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BUSINESS WITH PERSONALITY
IRELAND BETS
ALL ON £43BN
BAILOUT PLAN
EU ECONOMY fears that panicked savers will rush to ment could end up owning 90 per
▲
BY KATIE HOPE withdraw their cash. cent of the bank, and bringing its
While the Irish government recent- total rescue package potentially up to
BANK of Ireland was forced to reas- ly extended its 100 per cent deposit €10.4bn.
sure savers their money was safe yes- guarantee to all Irish-owned financial Lenihan said the bank bailouts
terday following the republic’s institutions until the end of the year, would “bring closure and finality to
revelation that the cost of Ireland’s this protection remains dependent the banking problems in Ireland,”
banking crisis could surge as high as upon the Irish state remaining sol- adding that by taking action now it
€50bn (£43bn) – as it revealed further vent. The possibility of national bank- would avoid having to call on the EU
bailouts for Anglo Irish Bank, Allied ruptcy, however remote, has already for a bailout in the style of Greece.
Irish Banks and Irish Nationwide. seen concerned savers withdraw He said he would outline a four-
“Customers can have confidence in money with customer deposits year plan in November to get its budg- Rok finance director Ashley Martin has now been cleared of mismanagement at the firm
Bank of Ireland and all deposits with falling by more than €5bn to €23.1bn et deficit, currently ten times the
INDUSTRY
will remain free from state control written by the National Pension funded until June 2011, had decided irregularities which led it to issue a
after the bailouts. Reserve Fund, meaning the govern- to cancel its bond auctions in October
BY MATTHEW WEST second profit warning earlier this
Finance minister Brian Lenihan, and November and would return to THE finance director of building and year.
who yesterday admitted the figures Finance minister Brian the bond markets as normal in early maintenance firm Rok yesterday “It was just untenable for me to
were “horrendous but manageable”, Lenihan says this round 2011. spoke of his eight weeks of “hell” as stay [at Rok] after getting the blame
has long insisted that customers The move reassured the City yester- he stepped down from the firm. for a profit warning. It has been
with savings in all of Ireland’s major
of taxpayer funding for day, and the cost of borrowing fell – “The whole experience has been insane. I spent 30 years building up
banks are safe, but the scale of the its banks will save it with 10-year bond yields dropping hell. It’s put me through hell, its put my career. To have this done to you is
bank bailout – equivalent to a third of going to the EU for cash almost 0.25 per cent to 6.37 per cent. my family through hell,” said Ashley terrible,” he said.
the country’s GDP – has triggered ALLISTER HEATH: P2, NEWS: P5 Martin, as he reflected on the period Martin said: “Reputation is every-
since 11 August when he was sus- thing in this business. If you haven’t
ANALYSIS l 10-year government bond yields (%) pended pending an investigation into got that you haven’t got anything.”
13 Source: Thomson Datastream 13 alleged financial mismanagement at He added: “I’m glad the company
Greece Rok’s heating, plumbing and electri- have made the statement they have
11 Ireland 11 cal business. clearing my name but I have been
Portugal Yesterday the company cleared him negotiating my exit since the
of any wrongdoing in a statement announcement of the profit warning.
9 Spain 9 that said that the scaling back of sub- I think it’s clear I wasn’t going to be
contracted work fitting out new able to work with those individuals
7 7 homes with piping and heating was [on the board] again.”
the cause for the previously lower Martin is believed to have left the
5 5 profit expectations. group with one year’s salary believed
But Martin said he could not to be in the region of £300,000 and
3 3 remain a member of the board of Rok his full share allocation of around
Jan 2010 March 2010 May 2010 July 2010 September 2010 after his fellow board members origi- 750,000 shares.
FTSE 100 t 5,548.62 -20.65 DOW t 10,788.05 -47.23 NASDAQ t 2,368.62 -7.94 £/$ t 1.57 -0.01 £/¤ ▲ 1.15 +0.01 ¤/$ 1.36 unc Certified Distribution
02/08/10 – 29/08/10 is 93,782
2 News CITYA.M. 1 OCTOBER 2010
iPad chemical
How the euro caused Ireland’s crisis firm plans to
Germany. For years, these warnings
were not heeded, neither by politi-
cians desperate to construct a political
Emerald Isle hit 4.2 per cent in August,
way too high; for 2006 as a whole,
Ireland’s GDP surged by 6.0 per cent
the “growth” was mere froth caused
by excessively low interest rates.
Ireland’s membership of the euro
float in London
Europe, nor, regrettably, by the big and its gross national product by 7.4 was thus the single most important
▲
financial institutions. Many banks per cent. In other words, at the height reason for yesterday eye-wateringly TECHNOLOGY
and economists chose to toe the party of a property, economic and mortgage large bailout of the Irish banks, which
line, in some cases to placate Europe’s boom, Ireland was enjoying negative will take the budget deficit to 32 per AZ Electronic Materials is planning to
political establishment and in other interest rates after adjusting for infla- cent of GDP and its gross government list in London, the Financial Times
EDITOR’S LETTER cases because they were fooled into tion. Companies and consumers were debt to 96 per cent of GDP. The tragedy reports this morning.
believing that the single currency being paid to borrow; projects that is that nobody is pointing this out: the The chemical company that pro-
ALLISTER HEATH afforded smaller countries a free would never have been worthwhile political establishment is too closely vides materials for flat panel displays
lunch of lower interest rates and sta- were the authorities pricing money implicated and may yet need to draw such as the iPad could be one of the
THERE is one aspect of the Irish crisis ble currencies. properly were being signed off left, on a European bailout fund. biggest flotations in the City this year.
that everybody appears to have forgot- Ireland would have needed very right and centre. The whole country Imagine what would have hap- AZ is owned by private equity
ten about. Yet it goes a long way high interest rates during the bubble was drunk on cheap credit, courtesy pened had Britain also embraced the groups Carlyle and Vestar Capital
towards explaining Ireland’s prob- years; instead, Frankfurt gave it ultra- of the euro; the commercial banks, as single currency: our interest rates – Partners, and makes 70 per cent of its
lems. It is, quite simply, its member- cheap money. Even in January 2006, ever, were acting as the highly paid which were substantially higher than revenues in Asia, the base for many
ship of the dysfunctional single when many of the more idiotic lend- transmission mechanism linking cen- the Eurozone’s, albeit still too low – techonology manufacturers.
currency, an institution which it ing decisions taken by Irish banks tral bank to consumers. Everybody would have stoked our own bubble to The firm’s finance director is based
should never have joined. were being planned, the European believed that Ireland’s excellent tax an even greater extent than anything in London, and the owners hope to
For years, sensible economists had Central Bank’s main interest rate was and microeconomic reforms – includ- managed by the Bank of England. The tap into a glut of City investors with
been warning that the euro’s one-size- just 2.25 per cent. This probably made ing the 12.5 per cent corporation tax UK property bubble would have been knowledge of specialty chemicals.
fits-all interest rates and monetary sense for Germany and maybe even rate – caused the boom. Of course, even larger and its implosion even UBS, Goldman Sachs and Deutsche
policy would trigger uncontrollable for France. But it was an absurdly low they did account for a large chunk of more devastating. We don’t realise it Bank are said to be managing the ini-
bubbles in high-growth countries, rate for Ireland, which could have the growth and played the key role in – but Britain’s bust of 2008-09 could tial public offering. AZ Electronic
such as Ireland, while depressing done with rates of eight per cent or transforming Ireland from backwater easily have been much, much nastier. could not be reached for comment
activity in weaker economies, such as even nine per cent. Inflation in the to global hub – but the remainder of allister.heath@cityam.com last night.
Distribution helpline the company attempted to draw a Kleiner Perkins Caufield & Byers, and unions RMT and the Transport
If you have any comments about the distribution BY EMMA SADOWSKI
of City A.M. Please ring 0207 015 1230, or email line under its previous boss, Mark previously served as president and Salaried Staffs’ Association (TSSA),
distribution@cityam.com Hurd. chief operating officer at Oracle. TRANSPORT for London (TfL) has which represent the striking workers,
Hurd left the company on 6 August Both appointments are effective vowed to keep as many services oper- that last month’s action paralysed
Editorial Statement under a cloud after an investigation from 1 November, HP said. ating on Sunday and Monday as possi- London. LU carried over a million
This newspaper adheres to the system of into claims of sexual harassment ble as London Underground (LU) people during the 24-hour period.
self-regulation overseen by the Press Complaints found he had filed inaccurate Leo Apotheker will workers stage their latest strike. “As we saw in the last strike, the
Commission. The PCC takes complaints about the expense reports. If the 24-hour stoppage by LU work- belligerent actions of the union lead-
editorial content of publications under the Editor’s take the top job at
Code of Practice, a copy of which can be found at “The investment community want- ers goes ahead on Sunday evening at erships will not bring London to a
www.pcc.org.uk ed an outsider to be named CEO,” Hewlett Packard after 7.00pm, the TfL said it will provide halt,” said Mayor Boris Johnson.
Printed by Newsfax International,
said Gleacher & Co analyst Brian the departure of one hundred extra buses, marshalled RMT and TSSA union members are
Beam Reach 5 Business Park, Marshall. “They view HP internally as ex-boss Mark Hurd taxis and increased passenger capaci- protesting over plans to cut 800 jobs
Marsh Way, Rainham, Essex, RM13 8RS a little bit dysfunctional in terms of ty along the Thames. and close ticket offices.
BUSINESS CALLS FOR REVIEW OF LOTUS AIMS TO REVIVE BOND CAR FISHER-PRICE TOYS RECALLED IN FLEXIBLE WORKING RIGHTS DELAYED HUNGARY'S FIDESZ SET FOR BIG WIN
CURBS ON MIGRANTS GLORY DAYS SAFETY ALERT AS GOVERNMENT BOWS TO PRESSURE Riding a surge in popularity after
New rules that restrict companies Lotus wants to return to its “Bond More than 70,000 Fisher-Price baby The Government has bowed to indus- refusing to back down to the
from hiring foreign workers must be car” glory days and take on Porsche toys and high chairs sold in Britain try pressure on red tape by putting off International Monetary Fund,
“reviewed immediately”, the CBI with a plan to relaunch its brand and have been recalled by the parent com- a key coalition pledge on extending Hungary’s governing Fidesz party is
employers’ body said, putting the triple its production of luxury sports pany Mattel as part of a worldwide the right to request flexible working set to win a landslide victory in local
business lobby on collision course cars within five years. The legendary effort in response to reports of chil- to all employees, according to cam- elections Sunday. A second decisive
with the government. The Home but perennially lossmaking British dren being choked, cut or bruised. paigners. Employment relations min- win in six months would give the gov-
Office imposed a temporary limit on carmaker on Thursday unveiled five High chairs, toys with inflatable balls ister Ed Davey yesterday announced ernment the political strength it
skilled workers coming to Britain planned models and said its owner and the Wheelies Stand ’n’ Play plans to extend the right to request needs to make sweeping changes to
from outside the European Union Proton had secured £500m to £800m Rampway have been recalled in only to parents of children aged under the welfare and pension systems.
because of fears of a flood of applica- to back a 10-year turnround. Britain. 18 from next April.
tions ahead of the introduction of a YOUTUBE STRIKES DEAL WITH FRENCH
permanent cap next year. CABLE JOINS FIGHT AGAINST AIR- TIMES CAMPAIGN FORCES NPOWER TO TAXMAN TOLD VAT IS NOT DUE ON MUSIC INDUSTRY
CRAFT CARRIER CUTS PAY £70M FOR OVERBILLING MUSIC REVIEW CDS Songwriters and composers will get
US CHARGES HACKERS OVER BANK Vince Cable has intervened to stave Npower, Britain’s fourth-largest Tax experts say European Court of paid when their videos are seen on
FRAUD SCHEME off cuts to the aircraft carrier pro- domestic energy company, has Justice decision on a £3m VAT case YouTube in France, under a deal
US prosecutors yesterday charged 70 gramme, echoing the fears of Liam agreed to pay £70m in compensation brought by HM Revenue & Customs announced Thursday by the online
people allegedly involved in a cyber- Fox, the defence secretary, over the to 1.8m customers who were over- against EMI will mean that companies video-sharing site and France's lead-
crime scheme that used malicious harm to Britain’s shipbuilding indus- charged for gas. The victory comes at can claim for overpaid VAT and that ing music-industry group. The indus-
software to steal more than $3m try. The business secretary pressed the end of a two-year campaign, UK laws on product samples and try group SACEM called the deal
from dozens of bank accounts. On the case for protecting the engineer- championed by The Times Money sec- small value business gifts will be over- difficult to reach but innovative, and
Wednesday, police in London arrested ing skills base at a key meeting of the tion, to secure proper redress for cus- hauled. Sample products should be a victory in its efforts to protect copy-
19 people, 11 of whom were charged National Security Council. tomers. free from VAT, the court has ruled. right and make money online.
