cityam 2011-08-24

28
FTSE 100 5,129.42 +34.12 DOW 11,176.76 +322.11 NASDAQ 2,446.06 +100.68 £/$ 1.65 unc £/¤ 1.14 -0.01 ¤/$ 1.44 unc Former IMF boss walks after judge drops case DOMINIQUE Strauss-Kahn yesterday  walked from a New York court along- side his wife after a judge dropped the sex charges against him.  The former IMF boss smiled to the scrum of reporters, branding the last four months a “nightmare” and say- ing he is looking forward to returning to “a more normal life”. He also said he was “most deeply grateful to my wife and family,” and thanked his friends who “believed in my innocence”. Strauss-Kahn was last night still awaiting the outcome of a last-ditch appeal from the lawyers of hotel maid Nafissatou Diallo, who maintains the former French presidential hopeful forced her to perform a sex act and tried to rape her. Legal experts said the appeal for a special prosecutor to be drafted in to  work on the case has almost no chance of succeeding. State prosecutors had recommend- ed the case be dropped after Diallo repeatedly lied about her past. They told the judge that if they could not  believe her testimony beyond reason- able doubt that there was no reason a  jury should. Strauss-Kahn faces a civil lawsuit against him, and a separate inquiry in France, where a writer alleged Strauss- Kahn tried to rape her during an inter-  view in 2003. BY STEVE DINNEEN WORLD POLITICS LIBYAN rebels ransacked Colonel Gaddafi’s compound last night and declared the end of the dictator’s rule as celebratory gunfire rang through  Tripoli. Fighters raise d the rebel f lag in the Bab al-Aziziya bastion as all but a few districts fell under their control. They celebrate d the apparent f leeing of the dictator from his base after 42-year rule by seizing weapons and treasure and shouting: “It’s over”.  The triumphant army began to destroy the emblems of Gaddafi’s tyranny by beheading a bronze statue of him, crushing his sculpture of a hand clasping an American warplane and setting fire to one of his Bedouin tents. But as the extraordinary scenes con- tinued into the early hours, Colonel Gaddafi resurfaced, taking to the air-  waves to say his withdrawal from the  Tripoli compound was a “tactical move” following Nato airstrikes. He repeated his pledge to fight to the death in a tirade broadcast by local radio in Tripoli.  The Gaddafi family is believed to have the use of a series of safe houses in the capital and beyond. Mahmoud Jibril, head of the Libyan rebel government, promised to move the country towards democracy, after a conflict that has claimed at least 400 lives in recent days, but pleaded with his people not to issue summary jus- tice or slip into the inter-ethnic con- flict that left Iraq a bloody quagmire. “The whole world is looking at Libya. We must not sully the final BY PETER EDWARDS WORLD NEWS Saif al-Islam, Colonel Gaddafi’s son and chosen heir, is believed to have escaped from the rebels and fled to a safe house www.cityam.com FREE BUSINESS WITH PERSONALITY page of the revolution,” said Jibril.  William Hague, the UK foreign sec- retary, said: “This is not yet an ordered or secure situation in Tripoli or other parts of Libya. It’s not over yet but we are in the death throes here of a despi- cable regime.”  The new Libyan regime said oil pro- duction – the backbone of the coun- try’s economy – will re-start “very soon” and asked Qatar and the United Arab Emirates to supply it with fuel and help rebuild its war-torn infrastructure.  Aref Ali Nayed , the rebels’ ambassa- dor to the UAE, said Libya’s Zawiya refinery had not been badly damaged in fighting and that it would be the first to resume production. The news  was enough to slightly cool the surg- ing price of Brent crude oil, which rose 1.4 per cent to $109.77 a barrel during trading yesterday.  The rebel National Transitional Council has asked for $2.5bn (£1.52bn) in international aid by the end of the month and its members will today meet representatives from the US, France, Italy, Britain, Turkey and Qatar in Doha, Jibril said. “There are some minor damages and they are being fixed… judicially and legally we are able to go forward,”  Aref Ali Nayed added. Issue 1,453 Wednesday 24 August 2011 Certified Distribution 04/07/2011 till 31/07/2011 is 93,093  DSK faces one last appeal from Diallo CLAIM A FREE DRINK AT THE ANTHOLOGIST See page 10 REBELS STORM GADDAFI BA SE  Brought low: Rebel fighters stripped treasure and symbols of Gaddafi from the dictator’s compound at Bab al-Aziziya Picture: AP 

Upload: city-am

Post on 07-Apr-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 1/28

FTSE 100 ▲5,129.42 +34.12 DOW ▲11,176.76 +322.11 NASDAQ ▲2,446.06 +100.68 £/$ 1.65 unc £/¤ 1.14▼-0.01 ¤/$ 1.44 unc

Former IMFboss walksafter judgedrops case

DOMINIQUE Strauss-Kahn yesterday 

 walked from a New York court along-side his wife after a judge dropped thesex charges against him.

 The former IMF boss smiled to thescrum of reporters, branding the lastfour months a “nightmare” and say-ing he is looking forward to returningto “a more normal life”.

He also said he was “most deeply grateful to my wife and family,” andthanked his friends who “believed inmy innocence”.

Strauss-Kahn was last night stillawaiting the outcome of a last-ditchappeal from the lawyers of hotel maidNafissatou Diallo, who maintains theformer French presidential hopefulforced her to perform a sex act andtried to rape her.

Legal experts said the appeal for aspecial prosecutor to be drafted in to  work on the case has almost nochance of succeeding.

State prosecutors had recommend-ed the case be dropped after Diallorepeatedly lied about her past. They told the judge that if they could not believe her testimony beyond reason-able doubt that there was no reason a jury should.

Strauss-Kahn faces a civil lawsuitagainst him, and a separate inquiry inFrance, where a writer alleged Strauss-Kahn tried to rape her during an inter- view in 2003.

BY STEVE DINNEEN

WORLD POLITICS▲

LIBYAN rebels ransacked ColonelGaddafi’s compound last night anddeclared the end of the dictator’s ruleas celebratory gunfire rang through Tripoli.

Fighters raised the rebel f lag in theBab al-Aziziya bastion as all but a few districts fell under their control. They celebrated the apparent f leeing of thedictator from his base after 42-yearrule by seizing weapons and treasureand shouting: “It’s over”.

  The triumphant army began todestroy the emblems of Gaddafi’styranny by beheading a bronze statueof him, crushing his sculpture of ahand clasping an American warplaneand setting fire to one of his Bedouintents.

But as the extraordinary scenes con-tinued into the early hours, Colonel

Gaddafi resurfaced, taking to the air- waves to say his withdrawal from the  Tripoli compound was a “tacticalmove” following Nato airstrikes.

He repeated his pledge to fight tothe death in a tirade broadcast by local radio in Tripoli.

  The Gaddafi family is believed tohave the use of a series of safe housesin the capital and beyond.

Mahmoud Jibril, head of the Libyanrebel government, promised to movethe country towards democracy, aftera conflict that has claimed at least 400lives in recent days, but pleaded withhis people not to issue summary jus-

tice or slip into the inter-ethnic con-flict that left Iraq a bloody quagmire.“The whole world is looking at

Libya. We must not sully the final

BY PETER EDWARDS

WORLD NEWS▲

Saif al-Islam, Colonel

Gaddafi’s son and chosenheir, is believed to haveescaped from the rebelsand fled to a safe house

www.cityam.com FREEBUSINESS WITH PERSONALITY

page of the revolution,” said Jibril. William Hague, the UK foreign sec-

retary, said: “This is not yet an orderedor secure situation in Tripoli or otherparts of Libya. It’s not over yet but weare in the death throes here of a despi-cable regime.”

 The new Libyan regime said oil pro-duction – the backbone of the coun-try’s economy – will re-start “very soon”and asked Qatar and the United Arab

Emirates to supply it with fuel and helprebuild its war-torn infrastructure.

 Aref Ali Nayed , the rebels’ ambassa-dor to the UAE, said Libya’s Zawiyarefinery had not been badly damagedin fighting and that it would be thefirst to resume production. The news

 was enough to slightly cool the surg-ing price of Brent crude oil, whichrose 1.4 per cent to $109.77 a barrelduring trading yesterday.

  The rebel National TransitionalCouncil has asked for $2.5bn (£1.52bn)in international aid by the end of themonth and its members will today meet representatives from the US,France, Italy, Britain, Turkey andQatar in Doha, Jibril said.

“There are some minor damagesand they are being fixed… judicially and legally we are able to go forward,” Aref Ali Nayed added.

Issue 1,453 Wednesday 24 August 2011

Certified Distribution

04/07/2011 till 31/07/2011 is 93,093

 DSK faces one last appeal from Diallo

CLAIM A FREE

DRINK AT THE

ANTHOLOGIST

See page 10

REBELS STORMGADDAFI BASE

  Brought low: Rebel fighters stripped treasure and symbols of Gaddafi from the dictator’s compound at Bab al-Aziziya Picture: AP 

Page 2: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 2/28

News2 CITYA.M. 24 AUGUST 2011

Japan hit bydowngradeRATINGS agency Moody’s downgradedthe Japanese government this morn-ing, painting a gloomy picture for thetroubled Asian economy.

 Yet investors shrugged off the news, with the Nikkei rising 0.6 per cent inearly trading today.

 The upbeat start followed a strongday of trading in New York yesterday,during which the Dow Jones grew three per cent.

Nonetheless, Japan’s rating withMoody’s is now Aa3, down from Aa2, with a stable outlook.

“The rating downgrade is prompted by large budget deficits and the build-up in Japanese government debt sincethe 2009 global recession,” Moody’ssaid.

“Several factors make it difficult for

  Japan to slow the growth of debt-to-GDP and thus drive this rating action.”

Political changes to the governmenthave prevented “effective and durablepolicies” from being implemented,Moody’s said.

 Japan is set to elect its sixth primeminister in five years, following theresignation of current head NaotoKan.

Moody’s also attributed some eco-nomic setback to the horrific earth-quake and tsunami that hit thecountry in March.MARKETS AWAIT JACKSON HOLE: P20

BY JULIAN HARRIS

JAPANESE ECONOMY▲

SHIPOWNER THREATENS TO SEIZECHINA VESSELSOne of Greece’s most high-profileshipowners has threatened to seizeships belonging to China’s biggestshipping company, after it halted pay-ments on high-priced charter con-tracts. George Economou said thatCosco’s stance over contracts struck during the 2008 shipping boommight reflect a failure to understandthe importance of honouring pastdeals.

MINERS AND INVESTORS JOIN YUKONGOLD RUSHCanada’s Yukon territory has again become a magnet for miners seekingthe next gold rush. Drawn by thesoaring gold price, exploration com-panies have staked more than 85,000claims in the territory since January,

compared with 83,000 for the wholeof 2010 and 10,000-15,000 in a normal

 year, according to the Yukon MiningRecorder’s office in Whitehorse.

TECHNOLOGY DEALS BACK TO PRE-RECESSION LEVELSDeals in the technology and telecomsindustry have returned to pre-reces-sion levels this year, thanks to a num- ber of big acquisitions such as AT&T’s$39bn purchase of T-Mobile. After two years in the doldrums, the value of merger and acquisition activity in thesector is close to levels last seen in2008.

AIRSHIP DEVELOPMENT SET FOR TAILWIND A British company will take a big steptowards returning airships to comme-cial service after more than 70 yearstoday when it announces its first cus-tomer in a deal that could lead toorders for up to 45 air vehicles worthmore than £2bn. Hybrid Air Vehicles,a privately owned company based in

Cranfield, has signed an agreement with Canada’s Discovery Air.

LINDT UNWRAPS SALES DECLINE INBRITAIN You might think that nobody couldresist the appeal of the gold foil- wrapped rabbits that appear magical-ly on shops’ shelves at Easter, or thosefamiliar soft-centred Lindor choco-late balls, but apprently Britons can —and are. The Swiss chocolatier Lindt &Sprüngli has said in its latest resultsthat Britain is the only market thatfailed to meet its expectations in thefirst half — blaming the “especially difficult economic climate”.

NEW FUND KEEN TO DECANT VINTAGERETURNS  A fund management company inShanghai has become the first inChina to merge the twin passions of the country’s emerging wealthy elite:a bottle of full-bodied premier cru

and eye-watering returns on invest-ments.

PENTAGON EVACUATED AS STRONGEARTHQUAKE RATTLES WASHINGTON  A strong earthquake measuring 5.9struck the US east coast on Tuesday,rattling buildings in downtown Washington and causing evacuationsof buildings as far away as New York. An earthquake of at least 5.9 magni-tude and centred in Virginia shook much of the east coast, being felt asfar as Canada and prompting the evac-uation of buildings in Washington.

LUMINAR DITCHES AUDITOR PWCAMID DEBT TALKS The company said it wanted a “freshaudit relationship”, as the account-ants had been working with it since2003. It had gained approval to re-elect PwC as auditor just six weeks agoat its annual meeting. The company is at a critical point in debt talks with

its lenders, after difficult trading forthe whole of this year.

AMERICAN HURRICANE SET TO CHURNNORTHWARDUS authorities warned yesterday thatHurricane Irene could threaten theentire East Coast, not just the SouthEast, as the powerful storm churnsnorthward in the Atlantic Ocean overthe next several days. Authorities cau-tioned it is difficult to project thepath of a hurricane beyond 48 hours.

WEALTHY FRENCH PUSH FOR EXTRATAX ON RICHFrance's richest woman, who recently ran into trouble for allegedly evadingtaxes, said Tuesday she wished tostand by her country as it is goingthrough hardships, urging the gov-ernment to create a one-time levy onthe nation's most well-off taxpayers.Liliane Bettencourt, along with 15other wealthy individuals, made the

unusual plea for a special though"reasonable" tax.

WHAT THE OTHER PAPERS SAY THIS MORNING

Wealth destruction the new normal

  WEALTH preservation is now thename of the game in the West. Thechallenge, for most people, is not tomake more money: it is to try and pre-serve what they have. Declining equity and property prices, ultra-low interestrates, lowish pay rises, elevated infla-tion and increasing taxes are combin-ing to squeeze nearly everybody. Thisshouldn’t come as a surprise: the UK economy shrank by about six per centduring the recession; and there has  been far too much borrowing fromfuture expected production to fundconsumption today. A country that

produces less (which is what it meansto have a smaller economy) must con-sume less; the value of its land andcompanies will also be worth less.

 There is wealth destruction almost

everywhere one looks. Inflation onthe retail price index is at five percent: the real value of everything isfalling by that amount. Take cash. To beat inflation, a basic rate taxpayerneeds to find a savings account paying5.50 per cent, a 40 per cent taxpayerneeds to find an account paying atleast 7.33 per cent, and somebody pay-ing the 50 per cent tax rate...well, they shouldn’t even bother. Basic rate tax-payers can choose from just eightaccounts that negate the effects of taxand inflation, all of which are fixed-rate ISAs; in the main, it is a disasterfor savers, especially for those whohave cash that is not eligible for taxprotection and who pay higher ratesof tax. Moneyfacts calculates that theeffect of inflation on savings meansthat £10,000 invested five years agoallowing for average interest and tax

at 20 per cent would have the spend-ing power of just £9,374 today.

 Average total pay is increasing at 2.6per cent a year, which translates intoan annual real pay cut of around 2.4

per cent. No wonder an Ipsos Mori pollfor the Resolution Foundation revealsthat just 48 per cent of people in low-to-middle income households havecash left over at the end of eachmonth. Just 27 per cent of these makemonthly savings. The middle classesare also being hammered.

  What about property? Prices inLondon, especially in prime areas, areholding up or even increasing as aresult of global demand frominvestors keen to protect themselvesagainst instability. But across the UK,they are down 0.3 per cent over thepast year – which in real terms is adrop of over five per cent. Residentialproperty in the UK as a whole has fur-ther to fall, especially in real terms;prices have yet to readjust to earnings.

Equities are hardly any better. TheFTSE 100 closed at 5,129.42 yesterday;

its 52-week range has been a miserable4,791-6,105.80. Once adjusting forinflation, returns are even worse thanthe index performance would suggest. This is hammering the middle classes

and those with pension pots. Many individual stocks look cheap; but themarkets are terrified of the possibility of a Eurozone led recession.

