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Issue 1,149 Monday 7 June 2010 www.cityam.com FREE

RMT UNION VOTES G20 scraps

global tax
FOR TUBE STRIKE on banks

▲
BANKING
BY JENNY FORSYTH
THE government has vowed to press
TRANSPORT ahead with its plan to tax British
▲

BY STEVE DINNEEN banks – even though the world’s top

finance chiefs have scrapped a univer-
LONDON’S transport network could sal levy on financial firms.
be thrown into chaos this summer Speaking after the G20 summit in
after tube drivers voted in favour of Korea, chancellor George Osborne
strike action. said: “We’ll introduce a levy regard-
A walk-out could spark the worst less of whether other countries will
underground disruption since the or will not. It’s legitimate to do so
two-day strike last June that left thou- because of the cost to the taxpayer of
sands of workers stranded. all the action we have taken and the
Rail union RMT’s members voted by implicit state support they enjoy.”
more than 90 per cent to strike over a At the same meeting, the G20 also
“continued threat to jobs and safe ripped up its commitment to fiscal
working conditions and in support of stimulus in light of the Eurozone
a decent pay increase this year”. debt mountain. Members had earlier
The union now has the right to vote said removing the support too soon
for a full strike or other industrial would be dangerous, but changed
action. No dates have been set. their minds in the face of a possible
The news will come as a blow to the second credit crisis.
new coalition government, which is “Those countries with serious fiscal
preparing deep cuts in public spend- challenges need to accelerate the pace
ing to stem Britain’s out-of-control of consolidation. We welcome the
budget deficit. The strike threat will recent announcements by some
be seen as a warning that the unions RMT head Bob Crow says tube workers will not pay for the “disastrous privatisation experiment”. Picture: REX countries to reduce their deficits in
are in a bellicose mood. 2010 and strengthen their fiscal
Central to the tube dispute is the company will remain in place but remain committed to continuing our was privatised in 1984. frameworks and institutions,” the
controversial public-private partner- workers fear cuts will be made by can- negotiations and avert strike action Meanwhile, Unite has increased G20 said in a communique issued
ship between Transport for London celling planned line closures and which would cause unnecessary dis- strike pay for British Airways (BA) after the talks.
(TFL) – funded by the taxpayer – and freezing pay. ruption to the travelling public.” cabin crew on the picket lines as talks Attempts to introduce the global
privately owned Tube Lines (TL). An RMT spokesman told City A.M. TL is the second major British firm between the two are postponed. bank levy to fund future bailouts
TL was brought in to oversee urgent that Mayor of London Boris Johnson to agree to strike action in a week. BT The news comes as BA and Unite were ditched after opposition from
upgrade work to the Jubilee, Piccadilly could have stripped TL of its contract workers unanimously backed a strike bosses were absent from the UK over Japan, Canada and Brazil, whose
and Northern lines but has come in without buying the shares, allowing it ballot over pay after rejecting a two the weekend suspending the possibili- banks needed no public aid during
for fierce criticism for falling behind. to overhaul the upgrade work at a per cent rise. Communication ty of an end to the dispute. Unite joint the crisis. But the group said the
TFL took control of TL this month fraction of the cost. Workers Union members will now general secretary Tony Woodley flew financial sector should make a “sub-
after paying its shareholders £310m A TL spokesman said: “We have vote on whether to escalate the dis- to Cyprus for a holiday, while BA chief stantial” contribution toward the cost
for their equity. The structure of the tabled an acceptable pay offer and we pute to the first strike action since BT Willie Walsh is at a Berlin conference. of any rescue. P2: ALLISTER HEATH
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 2 News CITYA.M. 7 JUNE 2010

G20’s failure was all too predictable

where breathless, uncritical broad- another, even more damaging crisis. global, it seems.
casters hailed Brown’s supposed bril- But the most important reason why All of which poses a real challenge
liance and almost anointed him (as all of this G20 adulation was never to George Osborne. He will be unveil-
well, of course, as Barack Obama) as going to last was because the organisa- ing a new tax on banks on 22 June –
the world’s saviour. The next day’s tion is fortunately completely power- yet many other countries will not now
headlines were all about the trillions less. It costs nothing for politicians to be doing so. Combined with the loom-
of dollars that the world had agreed to sign grandiose declarations – but poli- ing hike in capital gains tax, the City’s
spend on the IMF and to stave off cies still need to be discussed and attractiveness is about to take a knock.
EDITOR’S LETTER another Great Depression. voted through at a national level, So any tax that Osborne does intro- ,
As I wrote at the time, it was all which is why there luckily never was duce must be carefully controlled and
ALLISTER HEATH hyped-up nonsense. The figures and any chance of a global bank tax. limited. A levy paid by the industry
claims themselves were a combina- We are now firmly back on planet into a resolution fund that provides
IT is funny how quickly moods tion of double-counting and propa- earth. The G20 officially scrapped temporary financing to allow an
change. It was not that long ago that ganda. The idea of a cartel of plans for a universal global bank tax orderly wind-down of large firms in
the G20, courtesy of Gordon Brown’s nation-states uniting to prevent dis- on Saturday, giving countries plenty the case of failure would be a good,
spin machine, was being hailed as a
quasi-mythical authority that was
sent or competition on tax, regulation
and spending was spookily undemoc-
of wiggle room. Opposition from
Japan, Canada and Brazil – whose
positive move. It would make it clear
that no bank is too big to fail, reinject www.cityam.com
about to solve all of the world’s eco- ratic. The supposed commitment to banks needed no aid – killed the idea. the fear of failure into the system and
nomic problems. There would be a
new era of enlightened global coordi-
“expansionary fiscal policy” was mere-
ly an excuse for governments that had
Several ministers signalled that a
lengthy phase-in for increasing capital
create a system to control the collater-
al damage from a major financial
Allister Heath gives his
nation, we were told – in fact, it was already lost control to pretend that requirements was now inevitable. This bankruptcy. But any other kind of tax views on the market and
all about the g-word: a global bank they were following international best is sensible – but yet again contradicts – especially one aimed at grabbing
tax, global regulation, global fiscal practice. These huge deficits have previous statements. The G20 even populist headlines – would be a disas- economic situation
stimuli, globally low interest rates and been singularly ineffective in boosting said that public finances had to be ter and merely incentivise London-
universal quantitative easing. This growth and have pushed govern- brought under control in a way that based firms to move elsewhere. Let us SPONSORED BY
G20 love-fest climaxed in a gathering ments’ balance sheets beyond break- was tailor-made for each country's hope Osborne gets it right.
at the Excel Centre in the Docklands, ing point, laying the grounds for needs. National and local are the new [email protected]

7th Floor, Centurion House,

24 Monument Street,
London, EC3R 8AJ
Browne wins
Whitehall role
Tel: 020 7015 1200 Fax: 020 7248 1729
Email: [email protected] www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
POLITICS been sounded out, including Sir Chris
▲

Associate Editor David Crow

Lifestyle Editor Zoe Strimpel BY DAVID CROW Gent, chairman of GlaxoSmithKline, Kerviel will be arguing his bosses knew what he was up to Picture: REUTERS
Art Director Darren Soulsby Sir Roy Gardner, chairman of Compass

Kerviel trial set to begin

Pictures Alex Ridley LORD Browne, the former chief execu- Group and Sir Nigel Rudd, the chair-
tive of BP, is set to be appointed as the man of BAA and Invensys.
Commercial government’s most senior independ- Currently, Whitehall boards are
Sales Director Jeremy Slattery ent director in a massive shake-up of chaired by the department’s perma-
Deputy Sales Director Harry Owen Whitehall. nent secretary, with directors sourced
Head of Distribution Nick Owen He is being enlisted as part of plans from the public sector.
to inject private sector thinking into But under the new plans, master- BANKING trader who admits to exceeding bank
▲

Distribution helpline the senior civil service, which is often minded by cabinet secretary Francis limits and producing false informa-
If you have any comments about the distribution BY DAVID HELLIER
of City A.M. Please ring 0207 015 1230, or email accused of being wasteful and over- Maude, the board will be chaired by tion.
[email protected] staffed. the secretary of state while at least one JEROME KERVIEL, the rogue trader The case will focus on Mr Kerviel’s
Browne will become a senior inde- director will have blue-chip business blamed by the French bank Société claims, detailed in a book he had pub-
Editorial Statement pendent director on the board of the experience. Générale for clocking up losses of lished last month, that his bosses
This newspaper adheres to the system of Cabinet Office, carrying out a yearly more than £4bn, defends himself in knew what he was doing and that it
self-regulation overseen by the Press Complaints audit of public spending and report- Lord Browne will help court tomorrow facing a possible five was common practice in the bank to
Commission. The PCC takes complaints about the ing his findings to the Prime Minister. year prison term. exceed trading limits.
editorial content of publications under the Editor’s recruit 16 independent
And he will recruit a further 16 big- 33 year-old Kerviel is being defend- Soc Gen vehemently denies any
Code of Practice, a copy of which can be found at
hitters from the business community directors in a bid to ed by one of France's best known complicity in Kerviel's actions.
www.pcc.org.uk
to become directors on the boards of inject private sector criminal lawyers Olivier Metzner. The trader scandal left SocGen reel-
Printed by Newsfax International,
Beam Reach 5 Business Park, other government departments. thinking into Whitehall Metzner is seen as having a tough ing and last April Daniel Bouton
Marsh Way, Rainham, Essex, RM13 8RS Several potential candidates have brief in having to defend the former resigned as chairman.

WHAT THE OTHER PAPERS SAY THIS MORNING

arguably the most successful foreign
investment bank in China.

CROP SQUEEZE TO LIFT ORANGE JUICE HBOS MANAGERS TO SURVIVE UNIT INQUIRIES MOUNT AFTER PWC CHOCOLATE LOVERS HIT BY RISING AUSTRALIA LAUNCHES PROBE INTO
PRICE SALE ‘FAILED TO NOTICE’ MISTAKES PRICE OF COCOA AS DISEASE BLIGHTS GOOGLE'S STREET VIEW
The price of orange juice will rise in Bankers at a private equity arm of PricewaterhouseCoopers is facing an CROPS Australia launched a police investiga-
coming months as Brazil’s citrus HBOS that made heavy losses will inquiry by accounting regulators into Most chocolate lovers will never have tion Sunday into whether Google ille-
crop, the world’s largest, sees its continue to manage its assets after an its failure to notice that JP Morgan heard of swollen shoot viral disease. gally collected private information
worst harvest in seven years because anticipated £500m sale of the unit’s was paying up to £16 billion of But this nasty complaint is blighting from wireless networks, becoming at
of bad weather and diseases, accord- investments by Lloyds Banking clients’ money into the wrong bank the crops of thousands of cocoa grow- least the second country to probe the
ing to Cutrale of Brazil, the leading Group. In a deal expected to be accounts. Last week the Financial ers in the Ivory Coast - by far the Internet giant’s Street View mapping
orange juice producer. Orange juice is agreed later this month, Coller Services Authority fined the invest- world’s biggest exporter. This single service. The Australian criminal inves-
a $20bn industry with prices affect- Capital, the private equity firm, will ment bank £33.3 million — the African country accounts for almost tigation comes as more regulators
ing farmers in Sao Paulo and Florida, take a stake of about 60 per cent in largest penalty that the City regulator 40pc of the 3.5m tonnes of cocoa that and consumers watchdogs complain
processors, trading houses and bot- the portfolio. has imposed — for breaches of client end up as plastic-packaged chocolate that Google doesn’t take people’s pri-
tlers such as Coca-Cola and Pepsi. money rules. bars. vacy seriously enough.
FORMER POLAR CAPITAL TRADER
GOLDMAN STUNG BY BACKLASH IN RAISES $200M FOR HEDGE FUND BLACK IS BACK IN FASHION AT FASHION RETAILER EAST BACK IN THE PROPOSED EISAI CHEMOTHERAPY
CHINA Julian Barnett, the 33-year old star CONRAN SHOP BLACK THANKS TO BETTER SALES AND DRUG HELPS TREAT ADVANCED
Public criticism of Goldman Sachs hedge fund trader who left London Sir Terence Conran is set to make a COST CUTTING BREAST CANCER
has come to China, where the invest- hedge fund manager Polar Capital a profit from his obsession with good East, the bohemian fashion retailer in A new type of chemotherapy drug
ment bank has been lambasted in year ago, has raised $200m (£138m) design for the first time in a decade. which former Channel 4 chairman being developed by Japanese pharma-
articles in state-controlled media. for his new venture, Ridley Park The Conran Shop, which he estab- Luke Johnson has a stake, has moved ceutical company Eisai helped
Parts of the media, apparently Capital. Barnett’s flagship fund lished in 1973 as a more adventurous back into the black due to improved women with advanced breast cancer
emboldened by congressional launched at the beginning of May. cousin to his Habitat chain, is expect- sales and cost cutting. The chain live longer than women treated with
inquiries and public anger in the Ridley Park Capital has been one of ed to break into the black after years made pre-tax profit of £2.1m over the standard cancer therapies, according
west, have openly slated Goldman, the most anticipated start-ups. of losses. year to January 31. to new research.
CITYA.M. 7 JUNE 2010 News 3

Lloyds shareholders
HSBC boss Michael
Geoghegan said the
bank’s strategy
was to expand
through strategic

in claim over HBOS

relationships in
China

Picture:
REUTERS

Daniels and former chairman Sir

▲
BANKING
BY STEVE DINNEEN Victor Blank, stating the takeover doc-
uments did not reveal the size of the
SHAREHOLDERS in state-backed bank £25.4bn loan the government had
Lloyds Banking Group have launched made to HBOS.
a £14bn claim against the govern- The group Lloyds Action Now
ment and the bank’s directors, saying claims shareholders were deceived
they were misled into voting in into shouldering the burden of saving
favour of a takeover of rival bank HBOS, which should have fallen on
HBOS. taxpayers in general. As it was, the
The group has written to the government was still forced to step in
Treasury, Lloyds chief executive Eric and partially nationalise the bank.

HSBC to fully
back BoCom
rights issue
BoCom, which scaled back the size
▲

BANKING
BY EMMA SADOWSKI of the rights issue by more than 20
per cent, is raising the funds in a bid
HSBC signalled its strength and fur- to replenish its capital ratios.
ther commitment to the East after It is understood that the size of the
spending $921m (£639m) to maintain rights issue was slashed by BoCom
its shareholding in China’s Bank of because of a weak market and the
Communications (BoCom) after it flotation of state peer Agricultural
launched a rights issue. Bank of China.
The UK banking giant currently HSBC took up its shareholding in
owns 19 per cent of BoCom and once BoCom in 2004 when it initially spent
the $4.8bn capital raising exercise is $1.8bn buying out the highest possi-
complete, HSBC will have invested ble stake in the bank permitted by
$3.42bn in the bank. Chinese regulators.
Funds for the investment in The recent move by HSBC, coupled
BoCom’s rights issue will come from with Geoghegan’s relocation to Hong
HSBC’s own resources, with the bank Kong in February, is a further sign
agreeing to subscribe for 1.4bn shares that the bank is shifting from the
at HK$5.14 a share. West to the East.
HSBC maintained that the move
was a sign of its financial strength as ANALYSIS l Bank of Communications
it continues to maintain a tier one HK $
capital ratio of 11.1 per cent. 9.5 8.22
The move will reinforce its position 4 Jun
as a leading bank in China at the 9.0
same time, according to the bank.
Chief executive and chairman 8.5
Michael Geoghegan said: “[BoCom] is
our strategic banking partner in 8.0
mainland China and we are very
pleased with the progress we have
made together.” 1 Mar 1 Apr 1 May 1 Jun

New questions PwC asks Cable

on Glazer debt for rules clarity
▲

LEISURE ACCOUNTING
A PANORAMA programme is set to P R I C E WA T E R H O U S E C O O P E R S ’
cast further doubt on the Glazer fam- (PwC’S) chairman Ian Powell has
ily’s control of Manchester United by urged business secretary Vince Cable
revealing the American owners are to clarify ground rules for auditors as
struggling with debts of £1.1bn. fears escalated over a potential com-
The BBC investigation, due to be petition inquiry into the “Big Four”
aired tomorrow, exposes £400m of firms. In an interview with the FT,
previously unknown debt and ques- Powell said PwC would like to work
tions how much cash will be available with Cable to know what the ground
for Sir Alex Ferguson to strengthen rules are around audit reporting and
his team. “his aspirations for the future”. Cable
The probe centres on the Glazers’ said in the lead up to the election that
ailing shopping mall empire, run by he supported moves to launch a
First Allied Corporation, and is based probe into the dominance of the large
on the findings of City analyst Andy accounting firms and the “magic cir-
Green, a United fan. cle” of law firms.
CITYA.M. 7 JUNE 2010 News 5

Goldman to work on defence

plan for possible BP takeover
shares plummeted. rent tie that binds the two together.

▲
ENERGY
BY EMMA SADOWSKI Analysts suggested last week that Metherell is a former army officer.
Royal Dutch Shell would top the list The news is good for Goldman’s
GOLDMAN SACHS is understood to be of potential suitors for BP given its reputation, which last month suf-
preparing a defence strategy for BP in size and global operations. fered as the bank found itself at the
the event that a rival oil company A source close to the situation said center of a Securities and Exchange
makes a takeover approach. that Goldman would be the first Commission (SEC) investigation.
The investment bank, which is a adviser called in to head up the Goldman, which also faces a moun-
regular adviser to BP, is thought to be takeover defence because of the deep- tain of lawsuits connected to the sale
compiling a strategy to fend off a rooted past the two share. of mortgage securities, is under inves-
potential bid as takeover speculation It is also understood that Goldman tigation over fraud allegations related
in the market built up when BP’s partner Julian Metherell is the cur- to the subprime crisis.

