 .80 –2. 20 179. 10 96. 00Randgold Resources . .. . . . . ..5965.00 +165.00 6755.00 4126.00

Reckitt Benckiser . . . .. . . . .. .3631.00 +47.00 3667.00 2988.00Reed Elsevier . . . . . . . . . . . . . . .530.50 –3.50 566.00 454.60

Regus. . . . . . . . . . . . . . . . . . . . . . 85. 50 + 2. 50 125 .50 64. 05Renishaw . . . . . . . . . . . . . . . . .1194.00 +1.00 1250.00 479.00Rentokil Initial. . . . . . . . . . . . . . .100.30 –0.30 140.20 91.15

Resolution . . . . . . . . . . . . . . . . .255.10 –2.10 280.50 220.10Rexam . . . . . . . . . . . . . . . . . . . .325.00 +4.00 348.80 271.40

Rightmove . . . . . . . . . . . . . . . . .782.50* –1.00 830.00 456.90Rio Tinto. . . . . . . . . . . . . . . . . .4305.50 +197.00 4324.00 2751.00RIT Capital Partners . .. . . . .. .1159.00 +23.00 1215.00 940.00

Rolls Royce . . . . . . . . . . . . . . . .621.50* –33.00 661.50 445.50Rotork . . . . . . . . . . . . . . . . . . .1735.00 +8.00 1906.00 1101.00

Royal Bank Of Scot . . . . . . . . . . . .47.14 +1.97 58.95 28.25Royal Dutch Shell A . .. . . . .. .2089.50* +27.50 2106.50 1621.00Royal Dutch Shell B . .. . . . .. .2054.00* +39.00 2071.00 1550.00

RSA Insurance . . . . . . . . . . . . . .133.80* +0.70 137.40 114.10

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p)

Sage. . . . . . . . . . . . . . . . . . . . . . 267 .60 + 0. 30 286. 80 208. 2

Sainsbury(J) . . . . . . . . . . . . . . . .382.80 –1.40 397.00 307.6

Schroders. . . . . . . . . . . . . . . . .1595.00 +26.00 1598.00 1056.0

Schroders N/V. . . . . . . . . . . . . .1267.00 +34.00 1276.00 868.5Scot. & Sthrn Energy . . . . .. . . .1140.00 –2.00 1206.00 1006.0

Scottish Mortgage.. . . . . .. . . . .674.50 +10.00 679.00 475.0

SEGRO. . . . . . . . . . . . . . . . . . . . 302 .50 +6 .30 389. 30 244 .0

Serco . . . . . . . . . . . . . . . . . . . . . 560. 00 –0. 50 656 .50 491 .2

Severn Trent . . . . . . . . . . . . . . .1441.00 +20.00 1445.00 940.0

Shaftesbury . . . . . . . . . . . . . . . .446.10 +1.20 465.00 348.0

Shire . . . . . . . . . . . . . . . . . . . . .1496.00 +5.00 1532.00 1049.0

Smith & Nephew . . . . . . . . . . . . .558.50 +6.00 700.50 528.5

Smith(Ds) . . . . . . . . . . . . . . . . . .180.20 +2.20 181.50 103.0

Smiths . . . . . . . . . . . . . . . . . . .1245.00* +33.00 1297.00 909.0

SOCO Intl . . . . . . . . . . . . . . . . . .328.10 +4.10 510.00 287.4

Spectris . . . . . . . . . . . . . . . . . . 1113.00* –13.00 1146.00 653.0

Spirax-Sarco Eng .. . . . . .. . . .1844.00* +27.00 1888.00 1060.0

Spirent Comms . . . . . . . . . . . . . .150.50 +5.40 157.60 90.3

Sports Direct Intl. . . . . . . . . . . . .136.10 –4.50 154.30 89.8

SSL Intl. . . . . . . . . . . . . . . . . . .1162.00 –1.00 1190.00 619.5

St James’s Place. . . . . . . . . . . . .261.50 +1.50 298.00 203.4

Stagecoach. . . . . . . . . . . . . . . . .216.60 –2.80 222.30 137.0

Standard Chartered. . . . . .. . . .1940.00 +88.00 1944.00 1316.5

Standard Life . . . . . . . . . . . . . . .231.80* +4.60 238.00 170.0

SuperGrp . . . . . . . . . . . . . . . . .1230.00 +67.00 1312.00 499.0

TalkTalk . . . . . . . . . . . . . . . . . . .135.00 –0.40 153.80 106.6

Talvivaara Mining .. . . . . .. . . . .581.00 +15.50 594.00 341.4

Tate & Lyle . . . . . . . . . . . . . . . . .524.50 +34.30 528.50 388.0

Taylor Wimpey . . . . . . . . . . . . . . .25.02 +1.93 46.34 22.1

Telecity. . . . . . . . . . . . . . . . . . . . 478 .40 –9 .40 546. 00 323 .5

Templeton Emrg Mkts . . . .. . . . .661.00 +8.50 673.00 461.8

Tesco . . . . . . . . . . . . . . . . . . . . . 421. 00 * –3. 10 454. 90 368 .4

Thomas Cook . . . . . . . . . . . . . . .179.00 –0.40 277.20 167.5Travis Perkins. . . . . . . . . . . . . . .863.50* +30.50 915.00 647.5

TUI Travel . . . . . . . . . . . . . . . . . .207.50 +2.50 313.90 189.2

Tullett Prebon . . . . . . . . . . . . . . .391.00* –3.50 427.00 261.2

Tullow Oil . . . . . . . . . . . . . . . . .1248.00* +34.00 1375.00 979.5

UK Commercial Prop . . . . . . . . . . .79.45 +1.45 84.90 71.0

Ultra Electronics . .. . . . . .. . . .1759.00 +3.00 1903.00 1198.0

Unilever . . . . . . . . . . . . . . . . . .1924.00 +114.00 2024.00 1662.0

United Utilities . . . . . . . . . . . . . .624.00 +12.50 624.00 434.0

Utd Business Media . . . . .. . . . .679.50 +8.50 692.00 408.3

Vedanta Resources . . . . . .. . . .2190.00 +93.00 2967.00 1795.0

Victrex . . . . . . . . . . . . . . . . . . .1269.00 +12.00 1355.00 747.0

Vodafone . . . . . . . . . . . . . . . . . .173.15 +0.05 175.00 126.5

Weir . . . . . . . . . . . . . . . . . . . . .1631.00* +41.00 1652.00 660.0

Wellstream Hldgs . . . . . . . . . . . .738.00 +1.00 810.00 429.7

WH Smith . . . . . . . . . . . . . . . . . .483.60 +3.70 551.00 392.2

Whitbread. . . . . . . . . . . . . . . . .1767.00* +37.00 1769.00 1215.0

William Hill . . . . . . . . . . . . . . . . .164.60* –0.40 217.80 158.0

Witan Inv Tst . . . . . . . . . . . . . . . .486.00 +6.40 492.00 396.3

Wolseley. . . . . . . . . . . . . . . . . .1781.00 +30.00 1802.00 1155.0

Wood Group (John) . . . . . .. . . . .462.00 +10.10 464.80 279.6

WPP . . . . . . . . . . . . . . . . . . . . . . 753 .00* + 9. 00 756 .50 540. 0

Xstrata . . . . . . . . . . . . . . . . . . .1366.50 +90.00 1367.00 832.5

LONDON TOP 250 BY MARKET CAPITALISATION

* Ex-Dividend † Suspended

Company Name Closing Price Price Change 52wk High 52wk low(p) (p) (p) (p )

Dow rockets afterFed stimulus boost

US stocks extended a rally thatstarted in September to close attwo-year highs yesterday, a day

after the Federal Reserveunveiled a plan to boost the economy. A bullish read on consumers also

boosted shares as many retailers post-ed stronger-than-expected sales forOctober. The S&P retail index gained1.7 per cent and apparel maker Gapadded 6.1 per cent to $20.43.

Confounding expectations of a sell-off after the Fed’s asset-buying plan,investors instead focused on the floodof cheap money expected to flow intothe banking sector from the US cen-tral bank’s programme to buy $600bnmore of Treasury debt.

“Given the political changes, themonetary policy changes, as well asgood seasonal indicators, the marketcould trend higher throughDecember,” said Eric Teal, chief invest-ment officer at First CitizensBancshares in Raleigh, NorthCarolina, which manages about $5bn.

“We could move up another five percent even from these levels.”

Volume reached its highest levelsince 1 July with 10.34 billion sharestraded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, above the year-to-date daily average of 8.73 billion.

The Dow Jones industrial averageclosed up 219.71 points, or 1.96 per-cent, at 11,434.84. The Standard &Poor’s 500 Index was up 23.09 points,

or 1.93 per cent, at 1,221.05. TheNasdaq Composite Index was up 37.07points, or 1.46 per cent, at 2,577.34.

Retail stocks surged after October’ssame-store sales data, which appearedto bode well for the upcoming holi-day shopping season.

Target rose 1.5 per cent to $54.76 while Macy’s advanced 6.6 per cent to$25.56.

Starbucks gained 2.5 per cent to$30.49 in extended trading after itreported fourth-quarter earnings that beat expectations and raised its full- year profit view.

Dow component Kraft Foods postedan adjusted third-quarter profit 1cent a share ahead of expectations. Italso affirmed its full-year outlook,and its stock rose 4 cents to $31.83.

About five stocks rose for every onethat fell on the New York Stock Exchange and more than three rose

for every one that fell on the Nasdaq yesterday.

BRITAIN’S top shares closed attheir highest in nearly 29months yesterday as investors

responded bullishly to the USFederal Reserve’s decision to pumpmore cheap money into the economy to boost flagging growth.

Financial stocks, led by Man Groupand mining and energy shares such asBHP Billiton and BP, surged higher asriskier assets around the world rosedespite concerns the programmecould do more harm than good.

The FTSE 100 closed up 113.82points or two per cent at 5,862.79, itshighest since 9 June 2008, after the Fedcommitted to buy $600bn in govern-ment bonds to support a struggling USeconomy on Wednesday.

“The market’s reacted positively toQE and there's a risk on environment, with data out of the US better, the con-cerns about a slowdown are less pro-nounced,” said Phil Poole, global headof macro investment strategy at HSBCGlobal Asset Management.