 Apart from precious metals (thoughgold tumbled in New York yesterday)the only relative success story has  been gilts: their price has risen as  yields have fallen. But government  bonds are over-valued; that bubble  will burst. And once the effects of inflation are factored in, there is littleto celebrate. Of course, those withdebt are also seeing its real value cut;low rates have also boosted those withfloating rate loans. But the real story for Britain’s asset owners and investorclass is that the ongoing process of  wealth destruction has further to go.It is time for a brutal reality check.

[email protected] Follow me on Twitter: @allisterheath

GREECE could end up using its ownland as collateral for its bailout pack-age as part of plans under discussion between Eurozone governments.

 As Finland threatened to quit the bailout programme if its request forcollateral was turned down, minis-ters considered asking Greece to putup non-cash reserves such as gold,industrial assets and even real estate.

Finland could renege on last week’s

  bilateral deal with Greece that saw the struggling Eurozone nation offerto provide cash collateral forFinland’s part of the support fund.

  A minister in Angela Merkel’sGerman government backed Finland yesterday, saying in a television inter- view: “Several states are making bigefforts to service their debt. This must be honoured.

“But to keep up those efforts in thelong term, collateral is needed,”added Christian Democrat deputy leader Ursula von der Leyen.

BYMARIONDAKERS

EUROZONE▲

Greek collateral needed

DEMAND for migrant workers hasreached a record high as school-leavers lack the skills needed for the workplace, new research says.

One in four employers now plan tohire migrant workers in the thirdquarter of the year, according to theChartered Institute of Personnel andDevelopment (CIPD) quarterly survey.

 Thirty-four per cent of employersare hiring more workers from the EUrather than improving the skills of existing workers (23 per cent) orrecruiting more graduates (18 percent), the study said.

Gerwyn Davies, public policy advis-er at the CIPD, the migration cap iscutting the flow of skilled migrant  workers from outside the EU butincreasing the supply of workers fromthe continent.

School-leaverslack workplaceskills, CIPD says

Greek prime minister George Papandreou could put up the country’s land as collateral

RECRUITMENT▲

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 

Printed by Newsfax International,Beam Reach 5 Business Park,Marsh Way, Rainham, Essex, RM13 8RS

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

Japan’s prime ministerNaoto Kan is set tostep down, with thecountry electing yetanother leader

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 DakersBusiness Features Editor Marc SidwellLifestyle Editor Zoe StrimpelSports Editor Frank DalleresArt Director Craig GaymerPictures Alice HeppleCommercialSales Director Jeremy SlatteryCommercial Director Harry Owen

Head of Distribution Nick Owen

EDITOR’S LETTER

ALLISTER HEATH

Page 3: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 3/28

Credit subject to acceptance. Credit is provided by external finance companies as determined by DFS. 4 years free credit from date of order. Delivery charges apply. DFS may alter or extend promotions

at any time. Mobile charges may apply wh en calling 0800 110 5000. DFS is a division of DFS Trading Ltd. Registered in E ngland and Wales No 01735950. Redhouse Interchange, Doncaster, DN6 7NA.

with 4 years interest free credit 

or pay nothing until Easter 2012

then take 3 years interest free credit

3 seater sofa in 100%

real leather. Available in

a choice of 29 colours

at no extra cost.

THE FINLAY

After Sale Price £1099. 

Save £550

£549HALFPRICE

ON MANY GREAT DESIGNS

Save Time - Order Direct at www.dfs.co.uk or call Free on 0800 110 5000 24 hours a day 7 days a week

SHARES in Bank of America tumbledmore than six per cent during trad-ing yesterday, as the price of insur-ing its debt rocketed to an all-timehigh.

 The spread on the bank’s five-yearcredit default swaps (CDS) climbedto 435 basis points in early trades,meaning it would cost £435,000 a year over five years to insure $10m of BofA debt. The highest the spread onthe bank’s CDS has previously traded

  was in March 2009, when it hit386bp.

Shares fell as low as $6.01 in morn-ing trade, extending losses whichhave seen 34 per cent wiped off theprice so far this month.

 The bank has been hit by resurfac-ing fears that it will not have enoughcapital to cover the cost of mortgagedisputes it is embroiled in.

 At the end of last year, BofA chief executive Brian Moynihan referredto the disputes as “day-to-day, hand-

to-hand combat,” that would contin-ue to dog the bank well into 2011.

 Analysts in the US seem to be splitover BofA’s cash position, withdebate fuelling volatility in theshares throughout yesterday after-noon.

“The market is forcing BAC into acapital raise and the lower stock price goes, the worse it gets,” saidLayla Peruzzi at Jeffries, who esti-mated the bank would need around$40-$50bn (£24-30bn) to maintainminimum regulatory capital levels.

Ex-analyst Henry Blodget – who is

permanently banned from the secu-rities industry after a fraud settle-ment in 2003 – put the amount of cash needed at closer to $200bn.

Bank of America was quick toquash Blodget’s accusations yester-day, calling his claims “exaggeratedand unwarranted”. “We have morethan enough capital to run our busi-ness and run our strategy,” said aspokesman.

Shares in Bank of America closed1.87 per cent down at 630 cents.

Cost to insureBofA debt atrecord highBY ELIZABETH FOURNIER

US BANKING▲

News 3CITYA.M. 24 AUGUST 2011

ANALYSIS l Bank of America Corp

$

23 AugAugJulJun

11

10

9

8

7

6.3023 Aug

ANALYSIS l Price to book value

$

98 00 02 04 06 08 10

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

0.30623 Aug

ANALYSIS l Bank of America CDS

Curve Inversion

Jan 11 Apr 11 Jul 11

600bps

400

300

200

100

Bank of America 1Y CDS

Bank of America 5Y CDS

 Bank of Americachief executive Brian Moynihan

Page 4: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 4/28

 THE EUROZONE economy has contin-ued to grow this month despite esca-lating political turmoil over the debtcrisis, fresh data suggested yesterday.

 A “flash” estimate of activity acrossthe 17-nation single currency areacame held steady at 51.1 in a purchas-ing managers’ index (PMI).

  All figures above 50 point to eco-nomic growth, yet the number “stillpaints a very subdued picture”, saidING’s Martin van Vliet.

 The manufacturing part of the sur-

  vey pointed to contraction in theEurozone-wide industry for the firsttime in two years.

 And investor confidence has plum-meted in recent weeks, a German Zew survey confirmed yesterday.

 The widely-regarded Zew index col-lapsed to -37.6 in the latest analysis,down from -15.1 the previous month.

 The survey’s take on the current eco-nomic situation dropped to an evenmore severe extent, printing 53.5,from 90.6 the previous month.

 The gloomy European data was mir-

rored in China, where a PMI survey showed the manufacturing sector stillin decline.

Factory output came in at 49.8 in  August – although this was animprovement on July’s score of 49.3 in  July. HSBC, which publishes the fig-ures, said the August PMI was consis-tent with manufacturing growth of around 13 per cent from a year earlier.

“We maintain our forecast of a softlanding in growth [for China],” said Ting Lu of BAML.

Eurozone staggers forwards

BRITAIN’S manufacturing sector hasheld up surprisingly well this month,the Confederation of British Industry (CBI) claimed yesterday.

  The CBI survey for August wasnotably more upbeat than otherrecent studies – such as a purchasingmanagers’ index showing the factory sector contracting this summer.

“Manufacturing order books areholding up, and expectations for out-put growth are above their historical

average, although they are less strongthan earlier this year,” said the CBI’sRichard Woolhouse.

  The business group’s industrialtrends survey found a positive balanceof plus one per cent of manufacturersreporting “above normal” orders –  well above the long-term average of minus 18 per cent.

Exports also picked up, according tothe survey. The proportion of Britishfactories recording “above normal”export orders was level with those

reporting “below normal” – animprovement from a negative balanceof minus eight per cent in July, andconsiderably better than the long termaverage of minus 21 per cent.

“But the risks to manufacturingactivity and business confidence haveif anything increased, due to market  volatility and the recalibration of growth expectations worldwide,”  warned Woolhouse. “Concernsaround growth in the US and the euroarea present further challenges to themanufacturing recovery.”

Samuel Tombs of Capital Economics

advised against jumping to any bullishconclusions: “The message of the sur- vey does go against the grain of recentnews on manufacturing, and it hasoccasionally been too upbeat relativeto the official data in the past,” he said.

  The CBI’s figures also contrasted with another negative manufacturingsurvey from across the pond. TheRichmond Federal Reserve’s compositeindex of factory activity in its districtslumped to -10 from -1 in July, itrevealed yesterday.

UK’s factoriesbounced back

this month

Growth in the Eurozone remains sluggish, adding to the problems faced by Angela Merkel and Nicolas Sarkozy Picture: REUTERS

BY JULIAN HARRIS

ECONOMY▲

News4 CITYA.M. 24 AUGUST 2011

EUROZONE ECONOMY▲

Page 5: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 5/28

INVESTORS are pushing for a new 50- year index-linked gilt for UK govern-ment bonds this autumn, it emerged

 yesterday. The Debt Management Office (DMO)

held a quarterly meeting with so-called Gilt-Edged Market Makers(GEMMs) -- primary dealers -- and withgilt investors on Monday to discuss itsissuance plans for the next threemonths.

 The 50-year note was the most popu-lar choice for October and November,although the minutes also revealedsupport for a 30-year conventional gilt,dated either 2041 or 2043, and for a 40-

 year gilt maturing in 2052.Meanwhile, strong demand for safe

havens saw yields on American two- year Treasury notes drop to an all-timelow yesterday. Yields on two-years sank to 0.22 per cent, officials said.

In Spain, average yields on the three-month bill yesterday touched theirlowest since March at 1.357 per cent --although the yield remained a long

 way above levels of around 0.3 per centpaid prior to the Eurozone debt crisis.

Spain’s Treasury saw solid demandfor a short-term T-bill sale in yester-day’s auction, supported by theEuropean Central Bank’s bond-buyingprogramme.

Prime minister Jose Luis RodriguezZapatero yesterday announced plansto put a constitutional cap on govern-ment debt before elections inNovember, in a bid to prove it has itsfinances under control.

Investors askfor 50-yr giltBY JULIAN HARRIS

ECONOMY▲

News 5CITYA.M. 24 AUGUST 2011

How is Europe handling the crisis?

In association withPoliticsHome.com

Apply to join today atwww.cityam.com/panel

This week, we are asking our readers’panel, run in association with PoliticsHome, to rate Europe’s strategy fordealing with the debt crisis.Should Eurozone leaders be pushingfor a break-up of the single currency,

or working towards closer fiscal inte-gration? And which leaders, if any,have impressed you during the crisis?

To answer these questions, applyto join at www.cityam.com/panel.Full T&Cs available on request.

PoliticsHome.comPoliticsHome.com

In partnership with

NEWS | IN BRIEF

Weak demand holding back lending, banks sayGross mortgage lending stagnated in July, the British BankingAssociation (BBA) said yesterday. The BBA reported £7.6bn inlending, the same level as in June – and slightly below the six-month average of £7.8bn. Net loan and overdraft lending alsoremained sluggish, coming in at minus £200m; net lending tonon-financial companies was flat. “Demand for borrowing fromboth households and companies continues to be weak reflect-

ing the slow growth in the economy,” the BBA said.

US housing market remains in the doldrumsSales of new single-family houses in the US fell more thanexpected in July to hit a five month low according to a reportreleased by the Commerce Department yesterday. The reportshowed that new home sales for July slipped 0.7 per cent fromthe revised June rate of 300,000 to 298,000. Compared toJuly of 2010, however, the new home sales rate was up by 6.8per cent in July. The median price for a new home sold in July2011 was £134,480, down about 5.5 per cent from June but up8.8 per cent from 12 months earlier.

Denmark to expand government spendingDenmark's centre-right government is set to attempt a fiscalstimulus package, it announced yesterday. In a bid to revive aneconomy mired in recession, and to address fears of a sputter-ing real estate market, the government said it hopes a 10.8bnDanish crown injection will boost growth rates from next year.

Huge drop in consumer confidence in the Eurozone

Consumer confidence in the Eurozone has dropped at i tssharpest rate since the default of Lehman Brothers inSeptember 2008, according to new data from the EuropeanCommission. The initial estimate of high street morale acrossthe single currency area came in at -16.6, down from -11.2 inJuly. Consumer confidence also dipped across the widerEuropean Union area – down to -16.8 from -12.4 in July 2011.

Strong Norwegian GDP growth in second quarterNorway’s mainland economy grew by one per cent in the threemonths to June, compared to the first quarter of the year, offi-cial data revealed yesterday.

¤

Mar Apr Jul

4.9923 Aug6.5

6

5.5

5

May Jun Aug

$

Mar Apr Jul

2.123 Aug3.4

3.2

3.0

2.8

2.6

2.4

2.2

May Jun Aug

£

Mar Apr Jul

2.3823 Aug3.6

3.4

3.2

3.0

2.8

2.6

2.4

May Jun Aug

STILL SINKING | YIELDS ON GOVERNMENT BONDS FELL FURTHER

Spanish 10-year notes

US 10-year Treasury notes

UK 10-year gilts

Page 6: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 6/28

Page 7: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 7/28

SWITZERLAND’S biggest bank UBS became the latest major global bank to announce swingeing job cuts yes-terday as it set out the detail of a 2bnSwiss franc (£1.5bn) cost-cutting plan.

UBS said it would cut 3,500 jobs,about five per cent of its global work-force, by the end of 2013 as it copes with falling revenues, growing regula-tory limits on its business and painfrom the strong Swiss currency.

 Almost half of the job losses will be

felt in its investment bank, which has been hit hardest by the downturn inthe global economy.

London is also likely to bear many of the job cuts as a major investment banking centre. City A.M. understandsabout 300 jobs are likely to be lost inthe City out of about 1,575 from theinvestment bank globally.

“The measures announced today are designed to improve operatingefficiency. UBS will continue to be vig-ilant in managing its cost base while

remaining committed to investing ingrowth areas,” it said in a statement.

Nearly 1,600 jobs will be lost fromits wealth management arms inSwitzerland and the Americas, while350 will go from its global asset man-agement division.

UBS said the cuts would cost about550m francs to implement, with most borne in the second half of the year.

“The emphasis on scaling back harder in investment banking than  wealth management recognises  where the value in the group lies,”said Collins Stewart analyst Matthew 

Czepliewicz.

UBS slashes3,500 jobs toshrink costsBYALISON LOCK

BANKING▲

News 7CITYA.M. 24 AUGUST 2011

ANALYSIS l UBS

$

Jun Jul Aug

16

17

19

18

15

14

13.8823 Aug

CITY VIEWS: DO YOU THINK JOB SECURITY IN THE CITY IS GETTING WEAKER?Interviews by Phoebe Torrance and Lydia Ellis

“Probably yes, I think companies arereluctant to hire and are usingagencies a lot more. With the debtand share prices down it’s not agreat environment for many indus-tries hiring.”

PAUL POLEVION | CST

“People working in the Cityaren't worried, companies arebeing very strategic by con-tinuously keeping people onwho add value and makingcuts where necessary.”

RHYS EVANS | DEVONSHIRE LTD

“In general there are only certain markets that are being hit harder but not necessarily gettingweaker. I think it is a lot harder to get a job in the City now but more secure when you have a jobthan it was a couple of years ago.”

MATTHEW WATSON | NOVAE GROUP

l l ANALYSIS l Bank job cuts announced so far this year

 3 0, 0 0 0 15, 0 0 0 6, 0 0 0 3,5 0 0 3, 0 0 0 2, 0 0 0 2, 0 0 0 1, 0 0 0

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

Page 8: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 8/28

RETAIL businesses hit by the UK riots lost more than 7,500 tradinghours during the disruption,according to a survey by the BritishRetail Consortium (BRC).

  A total of 7,599 lost tradinghours were reported by the body’sretail members, whose stores makeup more than a quarter of the UK sector by sales.