CITYA.M. 1 OCTOBER 2010 News 3
G20 to consider
Treasury will tougher capital
back benefit rules for banks
pay revolution
BANKING
▲
FINANCE ministers in the G20 are
considering a tough capital regime
for the world’s biggest banks that
will go beyond Basel III rules, CNBC
said last night.
The US, however, disagrees with
▲
POLITICS straining plans for wide-ranging the proposals to add two to three per
BY MARION DAKERS reform. cent to the Basel capital rules, the
The current blueprint will allow report claimed.
THE GOVERNMENT has reached a Duncan Smith to declare billions of Sony’s Sir Howard Stringer and Tata’s Ratan Tata (r) will be on the panelPictures: PA/ REUTERS A senior official told the broadcast-
truce over the welfare system, which pounds in cuts up front, by counting er that the proposal would call for
will see most benefits scrapped and the savings expected in the new sys- big banks to increase their capital to
replaced with a single payment, the
Times reports this morning.
The work and pensions secretary
tem such as a drop in fraud, the
Times said.
An announcement on the trans-
Cameron ready to announce his somewhere between nine and 10 per
cent. The G20 finance ministers will
meet to discuss the latest Basel rules
Iain Duncan Smith has persuaded
the Treasury that the overhaul
would be affordable, the report
formation is expected at the Tory
conference next week, while details
of the £83bn of public sector cuts
panel of business advisers today on the 19 October in South Korea.
In the UK, Lord Turner of the
Financial Services Authority has
claimed. planned by the coalition will be pub- already expressed a wish to see more
Duncan Smith and the Treasury lished as part of chancellor George stringent capital ratios imposed on
have spent the summer trying to Osborne’s spending review on 20 executive Sam Laidlaw, BAE Systems banks to prevent funds drying up.
▲
POLITICS
hammer out a way to reduce the bill October. BY MARION DAKERS chairman Dick Olver and WPP adver- In a speech last week Turner said
for the welfare system. A spokesperson for the Treasury tising magnate Sir Martin Sorrell. that “if philosopher kings were
Duncan Smith said in July that a declined to comment on the story TWO MORE business figureheads were The Prime Minister’s Office is set to designing a banking system entirely
“universal credit” encompassing last night. named as part of David Cameron’s name the advisory panel today. It is anew for a greenfield economy, they
housing benefit, jobseekers’ panel of business advisors, Sky News expected to be a more informal affair would choose still higher ratios”,
allowance and income support FAST FACTS | LOOMING CUTS reported yesterday. than Gordon Brown’s Business though he accepted that the Basel III
would simplify the benefits system Indian businessman Ratan Tata Council for Britain panel, which agreement was a good starting point.
and help guarantee that those in ● Chancellor George Osborne will spell out and Sony president and chief execu- caused controversy before the elec- The international banking rules
work would be better off. plans to slash £83bn from the public sector tive Sir Howard Stringer are set to tion when the panel said it was happy will impose a 7.5 per cent ratio on
However, the Treasury has pushed budget in a spending review on 20 October join a raft of hand-picked industry to serve under a Conservative leader- banks’ Tier 1 capital holdings by
on the minister to find around £5 of ● The coalition has already cut £6.2bn after heads in the government’s business ship. The new group will have some 2018. Many in the banking industry
savings for every £1 the department delaying contracts and reducing other costs interest group. overlap in Diageo’s Paul Walsh and had feared the levels would be much
spends on changing the system, con- Also in the frame are Centrica chief GlaxoSmithKline’s Andrew Witty. higher.
4 News CITYA.M. 1 OCTOBER 2010
by next year
CURRENCIES
▲
CHINA remained defiant in the face of
America’s move to treat its currency
value as an illegal trade subsidy yester-
day, and suggested the law could
breach World Trade Organisation
(WTO) rules.
▲
OIL AND GAS biggest dividend payer in the FTSE A representative for the Chinese
BY EMMA SADOWSKI 100 list of leading companies. government said in a regular press
His comments will help to restore briefing that the passage of the US
BP’s new chief executive Bob Dudley shareholder confidence in BP after US judge Martin Feldman said he cannot decide whether to overturn the ban yet Currency Reform for Fair Trade Act is
moved to further restore the belea- the Gulf spill and repeated gaffes by “an excuse to engage in trade protec-
(£12.7bn) to pay for the clean up of ANALYSIS l BP BY MARION DAKERS overturn the ban. The measures allow the US to
the Gulf of Mexico oil spill. p 431.55 Meanwhile, interior secretary Ken impose extra tax on Chinese exports
440 1 Oct
“The board will get together and THE US ban on deepwater drilling Salazar, who introduced the drilling to balance out what it sees as a chron-
talk before the end of the year about looks set to stay in place for now, as freeze, said he was not ready to allow ically undervalued currency.
restoring a dividend in some form in 400 both a government head and a judge work to restart. In a speech to intro- However, Yu said yesterday America
the first quarter. Its obviously for the yesterday talked down the possibility duce rules on drilling safety, seen as a falls foul of WTO agreements by tar-
board to decide, [but] from what I see 360
of an early end to the rules put in precursor to lifting the ban, Salazar geting China’s yuan.
happening in the performances of place after the BP oil spill. said: “There will always be risks asso- On Wednesday, China’s central
the businesses, I believe we will get Judge Martin Feldman said yester- ciated with deepwater drilling, but bank promised to increase flexibility
there,” said Dudley yesterday. 320 day he would move quickly on oil we will only lift the suspensions in the exchange rate, three months
Last year, BP paid out about £7bn in firms’ challenge to the moratorium, when I am comfortable that we have after ending its policy of pegging the
dividends, making it the single 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep but added he needed more informa- significantly reduced those risks.” yuan to the dollar.
CITYA.M. 1 OCTOBER 2010 Sovereign Debt Crisis 5
Moody’s removes
Spain’s AAA rating
EU ECONOMY easier ride than Ireland and based on tax increases and meas-
▲
T
HE Conservative party confer- Liam Fox to David Cameron KPMG’s look to the medium term,
ence starts on Sunday and protested against cuts to the armed which suggests “a radical re-engi-
George Osborne may take forces. But a KPMG survey of senior neering of government” to reduce
some comfort from a new corporate decision makers released costs. The report recommends
KPMG report that supports the case alongside their report found that “exploring new opportunities in
for austerity, though he may find it 75 per cent of those surveyed in the areas like infrastructure privatiza-
too radical in other ways. Meeting UK supported defence cuts to help tion”. Paul Kirby of KPMG in the UK
the Deficit Challenge is a compre- reduce the deficit, the third high- argues “private involvement may
hensive analysis of the historical est level of support for such cuts in need to go deeper into the heart of
evidence on deficit reduction. It the world, well above the global government”, including schools. If
concludes that decisive, front- average of just 47 per cent. so, today’s austerity could be just
loaded public spending cuts are In Ireland, where the national the start of far larger changes in
the best answer to a ballooning deficit has grown even worse with our relationship with the state.
6 News CITYA.M. 1 OCTOBER 2010
BANKING
in the current quarter, and expect report. $68.8bn (£44bn) to their value, rather
▲
BY MARION DAKERS US ECONOMY
default rates to fall. Spreads on corporate lending also than $63.2bn as first thought.
SMALL businesses had more access to The central bank’s quarterly Credit narrowed. THE US government yesterday Inventories grew by $44.1bn in the
credit in the last quarter than any Conditions Survey also showed “Some lenders commented that revised up its second-quarter GDP first quarter.
time this year but many companies lenders had “tightened credit scoring heightened concerns about the out- growth by 0.1 per cent to 1.7 per cent. The tenth of a percentage point
remained wary of taking on debt, the criteria” over the past six months, come of the stress tests on the Personal consumption was revised increase in GDP for the three months
Bank of England said yesterday. and expect to tighten them even fur- European banking sector ... had tight- up from an original estimate of two to 30 June added $3.4bn to the US
A survey by the Bank showed that ther during the next three months. It ened funding conditions temporari- per cent growth to 2.2 per cent, the economy. But economists warned
demand for loans tailed off in smaller said lenders had told them they were ly,” the Bank said. biggest quarterly leap in consumer that import numbers suggested that
companies in the three months to the adopting a more “cautious approach” The Bank of England carried out spending in three years. This com- recovery from recession would
start of September. Secured lending to households, its survey of banks and non-bank pared with a 2.1 per cent rise in pur- remain slow.
Lenders meanwhile expect to sup- made up mostly of mortgages, fell in lenders between 13 August and 3 chases in the first quarter. Businesses GDP was still far below the first
ply a broadly similar amount of cred- the third quarter and were forecast to September. built up their inventories, adding quarter’s 3.7 per cent growth rate.
CBI criticises
migrant cap
will work. The migration system must
▲
POLITICS
BY DAVID CROW support, not hamper growth.”
The CBI will call on the govern- Federico Ghizzoni
EMPLOYERS’ group the CBI has ment to prioritise skilled workers takes the top job
thrown its weight behind Vince that have been offered a job. It will at UniCredit
Cable, the business secretary, by also say multi-national firms must be after a 30-year
warning that government plans to able to move their staff around freely career at the
cap non-EU immigration could ham- using intra-company transfers (ICTs). bank
per the economic recovery. Cable is leading the fight against
The government is consulting on the policy in cabinet, and has warned
plans to introduce a permanent cap that the cap could “damage” the com-
BANKING
been put in place to prevent a spike in Other cabinet ministers, including Ghizzoni, 54, was selected unani- He added that the board had not
applications ahead of the permanent schools secretary Michael Gove and ITALIAN bank UniCredit named insid- mously to rise from his role as one of appointed a director general. A bank-
cap, have been “poorly managed”. justice secretary Ken Clarke, are sym- er Federico Ghizzoni as its new chief four deputy chief executives to steer ing source said the board could name
John Cridland, CBI deputy director pathetic to his point of view. executive yesterday, a week after the bank through its recovery. one or two directors general at its
general, said: “The system is proving a An aide to home secretary Theresa Alessandro Profumo was ousted in a He suggested yesterday he would next meeting, in four weeks.
real headache for firms trying to keep May said: “We understand we need to boardroom coup. continue the bank’s strategy of Ghizzoni joined the bank in 1980
on valued members of staff, or recruit bring the best and brightest here, but The central Bank of Italy had urged expansion, telling reporters: as a customer relations manager,
specialists from overseas. we also have a policy to bring down UniCredit to appoint a successor “UniCredit is a European group. We’ll before working up to his most recent
“These problems are undermining overall net immigration, and that’s quickly, before the bank begins to keep on growing organically in post as head of central and eastern
confidence that the permanent cap what we’ll do.” MORE POLITICS: P8-9 flail in its efforts to rebuild after the Europe. There are no transactions in European operations.
America’s biggest hedge funds rake in TOP 10 | HEDGE FUNDS IN THE AMERICAS
Source: AR Magazine
Firm AUM $ billions
HEDGE FUNDS
Dalio, comfortably outstrips nearest value to their assets this year, said AR. Och-Ziff Capital Management Group 25.3
BRIDGEWATER has increased its lead rival JP Morgan, which looks after The biggest loser was D.E. Shaw,
as the biggest hedge fund manager in $41.1bn in its hedge funds business. which has seen the value of its assets BlackRock 22.83
America, figures released yesterday The survey shows there are 217 under management slashed by over
claimed. hedge funds managing more than $5bn in the last year, taking its total Angelo, Gordon & Co. 22.68
The firm now manages around $1bn each, and between them take to $17.8bn. The firm is in the throes of Baupost Group 22
$50.9bn (£32.4bn), up from $38.6bn care of assets worth over $1.9 trillion. cutting ten per cent of its workforce.
last year to also make it the biggest The number of firms in the list has Paulson & Co, whose flagship fund Farallon Capital Management 20
riser, according to AR magazine’s increased from 205 this time last year. lost 11 per cent last year, is in third
biannual rankings. Bridgewater, a 35- However, only 54 per cent of hedge place after gaining $4bn overall. King Street Capital Management 19.3
CITYA.M. 1 OCTOBER 2010 News 7
CHIEF EXECUTIVE,
ROLLS-ROYCE
tenure at the carmaker.