BP boss Tony Hayward said he will not stand down Picture: REUTERS

BP claims it is
catching over
half spilt oil
Gulf would be captured.
▲

ENERGY
However, uncertainties still remain
BY EMMA SADOWSKI over this latest method as Admiral
BP is currently capturing just over Thad Allen, who is heading the US
half of the oil leaking into the Gulf of government’s response to the spill,
Mexico after it successfully placed a feared that water could rush into the
containment cap over the damaged containment cap because the seal is
blow out preventer. imperfect.
The embattled oil giant said over Hayward said: “Everyone at BP is
the weekend that it was already heartbroken by this event, by the loss
siphoning 10,500 barrels of oil a day of life and by the damage to the envi-
through the new cap to a ship located ronment and to the livelihoods of the
on the water’s surface, representing a people of the Gulf Coast.”
little over a half of the 19,000 barrels The news comes as Hayward, who
of oil leaking out of the well. reassured shareholders on Friday that
BP chief executive Tony Hayward BP would payout its year-end divi-
said yesterday: “The containment cap dend, said he would not stand down
is producing around 10,000 barrels of from the post despite the number of
oil a day to the surface which is being people wanting him to do so.
processed on the surface.”
He said that it was difficult to say ANALYSIS l BP
how much of the leaking oil would be 700 p
captured by the containment cap but 433.35
650 4 Jun
that it is “probably the majority”.
Further developments are expected 600
to be announced by BP later this after-
noon. 550
Hayward said that another contain- 500
ment system would be implemented
later this week, probably by the week- 450
end, and if it was successful then the 400
majority of the oil flowing into the 8 Mar 26 Mar 19 Apr 10 May 28 May

Ad campaign for leak provokes

an angry response from Obama
But President Barack Obama
▲

ENERGY
lashed out against the ad campaign.
AN APOLOGETIC ad campaign He said: “What I don’t want to hear
launched by BP over the weekend has is when they’re spending that kind of
sparked an angry response in the US. money on an ad campaign, that
In the print, online, radio and tele- they’re nickel and diming fisher-
vision campaign, BP chief executive men.”
Tony Hayward pledges that the com- BP would not confirm how much
pany will do everything it can to not the ads cost and said that “not a
only fix the damage caused by the penny” of the money used for the ad
mammoth Gulf of Mexico oil spill but campaign came out of the spill
to ensure that it never happens again. response.
 6 News CITYA.M. 7 JUNE 2010

Entrepreneurs back our

campaign on CGT hike
added her name to the growing list will be seriously discouraged,” said
CITY A.M. of supporters, as did Shaf Rasul, the Meyer.
CAMPAIGN founder of E-net and Dubai property
developer.
Meanwhile, David Cameron
appears to be readying a long list of
BY DAVID CROW AND VICTORIA BATES Together, the pair star in the BBC’S concessions on CGT to win round
TWO of Britain’s most recognisable Online Dragons’ Den, a spin-off of Tory backbenchers, many of whom
entrepreneurs have thrown their the original TV show that is aired are aghast at the plans.
weight behind City A.M.’s campaign online and on TV. Mark Field, MP for the Cities of
against plans to hike capital gains tax “There is a great danger that if the London and Westminster, said the
(CGT). government raises CGT to 40 per “mood music” had changed and that
Julie Meyer, the founder of First cent, entrepreneurs who are the he expected some kind of taper relief
Tuesday, chief executive of Ariadne value creators in our society and the to be introduced to protect long-term
Shaf Rasul and Julie Meyer host the BBC’s Online Dragons’ Den Picture: BBC Capital and City A.M. columnist, driving force behind new businesses investors.

NEWS | IN BRIEF

Smile. Flights Chinese iPhone maker ups wages after suicides

IPhone maker Foxconn has offered workers at its Chinese manufacturing hub a 66
per cent performance-based pay rise as it tries to deal with the fallout from a spate
suicides there. Foxconn, owned by Taiwan contract electronics maker Hon Hai
Precision Industry said yesterday production line workers would be able to earn

from £25.99
2,000 yuan (£203) a month if they pass a three-month performance review. The hike
comes on top of a 30 per cent across the board rise in the cash part of wages
announced last week and means wages will be more than double since employee sui-
cides became a major issue last month. “This wage increase has been instituted to
safeguard the dignity of workers, accelerate economic transformation... and rally and
sustain the best of our workforce," said Foxconn founder and chairman Terry Gou.

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CITYA.M. 7 JUNE 2010 News 9

Businesses tell government

to avoid knee-jerk tax hikes
John Dickie, director or strategy of the parliament and to raise indi-

▲
POLITICS
BY DAVID CROW and policy at London First, said: “The rect taxes like VAT if it must.
UK has traditionally been viewed as However, the British Retail
BUSINESS organisations will today having a business supportive tax Consortium will tell the government
call on the government to avoid knee- regime, but recent changes which that public spending cuts alone
jerk tax rises in the emergency came from nowhere – like the non- should be used to slash Britain’s
Budget later this month. doms tax, new 50 per cent top rate yawning £156bn budget deficit.
In a report published today, City income tax and the bankers’ bonus But it will warn against reducing
lobby group London First warns the tax – have put this reputation under spending too quickly, amid fears
UK is losing its reputation as a busi- threat.” among retailers that a VAT hike and
ness-friendly location thanks to a Dickie will call on the government swingeing cuts could hammer the
series of surprise tax rises. to reverse the 50p rate before the end retail sector.

The Prime Minister will launch a public consultation Picture: Micha Theiner/City A.M.

Cameron asks
public to help
cut spending
It is hoped that the consultation
▲

POLITICS
BY DAVID CROW phase will provide political cover for
unpopular decisions while steering
THE government will this week out- the debate away from cuts to public
line plans for an unprecedented pub- sector reform.
lic consultation on spending cuts, in Third sector and private sector
a bid to win broad support for the organisations will be encouraged to
toughest fiscal tightening since contribute to the debate to convince
World War Two. the public they can deliver services
In a speech today David Cameron that have traditionally been run by
will announce plans for “a process to the state.
engage and involve the whole coun- “Given the massive scale of the
try in the difficult decisions that will challenge facing the new government
have to be taken”. we need to throw open the doors of
City A.M. understands that Number Whitehall and encourage new think-
10 and the Treasury have spent the ing. Anyone who thinks the spending
weekend plotting a series of town hall review is just about saving money is
meetings to discuss spending cuts, missing the point,” said a Treasury
while a new website will be launched source.
to let the public have their say. Both The chancellor is hopeful he can
will be unveiled tomorrow. win the debate on the need to cut
The findings will be considered public spending, especially after the
when chancellor George Osborne G20 backed his decision to make cuts
draws up his comprehensive spend- in 2010 and urged other highly-
ing review in the Autumn. indebted countries to follow suit.

Star chamber will work with

ministers on reducing budgets
leagues.
▲

POLITICS
It is hoped that the more collegiate
THE chancellor is planning to over- way of working will end the
haul the way the comprehensive internecine warfare that characterised
spending review is carried out by cre- spending reviews under Labour.
ating a new “star chamber” that will When Gordon Brown was chancel-
question ministers over their depart- lor, cabinet ministers were given year-
mental budgets. ly spending totals and effectively told
City A.M. understands the chamber to “like it or lump it”. Under this tech-
will be staffed by “big beasts” like Ken nique, the government hopes minis-
Clarke and William Hague, who will ters themselves will help identify
test the spending decisions of their col- potential spending reductions.
 The Capitalist
10 CITYA.M. 7 JUNE 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
[email protected]

Above: Jenny Batchelor of Grant Thornton, Left: Polo in the Park founder Daniel Fox-Davies
Jessica Franks from Future Capital Partners Above: Robert Walters staff enjoy the corporate City A.M. winning team
and Graeme Foster from Selftrade hospitality New York fight it out
against Otkritie team
Moscow
Below: The ladies came
decked out in their finery

© 2010 Continental Airlines. Inc.

GOURMET FOOD, WINE AND A

CIVILISED ATMOSPHERE.
Above left: Tim Bullman and Richard Barnett, founders of main sponsor Mint
THAT’S THE FESTIVAL
AND THE FLIGHT. POLO IN THE PARK GETS
CITY’S VOTE FOR BEST
CORPORATE DAY OUT
®
BusinessFirst .
Where a little difference makes all the difference.
We’re different to other airlines. We like to provide an environment where you’re centre IT WAS off to Hurlingham Park in The method of transport chosen by
stage. We bring entertainment, great cuisine and fine wine to your full 180º recline, sunny south-west London at the week- the firm’s jovial head of market mak-
end for an action-packed few days at ing Russell Jackson was his renowned
6’6” flat bed. You choose the running order. Welcome to BusinessFirst. Where
the second annual Polo in the Park “Love Bus”, a vintage Routemaster
a little difference makes all the difference. Flying four times a day, from tournament. bus. Arriving mid-morning to copious
Heathrow to Newark Liberty International Airport, our New York With the event extended this year amounts of beer, wine and crème de
area hub. For reservations and information, from two days to three due to popular menthe shots (don’t ask, just knock it
go to continental.com demand – and Friday earmarked as back), the rules of the bus were quick-
the official corporate hospitality day ly explained to newcomers, including
for the City – the attendees sipped the ever-popular “Stop the Bus” game.
Lead Sponsor champagne, Pimms and beer as they This, for those unfamiliar with the
cheered on the teams from London, rules, involves picking numbers out
New York, Paris, Buenos Aires, of a hat, with the chosen victim
Geneva, Moscow, Sydney and Durban. obliged to jump off the bus when it
The event is the brainchild of stops at traffic lights, dive into the
Daniel Fox-Davies, the helicopter-fly- nearest shop, buy whatever item they
ing adrenaline junkie who founded lay their hands on, and race back onto
the City broker of the same name. the bus before it disappears out of
Fox-Davies was delighted to see so sight. A few lucky individuals just
many people turn up to enjoy them- managed to make it back, including
selves, though he’s now also on a mis- Lewis Charles’ Paul Kettle, who
sion to promote polo as an amateur caught up with the bus at a leisurely
recreational sport. stroll and was greeted as a hero when
The man himself speaks from expe- he produced a bag of Kettle Chips.
rience, as he started playing without Jackson himself then had his num-
ever having ridden a horse a few years ber called, chased after the bus at full
back, and now plays every week in the sprint and fell victim to his own strict
summer. Mind you, he left the play- rules when the bus chugged off down
ing at Hurlingham at the weekend a clear road towards the next pub.
firmly to the professionals, insisting
he wanted to keep up his reputation.
“I’m definitely not playing along with
the best players in the world!” he
HORSING AROUND
The event’s corporate sponsors,
chuckled to The Capitalist. “My clients including City A.M. – whose team won
actually think I’m good, and I don’t the tournament – IG Index, Gaucho,
want that illusion shattered…” Well, Otkritie and Thomson Reuters, all
the cat’s certainly out of the bag now. made the most of the hospitality, with
primary sponsor Mint, sponsor of the
London team, taking the lead despite
LOVE BUS a less-than-stellar knowledge of the
Speaking of Fox-Davies, the boys and sport.
girls back at the company headquar- “My kind of horse has four wheels and
ters near Embankment were eager to is painted red,” joked co-founder
capitalise on their boss’s enterprising Richard Barnett. “But seriously, we do
efforts, ferrying a whole bunch of love the game – it’s quite simply the
clients and eager hangers-on over to best day out in London!” Hear, hear.
the polo on Friday. SEE FULL SPORTS REPORT: P29
CITYA.M. 7 JUNE 2010 News 11

WAS THE ECB RIGHT TO BUY GREEK BONDS?

Trichet set to
Interviews by Jessica Mead

ELGA BARTSCH | JENNIFER MCKEOWN |

face heat over “ “

MORGAN STANLEY CAPITAL ECONOMICS

Sterilisation is intended to be a sig- The ECB will stress that its actions
nalling device that its bond purchase pro- are being “sterilised” to offset any potential
gramme is not meant to be expansionary inflationary implications. But with the grim
monetary policy. Otherwise it would be putting economic outlook suggesting that deflation
its credibility at risk. If there is a need to push is the bigger risk, we suspect that it might

Greek bonds consider new refinancing operations.

JACQUES CAILLOUX | RBS

”
liquidity into the markets then the ECB should

”
yet be forced into full-blown “quantitative
easing”.

“
ECONOMICS
▲

market confidence.
BY JESSICA MEAD BNP Paribas economist Luigi The decision the ECB took was the right one – if it had not, the market situation would have continued to
Speranza says that a recipe to regain deteriorate – and it needs to be prepared to step up its purchase programme. But I would be prepared to argue
EUROPEAN Central Bank president market confidence should include “a

”
Jean-Claude Trichet is set to come clarification of the details of the against sterilisation: culturally it makes sense but from an economic point of view it doesn’t make sense. The ECB
under fire this week for the bank’s European Stabilisation Mechanism must speak with one voice; this chaos is not fruitful.
decision to buy Greek bonds. and an unconditional commitment
At the bank’s last meeting he coolly from the ECB to support the markets ANALYSIS l Bank of Greece lending to Greek banks Source: Henderson
dismissed speculation the ECB was until the SPV (special purpose vehicle) €bn
discussing buying Greek bonds – only is effectively working”, as well as 90
to reverse the decision a few days other reforms and further political
later. commitments. 80
The ECB felt it had to step in after Market participants have criticised
noting the huge hike in lending by the ECB’s poor communication and 70
the Bank of Greece to Greek banks. demanded greater clarity about the
He is expected to face a tough extent and future of the policy. 60
grilling over the change of heart this This week the markets will be look-
Thursday, at a press conference fol- ing to see whether the current policy 50
lowing the ECB’s monthly policy may be extended either financially or
40
announcement. geographically, if there will be a limit
Trichet is also likely to have to to the bond purchases and if there
30
dampen speculation of tensions not will be further refinancing.
only between governing council mem- RBS’s Jacques Cailloux said at last
20
bers – Trichet’s likely successor, Axel week’s ECB Shadow Council meeting
Weber, openly disagreed with the pol- that the ECB should be prepared to 10
icy – but also between Eurozone coun- step up its purchase programme in
tries. This has impaired the ECB’s case of further deterioration in the 0
credibility and done little to restore markets. Jan 2008 Apr 2008 Jul 2008 Oct 2008 Jan 2009 Apr 2009 Jul 2009 Oct 2009 Jan 2010 Apr 2010
 n ce
Fra

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Ger

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Hong

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CITYA.M. 7 JUNE 2010 News 13

Thiam to say sorry at AGM

they are unrepentant for trying to the blue chip back on a steady course.

▲
INSURANCE capture a rare opportunity by buying The embattled executive will talk up
BY OLIVER SHAH AND STEVE DINNEEN AIG’s Far Eastern arm but regret the Prudential’s growth prospects in Asia
mammoth costs the failed bid without AIA, promising to allocate
PRUDENTIAL chief executive Tidjane clocked up. capital and resources to the regions
Thiam will apologise to shareholders McGrath, who will deliver an open- that offer good returns.
today for wasting more than £450m ing speech to the annual general Both men, as well as finance direc-
in the course of the insurer’s disas- meeting at the QEII Conference tor Nic Nicandrou, will face the anger
trous AIA bid. Centre next to Wesminster Abbey, is of smaller investors. Pressure on
He and other senior Prudential fig- expected to reiterate his belief the Thiam grew over the weekend, as
ures will come face-to-face with share- deal fell apart due to market turbu- Richard Buxton, head of equities at
holders for the first time since the lence in Asia. the asset manager Schroders warned
embarrassing collapse of the $35.5bn Although sources close to he is in the firing line for his role in
(£25bn) bid. Prudential say the strategic review the “disastrous” failed bid.
In what promises to be a fractious demanded by some shareholders will The firm will also release what is
encounter Thiam and chairman not be announced, Thiam will try to expected to be a positive trading update
Pru chief executive Tidjane Thiam is expected to come under fire today Picture: GETTY Harvey McGrath will tell investors save his career by promising to get for the first five months of 2010.

Pru investors
to rebel over
executive pay
Meanwhile, sources close to the
▲

INSURANCE
BY STEVE DINNEEN company would not rule out a second
look at AIA, but only if the price came
THREE major investors are voting down markedly.
against Prudential’s remuneration The rumour mill went into over-
package, heaping more misery on the drive over the weekend when chief
embattled firm. executive Tidjane Thiam appeared
Aviva Investors, Schroders and Co- unwilling to close the book on the
operative Investments, all top 40 deal.
investors, say the awards being The Pru strenuously denied any
offered to two new executives, which second deal is in the making, issuing
have come under scrutiny lucrative a strongly worded statement saying:
“golden hello” deals, are unaccept- “We remain highly committed to Asia
able. through our current very successful
The remuneration package is still business. We will not be resurrecting
expected to pass at the annual meet- the AIA deal and any speculation is
ing today with around 10 per cent of misguided and inaccurate.”
shareholders likely to rebel. But a source said: “Thiam did not
Finance director Nic Nicandrou rule out a second bid because if the
received compensation of £638,000 in price dropped to an irresistible level
lost incentives from former employer then of course there would be one.
Aviva and Head of the Pru’s UK busi- “This isn’t likely but it would be
ness Rob Devey was handed £290,000. foolish for him to say there will never
The Pru hit back at the package last be a deal.”
night, telling City A.M.: “The award of
these restricted shares, made on join- ANALYSIS l Prudential
ing last year, was to compensate these 600 p 556.00
individuals for the loss of outstand- 4 Jun
ing deferred share awards at their 580
previous employers.
“This is in line with FTSE 100 best
practice. Our directors remuneration
540
policy is linked to the long term per-
formance of the company.
“Our remuneration report received
a Blue Top from the ABI and Risk 500
Metrics gave it a ‘for’ vote.” 8 Mar 26 Mar 19 Apr 10 May 28 May

NIC NICANDROU ROB DEVEY

PRUDENTIAL HEAD OF
FINANCE DIRECTOR PRUDENTIAL UK

SALARY: £550,000 SALARY: £550,000

SHARES: £638,000 SHARES: £290,000

Nic Nicandrou was awarded 110,000 Rob Devey received 57,000 shares, or
shares as part of the deal to lure him £290,000, when he joined the firm,
from Aviva. This translates to around which can be cashed immediately.
£638,000, to be paid over a number He joined Prudential from Lloyds
of years. He worked for Aviva for 11 Banking Group where he has worked
years, most recently as finance direc- since 2002 in a number of senior roles
tor for Norwich Union Life. He was across insurance and retail banking,
previously Aviva group financial con- including as managing director of
trol director and before that Aviva HBOS Financial Services and manag-
Group financial management and ing director of HBOS General
reporting director. Insurance.
 14 News CITYA.M. 7 JUNE 2010

Chinese wind power firm set

for £810m Hong Kong float
firming information from sources deal.
▲

ENERGY
BY STEVE DINNEEN close to the deal. Goldwind has grown into one of
Goldwind said in a statement filed the largest wind turbine makers in
CHINESE wind power equipment sup- with the Shenzhen exchange that it the world. It derives most of their
plier Xinjiang Goldwind Science & planned to set the price for the offer- sales from wind equipment for
Technology said yesterday it planned ing on 12 June, with trading due to onshore power stations, but see
to raise up to HK$9.1bn (£810m) in a begin on 22 June. potential in offshore wind.
Hong Kong initial public offering. There is a greenshoe option to Earlier this year it built a 4.5
Goldwind, which is already listed increase the issue by up to 59m addi- megawatt pilot project in the US state
on the Shenzhen stock exchange, said tional shares. of Minnesota to test its turbines in
it was selling 395m shares with an Chinese International Capital, cold weather. It expects to open an
indicative price range between Citigroup, and Credit Suisse are office in Chicago as it continues to
HK$19.8 and HK$23 per share, con- understood to be underwriting the grow outside its native market.