  That’s the equivalent of morethan two-and-a-half years of trad-ing, based on an eight-hour aver-age day.

 The cost of cleaning up areas of the UK hit by rioting and looting atthe beginning of August has beenestimated at around £200m,though the eventual bill could bemuch higher as some businessesremain closed.

 As part of a package to supportretailers, the government has

announced that a fund of £30m  will be made available to repairhigh streets, and an extra 28 days

  will be allowed for businesses toclaim for damages they have suf-fered.

 The survey also found that morethan 11,000 members of staff atshops had been affected by the vio-lence, with many reluctant toreturn to retail positions having

  been inside shops that wereattacked.

Drivers don’t believe there is traffic ahead until they see it with

their own eyes. Garmin’s new 3D Traffic with PhotoLive Cameras

on a LIVE nüLink sat nav means seeing is believing.

garmin.co.uk/nulink

SEE THE TRAFFICBEFORE YOU SEE THE TRAFFIC

Live nüLink! 2320 | 2340 | 2390

Live nüLink services are included for one year; Live 3D Traffic includes a free 30-day trial of PhotoLive cameras;

some apps such as fuel prices require subscription fee; terms and conditions apply.

Riot-hit shops lost morethan 7,500 trading hoursBY ELIZABETH FOURNIER

RETAIL▲

News8 CITYA.M. 24 AUGUST 2011

MORE NEWSONLINE

www.cityam.com

STANDARD and Poor’s presidentDeven Sharma yesterday announced that he would leave theratings agency.

In a move described as having“nothing to do with the reactionto the US credit downgrading”,Sharma will stand down nextmonth to pursue otheropportunities.

  The president of four  years has always had arebellious streak, and hasfaced accusations of incon-sistencies in S&P’s ratings.

It was under

Sharma’s watch that S&P gave top

ratings to numerous mortgage-  backed securities, which the US Justice Department said last week it  will investigate as part of a probeinto the company’s role in thefinancial crisis.

Douglas Peterson, who is current-ly chief operating officer

at Citibank, will replaceSharma from 12September.

Peterson has been  with Citi for 25  years, working in  Japan, Costa Rica

and Uruguay and asa corporate banker in

New York and Argentina.

He holds anMBA from the W h a r t o n  b u s i n e s s

school.

S&P president leavesafter US downgrade

BY LYDIA ELLIS & MARION DAKERS

PROFILE▲

DEVEN SHARMA

Page 9: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 9/28

SECURITY group G4S has unveiled aplan to make half of its annual rev-enues from emerging markets by 2018.

  The FTSE 100 company, whoseoperations include airport security, isto start the process with a £200minvestment, which could includesome acquisitions. G4S also reporteda five per cent increase in half-yearprofits from £142m to £149m.

  The group said it aimed to boostrevenues from emerging marketsfrom the current 29 per cent to atleast half of its total turnover by 2018.

Chief executive Nick Buckles said:“We would be focusing a chunk of our acquisition spend on new mar-kets, so we are currently looking atplaces such as Brazil, Ecuador, Thailand, Malaysia and South Korea.”

G4S, which is Europe’s biggest pri-  vate sector employer with 625,000staff, said that half-year revenues

from emerging markets rose to£910m, up from £818m in the sameperiod last year.

Brazil will require major security measures at the 2014 World Cup and2016 Olympics, with G4S looking fora chunk of that business. The compa-ny already has won the contracts forthe London 2012 games.

G4S said on UK government con-tracts: “We expect that to pick up by the end of the year.”

Shares in G4S surged 8.5 per cent yesterday to close at 264.4p.

G4S focuseson emergingmarket gains   TAKEOVER target Ch

International saw its shares bouncemore than 18 per cent yesterday as itsaid it was in talks with a secondpotential bidder.

Charter has rejected two offersfrom investment group Melrose, thehighest valuing it at £1.4bn, as too low.But it said it had started talks withanother bidder likely to put in a rivaloffer, in a clear indication it washappy to sell the business.

“The company confirms that it is indiscussions with a potential offerorother than Melrose regarding a possi-  ble offer for the company,” Chartersaid in a statement.

  The move turns up the heat onMelrose, which has said it requiresaccess to Charter’s books before itcould consider raising its 840p per

share offer. Analysts expect bids toreach about 900p per share beforeCharter’s board would sell.

Lincoln Electric, the world’s biggest welder, had been seen as a potential buyer due to its interest in Charter’s welding tools division ESAB, the worldnumber two, but is understood not to be the company in talks with Charter.

  The world’s third-biggest welder,Illinois Tool Works, may also be keen.

Lincoln made and then withdrew a500p offer for Charter in 2000.

New bidder forCharter as saletalks heat up

Chief exec Nick Buckles wants to move into new markets Picture: REUTERS

BY JOHN DUNNE

SUPPORT SERVICES▲

ENGINEERING▲

NewsCITYA.M. 24 AUGUST 2011 9

ANALYSIS l G4S

p

Jun Jul Aug

250

260

290

280

270

240

230

264.4023 Aug

Safe stock for scary timesRiots on the streets on London, riotson the streets of Birmingham –riots just about everywhere. Prisonsare filling up; magistrates courtsare working through the night. Formost firms, a less safe world is badnews, but not so for G4S, the securi-ty giant formed from the merger of Securicor and G4 in 2004.

 Yesterday, it reported a strong set

of first half results, with pre-taxprofits of £149m and revenues of £3.76bn both ahead of expectations.  With more prisoners to transportand a heightened state of security for firms, both in response tounrest and the forthcomingOlympics, G4S is unsurprisingly upbeat about the future.

Investing in equities is also arisky business these days, but G4Sshares are a safe bet. The firm offers

the kind of defensiveness you’dexpect from a utility, along withthe kinds of growth prospects you wouldn't.

Its new markets division, whichcovers China, the Middle East andIndia, grew organic revenues by nine per cent in the first half, forexample, compared to growth of three per cent in developed mar-

kets. New markets now representsome 29 per cent of turnover andmanagement have set a target of eventually earning half of revenuesfrom these countries.

  Analysts at BNP yesterday saidthe shares were at least 60p toocheap. A safe stock for scary times.

BOTTOMLINEAnalysis by David Crow

Page 10: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 10/28

GOODMANSRAISES THE

STEAKS INMAYFAIRCONTINUING the theme of the boom inthe City’s resurgent restaurant scene, asreported yesterday, The Capitalist  hearssteakhouse Goodmans is plotting not one

 but two launches for November.One is a traditional Goodmans restau-

rant on the South Quay at Canary Wharf to complement the City and Mayfair ven-ues. The other marks a new direction forthe independent restaurant groupmajority-owned by Russian entrepreneurMikhail Zelman: Goodman Restaurantshas paid a “substantial premium” for aleasehold on the former pub The Field at29 Clarges Street.

“In a completely off-market deal,

Goodmans moved quickly to secure thissite ahead of other operators,” saidNathan Wogman at agents Shelley Sandzer. “The fact a substantial premium

  was paid underlines the strength of theCentral London restaurant market.”

“We are going to surprise Mayfair in agood way,” added George Bukhov-

  Weinstein, director of GoodmanRestaurants UK, as he starts recruitingstaff for the “lively venue” – to be calledBurger and Lobster – that will have justtwo things on its menu.

industry in the run-up to the IndependentCommission on Banking report.

 The blog is a “brief series of entries”on each of the 11 working days leadingup to the report’s publication on 12September – and, just three days in,Knight is off to a racing start.

Day one: an overview of the objectivesof the banking reform programme. Day two: an exposition of why the bankingindustry remains “concerned”. And thismorning: an argument about “thepotentially serious adverse conse-quences” of a retail ring fence.

Stirring stuff – well, Knight does warnreaders the discussion on banking

remains “very emotional”.

LAW AND ORDERIT HAS been an eventful month for theCity, but one of the few upsides is “arevitalised sense of community”, saidEximius CEO Nick Stevens, who ismobilising donations for the supportservices who risked their lives to con-trol the civil unrest. See www.justgiv-ing.com/eximiusgroup to add to the£2,150 raised so far.

No prizes for guessing what those twodishes are – although the tank of live lob-sters in the basement might be a give-away; the “restaurant with a big bar” alsoplans to serve the cheapest champagne inMayfair. Although it’s all relative in W1…

DESIGNER BAG LADY  THE DESIGNER bag world has already  brought us the Kelly and the Birkin; nexton every City executive’s wish-list will be“the Middleton”, as Pippa Middleton fol-lows Grace Kelly and Jane Birkin to

 become the latest designer bag lady.Middleton (right) was sent a tan design

  by Charlotte Lamb, an associate at aMagic Circle law firm who combinesfinance law with running her new hand-

  bag business, launched in April afterLamb struggled to find “stylish quality handbags at affordable prices”.

Lamb sent a bag to Middleton, a“friend of a friend” of the designer,and the marketing coup was com-

plete when the fashion influencer  was spotted on the streets of London clutching her free gift. Forthe record, Middleton did write tosay thank you.

KNIGHT’S RIDER A NEW BLOG from Angela Knight,the chief executive of the BritishBankers’ Association, who hasstarted posting daily updates onthe issues facing the banking

 Lobster pot: Goodmans’ new surf and turf restaurant will surprise Mayfair locals in a good way

SteakhouseGoodmanshas paid a

premium toturn The Fieldin Mayfairinto Lobsterand Burger

The Capitalist10

EDITED BYHARRIET DENNYSGot A Story? [email protected] The Capitaliston Twitter: @citycapitalist

CITYA.M. 24 AUGUST 2011

 Emotional: BBA chief executive Angela Knight 

| PROMOTION

FREE RUSSIAN ROSE MARTINI FOREVERY READER AT THE DRIFT BAR

Offer limited to one voucher per reader, per visit. No photocopies. Drinks offered are subject to change/availability.Management reserves the right to withdraw the offer at any time. Over 18’s only.

From the team that brought you The Folly and The Anthologist, the driftin Heron Tower onBishopsgate is a stunningnew bar and restaurant,open from breakfastthrough to lunchand dinner.

 To celebrate their opening,they are inviting City A.M.readers to enjoy a fabulouscocktail on the house. Drop

 by from 12 noon to close onMonday to Thursday this

 week to claim a RussianRose Martini, which has

 been expertly crafted usingSmirnoff Black vodka,stirred with lychee liqueurand ginger syrup andgarnished with a rose petal.

the drift, 110 Bishopsgate, London, EC2N 4AY 

 www.thedriftbar.co.uk 

 T: 0845 468 0103. E: [email protected] 

 This voucher entitles every City A.M. reader to acomplimentary Russian Rose Martini.

 Valid from 12 noon to 11pm until Thursday 28 July 2011.

Name ...........................................................................

Email.............................................................................

Mobile...........................................................................

FREE

FREE SKINNY HONEY PASSION COCKTAIL FOR

EVERY READER AT THE ANTHOLOGIST BARLocated in the heart of theCity, The Anthologist offers aseasonal all day menu, winesfrom across the globe, skinnycocktails, a mixology table, deli,two cocktail lounges, a privateroom complete with 1950’skitchen and an alfrescoterrace.

The Anthologist is invitingreaders to enjoy a fabulouscocktail on the house, in sup-port of the London BeeFestival. Drop by from 12 noonto close on Wednesday toFriday this week to claim aSkinny Honey Passion cocktail,

which has been expertly craft-ed using Pommery Brut cham-pagne, spun with fresh passionfruit and London honey water.

The Anthologist, 58 Gresham Street, London, EC2V 7BBwww.theanthologistbar.co.ukT:0845 468 0101 E: [email protected]

| PROMOTION

This voucher entitles every City A.M. reader to acomplimentary Skinny Honey Passion cocktail. Validfrom 12 noon to 11pm until Friday 26 August 2011

   P   i  c   t  u  r  e  :   R   E   X

Page 11: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 11/28

FRANCE’S number two bank SocieteGenerale has bucked the downwardtrend hitting many City brokers by snapping up an equities team fromits rival Evolution Securities.

SocGen, which employs about2,300 people in the UK, hiredEvolution’s four-man former con-sumer research and sales team head-ed by Warren Ackerman, a food,home and personal care analyst.

 The other hires are analysts Andrew Holland and Chas Manso de Zuniga,on beverage research and householdand personal care respectively, and

sales director Jamie Norman. All four left Evolution in May as the

  brokerage shed about 30 of its 200staff to cut costs in the face of fallingrevenues and rising fixed costs.

  The four were originally hired by Evolution in 2009 when it took onabout 60 staff from former Germaninvestment bank Dresdner Kleinwort.

  The three analysts will report toSocGen’s head of equity researchMatthew Jordan, also formerly of Dresdner Kleinwort. Norman will

 work under SocGen’s head of special-ist sales Paul Jackson.

SocGen bucksbroking slump

with Evo hiresBYALISON LOCK

FINANCIAL SERVICES▲

News 11CITYA.M. 24 AUGUST 2011

 BP has now paidout more than$5bn to 204,434victims of last  year’s massive Gulf of Mexico oil spill, fund administra- tor Kenneth

 Feinberg said yes- terday. The payouts amount toroughly 25 per cent of the $20bn fund,known as the Gulf Coast Claims Facility, which wasset up a year ago following the April 2010 spill.

 Picture: GETTY 

ANALYSIS l Societe Generale

Jun Jul Aug

30

40

35

25

21.0023 Aug

BP PAYS OUT $5BN IN GULF COMPENSATION

Page 12: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 12/28

RACHAEL WARING | PANMURE GORDON

Persimmon delivered a confident but prudent presentation at today’sanalysts meeting. In our v iew, despite ongoing challenging market conditions, thegroup will continue to deliver increased profitability, primarily driven by improvingnet margins... though our 2012 forecasts remain conservative for now.

PERSIMMON saw a pickup in sum-mer sales and enjoyed a surge in firsthalf pre-tax profits as the UK’s thirdlargest housebuilder improved itsoperating margins and clampeddown on development costs.

  The York-based company, whose brands include Charles Church and  Westbury, made an underlying pre-tax profit of £59.7m in the sixmonths to the end of June, up 52 percent on the previous year.

Chief executive Mike Farley said aslightly stronger market in its north-ern business helped boost sales in thelast eight weeks by four per cent,

 while its total order book is now 10per cent ahead of last year at £1bn.

 This comes after a slowdown in thefirst half of the year when the num-

 ber of new homes sold fell to 4,439from 4,657 the previous year.

  The average selling price alsodecreased to £162,647 from £168,936in the first half of 2010 but

Persimmon said the figure shouldimprove due to a mix of larger pri-

  vate homes on its order book goingforward.

Farley said the housing market“remains stable” helped by constantprices but would continue to be chal-lenging due to the overall economicsituation.

  The company will pay an interimdividend of 4p a share, up from 3p a

 year earlier.Persimmon’s shares climbed 3.4

per cent to 396p last night.

Persimmonprofits surgeand costs fall SEGRO’s net asset value inched for-

  ward in the first half of the year while pre-tax profits halved, as theindustrial landlord continued to

  weather tough conditions in theEuropean industrial property mar-kets.

Pre-tax profit fell to £64.6m from£148.9m a year earlier, while netasset value per share was up by onepence to 377p for the six months tothe end of June, the company said ina statement yesterday.

Chief executive David Sleath said:“Against a backdrop of slowly recover-ing occupier markets, our key priori-ty has remained operational delivery,focused on customer retention, leas-ing, cost control and pre-let develop-ment.”

 The company, strongly focused on

the UK market and in particulararound Heathrow airport, said the

 vacancy rate across its portfolio fell to11.4 per cent at 30 June, from 14 percent a year earlier, as fewer cus-tomers returned unwanted space.

 That contributed to a gain in like-for-like net rental income of 5.1 percent.

Segro, which has been the worstperformer among the retail invest-ment trusts over the past month,rose 2.68 per cent to 244.9p yesterday.

