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Issue 1,174 Monday 12 July 2010 www.cityam.com FREE

CABLE:WE WON’T Germany’s


bonds in EU

STOP BID FOR BP stress tests


BANKING
BY OLIVER SHAH
THE most dramatic stress scenario for
tests being applied to European banks
Exxon Mobil declined to comment envisages write-downs of 2.3 per cent
BP IN CRISIS on a possible takeover bid, while a BP
spokesperson said the company is not
on German government bonds, 20
per cent on Greek sovereign debt and
BY EMMA SADOWSKI for sale. There are also suggestions between five and 11 per cent apiece in
THE UK government can do very little that PetroChina is interest in acquir- the case of other periphery Eurozone
to stop a takeover of BP, business sec- ing some BP assets. countries such as Portugal and Italy,
retary Vince Cable told City A.M. yes- Cable also put out the fire on reports suggested yesterday.
terday, as suggestions of a large scale rumours circulating the City about a The “shock” scenario, the severest
approach for the embattled oil major possible contingency plan drawn up of three being modelled, would only
intensified. by the government for BP in the event take into account sovereign turbu-
Cable said that under the the company collapses. lence as it applied to banks’ short-
Enterprise Act of 2002, the UK govern- He told City A.M. that the govern- term trading books, not longer-term
ment only had a narrow window to ment doesn’t have a holdings, it is understood.
intervene and that it could bailout plan for BP Last week, analysts from
only do so in the event of should it go under Commerzbank wrote: “Should it be
any national security because it is pri- confirmed that only moderate hair-
issues. vately owned. cut scenarios are being examined, the
He said: “As I under- Costs estima- whole thing could easily backfire. In
stand, there is no imme- tions of the that case, prophets of doom would
diate takeover planned. spill, some as consider the choice of scenarios a
In the event that there high as $70bn, deliberate attempt to make the
was [an attempt] the have sparked results look better than they are.”
areas where the govern- fears that the European finance ministers will
ment [can step in] are group might meet today as question marks gather
very narrow unless it is a not be able to over the rigour of the stress-testing
matter of national security. cope with the bill. being applied to 91 of the region’s
“BP is a strong company Further to the most important banks.
with a strong cash escalating costs, BP has Representatives of the European
flow. If there was a been knocked off the top Union’s 27 member countries will
takeover attempt, spot as the largest com- have the chance to rebut criticism
we would look at it pany in the FTSE 100 from analysts, who have accused reg-
but our powers are
restricted.” Worth: after the 20 April
explosion of the
ulators of using unrealistically mild
assumptions of the worst-case scenar-
His comments
come on the back
of news that US
£100bn Deepwater Horizon
rig, which killed 11
people and caused
ios.
EU finance chiefs are also likely to
discuss the capital-holding ramifica-
rival Exxon Mobil is shares to fall drastical- tions of the tests at their monthly
understood to have ly, wiping more than 50 gathering in Brussels. European
asked for clearance per cent off of the group’s banks, including the weaker Spanish
from Washington to market value. cajas and German landesbanken,
examine a possible takeover But BP’s shares last week start- could be forced to add €90bn (£76bn)
bid for BP worth £100bn. ed to recover on news that the group to their capital buffers, according to
Although an approach by Exxon is was closer to drilling the relief well Vince Cable thinks the government is unlikely to interfere in any BP bid Credit Suisse research. Germany’s
still uncertain, the US government is and on the speculation about bid Deutsche Postbank, Italy’s Banca
thought to have told the oil giant, interest. ANALYSIS l BP 364.80
Monte dei Paschi di Siena and many
along with one other company, that it Thursday’s comments from spill 380 of Greece’s large banks could be asked
9 Jul
would not prevent or stand in the way boss Bob Dudley that the relief well, to hold significantly more capital. In
of a takeover should it wish to make in an ideal world, could be finished as comments suggesting lenders may be
one. Chevron is also said to be moni- early as 27 July, restored faith in offered further state aid to cope,
340
toring the situation. shareholders over BP’s ability to tack- European Central Bank president
A move by Exxon for BP could le the disaster. Jean-Claude Trichet on Friday said the
ignite another trans-Atlantic political The rise in shares has added 20 per crisis was not over and banks should
fight and trigger concern over foreign cent to BP’s market cap from June’s 300 remain open to accepting help.The
ownership of UK companies, similar low point to £68.9bn. Shares closed at results of the stress-tests are due on
to when Kraft took over British con- 364.80p on Friday after falling only 23 July, and will include UK giants
fectionary maker Cadbury. slightly by 0.6 per cent. MORE: P4 21 Jun 26 Jun 5 Jul such as Lloyds and Barclays.

FTSE 100 ▲5,132.94 +27.49 DOW ▲10,197.72 +59.04 NASDAQ ▲2,196.45 +21.05 £/$ 1.51 ▼ -0.01 £/¤ 1.19 ▼ -0.01 ¤/$ 1.26 ▼ -0.01 Certified Distribution
3/05/10 - 30/05/10 is 106,097
2 News CITYA.M. 12 JULY 2010

High electricity prices to hurt growth NEWS | IN BRIEF


Kleinwort case is settled
A legal battle between Commerzbank
and a former Kleinwort investment
able sources – a policy shared whole- greater proportion on heating and savings and insurance to poor banker over the use of the Kleinwort
heartedly by the coalition government utilities than the better-off. And there Africans who lack access to main- name has been settled. According to a
– significantly increased costs for ener- is no doubt that steeper energy stream banking. This helps them to Financial Times report, Commerzbank –
gy consumers, with much more pain prices have already been a key factor develop small businesses, save their which sold Kleinwort Benson in June –
to come. The official figures confirm behind many industrial factory clo- earnings, and guard against risks. This issued a High Court lawsuit against for-
this – and because Britain is going fur- sures. Anglesey Aluminium’s plant finance is not a handout but a real mer Kleinwort banker Robert Pasley-
ther and faster than most other coun- closed last year, following the end- loan at a market rate of interest and a Tyler, claiming he had infringed the
tries, this is putting its economy at a ing of a deal to buy competitively fixed term of repayment; Opportunity Kleinwort name. Kleinwort Benson said
EDITOR’S LETTER special disadvantage. What makes this priced electricity from the Wylfa International talks of “a hand up, not an “amicable agreement” had been
even trickier is that electricity prices nuclear power station, which had a hand out” and of “giving the poor a reached.
ALLISTER HEATH in the UK are already relatively high. recently passed into state ownership. working chance”. The idea is to allow
The Department of Business, Under EU law the deal was deemed to capitalism to thrive in Africa by giving Japan’s ruling party rebuked
HERE is another reason why the recov- Innovations and Skills estimated in be state aid and thus blocked. Services the world’s poorest a chance to better Japan's ruling party, mauled in yester-
ery will be muted. Gas and electricity 2008 that the “surcharge” on electrici- are also being hit: high electricity themselves sustainably while retain- day's upper house election, faces an
costs will rise substantially in the ty prices attributable to climate- prices are a key reason why data cen- ing their dignity, not to disburse aid, uphill struggle to win new allies to back
years ahead and are set to hammer change policies amounted to an extra tres are being located outside Britain. which is often ineffective. The charity its policies to cut back huge public debt
not only consumers but also manufac- 14 per cent for domestic users and 21 There is widespread support for operates a real, ultra-modern high- and probably bitter infighting over
turers, further eroding their competi- per cent for business. It said these greener energy in Britain among tech chain of bank branches, includ- whether the premier should quit.
tiveness and that of Britain as a place policies would add 18 per cent to politicians and the public. But advo- ing mobile outlets, in Malawi. Voters dealt Prime Minister Naoto Kan's
to do business. It is not market forces domestic bills by 2020 and 55 per cates shouldn’t forget about the very Do read our feature on Opportunity Democratic Party of Japan a stinging
that will push up the cost of energy, cent to business bills. The real costs of their policies. International on page 23. It includes rebuke in the election, depriving the DPJ
but government policies, especially Department of Energy and Climate case studies of Africans who have ben- and its tiny ally of a majority less than a
environmental rules, as a report from Change suggested in 2009 that these HELP THE POOR HELP THEMSELVES efited from its loans, built a business year after the Democrats swept to
the Civitas think-tank explains today. surcharges could be as high as 33 per City A.M. now has a favourite charity: and repaid the money. It’s a marvel- power with promises of change.
Labour’s aim of reducing carbon cent and 70 per cent by 2020. Opportunity International, a pioneer- lous, heart warming story – check out Kan's Democratic Party of Japan won
emissions and increasing the propor- Higher energy prices always hit the ing microfinance operator which pro- its website at www.opportunity.org.uk 44 seats and its partner, the People's
tion of energy generated from renew- poor hardest, as they spend a much vides financial services such as credit, allister.heath@cityam.com New Party, none. P19:MARKETS

7th Floor, Centurion House,


24 Monument Street,
London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Ocado hits back at critics
Email: news@cityam.com www.cityam.com
RETAIL

A qualification in Ocado’s accounts


Editorial BY STEVE DINNEEN appears to question whether the firm
Editor Allister Heath can remain a going concern without
Deputy Editor David Hellier OCADO’S advisers reacted furiously securing extra funds. The reports
News Editor Ben Griffiths last night to suggestions its £1bn claim Ocado is particularly reliant on
Night Editor Katie Hope flotation may be in trouble. a £100m loan that is dependent on
Associate Editor David Crow The firm spoke out against a num- the float.
Lifestyle Editor Zoe Strimpel ber of high-profile fund managers it But a spokesman dismissed this as
Art Director Darren Soulsby claims are attempting to undermine “ridiculous”, claiming the qualifica-
Pictures Alex Ridley the pricing of its IPO. tion is just an accounting technicali-
The float, in which the grocery ty.
Commercial delivery firm hopes to raise £200m, He said: “It is completely mislead-
Sales Director Jeremy Slattery appears to be on a knife edge after a ing to suggest that there is a funding
Commercial Director Harry Owen string of analysts and fund managers issue at Ocado – the going concern
Head of Distribution Nick Owen have questioned the valuation. qualification in our accounts is a
Schroders’ Andy Brough became technical issue which has been there
Distribution helpline the latest City personality to question consistently for the last nine years
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email the price, saying the firm is worth because of the rate of our growth over Ocado says fund managers are trying to lower its value. Pictures: NEWSCAST/ REX/ GETTY
distribution@cityam.com less than half of its asking price. that period.
But an Ocado adviser told City A.M.: “The company doesn’t need to venture into grocery delivery, saying subsidiary Quest suggested shares in
Editorial Statement “We won’t sit idly by and allow fund raise £200m, but it is choosing to do the move proves it is on the right Ocado should be valued at 46 per
This newspaper adheres to the system of managers to talk the price down. This so to grow the business and build a track. cent under the mid-point put for-
self-regulation overseen by the Press Complaints is what they are attempting to do. No second depot. Ocado’s directors are almost a week ward in its prospectus.
Commission. The PCC takes complaints about the doubt at all. The team is confident “It is ridiculous to suggest that we into their charm offensive and are Using complex modelling software
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at and in fine spirits and aware what is would not be able to continue in busi- now understood to be flying to the US the firm calculated Ocado would
www.pcc.org.uk going on.” ness if we did not do the IPO or if we to try to convince wealthy investors have to grow sales at 19 per cent a
Printed by Newsfax International,
Ocado also vehemently denied did not raise the £200m.” there to take up the share offer. year for the next 10 years and sustain
Beam Reach 5 Business Park, reports the firm could be in financial A source close to Ocado also said Last week City A.M. revealed a returns almost twice those of Tesco to
Marsh Way, Rainham, Essex, RM13 8RS difficulty if the flotation is pulled. the firm is not worried by Amazon’s detailed analysis by Collins Stewart justify its mid point valuation.

WHAT THE OTHER PAPERS SAY THIS MORNING


ENEL TO RESUME FLOAT
Fulvio Conti, chief executive of Italy’s
Enel, is pushing ahead with the
CHINA BANKS FEAR FALLING CONFIDENCE delayed listing of the debt-heavy utili- WORLD CUP SPONSORSHIP FLAWED DOVER SHIPPING LINES IN NEW ROW SLOVAKIA STYMIES BAILOUT PLANS
Faltering confidence in the Chinese ty’s Green Power division despite con- Companies that spent millions on Bob Goldfield, Dover's chief executive, Slovakia, the euro zone's newest and
economy could threaten the plans cerns about market conditions and World Cup sponsorship or short-term said he expected the port's three poorest country, has balked at plans
of the country’s banks to shore up proposals by cash strapped govern- ad campaigns linked to the tourna- biggest customers – P&O Ferries, for a €750 billion ($951.9 billion)
capital reserves, the head of China ments in Spain and Italy to reduce ment may have wasted their money. Norfolkline and SeaFrance – to recog- bailout package for troubled mem-
Construction Bank, has warned. renewable energy tariffs and incen- A study by Engage Research found nise that tariffs had to rise to fund the bers, delaying the start of the rescue
On top of the projected $22bn ini- tives. Sources close to the flotation, that brands that had developed an new facilities on which both their plan. Slovakia's newly appointed
tial public offering of Agriculture which could become Europe’s second ongoing relationship with football own and Dover’s future depends. “I prime minister, Iveta Radicova, said
Bank of China, announced last largest float for two years, said Enel did better in terms of consumer wouldn’t say the row is manufactured she will fly to Brussels on Monday to
week, CCB and Industrial and was expected to name its advisers recognition than those that sought to but it's more emotionally based than meet European Commission
Commercial Bank of China are soon. use the World Cup for short-term pro- factually based,” he said. President Jose Manuel Barroso.
between them raising up to $21bn motions.
in fresh capital. ONS DATA ON STOCKS DISPUTED GOOGLE MAY LAUNCH SOCIAL NETWORK CHINA'S TRADE-SURPLUS GROWTH
The amount of the UK stock market UK SHOULD USE WASTE FOR POWER Two weeks ago Eric Schmidt, Google’s INCREASES PRESSURE TO LET YUAN RISE
ASTRAZENECA RESULTS TO COME AT 7AM owned by overseas investors could be As much as 17 per cent of Britain’s chief executive, was in the UK visiting China’s trade surplus rebounded in
AstraZeneca may have an American less than half the level suggested by electricity needs could be met by media companies. At one such meet- June to its highest level in half a year,
chief executive but it is to revert to UK official government figures, accord- burning rubbish and the methane ing, over lunch, he was asked outright according to government economic
traditions when it announces its ing to new data seen by the Financial produced from landfill sites. David if Google was planning to launch its data that could increase pressure on
quarterly results before the opening Times. Share ownership by individu- Palmer-Jones, chief executive of Sita own social network to rival Facebook, China to let the yuan strengthen
of London markets. The pharmaceuti- als and company directors is as much UK, which handled nine million niftily called “Google Me”. Schmidt, more quickly. The data, released at
cal group, which has its head office in as twice the figure contained in the tonnes of waste last year – 8 per well-known for being a straight talker, the weekend, paint a picture of cool-
London, will at the end of the month official figures, while the ownership cent of the total – said that Britain failed to scotch the well-circulated ing domestic growth but so-far
release its results at 7am, rather than by pension funds and insurance com- was failing to grasp a huge opportu- rumour, simply saying he “had noth- resilient demand for Chinese goods
11am as it has in the past. panies is lower. nity. ing to announce”. from the global economy.
CITYA.M. 12 JULY 2010 News 3

Clegg drove final


Sir Alan Budd,
chairman of the
Office for Budget
Responsibility, is
expected to call for

nail in Brown coffin


greater independ-
ence
Picture:
REUTERS

party, with leadership hopeful Andy


POLITICS
BY STEVE DINNEEN Burnham accusing the former busi-
ness secretary of using the party to
NICK Clegg, the LibDem leader, final- massage his ego and settle personal
ly saw off Gordon Brown’s hopes of scores.
clinging to power in the wake of the Former deputy leader Lord Prescott
hung parliament by demanding he urged Labour to move on from the
resign before any Lib-Lab deal was squabbling he claims was responsible
agreed. for the election defeat. Stand-in
This and other revelations in Lord leader Harriet Harman attempted to
Mandelson’s upcoming memoirs play peace-keeper, saying the book
have caused a rupture in the Labour would not affect the party.