Chloride chief executive Tim Cobbold has rejected an existing 275p-a-share bid

Chloride set
for higher bid
▲ SUPPORT SERVICES some analysts say investors should
BY DAVID CROW hold out for an offer as high as 340p.
Shares in the firm, which provides
EMERSON ELECTRIC, the American power to its clients when traditional
manufacturing and technology giant, supplies fail, closed up 1.4 per cent on
will this week step up its pursuit of Friday as investors readied them-
guaranteed power supplier Chloride selves for an improved bid.
by increasing its £723m takeover bid. Chloride’s hand was strengthened
David Farr, Emerson’s chairman, is when it unveiled better-than-expect-
said to have spent last week ringing ed full-year results last month, with
round investors to work out what he profits dipping just five per cent to
would need to pay to get their sup- £41.4m despite the recession.
port for a hostile takeover. Emerson believes that merging the
Chloride, which sells guaranteed two companies will create a global
power supplies to the likes of HSBC leader in the uninterrupted power
and J Sainsbury, has already knocked supply industry.
back a 275p-a-share bid on the
grounds it undervalues the company. ANALYSIS l Chloride
That prompted Emerson to go over 320 p 236.00
4 Jun
the heads of Chloride’s board, led by 300
chief executive Tim Cobbold, to see if
280
investors would back a hostile
takeover. 260
Investors told Farr they thought 240
the existing offer was too low, in
accordance with the Chloride board. 220
It is understood Farr was told he 200
would need to pitch his offer above 180
the 300p-a-share mark, although 8 Mar 26 Mar 19 Apr 10 May 28 May

Message to Emerson: it is
time to start bidding ‘em up
EMERSON’S investment bankers sion, its American suitor knows it’s
should take a leaf out of the late time to bid ‘em up.
Bruce Wasserstein’s playbook. Bid Historically, deals in the uninter-
‘em up Brucie, as the Wall Street leg- rupted power industry have been
end was known, would tell his brought in at around 30 times
clients they needed to up their bid prospective EPS – working out at
to bring home the bacon. 340p in this instance. If Emerson
With its current offer of 275p were to offer that, Chloride share-
laughably low, Emerson would do holders would bite its hand off.
well to heed such advice when it With the gloomy economic out-
next moves on Chloride. It is clear look in Europe, Emerson can afford
what the more diversified American to go lower – but not by too much.
company would gain from the The magic number is about 300p a
acquisition: greater presence in the share, with a bit of a sweetener for
European power supply space. Less the doubters.
so for Chloride shareholders, who If Chloride offers around 308p, it
know that the existing bid underval- should be home and dry.
ues the company at around 24 times
prospective earnings per share in
2011. After Chloride posted resilient
full-year results despite the reces-
BOTTOMLINE
Analysis by David Crow
 16 News

CBI’s Katja Hall says the rate of employee absence is coming down

Sick days cost

UK plc £16.8bn
front line services,” he said.
▲

EMPLOYMENT
BY MARION DAKERS Long term sick leave accounts for five
per cent of all periods of absence, but
PUBLIC sector workers took 43 per cent makes up 20 per cent of lost days in pri-
more sick days than their private sector vate sector, and 36 per cent in the pub-
colleagues last year, according to lic sector.
research out today. The survey of human resources staff
Workers in the public sector take an in 241 companies also showed that
average of 8.3 days off sick per year, firms with more than 500 employees
compared with 5.8 days per private sec- tend to lose around 1.7 more days per
tor employee, a survey by the worker due to illness.
Confederation of British Industry (CBI) Around 15 per cent of sick days are
and Pfizer found. faked, costing the country around
While the survey showed that sick £2.5bn a year.

@ @
days are at the lowest level since 1987, CBI director of employment policy

@
the 180m days of absence caused by ill- Katja Hall said: “The rate of employee
ness cost the economy an estimated absence has come down, but it still
£16.8bn last year. costs the economy billions of pounds a
A CBI spokesman said: “The key differ- year.
ence between the two sectors is that “Unfortunately, bogus sick days
the private sector is much better at remain a problem, and are unfair on

@
managing long-term absence and hard-working colleagues and employ-
bringing people back to work more ers alike.”
effectively. More than three quarters of employ-
“Companies are investing a lot of ers thought the “fit note”, which
money in quality rehabilitation. Some replaced the sick note in April, helps
FOR MORE NEWS of the ideas could be replicated in the people get back to work. The fit note
www.cityam.com public sector, and would be a way to
save a lot of money without cutting
spells out aspects of jobs workers can
still do even if they cannot return.

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CITYA.M. 7 JUNE 2010 News 17

I confess: I was far too optimistic about debt

now that the downdraft has been Getting debt junkies to abstain could more secure “safe havens”. But which light is not as bright as it seemed at
hard to dodge. Markets took time out be a long game and might plunge us ones? Goldman Sachs points us not first – sorry to add to the Monday
from worrying about government into a double dip recession in the only to the Brics but also to the “Next morning gloom.
debt at the end of last week to look at meantime. 11” or N-11 for short. Not a reference Anna Edwards co-anchors Capital
economic data, in the shape of the US If we really are heading for another to this summer’s cricket but the next Connection weekdays on CNBC.
employment report, but many economic slump in Europe, and 11 emerging economies that GS
investors tell us nothing has funda- deflation takes hold, then other parts thinks, after the Brics, have the poten- ANALYSIS l FTSE
mentally changed and the sovereign of the world will not escape the tial to rival the G7 as a source of glob- 6,000 5,126.00
CNBC COMMENT debt threat is still out there. gloom. But some areas may fare bet- al demand. That means countries like 4 Jun
5,800
ANNA EDWARDS While I would take issue with
some of that sentiment – after all, the
ter than others. Witness the relative
out-performance of the Bric countries
Korea, Vietnam, Indonesia and
Mexico. Barlays Capital echoes some 5,600
Italian, Spanish, Portuguese, Greek (Brazil, Russia, India and China, as of these views, suggesting a move into 5,400

I
am feeling a little gloomy. I start- and famously the Irish governments Goldman Sachs named them). emerging Asia sovereign debt.
ed this sovereign debt crisis look- have made progress on deficit cutting A number of money managers are But it warns that any downturn in 5,200
ing on the bright side but now I plans in recent weeks – it does seem telling us that our assets could be the regional macro-economy or big 5,000
have been got at. So many of our that debt has just been passed around much safer in emerging market gov- moves in foreign exchange should 4,800
guests at CNBC are downbeat right the system for the past three years. ernment bonds than in historically prompt a rethink. So even that ray of 8 Mar 26 Mar 19 Apr 10 May 28 May

Bidders circle DRESS SENSE PAYS OFF NEWS | IN BRIEF

Shrek makers laughing hard
The studio behind “Shrek Forever After”
had plenty to laugh about as the film

Reliance stock beat a pair of comedies at the North

American box office to take the top spot
for the third straight weekend. The ani-
mated film’s strong staying power and
its estimated weekend take of $25.3m
(£17..5m) bodes well for DreamWorks
Animation, which last month saw its
crushed margins and share prices, share price dip after the movie suffered
▲

COMMUNICATIONS
BY HARRY BANKS has fuelled predictions that consoli- a lower-than-expected opening.
dation is only a matter of time.
INDIA’s Reliance Communications, Shares in Reliance Comm are val- Rail link sale on the cards
burdened by debt and the cost of ued by the market at $7.4bn, but ana- The government is aiming to kickstart a
rolling out 3G services, said its board lysts said any strategic investor is round of crucial asset sales with the
had agreed to sell up to 26 per cent of likely to come in at a significant pre- auction of the Channel Tunnel rail link,
the firm, which could be worth near- mium. Even after last week’s rally, estimated to raise £2bn, according to
ly $2bn at current market levels. Reliance Comm stock is 80 per cent reports yesterday. The Department for
Reliance Comm, India’s second- below its early 2008 peak. Transport (DfT) and rail link owner
biggest mobile carrier, did not dis- Yesterday's statement, confirming London & Continental Railways (LCR)
close any timeframe for a possible the company’s active interest in mak- plans to distribute a sales document to
deal in its statement yesterday, but its ing a deal, could further lift shares. potential bidders ahead of the emer-
shares gained 14 per cent last week, “Last week it was just a rumour. gency budget on June 22, it is believed.
with speculation rife that Abu Now, there is clarity from the seller
Dhabi’s Etisalat and South Africa’s side. The stock should have a good Brown replaced as climate chief
MTN could be potential partners. upside because the market is keenly Norway's Prime Minister Jens
Yesterday, there were further awaiting the deal,” said Jagannadham Stoltenberg will take over from Britain's
reports that Reliance Comm and US Thunuguntla, equity head at SMC Gordon Brown as co-chair of a UN group
telecom giant AT&T have sounded Capitals in New Delhi. looking at ways to raise finance to help
out each other’s interest about a deal Reliance Comm, controlled by bil- poor nations to combat climate change. i
in which AT&T would take a signifi- lionaire Anil Ambani, had net debt of Monsoon founder Peter Simon’s passion for fashion has earned him a healthy dividend "It's decisive to ensure sufficient financ-
cant minority stake in the Indian cell- 199 billion rupees ($4.3 billion) at the of £14m, according to documents filed at Companies House. Simon, 60, shared the divi- ing of measures against climate change
phone company. end of March and last month paid dend – the first for five years – with his family last year. Earlier this year Monsoon in poor nations to get a new internation-
Cutthroat competition in India’s 85.85 billion rupees for third-genera- reported an eightfold increase in profits from £3.96m in 2008 to £32.96m in the year to al climate deal in place," Stoltenberg
15-player mobile market, which has tion (3G) licenses last August. Monsoon plans to open 140 stores in the next year. Picture: REX said after his appointment.

UBS set to settle tax dispute with US Chairman Phil Wrigley to

government thanks to Swiss treaty give Habitat a new look
banking secrecy could still be halted August, after the Swiss government Last year Habitat reported losses of
▲

BANKING RETAIL
by rogue votes from opposition par- agreed to breach its own secrecy laws €42m (£35m) as buyers shied away
SWITZERLAND’S largest bank UBS ties, who have demanded concessions to hand over details of 4,450 of the PHIL Wrigley, the former boss of New from it high-end products in favour of
could end a long-running tax dispute from the government in return for bank’s US clients. Look, has been appointed executive cheaper items. But since then, Hilco
with America tomorrow, when the their approval. After a court ruled this decision chairman of loss-making furniture has waged a cost-cutting campaign
Swiss parliament is expected to The US government had accused unlawful, the government tabled the chain Habitat. and reduced its prices.
approve a treaty to hand over files on UBS of helping some of its citizens new treaty. Habitat, founded by Sir Terence Wrigley is also set to become the
thousands of suspected tax cheats to hide nearly $20bn (£13.8bn) of The upper house of the Swiss par- Conran, was sold by the Kamprad first member of a new advisory board
US authorities. untaxed money in secret accounts. liament approved the treaty last family, heirs to the Ikea fortune, to for Hilco, whose other investments
The deal to relax Swiss laws on It dropped tax evasion charges last Thursday. Hilco last December. include Allied Carpets and Denby.
 18 Interview WORDS BY ROGER BAIRD CITYA.M. 7 JUNE 2010

Denton Wilde Sapte joins the rush

for transatlantic law firm mergers
Howard Morris, the “We hope
firm’s boss, says a tie this merger
up with a practice will give a bit
from Chicago will of a jolt to
transform Dentons prospective
clients. We
also hope it
M
ERGERS and acquisitions are rat-
tling along at quite a pace among
transatlantic law firms – unlike will have the
at the corporate clients they serv-
ice, many of which are still finding the same effect
M&A game a little hard going at the
moment, not least of course Prudential. internally.”
The latest legal mega-deal repays a closer
look. The City’s Denton Wilde Sapte last
week announced its intention to tie-up
with Chicago-based Sonnenschein Nath &
Rosenthal, creating a global practice boast-
ing no fewer than 1,400 lawyers and rev-
enues of almost £500m.
This move comes after last month’s cre-
ation of Hogan Lovells, formed after the
merger of London’s Lovells and
Washington’s Hogan & Hartson, which
became the world’s ninth-biggest law firm
with revenues of almost £1.4bn. City law
firm SJ Berwin is also mulling a transat-
lantic merger and is in talks with
Proskauer Rose, based in Boston.
Denton Wilde Sapte chief executive
Howard Morris, who has led the firm since
2004, hopes that this is the final leg of a six-
year overhaul of the 21st biggest law firm
in the City.
“We hope this merger will give a bit of a
jolt to prospective clients, but also hope it
will have the same effect internally,” says a
quietly spoken but engaging Morris, who in
sitting in his spacious second floor office in
the firm’s Fleet Place head office, a stone’s
throw away from the Old Bailey.
He candidly adds: “This merger is about
building revenues, rather than cost cutting. mergers is that even medium-sized compa- The chief executive of intolerant of mediocrity and unwilling to which outside the US only has two small
Our firm isn’t where we want it to be. It a nies increasingly have overseas units that Denton Wild Sapte compromise. We have addressed redundan- offices in Brussels and Zurich, will get a
major cause of frustration that our service need a legal service. Howard Morris in the cies and underperformance in the partner- presence in London as well as Dentons’ size-
is the equal of many firms that are more Dentons last year posted revenues of firm’s Fleet Place ship. I don’t expect to have to revisit this.” able network in the Middle East and Russia.
profitable than us.” £167.5m, down one per cent, with its two headquarters in the However, Morris wants to get back to the Under the deal Morris and the current
Morris continues: “We need to win more biggest units – banking, and energy and City lucrative instructions it won in the early Sonnenschein chairman Elliot Portnoy will
quality work, and we should expect to win infrastructure – accounting for 38 per cent part of the century such as WorldCom, become joint chief executives, while
these kinds of instructions. We will tell and 21 per cent of sales respectively. Partner Picture: Federal Mogul and RSL. Dentons’ Kitchen and Sonnenschein’s busi-
clients that together we are able to do a profits rose 20 per cent to £360,000 after it Micha Theiner Whether things run smoothly or turn ness and regulation head Joe Andrew will
much wider range of work that they might recovered from a big dip the year before /City A.M. sour, Morris plans to see the merger become joint chairmen.
once have placed elsewhere. It might be a due to the financial crisis. through. His second three-year stint was Like the Hogan Lovells merger, this tie-up
cliché at times, but US firms work harder Sonnenschein, the 59th largest law firm due to end next February but the Dentons will also operate under a Swiss Verein struc-
and are hungry. That is something we can in the US, in 2009 posted revenues of board have asked him, and chairman ture that will allow both firms to keep their
learn from.” £328m (almost twice as high as Dentons) Martin Kitchen, to stay at their posts for a own accounts and separate bonus pools.
The impetus behind all of these legal and partner profits down three per cent at further three years. Morris says the enlarged firm plans to
£541,000. Unsurprisingly, some critics sug- The Dentons and the Sonnenscheins anchor its integration around a number of
gest Dentons may struggle to maintain its negotiating teams should at the very least the key banking clients they share, such as
CV | HOWARD MORRIS voice in a merger with a firm that is twice be congratulated for their absolute discre- HSBC, RBS Securities, JP Morgan Chase and
as large and is one-and-a-half times more tion, in the incredibly gossipy legal indus- Citibank. He says: “We will cluster around
profitable than the City firm. But Morris try world. They managed to keep talks, our clients giving them a good service, and
Age: 53 hopes this merger will follow the pattern of which opened last summer and intensified a one-firm feel. We want to get to a quality
his firm’s earlier tie-up: it was born from a over the last three months, secret. of service that turns clients on, and we feel
Work: 1980 – 1986: practising barrister; 2000 merger between Denton Hall and The first Dentons’ own partners knew integration will come as a consequence of
1986 – 1991: joined Allen & Overy as an Wilde Sapte. about it was by email at 3.00pm on 26 May; that.”
associate specialising in financial markets; He says: “That merger worked tremen-
dously well. In a matter of months it didn’t
“It is a major the rest of the firm were told 20 minutes
later. Morris says: “We wanted to keep the
Unlike most City heads Morris is not a
one-firm lawyer. He spent the first eight
1991: joined Denton Wilde Sapte as an
assistant lawyer; 1993: became a partner; matter where you came from, it was about
making the new business work. We didn’t
cause of talks in confidence until we had some-
thing solid to give the partners. We did not
years after college as a criminal barrister,
then joined City rival Allen & Overy for five
2003: became head of Dentons’ largest
unit, banking; 2004 elected chief execu- think we had to balance internal commit-
tees, we just picked the best people. We
frustration want it to be a case of Chinese whispers.”
He adds: “Overall, the initial response
years before settling at Dentons.
But a barrister’s life was never for him.
tive for three years; 2007: re-elected as
chief executive hope the same happens again this time
around.”
that our has been strongly positive. But there are a
lot of questions people want answered. I
He says: “The bar was then a very restricted
place. I didn’t have a private income. I went
Education: 1975 – 1978: Queen Mary
However, Dentons has lost ground since
its merger a decade ago, which left it
service is the am realistic enough to know that this move
will involve change, and I expect people to
to a secondary modern school. Maybe I was
a bit chippy, but I wanted to do something
College, University of London, read law;
1978 - 1979: Inns of Court School of Law
ranked as the 11th largest City law firm at
the time. Over this period the firm lost out
equal of firms find change difficult.”
The proposed tie-up will go before the
else.”
Such a tough, meritocratic outlook on
Family: Married with two grown up
on big instructions to rivals and became
complacent and unwieldy. Since Morris
that are more partners of both firms for approval on 9
June and, if they vote in favour, the new
life is exactly what the British part of the
new firm will need when the merger goes
children took over he has cut around 100 jobs,
including a number of unproductive part-
profitable firm will begin operating as SNR Dentons
in September.
through. London needs its law firms to be
more global; lawyers across the City will be
Lives: Barbican in the City ners.
Morris says: “We have become more
than us.” The merger will see Dentons gain access
to the US market, while Sonnenschein,
watching this deal and how it is executed
even more closely than usual.
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7 - 13 June motorexpo.com
 20 News CITYA.M. 7 JUNE 2010