Rishton joined BA in 1994 and mov-
ing up the ranks, eventually took over
the role of chief financial officer. He
retained that post for four years until
his late 2005 departure for
Rishton, who spent four years as Royce’s board and is chair of the Amsterdam based, Royal Ahold.
▲
ENGINEERING
chief financial officer at British group’s audit committee. Rishton officially joined Ahold on 1
BY EMMA SADOWSKI Airways (BA), will be faced with the He joined Ahold in 2006 from BA as January 2006 as the group’s execu-
BRITISH engine maker, Rolls-Royce tough challenge of driving Rolls- executive vice-president and was later DESPITE a five-year posting in the tive vice-president and chief financial
has confirmed that the Royal Ahold Royce forward amid expected cuts to promoted into the chief executive Dutch supermarket industry, John officer but was promoted a year later
boss is to become new chief executive the defence budget and ongoing position. Rishton is no stranger to the auto and to president and chief executive.
as Sir John Rose prepares to retire. problems with its engines. Rishton is to be replaced by Ahold’s aviation sectors having spent the That same year Rishton also took
John Rishton, who is currently “John [Rishton] has a proven track chief operating officer, Dick Boer who majority of his career at both Ford up a non-executive director role on
chief executive at the Dutch super- record as a chief executive of a global will take over the chief executive role Europe and British Airways (BA). Rolls-Royce’s board.
market group, will take up the post company and has a background in once Rishton leaves next year. The newly appointed Rolls-Royce In April Rishton was appointed to a
next March when Rose stands down. aerospace and manufacturing,” said Meanwhile, Ian Strachan will chief executive began his career at second term at the top of Ahold, but
Rose will leave Rolls-Royce after 26 chairman Simon Robertson. takeover Rishton’s job as audit chair Ford in 1979 and held a number of tendered his resignation yesterday to
years, of which he served 14 years as Rishton already holds a spot as a on an interim basis until Rolls-Royce senior positions during his 15-year return back to his transport roots.
the group’s chief executive. non-executive director on Rolls- finds a replacement.
▲
BANKING
activity rises coupled with anticipated revenue share gains by the higher
margin electronic division, is driving our forecasts.
“
Spencer said the firm’s current funds to its shareholders since 2007
▲
FINANCIAL SERVICES
level of performance should put it on and it will now be at least three years
BY VICTORIA BATES course to hit analyst expectations The business is definitely going in the right direction until payments resume.
THE WORLD’S largest inter-dealer bro- over the full year to March, with cur- in terms of diversity, and it is well positioned for the most UBS follows several other lenders
ker Icap expects first-half sales to rent pre-tax profit forecasts falling who are starting to provide more clar-
come in nine per cent stronger than within the range of £333m to £357m. likely structural reform outcomes – namely the IT update of ity on the impact of the new rules on
”
last year as trading activity picked up Icap posted a pre-tax profit of the market and an increased focus on risk management, bank capital and liquidity, unveiled
again following the financial crisis. £333m in the previous financial year, which will boost Icap’s post trade business. three weeks ago. Shares in UBS,
Icap yesterday said the active high though this year’s results will be Europe’s largest wealth manager by
frequency markets had boosted its impacted by higher borrowing costs assets, fell 1.3 per cent on the back of
post trade business and electronic after the group refinanced its debt at the news.
broking division, which in September the turn of the year. Chief financial officer John Cryan
pioneered first electronic market for Last week, Icap filed a lawsuit NIC CLARKE | CHARLES STANLEY said: “The dividend commencement
“
trading interest rate swaps. against 38 of its Singapore brokers date is a little uncertain. Sometime in
Icap chief executive Michael and its Swiss rival Compagnie the period of Basel III introduction
Spencer said politicians and regula- Financiere Tradition, in an attempt to The good news is that full-year forecasts for Icap are we’ll be able to resume our returns to
tors “should be thrilled” by the firm’s stop the staff leaving the business. on target. However, earnings remain volatile, the regulatory shareholders in the form of a divi-
work in setting up the new platform, Spencer yesterday admitted that the dend or even share buyback.
which would make the market more situation remains uncertain, but environment is uncertain, credit markets have ended the peri- “I’d be expecting by 2013-14 to be in
”
“resilient, robust and transparent” – a added that its potential impact is od quieter and Icap’s equity derivatives businesses have been a position where we’re comfortably
key concern in the wake of the col- “not currently regarded as likely to be adversely affected by investors’ lower risk appetite. on track, unless something extraordi-
lapse of Lehman Brothers. material” to the group’s results. nary comes out on Monday.”
LEGAL LEGAL
ners Jean-Francois Findling, Raphael than 50 years now but it has become become managing partner and tax
BAKER & McKenzie, the world’s Collin and Laurent Fessmann. In an increasingly obvious that we’ve need- MAGIC CIRCLE law firm Freshfields partner Stephan Eilers, who will take
largest law firm by revenue, is to open unusual move for a law firm, Bakers ed to be in Luxembourg to fully Bruckhaus Deringer has handed over the executive partner role.
a new office in Luxembourg in a has also poached a team of five tax respond to our clients’ needs,” said London partner Will Lawes the senior All three will officially move into
move that sees it take over a local 15- specialist from E&Y led by Andre James Burdett, who leads the City partner title as part of a management their respective titles in January 2011
lawyer practice and five tax special- Pesch. funds practice at Bakers. reshuffle. when current senior partners Guy
ists from accountants Ernst & Young Findling and Pesch will lead the Burdett said the new office will Lawes, who recently co-headed the Morton and Konstantin
(E&Y). new office, which will predominantly link back to the City as an increasing firm’s financial institutions practice, Mettenheimer stand down.
As part of the new launch, Bakers focus on advising funds on tax, corpo- number of funds are looking to regis- was voted into the role yesterday. Managing partner Peter Jeffcote is
has acquired local law firm Findling rate and finance related matters. ter in Luxembourg. He will be joined at the top by chief to become the firm’s general counsel.
8 Regulation CITYA.M. 1 OCTOBER 2010
REGULATION
Meanwhile the national minimum David Frost, director-general of the about reviewing and scrutinising
BY DAVID CROW wage will today rise by 13p to £5.93 an BCC, said: “If private sector businesses upcoming red tape, businesses are yet
A MOUNTAIN of new red tape will hour, while apprentices will be enti- are to offset job losses in the public to see the benefits.”
cost firms billions of pounds, busi- tled to a wage of at least £2.50 an sector, the significant costs of employ- The Institute of Directors (IoD) also
ness groups warned yesterday. hour. ing people must be reduced. As aus- hit out at the government’s decision
The British Chambers of And employment legislation due to terity measures start to bite, to extend the right to request flexible
Commerce (BCC) said a raft of new be passed between now and 2014 will companies need the flexibility and working to parents of children under
employment regulation and the new cost firms a staggering £11.3bn, freedom to boost employment and 18 from next year.
Equality Act, which becomes law despite the government promising a drive our economic recovery. “This is particularly unwise when
today, would hamper job creation bonfire of red tape during the elec- “While we have heard some good we know that creating another for-
mal employment right would add to
the already excessive amount of
administration businesses have to
conduct to comply with regulations,”
a spokesperson for the IoD said.
Meanwhile, the IoD voiced its oppo-
sition to the coalition’s £2bn levy on
the banking sector, warning it would
pave the way for future governments
to increase it while encouraging
banks to relocate overseas.
“There is clearly public concern
about how some of the banks have
behaved which needs to be addressed,
but this should be done in a way that
doesn’t encourage the banks to move
their headquarters out of the UK,”
said Miles Templeman, director-gener-
al of the IoD.
He added: “There is a risk that the
bank levy, as currently designed, will
drive banking business away.”
LEGAL
BY EMMA SADOWSKI to the new “combined discrimina-
tion” offence, which allows employ-
LAWYERS warned that the Equality ees to lump together a number of
Act, which comes into force today, discrimination claims into one
could cause a flood of claims to hit action. “In recent months we have
tribunals if businesses fail to comply seen a surge in interest among busi-
with the new rules. nesses as they look to update internal
The Equality Act 2010 was intro- policies to deal with new areas of dis-
duced by Labour deputy leader crimination and, potentially, a sub-
Harriet Harman’s and fulfilled a 2005 stantial increase in employment
manifesto commitment. tribunal claims,” said Carolyn Miller,
The Act brings together nine differ- a lawyer with McGrigors.
ent anti-discrimination laws, includ- The Act also includes measures
ing the Equal Pay Act, and aims to such as, the removal of pay secrecy,
simplify legislation in this area. positive discrimination enforcement,
Legal experts estimate that tri- and laws against third party harass-
bunals could be hit with a 10 per cent ment and disability discrimination.
▲
POLITICS
However, sources inside the could be offered the job of shadow
BY DAVID CROW Miliband camp were yesterday insist- business secretary, allowing him to
JUST as Labour recovers from the fra- ing that Cooper would be much bet- take on Vince Cable. But there are
ternal rivalry that gripped its confer- ter in the role, arguably the second growing fears that Cooper will turn
ence this week, it looks as though a most important job in opposition. down the job out of loyalty to Balls.
matrimonial battle is about to com- “Does he want a pugilist like Ed or If Cooper does rule herself out, the
mence. a firm but fair voice of reason from Labour leader will likely have to give
New Labour leader Ed Miliband Yvette? The truth is we absolutely the post to Balls, despite his reserva-
wants to appoint the former work need someone to bring the UK round tions.
and pensions secretary Yvette Cooper to our argument,” an ally said yester- Along with his wife, the former
as his shadow chancellor. day. schools secretary and Gordon Brown
But Ed Balls – her husband – has “If Ed becomes shadow chancellor ally, is the only senior Labour MP
coveted the top economic brief for it could end up being a shouting with enough grounding in econom-
over a decade. He knew he would not match between the boys whereas ics to prepare the party’s response to
win the leadership, but threw his hat Yvette could frame the language in the comprehensive spending review
into the ring to improve his chances ways that the public understands.” on 20 October.
Ed Balls could
find it hard to be
a bag carrier for
his wife Yvette
Cooper
SUPPORT SERVICES
enue growth to be around three per Shares in the group, closed down operations in 50 countries and annu- net debt of around £700m. It will
BY HARRY BANKS cent. 1.5 per cent yesterday at 530.5p, valu- al revenues of £13bn. According to likely move to a net cash position
COMPASS Group said it expected full- However, including acquisitions ing the business at £10bn. yesterday’s numbers, things are soon, leaving it free to return cash to
year earnings to rise by around 15 per and, at constant currency rates, it is going from strength to strength. shareholders or buy bolt-on targets.
cent after sales growth accelerated in expected to be around four per cent.
ANALYSIS l Compass Momentum is clearly on the The global food services market,
p 530.50
the second half boosted by new con- Compass, which operates in 50 570 1 Oct firm’s side. Organic sales grew 0.4 worth £200bn a year, is ripe for con-
tract wins and improved retention of countries, said its operating margin is per cent in the first half, and five per solidation. Just 40 per cent is current-
existing customers. expected to have improved by around 550 cent in the second. Revenues in the ly outsourced, and Compass has just
The group, which counts Chelsea 40 basis points over the full-year. North American region, Compass’ seven per cent of the fragmented
Football Club, London’s O2 arena, the The group said the ongoing chal- biggest, grew by 5.5 per cent over the market, but at this rate, it will soon
530
Bank of England and the US Senate lenging economic conditions are like- full-year, against 2.8 per cent in the have much more.
among its clients, said revenue ly to continue to impact organic first six months. Sales in Europe
growth, excluding acquisitions, revenues in the near term but said it 510 were flat, with trading particularly
improved to over five per cent in the
second half of the year compared
was encouraged by its pipeline of new
business, while the strength of its bal- 490
tough in the UK, but Brazil and
Australia helped the rest of the
BOTTOMLINE
with 0.4 per cent in the first half. ance sheet is enabling it to make 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep Analysis by David Crow
Ofgem plans
Harvey Nash
EX-MPC MEMBER JOINS CREDIT SUISSE
to halt quiet
sees City jobs price hikes
bounce back
▲
ENERGY
ENERGY suppliers will have to warn
customers 30 days in advance before
raising power and gas prices if a plan
by watchdog Ofgem wins approval.
staff being employed. Under current rules, suppliers can
▲
RECRUITMENT
He added: “There is less activity put up prices without notifying cus-
BY JOHN DUNNE
with contracts but on the whole tomers for up to 65 days afterwards.