Osborne faces
pressure over
fiscal monitor
its unemployment predictions in the

POLITICS
BY OLIVER SHAH run-up to Osborne’s Budget.
Tomorrow’s committee hearing
CHANCELLOR George Osborne will will focus on the OBR’s involvement
come under pressure to increase the with the Budget.
independence of the Office for Although it will touch on the
Budget Responsibility (OBR) when its agency’s relationship with the gov-
head, Sir Alan Budd, is grilled by an ernment, a fuller committee hearing
influential body of MPs this week. examining the OBR as an organisa-
The Treasury Select Committee is tion is scheduled for the end of the
expected to ask Budd, who is due to month.
step down as chairman on 19 August, A source close to the OBR said Budd
whether there are sufficient safe- had been reflecting on possible
guards against government interfer- improvements to the monitor since
ence in the OBR’s work. his appointment in June.
Budd will suggest parliament plays As well as verbally setting out his
a greater role in deciding senior thoughts at the two Treasury Select
appointments at the fiscal monitor. Committee encounters, Budd is
He will also say the OBR should be expected to write a detailed letter to
moved into a separate building to the the chancellor outlining his views on
Treasury, and should use more of its how a permanent incarnation of the
own staff rather than employees bor- OBR should work.
rowed from Osborne’s department. Budd’s decision not to stay on at
The call for a shake-up comes just the OBR beyond the end of this
months after the coalition govern- month – when his contract is due to
ment said it would set up an inde- expire – surprised observers and led
pendent body to stop politicians to suggestions of a row with Osborne.
“fiddling” economic forecasts and A colleague said the claim was “non-
assessments of Britain’s public sense” and insisted the chairman had
finances. “a perfectly constructive working
But the OBR’s early days were relationship with the Treasury and
marred by controversy over tweaks to the chancellor” JOB FIGURES: P14

IFS director Robert Chote in the


running for OBR chairman role
the Financial Times to take up the

POLITICS
position of economics editor.
DIRECTOR of the Institute for Fiscal He joined the International
Studies (IFS) Robert Chote is a strong Monetary Fund (IMF) in 1999 as an
candidate to replace Sir Alan Budd as adviser based in Washington before
chairman of the Office for Budget being appointed to the IFS in 2002.
Responsibility (OBR). He rose to fame during the Labour
The former journalist began his administration, where he garnered a
career as a reporter and columnist at reputation for giving the leadership,
The Independent before moving to and in particular Gordon Brown, a
hard time over the economy.
Robert Chote wants to Chote, who is also a member of
clarify the relationship the finance committee of the
University of Cambridge, is under-
between the OBR and stood to be keen to nail down the
the treasury before exact relationship between the gov-
applying for the role ernment and the OBR before apply-
ing for the role.
4 News CITYA.M. 12 JULY 2010

Crucial court
Oil flows into date for BT over
Gulf freely as pension deficit


TELECOMS

BP shifts cap BY STEVE DINNEEN


TELECOMS giant BT will this morning
begin a court case that could have a
momentous impact on its future.
Trustees of the firm’s pension plan
are seeking a ruling on how far the
set back after Anadarko said that it government will underwrite the
BP IN CRISIS would not pay the embattled oil
major the $272m (£180m) it has been
bloated scheme.
If the ruling goes in the trustees’
BY EMMA SADOWSKI billed for its share of the well. favour BT will have to pay significant-
UPDATES to BP’S containment plan Anadarko told BP on Friday that it ly less to service the £9bn deficit it is
caused oil to spill freely into the Gulf was withholding reimbursement but carrying.
of Mexico over the weekend as the that it was committed to working Shareholders will be praying for
company was dealt another financial with the group “in good faith to this outcome, after the firm cut its
blow by well partner Anadarko. achieve a satisfactory resolution”. dividend by 59 per cent, partly in
BP, which started to replace the BP said: “We are disappointed they response to the bulging deficit.
containment cap on the blown out have failed to live up to their obliga- A ruling the other way could spell
preventer yesterday, said that updates tions under the Macondo Operating disaster, with BT potentially having to
could take up to six days to complete, Agreement and as a responsible party address the issue faster than it had
leaving the oil flow from the under the Oil Pollution Act.” planned.
Macondo well untouched. A spokesperson at BP would not Earlier this year BT agreed with its
The spill response team, led by confirm whether the group is likely pension fund trustees the deficit
Admiral Thad Allen, is fitting the well to take legal action against Anadarko, would be paid off over 17 years. It will
with a tighter cap that is expected to which owns 25 per cent of the well, pay £525m for three years, rising to
capture virtually all of the oil leaking but said that it is currently evaluating £583m thereafter, with payments
from the Macondo well. its options. increasing three per cent a year.
“We’re pleased with our progress,” Mitsui, which owns 10 per cent of BT last week averted strike action
said BP senior vice president Kent the well, has not responded to BP’s when it announced it has reached
Wells yesterday. requests for an $111m payment to agreement with its workers’ union on
The new cap can siphon up to cover its share of responsibilities. a new pay package for employees.
80,000 barrels of oil a day to the sur- Mitsui could not be reached for The agreement will see workers
face, up from 25,000 barrels a day the comment. receive pensionable pay rises worth
previous method was capturing. The spill has already cost BP over three per cent each financial year
But the group suffered a financial $3bn. Robots work on the Macondo cap under the water Picture: REUTERS from April 2010 to March 2013.

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CITYA.M. 12 JULY 2010 News 5

Deutsche Bank’s Credit Suisse boss Bill Winters did


Anshu Jain, left, Brady Dougan, not make this
topped the list, left, and the top- year’s list.
ahead of Mario ranked wonan Pictures:
Draghi, right Sharon Bowles REUTERS, GETTY

Deutsche’s
Jain tops EU
power list
aged to secure a place on the 100-

FINANCIAL SERVICES
BY VICTORIA BATES strong list despite ongoing efforts to
promote equal opportunities for
DEUTSCHE Bank’s investment bank- female professionals working in the
ing chief Anshu Jain has topped a
power list of the 100 most influential
people in European financial mar-
kets.
traditionally testosterone-dominated
financial markets. Of those four, the
highest-ranking woman was Sharon
Bowles, chair of the European
+5HIF85MH<"I@M
Jain was named by Financial News Parliament’s economic and monetary
as the most powerful financial indi-
vidual in Europe, beating his own
affairs committee, who came in some
way down the list in position 65.
B>CM5GD97H57I@5F85M
boss – Deutsche’s chief executive Josef
Ackermann – into sixth place.
This year’s list contains a more
She was followed by Axa Private
Equity chief Dominique Senequier;
Jeannie Drake, chair of the Personal
C:F57=B;5B8GIAA9F
prominent cache of regulatory chiefs,
as discussions continue over how best
Accounts Delivery Authority and
trustee of the Alliance & Leicester and
:9GH=J=H=9G:95HIF=B;
to supervise the markets to prevent a O2 pension schemes; and Niki Beattie,
repeat of the global financial crisis. founder of Market Structure Partners.
Financial Stability Board chairman Dropping off the list this year are a  ,<9o A=@@=CB#=B;9CF;9.!
and Bank of Italy governor Mario number of former hotshots of the
Draghi came in second place behind European financial world. Michael )I99B@=N569H<+H5?9G
Jain, while Bank of England governor
Mervyn King holds this year’s fifth
Geoghegan, chief executive of HSBC,
no longer features due to his reloca- GDCBGCF986M9H:5=F
spot and Financial Services Authority tion to Hong Kong, while last year’s
chief executive Hector Sants comes in top-ranked individual also fails to get
16th. a mention in 2010. Bill Winters, the   KCB89F:I@F5B;9
Bank chief executives also ranked ex-boss of investment banking at JP
highly, with Credit Suisse boss Brady Morgan, was ousted from the bank in C:GIAA9F7C7?H5=@G
Dougan in third place and UBS’ September last year. He returned to a
Oswald Gruebel and Barclays’ John high profile role last month as a
Varley also featuring in the top 10. member of the UK’s independent  $=J9AIG=75:H9FF57=B;
However, only four women man- commission on the banking industry.
CBH<95B8GH5B8

BoA hid billions of dollars of


debt through bad accounting
,=7?9HG:FCAoD9FD9FGCB
spokesman Jerry Dubrowski.
=B98=B=B;:FCAo =B7
58A=GG=CB

BANKING BoA, which has denied the six


BY STEVE DINNEEN transactions were intentional, high-

BANK of America (BoA) has admitted


lighted the incorrect accounting in
its most recent quarterly results but
,C6CC?,75@@   CFJ=G=H5G7CH
7C
I?
it incorrectly classified figures of up details of the transactions have just
to $10.7bn (£7.1bn) in short-term lend- been made available.
ing and repurchase deals for mort- The bank reported better than
gage securities as sales. expected earnings of $2.8bn (£1.8bn)
The lender said it had beefed up in the first quarter of 2010.
internal accounting controls after the
transactions. It flagged up the fault to Bank of America
the Securities and Exchange
Commission itself and no punitive president Brian
action has been taken. Moynihan’s bank
“The transactions did not have a denies the transac-
material impact on the bank’s earn- tions were intentional
ings or balance sheet,” said company
6 News CITYA.M. 12 JULY 2010

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JC Flowers boss
www.cityam.com Chris Flowers (l)
and Kent
Reliance chief
Mike Lazenby (r)

JC Flowers in
mutual deal
remain in place.

FINANCIAL SERVICES
BY VICTORIA BATES An agreement would prove a life-
line for Kent Reliance, which has
PRIVATE equity firm JC Flowers is in struggled to meet regulatory recapi-
advanced talks with building society talisation demands in the wake of the
Kent Reliance to create a joint ven- credit crisis, along with other build-
ture which could pave the way for a ing societies.
new “mini super-mutual”, transform- Sources close to the deal also said
ing the fortunes of the ailing sector. that the venture could prove a cata-
If the deal goes ahead, Kent lyst for a spate of similar agreements
Reliance will transfer all of its assets in the sector. JC Flowers, which was
and liabilities over to the newly-creat- set up by former Goldman Sachs
ed banking entity, in which it will banker J. Christopher Flowers in 2001,
hold a majority 51 per cent stake. JC is ready to stump up hundreds of mil-

 Flowers will inject £50m of new capi-


tal into the venture, in return for the
remaining 49 per cent of the equity.
lions of pounds of additional capital
in order to use the new banking ven-
ture as a focal point for further con-
      The firms have lured former solidation in the mutual sector.
Financial Services Authority chair- The venture will have to be
  man Sir Callum McCarthy to join the approved by Kent’s members before it
board of the combined venture, is launched, with a vote anticipated
      though he is currently thought to be before the end of the year.
    unlikely to adopt the chairmanship. A stock exchange announcement
Kent’s management team, led by containing details of the deal is
      chief executive Mike Lazenby, will expected before the week is out.
 

Taylor Wimpey refinancing in a


bid to beef up land purchases
debts are not due until July 2012, bor-

CONSTRUCTION
rowing restrictions curb its ability to
HOUSEBUILDER Taylor Wimpey has buy new land.
'/5$EULJKWHUFRPPXWH
'/5$EULJKWHUFRPP
PXXWH ZZZGOUFRXN
ZZZGOUFRXN returned to the negotiating table Early discussions are reportedly
with lenders, in a bid to access fund- over whether Taylor Wimpey can
ing for land purchases. extend the duration of its debts and
The company, which completed a arrange less constrictive cash flow
£1.55bn debt restructuring last year, covenants. The company’s creditors
now wants to refinance its bonds and comprise a 15-bank consortium,
bank loans, according to the including Barclays, HSBC, Lloyds and
Financial Times. RBS. Last night Taylor Wimpey could
Although the firm’s repayments on not be reached for comment.
CITYA.M. 12 JULY 2010 News 7

Congress edges
Lord Levene’s towards deal on
bank eyes up banking reform

online assets
REGULATION


US Democrats will have little margin
for error this week as they push for
final congressional approval of the
most comprehensive rewrite of finan-
cial rules since the Great Depression
of the 1930s.
Senate Majority Leader Harry Reid

BANKING Lloyd’s of London chairman Levene hopes to take up the sweeping legisla-
BY VICTORIA BATES and City grandee Walker plan to list tion as Congress returns from a week-
their new vehicle on the Alternative easyJet boss Carolyn McCall could appoint a third party to do a review Picture: REX long break, even though he has not
LORD Levene and Sir David Walker’s Investment Market by the end of this yet locked down the 60 votes needed

New easyJet boss set to


new high street bank plans to scour month, using it as a shell to build a to clear a procedural hurdle in the
the market for potential online bank- new nationwide retail banking giant 100-seat chamber.
ing acquisitions after initially launch- to rival newcomers like Virgin Money The House of Representatives has
ing a bid for a retail branch network. and Metro Bank. already approved a final version of

launch review of business


NewBank, which does not yet have The project, to which Virgin the bill, which imposes a range of
an official name, is currently eyeing Money’s former chairman, the late tough new restrictions on the indus-
up state-owned assets put on the Sir Brian Pitman, was a founding con- try in an effort to avoid a repeat of the
block by Lloyds Banking Group and sultant, has already received funding 2007-2009 financial crisis.
Northern Rock. The former’s 600- pledges from as many as 12 major After a year and a half of negotia-
strong branch divestment is touted as City institutions, including Aviva tion and hard work, Democrats are
the likeliest target for a deal. Investors and F&C. AVIATION EasyJet has yet to decide who it will eager to send it to President Barack

Levene and Walker will then look The institutions are expected to BY EMMA SADOWSKI appoint but McCall will work along- Obama to sign into law.
to add an established internet bank- inject around £2bn into the new side the group’s new finance director, Passage of the bill would give them
ing business to their growing stable bank, which will also aim to raise CAROLYN MCCALL, easyJet’s newly Chris Kennedy. a second major legislative achieve-
in order to take advantage of opportu- around £50m at IPO. appointed chief executive is to launch It is thought that McCall wants to ment, alongside healthcare reform,
nities in non-traditional banking Boutique advisory firm Kinmont a review of the airline’s business test out the airline’s fleet expansion to show voters as they try to retain
methods. Lloyds’ Intelligent Finance and investment bank Cenkos have model with plans to deliver her find- plans, which saw easyJet’s owner Sir control of Congress in elections this
online division is one acquisition pos- been instrumental in helping to set ings to investors in November. Stelios Haji-Ioannou dramatically quit November.
sibility being sized up by the team, up the project. The former Guardian Media Group the board. She will also test out In the Senate, Reid can count on 57
after the EU’s competition watchdog Following the Aim listing, Kinmont chief is considering whether to easyJet’s growth plans set against the Democratic votes for the measure,
ruled it should be one of the assets will be broker to the new firm, while appoint a third party to carry out backdrop of governmental spending which would create new consumer
put up for sale by the bank after its Cenkos will act as its nominated tests on the low-cost airline’s assump- cuts, oil price projections and moves protections and saddle financial
taxpayer bailout. adviser. tions. made by rivals. firms with tough new restrictions.
The Capitalist
8 CITYA.M. 12 JULY 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

PROPERTY BIGWIGS GET OUT THEIR


WALLETS FOR A DAY AT THE RACES
FOR STARTERS, let’s head down to its fourth anniversary. for a trip on Slade’s record-breaking
Ascot racecourse – always a pleasure Attendees included Helical Bar yacht, the Icap Leopard.
– for the annual Property Race Day, chief executive Mike Slade, David As is usually the way with these
playground of the suited and booted Erwin from Cushman and Wakefield things, most of the fun was to be had
doyens of the property world. and Will Astor, as well as almost 700 after the racing ended, when the
This year marked a change of chums from the property sector. The guests were treated to a live perform-
scenery for the charity event set up by move to Ascot clearly paid off for the ance from Clarence King and The
Parkwood Asset Management committee, which managed to make Regents. Hundreds stayed to boogie
founder Derek Lucie-Smith, which a net profit of £140,000 on the occa- with the band, whose members are
moved from Sandown Park to the sion thanks to some very popular no strangers to the spirited antics of
more illustrious confines of Ascot for auction lots – including a £10,000 bid the property world. They were recent-

Ascot played host to the Property Race Day for the first time this year Picture: REUTERS

ly backing band at the sector’s Party feminine side,” Barrack explained. “I


Near The Park fundraising singalong, promise you, it is neither.”
where the usual suspects belted out After being “forced” to take up the
crowd-pleasers from Tubthumping to first Twilight book while alone on a
Lady Marmalade. yacht in Turkey, Barrack had a Eureka
moment on the difference between
men and women – that women long
TWILIGHT ZONE for anticipation and romance, where-
An irresistible snippet courtesy of the as men are all about the destination.
US blogosphere, which has its hands Yes, yes, we all could have told him
that and spared him the time, yadda
yadda. But our man is enthused with
the discovery. “I feel renewed and
refreshed,” he gushes. “Taking the
agenda-less time to absorb a point of
view that I had ignored while loved
ones around me relished in it, was an
oasis for my soul…”
One for the Christmas list, gents?

HAPPY DAYS
Cathal Morrow, who you may remem-
ber for spending a whole year without
Twilight star Robert Pattinson Picture: REX lying, has been in touch.
Not content with his year of fame,
on a charming internal memo sent which was “sponsored” by private
out last week from hedgie Tom equity firm the Thaler Fund, he’s at it
Barrack to his Colony Capital min- again. This time, it’s spending a year
ions. Barrack, you see, has just experi- “being happy”, or more precisely, not
enced a “personal breakthrough” getting moody.
relating to none other than the Someone warn that man that you
Twilight vampire books, currently can have too much of a good thing.
sending shivers down teenage spines
with the release of a third film sequel
starring the lovely Robert Pattinson.
“Many of you will think that I have
lost my mind or have finally experi-
enced a mystical intervention of my

BILL OF THE WEEK

A RATHER civilised 50th birthday cele-


bration for these four City types last
week as they headed to the riverside High
Timber restaurant for a slap-up meal.
The group pre-ordered their food with
the chef, plumping for whole truffles
baked in choux pastry, a whole rib of beef
with foie gras, and strawberries and
cream for pud.
Seated at the private dining table
inside the wine cellar, our diners weren’t
short of inspiration for their vino choices.
They eventually opted for a bottle of
Billecart-Salmon Rose, a chardonnay
from the Jordan winery in South Africa
and a bottle of Vega Sicilia Unico.
CITYA.M. 12 JULY 2010 News 9

British Airways
City office near to winning
rentals rising antitrust bid

at rapid pace
AVIATION


BRITISH Airways, American Airlines
and Iberia are set to win EU antitrust
clearance this week to deepen their
Oneworld alliance.
The news comes as BA and Iberia
are on the brink of merging, and BA

PROPERTY frequent as high quality space is chief Willie Walsh has revealed he is
BY MARION DAKERS snapped up. already planning to buy up another
Available office space in the City airline within a year.
OFFICE rents in the City have has declined by 28 per cent in the last The antitrust decision will decide
advanced at a record pace this year, year, with around 9.4m square feet on whether the trio of airlines can broad-
rising by nearly 12 per cent in the last offer in 2010’s first quarter. en their pact to take advantage of the
quarter and by almost 25 per cent Prices in other parts of London are US/EU “Open Skies” agreement,
since January, says research out today. also skyrocketing. Canary Wharf which liberalises trans-Atlantic avia-
Average rents for grade A offices rents have leapt by a third since the tion.
increased from £47.50 per square foot start of the year, while rents for The carriers, members of the
in the first quarter of 2010 to £53 per Docklands offices rose 6.7 per cent in Oneworld alliance, offered in March
square foot by the the end of June, the three months to 30 June, to £40 to give up a number of lucrative trans-
according to figures from commer- per square foot. Atlantic slots in a bid to ease competi-
cial property agency NB Real Estate. Yields on City office rents have fall- tive concerns by the European
The jump represents the strongest en from from seven per cent to 5.25 Commission. The Commission’s deci-
six months since 1988, when the firm per cent over the past 12 months, in sion is likely to come as early as
began recording rent levels, though part due to an influx of foreign tomorrow.
charges are still well below the peak investors and the expectation of soar- The US Department of Transport in
of £69.50 per square foot seen in 2007. ing rents. February tentatively allowed the
NB Real Estate’s director of city three airlines antitrust immunity on
offices James Gillett said: “Two suc- FAST FACTS | OFFICE RENTAL transatlantic routes.
cessive quarters of such strong rental The three carriers have proposed to
growth is without precedent. It ● City office rents have risen by 12 per cent in the Commission to cede some land-
underlines just what a rollercoaster the last quarter, and 25 per cent since January. ing and take-off slots for routes from
ride the commercial property market ● Available office space in the City has declined London to Dallas, London to Boston,
and the City has been on during the by 28 per cent in the last year, with around London to Miami and possibly
last two years.” 9.4m square feet on offer in 2010’s first quarter London to New York if competitive
Price hikes are set to become more Rentals at offices like the Heron Tower are being snapped up conditions change.
10 News CITYA.M. 12 JULY 2010