There was good economic newsfrom the United States yesterday

where non-farm productivity rosefaster than expected in the third quar-ter, while unit labour costs fell.

New US claims for unemployment benefits rose more than expected last week, underlining the persistent weak-ness in the jobs market which isthreatening the recovery.

Financial stocks were top gainers. The world’s largest listed hedge fund

firm Man Group, up 14.6 per cent,reported upbeat first-half results.Banks provided much of the index’s

strength.Miners rose in tandem with metals,

which benefited as the dollar indexfell to an 11-month low after the Fed’sannouncement.

Anglo-Australian miner BHP Billitonrose 6.6 per cent after Canada blockedits $39bn bid for Potash Corp.

Energy shares were higher helped by a 1.7 per cent spike in the price of crude. BP added 1.3 per cent. The oilmajor beat profit forecasts on Tuesday.

Elsewhere, Unilever jumped 6.3 percent after the consumer goods group’sthird-quarter results.

On the downside, Wm MorrisonSupermarkets fell 3.9 per cent after warning shoppers were likely toremain under pressure into the sec-ond half of 2011.

Next, which said it expected slug-gish growth in the fourth quarter on

Wednesday, shed 2.2 per cent, whileMarks & Spencer, which reports next week, was 1.6 per cent lower.

Rolls-Royce slipped five percentafter Qantas Airways suspendedflights of its Airbus A380 fleet afterengine failure triggered an emergency landing in Singapore. Qantas A380suse Rolls-Royce Trent 900 engines.

Experian fell one per cent as Credit

Suisse downgraded the credit check-ing company. The European Central Bank kept its

main interest rate on hold at a recordlow of 1.0 per cent for the 18th monthrunning yesterday, as expected by economists.

Momentum underlying the eurozone’s economic recovery remains pos-itive but uncertainty about the out-look still prevails, Jean-Claude Trichetat the ECB said.

FTSE rockets to pre-crisis levelas investors bet on US recoveryTHELONDONREPORT

THENEW YORKREPORT

5,200

ANALYSIS l FTSE

5,800

5,600

5,400

5,00017 Sep 7 Oct 27 Oct27 sep9 Aug

5,862.794 Nov

23

Markets&Investment

8/8/2019 Cityam 2010-11-05


8/8/2019 Cityam 2010-11-05


How to avoidthe effects of soaring highereducation fees

The new government’s proposal for universi-ty funding will raise the basic threshold fortuition fees to £6,000 per year and set anabsolute limit of £9,000 in exceptional cir-cumstances. The proposal will lower themaximum household income at which grantsare payable to £42,600 a year instead of thecurrent £50,000. Other details include anincrease of £700 per year in direct supportto households with annual incomes up to£25,000.The amount of payable grants will then grad-ually decrease until only loans are availablefor households with an annual income of £42,600 or more. Meanwhile, successfulgraduates will be hit by variable interest

rates on the loans taken out to pay tuition

fees. There will be a 9 per cent repaymentrate on salaries of £21,000 and above peryear.David Willetts, the minister of state forUniversities and Science, said the systemwould benefit half a million people, mostlyfrom the poorest families. However, middle-class families will be hardest hit if the pro-posal gets through. According to the IFS, thenew plans would leave students from house-holds with an annual income of £42,600with more debt than other students takingsimilar courses. As a result, not only do stu-dents from a middle-class background facemore debt upfront compared to others, theywill also have more interest fees to pay back

after graduation. Riva Sutanto

IN FOCUS | PROPOSED CHANGES TO UNIVERSITY FUNDING

A bleak future foryour children if you don’t save

Picture: ALAMY

Investment | Personal Finance 25CITYA.M. 5 NOVEMBER 2010

AS RECENTLY as February it wasreckoned that it costs an averageof £200,000 to raise a child to theage of 21 (excluding private

school fees), while parents living in outerLondon shelled out £220,000 on each of their children. As if this wasn’t enoughto keep parents and would-be parentsawake into the small hours, it’s justabout to get a whole lot more expensive.

Earlier this week, the Universitiesminister David Willetts announced thatEnglish universities would be allowed tocharge students up to £9,000 a year forcourses starting from 2012-13. Grants

will be made less generous throughtougher means-testing and the interestrate charged on loans will vary depend-ing on the graduate’s salary.

Overall, it is estimated that three outof every four students will be worse off than they are under the current system.

Assuming a household income of over£62,125 – the threshold beyond whichstudents will be eligible for a universalmaintenance loan of only £3,575 – and athree-year course at £9,000 a year, stu-dents could leave university with debtsamounting to at least £37,725. It is esti-mated that a university leaver withdebts of £30,000 and an annual salary of £45,000 will have to pay back approxi-mately £2,160 a year for about 30 years.

For those parents who have paid private school fees for the best part of 14 years and who want their children to begin their adult lives without the bur-den of student debt, their wallets will befeeling even more stretched. One thingis clear – we need to become more likethe Americans, who think about the cost

of college education when their childrenare still in nappies. Even putting in asmall amount every month can becomea sizeable sum 20 years down the line.

According to the Hargreaves Lansdownregular savings calculator, putting away

just £50 a month would give you £21,173after 18 years, assuming an average

annual growth rate of 7 per cent. Although Junior ISAs are scheduled to

be launched next autumn, contribu-tions are likely to be capped, limitingtheir capacity to fully meet the costs of higher education. Equally, ownership of the Junior ISA’s assets transfers to thechild when he or she turns 18.

BARE TRUSTS Alternatively, you could choose to createa bare trust, which is recognised by theInland Revenue and incurs no tax impli-cation for the settlor. However, the struc-ture of bare trusts means that thenamed beneficiary has what is known asabsolute entitlement to the assets thatare placed in trust. These are held in thename of the trustee until the childreaches the age of 18. At this point the

beneficiary will be immediately able tocall on the assets; the trustees will haveno discretion over whether or not they should receive them.

Should you wish to retain control of the money and have the ability to draw on the capital for costs such as schoolfees, a designated account may be a bet-ter route. This is held in an adult’s nameand marked with the child’s initials. Theparent retains wider control of the deci-sion-making and therefore, can makesure access is granted to benefit thechild at the most suitable time, explains

Aspen Financial. With a designatedaccount, the parent can make with-drawals for relevant needs, to pay forcomputers and educational needs in theearly years. However, be aware that theseare not always recognised by the InlandRevenue and you may be liable for taxes.

Thinking about your child’s futureeducation as early as possible will meanthat you won’t feel the pinch when they head off to university.

Rising universitycosts mean parentswill have to startsaving much earlier,writes Jessica Mead

8/8/2019 Cityam 2010-11-05


Donata Huggins meets the team that has taken a fresh approachto number-crunching and financial services for small businesses

City Focus | Entrepreneurs

26 CITYA.M. 5 NOVEMBER 2010

PRICE is well known to be the singlemost powerful determinant of profit,so why continue to use guesswork more than science?

What is the right price for your productand service? Do you really have an educatedidea? Have you gone to the trouble of testingand checking different prices, or is it just anannual finger in the air exercise for you,after a quick look round at the competition?Perhaps you’re more the “cost plus targetmargin” sort of guy?

Have you ever stopped to ponder thatalmost everyone who has ever bought any-

thing from you would almost certainly havepaid you more; sometimes a lot more?Setting your prices lower than you could dois like holding four of a kind in a hand of poker and seeing two pairs.

AUSTERE TIMESIn these more difficult and austere times, you might now reflect on just how impor-tant your pricing strategy is to the dream of that Aston Martin in the drive. Seriously suc-cessful companies like Google, Dell, Nikeand IKEA, and even those we love to hate likeRyanair -- all offer crystal-clear propositionsfounded on and reinforced by bold andinnovative pricing strategies. Pricing is notan aftera thought, it’s the beating heart of a winning formula.

Only in a Monty Python sketch are yourcustomers ever likely to come in and negoti-ate you up to a higher price. But it’s a com-plicated zone in which to tread carefully. We will scream blue murder at Amazon for thelate delivery of a CD sent across mountains,oceans and whole continents, from theother side of the world to your front door, but will unilaterally leave a voluntary 10 percent tip to reward the arduous and complexlogistical challenge of delivering a pizza allthe way from the kitchen to our restauranttable.

EFFECTIVE PRICING The secret to effective pricing is to find mul-tiple ways of placing yourself in the shoes of the customer, to be bothered enough toinvest the necessary time to understandtheir situation and what it is that they valueenough to pay for and to build your pricingmodel accordingly. Fairness and credibility are the critical backbone to every sustain-able pricing strategy. So what should youdo?

Firstly, put your prices up if you offer good value. Don’t be scared. Think about it. You

instinctively know that lower prices wouldmean lower profits, unless you’re redefining your whole sector a la eBay. So, why not goin the other direction and make moremoney? Secondly, offer differentiated pricesto those who appreciate different aspects of the offer. Think Ryanair. If you want a cheapflight to Krakow, you need to remember toget in early because by booking last minute you will have paid about 50 times more thanthe guy now sitting to your left.

EASY TO FIND And finally, keep your prices easy to find,easy to read, easy to understand and reflec-tive of your market positioning. It’s always amistake to con your customer, even if youcan get away with it in the short term. Thatcheap Rolex you’ve had your eye on is a fake. As a rule of thumb, we do still get what wepay for.

Alex Pratt is a serial entrepreneur and the

author of “Austerity Business: 39 Tips for Doing More with Less”, published by Wiley, £12.99.

PRICES NEEDSCIENCE NOT

GUESSWORKALEX PRATT, OBESERIAL ENTREPRENEUR AND AUTHOR

ACCOUNTANTS are supposed to be

boring, right? Well that’s what Ithought until I met Lynton Stock,Susan Hutter and Bobby Lane.

They have taken their number-crunchingskills and mixed in some entrepreneurialspirit.

In 1988 Stock and Hutter were workingat a big accountancy firm. They had risenfrom the ranks, become partners and were doing well. But after a disagreementover the direction of the company, ratherthan putting up with it or moving toanother firm they decided to go it alone.

