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Riots spread north asLondon clamps down

DISORDER and rioting spread to sever-al cities across the country last night while Scotland Yard put London intolockdown, trebling the number of police on the streets and promising

tough law enforcement, including thepossible use of plastic bullets, to tack-le violence.

Although London appeared to bemore peaceful than the three previ-ous nights, sporadic rioting and loot-ing flared up in Manchester and otherregions including the West Midlands.

Hundreds of masked youthsswarmed through Manchester’s city centre yesterday, ransacking shopsand setting fire to a Miss Selfridge

“There is no sense of injustice orany spark that has led to this,” assis-tant chief constable Garry Shewan of Greater Manchester said. “It is, pureand simple, acts of criminal behav-iour which are the worst I have seenon this scale.”

There were also attacks in the

Midlands, including Nottingham where a police station was fire- bombed by a gang of up to 40 men,police said. Around 80 people werearrested in the city during yesterday’sunrest.

In London many areas saw officesclose early and shop-keepers board uptheir fronts while theatres cancelledperformances.

It also emerged yesterday that Mark Duggan, whose death sparked

BY KASMIRA JEFFORD

RIOTS▲

A policeman patrols in Birmingham as the unrest spreads Picture: REUTERS

THE FEDERAL Reserve last nightpledged to keep US interest rates attheir “exceptionally low levels” untilat least mid-2013, in a bid to stimulatethe ailing US recovery.

Yet three dissenters broke ranks

from chairman Ben Bernanke (pic-tured) and his senior colleagues on theFederal Open Market Committee.

Richard Fisher, NarayanaKocherlakota, and Charles Plosserrebelled against the statement, break-ing from the Fed’s convention of list-ing no more than one dissentingname.

The news came on the day thatstocks pared some of the painful lossesover the past week.

The Dow Jones industrial averageand S&P 500 rose 3.98 per cent and4.74 per cent respectively, despite tank-ing by over one per cent as the Fed

released its statement. The statement included adevastatingly downbeat verdicton the American recovery,describing economic condi-tions as “slower”, “flattened”,“depressed” and “weak” – yetdid not signal the start of another round of quan-titative easing.

The Dow is still over12 per cent down from

faltering growth as well as the recentdowngrade of the US economy by rat-ings agency S&P.

The dollar plunged as low as 0.706against the Swiss franc, falling morethan five per cent during the day.

The Fed’s gloomy statement turnsattention to the Bank of England’s lat-est Inflation Report, which will be

released this morning and could beused by Bank governor Mervyn King tosupport his own stance on keepinginterest rates at historically low levels.

King has led the Bank’s dovishcharge despite concerns about risinginflation. The consumer price indexhas consistently surpassed the two percent target.

World markets have plummeted inrecent days on concerns of falteringgrowth in a batch of economies as wellas on debt concerns within theEurozone.

The Bank forecast growth for this year of around 1.75 per cent in May’s

report -- yet economists now see theUK expanding by just 1.3 per cent,according to figures compiled by the Treasury.

The FTSE plummeted below the5,000 mark yesterday as the

sell-off continuedearly on, yet laterrecovered confi-dently to 5,164points.

Back in the US,

unanimous, with three dissentersrefusing to support the statement. The three voted to maintain the stancethat accommodative rates should only be pledged “for an extended period”.

Their opposition suggests resistanceon the committee to a third period of quantitative easing, dubbed “QE3”.

The statement hinted at the possibil-

ity of QE3 to come, alluding to “therange of policy tools available to pro-mote a stronger economic recovery ina context of price stability”. The com-mittee “is prepared to employ thesetools as appropriate,” it said.

The text “sounds very similar” toFed statements in the build up to QE2,

noted Paul Dales of Capital Economics.However, “the rebound in core infla-tion means that the hurdles for QE3are higher than for QE2, particularly when the Fed is unusually divided,”Dales added.

Gold futures soared to a record$1,743 an ounce following the state-ment, adding nearly $30 to their pre-statement levels.

Yields on 10-year US government bonds sank as low as 2.03 per cent

FED AT WAROVER FRESH

STIMULUSBY JULIAN HARRIS AND DAVID HELLIER

WORLD ECONOMY▲

Bank of England chief Mervyn King will todaypresent its InflationReport, expected todowngrade UK growth

www.cityam.com FREE

BUSINESS WITH PERSONALITYIssue 1,443 Wednesday 10 August 2011

8/6/2019 Cityam 2011-08-10


Lawless London2 CITYA.M. 10 AUGUST 2011

Politicians fly hometo a Britain in crisisPOLITICIANS were last night travelling

back from their summer holidays,after the Prime Minister announced

he would recall parliament inresponse to the London riots.David Cameron, who himself only

returned to Britain in the early hoursof yesterday morning, said he wasrecalling MPs so they could “standtogether in condemnation of thesecrimes”.

He is not expected to table any emergency legislation, althoughsources said he could take drastic stepssuch as deploying the armed forces

Chancellor George Osborne was alsoflying back from his vacation in Los

short on the grounds he would not“let criminals set the agenda”, was

back in the capital yesterday to facethe wrath of angry residents.

He was heckled by a crowd inBattersea while on a walkabout to

assess the damage, with one residentshouting: “You should have been herethree days ago”. Nick Clegg, thedeputy Prime Minister, was also booedat an event in Birmingham.

Meanwhile, the Prime Ministercalled for “more robust police action”in response to the lawlessness plagu-ing London.

The Met said 16,000 police officers were “on duty” last night – comparedto 6,000 on Monday – after it cancelled

BYDAVID CROW

POLITICS▲

Britain’s in crisis:the real causes of chaos on streets

FEAR. Debilitating, widespreadfear. The country held to ransom

by feckless youths. Thousands of shocked Londoners cowering in

their homes, with many shops, banksand offices shutting early. I cannotremember anything like it; the atroci-ties of the 7/7 terror attacks, the shock from 9/11 and the IRA’s repeated ter-

rorist attacks had a chilling, devastat-ing effect on the capital but it feltdifferent this time. Usually peacefulsuburbs were under siege; meanwhile,there was increasing violence in othertowns. The government belatedly appeared to regain control in London

but the electorate’s trust that the cav-alry would show up if they call 999 has

been shattered. It no longer feels as if we live in a civilised country.

The cause of the riots is the looters;opportunistic, greedy, arrogant andamoral young criminals who believethat they have the right to steal, burnand destroy other people’s property.

There were no extenuating circum-stances, no excuses. The context wastwo-fold: first, decades of failed social,educational, family and microeconom-ic policies, which means that a largechunk of the UK has become alienatedfrom mainstream society, culturally impoverished, bereft of role models,permanently workless and trappedand dependent on welfare or the shad-ow economy. For this the establish-ment and the dominant politically correct ideology are to blame: they deemed it acceptable to permanently

EDITOR’S LETTER

ALLISTER HEATH

4th Floor, 33 Queen Street, London, EC4R 1BRTel: 020 3201 8900 Fax: 020 7283 5334Email: [email protected] www.cityam.com

EditorialEditor Allister HeathDeputy Editor David HellierNews Editor David CrowActing Night Editor Marion Dakers

chuck welfare money at sink estates,claiming victory over material poverty,regardless of the wider consequences,in return for acquiring a clean con-science. The second was a failure of

policing and criminal justice, exacer- bated by an ultra-soft reaction to riotsover the past year involving attacks on

banks, shops, the Tory party HQ and soon, as well as an official policy to shutprisons and reduce sentences.Criminals need to fear the possibility and consequence of arrest; if they donot, they suddenly realise that theemperor has no clothes. At somepoint, something was bound to hap-pen to trigger both these forces and forconsumerist thugs to let themselvesloose on innocent bystanders.

But while all three main parties areresponsible for flawed policies that

have fuelled this growing underclassat a time of national prosperity – 5.5m-6m adults now on out of work bene-fits, a number that has been roughly constant for over two decades – theargument made by some that the riots

were “caused” or “provoked” by cuts,university fees or unemployment is

wrong-headed. Just because someoneis in personal trouble doesn’t givethem the right to rob, attacks or riot.

In any case, the state will spend 50.1per cent of GDP this year; state spend-ing has still been rising by 2 per cent

year on year in cash terms. It has never been as high as it is today – in fact, it is

squeezing out private sector growthand hence reducing opportunities and jobs. Many of the vandals were schoolchildren not yet in the labour market;unemployment is a tragedy that must

be fought but 9, 10 or 14 year olds can’t be pillaging because of it. Equally trag-ically, most of the older rioters wouldnever have any hope of going to univer-sity, regardless of cost, such is theireducational poverty.

What they wanted is free money and free goods and so they helpedthemselves. They were driven by greed,a culture of entitlement, of rights

without responsibility, combined with

a complete detachment from tradi-tional morality, generalised teenageanger and a sense that anything goesin the current climate. This wasn’t apolitical protest, it was thievery. It istrue, however, that proper welfare,educational and economic reformsmay cost money short term; and of course the coalition’s desire to protectso many departments, its failure toroot out waste, its refusal to broadenthe sources of financing of public serv-

Osborne has broken off his US vacation Picture: Coleman-Rayner

Clear Diamonds Global AttachmentClear Diamonds Global Attachment Local LONDONMANCHESTER

In Birmingham, police struggledto contain a string of looting andviolent incidents across the city Pictures: REUTERS & GETTY

Manchesterpolice faceddown thievesand thugs inthe city centre

Picture:GETTY

Clear Diamonds Global Attachment LocalBIRMINGHAM

8/6/2019 Cityam 2011-08-10


BLACKBERRY-maker RIM yesterday faced calls to disable its Messengerservice as the role of technology andsocial media in the riots continued tocome under scrutiny.