David Verey makes the


trip back home to Lazard
executive of Lazard’s UK operations investment banker will advise the

BANKING
BY DAVID ELWARD quit in 2001 to join its rival Cazenove bank’s senior managers and liaise
as deputy chairman. But he left that with its biggest clients. The role is not
THE man once touted as a potential role after only a year in the role full-time but Verey will be called in
chief executive of the international because of a clash of cultures. when Lazard requires his advice.
investment bank Lazard is to return He will work alongside William Verey holds non-executive director-
to the company he worked at for Rucker, UK chief executive, and ships at the Daily Mail and General
almost three decades. becomes part of a senior advisory Trust, and Sofina, the Belgium-based
David Verey, who enjoyed a 29-year team of City heavyweights drafted in holding company. But he resigned his David Verey (left) is going back to join William Rucker at Lazard
career at the bank before quitting recent years, including ITV chairman, position on the international adviso-
nine years ago, will slot back in as a Archie Norman, and property indus- ry board of US private equity firm TIME LINE | LAZARD
senior advisor to its UK business. try expert, Christopher Jones. Blackstone last month to make his
The former chairman and chief The Eton and Cambridge-educated return to Lazard.
● 1848 ● 1876
Founded in New Orleans, Lazard expand- Lazard’s businesses becomes solely
ed shortly thereafter to provision the focused on providing financial services.
needs of the California gold rush. Over
time, the business expanded into banking ● 2005
and foreign exchange businesses. Lazard ended 157 years of private owner-
ship and began trading publicly on the
● 1852 New York Stock Exchange under the
Seeking to expand operations to Europe, ticker symbol "LAZ".
Lazard opens its first office in Paris.
● 2010
● 1870 Lazard operates from 40 cities across 26
Building on its European base, Lazard countries in North America, Europe, Asia,
opens an office in London. Australia, Central and South America.

p s u mm er
sn a p u
ays fro m £449
5* holid m £449ve fro
egypt all inclusi
greece half board from £502
turkey all inclusive from £564

Prices correct at time of going to print, subject to availability and conditions. Prices include flights, 7 nights accommodation and based on
2 sharing in July 2010. lastminute.com acts as an agent for ATOL protected operators. See website www.lastminute.com.
CITYA.M. 12 JULY 2010 News 11

If policymakers fail, let us turn to St Francis


the twist. When will policy makers Europe is currently facing. The tests ty to make good under funded banks tions about the fragility of that partic-
learn that what investors really want are in truth not just a test of the bank- then things might just calm down a ular country’s national finances.
is clarity? ing sector but also of the credibility of little. If they fail in this simple task
Europe’s nation states. then the market will be right to con- ST FRANCIS’S WORDS APPROPRIATE
DON’T BE FOOLED BY RALLY While MF Global might believe that tinue to worry about sovereign risk. The worry has to be that if policy
Yes, the banking sector may have ral- the media is wrong to bemoan the This raises the interesting issue of makers make a mess of these stress
lied over recent days. However politi- “absence of a plan to recapitalise the the EFSF (European Financial Stability tests then they could achieve exactly
cians should not be fooled. This [banking] sector”, Credit Suisse gets Facility), which is primarily intended the opposite effect that they were
CNBC COMMENT market reaction has nothing to do neatly to the point. Its analysts high- as a sovereign guarantee vehicle. hoping for and drive Europe back in
GUY JOHNSON with optimism about the health of
the financial system. Instead, it has
light that the process is in fact a test
of the willingness of the official sec-
There have been hints over the last
few days that this could be used as a
to chaos. Let us all pray that they get
it right. The words of St Francis seem
been largely a result of short posi- tor to provide capital to those firms funding source for the financial sec- particularly appropriate:

A
s an exercise in transparency tions being closed as traders decided that fail. tor. If this is true then this very much Where there is doubt, [let me bring]
Europe’s so-called stress tests they couldn’t make an informed deci- blurs the lines between bank bailouts faith;
have already failed. We were sion in such an opaque environment. MINISTERS COULD CALM MARKETS and sovereign bailouts. Any country Where there is despair, hope
promised the methodology It’s not as if the stakes aren’t high Hopefully this point will not be lost that uses the facility will be deemed Where there is darkness, light
and all we got was the madness; a here. These tests go beyond the issue on Europe’s finance ministers as they to be unable to fund its failed banks Guy Johnson co-anchors European Closing
drip, drip, drip of information that of the strength of the banks and go to gather in Brussels today. If they can out of national resources. Bell weekdays on CNBC.
has slowly driven the markets round the heart of the problems that make clear that they have the capaci- This in turn will open fresh ques- http://europe.cnbc.com

HSBC in £1.7bn trains sale Rio Tinto in bid to shed South


African coal assets worth $75m
It is understood that the consor- train assets follows moves by rivals

TRANSPORT
BY EMMA SADOWSKI tium has been handed a period of Royal Bank of Scotland, which sold


exclusivity to put the finishing touch- Angel Trains in 2008 for £3.5bn and MINING on internationally traded markets
HSBC could be close to finalising a es on the deal, with hopes that it Abbey National, now owned by and Chapudi is better suited as a
deal to sell its British rolling stock could be signed by the end of the Santander, which sold Porterbrook MINING giant Rio Tinto is consider- domestic project, it is understood.
leasing business for £1.7bn to a con- month. for £2bn the same year. ing the sale of $75m (£49m) of its Rio Tinto, it is thought, has invited
sortium of City investors. HSBC currently owns a number of HSBC and 3i declined to comment Chapudi coal exploration assets in bids and has a preferred buyer in
Morgan Stanley Infrastructure, 3i important fleets, including the on the sale. South Africa. place for the assets in the Limpopo
and Star Capital are thought to have Intercity 225 trains that run between The Intercity rolling-stock was at It is thought that Rio Tinto is sell- province, which could fetch up to
teamed up to make a bid for the busi- London and Edinburgh and the the center piece of a debate after ing the Chapudi arm because it does $75m.
ness, which could see the transfer of Javelin commuter trains that travel transport secretary Philip Hammond not yield coal suitable for the global Along with its partner Kwezi
one-third of the UK’s trains – or 4,000 between Kent and the capital. after he said he would shelve updat- market. Mining, Rio Tinto discovered the
– to its ownership. The move by the bank to shed its ing the trains until October. Rio Tinto’s coal strategy is focused 1.04bn tonne coal resource in 2008.
12 News CITYA.M. 12 JULY 2010

Sports broadcaster Setanta


collapsed with £550m debts
receive 2p for every pound claimed. Around 200 jobs were lost in the UK.

MEDIA
BY OLIVER SHAH Setanta tried to muscle into the Three Deloitte administrators –
competitive pay sports TV market, Neville Kahn, Lee Manning and Nick
SPORTS broadcaster Setanta’s British signing up 1.2m customers. But it Edwards – were appointed to liqui-
arm collapsed owing £550m to credi- crumbled after securing just 23 date the UK arms. At the time, Kahn
tors including the Football Premiership fixtures each season saluted the “huge effort [made] by the
Association and the Scottish Premier from 2010/2011 and failing to get the Setanta board, management team
League, according to the final report 1.9m customers analysts said were and its backers,” but said it had not
from administrator Deloitte. needed to break even. When private been possible to save the units.
Setanta imploded last summer equity backers Doughty Hanson and The broadcaster continues in the
with outstanding bank loans of Balderton Capital refused to help forms of Setanta International and
£261m and unsecured debts of with a £100m refinancing, the com- Setanta Ireland. A spokesperson was
£288m. Unsecured lenders will pany was put into administration. unavailable for comment yesterday.

John de Mol and Richard Desmond are thought to be in the running for Five. Pictures: REX

Desmond may
bid for Five
and BSkyB. ITV was also said to be

MEDIA
BY STEVE DINNEEN interested but this has since cooled.
The deadline for first-round bids
EXPRESS Newspaper owner Richard in the auction for the channel,
Desmond has emerged as an unlikely which is being run by JP Morgan,
frontrunner in the battle to buy passed on 21 June. The final round of
Channel Five. bids will end next week. RTL
The owner of adult channel declined to comment.
Television X has made no secret of his Analysts have valued Five at
desire to expand his media empire between £100m to £300m, with RTL
but this is the first time he has been understood to be holding out for at
linked to the struggling terrestrial least £160m.
broadcaster. Five, which lost £37m last year, has
It is understood Desmond has caused RTL to write down almost
made it through to the final round of £400m on a £500m investment.
bidding for RTL’s loss-making station. Meanwhile Five caused a stir when
Also thought to be in the running is it announced it would quit controver-
John de Mol, the Dutch founder of Big sial online set-top box tie-up Project
Brother producer Endemol. Canvas. The on-demand service, joint-
De Mol is believed to be working ly owned by the BBC, ITV, Channel 4,
with Greek broadcasting group BT, TalkTalk and Arqiva, is due to be
Antenna in a bid to revive his flag- launched in 2011.
ging Big Brother franchise. It has been vehemently opposed by
Other names linked with the sta- Sky and Virgin Media, who claim it
tion include Endemol, Warner, NBC will distort competition.

Red Knights may resurrect their


£1bn bid for Manchester United
of the Old Trafford club did not

MEDIA
match the owners’.
BY STEVE DINNEEN But it is understood the consor-
THE group of wealthy City financiers tium, led by Goldman Sachs chief
hoping to wrest control of economist Jim O’Neill, has taken
Manchester United appeared to res- heart at the apparent slow uptake of
urrect their plan when they met season tickets at the club.
with supporters’ groups over the The group also hope new regula-
weekend. tions being introduced into European
The self-styled “Red Knights” football that will require clubs do not
looked to have cooled their interest spend more than they bring in could
after it became clear their valuation force the Glazers around the table.
CITYA.M. 12 JULY 2010 News 13

Marketing will be
Rockhopper,
chaired by Dr
Pierre Jungels, will
begin drilling its
Ernest prospect

driven by the east


after Falklands Oil
& Gas finishes
using the Ocean
Guardian rig

that the marketing landscape will


UK ECONOMY
BY STEVE DINNEEN remain tough for many businesses.
The report found that advertisers in
THE future driver of growth in adver- the UK began cutting their budgets in
tising will be eastern and south east- the second quarter, fuelling fears of a
ern economies, according to Martin double dip recession and reversing the
Sorrell. first upward quarter since 2007.
Writing for the IPA BDO Bellwether Advertising saw a strong start to
Report, which draws on commentary the year and the World Cup has pro-
from leading ad agency and business vided a welcome boost. An overall rise
practitioners, he predicts the global in spending is expected in 2010
economy will continue to grow but despite the uncertainty.

Rockhopper
eyes second
Falklands site
Davies, said Rockhopper would proba-

ENERGY
BY OLIVER SHAH bly enjoy success at its second site. He
said: “Ernest is about the same size as
ROCKHOPPER, the oil explorer which Sea Lion and it’s a very similar
became an investors’ darling after prospect.”
striking black gold off the coast of the One shareholder said it was likely
Falkland Islands, is eyeing a second Ernest boasted a material amount of
big discovery in the region. oil, but added: “Until drilling starts
Analysts believe the Aim-listed no-one can say for sure. The drill is
company will find up to 240m barrels king in this situation.”
of oil at its Ernest prospect to the On Friday, it emerged a fifth UK
north of the Falklands when it begins company, Argos Resources, plans to
drilling towards the end of the search for oil near the Falklands. The
month. The find would match the Argentinean government has
groundbreaking haul identified at described the exploration activity as a
Rockhopper’s Sea Lion site – the first violation of its sovereignty and has
significant discovery in the Falklands tried to make life difficult for the
waters – which sent the firm’s shares companies by complicating their sup-
soaring 650 per cent in May. ply routes from the mainland.
Three other groups are also racing
to tap oil offshore the disputed ANALYSIS l Rockhopper Exploration
p
British territory. This week, Falklands 326.00
Oil & Gas (Fogl) will update the mar- 350 09 Jul
ket on the state of its well to the 300
south of the Falklands. The outcome 250
will be particularly important to 200
Rockhopper because all four compa-
150
nies are sharing the same rig.
Rockhopper will not be able to start 100
drilling on its Ernest prospect until 50
Fogl is finished. 0
Lionel Therond, an analyst at Fox- 12 Apr 30 Apr 21 May 11 Jun 1 Jul

Enel to proceed Zodiac rejects


with €4bn IPO bid from Safran

ENERGY AVIATION
ITALY’S biggest utility Enel plans to FRENCH aerospace group Zodiac
list a stake in its renewables unit Aerospace yesterday said it had reject-
despite difficult market conditions ed a preliminary takeover approach
and a potential change to Italy’s from state-controlled Safran and
renewable incentives scheme, Chief vowed to stay independent and even
Executive Fulvio Conti said seek more acquisitions.
Enel, with debts of €51.9bn at the Zodiac, the maker of aircraft sys-
end of March, aims in October to raise tems and cabin interiors, said its
€3-4bn from the sale of a minority board considered a “friendly” offer of
stake in Enel Green Power (EGP), in talks from Safran Chief Executive
what would be Europe’s largest initial Jean-Paul Herteman on an “industrial
public offering (IPO) so far this year. combination of the two groups”, but
“EGP can be floated in turbulent decided it did not make sense.
markets such as these. It is yielding Safran, which makes jet engines,
money, it is not a pie in the sky com- aircraft parts and security systems,
pany,” Conti said. did not comment.
14 News CITYA.M. 12 JULY 2010

ECONOMIST VIEWS: WHAT DO YOU FORECAST FOR THIS WEEK’S


Further falls JOBLESS FIGURES GIVEN THE FISCAL SQUEEZE?
MICHAEL SAUNDERS | CITIGROUP
Interviews by Jessica Mead

predicted for “ The Labour Force Survey jobless measure also fell sharply in the last month and this may also


now be starting to head markedly lower. We see the drop in unemployment as a sign that the econ-
omy may well have been recovering faster than generally realised in recent quarters.

jobless count PETER DIXON | COMMERZBANK

UK ECONOMY
“ Unemployment figures will be closely scrutinised in the months to come for indications that
the fiscal squeeze is taking its toll on the public sector. But the employment shakeout is only
expected to kick in and we look for claimant count to have fallen by a further 20,000 in June.


tive recovery in the labour market


BY JESSICA MEAD could be derailed. The Office for
Budget Responsibility (OBR) said
OFFICIAL data out on Wednesday is there would be 499,000 public sector JONATHAN LOYNES | CAPITAL ECONOMICS


expected to show that fewer Britons job losses by 2014-15 as a consequence
claimed jobless benefits in June, the of the measures taken in the Budget.
fifth successive monthly drop in the Some estimates are much higher. The good news on the labour market is unlikely to last much longer given the looming fiscal


claimant count measure. Capital Economics reckons that
Economists, on average, expect the 750,000 jobs could be lost over the
squeeze – we reckon that around 750,000 jobs could be lost over the next five years. We doubt
number of Britons claiming Job next five years. This is similar to the that firms will hire enough to offset much of this rise, given the recent sharp fall in productivity.
Seeker’s Allowance (JSA) will have fall- OBR’s forecasts ahead of the Budget.
en by 24,5000 last month. For the And with private sector firms still ANALYSIS l Employment intentions and actual employment Source: Capital Economics
wider International Labor struggling and cautious about the 2.0
2

% year-on-year
Organisation (ILO) measure, the con- recovery, it remains to be seen
sensus is for a 30,000 drop in the whether hiring in the private sector 1.5
three months to May. This would take will fully offset the impending job 1
1.0
headline unemployment down to losses in the public sector.
2.47m and at a rate of 7.9 per cent. Meanwhile, economists expect that 0 0.5
The data is also likely to show that underlying wage growth will have 0.0
employment rose modestly in the remained muted, reflecting relatively -1
three months to May. However, IHS high unemployment, workers’ job -0.5
Global Insight’s Howard Archer said insecurity and the ongoing need for -2 -1.0
that this is likely to be mainly due to companies to limit their costs in a
an increase in the number of part- still challenging environment.
Employment intentions (BoE agents' scores) - left-hand scale -1.5
-3
time workers outstripping still-falling Investec’s Philip Shaw said: “We are
full-time employment. forecasting a moderation in headline
Employment - right-hand scale -2.0
-4 -2.5
But analysts warn that the looming earnings growth to 2.8 per cent as the 00 01 02 03 04 05 06 07 08 09 10
fiscal squeeze means that the tenta- bonus effect wanes.”
CITYA.M. 12 JULY 2010 News 15

Future holds fear for business Ideal Shopping Direct


The indicator of businesses’ cur- “Businesses are worried about the
stakeholders mull sale

ECONOMY
rent trading recorded a 0.6 point future,” said BDO partner Peter
BY VICTORIA BATES increase in June to 101.6, prompting Hemington.
BUSINESSES remain pessimistic on BDO to forecast annualised GDP “The Comprehensive Spending World and Create and Craft television


RETAIL
the chances of a sustained economic growth of at least 2.5 per cent over Review in October will flesh out how channels, the newspaper said.
recovery, despite indicators showing the third quarter. the government plans to put its pro- THE founders of Ideal Shopping Ideal Shopping Direct sells via both
that trading levels are at their But the firm said its optimism posed spending cuts into practice and Direct are considering selling their 35 TV channels and the internet. Its
strongest since before the financial index, which reflects how businesses there will be some big bumps on the per cent stake in the home shopping main channel, Ideal World, is broad-
crisis. expect trading to fare in the future, road to recovery ahead.” channel group to cash in on a near cast on Freeview, Sky, Virgin Media
Accountancy firm BDO’s monthly dropped again from 97 in May to 96.9 BDO added that expected further doubling of the firm’s shares in the and Freesat. It also has three other
output index remained above 100 the in June, pointing to weaker growth rises in inflation and unemployment last year, the Sunday Times said. channels on Sky,
third consecutive month in June – two quarters ahead and fears over the would do little to improve business Paul Wright and Val Kaye could get Yesterday a spokeswoman for the
the first time conditions have sta- impact of the coming public spend- anxieties over their economic more than £20m for their stake in the company said no decision on a sale
bilised at that level since 2007. ing squeeze. prospects. AIM-listed firm, which runs the Ideal had been taken.