Segro earningsslump despiteimproving rents

Chief exec Mike Farley said the housing market remained challenging Picture: GETTY 

BYKASMIRA JEFFORD

CONSTRUCTION▲

CONSTRUCTION▲

News12 CITYA.M. 24 AUGUST 2011

ANALYSIS l Persimmon

p

Jun Jul Aug

420

440

500

480

460

400

380

396.0023 Aug

HOW WERE PERSIMMON’S RESULTS? by Kasmira Jefford

CHRIS MILLINGTON | NUMIS

Persimmon's results are better than expected mainly due to a lower thanexpected finance charge. With the sharp fall in the share price in the last couple of weeks and progress in the net asset value, the company is trading on 0.72x tangibleNAV, which is low given we forecast ROCEto hit double digit levels in 2012.

SIMON BROWN | NORTHLAND CAPITAL

The run of improving margins through self-help is seen continuing well into2012 as more higher-margin sites replace old underperforming outlets. The consensusforecast predicts around £129m pre-tax for the year up from 2010’s £91m. There is areal opportunity now for Persimmon to demonstrate its land potential.

Page 13: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 13/28

RECRUITMENT agency Hays wasforced to apologise to banking giantRBS yesterday after one of its staff mistakenly emailed out the rates it was paying its temporary staff.

 The email included the salaries of about 3,000 contract staff and wassent to about 800 RBS temps afterthe wrong attachment was inadver-tently used, a source confirmed toCity A.M.

Some of the salaries shown wereup to £2,000 per day.

RBS had no part in the error andsaid it was “extremely disappointedthat confidential personnel datahas been shared”.

“This is unacceptable and we aretaking action to address this issue,”it said it a statement.

Hays said no bank account or

national insurance numbers had been sent. “Hays recognises that thecorrect treatment of data is of theutmost importance and has apolo-gised to RBS for this error,” it said.

Hays says sorryafter it revealedRBS pay figures

BANKING▲

News 13CITYA.M. 24 AUGUST 2011

LONDON & STAMFORD SEALS £100M FINANCING

 London & Stamford, the property investor, said it has completed the £100mrefinancing withSantander Corporate

 Banking and DekaBankagainst a number of itsCity of London office assets

acquired over the past three years. The property compa- ny, which moved from

 London’s junior Alternative Investment Market to themain board last October,was set up 2007 to invest incut-price UK commercial

 property opportunitiesthrown up by the global

 financial crisis. It was thebrainchild of veteran realestate entrepreneurs PatrickVaughan, Humphrey Priceand Raymond Mould. The

 group has refinancedagainst office buildings at One Fleet Place (pictured)and One Carter Lane,which it bought in January

 2009 and April 2011 respec- tively. In May, the companyannounced it had lined up

a £1bn war chest for new acquisitions in London’s res- idential market.

 @

MORE NEWSONLINE

www.cityam.com

UK COMMERCIAL Property Trust, thelargest UK-focused trust of its kind,has announced a slight decline in itsnet asset value per share in the firsthalf of 2011 to 76.9p, from 77p in theprevious six months, as a slow eco-nomic recovery continued to take itstoll.

In its half-year results the trust saidthat the value of its property portfo-lio increased by 1.4 per cent to£1.014bn, delivering a total net asset

 value return of 3.3 per cent.  Total income for the half year

slumped to £39.66m from £64.4m a year ago, offset in part by fourteennew lettings in the period creating£1.4m of annualised income.

Chairman Chris Hill said despiteongoing challenges in the macroeco-nomic environment, the trustremained positive about the long-term outlook for commercial proper-ty, helped by demand from overseasinvestors for prime and London prop-erties.

“With the new debt facility now inplace, the company is well positionedto enhance its income and capitalreturns through selective acquisi-tions and asset management initia-tives,” he said.

UKCPT made two acquisitions in

the first half – the St. George’s RetailPark in Leicester for £49.9m and theRotunda Leisure Complex inKingston upon Thames.

“These two prime properties addover £6m of annualised revenue andalso present us with further opportu-nities to enhance returns throughasset management, typifying thetype of acquisitions we are currently seeking,” said Hill.

  The group also reduced its voidrate excluding pre-lets at June to 3.6per cent compared to industry aver-age of 8.6 per cent.

It has also secured a fresh £150m borrowing facility, taking its gearingup to 10.2 per cent.

Shares in the firm, which triedunsuccessfully to merge with a

 branch of F&C’s property operationslast summer, closed up 1.58 per centat 80.25p yesterday.

UKCPT profitand net assetvalues slideBYKASMIRA JEFFORD

PROPERTY▲

ANALYSIS l UK CommercialProperty Trust Ltd

p

Jun Jul Aug

85.00

82.50

80.00

77.50

75.00

72.50

70.00

79.5023 Aug

Page 14: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 14/28

 THE spotlight yesterday fell back ontoDavid Cameron’s relationship with  Andy Coulson after it emerged theformer News of the World editorfailed to disclose regular severancepayments from News Corp whileadvising the Tory leader.

It is understood Coulson, who wasarrested earlier this year on suspicionof being involved in phone hacking,

received several hundred thousandpounds from the Murdoch empire aspart of a severance package that ranin installments until the end of 2007.

  While payments of this kind arenot uncommon, Coulson had deniedreceiving any other income when he worked for the Tories during a parlia-mentary committee hearing in 2009.

  A spokesman for the Tories saidsenior party officials had not knownabout the severance arrangements.

Labour jumped on the issue, call-

ing for greater transparency overCameron’s relationship with Coulsonand ties to Rupert Murdoch.

Cameron has said he regretsappointing Coulson and will apolo-gise to parliament if it emerges helied over his knowledge of phonehacking.

Downing Street declined to com-ment but noted that the eventsoccurred before Cameron becamePrime Minister. A News Corpspokesman declined to comment.

To discover, search 'Samsung Galaxy Tab'

Amazingly thin, fast and light. With Android™

3.1 and Adobe® Flash® Player. It’s the tablet

that’s changing the tablet. Welcome to more

possibilities on the go.

IT’S TIME FOR THE SAMSUNG GALAXY TAB

IT’S TIME FOR

A BETTER

Android Market, YouTube, Google Maps, Google Talk are

trademarks of Google, Inc. Adobe and Flash are either

registered trademarks or trademarks of Adobe Systems.

Coulson paid by Murdochwhile working for ToriesBY STEVE DINNEENMEDIA▲

News14 CITYA.M. 24 AUGUST 2011

 Andy Coulson’s relationship with Cameron was back in the spotlight last night 

Page 15: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 15/28

DAILY Mail publisher DMGT hasagreed to sell its US-focused events business George Little Management(GLM) to private equity outfitProvidence Equity Partners in a deal worth £106m.

DMGT says it will receive £90m incash, which it will use to reduce debt,and will take the remainder in theform of an interest-bearing note.

Barring any regulatory hurdles, thedeal will close by the end of September.

GLM runs 15 major US events,including the New York InternationalGift Fair. Its events attract around150,000 visitors a year.

 The sale to the media-focused pri-  vate equity firm follows a strategicreview of the company launched in June.

Providence will purchase GLMthrough a new holding company led  by Charles McCurdy, who mostrecently served as chief executive of 

Canon Communications.Providence managing director

Michael Dominguez said: “We believethere are significant opportunities togrow GLM’s tradeshow brands in theUS and internationally both organi-cally and through acquisition, as wellas to develop exciting new digital anddata services.”

Last month DMGT, which earnsmost of its money from its business-to-business operations, reported animproved outlook for its nationalnewspaper division, with the declinein advertising revenue slowing.

DMGT to net£106m from

GLM unit sale

Investors chance their ARM

DON’T MISSTHE BESTHORSES. JOCKEYS. RACING  ASCOT RACECOURSE

SATURDAY 15TH OCTOBER 2011

QIPCO BRITISH CHAMPIONS DAY

TICKETS FROM £26

FINE DINING PACKAGES FROM £265PP

GROUP AND ADVANCE BOOKING

DISCOUNTS AVAILABLE. BOOK NOW AT

WWW.BRITISHCHAMPIONSSERIES.COM 

OR CALL 0870 727 1234

SHARES in chip designer ARMHoldings continued to creep up yes-

terday as investors eyed further con-solidation in the technology sector.It has been buoyed by HP’s shock 

$10.2bn (£6.2bn) deal to buy UK soft- ware firm Autonomy. Intel, which has been out-manoeuvred by ARM in themobile chip market, has been persist-ently linked to the firm.

  ARM’s most high-profile client Apple, which uses ARM chips in its

iPhone and iPad products and has agigantic cash pile behind it, is alsoseen as a potential suitor.

However, ARM chief executive Warren East has warned a takeover

 would be difficult without devaluingthe firm.  ARM, whose technology is also

used by firms including Samsung,Qualcomm and Texas Instruments,last month reported a 25 per cent risein quarterly profit but warned it isnot counting on a Christmas sales boom.

 The group was among the top five

risers in the FTSE 100 yesterday, gain-ing 4.5 per cent to close at 514p.

BY STEVE DINNEEN

MEDIA▲

BY STEVE DINNEEN

TECHNOLOGY▲

News 15CITYA.M. 24 AUGUST 2011

ANALYSIS l Daily Mail and General Trust

p

Jun Jul Aug

380

360

420

400

460

480

440

386.7023 Aug

ANALYSIS l ARM Holdings

p

Jun Jul Aug

500

600

550

450

514.00

23 Aug

LORD Bell’s Chime Communicationssaw its shares slump more than fiveper cent yesterday despite its pre-taxprofits surging 15 per cent.

  The PR outfit was boosted bystrong growth in its sports marketingand advertising divisions.

Bell, who is a former media adviserto Margaret Thatcher, expects 2012 to be a good year for the firm in termsof sport and sponsorship, with oppor-tunities arising from the OlympicGames.

  The firm also expects to benefitfrom the political upheaval in theMiddle East. It is currently working  with the National TransitionaCouncil in Libya, as well as the gov-ernments of Bahrain and Yemen.

Revenue from its sports market-ing division was up 62 per cent in itsfirst half. Pre-tax profit was £14.2m,compared with £12.3m a year ago.Revenue rose 13 per cent to£153.4m.

Shares in Chime have fallen by athird since its high of 300p each inMay, to 201p last night.

Chime profits jump by 15pc

MEDIA▲

DMGT opted for boutique financialadvisor The Jordan, Edmiston Groupto guide it through the transaction.

The New York investment bank spe-cialises in media, communications andmarketing deals, recently advisingAdJug in its takeover by digital mar-keting firm IgnitionOne and Big Fuel inits sale of a majority stake to French

firm Publicis Groupe.The Jordan, Edmiston Group was

founded and is still run by WilmaJordan. Since its inception in 1987 ithas advised on more than 500 trans-actions.

Jordan shot to prominence whenshe participated in the sale of EsquireMagazine Group, in which DMGT wasa shareholder.

She also serves as a director of magazine publisher Guideposts andwas formerly on the board of inde-pendent Nasdaq-listed Lin Television.She is also a director at magazinepublisher Guideposts.

ADVISER: THE JORDAN, EDMISTON GROUP

WILMA JORDAN

FOUNDER

 DMGT chief executive Martin Morgan ordered a strategic review of GLM in June

● Google and Apple have both tightenedtheir grip on the smartphone market, atthe expense of struggling rivals RIM andMicrosoft. Android handsets represented57 per cent of the market in the last quar-ter, up from a third last year, according tomarket research firm NPD Group. Applealso consolidated its position, taking anadditional seven per cent of the total mar-

ket share to command 29 per cent.Canadian BlackBerry-maker RIM was thebiggest loser, seeing its market share fallfrom 28 per cent to just 11 per cent.Microsoft’s failure to set the market alightwas highlighted once again, with itsWindows Phone 7 platform making up just one per cent and its supercededWindows Mobile just four per cent.

● Google is preparing to deploy its newlyacquired patents against Apple as theCold War-style arms race continues tohot up. Google is understood to haveidentified 18 patents it can turn againstApple from the portfolio of 17,000 itacquired from Motorola earlier thismonth.

Meanwhile, Apple is understood tohave begun manufacturing a lower-priced version of its iPhone 4 featuringless storage space and aimed at the mid-dle market. Suppliers say the 8GB iPhone4 is being manufactured by a Koreancompany. Industry insiders say Apple istargeting an end-September launch forits next-generation iPhone 5.

SMARTPHONE ROUNDUP

Lord Bell, a formeradviser to MargaretThatcher, expects2012 to be a goodyear for Chime

Page 16: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 16/28

CHILEAN copper miner Antofagastadoubled its half-year dividend yester-day after a 54 per cent jump in earn-ings, confident that strong demandin China and a pickup in Japan andthe United States would help under-pin volatile copper prices.

Copper is down over 10 per centthis month, as investors grow uneasy about economic recovery prospectsand China’s outlook.

London-listed Antofagasta – whichhas been hit by production setbacksand, along with rivals, is sufferingfrom higher costs and volatility – said yesterday that prices for the red metal were likely to remain “volatile withdownside risks”, but it was well-placed to weather the storm.

“While markets are likely toremain volatile, especially in the near-term, we remain confident that cop-per fundamentals will remainsupportive of a strong pricing envi-ronment,” chief executive Marcelo Awad said.

 Antofagasta said Chinese demandhad remained strong over the periodand saw it recovering demand in Japan and the US. It also pointed to an

underperforming supply side, hit by strikes and declines in ore grades,technical failures, the slow ramp-upof new projects and bad weather.

  The group, which also producesgold and molybdenum, used in steelalloys, said fundamentals would con-tinue to support these metals, withgood demand, low stock levels andlimited new supply fuelling a recov-ery for molybdenum in the secondhalf.

Net earnings rose to $696.2m(£422m) over the period, within therange of analysts’ forecasts, on rev-enues of $3.05bn, up over 73 per cent. The group doubled its interim divi-dend to 8 cents per share, aboveexpectations, but did not repeat itsMarch special dividend sweetener.

ENERGY services firm John WoodGroup raised its interim dividend andgave an upbeat outlook on 2011, withits oil exploration customers expectedto increase their spending.

Earnings before interest, tax andamortisation were $192m (£116m) inthe six months to 30 June, the compa-ny said yesterday, up 25 per cent from

a year ago. Sales rose 17 per cent to$2.8bn.

  Wood Group, led by AllisterLanglands (pictured), builds oil andgas facilities, constructs pipelines. The firm said it continued to seegood momentum despite mar-ket volatility.

“The longer term fundamen-tals for oil and gas develop-ment and production, and gasfired power generation remainstrong. Reflecting continu-ing confidence in our

longer term outlook, we have declared a 15

per cent increase in the interim divi-dend,” it said.

 The company, which in May said it would return $1.7bn to sharehold-

ers following the disposal of its well support unit, said it plannedto pay an interim dividend of 3.9cents.

 Wood, whose customers includeBP and Royal Dutch Shell, said

market conditions con-tinued to improve. Its

shares closed up 4.6per cent.

Wood Group upbeat as oil explorersraise spending and markets improve

BRITAIN’S biggest coal company UK Coal has posted its first profit for four  years, but the group’s debt levelsremain a concern.

Pre-tax profits at UK Coal were£22.2m, up from a loss of £92m last year.

Revenue also rose, increasing from£141m to £256m over the same period.

But the group’s net debt remained

high at £207.3m, despite a drop of £34.9m from last year’s figure, as the

company absorbed some of the pro-ceeds from recent property disposals.

 The firm’s real estate sell-off in thefirst half came close to satisfying dis-posal targets the whole of 2011.

Production in the first half rose to4.1m tonnes of coal from 2.7m tonnesin the corresponding period of 2010.

UK Coal chairman Jonson Cox, who joined the firm in November, said: “Iam pleased to report on reasonableprogress. Production has improved

and revenues over the period haveincreased 81 per cent.”

UK Coal says it is back inthe black after four yearsMINING

IDENTITY protection provider CPPGroup said its first-half profits had  jumped by a third yesterday but  warned that a probe into its sellingpractices had hurt its business.

 York-based CPP, which also insurescredit cards, said it made £23.1m pre-tax profit on revenues of £172.1m inthe first half, but said its performancehad been worsened by a FinancialServices Authority investigation intosome of its sales.