Tottenham MP David Lammy saidBlackBerry Messenger (BBM) is “oneof reasons why unsophisticated crim-inals are outfoxing an otherwisesophisticated police force”.

The service, which is popular withteenagers, can be used by groups but

is not as easy to track as networkssuch as Twitter or Facebook.

RIM said it is “co-operating fully with the Home Office and policeforces” but did not block access.

The company also found itself vic-tim of hackers, furious that it was

working with police. Its website was vandalised with a message: “If youassist the police… you will regret it.

We have access to your database, which includes your employees infor-mation [and] will pass it onto rioters.”

Meanwhile, a 22-year-old wasarrested yesterday for inciting public

disorder after allegedly setting up aFacebook page encouraging people toriot in Warrington, with police say-ing they will take action against any-one found using social networks toincite violence.

Police forces also began to usesocial media to fight back againstrioters, uploading images of suspect-ed troublemakers onto a Flickr photogallery and appealing for informa-tion through Twitter.

Communities also used Twitter toset up riot clean-up groups, using thehashtag #riotcleanup.

BY STEVE DINNEEN

LONDON RIOTS▲

RIM faces calls to ban Messenger as

social media comes under scrutiny

Lawless LondonCITYA.M. 10 AUGUST 2011 3

CITY VIEWS: SHOULD BBM BE SHUT DOWN? Interviews by Phoebe Torrance & Helen Thompson

“I don't think that shutting them downis the right solution. It would not preventkids doing silly things. In a democracy it

would be bad precedent and breachfreedom of speech.”

CHE SIDANIUS | BANK OF ENGLAND

“It would be an infringement on every-one’s civil liberties to shut the socialmedia sites down. To be honest I don't

think censorship would the solve prob-lem anyway.”

“No, only a small percentage are using it to publicise the rioting, so therefore shutting it down wouldnot have a very big impact on what is really going on.”

LIAM TUCKER | CHAUCER

Londoners came together to clear up the mess created by riots, yesterday, such as one group of residents in Hackney (above). Fires had devastated buildings thoughout the city,destroying premises near Reeves Corner in Croydon (left) and leaving the Fire Brigade toextinguish the flames throughout yesterday (below). Pictures: PA, REX

* These views are those of the individuals above and not necessarily those of their company.

CHRIS SEVENOAKS | EMERALD

Local Attachment Checked Out Status Name Pub Date

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BANKS in Europe appear increasingly reluctant to lend to one another, dan-gerously mirroring scenes last wit-nessed in the credit crisis of 2008.

So far the strains have been morepronounced in Europe rather thanthe dollar market, with EURIBOR interbank lending spreads overovernight index swaps having widened to post-financial crisis levelsand more banks stashing funds withthe European Central Bank (ECB).

The typical barometers of dollarfunding -- FRA-OIS spreads, frontEurodollar futures and two-year swapspreads -- showed some deteriorationduring the worst of the stock marketrout but recovered as equitiesrebounded.

“What we are seeing right now isthe typical sort of funding concernstory that is playing out in the money

markets,” said Michael Turner, afixed-income and currency strategistat RBC Capital Markets in Sydney.

“Compared to what happened back in 2008, we are not at those very extreme levels but we have to watchthe direction. The general advice toclients is to keep things tight andkeep risk to the minimum for thetime being,” Turner said.

Cash is not circulating in a regularfashion in the Eurozone as jittersabout the debt crisis grow.

Banks deposited €145bn at the ECBovernight on Monday, a one-yearhigh, figures showed yesterday.

Evidence of money market ten-sions has been widespread. Bankstook a larger-than-expected €157bn inthe ECB’s handout of seven-day fund-ing yesterday.

The EURIBOR rate itself came downslightly yesterday, as the ECB said it was actively purchasing Italian andSpanish bonds.

Lending driesup betweenEuro’s banks

The UK’s top share index the FTSE 100 bounced off 13-month lows yesterday ahead of the US Fed’s announcement, which dealers hoped would calmnerves over global debt and growthproblems.

The UK benchmark index rose 95.97points, or 1.9 per cent, to 5,164.92,snapping a losing streak that has

stretched back over the last seven trad-ing sessions. At one point in the morn-ing the index fell below 5,000 for thefirst time since September 2009.

The violent swings suggestedinvestors remain wary against anuncertain economic backdrop.

“It is important not to get too excit-ed by the gains on the FTSE however,” warned Joshua Raymond of City Index.

“In the last two weeks the UK index

has lost a massive 20 per cent to theselows. There has been no swift changein market sentiment from negative topositive,” he said.

The volatility was echoed in the USmarkets, which swung back and forthseveral times during Fed chairmanBen Bernanke’s speech.

The CBOE Volatility Index, alsoknown as the VIX, fell 14 per cent yes-terday, but it was still up more than 60per cent so far this month.

UK shares rally after falling

below the crucial 5,000 level

BYHARRY BANKS

EUROZONE ECONOMY▲

BYDAVID HELLIER

STOCK MARKETS▲

News 5CITYA.M. 10 AUGUST 2011

How well have British politiciansdealt with the riots in London?

Apply to join today at www.cityam.com/panel

This week, we’re asking members of our Voice of the City panel to ratethe performances of Prime MinisterDavid Cameron and London MayorBoris Johnson with regard to theLondon riots. We also want to knowhow well George Osborne has dealtwith the crisis that has engulfedworld financial markets for the bestpart of a week.

We’ll also be asking whether, in

light of the London riots, the govern-ment should review its plans to cutthe Metropolitan Police budget.

Meanwhile, we want to know howdisruptive readers feel the riots havebeen, and to what degree they havedamaged London’s global image.

To answer these questions andothers like them, apply to join thepanel by 12pm today atwww.cityam.com/panel

PoliticsHome.comPoliticsHome.com

In association withPoliticsHome.com

In partnership with

WHAT THE OTHER PAPERS SAY THIS MORNING

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CRASHING equity prices over the pasttwo weeks have caused fund managersto re-enter the market as bargainhunters, it emerged yesterday.

Markets rallied after six sessions of selling amid signs investors were tak-ing advantage of ultra-low prices.

Multi-asset fund managers atFidelity, Schroders and BlackRock saida return to the markets made senseafter the FTSE 100 dropped 20 per centin two weeks.

“The recent market turbulence hasleft some assets looking quite cheap,”said Johanna Kyrklund, Schroders’head of multi-asset investments. “Inthe short term, we think there areopportunities.”

BlackRock investment strategist James Holt said he was investing his

profit from gold and bonds in equities.“As the market goes lower, we will

be nibbling into the market each day.Our bonds and gold holdings will bedoing well, but when we are rebalanc-ing, we will be rebalancing into equi-ties,” he said.

Fidelity’s head of multi-asset funds Trevor Greetham said dividend yields“compared favourably with theincome available on the government

bonds to which nervous investors areflocking.”

But Paul Duncombe, Schroders’head of multi-asset investment solu-tions, said gold “remains a valuablediversifier in our portfolios”.

“Equities have sold off heavily andlook attractive on a valuation basis,”he said, “but we believe there are stilltoo many risks out there to be makingmajor shifts from safe haven assets torisky assets at this point in time.”

Fund managers

eye bargains asstocks stay lowBYALISON LOCK

CAPITAL MARKETS▲


Healthy corporates make a good buyIT was heartening to see the FTSE 100close in the black yesterday, in thefirst sign that investors are startingto return their focus to market fun-damentals after the panic selling of recent sessions.

The past two weeks have cut thelevel of the FTSE 100 by a fifth andmany of its constituents are downmore than that, as investors haveploughed their money into bondsand highly-priced gold.

High time, then, that savvy fundmanagers say they are starting toreturn to equities to snap up wellcapitalised, strongly growing compa-nies that yield high dividends.

As Fidelity said yesterday, price toearnings ratios were looking low

before the latest sell-off. The slumpof the past few days, combined withhefty profit rises since the start of the year, means many FTSE 100stocks now boast p/e ratios of lessthan half their 20-year averages.

FTSE 100 company earnings pershare have jumped 27 per cent sincethe start of the year. From insurers tohotel operators, property developersto telecoms providers, firms havestormed ahead, despite fears overglobal growth. They are cash rich,growing without using debt, andsnapping up rivals.

Dividend yields are also high, asshareholders press boards to eitheruse or return the cash piles they have accumulated.

There are still plenty of risks to thedownside, as Europe and the USproblems are far from resolved. Butfund managers say the market haspriced in much of the bad news now,

while gold’s high price makes it atough buy. While nobody is abandon-ing safe havens yet, now could beright to buy.

BOTTOMLINEAnalysis by Alison Lock

8/6/2019 Cityam 2011-08-10


Trade gap grows asmanufacturing dips

RIOTS across London and other UK cities over the past four days caused“well over £100m” of damage toproperty and businesses, the insur-ance industry said yesterday.

As residents and business ownersacross the capital and cities such asBirmingham, Leeds andNottingham counted the cost of days of wrecking and looting, insur-ers raised their estimates for thetotal cost of the damage.