Charity gets BODY SHOP LAUNCHES PARTY SALES NEWS | IN BRIEF


China trade surplus up on exports
China’s trade surplus in June topped
expectations on surprising strength in

Goldman gift exports that suggests the global eco-


nomic recovery has remained on track
despite worries about a fresh slowdown.
Chinese exports in June rose 43.9 per
cent from a year earlier, beating fore-
casts of a 38 per cent rise, the customs
administration said at the weekend.
than $1bn over toxic sub-prime mort- Imports rose 34.1 per cent year on year,

PHILANTHROPY
BY DAVID ELWARD gage asset sales. in line with projections. That left China
Goldman has been working with with a trade surplus of $20bn (£13.3bn),
GOLDMAN Sachs has stepped up its the Mayor’s Fund to establish the new its largest in nine months.
drive to repair its image in the City project and has committed to fund-
with a donation of £1.5m to the ing the work in East London for the Sir Crispin Davis takes new role
Mayor’s Fund for London, which will next five years. Former Reed Elsevier chief executive Sir
help put young people into work. The Sir Trevor Chinn, chairman of the Crispin Davis has taken up a new job as
donation will be used to fund the Mayor’s Fund, said the “generous chairman of StarBev, which was bought
Shoreditch Brokerage, one of the funding” would allow the Shoreditch out by private equity firm CVC last year
Fund’s flagship projects in the capi- Brokerage to roll out schemes to help from Anheuser-Busch InBev. Davis
tal. lift young people out of poverty. already holds a non-executive director-
The world’s largest investment “Getting young people into decent ship at pharmaceuticals giant
bank was among those targeted by jobs is one of the greatest social and GlaxoSmithKline.
Boris Johnson earlier this year for pay- economic challenges we face as a soci-
ing staff “excessive” bonuses when ety. And nowhere is this issue more A&O lifts freeze on salaries
the taxpayer had bailed them out. acute than in the Fund’s initial area Law firm Allen & Overy has lifted its
The Mayor said the banks had an of activity, Shoreditch,” he said. salary freeze and awarded staff an extra
obligation to improve their sense of “A significant gap exists between day of annual leave after seeing a profit
duty to the public if they were to the vacancies employers offer and the increase earlier this month. Allen &
repair reputations which had been skills and abilities of the communi- Overy said its turnover had slumped 4
tarnished during the credit crunch. ty’s young people. There are many per cent over the past year to £1.05bn,
The Wall Street firm is currently projects and schemes that focus on but profits per equity partner rose by a
under investigation in the UK by the different parts of the employment The environmentally friendly cosmetic chain founded by the late Anita Roddick is to tenth to £1.1m due to the firm downsiz-
Financial Services Authority after US chain, such as training, advice or recruit 3,500 “mini-Anitas” to sell its wares to family and friends. Consultants for The ing its operations. The average bonus for
regulator, the Securities and recruitment. However, these schemes Body Shop will pay an initial £30 to sign-up to selling products at house parties. a newly-qualified solicitor is now
Exchange Commission, charged it are disparate, of varying quality, and Deborah Stead, managing director of Body Shop at Home, said the scheme could offer £5,000 a year, while an average senior
with defrauding investors of more they don’t coordinate or connect.” stay-at-home mums a good income. Picture: GETTY associate would receive £39,500.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Albertine Brandon

investment banking group. nanotechnology IPO on the Alternative Hain is also an experienced expert
Guy’s and St Thomas’ Charity Corinne Smith joins Jefferies after 15 Investment Market in 2004. Having witness on accounting matters and has
The charity has appointed fund management years of experience gleaned at Barclays sold the business to Cooper Lighting for given evidence in both the High Court
veteran Nichola Pease as a trustee, taking on Capital and Lehman Brothers, where around £15m, he then left the com- and the county courts.
the position held by ex-Man Group chief she was most recently global co-head bined business to become a business
Stanley Fink until last month. of alternative energy investment bank- adviser, including as a non-executive Norton Rose
Pease is deputy chairman of JO Hambro ing. director responsible for M&A at The law firm has expanded its banking
Capital Management, which she joined in 1998 Stonewood Group. practice by relocating London-based
as chief executive. Cavendish Corporate Finance partner Davide Barzilai to its Hong
She also previously helped to set up the Technology expert Joe Stelzer has RSM Tenon Kong office.
Banking on the Young charity in 2007, which joined the corporate finance group as a The entrepreneurial advisory firm has Barzilai has particular expertise in
supports young people setting up businesses. partner, specialising in technology, hired Graham Hain as a director in Islamic and conventional shipping and
defence and industry. London, responsible for leading the asset finance, Islamic treasury manage-
Jefferies Corinne Smith as a managing director Stelzer was previously chief execu- London and South East forensic ment, Islamic project and property
The investment bank has hired Amy and co-head of the global cleantech tive of Polaron, where he led the first accounting team. finance and structured trade finance.

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com
16 News CITYA.M. 12 JULY 2010

City must stop making noise just for attention


have on our international competi- and having met with Commissioner posals – the US has issued guidelines be taken.
tiveness. Barnier in Brussels last week, I feel but has shown little inclination to leg- And from my initial discussions
But, like the boy who cried wolf, we the threat these proposals pose to the islate on this issue – there is a danger with the Treasury, it appears that the
must guard against merely making UK financial services industry has that the EU rules will not only fail to FSA – which thanks to a key clause in
noise in order to attract attention. been overestimated. eliminate the risk taking behaviour the text will have the power to decide
Constantly issuing shrill objections Banks in the UK have already gone they are meant to target, but will also the degree to which the proposals can
to EU proposals based on a natural to great lengths to meet Basel and place our international competitive- and should be enforced against non-
aversion to European regulation – the G20-agreed standards and many of ness in serious jeopardy. credit institutions – will not extend
CITY COMMENT UK is already regarded as a reluctant the institutions I have spoken to This would be particularly true if these rules in this way.
outsider by some of our European claim the FSA’s approach is tougher the rules were applied to Hedge It is much more likely that remu-
STUART FRASER partners – rather than a sound analy-
sis of the potential consequences is
than the EU’s new rules.
The fact that other countries in the
Funds and Asset Managers based in
the UK – the City is home to 80 per
neration for Hedge Funds and Asset
Managers will be covered by the paral-

A
s regular readers of this col- clearly counter-productive. EU have committed to following our cent of the EU’s Hedge Fund indus- lel, less onerous and decidedly more
umn will know, the City of The widespread anger that greeted lead is to be welcomed but the real try – where the impact could be disas- flexible requirements contained in
London is acutely aware of the the European Union’s new rules on dangers lie in the global marketplace. trous. Fortunately, and contrary to the AIFM directive.
impact that any proposals ema- bank bonuses is, I fear, a case in point. With many other G20 members yet many recent reports, there is no clear Stuart Fraser is the Policy Chairman at
nating from the European Union may Having read the proposals in detail to outline any kind of concrete pro- indication that any such action will the City of London Corporation

NEWS | IN BRIEF GOOGLE BACK IN CHINA TanzaniteOne


Sage advice makes book a hit
An obscure book about the collapse of the
German economy in the 1920s has become a
Food Standards Agency scrapped
Britain's coalition government will abolish its
food watchdog, set up to protect consumers
gemstone sales
“must read” among financiers after being
tipped by Warren Buffett. Buffett, known as
the Sage of Omaha, recommended “When
after the mad cow disease crisis, and reas-
sign its duties elsewhere, a government
source said yesterday. The cost-saving move
regain glitter
Money Dies” written in 1975 by Adam will fulfil a pre-election pledge by Health
Fergusson, a one-time adviser to Tory minis- Secretary Andrew Lansley to strip the Food


MINING
ter Lord Howe. Since then copies have sold Standards Agency of its responsibilities for
BY VICTORIA BATES
for up to 1,600 and a new edition is coming nutrition and diet advice.
GEMSTONE producer TanzaniteOne
has emerged sparkling after a gloomy
couple of years that saw sales plunge
and the company fight off an
unwanted takeover bid from rival
Gemfields.

London
TanzaniteOne will this morning
tell the market that it achieved $5.4m
(£3.6m) of sales in the second quarter
of 2010 – an 80 per cent improvement
on the lacklustre first three months
of the year and the best quarterly

Night Hike sales performance in two years.


The company said the better results
were due to an improved demand for
tanzanite gemstones as the economic
Friday 17 September 2010 recovery gets underway, as well as a
growing revenue stream from its own
cutting and polishing division.
A June rough tanzanite sale by the
firm in Dubai achieved an average
price-per-carat of $13.40, significantly
higher than the $5.50 per carat at a
May sale of lower-quality stones.
China’s Ministry of Industry and Information Technology has renewed the In late 2008, TanzaniteOne success-
Chinese operating licence of internet giant Google. Guxiang, Google’s China fully rebutted an attempt by
operator, has reportedly agreed that government regulators will have the right Gemfields to take control of the com-
to supervise all the content provided by the firm. Picture: REUTERS pany.

See London in
Buckle up for profit
warnings, E&Y says
a different
light...
How far will you go to
change the lives of people
affected by cancer?
Walk 10 or 20 miles
ECONOMY troubled sectors during the three- be in for another rough ride. A

through late night London. month period. Many of the prob- number of companies have already
BY OLIVER SHAH
lems came from early cancellations cautioned they expect much
With exclusive access
COMPANIES are in for a “rough or interruptions of state contracts. tougher times ahead when further
to iconic buildings. ride” next year as the coalition gov- After chancellor George Osborne fiscal tightening reins in public sec-
ernment’s austerity measures revealed a programme of spending tor and consumer spending.”
begin to suck life from the private cuts and tax hikes designed to claw Alan Hudson, also of E&Y, said:
sector, accountant Ernst & Young back £113bn per year from taxpay- “It looks like 2011 will be a crunch
(E&Y) has cautioned. ers by 2015, E&Y said the stockmar- year. It is then the first significant
www.maggiescentres.org/nighthike Investors can expect to see a ket should prepare for an increase wave of fiscal tightening, including
resurgence in bad news from in profit warnings. the rise in VAT, will likely coincide
Register today or call 0300 123 1801 British corporates, E&Y said, after Keith McGregor, restructuring with interest rate rises and the ups-
the previous government’s fiscal partner at E&Y, said: “UK Plc could lope of a refinancing peak.”
splurge helped bring profit warn- A stronger private sector upturn
ings to a seven-year low in the sec- Ernst & Young’s Keith by the time the tightening kicks in
ond quarter. could help soften the blows,
Just 45 firms issued warnings McGregor said com- Hudson added, but on the other
between April and June, down panies were already hand uncertainty around
Maggie Keswick Jencks Cancer Caring Centres Trust
(Maggie’s) is a registered charity, No. SC024414 A partnership between Maggie’s and Open City from 54 in the first quarter and the warning of tougher Eurozone sovereign debt problems
lowest number since 2003. Leisure times ahead and wider debt markets could exac-
and support services were the most erbate the squeeze on companies.
CITYA.M. 12 JULY 2010 News 17

Financial companies HOW THE CITY’S STRESS LEVELS LOOK


ANALYSIS l Firms with significant or critical problems
2500 2,404
2,209 Central London City
NEWS | IN BRIEF
KKR switches to NYSE

left behind in upturn


Kohlberg Kravis Roberts & Co’s long-
2000 1,901 1,886 awaited listing on the Big Board brings a
1,750 wide investor audience to the iconic pri-
1,616
1,529 1,518 vate equity firm and could be a bell-
1500 1,435
wether for rivals looking to follow suit.

Source: Begbies Traynor


1,278
1,104 The buyout firm will switch from
1,060 Amsterdam-based Euronext on July 15
already-stretched balance sheets of 1000 to the New York Stock Exchange, joining
lenders, insurers and services outfits. rival Blackstone Group, which went pub-
More than 110 financial services com- 500
lic in 2007.
panies gave off signs of distress last
for month, up from 85 in May. Those pro- BC Partners in $3.1bn deal
viding support to the property sector 0 Private equity firms BC Partners and
also experienced greater difficulties. Jan Feb Mar Apr May June Silver Lake Partners are set to buy US
BY OLIVER SHAH Just under 100 corporate estate ANALYSIS l London-wide firms in distress by sector in June healthcare services firm MultiPlan from
agents, architects and surveyors Key:
two other buyout shops, the companies
STRESS levels are mounting at finan- found themselves in trouble, up from Automotive Retail announced, in a deal worth about $3.1bn
cial services firms even as corporates 92 in May. Construction Wholesale (£2.1bn) They are buying it from rival
across the board begin to recover, Nick Hood of Begbies Traynor, said: buyout firms Carlyle Group and Welsh,
according to the latest monthly City “Despite talk of better times for City I.T. Transport Carson, Anderson & Stowe.
A.M./Begbies Taynor health monitor businesses, it seems they are still suf- Engineering Others
for the Square Mile. fering the fallout from the financial New cartoon leads box office
While companies in Greater crisis. As public sector cuts begin to Print & Packaging A new family cartoon, “Despicable Me”,

%
London showed a marked improve- bite later in the year, there seems lit- Manufacturing featuring the voice of Steve Carell, easily
ment in June, with 23 per cent fewer tle prospect of a significant improve- took the top spot at the weekend box
suffering from serious problems, ment in the financial health of Financial Services office in North America yesterday, virtu-
woes continued to pile up in the busi- London-based companies.” Property Services
ally assuring Universal Pictures of a
ness district. The number of firms lucrative franchise with its first foray
struggling to finance themselves in Nick Hood, executive Hire/rental Services into 3D animation. The film earned an
central London rose eight per cent to chairman of Begbies Recruitment estimated $60.1m (£40m) across the
1,886. In the City itself, 1,435 busi- United States and Canada during the
nesses were on the brink of insolven- Traynor, said prospects Advertising three days beginning Friday, the General
cy, an increase of 12 per cent. were no better next Professional services Electric unit said, doubling pre-opening
Our numbers indicate the nascent year for many firms Other B2B services
forecasts. The film was produced for
recovery is putting strain on the about $69m.

Dubai World set to


update over debts
FINANCIAL RESTRUCTURING meeting will take place in the emi- some months from this presenta-

BY DAVID ELWARD rate on July 22, more than three tion as banks inevitably come back
weeks behind schedule. with questions.”
BELEAGUERED state-owned invest- A source close to the restructur- The agreement, formalised in
ment vehicle Dubai World is to ing confirmed to City A.M. the joint May, accounts for about 60 per cent
meet its creditors later this month meeting between Dubai World and of Dubai World’s bank lenders. The
to update them on its multi-billion the creditors will be taking place, meeting in 10 days will require the
dollar debt restructuring plans. but said a final resolution is not remaining creditors holding 40 per
It follows an agreement made in expected for some months. cent of its debt to consider the deal
principle in May with the creditors’ “The meeting is for the coordi- before a final agreement can be
coordinating committee for the nating committee and company to reached. Banks hold $14.4bn of the
government-owned conglomerate present the detailed plan to the debts being restructured and the
to restructure $23.5bn (£15.6bn) of wider banking group,” they said. government holds the rest.
debt, which left the emirate uncer- “But no vote or agreement will be Dubai World shocked global
tain about its economic health. sought at the meeting. It is just a markets last November when it
Three sources from the group’s presentation and Q&A. asked for a six-month suspension
80 creditors yesterday said the “Final agreement will still take on debt repayments.

BEST OF THE BROKERS


ANALYSIS l William Hill ANALYSIS l Hays ANALYSIS l Unilever
220 p 120 p 2,000 p
1,837.00
210
348.00
1,950 9 Jul
179.10 110
200 9 Jul 9 Jul 1,900

190 1,850
100
180 1,800

170 90 1,750

12 Mar 30 Apr 21 May 11 Jun 1 Jul 12 Mar 30 Apr 21 May 11 Jun 1 Jul 12 Mar 30 Apr 21 May 11 Jun 1 Jul

WILLIAM HILL HAYS UNILEVER


Bank of America Merrill Lynch (BoAML) Royal Bank of Scotland (RBS) has given JP Morgan Cazenove has rated Unilever
has upgraded William Hill to a “buy” rat- Hays a “buy” rating and said that net fee as “overweight” and said that while it
ing and said it believes that the stock is growth was better than expected. RBS thinks the market has started to believe
high quality and at good value. Strong said that although upward pressure is in the food group’s top line revival, the
trends online and improvement in building on the 2011 forecasts, it margin story resulting from better vol-
machines are key catalysts for 2010, remains unchanged at this early stage of ume, mix and cost initiatives remains
according to BoAML, which said that the year. RBS said the strong balance largely misjudged. JP Morgan said fears
execution risk is believed to be low. sheet augurs well for dividend payout. of tougher second half were overdone.

To appear in Best of the Brokers email your research to notes@cityam.com


INSURANCE COMPANIES WILL ENTER.
WILL YOU?