“It was the beginning of the 1990srecession when we started out. It was ascary time. We were lucky in the sensethat a lot of our previous customersquickly migrated to our new firm but wehad committed ourselves to dealing witha lot of debt at a bad time. We made it our

priority to clear it and we managed it inthe first year.” From this entrepreneurialstart they have done something moreinteresting.

In 2005 Bobby Lane came to them withhis frustrations with accountants forentrepreneurs: “The problem withaccountants is that they swoop in every six months, tell start-ups what they are

doing wrong and then leave. What could be wrong for a start-up in the first sixmonths might not be in the next sixmonths,” Lane explains. “I felt that thereneeded to be some strategic input.”

Stock felt that this was the way theindustry was moving. Of course, account-ancy firms have always had consultancy wings, but Shelley Stock Hutter wouldprovide start-ups with strategic manage-ment advice. They created an add-on com-pany, Denver Chase, and mixed theiraccountancy service with this idea.Initially, some might be sceptical of this.Surely they must use this as a way of colonising start-ups and taking a share intheir profits? But it turns out, they don’t. They never take a stake in a company. “Ikind of think it would impair what wecan offer, kind of make us less impartial,”Lane says. “This approach worked well

through this recession, clients can scaleup or down our services depending onhow much they feel comfortable spend-ing. We’ve found that clients that cut back in 2009 have come rushing back assoon as they recovered.”

But it hasn’t all been plain sailing, they have had challenges along the way.“Staffing was an issue for a long time: we

need technical experts – equipped withall the right financial skills – but we alsoneed people who have the interpersonalskills to be able to come into a small busi-ness and tell them what they are doing wrong with some tact,” Hutter explains.

They have chosen to take most of their bookkeepers straight from school to tack-le this. “We like to train people ourselves;prevent people picking up bad habits,”Hutter suggests. None of the three haveOxbridge backgrounds themselves.Hutter for instance wanted to get out of school and start working as soon as possible. Despite being offered a place at LSE tostudy economics, she was determined to be financially self-sufficient as soon aspossible. So she opted for a foundationprogramme at the then City of LondonPolytechnic, now London MetropolitanUniversity, to fast-track herself to a career

in accountancy. Their attitude towards risk has seen the business grow rapidly. Lane claimDenver Chase is experiencing a 25-30 percent growth spurt this year purely fromthe new bespoke services – pushingShelley Stock Hutter’s overall turnoverthis year to £4m. Impressive for dull number-crunchers.

Lynton Stock

Age: 52Born: LondonStudied: Manchester UniversityLives: StanmoreFirst ambition: Professional tennis playerFavourite business book: Taxation magazineTalents:Bridge and tennisReading: Ken Follett

Motto: “Always under-sell and over-provide.”

Susan Hutter

Age: 53Born: LondonStudied: 1-year foundation course at City of London Polytechnic, 1976First ambition: Ballerina or a princessFavourite business book: 7 Habits of HighlyEffective PeopleMotto: “You always regret the things you

don’t do, not the things you do.”

Bobby Lane

Age: 37Born: LondonStudied: University of WestminsterFirst ambition: PilotFavourite business book: Marketing JudoTalents:The ability to find something positivefrom every Spurs matchMotto: “You can achieve anything in life if you

want it enough.”

CV |SHELLEY STOCK HUTTER LLP & DENVER CHASE

The three musketeersof start-up accountancy

(L-R) Lynton Stock, Susan Hutter and Bobby Lane Picture: Micha Theiner/City A.M.

8/8/2019 Cityam 2010-11-05


Living | AbroadTHE POP STARFROM THE CITYINTERVIEWEDON PAGE 32

27

@

SURE, lounging by the pool witha row of Cyprus trees and a bot-tle of rosé as company soundslike a good use of a second

home. But such indolence may not beeveryone’s idea of a perfect escape. And in winter, even that Provencalfarmhouse or Tuscan villa will becomefrosty.

The perfect alternative, of course, isto find yourself a pad in a vibrantEuropean city, big or small, but either way, loaded with your favourite food, wonderful drink and brilliant culture. This is an option increasing numbersof youthful culture vultures areexploring – the types who figure youcan lie under the Cyprus trees when you’re old.

Andrew Hawkins, head of interna-tional sales at Chesterton Humberts,says: “The European city pad is for younger people who want to be able to jump on a plane at 5pm on a Friday and be out on the town the sameevening.”

Of course, Europe is a huge place, but the major cities of France and Italy are enduringly appealing, with Spain,Portugal and even Turkey (Istanbul) becoming popular. And for every Rome and Paris there’s a more low-key Florence or Nice.

But why consider a city property for your holiday home? For fun, of course.“The types of people who opt for city flats tend to be young professionals without kids – it’s not a family thing.Most people choose a city they havesome kind of connection to, some

affinity. It can be very stimulating tohave a city bolthole in Europe,” saysFawcett.

If you’re considering buying in a

European city, particularly one likeRome where the local market can becut-throat, Fawcett says it’s vital to usean international agent. “If you want to be sure of what you’re getting, you doneed to use one, even though the prop-erties they show you will be moreexpensive. Otherwise you can getmuddied in the local agent market.”

If you’re in search of a bargain, the big cities of Western Europe won’tdeliver it for you. In Rome, you’re look-ing at €1m for a mid-sized two-bed-room flat in a prime area – in Paris,€2m on an upper f loor in a desirablearrondisement like the 8th or 6th.

Paris has its own laws. Mark Harvey,of Knight Frank’s negotiations team,says it’s cyclical in popularity and inprices. “Paris is the cultural capital of the world – it has come back to reignagain. And everyone wants to be in thesame period properties in the samearrondisements.” Be prepared to pay dearly if you’re one of them.

Harvey says people can get excellent value and much more besides in otherFrench cities – Bordeaux in particularis one to watch, with more and morepeople interested in being in the heartof wine country. Avignon is another jewel, with great train links to Paris.Lisbon is ripening too, following lots of investment, and with ocean, history and nightlife, what else could you want in a European vacation?

Don’t dismiss a Continental bolthole foryour second home, says Zoe Strimpel

Buy a slice of one

of Europe’s bestcultural hotspots

TOWNHOUSE, BORDEAUXPrice: €1.431Grand living in the centre of Bordeaux within an easy walk of the city’s historical centre. Justthree hours by train f rom Paris,the 19th century property hasbeen restored beautifully, with amarbled entrance hall, magnifi-cent stone staircase and a largedrawing room and swimmingpool. Easy access to the mostfamous vineyards in the world.Contact: Knight Frank,on 020 7629 8171.

PEOPLE flock to quality, as thesaying goes. In the Europeanproperty market, that meanseveryone goes for Paris,

Florence, Nice, Zurich, Rome –indeed, at the moment, everyone’sgoing for Paris.

But if you fancy the Europeanexperience, and can live withoutthe hustle, bustle, tourists andintensity of Europe’s hubs, thereare many wonderful options thatoffer far better value, with Francecoming out strongly in this regard.It has heaps of historical, beautifulcities near or in excellent winecountry that are well-connected toParis and offer superb value.Bordeux, with its historical charm,students and wine, is KnightFrank’s Mark Harvey’s first choice.It is becoming popular, though,while Reims in Champagne is quiteundervalued, according to Harvey.“I’m surprised that Champagnehas not done better –Reims valueshaven’t taken off, yet you can buywonderful period buildings for afraction of the price as elsewhere.”Avignon and Toulouse are alsogood spots for those seeking aFrench cultural hub without thestress and prices of Paris.

Zoe Strimpel

EUROPEAN BOLTHOLES |FOCUS ON FRANCE

CARLO FEA, ROMEPrice: €1,850,000An elegant three bedroomflat by Villa Mirafiori and theVilla Torlonia in a prestigiousperiod building surroundedby a green area, with threebalconies and a livable atticwith wooden beams.Contact: Knight Frank on 020 7629 8171.

SANTA CATARINA,LISBONPrice: €350,000-€2.35mA luxury development in theheart of Lisbon, with sound-proofing on the façade fac-ing Calçada do Combro.Contact: Chesterton Humberts on 020 3040 8248.

INVALIDES, PARISPrice: €15mAs noble an apartment asyou could hope to find, thisenormous, marble-filled resi-dence is seconds is in thecity’s most exclusive area,near its top landmarks.Contact: Simon Barnes on 020 7499 3434.

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Call now to book an appointment to view

020 8522 4568www.site-sales.co.uk

Velocity’s sharply styled apartments comewith balconies and luxury specifications and

are now available to view.Conveniently located on Stratford High Street, Velocity is lessthan half a mile from the centre of Stratford and only minutesfrom exceptional transport connections.

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It might seem a little early to

be thinking of Christmas, but

if you’re having family and

friends over for the festivities,

now’s the time to start planning

a home makeover.

We can help you with Christmas

styling, a new kitchen or

bathroom, redecoration of

the lounge (particularly if you’re

buying a new sofa) or a simple

lick of paint to bring the place

alive again.

Whatever you need, we’ll

make you the envy of your

guests this Christmas

If you’re hosting the festivities this year

but you’re home’s not quite ready for it,

we can help.

Get your home ready for Christmas.

Tel. 020 7687 6288

Email. [email protected]

Twitter. @andrewdunning

Web. www.apdinteriors.com

www.apdinteriors.com

8/8/2019 Cityam 2010-11-05


Living | The Knowledge30 CITYA.M. 5 NOVEMBER 2010

CHORUSPrice: From £399,950 for a two-bed flatThis brand new development from Durkan Homes has just beenlaunched and includes one, two, and three-bedroom apartmentsas well as a penthouse. The modern apartments have bespoke,luxury fittings. It is located in the centre of Wimbledon and thepenthouse has stunning views.Contact KFH on 020 8944 4000, www.chorus-wimbledon.co.uk

DORA ROADPrice: £1.4mThis is a sizeable family home close to Wimbledon Park. ThisEdwardian semi-detached has five bedrooms as well as two bath-rooms, 2 large reception rooms, a conservatory and an eat-inkitchen. There is a westerly-facing back garden and there is off-street parking available for two cars.Contact Winkworth on 020 8946 2930, www.winkworth.co.uk

MARRYAT ROADPrice: £3,675,000A stunning Edwardian house complete with its own turrets closeto the heart of Wimbledon Village and just 200m from the All-England tennis club. It has eight bedrooms and four receptionrooms. There are also numerous cellar rooms, extensive gardensand the potential to extend the property further.Contact Savills on 020 8971 8111, www.savills.co.uk

For more information visit residencessugarbeach.com

FOCUS ON: WIMBLEDON, SW19 BY JESSICA MEAD

8/8/2019 Cityam 2010-11-05


Living | The Knowledge 31CITYA.M. 5 NOVEMBER 2010

Introducing the Caribbean’s finestresidences, nestled between theiconic Pitons of St Lucia

The Residences at Sugar Beach

The world renowned Jalousie Plantation Resort is undergoing a breathtakingtransformation to become Sugar Beach. At the heart of this UNESCO WorldHeritage Site are the Residences – stunning freehold properties with unbroken

vistas across the rainforest, Pitons and warm waters of the Caribbean.