The Association of BritishInsurers initially said the cost of the

riots to insurance companies wouldreach “at least tens of millions” of pounds, but after a day of claimscalls into its member companies itraised the total by a factor of ten.

“It is too early for us to have anaccurate picture of total costs, espe-cially business interruption costs,

but insurers are expecting signifi-cant losses,” said the ABI’s directorof general protection and healthNick Starling.

Insurers must bear the full cost of the claims unless the governmentdesignates the violence sinceSaturday as a “civil unrest” under

the Riot Act, in which case they canclaim back the cost of most claimsfrom a public fund.

Commercial UK insurers such as Aviva and RSA, which cover cars,homes and business properties, will

bear the brunt of claims, which willcover fire, looting or damage tohomes and cars.

Neither firm would comment onthe level of claims received so far.

Starling said business insurancepolicies should cover damage topremises but may also cover inter-ruption to business as a result of ongoing violence.

Riot and looting damage will costUK well over £100m, insurers say

INSURANCE▲

News8 CITYA.M. 10 AUGUST 2011

LONDON: CLOSED FOR BUSINESS

l Shops on St Johns Road, Clapham, in the aftermathof rioting overnight on Monday Picture: Rex

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o-toilo-

SCORES of shops across London wereclosed for business yesterday as thethreat of rioting and looting remainedhigh, and home secretary Theresa May met with industry leaders in an attemptto reassure them that extra efforts were

being made to protect retailers.May met with business chiefs yester-

day afternoon – including the BritishRetail Consortium (BRC) and the

Association of Convenience Stores(ACS) – to answer their concerns after athird night of looting and vandalismacross the capital.

Last night, grocer Sainsbury’s said ithad closed most of its stores within theM25 by 6pm “as a result of policeadvice”. Sixteen of the company’s shopsexperienced serious incidents duringthe disturbances on Monday night andseveral remained closed yesterday.

Tesco also confirmed a number of stores had been affected, and the ASCsaid that 93 of its members had beenhit, either in direct attacks or because

wholesalers could not get deliveriesthrough.

Staff at Sony were still unable yester-day to enter the company’s CD and DVDdistribution centre in Enfield that wasdestroyed in an arson attack overnight

on Monday.Even businesses in the City – which

has been untouched by the riots so far – were taking precautionary measureslast night, as several stores in the OneNew Change centre told City A.M. they

were closing early and sending staff home.

The City of London said there was noneed at present to close anything early.

“But we’re taking proper measures,”said a spokesman. Asked why the City had so far been unscathed by the riots,he said: “We’ve got our own police forceand the area inside the City is the mostCCTV’d environment in the world.”

A BRC spokesman said the emergency

meeting with the home secretary hadaddressed all the points it raised, withreassurance that extra policing was inplace and those arrested would bedetained rather than bailed.

But the spokesman added: “Whatmatters is action to ensure that actually happens, and we get the right results”.

Meanwhile, economists painted adownbeat picture of the effect that theriots could have on the struggling UK economy.

“The downside of the riots is thatpeople may be deterred from coming toLondon, so they could be bad for retailsales,” IHS Global Insight’s chief econo-mist Howard Archer told City A.M.

BY ELIZABETH FOURNIER

LONDON RIOTS▲

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OIL giant BP has launched a case with the Stockholm court of arbitra-tion against one of the shareholdersin its Anglo-Russian TNK-BP joint ven-ture, echoing the two sides’ tussleover Rosneft earlier in the year.

BP filed a claim last week against

Renova, part of the Alfa-Access-Renova (AAR) consortium that con-trols half of TNK-BP, for violating an

existing shareholders’ agreement by operating independent gas and fuelfirms in Russia and Ukraine.

A spokesperson for Renova told aRussian newspaper yesterday thatthe group denied it had violated thepact, but confirmed that BP was seek-ing arbitration.

The latest dispute is part of a long-running conflict between BP and the

Russian billionaire investors in the TNK-BP joint venture, who in January claimed BP had breached its own

shareholder agreement in their pur-suit of the Russian state oil firmRosneft. The $10bn share swap agree-ment later collapsed.

BP declined to comment due to theconfidential nature of the arbitra-tion process. Renova was unavailablefor comment.

• BP’s $7.2bn (£4.4bn) purchase of 21 oil and gas exploration blocks

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spat with AAR partnersBYKASMIRA JEFFORD

ENERGY▲


HSBC yesterday said it was in talksto sell its US credit card and retailservices business, to a buyer believed to be Capital One.

HSBC had flagged the sale of the business since May, when chief executive Stuart Gulliverannounced a $3.5bn (£2.1bn) global

cost cutting programme.Sources close to Capital One said

the two sides are nearing a deal

that would transfer HSBC’s $30bncards business over to the US lender.

The cards division made a pre-taxprofit of $306m in the first quarterof 2011, down 15 per cent on thesame period in 2010.

“HSBC confirms that it is in dis-cussions regarding a possible sale of the business. These discussions areongoing and no decision has yet

been made to proceed with any transaction,” HSBC said in a state-ment yesterday.

HSBC kicks off talks over

sale of US cards business

HSBC chief executive Stuart Gulliver is selling the firm’s card division Picture: REUTERS

BYALISON LOCK

BANKING▲

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INTERCONTINENTAL Hotels Group yesterday gave an upbeat half-yearly update as online booking and thereturn of the business travellerhelped improve earnings.

The world’s biggest hotelier beathalf-year earnings forecasts with a 23per cent rise in profit.

The group, which owns the Holiday Inn, Crowne Plaza andInterContinental brands, also saw stronger bookings and room rates inthe US, which accounts for aroundtwo-thirds of group profit, while itreported strong growth in China.

IHG chief executive RichardSolomons, who took over from for-mer boss Andrew Cosslett in July, saidthat in the full year £100m of sales on Apps would have been made.

“People are booking on Apps at thelast minute and this is helping our business. We are trading well in diffi-cult times,” the f irm said.

First half operating profit hit

$269m (£164m) compared to a compa-ny-compiled consensus of $256m,

while half-year sales rose 10 per centto $850m.

The half-year dividend rose 25 percent to 16 cents. The group said first-half global revenue per availableroom (RevPAR), a key industry meas-ure, grew 6.7 per cent, with an 8.2 percent rise in the United States, whileglobal RevPAR rose 5.6 per cent in July.

The company, which has recently completed an overhaul of its Holiday Inn brand, said it was now targetingchanges at its Crown Plaza branches.

Up to 40 will close, and company chiefs are now hammering out

details of how to breathe new life intothe rest of the hotels. IHG, which ispinning its growth hopes predomi-nantly in India and China, said thatevents in the Middle East, Japan andNew Zealand hit profits by $7m.

On the crisis in global markets,Solomons said: “People need certain-ty and governments need to act toprovide that.”

IHG beats its

forecasts asrevenue riseBY JOHN DUNNE

LEISURE▲


DAWSON HIT BY CASHMERE COSTS

DAWSON International yesterday warned that rising raw material prices are reducing its margins – particularly in its US knitwear businesses. Dawson’s results for the 15months to 2 April showed sales of £1.6m compared with £2.6m in the same period last year and an operating loss of £1.7m compared with £1.5m.

BAKERY chain Greggs has seen salesgrowth slow after a “challenging”first half, it said yesterday. The baker,known for its sausage rolls and steak bakes, recorded sales growth of just0.4 per cent in the 26 weeks to 2 July,down from 0.8 per cent in the first 18 weeks of the year.

But total sales jumped 4.2 per centto £335m on the same period last year, while pre-tax profit for the first26 weeks of the year rose to £24.71m,

up 33.1 per cent from £18.57m.

Greggs salesgrowth slowsRETAIL▲

YOUNG & Co is to quit brewing beerafter 180 years. It said yesterday it would sell it 40 per cent stake in the

Wells & Young’s Brewing Company toCharles Wells. The deal is worth£15m, to be paid in two instalmentsin February 2013 and February 2014.

Young’s said it would now concen-trate on managing its pubs business, which is focused in London and thesouth-east. A supply arrangement willensure that the beers are still servedin Young’s pubs.

Young’s stopsbrewing beerCONSUMER▲

8/6/2019 Cityam 2011-08-10


DETAILED plans on how banks should wind themselves up or change shapeto stay afloat in a crisis were set out by the City regulator yesterday.

The Financial Services Authority ismaking all UK banks draw up two “liv-ing wills” by the end of 2012 to cope with future shocks, though it expectsthe biggest to have such plans in place by the end of next June.

Recovery plans, to stabilise bankssuffering extreme shocks shouldinclude radical strategies banks wouldnot normally consider, such as sellingall or parts of the group; cancelling

dividends and bonuses; and raisingemergency equity or debt exchanges,the FSA said.

Plans to wind up a failing bank should make sure critical economicfunctions continue or are resolved, while non-critical ones fail safely.

CMS Cameron McKenna partnerSimon Morris said the FSA had leftthe door open to forcing banks to

commit to dropping risky lines of business in their recovery plans.

“We can expect it to be flexing its judgmental muscle over the comingmonths as it requires banks to jettisonfinancing or trading activities thatmight hinder rapid recovery in trou- bled times,” he said.

The proposed resolution rules alsomeans the FSA could force banks to break up in the space of a weekendshould another crisis happen.

“The FSA will have the power torequire a bank change the way it oper-ates here and now to remove potentialobstacles to rapid resolution,” Morrissaid.