Insurance companies are able to enter the inaugural City A.M. Awards.
But that’s not all. So can retail and investment banks, hedge funds and
private equity firms, large and small cap firms, fund managers, property
firms and law firms. In fact, every type of business operating in financial
services in London can enter these prestigious new awards.
Entry is online and there are 15 company categories recognising
corporate excellence and 6 categories for the individual or team
stars of the financial community to enter.
The deadline for entries is 22 July 2010
For full details and helpful contact points please
visit the Awards website: www.CityAMAwards.com
For information on becoming a sponsor of
the City A.M. Awards contact Harry Owen:
020 7015 1241/ harry.owen@cityam.com
The Awards dinner and presentation ceremony
will take place on: Thursday 28 October 2010
at Grange St Paul's Hotel, London EC4.

headline sponsor

in association with

official venue partner Awards reception sponsor category sponsors


Markets&Investment 19

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 . . . . . . . . . . . . . . . . . . . . . . . .278.40* +1.00 314.80 216.75 Cobham . . . . . . . . . . . . . . . . . . .228.50 +2.20 278.60 173.20 Investec . . . . . . . . . . . . . . . . . . .468.00 +2.70 565.00 324.25 Sainsbury(J) . . . . . . . . . . . . . . . .343.00* +2.00 373.00 307.60
3i Infrastructure . . . . . . . . . . . . . 112.80* –1.00 115.00 89.35 COLT Group . . . . . . . . . . . . . . . .124.10 –1.30 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .52.05 +1.25 71.75 31.75 Schroders . . . . . . . . . . . . . . . . .1226.00 –4.00 1450.00 767.00
A.B. Foods . . . . . . . . . . . . . . . .1007.00 +12.00 1045.00 752.00 Compass . . . . . . . . . . . . . . . . . .537.00* –2.00 574.50 307.75 Jardine Lloyd Thompson. . . . . . .555.50 +1.50 604.50 399.00 Schroders N/V. . . . . . . . . . . . . .1025.00 +6.00 1185.00 644.50
Aberdeen Asset Man . . . . . . . . . .128.40 –0.10 155.60 111.00 Cookson . . . . . . . . . . . . . . . . . . .426.60 +3.00 616.00 222.00 Johnson Matthey . . . . . . . . . . .1558.00* +16.00 1814.00 1117.00 Scot. & Sthrn Energy. . . . . . . . . 1180.00 –1.00 1206.00 357.50
Admiral. . . . . . . . . . . . . . . . . . .1474.00 +6.00 1483.00 870.50 Croda Intl . . . . . . . . . . . . . . . . .1091.00 — 1101.00 536.00 Kazakhmys . . . . . . . . . . . . . . . .1088.00 +27.00 1634.00 574.50 Scottish Mortgage. . . . . . . . . . . .574.00 +4.50 623.50 376.00
Aegis . . . . . . . . . . . . . . . . . . . . .108.20 +1.80 137.30 81.50 CSR . . . . . . . . . . . . . . . . . . . . . .381.80 +5.30 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .128.10 +1.40 162.00 98.45
Afren . . . . . . . . . . . . . . . . . . . . . .86.50 –0.95 111.00 50.25 Daily Mail ‘A’ . . . . . . . . . . . . . . . .461.10* +3.60 539.00 282.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .219.30 –0.70 255.00 181.40 SEGRO . . . . . . . . . . . . . . . . . . . .269.70 –4.50 403.10 244.00
African Barr Gold . . . . . . . . . . . .584.50 –9.00 685.00 520.50 Dana Petroleum . . . . . . . . . . . .1415.00 — 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .134.70 +2.30 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .562.00 –2.50 656.50 394.30
Aggreko . . . . . . . . . . . . . . . . . .1543.00 –2.00 1562.00 492.50 Davis Service . . . . . . . . . . . . . . .370.90 –3.20 442.30 312.25 Lancashire Hldgs . . . . . . . . . . . .520.50 +5.00 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1277.00* +4.00 1310.00 921.00
Alliance Trust . . . . . . . . . . . . . . .313.10* +0.10 352.70 261.00 De La Rue . . . . . . . . . . . . . . . . . .921.00* –6.50 1021.00 808.50 Land Securities . . . . . . . . . . . . . .579.00* –8.50 743.50 416.00 Shaftesbury . . . . . . . . . . . . . . . .379.50 –3.80 426.50 285.25
AMEC . . . . . . . . . . . . . . . . . . . . .864.00 +4.50 891.00 603.50 Debenhams . . . . . . . . . . . . . . . . .61.10 –1.15 91.95 51.95 Legal & General . . . . . . . . . . . . . .86.10 +2.25 94.40 49.60 Shire. . . . . . . . . . . . . . . . . . . . .1442.00 +14.00 1526.00 818.00
Amlin . . . . . . . . . . . . . . . . . . . . .410.40 +2.40 428.50 291.00 Derwent London . . . . . . . . . . . .1288.00 –17.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .61.71 +1.01 75.58 40.42 SIG . . . . . . . . . . . . . . . . . . . . . . .106.90 +2.40 146.60 86.75
Anglo American . . . . . . . . . . . .2422.00 +10.00 3015.50 1590.00 Dexion Absolute . . . . . . . . . . . . .138.40 –0.60 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . .108.50 +1.40 149.10 74.50 Smith & Nephew . . . . . . . . . . . . .607.00 +23.00 700.50 435.25
Antofagasta . . . . . . . . . . . . . . . .886.00 +34.50 1100.00 568.50 Diageo . . . . . . . . . . . . . . . . . . .1088.00 +3.00 1176.00 857.00 London Stk Exchange . . . . . . . . .597.00 +11.00 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1107.00 –5.00 1186.00 677.50
Aquarius Platinum . . . . . . . . . . .306.00 +6.30 490.00 172.75 Dimension Data . . . . . . . . . . . . . .94.85 +0.95 105.00 54.75 Lonmin . . . . . . . . . . . . . . . . . . .1481.00 +22.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . . . 411.30 –0.70 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .295.50 +5.10 362.40 116.75 Domino’s Pizza . . . . . . . . . . . . . .403.00 +3.60 410.00 204.50 Man . . . . . . . . . . . . . . . . . . . . . .219.70* +1.30 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .796.50 +5.00 928.00 512.50
Arriva . . . . . . . . . . . . . . . . . . . . .766.50 –0.50 782.50 379.75 Drax . . . . . . . . . . . . . . . . . . . . . .393.10 +3.10 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .348.00* — 412.70 311.50 Spirax-Sarco Eng . . . . . . . . . . .1521.00 +7.00 1591.00 809.00
Ashmore . . . . . . . . . . . . . . . . . . .252.20 –0.90 311.20 183.25 DSG Intl . . . . . . . . . . . . . . . . . . . .27.09 –0.09 39.75 19.25 Meggitt . . . . . . . . . . . . . . . . . . . .318.70 +2.40 331.00 154.75
Astrazeneca . . . . . . . . . . . . . . .3222.00 +38.00 3262.00 2644.00 Dunelm . . . . . . . . . . . . . . . . . . . .352.80 +9.30 438.40 202.50 Melrose . . . . . . . . . . . . . . . . . . .225.90 +0.40 251.50 90.00 Spirent Comms . . . . . . . . . . . . . . 115.20 — 127.80 55.00
Atkins(Ws) . . . . . . . . . . . . . . . . .688.00 +2.50 747.00 532.50 Easyjet . . . . . . . . . . . . . . . . . . . .414.30 +4.80 499.90 260.00 Mercantile IT . . . . . . . . . . . . . . . .890.50* –2.50 1002.00 726.00 Sports Direct Intl . . . . . . . . . . . . .109.90 +1.10 134.00 72.50
Autonomy Corp . . . . . . . . . . . .1875.00 –25.00 2012.00 1121.00 Edinburgh Inv Tst . . . . . . . . . . . .393.00* –1.10 412.40 298.50 Michael Page Intl. . . . . . . . . . . . .393.40 +7.60 461.50 232.75 SSL Intl . . . . . . . . . . . . . . . . . . . .868.00 +6.50 893.50 522.50
Aveva . . . . . . . . . . . . . . . . . . . .1271.00* +31.00 1277.00 666.50 Electrocomponents . . . . . . . . . . .223.70* +1.50 245.00 134.25 Micro Focus . . . . . . . . . . . . . . . .440.60 +3.60 550.00 300.90 St James’s Place . . . . . . . . . . . . .230.10 –4.70 296.90 172.25
Aviva . . . . . . . . . . . . . . . . . . . . .341.30 +3.00 474.00 274.75 EnQuest . . . . . . . . . . . . . . . . . . .101.80 –0.10 112.70 87.35 Millen & Copthorne . . . . . . . . . . .423.00 –7.00 496.30 227.75 Stagecoach. . . . . . . . . . . . . . . . .184.40 +1.50 204.90 123.50
Babcock International . . . . . . . . .619.00* –5.50 660.50 452.75 Essar Energy . . . . . . . . . . . . . . .447.70 –0.60 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .246.90 +2.70 281.70 165.25 Standard Chartered . . . . . . . . . .1718.50 +24.00 1847.00 1119.00
BAE Systems . . . . . . . . . . . . . . .321.70 +1.20 389.90 294.20 Eurasian Nat Res . . . . . . . . . . . .869.00 +3.50 1276.00 632.00 Mitchells & Butlers . . . . . . . . . . .298.10 +2.50 343.90 228.30 Standard Life . . . . . . . . . . . . . . .190.60 +3.70 237.00 170.00
Balfour Beatty . . . . . . . . . . . . . . .245.70 –0.70 328.85 228.60 Euromoney Inst Inv . . . . . . . . . . .600.00* +13.50 630.00 218.25 MITIE . . . . . . . . . . . . . . . . . . . . .213.70* –3.90 281.70 198.70 SuperGrp . . . . . . . . . . . . . . . . . .819.50 –0.50 825.00 499.00
Barclays . . . . . . . . . . . . . . . . . . .300.45 –1.55 394.25 253.40 Experian . . . . . . . . . . . . . . . . . . .605.00* +8.00 664.50 437.50 Mondi . . . . . . . . . . . . . . . . . . . . .408.40 +8.60 488.00 187.50 TalkTalk . . . . . . . . . . . . . . . . . . .120.40 — 147.10 106.60
Barratt Development . . . . . . . . . .102.10 — 193.31 89.10 F&C Comm Prop . . . . . . . . . . . . . .92.05 –1.20 96.80 73.50 Monks Inv Tst . . . . . . . . . . . . . . .287.50* +0.10 321.20 223.00 Talvivaara Mining . . . . . . . . . . . .397.00 +9.00 501.50 323.75
BBA Aviation . . . . . . . . . . . . . . .190.90 –0.20 220.00 111.50 Ferrexpo . . . . . . . . . . . . . . . . . . .270.00 +0.70 396.20 112.00 Morrison Wm . . . . . . . . . . . . . . .280.40 –0.70 306.30 241.00 Tate & Lyle . . . . . . . . . . . . . . . . .484.10* +4.10 509.00 284.75
Beazley. . . . . . . . . . . . . . . . . . . . 119.50 +0.60 124.80 95.25 FirstGroup . . . . . . . . . . . . . . . . .385.40 +3.50 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .842.00 –4.50 893.50 593.50 Taylor Wimpey . . . . . . . . . . . . . . .27.22 –0.16 54.90 24.29
Bellway. . . . . . . . . . . . . . . . . . . .612.00 –12.00 927.50 580.50 Foreign & Col Inv Tst. . . . . . . . . .270.50 –0.40 297.20 210.25 National Express. . . . . . . . . . . . .231.20 –0.20 256.80 135.99
Berkeley . . . . . . . . . . . . . . . . . . .827.00 –6.00 989.50 735.00 Fresnillo . . . . . . . . . . . . . . . . . .1089.00 +29.00 1115.00 447.00 National Grid . . . . . . . . . . . . . . .494.90* –7.10 607.65 469.37 Telecity . . . . . . . . . . . . . . . . . . . .394.10 +0.20 455.00 300.00
BG . . . . . . . . . . . . . . . . . . . . . .1081.50 –5.00 1248.00 966.90 G4S . . . . . . . . . . . . . . . . . . . . . .264.90 –1.10 285.70 208.50 Next . . . . . . . . . . . . . . . . . . . . .2058.00 –12.00 2360.00 1541.00 Templeton Emrg Mkts . . . . . . . . .543.00* +6.50 598.00 349.50
BHP Billiton . . . . . . . . . . . . . . .1852.50 +33.50 2346.00 1274.50 Genesis Emerging Mkts Fd . . . . .450.10 –5.90 484.00 370.00 Northumbrian Water . . . . . . . . . .325.20 +2.60 327.20 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .395.05* +1.10 454.90 347.60
BlackRock Mining . . . . . . . . . . . .550.00 +7.00 654.50 346.00 GKN . . . . . . . . . . . . . . . . . . . . . .130.20 +3.20 155.00 71.75 Old Mutual . . . . . . . . . . . . . . . . . 112.50 –0.60 127.20 74.60 Thomas Cook . . . . . . . . . . . . . . .191.50 +2.40 277.20 172.30
BlueBay . . . . . . . . . . . . . . . . . . .294.10 –5.40 393.00 188.00 GlaxoSmithKline . . . . . . . . . . . . 1142.00* — 1347.00 1075.00 Partygaming . . . . . . . . . . . . . . . .231.80 –4.40 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .234.50 +4.20 261.10 142.50
Booker . . . . . . . . . . . . . . . . . . . . .41.18* –0.09 49.50 33.00 Great Portland Estates . . . . . . . .300.00 –0.30 332.10 203.75 Pearson . . . . . . . . . . . . . . . . . . .909.00 +2.00 1069.00 574.00 Travis Perkins . . . . . . . . . . . . . . .792.50 +9.50 915.00 543.50
BP . . . . . . . . . . . . . . . . . . . . . . .364.80 –2.20 658.20 296.00 Greene King . . . . . . . . . . . . . . . .434.00 –2.50 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .576.00 +3.00 582.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .222.80 +1.70 313.90 202.30
Brit Insurance . . . . . . . . . . . . . . .900.50* –6.50 975.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .518.00* –5.50 562.50 309.00 Persimmon . . . . . . . . . . . . . . . . .386.40 –1.60 534.50 340.20 Tullett Prebon . . . . . . . . . . . . . . .343.50 +0.50 436.20 261.20
British Airways . . . . . . . . . . . . . .206.70 +1.30 255.80 117.70 Halma . . . . . . . . . . . . . . . . . . . . .282.00 –1.30 287.40 184.00 Petrofac . . . . . . . . . . . . . . . . . .1236.00 –10.00 1294.00 633.50 Tullow Oil . . . . . . . . . . . . . . . . . 1128.00 –2.00 1375.00 834.50
British Amer. Tob . . . . . . . . . . .2208.50 –2.50 2335.50 1676.00 Hammerson . . . . . . . . . . . . . . . .355.00 –2.70 460.30 277.00 Petropavlovsk . . . . . . . . . . . . . .1240.00 +25.00 1370.00 516.50 UK Commercial Prop. . . . . . . . . . .78.10 –1.90 84.90 62.25
British Empire Tst . . . . . . . . . . . .421.60 –0.50 467.90 338.50 Hargreaves Lansdown . . . . . . . .332.00 –3.00 387.00 197.25 Premier Farnell . . . . . . . . . . . . . .233.90 –1.10 252.60 122.25 Ultra Electronics . . . . . . . . . . . .1570.00 –1.00 1678.00 1094.00
British Land . . . . . . . . . . . . . . . .447.50* –9.10 532.00 356.50 Hays . . . . . . . . . . . . . . . . . . . . . . .96.65 +1.50 119.00 80.00 Premier Oil . . . . . . . . . . . . . . . .1410.00 –5.00 1437.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1835.00 +8.00 2024.00 1422.00
Britvic. . . . . . . . . . . . . . . . . . . . .497.10 –3.90 505.00 286.25 Henderson . . . . . . . . . . . . . . . . .124.40 –1.30 157.80 87.75 Provident Financial . . . . . . . . . . .856.00 +5.00 986.00 763.00
Brown(N.) . . . . . . . . . . . . . . . . . .245.70* –6.00 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .427.20 –2.80 587.00 368.70 Prudential . . . . . . . . . . . . . . . . . .537.00 +19.00 665.00 350.25 United Utilities . . . . . . . . . . . . . .555.00* +7.00 575.00 429.00
BSkyB . . . . . . . . . . . . . . . . . . . .693.50 –1.00 732.00 465.00 Hikma Pharma . . . . . . . . . . . . . .725.00 +13.00 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .350.00 +2.50 356.40 198.00 Utd Business Media . . . . . . . . . .517.50 +0.50 579.50 364.75
BT . . . . . . . . . . . . . . . . . . . . . . .140.00 +4.00 151.00 99.50 Hiscox . . . . . . . . . . . . . . . . . . . .350.00 +1.00 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . .125.50 +0.20 179.10 113.90 Vedanta Resources . . . . . . . . . .2300.00* +36.00 2967.00 1277.00
Bunzl . . . . . . . . . . . . . . . . . . . . .689.50 –1.50 784.50 510.00 Hochschild Mining . . . . . . . . . . .306.60 –11.50 370.60 220.00 Randgold Resources. . . . . . . . .6225.00 –20.00 6600.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . . 1144.00 –14.00 1193.00 563.50
Burberry . . . . . . . . . . . . . . . . . . .794.00* +7.00 815.50 403.25 Home Retail . . . . . . . . . . . . . . . .226.30* –0.50 336.50 208.50 Reckitt Benckiser . . . . . . . . . . .3193.00 +77.00 3667.00 2686.00 Vodafone . . . . . . . . . . . . . . . . . .143.50* +0.20 153.80 111.90
Cable & Wire Comms . . . . . . . . . .59.65* –0.35 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2107.00* +3.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .517.50 +1.00 548.00 403.75 Weir . . . . . . . . . . . . . . . . . . . . . 1168.00 +9.00 1183.00 439.50
Cable & Wire Wwide . . . . . . . . . . .87.95* +0.30 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .627.10 +3.90 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .72.80 –0.25 125.50 61.00 WH Smith . . . . . . . . . . . . . . . . . .408.10 –6.80 551.00 396.00
Cairn Energy. . . . . . . . . . . . . . . .450.60 –3.20 460.50 306.80 Hunting . . . . . . . . . . . . . . . . . . .489.80 +8.10 659.50 385.75 Rentokil Initial . . . . . . . . . . . . . . .109.90 –0.90 140.20 82.25 Whitbread . . . . . . . . . . . . . . . . .1401.00* –4.00 1645.00 778.50
Caledonia Invs . . . . . . . . . . . . .1571.00 –39.00 1759.00 1495.00 ICAP . . . . . . . . . . . . . . . . . . . . . .431.20 +11.20 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .70.00 — 99.15 58.45 William Hill . . . . . . . . . . . . . . . . .179.10 +3.40 217.80 160.50
Capita . . . . . . . . . . . . . . . . . . . . .740.00 –4.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .470.30 +0.30 475.10 261.25 Rexam . . . . . . . . . . . . . . . . . . . . 311.00 +5.60 331.20 222.50 Witan Inv Tst . . . . . . . . . . . . . . . .434.90 +1.90 487.00 329.50
Capital & Counties . . . . . . . . . . .109.20 –0.80 125.40 99.60 Imagination Tech Gp . . . . . . . . . .307.10 –1.60 311.60 135.50 Rightmove . . . . . . . . . . . . . . . . .616.00 –12.00 729.00 334.00 Wolseley . . . . . . . . . . . . . . . . . .1388.00 +3.00 1742.00 1026.00
Capital Shopping Centres . . . . . .317.20 –3.30 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .721.00 +1.50 756.50 275.25 Rio Tinto . . . . . . . . . . . . . . . . . .3172.50 +99.00 4104.00 1822.00
Carillion . . . . . . . . . . . . . . . . . . .320.90 +2.70 361.90 244.00 Imperial Tobacco. . . . . . . . . . . .1883.00 –1.00 2159.00 1575.00 RIT Capital Partners . . . . . . . . . 1187.00 –23.00 1215.00 890.00 Wood Group (John). . . . . . . . . . .341.90 –0.30 411.70 231.25
Carnival . . . . . . . . . . . . . . . . . .2208.00 +8.00 2937.00 1574.00 Inchcape. . . . . . . . . . . . . . . . . . .270.20 +2.70 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .582.50 +1.00 631.50 346.50 WPP . . . . . . . . . . . . . . . . . . . . . .648.50 +1.50 744.00 380.50
Catlin . . . . . . . . . . . . . . . . . . . . .365.80 +4.60 380.50 284.75 Informa . . . . . . . . . . . . . . . . . . . .363.90 –1.00 439.40 217.75 Rotork . . . . . . . . . . . . . . . . . . .1378.00* +11.00 1482.00 779.50 Xstrata . . . . . . . . . . . . . . . . . . . .943.60 +7.60 1344.50 555.10
Centamin Egypt . . . . . . . . . . . . .159.20 +2.20 174.75 77.86 Inmarsat . . . . . . . . . . . . . . . . . . .735.00 –0.50 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .44.25 –0.11 58.95 28.25 Yell Group. . . . . . . . . . . . . . . . . . .26.68 –0.24 86.00 21.00
Centrica . . . . . . . . . . . . . . . . . . .308.10 –0.10 320.00 212.50 Intercontl Hotels . . . . . . . . . . . . 1120.00 +6.00 1244.00 584.50 Royal Dutch Shell A . . . . . . . . .1760.00 +18.50 2068.50 1431.00 LONDON TOP 250 BY MARKET CAPITALISATION
Charter Intl . . . . . . . . . . . . . . . . .673.00 +16.00 855.50 406.50 Intermediate Capital . . . . . . . . . .264.60 +0.40 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1677.00 +10.00 1997.50 1437.00
Chemring . . . . . . . . . . . . . . . . .3016.00 +5.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1570.00 –5.00 1596.00 1024.00 RSA Insurance . . . . . . . . . . . . . .123.50 –0.50 142.00 113.10 * Ex-Dividend † Suspended
Chloride Group . . . . . . . . . . . . . .371.30* –0.20 390.50 129.00 Intl Power . . . . . . . . . . . . . . . . . .318.60 +3.70 354.00 231.00 SABMiller . . . . . . . . . . . . . . . . .1923.00 –23.50 2090.00 1210.00
Close Bros . . . . . . . . . . . . . . . . .687.50 –2.00 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .267.60* +8.80 350.30 213.00 Sage . . . . . . . . . . . . . . . . . . . . . .234.60 –1.10 260.50 167.20 www.interactivedata.com