Bars and clubs

HMRC’s tax fail to shake
assault to hit off recession

honest firms
LEISURE

▲
THE number of bar and pub compa-
nies going bust has continued to soar
in the last year, a new survey has
shown.
While corporate insolvencies have
been falling in other sectors, the pic-
▲

TAX firm, said: “Four billion more tax is a ture for bars and clubs is still bleak.
BY JOHN DUNNE massive increase that shows how A total of 23 pub, bar and night-
urgently the budget deficit needs to club companies have become insol-
A TOP City accountancy firm has reduced. To achieve such an extreme vent in the first three months of 2010
claimed that a tax crackdown by target, HMRC will be forced to come alone, according to the research by
HMRC will mean innocent firms down hard on tax avoidance and eva- accountants Wilkins Kennedy
being investigated at the taxpayers’ sion. That represents a jump of 109 per
expense. “HMRC’s risk profiling is already cent on the 11 that went bust in the
UHY Hacker said that plans to seize far from being perfect, with many first three months of 2009.
an additional £4bn in revenue in enquiries yielding very little or no In total 87 pub, bar and nightclub
2010/11 through a more aggressive additional tax at all, so how will companies have gone bust in the year
strategy would leave blameless busi- HMRC improve risk profiling in order to 31 March compared with 79 in the
nesses facing unnecessary probes into to better avoid causing detriment to previous 12 months.
their dealings. innocent taxpayers? Tax investiga- In comparison the total number of
The total figure to be clawed back tions can be hugely costly to taxpay- corporate insolvencies in the last year
in tax under the new strategy is ers.” fell 36 per cent to 5,911 from 9,233 in
£16.1bn – a 33 per cent increase on He said that businesses were also the previous year.
the previous year. The increased tar- vulnerable because if they cannot Wilkins Kennedy called on the new
get has been set after pressure from afford to fight the case, HMRC wins. government to avoid weakening the
the Liberal Democrats who believe sector furtherwith more restrictions
some businesses are escaping their FAST FACTS | HMRC AND TAX on the insustry in the emergency
full tax responsibility. Budget, on 22 June.
UHY Hacker Young said that the ● The HMRC has set a target of £16.1bn in tax Director Anthony Cork said: “What
only way to fulfil the new target is to to be clawed back under a crackdown the pub and bar industry needs to see
bring “marginal” cases forward, ● The figure represents a 33 per cent increase in the June 22 budget is an end to
which often sees legal costs spiralling on the previous and reflects the government’s duty increases. The Government
while no wrongdoing is proved. drive to boost its coffers needs to be understanding of the sec-
Roy Maugham, tax partner at the Roy Maugham fears blameless firms will be hit by new tax targets tor and not tax it out of existence.”
CITYA.M. 7 JUNE 2010 News 21

Greek economy kept afloat by shipping trade

od of painful fiscal tightening as they cial to our economic prospects as part $4.7bn in premiums and an addition- I am also scheduled to hold discus-
balance the books and reassure inter- of a wider recovery over the coming al $1.6bn in gross P&I premiums and sions with the Greek Prime Minister,
national investors. years. ship-broking income. Finance Minister, and the Minister of
Therefore, in this challenging peri- At first glance there seem to be lit- It is not just finance that provides Economy, Shipping and
od, the top performing industries in tle overlap between these two indus- the basis for this partnership. Lloyd’s Competitiveness.
both countries must help drive recov- tries. But as an island state with a Register classifies 28 per cent of the Even in these difficult times,
ery forward and safeguard future long seafaring history, it should come Greek fleet and the country is cur- Greece remains a key partner for the
prosperity. as little surprise that the UK is a rently the fourth largest market for UK with bilateral trade currently
MONDAY COMMENT Taking Greece first (I am in Athens world leader in maritime-related serv- London’s legal community. worth nearly $3bn each year.
NICK ANSTEE today, leading a City business delega-
tion), it is shipping that has long been
ices.
The City is a one-stop shop for mar-
But despite our position as the lead-
ing provider of maritime services to
With both ends of this relationship
facing significant economic chal-
the globally-competitive jewel in the itime services, able to provide all the Greece, we can not afford to be com- lenges, it is in all our interests that
MANY of the headlines about the UK Greek crown. It contributed 5.7 per specialist financing needs required by placent. That is why I am here at the policy makers and practitioners in
and Greek economies have, perhaps cent of GDP in 2009 and Greece’s fleet ship owners and operators. international Posidonia shipping con- both countries work together even
understandably, painted a bleak pic- totals around 4,000 vessels – more In 2009, UK-based banks lent the ference in Athens, working to harder to maximise trading opportu-
ture of harsh financial realities in than 16 per cent of the world’s carry- Greek shipping sector more than strengthen links with the Greek ship- nities and open doors to two-way busi-
both countries. ing capacity. $13bn, around a fifth of its total lend- owning community and ensure key nesses.
Clearly the UK Government and Here in the UK, the City’s financial ing requirements, while the UK industry figures continue to see Nick Anstee is Lord Mayor of the City of
the Greek administration face a peri- and professional services will be cru- marine insurance sector pulled in London as a second home. London.

FSA approvals BEST OF THE BROKERS

ANALYSIS l Tate & Lyle
464.80
4 Jun
ANALYSIS l JJB Sports ANALYSIS l S Three

taking longer
460 26 400
16.25 307.40
450 4 Jun 4 Jun
22 360

430 18 320

REGULATION cellor, George Osborne, is said to be

▲

410 14 280
keen to hand over many of the FSA’s 17 Mar 19 Apr 19 May 17 Mar 19 Apr 19 May 17 Mar 19 Apr 19 May
BY MARION DAKERS
powers to the Bank of England, but
THE Financial Services Authority has stopped short of moving to abol- TATE & LYLE JJB SPORTS S THREE
(FSA) has been criticised for the long ish the regulator as part of the coali- Evolution Securities maintains a “buy” rec- Panmure Gordon repeated its “buy” recom- Collins Stewart has a cautious outlook on
delays in its corporate approval tion agreement.
process, in a fresh blow to the City Jonathan Davies, regulatory part-
ommendation for Tate & Lyle and has mendation on the sportswear chain, citing recruitment company SThree, but main-
regulator. ner at RPC, said: “Delays in authoris- upped its target price to 560p. Evo said clear evidence of a recovery in operational tains its “buy” recommendation with a tar-
Companies now wait 19.5 weeks on ing new entrants into the financial Tate is a compelling long term turnaround performance. It said the start of the World get price of 350p. Growth remains below
average for an FSA decision on services market damage consumers story and that new boss Javed Ahmed Cup this week is likely to be the catalyst expectations due to a subdued jobs market,
whether to authorise financial servic- by reducing competition. They also appears to have all the credentials to tackle that the share price needs. The 2012 and Collins is also reviewing its profit fore-
es work, according to figures damage Britain’s competitiveness.
obtained under the Freedom of “If the FSA does not have the Tate's issues. Evo said the added spice is Olympics and plans for inward investment casts following the recent uncertainty over
Information Act by City law firm capacity to process applications prop- that Tate could be a bid target for Bunge. make for an attractive long-term prospect. new public sector jobs.
Reynolds Porter Chamberlain (RPC). erly then it should say so,” he said.
Waiting times have increased by The FSA said in a statement: “We
71 per cent in the last year, and have have increased the intensity with
To appear in Best of the Brokers email your research to [email protected]
more than doubled since the start of which we scrutinise companies. The

Dispute numbers up in recession fallout

the credit crunch when the average time scale varies between firms. “We
wait was 7.5 weeks. aim to conclude investigations within
The news comes at a bad time for six months for completed applica-
the FSA, whose future is under scruti- tions, and publish how we perform
ny by the new government. The chan- on our website.”
ANALYSIS l Waiting time for FSA approval 19.5 LEGAL putes last year. means of dispute resolution, as well
▲

20 weeks
18
18 Furthermore, in the fallout from as traditional litigation, to resolve
THE NUMBER of commercial disputes the recession, the number of arbitra- contentious matters.
16
13.8 held before international arbitral tions held in London climbed by 30 “Given the increases across the
11.3 11.4 12.2
14
12
institutions were up by 16 per cent per cent in 2009, putting the capitol board, there can be little doubt that
10 9.4 9.4 9.6 9.6 10 last year, according to new research, at the top of the list for the highest more disputes are filtering through
8
7.5 7.9 suggesting the recession was one of number of cases heard as compared following the global economic down-
6 the main contributors to the rise. to a number of other countries. turn, and that this trend is evident
4 Figures from law firm Hogan Hogan Lovells said the rise in arbi- across industry sectors and geogra-
2 Lovells’ arbitration practice showed tration numbers is evidence that gov- phies,” said Michael Davison, co-head
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
that arbitration bodies across the ernmental bodies and businesses are of the international arbitration prac-
2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 globe saw a flurry of commercial dis- increasingly turning to alternative tice at Hogan Lovells.

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

global portfolios and multi-asset He is expected to start in his new Dechert

London Stock Exchange groups. They subsequently worked role in September. The law firm has announced its leader-
The exchange has hired Gay Huey Evans and together at RWC Partners (formerly ship succession plans, which will see
Paul Heiden as non-executive directors and MPC Investors). Westhouse Holdings current chairman and chief executive
made Raffaele Jerusalmi an executive director. The corporate finance and broking Barton Winokur step down by the mid-
Huey Evans, pictured, is vice chair of invest- Towry house has hired Dermot McKechnie as a dle of 2011. He will continue as a full-
ment banking and investment management at The wealth advisory firm has appointed consultant, focusing on developing the time partner following the transition.
Barclays. Robert Dawkins as its new chief invest- firm’s M&A, wider corporate finance Succeeding him as chief executive is
Heiden is executive chairman of Talaris Topco ment officer. and corporate broking activities. Daniel O’Donnell, who has been with
and a non-executive at United Utilities, while Dawkins was previously head of McKechnie is a qualified chartered the firm since 1976. He specializes in
Jerusalmi is director of capital markets at the multi-manager at Aberdeen Asset accountant and became a partner at advising private equity fund sponsors,
LSE and chief executive of Borsa Italiana. Managers and has also held roles as Cazenove in 2000, later taking up the corporations and financial institutions
managing director of RBS Asset position of director of corporate finance on M&A, corporate restructurings and
Geldard and Manzi first worked Management and as head of alternative at JP Morgan Cazenove. corporate governance matters.
Jupiter together at JP Morgan Asset investment management at Coutts, the The appointment follows that of Andrew Levander has been named
The asset manager has appointed Miles Management, where Geldard was chief RBS group’s private bank. Rupert Stevenson last week as a direc- chairman. He is a former assistant US
Geldard and Lee Manzi to run global investment officer and head of the Earlier in his career, he spent stints tor of Westhouse Securities, responsi- attorney in the securities and commodi-
convertible and global multi-asset global multi-asset and strategy teams with LCF Edmond de Rothschild and ble for establishing an investment funds ties fraud unit in the Southern District
strategies. and Manzi worked in the fixed income, John Govett. team. of New York.

To appear in CITYMOVES please email your career updates and pictures to [email protected]
 22 News CITYA.M. 7 JUNE 2010

KPMG wins award for values Spain’s BBVA in talks to buy UK

Yorkshire and Clydesdale banks
The firm also won Big Tick awards issues seriously and are leading the
▲

CORPORATE RESPONSIBILITY
for environmental leadership, field in ensuring this is just how they Industry sources said NAB was

▲
BY MARION DAKERS BANKING
employability, international work do business.” expected to put the banks up for sale
BUSINESS in the Community’s (BITC) and partnerships. KPMG’s UK chairman, John SPAIN’S BBVA has been in talks in in the next several weeks.
annual corporate responsibility index Its policy of allowing employees Griffith-Jones, said: “We are absolute- recent weeks to possibly buy the NAB is expected to quit the British
is announced today, with professional one afternoon per month to under- ly delighted and very proud to have Yorkshire and Clydesdale banks in market altogether now, with a sale
services firm KPMG leading the pack take volunteer work was also singled achieved the platinum plus rating. Britain from owner National preferred over a listing of its UK busi-
with the highest possible overall rat- out for praise. “We take our corporate responsibil- Australia Bank (NAB), according to ness.
ing and four Big Tick awards. BITC chief executive Stephen ities extremely seriously and to reach weekend reports. Both NAB and BBVA declined to
The company has been awarded a Howard said: “Companies participat- this milestone is a key moment for us. The potential sale, which could comment.
platinum plus rating for its environ- ing in the index may all be at differ- “We strive to put our values at the value the British business at £2bn, BBVA has been conducting due dili-
mentally friendly offices and ban on ent stages of their responsible heart of all we do, for the benefit of comes after NAB pulled out of the gence on a move into Britain for sever-
short haul flights. It is one of only ten business journey, but KPMG have our clients, our people and our com- auction to buy 318 Royal Bank of al months, following similar moves
firms to achieve this rating. demonstrated that they take these munities,” he said. Scotland branches on Friday. by its larger rival Santander.

Applications NEWS | IN BRIEF

IPC to sell hobby titles
IPC Media is in the process of selling 28
hobby titles including Cage & Aviary

to build sink Birds and The Railway Magazine. The

company, which publishes titles such as
Country Life and Marie Claire, has set
this Friday as the deadline for bids. The
company announced in March that the
magazines’ future was being reviewed.

in downturn IPC wants to raise cash to put back into

other titles. Prospective buyers, includ-
ing private equity groups and niche
magazine publisher Future, have esti-
mated the magazines would be worth
around £10m. IPC may consider selling
the magazines piecemeal if it can not
multi-millionaire entrepreneurs find a single buyer.
▲

PROPERTY
Manish Chande and Martin Myers,
BY VICTORIA BATES
went under in March last year after Dragonfish boss leaving
APPLICATIONS for permission to Bank of Scotland Corporate pulled Oxford’s city centre has been revamped Picture: GETTY Gabi Campos, the managing director of
build new commercial property the plug on lending to the company. Dragonfish, the business to business
developments plunged sharply over EMW Picton Howell said that the PLANNING AHEAD | OXFORD LEADS THE WAY division of online gaming group 888
the past year, as a number of high- retail property segment had been Holdings, has left the company to pursue
profile developers succumbed to the most severely affected, with a 21 per Local Planning Percentage change Local Planning Percentage change other interests. Gigi Levy, the group
downturn and demand for office and cent drop in applications for new Authority 07/08 and 08/09 Authority 07/08 and 08/09 chief executive, will head the division
retail space faltered. premises over the year. Applications 1 Oxford 161% 11 Reading 35% until a replacement is found.
In the past year, 21,729 commercial for new office space followed close on
property planning applications were its tail, tumbling 11 per cent to just 2 Poole 81% =12 St Helens 18% National Stud generates profit
lodged in England, down 15 per cent 5,429 during the period. 3 Stafford 74%  =12 Colchester 18% The National Stud has made a profit in
from 25,600 the previous year, accord- Countrywide, the region of Slough =4 Northampton 70% 14 Manchester 13% its first full year since being taken over
ing to commercial law firm EMW was hardest hit, with applications for =4 Gloucester 70% 15 Bradford 10% the Jockey Club. The National Stud, for-
Picton Howell. the year down almost 65 per cent. merly state-owned, is expected to reveal
6 Peterborough 66%  16 Nottingham City 4%
The news comes after a string of Oxford bucked the trend with a 161 sales of £93m and operating profit of
property companies were put into per cent surge in new applications, 7 Newcastle Upon Tyne 60%  =17 Brighton & Hove 3% £16.6m for 2009, when it publishes its
administration last year, stung by col- thanks to a local council scheme to 8 Bolton 52%  =17 Cambridge 3% annual review this week. The organisa-
lapsing valuations and the reluctance pedestrianise and revamp the city =9 Watford 39%  19 Dudley 1% tion also owns and runs 14 racecourses,
of banks to lend to the sector. centre. Planning applications in =9 Derby 39% 20 Southend 0% including Epsom, which hosted the
Mountgrange Capital, founded by London dropped by a fifth. Derby over the weekend.

