BUSINESS WITH PERSONALITY
WORLD CUP: THE ACTION
Issue 1,153 Friday 11 June 2010
TORIES: WE KNOW
BP’S VALUE TO UK
BP IN CRISIS
BY DAVID CROW AND
EMMA SADOWSKI
DAVID CAMERON, who is visiting
troops in Afghanistan, asked chancel-
lor George Osborne to phone BP chief
executive Tony Hayward yesterday,
amid concerns the government isn’t
doing enough to counter Barack
Obama’s increasingly vitriolic attacks
on the embattled UK oil major.
“I spoke on the phone to Tony
Hayward today at the Prime Minister’s
request. We are all concerned about
the human and environmental
impact and as the Prime Minister has
said we understand the concerns of
the US administration,” Osborne said.
He added: “The Prime Minister is
also clear that we need constructive
solutions and that we remember the
economic value BP brings to people in
Britain and America.”
City A.M. understands the chancellor
told Hayward he was aware of the
challenges facing BP, but said stepping
up Britain’s rhetoric against the US
would not help the situation.
“Any suggestion we don’t realise
RSA boss John Napier
has called on Obama
to be more
“statesmanlike” in his
approach to BP
FTSE 100 ▲ 5,132.50 +46.64
FINALLY KICKS OFF
BUMPER SPORT SECTION P28-35
Chancellor George Osborne phoned BP boss Tony Hayward after President Obama’s latest attacks on the firm
how serious this is frankly ridiculous,”
one official said.
Further reaction came from the UK
yesterday as John Napier, chairman of
insurer RSA, wrote to Obama to
accuse him of possible “double stan-
dards” in his “prejudicial and person-
al” criticisms of BP.
In the open letter he said: “There is
a sense here that these attacks are
being made because BP is British.”
Pressure continues to mount on BP,
DOW ▲ 10,172.53 +273.28 NASDAQ ▲ 2,218.71 +59.86 £/$ ▲ 1.47 +0.01
MOULTON
www.cityam.com
which saw its stock close down 6.7 per
cent at 366p yesterday.
Associate attorney general Thomas
Perrelli said this week the
Department of Justice (DoJ) was
reviewing the possibility of seeking a
court injunction to stop BP from mak-
ing a dividend payout. Perrelli told a
White House committee that the DoJ
would “take action” to ensure BP has
enough cash to pay for the spill clean-
up and all compensation.
Pictures: REUTERS
This marks the first time an official
has considered taking court action to
stop a company from paying out a div-
idend. “This is such a unique thing to
do. To what extent can the govern-
ment intervene?” said a US lawyer.
Analysts said yesterday Chinese
rival PetroChina, the world’s biggest
firm by market value at $330bn, could
launch a takeover bid for the troubled
British giant.
ALLISTER HEATH: P2; NEWS: P4-5
£/¤ 1.21 unc ¤/$ ▼ 1.21 -0.01
SEEKS £67M
BETTER CAPITAL
HEADS FOR MAIN
MARKET P12
FREE
Sir Stuart
bags £4m
from M&S
▲
RETAIL
BY MARION DAKERS
OUTGOING Marks & Spencer chair-
man Sir Stuart Rose earned £4.3m last
year, a rise of 47 per cent during a peri-
od when the retail giant was forced to
cut its dividend by 20 per cent.
The executive chairman earned
£2.6m, including £1.4m in bonuses
and cash allowances. The firm’s annu-
al report said deferred share options
topped up his pay packet to £4.3m.
Last year he took no bonus but was
paid £1.77m.
Marketing director Steven Sharp,
who along with Rose waived long-
term share options last year, earned
£1.4m, while outgoing finance direc-
tor Ian Dyson received £1.5m.
The company’s annual bonus pool
stands at £80.9m, a huge increase
from £2.8m last year when the firm
missed several targets.
Rose, who will leave the company in
March 2011, said that leading Marks &
Spencer for six years “has been a pleas-
ure and a privilege”.
The company has been criticised for
offering Rose’s replacement Marc
Bolland a £15m “golden hello”.
Bolland, who became chief executive
in May, is set to receive a £975,000
starting salary and a 30 per cent salary
supplement in lieu of pension.
Rose has overseen a mixed year for
the company.
Adjusted pre-tax profits of £695m
were five per cent up on last year, but
well below the £1bn profits seen in
2008. Shares closed 2.2 per cent up yes-
terday at 342.7p.
Certified Distribution
5/04/10 - 2/05/10 is 106,285
 2 News
It’s wrong to criminalise all accidents
EDITOR’S LETTER
ALLISTER HEATH
THIS BP story just isn’t going away.
Nobody should be underplaying the
pain and suffering caused by the envi-
ronmental catastrophe that has befall-
en the Golf of Mexico. We must all
hope that the spill is halted speedily.
But Barack Obama’s nationalistic dec-
laration of war on a firm he insists on
calling British Petroleum has spiralled
out of control, with dire implications
not only for BP’s army of pension fund
and other investors, who are being
expropriated, but also for the econo-
my, the price of oil and much else.
If we want progress and growth, we
7th Floor, Centurion House,
24 Monument Street,
London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7248 1729
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Deputy Sales Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
WHAT THE OTHER PAPERS SAY THIS MORNING
CHINA EXPORT SURGE STIRS US
ANGER
A surge in Chinese exports and rising
anger in the US Congress will put
renewed pressure on China to allow
its currency to rise against the US dol-
lar. Chinese trade figures showed
exports leaping by 48.5 per cent in
May over the year before, way ahead
of analysts’ forecasts. Data released in
the US showed America’s trade deficit
widening slightly in April, with some
economists arguing that the improve-
ment in net trade and its contribu-
tion to US growth appeared to have
stalled.
CARLSBERG TAKES CONTROL AT
CHONGQING BREWERY
Carlsberg will look for more acquisi-
tions in Asia after agreeing to pay
$379m to become the leading share-
holder in a top Chinese brewer,
cannot criminalise all errors, let alone
all accidents (some will always hap-
pen, even under the most secure envi-
ronments). Firms that pollute should
be forced to pay out a realistic and pro-
portionate amount to compensate
those who have lost out; in this case,
many, many billions. But they should-
n’t be slapped with extreme fines or
shut down. Several US firms are just as
involved as BP in the current spill. So
why isn’t Obama threatening them
too? Oil firms always engage in risk-
sharing deals with governments (to
whom they pay large amounts for con-
cessions) to work out in advance the
liability of potential accidents; again,
we are not hearing about this.
There were 126 people on the
Deepwater Horizon: just eight were
employed by BP, which owned a two-
thirds stake in the project. Anadarko,
a Texan firm, owns a quarter of it;
Transocean, another American com-
pany, owned and ran the rig; a blow-
out preventer that didn’t work was
manufactured by an American compa-
Kerviel seen
as risk-taker
ENFORCEMENT
▲
BY MARION DAKERS
ROGUE trader Jerome Kerviel took
“stratospheric” risks that put French
bank Societe Generale in danger, an
ex-colleague told a Paris court yester-
day.
Kerviel’s positions, blamed by
SocGen for a €4.9bn (£4bn) trading
loss in 2008, were described as “disap-
pointing” by witness Salim
Nemouchi on the third day of
Kerviel’s trial for breach of trust, com-
puter abuse and forgery.
Nemouchi, who still works for
SocGen, conceded that the bank
could have acted earlier and avoided
losses if it had questioned Kerviel over
an “exceptional” gain of €1.5bn in
2007.
“It’s a possibility,” he told the court.
“I can’t explain his actions. I am dis-
according to Jorn Jensen, the Danish
group’s chief financial officer. The
deal to increase Carlsberg’s stake in
Shanghai-listed Chongqing Brewery
from 17.5 per cent to 29.7 per cent
was part of a broader expansion
strategy in the region, Mr Jensen
said.
GOLD SHARE CLASSES BOOST
RETURNS FOR PAULSON
Gold-denominated investments in
Paulson & Co, the $34bn hedge fund
manager run by John Paulson, have
more than doubled underlying
returns in the group’s funds for
clients. More than a third of
Paulson’s total assets under manage-
ment, including all of Paulson’s per-
sonal investments, are denominated
in gold share classes, according to
people familiar with the funds – a
sign of concern about the risks of
inflation.
ny called Cameron, while Halliburton,
the US services firm, was also an
important contractor and responsible
for cement work.
We don’t yet know how to share out
the blame, though BP is most respon-
sible, morally and legally. But just
imagine what would have happened
had Halliburton, once run by Dick
Cheney, been involved in such a crisis
during the Bush years – the exposes,
conspiracy theories, documentaries
and hysteria would have been over-
whelming. The present silence is
breathtaking in its hypocrisy.
There is now a move in the US to
injunct BP to stop it from paying a div-
idend; this outrageous attempt at
extra-territoriality must be resisted by
the UK government. Companies, like
individuals, deserve a fair trial, not an
automatic lynching by the mob. There
has so far been no proper investiga-
tion and yet the US authorities are tak-
ing for granted that BP cut corners.
Maybe it did; but we need proof.
After this, why should Royal Dutch
appointed by his behaviour, All
traders have limits they must
respect,” said Nemouchi.
Kerviel, 33, faces a maximum of
five years in jail and a €375,000 fine if
found guilty. His lawyers have depict-
ed him as a “pawn”, whose actions
were implicitly tolerated by SocGen.
France’s second-biggest bank has
rejected the claims, arguing he acted
alone without their knowledge.
The trial began on Tuesday with
widespread media coverage across
Europe, and is expected to last three
weeks.
Kerviel told the court
his desk’s trading limit
of €125m was seen as
“porous” and traders
often exceeded it
UNDER-FIRE PRUDENTIAL CHIEF IS
FROZEN OUT OF CRUCIAL TALKS
The Prudential’s leading institutional
shareholders have frozen the chief
executive out of crunch talks to
debate his own future. It emerged last
night that despite being in London,
Tidjane Thiam has held no formal
talks with shareholders this week
about the future management of the
UK’s biggest insurer. Instead, share-
holders have specifically called for
meetings with the chairman Harvey
McGrath and James Ross, the senior
independent director.
OWNERS PREPARE TO ATTRACT BUYER
FOR RESILIENT PEACOCKS
The owners of Peacocks have begun a
strategic review of the discount fash-
ion chain that could result in its
sale, the chief executive said yester-
day morning.
CITYA.M. 11 JUNE 2010
Shell, Exxon or anybody else invest
money in trying to make sure we
don’t run out of oil? If anything goes
wrong the punishment increasingly
looks as if it will be the corporate
equivalent of the death penalty. It is
just not worth it. One by-product of
this intolerance of any risk is that the
price of oil could soon rise; and
because dictatorships don’t care about
pollution, new oil reserves will only be
exploited in dodgy countries, further
skewing the geopolitics of energy.
David Cameron is terrified of
destroying his green credentials by
saying anything nice about BP, though
he started to shift last night, via
George Osborne. One can deplore the
pollution without agreeing to the
destruction of BP, as Osborne well
knows. There were rumours yesterday
of a Chinese bid for the firm to cash in
on its knock-down share price; the
coalition should remind Obama that
for the US this would be akin to jump-
ing out of the frying pan into the fire.
allister.heath@cityam.com
QCA chief executive Tim Ward said stopping the planned CGT hike is a number one priority
QCA backs CGT campaign
CITY A.M. organisation, which has argued
against the planned increase in its
CAMPAIGN Budget submission to the Treasury.
BY VICTORIA BATES “The experience of ill thought out
changes, introduced without consul-
THE QUOTED Companies Alliance, tation, indicates that Treasury rev-
the body representing small and mid- enues and government policy could
cap listed firms in the UK, has thrown be optimised by ensuring that there
its backing behind City A.M.’s cam- is sufficient time for proper consulta-
paign against the government’s pro- tion and consideration,” Ward wrote.
posed hikes to capital gains tax (CGT). The QCA backs the taper system
Tim Ward, the QCA’s chief execu- supported by City A.M., whereby more
tive, said alterations to the proposals long-term gains are taxed on a
was the “number one priority” for his decreasing scale.
AUSTRALIAN MINING TAX MAY BE EU CLOSE TO US DATA DEAL
CHANGED The European Union said yesterday it
Mining shares jumped yesterday on is close to a five-year accord with
hopes that Kevin Rudd, Australia’s Washington on financial-data shar-
prime minister, was about to ing in antiterrorist investigations,
announce changes to his proposed stressing the deal will satisfy privacy
mining tax. The measures, concerns that led the European
announced in May, have hit valua- Parliament to void a previous draft.
tions across the sector hard. EU Interior Affairs Commissioner
Australia’s Herald Sun newspaper Cecilia Malmstrom said the new
reported that Mr Rudd will reveal in agreement contained far better priva-
the next few days “major changes” to cy safeguards.
the 40pc mining super tax.
TELECOM ITALIA GOES SOLO
CHINA EXPANDS INFLUENCE IN
Telecom Italia SpA, Italy’s largest
CENTRAL ASIA telecommunications operator, yester-
Chinese President Hu Jintao is today day dismissed calls for joining a rival
expected to sign a deal to double the broadband project, telling regulators
capacity of China’s oil pipeline from that it will push ahead with its own
Kazakhstan, ending a week-long tour plans to offer ultra-fast broadband
services to 50 per cent of the Italian
of Central Asia that has further
population by 2018. Telecom Italia
cemented Beijing’s grip over the pledged to reach half of the Italian
region’s energy resources. population with high-speed services.
CITYA.M. 11 JUNE 2010 News 3

SEC approves circuit breaker

rules to ease flash crash fears
rules as soon as today as they aim to tion their effectiveness.

▲
REGULATION
BY HARRY BANKS
US securities regulators approved
new so-called “circuit breakers” yes-
terday in an attempt to prevent a
repeat of the still-unexplained 6 May
sudden US stock market plunge or
“flash crash”.
The Securities and Exchange
Commission said the exchanges
could begin implementing the new
restore confidence among investors,
some of whom have begun to com-
plain of a lack of transparency in mar-
kets.
The rules will require the
exchanges to pause trading in S&P
500 stocks across US equities markets
if the price moves 10 per cent or more
in a five-minute period. Some
investors believe the measures are a
necessary first step while others ques-
Regulators are still looking for
answers to the 6 May crash, which
exposed flaws in the electronic US
marketplace and rattled investors.
The Dow Jones industrial average fell
some 700 points in minutes before
sharply rebounding. Too much frag-
mentation, too little liquidity, and
high frequency trading have emerged
as factors in the fall, but regulators
say they may not find a single cause.

The FSA’s Hector Sants, left, and Adair Lord Turner PICTURE: REUTERS, PHOTSHOT

FSA exec pay

jumps along
with fee bill
than it received in the 2008/9 finan-
▲

REGULATION
BY VICTORIA BATES
EXECUTIVES at the Financial Services
Authority came under fire from the
City yesterday after seeing their pay
packets swell despite a rocketing fee
bill for regulated firms.
Outgoing chief executive Hector
Sants was paid £742,011 for 2009/10,
up 19 per cent on last year. £500,000
of that was his basic salary and
£134,011 came in the form of bene-
fits, though he diffused some of the
tension by donating his £108,000 per-
formance-related bonus to charity.
Chairman Lord Turner is not eligi-
ble for a bonus but took home
£482,442 in salary and benefits –
almost twice as much as the £246,546
he received in the prior year.
News of the pay deals came as the
FSA revealed that it had pocketed
£435.5m in fees from regulated firms
over the past year – over a third more
cial year.
The increase acted like a red rag to
City firms, particularly smaller inde-
pendent operators struggling to pay
the inflated fees. The boss of one bou-
tique corporate finance adviser told
City A.M. the fees were “out of control”.
However, the FSA will this year
introduce a new fee structure which
it claims will reduce fees for over 60
per cent of firms.
The FSA’s 3,150 full-time staff
shared a bonus pool of £22m, equiva-
lent to 13.8 per cent of the total salary
bill of £159.4m. Including staff costs,
the regulator spent £391.7m on ongo-
ing regulatory activities over the year,
during which it introduced a new
hard-line approach to industry mal-
practice.
In total, the FSA imposed 46 fines
with a total value of £33.6m, pub-
lished 56 prohibitions and convicted
three individuals of insider dealing.

NEWS | IN BRIEF
BA warns of a move to Madrid
British Airways has threatened to
expand in Madrid instead of Heathrow
once it merges with Spanish flagship car-
rier Iberia. Willie Walsh told the
Financial Times that “growth is not going
to go away”. The government confirmed
in May it would not allow new runways
at several UK airports.
O2 changes mobile surfing costs
Mobile phone operator O2 said yesterday
it is putting a stop to unlimited mobile
internet browsing. Its “all you can eat”
data plan will be replaced by data cap
extendable by purchasing a top-up. The
company said 97 per cent of smartphone
users would not need to buy additional
data allowances.

Brit Ins rejects takeover offer L&G to start City development

Brit Insurance said yesterday it had
rejected a takeover bid from a private
equity group. The Lloyd’s of London insur-
er, which is the principal sponsor of the
England cricket team, said the unsolicited
offer significantly undervalues the firm.
Legal & General is set to begin a long-
awaited development at Bucklersbury
House. The fund manager will today
announce plans to start demolition to
make way for an office complex and a
new ticket hall at Bank station.
 4 Focus on BP CITYA.M. 11 JUNE 2010

Growing calls
for Cameron
to support BP
BP IN CRISIS
BY DAVID CROW
THERE were growing calls for David
Cameron to throw his weight behind
troubled oil major BP last night, but
the Prime Minister appeared to side
with the American government.
London mayor Boris Johnson broke
ranks to hit out at “the anti British
rhetoric… permeating from America”
and said the matter was of “great con-
cern” because of the “huge exposure
of British pension funds” to BP.
Asked if he thought Cameron
should intervene in the escalating war
of words, he replied: “A national com-
pany is being repeatedly beaten down
The mayor’s spokesman told City
A.M.: “This in an environmental catas-
trophe. BP has lessons to learn and of
course it’s right to criticise it, but let’s
not demonise an important Anglo
American firm.”
Downing Street said Cameron
would raise the issue with Barack
Obama in a telephone call at the week-
end. One official said the Prime
Minister would have contacted the
President sooner were he not visiting
troops in Afghanistan.
Obama, whose approval ratings
have plummeted from 60 per cent last
year to around 48 per cent, is trying to
deflect criticism of the government’s Oily debris is washing up on Louisiana’s beaches as crude continues to affect the local ecosystem Picture: GETTY
response to the spill by targeting BP.
In recent days he has said he would described the oil major’s actions as ment’s frustration.” wealth and technology” had been

@
over the airwaves.” have fired BP boss Tony Hayward, and potentially criminal. Transocean and
Halliburton, American firms that have
been implicated in the spill, have gone
virtually unmentioned.
But Cameron appeared to resist calls
And foreign secretary William
Hague dismissed suggestions BP was
the target of anti-British rhetoric, effec-
tively contradicting the mayor’s com-
ments.
“utterly unable to deal with the disas-
trous spill”.
He added: “So what is more natural
than a crude, bigoted, xenophobic dis-
play of partisan political Presidential

Locates
for a robust national defence of BP, say-
ing he sympathised with the
American government’s “frustration”.
“This is an environmental catastro-
phe. BP needs to do everything it can
“No-one has used an anti-British
tone in anything I have detected. The
important thing here is dealing with
the problem. I think that is more
important than any rhetoric that any
petulance against a multinational
company?”
Even Labour MP Tom Watson called
on Cameron to publicly support BP.
“They are engulfed in a crisis now... it’s

mates! to deal with the situation and the UK

government stands ready to help. I
completely understand the US govern-
of us may indulge in,” Hague said.
Veteran Tory politician Lord Tebbit
said the “whole might of American
just not appropriate that the govern-
ment takes a laissez faire approach to
their plight,” he said.

@
Iain Conn, BP’s refining and market-
ing chief and current clean-up boss Bob
Dudley are two names being touted by
analysts as possible successors to
Hayward.
Insiders have said that Conn, who
has spent his entire career with BP, is
now in the right place at the right time
to take the reins. Conn’s work in ramp-
ROBERT DUDLEY IAIN CONN ing up BP’s safety procedures in the
nüvi 1690 tops Which? post-Texas City disaster means that his
EXECUTIVE CHIEF EXEC
sat nav test June 2010
of Illinois, he widely viewed as an
expert in the field.
But people close to the situation
argue that Dudley’s latest appointment
running the oil spill clean-up works
against him as it means he has no role
in making strategic corporate deci-
sions.
While the position has not yet offi-
cially opened up, pressure for
Hayward’s resignation is mouting amid

@
DIRECTOR REFINING AND
Sat
Nav June 2010
MARKETING
SPECULATION over whether BP chief
executive Tony Hayward will be ousted
from his role at the top of the embat-
tled oil major has led to intense specu-
lation of who might be suited to take
over at the helm of the oil giant.
chances are high, according to analysts
who say this experience is exactly what
BP needs to cope with the aftermath of
the disaster.
But Conn faces strong competition
from Dudley, who is famed for having
run BP’s Russian arm TNK-BP. US-born
and educated, and with a chemical
engineering degree from the University
a series of insensitive gaffes including
his initial description of the oil spill as
“tiny” and his comment that he “want-
ed to get his life back”, when 11 people
had died in the rig disaster on 20 April.
The market suggests that although it
may be unfair to force Hayward to
resign, it could be the only thing to save
BP.