CPP chief executive Eric Woolley  blamed the overhang from the investi-

gation, which launched in March intohow its ID protection insurance wassold over the phone, for loss of con-tracts and ongoing uncertainty.

“Costs and lost revenues as a resultof the ongoing FSA investigation inthe UK have impacted profitability,” hesaid. The group stopped selling theproducts by telephone in response tothe investigation.

CPP shares closed up 0.9 per cent at138.8p on the back of the results.

Earnings rise at insurerCPP despite FSA probeINSURANCE

▲BRITISH oil firm Cairn Energy con-firmed yesterday that it is lining up

exploration opportunities in Lebanon,as its long-running deal to sell a stakein its Indian business nears an end.

In June, India granted conditionalapproval for Vedanta to buy a stake inCairn India from Cairn Energy in a$6bn deal that was f irst announced a year ago.

Should state-controlled partnerONGC give its consent, the finalisa-tion of the sale could come by the endof September, said Cairn’s chief finan-

cial officer yesterday.“With a fair wind and all the stars

aligning, it could complete by the endof September,” chief financial officer  Jann Brown said, adding that given

past delays she was wary of makingpredictions. With the drawing to a close of the

Indian deal, Cairn said it was now looking to Lebanon and the potentialto find oil and gas in the EasternMediterranean.

 The company said it planned to par-ticipate in a licencing round inLebanon due to take place next year, where its success would add acreagein a politically-sensitive part of the

 world.Shares in Cairn, which have fallen

26 per cent in the last month, closedup 1.45 per cent to 293.9p.

Cairn pins hopes on LebanonBYHARRY BANKS

ENERGY▲

Antofagasta

ups dividendas profits riseBYHARRY BANKS

MINING▲

BYHARRY BANKS

ENERGY▲

News16 CITYA.M. 24 AUGUST 2011

BUFFETT-BACKED BYD STRUGGLES

CHINESE carmaker BYD’s profit warning and failure to deliver its promised electric car sent shares to a more than two-year low, as the Warren Buffett-backed company struggles withsales declines. Shares in BYD fell more than 14 per cent yesterday after the company warnedit may post a third-quarter loss. The drop put a spotlight on Buffett, whose investment in BYD has lost around $2bn in value since he took a stake in 2009. Picture: REUTERS

NEWS | IN BRIEF

Gains for new Medtronic bossMedtronic posted quarterly earnings inline with analyst targets yesterday, assales of its diabetes products, heartstents and other devices offset chal-

lenges for its important implantableheart and spine products. First-quarternet income was $821m (£497m) or 77cents a share, compared with $830m, or76 cents a share, a year ago, as newchief executive Omar Ishrak outlined hisgrowth plans for the firm.

Spectris earnings up 74 per centBritish electrical engineering firm Spectrishas posted a 74 per cent rise in first-half adjusted pre-tax profit on strong demandfrom all its markets, and said it was confi-dent of making good progress for the year.January-June pretax profit before certainitems was £77.7m, compared with£44.7m last year. Revenue grew 25 percent to £507.2m. The company also raisedits interim dividend 15 per cent to 8.2p.

Spirax-Sarco says growth is slowSpirax-Sarco Engineering’s first-half adjusted pre-tax profit has risen 15 percent, helped by higher demand for itsproducts in emerging markets, but thefirm said the pace of growth had slowedin the second half. The firm, which sup-plies steam traps, pumps and boiler con-trols, said it would not be immune to afurther slowdown in the global economy.Pre-tax profit rose to £63m, on revenueup 11 per cent at £307.7m.

Fenner buys Aussie seal makerFTSE 250-listed engineering firm Fennerhas bought Transeals, an Australian manu-facturer of sealant. Fenner will acquireA$5.6m (£3.6m) of assets through itswholly owned subsidiary Hallite SealsAustralia, in a deal expected to be com-pleted early next year. Nicholas Hobson,chief executive, said: “ It improves our cov-erage, expands our product offering andstrengthens Hallite's position.”

ANALYSIS l Antofagasta PLC

p

Jun Jul Aug 23 Aug

1,400

1,300

1,200

1,100

1,206.0023 Aug

ANALYSIS l Cairn Energyp

Jun Jul Aug 23 Aug

350

325

300

425

400

375

275

293.9023 Aug

Page 17: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 17/28

headline sponsor champagne reception sponsor

official venue partner

The Square Mile’s

event of the year.

sponsors

Book your place for the City A.M.Awards on Wednesday 

21 September at the Grange St Paul’s Hotel, London.

 Visit www.CityAMAwards.com

For more information, contact Jo Pead I 020 8267 4043 I [email protected]

Page 18: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 18/28

 AUSTRALIAN brewer Foster’s Group  yesterday piled the pressure onSABMiller to raise its hostile takeoveroffer, unveiling a A$500 (£315m) capi-tal return to shareholders.

  The country’s largest brewer pro-posed to return money via a share  buyback or capital reduction in aneffort to get SABMiller to increase its£7bn offer, which Foster’s has twicerejected as too low.

  The defensive move came asFoster’s reported a slide in annualprofits, beer margins falling for thefirst time in a decade and beer vol-umes under pressure, with analystssaying SABMiller, which makesPeroni, Grolsch and Miller Lite, needsonly to offer a little more to succeed.

“It is probably one of the few options that they have, so it’s notunexpected that they’re doing that,”said Theo Maas, a portfolio managerat Arnhem Investment Management.

“But I’m not sure if in the biggerscheme of things it’ll make any differ-ence,” added Maas, saying that hestruggles to see a materially higher bid emerging for Foster’s.

SABMiller declined to comment on

the results or the capital return, butanalysts in London said after suchunderwhelming results SABMillermay only have to raise its bid toaround A$5.10 a share to win overFoster’s shareholders.

Foster’s, the maker of VictoriaBitter, Carlton Draught and PureBlonde, reported a nine per cent slidein second-half profit to A$378.9m.

Its market share shrank with itsprofit margins.

 The figures were hit by poor weath-er and weak consumer demand tooits toll.

But chief executive John Pollaerssaid: “The turnaround of this compa-ny is clearly on track. Market sharehas stabilised, correcting a long-termperiod of decline.”

CAR dealer Pendragon reported ahigher first-half profit yesterday,helped by an increase in used-vehicle volumes, and said it continues to per-form in line with expectations for the year despite the end of the car scrap-page scheme.

Britain’s largest motor retailer saidlike-for-like used-car volumes rose

13.2 per cent over the last year.

But the company, whose Stratstonedealerships sell premium modelssuch as Maserati and Mercedes-Benz,said performance at this division was  below the first half of 2010, withretail registrations falling almost 13per cent.

Pendragon posted a pre-tax profitof £17.7m compared with £15.7m a  year ago. But revenue for the sixmonths to June was two per centlower at £1.77bn. The dealer’s £75.2m

right issue this month was taken up

 by just 67 per cent of shareholders.

Pendragon weathers end of scrappagescheme as its earnings and volumes rise

Foster’s buy

back to fendoff SAB bidBY JOHN DUNNE

CONSUMER▲

BY JOHN DUNNE

AUTOMOTIVE▲

News18 CITYA.M. 24 AUGUST 2011

NEWS | IN BRIEF

H&T boosted by gold pricePawnbroker H&T Group said it expectedfull-year results to be above the top endof current market expectations, drivenmainly by surging gold prices that boost-ed its first-half pre-tax profit. Spot goldprices soared above $1,910 yesterday,scoring a record high for a fourth consec-utive day, as persistent worries aboutglobal economic growth burnished bul-lion's safe-haven appeal. H&T, whoseservices also include cheque cashing,payday advances and unsecured loans,raised its interim dividend by seven per-cent to 3.75p.

Cash Converters in record profitPayday loans and pawn broking specialist

Cash Converters yesterday unveiled arecord net profit of $27.6m (£16.7m) for

the year to the end of June – 27.5 percent up on last year. Revenues rose by47.6 per cent to $186.1m and earningsbefore interest, tax, depreciation andamortisation increased by 28.6 per centto $43.6m.

Shard steel firm slashes dividendStructural steel company Severfield-Rowen reported a lower first-half pre-taxprofit yesterday, hurt by a weak con-struction market in the UK, but said itwould meet its full-year expectations.The company, which is supplying steel forthe Shard London Bridge, cut its interimdividend by 70 per cent to 1.5p a share.For the six months ended 30 June, thecompany’s underlying pre-tax profit was

£3.4m, compared with £8.2m in thesame period last year.

Room to improve for new Waterstones owner

E  ARLIER this summer A&NNCapital Fund Management  bought Waterstones, the bookseller, from HMV.

So this week we’ve looked at someof the detailed BrandIndex scores to

see what opportunities and threatsthe brand faces.

  Arguably Waterstones’ biggestchallenge over the past few yearshas been the emergence of Amazonas an online retailer whose lack of 

high street presence has enabled itto offer a value proposition that  Waterstones struggles to compete with.

  This is reflected in theBrandIndex scores of Waterstones with quality at +48, satisfaction at+37 but value as low as +19.

 Amazon scores +58 on both qual-ity and value, meaning that  Waterstones trails on both thosemeasures, but on quality there is

 just a 10 point gap, compared to amassive 39 point gap on value.

Unsurprisingly this effect is exac-erbated among younger customers, with a value score of +16 amongst18-34 yr olds and 35-49 yr olds that

rises to +25 for those aged 50 andover.Indeed for much of the period

looked at in the chart, that differ-ence in opinion between agegroups was even more marked.

YOUTH APPEALSo although it is not scoring ashighly as Amazon, Waterstonesdoes generally perform well onmost of the BrandIndex perception

measures (scoring between +37 and+48 for all other measures) but itfalls much further behind on value.

  That gap is particularly acuteamong younger age groups.

 The challenge for the new own-ers will be to build on the positiveperceptions to ensure that it main-tains its relevance in a market thatis increasingly dominated by online retailers.

BRANDINDEX

STEPHAN SHAKESPEARE

ANALYSIS l Waterstones measures

Satisfaction

1 Jan 10 1 Jun 10 1 Nov 10 1 Fe b 11 1 Aug 11

60.0

50.0

40.0

30.0

20.0

10.0

0

Value

Quality

ANALYSIS l Value by age

Age 50+

1 Jan 10 1 Jun 10 1 Nov 10 1 Feb 11 1 Aug 11

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0

Age 35-49

Age 18-34

ANALYSIS l Fosters Group Ltd

AUD

Jun Jul Aug 23 Aug

5.00

4.75

4.50

4.9924 Aug

ANALYSIS l Pendragon PLC

p

Jun Jul Aug 23 Aug

18

16

14

12

10

10.2524 Aug

Heinz beats profit forecast on growthin emerging markets but shares slide

HEINZ yesterday reported quarter-ly profit that beat analysts expecta-tions, with a boost from by growthin emerging markets.

However, the group’s shares fellas much as three per cent as agloomy outlook on costs unnervedinvestors.

 The company has made recentacquisitions in China and Brazil, which has helped to offset sluggishgrowth in developed markets,including the US.

  The company, whose productsinclude baked beans and ketchup,had 23 per cent of its sales inemerging markets in the quarter.

Excluding acquisitions, divesti-tures and the effect of foreign cur-rency fluctuation, sales rose 13 percent in emerging markets.

However, they were flat in North America where price increases dueto rising commodity costs causedless demand – a pressure the firmsaid was likely to continue.

Heinz said in May that itplanned to close five factories, cut-ting 800 to 1,000 jobs, and set up aEuropean supply chain hub in theNetherlands.

 Yet the company is less exposedto recent commodity marketspikes than some rivals, sincesome of its biggest food purchas-es – tomatoes and potatoes -- have been less volatile.

Revenue rose 15 per cent to$2.85bn (£1.7bn) fuelled by priceincreases and a weaker dollar. Analysts had forecast $2.79bn.

CONSUMER▲

Page 19: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 19/28

News 19CITYA.M. 24 AUGUST 2011

BTIGThe financial services firm has expand-ed its New York-based fixed incomegroup by hiring William Freihofner,

Jeffrey Gould, Kevin McDonald,Mayank Patel and William Tillinghast.The five new hires will specialise inconvertible trading and high yield sales.

Herbert SmithThe law firm has strengthened its debtcapital markets service by hiringAndrew Roberts, a former partner atLinklaters. Roberts specialises in debtcapital markets across EMEA and

India, and in Islamic finance.

UPSThe NYSE-listed logistics firm hasappointed Jim Barber as president of the UPS Europe region with responsi-bility for EMEA, succeeding WolfgangFlick, who is retiring. Barber, whostarted his career at UPS as a deliverydriver, was most recently chief opera-tions officer for the Europe region.

Grant ThorntonDavid Newstead, formerly a director atPwC, has been appointed as an assur-ance partner at Grant Thornton inMilton Keynes. His appointment bringsthe partner and director team covering

Hertfordshire, Bedfordshire andNorthamptonshire to 15.

MercerDominic McNamara has joined the HRgroup’s outsourcing practice as a clientservice manager in its discontinuedschemes unit, based in Leeds.McNamara joins from the FinancialAssistance Scheme, where he was acustomer account manager.

FFTWFischer Francis Trees & Watts, theglobal fixed income partner of BNPParibas Investment Partners, has pro-moted Kenneth O’Donnell to head of short duration. O’Donnell started his

career at FFTW in June 2002 as aportfolio manager.

Elite InsuranceThe legal expenses and niche linesinsurer has hired Mike Payne as gen-eral manager and Deborah Ranger asbusiness development manager in thecompany’s London office. The firmhas also hired Daniel Quinn and DavidGreen as underwriters.

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

Banking and techstocks lead surge

US stocks shot three per centhigher yesterday on specula-tion Federal Reserve chairmanBen Bernanke this week would

signal new help for the economy, giv-ing investors hope a four-week rout

 was nearing an end. Weak data in housing and regionalfactory activity triggered the latestround of bets that Bernanke will act,even though the Fed’s options appearlimited. Bernanke speaks to a central bank conference on Friday in JacksonHole, Wyoming.

“I don’t think anybody wants to betoo short or negative in front of Bernanke’s speech,” said Jim Awad,managing director at ZephyrManagement in New York.

 The Dow Jones industrial average  was up 322.11 points, or 2.97 percent, at 11,176.76. The Standard &Poor’s 500 Index was up 38.53 points,or 3.43 per cent, at 1,162.35. TheNasdaq Composite Index was up100.68 points, or 4.29 per cent, at2,446.06.

  Technology and other growthstocks drove much of the gains, with

the Nasdaq rising more than four percent. The sharp rise echoed the wild

swings the market experienced two  weeks ago after Standard & Poor’sdowngraded the US’ long-term cred-it.

 Volume was a solid 9.35bn sharestraded on the New York Stock Exchange, the American Stock Exchange and Nasdaq. The daily aver-age for last year was about 8.47bn.

Even financials, which had beenknocked lower earlier by shares of Bank of America, ended positive, with the S&P Financials Index up 3.2per cent.

Bank of America Corp remainedunder pressure on fears of possible write-offs and the need for capital. Itsstock fell 1.9 per cent to $6.30 but well off the day’s lows.

 The market has been battered by concerns of another US recession andthe worsening Eurozone debt crisis.

“This is how the start of a rally inan oversold market usually lookslike: an aggressive short-term gainlike today,” said Jack De Gan, chief investment officer at Harbor  Advisory Corp in Portsmouth, New Hampshire, suggesting the marketmay have hit the bottom.

  The rally briefly stalled in theafternoon on news of a magnitude of 5.9 earthquake, which struck in  Virginia andforced some buildingevacuations along the East Coast andCanada, but no major damage orinjuries were reported. Big percent-

age gainers on the S&P includedNvidia Corp and JDS Uniphase Corp.

Britain’s top shares rose

  yesterday on hopes the USFederal Reserve is close toannouncing new stimulus

measures, and China and euro zonepurchasing data were not as bad asfeared.

Strong results and an upbeat out-look statement propelled security services firm G4S up 8.5 per cent totop the FTSE 100 list in volumemore than double of its 90-day daily average.