Maritime GPS developer sees revenue Arsenal shareholder buys

up as Gulf fishermen use technology a bigger stake in the club
been caused by the activation of long oil spill in the Gulf of Mexico have cent.
▲

TECHNOLOGY LEISURE
planned mandates and the subse- turned to SRT’s real-time marine GPS The move comes as Lady Nina
MARITIME technology provider quent commencement of orders,” technology to help identify where ARSENAL major shareholder Alisher Bracewell-Smith, the club’s fourth-
Software Radio Technology (SRT) is said SRT chairman Simon Rogers. polluted waters are so they can con- Usmanov has increased his stake in biggest investor, is attempting to sell
expected to announce a 41 per cent The group is also expected to have a tinue to fish for shrimp. The industry the north London football club, boost- her 16 per cent stake. She has appoint-
hike in revenue today. $4m (£2.76m) order book already in has already been hit particularly hard ing his 26 per cent stake. ed Blackstone for the sale.
SRT is expected to see revenues place for the next year and a line of by the spill. The Usbek-born mining billionaire, According to City rules, Usmanov
climb by £1m to £3.5m , while the new products are expected to be The technology, which has been who is the second-largest shareholder and Stan Kroenke, Arsenal’s biggest
group is thought to have seen losses developed and launched within 2010. successful for SRT, has helped to pro- in the club, is believed to have spent shareholder, would have to make a
reduced by 81 per cent for the year. Meanwhile, more than 160,000 pel the group’s share price from 1p to about £300,000 on shares last week, full bid for the club if they bought her
“This acceleration in growth has fishermen affected by the massive BP 23p since last summer. bringing him closer to owning 27 per stake.
 Markets&Investment
23

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
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Aberdeen Asset Man . . . . . . . . . .139.50* –4.40 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1020.00* +10.00 1047.00 498.50 Johnson Matthey . . . . . . . . . . .1517.00 –53.00 1814.00 1077.00 Scot. & Sthrn Energy. . . . . . . . .1087.00 –13.00 1206.00 357.50
Admiral. . . . . . . . . . . . . . . . . . .1315.00 –4.00 1403.00 833.50 CSR . . . . . . . . . . . . . . . . . . . . . .394.60 +0.50 524.00 320.75 JPMorgan Emerg Mkts . . . . . . . .500.00 –12.00 549.00 350.50 Scottish Mortgage. . . . . . . . . . . .569.00* –11.00 623.50 376.00
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Alliance Trust . . . . . . . . . . . . . . .316.20 –5.60 352.70 260.25 De La Rue . . . . . . . . . . . . . . . . . .948.00 +5.00 1021.00 808.50 Lancashire Hldgs . . . . . . . . . . . .474.60 –7.40 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1238.00 –12.00 1258.00 921.00
AMEC . . . . . . . . . . . . . . . . . . . . .812.00* +8.50 891.00 603.50 Debenhams . . . . . . . . . . . . . . . . .56.95 –2.10 91.95 55.90 Land Securities . . . . . . . . . . . . . .606.50 –17.00 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .365.00 –15.50 426.50 284.00
Amlin . . . . . . . . . . . . . . . . . . . . .376.00 –5.40 428.50 291.00 Derwent London . . . . . . . . . . . .1336.00* –32.00 1490.00 844.00 Legal & General . . . . . . . . . . . . . .77.75 –2.90 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1434.00 –31.00 1526.00 798.50
Anglo American . . . . . . . . . . . .2517.50 –87.50 3015.50 1540.00 Dexion Absolute . . . . . . . . . . . . .141.50 +0.70 148.00 107.75 Lloyds Banking Gp . . . . . . . . . . . .55.44 –1.86 75.58 39.62 SIG . . . . . . . . . . . . . . . . . . . . . . . 110.90 –7.00 146.60 82.25
Antofagasta . . . . . . . . . . . . . . . .854.50* –28.50 1100.00 546.50 Diageo . . . . . . . . . . . . . . . . . . .1070.00 –10.00 1176.00 829.00 Logica . . . . . . . . . . . . . . . . . . . .124.80 –3.70 149.10 70.00 Smith & Nephew . . . . . . . . . . . . .636.00 –6.00 700.50 435.25
Aquarius Platinum . . . . . . . . . . .358.50 –21.30 490.00 172.75 Dimension Data . . . . . . . . . . . . . .98.80 –3.60 105.00 53.75 London Stock Exchange . . . . . . .621.00 –21.00 949.50 606.00 Smiths . . . . . . . . . . . . . . . . . . .1035.00 –21.00 1177.00 649.00
ARM Holdings . . . . . . . . . . . . . . .264.60 –3.30 274.90 103.25 Domino’s Pizza . . . . . . . . . . . . . .360.10 –0.90 371.20 192.75 Lonmin . . . . . . . . . . . . . . . . . . .1594.00 –66.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . .1604.00 –29.00 1796.00 1068.00
Arriva . . . . . . . . . . . . . . . . . . . . .765.00 –1.00 782.50 378.50 Drax . . . . . . . . . . . . . . . . . . . . . .333.00 –7.80 496.50 321.50 Man . . . . . . . . . . . . . . . . . . . . . .238.40 –4.70 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .802.00* –18.00 928.00 493.50
Ashmore . . . . . . . . . . . . . . . . . . .243.30 –5.50 311.20 183.25 DSG Intl . . . . . . . . . . . . . . . . . . . .24.28 –1.22 39.75 19.25 Marks & Spencer. . . . . . . . . . . . .339.90* –8.80 412.70 277.75 Spirax-Sarco Eng . . . . . . . . . . .1412.00 –22.00 1591.00 749.50
Ashtead . . . . . . . . . . . . . . . . . . . 110.00 –3.20 128.50 52.00 Dunelm . . . . . . . . . . . . . . . . . . . .349.00 –14.80 438.40 202.00 Meggitt . . . . . . . . . . . . . . . . . . . .305.70 –4.30 328.70 151.75
Astrazeneca . . . . . . . . . . . . . . .2950.00 –27.00 3136.00 2472.00 Easyjet . . . . . . . . . . . . . . . . . . . .413.90 –10.20 499.90 260.00 Melrose . . . . . . . . . . . . . . . . . . .214.70 –9.80 251.50 87.75 Spirent Comms . . . . . . . . . . . . . .108.60 –2.50 127.80 54.50
Atkins(Ws) . . . . . . . . . . . . . . . . .700.50 –0.50 730.00 513.50 Edinburgh Inv Tst . . . . . . . . . . . .390.00 –6.00 412.40 297.50 Mercantile IT . . . . . . . . . . . . . . . .900.50 –28.50 1002.00 716.50 SSL Intl . . . . . . . . . . . . . . . . . . . .829.00 +9.00 893.50 481.25
Autonomy Corp . . . . . . . . . . . .1799.00 +18.00 1897.00 1121.00 Electrocomponents . . . . . . . . . . .214.70 –4.80 245.00 134.25 Michael Page Intl. . . . . . . . . . . . .376.70* +4.70 461.50 218.50 St James’s Place . . . . . . . . . . . . .238.30 –8.00 296.90 169.75
Aveva . . . . . . . . . . . . . . . . . . . . 1176.00 –10.00 1237.00 661.00 EnQuest . . . . . . . . . . . . . . . . . . .101.00 –3.20 112.70 87.35 Micro Focus . . . . . . . . . . . . . . . .489.80 –14.70 550.00 300.90 Stagecoach. . . . . . . . . . . . . . . . .187.80 –4.40 204.90 114.75
Aviva . . . . . . . . . . . . . . . . . . . . .329.10 –10.00 474.00 274.75 Eurasian Nat Res . . . . . . . . . . . .985.50* –45.50 1276.00 582.00 Millen & Copthorne . . . . . . . . . . .407.30 –7.50 496.30 217.25 Standard Chartered . . . . . . . . . .1621.50 –63.50 1847.00 1115.00
Babcock International . . . . . . . . .571.00 –5.50 660.50 448.50 Euromoney Inst Inv . . . . . . . . . . .600.00* –24.00 630.00 191.25 Misys . . . . . . . . . . . . . . . . . . . . .231.00 –0.60 264.50 157.25 Standard Life . . . . . . . . . . . . . . .179.00 –5.30 237.00 172.60
BAE Systems . . . . . . . . . . . . . . .321.00 –3.20 389.90 294.20 Experian . . . . . . . . . . . . . . . . . . .621.00 –15.00 664.50 434.00 Mitchells & Butlers . . . . . . . . . . .316.90 –6.10 343.90 221.75 TalkTalk . . . . . . . . . . . . . . . . . . .126.60 –1.40 147.10 106.60
Balfour Beatty . . . . . . . . . . . . . . .255.40* –7.50 328.85 238.50 F&C Comm Prop . . . . . . . . . . . . . .94.40 –0.60 96.80 73.50 MITIE . . . . . . . . . . . . . . . . . . . . .227.80 –3.80 281.70 204.25 Talvivaara Mining . . . . . . . . . . . .356.00 –17.00 501.50 315.00
Barclays . . . . . . . . . . . . . . . . . . .288.60* –14.10 394.25 255.00 Ferrexpo . . . . . . . . . . . . . . . . . . .252.10* –9.40 396.20 112.00 Mondi . . . . . . . . . . . . . . . . . . . . .396.40 –4.70 488.00 182.00 Tate & Lyle . . . . . . . . . . . . . . . . .464.80 +3.80 481.40 284.75
Barratt Development . . . . . . . . . .103.40 –4.30 193.31 91.80 FirstGroup . . . . . . . . . . . . . . . . .383.90 –7.40 448.80 322.75 Monks Inv Tst . . . . . . . . . . . . . . .289.00 –8.50 321.20 222.00 Taylor Wimpey . . . . . . . . . . . . . . .32.14 –1.56 54.90 30.75
BBA Aviation . . . . . . . . . . . . . . .185.60 –3.30 220.00 105.00 Foreign & Col Inv Tst. . . . . . . . . .272.30 –6.20 297.20 210.25 Morrison Wm . . . . . . . . . . . . . . .264.50* –2.60 306.30 234.25 Telecity . . . . . . . . . . . . . . . . . . . .389.00 –7.00 455.00 272.00
Beazley. . . . . . . . . . . . . . . . . . . . 115.50 –2.00 122.00 86.00 Fresnillo . . . . . . . . . . . . . . . . . . .907.00 –21.50 950.00 438.00 Murray Intl Tst . . . . . . . . . . . . . . .807.00 –21.00 893.50 575.00 Templeton Emrg Mkts . . . . . . . . .539.50 –7.50 598.00 346.50
Bellway. . . . . . . . . . . . . . . . . . . .678.50* –17.00 927.50 591.50 G4S . . . . . . . . . . . . . . . . . . . . . .261.50* –2.40 285.70 197.90 National Express. . . . . . . . . . . . .228.50 –7.80 256.80 135.08
Berkeley . . . . . . . . . . . . . . . . . . .776.00 –20.50 989.50 716.50 Genesis Emerging Mkts Fd . . . . .449.00 –15.00 484.00 370.00 National Grid . . . . . . . . . . . . . . .487.60* –7.90 607.65 466.71 Tesco . . . . . . . . . . . . . . . . . . . . .412.25* –4.30 454.90 347.40
BG . . . . . . . . . . . . . . . . . . . . . .1069.00 –11.00 1248.00 966.90 GKN . . . . . . . . . . . . . . . . . . . . . .125.30 –3.40 155.00 67.49 Next . . . . . . . . . . . . . . . . . . . . .2083.00* –17.00 2360.00 1402.00 Thomas Cook . . . . . . . . . . . . . . .200.20 –5.90 277.20 191.90
BHP Billiton . . . . . . . . . . . . . . .1771.00 –68.50 2346.00 1274.50 GlaxoSmithKline . . . . . . . . . . . . 1175.00* –18.00 1347.00 1023.50 Northumbrian Water . . . . . . . . . .284.80 –2.70 296.30 219.90 Tomkins . . . . . . . . . . . . . . . . . . .245.30* –3.80 258.50 135.00
BlackRock Mining . . . . . . . . . . . .565.00 –16.00 654.50 346.00 Go-Ahead . . . . . . . . . . . . . . . . .1277.00 –9.00 1577.00 1143.00 Old Mutual . . . . . . . . . . . . . . . . . 111.30* –2.90 127.20 71.00 Travis Perkins . . . . . . . . . . . . . . .782.00 –6.50 915.00 461.00
BlueBay . . . . . . . . . . . . . . . . . . .285.00 –18.00 393.00 178.25 Great Portland Estates . . . . . . . .297.50 –15.80 332.10 203.75 Partygaming . . . . . . . . . . . . . . . .265.80 –1.40 339.70 213.30 TUI Travel . . . . . . . . . . . . . . . . . .228.00 –5.90 313.90 215.50
Booker . . . . . . . . . . . . . . . . . . . . .40.37* –0.71 49.50 32.75 Greene King . . . . . . . . . . . . . . . .388.80 –7.60 504.00 359.50 Pearson . . . . . . . . . . . . . . . . . . .939.50 –19.00 1069.00 574.00 Tullett Prebon . . . . . . . . . . . . . . .331.40 –5.50 436.20 261.20
BP . . . . . . . . . . . . . . . . . . . . . . .433.35* +1.10 658.20 411.50 Halfords . . . . . . . . . . . . . . . . . . .507.00 +1.50 524.00 299.00 Pennon . . . . . . . . . . . . . . . . . . . .533.50 –10.00 558.00 434.40 Tullow Oil . . . . . . . . . . . . . . . . . 1145.00 –3.00 1375.00 834.50
Brit Insurance . . . . . . . . . . . . . . .745.00 –5.50 831.60 709.00 Halma . . . . . . . . . . . . . . . . . . . . .252.20 –0.90 278.50 165.75 Persimmon . . . . . . . . . . . . . . . . .389.30 –17.30 534.50 340.25 UK Commercial Prop. . . . . . . . . . .78.25 –1.45 84.90 59.50
British Airways . . . . . . . . . . . . . .200.80 –4.90 255.80 117.30 Hammerson . . . . . . . . . . . . . . . .360.90 –15.10 460.30 272.25 Petrofac . . . . . . . . . . . . . . . . . . 1190.00 –9.00 1294.00 580.00 Ultra Electronics . . . . . . . . . . . .1619.00 –15.00 1678.00 1064.00
British Amer. Tob . . . . . . . . . . .2143.00 –12.50 2335.50 1637.00 Hansen Trans . . . . . . . . . . . . . . . .88.60 –2.80 169.25 78.00 Petropavlovsk . . . . . . . . . . . . . .1224.00 –27.00 1370.00 515.00 Unilever . . . . . . . . . . . . . . . . . .1866.00* –21.00 2024.00 1419.00
British Empire Tst . . . . . . . . . . . .430.90* –6.10 467.90 338.50 Hargreaves Lansdown . . . . . . . .360.00 +2.30 387.00 197.25 Premier Farnell . . . . . . . . . . . . . .216.90* –5.60 249.70 121.25 United Utilities . . . . . . . . . . . . . .556.50 –5.00 575.00 429.00
British Land . . . . . . . . . . . . . . . .456.20 –10.50 532.00 353.00 Hays . . . . . . . . . . . . . . . . . . . . . . .98.20 –1.80 119.00 80.00 Premier Oil . . . . . . . . . . . . . . . . 1164.00 –34.00 1431.00 984.00 Utd Business Media . . . . . . . . . .512.50 –6.50 579.50 364.75
Britvic. . . . . . . . . . . . . . . . . . . . .474.80* –7.20 497.70 253.25 Henderson . . . . . . . . . . . . . . . . .130.90 –2.90 157.80 83.75 Provident Financial . . . . . . . . . . .818.50* –7.50 986.00 763.00
Brown(N.) . . . . . . . . . . . . . . . . . .252.20 –0.80 284.30 204.25 Heritage Oil. . . . . . . . . . . . . . . . .426.20 –11.50 630.00 409.80 Prudential . . . . . . . . . . . . . . . . . .556.00 –9.50 665.00 350.25 Vedanta Resources . . . . . . . . . .2175.00 –120.00 2967.00 1262.00
BSkyB . . . . . . . . . . . . . . . . . . . .576.00 –4.00 637.50 423.75 Hikma Pharma . . . . . . . . . . . . . .690.00 –9.00 730.00 412.00 PZ Cussons . . . . . . . . . . . . . . . .292.00 +0.40 305.50 169.75 Victrex . . . . . . . . . . . . . . . . . . .1074.00 –15.00 1123.00 498.50
BT . . . . . . . . . . . . . . . . . . . . . . .130.10 –3.40 151.00 91.10 Hiscox . . . . . . . . . . . . . . . . . . . .337.70 –2.40 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . .128.00 –2.00 179.10 113.90 Vodafone . . . . . . . . . . . . . . . . . .138.65* +0.85 153.80 111.20
Bunzl . . . . . . . . . . . . . . . . . . . . .714.50* –1.50 784.50 478.50 Hochschild Mining . . . . . . . . . . .283.00 –8.50 370.60 220.00 Randgold Resources. . . . . . . . .5900.00 –75.00 6285.00 3351.00 VT . . . . . . . . . . . . . . . . . . . . . . .744.00 –5.50 773.00 416.00
Burberry . . . . . . . . . . . . . . . . . . .729.00 –5.50 750.00 359.00 Home Retail . . . . . . . . . . . . . . . .242.00* –8.40 336.50 235.30 Reckitt Benckiser . . . . . . . . . . .3205.00 –60.00 3667.00 2649.00 Weir . . . . . . . . . . . . . . . . . . . . . .914.00* –19.50 1076.00 437.50
Cable & Wire Comms . . . . . . . . . .62.85 +0.30 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2101.00 –56.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .476.70 –1.60 548.00 403.75 Wetherspoon(J.D.) . . . . . . . . . . .427.80 –11.80 556.00 348.00
Cable & Wire Wwide . . . . . . . . . . .85.45 –0.50 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .630.10* –9.30 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .85.95 –2.95 125.50 58.75 WH Smith . . . . . . . . . . . . . . . . . .444.00* –7.70 551.00 405.25
Cairn Energy. . . . . . . . . . . . . . . .396.60 –11.80 441.50 306.80 Hunting . . . . . . . . . . . . . . . . . . .468.30 –20.70 659.50 377.00 Rentokil Initial . . . . . . . . . . . . . . . 118.40 –2.50 140.20 82.00 Whitbread . . . . . . . . . . . . . . . . .1393.00* –29.00 1645.00 778.50
Caledonia Invs . . . . . . . . . . . . .1615.00 –35.00 1759.00 1459.00 ICAP . . . . . . . . . . . . . . . . . . . . . .394.00 +2.70 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .60.00 –2.00 99.50 59.30 William Hill . . . . . . . . . . . . . . . . .177.60 –4.10 219.50 160.50
Capita . . . . . . . . . . . . . . . . . . . . .771.00 –6.50 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .394.90 –0.80 436.30 216.50 Rexam . . . . . . . . . . . . . . . . . . . .315.80* –1.40 330.50 222.50 Witan Inv Tst . . . . . . . . . . . . . . . .432.00 –11.50 487.00 329.50
Capital & Counties . . . . . . . . . . .103.10 –2.50 125.40 99.60 Imagination Tech Gp . . . . . . . . . .240.30 –4.10 289.30 80.00 Rightmove . . . . . . . . . . . . . . . . .706.00* –16.50 729.00 334.00 Wolseley . . . . . . . . . . . . . . . . . .1600.00 –72.00 1742.00 986.00
Capital Shopping Centres . . . . . .327.90* –14.00 580.00 300.20 IMI . . . . . . . . . . . . . . . . . . . . . . .648.50 –17.50 742.00 275.25 Rio Tinto . . . . . . . . . . . . . . . . . . 3116.00 –55.00 4104.00 1822.00
Carillion . . . . . . . . . . . . . . . . . . .320.30* –8.50 361.90 236.75 Imperial Tobacco. . . . . . . . . . . .1917.00 –13.00 2159.00 1547.00 RIT Capital Partners . . . . . . . . .1075.00 –20.00 1159.00 861.50 Wood Group (John). . . . . . . . . . .303.40 –13.90 411.70 231.25
Carnival . . . . . . . . . . . . . . . . . .2608.00* –81.00 2937.00 1431.00 Inchcape. . . . . . . . . . . . . . . . . . .278.10 –8.50 347.00 270.20 Rolls Royce . . . . . . . . . . . . . . . .587.00* –7.00 631.50 321.25 WPP . . . . . . . . . . . . . . . . . . . . . .657.50 –12.00 744.00 380.50
Catlin . . . . . . . . . . . . . . . . . . . . .326.50 –12.80 380.50 284.75 Informa . . . . . . . . . . . . . . . . . . . .381.10 –10.50 439.40 216.00 Rotork . . . . . . . . . . . . . . . . . . .1339.00 –35.00 1482.00 779.50 Xstrata . . . . . . . . . . . . . . . . . . . .951.20 –34.30 1344.50 555.10
Centrica . . . . . . . . . . . . . . . . . . .281.50* –3.20 320.00 212.50 Inmarsat . . . . . . . . . . . . . . . . . . .788.00 +2.50 819.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .43.49 –2.51 58.95 28.25 Yell Group. . . . . . . . . . . . . . . . . . .29.60 –2.90 86.00 20.25
Charter Intl . . . . . . . . . . . . . . . . .678.50 –30.50 855.50 395.25 Intercontl Hotels . . . . . . . . . . . .1099.00* –43.00 1175.00 584.50 Royal Dutch Shell A . . . . . . . . .1809.00* –32.00 2068.50 1431.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .3264.00 –10.00 3711.00 1910.00 Intermediate Capital . . . . . . . . . .261.30 –10.30 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1740.00* –33.50 1997.50 1437.00
Chloride Group . . . . . . . . . . . . . .286.00 +4.00 308.40 129.00 Intertek . . . . . . . . . . . . . . . . . . .1396.00* –7.00 1576.00 987.50 RSA Insurance . . . . . . . . . . . . . . 118.00* –1.30 142.00 113.10 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .714.50 –17.50 806.50 623.00 Intl Power . . . . . . . . . . . . . . . . . .293.90* –6.50 354.00 228.00 SABMiller . . . . . . . . . . . . . . . . .1915.00 –30.00 2090.00 1210.00
Cobham . . . . . . . . . . . . . . . . . . .231.50* –3.80 278.60 164.90 Invensys . . . . . . . . . . . . . . . . . . .273.40 –5.90 350.30 212.25 Sage . . . . . . . . . . . . . . . . . . . . . .243.10* –1.30 260.50 167.20 www.interactivedata.com