The British Bankers Association said

it was “crucial” the FSA got the regula-tion right. “We will be reviewing theFSA’s proposals closely to ensure they would be effective and they wouldalign with international regulatory reforms,” it said.

The FSA’s rules will cover all banksholding more than £15bn in assets,and be imposed on top of Europe-wideresolution rules.

FSA sets outrules on bankliving willsBYALISON LOCK

REGULATION▲


DENMARK’S biggest lender DanskeBank took a 4bn crown (£472m) hitfrom Irish bad debts in the first half of the year and said the country remained a challenge, although itshome market stabilised.

Danske, which owns National IrishBank and Northern Bank, said its sec-ond-quarter pre-tax profit rose to2.08bn crowns from 1.74bn a year ear-lier.

The bank said the rise was due tohigher than expected trading income

and a 21 per cent fall in bad loans.

Irish debts hitDanske BankBANKING▲

COMMERZBANK’S chief f inancial offi-cer Eric Strutz will not extend his con-tract when it expires next March, theindebted bank said yesterday.

“It is a pity that he is leaving us,”chief executive Martin Blessing saidin a statement. “I have a great work-ing relationship with him.”

Commerzbank made no mentionof a possible successor.

Strutz, a member of the board of managing directors since April 2004, will remain in place until his contractexpires next year.

CommerzbankCFO set to quitBANKING▲

Paul Idzik (left) and Bob Rickert have both stood down with immediate effect

SHARES in property consultancy DTZ tanked 4.4 per cent despite the broader market bounce yesterday,after its chief executive and financedirector abruptly left the firm andthere was a frustrating lack of progress in its takeover talks with “a

number of “ suitors.Paul Idzik, who has served as chief

executive since 2008, and financedirector Robert Rickert have stooddown with immediate effect, unset-tling the company’s board in themidst of takeover discussions withlargest shareholder Saint GeorgesParticipations.

SGP first approached the property

firm in May, marking what someanalysts hoped would be a turn-around for the group following aheavily-discounted rights issue in2009 and a profits warning last year.

“Paul Idzik believes it is appropri-ate for a new leadership team to beput in place and has also decided toleave the Company at this time,” thefirm said in a statement.

DTZ’s head of UK and Ireland JohnForrester has been promoted to chief executive and will take a seat on the board. James Thomson, currently chief financial officer, will becomefinance director.

DTZ shares closed at 32.75p yester-day, down 4.4 per cent but still abovethe 28p trough seen before news of takeover talks surfaced.

DTZ shares nose-dive astwo top executives quitBYMARION DAKERS

PROPERTY▲

8/6/2019 Cityam 2011-08-10


UK REVENUES at Deloitte, one of the City’s big four accountancy firms, have risen by seven per centover the past year, it said yesterday,returning to growth after seeingcontraction since 2008.

The global firm posted UK rev-enue of £1.9bn for the year to 31May, up from £1.78bn in 2010.

Chief executive and senior part-ner David Sproul said the past yearhad seen a “robust performance inchallenging and competitive mar-kets”.

The firm’s consulting and corpo-

rate finance divisions turned in thestrongest performances, with rev-enue growth of 13 per cent and 11per cent respectively.

Audit – which boosted clientnumbers this year with the addi-tion of Glencore and InternationalPower to its list – was up four percent, while the tax division saw growth of five per cent.

Deloitte increased its headcount by eight per cent over the year, with

a further 1,200 graduates andschool leavers slated to join thefirm this autumn.

Its equity partnership alsoswelled by four per cent, anincrease that Deloitte said haddirectly impacted its profit distrib-utable to partners – which fell to£535m from £590m last year.

Outgoing senior partner andchief executive John Connolly took home £4.4m in 2011, compared to£5.1m last year.

Profit allocated to David Sproul,the new senior partner and chief executive, was £2.6m.

Sproul’s upbeat statement alsohighlighted Deloitte’s potential forexpansion, with the firm focusingits efforts outside its establishedmarkets.

“I see opportunities for growth insectors and geographic regions

where Deloitte is not currently theleading professional servicesprovider,” Sproul said.

Deloitte sees

UK revenuerises returnBY ELIZABETH FOURNIER

PROFESSIONAL SERVICES▲


How BA’s rivals measure up

W

ITH the holiday season in fullflow we’ve taken a look athow airlines are perceived.

The top six airlines on theBrandIndex index score (combined forsix key measures) are Virgin Atlantic,Emirates, British Airways, Qantas,Singapore Airlines and Cathay Pacific.

The detail reveals an interesting pat-tern. While UK and Australian firmsperform well overall, they do less wellon proportional scores (just those withpositive or negative opinions).

This indicates that more people useand are aware of the strengths and

weaknesses of BA, Qantas and Virginand are generally positive towardsthem, but they cannot compete with

Asian rivals in terms of positive senti-ment among those that use them.

Satisfaction is a great example.Looking at the standard chart, BA hasa clear lead on +24. The BA score comesfrom 32 per cent of people being satis-fied and eight per cent dissatisfied.

Compare that with Singapore Airlines, where seven per cent are satis-fied and less than 0.5 per cent dissatis-fied and we see that BA may do better

at getting people on the plane butSingapore knows how to keep themhappy. This is reflected in the propor-tional chart showing Singapore,Emirates and Cathay vying for firstplace, Qantas and Virgin slightly fur-ther back and BA at the still good, butsignificantly lower +60.

So in many ways comfort for all of these airlines: BA still the leading air-line in the country, but they don’tkeep their customers as happy as someof their smaller competitors. StephanShakespeare is the chief executive of YouGov

BRANDINDEX

STEPHAN SHAKESPEARE

ANALYSIS l Satisfaction

British Airways

01/06/2011 21/06/2011 11/07/2011 04/08/2011

30.0

20.0

10.0

Cathay Pacific

Emirates Qantas

Singapore Airlines Virgin Atlantic

ANALYSIS l Satisfaction proportional

01/06/2011 21/06/2011 11/07/2011 04/08/2011

100.0

80.0

60.0

40.0

20.0

20.0

British Airways Cathay Pacific

Emirates Qantas

Singapore Airlines Virgin Atlantic

VIRGIN Atlantic pilots voted yesterday to accept a pay offer from the airlinefounded by Richard Branson, puttingan end to the threat of strike action.

The British Airline Pilots’ Association (Balpa) said the deal had

provided “some improvement on pay”,included a profit share scheme and aprogramme to review pilot lifestyle as

well as a commitment on improvingthe way management and pilots work together.

Balpa’s general secretary JimMcAuslan said pilots who voted over-

whelmingly in favour of industrialaction in June “have now decided tosettle this pay round with the futurein mind”.

“Now we need to work together –management and association – to get

Virgin back to the airline it once was,”he said in a statement yesterday.

Virgin pilots reach a truce with the airline over payAVIATION

▲

8/6/2019 Cityam 2011-08-10



QuilterThe investment manager has strength-ened its IFA sales team by hiring three

new regional sales managers. Paul Cox,

who will cover Birmingham, joins fromScottish Widows; Paul Ruscoe, whowill cover Liverpool, joins from Carbon

Footprint Investments; and Andrew

Shirtcliff, who will cover London,

recently ran his own company, ParkLodge Financial Consulting.

Lloyds Bank Corporate MarketsKeith Underwood has been appointedas head of FX trading, North Americaat Lloyds Bank Corporate Markets.Underwood joins the bank from FXRisk Advisors, where he was chief executive and head of risk.

Cheapflights MediaAlan Martin has taken over as interimchief financial officer of the media net-work, following the untimely death of chief financial officer Simon Bicket.

Martin was most recently interim

finance director for the global brands

division of BBC Worldwide.

Council of Mortgage LendersMartijn Van der Heijden, head of lend-ing at HSBC, has been appointed as thenew chairman of the Council of Mortgage Lenders. Van der Heijden,who replaces Colin Walsh of LloydsBanking Group, has been deputy chairof the CML since January 2009.

National Milk RecordsThe PLUS-quoted milk services suppli-er has appointed Sandra Pope, thenominated representative of NMR’slargest shareholder Financial Media

Holdings Limited, as a non-executive

director. Pope’s other current director-

ships include Cardinal Internationaland Premier Health Group.

Royal Bank of ScotlandDan Haxby has been appointed as headof realisations in the strategic invest-ment group at RBS, effective from 1September. Haxby was previously headof financial sponsors coverage at JPMorgan.

Baring Asset ManagementFaisal Ali has been hired as investmentmanager in Barings’ emerging marketsdebt team. Ali joins from ObservatoryCapital, where he was a portfolio man-

ager in the emerging markets team.

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

+44 (0)20 7092 0053morganmckinley.com

To appear in CITYMOVESplease email your careerupdates and pictures to [email protected] SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT

in association with

Wall St reboundsafter volatile day

US stocks rallied yesterday in a

volatile session as investorsstruggled to decipher theFed's signals on the economy

after a dizzying two-week slide.Buying accelerated into the close

and the S&P 500 posted its best day

gained 429.92 points, or 3.98 percent, to end at 11,239.77. TheStandard & Poor’s 500 Index rose53.07 points, or 4.74 per cent, to

1,172.53. The Nasdaq CompositeIndex added 124.83 points, or 5.29per cent, to 2,482.52.