US second quarter earnings steer shares upward


gave us the biggest weekly rally in a upside, although given the question ANALYSIS l Dax
MARTIN ON year.
GFT is quoting the FTSE 100 index
marks surrounding the European
debt situation and the potential toll it
6,400
6,300
6,065.24
9 Jul

THEMARKETS to open up 35 points from Friday’s


close, at 5,167. The German DAX is
also expected to start higher, up 30
could have on the US, key will be the
corporate profits outlooks. Positive
language means we could expect the
6,200
6,100
6,000
points at 6,095, and the French CAC is general fear factor which has gripped
5,900
forecast to open up 22 points at 3,576. markets for the past few months to
5,800
Although a positive start is likely erode further. Delayed data on UK
then, it’s doubtful that the nervy sen- GDP data is released today, which 5,700
timent has completely disappeared could attract even more interest than 21 Apr 11 May 31 May 18 Jun 8 Jul
just yet, with many traders still wary usual after “potential errors” post-
of a double-dip recession in Europe poned the announcement from two ANALYSIS l FTSE
and the States. Trading styles seem weeks ago. Martin Slaney is director of 6,000 5,132.94
cautious, and that is likely to contin- global dealing operations for GFT 5,800 9 Jul
ue as we head into the US second-
MARTIN SLANEY quarter earnings season which kicks
off with Alcoa’s report today. Also out
5,600
5,400

this week we have Intel, General 5,200

E
uropean stock markets are head- Electric, JP Morgan and Bank of 5,000
ed higher once again on the America. There is a growing belief
4,800
open this morning, continuing that this reporting season could
last week’s buying spree which throw up some big surprises to the 12 Apr 30 Apr 21 May 11 Jun 1 Jul

JAPANESE MARKET

J
apanese shares and government hopes. Prime Minister Naoto Kan’s Many analysts expected JGBs to “The election results will give the
bonds are likely to face initial “JGBs (Japanese Government Democrats were set to win just 47 come under some negative pressure, impression that Japan may delay in
selling pressure today after the Bonds) may come under selling on seats and its tiny coalition partner, although the result could be compli- proceeding with fiscal discipline, so
government lost an upper house the prospect of a delay in fiscal the People’s New Party, none, losing cated if stocks fall and investors opt the bond market is expected to face
election – a reverse that could thwart reform, and Japanese shares may also their combined majority in parlia- for safe-haven bonds instead. some selling pressure in its initial
its ambitions to curb public debt. meet with selling on the political ment’s upper house, exit polls after JGBs fell on Friday as investors hesi- reaction ... given the recent global
Longer term, though, markets will deadlock,” said Kyohei Morita, chief the vote yesterday showed. tated to buy before the election and as focus on sovereign risk,” said
eye which smaller parties the ruling economist at Barclays Capital Japan. Exit polls showed the Democrats stocks rose. The benchmark 10-year Yoshimasa Maruyama, an economist
Democratic Party allies with, what “But such market reactions are like- far short of Kan’s goal of winning 54 yield rose 1 basis point to 1.150 per- at Itochu Corp. Securities.
policy compromises it makes and ly to prove short-lived because no seats, a result that leaves him vulner- cent after hitting a seven-year low of The benchmark Nikkei average rose
whether that dilutes its fiscal reform major policy change is taking place.” able to challenge within his party. 1.055 per cent the previous week. 0.5 per cent to 9,585.32 on Friday.
20 Investment | Spread Betting CITYA.M. 12 JULY 2010

The markets
are on the turn,
but only in the
short-term
Cyclical stocks are back in fashion, and large
caps are favoured, says Kathleen Brooks

T
HE success of Paul the octopus at market sell-off over the past couple of
predicting the outcome of World months suggested economic armaged-
Cup matches has left many spread don was just around the corner, when
betters green with envy at his pow- that does not appear to be the case.
ers. What would be better than being When this happens a period of reconcili-
able to predict with accuracy the bottom ation is needed to recalibrate the finan-
of the market? But in the absence of any cial markets back to something close to
psychic ability, traders have to rely on economic reality. Spread betters should
market signals, and one of them is begin- look to trade these “recalibration” rallies.
ning to turn fairly bullish.
The investment bank UBS has just CAPITULATION POINT
started to see more net buyers of cyclical So how do you know when markets
stocks than defensives for the first time become oversold? UBS says that two
since the market peak on 15 April. weeks ago it saw the biggest net selling
Typically, cyclical stocks outperform by hedge funds and long-only funds since the outlook for stocks. Gartmore, the Cyclical stocks are risk since the onset of the financial crisis
when markets are bullish, and defensives the fourth quarter of 2008 – the peak of fund manager, is biased toward equities riding high in the autumn of 2008. This suggests that
do well during periods of risk aversion. the financial crisis. It calls this the “capit- and does not believe there will be a dou- markets will remain volatile. These con-
Analysing the pattern of investors’ behav- ulation” point and it signifies when mar- ble-dip for the UK economy. ditions require investors to be nimble,
iour suggests that they will continue to kets became oversold. However, as the chart shows, UBS and spread betters should be disciplined
purchase cyclical stocks, which will fuel a But is this data really representative of investors have been going in and out of about short-term trading strategies.
market upswing, as it did from February the market? Of course it is only from one
Source: UBS client flows
to April this year. investment bank – however, it’s neverthe- ANALYSIS l Investors turn net buyers of cyclicals for first time since mid-April…
less a good gauge of overall market activ- 20 %
BUYERS ARE COMING BACK ity. UBS is the tenth largest investment
more buying of cyclicals
According to analysts at UBS, their bank in the world, and its assets under 15 +2 std dev
clients have been buying stocks through- management in 2009 were $159bn.
out the recent correction. Corporations So where should spread betters be 10
have also become net buyers of stocks. So investing? UBS clients have just become +1 std dev
far this year they have bought $57bn of net buyers of the construction sector and 5
equities, which reverses some of the net sellers of miners. Other sectors gain-
$147bn net selling of equities in 2009. ing attention include consumer discre- 0
Fears of a double-dip afflicting the tionary – a traditional cyclical sector –
-5
global economy are not enough to put along with food retail and chemicals. Big -1 std dev
investors off risk, at least not at this firms are also coming back into fashion. -10 Cyclicals - Defensive (4-week mav)
stage. This does not necessarily mean UBS clients have been net buyers of large 4-wk performance of cyclicals relative to defensives (%,rhs)
-2 std dev
that investors are ignoring the global cap stocks over small caps, which is a -15
macro economic backdrop, just that reversal of the main trend this year, more buying of defensives
financial markets often overshoot and when mid and small caps were favoured. -20
Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10 Apr 10 Jul 10
can fall (or rise) too far. For example, the And it’s not just UBS that is positive on

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CITYA.M. 12 JULY 2010 Investment | Spread Betting 21

The unreliability of the Baltic Dry


Spread betters should be looking
at other indicators of world trade
activity, writes Jessica Mead

S
INCE the end of May, the Baltic Dry On a shipping lane to
Index, which measures worldwide nowhere?
international shipping prices of dry
bulk, has plummeted some 50 per Picture: GETTY
cent. It has now fallen for 31 consecutive
days – its worst run in more than six years
– raising concerns among investors about
both the outlook for world trade and for
commodity prices.
The index is supposed to reflect the
underlying demand for commodities
transported by sea. So if you are betting
on the price of commodities such as
metal ores and agriculture, or on equity
sectors such as mining, basic resources or
industrial goods, you might well be some-
what concerned by the index “falling off
the proverbial cliff” as Gluskin Sheff’s
David Rosenberg puts it.
But the usefulness of the index, which
has been regarded by economists as a bell-
wether of global trading activity and
often as a leading indicator of commodity
prices, has started to come under fire.
Indeed, Ian Harwood at Evolution
Securities says: “What you most definitely
shouldn’t look at to judge world trade
momentum, however, is the Baltic Freight
Index, a measure of shipping costs”.
Capital Economics’ Julien Jessop also
advises that traders should be wary of
making big calls on commodities (or any- observe spot and future commodity prices
thing else) on the basis of the Baltic Dry anyway, it is not much use as an addition- THE TIPSTER C$1.0303–C$1.0307.
Index. This is for two reasons. First, he al forecasting tool, he argues, adding that IP Group jumped 5 per cent last week
points out that fluctuations in the index
could be driven by changes in the supply
it has often sent misleading signals, par-
ticularly for industrial metals such as cop- THE LOONIE HAS THE LAST following the announcement of good news
for a major holding in its portfolio:
Revolymer. The company, an international
of shipping as well as in the underlying
demand for commodities transported by
per. He acknowledges its more reliable
correlation with agricultural commodi- LAUGH AS IT RIDES HIGH chewing gum manufacturer, has received a
sea and could equally be distorted by tem- ties, which reflects their greater impor- boost after obtaining US Food and Drug
porary port closures and changes in the tance in the dry bulk shipping market. Administration approval for its innovation
cost of fuel and insurance. But for now, if you are looking to take a of removable and degradable chewing
He says that there was a surge in orders punt on world trade activity through gum. With the gum also in the final stages

A
for new cargo ships in 2007 and 2008 at commodities and related equities, what FTER this column tipped a sell of dol- of approval in Europe, the firm expects it
the peak of the global commodity price indicators should you use? lar-Canadian dollar at C$1.0675 on to be on the shelves next year. Say good-
boom and given that it takes two to three Evolution Securities’ Ian Harwood says Tuesday of last week, the loonie rallied bye to the perennial plague of hard gum
years to build a ship, these could be com- that very useful forward-looking indica- hard against the greenback late in the stuck under desks – and make a few pen-
ing on stream now. “It is at least conceiv- tors of world trade are the Asian trade fig- week and dropped all the way down to nies by going long on IP Group at the same
able that the Baltic Dry Index could fall ures, notably those of Korea. Air freight is C$1.0303 by Friday afternoon. The market time. Spreadex offers a spread of 35.16p-
further this year even if commodity prices also an excellent leading indicator of over- has suddenly started to price in a possible 35.59p on IP Group.
rebound, provided the corresponding all world trade as is the global purchasing interest rate hike in Canada following the Unilever has received favourable atten-
increase in demand for shipping is more managers’ export orders index. news of the surprise fall in unemployment in tion. JP Morgan Cazenove says the stock is
than offset by an increase in supply.” So if you do have bets reliant on trade June. $1.0275 is the next support level, but good value and worth a buy. IG Index
Second, Jessop says that the index’s activity, don’t panic too much about the our target is still $1.020. Spread Co offers a offers a spread of 1,833.2p-1,836.8p.
record as a leading indicator of commodi- fall in the Baltic Dry Index and base your spread on dollar-Canadian dollar of Juliet Samuel
ty prices is pretty poor. Since you can decision on a wide range of indicators.

a similar outperformance when they


SPREAD BET announce over the next few weeks.
GURU The market will pay attention to company
earnings and whether the numbers they
JOSHUA announce outperform or under-perform the
consensus. However, in light of the strong
RAYMOND headwinds emanating from the massive
MARKET austerity measures announced across the
STRATEGIST major economies, traders are also likely to
focus more than usual on the outlook for the
josh@cityindex.com rest of the year and for 2011. There is a
large degree of continuing uncertainty
which means good quarterly earnings
announcements won’t necessarily be enough
to restore full investor confidence. So don’t
be too surprised if stock prices don’t track
earnings explicitly. Alcoa kicks us off today

Q.
Dear Josh, which are the major while major companies to keep track of
companies announcing this week later in the week include Intel on Tuesday,
and what is the sentiment likely Rio Tinto on Wednesday, Google and JP Paul the octopus betters timing their trades on last week’s remain hopeful of another rally this week,
to be for the new earnings season? Morgan on Thursday. Bank of America, makes his choice. rally particularly well. The FTSE 100 saw a they are maintaining strong risk manage-
Citigroup and General Electric are all strong surge from lows under 4,850 on ment control should the markets sell off.

A.
This week marks the start of the announcing in Friday’s session, guaranteeing Picture: GETTY Monday up to a close on Friday at 5,137.

Q.
second quarter US earnings season an interesting end to the week. The German Dax climbed over 200 points Dear Josh, do you know whether
and already we have started to see from its position of around 5,850 at the Paul the psychic octopus can pre-

Q.
equity prices fluctuate in anticipation of Dear Josh, what are spread bet- start of the week. We did start to see some dict the FTSE’s movements?
results. Last week, State Street, a US bank, ters at City Index currently doing? profit taking late on Thursday but, despite

A.
announced that its earnings would beat these exits, the majority of index positions for I suspect it’s only a matter of time
market expectations and this could con- our clients remain long. That said, most index until someone convinces themselves

A.
tribute to a surge in bullish sentiment as We have seen clients buy strongly trades are being taken up on short-term daily that they have a psychic dog that
many investors become convinced that into both the FTSE 100 and other contracts with fairly close stop losses. This barks once for a bullish day or twice for a
other US banks could follow suit and report key European indices with some suggests that while most of our clients bearish day.
Lifestyle
22 CITYA.M. 12 JULY 2010

| Travel

A new port of
call far north
of the Algarve
Portugal has more to offer than golf, starting
The vines of the
with port country, says Timothy Barber Douro Valley.

Picture: REX

I
F you’re thinking of getting away to handsome bucolic expanse of the Douro
Portugal this summer, chances are it’s Valley in the north – port country. The
the Algarve you’re considering, for a drink takes its name from Oporto, the
bit of sea, sardines or the swing of a medieval city that lies across the river Belem in the west of the city, the nightlife PINHÃO | VINTAGE HOUSE HOTEL
golf club. Well fine, the country’s southern Douro at its estuary – think dense, narrow of the Bairro Alto, the ancient centre
region does all those things extremely well. streets, washing hanging from windows, Alfama with the grand Castle of Lisbon and
However, British holidaymakers tend to for- cobbled courtyards, ancient churches and Moorish history, and the grand central Formed around the the old house of an 18th century estate, the Vintage
get what the rest of the country has to offer locals grilling sardines outside. Beyond, the Baixa zone offer the weekend traveller so
– exceptional old towns, stunning country- river weaves its way between steep hills much to explore that one can forget all House Hotel mixes traditional charm with modern comforts. The Douro
side, escape from the main tourist trails of that have been terraced for vine growing. about the Algarve and its samey, endless area is meant to induce calm for those looking to escape the grind of com-
southern Europe and, of course, port. Lots It’s stunning countryside, and atmospheric golf courses. muting and the hotel will help, thanks to an idyllic pool, tennis courts and
of it. villages like Regua, with its Museum of the
heavenly views. All rooms and suites have a veranda, facing onto the river
Among the reasons for visiting Portugal Douro, and Pinhao are worth discovering. PINHÃO | QUINTA DA ROMANEIRA
is the friendliness of its people – they’re “It’s a remote part of the world, and see- and mountains. The hotel’s Wine Academy could be the way to become a
generally known as Anglophiles, and the ing it right now is rather like Tuscany port connoisseur. www.csvintagehouse.com
trickiness of their own language means would have been back in the Sixties and A remarkable five-star hotel in the Pinha area
that, like the Dutch, they tend to be excel- Seventies,” says Adrian Bridge, an
lent linguists and happy to talk in English – Englishman who has opened a new luxury with stunning views over the Douro Valley.
OPORTO | THE YEATMAN
and then there’s the fact that the country hotel in Oporto, The Yeatman (see right). Mixing rustic chic with minimalist cool, its star
runs on Greenwich Mean Time, so there is “There’s very little construction, and the features include a cliff-top pool overlooking the
no need to lose any hours. sensations are beautiful, like the smell of
A particular reason right now, however, the baked soil in the sunshine.” river valley, an ultra-smart spa and hammam, a A newly-opened hotel in the city of Oporto, The Yeatman is linked to
is value for money. According to a report For anyone wanting something more chocolaterie and the chance to take a boat ride one of the oldest and most distinguished port businesses established
published by Post Office Travel Money last urban and buzzy, the capital city, Lisbon, on the river. As for dining, fresh local produce is by British merchants in the 19th century. The spa has “vinotherapie”
month, living costs in Portugal have fallen shouldn’t be discounted. With its hillsides treatments, based on natural ingredients drawn from the vineyard,
by a whopping 40 per cent in the past year. studded with red slate-roofed houses, served on a terrace shaded by lemon trees, a
Tie that to sterling’s relative recovery grand palaces, rickety streets and trams, refectory and a library. A nice touch is the glass including “barrel bath immersions”, which one imagines may be as
against the Euro, and you’ve got lots of museums and nightlife, it’s a place of histo- of port offered after evening meals. sensational as the hotel’s wine cellar. It opens next month.
incentive to head there. ry, culture and style that ranks with the www.maisonsdesreves.com/romaneira www.the-yeatman-hotel.com
Right now the place to explore is the best European cities. The museum district