Prices from US$2,400,000

+44 (0)844 9210126 [email protected]

Q.Dear James, I want to sell myflat. What do I have to tell mytenants?

A.It all depends on the tenancy agree-ment: you can’t conclude the fixedperiod of an Assured Shorthold

Tenancy (AST) early because you want tosell. If you’re in a periodic tenancy, you’llneed to give two months’ notice (assumingthe rent’s paid monthly).

But for most people, it won’t be thatstraightforward. Obviously, you’ll want tosell the flat when it’s vacant but it couldtake months to even find a buyer, let alonecomplete.

Advise your tenants of what you’re plan-ning and gauge their reaction. Assure themthey’ll get their proper notice, but thatyou’re happy for them to stay for now. You’llneed their approval to organise viewings,because they have a right to “quiet enjoy-

ment” and don’t have to allow viewings if you’re selling the property. Keeping tenantsin there as long as possible makes sense:your property will be earning for as long aspossible and you’ll avoid a rent void.

You may want to sweeten the pill byoffering a rent discount to take account of the favour they’re doing you. And you’ll alsowant to ensure that the tenants knowwhat’s expected of them: if that involves youpaying for a cleaner for a few months, itcould be money well spent.

James DavisCEO AND FOUNDER OF

UPAD.CO.UK

RENTING

Q.Do I have to get aninventory done by aprofessional company? Or can I

save cash and do it myself?

A.You don’t have to have an inventoryat all, but that’s asking for trouble.An inventory exists to protect both

you and your tenants. You expect to get yourproperty back pretty much as you let it,minus a bit of reasonable wear and tear. Theinventory documents the state of the proper-ty at the start of a tenancy, so if there’s a dis-pute later, a full and detailed record is vital.

Of course, you can do it yourself. But cre-ating a really good inventory is something of an art. An inventory clerk will know what tolook for and have a substantial checklist of all manner of things that you might not eventhink of. They also have the kit. Nowadays,digital cameras are widely used tools of theinventory trade. A DIY inventory may wellbe a false economy if there is a disputewhere your own handiwork isn’t up toscratch and you can’t prove the damage thatthe tenants have done at the end of the ten-ancy.

Q.I didn’t know I had to lodge mytenant’s deposit with a protectionscheme and have it in my bank

account. What should I do?

A.Act quickly. You need to make goodon your ignorance and register thedeposit immediately with one of the

government approved schemes. You shouldthen inform the tenants of the details.Although you have fallen foul of the law, byacting swiftly and in good faith, you should-n’t be liable to any penalties.

James Davis is CEO of online lettingsagent www.upad.co.uk. You can also follow

Q A&

FINCHLEY ROAD’S NEW LUXURY DEVELOPMENTAlbany Homes International has unveiled West Heath Place,which is a luxury collection of two, three and four-bedroomapartments as well as penthouses and a cottage on FinchleyRoad. Prices start from £795,000 for a two-bed apartment.Call 020 8201 8780 for appointments to visit the show home.

FOXTONS OPENS CLERKENWELL OFFICE TOMORROWLondon estate agent Foxtons will tomorrow open the doors of itsbrand new Clerkenwell office. This is the fifth new office thatFoxtons has opened this year. To celebrate, it is offering localhomeowners the chance to take advantage of a zero per centcommission offer when instructing the Clerkenwell office.

PROPERTY NEWSBY JESSICA MEAD

CURRENT MORTGAGE DEALS BY JESSICA MEAD

LENDER FIXED/FLEXIBLE RATE UNTIL STANDARD RATE APR MAXIMUM LOAN(PER CENT) (PER CENT) (PER CENT) TO VALUE (PER CENT)

NatWest Flexible 1.99 To Nov 2012 4 3.9 60

First Direct Flexible 2.19 2 years 3.69 3.5 65

Santander Flexible 2.19 2 years 4.24 4 60

HSBC Flexible 2.19 Term 2.19 2.2 60

ING Direct Flexible 2.29 2 years 3.5 3.5 60

Yorkshire BS Flexible 2.39 To Nov 2012 4.99 4.7 60

Yorkshire BS Fixed 2.69 To Nov 2012 4.99 4.8 60

Principality BS Fixed 2.74 To Dec 2012 4.99 4.9 65

NatWest Fixed 2.75 To Nov 2012 4 4 60

Santander Fixed 2.75 To Jan 2013 4.2 4.2 60

Chelsea BS Fixed 3.29 To Dec 2013 5.2 5.2 75Source: MoneySupermarket.com

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A masterful look at everyday life

Film

ANOTHER YEARCert: 12A

hhhhh

BRITISH director Mike Leigh’s new film isa touching, near perfect portrayal of sub-urban life and its crushing trivialities. Atthe centre of things are comfortable,middle class couple Tom and Gerri(Jim Broadbent and Ruth Sheen).

Around them are people whose liveshaven’t panned out quite as planned. Wemeet Ken, an old friend whose unhealthy lifestyle is a cause for concern, and

Tom’s bereaved brother and his estrangedson. In a towering performance, Lesley

Manville plays Mary, a work colleague of Gerri’s who comes increasingly to dependon the couple and the security they seemto offer. Beneath a flimsy exterior, Mary’sdesperation and distress is plain, and herdesperate flirting with the couple’s sonmakes for uncomfortable viewing.

Leigh is canny enough never topresent Mary and the other characterssimply as objects of pity. She irritates andinvites sympathy in equal measures, asLeigh evokes a terribly moving senseof human fragility, need and self-pity.

Warm, humane and often funny, Another Year is Leigh’s strongest shot at Oscarglory yet. Rhys Griffiths

LET ME INCert: 12A

hhhhI

New Mexico, 1983. An awkward boy of 12,terribly bullied at school, findsa companion in the strange girl of thesame age living next door in a dowdy apartment block, who only comes out at

night and doesn’t seem to feel the cold. Yep, she’s a vampire, and she’s been 12 fora very long time.

The 2008 Swedish film upon which thisis based, Let The Right One In, was one of the finest films of the decade – a doleful,desperately tender tale of loneliness in anunforgiving world, which ignored every

vampire cliché by a country mile. GivenHollywood’s habit of butchering foreigngems with shoddy remakes, the prospectof a US version was worrying – surprising,then, that this is an impressive, faithful

version.In fact, it’s so close to the original that

it may be superfluous for those whosaw the Swedish film. For everyone else,this is a boldly intelligent picture and atotal departure for American horror. Thechildren – Kodi Smit-McPhee, who starredearlier this year in The Road, andKick-Ass’s Chloe Grace Moretz –

are superb, as is Richard Jenkins as thelittle girl’s human minder, a sorrowfulold man who must harvest blood forhis charge. A moving, beautiful, cerebral

American horror film – as such, a rarething indeed. Timothy Barber

Mike Leigh delvesbelow the suburbansurface once again

DUE DATE Underwhelming comedy road movie withRobert Downey Jr and Zach Gallifinakis.

JACKASS 3D The latest round of dumb stunts andpotty humour from Johnny Knoxville et al.

MAMMOTH Emotional drama with Gael GarciaBernal and Michelle Williams.

FILM

THE PACIFIC Steven Spielberg and Tom Hanks’s epicTV series about World War II.

PREDATORS The latest in the franchise sees a gang of killers marooned on the alien hunters’ own planet.

GET HIM TO THE GREEK Extended, um, “party edi-tion”of the Russell Brand comedy.

DVD

CHERYL COLE Second solo album from wag Cheryl,called Messy Little Raindrops.

RUMER Debut album from the songwriter with morethan a touch of Karen Carpenter to her vocals.

JAMIROQUAI The prat in the hat is back, and he’s dis-covered disco. Rock Dust Light Star is his new album.

MUSIC

GOD OF WAR: GHOST OF SPARTA (PSP)Greekmythology-themed action adventure game.

GOLDENEYE 007 (WII, DS) New version of the leg-endary game based on the 1995 Bond film.

RUGBY LEAGUE LIVE (PSP, X360) Play head-to-headrugby league online.

GAMES

ALSO OUT THIS WEEKFILMS, MUSIC, GAMES

Lifestyle | Arts

32 CITYA.M. 5 NOVEMBER 2010

THERE are plenty of stories about people who escaped the City to get into farming,painting, charity work or plough any num-

ber of non-rat race new directions.However, in taking the City worker-to-popstar route, 26-year-old Roxanne Emery ispretty much unique. And refreshingly, theformer trader’s change of direction wasn’teven because she wanted out.

“I loved working in the City and I miss ita lot,” she says. “I miss the adrenaline, get-ting up at 5AM and knowing what was

going on in the markets, the non-stop ban-

ter with colleagues. It was great fun, and I worked very hard.”

Emery, whose debut single is released onMonday, spent three years as a trader ininvestment banking, first at Bear Stearns –she left two weeks before it went under –and then at Russian bank RenaissanceCapital. After studying Philosophy, Politicsand Economics at Warwick University, she

went straight into the City, along withmost of her friends.

“My best friends still all work in banking,so I still come into the City to have drinks,

but life is so different now.”Emery only picked up a guitar and start-

ed writing songs early last year. She foundit an escape from the intense pressures of the banking crisis.

“It was a horrible time, we lost a lot of colleagues – you’d come in one day and

your best mates would be gone, and you’d

worry you were next,” she says. “I foundmusic hugely cathartic.”