About 16.4bn shares traded onthe New York Stock Exchange,NYSE Amex and Nasdaq -- morethan twice the daily average so farthis year of 7.75bn.

Advancing stocks outnumbereddeclining ones on the NYSE by aratio of almost 12 to 1, while on the

BRITAIN’S top share index

bounced off 13-month lows yesterday, along with indexesacross the Atlantic, as

investors hoped an announcement by the US Federal Reserve wouldcalm nerves over global debt andgrowth problems.

the next few months, the market isnot waiting to find out -- it is now beginning to price in a double-diprecession in the world’s largest

economy,” said David Miller, part-ner at Cheviot Asset Management.

“QE3 may therefore be closerthan the market has hitherto believed.”

The UK benchmark index rose95.97 points, or 1.9 per cent, to5,164.92, snapping a losing streak that has stretched back over thelast seven trading sessions.

In that period the market had

valuation floor is not far below current levels because so much badnews is already discounted”.

Among the top gainers were chip

designer ARM Holdings and engi-neer Weir Group, which rose 7.7and 7.8 per cent, having been bat-tered in recent days.

InterContinental Hotels jumped8.2 per cent after the world’s number one hotelier issued a confidentoutlook statement and reportedimproved first-half trading.

Both Panmure Gordon andNumis Securities repeated “buy”

FTSE bounces up but all eyesmove to Fed’s announcementTHELONDON

REPORT

THENEW YORK

REPORT

BEST OF THE BROKERS To appear in Best of the Brokers email your research to [email protected]

ANALYSIS l British Land

640

600

Jun Jul Aug

p

560

520

528.509 Aug

BRITISH LANDUBS has upgraded the real estate investment trust from “neutral” to “buy”with a 12-month target price of 610p. The broker thinks the group’s strategyhas become more appealing in the current low growth, risk averse environ-ment, coupled with a strong dividend yield. While the firm slightly missedestimates with its first quarter results, UBS has lifted its earnings per shareforecast on the back of recent acquisitions.

ANALYSIS l Catlin

440

420

400

380

360

Jun Jul Aug

p

370.909 Aug

CATLINMorgan Stanley rates the insurance group “overweight” but has cut its targetprice from 504p to 490p in light of its recent catastrophe loss estimates. Thebroker still thinks the firm’s risk-reward looks attractive compared to rivalinsurers, and is also keen on Catlin’s dividend yield of 7.7 per cent in 2012 onpresent forecasts. Morgan Stanley also notes the firm’s strong reinsuranceprogramme to protect its capital base.

ANALYSIS l Cobham240

220

230

210

200

180

190

27 May 16 Jun 26 Jul06 Jul

p

181.309 Aug

COBHAMGoldman Sachs has upgraded the defence group from “neutral” to “buy” witha raised target price of 225p, giving a potential upside of 27 per cent. Whilethe broker has a negative outlook on the UK defence sector, it thinksCobham’s strong balance sheet and robust dividend cover provide a com-pelling investment case, and expects the firm to bolster its value through bolt-on acquisitions using its free cash flow or be taken over itself.

Baker & McKenzieThe law firm has appointed Marc Fèvre as apartner in its energy, mining and infrastruc-ture (EMI) group. Fèvre joins from FreshfieldsBruckhaus Deringer, and is an expert in ener-gy and infrastructure project developmentand finance. He also brings recent experienceof the Middle East, having worked in AbuDhabi since early 2009. Fèvre becomes theseventh partner in the firm’s EMI group,bringing the total number of partners atBaker & McKenzie in London to 88.

8/6/2019 Cityam 2011-08-10


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19Wealth Management | Foreign Exchange

AS WELL as the devastating crash inequities, commodities have been hithard by recent market turmoil.Both are driven by the public and

private debt burdens on Westerneconomies combined with declining expec-tations of the prospects for global growth.

As such, the commodity currencies – seen by many as safe havens – have suffered aflight of capital and will continue to do sofor the foreseeable future.

THE TIES THAT BINDChris Beauchamp of IG Index notes that the Australian and Canadian dollar are driven by raw materials, with declining copperand iron prices impacting heavily on theformer and oil prices on the latter. SimonSmith of FxPro says over the past five yearsthe Aussie and loonie have become increas-ingly correlated with global industrial pro-duction. Falling commodity prices arehitting the revenues of the key industries

in these countries, slowing economicgrowth and increasing the potential forrate cuts. Smith says with rates at 4.75 percent, the Aussie has been a favoured play on carry trades – a weakening economy will pressure the authorities to cut rates,further weakening the currency.

BACK TO REDUnlike many macroeconomists, those atSociete Generale’s global strategy teamhave been ahead of the curve – envisagingthe scenario of another downturn thatmost failed to even contemplate. SocieteGenerale’s Albert Edwards – famed for histhesis that global equities are in an “ice

age” of declining valuations – remains bear-ish. He thinks: “The simple fact is that the

The Aussie, loonie

and kiwi are not safehavens from a globaleconomic slowdown,writes Philip Salter

Demand for commodities is cooling Picture: REUTERS

Glacial growth threat tocommodity currencies

W

E ARE on a bumpy road with a veryfew spare tires,” said Pimco chief

executive Mohamed El-Erian, justbefore US equity markets openedfor trade yesterday morning. I couldn’t agreemore. Capital markets are in turmoil and theprimary reason for the meltdown is theabsolute lack of confidence in American andEuropean leadership. The aftermath of thedowngrade of US debt to AA+ along with thecontinuous rise in Spanish and Italian bondyields are clear signs that markets have lostfaith in governments on both sides of theAtlantic and are now frantically fleeing intothe safety of the Swiss franc.

Last week, I half jokingly noted that euro-Swiss franc at parity was possible by the endof this year. With the pair having come within

a few pips of the SFr1.0500 level yesterday,parity is no longer a laughing matter.Meanwhile, dollar-Swissie has broken the keypsychological level of SFr0.7500, reaching anew record low of SFr0.7360. The pair isgrossly oversold and has essentially been aone-way trade for nearly a month, but there islittle on the horizon to suggest that it canstage a counter-trend rally.

With President Obama rendered ineffectiveby Congress and European leaders unwilling toaccept the reality that in order to maintain asingle currency they need a commonEurobond, the only source of leadership left isthe US Federal Reserve. Although the impactof its various quantitative easing (QE) pro-

grammes has been limited at best, Fed author-ities may have no other choice but to act onceagain as the buyer of last resort. Generally, QEwould be viewed as dilutive and therefore neg-ative for the dollar. However, QE’s positiveimpact on risk assets will likely outweigh anyconcerns over further expansion of the USmonetary base, and dollar-Swissie could finallyrebound on a relief rally in risk.

SWISS FRANCIS STILL THESAFE OPTION

BORIS SCHLOSSBERGDIRECTOR OF CURRENCY RESEARCH, GFT

global economy is falling back into reces-sion – or indeed is already in recession.” And for those “hoping for emerging mar-ket growth to sustain the global economy,”he cautions that actually “emerging mar-kets are slowing even more rapidly thandeveloped markets.”

SAFE AS SUBPRIME HOUSESPhil McHugh of CurrenciesDirect pointsout that although the US dollar is still cred-ited with a 60.7 per cent share of global cur-rency reserves, it is in decline. However, henotes “there is no real current natural alter-native that can cope with a large swing out

of dollar, so the process is likely to taketime.” McHugh though doesn’t consider

the Australian and New Zealand dollars assafe havens and “would not recommend amove into commodity currencies – slowinggrowth from the US or China would ulti-mately lead to a sell off in commodity cur-rencies.” Aaron Singh of IFX agrees, saying“the Aussie certainly cannot be called a safehaven after a near on 10 per cent drop in just one week,” adding “with the currentrise in the volatility index, I wouldn’t besurprised to see even further commodity related sell offs.”

So which currency is the safest? Unlikethe euro, the dollar will be around for a while yet – but the safest currency for now

is the one that used to back the currentflock of fiat ones: gold. A real safe haven.

8/6/2019 Cityam 2011-08-10


Wealth Management | Foreign Exchange20 CITYA.M. 10 AUGUST 2011

WITH attention being drawn tocable tomorrow with the BoEquarterly inflation report,investors are likely to see a fall in

the sterling-dollar pair. There should be afurther downward revision to the bank’sgrowth forecast. However, inflation itself should be revised up, at least in the near

term. And with cable under pressure andchallenging its support, a break below itcould see further weakness. CapitalSpreads quotes a price of $1.6280-$1.6282.