Pressue to tighten pension

Follow friends, fancy meeting up,
navigate to join them.
fund rules after Gulf disaster
said pension funds need to take envi- tional investors is that this disastrous
▲

nüvi® 1690 sat nav with Ciao!™ Friend PENSIONS

™
BY EMMA SADOWSKI
Finder and other nüLink! live services
FREE for 1 YEAR* UK PENSION fund holders keeping a
garmin.co.uk/1690 close eye on the Gulf of Mexico disas-
ter are urging the government to
tighten regulation in a bid to protect
against exposure to financial uncer-
tainty similar to BP.
A trio of MPs, alongside pension
fund charity FairPensions, are cam-
paigning for the coalition govern-
*see website for details
www.cityam.com ment to set up protection regulation
against environmental and social
AVAILABLE FROM: MORE NEWS risk.
HALFORDS / AMAZON / CURRYS / JOHN LEWIS / BEST BUY ONLINE MPs Zac Goldsmith, Martin
Horwood and Caroline Lucas have
ronmental risks much more seriously
and that a regulatory framework is
needed to support that.
It is estimated that over 18m
Britons could be exposed to BP’s
uncertain financial situation because
they are either beneficiaries from
pension funds that hold BP shares or
are shareholders themselves.
Every £1 in £7 of dividends from
FTSE 100 companies go to UK pension
funds that have shares in BP, it is
understood.
Joanne Segars, National
Association of Pension Funds chief
executive, said: “The worry for institu-
oil leak will hit BP’s prospects for
longer-term growth and future divi-
dends.”
Worries that BP’s plummeting
share price, alongside legal threats
from the US to hold off paying out
the dividend could have a severe
knock on effect are held among mil-
lions of Britons.
The group’s shares hit a new low
yesterday, sinking below 1997 levels
to 345.15p before recovering to 366p.
Further speculation that BP could
be vulnerable to a takeover climbed
after Standard Chartered noted that
PetroChina could be a possible suitor.
CITYA.M. 11 JUNE 2010 Focus on BP 5

BP’s a great company. I know. I worked there

ing place. If someone struggled with
his or her work there was training on
hand to help. Employees weren’t just
cast out onto the pavement – they
were given a chance to get better.
Salaries are good, and there have been
generations of people who have been
able to improve their prospects as a
AN INSIDER’S VIEW result of a career at BP. If the company
were to cease to exist as a result of this
KATHLEEN BROOKS crisis it would leave an irreparable
hole in the UK and US (where 35,000
companies.
When you look at the evidence of
the last six weeks, it’s hard not to
come to the conclusion that BP has
acted admirably – give or take a cou-
ple of unfortunately phrased com-
ments from chief executive Tony
Hayward and its hapless press chief
Andrew Gowers – ever since the tragic
20 April explosion on the Deepwater
Horizon oil well. As the blog In
Defence of Liberty points out, BP exec-
the coastline so that fishermen and
people whose livelihoods depend on
the Gulf can make claims for financial
assistance. BP has also committed
$500m to research into deepwater
drilling in an effort to avoid another
disaster of this size.
This is the BP that I recognise.
It is understandable that President
Obama is angry about the environ-
mental catastrophe in the Gulf of
Mexico.
the latest data from the Energy
Information Association (EIA) the US
remains the world’s largest consumer
of oil by a hefty margin. In 2008 the
US consumed a whopping 19.5m bar-
rels per day of the stuff. China, in sec-
ond place, consumed less than half
that at 7.8m barrels per day.
The fact that Americans have one of
the highest standards of living in the
world is due to companies like BP that
take on the exceptionally risky task of

T
rying to defend BP during the
last six weeks has been a lonely
and isolating experience. As a
former employee I have been
accused of being biased or emotional-
ly attached. But having seen posts on
US websites demanding all BP employ-
ees be thrown into jail, it’s hard not to
take the world’s hatred of my ex-
employer personally – and, given my
positive experience there, to see such
condemnation as grossly unfair.
In my experience, BP was a nurtur-
people are employed by BP) corporate
life.
At last, there is a growing chorus of
discontent at the way BP is being treat-
ed by the US authorities. Yesterday,
RSA chairman John Napier fired off
an angry open letter to President
Obama accusing him of double stan-
dards over BP and it is not before time.
JP Morgan analyst Fred Lucas has
already urged the UK government to
stand up to the US and defend one of
the UK’s largest and most respectable
utives didn’t hide or evade responsibil-
ity for the oil spill. Instead, Hayward
accepted that BP was ultimately
responsible and moved to the US to
personally oversee operations in the
Gulf and liaise with US authorities.
Since the explosion the company has
held regular news conferences and
has been transparent about the size of
the spill and its effects on the environ-
ment.
Most likely against the advice from
its lawyers, BP has set up centres along
However, suggesting that Tony
Hayward requires an ass kicking is a
step too far – especially when you see
the lengths the BP chief has already
taken, and the fact that his family is
receiving threatening mail and phone
calls at their home and are now under
police protection.
Obama’s ire would be better direct-
ed at US citizens. The very fact that BP
was even drilling in the Gulf of
Mexico was due to America’s insa-
tiable demand for oil. According to
searching, extracting and refining
hydrocarbons suitable for use in mod-
ern life.
It’s unlikely that Americans will
stop using air conditioners en masse
this summer or get rid of their cars as
a result of this oil spill. But the fact
remains that unless the US dramati-
cally reduces its demand for oil, then
companies will continue to search for
it in hard to reach places and the
prospect of a tragic accident like this
one occurring again will remain.

ANALYSIS | BP ANALYSIS l BP’s recovery plan

Oil skimmed off of surface
700
383,000 barrels

600
Oil siphoned
to surface Second
First relief well
500 73,300 barrels
relief well 8,576 feet
ADR ($) 13,978 feet
400
BP share price (pence)
300
Apr 2010 May 2010 June 2010

We are changing our tactics

Online trades for £4.42

As the world turns its attention to a summer of football in South Africa, we have
decided to change our tactics and lower our trading commission to just £4.42*, from
when England’s participation in the tournament starts on 12 June 2010, until they win
the trophy or exit the competition.

You will be able to trade equities, Exchange Traded Funds (ETFs), Exchange Traded
Commodities (ETCs), Investment Trusts, REITs, covered warrants, turbos and structured
products for just £4.42 per online trade. But remember that you cannot win them all
and the value of your investments can fall as well as rise. Your capital is at risk.

Whatever the formation, at this price you will be hoping for extra time!

Get in on the action and open an account at

www.stockbrokers.barclays.co.uk/offer
or call us on 0845 300 4442** and play to the final whistle.

*This promotion is valid for all online trades in stocks and shares and other appropriate investment instruments listed and trading on the London Stock Exchange or other recognised exchanges where we may execute your instruction, made available to trade by Barclays Stockbrokers
and placed within a MarketMaster®, Investment ISA or PensionMaster (SIPP) (subject to SIPP investment restrictions as set by the SIPP provider). Trades will be charged at the commission rate of £4.42 for as long as England remain in the tournament in South Africa between 12
June 2010 and 11 July 2010. When England are eliminated, online trading commissions will revert to standard pricing with immediate effect, or at the appropriate date Barclays Stockbrokers choose, that date being no later than 11 July 2010. If England win the tournament, this offer
will end on 11 July 2010. Limit orders, stop orders and trailing stop orders that are executed within the duration of the promotion will be charged at the promotional rate. The offer is available to new and existing clients and applies to each individual account opened or held. Normal
stamp duty, PTM Levy, account admin fees and standard terms and conditions relating to your Barclays Stockbrokers account will apply. Please refer to the promotion’s full terms and conditions for details. The price and value of investments and their income fluctuates: you may get
back less than the amount you invested. How an investment performed in the past is not a guide to future performance.
**Lines are open from 7.30am to 7.30pm Monday to Thursday and from 7.30am to 6pm Friday, excluding bank holidays. Calls to 0845 numbers from a BT residential line will cost no more than 4p per minute, plus 9.9p call set-up fee (correct as at April 2010). The price on non-BT
phones may be different; please check with your service provider. You can only use these numbers if you are calling from the UK; if calling from outside the UK, please call +44 141 352 3909. Calls may be recorded to monitor the quality of our service, to check instructions and for
security purposes.
 6 Focus on Sovereign Debt Crisis
Business confidence hit
by Eurozone health fears
▲
ECONOMY
CONCERNS over the health of the
Eurozone have dragged business con-
fidence down from April’s two-year
high, according to a snapshot from
Lloyds TSB Corporate Markets.
The proportion of boards expecting
an upturn in trading over the coming
year fell 11 per cent to just under a
third, the bank said in a monthly
update. Managers’ faith in the wider
economy weakened, with the propor-
tion of firms feeling more upbeat
Deutsche boss Josef
Ackermann said
overregulation by the
G20 could eat into
worldwide growth
Picture:
REUTERS
than three months ago also slipping
11 per cent to 36 per cent.
This suggests sentiment has been
hit by market volatility caused by
doubts over the ability of countries
such as Greece and Portugal to
finance themselves, despite €750bn
(£618bn) of EU support.
Trevor Williams, chief economist at
Lloyds TSB Corporate Markets, said:
“Business optimism feeds off the
wider economy. Over the past few
months, confidence has started to
claw its way back to normality.
Banks: Hasty
reform will
cost 10m jobs
▲
REGULATION
BY HARRY BANKS
REGULATORY reforms proposed for
banks around the globe could cut
three per cent off economic growth
over the next five years in the United
States, Eurozone and Japan alone,
and cost almost 10m jobs, top banks
said yesterday.
The Institute of International
Finance (IIF), a bank lobby group rep-
resenting more than 400 firms, said a
need to hold more capital, pay more
taxes and other possible reforms
could hit economic growth hard.
Gross domestic product in the
three regions would fall by 0.6 per-
centage points annually between
2011 and 2015 and by an annual aver-
age of 0.3 percentage points in the 10
years to 2020, the IIF said in a report
released at a meeting in Vienna.
“The IIF calls on the participants of
the forthcoming G20 summit and the
international regulatory authorities
to consider carefully the content, tim-
ing and calibration of proposed bank
regulatory reforms, mindful of the
potential drag on economic activity
that could result,” said Josef
Ackermann, chief executive of
Seven Spanish Hungary’s debt
banks to merge sale is shunned
▲
BANKING
SPANISH savings bank Caja Madrid
and rival Bancaja are in talks which
could lead to the creation of the coun-
try’s largest savings bank and be the
latest move in a sectoral restructuring
the government is keen to see.
Caja Madrid and Bancaja said they
were discussing joining the System
for Institutional Protection (SIP)
which Caja Madrid is already involved
in with five other savings banks, mak-
ing a total of seven.
Bancaja will contribute €110bn
(£90.6bn ) in assets to the SIP which
will create a new bank with assets
close to €335bn.
CITYA.M. 11 JUNE 2010
Deutsche Bank and IIF chairman.
The economic impact would be
hardest in the Eurozone, where GDP
is projected to be 4.3 per cent lower by
2015 if reforms are implemented,
compared to a base case forecast. US
GDP would be curtailed by 2.6 per
cent and in Japan would be restricted
by 1.9 per cent, the IIF said.
Some 9.7m fewer jobs could be lost
due to the reforms over the next five
years, the report warned.
Banks face new taxes and require-
ments to hold more and better quali-
ty capital and liquidity following the
worst financial crisis since the 1930s.
Banks in the three key areas would
need to raise $700bn (£477bn) of com-
mon equity and issue $5.4 trillion of
long-term wholesale debt in the next
five years to meet the expected new
capital and liquidity requirements,
the IIF said.
Banks say they recognise change is
needed but are resisting some propos-
als. They are concerned about the
cumulative impact of a range of
measures and want more time to
implement change. “The point of this
report is not to argue against regula-
tory reform,” said Peter Sands of
Standard Chartered, an IIF director.
HUNGARY
HUNGARY cut its 12-month bill auc-
tion offer yesterday and sold the bills
at higher yields than two weeks ago
as markets were still uncertain and
awaiting proof the government’s eco-
nomic plan could be implemented.
The bills were sold at an average
yield of 5.35 per cent, compared with
a yield of 5.17 per cent two weeks ago,
before the market turmoil last week
caused by the government’s mixed
messages about the state of
Hungary’s public finances. These
comments spooked markets, trigger-
ing concerns that Hungary may be
close to a Greek-style debt crisis.
CITYA.M. 11 JUNE 2010 News 7

European banks face second

quarter chill due to debt woes
three months to the end of June after lunch, said: “The message was very

▲
BANKING
BY OLIVER SHAH
EUROPEAN banks including UBS,
Deutsche Bank and Credit Suisse face
Banking industry rep- a sharp slowdown in the second quar-
resentative Angela ter on the back of regional sovereign
Knight insisted the UK debt fears, analysts believe.
had an open and com- UBS chief financial officer John
petitive market Cryan yesterday told an informal
lunch meeting that the Swiss institu-
Picture: PA tion would post weaker results for the
Eurozone volatility impacted on
demand for initial public offerings
(IPOs) and M&A advice.
Société Générale cut its earnings
target for UBS by 10 per cent this year
and eight per cent in 2011 after the
discussion. SocGen analysts also low-
ered their share price forecast from
SwFr16.8 (£10) to SwFr15.6.
Dirk Becker of Kepler Capital
Markets, who attended the UBS
clear that we should be looking at a
slowdown. They had a very good first
quarter and that should not be
extrapolated out for the year.”
It also emerged yesterday that UBS
is facing a forgery probe at its
Luxembourg operation over the way
it handled funds connected with US
fraudster Bernard Madoff.
Luxembourg police are conducting a
preliminary investigation.

City investors
back inquiry
on bank fees
▲

REGULATION keen for the competition watchdog to

BY OLIVER SHAH
INVESTORS applauded the fresh
inquiry into investment banks’ fees
for advising on and underwriting
equity issues announced by the Office
of Fair Trading yesterday.
Following worries over the spi-
ralling cost of rights issues for compa-
nies, the OFT said it would investigate
the level of competition in capital
markets services and whether corpo-
rates were getting value for money.
According to the Association of
British Insurers, the average fee levied
by banks for running a rights issue
has risen from two per cent a decade
ago to around 3.5 per cent.
Doug Ferrans of the Institutional
Shareholders’ Committee, which is
holding its own investigation into
rights issue fees, welcomed the OFT
probe. He said: “We would have
expected fees and discounts to come
down [since 2008], given the more
normal conditions in financial mar-
kets, and that hasn’t happened.”
Fund managers were particularly
look at the practice of sub-underwrit-
ing, whereby investment banks trans-
fer risk to City investors by asking
them to buy unwanted rights. While
total rights issue fees have jumped in
recent years, the slice handed to fund
managers for sub-underwriting has
risen more modestly from 1.25 per
cent to 1.75 per cent.
Tim Steer of Artemis said an exam-
ination of the top banks’ “cosy cartel”
was overdue. “They never do [cash call
underwriting] on their own books.
The risk is carried by the funds.”
Andy Brough of Schroders said it Exclusive football content on Yahoo!
was valid to criticise equity capital
markets players, but questioned
From a man who knows a bit about football.
whether a solution would be forth-
coming. “We’d like to have it done as
quickly as possible, but unless some-
one else is going to coordinate the
underwriting I don’t see how it
works,” he said.
Angela Knight, head of the British
Bankers’ Association, responded:
“The UK is an open market and it’s a
competitive market. The banks will
continue to cooperate with the OFT.”

DO WE NEED TO LOOK AT THE FEES BANKS

CHARGE ON RIGHTS ISSUES? Interviews by Oliver Shah

NEIL SHAH | EDISON INVESTMENT RESEARCH

“ It’s part of a much wider political play on targeting and attack-

ing banks, and this is just one more area. OFT investigations are not
undertaken lightly, though, and if you actually look at underwriting fees

”
there’s not much variability. I don’t see an enormously competitive mar-
ket there, so there may be grounds for this.

TIM STEER | DAVID BUIK |

ARTEMIS BGC PARTNERS

“ “
It’s long over- The OFT’s probe
due. To be perfectly honest you don’t need to into investment banks is very unwelcome. No
have the large banks underwriting issues – doubt the SEC and Congress’ investigation
underwriting is a misnomer in their case, into Goldman’s activities in CDOs triggered
because they don’t actually do any under- this investigation. I am a free enterprise man Make Yahoo! your home for football.

” ”
writing. Fund managers do it all. The days – ‘charge what the traffic will bear’. If a cor-
when investment banks would porate client feels it is being ripped yahoo.co.uk
carry the risk are long gone. off, well – move on!
 June is Mégane Month at Renault.
There’s never been a better time to buy a new Mégane.

Mégane Hatch Expression 1.6 100

Mégane Month price £11,995*
Saving £3,660†

Mégane Coupé I-Music 1.6 110

Mégane Month price £14,595*
Saving £2,860†

Offers end 30th June.

With air conditioning, Keycard and 6 airbags across the range. The I-Music range
also includes MP3 connectivity, Bluetooth connectivity and rear parking sensors.

Visit offers.renault.co.uk

The Official Fuel Consumption Figures in MPG (l/100km) for the Mégane Range are:
Urban 27.7-55.4 (10.2-5.1), Extra Urban 46.3-70.6 (6.1-4.0), Combined 37.2-62.8 (7.6-4.5).
The official CO2 Emission Figures are 178-114g/km. Prices includes delivery to dealer, number plates, 17.5% VAT, 12 months’
Government road fund licence and £55 first registration fee. *Prices based on a customer saving of £3,660 † on the MRRP of £15,655 for the Mégane Hatch Expression 1.6 100 and £2,860 † on the
MRRP of £17,455 for the Mégane Coupé I-Music 1.6 110. Offers apply to vehicles ordered by 30 June 2010 and registered by 30 September at participating dealers only. Of the equipment featured,
air conditioning, ABS brakes and CD player relate to the Mégane Hatch Expression, while rear parking sensors, MP3 connectivity and Bluetooth connectivity relate to the Mégane Coupé I-Music.
This advertisement is provided by Renault UK, The Rivers Office Park, Denham Way, Maple Cross, Herts WD3 9YS. All figures correct at time of going to press.
 CITYA.M. 11 JUNE 2010 Transport News 9

Ash and strikes cause BAA ANALYSIS l Passenger losses during May

Heathrow Reduction in
expected traffic

- 6%
passenger traffic to fall 4.5pc Stansted
Spain’s Ferrovial, said yesterday that BAA estimates that traffic through - 2%
▲

TRANSPORT
BY EMMA SADOWSKI
BRITISH AIRPORT AUTHORITY (BAA),
owner of Heathrow and Stansted air-
ports, reported floundering May pas-
senger numbers yesterday as the
industrial action launched by British
Airways cabin crew and the Iceland
volcano disruptions continued to
take their toll.
The airports body, owned by
8.6m passengers traveled through its
six airports, marking a 4.5 per cent
drop on the same period last year.
Heathrow, Glasgow and Edinburgh
were hit hardest by the volcano and
strikes, each reporting a six per cent
drop in passenger traffic as a result.
Heathrow lost 320,000 passengers,
while Glasgow and Edinburgh lost
35,000 and 45,000 customers respec-
tively.
Heathrow would have increased by
2.8 per cent if it weren’t for the May
disruptions and the group as a whole BA UK Total
would have seen a marginal 0.4 per
cent rise in passengers.
Including cargo traffic, BAA said
air transport movements dropped by
- 5%
4.8 per cent.
Cargo tonnage was up by 33.7 per = 10 (000’s) Passengers
cent across BAA’s airports, with
Heathrow up by 36.1 per cent.

BA chief exec
turns down
£334k bonus
the global economy in 60 years,” said
▲

AVIATION
BY EMMA SADOWSKI
WILLIE WALSH, the British Airways
(BA) chief executive, was the only sen-
ior level member of the airline to
turn down a bonus last year, as the
airline faced increasing financial loss-
es and industrial action launched by
cabin crew.
Walsh, who was in line to receive a
£334,000 bonus awarded in shares,
declined to accept it after he felt it
would be “inappropriate” in light of
circumstances prevailing at the time.
Information contained within the
airline’s 2009-10 annual report also
showed that Walsh’s salary has been
frozen at £735,000 since 2008.
He took a pay cut last year after
waiving his July pay because of the
airline’s dire financial state. He was
paid £674,000.
However, chief financial officer,
Keith Williams, took home £582,000
last year, including a £167,000 bonus.
“The financial performance of our
business is linked to the general
strength of the economies in the UK
and across the world. We have had to
cope with the deepest downturn in
Williams.
BA’s revenue fell by 11 per cent last
year to £7.9bn, as passenger income
dropped by £856m or 10.9 per cent.
Pre-tax losses for the airline passed
£500m last year as a result of growing
pension costs and interest.
As BA struggles to return to prof-
itability, the airline has frozen staff
pay for a third year in a row at the
same time recommending that it
holds off making a dividend payment
to shareholders.
BA took an estimated £150m hit as
a result of the 15-day industrial action
launched by cabin crew through May
and June. The airline is now facing
another potential set of crippling
strikes during the July travel period as
Unite prepares to ballot staff again.
The dispute is over pay, working con-
ditions and staff perks.
Chief financial officer
Keith Williams said BA
had to cope with the
deepest downturn in
the last 60 years

Victoria tube station to benefit

from £700m facelift by 2016
The construction of the new sta-
▲

TRANSPORT
VICTORIA tube station is set to receive
a £700m facelift, giving the congested
station a new ticket hall, escalators
and entrances.
Transport for London (TfL) expects
to start the five-year transformation
next year and said that it doesn’t
expect any disruptions to the hun-
dreds of thousands of passengers trav-
elling through the station every day.
Mayor of London Boris Johnson
said: “It will make journeys easier for
the hundreds of thousands of passen-
gers that use the station and is exact-
ly the type of investment I am
determined to protect in the capital.”
tion will take place over two phases in
a bid to avoid disruptions and large
costs.
TfL said the first phase will see the
development of the new ticket hall
under Bresson Place, which is sched-
uled to start next year.
The second phase will see the addi-
tion of new lifts, escalators and an
upgrade to the existing above ground
ticket hall just outside Victoria train
station.
“Upgrading Victoria Underground
station is a key vital part of improving
the Tube network,” said London
Underground’s strategy and commer-
cial director, Richard Parry.
 The Capitalist
10
FSA’S SANTS
MAKES LAST
STAND FOR
REGULATOR
THERE’S nothing like going out fighting,
is there? Yesterday marked the publication
of FSA chief executive Hector Sants’ (right)
last annual report at the helm of the regu-
lator, which is under siege from politicians
currently mulling whether or not it will
have a future.
Sants has never exactly made a secret of
his feelings towards the Conservatives’
long-held plans to hand over the supervi-
sion of banking risk to the Bank of
England, unfailingly sticking up for the
current system of integrated risk assess-
ment. And yesterday, Hants stepped up to
the plate one more time to defend his
organisation.
“I believe the FSA is now a completely
different regulator both in respect of its
philosophy and its ability to deliver that
philosophy,” he insisted in the closing
remarks of his statement. “It has proved to
be an organisation capable of learning
and adapting to an uncertain world,
demonstrating the characteristics that are
essential to a successful regulator…”
One thing’s for sure: with chancellor
George Osborne sharpening up his knife
to follow up on that pledge – and even
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
possibly scrap the FSA entirely – later this
month, it’ll certainly need them.
SCAM ARTIST
It appears it’s not only the odd short seller
looking to profit from the downfall of BP –
scam artists are at it, too.
Fund manager Bronte Capital posted a
hilarious Nigerian effort on its blog earli-
er this week, purporting to be from one
“Dudley Caruthers Esq” (these spammers
have clearly upped their game).
Said “barrister” claims to be the private
solicitor of beleaguered BP chief Tony
Hayward, whose wealth he claims is “at
great risk of being wrongfully confiscated
by US authorities acting extra-territorially
under special powers authorised by the
US government and with the secret con-
sent of a supine UK political and legal
establishment”. (Gee, we knew President
Obama wasn’t exactly Hayward’s best
friend, but isn’t that going a little far?)
On offer are £80m of stock options cur-
rently belonging to Hayward, apparently –
though in order to see the dosh, you’ve
first got to stump up a £20m “advisory
fee”…
MASTER OF SPIN
Gordon Brown’s former spokesman Simon
Lewis (top right) received a stern ticking-
off yesterday for daring to forecast that
England would be knocked out of the
World Cup in the last 16.
Lewis made the prediction at an
Editorial Intelligence breakfast meeting
where he spoke, among other things,
about the fragility of the reputations of
politicians and businessmen like BP’s
Tony Hayward.
One member of the audience was upset
CITY EYE
CITYA.M. 11 JUNE 2010
“With chan-
cellor George
Osborne
sharpening
his knife, the
FSA’s going
to need to
have all its
wits about it”
that Lewis, now a press spokesman of UK
Trade and Industry, had not been more
patriotic, prompting embarrassed mum-
blings from Lewis claiming that, of
course, English football deserves a World
Main pic: Hector Sants Cup triumph in South Africa.
has been a vocal critic Perhaps one of the UK’s foremost spin-
of Tory plans to chop meisters – his other jobs have included
up City regulation Clarence House and looking after former
Vodafone chief executive Arun Sarin – was
Above right: Simon a bit distracted. He was heading off last
Lewis has spoken out night to Cambridge to speak at a
against England – and University debate in favour of the propos-
in defence of spin al: “Spin is essential to a healthy democra-
cy.” A daunting task indeed.
CHARITY CASE
Amid the furore over highly-paid City
executives, one man has been keeping
awfully quiet about his own mammoth
pay deal.
Nigel Savage is the chief executive of
the College of Law – and, despite the fact
that the organisation is a UK-registered
charity, legal blog RollOnFriday has
unearthed documents showing that he
paid himself a fat £440,000 last year. That,
by the way, is more than the vice chancel-
lor of any university in the UK, twice as
much as the boss of Cancer Research and
four times as much as the chief executive
of Oxfam. Time for a rethink?
CLIMBING MOUNTAINS
A plea from Richard Jeffrey, the chief
investment officer at Cazenove Capital
Management, who is taking part in a gru-
elling one-day 22 mile walk in the
Cairngorms at the end of July along with
Phoenix Equity Partners managing part-
ner Sandy Muirhead and ex-Standard Life
chief investment officer John Thomson.
Jeffrey is raising money for the Teenage
Cancer Trust, his son having developed
the aggressive cancer osteosarcoma two
years ago. Visit www.justgiving.com/cairn-
gorm-challenge to support them.
OVER 2,700 eager fun
runners packed the
streets of the City yes-
terday for the annual
6km Crisis Square
Mile Run, raising
money for the home-
less charity. This year,
the men’s race was
run by Paul
Maretelleti in 22 min-
utes 59 secs and the
ladies’ race by Crisis
volunteer Ros Ponder
in 28 minutes 10 sec-
onds.
Congratulations to
all who took part.
CITYA.M. 11 JUNE 2010 Economic News 11

UNEMPLOYMENT COULD HIT 3M AFTER CAMERON’S CUTS

UK unemployment
Interest rates kept
at record 0.5pc low
could rise close to
3m this year if the
government pushes
ahead with sweep-
ing cuts in public
spending, suggests
the latest report
from the Chartered early 1950s.