Treats in store at Lisbon’s glam Ritz


The service, elegance and luxury all of Lisbon’s night life, are also a quick
(and cheap) cab’s ride from the hotel. Just
of the city’s Four Seasons Ritz ask the friendly and knowledgeable
concierges for advice, which we found to
Hotel thrilled Allister Heath be spot on and extremely useful, especial-
ly when it came to eating out. One key
piece of advice for the ladies: don’t try and
wear high heels when visiting old Lisbon,

I
F you are going to visit Lisbon, you A balcony view at the even when going out for supper. The
should stay at the Ritz Four Seasons, Four Seasons Hotel streets are cobbled and extremely hilly;
an enchanting, marble-clad property Ritz Lisbon. even the most sophisticated and glam-
from one of the world’s best hotel orous locals wear flat-heeled shoes. If you
operators. Its location and positioning is prefer a more traditional, formal
ideal; the hotel offers vistas of Eduardo VII European dining experience, try the in-
Park, St. George’s Moorish castle, the Old house Varanda restaurant: the tasting
Town and the Tagus River from atop one menu is excellent and includes great
of Lisbon’s seven hills. The hotel is also a regional specialties and seafood. In the
short walk to where all the tourist hop-on- mornings, the restaurant is used for
hop-off buses congregate, making it an breakfast; unfortunately, it can get crowd-
ideal and luxurious base to explore one of ed at times. The Ritz Bar is also well worth
Europe’s great historic cities. a visit.
The location of the Portela de Sacavem One of the hotel’s highlights is its spa,
International Airport means that the which is exceptional. It genuinely conveys
hotel can be reached remarkably easily. It a sense of serene relaxation, thanks to its
took us just over a quarter of an hour in a friendly and professional staff, its calm- appointed gym: it is located on the roof, ever. Perhaps the hotel’s only downside is
metered taxi to get to the Ritz Four ing, Buddhist-inspired music, Zen design with an amazing outside running track its boxy, 1950s-style external appearance
Seasons; the ride cost no more than €15. in marble and rich oak, and sensuous art which gives unparalleled views across and architecture, which belies its sophisti-
The fact that you can be in your hotel pieces and luxe furnishings, from Italian Lisbon. Even if you usually hate going for a cated interior and beautiful lobby. So
room in under an hour from the time of poolside loungers to ergonomically run, especially when on holiday, make an don’t be put off: this is a wonderful hotel
landing, especially if you only have hand designed oversized beds. The 18-metre exception: this is an entirely unique expe- in which to stay to visit Lisbon in style. It
luggage, ought to be a major selling point pool is great and uncrowded and a perfect rience. comes highly recommended.
for weekend breakers and business travel- place to start off before enjoying one of The rooms are typically spacious and The Four Seasons Hotel Ritz Lisbon, Rua
ers alike. the Spa’s signature treatments. the special Four Seasons beds – one of the Rodrigo da Fonseca, 88 Lisbon 1099-039,
Several amazing restaurants, as well as Most spectacular of all is the well- brand’s hallmarks – are as fabulous as Portugal. + 351 (21) 381-1400. Rooms from €310.
CITYA.M. 12 JULY 2010 Lifestyle | Charity special 23

Spreading success, little by little


City A.M.’s favourite charity is doing wonders in Opportunity International is City A.M.’s favourite chari-
Africa. Zoe Strimpel meets a very special banker ty. Every donation counts and helps provide real, sus-
tainable economic growth that benefits the poor. For
example, £4 helps a client become savvy with money;
£20 funds a loan in rural Africa; and so on.

W
ILSON Moleni is on his first trip Opportunity International can be contacted at:
to the UK. And what a first visit 01865 725 304 info@opportunity.org.uk
it is: he is dining with royalty, http://www.opportunity.org.uk
meeting dignitaries and brief-
ing journalists. Not bad for a man who
grew up among Malawi’s poorest, and
who (most of the time) had just enough
food to continue to go to school.
Moleni, 38, is here to promote the work
of Opportunity International, an organi-
sation that provides microfinance to the
poor in the world’s poorest countries. In
Malawi, under his watch, the bank has
reached 270,000 people and helped them
to set up micro-businesses. Moleni joined
Opportunity International Bank of
Malawi (OIBM) in 2003 just before it
opened to the public and is now regional
manager for the northern region, the
country’s poorest, and is a distance MBA
student at Oxford Brookes.
Wilson’s story is a tale of uplifting and
amazing success in a country where the
life expectancy is 53. “I grew up in a poor learn about buying corn in bulk to
family with five brothers,” he says. “My increase profits.
father was a peasant farmer, so he grew To open a bank account in Malawi, you
food just for the family. Any surplus went need a driving licence or passport, which
towards school fees. But sometimes we most people – particularly women – do
had no food. So I can easily understand not have. “Most people have not even
the position of the people who come to us heard of banking,” says Wilson. “They
for loans. I’ve been there.” keep their money under a pillow, or in
Moleni’s father worked for a time at a the ground where people can steal it and
factory in Zimbabwe and had seen what animals eat it. They have no concept of
education could do for people. “He kept saving for future events or school fees.”
saying: ‘I’ve seen education work’ and
kept encouraging us to go to school, even SMART CARDS AND SMART WOMEN Above left: Wilson that’s their priority. Men more often the market with a little pile of tomatoes.
when we were hungry.” It paid off: This is where OIBM’s genius comes to the Moleni, above: a man spend any money on a beer, then anoth- But as women become more successful,
Moleni’s brothers are teachers, a fore. At its core is cutting-edge technolo- farms in Malawi. er one.” Then there’s the fact of mascu- men want to join the business too, and
financer at a different microfinance gy, the star of which is smart cards. line pride. “Women are not ashamed. often end up working for their wives.” If
institution and an accounts officer. “Our Instead of using ID, clients have cards Pictures: GETTY, Men are too proud to sit at the corner of that’s not a satisfactory result, what is?
parents are alive and have forgotten with their fingerprint stored on a chip. Micha Theiner
their poverty because we are able to look “This has helped everyone to open an /City A.M.
after them,” says Moleni. account,” says Wilson. “And only the bor-
OPPORTUNITY INTERNATIONAL: BANK OF MALAWI
The challenges Malawians face are rower has the smart card and access to Opened in 2003, OIBM operates throughout their fingerprint on a chip, giving them complete
enormous. “A big problem is that there his or her money.” Malawi, offering a range of microfinance services control over their money.
are no role models to show the benefits What is most striking about OIBM is
of education. Many people don’t know its appeal to and support of women – 80 to people, mainly women, whose stock may be l Mobile kiosks, so that even people in rural areas
anyone who has excelled in life through per cent of its borrowers are female. worth as little as £20, as well as to first-time are able to bank.
school.” There are also serious holes in Why? “We made it friendly to women,” traders. Microloans, between £70 and £300, are l Cell phone banking (cell phones are subsidised
basic knowledge – not just about eco- says Moleni. “Malawi is very male domi-
nomic basics such as supply and nated. But with smart cards, women find
offered alongside micro-insurance and a range of by the government and cost from £2).
demand, but also health, hygiene and it easier to participate. Women are more other services, such as education about basic l Weather index: a machine that automatically
HIV, which OIBM seeks to address too. important: they are the backbone of the banking, economics and hygiene. calibrates how far off the predicted level rainfall
Clients also learn about the basics of bor- society as they look after the kids as well OIBM’s revolutionary technology includes: has been, so that loans can be adjusted depend-
rowing, interest and debt, as well as as work. And women pay back: they are
economies of scale. If a person makes more reliable. They tend to want to put l Smart cards: each borrower has a card with ing on crop yield due to weather.
doughnuts to sell at the market, she will savings towards the home and the kids –

CASE STUDIES: OPPORTUNITY BANK SUCCESS STORIES


ANNA, NKHATA BAY DISTRICT BESTA,CHINTHECHE JOSEPH, MKONDEZI

invested further in growing members – men and women who live in


cassava which she sells (cassa- Mkondezi in the Nkhata Bay District in
va is used to make the local Malawi’s northern region. “Opportunity has
staple, nsima). She also taught me how to take better care of my fam-
exchanges some maize for cas- ily, how to save and that we should always
sava and sells the maize. “Now have a vision when doing business,” he says,
Anna’s daughter-in-law died I am able to find the money to Besta is living on less than 50p a day in Joseph joined OIBM’s group lending pro- proudly showing off his rice crop. “My vision
just days after giving birth. The buy sugar and tea,” she says. Chintheche, on the shores of Lake Malawi. gramme earlier this year. A rice farmer and is to have a house with a secure roof and
child was just seven days old. “As you can see, the baby is Though she couldn’t afford to finish school, father of five, he has taken out two loans, the electricity so that I can buy a fridge. With
Anna collected the baby from healthy and doing well.” she held fast to the dream of sending her first of which was MK20,000. He is now my disability, I might find it harder to walk
the hospital but couldn’t find Her message for others? children to school. She needed a safe and repaying a loan of MK40,000. Joseph has and work as I get older. If I have a fridge, I
any money to buy milk. She “Nothing comes on a silver plat- secure place to keep her savings, but there invested the money in fertilisers and a bulk will be able to sell cold drinks in the
turned to the Opportunity Bank ter,” she says. “You have to is no bank in her community. This means order of beans to sell at the local market. He community.”
for help. She took out a loan of work hard. I didn’t sit idle. I that she had to bury her savings or pay was also able to employ labourers to help him His message? “I tell my friends about the
MK 5,000 which meant that worked hard and God helped £5 – and sometimes more – in transporta- bring in his harvest (his disabled leg makes good things that Opportunity Bank is doing
she could invest in growing cas- me to provide for our needs. I tion costs alone, just to travel to Mzuzu to this difficult for him) and has opened a sav- for people’s families and businesses.
sava and was also able to pur- recommend other women to conduct basic transactions such as opening ings account for the first time. “I don’t have a “Opportunity isn’t only interested in lending
chase milk. The child is now come and do what I have done. a savings account – in short, transactions passport so there was no way I could open an money but also provides transformational
nine months old and doing well. See how the baby is growing that most bank customers in city centres account at another bank,” he explains. training to clients. They tell us how to borrow
Anna is now on her second healthily all because of take for granted. OIBM has changed all this Joseph is the chairman of the Chimwemwe money, how we need to be responsible and
loan of MK20,000 and has Opportunity.” for her. (“Happiness”) Trust Group, which has seven make our repayments on the agreed date.”
24 Lifestyle | TV& Games CITYA.M. 12 JULY 2010

BBC1 BBC2 ITV1 CHANNEL4 FIVE


TERRESTRIAL
6pm BBC News
6.30pm Regional News
6pm Eggheads: Quiz show,
hosted by Dermot Murnaghan.
6pm London Tonight
6.30pm ITV News
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away
6.25pm Don’t Stop Believers
TV PICK
Programmes 6.30pm Antiques Road Trip 7pm Emmerdale 7pm Channel 4 News 6.30pm Live from Studio Five
7pm The One Show 7pm Wild Wales: Iolo Williams 7.30pm CHOICE Coronation 7.55pm 4thought.tv 7.15pm Cricket on Five
7.30pm Fake Britain; BBC News explores the wildlife of Wales. Street 8pm Dispatches: Africa’s Last 8pm Police Interceptors: Five
8pm EastEnders 8pm University Challenge 8pm Countrywise Taboo News at 9
8.30pm Orphans of Haiti: 8.30pm Antiques Master 8.30pm Coronation Street 9pm Concorde’s Last Flight: 9pm FILM XXX: Action
Panorama 9pm Mary, Queen of Shops: 9pm Identity: The team tries to The airliner’s dramatic rise and adventure, starring Vin Diesel.
9pm CHOICE The Silence Mary Portas comes to the aid track down a murder suspect. fall. 2002.
10pm BBC News of a DIY store in Surrey. Last in 10pm ITV News at Ten 10.30pm Big Brother: The 11.20pm FILM Road House 2:
10.25pm Regional News the series. 10.30pm London News latest highlights from the house. Last Call: Action thriller sequel, THE SILENCE
10.35pm Who Do You Think 10pm CHOICE Rev 10.35pm FILM The Thing: 11.40pm Being N-Dubz BBC1, 9PM
starring Johnathon Schaech.
You Are? 10.30pm Newsnight: Weather Horror remake, starring Kurt 12.15am Music on 4 2006. New series. Thriller, starring Genevieve
11.20pm FILM Irresistible 11.20pm How to Build Britain’s Russell. 1982. 12.20am Alan Carr: Chatty 1am SuperCasino 4.05am House Barr as an 18-year-old deaf girl who
2006; Springwatch Secret Engineers 12.35am The Zone; ITV News Man Doctor 4.30am House Doctor witnesses the murder of a
Weatherview 12.20am The Private Life of Headlines 1.10am Big Brother: Live 4.50am- 4.55am Rough Guide to Adventures policewoman. With Douglas Henshall.
1am Sign Zone: The Genius of Cows 2.35am Tour de France 2010 6.20am FILM Contraband: Second 5.10am The New Tomorrow
Design 2am Sign Zone 4am-6am 1.20am The Super League Show Highlights 3.25am-5.30am ITV World War spy thriller, starring 5.35am-6am Michaela’s Wild
BBC News 2.20am BBC News Nightscreen Conrad Veidt. 1940. Challenge

SKY SPORTS 1 12am WWE: Late Night – 10pm Four Weddings US 11pm E4 3am World War Two in HD
SATELLITE & CABLE

7pm Football’s Greatest Afterburn 1am WWE: NXT Criminal Minds 12am CSI: 7pm Hollyoaks 7.30pm Friends Colour 3.50am Raging Planet
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9.30pm Football’s Greatest 4.15am-5.15am British Rally 2am So You Think You Can Erica 11pm Shameless 5.30am-6am How Does That
10pm Time of Our Lives Championship Dance 3am The Fresh Prince of 12.05am-6am Big Brother: Work?
11pm International Cricket Bel-Air 3.50am Maury Live
1am Soccer AM: The Best Bits BRITISH EUROSPORT 4.40am Nothing to Declare DISCOVERY HOME & REV
2am FIFA Futbol Mundial 6.10pm Triathlon 7.10pm 5.30am-6am Home Shopping HISTORY HEALTH BBC2, 10PM
2.30am Sports Unlimited Cycling: Tour de France 8.10pm 7pm How the Earth Was Made 7pm Baby Whisperer 8pm Adam’s decision to allow a Muslim
3.30am Watersports World Triathlon 9.05pm World BBC THREE 8pm Nostradamus: 500 Years Jon and Kate Plus 8 9pm children’s prayer group to use the
4.30am Max Power 5.30am- Superbikes 11.05pm MotoGP 7pm 101 Ways to Leave a Later 9pm Battles BC 10pm Bringing Home the Babies church for classes brings his
6am FIFA Futbol Mundial 12.05am-12.25am Gameshow 8pm Snog, Marry, Marked 11pm Auschwitz: The 10pm Deliver Me 11pm congregation’s prejudices to light.
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QUICK CROSSWORD
    

SUDOKU KAKURO
30 12 15 11 23 12 
5 10 9
8 16  
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row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 29 13
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from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 23
 
above or to the left of it. 20 29 24
You can only use the digits 1-9 9 13 10   
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26 30
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column, but it must be in a 19
27
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7 
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12 4 17

    ACROSS DOWN
4 Destiny, fate (5) 1 Hospital worker (5)
  
   WORDWHEEL E I
7 One-horned beast
of legend (7)
8 Awkward, stupid
2 Become wider (6)
3 Art of growing
miniature trees (6)
Using only the letters in the Wordwheel, you have person (3) 4 Be familiar with (4)
   ten minutes to find as many words as possible,
L G 10 Rises upward 5 High tight collar (4)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters N into the air (5)
12 Thin biscuit (5)
6 Terminate (5)
9 City in western Germany

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
G N 13 Squad (4)
15 Monstrous
near the borders of
Belgium and Holland (6)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
B O sea creature
symbolising evil (9)
11 Critical evaluation (6)
14 Spoil (3)
QUICK CROSSWORD 3 1 2 9 8 6 9
19 Stagger, lurch (4) 16 Small porous sachet

6 ( ( 6 $ : 6 &
4 2 6 1 7 9 3 5 8 SUDOKU         
21 Hurled (5)
24 Joint in the leg (5)
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1 2 8 2 4 8 25 Be in debt (3) a drink (3,3)
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5 5 + $ 1 ' / ( 3 9 1 6 2 4 3 5 26 Small publication (7) 17 Compound capable of
        
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Sport
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IT’S ANDRES INI-BEST-A!
BARCELONA ACE HANDS SPAIN
FIRST WORLD CUP SUCCESS: P27

Strauss: We
Webber jumps for
joy after his
Silverstone success
but may have some

must forget
explaining to do
after his dig at Red
Bull chiefs on the
team radio.

Picture:ACTION
IMAGES our Tigers’
mauling


CRICKET
BY JON COUCH
BRITISH GP | RACE STANDINGS ANDREW STRAUSS has urged his
England side to forget their humiliat-
ing defeat to Bangladesh and com-
1. Mark Webber (Red Bull) 1:24:38.200 plete a series win at Edgbaston today.
2. Lewis Hamilton (McLaren) +00:01 The Tigers rallied to their first ever
3. Nico Rosberg (Mercedes) +00.21 win over England in 20 attempts on
4. Jenson Button (McLaren) +00:21 Saturday to leave the series delicately
5. Rubens Barrichello (Williams) +00:31 poised at 1-1 going into today’s decider.
For England, defeat came on the
STANDINGS | DRIVERS’ CHAMPIONSHIP back of a renaissance in limited-overs
cricket, given their World Twenty20
1. Lewis Hamilton (McLaren) 145pts success and series victory over
2. Jenson Button (McLaren) 133 Australia.
3. Mark Webber (Red Bull) 128 That said, England have now lost
4. Sebastian Vettel (Red Bull) 121 three of their last four matches and
5. Fernando Alonso (Ferrari) 98 skipper Strauss is keen for his side to
build on their recent resurgence,
while identifying the areas in which
they can improve.

Not bad for a No2 driver, says


“We lost the last two against
Australia and now we’ve lost this one
but I’m still very happy in this one-day
set-up,” he said. “We’re still very, very
buoyant as a group of players but you
need to learn from your mistakes.