Investors were hoping a speech by Bernanke in Jackson Hole,  Wyoming, on Friday would givesome form of assurance to help thestruggling US economy such as fur-ther stimulus measures.

St. Louis Fed President JamesBullard, however, told a Japanesenewspaper the time was not yetright, but the Fed could buy more  bonds or make a commitment onthe size of its balance sheet if theUS economy stalled further.

“All eyes are on Bernanke clearly investors are looking for a sizeable  bond buyback,” said Howard Wheeldon, senior strategist at BGC

Partners. Adding to the positive sentiment

 was news that purchasing manufac-turing index (PMI) data from Chinaand the eurozone although slowing  were still showing some signs of growth.

“Investors are data watching inhope of a second half recovery,” saidRichard Batty, global investmentstrategist at Standard LifeInvestments, which has £157bn of assets under management.

Oil stocks added the most pointsto the FTSE 100 after the PMI datasupported hopes there was still

demand for the commodity.Royal Dutch Shell and BP  werethe stand out gainers up 1.8 percent and 1.5 per cent respectively.

British energy services firm JohnWood Group gained 4.6 per cent tofeature in the FTSE’s 100 best per-formers list in volume more thanits 90-day daily average followingforecast beating results and a posi-tive outlook statement.

  The FTSE 100 index closed up34.12 points, or 0.7 per cent, at5,129.42 in choppy trade having  been up as much as 5,193.17 anddown as low as 5,076.74, with vol-ume close to its 90-day daily aver-age.

 The index held above a key sup-port level – its 23.6 per cent retrace-ment or 5,096.17 from its low inMarch 2009 to February 2011 highafter briefly dipping below it.

 The next resistance level was seenat 5,284.76 or its 38.2 per cent

retracement.Many traders were unconvinced

the rally would last, however, andsaid it was just bargain hunting fol-lowing the recent July-August sell-off which has seen the FTSE 100 fall15.7 per cent and overall the datastill showed there were weak spots.

“The market remains volatile,although the PMIs were not as badas feared there is still not much evi-dence growth is strong and we arestill in the midst of a soft patch,”Batty said.

European shares extended theirlow-volume bounce into a secondday, led by demand for defensivestocks and investor hopes for a fur-ther easing of US monetary policy.

Lacklustre Eurozone data and weak US new-home sales figures leda brief dip into the red althoughsubsequent gains across the  Atlantic helped the FTSEurofirst300 close up 0.8 per cent at 923.87points.

FTSE 100 rallies on hope of new stimulus from the FedTHELONDONREPORT

THENEW YORKREPORT

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

ANALYSIS l Tui Travel

220

200

180

160

Jun Jul Aug

p 148.8023 Aug

TUI TRAVELRBS rates the tour operator as a “buy” with a target price of 300p, and saysmarket misconceptions about the sector and general market volatility havecreating a buying opportunity. The brokers believe package holidays will sur-vive the competitive threat of DIY holidays, and says Thomas Cook’s struggleshave had a unwarranted drag on its stock price. Instead, the broker says TUIshould benefit from its rival’s reduction of capacity in the UK market.

ANALYSIS l PhosAgro OAO

14.00

14.50

13.50

13.00

12.50

12.00

11.50

Jul Aug

$ 11.9023 Aug

PHOSAGROCiti initiates coverage of the phosphate fertiliser producer with a “buy/highrisk” rating and a target price of $21. The broker foresees solid demand fromthe fertiliser market for at least 2-3 years, with average annual increases indemand up four per cent compared to a 2.5 per cent yearly rise in globalcapacity. Citi says PhosAgro has long-term access to the EU market, andhighlights its impressive pre-tax margin of 34.4 per cent.

ANALYSIS l Davide Campari Milano

5.805.60

5.40

5.20

5.00

Jun Jul Aug

€ 5.3623 Aug

CAMPARIJP Morgan upgrades the beverage group to “neutral” from “underweight”and ups its target price to €5.50 following its first-half results earlier thismonth. The broker had seen Campari as expensive in the sector, but changesits rating after spirits sales growth accelarated to low double digits. Itupgrades its earnings per share estimates by one per cent for 2011 and sixper cent for 2012, and sees 14 per cent earnings growth on average to 2013.

22 Jun23 May 21 Jul 19 Aug

6,200

5,400

5,000

4,800

5,600

5,800

6,000

ANALYSIS l FTSE

5129.4223 Aug

Sciens Management HoldingsThe provider of fund of funds and managedaccount services has hired two senior execu-tives to its London team. Stavros Siokos (pic-tured) has joined as president and MichaelHart joins as senior marketing director. Siokos

was formerly head of investment manage-ment at Piraeus Bank in Greece and an MD inthe equities division at Citigroup. Hart previ-ously worked at bfinance, where he developedthe institutional pension fund business in theUK and Ireland.

Page 20: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 20/28

WHEN Ben Bernanke makes hisspeech at the Jackson Hole sym-

posium on Friday, the markets  will be hanging on his every 

 word. Helicopter Bernanke picked up hisnickname after referring to a MiltonFriedman statement about using a heli-copter drop of money to fight deflation,and market watchers will be listening forany sign that the Fed chair-man will again bedropping money onto the fire of USfinancial worries.

It is impor-tant to notethat the

  Jackson Holeevent is notan FOMCmeeting, andso Bernanke will notannounce de factoFederal Reserve monetary policy. However, the speechis a key gauge of hisintentions. At the

  Wyoming event last year, the Fed chairmanfirst indicated that heintended to fire up the print-ing presses for a second round of quantitative easing (QE). So are we goingto have to brace ourselves for QE3?

It is plain to see why many are brayingfor a flood of more cheap money into theeconomy. It would push up the prices of assets, including equities and commodi-ties. While more cheap money sloshing

The symposium will be a chance for themarkets to gauge what approach the Fedmay take to US woes, writes Craig Drake

What Bernanke

might dig up atJackson Hole

PITY the poor Japanese policymakers. As globaleconomic growth slows, the yen continues toappreciate against all reason, hurting the exportdriven economy that’s already been battered by

natural disaster and chronic deflation. At the end of last week dollar-yen hit a fresh record low of ¥75.95as the trend intensified. The strength in the yen is noway a reflection of positive investor sentimenttowards the Japanese economy. Rather it is simply afunction of the unwinding of the risk trade, much of which is financed with low interest rate yen loans.

On Monday, Japanese finance minister YoshihikoNoda warned that the government might once againstep into the currency market to weaken the yen.

Speaking to reporters Noda stated: “I have becomemore concerned about the worsening of the yen’sone-sided movements. I will take bold actions if nec-essary and won’t rule out any possible options.”

The comments by Noda are a clear sign of thefrustration amongst Japanese fiscal officials as theyface the conundrum of an ever-strengthening cur-rency amidst rapidly deteriorating economic condi-tions. Japan’s export driven economy is trapped in ahorrible cycle, as its currency strengthens at theworst possible time, just as global economic demandis beginning to slow. This leaves Japanese officialswith no choice but to intervene in the market, even if their policy actions prove to be futile over the longrun. For the time being the goal of Japanese authori-ties may be to simply slow the rate of appreciationrather than reverse the overall trend. If dollar-yencontinues to drift towards the ¥75.00 level, they arelikely to make their stand sooner rather than later.

In the meantime yen bulls will no doubt try toprobe the ¥75.00 barrier, especially if economicdata in the G10 deteriorates further. On Friday, Fedchairman Ben Bernanke will make his statementfrom Jackson Hole. If he hints that the Fed may easefurther in order to combat the deceleration ingrowth, the greenback could sell off into the week-end and possibly push dollar-yen to the key ¥75.00figure.

STRONG YENCOULD INVITE

INTERVENTIONBORIS SCHLOSSBERGDIRECTOR OF CURRENCY RESEARCH, GFT

Visit gftuk.com/cityam to open an account and start saving today.*Trade volumes and withdrawal restrictions apply. See gftuk.com for full terms and conditions. When

trading CFDs, forex and spread bets, it is possible to lose more than your initial deposit.

&SPREAD BETS | CFDs | FOREX

free phone 0800 358 0864

gftuk.com

GFT Global Markets UK Ltd. is authorised and

regulated by the Financial Services Authority.

CD03UK.163.072511

  Up to a 

£1 REBATE ON EVERY TRADE

WHEN YOU TRANSFER

YOUR ACCOUNT TO GFT*

Get a bonus of up to

£3,000* WHEN YOU OPEN AN

ACCOUNT WITH GFT

around may be good news for vestedinterests, including those who own and

  want to sell such assets, it is not suchgood news for the US economy as a

 whole.“I give it a 40 per cent chance that Ben

Bernanke will announce something outof the ordinary this Friday,” says

 Alejandro Zambrano, market strategist atFXCM, pointing out that many had

expected it to happen earli-er.

  The stickingpoint forthose lickingtheir lips in

anticipationof cashing in on

another payday thanks to Ben

Bernanke and his FOMCcolleagues is that of defla-tion.

In the past, deflationhas been seen as a pre-requisite in the justifica-

tion of money printing by the Fed. And dissectingthe remains of the USeconomy, the aruspices

suggest that QE could beruled out for the time being. “Last year,core measures of inflation – the Fed’score indicator, which excludes volatilefood and energy prices – were around 1per cent and falling, and are now at 1.5per cent and rising,” says ChrisBeauchamp, research analyst for IG Index.“Core inflation is the Fed’s preferred indi-

cator, and if this is not flashing a defla-tion warning then it will be reluctant torisk ever-higher inflation with QE.”

LET’S TWIST AGAINQE isn’t the only move in the Fed’s reper-toire. It may consider a repeat of the Fed’s1961 tactics to address public debt wor-ries. Dubbed “Operation Twist”, the Fedtried to flatten the US yield-curve by buy-ing long-term Treasuries and issuingshort-term bills to mop up the liquidity created. “This is seen as less like political

Wealth Management | Foreign Exchange20

Page 21: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 21/28

suicide for the Fed, as they can avoid accu-sations of printing money,” says Nick Beecroft, senior markets consultant atSaxo Bank.

Minutes from the FOMC seem to back up the prediction that QE3 is unlikely,

 with three board members dissenting – a big number for the FOMC, which usually likes to rely on consensus – the biggest for18 years. But one should not underesti-mate Bernanke’s sense of his place in his-tory. “We need to take into account the

  way that Bernanke sees things,” saysBeecroft. “Do not forget that when hetalks about Japan’s lost decades he thinksthat it was due to insufficient monetary stimulus – too little, too late in terms of printing and asset buying.” He adds thatBernanke’s personal stance increases thechance of a central bank intervention.“His legacy is on the line. We constantly fail to understand how bureaucrats andpoliticians will do anything, and I meananything, to keep the illusion going.”

FOREX EFFECTSSo what can we expect in the lead up toBernanke’s big day? Until the Fed chair-man dismisses the prospect of the print-

ing presses being fired up on Friday, thedollar is going to be on the back foot.“Until Friday afternoon, we could witnessthe dollar fall to a record low versus the

 Japanese yen in the anticipation that theFederal Reserve will signal more stimulusmeasures to revive the slowing US econo-my,” says Yannick Naud, portfolio manag-er at Glendevon asset management. But

 whatever the outcome of the symposium,investors may dive for cover in safe-havencurrencies. “Because of growing concernsthat the EU’s sovereign debt crisis couldnow turn into a run on European banks,

  we should not expect in the mediumterm any weakening of the demand forsafe-haven assets – mainly gold and Swissfranc – with or without QE3”

 And as Beecroft points out, you shouldnever underestimate a public figure’sdesire to build a monument to himself,regardless of what those around themmay be saying.

FOREX ANALYST PICKS

FOREX STRATEGISTJOEL KRUGER

My pick: Looking to buy dollar-yenExpertise: Technical analysisAverage time frame of trades: 1 day to 1 week

FOREX STRATEGISTILYA SPIVAK

My pick: Stay short euro-dollar

Expertise: Global macroAverage time frame of trades: 1 week to 6 months

I sold euro-dollar four weeks ago at $1.4328, expecting escalation inthe EU debt crisis, compounded by a downward revision in investors’

expectations of global economic growth. While the focus this weekwill be on Ben Bernanke’s speech at the Jackson Hole centralbankers’ summit, I expect these larger themes to reclaim dominancethereafter and will remain short, initially targeting a close below$1.3975. A stop-loss will be triggered on a daily close above $1.4535.

While we are not ready to pull the trigger just yet, we are looking foran opportunity to get long on dollar-yen, especially with the markettrading record lows, and showing no downside follow-through on thebreak to hit fresh lows below ¥76.00 last Friday. This could suggestthat the formation of some form of a base is imminent, and we will lookfor a daily close back above ¥77.30 to confirm these prospects for abullish reversal.

FOREX STRATEGISTJOHN KICKLIGHTER

My pick: Long dollar-yen and euro-dollar. Short euro-Swiss franc

Expertise: Fundamental analysis with risk managementAverage time frame of trades: 1 day to 1 week

We are facing huge fundamental themes that could dramatically alterthe course of the markets, depending upon developments in the comingweeks. The setups I’m looking at play to specific scenarios. A long euro-dollar on a break above $1.4550 is a dollar-bearish reaction should QE3be passed. Should that program falter, dollar-yen could f inally charge areversal (athough currently that goes against my risk rules). And, euro-Swiss franc below SFr1.12 is a short-term technical option.

STERLING rose sharplyagainst the dollar yes-terday as traderssought alternative cur-

rencies amid the continuedconcern over US andEuropean debt levels. Spreadbetters were targeting apotential test of highs of $1.6618, touched last week.However, analysts are voicingcaution over a possible fall inthe strength of the pound onFriday should GDP figurescome in worse than expect-ed. Spreadex offers a spreadof $1.6567-$1.6570 for ster-ling-dollar.

Trading ranges betweenthe euro-dollar pair havebeen quite tight at the startof this week. The euro spiked

higher on the back of Chinese PMI figures, show-ing that manufacturing grewat a slower pace in Augustagainst July. Another reasonfor the shallow tradingranges is that traders areawaiting Fed chairmanBernanke's speech on Friday,in which he will discuss stepsto boost the US economy.The pair has rebounded off its support level at $1.4497,which may signal furtherupside. Capital Spreadsquotes $1.4490-$1.4491.

The US dollar has contin-ued its recent recoveryagainst the Swiss franc onfears that the Swiss NationalBank will intervene furtherto weaken the currency. The

drop on Tuesday in Swissexports highlights the extentof the problem, but historytells us that the Swissauthorities may only be ableto slow the rise of the franc,and not halt it. CMC Marketsoffers a spread on dollar-Swiss franc of SFr0.78873-SFr0.78892.

There’s been little move-ment in the yen against thedollar of late. Speculationthat the Bank of Japan willintervene again is lendingsome support. However,with the US economy look-ing perilous and expecta-tions building that we’regoing to see QE3 at somestage, another jump lowerfor the pair is seen as

inevitable by many. IG Indexoffers dollar-yenat ¥76.51-¥76.52.

The greenback may beunder pressure across theboard, although against theSingaporean dollar we’veseen the S$1.20 level pro-vide notable support inrecent weeks. That said,Singapore is building itself something of a safe-havenstatus and with risk appetiteunlikely to build in the nearterm, the expectation is thatthe plunge towards paritycould be nothing more thana matter of time. Current IGIndex price on dollar-Singaporean dollar isS$1.2054-S$1.2060.

Philip Salter

THE TIPSTER

GDP RELEASE WILL SHOWIF THE POUND IS STERLING

21

Another $600bnmonument toBernanke could beon the cards

Picture: REUTERS

Page 22: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 22/28

Page 23: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 23/28

Lifestyle | Motoring23

WORDS BYRYAN BORROFF

ly no-frills, even no thrills – the most excit-ing thing about this little MPV is its name– but as a practical way of getting to thehills, as cheaply as possible, stuffed full with bikes and gear, it’s a clever choice.

KIA SALOONBelieve it or not, this rear-wheel drive four-seater saloon is a Kia.The car – a concept that will be launched at the Frankfurt motorshow – still doesn’t have a name and has been designed to explorenew segments for Kia and to excite potential car buyers. It will cer-tainly do that by the look of it.