▲
Institute of
Personnel and
Development. Its
new forecast is
more than 10 per
cent higher than its
previous estimate
of 2.65m, with no
significant reduc-
tion until 2015.
Picture: REUTERS
UK ECONOMY
BY JESSICA MEAD
THE Bank of England stuck to its poli-
cy of ultra-loose interest rates yester-
day when it held the cost of
borrowing at 0.5 per cent and kept
the stock of asset purchases at
£200bn.
The 0.5 per cent rate has now been
in place for 14 months – the longest
streak of unchanged rates since the
The move was widely expected by the
City although some hawkish analysts
had called for a hike to maintain the
Bank’s inflation-targeting credibility.
However, an aggressive emergency
Budget on 22 June may persuade the
MPC to hold its fire into 2011, said
Philip Shaw, UK economist for
Investec. Eurozone trouble may also
stay the MPC’s hand, said
Commerzbank’s Peter Dixon.

ECB defends
bond-buying Are you equipped
programme for a career in
financial services?
again failed to provide a coherent pic-
▲

EUROPEAN ECONOMY
BY JESSICA MEAD
JEAN-CLAUDE TRICHET, president of
the European Central Bank (ECB), yes-
terday staunchly defended the cen-
tral bank’s decision to buy
government bonds and said the ECB
would extend its liquidity support
measures.
He said: “It’s appropriate to contin-
ue to do what we’ve decided.” The
ECB also kept interest rates at one per
cent. When asked about Governing
Council member Axel Weber’s public
criticism, he said: “There is one cur-
rency, there is one ECB, there is one
Governing Council and...there is only
one decision.”
However, he refused to give details
of the nationalities or quantities of
bonds purchased besides a weekly
total announced by the central bank.
He also gave no indication about how
long the programme would last.
The Governing Council’s statement
included a new phrase defending its
price stability mandate. While this
was intended to reassure markets,
there were concerns among econo-
mists about the ECB’s capability to
communicate policy. “Trichet yet
ture of where monetary policy is
heading. The overriding impression is
one of complacency and impotence in
Enhance your career prospects
the face of grave risks to certain mem-
ber countries,” warned Lombard
with ifs School of Finance
Street Research’s Jamie Dannhauser.
The decision to extend its longer-
part-time professional
term refinancing operation reflects
an acknowledgment of renewed qualifications.
funding tensions for banks and repre-
sents a partial reversal of its exit strat-
egy as set out in March, according to
Societe Generale’s James Nixon. There
• Professional Certificate in Banking
have already been reports of a com-
plete freeze in the inter-bank lending • Foundation Degree/Professional Diploma in
market in the Eurozone. Banking Practice and Management
The ECB also revised down its 2011
growth forecast to 1.2 per cent from
the 1.5 per cent in March. Inflation • BSc (Hons) in Banking Practice and Management
was revised up marginally to 1.6 per
cent. This suggests that the ECB envis- • MSc in Banking Practice and Management
ages a remarkably flat and lack lustre
recovery, analysts said.
ECB President Jean-
Claude Trichet said
that the ECB would
extend its liquidity
support measures

US jobless claims fall, but trade

deficit widens as exports drop
expected a drop to 448,000.
▲

WORLD ECONOMY
THE number of US workers filing
claims for jobless aid fell modestly
last week as the labour market recov-
ery struggled for momentum, while a
slip in exports in April supported
views of moderate economic growth.
The reports yesterday were the lat-
est in a series hinting the economic
recovery was losing some steam but
remained intact following the worst
downturn in seven decades.
Initial claims for state unemploy-
ment benefits dipped 3,000 to
456,000 last week, the Labor
Department said. Economists had
Meanwhile, a report from the
Commerce Department yesterday Visit our open house events to find out more
showed the US trade deficit edged up
to $40.3bn in April from $40bn from Open evening - Wednesday 16 June, 6.00pm-8.00pm
March as exports fell. Markets had
expected a gap of $41bn. The slightly Drop-in sessions - Thursday 17 June and Friday 18 June, 9.00am-5.30pm
wider trade deficit reflected a 0.7 per
cent drop in exports in April after a
surge in March. Imports dipped 0.4 Please visit www.ifslearning.ac.uk/cityam to register.
per cent. The politically sensitive
trade gap with China widened 14.3
per cent in April to $19.3bn.
Analysts said the exports fall was
unrelated to the debt crisis in Europe,
The ifs School of Finance is incorporated by Royal Charter and is the only specialist financial education body with the power to award its own taught degrees.
and predicted limited impact from
Eurozone austerity measures.
 12 News
Jon Moulton’s Better Capital
will raise £67m in LSE listing
▲
PRIVATE EQUITY
BY STEVE DINNEEN
JON Moulton’s Better Capital will
raise £67m as it steps up to the main
London Stock Exchange market, just
six months after listing on Aim.
The group hopes to attract more
investors attracted by the stricter reg-
ulatory stipulations in place for main
market-listed firms.
It will issue 64.3m new shares at
Jon Moulton says new deals are in the pipeline Picture: REX 105p each – a discount of five per cent
on the stock’s closing price on
Wednesday.
The former head of Alchemy
Partners has already bought the icon-
ic Reader’s Digest out of administra-
tion and acquired aerospace
manufacturer Gardner for £20m.
Moulton told City A.M.: “We always
said we would list on the main mar-
ket, which is required by some insti-
tutional investors. We have also had
interest from retail investors.
He added: “The money raised in
Global wealth
rises but fund
houses suffer
▲
FUND MANAGEMENT
BY HARRY BANKS
THE combined wealth of households
around the world rose 12 per cent last
year and nearly surpassed the 2007
high-water mark, yet money man-
agers faced lower revenue and shrink-
ing profit margins, according to an
industry study released yesterday.
Global assets under management
rose to $111.5 trillion (£75.9 trillion),
just short of the 2007 year-end peak,
Boston Consulting Group said in its
annual study of the wealth manage-
ment business. But while client assets
have almost recovered from the 2008
financial crisis, client trust in their
advisers has not.
North America led the world with
a $4.6 trillion increase in total assets,
up 15 per cent to $35.1 trillion, while
Asia-Pacific countries posted the
strongest recovery with a 22 per cent
jump to $3.1 trillion.
Europe remained the wealthiest
corner of the world, weighing in at
$37.1 trillion of assets.
Indian duo mull Brewin
Dolphin as takeover target
▲
FINANCIAL SERVICES
STOCKBROKER Brewin Dolphin yes-
terday found itself the subject of
intense speculation around a poten-
tial takeover offer from Indian billion-
aires the Hinduja Brothers.
The Hinduja Group refused to com-
ment on the rumours, though it is
known to have cash at hand for acqui-
sitions in Europe. Just last month, the
group agreed a €1.35bn (£1.11bn) deal
to buy KBL European Private Bankers
from its parent KBC.
Analysts yesterday jumped on the
news, with Numis Securities predict-
ing that any deal would have to be on
a friendly basis to be successful.
CITYA.M. 11 JUNE 2010
the listing will be spent on deals –
hopefully very good ones. We are rea-
sonably comfortable with the deals
we have made so far.”
Moulton raised £142m when he
floated Better Capital on Aim, just
weeks after his shock departure from
Alchemy last September.
Moulton recently joined the
ranks of business leaders who have
thrown their weight behind our
campaign against a rise in capital
gains tax.
Boston Consulting noted that,
among world regions, only the
United States and Japan had not
regained 2007 levels. The collapse of
debt markets, followed by a deep
recession, led to a 10 per cent plunge
in global wealth.
Looking ahead, BCG projects global
wealth will increase at an average
annual rate of six per cent this year
through 2014, faster than was report-
ed in the five year period ending last
year.
Much of that growth will be driven
by the Asia Pacific region where,
excluding Japan, investable assets will
increase at twice the global rate.
“There’s no doubt that wealth will
continue to grow faster in emerging
markets, fuelled by strong economic
growth,” said Tjun Tang, a BCG part-
ner and a co-author of the report.
Offshoring wealth by the rich also
grew nine per cent last year, with $7.4
trillion in assets placed in countries
where the investor has no legal resi-
dence. Switzerland remains the
largest offshore banking centre.
Numis suggested that the mini-
mum price Brewin’s management
would accept would be 260p a share,
valuing the company at around
£600m. However, such a price would
mean the firm would be trading at
close to 20 times earnings, a much
higher valuation than its peers.
“Accounting changes/issues, unex-
pected dilutive placing, unexpected
increases to cost base and growing dif-
ferences between operating profit and
operating cash flows make the compa-
ny’s earnings lower quality compared
to many in our view,” Numis added.
Brewin Dolphin, which closed up
0.4 per cent at 120p, said it is not
aware of interest from the Hindujas.
CITYA.M. 11 JUNE 2010
Halfords eyes
new deals as
profit surges
CONSUMER
▲
BY JOHN DUNNE
HALFORDS is plotting more acquisi-
tions with a hit list of up to a dozen
targets.
The bicycle and car parts company
said it was hungry for expansion as it
posted a 27 per cent jump in its annu-
al profit yesterday.
Halfords, which in February
bought car servicing firm Nationwide
Autocentres for £73m, made a pre-tax
profit of £117m for the year to 2 April
– up from £92.4m in 2008-09.
Revenue increased by 4.6 per cent
to £832m, with sales at stores open
over a year up 0.7 per cent. Sales of
children’s bikes helped to fuel the
rise.
Chief executive David Wild said:
“We normally keep a list of about ten
PZ Cussons is
confident of its
full-year results
▲
CONSUMER
SOAP and shampoo maker PZ
Cussons said it was on track to meet
full-year forecasts, even though trad-
ing conditions in the UK remain
tough.
The firm, owner of the Imperial
Leather, Carex and original Source
brands, said yesterday its results for
the year to 31 May “are anticipated to
be in line with expectations.”
PZ Cussons said new products had
driven strong growth in the UK, but
warned of a “worsening consumer
outlook”.
or a dozen targets.
“Since we drew the list up 15-16
months ago some of them have been
sold, others the owners don’t want to
sell. So we just keep a very open mind
and review our opportunities against
the strategy.”
Wild said the firm was well placed
to increase earnings.
ANALYSIS l Halfords
540 p
530.00
10 Jun
520
500
480
460
15 Mar 6 Apr 26 Apr 17 May
Home Retail is hit No World Cup magic
by slump at Argos
RETAIL
HOME Retail Group posted a bigger-
than-expected drop in first-quarter
sales at its Argos stores, hit by a drop
in demand for video games and televi-
sions.
The group, which also runs
Homebase, said economic conditions
were challenging and uncertain but
that it was still aiming to deliver flat
profits over the full financial year, in
line with its previous guidance and
helped by cost cutting.
Sales at Argos stores open at least a
year dropped 8.1 per cent in the 13
Consumer News
HOW ITS FULL YEAR RESULTS STACK UP
£73m
the price paid for
Nationwide
£832m
annual revenue
Autocentres
£117m
27%
pre-tax annual
jump in profit to 2 April
annual profit
7 Jun
WITH the start of the World Cup just
days away, fans have been splashing
out on flat-screen TVs. It’s strange
then that the bigger-than-expected
slump in Argos revenues was driven
by weak TV sales. If the catalogue
weeks to 29 May. retailer can’t shift tellys in the run
Analysts had expected underlying up to the year’s biggest sporting
sales to fall between three and five event, when can it?
per cent. This is not a weakness in the mar-
Like-for-like sales at Homebase, ket as a whole. Currys, the electricals
Britain’s second-biggest home chain owned by DSGI, recently post-
improvements chain, behind ed a 4.5 increase in like-for-like sales.
Kingfisher’s B&Q, fell 1.4 per cent – That means Argos is facing structur-
slightly less than analysts’ expected. al problems.
Chief executive Terry Duddy said: These problems couldn’t come at
“Economic conditions remain both a tougher time. The chancellor looks
challenging and uncertain. For set to increase VAT to 20 per cent in
Homebase, this quarter represented a
good outcome to its peak trading
an emergency Budget on 22 June,
while Whitehall is readying the most
period.”
13
NEWS | IN BRIEF
Net-a-Porter to cater for men
The net-a-porter group is to launch a
menswear site. “Mr Porter” will launch
for the spring/summer 2011 season,
with brands including global designer
labels such as Burberry, Ralph Lauren,
Lanvin, YSL, Gucci, Margiela, Balmain,
Dunhill, Margaret Howell, Rick Owens,
John Lobb and MR by the designer,
Roland Mouret. There will also be style
advice on the site. The menswear launch
comes ten years after net-a-porter was
founded by former journalist, Natalie
Massenet. Earlier this year, she sold her
remaining stake in the business to the
Richemont Group for £50m.
Park profit dips but revenue rises
Christmas hampers and financial servic-
es firm Park reported a fall in pre-tax
profit yesterday, while revenues
increased. Pre-tax profit fell to £5.3m
from £6.2m a year earlier, for the year
to 31 March. However, revenue
increased to £263.2m from £250.5m
and operating profit leapt by 38 per
cent. A final dividend of 0.88p per share
has been recommended. That is
unchanged from 2009. Meanwhile, Park
said its corporate voucher business
operating profit increased 13 per cent to
£3.2m on revenue rising to £107.2m
from £85m. Chairman Peter Johnson
said: “Corporate vouchers are benefiting
from a rise in new business and
Christmas savings is seeing a steady
improvement in customer numbers and
order levels.”
swingeing public spending cuts in a
generation. Consumers are unlikely
to have renewed spending power any
time soon.
With such tight margins, even a
small drop in sales is a massive drag
on profits. A one per cent like-for-like
dip at Homebase and Argos translates
into a £22m hit on profit before tax.
Nor is Home Retail Group partic-
ularly cheap. Execution Noble has
the firm trading on 11 times its cal-
endar 2011 earnings per share fore-
casts. DSGI, which trades on eight
times the same multiple, is a much
better buy.
BOTTOMLINE
Analysis by David Crow
 14 News CITYA.M. 11 JUNE 2010

David Willetts prepares to TYRIE TO GRILL TREASURY

hike university tuition fees

year – could also be increased. final salary pension schemes could be
▲

POLITICS
BY DAVID CROW
UNIVERSITIES minister David Willetts
yesterday indicated the coalition gov-
ernment was preparing to hike tuition
fees, describing students as a “burden
on the taxpayer” that needed to “be
tackled”.
He also hinted that interest rates
on low-cost student loans – which
cost the tax payer some £1.2bn a
“If fees were to go up, the govern-
ment would have to lend people the
money to pay for them and that
would push up public spending,” he
told an audience at Oxford Brookes
University.
Willetts said the current arrange-
ments for funding student places
were “clearly unable to respond to
the economic climate”.
And he suggested that lecturers’
scrapped. “It’s very hard asking stu-
dents to pay higher fees in order to
prop up final salary pension schemes
for universities when their own par-
ents have lost theirs,” he said.
But Liberal Democrat MP Simon
Hughes said “it would be wrong to put
more financial burden on students by
way of tuition fees”. The Liberals are
expected to abstain on any Commons
votes that usher in higher fees.

ANDREW Tyrie was yesterday elected as the chair of the influential Treasury Select
Committee, giving him a powerful base from which to grill the chancellor, ministers and
senior figures from the financial services industry. “The Committee has a crucial role to
play in Parliament and more widely at a difficult time for the economy,” said Tyrie.

VAT hike hit

by think tank
▲

UK ECONOMY cent to 20 per cent in George

BY STEVE DINNEEN
A LEADING policy think tank has
slammed the expected VAT hike,
claiming a bank tax would be a fairer
way of cutting the deficit.
The Institute for Public Policy
Research (IPPR) says the improved eco-
nomic conditions should allow banks
to pay an additional £20bn a year in
tax. It claimed the tax revenue could
be siphoned from the £90bn profit
UK financial services will bring in this
year.
The coalition government is widely
expected to raise VAT from 17.5 per
Osborne’s emergency budget on 22
June.
Tony Dolphin, IPPR chief econo-
mist, said: “An increase in VAT would
hit ordinary people hardest, particu-
larly those on low incomes.
“By contrast Robin Hood taxes on
the financial sector would be paid dis-
proportionately by the wealthiest in
society.”
The Forum for Private Business
(FPB) also called for VAT to remain at
its current level. A spokesman told
City A.M.: “A rise to the level of VAT
that has been suggested would hit
small retailers very hard.”

CITY VIEWS: SHOULD VAT GO UP OR SHOULD BANKS

BE TAXED MORE? Interviews by Zohra Moledina

BRIAN COLGAN | AVIVA

“I think tax the banks more. Increasing VAT equals less
spending which drives less money into the economy. They
caused the problem so they can get us out of it."

JAMIL ALAM | RBS

“Definitely the banks in my opinion. Why charge the indi-
vidual? The bottom line is, they created the credit crunch
crisis so why should we as individuals pay for it?”