RECRUITMENT specialist Harvey Nash things are picking up.” The rules will come into effect at
said yesterday that a rise in jobs in However, he issued a stark warning the start of 2011, providing suppliers
financial services had helped the to the government that the recovery do not object. Energy secretary Chris
company to boost its profit. should not be strangled through a Huhne has already warned that the
The firm saw pre-tax rise to £2.6m hike in taxes in the financial services government may take legal action
from £1.8m a year earlier as new life sector. against energy firms if they block
was breathed into the jobs market fol- Ellis said: “The government has to reforms.
lowing the recession. be very careful not to overstep the “This is a welcome step forward in
An increase in regulation has seen mark and attack the City because of getting energy companies to play fair
companies recruit more risk special- the huge contribution it makes. To with their customers by giving
ists, according to the company. raise taxes would be a very bad idea advance notice of price increases,”
Banks are also hiring more IT spe- with a fragile economy.” said Huhne.
cialists as mergers – like that of Lloyds The company announced an inter- He added: “It’s important people
and HBOS – have created problems as im dividend of 0.935p per share has know about price hikes before they
incompatible computer systems have been recommended, up from 0.850p are charged, so they can budget.”
caused confusion. in 2009. The regulator said that new rules
Harvey Nash chief executive Albert would give householders more
Ellis said: “Things are looking better. ANALYSIS l Harvy Nash chance to switch supplier or reduce
We have seen an improvement in jobs p 52.50 their energy use to help counter the
in the City. 52 1 Oct effect of increased prices.
“Companies are employing more “This information makes it easier
permanent staff and the added regu- 48 to shop around for a better energy
lation means companies need special- deal and to evaluate the benefits ener-
ists to deal with that. gy efficiency measures can deliver,”
44
“Jobs in tech are also picking up said Andrew Wright, Ofgem’s senior
and things seem to be improving.” FORMER Bank of England Monetary Policy Committee member Kate Barker has joined partner for markets.
The company saw revenue drop 40 Credit Suisse as a senior adviser. Barker, who spent nine years on the MPC, was formerly Wholesale gas prices have soared in
despite the profit rise. a chief economic adviser at the CBI. Sir Alan Budd, who stepped down from Credit Suisse 2010, pushing up wholesale power
Ellis attributed the lower revenue 36 in May to spend a fleeting stint as the first chairman of the government’s Office for prices and raising the possibility of
to a fall in the number of contract 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep Budget Responsibility, has also rejoined the bank as a senior adviser. Picture: REUTERS further retail price hikes.
FINANCIAL SERVICES
▲
PRIVATE EQUITY
BY HARRY BANKS since brewer ABInBev’s $45bn acquisi- the highest quarterly total for M&A Blackstone, the world’s biggest pri-
tion loan in 2008. since the fourth quarter of 2008. TONY James, president of US private vate-equity firm, has raised $13.5bn
COMPANIES in Europe, the Middle Banks are more willing to lend for With $60bn of loans in the equity business Blackstone Group, (£8.6bn) for its sixth buyout fund, 40
East and Africa (EMEA) borrowed big takeovers and with borrowing pipeline – deals in syndication but said yesterday there isn’t enough cap- per cent less than it gathered for its
$574bn (£365bn) of syndicated loans cheap would-be buyers are seizing the not yet signed – the market is on ital available from investors to fund previous pool.
in the first nine months of 2010, up chance, meaning that sensible deals track to beat last year’s $650bn annu- all the opportunities he sees in the In the past year, the company has
16 per cent on the same period a year that were ruled out because financ- al total, the lowest since 2003. market. sold $1bn of debt to fund acquisitions
ago as the loan market was boosted ing was too scarce or costly may now The third quarter is traditionally “In 2005 and 2006, if you put it out and hire teams to diversify to offset a
by a jumbo loan for BHP Billiton, return to the agenda, even if they run the quietest three months of the year, well, you could raise as much as you decline in buyouts. Its largest unit
according to Thomson Reuters data. into the tens of billions of dollars. since it includes the summer holi- could invest,” James, 59, said at the runs fund of hedge funds and credit
Lending in the third quarter BHP’s loan signalled the return of days, but it still managed to record Bloomberg Dealmakers Summit in investing, with $52.4bn of assets.
totalled $212bn, with 21 per cent big-ticket M&A for the first time since the second highest quarterly total New York. “The economics are not going to be
taken by BHP’s $45bn loan to back its 2008. The deal pushed the third-quar- since the second quarter of 2008. He added: “That’s no longer the attractive for a few years,” James said.
The Capitalist
11
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
MEREDITH “Meredith
Whitney is
WHITNEY predicting
80,000 Wall
FEARS BANK Street layoffs
APOCALYPSE and bonuses
that will
A DIRE warning yesterday to the invest-
ment bankers of the world, as one of Wall dramatically
Street’s most famous banking analysts, Rellis (above) said his style inspiration
Meredith Whitney, called the apocalypse disappoint” was actor Cary Grant and championed a
(Part II). classic style, with a navy double-breasted
Whitney, a former Oppenheimer & Co pinstripe suit, double-cuffed white shirt
analyst who now runs her own advisory and solid tie the cornerstones of his work
firm, is one of the most dedicated bears in wardrobe.
the business, having begun by betting
that Citi would run out of cash to pay a Whitney says 80,000 bank jobs are in danger on Wall Street Picture: GETTY
dividend and coming out the other end to
predict the next financial crisis. Ladbrokes chief executive Richard Championship (if that’s not a contradic-
ALL ABOUT THE MONEY
A sleek black board game drops onto The
Yesterday, the blonde bombshell of Glynn, PKR founder Jez San, Irish tycoon tion in terms). Capitalist’s desk, claiming to be a financial
doom turned her laser vision on bank Dermot Smurfit, restaurateur Antonio version of the hugely popular world-dom-
bonuses and investment banking job cuts, Carluccio, PR guru Matthew Freud, ination game Risk.
reiterating her forecast that 80,000 will be
laid off on Wall Street alone (heaven
Trinity Mirror chief Sly Bailey and actress
Barbara Windsor were all among the
SLEEK AND CHIC The aim of “Billionaire Tycoon”, as the
Kudos for American commodities broker new game is known, is for players to build
knows how many she reckons will go guests who flocked to the evening, which Greg Rellis, an employee at OTC Europe, their global business empires as fast as
worldwide) and that year-end bonuses are kicked off with a dinner and auction and who yesterday took first prize in a com- possible, becoming the richest and most
likely to “disappoint dramatically”. later moved on to a poker tournament. petition to find the best dressed successful mogul of them all through
Let’s hope, for once, that she’s barking The evening managed to raise over banker in London, instigated by acquiring, trading and selling businesses.
up the wrong tree. £200,000 for “Raising the Stakes”, a chari- Savile Row tailor Cad and the City workers are likely to be a dab hand at
ty fund set up by the gaming industry in Dandy. it naturally, though if anyone wants any
aid of the Great Ormond Street Hospital. The firm said it had received tips, the makers advise would-be
POKER FACE-OFF Prizes at the event included private cook- over 20,000 votes in the competi- billionaires to heed several points
To the exclusive Les Ambassadeurs club in ing lessons with Carluccio himself, a trip tion, in which Barclays’ incoming – including remembering that
Mayfair last night for a high-stakes poker to Vegas and poker lessons with legendary chief executive Bob Diamond took sixth “you won’t win by being nice” and
evening attended by the great and the player Mike Sexton, and an ultra-VIP pack- place and Florent Gerard of Bank of “in business there is nothing personal, it’s
good of the gaming and business worlds. age to the final of the World Darts America finished as runner-up. all about the money”.
This adver tisement contains numerous trade marks belonging to The Royal Bank of Scotland Group plc and other companies in the RBS Group. These trade marks include, but are not limited to, The Royal Bank of Scotland logo, The Royal Bank of Scotland and RBS. If you are in doubt
as to whether an item is a trade mark of The Royal Bank of Scotland Group plc or a member of the RBS Group, please contact us for clarifi cation at the registered offi ce address The Royal Bank of Scotland plc, Registered in Scotland No 90312. Registered Offi ce: 36 St Andrew Square,
Edinburgh EH2 2YB. RBS is authorised and regulated in the UK by the Financial Ser vices Authorityy. RBS is an authorised agent of The Royal Bank of Scotland plc N.V in cer tain jurisdictions.
12 News CITYA.M. 1 OCTOBER 2010
FINANCIAL SERVICES
project medium-term revenue esti- dwarfed by the 4.7bn people who use
BY STEVE DINNEEN mates of £15m from the deal. mobile phones.
UK MOBILE banking and payments DeviceFidelity will produce a spe- tomer service staff and retail store
▲
TELECOMS
group Monetise has announced a cial microSD chip that will slot into ANALYSIS l Monitise workers would not be affected.
major partnership to supply software most smartphones and Monetise will p 21.50 EVERYTHING Everywhere, the tie-up The group, which has nearly 28m
24
for Visa’s new contactless payment produce the software to communi- 1 Oct between France Telecom’s Orange customers, has headquarters in
system. cate with the contact points. Monetise and Deutsche Telekom’s T-Mobile in London, Hatfield and Bristol.
Last week City A.M. revealed Visa has long-standing partnerships with 22
the UK, said yesterday it would cut Earlier this week the joint venture
will roll out a network of payment both DeviceFidelity and Visa. 1,200 back office and management said it has completed its merger inte-
points where users can use their Visa is coming to the end of a trial jobs. gration ahead of plan.
mobile phone to pay in stores. based in Sitges in Spain before 20 The company said the roles were The firm announced in its second
Now Monetise has said it will part- launching a partial UK roll out in duplicated across the two businesses, quarter results it has grown its con-
ner DeviceFidelity to provide software time for the 2012 Olympics. which merged in July, and will affect tract customer base by 8.6 per cent
18
to process the payments, with the The firm believes the technology around 7.5 per cent of its 16,000 year on year. It said Ebitda for the sec-
London-based firm taking a small per- has the potential to provide a lucra- 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep
strong workforce. ond quarter was £309m, with rev-
centage of each transaction. tive new revenue stream. Visa has Everything Everywhere said cus- enue growing one per cent.
expects Xmas
(right) yesterday
launched a major
fibre broadband
network in
Cornwall as part of
the firm’s goal of
adverts boost
providing super-
fast internet to 66
per cent of the UK
by 2015. BT worked
with the local
authority and
Brussels to fund
the roll out to some
for our retailers, which is why we can of the more remote
▲
ADVERTISING
certainly see visibility through to the parts of the county.
BY STEVE DINNEEN
end of this year, and financial services
AD AGENCY M&C Saatchi hopes a is still very competitive.”
bumper Christmas for retailers will Kershaw added: “If you could lock
help it beat full-year expectations. in the current trading we would all
The update came as Saatchi posted be very happy. Any concerns are
a 17 per cent rise for pre-tax profit to about what might happen in the
£6.3m and the same size sales rise to course of the next year.”
£58.2m, for the six months to the end In March the ad agency revealed a
of June. 27 per cent drop in full-year pre-tax
The news adds to hopes that the UK profit on flat sales. However, it pre-
MEDIA
rating to “buy” from “add” and target This is despite the group return- enues. It added it was optimistic
price to 147p from 131p. SPORT Media Group (SMG), the pub- ing to profit for the first time in two that recent initiatives in its digital
Chief executive David Kershaw said 105 lisher of the Daily Sport and Sunday years. Sport Media made an operat- division will produce an improved
he expected analysts to raise their rev- Sport was forced to ask for a six ing profit of £800,000 in its first- performance for the rest of 2010.
enue predictions for the year to £116- month “holiday” on its £50,000 a half, versus a loss of £400,000 in the SMG chairman Martin Robinson
117m, from about £110m, and also 95 month loan from Royal Bank of same period last year. said: “A focus on stabilising the core
nudge up their pre-tax profit num- Scotland, it admitted yesterday. The firm said that so far in the businesses saw the disposal of two
bers. The red-top publisher warned sec- second half it has seen a “solid per- loss-making subsidiaries. As a result,
He said: “I think you will see a 85 ond-half profit is likely to fall short formance” from the newspapers, all trading group entities are now
5 Jul 23 Jul 12 Aug 2 Sep 22 Sep
vibrant, competitive Christmas ahead of expectations and said its working with some circulation gains but con- profitable and cash generative.”