CAR TALK BY RYAN BORROFF

SMART BIKECity car maker smart has designed an electric ebike for commuters.Battery charge should last for 62 miles and the bike can be chargedby peddling or at the socket at home. Clever features include energyrecuperation during braking and an integrated USB port for smart-phones. The bike will be on sale next year. No word on prices yet.

VW CITY CARThe is Volkswagen’s tiny city car which is being launched at nextmonth’s Frankfurt motor show. Small but as spacious as possibleinside, the four-seater will go on sale with a 60PS or75PS three-cylinder petrol engine capable of up to 67mpg with less than100g/km of CO2. An electric version is coming too.

No frills and certainly no thrills

The Bipper Tepee isn’t going to win any beauty contests.

THE name Bipper Tepee promises afun, nifty little car, something withquirky styling and even quirkier per-sonalisation options on the inside,

perhaps. And, while it’s no Nissan Cube onthe styling front, it’s fair to say thatPeugeot’s Bipper Tepee is a reasonably fun-looking car. That said, it does bear morethan a passing resemblance to two othermembers of a trio of people-moving mini-MPV ‘vanettes’ available in the UK – theFiat Qubo and Citroen Nemo – because

underneath they are essentially the samecar. With its boxy shape and a face with aneat snout and exaggerated underbite,roof bars and a slightly higher ride heightgive the Bipper Tepee a spot of sportiness.

Presented as an economical and sensi- ble choice of family car, the Bipper Tepeepromises to be a frugal runaround forcommuting during the week and a practi-cal load lugger for outdoor adventures atthe weekend.

Unfortunately, you’ll not be able to gotoo far, too fast in the Bipper Tepee. Okay,so you can’t expect sports car thrills froma vehicle that takes 16.8 seconds to reach62mph, with a top speed of 99mph, but inthis day and age it feels quite unusual to be in a car as slow as this. Around townthe car is fine but out on the motorway itfeels slow and noisy. This is not a car thatmajors in refinement. It has evolved froma van after all.

On a sweep down the A2 I was expectinga less than earth-moving experience. Evenso I wasn’t expecting to have to push theBipper Tepee quick so hard to get there: atrip out into the middle lane felt indul-gent, into the outside lane positively fool-hardy. Instead I sat in the slow lane andenjoyed the view. Which is good, thanks tothe huge windscreen and high drivingposition. The view out of it is one of thecar’s greatest assets, with a sloping dashand huge windows in the front and size-able ones in the back, so passengers tooget plenty of glass to look through.

Space and practicality is what theBipper Tepee does best. There’s plenty of space for handbags, toys, snacks, books,drinks, newspapers and other weekend-away paraphernalia. The interior, though,

The car’s name isprobably the most funthing about it. But atleast it’s affordable

THE VERDICT:DESIGN hhiii

PERFORMANCE hhiii

PRACTICALITY hhhhi

VALUE FOR MONEY hhhhi

THE FACTS: PEUGEOT BIPPERTEPEE OUTDOOR CAR

PRICE: £13,2450-62MPH: 16.8secsTOP SPEED: 99mphCO2 G/KM: 113g/kmMPG COMBINED: 65.6mpg

is plain dull and plasticky. But then it’salso easy to clean. Which, as any dogowner or rearer of children will tell you, isa decision that is paramount in the buy-ing process. If you need even more spacethe rear seat can be folded to return theBipper Tepee to the van it once was. Thesliding doors are very practical for rear-seat passengers, especially if you’re shoe-horned between two Range Rovers in aSainsbury’s car park.

Rear parking sensors are another optionthat might prove useful particularly as therugged bumpers stick out quite so much. You wouldn’t want to back too close to a wall though if you wanted to get shoppinginto this car because its tailgate door is sotall. Having said that, it’s excellent forsheltering from the rain if you’re caughtin a sudden downpour in the Peak District. If you’re looking for somethingcheap and cheerful and practical then theBipper Tepee could be for you. It’s certain-

Page 24: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 24/28

        T        E        R

        R        E        S        T        R        I        A        L

HARRY’SARCTIC HEROES

BBC1,9.00PMPart one of two. Prince Harry joinsfour disabled Afghanistan veterans,two of them amputees, in training fora trek to the North Pole.

WILDLIFE PATROL

ITV1, 7.30PMTwosetsof lemursheldat theAnimalReceptionCentreas partof a policeinvestigationare givena newhome.Lastin the series. MarkStrong narrates.

RANDOM

CHANNEL 4, 10.00PMDebbie Tucker Green’s adaptation of her play about a family whoseordinary day is shattered by a singleevent. Starring Nadine Marshall.

BBC1

SKY SPORTS 14.30pm Live ECB 40 League

Cricket 10pm Revista De La Liga

11pm Football Asia 11.30pm

Football’s Greatest 12am UEFA

Champions League Goals 12.30am

Football Asia 1am Football’s

Greatest 1.30am UEFA Champions

League Goals 2am Poker 4am

UEFA Champions League Goals

4.30am Football’s Greatest 5am

Football Asia 5.30am-6am UEFA

Champions League Goals

SKY SPORTS 27pm Live UEFA Champions League

10pm UEFA Champions League

Goals 10.30pm Poker 12.30am

Revista De La Liga 1.30am Show

Jumping 2.30am-3.30am Sports

Unlimited

SKY SPORTS 37pm Cycle Sports World 7.30pm

Live Greyhound Racing. The

Betfred Steel City Cup. 10pm

Golfing World. Magazine show.

11pm Challenge Series Golf 11.30pm Sports Unlimited12.30am Cycle Sports World1am Wild Spirits 1.30am GolfingWorld 2.30am-3am ChallengeSeries Golf 

BRITISH EUROSPORT7pm Boxing 10pm World Seriesby Renault 10.30pm SportTraveller 10.45pm MotoGP12.15am-12.30am MotorsportsWeekend

ESPN7pm Russian Premier LeagueReview 7.45pm AFL ReviewShow 8.45pm Baseball Tonight9.15pm Planet Speed 9.45pm

ESPN Kicks: Scottish PremierLeague 10pm Premier LeagueReview 11pm Eredivisie ReviewShow 12am Russian PremierLeague Review 12.30am ESPNPress Pass 1am Live Major LeagueBaseball 4am Planet Speed4.30am ESPN Press Pass5am-6am Premier League Review

SKY LIVING7pm Criminal Minds 8pm Britain

& Ireland’s Next Top Model 9pm

Four Weddings US 10pm Criminal

Minds 11pm CSI: Crime Scene

Investigation 12am Dating in the

Dark 1am CSI: Crime Scene

Investigation 1.50am Maury

3.30am Nothing to Declare

4.20am Charmed 5.10am-6am

Jerry Springer

BBC THREE7pm Total Wipeout 8pm Cherry’sBody Dilemmas 9pm Jono: So

What If My Baby Is Born Like Me?

10pm EastEnders 10.30pm

Wilfred 10.55pm Family Guy

11.40pm American Dad! 12am

Russell Howard’s Good News

12.30am Wilfred 12.55am Three

@ the Fringe 2.20am Jono: So

What If My Baby Is Born Like Me?

3.20am Cherry’s Body Dilemmas

4.20am Russell Howard’s Good

News 4.50am-5.20am Underage

and Pregnant

E47pm Hollyoaks 7.30pm How I Met

Your Mother 8pm Friends 9pm

Smallville 10pm The Cleveland

Show 11pm The Big Bang Theory

11.55pm How I Met Your Mother

12.50am My Name Is Earl 1.40am

How I Met Your Mother 2.05am

Glee 2.50am Skins 3.45am

Heartland 4.30am-6am Switched

HISTORY7pm How Britain Was Built 8pm

American Pickers 10pm Only inAmerica 11pm Chasing Mummies

12am Tony Robinson Down Under

1am Only in America 2am Mega

Movers 3am How Britain Was

Built 4am Extreme Trains

5am-6am The Universe

DISCOVERY7pm Mythbusters 9pm Man,

Woman, Wild 10pm Return to the

Bermuda Triangle 11pm American

Loggers 12am Bear Grylls: Born

Survivor 1am Man, Woman, Wild

2am Return to the BermudaTriangle 3am Deadliest Catch

3.50am Wildest Africa 4.40am

Treasure Quest 5.30am-6am

Destroyed in Seconds

DISCOVERY HOME &

HEALTH7pm A Baby Story 8pm Little

People, Big World 9pm

Embarrassing Bodies 10pm My

Brand New Face 11pm Hospital

Sydney 12am EmbarrassingBodies 1am My Brand New

Face 2am Hospital Sydney 3am

Little People, Big World 4am A

Baby Story 5am-6am Bringing

Home Baby

SKY18pm Emergency with AngelaGriffin 9pm FILM Crimson Tide

 1995. 11.15pm Cop Squad

12.15am Caribbean Cops 2am

Sun, Sea and A&E 2.50am

Stargate Universe 4.20am The

Filth Files 5.10am-6am Oops TV

BBC2 ITV1 CHANNEL4 CHANNEL5

        S        A        T        E        L        L        I        T        E        &

        C        A        B        L        E

TVPICK6pm BBC News

6.30pm BBC London News

7pm The One Show

7.30pm EastEnders: BBC News

8pm Holby City

9pm Harry’s Arctic Heroes10pm BBC News 10.25pm

Regional News; National Lottery

Update 10.35pm I’m Pregnant withTheir Baby 11.30pm Tulisa – My

Mum and Me: Weatherview

12.35am Sign Zone: Britain’s

Bravest Cops 1.20am Sign Zone:

Wonderstuff  1.50am Sign Zone:

Royal Upstairs Downstairs 2.20am

Sign Zone: Antiques Road Trip

3.05am Saints and Scroungers

3.35am-6am BBC News

6pm Eggheads

6.30pm Eggheads Celebrity

Special

7pm Dragons’ Den.

8pm The Great British Bake

Off: The remaining bakersmake a quiche.

9pm The Hour: The team defies

government instruction. Last inthe series.

10pm Twenty Twelve

10.30pm Newsnight: Weather11.20pm India on Four Wheels:

12.20am Town with Nicholas

Crane1.20am BBC News3.35am-6am Close

6pm London Tonight

6.30pm ITV News

7pm Emmerdale

7.30pm Wildlife Patrol

8pm Cops with Cameras:

A Belfast team uses a stingerto stop a driver.

9pm Unforgiven

10pm ITV News at Ten10.30pm London News

10.35pm FILM The Grudge 2:

Horror sequel, starring AmberTamblyn.  2006.

12.25am The Zone; ITV News

Headlines2.30am Crossing Jordan3.20am-5.30am ITV Nightscreen

6pm The Simpsons

6.30pm Hollyoaks

7pm Channel 4 News

7.55pm 4thought.tv

8pm The Sex Education Show9pm Seven Dwarves10pm Random11.15pm Chris Moyles’ Quiz Night12.05am Channel 4 Presents –Mandip Sehmi 2012 12.10am UK &

Ireland Poker Tour 1.10am Sailing1.35am Beach Volleyball 2.30am

KOTV Boxing Weekly 3am The Grid3.25am Ironman Triathlon 4.20am

MSA Formula Ford Championship4.45am Cookery School 5.40am

Sali Mali 5.45am-5.55am TheTreacle People

6pm Meerkat Manor

6.25pm OK! TV

7pm 5 News at 77.30pm Mexican Food MadeSimple: 5 News Update

8pm The Great Train Robber’s

Secret Tapes: Revealed: 5 News

at 9

9pm CSI: Miami10pm Celebrity Big Brother11pm CSI: Crime SceneInvestigation 12am CSI: Miami12.55am SuperCasino4.05am

Meals in Moments 4.15am HowNot to Decorate 4.55am RoughGuide to Bang for Your Buck5.10am Wildlife SOS 5.35am-6am

House Doctor

16 12

28 20

14 34

4 7 11

29

29 27

31

12 18 11

35 7

13 26

18 14

16

8

11

22

24

23

21

24

8

43

16

9

37

3

20

19

11

10

38

30

6

17

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

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 Adult male deer (4)

3 Presents (5)

6 Dense growthlocated on the head,for example (4)

7 Fully developed (4)

9 Join back together (9)

11 Inflated pride (3)

 12 Make a sucking sound,as when walkingthrough mud (7)

 14 Flow back (3)

 16 Expectation,prospect (9)

 18 Regrettably (4)

19 Stitches together withneedle and thread (4)

 20 Requires (5)

 21 Eager (4)

DOWN

1 Tennis stroke

that puts the ballinto play (5)

2 Clarified butter usedin Indian cookery (4)

3 Tiny grains (8)

4 Ride a bicycle withthe pedals at rest,especially downhill (9)

5 Number indicated bythe Roman LX (5)

8 Stretched out andlying at full lengthalong the ground (9)

 10 Wife of an earl (8)

 13 In many cases orinstances (5)

 15 Bowl-shapedvessel (5)

17Undertaking (4)

I

E

I

T

NU

M

A

R

C O P I E S T P

R U C O O K E R

O E D E M A W A

S D A R R E A R S

S A I L S O D D L Y

B N T U J M

 A N G L E S T A M P

R E S E R V E C A

W V A D V E N T

 A E G E A N N H

L R E A R T H Y

1 9 2 4 2 9 6 8

3 8 1 2 1 3 2 5

3 6 8 9 5 9

8 6 4 7 9 1 3 6

4 1 3 5 4 2 1

9 4 8 5 9 4 8 3

3 6 1 2 5 9 7

8 7 9 3 2 6 4 1

9 5 2 8 6 7

5 2 4 1 7 8 1 2

7 9 8 3 8 9 3 1

WORDWHEELThe nine-letter words were

CELANDINE and DECENNIAL

Lifestyle | TV& Games24 CITYA.M. 24 AUGUST 2011

Page 25: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 25/28

UNCAPPED Wasps scrum-half JoeSimpson insists his lack of interna-tional experience does not faze himas he prepares to play in his first

 World Cup.Simpson was the surprise inclusion

in Martin Johnson’s 30-man squad yesterday and could make his debutin Saturday’s warm-up match againstIreland in Dublin.

“I have been around the team and Iknow the moves and the patterns andI know what we want to achieve,” hesaid.

“A lack of international experienceis something I will have to adapt to,

 but I believe I have the ability to takeit in my stride. I am desperate to rep-resent England in such a major tour-nament.”

  Australian-born, English-educatedSimpson said he had received “noindication yet” whether he wouldplay against Ireland, adding: “But as apassionate Englishman, I would loveto represent England in every match Ican. I just have to make sure I am inthe right frame of mind if I amrequired this weekend.”

  The 23-year-old benefited from  Johnson’s decision to take threescrum-halves, following an injury tothe Harlequins No9 and leading con-

tender to start to the tournament,Danny Care.

Results

HE MAY not get the five-fers, thedouble centuries or the bigheadlines but there is one man

 who has been instrumental yetoften unsung in making this Englandteam so complete – not to mention

 world No1 and destroyers of India –and that man is Matt Prior.

 The bowling attack is great and soare the batsmen, we all know that,

  but having a wicketkeeper-batsmanof Prior’s quality has really roundedthe team off and helped to cementtheir place at the very top.

 Versatile with the bat, he can adaptperfectly to whatever the situationdemands. If quick runs are needed heis able to cut loose and sacrifice his

  wicket, but when it’s called for he will get his head down and defend.

He is also a superb wicketkeeperand, I’m sure, has a great influenceon the decision-making of captain

 Andrew Strauss.

SATISFYING When he stands there with Strauss atfirst slip no-one knows what they’resaying. But you can be sure they arechatting about the way the ball ismoving on that particular wicket andthat Prior is having a big say.

 As a captain I always relied heavily on my wicketkeeper for insight onhow the ball was moving.

Prior’s success is particularly satis-

fying because it is an area Englandhave struggled with in recent years.

  They have experimented with CraigKieswetter and Steven Davis, and per-haps having rivals around the set-uphas brought the best out of Prior.