STEPANCHENKO MYKHAYLO | HMRC

“Taxes for banks and finance institutions should be
increased because more businesses in this sector have
the financial means to pay and suffer less of a loss.
Individuals, regardless of whether they are employed are
paying the price anyway and VAT is already high.”
CITYA.M. 11 JUNE 2010
Feds may take bite of Apple... ... As chipmaker ARM
TECHNOLOGY
▲
BY STEVE DINNEEN
APPLE’S growing feud with Google
took a fresh twist yesterday, with US
anti-trust regulators preparing to
investigate Steve Jobs’ firm.
The iPad-maker sparked fury at
Google after announcing changes to
its advertising platform, iAds, that
effectively block rivals.
It means Google will be excluded
from the expected deluge of advertis-
ing revenue gathered from Apple’s
iPad and its new iPhone 4.
Big bonuses
as GMG losses
increase 77pc
MEDIA
▲
BY STEVE DINNEEN
GUARDIAN Media Group (GMG)
revealed outgoing chief executive
Carolyn McCall will take home a total
pay and bonus package of £658,000
despite the firm’s losses widening 77
per cent to £171m for the year.
Her bumper remuneration package
includes a bonus of £143,000. Mark
Dodson, who quit as chief executive
of the GMG’s regional business earlier
this year after selling the iconic
Manchester Evening News to rival
Trinity Mirror, left with a £440,000
pay off.
The paper’s editor-in-chief Alan
Rusbridger received total remunera-
tion of £411,000 despite taking a pay
cut of £34,000.
GMG last year introduced a compa-
ny-wide pay freeze after struggling to
navigate through turbulent econom-
ic waters.Turnover at the group fell to
£280m from £310.9m the year before.
The publisher of the Guardian and
Observer newspapers factored in
Google publicly blasted Apple for
ring-fencing its business in a way that
harms competition and could drive
smaller developers out of business.
The storm between the two tech
giants has been brewing for years
after their traditionally close relation-
ship broke down over competition for
dominance in sectors such as the
mobile phone market.
Apple defenders argue Google fired
the first shot in the skirmish when it
bought the AdMod advertising plat-
form, which Jobs’ firm had been
interested in.
writedowns totalling more than
£160m on investments in Emap and
its GMG Radio business.
Cost savings of £26.2m – achieved
through the shedding of 203 jobs and
a restructuring of the business –
helped drive operating losses before
exceptionals at Guardian News and
Media (GNM), the firm’s newspaper
arm, down from £65.2m to £53.9m.
Operating profits at its joint ven-
tures Emap and Trader Media Group,
which includes Auto Trader, both fell.
McCall leaves the firm for easyJet
next month.
Meanwhile, Mirror Group
Newspapers announced it will shed
200 jobs as it presses ahead with the
introduction of a new web-based con-
tent management system.
Outgoing GMG chief
executive Carolyn
McCall will take home
a total pay and bonus
package of £658,000
Media and Technology News
Apple further antagonised Google
when it introduced rival search
engine Bing! – owned by Microsoft –
to its new iPhone.
▲
Meanwhile, Apple was left red-
faced when US users of its iPad had
their personal data accessed after a
breach of security at US network
provider AT&T. White House chief of
staff Rahm Emanuel, army chiefs and
chief executives were among those
thought to have been affected.
Apple is understood to be privately
fuming over the breach, which has
not affected UK users.
HOME (PAGE) BURGLARY?
GOOGLE has come under fire for the images it introduced behind its iconic search page
this week. The tech firm has been the subject of ribbing from Microsoft executives who
claim it has stolen the idea from its rival Bing! search engine. The pictures will change,
and those with personalised accounts can customise the page with images from their
own photo libraries.
THE WORLD CUP
AT BOISDALE OF
BISHOPSGATE
Enjoy the World Cup in style with
a 72” screen & air-conditioning in
the Champagne & Oyster Bar
BOISDALE OF BISHOPSGATE SWEDELAND COURT,
202 BISHOPSGATE,
EC2M 4NR 020 7283 1763
INFO@BOISDALE-CITY.CO.UK
WWW.BOISDALE.CO.UK
plays down bid interest
TECHNOLOGY
SHARES in chipmaker ARM jumped
32 per cent to an eight-year high yes-
terday amid fresh rumours of bid
interest from its customer Apple.
A spokeswoman for ARM said the
chip designer had not received an
approach, and said a takeover from
Apple is unlikely. ARM has benefited
from the launch of the new iPhone
and strong sales of the iPad, both of
Picture: GOOGLE
15
which analysts say use its technology.
Apple chief executive Steve Jobs dis-
played a photograph of an ARM chip
in the fourth-generation iPhone on
Tuesday, the first confirmation from
him that the firm’s technology is
used in Apple products.
But Analyst Nick James at Panmure
Gordon said the likelihood of ARM
getting a bid from Apple or anyone
else was very low. ARM stock eased to
close up 5.8 per cent at 290p.
Microsoft
in $1.25bn
note issue
▲
TECHNOLOGY
MICROSOFT plans to raise up to
$1.25bn (£850m) by offering three-
year convertible senior notes to insti-
tutional investors.
The tech firm said each note can be
converted into 29.9 shares of com-
mon stock.
The zero coupon convertible notes,
which will mature in 2013, will not
bear interest and the principal
amount will not accrete, the compa-
ny said.
The initial conversion price for the
notes will be $33.40 per share, which
is a 33 per cent premium based on
the last reported sale price of
Microsoft’s common stock earlier this
week of $25.11.
It has repurchased shares of its
common stock concurrently with the
pricing of the convertible notes in pri-
vately negotiated transactions, it said.
The company said it will use the
net proceeds from the offering of con-
vertible notes to repay short term
debt.
It said it may repurchase shares
from time to time in open market
transactions following the pricing of
the convertible notes.
Microsoft’s stock has fallen 17 per
cent this year.
 16 News
Glaxo in $250m Argentine buy Begbies Traynor acquires
tleground for the world’s top drug-
▲
PHARMACEUTICALS
makers as sales stall in Western mar-
BY HARRY BANKS kets – and Glaxo has vowed to
BRITISH drugmaker GlaxoSmithKline increase its business, partly by mov-
stepped up its drive into emerging ing into the sale of off-patent branded
markets with the acquisition of medicines.
Argentina’s Laboratorios Phoenix for Phoenix had sales last year of
$253m (£172.4m) yesterday. around £70m, ranking it number
The latest in a string of deals in eight in Argentina’s pharmaceutical
developing markets gives Glaxo a market, while Glaxo’s Argentine busi-
portfolio of branded generics cover- ness had revenue of £100m.
ing therapeutic areas such as cardio- Combined, GSK Argentina and
vascular, gastroenterology, metabolic Phoenix would rank third in the
and urology. Argentine market.
Phoenix also brings Glaxo a factory “This is an important step forward
near Buenos Aires, a primary care in our strategy to grow our business
sales force and pipeline of additional in Latin America – a key group of
branded generic medicines. emerging markets for GSK,” said
Emerging markets are the new bat- Abbas Hussain, the company’s head
US watchdog
panel slams
AIG bailout
▲
FINANCIAL SERVICES
conflicts of interest as they would
BY HARRY BANKS have been among the largest benefici-
A REPORT by the Congressional aries of a taxpayer bailout,” the report
Oversight Panel, set up by lawmakers said. “By failing to bring in other play-
to monitor the $700bn (£476bn) ers, the government neglected to use
bailout fund, blasted the govern- all of its negotiating leverage.”
ment’s $182bn bailout of insurance The report is the latest salvo in a
giant AIG for its continued “poiso- barrage of criticism of the Fed’s and
nous effect” on financial markets and Treasury’s handling of the AIG
said it’s still unclear whether taxpay- bailout from government auditors
ers ever will be fully repaid. and US lawmakers in recent months.
“For now, the ultimate cost or prof- The rescue, prompted by billions of
it to taxpayers is unknowable, but it is dollars in cash calls from credit
clear that taxpayers remain at risk for default swaps that AIG sold during
severe losses,” the report said. the housing boom, was the costliest
The panel was highly critical of the of the financial crisis.
decision to bailout AIG, and said The panel criticised current US
Treasury and Fed officials should Treasury secretary Timothy Geithner
have acted earlier and been more for his role in the 2008 bail-out,
aggressive in seeking a private rescue which he oversaw as then head of the
of AIG. It also attacked the New York New York Federal Reserve.
Fed’s decision to rely on just two The report said that New York Fed
banks – JP Morgan and Goldman officials allowed precious days to go
Sachs – to examine the possibility of a by in September 2008 when they
private sector rescue. knew AIG had severe liquidity prob-
“The Panel is concerned that the lems.
government put the effort to organise The Congressional Budget Office
a private AIG rescue in the hands of estimates that taxpayers will lose
only two banks – banks with severe $36bn on the rescue.
CITY MOVES | WHO’S SWITCHING JOBS
Coutts Private Office
The private bank has appointed Stephen Eggins
as a senior client partner based in London,
responsible for looking after ultra-high net
worth (UHNW) clients.
Eggins has over 20 years of experience in
financial services and joins from Credit Suisse,
where he also advised UHNW individuals. Prior
to that, he worked at US investment bank
Donaldson Lufkin Jenrette as a relationship
manager, and as a solicitor for Clifford Chance.
Epperlein will be responsible for mar-
Nomura ket and counterparty risk and its impli-
The Japanese investment bank has cations for regulatory and economic
hired Eduardo Epperlein as global head risk capital, including developing the
of risk methodology, a role based in company’s risk modelling infrastructure.
London. He joins from Citigroup, where he
To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
of emerging markets.
Following the acquisition, GSK
Argentina and Phoenix will remain
separate legal entities.
Last month, Glaxo agreed to buy a
9.9 per cent stake in South Korean
group Dong-A Pharmaceuticals for
£73.9m, the latest of a string of deals
designed to increase its share in up-
and-coming markets worldwide.
Other deals have included the
acquisition of branded generics from
both Bristol-Myers Squibb and UCB,
and product deals with Dr Reddy’s of
India and South Africa’s Aspen
Pharmacare. The balance of the phar-
maceutical market is expected to
shift significantly toward emerging
markets in the next five years.
BEST OF THE BROKERS
ANALYSIS l Misys
260 p 257.70
10 Jun
250
240
230
220
210
15 Mar 6 Apr 26 Apr 17 May 7 Jun
MISYS
Morgan Stanley raises its price target for
Misys to 300p with an “overweight” rating
saying the announcement of the share plac-
ing by Allscripts crystallises the value of
healthcare. Morgan Stanley said it expects
the positive stock reaction to continue.
Misys estimates $1.35bn in proceeds from
the share placing.
Jo’burg exchange buoyed by World Cup
▲
FINANCIAL SERVICES
WORLD Cup fever is translating into
investor optimism in the host nation
of South Africa, according to the FTSE
Mondo Visione Exchanges Index.
The Johannesburg stock exchange
grew by 11.5 per cent in May, topping
the index for the second consecutive
month. The second best-performing
exchange was NYSE Euronext, which
rose 10.2 per cent over the month.
spent 16 years in total, most recently
leading the implementation of a new
market risk capital framework.
Mizuho International
The securities and investment banking
firm has appointed Shaun Wyles as a
managing director and head of fixed
income sales, and Melanie Czarra as a
managing director and head of primary
debt markets.
Wyles joins from inter-dealer broker
Icap, where he was head of European
credit sales from 2008. He also spent a
13-year stint at BNP Paribas.
Czarra has worked for the past 13
years at Citigroup, most recently as a
managing director in fixed income capi-
tal markets origination.
insolvency firm Tomlinsons
▲
FINANCIAL SERVICES
SHARES in Begbies Traynor fell yester-
day after the corporate restructuring
specialist said it would buy
Tomlinsons, an unlisted insolvencies
practitioner, for an undisclosed sum.
Tomlinsons has 13 staff in offices
in Manchester and Blackburn.
Begbies Traynor will absorb the small-
er company into its existing insolven-
cy practice to bolster its presence in
the north west.
Alan Tomlinson and Catherine
Matthews, partners at Tomlinsons,
will join Begbies Traynor as partners.
ANALYSIS l Essar Energy
450 p
440 444.00
10 Jun
430
420
410
400
390
380
4 May 13 May 22 May 31 May 7 Jun
ESSAR ENERGY
JP Morgan Cazenove initiates coverage of
Essar Energy with an “overweight” rating
and said that it notes two potential near-
term positive triggers: 1) Pump price
deregulation and 2) Ratna production shar-
ing contract (PSC) validation – manage-
ment remains confident that the PSC will
be finalised by the end of June or early July.
To appear in Best of the Brokers email your research to notes@cityam.com
As a whole, the index fell 8.9 per
cent in May to close at 48,486.38, after
a testing month during which the
markets were rocked by the sovereign
debt crisis in the Eurozone.
As a result, the worst-performing
exchange on the index over the
month, by capital returns measured
in US dollars, was Hellenic Exchanges
in crisis-stricken Greece, which saw a
6.4 per cent contraction.
Herbie Skeete, the managing direc-
FundQuest
The multi-management specialist, part
of BNP Paribas Investment Partners,
has hired three new team members.
Valérie Meurice becomes head of
external sales, having worked within
the BNP Paribas group for the past 17
years, while Barbara Sanderson joins
from Fortis Investments as head of
marketing. Sébastien Bonnet joins as
head of risk, having spent the past five
years in analyst and portfolio manager
positions at Ofi Asset Management,
Natexis Asset Square and Allianz
Alternative Asset Management.
Jefferies
The bank has expanded its global equity
sales and trading business with the
CITYA.M. 11 JUNE 2010
Begbies Traynor executive chair-
man Ric Traynor said: “[This takeover]
reflects both our confidence in our
long-term trading outlook and the
fact that our recent refinancing is
enabling us to consider both organic
investment and acquisition opportu-
nities, principally in the insolvency
and restructuring sector.”
Shares in Begbies Taynor closed 0.8
per cent lower at 59.5p yesterday.
News of the purchase comes days
after the Aim-listed company said it
had been hit by the lower rate of cor-
porate insolvencies compared with a
year earlier.
ANALYSIS l Santander
€
8.03
10 Jun
10
9
8
7
15 Mar 6 Apr 26 Apr 17 May 7 Jun
SANTANDER
Defensive balance sheets across the group
give Royal Bank of Scotland (RBS) confi-
dence in Santander’s ability to survive an
orderly European sovereign debt restruc-
turing without issuing new capital. RBS
cuts its earnings forecasts by six per cent
and its target price to €13.00 (£10.71), but
maintains a “buy” rating.
tor of Mondo Visione and co-founder
of the index, said Johannesburg’s
strong performance reflected
“improved investor confidence in the
South African economy and the possi-
bility of a boost from the soccer
World Cup”.
The first World Cup 2010 group
round matches start today when
South Africa play Mexico in
Johannesburg, with the final to be
held a month from now on 11 July.
Edited by Victoria Bates
appointment of David Craven as a man-
aging director and equity research
salesperson in London.
Craven has over 26 years of industry
experience and joins from Icap Equities,
where he was a managing director. He
previously spent eight years at JP
Morgan as an executive director for
equity sales and has held similar posi-
tions at HSBC, Greig Middleton,
Gerrard Vivian Grey and BZW.
Credit Suisse
Gurjit Kambo, who was formerly a
financials analyst at Numis Securities,
has moved over to investment bank
Credit Suisse.
At Numis, Kambo specialised in cov-
ering UK asset management firms.
 Markets&Investment
17

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)
3i . . . . . . . . . . . . . . . . . . . . . . . .288.50 +6.90 314.80 216.75 Compass . . . . . . . . . . . . . . . . . .566.50 +7.00 572.00 307.75 Jardine Lloyd Thompson. . . . . . .559.50 +5.50 604.50 393.00 Sainsbury(J) . . . . . . . . . . . . . . . .323.10* –1.50 373.00 306.50
3i Infrastructure . . . . . . . . . . . . .107.70* — 114.40 85.25 Cookson . . . . . . . . . . . . . . . . . . .434.00 +6.30 616.00 220.00 Johnson Matthey . . . . . . . . . . .1519.00* +39.00 1814.00 1077.00 Schroders . . . . . . . . . . . . . . . . .1323.00 +13.00 1450.00 764.00
A.B. Foods . . . . . . . . . . . . . . . . .992.50* +6.50 1045.00 718.50 Croda Intl . . . . . . . . . . . . . . . . .1032.00 +8.00 1047.00 498.50 JPMorgan Emerg Mkts . . . . . . . .505.00 +2.00 549.00 350.50 Schroders N/V. . . . . . . . . . . . . .1054.00 +8.00 1185.00 643.50
Aberdeen Asset Man . . . . . . . . . .136.40* +1.40 155.60 111.00 CSR . . . . . . . . . . . . . . . . . . . . . .399.50 +4.80 524.00 320.75 Kazakhmys . . . . . . . . . . . . . . . . 1144.00 +38.00 1634.00 567.50 Scot. & Sthrn Energy. . . . . . . . . 1106.00 +39.00 1206.00 357.50
Admiral. . . . . . . . . . . . . . . . . . .1366.00 +14.00 1403.00 833.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .471.60* +8.50 539.00 264.25 Kesa Electricals . . . . . . . . . . . . .105.10 +2.90 162.00 98.45 Scottish Mortgage. . . . . . . . . . . .560.50* +1.00 623.50 376.00
Aegis . . . . . . . . . . . . . . . . . . . . .109.30* +2.30 137.30 79.75 Dana Petroleum . . . . . . . . . . . .1044.00 –2.00 1549.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .221.80* +3.80 255.00 171.40
Afren . . . . . . . . . . . . . . . . . . . . . .89.80 — 111.00 38.50 Davis Service . . . . . . . . . . . . . . .377.50 +4.30 442.30 307.00 Ladbrokes . . . . . . . . . . . . . . . . .136.80 +1.70 174.97 114.60 SEGRO . . . . . . . . . . . . . . . . . . . .267.90 +3.90 403.10 250.00
Aggreko . . . . . . . . . . . . . . . . . .1473.00 +38.00 1489.00 476.25 De La Rue . . . . . . . . . . . . . . . . . .984.00 +17.00 1021.00 808.50 Lancashire Hldgs . . . . . . . . . . . .483.00 +3.00 540.00 416.70 Serco . . . . . . . . . . . . . . . . . . . . .629.00 +9.50 656.50 394.30
Alliance Trust . . . . . . . . . . . . . . .315.10 +1.30 352.70 260.25 Debenhams . . . . . . . . . . . . . . . . .57.80 –0.40 91.95 53.75 Land Securities . . . . . . . . . . . . . . 611.50 +11.00 743.50 415.25 Severn Trent . . . . . . . . . . . . . . .1243.00 +14.00 1258.00 921.00
AMEC . . . . . . . . . . . . . . . . . . . . .821.50* +2.50 891.00 603.50 Derwent London . . . . . . . . . . . .1323.00* +21.00 1490.00 844.00 Legal & General . . . . . . . . . . . . . .80.05 +2.40 94.40 49.37 Shaftesbury . . . . . . . . . . . . . . . .359.60* +6.90 426.50 284.00
Amlin . . . . . . . . . . . . . . . . . . . . .369.60 –2.70 428.50 291.00 Dexion Absolute . . . . . . . . . . . . .137.00 –1.00 148.00 107.75 Lloyds Banking Gp . . . . . . . . . . . .55.91 +2.44 75.58 40.42 Shire. . . . . . . . . . . . . . . . . . . . .1429.00 +3.00 1526.00 798.50
Anglo American . . . . . . . . . . . .2621.50 +83.00 3015.50 1540.00 Diageo . . . . . . . . . . . . . . . . . . . 1102.00 +11.00 1176.00 831.50 Logica . . . . . . . . . . . . . . . . . . . .123.00 +1.70 149.10 71.50 SIG . . . . . . . . . . . . . . . . . . . . . . .109.00 +0.10 146.60 82.25
Antofagasta . . . . . . . . . . . . . . . .872.00* +18.00 1100.00 546.50 Dimension Data . . . . . . . . . . . . . .98.15 +0.10 105.00 53.75 London Stock Exchange . . . . . . .600.50 +6.50 949.50 588.00 Smith & Nephew . . . . . . . . . . . . .641.50 +8.50 700.50 435.25
Aquarius Platinum . . . . . . . . . . .361.70 +2.00 490.00 172.75 Domino’s Pizza . . . . . . . . . . . . . .365.00 +6.90 371.20 192.75 Lonmin . . . . . . . . . . . . . . . . . . .1602.00 +40.00 2198.00 950.00 Smiths . . . . . . . . . . . . . . . . . . .1073.00 +32.00 1177.00 649.00
ARM Holdings . . . . . . . . . . . . . . .290.10 +16.10 362.40 104.00 Drax . . . . . . . . . . . . . . . . . . . . . .355.60 +8.60 496.50 321.50 Man . . . . . . . . . . . . . . . . . . . . . .242.80 +4.60 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .818.00* +8.50 928.00 493.50
Arriva . . . . . . . . . . . . . . . . . . . . .766.50 +0.50 782.50 378.50 DSG Intl . . . . . . . . . . . . . . . . . . . .25.52 +0.70 39.75 19.25 Marks & Spencer. . . . . . . . . . . . .343.00* +7.80 412.70 281.50 Spirax-Sarco Eng . . . . . . . . . . .1398.00 –2.00 1591.00 749.50
Ashmore . . . . . . . . . . . . . . . . . . .247.80 +2.20 311.20 183.25 Dunelm . . . . . . . . . . . . . . . . . . . .349.90 –0.50 438.40 202.00 Marston’s . . . . . . . . . . . . . . . . . . .95.65* +2.65 119.67 77.50 Spirent Comms . . . . . . . . . . . . . .108.00 +1.10 127.80 54.50
Ashtead . . . . . . . . . . . . . . . . . . . 112.70 +6.80 128.50 52.00 Easyjet . . . . . . . . . . . . . . . . . . . .414.10 +11.90 499.90 260.00 Meggitt . . . . . . . . . . . . . . . . . . . .319.30 +8.20 328.70 151.75
Astrazeneca . . . . . . . . . . . . . . .2989.00 +43.50 3136.00 2472.00 Edinburgh Inv Tst . . . . . . . . . . . .394.80 +3.80 412.40 297.50 Melrose . . . . . . . . . . . . . . . . . . . 211.90 +1.90 251.50 87.75 Sports Direct Intl . . . . . . . . . . . . . .95.50 +0.40 134.00 72.50
Atkins(Ws) . . . . . . . . . . . . . . . . .710.50 +20.50 730.00 513.50 Electrocomponents . . . . . . . . . . .216.70 +6.70 245.00 134.25 Mercantile IT . . . . . . . . . . . . . . . .905.00 +8.00 1002.00 716.50 SSL Intl . . . . . . . . . . . . . . . . . . . .860.00 +29.00 893.50 481.25
Autonomy Corp . . . . . . . . . . . .1915.00 +88.00 1945.00 1121.00 EnQuest . . . . . . . . . . . . . . . . . . .105.00 +2.00 112.70 87.35 Michael Page Intl. . . . . . . . . . . . .381.50 +2.70 461.50 218.50 St James’s Place . . . . . . . . . . . . .229.90 +0.20 296.90 172.25
Aveva . . . . . . . . . . . . . . . . . . . . 1132.00 +2.00 1237.00 661.00 Eurasian Nat Res . . . . . . . . . . .1026.00* +44.00 1276.00 582.00 Micro Focus . . . . . . . . . . . . . . . .515.00 +25.00 550.00 300.90 Stagecoach. . . . . . . . . . . . . . . . .180.00 — 204.90 114.75
Aviva . . . . . . . . . . . . . . . . . . . . .334.10 +10.60 474.00 274.75 Euromoney Inst Inv . . . . . . . . . . .573.00* +10.50 630.00 191.25 Millen & Copthorne . . . . . . . . . . .422.10 +12.70 496.30 217.25 Standard Chartered . . . . . . . . . .1649.00 +27.50 1847.00 1115.00
Babcock International . . . . . . . . .589.50 +16.50 660.50 448.50 Experian . . . . . . . . . . . . . . . . . . .621.00 +10.50 664.50 434.00 Misys . . . . . . . . . . . . . . . . . . . . .256.80 +7.80 281.70 157.25 Standard Life . . . . . . . . . . . . . . .182.10 +4.00 237.00 172.60
BAE Systems . . . . . . . . . . . . . . .324.90 +4.60 389.90 294.20 F&C Comm Prop . . . . . . . . . . . . . .93.90* +0.95 96.80 73.50 Mitchells & Butlers . . . . . . . . . . .308.90 +1.90 343.90 221.75 TalkTalk . . . . . . . . . . . . . . . . . . .123.00 –1.50 147.10 106.60
Balfour Beatty . . . . . . . . . . . . . . .251.80* +0.40 328.85 238.50 Ferrexpo . . . . . . . . . . . . . . . . . . .254.50 +7.90 396.20 112.00 MITIE . . . . . . . . . . . . . . . . . . . . .230.40 +0.60 281.70 204.25 Talvivaara Mining . . . . . . . . . . . .360.00 +8.40 501.50 315.00
Barclays . . . . . . . . . . . . . . . . . . .287.85 +5.15 394.25 255.00 FirstGroup . . . . . . . . . . . . . . . . .385.00 +6.30 448.80 322.75 Mondi . . . . . . . . . . . . . . . . . . . . .400.40 +11.50 488.00 182.00 Tate & Lyle . . . . . . . . . . . . . . . . .477.60 +5.90 481.40 284.75
Barratt Development . . . . . . . . . . .97.20 +0.70 193.31 91.80 Foreign & Col Inv Tst. . . . . . . . . .271.20 –0.60 297.20 210.25 Monks Inv Tst . . . . . . . . . . . . . . .291.00 +2.00 321.20 222.00 Taylor Wimpey . . . . . . . . . . . . . . .29.48 +0.30 54.90 27.40
BBA Aviation . . . . . . . . . . . . . . .188.40 +4.40 220.00 105.00 Fresnillo . . . . . . . . . . . . . . . . . .1013.00 +30.50 1025.00 438.00 Morrison Wm . . . . . . . . . . . . . . .264.70* –2.00 306.30 234.25 Telecity . . . . . . . . . . . . . . . . . . . .388.80 +13.90 455.00 272.00
Beazley. . . . . . . . . . . . . . . . . . . . 114.20 –0.80 122.00 86.00 G4S . . . . . . . . . . . . . . . . . . . . . .279.00 +4.90 285.70 197.90 Murray Intl Tst . . . . . . . . . . . . . . .823.00 +10.50 893.50 575.00 Templeton Emrg Mkts . . . . . . . . .536.50 +1.00 598.00 346.50
Bellway. . . . . . . . . . . . . . . . . . . .644.00* +1.50 927.50 591.50 Genesis Emerging Mkts Fd . . . . .459.00 +7.80 484.00 370.00 National Express. . . . . . . . . . . . .223.00 –0.90 256.80 135.08
Berkeley . . . . . . . . . . . . . . . . . . .759.00 +8.00 989.50 735.00 GKN . . . . . . . . . . . . . . . . . . . . . .126.40 +5.00 155.00 67.49 National Grid . . . . . . . . . . . . . . .499.40* +15.20 607.65 466.71 Tesco . . . . . . . . . . . . . . . . . . . . .401.55* –0.90 454.90 347.40
BG . . . . . . . . . . . . . . . . . . . . . .1070.00 +5.50 1248.00 966.90 GlaxoSmithKline . . . . . . . . . . . . 1163.50* +1.00 1347.00 1027.50 Next . . . . . . . . . . . . . . . . . . . . . 2119.00* +33.00 2360.00 1402.00 Thomas Cook . . . . . . . . . . . . . . .197.00 +1.50 277.20 189.70
BHP Billiton . . . . . . . . . . . . . . .1875.50 +58.00 2346.00 1274.50 Great Portland Estates . . . . . . . .289.80 +4.20 332.10 203.75 Northumbrian Water . . . . . . . . . .286.70 +5.80 296.30 219.90 Tomkins . . . . . . . . . . . . . . . . . . .248.00* +6.90 258.50 135.00
BlackRock Mining . . . . . . . . . . . .570.00 +13.50 654.50 346.00 Greene King . . . . . . . . . . . . . . . .386.80 +4.90 504.00 359.50 Old Mutual . . . . . . . . . . . . . . . . . 110.10* +1.80 127.20 71.00 Travis Perkins . . . . . . . . . . . . . . .771.00 +12.00 915.00 461.00
Booker . . . . . . . . . . . . . . . . . . . . .41.85* +0.47 49.50 32.75 Halfords . . . . . . . . . . . . . . . . . . .530.00 +30.20 543.00 299.00 Partygaming . . . . . . . . . . . . . . . .255.00 –0.60 339.70 213.30 TUI Travel . . . . . . . . . . . . . . . . . .220.40 +2.70 313.90 213.80
BP . . . . . . . . . . . . . . . . . . . . . . .365.50* –26.05 658.20 345.15 Halma . . . . . . . . . . . . . . . . . . . . .254.50 –2.00 278.50 169.00 Pearson . . . . . . . . . . . . . . . . . . .938.00 +9.50 1069.00 574.00 Tullett Prebon . . . . . . . . . . . . . . .340.30 +7.70 436.20 261.20
Brit Insurance . . . . . . . . . . . . . . .729.00 –10.00 831.60 709.00 Hammerson . . . . . . . . . . . . . . . .358.50 +5.50 460.30 277.00 Pennon . . . . . . . . . . . . . . . . . . . .539.50 +9.00 558.00 434.40 Tullow Oil . . . . . . . . . . . . . . . . . 1121.00 +1.00 1375.00 834.50
British Airways . . . . . . . . . . . . . .194.80 +1.90 255.80 117.30 Hansen Trans . . . . . . . . . . . . . . . .86.00 — 163.50 78.00 Persimmon . . . . . . . . . . . . . . . . .361.10 –3.10 534.50 340.25 UK Commercial Prop. . . . . . . . . . .78.00 +0.70 84.90 59.50
British Amer. Tob . . . . . . . . . . .2161.00 +13.00 2335.50 1637.00 Hargreaves Lansdown . . . . . . . .358.00 +2.30 387.00 197.25 Petrofac . . . . . . . . . . . . . . . . . .1247.00 +24.00 1294.00 580.00 Ultra Electronics . . . . . . . . . . . .1598.00 — 1678.00 1064.00
British Empire Tst . . . . . . . . . . . .429.40* +5.50 467.90 338.50 Hays . . . . . . . . . . . . . . . . . . . . . . .96.05 –0.60 119.00 80.00 Petropavlovsk . . . . . . . . . . . . . .1281.00 +37.00 1370.00 515.00 Unilever . . . . . . . . . . . . . . . . . .1907.00* +15.00 2024.00 1419.00
British Land . . . . . . . . . . . . . . . .458.20 +11.80 532.00 353.00 Henderson . . . . . . . . . . . . . . . . .130.40 +1.40 157.80 83.75 Premier Farnell . . . . . . . . . . . . . .244.00* +24.40 249.70 121.25 United Utilities . . . . . . . . . . . . . .567.50 +8.00 575.00 429.00
Britvic. . . . . . . . . . . . . . . . . . . . .476.00* +3.60 497.70 253.25 Heritage Oil. . . . . . . . . . . . . . . . .430.50 +8.90 610.00 409.80 Premier Oil . . . . . . . . . . . . . . . . 1160.00 +7.00 1431.00 984.00 Utd Business Media . . . . . . . . . .514.00 +11.50 579.50 364.75
Brown(N.) . . . . . . . . . . . . . . . . . .265.70 +8.60 284.30 204.25 Hikma Pharma . . . . . . . . . . . . . .694.50 +9.50 730.00 412.00 Provident Financial . . . . . . . . . . .839.00* +13.00 986.00 763.00
BSkyB . . . . . . . . . . . . . . . . . . . .585.50 +11.50 637.50 423.75 Hiscox . . . . . . . . . . . . . . . . . . . .337.30 +0.30 369.30 279.50 Prudential . . . . . . . . . . . . . . . . . .549.50 +18.00 665.00 350.25 Vedanta Resources . . . . . . . . . .2220.00 +58.00 2967.00 1262.00
BT . . . . . . . . . . . . . . . . . . . . . . .131.80 +1.30 151.00 92.30 Hochschild Mining . . . . . . . . . . .305.00 –3.20 370.60 220.00 PZ Cussons . . . . . . . . . . . . . . . .296.00 –0.50 305.50 169.75 Victrex . . . . . . . . . . . . . . . . . . . 1120.00* — 1123.00 498.50
Bunzl . . . . . . . . . . . . . . . . . . . . .730.00* +13.50 784.50 478.50 Home Retail . . . . . . . . . . . . . . . .228.30* –9.70 336.50 224.80 Qinetiq . . . . . . . . . . . . . . . . . . . . 118.40 –0.90 179.10 113.90 Vodafone . . . . . . . . . . . . . . . . . .139.40* +2.15 153.80 111.40
Burberry . . . . . . . . . . . . . . . . . . .784.00 +37.00 791.00 359.00 Homeserve . . . . . . . . . . . . . . . .2095.00 — 2190.00 1336.00 Randgold Resources. . . . . . . . .6100.00 +55.00 6285.00 3351.00 VT . . . . . . . . . . . . . . . . . . . . . . .761.00 +12.50 773.00 416.00
Cable & Wire Comms . . . . . . . . . .57.00* –0.05 150.00 53.00 HSBC Hldgs . . . . . . . . . . . . . . . .644.50* +2.90 766.80 487.00 Reckitt Benckiser . . . . . . . . . . .3238.00 +8.00 3667.00 2686.00 Weir . . . . . . . . . . . . . . . . . . . . . .956.00 +29.00 1076.00 437.50
Cable & Wire Wwide . . . . . . . . . . .85.00* +1.75 94.80 68.60 Hunting . . . . . . . . . . . . . . . . . . .451.70 –4.10 659.50 377.00 Reed Elsevier . . . . . . . . . . . . . . .483.50 –0.90 548.00 403.75 Wetherspoon(J.D.) . . . . . . . . . . .419.30 +1.70 556.00 348.00
Cairn Energy. . . . . . . . . . . . . . . .407.90 +9.80 441.50 306.80 ICAP . . . . . . . . . . . . . . . . . . . . . .405.00 +5.00 478.30 291.70 Regus . . . . . . . . . . . . . . . . . . . . . .83.35 +2.00 125.50 58.75 WH Smith . . . . . . . . . . . . . . . . . .435.20* +2.10 551.00 405.25
Caledonia Invs . . . . . . . . . . . . .1591.00 +10.00 1759.00 1459.00 IG . . . . . . . . . . . . . . . . . . . . . . . .422.30 –9.50 446.10 242.50 Rentokil Initial . . . . . . . . . . . . . . . 118.90 +1.90 140.20 82.25 Whitbread . . . . . . . . . . . . . . . . .1410.00* +36.00 1645.00 778.50
Capita . . . . . . . . . . . . . . . . . . . . .794.50 +14.50 829.50 643.50 Imagination Tech Gp . . . . . . . . . .272.00 +33.00 289.30 80.00 Resolution . . . . . . . . . . . . . . . . . .60.50 +1.30 99.15 58.45 William Hill . . . . . . . . . . . . . . . . .178.60 +0.90 218.50 160.50
Capital & Counties . . . . . . . . . . .105.90 +2.10 125.40 99.60 IMI . . . . . . . . . . . . . . . . . . . . . . .672.50 +17.00 742.00 275.25 Rexam . . . . . . . . . . . . . . . . . . . .317.30 +4.10 330.50 222.50 Witan Inv Tst . . . . . . . . . . . . . . . .437.00 +2.00 487.00 329.50
Capital Shopping Centres . . . . . .329.00* +0.10 580.00 300.20 Imperial Tobacco. . . . . . . . . . . .1897.00 –13.00 2159.00 1547.00 Rightmove . . . . . . . . . . . . . . . . .707.50* –5.00 729.00 334.00 Wolseley . . . . . . . . . . . . . . . . . .1597.00 +33.00 1742.00 986.00
Carillion . . . . . . . . . . . . . . . . . . .328.10* +7.60 361.90 236.75 Inchcape. . . . . . . . . . . . . . . . . . .262.30 –0.70 347.00 253.20 Rio Tinto . . . . . . . . . . . . . . . . . .3262.00 +115.00 4104.00 1822.00
Carnival . . . . . . . . . . . . . . . . . .2588.00* +26.00 2937.00 1431.00 Informa . . . . . . . . . . . . . . . . . . . .392.20 +16.80 439.40 216.00 RIT Capital Partners . . . . . . . . .1089.00 +4.00 1159.00 861.50 Wood Group (John). . . . . . . . . . .304.10 +6.60 411.70 231.25
Catlin . . . . . . . . . . . . . . . . . . . . .326.40 +2.30 380.50 284.75 Inmarsat . . . . . . . . . . . . . . . . . . .815.00 +10.00 819.00 491.00 Rolls Royce . . . . . . . . . . . . . . . .599.50* +7.00 631.50 325.00 WPP . . . . . . . . . . . . . . . . . . . . . .685.50 +18.00 744.00 380.50
Centrica . . . . . . . . . . . . . . . . . . .284.80* +6.90 320.00 212.50 Intercontl Hotels . . . . . . . . . . . . 1141.00 +32.00 1175.00 584.50 Rotork . . . . . . . . . . . . . . . . . . .1347.00 +18.00 1482.00 779.50 Xstrata . . . . . . . . . . . . . . . . . . .1003.00 +41.30 1344.50 555.10
Charter Intl . . . . . . . . . . . . . . . . .677.00 +12.00 855.50 395.25 Intermediate Capital . . . . . . . . . .257.10 +1.10 332.00 170.25 Royal Bank Of Scot . . . . . . . . . . . .43.16 +1.08 58.95 28.25 Yell Group. . . . . . . . . . . . . . . . . . .26.06 –0.34 86.00 20.25
Chemring . . . . . . . . . . . . . . . . .3373.00 +52.00 3711.00 1910.00 Intertek . . . . . . . . . . . . . . . . . . .1424.00* +11.00 1576.00 987.50 Royal Dutch Shell A . . . . . . . . .1761.50* –9.00 2068.50 1431.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chloride Group . . . . . . . . . . . . . .343.90 –1.10 346.00 129.00 Intl Power . . . . . . . . . . . . . . . . . .300.40* +8.10 354.00 228.00 Royal Dutch Shell B . . . . . . . . .1684.00* –19.00 1997.50 1437.00
Close Bros . . . . . . . . . . . . . . . . .700.00 — 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .279.10 +2.20 350.30 212.25 RSA Insurance . . . . . . . . . . . . . . 119.20 +1.60 142.00 113.10 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .233.30* +2.50 278.60 164.90 Investec . . . . . . . . . . . . . . . . . . .485.80 +5.50 565.00 309.75 SABMiller . . . . . . . . . . . . . . . . .1955.00 +28.00 2090.00 1210.00
COLT Group . . . . . . . . . . . . . . . .134.90 +3.80 144.20 98.25 ITV . . . . . . . . . . . . . . . . . . . . . . . .55.25 +2.50 71.75 31.75 Sage . . . . . . . . . . . . . . . . . . . . . .246.20* +5.20 260.50 167.20 www.interactivedata.com