BANKING
▲
over the next few years. ter deal than the banks offer. Given BANKING mer head of product engineering for
BY STEVE DINNEEN
He said: “There is no reason we the banks show no sign of reducing North America. The SEC alleged that
ONLINE peer-to-peer lender Zopa has can’t have 10 or 20 per cent of the the huge spreads they charge between TWO former top State Street execu- Flannery and Hopkins marketed one of
smashed past the £100m arranged market. There are far more people borrowing and lending, we are sure tives were hit with securities fraud State Street’s bond funds as an
loans mark as demand for alternative wanting to borrow than there are this growth will continue.” charges yesterday for misleading “enhanced cash” investment strategy
banking surges. lenders. investors about a risky subprime that was an alternative to a money-mar-
The bank says the success of its “We have the best performing loan Zopa chief Giles mortgage-laden fund and tipping off ket fund. However, by 2007 the fund was
model, where individual lenders and book in the UK, better than the high favored clients. “almost entirely invested” in subprime
borrowers agree their own terms, is street banks with a default rate of just Andrews says he The US Securities and Exchange residential mortgage-backed securities
partly a reflection of low interest 0.7 per cent. Zopa provides hard evi- expects the online Commission (SEC) said it charged and derivatives.
rates. Chief executive Giles Andrews dence that person-to-person lending bank to continue to John Flannery, a former member of State Street said it “has resolved this
told City A.M. he expects the firm to works and can be hugely beneficial grow exponentially. State Street’s executive management matter, both in terms of addressing client
rapidly increase its share of the UK for both borrowers and lenders. group, and James Hopkins, the for- concern and settling with the SEC.”
CITYA.M. 1 OCTOBER 2010 News 13
Canada, France
Stone will advise CHEESE BUSINESS BOOSTS DAIRY CREST
probe HSBC’s
new SME bank on Swiss accounts
hunt for investors
▲
BANKING
3i trebles buyouts
after restructure
FINANCIAL SERVICES weeks, merging the buyouts team the group still sees good value. But
▲
BY JOHN DUNNE with the growth capital business Queen added the competition for
that specialises in buying minority assets will help 3i sell businesses at
PRIVATE equity firm 3i Group tre- stakes in fast growing businesses. attractive prices. Queen said there
bled its buyout investments in the The move led to the departure of is strong demand for general indus-
five months to August after a 3i’s leading dealmaker Jonathan trial companies with a good product
recent shake-up at the firm saw its Russell, a 24-year veteran of the range, manufacturing efficiencies
head of buyouts resign, it said yes- firm. 3i also announced a deal for and international prospects.
terday. debt management firm Mizuho
Investment in buyouts increased Investment Management earlier ANALYSIS l 3i 286.90
to £236m from £86m in 2009, with this week, a move designed to bol- 115 p 1 Oct
overall investments up more than ster the group’s corporate debt
65 per cent to £257m, 3i said. investing business, and one which is
113
Realisations from investments seen moving the firm further from
sold fell to £129m from £448m in a buyouts model to a broader asset
2009. 3i’s chief executive Michael management business. 111
Queen said the group had made Meanwhile, high asset prices con-
good progress growing the compa- tinue to weigh heavily on new deals,
ny over the period. with Queen saying the firm would 109
Queen has led a number of keep its focused approach, targeting
changes at the firm in recent sectors such as healthcare, where 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep
INSURANCE The Treasury will convert some close by the end of the 2011 first
of its AIG securities into common quarter and will give taxpayers an
AMERICAN International Group shares, increasing its ownership instant paper profit of more than
(AIG) laid out a plan yesterday that stake to 92.1 per cent from nearly $10bn, showing the insurer is mak-
sets the company on a path for an 80 per cent. That stake will be sold ing progress in disentangling itself
accelerated payback of taxpayer off over time. from the government and posi-
bailout money, but also increases The Treasury will also effectively tions the company to tap the capi-
the risk for the government. buy out the Fed’s interest in two tal markets again.
The plan, which comes a little large AIG units that are being sold. But at the same time, it increases
over two years after AIG was res- Under the repayment plan, the the risk for taxpayers, as AIG draws
cued from the brink of collapse, Treasury will get about 1.66bn down more of the funds authorised
will see the Federal Reserve Bank of (£1.06bn) AIG common shares, under the $182.3bn bailout and the
New York getting repaid in full and worth $62bn at Wednesday’s clos- government swaps preferred stock
ending its involvement in AIG, leav- ing share price, in exchange for the for common, which can yield a
ing the company to deal with just $49.1bn of AIG preferred shares it profit but also a loss if the company
the Treasury Department. now holds. The deal is expected to does not perform well.
ADVERTISEMENT
FOOD
where corn sweeteners saw good agreed to sell its European sugar
BY HARRY BANKS demand but industrial starches and operations in July to privately owned
SWEETENER and starches maker ethanol had more difficult trading. American Sugar Refining for £211m, includes Memory Lane and
▲
FOOD
Tate & Lyle said it expects annual “The encouraging start to the year breaking a 150-year link to sugar, Lightbody, saw sales drop by 9.7 per
profit to rise, after building on an has continued in the second quarter, and hopes to sell its remaining sugar BAKER Finsbury Food Group saw cent during the period, due to an
encouraging start to the year over particularly within Speciality Food business in Vietnam and molasses sales fall for the first time in its histo- overall decline in the cake market
the summer. Ingredients, with good operating unit in Britain by end-2010. ry as the recession took its toll on the and a decision to exit low-margin
Chief executive Javed Ahmed said performance and solid demand in a Analysts have said an eventual sale premium cake market. business.
he expects “progress” in full-year number of our markets,” Ahmed of its bulk ingredients business is Group revenue for the 52 weeks to “Current trading for the first eight
pre-tax and operating profits, driven said. possible. 3 July 2010 was £168.3m, down 5.9 per weeks since the half year is in line
by growth in the speciality sweeten- Ahmed, who took over in October Polly Barclay at broker JP Morgan cent year-on-year, although the com- with expectations, with revenue
ers and starches business including 2009, has promised to focus on the Cazenove said: “This positive update pany did manage to increase profits growth of 10 per cent in absolute
its sucralose sweetener Splenda. group’s fast-growing speciality but cautious outlook is in line with before tax by seven per cent to £5.4m, terms and five per cent on a like-for-
These businesses, estimated to sweeteners and starches at the expectations given Tate is up an excluding one-off savings. The compa- like basis, after eliminating the
make 55 per cent of group profit, expense of its sugar and bulk com- absolute 15 per cent in the month of ny’s cake operation, which accounts impact of Livwell,” Finsbury said in a
were balanced by a more mixed pic- modity ingredients. September.” for 74 per cent of revenue and statement.
64
ANALYSIS l Michelin
€ 55.81
1 Oct
29
ANALYSIS l Paddy Power
€
25.78
1 Oct
ANALYSIS l Dominos Pizza
480
P 469.60
1 Oct
Panmure bid 60
56
27
440
400
as profit falls
25
52 360
5 Jul 23 Jul 12 Aug 1 Sep 21 Sep 5 Jul 23 Jul 12 Aug 2 Sep 2 Sep 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep
FINANCIAL SERVICES with Michelin’s investment case. The bro- target price of €30.70. The broker says an ing forecasts for the full-year. The broker
for Cenkos. We may be able to prize
BY HARRY BANKS ker, which rates the stock as “overweight”, operationally leveraged UK retail expansion expects before tax profit for the pizza
away clients and dissatisfied individu-
CENKOS Securities has no interest in als,” he said. estimates the €1.2bn rights issue causes for Paddy Power and market share growth group to rise from £36.6m to £37m and
the sector’s prime bid target, Cenkos’ underlying interim operat- around 11 per cent dilution, which implies in online should provide scope for revenue- says that if the current trend continues,
Panmure Gordon, although Cenkos’ ing profit fell 7.4 per cent to £5m, but
chief executive said his company Melling hoped Cenkos’ second half new cash is utilised at a similar return as driven consensus upgrades over the next Domino’s has the potential to beat this fore-
could benefit from any disruption at profits would be “slightly up” on the rest of the business today. six to 12 months. cast. The broker gives the stock a “buy”.
Panmure. those of the first-half.
“I’m more interested in acquiring It saw strong growth in its wealth
teams and individuals,” Cenkos chief management business with funds To appear in Best of the Brokers email your research to notes@cityam.com
executive Simon Melling said, as the under management rising to £982m
OIL
David is eyeing a bid for peer value stands at roughly £44m while September. Only last month Regal parted com-
Hoodless Brennan. Evolution’s market capitalisation is OIL explorer Regal Petroleum said its “Following the poorer than antici- pany with its financial adviser
In the past, Cenkos has looked at around £200m. wells in Ukraine had performed poor- pated production achieved from well Mirabaud Securities after it emerged
rivals Close Brothers and Arden Britain’s smaller, independent ly and it would carry out a strategic MEX-120 and the work-over pro- it was spearheading an attempt to
Partners, but Melling said mergers investment banks and brokers have review, adding that its chief executive gramme in Ukraine, the company is oust Greer on behalf of its former
between brokers were often hard to posted mixed first-half results. David Greer was stepping down. undertaking a strategic review of founder.
pull off. Panmure and Ambrian Capital The company said yesterday it had reservoir performance,” Regal said. The company has proved plus prob-
He added that Cenkos could bene- reported interim losses, while Collins agreed to sell its licence in Romania Chief executive David Greer had able oil reserves of around 152m bar-
fit from any disruption at Panmure Stewart and privately-held Liberum to Chevron for $25m (£15.9m), as part resigned, Regal said, and chairman rels of oil, according to an
or Evolution caused by the bid situa- Capital had higher first-half profits. of a move to refocus its activities sole- Keith Henry would take over his independent report.
CITY MOVES | WHO’S SWITCHING JOBS Edited by Victoria Bates in association with
tive committee, has spent his 25-year unsecured and structured loans for was director of the pensions group and
Threadneedle career at Salomon Brothers, Merrill global borrowers into the EMEA region. corporate finance at Grant Thornton,
The investment manager has appointed Lynch and Credit Suisse, where he He joins from BNP Paribas, where he responsible for M&A and corporate
Vanessa Donegan, a founding member of its stepped down last year as head of was most recently responsible for sell- covenant reviews.
investment team, as head of Asia and global investment banking for the Asia Pacific ing loans in France, Russia, CIS and
emerging markets. region. Turkey. Rabobank
Donegan has 30 years of experience in fund Matthew Carr has joined the bank as
management, including her most recent role as Deutsche Bank Begbies Traynor head of exchange traded funds (ETF)
Threadneedle’s head of Asia Pacific equities. The bank has hired Sébastien Avot as a The professional services consultancy marketing in its global financial mar-
She will now be responsible for overseeing the director in its distribution and emerging firm has hired Christopher Clayton to kets division. Carr has been hired to
management of £6.5bn of assets under man- market loan trading team, which sits its London pensions advisory team as a develop Rabobank’s ETF platform as
agement – over a tenth of the firm’s total pool. within the structured trade and export partner. part of its participation in the ETF
finance division of global transaction Clayton joins from Close Brothers Exchange. He previously worked at BNP
UBS ment for the emerging markets. banking. Corporate Finance, where he was a Paribas, where he was responsible for
The Swiss bank has appointed Paul Raphael, who will also be a member Avot, who will be based in London, managing director and head of the pen- European sales and marketing of the
Raphael as head of wealth manage- of the UBS Wealth Management execu- will focus on distributing syndicated sions advisory group. Prior to that, he bank’s ETF product.