Sterling was out of favour withinvestors yesterday as concerns over theLondon riots gripped currency investors.Against the euro the pound did particularlybadly, dipping from the €1.1500 mark,back to around €1.1430. Capital Spreadsquotes a price of €1.1430-€1.1433 for ster-ling-euro

The Swiss franc has rallied against manyof its counterparts and is taking advantageof its safe haven status. With concernsover the US economic situation, the sover-

eign debt issues, and speculation that theFOMC will maintain its stimulus measures,the dollar especially is trading much weak-er against the franc. We could expect tosee a further flight to safety in the franc asthis situation continues. Capital Spreadsquotes dollar-Swiss franc at SFr0.7411-SFr0.7415

Dollar-yen has given back all the gainsit made following the intervention by theBank of Japan earlier this month, and onceagain shows how they can’t seem to stopthe US dollar from gradually getting weak-er and weaker. Dollar-yen is now backwhere it started before the BOJ sold theyen, and a break below key support could

see us head even lower. Capital Spreadsquotes a price of ¥77.05-¥77.06.Craig Drake

THE TIPSTER INVESTORSTAKE FLIGHTINTO THE

SAFETY OFHAVENCURRENCIES Sterling is noshelter from

the stormGeorge Osborne may be some way off the mark in seeing the UK as a havenfrom turmoil, writes Craig Drake

WITH the downgrade of USgovernment debt by Standard and Poor’s last week, and the ongoing

turmoil in the crumbling Eurozone,George Osborne could be forgivenfor feeling a little bullish in his out-look for the UK economy, referring

to it as a harbour in a financialstorm. In comparison with the USdebt ceiling bickering and the ClubMed countries kicking the financialcan down the road with one bailoutafter another, Britain has pursued acourse of spending cuts which have been looked upon favourably by themarkets. Britain’s CDS rates arelower than Germany’s and follow-ing Osborne’s credible approach toaddressing the fiscal deficit,Standard and Poor’s took the UK off their negative outlook, and main-tained its AAA rating.

But despite this, all is not rosy in

the gardens of Number 11. “Thechancellor of the exchequer may say that the UK is a safe harbour duringthis terrible financial storm the

markets are experiencing, but thefortunes for sterling don’t seem to be getting any better,” says AngusCampbell, head of sales for CapitalSpreads. Yesterday saw a slew of lacklustre economic announce-ments with industrial and manufac-turing figures all coming in under

analysts’ predictions. As well asthese poor figures, according toCampbell: “The UK has had to deal with downgrade after downgrade toits economic forecasts, and so for-eign investors are still a little unsureas to how safe their cash would be if they were to exchange it into ster-ling.”

Sterling’s pretensions to thehaven currency throne are quickly usurped when you look at its per-formance against establishedhavens. “Real safe haven currenciessuch as the Swiss franc have beenappreciating uncontrollably against

most other currencies and thepound is no different. This yearalone, sterling has given up 17 percent to the Swissie” says Campbell

Stormy times in the financial markets Picture: GETTY

(see chart, above).But in comparison to the euro and

dollar, sterling seems to be holding up

much better. According to David Jones, chief market analyst for IGIndex: “My view on sterling, particu-larly sterling-dollar, has been pretty

much the same all year. Plenty of volatility with the odd run to test the$1.7000 area, but ultimately I think

that because the US economy is still a bit stronger than ours, it will end upseeing the year out where we are now at $1.6300.”

SFr

2011 18 Jul 25 Jul 1 Aug 8 Aug

1.36

1.32

1.28

1.24

ANALYSIS l Sterling vs Swiss franc

FOREX ANALYST PICKS

FOREX STRATEGISTJOEL KRUGER

My pick: Looking to sell Swiss francsExpertise: Technical analysisAverage time frame of trades: 1 day to 1 week

FOREX STRATEGISTILYA SPIVAK

My pick: Stay short euro-dollar (stop-loss: daily close above $1.4535)Expertise: Global macroAverage time frame of trades: 1 week to 6 months

Renewed EU sovereign risk is being compounded by broader risk aver-sion amid a downward re-pricing of worldwide economic growth

Markets have a way of accelerating relentlessly at the end of a trend and thisis precisely the type of price action we have been seeing in the Swiss franc, as

FOREX STRATEGISTJOHN KICKLIGHTER

My pick: Short euro-dollar below $1.4000 and $1.3800Expertise: Fundamental analysis with risk managementAverage time frame of trades: 1 day to 1 week

Markets have been roiled, as building momentum in risk aversion met theaccelerant of an earlier-than-expected US sovereign credit rating down-

8/6/2019 Cityam 2011-08-10


8/6/2019 Cityam 2011-08-10


Lifestyle | Motors

22 CITYA.M. 10 AUGUST 2011

WORDS BYRYAN BORROFF

way to whisk you to your weekend home.It can even plough through furrows of

mud on the country lanes when you getthere. This is a near-perfect all-rounder.Get your order in quick before it becomesa ubiquitous as a Mini.

CAR TALK BY RYAN BORROFF

Evoquative: the ultimate all-rounder

The Evoque – lightand fast. Get it while

it’s hot.

I TS heart may be in the country, butRange Rover – for so long the pre-ferred transport of the country setand most naturally at home on rural

lanes – has a new sibling, and despite being created for city living, the new Evoque is the greenest Range Rover yet.

Available as a three-door coupé or five-door, the Evoque is the smallest and light-est Range Rover ever. We’re driving theEvoque from Anglesey – the original homeof Land Rover – across Snowdonia and onto Liverpool.

Everywhere we go people stop to look.Evoque started life as the Land Rover LRX

concept and the car has made it to produc-tion with barely any changes. Not only isthis a very rare thing, the visual dramathat remains means the Evoque may now be the world’s most desirable 4x4. Whether this represents a dramatic evolu-tion or an exaggeration of traditionalRange Rover design depends on whether your viewpoint is at the CAMRA end of weekend off-roading or the Chelsea end of Saturday shopping. It’s worth remember-ing that as far as Land Rover is concernedthey’re not expecting a single, traditionalLand Rover owner to sign up for this car.

While still obviously a 4x4, the Evoquehas an athletic and dynamic look thanks

to its slim headlights and distinctive tail-lights, high, sloping waistline, low win-dows and pronounced wheel arches. Keepin mind that a special Victoria Beckhamedition Evoque is still to come and you getan idea for the kind of buyer Land Rover believes will be seduced by this car. Thecompany expects the average Evoque buyer to be young, cool, design-consciousand living in the city, rather thanlabrador-loving country types. In fact,more than 80 per cent of the 20,000 salesso far have been bought by complete new-comers to this off-road brand.

And there’s no element of style oversubstance here either. The Evoque is just

as credible off-road as any of its bulky brethren, even if it is a car that’s clearly been designed with an on-road city crowdin mind. On a memorable off road testroute in Snowdonia and driving throughan old railway tunnel underneath the City

This super-snazzycity car is givingsibling Rover driversa major pang of envy

THE VERDICT:DESIGN hhhhh

PERFORMANCE hhhhh

PRACTICALITY hhhhi

VALUE FOR MONEY hhhhi

THE FACTS:RANGE ROVER EVOQUE

PRICE: £39,9950-62MPH: 7.1 secsTOP SPEED: 135mphCO2 G/KM: 199g/kmMPG COMBINED: 32.5

of Liverpool, the Evoque proves its creden-tials. On-road the Evoque feels fast and

agile, yet it still manages to cushion urbanpotholes too without any bother. The bestof the three engine options is the Si4240bhp 2.0-litre turbocharged petrolengine – capable of 0-60mph in 7.1 sec-onds. But other than some increased roadnoise, the SD4 190bhp 2.2-litre turbocharged diesel engine is very nearly asmuch fun too. There’s also a 150bhp 2.2-litre turbocharged diesel-engined version which emits less than 130g/km CO2.

Inside, the interior is excellent. In ourSi4 Dynamic version, the seats are inleather, with a textured aluminium-likefinish used on the centre console anddash and perforated leather for the steer-

ing wheel and gearshift. Aluminiumpedal covers complete the sporty look. My colleague watches TV on the eight-inchdual view touch while I follow the nav sys-tem from the driver’s seat. With theoptional panoramic glass roof the interior

is a super place to be.So for us city-dwellers, the Evoque is a

no-brainer – luxurious but economical,comfortable and cool-looking: it’s ashappy to rush you around the city duringthe week as it is comfortable on the motor-

8/6/2019 Cityam 2011-08-10


T E R R E S T R I A

L

VILLAGE SOS

BBC1,8PMNew series. Sarah Beeny follows sixcommunities that received six-figurelottery grants to start up ruralbusinesses.

NATURAL WORLD: EMPIRE OF THE

DESERT ANTS BBC2, 8PM

Documentary following a honey-ant

queen’s rise to power and the methods

she uses to extend her influence and

keep her subjects under control.

THEREMOVAL MEN:PICKFORDS

CHANNEL5,8PMAn Essex family relocates to Cornwallon a whim, having found their newhome only weeks earlier. Last in the

series.