EURO
CARD “The only card I ever use abroad” Nadine Read, Caxton FX customer since 2007

Using your debit or credit card overseas could cost more money than you think. A Caxton FX
ƉƌĞƉĂŝĚDĂƐƚĞƌĂƌĚΠĐĂŶƐĂǀĞLJŽƵŵŽŶĞLJŽŶLJŽƵƌŶĞdžƚƚƌŝƉ͘ŽŵƉĞƟƟǀĞĞdžĐŚĂŶŐĞƌĂƚĞƐ͕
no overseas ATM fees and 0% commission.

www.caxtonfxcard.com/ca
DĂƐƚĞƌĂƌĚŝƐĂƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬŽĨDĂƐƚĞƌĂƌĚ/ŶƚĞƌŶĂƟŽŶĂů/ŶĐŽƌƉŽƌĂƚĞĚ͘dŚĞĂƌĚŝƐŝƐƐƵĞĚďLJEĞǁĐĂƐƚůĞƵŝůĚŝŶŐ^ŽĐŝĞƚLJ;͞E^͟ͿƉƵƌƐƵĂŶƚƚŽůŝĐĞŶĐĞďLJDĂƐƚĞƌĂƌĚ/ŶƚĞƌŶĂƟŽŶĂů/ŶĐ͘E^ŝƐĂƵƚŚŽƌŝƐĞĚĂŶĚƌĞŐƵůĂƚĞĚďLJƚŚĞ&ŝŶĂŶĐŝĂů^ĞƌǀŝĐĞƐƵƚŚŽƌŝƚLJĂƐĂŶŝƐƐƵĞƌŽĨĞͲŵŽŶĞLJ;ƌĞŐŝƐƚƌĂƟŽŶŶŽ͘ϭϱϲϬϱϴͿ

Miners carry the FTSE to small gains Strong euro spills over to
after talk Australia could axe new tax US markets to fuel rise
Sun newspaper said the Australian tious, with the blue-chip index nurs- slump and spilled over to the United

THELONDON government would soon announce

major changes to a controversial min-
ing 11.9 per cent losses since Europe's
debt crisis escalated in mid April. THENEW YORK States. Movements in US stocks have
been closely tied to swings in the

REPORT
ing tax that has weighed on the sec-
tor.
Rio Tinto, Xstrata, Kazakhmys and
Eurasian Natural Resources added 3.4
“There are any number of prob-
lems that could reappear, and credit
markets are still not running smooth-
ly,” said Tim Whitehead, investment
REPORT euro as investors use the currency as
a barometer for confidence in the
euro-zone economy.
The Dow Jones industrial average

A T
RALLY by miners lifted to 4.5 per cent. manager at Redmayne-Bentley in HE major US stock indexes rose jumped 273.28 points, or 2.76 per
Britain's top share index by the Miners were also supported by pos- Leeds. nearly 3 per cent on Thursday, a cent, to 10,172.53. The Standard &
close on Thursday, while itive economic data from China, “It will be hard to make much day after a late-day sell-off that Poor’s 500 Index rose 31.15 points, or
improved economic sentiment where robust growth in May exports headway above 5,200 over the sum- had reversed strong gains in 2.95 per cent, to 1,086.84 and the
gave the banks a boost. and imports testified to the underly- mer, and I wouldn't be surprised if we what has been a volatile month on Nasdaq Composite Index climbed
Another sharp fall for BP, however, ing momentum of the world's third- test 5,000 again.” Wall Street. 59.86 points, or 2.77 per cent, to
limited the index's gains, as the costs largest economy. But there was enough optimism to The rise came amid questions over 2,218.71.
of the disastrous oil spill in the Gulf The FTSE 100 ended up 46.64 lift cyclical stocks such as banks. whether expectations of an econom- Energy shares gave one of the
of Mexico continued to cloud the points, or 0.9 per cent, at 5,132.5, hav- Barclays, HSBC, Lloyds Banking ic recovery have been overly opti- biggest boosts to the market, with
company’s future. ing broken a three-day losing streak Group, Royal Bank of Scotland and mistic. the S&P energy sector up 4.9 per cent,
Miners delivered the bulk of the on Wednesday. Standard Chartered were up 0.5 to 4.6 The strength in the euro helped making it the top percentage gainer
rally, extending gains after the Herald However, investors were still cau- per cent. pull European stocks from an early among S&P sectors.
 City Focus
18
Soda queen takes on Goliath
Kathleen Brooks meets the
woman who has taken on Coke
with some promising results
L
AUNCHING a cola and taking on one
of the best-known brands in the
world doesn’t sound like it would be
a success – not even Sir Richard
Branson could topple Coke with Virgin
Cola. But Miranda Walker, the co-founder
of the Ubuntu Trading Company, was not
deterred.
She launched Ubuntu, a cola drink, in
September 2007. Its selling point is that it is
made with fairtrade cane sugar, which is
grown by a co-operative farming communi-
ty in Malawi. “Ubuntu is tapping into the
current zeitgeist where consumers are con-
cerned about where their products come
from.”
After spending the majority of her career
at advertising agency Leo Burnett, where
she was an executive planning director, she
wanted another challenge: “Advertising is
great fun and frivolous but I wanted to do
more than that.” Hence the Ubuntu
Trading Company was born in December
2006, founded by Walker and her partners
Sandy Muir, Phil King and Philippe Sibaud.
So why cola? “The one thing I can do is
brands,” says Walker. But it was divine
intervention that made her focus on fair-
trade: “I was at church one Sunday and the
vicar gave this big tirade on big brands and
how important fair trading was. As we
were walking out, my husband turned to
me and said: ‘that’s what you should do,’
and then the wheels were put into motion
for Ubuntu.”
The Ubuntu Trading Company was set
up with £350,000: one third was from the
founders’ own money, and the rest came
from the Small Firm Loan Guarantee
Scheme that is run by the government and
is notoriously difficult to win. “I was literal-
ly working all day. I would go to bed at
Social business
is generating a
big turnover
Entrepreneurs should
concentrate on their
holistic bottom line,
says Kathleen Brooks
I
N THE past, social businesses were
seen as something of a novelty. But
that has changed. Earlier this week
Royal Bank of Scotland launched the
RBS Social Enterprise 100 index, which has
attempted to quantify social enterprise for
the first time. And the results are surprising.
The index revealed that social
enterprises in the financial sector grew by
more than 17 per cent last year. The
average turnover was £4m and the total
turnover for the top 350 social enterprises
in the UK was more than £800m.
| Going It Alone
11pm and then get up between two and
five to get more work done. It was unspeak-
ably hellish. But once you have the financ-
ing you have a responsibility.”
The biggest challenge has been produc-
tion, says Walker. The company originally
manufactured the drink in Belgium.
Producing the drink in euros and selling it
in pounds became a problem when the
pound fell against the single currency.
Walker then transferred production to
Derbyshire.
So far, the new kid on the cola block has
been a success. It is sold in universities
across the UK and since March it has been
stocked in 90 branches of Waitrose.
According to the National Union of
Students Services, Ubuntu’s cola share is
2.75 per cent of the entire cola market in
universities. This compares with Coke Zero,
which has a 2.5 per cent market share.
The company has yet to make a profit,
Companies include Pictures to Share,
which publishes scrap books for patients
suffering from Alzheimer’s disease, and
Cosmic, an IT company that aims to get
more people connected to the internet.
But how do you define a social enter-
prise? The formal definition for a company
to be included in the index is that it must
have either a social or an environmental
aim and use its profits to deliver the social
and environmental goals it set out in its
mission statement. Also, 50 per cent of its
profits must be generated from real trad-
ing, as opposed to government grants.
Doug Richard, the former BBC Dragons’
Den star, says that in the future every busi-
ness will have to be a social enterprise: “All
big businesses have to be socially responsi-
ble, and taking a holistic view of your bot-
tom line doesn’t hurt profits.” And
entrepreneurs are central to developing
social enterprise in the future, he says.
One such example is Kresse Westling,
In association with
Miranda Walker is which is normal for newcomers to the car-
bonated drinks market. It hopes to be in
trying to develop her
own world-famous the black in 2011, at which point it will
brand have to re-invest 15 per cent into local
community projects across Malawi. Coke
Picture: Micha will always be number one, but as ethical
Theiner/CITY A.M consumption takes off, so should
Ubuntu’s fortunes.
CV | MIRANDA WALKER
Age: 45 Favourite brand: “Green &
Family: Married, three children Blacks, I loved the way that it
Lives: Wandsworth changed the way that people eat
Studied: French at Exeter chocolate in this country.”
Reading: “I always read about Name: Ubuntu is a sub-Saharan
three books, on the go at the African phrase that means “I am
moment it is George Orwell’s what I am because of who we
Books vs. Cigarettes.” all are”.
An index for social
enterprises is
founder of ethical fashion company
Elvis & Kresse, which has seen turnover
illuminating increase from £10,000 in 2008, its first
year, to £150,000 in 2009. Sales were
Picture: REUTERS boosted after Hollywood actress
Cameron Diaz wore a belt made by the
company in a shoot for Vogue. “I was
working for a venture capital firm in
Hong Kong when I first graduated, but I
wanted my job to mirror my
principles,” says Westling.
But Doug Richard says that the legal
structures for social enterprises don’t
encourage investment. For example, a
lot of social enterprises are organised as
companies limited by guarantee, which
are not allowed to have investors. “This
is senseless, the whole point is to apply
capitalist principles to social issues, and
there is nothing wrong with profits.”
The RBS index is a step in the right
direction, and entrepreneurs should get
in on the trend.
CITYA.M. 11 JUNE 2010
APPS
Q.
What exactly is an iPhone
application and why is it use-
ful?
Q&A
A.
An iPhone app is essentially a tiny
website that taps into your iPhone’s
capabilities such as its GPS, camera
or compass. But, unlike a regular website
loaded on your phone, an app is built to com-
municate directly with the available hardware
of the device, seamlessly receiving and organ-
ising information in a more useable way. A
good app can therefore make it easier for
your client to organise the way they use your
services – and to use them more often. For
example, the Waitrose app loads all of the
supermarket’s 18,000 product lines onto
your phone in a searchable format, enabling
you to compile a shopping list offline and
order its delivery when connected at the
touch of a button. Time Out Magazine’s app
lists events happening in your local area.
Other apps are business enterprises in their
own right, with one of the most popular in
the Apple store, the iFart app, enabling users
to play fart sounds of different design for the
reasonable price of $0.99.
Q.
Is my company’s product or service
suited to an app?
A.
Just because Apple smartphones are
all the rage, it doesn’t mean it is
worth investing in an app for your
company. It is important to have a clear
vision of the purpose and strategy of putting
out an app. Online media adviser Jag Singh
says there are two main kinds of apps: a mar-
ket differentiator that offers a unique service
(like the Waitrose app), and a brand enhancer
that offers subtly branded entertainment
(such as an iPhone game). Most apps fail to
use one of these basic strategies, however.
Singh says: “When an app is just a branded
RSS feed, that is when it tends to fail. There’s
about 150,000-200,000 apps in the Apple
apps store. 100,000 are just branded RSS
feeds.” There is no point, in other words, in
simply sending updates that users can organ-
ise for themselves on Twitter or Google
Reader. Instead, entrepreneurs should consid-
er first, whether their target market includes
a significant chunk of the UK’s 2m iPhone
users and, second, whether they can offer a
valuable service to those people – up-to-the-
minute updates for spread betters, for exam-
ple, or ultra-local information for when one is
out and about. Alternatively, if the aim is viral
marketing, it is important to have an original
and entertaining design. Ultimately, of course,
there is no accounting for whether your game
or gimmick catches on. As the iFart app
shows, sometimes the simplest ideas are the
most successful.
Q.
Where can I get one and how much
should it cost?
A.
Developing an app can cost anything
between £3,000 and £15,000,
depending on its level of complexity.
In addition, it’s important to remember the
cost of ongoing development to keep it com-
patible as the iPhone hardware and software
upgrades – and to decide in advance whether
to charge users for the upgrade.
Unfortunately, making an app is not really a
DIY project because it requires familiarity
with a specific web platform. Unlike the US,
the UK lacks a wealth
of large developers
who will knock them
together. Instead, the
market here consists
of numerous free-
lancers and small agen-
cies best found online.
Just make sure your
developer understands
your business aims as
well as the basic specifi-
cations. Try
www.mobileroadie.com.
Juliet Samuel
 Living
20
Sun, sea, safari,
wine... Welcome to
paradise on earth
This could be your last chance to grab a great
deal in South Africa, writes Zoe Strimpel
I
N 2005, South Africa’s property mar-
ket was the fastest growing in the
world. Although its rate of growth has
slowed, property in Africa’s most
developed economy is increasingly in hot
demand. This appetite has been fuelled in
part by the World Cup, but more sustain-
ably by the fact that at last, foreigners are
catching on to the staggeringly good stan-
dard of living available. The currency is also
a dream, with around ZAR 11 (rand) to the
pound.
But, warns Sally Wilson of Aylesford
International in Cape Town, the time to
catch a brilliant deal is now or never. “To be
honest, I think this is the last chance,” she
says, “because I think prices are going to
rise. The market is beginning to recover
and this is becoming a very desirable place
to live. Everyone who is here for the World
Cup is absolutely mad about South Africa.”
No wonder: it is the only country in the
world that combines sea with safari, big
city living with internationally renowned
wine-making, the rustic with the urban
and buzzy. That’s not to mention eight
world heritage sites and golfing expanses
that would make any fan of the sport weep
with joy.
If you’re looking to buy with business in
mind, Johannesburg is likely to be your
choice. The standard of living for those
with money can be off the charts in this
troubled city – prices are depressed, and
the cost of domestic help is low. Almost all
desirable properties take the form of secure
developments – security is a must in a city
with as high a level of crime as
Johannesburg, where muggings, carjack-
ing and even murder are widespread. For
Make the
most
of low mortgage rates
;fe¾k
d`jj
flk%
=`o
efn
n_`c\
iXk\j
Xi\
jk`cc
cfn%
<Xicp
i\gXpd\ek
Z_Xi^\j
Xggcp
]fi
k_\
[liXk`fe
f]
k_\
Æo\[
iXk\
g\i`f[%
PFLI
?FD<
D8P
9<
I<GFJJ<JJ<;
@=
PFL
;F
EFK
B<<G
LG
I<G8PD<EKJ
FE
PFLI
DFIK>8><
C`e\j
Xi\
fg\e
/Xd$/gd
Dfe[Xp$=i`[Xp#
0Xd$(gd
JXkli[Xpj%
K\c\g_fe\
ZXccj
dXp
Y\
i\Zfi[\[
Xe[&fi
dfe`kfi\[%
:Xccj
]ifd
X
9K
cXe[c`e\
Xi\
]i\\#
_fn\m\i
dfY`c\
gifm`[\ij
dXp
Z_Xi^\%
9i`kXee`X
`j
X
kiX[`e^
eXd\
f]
K_\
:f$fg\iXk`m\
9Xeb
gcZ
gXik
f]
K_\
:f$fg\iXk`m\
=`eXeZ`Xc
J\im`Z\j%