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 . . . . . . . . . . . . . . . . . . . . . . . .286.50 +1.00 310.00 246.90 Cookson . . . . . . . . . . . . . . . . . . .547.00 +11.00 616.00 347.60 JPMorgan Emerg Mkts . . . . . . . .580.00 +3.50 588.00 443.00 SABMiller . . . . . . . . . . . . . . . . .2035.50 +9.50 2090.00 1450.00
3i Infrastructure . . . . . . . . . . . . . 113.90 +0.10 115.00 97.00 Croda Intl . . . . . . . . . . . . . . . . .1482.00* +3.00 1529.00 647.00 Jupiter Fnd Mgmt . . . . . . . . . . . .259.50 +2.70 263.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .276.30 +0.20 283.90 208.20
A.B. Foods . . . . . . . . . . . . . . . .1049.00 –10.00 1096.00 790.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .526.00 –2.50 539.00 381.00 Kazakhmys . . . . . . . . . . . . . . . .1452.00* –5.00 1634.00 955.00 Sainsbury(J) . . . . . . . . . . . . . . . .390.70 –4.30 397.00 307.60
Aberdeen Asset Man . . . . . . . . . .160.50 –2.50 164.90 111.00 Dana Petroleum . . . . . . . . . . . .1798.00 — 1817.00 968.50 Kesa Electricals . . . . . . . . . . . . .146.40* –2.00 162.00 98.45 Schroders . . . . . . . . . . . . . . . . .1438.00 +1.00 1459.00 1055.00
Admiral. . . . . . . . . . . . . . . . . . .1666.00 +9.00 1691.00 1003.00 Davis Service . . . . . . . . . . . . . . .401.50* –7.80 442.30 356.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .234.20 +0.30 255.00 196.50 Schroders N/V. . . . . . . . . . . . . . 1166.00 +5.00 1187.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . .123.50 +0.90 137.30 103.10 De La Rue . . . . . . . . . . . . . . . . . .660.50 –1.00 1021.00 638.00 Ladbrokes . . . . . . . . . . . . . . . . .134.20* –3.30 166.62 114.60
Afren . . . . . . . . . . . . . . . . . . . . . 110.60 +2.00 111.20 76.25 Debenhams . . . . . . . . . . . . . . . . .65.30 –0.95 90.00 51.95 Lamprell . . . . . . . . . . . . . . . . . . .356.40* +10.00 372.30 157.30 Scot. & Sthrn Energy. . . . . . . . . 1118.00 — 1206.00 357.50
African Barr Gold . . . . . . . . . . . .590.00 +4.50 685.00 520.50 Derwent London . . . . . . . . . . . .1504.00* +3.00 1562.00 1174.00 Lancashire Hldgs . . . . . . . . . . . .555.00* –5.00 567.50 416.70 Scottish Mortgage. . . . . . . . . . . .640.00 +5.50 640.50 475.00
Aggreko . . . . . . . . . . . . . . . . . .1570.00* +10.00 1639.00 664.50 Dexion Absolute . . . . . . . . . . . . .140.30 +1.20 148.00 130.00 Land Securities . . . . . . . . . . . . . .640.50* –2.00 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .273.00* –0.50 389.90 244.00
Alliance Trust . . . . . . . . . . . . . . .330.70 –1.30 352.70 292.80 Diageo . . . . . . . . . . . . . . . . . . .1096.00* — 1176.00 930.50 Legal & General . . . . . . . . . . . . .103.50* –0.40 105.70 69.05 Serco . . . . . . . . . . . . . . . . . . . . .615.00* –3.50 656.50 485.60
AMEC . . . . . . . . . . . . . . . . . . . . .986.00 –4.50 1002.00 724.50 Dimension Data . . . . . . . . . . . . . 119.60 — 125.50 62.00 Lloyds Banking Gp . . . . . . . . . . . .74.12 –0.18 79.15 45.30 Severn Trent . . . . . . . . . . . . . . . 1311.00 –14.00 1404.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .401.30* +2.30 437.60 350.80 Dixons Retail . . . . . . . . . . . . . . . .25.71 +0.27 39.75 23.07 Logica . . . . . . . . . . . . . . . . . . . .126.80* +0.60 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .432.90 –6.70 456.00 348.00
Anglo American . . . . . . . . . . . .2525.50 –6.00 3015.50 1846.50 Domino’s Pizza . . . . . . . . . . . . . .469.60 –1.70 484.70 278.20 London Stk Exchange . . . . . . . . .681.00 –12.50 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1434.00* –25.00 1532.00 999.00
Antofagasta . . . . . . . . . . . . . . .1236.00* — 1258.00 699.50 Drax . . . . . . . . . . . . . . . . . . . . . .383.30* +0.30 479.30 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1669.00 +2.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .580.50 +7.00 700.50 525.50
Aquarius Platinum . . . . . . . . . . .340.60* –3.30 490.00 211.50 Dunelm . . . . . . . . . . . . . . . . . . . .391.70 +11.70 438.40 303.00 Man . . . . . . . . . . . . . . . . . . . . . .219.10 +5.90 373.60 199.60 Smiths . . . . . . . . . . . . . . . . . . .1219.00 +23.00 1253.00 864.50
ARM Holdings . . . . . . . . . . . . . . .392.20* –10.60 419.50 134.40 Easyjet . . . . . . . . . . . . . . . . . . . .369.90 +2.60 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .388.10 +4.20 412.70 321.90 SOCO Intl . . . . . . . . . . . . . . . . . .430.00 –1.90 510.00 380.60
Ashmore . . . . . . . . . . . . . . . . . . .334.60 +0.60 338.40 215.00 Edinburgh Inv Tst . . . . . . . . . . . .417.00 –3.00 436.00 338.00 Meggitt . . . . . . . . . . . . . . . . . . . .296.20* –1.80 331.00 224.90 Spectris . . . . . . . . . . . . . . . . . .1073.00 +22.00 1083.00 653.00
Astrazeneca . . . . . . . . . . . . . . .3233.50 –4.00 3389.50 2668.00 Electrocomponents . . . . . . . . . . .242.80 +5.10 246.30 142.90 Melrose . . . . . . . . . . . . . . . . . . .273.60* +1.70 278.60 160.00
Atkins(Ws) . . . . . . . . . . . . . . . . .736.00 –16.00 801.00 532.50 EnQuest . . . . . . . . . . . . . . . . . . . 115.80 –0.40 125.90 87.35 Mercantile IT . . . . . . . . . . . . . . . .953.00* –4.00 1002.00 822.50 Spirax-Sarco Eng . . . . . . . . . . .1800.00 –23.00 1859.00 1026.00
Autonomy Corp . . . . . . . . . . . .1813.00 +10.00 2012.00 1278.00 Essar Energy . . . . . . . . . . . . . . .462.60 –2.40 475.90 358.50 Michael Page Intl. . . . . . . . . . . . .460.80* +1.90 470.70 314.40 Spirent Comms . . . . . . . . . . . . . .141.90 +2.90 145.10 84.40
Aveva . . . . . . . . . . . . . . . . . . . .1463.00 –3.00 1491.00 856.50 Eurasian Nat Res . . . . . . . . . . . .918.50* +14.50 1276.00 781.00 Micro Focus . . . . . . . . . . . . . . . .381.50 +11.80 550.00 272.20 Sports Direct Intl . . . . . . . . . . . . .141.00 +2.10 143.20 89.85
Aviva . . . . . . . . . . . . . . . . . . . . .398.90* –3.10 474.00 290.20 Euromoney Inst Inv . . . . . . . . . . . 611.00 +5.50 630.00 352.90 Millen & Copthorne . . . . . . . . . . .520.00* –5.00 547.00 321.40 SSL Intl . . . . . . . . . . . . . . . . . . . 1158.00 — 1190.00 616.00
Babcock International . . . . . . . . .570.00 –5.50 660.50 489.00 Experian . . . . . . . . . . . . . . . . . . .693.00 +1.00 698.50 516.50 Misys . . . . . . . . . . . . . . . . . . . . .285.60 –2.00 295.80 192.60 St James’s Place . . . . . . . . . . . . .289.80 –1.20 296.90 203.40
BAE Systems . . . . . . . . . . . . . . .342.30 +0.80 389.90 288.10 Ferrexpo . . . . . . . . . . . . . . . . . . .308.30 +3.80 396.20 138.00 Mitchells & Butlers . . . . . . . . . . .290.50 –3.30 343.90 228.30 Stagecoach. . . . . . . . . . . . . . . . .182.20 –0.90 204.90 137.00
Balfour Beatty . . . . . . . . . . . . . . .267.50 +1.10 304.80 228.60 FirstGroup . . . . . . . . . . . . . . . . .362.80 –5.20 433.00 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .191.20 –0.80 257.00 187.60 Standard Chartered . . . . . . . . . .1826.00* –55.00 1946.00 1366.50
Barclays . . . . . . . . . . . . . . . . . . .299.60 –5.65 394.25 253.40 Foreign & Col Inv Tst. . . . . . . . . .283.70 –0.30 297.20 248.70 Mondi . . . . . . . . . . . . . . . . . . . . .514.50 +0.50 520.50 300.70 Standard Life . . . . . . . . . . . . . . .231.20* –1.20 237.00 170.00
Barratt Development . . . . . . . . . . .98.75 –1.20 178.75 89.10 Fresnillo . . . . . . . . . . . . . . . . . .1242.00 –8.00 1272.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .322.00 +6.00 324.80 265.00 SuperGrp . . . . . . . . . . . . . . . . .1215.00 +30.00 1312.00 499.00
BBA Aviation . . . . . . . . . . . . . . .188.40* –0.40 220.00 145.90 G4S . . . . . . . . . . . . . . . . . . . . . .254.60* +1.10 285.70 217.70 Morrison Wm . . . . . . . . . . . . . . .295.70* –6.40 307.10 255.00 TalkTalk . . . . . . . . . . . . . . . . . . .146.70 –1.20 150.50 106.60
Bellway. . . . . . . . . . . . . . . . . . . .576.00 –1.00 847.00 510.00 Genesis Emerging Mkts Fd . . . . .507.50 –0.50 512.00 370.00 Murray Intl Tst . . . . . . . . . . . . . . .881.00 +1.00 907.50 720.00 Talvivaara Mining . . . . . . . . . . . .491.80 –0.20 501.50 341.40
Berkeley . . . . . . . . . . . . . . . . . . .826.00 –6.00 949.50 735.00 GKN . . . . . . . . . . . . . . . . . . . . . .169.40* +1.50 172.80 100.40 National Express. . . . . . . . . . . . .242.30 +1.70 258.60 155.86 Tate & Lyle . . . . . . . . . . . . . . . . .466.80 –4.70 509.00 388.00
BG . . . . . . . . . . . . . . . . . . . . . . 1118.50 –15.00 1248.00 966.90 GlaxoSmithKline . . . . . . . . . . . .1254.50* +3.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .540.00 –4.00 607.65 474.80
BHP Billiton . . . . . . . . . . . . . . .2025.00* +3.00 2346.00 1583.50 Great Portland Estates . . . . . . . .341.30 –1.00 348.40 236.60 Next . . . . . . . . . . . . . . . . . . . . .2216.00 –11.00 2360.00 1726.00 Taylor Wimpey . . . . . . . . . . . . . . .28.35 –0.37 46.34 24.29
BlackRock Mining . . . . . . . . . . . .625.50 –3.50 654.50 474.00 Greene King . . . . . . . . . . . . . . . .410.80 –4.10 484.00 372.50 Northumbrian Water . . . . . . . . . .332.60 –5.50 353.00 225.20 Telecity . . . . . . . . . . . . . . . . . . . .495.50 –23.00 546.00 311.30
BlueBay . . . . . . . . . . . . . . . . . . .344.90 +0.60 393.00 251.00 Halfords . . . . . . . . . . . . . . . . . . .442.80 –0.90 562.50 343.00 Ocado Grp . . . . . . . . . . . . . . . . .131.10 –2.90 169.00 129.20 Templeton Emrg Mkts . . . . . . . . .619.50 +9.00 625.00 449.00
Bluecrest Allblue GBP . . . . . . . . .169.50 +0.10 170.00 147.00 Halma . . . . . . . . . . . . . . . . . . . . .316.50 +8.50 321.00 215.40 Old Mutual . . . . . . . . . . . . . . . . .138.80 –1.70 142.50 94.75 Tesco . . . . . . . . . . . . . . . . . . . . .424.00 –9.25 454.90 368.40
Booker . . . . . . . . . . . . . . . . . . . . .48.05 +0.05 49.99 37.50 Hammerson . . . . . . . . . . . . . . . .394.30* –0.70 460.30 332.20 Partygaming . . . . . . . . . . . . . . . .275.50 –1.50 339.70 205.80 Thomas Cook . . . . . . . . . . . . . . .171.80* –3.40 277.20 167.50
BP . . . . . . . . . . . . . . . . . . . . . . .427.80 +6.80 658.20 296.00 Hargreaves Lansdown . . . . . . . .440.00* –4.70 478.00 259.40 Pearson . . . . . . . . . . . . . . . . . . .985.50 –2.00 1069.00 751.50 Travis Perkins . . . . . . . . . . . . . . .843.50 –2.00 915.00 647.50