She began gigging on the open mic cir-cuit, and after only her third live appear-ance, she was approached by a company

wanting to manage her professionally, whose previous clients included NatalieImbruglia. In return, though, she’d have togive up banking.

“I was weighing up three gigs againstthree years of investing in my bankingcareer,” she says. “I decided to be sensibleand stay at the bank – that was on aMonday, but by Wednesday I couldn’t

work, I couldn’t ignore the impulse.”Since then Emery has been mixing live

appearances with writing and recordingher album, Remember Me, due for releaseat the start of next year. First singleReal is an easy-going slice of whimsicalorchestral pop.

“My music’s the least rocky thing ever,”she laughs, stating that her principal influ-ences were her dad’s albums by the likes of REM, Jackson Browne and BruceSpringsteen. Another family influence isher brother, the leading house DJ GarethEmery, who has provided plenty of supportand guidance in a career gamble for whichshe gave up a £50,000-plus-bonuses salary.

“My life has completely changed,” shesays. “But the biggest thing is how emotion-ally attached I am to my job now. I took

banking very seriously, but I care about thisso much because it’s personal.”

Real will be available for download on Monday

on De Angelis Records.

Roxanne Emery leftbanking for music, shetells Timothy Barber

The former Citytrader aimingfor pop stardom

Jim Broadbent in Another Year.

Roxane Emmery spent three years as a trader in the City.

8/8/2019 Cityam 2010-11-05


hue). The best dinner suits aremade from barathea cloth, a twill

with a subtle texture whichensures it doesn’t shine too much– a sure sign of a cheap dinner

jacket. Avoid shiny satin lapels – good din-

ner jackets have lapels of grosgrain,an understated ribbed silk. As for thelapel shape, Selfridges buying manag-er Adam Kelly says it’s a matter of choice. “The shawl lapel [a smooth,

continuous curve originally seen onthe Victorian smoking jacket] is still akey part of the tuxedo, though somedesigners like Dolce & Gabanna and Tom Ford are now favouring a wider,peaked lapel.” Never choose a simple

notched lapel however – that’s just com-mon.

SHIRTSteer clear of wing collars – unless you’reattending a white tie event they’re distinct-ly non-suave (fact: no James Bond has ever worn one, so neither should you). Go for adress shirt with a marcella front panel (akind of honeycomb weave) rather than thepleated front that hire shops tend to offer.Some dress shirts have studs – if you wearone, make sure your cufflinks match.

FURNISHINGSCummerbunds have been out of fashionfor a while now, though Kelly reckons thepopularity of the pocket square may sug-gest a move back into favour. “These kindof additional features are coming back intotrend,” he says. However, a low-cut dress waistcoat with two or three buttons adds alot of dapper class.

WITH the City’s party seasonimminent, it’ll be time for chapsto dust down their tuxedos. Thegoing wisdom is that men have

it easier than women when it comes to for-malwear, since there’s a prescribed uni-form to stick to. But even within the black tie guidelines, there are a number of deci-sions to take to ensure you’re at your mostdebonair. You want to look as though wearing black tie is utterly normal to you.

“I think that when you wear a dinner jacket it is best to keep it simple and not

try to jazz it up with a clever bow tie orfancy silk facings,” says menswear guru Jeremy Hackett. “It’s a monochrome affairand as I often say, formal dress is not fancy dress”.

TIE The dress code is named after the tie, sodon’t even think about wearing a fake,pre-tied bow – they can be spotted a mileoff, and suggest you simply can’t be both-ered. Knuckle down and learn to tie thething – a good way to practice is tying onearound your leg, tying the knot as you would a shoelace. Ideally the tie shouldmatch the material of your dinner jacketlapel. While large, Seventies-style versionshave been appearing here and there –notably, Tom Ford has been sporting themrecently – remember you need strong,angular bone structure to pull that off.

DINNER SUIT

It’s worth seriously considering having adinner suit made, and at the very leastshelling out for a good quality off-the-pegnumber. You may only wear it on the oddoccasion, but those will be the times you’ll want to look your best – particularly when you consider that you’ll be in a room where all the men are dressed the same way.

“The only way to stand out from every-one else in black tie is to carry it off betterthan them, and it’s not possible to carry off a cheap, machine-cut dinner suit well,”says James Sleater of City tailors Cad & theDandy.

The first thing to consider is the colour. Yes, really. Black tie may suggest just that, but tailors actually recommend midnight blue, which looks black under artificiallights (whereas black takes on a purple

Right, Black tie comesin different formats,as demonstrated atlast week’s City A.M.awards. Below, dinnersuit by Hackett, £600.www.hackett.com

Pic: Micha Theiner / City A.M.

Lifestyle 33CITYA.M. 5 NOVEMBER 2010

Looking dapper in black tieis about keeping it simple

TIFFANY COMES TO THE WHARFCanary Wharf workers are in for a treat, withthe opening of a Tiffany & Co. boutique at CabotPlace. Set to open on 12 Nov, the store –London’s ninth – will be in the Cabot Place Eastmall and occupy 2,000 square feet. To celebrate,

Tiffany will be giving out free coffee to com-muters from 7AM on the day.

PAPHITIS NAMES LINGERIE ENTERPRISEEntrepreneur Theo Paphitis has announced thathis new lingerie brand will be called Boux Avenue. It will be mid-market and designed tocompete with Marks and Spencers. Paphitis wants to open in 30 shopping centres from next

March and the line will also be available online at bouxavenue.com.

LEVI’S LAUNCHES SUSTAINABLE JEANSLevi’s has announced a big move towards sustain-ability, introducing more than 12 classic styles inits new Water<Less label this spring. New tech-niques for washing and finishing will require 28-96 per cent less water than the usual 42 litres

needed for each pair of jeans. The first batch of sustainable jeans will include the 501 and 511.

COCOSA LAUNCHES FOR MENCocosa, the fashion site, launches a men’s ver-sion on 8 November. Operating under the flashsales mechanic for easier use, it will feature top-line brands, including Vivienne Westwood, JohnSmedley, Nicole Farhi, Stephen Webster, Calvin

Klein and Hugo Boss, with discounts of up to 80per cent. www.cocosa.com

FASHION NEWS IN BRIEFBY ZOE STRIMPEL

LADIES HAVE

MORE OPTIONS

IN contrast to formalwear for men, blacktie for women is a veritable fiesta of styleand fun. The range of fabrics, colours, cuts,shoes, jewellery and makeup make it an

opportunity to express yourself and look greatat the same time. Of course there are restric-tions – you never want to confuse glamourand elegance with putting large amounts of flesh on show and wearing lots of sequins.

But more often than not, people go theother extreme and dress overly conservative-ly. Kara Iland, of Rous Iland fashion boutiquein Mayfair, says: “You don’t have to wearblack: in fact, a great way to do colour andmake a statement is to wear red. Also, youdon’t have to do full length these days – you

can wear a cocktail dress and really state-ment jewellery.”

One-shoulder dresses are particularlymodern and elegant and allow you to bearskin without showing cleavage. RebeccaTaylor and Karen Millen do good ones (seeshopbop.com/clothing-dresses-one-shoulderfor more choice).

If you do like to flaunt your chest, remem-ber, says Iland, that the usual rules apply. “If you’re going to show cleavage, make sureyou’re covered up elsewhere. If it’s short, itcan’t be tight.” If, after all, you just want tosnuggle up in comfortable old black, then

jazz up your look with some great costume jewellery. A bold cuff orsome fabulous earrings –the bigger and brighterthe better – are excellenttouches especially if you’re wearing adark dress. As forhow far you can go, alot of women are nowwearing amazingly-cut suits for black tieoccasions, too.Finally, shoes are all-important. For formal-wear, you need to havesome heel. Open-toe is agood choice if you’re wear-ing a long skirt, too. Thesedays, heels can be sky-scraper without appear-ing trashy, but don’twear anything youcan’t handle. After all,there’s nothingsophisticatedabout tottering.

Zoe

StrimpelStyleCounsel

When everyone’s dressed thesame, it’s all about how youcarry it off, says Timothy Barber

8/8/2019 Cityam 2010-11-05


T E R

R E S T R I A L

DAVID ATTENBOROUGH’S FIRST

LIFE BBC2,9PMThe naturalist explores the origins of life on Earth, explaining how a fossildiscovery transformed scientists’understanding of the first organisms.

PAUL O’GRADY LIVEITV1,9PM

Comedy actor David Walliams andCoronation Street actress BarbaraKnox (Rita Sullivan) drop in for a chat,and McFly provide the music.

UNREPORTED WORLDCHANNEL4, 7.30PM

Peter Oborne explores the devastationcaused by the recent flooding inPakistan, revealing how people havelost their homes and crops.