K_\
:f$fg\iXk`m\
9Xeb
gcZ%
I\^`jk\i\[
f]ÆZ\1
GF
9fo
('(#
(
9Xccffe
Jki\\k#
DXeZ_\jk\i#
D-'
+<G%
I\^`jk\i\[
`e
<e^cXe[
Xe[
NXc\j
Ef%
00'0*.%
K_\
:f$fg\iXk`m\
9Xeb
`j
Xlk_fi`j\[
Xe[
i\^lcXk\[
Yp
k_\
=`eXeZ`Xc
J\im`Z\j
8lk_fi`kp
Ef%
()(//, #
`j
X
d\dY\i
f]
k_\
=`eXeZ`Xc
FdYl[jdXe

j\im`Z\
Xe[
`j
c`Z\ej\[
Yp
k_\
F]ÆZ\
f]
=X`i
KiX[`e^
Ef%''-((' %
| South Africa
weekend escape, Johannesburg is close to
game farms which are great for safaris. If
you’re enticed by the region, consider the
more bucolic northern suburbs of the city:
ritzy Sandton (known as Africa’s richest
square mile), Bedfordview, Hyde Park, Park
Town and Melrose, where values are still
lower than on the Cape.
But Cape Town, the financial and cultur-
al heart of South Africa’s Western Cape, is a
more desirable city than Johannesburg for
most. The Cape’s magnificence arises from
its location between the Indian Ocean to
the south and the Atlantic to the west. The
variation in scenery is intoxicating, from
the wild Cape Agulhas coast, to the magnif-
icent Garden Route, and the sparse, sweep-
ing stretches of sand dotted with rocky
outcrops and fishing villages. As Wilson
says: “The Cape is one of the most beautiful
places on earth. We’ve got a lot of foreign-
ers who come for a visit and fall in love
with it, people who want to get away from
the misery of the English winter. And the
pound goes ten times further even here.”
Indeed: for £900,000 you can buy a man-
sion in super-desirable ocean-facing
Benguela, wine paradise Stellenbosch or
whale-watching heaven Hermanus, all of
which are within an hour and a half’s drive
from Cape Town. And £1m – which might
buy you a small property in central London
– gets you a magnificent palace in a similar-
ly beautiful spot either facing the Atlantic
or in wine country. “A lot of people say, ‘I’ve
got £250,000 or half a million pounds and I
want a different kind of lifestyle’. There’s
no question South Africa is still a well-kept
secret,” says Wilson. “It’s the best lifestyle in
the world.”
CITYA.M. 11 JUNE 2010
BENGUELA COVE LAGOON WINE ESTATE
Price: ZAR 13.95m (£1.24m)
WINE FARM, FRANSCHHOEK
Price: ZAR 43m (£3.85m)
Stunning contemporary property in a lagoon- This Huguenot farm was established in 1693, a
side development set amid vineyards, olive breathtaking 47-hectare property with views
over five mountain ranges, and Bordeaux grapes
groves and lavender fields. Sold fully furnished,
with automatic double garage and other state- planted over 16-hectares. Exquisitely appointed
home with 5 bedrooms, 3 bathrooms, guest cot-
of-the-art fixings, and advanced security.
Contact: Aylesford International Cape Town, tage, double garage and boutique wine cellar.
tel: +27 (0) 21 430 2141 Contact: Savills: www.savills.com/abroad
ST TROPEZ, HARBOUR ISLAND NETTLETON ROAD, CAPE TOWN
Price: ZAR 55m (£4.9m)
Price: ZAR 10.2m (£884,000)
Set in the Harbour Island Marina, 40 minutes from Striking use of design and breathtaking views are
the hallmarks of this Perutin-designed home
Cape Town, this plush and secure development
offers stunning open plan living areas with 3 bed- located in South Africa’s most sought-after
rooms, jacuzzi, private mooring and a terrace with address. This 4-bedroom, 4-bathroom home has
views of the marina, sea and mountains. Nearby been finished to world-class standards, with inte-
Gordon’s Bay beachfront buzzes with shops, restau- rior design by internationally renowned Cecile
rants and pubs, and there are top schools, shops and Boyd, and offers a rare north-facing aspect
and hospitals nearby. Contact: Hamptons overlooking a nature reserve.
International, tel: 020 79630625 Contact: Savills, www.savills.com/abroad
Mortgages
I`^_k
efn
`j
X
^i\Xk
k`d\
kf
kXb\
X[mXekX^\
f]
Zlii\ek
cfn

iXk\j
Xe[
dXb\
jli\
pfl
^\k
k_\
[\Xc
k_Xk¾j
i`^_k
]fi
pfl%
8k
9i`kXee`X
n\
_Xm\
X
Zfdg\k`k`m\
iXe^\
f]
Æo\[
iXk\

dfik^X^\
gif[lZkj#
k_Xk
Zflc[
jXm\
pfl
dfe\p%

DXb\
jli\
pfl
[fe¾k
d`jj
flk%


8ggcp
fec`e\#
`e
]lcc#
`e
aljk
*'
d`elk\j%

>f
kf
Yi`kXee`X%Zf%lb

:Xcc
lj
fe
'/'/
(,-
()'*

M`j`k
pfli
cfZXc
YiXeZ_
 VHDUFKLQJIRU7+(3(5)(&7+20("
$//<281((',6$/,77/($33/,&$7,21
IMAGINE YOUR
MARKETING SUITE NOW OPEN
VIEW
• LUXURY 1, 2, 3 BEDROOM
APARTMENTS AND PENTHOUSES
• STUNNING RIVER & WATERSIDE
VIEWS OVER CANARY WHARF
AND THE CITY
• SITUATED JUST 2 MINUTES WALK
FROM CANARY WHARF
• PRICES FROM £285,000
%(//,66,02
<RXFDQDOVRWDNHDGYDQWDJHRIRXUDZDUGZLQQLQJ
JOREDOUHVLGHQWLDOVHDUFKDWNQLJKWIUDQNFRXN
)RUPRUHLQIRUPDWLRQSOHDVHYLVLW
NQLJKWIUDQNFRPLSKRQH
L3KRQHLVDWUDGHPDUNRI$SSOH,QF
ACTUAL VIEW FROM
THE LANDMARK
• 30 AND 45 STOREY TOWER MARKETING SUITE OPEN DAILY.
PLEASE CONTACT US FOR FURTHER
• RESIDENTS’ GYMNASIUM AND INFORMATION AND LATEST AVAILABILITY.
24 HOUR CONCIERGE
•
•
SECURE CAR PARKING AVAILABLE
READY FOR OCCUPATION
020 7078 7981
SUMMER 2010 www.TheLandmark-E14.com
• SHOW APARTMENTS AVAILABLE
TO VIEW
22 Living | The Knowledge CITYA.M. 11 JUNE 2010

CURRENT MORTGAGE DEALS BY JESSICA MEAD INTERIORS

Q&A
Source: MoneySupermarket.com

LENDER FIXED/FLEXIBLE RATE UNTIL STANDARD RATE APR MAXIMUM LOAN

(PER CENT) (PER CENT) (PER CENT) TO VALUE (PER CENT)
Andrew Dunning
Yorkshire BS Flexible 2.39 To Jul 2012 4.99 4.7 75 HEAD DESIGNER,
APD INTERIORS
First Direct Repayment Flexible 2.29 Term 3.69 2.9 65
Market Harborough BS Flexible 2.48 2 years 5.49 5.1 75 Dear Andrew, I am thinking about
HSBC Special 70% LTV
NatWest Purchase
Flexible
Flexible
2.49
2.59
Term
To Aug 2012
3.94
4.00
2.7
4.0
70
60
Q. replacing my kitchen. How should
I go about doing this?

Santander Direct Fixed 2.90
Yorkshire BS Fixed 2.95
Post Office Fixed 75% LTV Fixed 3.89
Britannia Fixed 3.99
The Co-operative Bank Purchase Fixed 5.29
FOCUS ON: HARLOW, ESSEX
APPLEBY
Price: £885,000
A late Victorian detached house, this five
double bedroom property is ideal for fam-
ilies. It is set in grounds of 0.3 acres and
also has a detached coach house – perfect
for an annexe or a home office. There are
four reception rooms, including a separate
dining room and a conservatory. There is
ample room for parking at the front of the
property, although there is no garage.
Contact: Hetheringtons on 01992
440000, www.hetheringtons.co.uk
MAYFIELD COTTAGE
Price: £430,000
Those looking to escape the confines of
the capital will appreciate this property’s
semi-rural location and views over the
surrounding countryside. It has three bed-
rooms, of which one has an en-suite. The
rear garden is large and well maintained
and there is also a garage and driveway
at the front. There is potential to extend
the property should you wish to do so.
Contact: Bairstow Eves on 01279 626117,
www.bairstowevescountrywide.co.uk
To Aug 2012 4.24 4.2 60
To Jul 2012 4.99 4.8 75
To Jul 2013 0 3.8 75
To Aug 2015 4.24 4.3 75
To Aug 2020 4.24 5.8 75
BY JESSICA MEAD
NEWHALL
Price: £399,995 for a four-bedroom villa
This is a new development on the out-
skirts of Harlow. There are apartments,
courtyard homes and detached villas on
sale. The detached villas come complete
with balconies, rear gardens and an open-
plan downstairs living space. The kitchens
and bathrooms are all fully-fitted with
high-quality appliances. There are only
two detached villas left to buy.
Contact: Linden Homes on 01245
494849, www.lindenhomes.co.uk
THE THATCH
Price: £795,000
Those after a bit of period style will love
this Grade II-listed thatched cottage. The
property was completely refurbished in
2003, including a new thatched roof. It is
set in seven acres of grounds backing on
to open countryside, which include a sta-
bles and a fishing lake. There are four
bedrooms, three reception rooms and a
fitted kitchen/breakfast room. The prop-
erty comes with a self-contained annexe.
Contact: Hetheringtons on 01992
815314, www.hetheringtons.co.uk
A.
Before you get carried away with
designing your new kitchen, make a
detailed plan of the space – measure
everything, note where the water and power
points are. While you do not need to keep the
same layout exactly, you may be constrained
by space and should bear this in mind from
the start. It may be possible to rework other
rooms such as the living room or dining room
to provide extra space.
When planning your kitchen, ease of use is
paramount. Think about the work triangle –
that is, the location of your cooker, sink and
fridge. You will be constantly moving
between these so placing one of them too far
away from the others will just annoy you.
There are four main zones that you need to
incorporate: food preparation, cooking, serving
and washing up. But you don’t have to give
each of them equal importance. For example,
if you rarely prepare meals, then don’t devote
too much to the preparation area.
Think carefully about the style of the units
and don’t be tempted by the latest fashion
unless you are prepared to live with it for
years. High gloss has been very on trend but
will you still like red gloss units five years
down the line? White gloss is equally trendy
but has longevity. Plain wooden fronts can be
safer and the handles can always be changed
to liven up the look at a later date.
Deep drawers are more practical for storing
kitchen equipment than lots of cupboards.
Wall-to-floor cabinets that pull out are excel-
lent in small kitchens. Try to keep laundry
appliances out of the kitchen because this
frees up space and they can be quite noisy.
Choose a quiet dishwasher, such as Miele, if
the kitchen is next to the living room or if you
have an open-plan area.
Once you have planned the essentials, you
can start to think about the worktops, flooring
and choice of appliances. While you might love
the idea of a large cooker, would you use it?
Worktops can add a luxury touch so spend as
much as you can afford – granite or Corian are
good options. And be careful with wooden
floors, which get very slippery when wet so
choose tiles rather than wood.
Andrew Dunning is head designer at APD
Interiors, an interior design consultancy,
www.apdinteriors.com. Follow his design tips
on Twitter: @andrewdunning

ARE YOU COMFORTABLE?

SERVICED APARTMENTS VS HOTELS
Your home away from home for a week or a month, on business or leisure…
we offer more space and better value in the UK, Europe and Worldwide.

www.apartmentservice.com

To win a stay in one of our apartments… please call: 0870 080 2303 and quote ‘CityAM’
CITYA.M. 11 JUNE 2010
Honeypot homes
are luring buyers
up to Stanmore
Ditch any prejudices about the end of
London’s Tube lines, writes Juliet Samuel
S
TEPPING off the end of a Tube line
seems like entering a vacuum to
most Londoners. One imagines a
tangle of motorways, perhaps.
Some cows. A few car parks.
Visitors to Stanmore might be sur-
prised. Stanmore is a place whose name
anyone who regularly rides the Jubilee
line will have heard, but the town is
much more than a train depot. The town
itself dates back to Anglo Saxon times
and its centre still holds the ruins of a
fifteenth century brick church standing
in the yard of the sixteenth century
church that replaced it. The high street
is full of personality, dotted with local
pubs and restaurants rather than the
encroaching chains that characterise
many other satellite towns or urban
areas, and their patrons are drawn from
the town’s numerous thriving religious
communities, giving it a rural feel along-
side a cosmopolitan populace.
As a result, Stanmore has been popu-
lar with commuting populations for a
long time, but recently the scale and
convenience of the homes available has
received a boost. A brand new develop-
ment on Honeypot Lane, built by St
Edward Homes – a joint enterprise
between Berkeley Homes and the
Prudential – will offer nearly 800 high-
spec apartments to buyers interested in
enjoying a little more space and green-
SATISFIED
BUYER:
HEATHER
WALLINGTON
HEATHER Wallington doesn’t seem like
your typical development resident. As a
professional viola player, she has just taken
a job with the London Symphony
Orchestra. The job requires her to spend at
least half her time within easy distance of
the Barbican and Abbey Road recording
studios, so she and her husband have
invested in a one-bedroom lakeside apart-
Living | Stanmore 23
Stanmore Place, a new development by St Edward Homes, will offer buyers 750 high-spec apart-
ments around a huge manmade lake. Contact: 020 8952 2853, www.stedwardhomes.co.uk
ery than is available in central London,
but still within 45 minutes of the City
and 50 minutes of Canary Wharf.
The 15-acre complex has been in the
works for five years, with the developer’s
first move being the creation of a large
manmade lake at the entrance. Homes
run from £235,000 to £380,000 with
everything fully fitted – from patio fur-
niture to kitchen sink – and buyers can
choose from a range of interiors. Many
are already built, which means that you
aren’t just putting down a deposit on a
building site, and the development is
likely to be popular with parents: the
local area boasts top quality schools like
Haberdasher’s, Mill Hill, Alenham
School and Immanuel College.
Years after the lake was first excavated
and as St Edward Homes prepares its
first homes for move-in in the autumn,
the lake is now home to wild ducks and
bordered by reeds and grassy banks.
Berkley Homes’ Paul Vellone says the
green space is central to the idea that
building a development is no longer a
matter of churning out decent interiors:
“People don’t just buy an apartment any
more. They buy the environment in
which it sits.”
For Stanmore residents, that means
not just comfortable living rooms and
waterside balconies, but a locale with
character and charm.
ment on Honeypot Lane.
“I knew I needed to buy a home with-
in a commutable distance to central
London that also had convenient links to
the rest of the UK,” she says. “I will be
spending two weeks in Liverpool and
two in London so Stanmore Place is per-
fectly situated for me. I can hop onto
the M1 and be in Liverpool in 3.5 hours.”
The offer of 24-hour concierge service
and security in an affordable and pleas-
ant setting was also an attraction: “It
will have very low maintenance and it is
a lovely environment to live in.”
Wallington is one of 85 residents who
have already reserved their homes for
move-in in the autumn, having walked
around a fully made-up show home.
 Investment
24 CITYA.M. 11 JUNE 2010

| Personal Finance

Watch your
kids and their
nest eggs grow
government contributions to child trust
Even without child funds (CTFs) are scheduled to cease entire-
ly from 2011. New parents will have to find
trust funds, you can alternative methods of saving for their
children’s future. With interest rates at all-
still put money aside, time lows and inflation at a 19-year high of
5.3 per cent, it is safe to say that leaving Saving for their future save on behalf of children. You can either as a child trust fund. The savings plan gives
says Jessica Mead your money in cash is not a wise choice.
But if you invest a small amount of
will keep the smiles on
their faces
create a designated account, which is held
in an adult’s name and marked with the
exposure to the Witan Trust, which is glob-
ally diverse, and which reduces the risk.
money each month from the day the child child’s initials, or create what is known as In terms of fund selection, Darius

C
HILDREN are expensive but they
could be about to get even costlier.
Yesterday, universities minister
David Willetts strongly indicated
that university tuition fees will have to rise
from their current level of £3,225 a year to
reduce the burden on the taxpayer. Those
saving to help their children or grandchil-
dren through university will now have to
save even more money each month if they
want to reduce their kids’ debt burden.
Although parents can still top up their
existing accounts after 1 January 2011,
is born then you can end up with a size-
able nest egg when they turn 18.
According to the Hargreaves Lansdown
regular savings calculator, putting away
just £50 a month would give you £21,173
after 18 years, assuming an average annual
growth rate of 7 per cent.
Unfortunately, the existing process for
investing on behalf of a child is unneces-
sarily complex and lacks transparency, says
Adrian Lowcock, senior investment adviser
at Bestinvest, an independent financial
adviser. There are essentially two routes to
Picture: GETTY a bare trust. A bare trust can be more
advantageous because it gains automatic
recognition from the Inland Revenue
whereas a designated account is recog-
nised at its discretion.
James Frost, managing director of Witan
Investment Trust, which has a low cost sav-
ings scheme specifically designed for sav-
ing for children called the Jump Savings
Plan, says that while bare trusts do mitigate
the effect of capital gains tax, inheritance
tax and income tax, they are not entirely
tax free and are nowhere near as efficient
McDermott at Chelsea Financial Services
says that growth funds are ideal but
income funds can be as good provided you
re-invest the dividends. He adds: “You can
afford to take a bit more risk on a 20-year
investment, which means you can consid-
er exposure to emerging markets.”
But saving for your children is still noto-
riously unclear. Many, including Bestinvest
and Witan, are calling for a children’s ISA.
This would be simpler and more familiar
and would segregate the child’s assets. For
now, it’s a case of putting that money aside.

Free Seminar
on investing
in South Africa
Join FT columnist David Stevenson for a
comprehensive review of both the short and longer
term opportunities in South Africa and the wider
emerging markets. Rafaelle Lennox from RBS
will also explore how to take advantage of these
opportunities with RBS Listed Products.