Webber after Silverstone win


There are a few to learn from here.”
He added: “I wouldn’t have thought
we were complacent but at the same
time we have to ask ourselves why.
Was it just one of those days? Did we
prepare well enough? Were we clear
enough in what we were trying to do
FORMULA 1 holding off home favourite Lewis
Hamilton for a commanding victory
The Red Bull furore added spice to
the start of the race with Webber
rest of the field, but just couldn’t get
close enough to the ultra-quick Red
on that wicket? Did we have a hand in
our own dismissals? If we did, we need
2010 at Silverstone. starting second on the grid behind Bull to make his move and had to set- to learn from that.”
BY JON COUCH Congratulating his driver, Horner pole-setter Vettel. tle for a second straight runner-up Meanwhile, England have called up
said: “Well done Mark, you can smile Vettel immediately moved right to spot. “Mark did a phenomenal job,” Essex batsman Ravi Bopara for today’s
MARK WEBBER swept to his third vic- now” to which Webber replied: “Well squeeze out his team-mate towards Hamilton said. “I was trying to do my one-dayer, at the expense of the
tory of the season at the British done guys, not bad for a number two the first corner at Copse, but Webber qualifying lap every lap, but he was injured Ian Bell.
Grand Prix yesterday – and celebrated driver!” brilliantly powered his way through, able to keep creeping away.” Bell was ruled out for around six
with a dig at his team. Victory saw Hamilton extend his prompting Vettel to take evasive Webber attempted to defuse the weeks after fracturing his fifth
The Australian was furious after lead over his McLaren team-mate action and make the faintest of con- team row afterwards, adding: “I did metatarsal when fielding during the
Red Bull chiefs removed a new front Jenson Button to 12 points with tact with Hamilton. just the best job I could and it worked five-run defeat on Saturday.
wing and handed it to team-mate Webber leapfrogging team-mate This caused the German to sustain out okay. I enjoyed the grand prix Bopara earned the last of his 50 ODI
Sebastian Vettel ahead of qualifying Vettel into third. a puncture, veering off at Becketts and I had a good fight with Lewis, caps in the Champions Trophy in
after it broke in practice on Friday. Button, too, impressed, fighting and eventually rejoining the race at especially the first part. September 2009 and it likely to go
And he made his point with a sar- his way up from 14th on the grid to the very back of the field. “The team did a great job at the pit straight into the starting line-up in
castic remark on the team radio to claim fourth place, just behind the Hamilton tailed Webber through- stop and I then got my head down on place of Luke Wright with Tim
team principal Christian Horner after Mercedes of Nico Rosberg. out as the pair raced away from the the harder tyre.” Bresnan also expected to return.

Brits wrap up Maiden title for Molinari as SPORT | IN BRIEF


5-0 Davis Cup Armstrong Tour hopes dashed
Clarke clinches Open spot
Auckland on Saturday.
CYCLING: Lance Armstrong’s hopes of Botha butted the back of Cowan’s

whitewash
winning an eighth Tour de France are all head while both men were grounded,
but over after just lost more than 11 min- chasing a loose ball.
utes in a disastrous eighth stage in the He is not eligible to play until the final
mountains. game of the Tri-Nations series, against
“I didn’t play well enough,” Clarke The American fell twice after losing Australia, on 4 September.

GOLF
admitted. “The Open is a consolation contact with the leading group, and now All Blacks coach Graham Henry said of
TENNIS ITALIAN Edoardo Molinari held off prize, but if somebody had said at the finds himself 13.26 minutes behind over- the punishment: “He's got a history. He’s

the challenge of his brother start of the week that I would finish all leader Cadel Evans. probably lucky he didn’t get more than
BRITISH tennis finally had something Francesco and Northern Ireland’s second I think I would have taken it.” “My Tour has finished,” said 38-year- nine weeks.”
to cheer yesterday after the Davis Cup Darren Clarke to claim his first Molinari’s victory means he and old Armstrong. “But I will stay in the
team completed a 5-0 whitewash over European Tour title in the Scottish Francesco are only the third brothers race.” Wolves are closing in
Turkey in their Europe/Africa Group Open. ever to both claim European Tour Luxembourg’s Andy Schleck outsprint- RUGBY LEAGUE: Warrington moved to
II play-off at Eastbourne. The 29-year-old limped to a two- titles, and after his sibling finished in ed Samuel Sanchez to take the stage and within four points of leaders Wigan in
Leon Smith’s team, without British shot victory despite a shooting a final- a tie for fourth, Edoardo says the pair moves up into second place, 20 seconds the Super League after running in nine
No1 Andy Murray, had already built up round 74 at a blustery Loch Lomond. can inspire each other to keep in the behind Evans. tries in a 50-32 demolition of Castleford.
an unassailable 3-0 lead, before Jamie Clarke did even worse, carding a winning habit. Richie Myler touched down for a hat-
Baker and James Ward sealed victory disappointing 76, but his second “This is very special,” he said. “On Botha handed nine-week ban trick for the Wolves, while Joe
with easy singles victories yesterday. place ensures the Ryder Cup star of Tuesday we were talking about the RUGBY UNION: South Africa lock Westerman scored two of the Tigers’ six
It was Britain’s first success in the the last remaining place at this fact that we had never played well in Bakkies Botha has received a nine-week tries.
competition since September 2007 week’s Open Championship at St the same week and finally it’s hap- ban for headbutting New Zealand scrum- In the other game, Huddersfield Giants
and staves off the threat of relegation Andrews with Molinari already pened. Now I hope Francesco wins half Jimmy Cowan during his side’s also ran in six tries as they beat
into the lowest tier. exempt. next week.” crushing 32-12 defeat to the All Blacks in Crusaders 30-12.
26 Sport CITYA.M. 12 JULY 2010

Results Ghana striker


Asamoah Gyan was
TREVOR STEVEN’S
FOOTBALL
a broken man after
missing his last-
gasp penalty
WORLD CUP XI
WORLD CUP FINAL
Holland...........................(0) 0 Spain.....................................(0) 1 against Uruguay. Iker Casillas (Spain)
Att: 84,490 Iniesta 116 Showed his experience and class when
AET: Score after 90 mins 0-0. Picture: ACTION
called upon and proved why he is rated
CRICKET IMAGES
as the best keeper in the world.
FRIENDS PROVIDENT T20 - NORTH DIVISION: Derbyshire
v Lancashire (Old Trafford); Derbyshire 163-6 v Lancashire
156-6. Derbyshire (2pts) beat Lancashire by 7 runs.
Nottinghamshire v Northamptonshire (Northampton);
Philipp Lahm (Germany)
Nottinghamshire 144-7 v Northamptonshire 144-8. At 26, became Germany’s youngest-
Northamptonshire (1pts) tied with Nottinghamshire (1pts).
Leicestershire v Worcestershire (New Road); Leicestershire ever captain and led the young side
171-4 (B J Hodge 70) v Worcestershire 172-4 (P A Jaques expertly in a memorable campaign.
78no, V S Solanki 51). Worcestershire (2pts) beat
Leicestershire by 6 wickets.
SOUTH DIVISION: Essex v Somerset (Chelmsford); Essex Gerard Pique (Spain)
173-6 (R S Bopara 105no) v Somerset 177-4 (M E
Trescothick 78). Somerset (2pts) beat Essex by 6 wickets. Has grown in stature and blossomed
Glamorgan v Kent (Canterbury); Glamorgan 126-6 v Kent alongside Puyol for both Barcelona and
130-4. Kent (2pts) beat Glamorgan by 6 wickets. Middlesex Spain. Gave precious little away.
v Gloucestershire (Uxbridge); Middlesex 185-8 (D J Malan
86) v Gloucestershire 188-4 (W T S Porterfield 64, J E C
Franklin 51no).Gloucestershire (2pts) beat Middlesex by 6
wickets. Sussex v Surrey (Arundel); Sussex 121-8 v Surrey
Carles Puyol (Spain)
122-2 (R J Hamilton-Brown 87no). Surrey (2pts) beat Like a fine wine, gets better with age. A
Sussex by 8 wickets.
true leader of men and scored that
MOTOR RACING
crucial semi-final goal against Germany.
FIA FORMULA 1 BRITISH GRAND PRIX (Silverstone)—
Leading Positions after Race (52 Laps): 1 Mark Webber
(Aus) Red Bull 1hr 24mins 38.200secs, 2 Lewis Hamilton
(Gbr) McLaren 1:24:39.560, 3 Nico Rosberg (Ger) Mer cedes
Gio v.Bronckhorst (Holland)
GP 1:24:59.507, 4 Jenson Button (Gbr) McLaren Bowed out of football with a tremen-
1:25:00.186, 5 Rubens Barrichello (Bra) Williams
1:25:09.656, 6 Kamui Kobayashi (Jpn) BMW Sauber dous World Cup and who can forget his
1:25:10.371, 7 Sebastian Vettel (Ger) Red Bull 1:25:14.934, 8 semi-final wondergoal against Uruguay.
Adrian Sutil (Ger) Force India 1:25:19.132, 9 Michael
Schumacher (Ger) Mercedes GP 1:25:19.799, 10 Nico
Hulkenberg (Ger) Williams 1:25:20.212, 11 Vitantonio Liuzzi Xavi (Spain)

I’ll remember it as
(Ita) Force India 1:25:20.659, 12 Sebastien Buemi (Swi)
Scuderia Toro Rosso 1:25:25.827, 13 Vitaly Petrov (Rus) In carrying on his inspirational form for
Renault 1:25:37.574, 14 Fernando Alonso (Spa) Ferrari Barcelona, the little pass master has
1:25:40.585, 15 Felipe Massa (Bra) Ferrari 1:25:45.689, 16
Jarno Trulli (Ita) Lotus F1 at 1 Lap, 17 Heikki Kovalainen (Fin) covered every blade of grass.
Lotus F1 at 1 Lap, 18 Timo Glock (Ger) Virgin Racing at 2
Laps, 19 Karun Chandhok (Ind) HRT-F1 at 2 Laps, 20 Sakon
Yamamoto (Jpn) HRT-F1 at 2 Laps. Not Classified: 21 Jaime Andres Iniesta (Spain)

a festival of football
Alguersuari (Spa) Scuderia Toro Rosso 44 Laps completed ,
22 Pedro de la Rosa (Spa) BMW Sauber 29 Laps completed, The midfield dynamo capped a fantastic
23 Robert Kubica (Pol) Renault 19 Laps completed, 24 Lucas tournament with a majestic perform-
di Grassi (Bra) Virgin Racing 9 Laps completed. Standings: 1 ance in the final and the winning goal.
Lewis Hamilton (Gbr) McLaren 145pts, 2 Jenson Button
(Gbr) McLaren 133, 3 Mark Webber (Aus) Red Bull 128, 4
Sebastian Vettel (Ger) Red Bull 121, 5 Fernando Alonso
(Spa) Ferrari 98, 6 Nico Rosberg (Ger) Mercedes GP 90. Wesley Sneijder (Holland)
RUGBY LEAGUE What a World Cup he’s had. Behind
ENGAGE SUPER LEAGUE City.A.M columnist Trevor Here are my highs and lows of a
memorable month in the Rainbow
It was also noticeable just how the
so-called big guns failed to shine.
most of Holland’s best work going for-
Huddersfield.................................30 Crusaders RL.............................12 ward with five goals to boot.
Warrington ...................................54 Castleford ..................................30 Steven shares his World Cup Nation. Rooney, Ronaldo, Messi, Torres,
Highlight – Well, it’s a lowlight if Kaka – none made an impact.
TODAY’S DIARY memories from South Africa you’re Asamoah Gyan, but the Breath of fresh air – Uruguay. Thomas Muller (Germany)
(Football 7.45pm unless stated) moment he missed that last-gasp Inspired by Diego Forlan, the south From unknown to superstar in the

G
Friendly Matches: Canvey Island v Southend (7pm), Curzon OOD organisation, fantastic penalty against Uruguay in the quar- Americans shocked everyone to
Ashton v Man Utd XI, Kidsgrove Ath v Crewe XI, Oldham v space of a month, his Golden Boot
Burnley (7pm), Quorn v Crewe (7.30), Winterton Rangers v Hull. atmospheres everywhere you ter-final, encapsulated the emotional reach the semi-finals and gave a
paves the way for a very bright future.
CRICKET go, and not a hint of trouble, rollercoaster that is the World Cup. tremendous account of themselves.
Third One Day International: England v Bangladesh
South Africa 2010 will go Heartbroken Gyan bravely stepped Goal of the tournament – Giovanni
(Edgbaston, 10.45). down in many people’s book as a up to score in the ensuing shoot-out, van Bronckhorst for Holland against David Villa (Spain)
Second Women’s One Day International: England Women v tremendous festival of football. but Ghana lost and the tears just Uruguay in the semi-final. In the
I’ve been privileged to have wit- kept coming. penultimate game of his football With Torres off-colour, has further
New Zealand Women (Taunton, 10.45).
nessed it first hand and experience Low point – England. If South career, it was certainly one to savour. enhanced his reputation by almost sin-
SPEEDWAY gle-handedly leading the Spanish attack.
Sky Sports Elite League: Belle Vue v Coventry 7.30,
the joy that hosting the World Cup Africa 2010 is remembered for one Man of the tournament – There
Wolverhampton v Swindon 7.30. has brought to the people of South thing, it won’t be for the perform- are plenty of candidates; Iniesta and
Africa. ance of Fabio Capello’s men. We were Xavi of course, Sneijder, David Villa, Diego Forlan (Uruguay)
On the field, I think we’ve seen shocking from the word go, and but for me it has to be Diego Forlan
better, but it’s still been fascinating deservedly perished after our heavi- in his starring role for Uruguay. He Now one of the hottest properties in
SPORTS EDITOR JON COUCH the world after a superb World Cup,
email sport@cityam.com to watch and the right team came est-ever World Cup defeat, against put an extra nought on his value and
out on top in the end. Germany. was a deserved Golden Ball winner. which saw him win the Golden Ball.
CITYA.M. 12 JULY 2010 Sport 27

ON TOP OF
THE WORLD
Top: Iniesta wheels
away after scoring;
middle: Webb
shows the red card
to John Heitinga;
and, bottom, Nelson
Mandela makes an
appearance

Match-winner Andres Iniesta holds aloft the World Cup. Pictures: REUTERS

remaining to break Dutch hearts in a for a kung-fu-style kick on Xabi days without incident, I feel very Del Bosque threw on Cesc Fabregas
HOLLAND
after extra time
0 bad-tempered game in Johannesburg.
English referee Howard Webb
Alonso, while Mark van Bommel was
also fortunate to see out the final
proud of the players. This is invalu-
able for Spain. It’s a very happy day for
and then also wasted a glorious
chance, shooting at Maarten
broke the record for cards issued in a whistle for a series of fouls. all the Spanish people.” Stekelenburg’s legs, but the Arsenal
SPAIN 1 World Cup final, brandishing 13 yel-
low cards in total and a red to
Victory completes a momentous
double for the Spanish following
Typically, del Bosque’s side domi-
nated the possession, but it was the
man then made amends, feeding
Iniesta to fire home the winner.
Holland’s John Heitinga. their Euro 2008 success, and coach Dutch who engineered the first real Fernando Torres, on as a late substi-
WORLD CUP 2010 Indeed, it was a night which Vicente del Bosque was quick to hail chance of the game on 62 minutes tute, pulled up with a recurrence of
BY JON COUCH brought shame on the Holland’s the efforts of his players. when Wesley Sneijder put Arjen his groin injury in the dying seconds,
“Total Football” philosophy with Bert “It was a very difficult game but Robben clean through, but Iker but that wasn’t to take the gloss off a
ANDRES INIESTA capped a majestic van Marwijk’s side content on disrupt- our players are fantastic,” he said. Casillas saved well with his legs. historic night for La Roja.
performance with the winning goal ing the Spanish passing rhythm with “They have managed to win it first Spain, however, should have Dutch coach van Marwijk was
deep into extra time to help Spain lift heavy-handed tactics as they slumped time. It is true that they had chances wrapped it up themselves within the philosophical in defeat afterwards,
the World Cup for the first time. to their third World Cup final defeat. to score but we have had four clear 90 minutes when Sergio Ramos some- admitting: “The best team won. I am
The midfield maestro rifled home Nigel de Jong was the worst offend- chances. We owe everything to them, how sent a free header over the bar disappointed. It is a world champi-
with four minutes of added time er, lucky not to see red in the first half these great players. We have had 50 when unchallenged. onship and we have just lost a final.”

Webb just about got it right Uruguay’s Forlan handed


records with the number of cards
brandished, I thought he did a pretty
got it wrong for me. Holland’s
negative tactics in trying to
Golden Boot for star role
good job. stop the Spanish from play-
It’s not often you can say that a ing threw them off their Muller eventually took due to having
game warranted 13 yellow cards and stride also, and conse- WORLD CUP more assists.
a red, but I think this one did.
The Dutch will go on about the
quently we never saw the
best of them.
2010 Villa and Sneijder took the silver
and bronze balls respectively.
BY JON COUCH
decision not to award a It also made for a poor Muller also picked up the Young
OUR MAN IN JOHANNESBURG corner moments game, a damp squib in the URUGUAY striker Diego Forlan last Player award, while World Cup-win-
before Iniesta’s goal, weight of expectancy given night claimed the Fifa Golden Ball as ning captain Iker Casillas won the
TREVOR STEVEN but Webb, inset, the reputation of both teams the outstanding player of the World Golden Glove.
showed leniency to for their passing styles. Cup.

W
ITH Jabulani in hand, both Nigel de Jong for But, it has to be said that The former Manchester United WORLD CUP 2010 | GOLDEN BOOT
Howard Webb walked out his high boot, and not only the right team won on front man helped the south
into the Soccer City stadium Arjen Robben the night – thanks largely to an American side to a surprise semi-final Thomas Muller Germany 5*
a mighty proud man last for kicking out-of-this-world performance by appearance with five goals, including David Villa Spain 5
night – but boy was he made to work the ball away Iniesta – but the right team won blistering efforts against South Africa Wesley Sneijder Netherlands 5
for his place in history. late on overall. and Germany. Diego Forlan Uruguay 5
The Dutch tactics to snuff out the when on a Spain were, by far, the best passing Forlan finished in a four-way tie for Gonzalo Higuain Argentina 4
Spanish in any way possible made for booking. side in the competition and victory the Golden Boot with Spain’s David Robert Vittek Slovakia 4
a difficult game for the Premier Bert van for them was a victory for total foot- Villa, Holland’s Wesley Sneijder and Miroslav Klose Germany 4
League official and despite breaking M a r w ij k ball. Germany’s Thomas Muller, which * awarded Golden Boot on number of assists
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