3G 13:05

Markets

SPREAD BET NOW

Cash: 20719.24 Unrealised P&L: 92.70
Margin: 560.00 Total Position: 20092.70

List One Long name... List Three

Sell Buy Change Status
UK 100 Rolling Spread
Trade
4917.0 4919.0 +45.2 >
Wall Street Rolling Spread
Trade
9599 9605 +24 >
US SP 500 Rolling Spread
Trade
1034.6 1035.2 +4.8 >
Trade
US Tech 100 Rolling Spread
1644.4
884.8 1647.4
885.2 +6.6
-15.0 >
Germany 30 Rolling Spread
Trade
5538.5 5540.5 +67.0 >
Trade
US Crude Oil Oct 09 Spread
1644.4
884.8 1647.4
885.2 +6.6
-15.0 >
GP/USD Rolling Spread
Trade
16346 16350 +61 >
5

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US-led losses likely to knock European markets

and the losses extended after So the forecast for this morning’s taken a particularly large toll on the If that continues – in addition to

MARTIN ON European markets closed.

The blue chip US index even closed
open reflects the on-going global
angst.
index.
OIL PLUG SUCCESS MAY BOOST FTSE
some bargain-hunting – we may see
BP shares start to recover. In turn the

THEMARKETS
below the psychologically sensitive FTSE may bounce back somewhat as
level of 10,000, and UK And European BP SHARE PRICES IN 200 PENCE DROP However the latest news over its the day progresses.
markets will feel the follow-on effects The UK’s FTSE 100 index has faced attempts to trap oil do appear to be Martin Slaney is director of global deal-
of that this morning. additional particular pressure from indicating some initial success. ing operations at GFT
GFT is quoting the FTSE 100 index BP – which was until recently the
to open down 60 points from Friday’s largest company in the index (it’s still
close, at a level of 5,066. third) – and its relatively high weight- ANALYSIS l DOW
The German DAX is also expected ing means the drop in its share price 11,400
to start lower, down 48 points at of around 200 pence since the magni-
5,890, and the French CAC is forecast tude of the spill was revealed has 11,200 9,931.22
to open down 35 points at 3,420. 11,000 4 Jun
10,800
CONCERNS OVER HUNGARIAN DEBT 10,600
MARTIN SLANEY Friday’s non-farm payrolls number
was only part of an ever-increasing 10,400

world of woe for the markets; con- 10,200

THE Dow suffered from its third- cerns that Hungary may now face 10,000
worst sell-off of the year on Friday fol- similar debt difficulties to Greece also 9,800
lowing a disappointing jobs report, emerged. 8 Mar 26 Mar 19 Apr 10 May 28 May
 24 Investment | Spread Betting CITYA.M. 7 JUNE 2010

Smart traders
will capitalise
on this week’s
FTSE reshuffle
The shake-up can have a substantial impact
on firms’ share prices, says Kathleen Brooks

D
URING the last month the top foot- that FTSE 100 tracker funds will have to
ball teams in the Coca-Cola buy the stocks, and sell the companies
Championship have been vying for that are getting demoted,” says David
places in the Premier League. The Jones, chief market strategist at IG Index.
lucky teams are Newcastle, West Societe Generale estimates that the extra
Bromwich Albion and Blackpool, replac- demand for Essar shares once it enters
ing Portsmouth, Burnley and Hull City the FTSE 100 will be 27m shares, with
which have lingered at the bottom of 8.6m for African Barrick Gold.
football’s top flight.
In the same spirit, the FTSE reshuffle is GOOD PROSPECTS
taking place this week. A few of the However, Jones adds that there has been
largest companies in the FTSE 250, as no definitive work done on the impact of
measured by their market capitalisa- the FTSE reshuffle on share prices.
tions, will replace those companies in the Nonetheless, it makes sense that compa-
FTSE 100 that have seen their value drop nies that are moving into the FTSE 100 A shuffle can throw energy and mining stocks, which already instrumental in dragging down the
a little too much. The review will be have good prospects. “It can be a good up new potential make up more than a third of the entire index in recent weeks.
announced on Wednesday after the mar- strategy to buy the companies that are index. “This reshuffle certainly won’t Although it is well trailed which stocks
ket close and it will be based on the clos- getting promoted since they are obvious- Picture: GETTY help with the diversity of the FTSE 100, will enter and exit the FTSE 100, there
ing prices on Tuesday. The changes will ly growing. If you buy those companies which will remain at the mercy of the oil should still be some subsequent volatility
be effective at from the market close on then you are moving with the market and mining sectors,” he adds. BP has been for traders to take advantage of.
18 June. trend, which can spur further price
Based on 1 June prices, the companies
that look like they will be promoted to
appreciation,” says Jones.
Likewise, getting ejected from the FTSE
FOCUS | FTSE 100: ONE UP, ONE DOWN
the top flight of the FTSE will be Essar, 100 doesn’t bode well for a stock price.
the energy company, and Africa Barrick Already, the London Stock Exchange’s Essar Energy is expected to enter the LSE, Essar Oil, the company’s main index. Its share price has dropped 17
Gold, the mining stock. They will replace share price has fallen to 10-month lows,
travel firm Thomas Cook and the London and Thomas Cook has fallen to its lowest FTSE 100 just a month after its float on energy subsidiary in India, had seen its per cent this year. This reflects stiff
Stock Exchange itself, according to John level since last September. the London Stock Exchange (LSE), hav- price in Bombay slip 32 per cent this competition from pan-European alter-
Carson, an analyst with investment bank This is because institutional investors ing previously been listed only in India. year, in part due to falling oil prices. Its natives, but the LSE claims it will take
Societe Generale. such as pension funds tend to invest in
Companies can join the FTSE 100 if blue-chip stocks, so companies that will Essar Group is one of India’s biggest price-to-earnings ratio on the Bombay time for last year’s purchase of Borsa
they rank among the top 90 companies be demoted could be subject to selling conglomerates but it floated just its Stock Exchange remains high. Despite a Italiana to pay off. It is probably right
listed in the UK based on market capital- pressure, says Angus Campbell, head of energy wing in the UK to fund a refin- first-day 7 per cent drop on the LSE, and some of its newer competitors may
isation, and conversely they can be elimi- sales at Capital Spreads. Likewise, he
nated if they fall to position 111 or below. notes that being a member of the FTSE
ery expansion, a move which fuelled Eassr Energy’s price is now at 437p, yet fold – but in the meantime, we are
But does the reshuffle offer an oppor- 100 has prestige associated with it, which fears in the City about the robustness closer to the initial target of 450p. facing an ironic departure of an iconic
tunity for spread betters? “Some people can add to a stock’s attractiveness. of its corporate governance. Even Ironically, Essar’s FTSE 100 entry firm from its own flagship index.
think you should buy the companies that Jones points out that the reshuffle will before its disappointing debut on the would push the LSE itself out of the Juliet Samuel
are getting promoted on the expectation tip the FTSE 100 even more in favour of

LET US GIVE
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CD03UK.099.052010
CITYA.M. 7 JUNE 2010 Investment | Spread Betting 25

THE TIPSTER spread of $4.881-$4.911.

Retailer Halfords is scheduled to release
FTSE 100 STILL 10 PER CENT OFF 2010 full-year results this Thursday and the expec-
tation is for a robust performance. The group
HIGHS DESPITE LAST WEEK’S RALLY issued a strong fourth quarter update at the
end of March, helped in part by increased
trading in higher gross margin categories.
Stockbroker WH Ireland expects the results
to be relatively upbeat and views the retailer

T
HE FTSE 100 index was vacillating the rest of market to end the week at 574.9p. as a quality defensive play in the space. But
around the 5,200 level at the end of last Look for dips towards the 540p region for after the strong share price performance
week, eventually closing at 5,126 on opportunities to pick up a position in BSkyB. seen in recent months, its analysts fail to see
Friday. But this is still some 10 per cent Spread Co offers a spread on BSkyB of 574p- the catalysts for a re-rating from current lev-
below the blue-chip index’s 2010 highs. 575.5p. els in the short-term and would be buyers on
However, the German Dax 30 index is only 3 Commodities might have struggled to gain weakness. Spreadex offers 505.7p-508.8p.
per cent off its highs for the year so the FTSE some traction following the heavy losses suf- Drinks manufacturer Davide Campari-
100 could have some catching up to do. fered last month but natural gas has stood Milano has been a strong performer over the
Capital Spreads quotes 5,122-5,123 on its out, rallying more than 10 per cent over the past three months, with its share price rising
rolling daily spread. past week to hit a three-month high. The lat- 11 per cent in absolute terms. But Evolution
BSkyB shares opened up 2 per cent on est inventory report showed stockpiles rising Securities reckons it is now trading at a pre-
Friday after news that the satellite group had by less than expected, which triggered a mium and prefers Diageo in the short-term.
agreed to buy Virgin Media’s channels busi- break above the 200-day moving average at IG Index offers €4.1808-€4.1892 for
ness, Virgin Media Television, for up to $4.54 per million British thermal units. The Campari and 1,068.9p-1,071.1p for Diageo.
£160m in cash. But the stock fell in line with initial target is $5.05. IG Index has a July Jessica Mead

THE WORLD CUP TIPSTER

TAKE A BET ON A RANGE
OF WORLD CUP MARKETS

W
ITH the summer’s biggest sporting cy for the match at 1.2, also with Sporting their group (France, Mexico and Uruguay) is Recent Fifa rulings would suggest that the Will England
event kicking off this Friday, football Index. Fabio Capello will want to avoid defeat not brimming with talent either. Sporting total number of yellow cards will be in the deliver what you
fans will surely be looking to spice it and win the group, but England can still do Index markets suggest they are the team 300s again. But extrabet is currently only are hoping for?
up with some spread bets. So, every that if they draw with the USA. least likely to qualify from Group A but they offering 285-295, making the market a
Monday throughout the World Cup, City A.M. If you want to take a view on England’s could still claim the runners-up spot. You promising buy. Picture: ACTION
will be bringing you some top football tips. performance over the tournament as a whole, could therefore place a small buy of the Goals within minutes of kick-off are always IMAGES
The start of the competition is usually a then history would suggest selling extrabet’s Group A index at 5.5-7 with Sporting Index – exciting and selling the time of the fastest
nervous stage for any side and that can often total England goals spread of 10-10.7. In the 25 points for the group winner; 10 points for goal has been a winner in the past three tour-
mean tight games. England’s last three open- last five World Cups, England have scored six, the runner-up. naments. Those expecting a team’s defence to
ing appearances at the World Cup have all six, seven, eight and seven goals. If you’d rather avoid taking a punt on an be caught unawares or capitulate quickly
produced exactly two goals, so there looks to Close attention will also be paid to the per- individual team, there are a number of mar- could sell extrabet’s spread of 87-97 seconds
be little downside in selling Sporting Index’s formance of South Africa. The host nation kets suitable for you. In every tournament from kick-off, which has a stop-loss of 150
total goals for the match market at 2.6-2.8. has always qualified for the knockout stages since the 1990 World Cup, the number of yel- seconds just in case strikers aren’t as aggres-
Alternatively, you could sell England suprema- and while South Africa are not the strongest, low cards has risen, reaching 318 in 2006. sive as you had expected. Jessica Mead

created 41,000 jobs, much fewer than

SPREAD BET expected and chose instead to increase
GURU staff working hours.
The stock market reaction was swift and
JOSHUA severe on Friday lunchtime, with a broad-
based sell-off causing the FTSE 100 to fall
RAYMOND by 90 points within minutes of the
MARKET announcement. The reasoning behind the
STRATEGIST sell-off is that the non-farms are a key bell-
wether of the strength of the US economy.
[email protected] With both non-farm and private payrolls
missing expectations, investors will
inevitably be questioning the strength of
the labour market recovery and its impact
upon wider US growth at a time when the
market is hoping for a sustained bounce in
consumer spending.