Date: 16 June
Time: 5.30pm - 7.00pm
Location: 250 Bishopsgate, London

To register for this event, email

us at markets.uk@rbs.com or
visit www.rbs.co.uk/markets

The Royal Bank of Scotland plc (RBS) does not endorse any of the reports and other written materials provided by David Stevenson (the “Materials”) or any statements made by David Stevenson or Investors Intelligence (the “Statements”). RBS makes no warranty or representation
whatsoever, express or implied, as to the contents of the Materials or Statements. RBS shall not be liable (whether in negligence or otherwise) to any person for any error in the Materials or Statements and RBS shall not be under any obligation to advise any person of any error
therein. The views expressed in the Materials or Statements represent the opinions of David Stevenson and not RBS. By attending an event, you acknowledge and agree that RBS does not review or endorse and shall not be liable directly or indirectly, for the content of such
Materials or Statements or the use that others make of these Materials or Statements, nor for any damage, loss or offence caused or alleged to be caused by, or in connection with, the use of or reliance on any such Materials or Statements at such event. The Royal Bank of Scotland
plc, Registered in Scotland No 90312. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. RBS is authorised and regulated in the UK by the Financial Services Authority. RBS is an authorised agent of The Royal Bank of Scotland N.V. in certain jurisdictions.
 Lifestyle DISCOVERING 25
BORNEO
| Reviews IN MONDAY’S
TRAVEL SECTION

Hollywood gets the NYPD blues

A drama about
corrupt New York
cops is functional
rather than fantastic

Film
BROOKLYN’S FINEST
Cert: 18
hhhii
THIS gritty police drama sees director
Antoine Fuqua return to the familiar terri-
tory with which he made his name in
2001’s Training Day. Fuqua assembles an
impressive cast including Richard Gere,
Ethan Hawke and Don Cheadle, and fans of
The Wire will notice a few familiar faces
from the cast. But while Fuqua succeeds in
drawing big performances from his leads,
Brooklyn’s Finest falls short of its potential.
The plot follows Gere, Hawke and
Cheadle as rogue cops with personal agen-
das. Sal (Hawke) desperately needs to move
his expanding family to an expensive new
home and is increasingly tempted by seized
drug money. Tango (Cheadle), having lost
his identity to a three-year undercover
assignment, is offered the promotion that
will allow him his life back – but it requires
the betrayal of his best friend. Finally, Eddie
(Gere) waits for retirement, seeking refuge
in whiskey and sojourns with a young pros-
titute. Fuqua keeps the film alive by allow-
ing considerable moral ambiguity to seep
in – characters can be both sympathetic
and wrong.
Unfortunately, it’s hard not to feel deflat-
ed by the time the credits roll. Things move
towards a climactic pay-off, but it takes too
long to get there, and disappoints once it
does. Brooklyn’s Finest is functional
enough – but with the talents involved
you’d expect it to pack a lot more punch.
Rhys Griffiths
GREENBERG
Cert: 15
hhhhi
IN this Hollywood rom-com with indie sen-
sibilities, Ben Stiller stars as the neurotic
Roger Greenberg who, following a break-
down and a spell in hospital, returns to LA
to house-sit his brother’s home, intent on
doing nothing. There he is reunited with
old friends including a downbeat Rhys
Ifans, and starts an awkward relationship
with his brother’s long-suffering personal
assistant Florence, played by newcomer
(but, with any justice, soon to be huge)
Clockwise from Greta Gerwig. A far cry from the comic
above: Richard Gere in roles in Dodgeball and Meet The Parents
that made him a household name, Stiller
Brooklyn’s Finest;
Benedict here delivers a mature, sincere perform-
Cumberbatch and ance in what is an often funny and always
Faye Castellow in charming film.
After the Dance; King Gerwig’s Florence is a complete pleasure
Kong makes an to watch, vying for center stage with
impression at the Stiller’s difficult but sympathetic
Royal Academy’s Greenberg. A slow-burning meditation on
Summer Exhibition. the awkwardness of relationships, Noah
Baumbach’s film is a treat that’ll make a
great date movie, and works equally as a
simple slice of comforting escapism.
RG
Theatre
AFTER THE DANCE
National Theatre, Lyttleton
hhhii
Terence Rattigan’s play was originally
staged in 1939, and presciently suggests a
world slipping towards catastrophe. It is
the twilight of the Bright Young People,
the decadent buffoons who partied away
the inter-war years. Leading the way is
David Scott-Fowler (Benedict
Cumberbatch) a moneyed would-be histo-
rian in his late thirties. He lives in a vast
Mayfair flat with his wife, his butler, his
young cousin and secretary, and his
layabout parasite of a friend John.
They get drunk at parties by night and
waste their days in a haze of gossip and
hangovers. Anyone leaning towards seri-
ousness or sincerity is charged with being
“a bore”. Even David and his wife Joan con-
sider love an inconvenience, and happily
dismiss it. Only when David falls for win-
some 20-year-old Helen do deeply-buried
emotions come bubbling to the surface,
with tragic consequences.
It’s hard to sympathise with such horrid
characters, though Rattigan weaves in
sharp comedy to leaven their boorishness.
I wonder if they didn’t already seem
rather irrelevant targets in 1939 – the play
lasted just 60 performances on its first
staging, and has only rarely been seen
since. Now they seem like ghosts.
Nevertheless, Thea Sharrock’s elegant
production finds the humanity in these
people, particularly in one devastating
scene as Joan – a marvellous Nancy Carroll
– sits in shell-shocked silence as the
hideous futility of her life hits home.
Adrian Scarborough gives a splendid comic
turn as John, and in the lead role
Cumberbatch is fiercely charismatic.
Timothy Barber
Preview
ROYAL ACADEMY SUMMER
EXHIBITION
It might generally attract the opprobrium
of art critics, but the Royal Academy’s
Summer Exhibition, which opens next
week, remains a crowd favourite and a sea-
sonal institution. Featuring scores of
works selected by open submission, it’s
arguably the most diverse and colourful
art show in the calendar. While the quali-
ty may vary greatly, there are always
islands of excellence to be discovered.
There are also galleries of works by
Academicians and invited established
artists, who this year include Ed Ruscha,
Michael Craig-Martin and Tracey Emin.
As if to deflect any accusations of staid-
ness or stuffiness, the RA is even moving
with the times this year by creating an
iPhone application that explores the exhi-
bition room by room, including 150
images from the exhibition and video
interviews with artists. Download it from
iTunes. Better still, go along.
The Summer Exhibition, Royal Academy of Arts,
Burlington House, W1J 0BD. The exhibition runs
from 14 June-22 August, tickets £8.
www.royalacademy.org.uk. TB

ALSO OUT THIS WEEKEND

FILMS, MUSIC, GAMES

FILM DVD MUSIC GAMES

LETTERS TO JULIET Romantic drama set in pictur- A SINGLE MAN Colin Firth is on Oscar-nominated CHRISTINA AGUILERA The pop diva’s latest album SUPER MARIO GALAXY 2 (WII) Sequel for the Wii
esque Italy, with Amanda Seyfried. form in Tom Ford’s super-stylish drama. is called Bionic. version of Nintendo’s Italian plumbing mascot.

BLACK DEATH Medieval twaddle – you know, A PROPHET Magnificent, hard-hitting French drama THE DRUMS Eponymous debut album from the KING ARTHUR, THE ROLE-PLAYING WARGAME
swords, mud, plague – with Sean Bean. set in a tough prison. fashionable New York indie band. (PC) If ever the title of a game said it all, this is it.
H2OIL Documentary about the oil industry. Did THE WOLFMAN Benicio del Torro and Anthony U2 Live album from the world’s biggest band with a NAVAL ASSAULT: THE KILLING TIDE (X360)
someone say “timely”? Hopkins in a Hammer-style horror film. singer with a bad back, 360° At The Rose Bowl. Submarine-based war game.
 26 Lifestyle | TV& Games CITYA.M. 11 JUNE 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm Match of the Day Live:
2010 FIFA World Cup: Uruguay
v France (Kick-off 7.30pm).
10pm BBC News
10.25pm Regional News
10.35pm CHOICE Friday Night
with Jonathan Ross:
11.35pm The National Lottery
Friday Night Draws:
11.45pm FILM Extreme
Measures: Thriller, starring
Hugh Grant 1996; Weatherview
1.40am Sign Zone: The Virtual
Revolution 2.40am Sign Zone:
High Street Dreams 3.40am
Sign Zone: Great British Menu:
4.40am-6am BBC News
6pm Eggheads:
6.30pm Great British
Railway Journeys:
7pm FILM Grow Your Own:
British comedy, starring
Benedict Wong. 2007.
8.30pm Gardeners’ World:
9pm When Romeo Met Juliet:
10pm Match of the Day: 2010
FIFA World Cup:
10.30pm Newsnight:
11pm The Review
Show: Weather
11.45pm FILM It’s All Gone
Pete Tong: Comedy drama,
starring Paul Kaye. 2004.
1.15am FILM Nirvana 1996.
2.45am I’m in a Rock ‘n’ Roll Band!
4.45am-6am Close
6pm London Tonight
6.30pm ITV News
7pm Emmerdale:
7.30pm Coronation Street:
8pm Dickinson’s Real Deal:
David Dickinson visits
Peterborough.
8.30pm Coronation Street:
9pm Taggart
10pm ITV News at Ten
10.30pm London News
10.35pm World Cup Highlights:
11.35pm FILM The Sting:
Depression-era comedy drama,
starring Robert Redford and
Paul Newman. 1973.
1.50am The Zone; ITV News
Headlines 3.55am Touching Evil
4.45am-5.30am ITV Nightscreen
6pm The Simpsons: 6pm Home and Away:
6.30pm Hollyoaks: 6.25pm Live from Studio
7pm Channel 4 News Five: Topical reports.
7.30pm Unreported World: 7.30pm Zoo Days:
8pm Glee: Five News Update
9pm Big Brother: 8pm Sea Patrol UK;
10pm CHOICE 8 Out of 10 Five News at 9
Cats World Cup Special 9pm CHOICE The Mentalist:
10.50pm The Ricky Gervais The new CBI boss is unhappy
Show: with Jane’s behaviour.
11.25pm The Ricky Gervais Aunjanue Ellis stars. FRIDAY NIGHT WITH JONATHAN
Show: 10pm CSI: NY: ROSS BBC1, 10.35PM
12am Music on 4: Mark Ronson: The host is joined by actress Katherine
Video Exclusive 12.05am Music on 10.55pm Grey’s Anatomy:
4: CTRL Student Tour 12.20am 11.55pm Cops in Crisis: Heigl, who talks about her latest role in
Music on 4: Mercury Prize Sessions 12.15am SuperCasino action comedy film Killers, which is
12.40am Music on 4: The Best of 4.05am Motorsport Mundial released later this month.
Music Rooms 1.25am Big Brother: 4.30am Wildlife SOS 4.55am Rough
Live 3.35am This Week’s 4Music Guide to Islands 5.10am Neighbours
Top 20 5.25am-6.10am Countdown 5.35am-6am Home and Away

SKY SPORTS 1 BRITISH EUROSPORT Minds 10pm CSI: Miami 11pm E4 2.30am How It’s Made 3am
SATELLITE & CABLE

7pm World Cup Report 7.30pm
Live Super League 10pm
World Cup Report 10.30pm
Football’s Greatest 11pm Time
of Our Lives 12am Football’s
Greatest 12.30am Super
League 2am Football’s Greatest
2.30am Friday Fight Night
4am Super League 5.30am-
6am Football’s Greatest
SKY SPORTS 2
7pm Live Twenty20 Cup Cricket
10.30pm Live Friday Fight
Night 12am World Sport
12.30am Twenty20 Cup Cricket
2.30am NFL: Total Access
3.30am World Sport 4am-
6am Twenty20 Cup Cricket
SKY SPORTS 3
7pm Tight Lines 8pm Live PGA
Tour Golf 11pm Curtis Cup Golf
1am European Tour Golf
2.30am Golfing World 3.30am
Tight Lines 4.30am Ocean
Ride 5am-6am Golfing World
7pm Eurosport Flash 7.05pm
Soccer City Flash 7.15pm
Cycling 8.30pm Triathlon
9.30pm Ten Pin Bowling
10.15pm euroCRASH! 10.25pm
Eurosport Flash 10.30pm
Soccer City 11pm Eurosport
Flash 11.05pm Le Mans 24
Minutes 11.35pm Rallying
12.05am-12.35am Soccer City
ESPN
5.30pm NBA 7.30pm
Australian Rules Football 10pm
The Ultimate Fighter 11pm
South Africa Nightly 11.30pm
Ultimate Fighting Championship
12.30am Press Pass 2010 1am
UFC All Access 1.30am Friday
Night Fights 3.30am MMA
Live 4.15am ESPN Boxing:
Short Stories 4.30am-5.30am
The Ultimate Fighter
LIVING
7pm Ghost Whisperer 8pm
Passport Patrol 9pm Criminal
Criminal Minds 12am CSI:
Crime Scene Investigation
2am Exposed: Catherine Zeta-
Jones 3am The Fresh Prince of
Bel-Air 3.50am Maury
4.40am Nothing to Declare
5.30am-6am Home Shopping
BBC THREE
7pm Top Gear: An alternative
to the modern police car.
8.05pm Walking with Beasts
9pm Doctor Who: Vincent Van
Gogh battles an alien only he
can see. 9.50pm Doctor Who
Confidential 10pm Lee Nelson’s
Well Good Show 10.30pm
Special 1 TV 10.35pm
England’s Worst Ever Football
Team 12.05am Family Guy
12.50am Lee Nelson’s Well
Good Show 1.20am Special 1
TV 1.25am Match of the Day:
2010 FIFA World Cup 3.05am
England’s Worst Ever Football
Team 4.35am-5.05am The
Real Hustle Undercover
7pm Hollyoaks 7.30pm My Extreme Engineering 3.50am
Name Is Earl 7.55pm Friends Man on Earth 4.40am The
9pm Gok’s Fashion Fix 10pm Falklands War 5.30am-6am
Supersize vs Superskinny How Does That Work?
11.10pm Wife Swap: The Last
Episode 12.15am-6am Big
DISCOVERY HOME & 8 OUT OF 10 CATS WORLD CUP
Brother: Live HEALTH SPECIAL CHANNEL4, 10PM
7pm Baby Tales 8pm Hospital Jimmy Carr hosts an edition marking
HISTORY 9pm The Mummy Diaries the beginning of the 2010 tournament,
7pm How the Earth Was Made 10pm Last Chance Surgery with guests Peter Shilton, Helen
8pm How London Was Built 11pm Mystery Diagnosis 12am Chamberlain and Jack Whitehall.
9pm How Britain Was Built The Mummy Diaries 1am Last
10pm Earthquake Italy 11pm Chance Surgery 2am Mystery
How the Earth Was Made Diagnosis 3am Hospital 4am
12am How Britain Was Built Bringing Home Baby 5am-6am
1am Ancient Apocalypse 2am Student Midwives
Titanic’s Final Moments 4am-
5am Hell’s Battlefield SKY1
7pm The Simpsons 8pm Oops
DISCOVERY TV 9pm Bones: Guest starring
8pm How Do They Do It? Cyndi Lauper. 11pm A League
8.30pm How It’s Made 9pm of Their Own 12am UK Border THE MENTALIST
Mystery Investigator: Olly Force 1am Road Wars 2.40am FIVE, 9PM
Steeds 10pm Predator X 24 3.30am Tru Calling 4.20am The discovery of a dead English tutor
12am Deadliest Catch 1am Celebrity Parents’ SOS 4.45am leads the team to uncover a plot to
Bear Grylls: Born Survivor Oops TV 5.10am-6am Sell Me steal a priceless artefact from the
2am How Do They Do It? the Answer British Museum. With Aunjanue Ellis.

COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
    

SUDOKU KAKURO
13 21 15 3 9 27
10 8
45  
32
Place the numbers from 1 to 9 in each empty cell so that each 11 21 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 23 35
26
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 6 4 6
  
above or to the left of it. 15 12
You can only use the digits 1-9 30 4 
   and you must not use the
14 16 16
45  
same digit twice in a block.
   The same digit may occur 17 25 
29 25 10
  more than once in a row or
column, but it must be in a
12
21
5
20
12
  
15 7
    separate block.
10
39
    16 28
 

  
 
  
 
 ACROSS DOWN
1 Country, capital Nairobi (5) 2 Stretch (3)
WORDWHEEL I A
4 Afghanistan’s
capital city (5)
7 Lower limbs (4)
3 Face veil worn by
Muslim women (7)
4 Considerate (4)
Using only the letters in the Wordwheel, you have
 ten minutes to find as many words as possible,
A L 8 Breathes noisily in sleep (6) 5 Series of lines
9 Listen carefully (4) containing price
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters N 10 Former name of
information (7)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
O T Thailand (4)
12 Moon about (4)
6 Hearers (9)
7 Final irritation that
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
E R 13 Gathered or brought
stretches one’s
patience beyond
together (7)
QUICK CROSSWORD 8 9 4 7 5 6 3 2 14 Channel Island (4)
the limit (coll) (4,5)

- $ 1 8 6 6 $ & . 6
4 5 2 1 9 8 5 7 SUDOKU          15 Simple, bare (4)
8 Isolate (7)
3 1 9 4          11 Advent (7)
$ , + ( 1 5 (
9 7 6 8 1 3 2 8 16 Inactive (4)
1 8 % , $ ( 2 / '          12 Souvenir (7)
( 6 . < ( 1 $ 6 8 3 2 4 5 7 1 9
         17 Be in awe of (6)
16 Coloured part
7 , 3 6 <
/ 8
5 $ < 2 1
& 5
9 8 6
6 2 9 1 7 3 8 5 4
WORDWHEEL          18 Persistently scolds (4) of the eye (4)
6 . , ( 6 % 8 < ( 5          20 Country called Cymru in
& 0 7 $ 8 7 2
9 6 8 4 2 5 3 1 The nine-letter words          19 Oxygen, for
1 6 9 7 its own language (5)
2 5 % , ' ( $ / 7
2 9 7 8 4 7 2 9
were LENGTHIER and          example (3)
2 8 5 $ * & 2
LIGHTENER         
21 Long-necked typically
3 5 ( 6 6 ( 1 7 ( 5 1 3 4 2 3 6 1 7
gregarious aquatic bird (5)
 Punter
28 CITYA.M. 11 JUNE 2010

| Racing

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THIS WEEKEND’S RACING ACTION

Cosgrave can
maintain 100%
record on gutsy
Invincible Lad
W
ITH just a handful of days to go still pays the same as a 2/1 winner at the
until the start of this year’s Cheltenham Festival and I hope I have
Royal Ascot meeting, this week- picked a few likely sorts to help swell the
end's racing is definitely the coffers ahead of next Tuesday.
calm before the storm. That said, a 2/1 Let’s start off at Sandown this after-
winner at Southwell on a wet Wednesday noon where Richard Hannon’s BUNCE

can break his duck at the fourth time of
asking in the 2.10pm contest. He has
bumped into a couple of really useful
types in his last two outings and with the
benefit of experience is expected to get
the job done today. The biggest danger
will surely be the Mick Channon trained
Extra Power and he looks the one for the
forecast.
INVINCIBLE LAD looked an unlucky
loser at Sandown last week when checked
in his run on a handful of occasions. The
six-year-old was eventually forced to
switch wide under Richard Hughes and
finished with a rattle to snatch fourth. He
will be having his 31st career start at York
this afternoon and will be looking for his
eighth win. Pat Cosgrave has ridden the
horse four times and won on each occa-
sion. He takes over in the saddle again
today which is an extremely eye-catching
jockey booking to say the least.
Regular followers of this column will
remember I put up PLUME for the 1000
Guineas a couple of months ago, so it’s
POINTERS...
BUNCE
INVINCIBLE LAD e/w
PLUME
REVERED
CYFLYMDER e/w
STRONG SUIT 7/2 Coventry Stakes (Ascot Tuesday)
Strong Suit can give frightening to think we can back her in
Hannon and Hughes handicap company this evening in
back-to-back Goodwood’s finale at 9.00pm. She will rel-
Coventry wins at ish the drop back to six furlongs and still
Royal Ascot looks thrown in off a mark of just 82. She
should make no mistake and looks the bet
Picture: P.A. of the weekend.
Saturday’s racing at York looks impossi-
ble and I’ll be leaving it well alone.
Instead, I’m concentrating on Sandown’s
card and will be having a few quid on Sir
Michael Stoute’s REVERED in the opening
race. She looked really smart when win-
ning at Newmarket last backend and she
doesn’t look too badly treated on her
handicap debut.
Later on the same card, I am interested
in CYFLYMDER in the 2.55pm. The four-
year-old showed that he is returning to the
form that saw him win twice at Sandown
last summer when running on late at
Goodwood. He can play a part at what
should be an attractive each-way price.
Looking ahead to Ascot next week and it
may pay to take the 7/2 currently available
with Stan James about STRONG SUIT in
the Coventry Stakes on Tuesday. We put
up Canford Cliffs to win this race 12
Sandown 2.10pm (today) months ago and Strong Suit hails from
York 4.35pm (today) the same all-conquering Richard Hannon
Goodwood 9.00pm (today) stable. He made a really impressive debut
Sandown 1.45pm (tomorrow) at Newbury last month and is apparently
Sandown 2.55pm (tomorrow) the best of the stable’s hugely talented
bunch of two-year-olds.