BBC1

SKY SPORTS 17pmSky Sports News at Seven7.30pm Live Anglo-Welsh CupRugby Union 10pm Take It Likea Fan 10.30pmPremier LeaguePreview 11pm Football LeagueWeekend 12am InternationalCricket 2amTake It Like a Fan2.30am Football LeagueWeekend3.30am InternationalRugby League 4amTake It Likea Fan 4.30am-7am LiveInternational Rugby League

SKY SPORTS 27pm InternationalRugby League7.30pm International Cricket9.30pm International RugbyLeague 10pm Tight Lines 11pmNFL: Total Access 12am GolfingWorld 1amAnglo-Welsh CupRugby Union 2.30am NFL: TotalAccess3.30am UrbanRide 4amAnglo-Welsh Cup Rugby Union5.30am-6amWorld Sport

SKY SPORTS 37pmTight Lines 8pmWorld

Golf Championship 9.30pmWorld Sport 10pm WWE: LateNight – Smackdown 12amWWE: Late Night – BottomLine1amWorld Golf Championship2.30am World Sport 3am-8amLive World Golf Championship

BRITISH EUROSPORT6.10pm TimbersportsSeries7.15pm Live Cycling 9.30pmMotoGP 11pm Eurogoals Flash11.10pm Freeride Spirit Show11.25pm-12.25am Poker

ESPN7pm Live FA Cup Football 10pmBundesliga 11.45pmESPNKicksExtra 12am LiveNBA Basketball2.30am UFC Unleashed 3.30amPoker4.30am-5amTotalItalian Football

LIVING7pmCSI: Miami 8pmCriminalMinds 9pmMedium 10pm CSI:Crime Scene Investigation11pm CriminalMinds 12amCSI: Crime Scene Investigation

3amAmerica’s Next Top Model3.50amCharmed 4.40amCSI:Crime Scene Investigation5.30am-6amHome Shopping

BBC THREE7pm Doctor Who 8.30pm TheRealHustle: Celebrity Scammers9pmRussell Howard’s GoodNews 9.30pmComing of Age10pm EastEnders 10.30pmDon’t Tell the Bride 11.30pmFamily Guy 12.15am RussellHoward’s Good News 12.45amComing of Age 1.15am FreakLike Me 1.45amThe RealHustle: Celebrity Scammers2.15am Don’t Tell the Bride3.15amSecrets of the Universe4.15am-4.45amFreak Like Me

E46.55pm Hollyoaks 7.30pmFriends 9pmHow to Look GoodNaked 10pm Natalie Cassidy:Becoming Mum 11.05pmDesperate Housewives 12.05amScrubs 1.05amWhat About

Brian 1.45am Reno911! 2.10amNatalie Cassidy:Becoming Mum3.05am How to Look GoodNaked 4amSwitched 4.20amAccidentallyon Purpose4.45am-6amSwitched

HISTORY7pmHow the Earth Was Made8pmMaya: Rivals In the Jungle9pmBedlam 10pm KingArthur’s Round Table Revealed11pm World War Two LostFilms 1amMaya: Rivals In theJungle 2am Evolve 3amMegaDisasters 4am-5amAncientDiscoveries

DISCOVERY8pmHow Do They Do It?8.30pm How It’s Made 9pmLost Worlds with Les Stroud10pm I Shouldn’t Be Alive11pmTrawler Wars 12am DeadliestCatch 1amBear Grylls: BornSurvivor 2amChris Barrie’sMassive Machines 3amWorldWar Two: The Complete History

3.50amTreasure Quest4.40amDays That Shook theWorld 5.30am-6amHow DoesThat Work?

DISCOVERY HOME &

HEALTH7pm From Here to Maternity8pm 10 Years Younger 9pm 18Kids and Counting 10pm FiveUnder 5 11pm Saving Babies12am 18 Kids and Counting1amFive Under 5 2amSaving

Babies3am 10 Years Younger4amBringingHome the Babies5am-6am Test Tube Babies

SKY17.30pm The Middle 8pmOopsTV9pmHouse 10pm Thorne:Scaredy Cat 11pm StargateUniverse 12am Football’sGreatest 12.30am Road Wars2.15am Ross Kemp on Gangs3.05am Oops TV 3.30am Lost4.20am Sell Me the Answer5.10am-6amAre You SmarterThan a 10 Year Old?

BBC2 ITV1 CHANNEL4 CHANNEL5

S A T E L L I T E &

C A B L E

TVPICK6pm BBC News6.30pmBBC London News7pm The One Show7.30pm Helicopter Heroes; BBCNews; Regional News8pm EastEnders8.30pm QI9pm New Tricks10pm BBC News

10.25pm Regional News10.35pm The GrahamNorton Show11.20pm The National LotteryDraws 11.30pmFILM Eurotrip: 2004; Weatherview 1am Sign Zone:UnequalOpportunitieswith JohnHumphrys 2amMasterChef: TheProfessionals 3am Out of the FryingPan4amRestoration Roadshow4.30am-6am BBC News

6pm Eggheads6.30pmStrictlyCome Dancing– It Takes Two7pmThe Big Silence8pmMastermind8.30pm Gardeners’ World:9pmCHOICE DavidAttenborough’s First Life10pm The Stephen

K Amos Show10.30pm Newsnight11pm The Review Show;Weather11.50pm Later with JoolsHolland12.50amFILM Day of theDead: Horror sequel, starringLori Cardille. 1985.2.30am-6am Close

6pm London Tonight6.30pm ITV News7pm Emmerdale7.30pm Coronation Street8pmCheetah Kingdom8.30pm Coronation Street9pmCHOICEPaul O’Grady Live10pm ITV News at Ten

10.30pm London News10.35pmFILM The Hitcher:Premiere. Horror remake,starring Sean Bean. 2007.12.10am The Zone; ITV NewsHeadlines2.10amFILM The War Wagon:Western, starring John Wayneand Kirk Douglas. 1967. 3.55am-5.30am ITV Nightscreen

6pm The Simpsons6.30pmHollyoaks7pm Channel4 News7.25pm 4thought.tv7.30pm CHOICEUnreported World8pmCome Dine with Me9pm The Event10pm The Million

Pound Drop Live11.20pm Lee Mack Live12.25am Music on 4: Favourites:James Blunt 12.55amMusic on 4:On Track 1.10am Mesh 1.15amStudio 60 on the Sunset Strip2am ER 2.45am Brothers &Sisters3.30am Futurescape3.35am Futurescape 3.40amThis Week’s 4Music Top 205.30am-6.15am Countdown

6pm Home and Away6.25pm Live from Studio Five7pm Five News at 77.30pm Fifth Gear;Five News Update8pmWhite Van Man;Five News at 99pm The Mentalist:The detectives investigate the

death of a convict.10pm Law & Order:SpecialVictims Unit10.55pm CSI: Miami11.50pm Cops in Crisis12.10am SuperCasino4amMotorsport Mundial 4.25amBrian Sewell’s Grand Tour 5.10amMichaela’s Wild Challenge 5.35am-6amMichaela’s Wild Challenge

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22

12

7

13

5

33

34

9

8

22

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 Exhaled with force (4)

3 Ms George, who starredin Straw Dogs (5)

6 Actor, __ _ Baldwin,former husband of Kim Basinger (4)

7 Horse colouring (4)

9 Deadlock (9)

11 Painting, sculpture, etc (3)

12 Ricochet (7)

14 Tennis stroke (3)

16 First James Bondfilm in which PierceBrosnan starred (9)

18 ___ and ends (4)

19 Shout out (4)

20 Motif (5)

21 Hardy cabbage with

coarse curly leaves (4)

DOWN

1 Loose garmentworn by Muslimwomen (5)

2 Desire (4)

3 Plan for an activityor event (8)

4 Sat with one legeither side of (9)

5 Devoid of clothing (5)

8 Early form of sextant (9)

10 Atmosphere of anenvironment (8)

13 Broker (5)

15 Coat with fatduring cooking (5)

17 Yellow part of an egg (4)

The nine-letter words were

PUBLISHER and REPUBLISH

M

A

N

Y

HR

E

I

C

1 3 2 6 8 7 4 9

8 2 5 1 2 4 3 8

1 4 5 2 9 5

2 7 8 9 2 9

1 4 6 7 8 2 1 7

7 8 9 3 6

4 8 9 6 1 3 5 2

1 7 2 4 7 3

5 1 7 4 8 9

3 9 5 7 8 5 8 9

1 6 2 3 4 1 4 2

Lifestyle | TV& Games CITYA.M. 5 NOVEMBER 201034

8/8/2019 Cityam 2010-11-05


MARTIN JOHNSON gets the chance toshow how his England team have pro-gressed since their excellent 21-20 victory

over Australia in June, as the autumninternationals get underway tomorrow at Twickenham.

England face the toughest possibleopener against the All Blacks, who will

be seething after they managed to snatchdefeat from the jaws of victory againstthe Aussies last weekend. With their auraof invincibility shattered, some may say that this is as good a time as any to takeon New Zealand. Their quality should not

be overlooked as a result of a singledefeat, however.

Before last weekend, the All Blacks hadgone 15 games unbeaten and theirrecord against England is dispiriting forhome fans. They have won the last eighthead-to-heads, including four meetingsat Twickenham, by an average of 21.25points. Going on these results, it is astruggle to see the Red Rose getting the

better of the All Blacks, but from a punt-ing perspective I’m keen to take on the

visitors with a 12 point handicap at 10/11

with Paddy Power.Exactly how England will set out their

stall is under question, with conflictingsuggestions coming from different cor-ners of the camp this week. Johnson him-self has claimed that his side will go outall guns blazing and attempt to win thetry-count as well as the match, whiledefence coach Mike Ford has promised“old-fashioned rugby” and “one of the

best defensive performances ever”. Whichever way they attempt to stifle

New Zealand’s superiority, Johnno’s teamlooks well equipped to do so. Andrew Sheridan adds experience and power upfront, Courtney Lawes is a threat in thelineout and the backs are as comfortablerunning as they are defending. If England decide that kicking is theanswer, fly half Toby Flood appears to be

up to the challenge after he kicked all of Leicester’s 21 points in a flawless display on his most recent game for his club. The2/1 available on Betdaq for an Englandpenalty to put the first points on the

board is therefore good value.I am inclined to believe Johnson over

Ford and expect high-quality attackingrugby from both teams. The forecast isgood with little wind, and this all sug-gests that buying total points at 47 withSporting Index is the right call.

TOMORROW, 2.00PM, SKY SPORTS

NEW ZEALAND

ENGLAND

...thehomeof form

POINTERS...

England to win with 12pt start at 10/11with Paddy PowerFirst scoring play to be England penaltyat 2/1 on BetdaqBuy total points at 47 with Sporting Index

England can impress inInvestec Series opener

LIVERPOOL’s win at Bolton last weekendmeant that they notched back-to-back league victories for the first time this cam-paign. It seems that their season is now underway and Roy Hodgson will be hoping

things continue in this vein for a few weeksif he is to keep his job and Liverpool are tocarry on climbing the table.

They have lost just once at Anfield thisterm, but Chelsea will obviously prove thetoughest opposition they have faced so far.

The champions are five points clear at thetop of the table and did the double overLiverpool last season. However, their away record isn’t fantastic, having won only eight of their past 17 matches on the roadand five of their past 14 trips to middle-third sides. In fact, they have won just oneof their last six visits to such opposition.

The Reds have lost two of their past 16home games and only two of seven homematches against Big Four opposition since2008/09. They are undoubtedly a much bet-ter team on Merseyside, as they are diffi-cult to break down and the vociferous

Anfield crowd nearly always acts as a 12thman. Fernando Torres and Steven Gerrardare playing with more confidence and, ontheir day, are a match for any defence inthe world.