Q.
Dear Josh, what do last week’s

Q.
US non-farm payrolls figures Dear Josh, why has the oil leak in
suggest for the country’s eco- the Gulf of Mexico made BP’s The BP oil spill has had a light at the end of the tunnel. Up until the have on dividends to shareholders.
nomic recovery? shares so volatile of late and serious repercussions end of last week, there seemed to be no And thirdly, the political ramifications
what might the repercussions of the spill in the markets end in sight as far as stopping the leak was that may lie ahead for BP in the US, partic-

A.
Last week’s non-farm payrolls were be? Picture: PA concerned. ularly with President Obama’s Democratic
a blow to investors who had been Even now, the installation of the contain- Party facing crucial Congressional elections

A.
hoping for the data to show that The shares have been so volatile ment cap is not a long-term solution. The in just five months time.
the US labour market recovery was gaining simply because there is so much longer the leak goes on, the harder it All of these three factors are making the
strength. Payrolls for May only pointed to uncertainty as to what the final becomes to make an assessment of three outlook uncertain for BP and are playing a
growth of 431,000 jobs when the market repercussions of the oil spill in the Gulf of potential repercussions. First and foremost, role in the current volatility of share prices.
had been expecting as many as 513,000 Mexico will be. The leak itself is a major the costs of the clean up, which ratings However, BP’s share price, which had fallen
jobs to be added. ecological disaster and it is only now that agency Fitch said could potentially exceed as much as 37 per cent since the leak start-
Moreover, private employment data was they have installed a containment cap over its worst-case scenario of $5bn. Secondly, ed, recovered slightly last week as traders
equally troubling. Private employers only the hole in the wellhead that there may be the knock-on impact that these costs will hunted for bargains.
 Lifestyle
26 CITYA.M. 7 JUNE 2010

| Travel

Bali high: a
health retreat
with a view
Timothy Barber escapes the stresses of the
city in stunning Indonesian surroundings

F
ROM the long balcony of my private nutritionist, depending on your needs,
villa up in the Balinese hills, I can gaze and from it a programme for your stay is
out over the kind of view that feeds devised, as well as advice given on how to
the soul. The villa’s perch overlooks a extend into your daily life what you gain
jungle-swathed canyon that rises on the far from the retreat. The programmes can
side to slope upwards to the terraced rice include elements such as yoga, hydrother-
paddies cresting the hills. Mix that with a apy and pilates sessions, spa treatments,
soundtrack of croaking tree frogs, exotic fitness training, special diets and further
birdsong and the rushing water of the river consultations with experts. It all depends
below, and you’ve got a setting of pure, how intensely you want to take it – three
close-your-eyes-and-give-thanks escapism. I days is a minimum recommended stay, Clockwise from above:
feel like a parched plant taking on water as and programmes can last for as long as COMO Shambhala
I drink it all in, the pressures of life simply you can afford. Estate’s spa zone and
dissolving – and I’ve only just got here. A yoga villa; a residence
programme of stress-busting treatments OPEN MIND pool; the Tejasuara
and therapeutic activities is all to come. I confess I felt some trepidation before residence with lit fire
COMO Shambhala Estate, a health resort arriving – I generally glaze over when by night; a residence
in the hills near Bali’s cultural heartland, phrases like “holistic healing” come up. But bedroom.
Ubud, is a perfectly isolated environment my consultation with the estate’s friendly
of unsullied calm and beauty. Private resi- American nutritionist Lacey Hall put me at
dences dot the undulating fringes of an ease. As well as my diet, we discussed my
estate that was once hill-top rice paddies, lifestyle, work, sleep patterns, future plans,
and which retains a sense of rural and I left with plenty of sound, steady
Indonesian simplicity. At the highest part advice. You’re not swamped in eastern mys-
the complex of lobby, restaurant ticism, nor are you cajoled into activi-
areas, spa zone and hydrothera- ties that don’t interest you –
py pool are all elegant though you’ll make the
white stone pavilions most of your stay with an
with attractive verandas open mind.
and walkways. Below, COMO Shambhala
discrete pathways is an early-to-bed,
snake through ter- early-to-rise kind of
raced gardens and a place – optional
onwards down the yoga sessions
forested slopes. (beginners are
The resort is an encouraged), held and pressure point touch unique to this spa burning dramatically by the rectangular
outpost the COMO in a beautiful open – for which I was led down the gorge to an stone pool. Sun recliners surround the
group, which also air pavilion, begin open-air treatment pavilion by the river. pool, and a lounge area of sofas and arm-
includes fashionable at 7.30am, as do You follow a stepping-stone path down- chairs occupies an adjacent veranda that
London hotels The strenuous walking wards to reach it, and receive your treat- juts out over the gorge.
Metropolitan and The tours around the estate ment with the sun glistening through the If you want to kick back in more private
Halkin and spa resorts in and its surrounds. trees and the sound of the river and a bub- surroundings, each villa has a hidden out-
the Maldives, Bhutan and The spa is housed in a blign waterfall in the background. side area with a jacuzzi, a roofed-over mat-
Turks & Caicos, plus another minimalist Japanese-style tress, and an al-fresco shower. Washing
in the Ubud area. But the building with a beautiful open-air SOUND OF FIRE yourself while gazing out over the jungle
Shambhala estate is different from those – foyer and a raft of scenic treatment rooms, You don’t need to spend all your time being tree tops only enhances the soothing sense
a dedicated health retreat that’s intended each of which has a small garden area. As treated, cleansed or exercised. Relaxation is of getting back to nature.
not simply to give you a few days of bliss- you’d expect, there’s a lengthy list of mas- vital, and the accommodation is designed As do the villas themselves – they’re
ful repose or pampering, but to inspire sages, scrubs and cleansing rituals to to that end. There are just 30 suites, mostly simple, calming and spacious, built in a
change. You come here to relax, but also choose from – while staying at COMO bungalow villas arranged in groupings of style meant to reflect traditional local
to reboot your way of life, and to heal. Shambhala is about more than pampering, four or five around a shared pool area. methods. There are polished teak floors,
To that end, your stay begins with a con- the pampering when it comes is superla- There are five such groupings, known as wooden walls and large sliding doors,
sultation session delving into your tive. A hot stone massage I received was “residences”, with Indonesian names like while rustic wooden furniture pieces and
lifestyle, background and any health con- pure, indulgent bliss but even better was a Wanakasa (meaning “forest in the mist”) Indonesian ornaments are scattered
cerns. This may be with an Ayurvedic doc- Balinese “taksu” massage – a soothing mix- and Tejasuara (“sound of fire”). I stayed in around. The main area is dominated by a
tor, a counseling psychologist or a ture of sweeping movements, joint needing the latter, where a fire-pit is lit at night, huge four-poster bed draped in billowing

“Booking a villa ffor

or yyour
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Caxton
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CITYA.M. 7 JUNE 2010 FINE DINING 27
IN CHISWICK
SEE TOMORROW’S
RESTAURANT REVIEW

TRAVEL NOTES
ZOE STRIMPEL

Portuguese paradise
This brand new hotel and spa is a seaside
paradise of a different sort than the usual
palm tree and white sand type. Surrounded
by pine trees, sand dunes and the Atlantic, it
offers a wind-blown idyll that combines for-
est and sea. There are ten luxury suites with
terraces and jacuzzis facing the beach and
brilliant Atlantic views. Food is local and the
environment has been respected in the build-
ing of the hotel. From €230 per night on a
room-only basis. To book call +351 261 936
340. www.areiasdoseixo.com.

New luxury travel concierge service

Set up by socialite Natasha Thomas, Total Access offers a “social planning service” and can
arrange visits to 800 exclusive establishments round the globe, including the best bars, par-
ties, hotels and airlines. Members get a personal account manager who is on call at all times,
and can advise on the best travel and entertainment choices. It’s a tough life. £245 per year
for a Total Access card. www.totalaccessworlwide.com.

Taiwan’ s tribute to Africa

Asia meets africa at Taiwan’s glossy Leefoo Resort Guanshi, where there are African-themed
rooms and the opportunity for guests to get up close to the kind of animals you’d normally
find on safari. Floor-to-ceiling windows offer unobstructed views of free-roaming giraffes,
zebras, rhinoceros, ostriches and ring-tailed lemurs. Prices start from NT$6,800 (approxi-
mately £140) per night based on double occupancy. www.leofooresort.com.tw.

white netting to keep the mosquitoes out Despite the small number of guests
(not that I noticed any), while a separate there are two places to eat, and the food,
DETAILS
dressing area at the back gives way to a developed in partnership with the estate’s
ITC Classics offers
bathroom with a sunken bath so huge it’s nutritionist, is as sophisticated, colourful
practically a plunge pool. While it all feels and – thankfully – substantial as it is three nights at JAMAICA ANTIGUA ST.LUCIA BAHAMAS
natural and eco-driven, there’s air condi- healthy and fresh. Kudus House, in an COMO Shambhala
tioning, a large flatscreen TV and an inter- ancient Javanese villa brought over from Estate from £1,345
net connection – though turning these on that island brick by brick, serves traditional per person, or seven
feels somewhat beside the point. Indonesian food, while more globally-influ- nights from £1,835,
enced cuisine is found at all-day restaurant based on two shar-
PERSONAL ASSISTANT Glow. There’s also a list of juices and ing a Garden Room
For those with larger budgets, there are big- smoothies for every therapeutic purpose. including breakfast,
ger villas with private pools, second bed- You don’t need to reserve tables – sim- flights with Thai
rooms, treatment rooms and other ply turn up and eat at any time. The serv- Airways from
luxurious extras. No matter what the grade ice is charming – I was greeted by my Heathrow and
of your accommodation, however, you get a name each time I went to eat, no matter transfers.
personal assistant who will help out in any who was serving me. But it’s that kind of
way necessary, from booking treatments to place – all worries are forgotten when
To book, call 01244 For our latest offers
355 527 or go to
driving you up to the restaurants in a golf you’re this well looked-after, and that’s www.itcclassics.co.uk visit www.sandals.co.uk
buggy if you don’t fancy the walk. the point.
call 08000 22 33 10 or
OTHER HEALTH DESTINATIONS see your local travel agent

SHA WELLNESS CLINIC, SPAIN

Open a year and a half, Spain’s Sha Wellness Clinic, just
outside Alicante, has put a whole new gloss on the old
concept of the European health farm. In achingly stylish
surroundings, get consultations with doctors, nutritionists,
counselors and therapists, and take part in therapies that
mix western and Oriental healing concepts. These include
floatarium sessions, purified oxygen sessions, colonic
hydrotherapy, acupuncture and massages, plus yoga, tai
chi, cooking demonstrations and lectures. You’ll also get a
two month follow-up programme. From £2,100 per per-
son based on two sharing, or £2,400 for singles, including
airport limousine transfer with Wellbeing Escapes.
www.wellbeingescapes.co.uk

KALARI KOVILAKOM, INDIA

In Kerala, the heartland area of traditional Ayurveda heal-
ing philosophy, Kalari Kovilakom is not a place for the faint-
hearted. Guests are given simple pyjamas to wear and
confined to the premises for two weeks as they undergo a
strict Ayurvedic detox and replenishment. Daily yoga and
meditation classes are compulsory, as are regular analysis of
bowel movements. There are also plenty of massages – car-
ried out on traditional wooden tables – herbal treatments, WORLD’S
scrubs, steaming sessions, medicines and a carefully con- LEADING ALL
trolled diet. It’s a rigorous regime in a remote setting, but ABTA & ATOL INCLUSIVE
protected
the results can be life-changing. From £3,100 per person
based on two sharing, or £4,000 for singles, with NOW OPEN the NEW SANDALS
Wellbeing Escapes. www.wellbeingescapes.co.uk. EMERALD BAY, Great Exuma, Bahamas
 28 Lifestyle | TV& Games CITYA.M. 7 JUNE 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE TV PICK

TERRESTRIAL
6pm BBC News 6pm Eggheads 6pm London Tonight 6pm The Simpsons 6pm Home and Away: Hugo
6.30pm BBC London News 6.30pm Great British Railway 6.30pm ITV News 6.30pm CHOICE Hollyoaks considers handing himself over.
7pm The One Show Journeys 7pm Emmerdale 7pm Channel 4 News 6.25pm Live from Studio Five
7.30pm Jimmy’s Food Factory: 7pm Tammy Wynette: ’Til I Can 7.30pm Coronation Street 8pm Dispatches: Undercover 7.15pm Cricket on Five:
BBC News Make It On My Own: Profile of 8pm Countrywise Social Worker England v Bangladesh.
8pm EastEnders the country artist. 8.30pm Coronation Street: 9pm FILM Cloverfield: 8pm Police Interceptors:
8.30pm Panorama 8pm Springwatch 2010: Hugh 9pm Father & Son: New series. Premiere. Monster thriller, Five News at 9
9pm For Queen and Country Miles explores fish life in rivers. Drama exploring the gun starring Michael Stahl-David. 9pm CHOICE David Jason:
10pm BBC News 9pm CHOICE Mary, Queen of culture of inner-city life. 2008. The Show Must Go On!
10.25pm Regional News Shops: New series. Mary Portas Dougray Scott stars. 10.35pm FILM Predator 2: 10pm The Simon Cowell Factor
10.35pm The Graham Norton Show. tries to improve the fortunes of 10pm ITV News at Ten Sci-fi thriller sequel, starring 11pm Justin Lee Collins: Good MARY, QUEEN OF SHOPS
With Miley Cyrus and Usher. a London bakery. 10.30pm London News Danny Glover. 1990. Times BBC2, 9PM
11.20pm Inside Sport: South Africa 10pm Have I Got News for You
in Black and White 11.50pm FILM
10.35pm FILM Van Helsing: 12.40am Poker 12am America’s Toughest New series. Retail expert Mary Portas
The Best of Times: 1986; 10.30pm Newsnight: Weather Gothic action adventure, 1.45am FILM Sleep My Love: Prisons tries to improve the fortunes of
Springwatch Weatherview 1.35am 11.20pm Dunkirk: The Soldiers’ starring Hugh Jackman. 2004. Thriller, starring Claudette Colbert. 1am SuperCasino 4.05am Wildlife a London bakery that has been
Sign Zone: Luther 2.35am Sign Story 12.50am The Zone; ITV News 1948. 3.20am Coming Up: Foreign SOS 4.30am Wildlife SOS 4.55am running for 36 years.
Zone: Lost: The Mystery of Flight 12.10am When Romeo Met Headlines John 3.45am What About Brian Rough Guide to Beaches 5.10am
447 3.35am Sign Zone: Great British Juliet 2.55am The Jeremy Kyle Show 4.25am Win My Wage 5.10am- Neighbours 5.35am-6am Home and
Menu 4.35am-6am BBC News 1.10am BBC News 3.50am-5.30am ITV Nightscreen 6.05am Wreck Detectives Away

SKY SPORTS 1 2am-5am Live WWE: Late Night 9pm Four Weddings 10pm 9pm Glee 10pm Gleeful: The The Complete History 5.30am-
SATELLITE & CABLE

7pm FIFA Futbol Mundial – Raw Cougar Town 11pm Criminal Real Show Choirs of America 6am How Does That Work?
7.30pm Live Speedway 9.30pm Minds 12am CSI: Crime Scene 11.05pm Big Brother’s Big
Time of Our Lives 10.30pm BRITISH EUROSPORT Investigation 2am Exposed: Awards Show 12.10am My DISCOVERY HOME &
Rugby Union 11pm Test Cricket 7pm Soccer City Live 7.15pm Paris Hilton 3am Trolley Dollies Name Is Earl 12.40am Scrubs HEALTH
1am Soccer AM: The Best Bits FIFA World Cup Giants 7.45pm 3.25am The Fresh Prince of Bel- 1.30am Gleeful: The Real Show 7pm Baby Days 7.30pm Baby
2am FIFA Futbol Mundial Cycling 8.30pm MotoGP Air 3.50am Maury 4.40am Choirs of America 2.25am Joan Tales 8pm Hospital 9pm HOLLYOAKS
2.30am Sports Unlimited 10.30pm FIFA World Cup Giants Nothing to Declare 5.30am-6am of Arcadia 3.50am Everwood Bringing Home the Babies 10pm CHANNEL 4, 6.30PM
3.30am Watersports World 11pm Rallying 11.30pm Soccer Home Shopping 4.35am-6am Switched I Didn’t Know I Was Pregnant Kris tries to persuade Martin to
4.30am Max Power 5.30am- City 11.45pm Le Mans 24 11pm Mystery ER 12am
6am FIFA Futbol Mundial Minutes 12.15am-12.30am BBC THREE HISTORY Bringing Home the Babies 1am
fight for his life, and Duncan hopes to
lift Ricky’s spirits by setting him up
WATTS 7pm On the Money with Robert 7pm Holy Warriors: Richard the I Didn’t Know I Was Pregnant with India.
SKY SPORTS 2 Peston 7.30pm Total Wipeout Lionheart & Saladin 9pm Battles 2am Mystery ER 3am Hospital
7pm NASCAR 8pm Test Cricket ESPN 8.30pm The Wags’ Stories 9pm BC 10pm Marked 11pm 4am Bringing Home Baby 5am
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QUICK CROSSWORD
     

SUDOKU KAKURO
17 15 15 38 16 38 7 
13 19
12 
27 28
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row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 10 10 6
16 34
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 30 14

above or to the left of it. 28 11
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 and you must not use the
3 34
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same digit twice in a block.
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11
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column, but it must be in a 8
7
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4 Curt, brusque (5) 1 Pierce with a lance (5)
  
WORDWHEEL 8 Leisurely walk 2 Imaginary being invented
by the sea (9) by J R R Tolkien (6)
     M P 9 Connect (3) 3 Drum, pound (4)
Using only the letters in the Wordwheel, you have 10 Chief monk (5) 4 Informal farewell
 ten minutes to find as many words as possible,
Y H 13 Stick on (5) remark (2-2)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 14 Destroy
completely (4)
5 Enlightening (8)
6 Ridge of rock, coral, etc (4)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
C R 15 Offspring of one’s
spouse by a former
7 Resin used in laminates (5)
11 Public transport vehicle (3)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
A D relationship (9) 12 Excessively devoted to
19 Gas used in a single faction (3-5)
QUICK CROSSWORD lighting (4) 16 Introductory section
SUDOKU
2 7 8 5 9 2
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 Sport
29
CAPELLO’S DEFENSIVE WORRY
ENGLAND SET TO RELY ON UNTRIED
PAIRING OF KING AND TERRY: P31

Revenge and WINNERS &

LOSERS
A WEEKEND is a long time in sport, as

his fifth title:

this lot will attest. But while for some
it was a few days to remember, others
may wish they had never set foot out
of the house.