BBC1

SKY SPORTS 17pm Sky Sports News at Seven

7.30pm Live International

Football 10pmYou’re on Sky

Sports! 11pm Premier League 20

in 20 12am FIFA Futbol Mundial

12.30am International Football

2.30am Premier League 20 in 20

3.30am International Football

5.30am-6amFootball’s Greatest

SKY SPORTS 26.30pm Premier League 20 in 20


Football 10pmTest Cricket 12am

America’s Cup World Series

12.30am Boots ’n’ All 1.30am

Total Rugby 2am Poker4am

America’s Cup World Series

4.30am-5amTotal Rugby

SKY SPORTS 37pm European Tour Weekly: The

latest news from the golf circuit.7.30pm Live International

Football 10pmUSPGA

ChampionshipGolf 11pmUltimate

Challenge MMA 12.30am Trans

World Sport 1.30am Watersports

World 2.30am Ultimate Challenge

MMA 4am Boots ’n’ All 5am

Inside the PGA Tour 5.30am-6am

European Tour Weekly

BRITISH EUROSPORT4pm Live WTA Tennis 7.45pm

Wednesday Selection 7.50pm

Show Jumping 8.50pmRiders

Club8.55pm World Golf

Championship9.55pm Golf Club

10pm Yacht Club 10.15pm Cycling11pm-1amLive Under-20s World

Cup Football

ESPN6.45pmPremier League World

7.15pm ESPN Kicks: Extra 7.30pm

Live International Football

9.45pm International Football

11.30pmDTM Review Show

12.30am ESPN Press Pass 1am

NFL 4am Formula 3 Euroseries

Review 5am-6am VW Scirocco

Cup

SKY LIVING7pm CSI: Crime Scene

Investigation8pm Chick Fix 9pm

Nikita 10pm Supernatural11pm

Criminal Minds 12amCSI: Crime

Scene Investigation 1.50am

Ghost Whisperer 2.40am

Charmed4.20amNothing to

Declare5.10am-6amMaury

BBC THREE7pm Don’t Tell the Bride 8pm

Geordie Finishing School for Girls

9pm Amy Winehouse Tribute

9.40pm BBC Sessions: Amy

Winehouse10.35pmFamily Guy

11.15pmAmerican Dad! 1.50am

World’s Craziest Fools 2.50am

Don’t Tell the Bride 3.50am

Geordie Finishing School for Girls

4.50am-5.15amWorld’s Craziest

Fools

E47pm Hollyoaks: Carmel turns to Fr

Francis for support. 7.30pm How I

Met Your Mother 8pm Friends

9pm Beaver Falls 10pm Franklin &

Bash 11pm Alan Carr: Chatty Man

12.05amMy Name Is Earl 1am

How I Met Your Mother 1.25am

Franklin & Bash 2.10amAlan

Carr: Chatty Man 3.05am Glee

3.50amSmallville4.35am

Heartland5.20am-6amSwitched

HISTORY7pm The Six Wives of Henry VIII

8pm Ax Men 10pm Only in

America 11pm Oil Riggers 12am

Ax Men 2am UFO Hunters 3amThe Six Wives of Henry VIII 4am

Ancient Discoveries 5am-6am

The Universe

DISCOVERY7pm Mythbusters8pm How Do

They Do It? 9pm American

Chopper: Senior Versus Junior

10pm Surviving the Cut 11pm

Powering the Future 12am Bear

Grylls: Born Survivor 1am

American Chopper: Senior Versus

Junior2am Surviving the Cut

3am Deadliest Catch 3.50am

Raging Planet 4.40amTreasureQuest 5.30am-6amDestroyed in

Seconds

DISCOVERY HOME &

HEALTH7pm A Baby Story 8pm Little

People, Big World 9pm Untold

Stories of the ER 10pm A&E11pm Emergency12am Untold

Stories of the ER 1am A&E 2am

Emergency3am Little People, Big

World 4am A Baby Story5am-6am Bringing Home Baby

SKY18pm The Glee Project: The

hopefuls work on their duet

performances.9pm Octomum:The 8 Baby Mother 10.30pmBrit

Cops: Rapid Response 11.30pm

Cop Squad 12.30amBorder

Invasion USA 2.25am StargateUniverse3.55amBody Language

Secrets4.45amAirline

5.35am-6amOops TV

BBC2 ITV1 CHANNEL4 CHANNEL5

S A T E L L I T E &

C A B L E

TVPICK6pmBBC News 6.30pmBBC

London News 7pm The One Show

7.30pm National Treasures Live;

BBC News; Regional News 8pm

CHOICE Village SOS 9pmWho Do

You Think You Are? 10pm BBC

News 10.25pm Regional News

10.35pm The National Lottery

Wednesday Night Draws 10.45pm

Not Going Out 11.15pmHim & Her;

National Lottery Update 11.45pm

The League Cup Show:

Weatherview 12.50amSign Zone:

Bang Goes the Theory1.20am

Sign Zone: Country Tracks 2.15am

Sign Zone: Richard Hammond’s

Engineering Connections 3.05am

Royal Upstairs Downstairs

3.35am-6am BBC News

6pm Eggheads

6.30pmCelebrity Eggheads

7pm Rick Stein’s Spain: The

chef travels through

Extremadura to Seville. Last in

the series.

8pmCHOICE Natural World:

Empire of the Desert Ants

9pm The Code

10pm Never Mind the

Buzzcocks: Tim Minchin hosts

the comedy music quiz.

10.30pm Newsnight; Weather

11.20pm Fake or Fortune?

12.20am The Tudors1.10am BBC News 3.35am-6am

Close

6pm London Tonight

6.30pm ITV News

7pmEmmerdale: Hazel slaps

Aaron after he calls her a

murderer.


Football: England v

Netherlands (Kick-off 8.00pm).

10.10pm ITV News

10.40pm London News

10.45pm International

Football:

11.45pm Homes from Hell

12.40am The Zone; ITV News

Headlines2.45amFILM Deliverance. 1972.

4.40am-5.30am ITV Nightscreen

6pm The Simpsons

6.30pmHollyoaks

7pm Channel 4 News

7.55pm 4thought.tv

8pm Jo Frost: Extreme

Parental Guidance

9pm 24 Hours in A&E

10pm 8 Out of 10 Cats Uncut

10.50pm The Inbetweeners

11.50pm Music on 4: Ibiza

Rocks

12.25am The Killing1.20am Music on 4: The Crush

2.15am One Minute Past Midnight

2.25amFILM Dangerous Beauty.

1998. 4.15amBrothers & Sisters

5am-5.55am Cookery School

6pmMeerkat Manor6.25pm OK! TV

6.55pm 5 News at 77pm Cricket; 5 News Update

8pmCHOICE The RemovalMen: Pickfords; 5 News at 9

9pmNCIS

10pmFILM Universal Soldier:Sci-fi thriller, starring Jean-

Claude Van Damme. 1992.12.05am Poker: The Big Game1.05am SuperCasino:Live

interactive gaming. 3.55am Animal

Rescue Squad 4.10am

HouseBusters4.35am

HouseBusters5am Rough Guide to

Beaches5.10am Wildlife SOS

5.35am-6am House Doctor

17 20

10 29

32 7

9 9 9

8 39

21

22 7

16 17 15

8 33

28 15

14 11

34

23

15

18

12

14

22

11

16

10

31

15

30

11

19

9

13

17

35

25

16

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

KAKUROPlace the numbers from 1 to 9 in each empty cell so that each

row, each column and each 3x3 block cont ains all the numbers

from 1 to 9 to solve this tricky Sudoku puzzle.

SUDOKU

QUICK CROSSWORD

ACROSS DOWN

23CITYA.M. 10 AUGUST 2011

8/6/2019 Cityam 2011-08-10


such a buoyant England side. Andrew Strauss’ men are comfortable

favourites at around 2.44 on Betdaq to winat Edgbaston. Under the circumstances, theonly reason that they are not any shorter is

the prospect of inclement weather affect-ing play. Even so, England have shown anappetite for getting the job done quickly after winning at Trent Bridge in four daysand that price is a tasty carrot dangling infront of punters.

There looks to be little doubt thatEngland will get the single victory they need from the remaining two fixtures – orprotect their two-match winning margin –that would confirm their status as the world’s No1 Test side. Paddy Power offer a best price 1/6 that they top the rankingsafter the series and the prospect of a 4-0 whitewash, which can be backed at 5/2 with the same firm, looms large.

England’s strength in depth has meantthat they have been better able to deal withtheir injuries. Tim Bresnan came in forChris Tremlett in Nottingham and played a blinder.

The likely promotion of Bell up the ordershould make it a seamless transition andhe is a strong candidate to be top England batsman on his home pitch at 9/2 w ith William Hill. He batted at three in the sec-

ond innings of the second Test and helpedhimself to 159 runs. In addition to that cen-tury, the Warwickshire man has 10 fiftiesfrom that position in 34 innings.

India have yet to post a tally above 300 inany of their four innings and England’sdomination means another bet to interestspread punters is their first inningssupremacy. Sporting Index are trading thismarket at 40-60 in England’s favour andanother buy is advised. Anything like the188-run lead they enjoyed at the mid-pointof the first game would pay off handsomely.

SPORT TRADER OLLIE DREW AND DAVID WILD BRING YOU THE BEST BETS

FROM ENGLAND VS INDIA AS WELL AS THE USPGA CHAMPIONSHIP

WITH India 2-0 down with just two

Tests to play, they may be theones drinking in the last chancesaloon, but there’s one man in

the England team who knows exactly how

they feel. Step forward Ravi Bopara.Undoubtedly hugely talented, the Essex batsman has played just 10 Tests since mak-ing his debut in December 2007 and is fastrunning out of opportunities for the ThreeLions. He knows he must grab the one thathas been offered to him by Jonathan Trott’sinjury with both hands.

Bopara’s form for England has been hitand miss to say the least. His Test career

began without much fanfare on a tour of Sri Lanka and his most recent contribution

was 105 runs over seven innings against Australia in the last Ashes on home soil.However, in between that – and still lodgedfirmly in the minds of the selectors – are

the three consecutive centuries he scoredagainst West Indies in early 2009.England management would also have

been impressed by his recent knock of 178for his county side against Leicestershireand Bopara is likely to bat at No6, with IanBell filling the void at three left by Trott’sabsence. With Bopara’s track record it is arisk, but if he clicks, a small buy of his totalmatch runs with Sporting Index at 67should prove worthwhile.