NIT-PICKING Amid the glow of a 4-0 whitewash of India and England’s ascent to worldNo1 Test-playing nation hardly seemsthe time for nit-picking. But if I doharbour one slight concern about thecurrent set-up it is the lack of spin-

 bowling cover.If Graeme Swann was to pick up an

injury it would dramatically reduceEngland’s effectiveness, especially inthe fixtures on foreign pitchesagainst Sri Lanka and Pakistan over

the next few months.Coach Andy Flower is well-stocked

 with batsmen and seamers but thereis no-one near Swann’s quality in thesame department.

  With all due respect to Monty Panesar, he has been around for seven

 years and I don’t think he is any bet-ter than he was then. He does not bator bowl like Swann, and if Panesar isnext in line that is a problem.

 There is no obvious contender forreserve spinner at county level, but Iam sure it is something the selectorsand their advisors will be lookingaround at.

CAMEO PLAYERStrauss may not be England’s bestever captain but there is no denying

that he represents a safe pair of handsand his character certainly comesover in his team.

Unfortunately for India, so doesthat of their skipper Mahendra SinghDhoni.

Dhoni made his mark in one-day cricket and is an individual, a cameoplayer. That type does not always fit

 well with the hard graft of Test crick-et, which is better suited to someonelike Rahul Dravid, who reminded usduring the fourth Test at The Ovalhow great he is at grinding out runs.

 Where Dhoni could shine, howev-er, is in the forthcoming one-day series against England. I think he will

 be far more upbeat and will relish theoccasion – rather than sending outthe vibes of a beaten man.

Versatile Prior is unsung heroin England’s ascent to pinnacle

Simpson: I’ll take

Tests in my stride

email [email protected]

BY FRANK DALLERES

RUGBY UNION▲

SPORT | IN BRIEF

Mourinho rejects Real quit talkFOOTBALL: Former Chelsea boss JoseMourinho insists he is not quitting RealMadrid despite Spanish chiefs vowing toinvestigate his conduct againstBarcelona last week. Rumours aboutMourinho’s future gathered pace afterthe probe was launched into an incident

with Barca coach Tito Vilanova in whichhe appeared to put a finger in his oppo-nent’s eye. But Mourinho wrote in anopen letter to fans: “There is no way I’mleaving. No way!”

Morgan backed for captaincyCRICKET: Coach Andy Flower has hailedEoin Morgan’s leadership qualities as thebatsman prepares to captain Englandfor the first time in tomorrow’s one-daymatch against Ireland. Irish-bornMorgan stands in for the rested AlastairCook and Flower said: “He’s a confidentyoung man, he is confident in his ideasabout the game, he chooses his wordscarefully and he doesn’t waste words.People will follow a man like that.”

Serena US Open seeding blowTENNIS: Bookies’ favourite SerenaWilliams faces a tricky route at the USOpen after tournament organisers seed-

ed her 28th. Williams has won thegrand slam three times and has justclaimed back-to-back hard court tourna-ments, but seedings are based on worldrankings, in which she is No29. WorldNo1 Caroline Wozniacki is top seed atFlushing Meadows, with No2 VeraZvonareva second, but No3 Kim Clijstersmisses out with an injury.

Sport 25CITYA.M. 24 AUGUST 2011

  TOUR DE FRANCE hero Mark Cavendish’s hopes of winning a firstroad race World Championship nextmonth suffered a blow last nightafter he withdrew from the Vuelta aEspana.

  The Briton, who had yet to scoreany points, got off his bike 40kmfrom the mountain-top finish to thefourth stage in Sierra Nevada, nearGranada in southern Spain.

Cavendish, 26, riding for the HTC-Highroad team, had been planning touse the Vuelta as preparation for the

 World Championship in Copenhagen.  The Manxman is one of the

favourites, having won the green jer-sey in the Tour de France last month

and the London 2012 Olympic testevent which started and finished inLondon earlier this month.

But he now faces an uncertain build-up to the Worlds, which beginon 25 September, as he will need per-mission from the organisers of the

 Vuelta and world governing body theUCI to ride in other events that over-lap the Spanish race.

Cavendish struggled from the startof the Vuelta, becoming detached inthe opening team time trial onSaturday and suffering a puncture onMonday. By the start of yesterday’sstage he was 16 minutes and 48 sec-onds behind the leaders.

His retirement is HTC-Highroad’ssecond of the race, following

 Australian Matt Goss who quit on thefirst day.

Cavendish Worlds bid in

doubt as he quits Vuelta

CRICKET COMMENT

ANDY LLOYD

A fine wicketkeeperand an adaptablebatsman, he is finalpiece in the jigsaw

 Prior can bat aggressively or defensively depending on what the situation requires. Picture: PA

BY FRANK DALLERES

CYCLING▲

Page 26: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 26/28

QPR lost 2-0 at home to Rochdale asall three Premier League newcomerscrashed out of the Carling Cup at thefirst hurdle last night.

Norwich were thumped 4-0 athome by MK Dons and Swansea lost3-1 at Shrewsbury, while Sunderland  were the other top-flight casualtiesin the second round, going down 1-0at Brighton after extra-time.

QPR came into the game in highspirits, with Saturday’s victory atEverton following Tony Fernandestakeover of the west London club last week.

But a side featuring eight changes went behind after just five minutesagainst the League One outfit when  Jean-Louis Akpa Akpro netted arebound. Gary Jones completed theupset with nine minutes left when hefound the top left-hand corner.

  Aston Villa needed a pair of lategoals to defeat Hereford 2-0, WestBrom swept Bournemouth aside 4-1and Wolves were even more emphaticin despatching Northampton 4-0.

Crystal Palace, Charlton andMillwall boosted the London presencein the competition by seeing off Crawley Town, Morecambe andReading respectively.

QPR crashon bad nightfor big guns EMBATTLED Arsenal manager Arsene

  Wenger goes into tonight’s £40mChampions League play-off withUdinese admitting he fears the depar-tures of Samir Nasri and CescFabregas could inflict psychological  wounds on his already injury-hitteam at the worst possible time.

Midfielder Nasri left the squad yes-terday to complete his protracted£24m move to Manchester City, justseven days after Wenger admitteddefeat in his battle to keep captainFabregas from Barcelona.

  Wenger concedes the loss of arguably his two best players in suc-cessive weeks could further damagethe morale of a side who haveamassed more red cards than they have points from their first twoPremier League matches.

But he insists the high-profile loss-es cannot be used as an excuse if they fail to transform the slimmest of first-leg leads into a result that preventstheir season from unravelling almost before it has begun.

“There is always a concern [thatplayers can be affected] but it is notan excuse. You are always concernedabout the consequences it can haveon the team,” said Wenger. “It canhave a positive consequence as well. If   you are strong mentally it canincrease the solidarity, knowing youhave to fight more. That is what you want from mentally strong players.”

 Victory would guarantee Arsenal aplace in the group stages and a tilt at

the knockout rounds, which togetheris worth around £40m in prize, TV and matchday revenue. A run to thelater stages would be worth evenmore. Defeat, however, would banishthem to the Europa League, wherecentral cash pots are hugely reduced.

  Tonight will therefore determine Wenger’s budget for the rest of the

transfer window as well as how attrac-tive a destination Arsenal remain.

Compounding the departures of Nasri and Fabregas is an injury that islikely to sideline midfielder Jack  Wilshere until after the weekend tripto Manchester United, while full-back Kieran Gibbs and centre-half LaurentKoscielny remain injured.

However Wenger will take his placeon the touchline after all, followinggoverning body Uefa’s decision to sus-pend his ban until an appeal is heard. Alex Song, Gervinho and EmmanuelFrimpong are all available despitedomestic bans.

 Wenger is amid the most turbulentperiod of his 15-year reign, yet he saidthe pressure he felt was “not more,not less”. He added: “I want to winevery single game I play for Arsenal. The rest of the pressure is created by  your [the media’s] environment but Ihave enough experience to take a dis-tance from that.”

WENGER’S £40M

BY FRANK DALLERES

FOOTBALL▲

United DHL contract to trigger copycat dealsMANCHESTER UNITED’S ground- breaking £40m training kit sponsor-ship with logistics company DHL willspark a stampede among their rivalsto secure copycat deals, experts pre-dicted last night.

But they warned most will struggleto rake in anything like the £10m aseason attracted by United, who can  boast truly global reach and havedeveloped the “blueprint” for max-imising commercial revenue.

  And that is likely to see the Old  Trafford outfit, and a handful of European giants such as Barcelonaand Real Madrid, strengthen their

position as the game’s internationalsuperpowers. United’s deal with DHL

(as seen on David de Gea, right) isthought to be the first of its kind inthe Premier League, and leading fig-ures in the sponsorship industry toldCity A.M. they expect it to promptother teams to seek similar tie-ups.

“Other clubs will follow – it’s a log-ical thing. Training kit is often seen in warm-ups and photos from traininggrounds, so it does get quite a bit of exposure,” said John Taylor, chairmanof agency Sports Impact.

However, all but a handful of rivalscould find it difficult to attract largesums as they cannot match United’s  worldwide appeal and presence,according to Dominic Curran, deputy managing director of Synergy.

“They’re a global juggernaut. That’s

the truth of it and that’s what Unitedoffer. I think many other teams would

struggle to do that,” he said. “I’m surethere’s quite a lot of other teams inthe Premier League today looking atit but I don’t think there are many that could do it to that level.”

United have led the way in max-imising commercial revenues in thetop division, securing a host of territo-ry-specific deals with telecommunica-tions companies, beer brands andeven tyre-makers. “Man United isalmost a blueprint for other clubs inthe Premier League and even theChampionship,” said Taylor, whosecompany set up npower’s Test spon-sorship and have also worked withinsurers AXA and beer Amstel.

Curran, whose company managethe RBS Group’s global account and

Coca-Cola’s British football activity,added: “When you talk about Man

United and one or two others in thePremier League you’re talking aboutglobal teams. Nowadays you have tocompare them to the likes of Barcelona, Real Madrid, Inter, ACMilan, Bayern Munich.”

 The ability of United, and the restof the Continent’s elite, to tap new commercial revenue streams seemslikely only to cement their position atthe top and increase the gap betweenEuropean superclubs and the rest.

“The more successful you are, themore TV and sponsorship income youget, the more fans you attract global-ly, the more money you produce to  buy new players and so it goes on,”said Taylor. “If you are at the bottomof the Premier League you’d call it a

  vicious circle, if you are at the top you’d call it a virtuous circle.” There is

hope for those lower down thefood chain, however, as moresuccessful clubs could mean yet-  bigger broadcast contracts, whose revenue is distrib-uted among clubs.

“There is sometrickle downeffect,” saidCurran.

“The wholecake is get-ting better,albeit the b i g g e rslices aregettingpropor-tionate-

l y larger.”

BY FRANK DALLERES

BUSINESS OF SPORT▲

Sport26

 Neil Warnock’s QPR lost 2-0 at home to Rochdale. Picture: ACTION IMAGES

£26m – amount Arsenal earned lastterm for reaching Champions Leaguelast 16, in prize and TV money alone£15m – estimated amount they earnedon top in matchday revenue£47m – amount finalists Man Utdearned in prize and TV money alone£7m– what Europa League winnersPorto took home in prize and TV money

KEY FIGURES | EURO MILLIONS

Arsenal boss fears high-profile departurescould derail his team ahead of match thatwill define his budget and campaign

Wenger is in thetoughest spell of his15-year reign.

 Picture: GETTY 

BY FRANK DALLERES

FOOTBALL▲

(0)

(1)

UDINESE

ARSENAL

Page 27: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 27/28

PLAYMAKER Samir Nasri was pulledout of Arsenal’s trip to Udinese at the11th hour after Manchester City final-ly ironed out the disagreementsdelaying his £24m transfer.

Nasri trained with the Gunnerssquad yesterday morning (right)and looked set to board theplane to Italy with the rest of the squad, amid an ongoingstand-off over who would pick up the tab for agents’ pay-ments.

But a deal was finally struck   before lunch and Nasriinstead set off forManchester, wherehe was due to under-go a medical andcomplete a movethat has edgedtowards comple-tion over a num-

 ber of weeks.City boss

Roberto Mancinihad been keen totie it up before

  Arsenal facedUdinese in thise v e n i n g ’ sChampions Leagueplay-off. If selected,Nasri would have

 become ineligible to play for City inthe same competition this season.

  Arsenal manager Arsene Wengerhad initially wanted to keep Nasri,and remarked earlier in the summerthat the Gunners could not be consid-ered “ambitious” if they sold bothhim and captain Cesc Fabregas.

But yesterday, a week after Fabregasleft for Barcelona, Wengertook comfort in the fact thatthere were no immediatedoubts over the futures of hisremaining first-team players.

“You want to have players who do not play and think they 

go the next morning. It’s notideal. So you want players

 who are completely com-mitted to the long-term, to defend ourchances,” he said.

“The summer was  very difficult  because we hadCesc Fabregas andNasri on perma-nent transfernegotiations andthat is draining

in the end.“We lost two great

players and that’s a sadside of the story but at

some stage it has to beover, because you want tofocus on the future.”

Spurs to drop stadium appeal

  TOTTENHAM are expected to aban-don their legal battle over theOlympic Stadium and could do so asearly as today – clearing the way for

  West Ham to move in after London2012.

Spurs are instead likely to revert toplans to build a new stadium next totheir current home White Hart Lane,

contingent on Mayor Boris Johnsonfreeing up public sector cash to aidthe project.

 The north Londoners are due in theHigh Court today for the latest roundof their legal challenge to West Ham’sselection as preferred bidders for the

  brand new £530m venue in theOlympic Park.

But the appeal looked set to bedropped providing talks last night

  between Tottenham chiefs and the

Mayor’s office succeeded in breakinga long-running impasse over how much central funding the club will

 be granted. The outcome suits all parties, with

ceaseless campaigning helping Spursachieve the help they have always feltentitled to, while West Ham will toasta hugely significant hurdle cleared.

Spurs argue they should not haveto pay for all upgrades to transportlinks a new stadium would entail.

Man City leaveit late but seal

Nasri swoop

WORRY

BY FRANK DALLERES

FOOTBALL▲

BY FRANK DALLERESOLYMPICS▲

27

ALL HAIL THE UNSUNG HEROOF ENGLAND’S RISE TO GLORYANDY LLOYD ON WHY MATT PRIOR ISFINAL PIECE OF THE JIGSAW: PAGE 25

TOP 10 PREMIER LEAGUE SHIRT DEALS OF 2011-2012

Club Sponsor Value

Man Utd Aon £20m

Liverpool Standard Chartered £20m

Man City Etihad £20m

Chelsea Samsung £13.8m

Tottenham Aurasma (Autunomy) £10m

Aston Villa Genting £8m

Arsenal Fly Emirates £5.5m

Fulham FxPro £4m

Everton Chang Beer £4m

Newcastle Northern Rock £2.5m

source:sportingintelligence.com

Page 28: Cityam 2011-08-24

8/4/2019 Cityam 2011-08-24

http://slidepdf.com/reader/full/cityam-2011-08-24 28/28

www.saxobank.co.uk 

 Alberto Contador Three time Tour de France winner.

© Tim De Waele Team Saxo Bank - SunGard 

Use a QR scanner on your mobile toget the demo

WHEN ONE ASSET CLASS

ISN’T ENOUGH

Our products are traded on margin which carry a high degree of risk to your capital and you risk incurringlosses that exceed your initial deposit. You should ensure you understand the risks involved.

Saxo Bank A/S is authorised by Finanstilsynet, the Danish Financial Supervisory Authority.

TRADE YOUR ENTIRE PORTFOLIO FROMONE ACCOUNT

THE AWARD WINNING PLATFORM.

Fast execution with one-click trading. Remain in control with a range of order types. Personalise your platformand access a wide range of trading products: 160+ FX crosses (including spot Gold & Silver), 7000+ CFDs,21 Index Tracking CFDs, ETFs, stocks from 26 global exchanges, FX Options, Futures and Bonds.For more information please contact: 020 7151 2100

Winner of 6 Euromoney

FX Awards 2011