Brit Insurance . . . . . . . . . . . . . .1025.00 –3.00 1045.00 709.00 Hays . . . . . . . . . . . . . . . . . . . . . . 113.10 +0.20 119.00 82.50 Pennon . . . . . . . . . . . . . . . . . . . .581.50* –7.00 616.50 440.40 TUI Travel . . . . . . . . . . . . . . . . . .214.40* –3.10 313.90 189.20
British Airways . . . . . . . . . . . . . .242.80 –3.20 255.80 172.40 Henderson . . . . . . . . . . . . . . . . .124.20 –0.80 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .399.40 –3.10 520.00 335.90 Tullett Prebon . . . . . . . . . . . . . . .397.40 –9.00 436.20 261.20
British Amer. Tob . . . . . . . . . . .2374.50* –6.00 2439.00 1832.00 Heritage Oil. . . . . . . . . . . . . . . . .296.80 –2.20 585.00 296.80 Petrofac . . . . . . . . . . . . . . . . . .1373.00* +6.00 1446.00 900.00 Tullow Oil . . . . . . . . . . . . . . . . .1274.00* –9.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .465.50 +3.50 469.00 338.50 Hikma Pharma . . . . . . . . . . . . . .688.50* –30.50 813.00 452.20 Petropavlovsk . . . . . . . . . . . . . . 1110.00* –60.00 1370.00 834.00 UK Commercial Prop. . . . . . . . . . .76.50 –1.80 84.90 69.30
British Land . . . . . . . . . . . . . . . .465.00 –6.90 515.00 416.00 Hiscox . . . . . . . . . . . . . . . . . . . .348.80 –4.50 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .685.00* +5.00 775.00 550.50 Ultra Electronics . . . . . . . . . . . .1704.00 –19.00 1774.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .485.20 –0.50 518.00 340.00 Hochschild Mining . . . . . . . . . . .445.00 –3.00 457.50 220.00 Premier Farnell . . . . . . . . . . . . . .266.60* +9.10 272.60 140.60 Unilever . . . . . . . . . . . . . . . . . .1841.00 –3.00 2024.00 1662.00
BSkyB . . . . . . . . . . . . . . . . . . . .705.50 –1.50 732.00 521.00 Home Retail . . . . . . . . . . . . . . . .206.00 –0.60 326.30 204.10 Premier Oil . . . . . . . . . . . . . . . .1654.00 –7.00 1703.00 984.00
BT . . . . . . . . . . . . . . . . . . . . . . .140.00 –1.20 151.00 108.40 Homeserve . . . . . . . . . . . . . . . . .439.50 –30.70 502.00 435.40 Provident Financial . . . . . . . . . . .824.00 –1.00 986.00 795.00 United Utilities . . . . . . . . . . . . . .573.00 +1.00 620.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .759.00 –8.00 784.50 614.00 HSBC Hldgs . . . . . . . . . . . . . . . .645.00* –4.00 766.80 595.20 Prudential . . . . . . . . . . . . . . . . . .636.50 +2.50 665.00 475.70 Utd Business Media . . . . . . . . . .629.50* +10.00 656.50 408.30
Burberry . . . . . . . . . . . . . . . . . .1040.00 +20.00 1065.00 492.10 Hunting . . . . . . . . . . . . . . . . . . .621.50 –0.50 659.50 429.10 PZ Cussons . . . . . . . . . . . . . . . .367.00* –6.00 382.70 231.70 Vedanta Resources . . . . . . . . . .2165.00 — 2967.00 1795.00
Cable & Wire Comms . . . . . . . . . .56.75 –1.95 150.00 53.00 ICAP . . . . . . . . . . . . . . . . . . . . . .431.50 –6.30 478.30 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . .107.80 –0.80 179.10 103.50 Victrex . . . . . . . . . . . . . . . . . . .1276.00 +3.00 1329.00 726.50
Cable & Wire Wwide . . . . . . . . . . .73.55 –1.05 94.80 60.05 IG . . . . . . . . . . . . . . . . . . . . . . . .497.20* –11.80 532.00 291.00 Randgold Resources. . . . . . . . .6370.00 –115.00 6620.00 3930.00 Vodafone . . . . . . . . . . . . . . . . . .157.10 –1.40 164.95 126.50
Cairn Energy. . . . . . . . . . . . . . . .453.60 –4.50 497.60 306.80 Imagination Tech Gp . . . . . . . . . .381.40 –2.50 399.00 154.00 Reckitt Benckiser . . . . . . . . . . .3501.00* +32.00 3667.00 2971.00 Weir . . . . . . . . . . . . . . . . . . . . .1423.00 –6.00 1459.00 635.00
Caledonia Invs . . . . . . . . . . . . .1627.00 — 1759.00 1496.00 IMI . . . . . . . . . . . . . . . . . . . . . . .767.50* –5.50 786.00 410.00 Reed Elsevier . . . . . . . . . . . . . . .538.00 +3.50 566.00 454.60 Wellstream Hldgs . . . . . . . . . . . .765.00* +9.00 810.00 429.70
Capita . . . . . . . . . . . . . . . . . . . . .786.00* +1.50 829.50 693.00 Imperial Tobacco. . . . . . . . . . . .1897.00 +15.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .80.00* –3.50 125.50 64.05 WH Smith . . . . . . . . . . . . . . . . . .453.20 +5.10 551.00 392.20
Capital & Counties . . . . . . . . . . .131.20 –2.60 137.50 99.60 Inchcape. . . . . . . . . . . . . . . . . . . 311.80 +0.20 347.00 235.00 Renishaw . . . . . . . . . . . . . . . . .1031.00* –1.00 1048.00 479.00 Whitbread . . . . . . . . . . . . . . . . .1624.00 –8.00 1653.00 1141.00
Capital Shopping Centres . . . . . .367.70 –4.50 533.50 300.10 Informa . . . . . . . . . . . . . . . . . . . .418.90 –7.00 439.40 263.30 Rentokil Initial . . . . . . . . . . . . . . .103.00 –0.50 140.20 91.15 William Hill . . . . . . . . . . . . . . . . .166.00 –4.00 217.80 160.50
Carillion . . . . . . . . . . . . . . . . . . .313.50* –5.40 361.90 267.60 Inmarsat . . . . . . . . . . . . . . . . . . .663.50* –5.50 831.00 526.00 Resolution . . . . . . . . . . . . . . . . .245.00* –2.40 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .465.00 +1.80 487.00 396.30
Carnival . . . . . . . . . . . . . . . . . .2502.00 –39.00 2937.00 1876.00 Intercontl Hotels . . . . . . . . . . . . 1136.00* –14.00 1244.00 762.50 Rexam . . . . . . . . . . . . . . . . . . . .307.00* –1.00 348.80 258.20
Catlin . . . . . . . . . . . . . . . . . . . . .340.50 +0.20 394.60 303.20 Intermediate Capital . . . . . . . . . .299.00 –0.10 308.30 233.50 Rightmove . . . . . . . . . . . . . . . . .733.50 –6.50 796.50 456.90 Wolseley . . . . . . . . . . . . . . . . . .1599.00 +8.00 1742.00 1155.00
Centamin Egypt . . . . . . . . . . . . .177.00 –1.40 194.40 92.00 Intertek . . . . . . . . . . . . . . . . . . .1830.00 –6.00 1863.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .3721.00 –41.00 4104.00 2435.00 Wood Group (John). . . . . . . . . . .436.60 +9.00 443.50 279.60
Centrica . . . . . . . . . . . . . . . . . . .323.50* –0.80 347.00 236.30 Intl Personal Fin . . . . . . . . . . . . .269.80* –5.90 283.00 159.20 RIT Capital Partners . . . . . . . . . 1110.00 –3.00 1215.00 940.00 WPP . . . . . . . . . . . . . . . . . . . . . .704.50 –3.50 744.00 520.50
Charter Intl . . . . . . . . . . . . . . . . .694.00 +4.00 855.50 563.50 Intl Power . . . . . . . . . . . . . . . . . .388.00* +2.80 396.80 248.20 Rolls Royce . . . . . . . . . . . . . . . .603.50 –8.50 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . .1218.00* –24.00 1344.50 815.00
Chemring . . . . . . . . . . . . . . . . .3006.00 +7.00 3711.00 2389.00 Invensys . . . . . . . . . . . . . . . . . . .298.50 –0.40 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1720.00 +1.00 1740.00 1101.00 LONDON TOP 250 BY MARKET CAPITALISATION
Close Bros . . . . . . . . . . . . . . . . .737.50 –4.50 804.00 657.00 Investec . . . . . . . . . . . . . . . . . . .508.50 –1.00 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .47.21 –0.68 58.95 28.25
Cobham . . . . . . . . . . . . . . . . . . .231.00 +0.90 278.60 205.50 ITV . . . . . . . . . . . . . . . . . . . . . . . .59.65 +0.40 71.75 41.04 Royal Dutch Shell A . . . . . . . . .1916.00 +5.50 2068.50 1621.00 * Ex-Dividend † Suspended
COLT Group . . . . . . . . . . . . . . . . 118.30 –2.30 144.20 107.70 Jardine Lloyd Thompson. . . . . . .577.50* –1.50 604.50 420.70 Royal Dutch Shell B . . . . . . . . .1857.00 +10.50 1997.50 1550.00
Compass . . . . . . . . . . . . . . . . . .530.50 –21.00 574.50 372.40 Johnson Matthey . . . . . . . . . . .1762.00 –16.00 1814.00 1302.00 RSA Insurance . . . . . . . . . . . . . .130.70* +0.50 142.00 114.10 www.interactivedata.com
B W
RITAIN’S FTSE 100 closed lower the end of the year. after a “disappointing” in-line trading ALL Street wrapped up its ings to their highest level in three
yesterday as weaker banks out- Barclays fell 1.9 per cent while statement, said trader Ben Critchley best quarter in a year yester- months in September and reduced
weighed gains from energy HSBC lost 0.6 per cent. at IG Index, although brokers remain day with the S&P and bonds and cash as confidence about
stocks on stronger crude prices But elsewhere among financials generally positive about the catering Nasdaq logging in the the global economy grew. The Dow
and comments suggesting BP could Man Group was the top gainer, up 2.8 group’s longer-term outlook. biggest monthly gains since April Jones industrial average slipped 47.23
resume paying a dividend in 2011. per cent, buoyed by a supportive note On the upside, Burberry climbed 2009, as data showed the economy points, or 0.44 per cent, to 10,788.05.
The FTSE 100 closed 20.65 points, from UBS which reiterated its “buy” two per cent after Bernstein issued a isn’t in such bad shape. The Standard & Poor’s 500 Index
or 0.4 per cent lower at 5,548.62. It stance on the stock. broadly positive note on the luxury Defying September’s track record declined 3.53 points, or 0.31 per cent,
gained 6.2 per cent in September and BP gained 1.6 per cent as the oil goods sector. as the worst month for stocks, the to 1,141.20. The Nasdaq Composite
12.8 per cent in the third quarter. major’s chief executive Bob Dudley Upbeat broker sentiment also S&P 500 was up 8.8 per cent. In the Index fell 7.94 points, or 0.33 per cent,
Sharp falls in US weekly claims for told the BBC that the company want- helped defence and electronics firm third quarter, the index gained 10.7 to 2,368.62.
jobless benefits and early signs of ed to resume paying a dividend in Smiths Group, up 1.9 per cent, with per cent, which was the best in a year. After the bell, Hewlett-Packard
strength in September business activ- 2011. Morgan Stanley hiking its target price The session was volatile, split shares fell 3 percent to $40.65 after
ity helped to lift stocks in afternoon BP and other energy firms like for the technology group following between investors positioning for the the company named Leo Apotheker
trade, but uncertainty over the out- Royal Dutch Shell, up 0.3 per cent, full-year results on Wednesday. end of the quarter and those buying as its new chief executive, tapping a
look for banks and the wider econo- were also supported as oil prices rose on encouraging data. After up and software industry veteran to lead the
my saw it retreat just before trading around $1 to near $79 per barrel. ANALYSIS l FTSE 5,548.62 down moves of nearly one per cent, world’s largest technology company.