Already hurting from two big losses,injuries to key players have added to cap-tain MS Dhoni’s pain. Batsman YuvrajSingh and spinner Harbhajan Singh wereruled out last week and they have since

been joined on the sidelines by key fast bowler Zaheer Khan. The withdrawal of Khan is a massive blow to the tourists and itis difficult to see how their remaining

bowling attack will take 20 wickets against

TODAY – 11.00 AM SKY SPORTS 1

INDIA

ENGLAND

POINTERS...

Buy Ravi Bopara’s runs at 67 with Sporting IndexBack England to win third Test at 2.44 on BetdaqEngland to win series 4-0 at 5/2 with Paddy PowerIan Bell to be top England scorer in third Test at 9/2with William Hill

England to pile on miseryfor Indians at Edgbaston

Bopara hasn’t played a Test for two years Picture: ACTION IMAGES

More glory in store for Rory at USPGA

Punter | Sport

24

S

8/6/2019 Cityam 2011-08-10


Sport 25CITYA.M. 10 AUGUST 2011

Extreme 40s in action on a day dominated by McMillan’s The Wave Picture: GETTY

HOME skipper Leigh McMillan’s The Wave seized the overall lead in theExtreme Sailing Series on a star-stud-

ded day four of Aberdeen AssetManagement Cowes Week.One win and two second places

from yesterday’s seven races elevatedIsle of Wight-born McMillan and hiscrew into first place, ahead of France’s Groupe Edmond deRothschild and previous leader LunaRossa, of Italy.

Good sailing conditions allowedthe full 11-strong fleet to race togeth-er five times, on a day in whichcelebrities from the world of sailingand beyond, such as Scottish rugby great Gavin Hastings, joined theteams on board as guests.

John Pink’s Aberdeen AssetManagement was able to continue

McMillan puts

on a show forsailing’s starsBY FRANK DALLERES

COWES WEEK▲

competing in the British leg of theglobal series after the Olympic 49ersailor succeeded in repairing damagecaused when the boat capsized dur-ing Monday’s racing.

Elsewhere yesterday, in the IRC

Class 1, Michael Bartholomew’s Tokoloshe won the Britannia Cup,one of the regatta’s most covetedprizes, ahead of another King 40,

Aasmund Drolsum’s Magic andBernard Gouy’s Ker 39 Inis Mor.

Lloyd’s Yacht Club’s Swan 53 Lutine was first in the IRC Class 2s, whileNiklas Zennstrom’s Ran triumphedon corrected time in the IRC BigBoats.

Johnny Shaw and Julia Plumstead’sPerdix took victory in the XOD class,ahead of Simon McCarthy and AdamRichards’ XL, while Julia Bailey’s

Aimee pipped Gavia Wilkinson-Cox’s

Jerboa by just 19 seconds in theDragon class.

WELL, I have been duly edu-cated and it seems I have tohold my hand up: I was

wrong. Ladies Day at Aberdeen Asset Management Cowes Week isn’t a pat on the back for usfrom the establishment – it’s serious,and is an effort to lessen the miscon-ceptions sailing is the sporting pre-serve of men.

The Olympic 470 dinghies are agood example of this. Women andmen sail the same boats and menchoose to train with their country’sfemale team as they are often faster.On that note, it’s great to see the

Brits, Hannah Mills and Saskia Clarkelaying some smack down in Weymouth at the Olympic test eventthis week! Also it was good to see

Giulia Conti, the Italian 470 sailor,and Silja Lehtinen, the Finnish matchracer. Both are doing well in

Weymouth but took advantage of their rest day to come over to Cowesand watch the Extreme 40 sailing.

DESIRED EFFECT

I also caught up with Louise Morton, winner of last year’s Ladies Day Trophy, and not surprisingly she is afan of the event. She said it was greatto be acknowledged for her achieve-ments, and that’s what it’s all about.It’s a celebration of women! LadiesDay does seem to be having the

desired effect and this year at Cowes Week nearly 30 per cent of the sailorsat Cowes this week are women – asurprisingly high percentage.

Meanwhile in our household, overdinner the conversation becamequite heated about the incident onSaturday in which a tanker collided

with a small sailing boat. Tim, one of the crew on my husband’s Yes! Team,had met up with one of the sailorsinvolved and was given his account.

Obviously there will be a properinvestigation but from his version of the incident it does sound quite plau-sible that I could have done the samething. You hope you don’t have a sim-ilar rabbit-in-headlights moment, butuntil it happens you don’t know.

The Yes! Team boys were debating

eagerly as, by chance, the sametanker left Southampton and wentthrough their fleet. They pushed it asmuch as the rules allowed and would

have pushed it further had a Royal Thames rib not got in the way. They did have a slight mishap on the

water, but only once they had crossedthe finish line – Marty fell overboardand they had to execute a quick manoverboard manoeuvre!

Very rarely can you provide some-one with child-like excitement andhalf an hour of complete exhilara-tion, but today I did. Aberdeen AssetManagement ran a competition onCowes Week Radio to go sailing onthe Extreme 40s and my stepfather

won today’s place, but he was racingand unable to go. So Katie Brill, our

cook and a non-sailor, took the placeand absolutely loved it! I’m just gladthere wasn’t a repeat performance of

John Pink’s capsize on Tuesday.

COWES WEEK DIARY

SARAH GOSLING

Ladies Day proves and education and more than a pat on the back

Olympic championshares Cowes Weekdiary with City A.M.

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8/6/2019 Cityam 2011-08-10


THE International OlympicCommittee remain confident London will prove safe and secure hosts of next summer’s Games, despite theriots which have wreaked chaosacross the capital since Saturday.

The timing of the clashes could not

have been more embarrassingly timed as the violence coincided withthe arrivals of two senior members of the IOC co-ordination commission.

News of the violence and disorderhas prompted the media in China toraise concerns over London’s suitabil-ity to stage the Olympics, but a state-ment from the IOC allayed any fears.

It read: “Security at the OlympicGames is a top priority for the IOC. Itis, however, directly handled by thelocal authorities, as they know best what is appropriate and proportion-ate. We are confident they will do agood job in this domain.”

The British Olympic Associationendorsed that view, saying: “For aglobal event such as the OlympicGames, the primary responsibility forsecurity rests with law enforcementauthorities, who work closely withthe Games Organising Committeeand other bodies to ensure every measure is taken to provide a safeenvironment.

“We know that security has been atop priority in the planning andpreparation for London 2012, and wehave full confidence in the work being done to prepare for the Games.”

Olympic organisers Locog are

intent that it is business as usual anda test event, the beach volleyball, began on Horse Guard’s Parade yester-day. The third Test between Englandand India at Edgbaston, meanwhile, will go ahead as planned.

BY JAMES GOLDMAN

OLYMPICS▲

SPORT | IN BRIEFCaddy seeks to end Woods rowGOLF: Tiger Woods’ former caddySteve Williams admits he regrets hisoutspoken remarks after he was sackedby the former world No1 last month.After helping Adam Scott to victory inlast weekend’s WGC-BridgestoneInvitational he claimed it representedthe greatest triumph of his career. Butahead of the start of tomorrow’sUSPGA Championship in Atlanta, hesaid: “Looking back on it, I was a bitover the top, I had a lot of anger in meabout what happened and it all cameout. But, look, it’s time to move on.”

Obertan completes Toon moveFOOTBALL: Newcastle have completedthe signing of Manchester Unitedwinger Gabriel Obertan on a five-yeardeal for an undisclosed fee. The 22-year-old signed for the Old Traffordgiants two years ago but has foundfirst team opportunities hard to comeby. “I spent two good years at OldTrafford but it was a bit difficult withthe competition,” he said. “I really need-ed a club where I could play more.”

Stoke complete move for UpsonFOOTBALL: Stoke have signed formerWest Ham defender Matthew Upson ona free transfer. The 32-year-old left theHammers at the end of last season andwill link up with former England centreback Jonathan Woodgate. Meanwhile,West Ham target Shane Long has com-pleted a £6.5m move to West Bromfrom Reading. The Republic of Irelandinternational scored 25 goals last sea-son as the Royals missed out on promo-tion after losing in the play-off final.

LADIES DAY PROVESTO BE AN EDUCATIONSARAH GOSLING SHARESHER COWES DIARY: P25

27

Results

Olympic chiefs keep

faith despite violence

Strauss confident Bopara and Bresnan

Premier Leagueweekend fixturesThe matches due to be staged atTottenham, Fulham and QueensPark Rangers remain unaffectedFootball League

weekend fixturesThe matches at Crystal Palace,Millwall, Watford, Leyton Orient,Barnet and Dagenham are due togo aheadCounty Cricket at Lord’sMiddlesex’s matches againstYorkshire and Northants will goahead but the finish timesbrought forwardOlympic test eventsThe beach volleyball at HorseGuard’s parade will continue asplanned

England internationalLast night’s friendly againstHolland at Wembley was calledoff on police adviceCarling Cup tiesThe matches due to take placeon Tuesday at West Ham,Charlton and Crystal Palace werepostponedInternational friendlyThe game between Ghana andNigeria, due to be played atWatford’s Vicarage Road wasabandoned

EVENTS GOING AHEAD

Dhoni toys with

SPORTING CHAOS

Ferdinand agreed with the abandonment of tonight’s game Picture: EMPICS

The Olympic test event at Horse Guard’s Parade went ahead Picture: GETTY

EVENTS CANCELLED

✔

✘

8/6/2019 Cityam 2011-08-10


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