MICHAEL DAWSON
The Spurs man was

Nadal takes it probably one of the

few to consider Rio
Ferdinand’s injury good
news, but a chance to
impress at the World

all in Paris
Cup is just reward for a
superb season in the
Premier League.
WINNER
RYAN MOORE
What a 24 hours for
the champion jockey,
dream,” said Nadal, who broke down
FRENCH after the winning point. who broke his Classic
duck by riding Snow
OPEN 2010 “When I see these titles and these
numbers, it’s amazing. I don’t know Fairy to victory in the
BY FRANK DALLERES how I did. But first of all, I’d be very Oaks on Friday, and
RAFAEL NADAL insists he is not the arrogant if I say I am the best in histo- then topped that by
best clay-court player of all time, ry. Secondly, I don’t believe I am the landing the Derby at
despite underlining his utter domi-
nance on the surface by claiming his
best in history. I try my best every day,
and we will see when I finish my
WINNER Epsom with Workforce.

fifth French Open title in six years. career.”

Nadal chalked up his seventh Success in Paris will also lift Nadal ROGER FEDERER
Grand Slam by sweeping past back to the top of the world rankings, It may merely delay
Sweden’s Robin Soderling, the only a feat that seemed unlikely after a the inevitable, but
man ever to beat him at Roland frustrating 12 months hampered by Nadal’s win at Roland
Garros, in straight sets. injuries. “I think this is one of the Garros knocks the
Fifth seed Soderling had looked in most important victories in my Swiss off the top of the
sensational form over the past fort- career,” he added. “Last year was diffi- men’s rankings, just as
night in Paris, even knocking out top cult for me. I worked a lot to be here.” he was about to equal
seed Roger Federer, but was coolly Nadal, who is now one shy of Bjorn Pete Sampras’ record
despatched 6-4, 6-2, 6-4.
Victory took Nadal’s winning
Borg’s record of six French Open
wins, did not drop a set throughout LOSER of 286 weeks as No1.
streak on his favoured surface to 22, the tournament. Big-hitting
following tournament wins earlier Soderling tried manfully in the first ROBBIE COWLING
this year in Monte Carlo, Rome and set, but after conceding that Nadal Obscure, perhaps, but
Madrid. looked certain to win, and victory hilarious nonetheless.
But the Spaniard, 24, is not ready came in little more than two hours. The Colchester United
to be crowned the best player on clay chairman was forced to
of all time, preferring to wait until he ROLL OF HONOUR | NADAL’S SLAMS post an apology on the
hangs up his racket before contem- club website after
plating that accolade. Australian Open: 2009 replying to a Norwich
“I never thought to have the French Open: 2005, 2006, 2007, 2008, 2010 fan’s email with a
chance to win this tournament, five Wimbledon: 2008 stream of vitriol.
titles – for me, that’s more than a Nadal’s fifth French Open win takes to within one of the record. Picture: GETTY LOSER

Kidd proves man of moment Australia’s nemesis Wilko

ready to renew hostilities
to snatch glory for City A.M. and the World Cup success there later
▲

RUGBY UNION
that year – has been given the all-
ENGLAND manager Martin Johnson clear to resume full training tomor-
▲

POLO
expects fly-half Jonny Wilkinson to be row. Prop Jon Golding and wing
CAPTAIN Jack Kidd scored in the last fit to face his old foes Australia on David Strettle are also likely to be
minute to hand Team City A.M. New Saturday. available for the first Test in Perth.
York a dramatic 11-10 victory in the Wilkinson had been considered a “They will be back in full training
final of the MINT Polo in the Park major doubt owing to the rib injury by Tuesday, Jon probably by
tournament in London. he suffered playing for Toulon in the Wednesday or Thursday,” said
Kidd swooped to strike the winner Amlin Challenge Cup final last Johnson. “They will all be fit by
in a Square Mile showdown against month. But the 31-year-old – a key Saturday and if they are fit for full
Team IG Index Paris with just seconds man in the 2003 tour Down Under training, they are fit to play.”
to spare of regulation time at the
Hurlingham Club.
The two evenly-matched teams, SPORT | IN BRIEF
who had fought their way through
two rounds to reach the final, traded
blows throughout the championship McDowell proves lord of Manor Lope de Vega wins French Derby
decider. Jack Kidd receives the trophy for Team City A.M. New York. Picture: Andrew Tobin GOLF: Northern Ireland’s Graeme RACING: Champion jockey Ryan Moore
At 9-9 going into the final frame, McDowell lifted his Ryder Cup hopes by was denied a Classic clean sweep as
Team City A.M. New York’s trio got winning goal – and the trophy. from the professional polo players. winning the Wales Open at Celtic Manor. Maxime Guyon rode 12-1 shot Lope de
their noses in front by converting a It capped three days of fast-paced On their way to the final, Team McDowell finished on 15 under par, Vega to victory in the Prix du Jockey
penalty shot, but the three men of Twenty20-style polo in south-west City A.M. New York, which also com- three shots clear of home favourite Rhys Club at Chantilly.
Team IG Index Paris were soon level London in front of more than 32,000 prised Henry Brett and Jamie Davies, to triumph on the course that will Moore bagged the Oaks on Friday and
with a penalty of their own. spectators – a large proportion of Morrison, saw off Otkritie Team host the 2010 clash between Europe and the Derby on Saturday, but had to settle
Then, with overtime beckoning them from the City. Moscow in the first round and then the US. Davies caught the eye on the final for seventh place aboard Ice Blue in
and despite a heavy collision earlier Those who attended were also Thomson Reuters Team Geneva in the day with a course-record 62, but humid conditions at the French Derby.
on, skipper Kidd – brother of super- treated to stunt riding, military dis- semi-finals. McDowell’s 63 proved enough to land his Planteur took second while Frankie
model Jodie – pounced to claim the plays, and a number of skills events THE CAPITALIST: PAGE 10 first title since 2008. Dettori snatched third on Pain Perdu.
 30 Sport CITYA.M. 7 JUNE 2010

Results
CRICKET
SECOND TEST MATCH
England v Bangladesh
OLD TRAFFORD: England beat Bangladesh by an innings and 80 runs
Finn stars as
England wrap
ENGLAND: First Innings 419 (Bell 128, Prior 93, Pietersen 64, Al
Hasan 5-121)
BANGLADESH: First Innings 216 (Iqbal 108, Swann 5-76)
BANGLADESH: Second Inns
T Iqbal c Prior b Anderson ........................................................................2
I Kayes c Shahzad b Finn............................................................................9
J Siddique c Pietersen b Anderson ........................................................6
M Ashraful c Trott b Anderson ..............................................................14

up series win
J Islam c Prior b Finn ..................................................................................0
S Al Hasan b Shahzad ..................................................................................1
M Rahim c Sub b Finn ................................................................................13
M Mahmudullah c Prior b Finn..............................................................38
A Razzak c Morgan b Swann..................................................................19
S Islam c Strauss b Finn..............................................................................4
S Hossain not out............................................................................................4
B13............................................................................................................13
Total (34.1 overs) ............................................................................123
Fall: 2, 14, 18, 21, 37, 39, 76, 97, 119.
“The other guys bowled a lot better
▲

Bowling: Anderson 10-3-16-3, Finn 10-2-42-5, Shahzad 7-2-18- CRICKET

1, Swann 7.1-0-34-1. BY FRANK DALLERES than me but luckily it was me that
LV COUNTY CHAMPIONSHIP - DIVISION ONE: Somerset v took the wickets,” said Finn.
Warwickshire (Edgbaston); Somerset 268 and 183 v MAN of the series Steven Finn snared “I bowled better at Lord’s and there
Warwickshire 140 (M Kartik 5-30) and 130 (M Kartik 6-42). five wickets as England wrapped up are a lot of areas to improve – going at
Somerset (21pts) beat Warwickshire (3pts) by 181 runs. an emphatic victory over Bangladesh more than four an over is not ideal
Hampshire v Essex (The Rose Bowl); Hampshire 300 (M A
Chambers 5-49) and 235-6 (69.0 overs) v Essex 284. – and then insisted he had been the really in a Test match.
Nottinghamshire v Kent (Tunbridge Wells); Nottinghamshire team’s worst bowler. “It’s about putting the right
462 (C M W Read 112no, v Kent478-6 (J C Tredwell 115). Finn’s haul of 5-42 came as England amount of balls in the right areas. I’ve
DIVISION TWO: Sussex v Derbyshire (Derby); Sussex 429
(R S C Martin-Jenkins 130, M W Goodwin 121) v Derbyshire extinguished the tourists’ second bowled too many four balls and been
244-6 (65.0 overs). Leicestershire v Surrey (Brit Insurance innings for 123 runs inside a single a bit loose at times.
Oval); Leicestershire 479 (W I Jefferson 135, J W Dernbach session, having enforced the follow-on “It’s been very challenging. It’s easy
5-87) v Surrey 236 and 183 (J K H Naik 7-96). Leicestershire at Old Trafford. to cope mentally when you are win-
(23pts) beat Surrey (2pts) by an innings and 60 runs.
Middlesex v Northamptonshire (Lord’s); Middlesex 347 and The innings-and-80-run victory gave ning but physically two Tests take it
48-1 v Northamptonshire 581-7 dec. (S D Peters 199, A J Andrew Strauss’s men a 2-0 series tri- out of you, the intensity of it.”
Hall 133, A G Wakely 108). umph, with two days to spare and Bangladesh followed on 203 runs
RUGBY LEAGUE despite rain delaying the start of play behind and were instantly on the
ENGAGE SUPER LEAGUE yesterday. rack, James Anderson making the
Bradford.............................................6 Huddersfield...........................52 And it capped a personal triumph most of seam-friendly conditions to
Harlequins RL...............................50 Crusaders RL .........................22 for 6ft 8in Middlesex star Finn, who dismiss Tigers dangerman Tamim
Hull K R............................................24 Catalans Dragons ...................6
Wigan...............................................38 Castleford................................22 took six wickets in the second Test Iqbal.
TENNIS overall and a total of 15 across the two The tourists quickly collapsed to 39-
FRENCH OPEN (Paris, France)— —Men’s Singles Final: (2) R matches. 6 and, although Mahmdullah delayed
Nadal (Spa) bt (5) R Soderling (Swe) 6-4 6-2 6-4. Yet the emerging talent, 21, playing the inevitable with a colourful 38,
in only his second Test series, was in England completed the job before tea.
no mood to rest on his laurels, insist- Batsman Ian Bell took the man of
SPORTS EDITOR JON COUCH ing he had been fortunate to get such the match award for smashing 128 in
email [email protected] a haul. the hosts’ innings. Steven Finn took 15 wickets over two Tests against Bangladesh. Picture: PA
CITYA.M. 7 JUNE 2010 Sport | Football 31

King ready to rule defence with Terry Skipper Ferdinand

to stay with squad
centre-back pairing have precious lit- “We are not going to have much especially set-pieces which are impor- HE may have been ruled out of the
WORLD CUP tle time to rehearse. time to do it, regardless of me train- tant. If I do that, I’ll know where to be tournament, but injured England cap-
2010 The situation is made even worse ing once or twice a week. But I have on the pitch.” tain Rio Ferdinand is staying in South
BY FRANK DALLERES by the fact that King cannot train as known John for a long time, he is a Capello will be desperate for King Africa to cheer on his team-mates.
much as his team-mates, the great communicator on the pitch, to avoid any injury setbacks in South Ferdinand, who damaged knee liga-
ENGLAND defender Ledley King has Tottenham star’s chronic knee prob- and that is what you need,” said King. Africa, having already lost first-choice ments on Friday in the first training
dismissed fears he will not have time lems demanding he follow a reduced “He is an experienced player, as am defender and captain Rio Ferdinand. session after flying out to the World
to forge a solid partnership with John programme. I, and I wouldn’t see a problem if To add to the Italian’s concerns, Cup, will attend Saturday’s opening
Terry, insisting their experience will But the 29-year-old, who is expected we’re needed to play together. If the West Ham centre-half Matthew match against USA.
make up for a shortage of practice. to feature this afternoon when Fabio communication is good within the Upson missed training for the second It is unclear whether he intends to
It is three years since King last start- Capello’s men play local side back four, you have a good chance. successive day yesterday, although he stay beyond that, like David Beckham,
ed a game alongside Terry and, with Platinum Stars in a practice match, is “I have also been playing long is expected to return today. who has travelled with the squad
only five days until the opening confident he and Terry have the enough now to know my position. I Matthew Dawson and Jamie despite being ruled out months ago.
match against USA, England’s likely know-how to succeed. try to keep an eye on the training and Carragher are Capello’s alternatives.

Fans injured in stadium stampede

WORLD CUP
2010
BY FRANK DALLERES
WORLD governing body Fifa last
night said it was not to blame after at
least 16 people were hurt in a specta-
tor stampede outside a World Cup
warm-up match in Johannesburg.
In an incident that resurrects con-
cerns over the ability of South Africa
to host the sport’s biggest event just
days before it begins, fans charged the
Blatter praises
gates of the Makhulong Stadium in
the township of Tembisa.
Entry to the friendly between
South Africa’s
Nigeria and North Korea was free,
and it is thought that the chaos World Cup effort
unfolded when many more than the
ground’s 10,000 capacity turned up THE stampede in Johannesburg
for the match. raised fresh questions about South
Fans at the scene spoke of being Africa’s ability to host the World Cup,
pushed to the ground, walked over just as Fifa president Sepp Blatter
and crushed as crowds twice surged was congratulating the country for
towards the stadium’s gates. winning over its doubters.
At least 14 fans were injured, while In a meeting with South Africa’s
two policemen were also hurt, one president Jacob Zuma, Blatter said
seriously. they had worked hard to be the first
Fifa and the tournament’s organis- nation from the continent to stage
ing committee released a statement the tournament.
wishing those hurt a speedy recovery, “It was a long way to come, but we
but sought to ease fears of a repeat did it,” he said. “You can say it’s a Fifa
when the World Cup gets underway World Cup, but all the work to make
on Friday. this event possible has been done in
“Fifa and the organising committee Fans are thought to have twice charged the gates of the Makhulong Stadium, causing several injuries. Picture: AP this country.
would like to reiterate that this “And when at the end of the day,
friendly match has no relation what- Eye-witness accounts describe people just fell over me.” Another fan, ment. The policeman who was seri- compliments shall be given, it shall be
soever with the operational organisa- scenes that will worry both South Princess Mbali, added: “When we ously hurt was said to have been given to South Africa and the African
tion of the 2010 Fifa World Cup, for African officials and supporters trav- were coming in, they were just step- crushed against one of the gates, but continent and I’m sure we will be able
which we remain fully confident,” elling from around the globe to the ping on us. I thought I was dying. I was last night in a stable condition. to do so.”
read the statement. “Contrary to tournament. “The crowd overpow- was at the bottom.” South African Police Services said President Zuma added: “South
some media reports, Fifa had nothing ered me and I went down,” said The Makhulong Stadium is not the trouble had been caused by con- Africa is more than ready.”
to do with the ticketing of this game.” Japhta Mombelo. “I fell down and staging any games at the tourna- fusion over ticketing arrangements.

Hodgson has Schwarzer and WORLD CUP NEWS | IN BRIEF

USA get Altidore fitness boost Xavi wants Fabregas at Barca

Houllier backing for Reds job

ENGLAND’S opening match opponents SPAIN playmaker Xavi has told interna-
USA look set to have star forward Jozy tional colleague Cesc Fabregas he would
Altidore fit to face Fabio Capello’s men. love the Arsenal captain to join him at
Altidore, who spent last season on Barcelona.
loan at Hull from Villarreal, missed The Gunners snubbed a £30m bid
Friday’s warm-up win over Australia but from Barca last week and are refusing to
returned to training yesterday. contemplate a sale, but Xavi still sees his
him and, although he is desperate to Houllier, whose reign preceded The 20-year-old did not need strap- fellow midfielder lining up alongside him
▲

PREMIER LEAGUE
BY FRANK DALLERES see Hodgson stay, Schwarzer knows Benitez’s, believes Hodgson has the ping on his return to action, and is now at club level. “I would love him to come,”
the Anfield hotseat would be hard to experience to succeed at Liverpool. tipped to take part on Saturday. he said. “I have already told him so. He’s a
FULHAM goalkeeper Mark Schwarzer resist. “Roy has done very well with an footballer made up of Barca DNA.”
admits he would not begrudge man- “We hope he doesn’t go, we hope average team at Fulham,” he said. “I’d Dutch hopeful on Robben injury
ager Roy Hodgson if he walked away he stays at Fulham, but we will have be pleased if he could coach Liverpool HOLLAND boss Bert van Marwijk is Tevez raring to start tournament
from west London to replace Rafael to wait and see what happens,” said because he would deserve it. He is hopeful winger Arjen Robben will win his ARGENTINA and Manchester City star
Benitez at Liverpool. the Australia stopper. used to coaching stars, because don’t battle to be fit for the World Cup. Carlos Tevez insists his team will be much
Hodgson is among the favourites to “But I wouldn’t blame him at all [if forget he was at Inter Milan as well.” Robben injured his hamstring during a better than in qualifying when the tour-
succeed the Spaniard, who accepted a he went], not at all. It is Liverpool you Former Reds striker Robbie Fowler two-goal cameo as Holland beat Hungary nament gets underway.
pay-off to quit last week, and is the are talking about, a huge club, who is also a fan of Hodgson, but believes 6-1 in a warm-up match on Saturday. Diego Maradona’s men only scraped
preferred candidate of ex-Reds chief normally compete in the Champions Tottenham manager Harry Redknapp Robben stayed at home while the into the finals but Tevez said: “In the
Gerard Houllier. League every season. The gaffer is at would be the perfect appointment. squad flew out to South Africa, but opti- qualifiers everything was a lot more diffi-
The well-travelled Englishman, 62, that stage of this career where he is He said: “He’s done fantastic with mistic Van Marwijk has opted not to call cult. Injuries didn’t allow me to be fully
has hinted he would be tempted if a thinking ‘will this sort of opportunity Spurs and he would be a very good up a replacement. He said: “I want to give fit – now I feel 10 out of 10. I am a lot
high-profile club were to approach come around again?’” manager for Liverpool.” him every chance to still participate.” more focused than four years ago.”
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