INSIDER
the

oddschecker.com
All the latest odds and £100s of bookie freebets

O
LE, Ole, Ole, Ole, Ole, Ole, the
World Cup starts today. I’ve
been growing my nails getting
ready for the penalty shoot
outs and red cards. It’s time for a lot
of beer and a huge amount of highs
and lows. I’m sure England will do
well and I will be backing them in run-
ning either during or after tomorrow’s
first group match. I reckon we could
be in for a torrid evening tomorrow
and for that reason I reckon the 25/1
with Skybet on a full-time score of 2-
2 is the bet, at least then even if the
Americans have a good 90 minutes
we can still celebrate with a pile of
Krugerrand. Of course the odds may
be different later today or tomorrow
so check out www.oddschecker.com
for the best price.
Racing is in the eye-of-a-storm this
weekend. Last week we saw a very
convincing winner of the Derby in
Workforce, whilst next week is Royal
Ascot. It’s normally a good idea to
have a look around for a top stable
sending out a two-year-old or two
under the radar for a quick bit of
experience. Usually a runner from the
Stoute, Godolphin, Jarvis or
Johnston team will have a pipe open-
er before coming back to run well
throughout July and August in group
races. While I’m watching out for
their runners I will be having a few
shillings on WATER ICE (2%) tomor-
row in the 2.10pm at Leicester and
today HEART OF HEARTS (5%) in
the 8.05pm at Chepstow.
CITYA.M. 11 JUNE 2010
FOOTBALL TRADER BEN CLEMINSON TAKES A LOOK AT ENGLAND’S OPENING
GROUP GAME
England could stutter
against USA tomorrow
ENGLAND
USA
TOMORROW – 7.30PM ITV1
THE tension is building, the car flags are
flying and the red and white face paint is
out. World Cup 2010 is nearly here and,
as always, every England fan is expecting
a first major trophy since 1966. The boys
have been given a relatively easy group
and will be feeling confident of reaching
the semi-finals, where they are set to
meet Brazil.
There is no doubt that England’s
biggest test in Group C is against the USA
in Rustenburg tomorrow. The Americans
are a much improved side nowadays and
I’m sure head coach Bob Bradley will
have his troops fired up for this one. They
only narrowly missed out on winning
last year’s Confederations Cup, beating
Spain in the semi-final before conceding
a late goal to lose 3-2 against Brazil.
Fabio Capello will obviously want to
win the group and avoid Germany in the
second round, but we’ve seen in previous
tournaments that England don’t always
SOUTH AFRICA
MEXICO
TODAY – 3.00PM ITV1
THE bookmakers are finding it very diffi-
cult to split South Africa and Mexico in
the opening game of the tournament
which may surprise a few as the Mexicans
are ranked 73 places above Bafana Bafana
in the FIFA rankings. These two sides have
Punter | Football Trader
come firing out of the blocks. In 2006,
they beat Paraguay 1-0 in the opening
game, drew 1-1 against Sweden in 2002,
won 2-0 against Tunisia in 1998 and drew
1-1 against Ireland in Italia ’90. The key
thing is not to lose the first game and I
think the Three Lions are too short at 4/9
with William Hill.
Landon Donovan is the USA’s star man
and he showed in his brief stint in the
Premier League with Everton just what a
decent player he is. Add Fulham’s Clint
Dempsey, Hull’s former striker Jozy
Altidore and Everton’s Tim Howard to
the equation and they will have a good
idea of England’s strengths and weak-
nesses. They are certainly no whipping
boys and the draw at 10/3 with
Bodog.co.uk looks good value.
I am also interested to see that
Sporting Index are quoting goals at 2.6-
2.8 in this game. The USA have been
involved in some high scoring encoun-
ters in the past few months – all of their
last seven have produced a minimum of
three goals, while the same is true in
England’s last three matches. However,
none of these have been competitive and
it tends to be a very different story at the
World Cup. We have already seen that all
of England’s last four opening matches at
the World Cup have been under the cur-
met twice in their history, with one win
apiece, the last being a 2-1 success for
South Africa in Los Angeles in 2005.
Mexico have won their last two friend-
lies, including a victory against world
champions Italy last time. They have made
it to the last 16 in all of the last four tour-
naments, so will be feeling confident of
qualifying. However, they have to face
South Africa in their back yard and we all
know what an electric atmosphere it’s
going to be in Soccer City this afternoon.
The hosts are unbeaten in their last 11
internationals, including recent wins
against Denmark and Colombia, and I’m
29
Bodog Morris dancers and
cheerleaders outside Parliament
in preparation for tomorrow’s
big game
Photo: Frances Leader/
ACTION IMAGES
rent spread, so there appears to be little
downside in selling at 2.6.
On a similar theory, the Sporting
Index traders have England as 1.2-1.4
supremacy favourites and that has to be a
sell. Their preparation hasn’t been ideal
with Rio Ferdinand’s injury and there
will be a lot of pressure on John Terry,
Ledley King and, of course, Wayne
Rooney. I’m not saying England can’t win
this game, but I’d be very surprised if
they won by more than a goal and the
sell at 1.2 means we still have that on our
side.
Finally, make sure to sign up for
Sporting Index and CityA.M.’s £10,000
Going For Goal Minutes World Cup fanta-
sy football game. All you have to do is
pick four strikers, four midfielders and
two defenders and you get points accord-
ing to when your players score in the
game. The later they score, the more
points you accrue. And don’t forget that
it’s totally free to enter – visit
www.goingforgoalminutes.com
POINTERS...
Match to be drawn at 10/3 with Bodog.co.uk
1-1 correct scoreline at 8/1 on Betdaq
Sell total goals at 2.6 with Sporting Index
Sell England supremacy at 1.2 with Sporting Index
confident they can get their tournament
off to a flyer with a win against Mexico.
They are 15/8 with Paddy Power and home
advantage could just give them the edge
in this one. I don’t see it being a high scor-
ing game and neither do the Sporting
Index traders who are offering a 2.15-2.35
goals spread. I’ll probably leave that alone,
but will have a small bet on the 1-0 score-
line at 7/1 on Betdaq.
POINTERS...
South Africa to win at 15/8 with Paddy Power
South Africa to win 1-0 at 7/1 on Betdaq
 Sport
30
1 point spread on Wall Street
Every Point Counts

New boy Hape is

We can’t say fairer than that. It’s a special
one-off deal with a 1 point spread on Wall
We also offer a 1 Point Spread on all of these:
inspired by Robbo
Street for the duration of the World Cup.
1 FTSE 100
EUR/USD
USD/JPY
CAC

▲
RUGBY UNION
POINT DAX AUD/USD
Now that’s a big deal on a very BY JON COUCH
small spread.
CASHBACK OFFER: RUGBY League convert Shontayne
So kick off your trading with WorldSpreads For every new account opened WorldSpreads Hape says he will be looking to
and enjoy 1 point spread trading on Wall are offering up to £300 cashback on any Jason Robinson for inspiration
Street from June 11th ’til July 9th. losses made in the first 8 weeks.* when he makes his Test debut for
England in tomorrow’s Cook Cup
Spread betting is a leveraged product. It carries a high level of risk to your capital and, as it clash with Australia in Perth.
is possible to lose more than your initial investment, it may not be suitable for all investors. The former New Zealand inter-
Therefore, ensure you understand the risks involved and seek independent advice if necessary. national becomes the third ex-Kiwi
WorldSpreads Ltd is authorised and regulated in the UK by the Financial Services Authority. to play Test rugby for England,
*Terms and conditions apply. See website for details. although his two predecessors,
Henry Paul and Lesley Vainikolo
both failed to make the grade.
In contrast, World Cup-winner
Robinson won 51 caps for England
and five for the British Lions, mak-
www.worldspreads.com/worldcup ing him, arguably, the most suc-
The home of the 1 point spread. cessful cross-code recruits of all
time.
Now Hape, who won 14 caps for
the Kiwis before switching codes to
join Bath in 2008, wants to follow

I NOT
in the footsteps of the now-retired
wing. “I look to guys like Jason Hape is the third ex-Kiwi to win a Test cap for England. Picture: GETTY
Robinson who switched codes and
went on to do great things,” Hape tre to replace Riki Flutey in a side ENGLAND XV | vs AUSTRALIA
said. “I look to him for inspiration. which shows four changes from the

MISS A
I have looked at what he achieved
and got out of the game.
“Being picked for England is one
of the highest honours and great-
est things any rugby player in
one which impressed against France
in the final Six Nations match.
Toby Flood keeps the No10 shirt
with Jonny Wilkinson settling for a
place on the bench, while Danny
15 Ben Foden; 14 Mark Cueto, 13 Mike
Tindall, 12 Shontayne Hape, 11 Chris
Ashton; 10 Toby Flood, 9 Danny Care; 1
Tim Payne, 2 Steve Thompson, 3 Dan Cole,

SINGLE
England can do. I am really chuffed
and honoured. It is a great feeling
for myself and for my family and
friends back in England. I am really
looking forward to it.”
Care continues to hold off the atten-
tion of Ben Youngs at scrum-half.
Hooker Steve Thompson and lock
Tom Palmer both start, while
Leicester flanker Tom Croft also
4 Simon Shaw, 5 Tom Palmer, 6 Tom Croft,
7 Lewis Moody (capt), 8 Nick Easter.
Replacements: George Chuter, David
Wilson, Courtney Lawes, James Haskell,
Ben Youngs, Jonny Wilkinson, Mathew Tait

MATCH.
Hape, 29, comes in at inside cen- comes back in.

DOWNLOAD ALL THE GAMES IN SOUTH AFRICA!

Strauss takes captaincy stranglehold
With every KO time & TV channel, Auto Updates
on latest odds, later rounds and match results. arena and promote Twenty20 cap- Kieswetter’s fast runs at the top of
▲

CRICKET
BY JON COUCH
PLUS SPECIAL OFFERS FOR ALL KEY MATCHES
NATIONAL selector Geoff Miller
insisted there was “never any
doubt” that Andrew Strauss would
continue as England’s one-day cap-
tain despite missing out the World
Twenty20 triumph.
Strauss was confirmed as skipper
for the five-match series with
Australia this month, fronting a 13-
man squad, which includes a sur-
prise selection for back-in-favour
Ian Bell and the addition of big-hit-
ting wicketkeeper Craig Kieswetter
at the expense of Matt Prior.
It was suggested the selectors
may opt to keep Strauss for the Test
tain Paul Collingwood to skipper
the 50-over side after leading
the team to success in the
Caribbean last month.
But Miller insists Strauss is
still the number one choice for
the one-day role, both on
and off the field.
“From a quality point
of view, he is a top-class
50-over batsman – so
there was never any
doubt,” he said. “I think I
was misinterpreted earlier
in the week when I said we
are discussing all points. He
is definitely our 50-over cap-
tain.”
the order gave him the nod over
Prior for the first time in the 50-over
format, while Bell is preferred to
Ravi Bopara after averaging over 56
for Warwickshire in their
Clydesdale Bank 40 campaign so
far this season.
Fit-again Tim Bresnan is also
recalled at the expense of
Ajmal Shahzad.
SQUAD: Andrew Strauss (cap-
tain), James Anderson, Tim
Bresnan, Ian Bell, Stuart
Broad, Paul Collingwood,
Craig Kieswetter, Eoin
Morgan, Kevin Pietersen, Ryan
Sidebottom, Graeme Swann, Luke
Wright, Michael Yardy.

WORLD CUP NEWS | IN BRIEF

Italy dealt a Pirlo blow
ITALY suffered a setback after influen-
tial midfielder Andrea Pirlo was ruled
out of his country’s opening two games
against Paraguay and New Zealand
with a calf strain.
The 31-year-old, named man-of-the-
match in the 2006 final against France,
will be replaced in the Azzurri side by
Fiorentina playmaker Riccardo
Montolivo.
Pirlo is hoping to return in time for
William Hill rules apply. Over 18s only. OUTLOOK® is a registered trademark of the Microsoft Corporation. the final Group F match against
FOR ADVICE & INFORMATION VISIT WWW.GAMBLEAWARE.CO.UK Slovakia on 24 June.
Spain boosted by Iniesta
FAVOURITES Spain have been boosted
by the news that Andreas Iniesta’s
thigh injury is not as bad as first feared.
The Barcelona midfielder had a scan
on his right thigh on Wednesday after
pulling up in the 6-0 warm-up win over
Poland the previous night.
But only slight swelling was detected
and it is hoped Iniesta could play
against Switzerland on Wednesday.
Midfield partner Xavi said: “He does-
n’t have a serious injury and that’s fan-
tastic news.”
Sven’s hopeful on Drogba
SVEN-GORAN ERIKSSON says star
striker and captain Didier Drogba could
be fit for the Ivory Coast’s World Cup
opener against Portugal on Tuesday.
The Chelsea hitman broke his arm in
a warm-up match but has recovered in
double quick time and could return for
the Elephants sooner rather than later.
Coach Eriksson said: “If the game
had been today or tomorrow he would-
n’t have been able to play, but there are
still a few days. He might play against
Portugal.”
CITYA.M. 11 JUNE 2010 Sport 31

Hotshot Rooney is our City slicker

Square Mile back England striker to shine, but Brazil remain hot favourites
England to World Cup glory – only 14 final. Only a third, however (8%), reck-
WORLD CUP per cent believe Fabio Capello’s men on he can take them all the way.
2010 can end the nation’s 44 years of hurt. While the optimistic few are throw-
BY JON COUCH Brazil are the best backed as they ing their weight behind England, the
go in search of a sixth Jules Rimet tro- vast majority, 46 per cent, say
THE CITY are backing Wayne Rooney phy. Indeed, 44 per cent of City work- Capello’s men will fall in the semi-
to be a hit at this World Cup. ers believe the Samba boys will prove finals with another 14 per cent back-
BORIS JOHNSON NICK ANSTEE No fewer than 32 per cent believe too strong, while European champi- ing them to reach the showpiece at
MAYOR OF LONDON MAYOR OF THE the England striker will follow in the ons Spain are also fancied with 28 per Soccer City on 11 July, only to fall at
CITY OF LONDON footsteps of Gary Lineker in 1986 and cent of the vote. the final hurdle.
claim the Golden Boot in South Africa. Argentina are also hard to dismiss, Here’s how the City, and various
Winners: England Winners: Brazil But the majority can’t see the with 16 per cent backing Diego leading executives, see the tourna-
Runners up: USA Runners up: England Manchester United front man firing Maradona to lead his side into the ment unfolding.
Golden Boot: Wayne Rooney Golden Boot: David Villa
And England...? Winners And England...? Runners-up

WINNERS RUNNERS UP
Holland Germany Holland
Argentina 2% Italy 4%
2% 8%
8% Brazil Spain
England 44% 36%
16%

1st 2nd
England
14%

Argentina Brazil
Spain 16% 22%
28%

GOLDEN BOOT ENGLAND

Fabiano
2% Higuain Runners up
Van Persie 2% 14% Semi-finals
6% 46%
Torres Rooney
10% 34%

Winners
16%

Villa
24%
Messi Quarter finals 24%
22%

LORD DIGBY JONES HENK POTTS

FORMER HEAD OF THE CBI EQUITY STRATEGIST
& GOVERNMENT ADVISOR BARCLAYS WEALTH
Winners: Brazil Winners: Holland

e ad
Runners up: Spain Runners up: Spain
Golden Boot: Lionel Messi Golden Boot: Fernando Torres
And England...? Semi-finals And England...? Semi-finals

DON’T MISS
MONDAY’S
EXPERT VIEW
Club Level at Arsenal
WITH Whether you want to entertain clients or reward your own staff,

RAY Club Level is a fantastic combination of both world-class facilities

and football. Join the waiting list today for the quickest route to

PARLOUR season tickets when they become available.

Text Club and your name to 60505 T: 0845 262 0001

E: clublevel@arsenal.co.uk www.arsenal.com/clublevel
 32 Sport CITYA.M. 11 JUNE 2010

Results
CRICKET
FRIENDS PROVIDENT T20 - SOUTH DIVISION
Surrey v Essex
BRIT INSURANCE OVAL: Essex (2pts) won by 9 runs
Mandela has
sights set on
ESSEX
M Pettini run out ..............................................................................................3
R Bopara c Davies b Dernbach ................................................................12
G Flower c Symonds b Schofield............................................................24
R ten Doeschate lbw Schofield................................................................10
S Styris c Schofield b Hamilton-Brown ..............................................17
M Walker c Ramprakash b Hamilton-Brown......................................8
J Foster c Symonds b Tremlett..................................................................6

the big stage

J Mickleburgh c Davies b Dernbach......................................................14
D Masters not out..........................................................................................10
D Kaneria not out ............................................................................................9
B4 lb3 w1..................................................................................................8
Total (8 wkts., 20 overs) ..............................................................121
Fall: 4, 20, 43, 56, 71, 77, 85, 110.
Bowling: Tremlett 4-0-20-1, Nel 4-1-16-0, Dernbach 4-0-22-2,
Schofield 4-0-22-2, Symonds 1-0-7-0, Hamilton-Brown 3-0-27-2.
SURREY
R Hamilton-Brown c ten Doeschate b Masters..................................5
S Davies b Wright..........................................................................................15
M Ramprakash run out ..............................................................................24
A Symonds b Bopara......................................................................................7
WORLD CUP arrive to greet the capacity crowd at
the end of the opening ceremony and
Y Khan lbw Bopara ........................................................................................0
U Afzaal c Bopara b Styris ........................................................................12
2010 moments before the 3pm kick-off.
M Spriegel not out........................................................................................22 BY JON COUCH But his grandson Mandla Mandela
C Schofield c Mickleburgh b Bopara ....................................................14 stressed his health will be monitored
A Nel not out ......................................................................................................2 NELSON MANDELA is determined to before any decision is made on his
B5 lb4 w2................................................................................................11 climb off his sick bed and make a attendance. “We wouldn’t want to
Total (7 wkts., 20 overs) ..............................................................112
Fall: 6, 37, 50, 50, 58, 81, 106. brief appearance at today’s opening risk his health for a soccer game,” he
Bowling: Masters 2-0-19-1, Wright 4-0-22-1, Styris 4-0-16-1, World Cup match – at the age of 91. said.
Kaneria 4-0-23-0, Bopara 4-0-13-3, ten Doeschate 2-0-10-0. The former South African president Mandela is hoping to join current
Umpires: T Jesty & R Kettleborough.
wants to sample a taste of the atmos- South Africa president Jacob Zuma
North Division (New Road): Worcestershire 113-9 v
Nottinghamshire 114-4. Nottinghamshire (2pts) won by 6 phere at the showpiece event when and Archbishop Desmond Tutu at the
wickets. (Headingley Carnegie): Durham 156-7 v Yorkshire the hosts take on Mexico at event, and Zuma, in particular, is hop-
160-1. Yorkshire (2pts) won by 9 wickets. Johannesburg’s 94,000-capacity ing his predecessor will be fit to
TODAY’S DIARY Soccer City. attend. “Nelson Mandela worked hard
World Cup Group A Mandela’s health has become so that we could win the right to host
South Africa v Mexico (3pm) ................................................................................ increasingly fragile in recent years, this tournament. We dedicate the
Uruguay v France (7.30) .......................................................................................... but any appearance would be hugely World Cup to him,” he said.
CRICKET symbolic for a nation, which has come “South Africa has come alive, and
FRIENDS PROVIDENT T20—South Division: Kent v together to celebrate its finest hour. will never be the same after this
Middlesex (Canterbury). Gloucestershire v Sussex
(Gloucester). Hampshire v Somerset (The Rose Bowl). Essex v “He intends to be there,” said World World Cup. There are a few moments
Glamorgan (Chelmsford). North Division: Northamptonshire v Cup chief Danny Jordaan. “Whether that define a nation’s history, we
Worcestershire (Northampton). Warwickshire v Durham he comes for five minutes or the stand on the threshold of one.”
(Edgbaston). Nottinghamshire v Derbyshire (Trent Bridge).
Lancashire v Leicestershire (Old Trafford). whole match is not our decision. The 40-minute opening ceremony
“As things stand now there is a very gets underway at 1pm and involves
good chance that he will be with us no fewer than 1,581 performers. The
SPORTS EDITOR JON COUCH because he wants to be there.” estimated TV audience runs into hun-
email sport@cityam.com It is more likely that Mandela will dreds of millions across 215 countries. Mandela’s health has been increasingly fragile. Picture: ACTION IMAGES

I’m a fan of Cole,
admits Wenger
▲
PREMIER LEAGUE
BY JON COUCH
ARSENE WENGER has thrown his hat
in to ring to sign Joe Cole, admitting
he is a huge admirer of the England
midfielder.
Cole has sparked a mass transfer
scramble after it was confirmed on
Wednesday that he is to be released
by Chelsea at the end of the month.
Tottenham, Manchester United and
Manchester City are also in the frame
to sign the 28-year-old, but Wenger is
reportedly leading the hunt and
admits Cole’s previous performances
against his Gunners side have tempt-
ed him into making a move.
“I like him as a player because
when he played against us he always
did a lot of damage against Arsenal,”
Wenger said.
“He can create impact through his
creative play. He can dribble, he can
pass, he can score goals.”
Sport 33
Cole’s availability has
sparked a transfer
scramble
Picture: ACTION
IMAGES
Meanwhile, Rafael Benitez was yes-
terday confirmed as the new coach of
Inter Milan.
The Spaniard has signed a two-year
deal at the San Siro, just a week after
parting company with Liverpool after
six years in charge.
Benitez will be officially unveiled
at a press conference on Tuesday.
Gianfranco Zola has set his sights
on a return to management after
reaching a financial settlement with
West Ham.
Zola was sacked at the end of a dis-
appointing season and has since been
replaced in the Upton Park hot seat
by Avram Grant.
“I am looking forward to finding a
new challenge in the game and
returning to management as soon as
possible,” the Italian said.
The Hammers also confirmed yes-
terday that Zola’s assistant Steve
Clarke has left the club by mutual
consent.
 34 Sport
I know my
starting XI,
says Capello
ENGLAND
USA
WORLD CUP 2010
BY JON COUCH
IT’S taken a hard-fought Premier
League season, ten qualifying matches
and a few injury heartaches, but Fabio
Capello’s deliberation is over.
Finally, the England boss admitted
last night he knows his starting line-
up for the World Cup opener with the
United States on Saturday.
All that stands in the way of Capello
putting his masterplan into action
now is one final training session today.
And the Italian can do no more but
hope and pray his players come
through it unscathed.
Much has been made of the deci-
sion on whether David James, Robert
Green or Joe Hart should start in goal,
and the coach is still keeping his cards
CITYA.M. 11 JUNE 2010
close to his chest – even from his own
players. “Yes, I’ve decided, I know,”
Capello said when asked if he knew
which goalkeeper would start. “I know
the 11 that will play Saturday and I
hope the next two days, during the
training, all the players will be fit.”
Capello has clearly showed signs of
strain during a difficult warm-up peri-
od which has included an injury to
captain Rio Ferdinand, disappointing
warm-up performances and an out-
burst at photographers.
But the coach insists he remains
calm, although says he can appreciate
the anxiety surrounding the camp as
the big kick-off draws closer.
“I’m relaxed,” he added. “I can
understand the pressure because in
every moment we walk around you
can see the security, the journalists, Capello’s deliberating for the big kick-off is finally over. Picture: ACTION IMAGES
you can see when you move to golf, to
safari, you need to police a lot of this. players to follow suit on the field dur- warm-up game. Now, Gerrard has pitch and this tournament is going to
“I understand that this is a really, ing the World Cup campaign. warned his team-mates not to fall into be difficult enough so if we lose some-
really important moment for the Discipline has come under the the trap of letting indiscpline jeopar- one it will only complicate things fur-
country.” microscope this week after Wayne dise the side’s chances. ther. We’ve had experience of losing
While Capello is staying calm, cap- Rooney was needlessly booked for “The manager stresses the impor- big players at important times and we
tain Steven Gerrard is calling on the swearing at a referee during a low-key tance of always having 11 men on the need to keep everyone on the pitch.”
CITYA.M. 11 JUNE 2010 Sport 35

We won’t set out to wind up

Rooney, vows US boss Bob
WORLD CUP
2010
BY JON COUCH
UNITED STATES coach Bob Bradley
insists his side will not set out to
wind up Wayne Rooney in tomor-
row’s World Cup opener.
Rooney’s temperament has been
brought into question after he lost his
cool with referee Jeff Selogilwe in a
low-key warm-up with Platinum Stars
on Monday. Selogilwe went on to warn
the England striker that he faced
receiving a red card during the tourna-
ment if he did not curb his temper.
But Bradley denied that his
American side will be deliberately tar-
geting the Manchester United hitman
to gain an advantage. “I’m asked this
a lot and no we won’t try and wind
him up. We don’t get into that sort of
thing,” Bradley said.
“I have tremendous respect for
Rooney and what he brings to
England in so many ways. His effort,
his competitiveness, his movement,
his influence on that team is great.
But we won’t try and wind him up.”
Bradley’s sentiments were echoed
by star player Landon Donovan, who
played against Rooney during his
loan spell with Everton last season.
“I think Rooney is going to be just
fine,” he added.

USA coach Bob Bradley has “tremendous respect” for Rooney. Picture: ACTION IMAGES

LIKELY LINE-UP’S

David James

Ledley King John Terry

Glen Johnson Ashley Cole

Frank Lampard Steven Gerrard

Aaron Lennon Joe Cole

Emile Heskey Wayne Rooney

Edson Buddle Jozy Altidore

Clint Dempsey Landon Donovan

Maurice Edu Michael Bradley

Carlos Bocanegra Steve Cherundolo

Oguchi Onyewu Jay DeMerit

Tim Howard

YOUR WORLD CUP WEEKEND

FRIDAY 11 JUNE
South Africa v Mexico Johannesburg ko 3pm ITV1
Uruguay v France Cape Town ko 7.30pm BBC1

SATURDAY 12 JUNE
South Korea v Greece Port Elizabeth ko 12.30pm ITV1
Argentina v Nigeria Johannesburg ko 3pm BBC1
England v USA Rustenburg ko 7.30pm ITV1

SUNDAY 13 JUNE
Algeria v Slovenia Polokwane ko 12.30pm BBC1
Serbia v Ghana Pretoria ko 3pm ITV1
Germany v Australia Port Elizabeth ko 7.30pm ITV1