Carlo Ancelotti will recognise that this is

a potential banana skin fixture for his teamand it wouldn’t be a surprise to see himadopt ‘smash and grab’ tactics. That couldpave the way for a tight contest which real-ly wouldn’t be a major surprise seeing asthere have been two or fewer goals in thelast nine league meetings between theteams.

Bettorlogic.com’s analysis points toopposing Chelsea in this game, so I’d ratherlay them at 11/10 on Betdaq than back either the draw or Liverpool win. A singlegoal could settle this game, but I’ll stick tothe lay of the favourites, as well as selling

total goals at 2.4 with Sporting Index.

POINTERS...

Lay Chelsea at 11/10 on BetdaqSell total match goals at 2.4 with Sporting Index

THERE is only one point separatingBlackburn and Wigan towards the bottomof the table and both clubs will be prepar-ing themselves for another long, hard rel-egation struggle. This is far from the mostexciting fixture of the weekend, but that

doesn’t matter if a good bet can be found.Blackburn have been poor so far this

term, managing to beat just Everton andBlackpool. However, they were fairly unlucky against Chelsea last weekend andtheir home record against the lowerteams in the league is strong. They wonsix of their seven home matches against

bottom-seven finishers last season withfive of those victories coming by the half-time / full-time double result.

Wigan generally struggle on their trav-els, losing 15 of their past 22 away games,including 11 by the half-time / full-timeresult. In fact, five of their last six away defeats have come by the double resultand they have only taken one point from

five visits to Ewood Park since promotionto the Premier League in 2005.

Although Sam Allardyce’s side have not being playing particularly well this cam-paign, this is the type of game they often

win and I’ll be backing them at 5/6 withPaddy Power. The half-time / full-time dou-

ble result is 2/1 with 888sport and that isalso worth a small bet.

Spread bettors are advised to buy goalsat 2.5 with Sporting Index – there have

been three or more in nine of Wigan’s last13 away trips to bottom-half sides.

POINTERS...

Blackburn to win at 5/6 with Paddy Power

Blackburn / Blackburn at 2/1 with 888sportBuy total match goals at 2.5 with Sporting Index

SUNDAY, 4.00PM, SKY SPORTS

CHELSEA

LIVERPOOL

TOMORROW, 3.00PM

WIGAN

BLACKBURN

Punter | Sports

CITYA.M. 5 NOVEMBER 2010

P i c t u r e : G E T T Y

SPORT TRADER DAVID WILD LOOKS AT ENGLAND V NEW ZEALAND& BEN CLEMINSON PREVIEWS THE WEEKEND’S FOOTBALL

35

Sunday could be the day to take on Blues

8/8/2019 Cityam 2010-11-05


The amazing

Zenyatta cangive her fansanother dayto remember

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THE BEST BETS OVER THE WEEKEND

AFTER a disappointing week of tipping last week, I am deliber-ately not going to start chasingshort-priced horses in a desper-

ate attempt to claw my way back intothe winners’ enclosure. It’s Breeders’Cup weekend and the European trio of Midday, Workforce and Goldikova willall be sent off at skinny odds in pursuitof victory at Churchill Downs. Allthree are wonderful animals in theirown right, but there may be value inlooking elsewhere.

Let’s start with Workforce in tomor-row’s Breeders’ Cup Turf where SirMichael Stoute’s Derby and Arc hero isas short as 5/4 with Paddy Power.However, Arc winners have a terriblezero from nine record in this race andas the ground is plenty quick enoughfor him, he cannot be supported atthat price. His King George flop is stillfresh in my mind and I’ve a sneaky feeling he is at his best with plenty of cover in a decent sized f ield. Therefore,I’ll be supporting French raider BEHK-

ABAD to make up for his disappointingfourth place in the Arc and over-turnthe form with Workforce. I think he’ll

be far better suited by the smaller fieldand the 3/1 available with Ladbrokeslooks fair value.

It’s definitely harder to find a reasonto oppose French wonder mareGoldikova in her attempt to land theBreeders’ Cup Mile for the third yearrunning. She is currently trading at11/10 with Paddy Power and I find itimpossible to believe that she won’ttrade at a far bigger price in-play onBetdaq from her poor gate draw in 10of 11. That said, she was drawn 11 of 11last year, but she came from a mile

back that night and will probably haveto do the same thing again. The bend

comes up far quicker at ChurchillDowns than it does at Santa Anita,meaning she is likely to get shuffled

well back.

I’m interested in the Americantrained SIDNEY’S CANDY whoabsolutely bolted up on his first run ongrass at Del Mar back in August. I don’tthink I’ve ever seen a miler go off quicker and manage to keep up thegallop. He looks sure to be ridden thesame way tomorrow night and looks areal back to lay opportunity on Betdaq.He can currently be backed at 12/1 inplaces in the UK and will certainly start shorter on the US tote.

Midday gets her chance to land back-to-back Filly & Mare Turf races thisevening and could well be sent off odds-on. She will be very difficult to

beat, but unquestionably prefers softerground and even though she has wonon a fast surface, she doesn’t look as

well balanced on it. I also think thatthis year’s renewal is far stronger thatthe race she won 12 months ago andfor that reason I am going to opposeher. Japanese filly RED DESIRE hasplenty of form on fast ground and rana decent prep last month at Belmont.She is a terrific each-way bet at around6/1 as it would be a surprise if she did-n’t make the frame.

Finally, if you want to beat theprices, take the 5/2 available aboutZENYATTA landing the Classic. She islooking to land her 20th win from 20races and I’m sure she’ll start closer toeven money on the US tote. Finally, I’ll

be backing CROWN OF THORNS to landthe Dirt Mile at around 5/1. He failed

by a nose to land the Sprint last year,this is more like his trip and he looks

worthy of support even on his dirtdebut.

POINTERS...

RED DESIRE e/w 10.50pm Churchil l Downs (Fri)SIDNEY’S CANDY

e/w 8.40pm Churchill Downs (Sat)CROWN OF THORNS e/w9.20pm Churchill Downs (Sat)BEHKABAD 10.00pm Churchill Downs (Sat)ZENYATTA 10.45pm Churchill Downs (Sat)

The Punter | Racing CITYA.M. 5 NOVEMBER 2010

Picture: GETTY

36

ENGLAND versus New Zealand, plenty of beer and the Breeders’ Cup... it doesn’t getmuch better than that!

I’m surprised the bookies make AidanO’Brien’s Master of Hounds the 7/2 favouritefor the Breeders’ Cup Turf Juvenile as, apartfrom his good third in the Racing PostTrophy, he has done very little in his previousfour outings. I’m going to side with local run-ner BANNED (3% e/w) at 16/1 or better ashe seems to fit the bill. I reckon this son of Kitten’s Joy is still improving and should like

the fast ground.J.B.’S THUNDER (2% win) in the

Juvenile, is a half brother to DoncasterRover. This son of Thunder Gulch may welltry and lead from the gate and I have a feel-ing he’ll be difficult to pass in the straight.

GOLDIKOVA’S (5% win) draw in the Milelooks harsh, but she is good enough to over-come this set back. I have a suspicion thatBeethoven may be a surprise package at abig price, though.

I want Workforce to win the Turf, but I’ma bit unsure whether he is a betting proposi-tion. ZENYATTA (5% win) for the Classic at

5/2 with Ladbrokes is massive price, get inearly.

INSIDER t h e

8/8/2019 Cityam 2010-11-05


ENGLAND’S Paul Collingwood admitsenjoying seeing Australia toil in therun-up to the Ashes but is refusing togloat just yet.

The Aussies slipped to a sixth suc-

cessive defeat in all formats on Wednesday to Sri Lanka and have hadto deny suggestions of a rift between vice-captain Michael Clarke and bats-man Mike Hussey.

Yet, ahead of England’s own warm-up match against Western Australiatoday, Collingwood said: “Obviously

it’s a different team to the Test team.But let’s be honest, the more gamesthey lose the better it is for us. Themore games they do lose, confidencelevels may go down.

“But we’re not going to read toomuch into it. We’ve got to prepareourselves as a team to be in the best

frame of mind going into the Testmatches.”

Hussey, meanwhile, has rubbishedrumours of a dressing-room row withskipper in waiting Clarke.“There’s no problems whatsoever,” hesaid. “I have a very good relationshipactually with Michael Clarke.”

Sport37

CAN JOHNNO’S ENGLAND HALTTHE MIGHTY ALL BLACKS?FORMER ENGLAND STAR KYRANBRACKEN SMELLS AN UPSET: PAGE 39

SPORT | IN BRIEF

Westwood shows why he’s No1GOLF: World No1 Lee Westwood is oneshot off the pace after the first round of the HSBC Champions in Dubai.Westwood shot a six-under-par 66 andsaid: “It’s nice to go out there and showeveryone why I got to this level. Iputted really nicely.”

Massa willing to assist AlonsoFORMULA ONE: Felipe Massa says hewill help Ferrari team-mate FernandoAlonso win the title in Brazil on Sunday.Massa, driving in his home Grand Prix,said: “Taking points away from otherdrivers that are fighting for the title isimportant so I see myself [doing that].”

FOR the umpteenth time in hisLiverpool career Steven Gerrarddragged his side out of a major hole,as his second-half hat-trick put Napolito the sword at Anfield.

Manager Roy Hodgson had intend-ed to rest his skipper ahead of Sunday’s showdown with PremierLeague leaders Chelsea.

But with the Reds trailing toEzequiel Lavezzi’s first-half strike,Hodgson was left with no option butto summon Gerrard from the benchas the start of the second period.

And his main man delivered with adramatic hat-trick - all three goalscoming inside the final 14 minutes.

Hodgson said: “We showed anawful lot of character and determina-tion in the second half and it took

some Steven Gerrard magic. He wasthe catalyst.”

Gerrard, modest as ever, added:“Everyone played their part tonight.I’m sure I’ll get the headlines but itcertainly wasn’t just about me.

“We went a goal down and themanager asked me to come on andsee if I could help get the lads back in

it and thankfully it worked out.“Every one of the lads in the second

half was just fantastic.”

Gerrard rides

to the rescuefor Hodgson

ResultsFOOTBALL

UEFA EUROPA LEAGUE GROUP A

Juventus.......................(0) 0 SV Red Bull Salzburg.(0) 0Lech Poznan ................(1) 3 M an C it y.............................(0) 1

Injac 30 Adebayor 51Arboleda 86, Mozdzen 90 Att: 43,000

GROUP B

Bayer Leverkusen ..(0) 1 Aris Salonika...................(0) 0Rosenborg ...................(0) 1 Atletico Madrid.............(1) 2

GROUP C

AA Gent..........................(1) 3 Spo rt ing..............................(1) 1Levski Sofia .................(1) 2 Lill e..........................................(1) 2

GROUP D

Club Brugge................(0) 0 Dinamo Zagreb..............(0) 2PAOK Salonika..........(0) 1 Villarreal ............................(0) 0

GROUP E

BATE..................................(1) 3 F C Sher if f ...........................(1) 1Dynamo Kiev..............(0) 2 AZ............................................(0) 0

GROUP F

CSKA Moscow..........(0) 3 P alermo................................(1) 1Lausanne Sports......(1) 1 Sparta Prague.................(1) 3

GROUP G

AEK Athens.................(0) 1 Anderlecht .......................(0) 1Hajduk Split................(0) 2 Zenit St Petersburg ....(1) 3

GROUP H

Getafe .............................(0) 0 VfB Stuttgart ..................(1) 3Odense BK ....................(1) 2 Young Boys .......................(0) 0

GROUP K

Liverpool.......................(0) 3 N ap ol i....................................(1) 1Gerrard 75, 88 (pen), 89 Lavezzi 28;Att: 33,895Steaua Bucuresti.....(1) 3 FC Utrecht..........................(1) 1

GROUP J

PSG ...................................(0) 0 Borussia Dortmund....(0) 0Sevilla .............................(3) 4 Karpaty Lviv....................(0) 0

GROUP I

PSV....................................(2) 3 D ebrecen............................(0) 0Sampdoria...................(0) 0 FC Metalist Kharkiv...(0) 0

GROUP L

FC Porto..........................(1) 1 B es ikta s..............................(0) 1Rapid Vienna .............(0) 1 CSKA Sofia .......................(0) 2

SPORTS EDITOR FRANK DALLERES

email [email protected]

Collingwood won’t revel in Australia’s Ashes disarray

BY JAMES GOLDMAN

FOOTBALL▲

3

1

LIVERPOOL

NAPOLI

Steven Gerrardwas Liverpool’shero yet again

picture: GETTY

MANCHESTER CITY boss RobertoMancini bemoaned his side’s luckafter they slipped to a 3-1 defeat inPoland. City looked on course to end arun of two straight defeats, beforetwo goals in the last four minutesgave Lech Poznan the win. Mancinisaid: “If we played this game another100 times we would win 90 times.”

City slip to a thirdconsecutive defeat

BY FRANK DALLERES

CRICKET▲

8/8/2019 Cityam 2010-11-05


ENGLAND may be facing thetoughest possible start to theirautumn campaign but captainLewis Moody insists he feels

emboldened by the emergence of aclutch of youngsters he has ear-marked for greatness.

Moody could not have asked for

more daunting opposition than New Zealand, the world’s No1 ranked Testside, as he prepares to skipperEngland at Twickenham for the firsttime tomorrow.

But any trepidation the Bathflanker might secretly feel is tem-pered by his belief that England boasta core of youthful talent that hastransformed the squad dynamic overthe past year.

“When you play the best team inthe world, you are always underdogs

but I have a lot of confidence in thisteam and the guys within it,” saidMoody. “It is a really good group of lads we have got at the minute with[Ben] Youngs, [Courtney] Lawes, [Dan]Cole, [Chris] Ashton, [Ben] Foden.

They are playing some great rugby.“The environment in the England

camp has changed for the better inevery way in the last 12 months. Thisteam is going in the right directionand that has been boosted by somegood performances in recent games.

“We are in as good a place as wehave been in a long while. We got

that win in Australia and it is impor-tant to keep improving. I think thepotential of this team is huge, I really do. There is no reason this team can’tgo on and be together for a long peri-od of time and perform at levels weknow it can.”

England have not beaten the AllBlacks since 2003 and much has beenmade of their need to suppress theiropponents’ attacking power. Moody admits keeping New Zealand at bay

will be a priority but says he will not

allow it to become an obsession.“As a team you focus on your

defence – if you stop the oppositionscoring you know you will be in witha good chance of winning the game –

but you also score points and try notto be constrained when you go outthere,” he added.

New Zealand coach Graham Henry has made four changes to the sidenarrowly beaten by Australia last

weekend, their first defeat in 16 Tests.League convert Sonny Bill Williams isset to make his debut at outside cen-tre, while Alby Mathewson, Hosea

Gear and Sam Whitelock are theother changes.

Moody: Young starswon’t be intimidated

Sport | Rugby Union | England face All Blacks38 CITYA.M. 5 NOVEMBER 2010

Skipper predicts England’s crop of exciting talent are ready todeliver great things ahead of All Black Test, says Frank Dalleres

ENGLAND

NEW ZEALAND

8/8/2019 Cityam 2010-11-05


Sport | Rugby Union | England face All Blacks 39CITYA.M. 5 NOVEMBER 2010

I WATCHED Australia beat New Zealand last week by challeng-ing them with the ball in handand I think England ought to

play in that vein tomorrow, as they did when they beat the Wallabies

in June.One area England could target isthe All Blacks’ new centre combina-tion of debutant Sonny Bill

Williams and Ma’a Nonu. They will be strong but may not have thatunderstanding that comes fromplaying together, and that couldperhaps be exploited.

Saying that, I would not be sur-prised if England had concentratedon defence and the need to stopNonu and key runners in the pack.New Zealand are full of capable fin-ishers, but England can go into thegame with belief.

CONFIDENCE

England’s last game ended in a win, so they must take confidencefrom that. They have only madeone change to the team, and that,the return of Andrew Sheridan, is

one that makes the pack stronger.Lewis Moody, ably supported by

his pack, faces a key battle withRichie McCaw, and hopefully that isone area England can get parity and perhaps put the All Blacks onthe back foot.

Chris Ashton and Ben Foden are both set to feature for England, which means they won’t be in theNorthampton side we face onSunday in the LV= Cup. Naturally Saints will miss those explosive andelusive backs and we don’t know

what team they will put out, butthey are flying high and I can’t seethem changing too much.

COMMITTED

We at Saracens will be without theinjured Brad Barritt but I gather his

injury is not as bad as was firstthought, so he could be back in

three weeks. Gavin Henson is alsotraining with us now, and he seemsto be enjoying being back in theteam environment. Gavin has astrong vision, wish and belief thathe can make the World Cup; that

will take a very committed personand hopefully Saracens will reapthe rewards.

We’re confident we can respondto last week’s defeat to Exeter.

There’s a different focus this week-end but overall we’re in thePremiership’s top four and hopefulof staying there. Richard Hill is a former England international and a coach at Saracens, who play USA Eagles at the Honourable Artillery Company grounds on Tuesday

9 November at 2pm. Tickets start at £30and are available on 01727 792 800.

AUSSIES SHOWED WAY

TO BEAT NEW ZEALAND

RUGBY UNION COMMENT

RICHARD HILL

BRACKEN’S KEY CLASHES

SHONTAYNE HAPE V MA’A NONUNonu is playing fantastic rugby and weall know what he can do. Hape is not asbig but quite nimble and, being Maori,knows more about New Zealand thanmost. The adopted Englishman needs

the biggest game of his life, must defendextremely aggressively and has to get

over the advantage line.

ANDREW SHERIDAN v OWEN FRANKSSheridan has been missed. He’s extreme-

ly strong and aggressive, traits Englandneed as whenever they’ve won impor-tant games it’s been through frustratingteams at the breakdown and scrum. It’sa battle of front rows more than props,but without him New Zealand had theedge – now we have a bit more power.

FORMER England scrum-half Kyran Bracken explains that while half-backs are important, tomorrow’s clash will depend onscrum dominance, Lewis Moody’s bulldog qualities and Shontayne Hape’s performance at centre.

VERDICT: The odds may be against England

but I fancy cleaning up so I’m backing them

15 Ben Foden 93kg14 Mark Cueto 94kg13 MikeTindall 102kg12 Shontayne Hape 102kg11 Chris Ashton 92kg10 Toby Flood 93kg9 Ben Youngs 92kg

8 Nick Easter 114kg7 Lewis Moody 104kg6 Tom Croft 105kg5 Tom Palmer 115kg4 Courtney Lawes 114kg3 Dan Cole 118kg2 Steve Thompson 119kg1 Andrew Sheridan 123kg

Total weight: 1,580kg

WEIGH-IN | ENGLAND

15 Mils Muliaina 92kg14 Joe Rokocoko 98kg13 Sonny Bill Williams 98kg12 Ma’a Nonu 104kg11 Hosea Gear 100kg10 Dan Carter 94kg9 Alby Mathewson 88kg

8 Kieran Read 105kg7 Richie McCaw 106kg6 Jerome Kaino 105kg5 Sam Whitelock 102kg4 Brad Thorn 116kg3 Owen Franks 117kg2 Keven Mealamu 106kg1 Tony Woodcock 118kg

Total weight: 1,549kg

WEIGH-IN | NEW ZEALAND

Moody is set to captain England at home for the first time tomorrow.

Picture: GETTY

Chris Ashton will be in action for England but not Saints. Picture:REUTERS

@ @MORE NEWSONLINEwww.cityam.com @

LEWIS MOODY v RICHIE MCCAW

Probably the biggest heart in the worldagainst the planet’s finest player. Thebreakdown will be vital if England are towin and both flankers are so importantat stopping the opposition. McCaw may

be the more talented – his timing isimpeccable – but Moody makes up for it

with unsung work all over the pitch.

Kyran is hosting a rugby business breakfast on 2ndDecember themed ‘Managing Change’ where he willbe in conversation with England captain Lewis Moody;www.gameplansolutions.co.uk

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cityam 2010-11-05

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