5,800 30Sep
closed. But overall investors were cautious equities ended slightly lower. Semiconductor companies, a
“There’s optimism out there and and a wide range of shares were weak- Still, the S&P 500 seemed to be growth sector that advanced during
investors are happy to see modest er. Supermarket Tesco and miner struggling to break above the 1,145- the quarter, ranked among the day’s
improvement but we are going to see Xstrata were both down around two 5,400 1,150 trading range. losers and weighed on the Nasdaq.
insipid reaction to positive data,” per cent. “Since September was such a The Philadelphia semiconductor
David Buik, senior partner at BGC Moody’s Investor Service cut strong month, many think October index fell 0.7 per cent. In the options
Partners, said. Spain’s credit ratings to Aa1 from 5,000 will be the scary one. If [future] data market, bearish activity was detected
Trade was also volatile as investors AAA, with a stable outlook, saying it and earnings confirm that we are in Micron Technology about a week
adjusted positions at the end of the sees weak economic growth finally out of fears of a double-dip before its quarterly results, and in
quarter. prospects for the Eurozone’s fourth- 4,600 [recession], October may be the Dell, as some investors appear to be
Banks took most points off the biggest economy. 5 Jul 23 Jul 12 Aug 2 Sep 22 Sep month for the S&P to break above taking defensive positions.
CITYA.M. 1 OCTOBER 2010 Investment | Personal Finance 17
If fear of HMRC
gets you down,
cut a deal now
An amnesty offers a chance to bring your
untaxed funds onshore, writes Juliet Samuel
T
HE Revenue net is closing in,” warns known as the Liechtenstein Disclosure
DLA Piper partner Simon Airey. Facility (LDF) and stems from a lucrative
“They’re creating a little bit of fear, agreement signed between the UK and
which is what the HMRC like to do.” Liechtenstein governments.
Sensing a public mood that is increasing- Ashley Crossley, partner at Baker
ly hostile to those who don’t pay UK taxes, MacKenzie, which advised the principality Liechtenstein: no longer such
treasury secretary Danny Alexander recent- of Liechtenstein on the treaty, says that a safe haven for tax evaders
ly earmarked £900m for investigations into with the Organisation for Economic Picture: ROBERT HARDING
offshore tax evasion. But the stick is not Cooperation and Development (OECD) pil-
without a carrot: tax evaders are also being ing the pressure onto tax havens,
given what is supposedly one last chance to Liechtenstein pre-empted the changes by (numbers for the most recent six months EXAMPLE CASE | PROSECUTION VS AMNESTY PENALTY
bring their money into the UK with a mini- approaching the UK to make a deal. have yet to be released, but are apparently
mal penalty. In order to compensate Liechtenstein for more than double this figure). Airey thinks Source: DLA Piper HMRC Enquiry (£) LDF Amnesty (£)
The amnesty is aimed at saving the rev- agreeing to make its banks audit all their this is because HMRC has not yet sufficient-
enue service millions of pounds in money accounts, those moving onshore have to ly publicised the scheme. Tax period 1 June ‘90 - 5 April ‘09 6 April ‘99 - 5 April ‘09
spent investigating and prosecuting tax establish a “meaningful relationship” with But even if the number of people coming Date of deposit 1 June ‘90 1 June ‘90
fraud. It means that, for a limited time the principality in order to qualify for the onshore might not be huge, the tax take Original deposit from
only, tax evaders can bring their cash deal. What that means exactly has yet to be will probably be substantial. Airey says that undeclared income 10m 10m
onshore for only a 10 per cent penalty – established, but DLA Piper’s Airey imagines among those his firm advises, the average
plus interest and the 40 per cent tax owed. that it means the transfer of a six-figure amount is around £1m-£2m, and he has
Balance today 20m 20m
This is dramatically less the maximum sum (or equivalent investment) into a heard of cases where the HMRC has bagged Tax on the initial
potential penalty an evader pays if caught Liechtenstein bank account. Once £20m from one individual. This compares deposit at 40% 4m –
(see table below), which is due to rise to 200 Liechtenstein has accepted your connec- to the revenue service’s last attempt to Tax on accrued
per cent of the tax owed on funds in April tion, a special HMRC hotline is ready for crack down two years ago, which involved
2012. your mea culpa. scouring the accounts of 400,000 people
interest at 40%* 4m 2m
In addition, evaders are promised immu- But why should the treasury offer such a (obtained via legal threats to UK banks) and Estimated interest on
nity from prosecution, they get to avoid discount to people who have been evading gaining just £400m – £1,000 per person. late payment of tax** 6m 1.2m
being “named and shamed” in British taxes for years? Crossley says: “It’s a way of The LDF offer is open until 2015 – but Penalty*** e.g. rate: 40% 3.2m 10% 0.2m
newspapers and HMRC will only dig up encouraging evading taxpayers to come there is a catch. If HMRC gets on your case
information about their tax affairs during out of the cold.” And it saves the HMRC mil- before you sign up, it’s game over. So if
Total payable to HMRC 17.2m 3.4m
the last 10 years, as opposed to the standard lions in investigation costs. those offshore funds have been burning a * Total interest is £10m, but only tax due since 1999 is taken under LDF.
20-year “look-back” period. So if you evaded Despite the combination of threats and hole in your pocket, now is a good time for
tax before April 1999, it would be consid- low penalties, only 419 people registered an impromptu donation to Her Majesty’s ** Interest arises from original tax due date and varies.
ered water under the bridge. The deal is for the LDF during its first six months coffers. *** Maximum penalty is 100 per cent, rising to 200 per cent April 2011.
SUMS ADDING tage data and mapped price curves for all
the great vintages for several years after
release.
cent to Lafite over time. Given that at
release, the two chateaux tend to price
around the same level this implies a value
short term.
What about the Lafite 2009? Well 2009
Lafite is already cheaper than Latour (cur-
PRICE TARGETS
rent offer £12,500), very much against a
well established trade history. In addition,
Lafite 2009 is substantially outside the pre-
B
ACK in late June, our analysts pre- Hang on. So what does this tell us? Well for one,
sented me with their prognosis for IMPORTANT PAIRINGS Applying the same relationship for the we’re happy we did that work back in June.
2009 Bordeaux. The en primeur cam- For several years, it’s been obvious that the pair of 2000 vintages, the normal 65 per More importantly, we’ve got a nice trade
paign at the time had already become market has assigned premiums to certain cent doesn’t hold. Indeed our implied value call for today. Latour 2000 – we like it, its
the largest in history and despite high initial chateaux, the values for which are both for Latour 2000, based on the 65 per cent younger brother, the 2009, much less so.
releases, prices were still going up extremely measurable and relatively stable. prediction is actually all the way up at Lafite 2009? Whichever way we look at
fast in the secondary market. Activity, how- Taking one of the more obvious and £12,350. Plugging that into our vintage it, we like it and after all the craziness of the
ever, was still ferocious so we had to make a important pairings (that of chateaux Lafite comparison for 2009 gives us Latour 2009 2009 campaign, it’s a touch ironic that its
decision regarding our position. and Latour), we can see that top vintages of at £9,880. Still pretty uncomfortable read- most-hyped wine conversely appears one of
We had looked at a raft of previous vin- Latour trade at a discount of around 35 per ing, no doubt, but somewhat more realistic the best value.
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City Focus
18 In association with CITYA.M. 1 OCTOBER 2010
| Entrepreneur
IP PROTECTION
D
ANIEL Taylor used to have a corpo- From burger-flipper The very first thing to point out is that the
rate job. In fact, he was the to high-flyer owner of intellectual property is usually the
European managing director of a creator of the work unless the property was
BTR subsidiary for 10 years. “I Picture: created whilst in a contract of employment.
worked a lot. I missed out on the early Micha Theiner The property is then usually owned by the
years of my first two children.” Taylor says /City A.M. employer. Regardless of this convention, it is
this as he sits in a large executive chair, very important for intellectual property own-
looking relaxed and cheerful. ership to be clarified in contracts with your
Taylor still is a managing director– only employees. This is particularly important
now he runs his own company. Taylor when you are using a contractor or consult-
quit his job and set up Metro Design ant since the legal lines of ownership are
Consultants in 1997 when BTR was sold blurred.
off. Metro Design is one of the UK’s
Q.
leading design-and-build companies, refit- What can I do to protect my
ting the offices of clients such as Harley intellectual property?
Davidson, Unite and the Conservative ner together next week.” This enterprising streak has stuck with
party. The company has grown from Few would have predicted that Taylor him and he looks for it in his staff: “I hire
A.
Taylor’s spare room to a multi-million would become such a slick operator. He for attitude not for skills.” He wants to You can protect a wide range of your
pound business employing 40 staff. says the community he grew up in offered them to be shaped by the company and works using copyright. To qualify the
Taylor explains that quitting his corpo- him only two role models: a basketball the company to shape them. The sales work must be your own. To protect
rate life was not too difficult: “I promised player or a criminal. team, for example, all have a patch of yourself it must be written down or recorded
my wife I would take it easy. I’d get out of Taylor says that his formative years in London to patrol to seek out new business. in some way. To make sure you can prove this it
the rat race and start up my own busi- Jamaica shaped him. “It taught me to What does Taylor tell his children over is a good idea to send the item to yourself by
ness.” While some entrepreneurs have to appreciate what I have, telephones -- even dinner? Never be afraid to flip burgers and registered post or lodge a copy of it with your
struggle against their family to take the electricity at times -- was a luxury.” always be working on your CV. solicitor. This can help you prove the date on
plunge, Taylor’s was keen for him to quit Hard work is important to Taylor: “I which you “owned” your idea.
and build a new life around them. focused on my education because there CV | DANIEL TAYLOR If you have invented something you can
Nowadays, Taylor has dinner with his fam- was nothing else to do.” His studies took prevent anyone making, selling or importing
ily every night. him to London’s Royal College of Art. He Studied: Royal College of Art Reading: Tony Blair’s “My your idea for 20 years with a patent.
Taylor says Metro operates “like a good, studied product design, flipping burgers However, patents require a lot of research, a
old-fashioned firm, we encourage our chil- in McDonald’s to fund his course. Lives: London with his wife and Journey” hefty application fee (£2000) and two to
dren to come into the business.” His wife Taylor has a no nonsense commercial children Fact: On JP Morgan Top 100 three years to gain approval.
is a director in the firm, he credits her net- perspective. He complains about people Car you drive: BMW XS Powerlist, which lists the UK’s You should also protect your design work.
working skills for some of their best deals. from his university days: “The trouble This does not just mean decorative or artistic
He jokes: “If we were chatting at a party, with most art students is they are precious First ambition: Pilot top 100 Afro-Caribbean busi- work but also functional designs such as
my wife would be chatting to your about their designs, they don’t realise that Idol: Martin Luther King ness people machinery. If you can prove that your design
boyfriend and we would all be having din- they need to sell their products.” is yours you can stop – and get compensa-
tion from – someone else using your design.
While you are entitled to this right, you are
I
n a speech on Wednesday, It turns out that Davis is right about having.”
prominent backbench Conservative trusting the private sector: entrepreneurs Finally, a trademark can protect your
MP David Davis said that Britain are stepping into the breach. Even as the brand. It is not enough to simply have an
must do more to help small and government prepares to cut funding to internet domain name or list your company
medium size businesses through the the Business Link advisory service later at Companies House. Trademarks must be
recession, but stressed that this did not this year, enterprising companies have set registered with the Intellectual Property
mean forcing the banks to lend. Instead up banks and are offering their services to Office for a fixed fee. Further information
he argued that businesses themselves small businesses with sound business can be found on www.ipo.gov.uk
would be the source of the recovery. models.
Q.
The government has been heavily criti- Two good recent examples of this are Where can I learn more?
cised by some for not making more credit the British Enterprise Bank (BEB) and
available to businesses. The chancellor has Trafalgar Capital Advisors. Last week,
said the government “would not tolerate plans for the BEB were launched by a
A.
banks piling the pressure” onto small team of senior bankers and hedge fund The British Library IP Business Centre
firms, and that it was their “obligation” to managers. They have set themselves the offers regular free workshops, online
lift lending. task of raising £100m to lend to small courses and one-to-one advice on intel-
Angela Knight of the British Bankers’ businesses. They are in the final stages of lectual property. The
Association argues that this is not the obtaining a banking license and hope to library also has
banks’ fault: “You can’t make a business open their doors early next year. databases to
proposition that is not working in the Trafalgar Capital Advisors have been search
recession work by giving it money” and offering finance to small, listed patents,
that there are fewer viable applications companies that are struggling to borrow Easy money got us While the pundits bicker, trademarks,
being submitted. from banks and are too small to access into this mess in entrepreneurs have noticed a gap in the copyright,
But what does this mean for start-ups, bond markets. Trafalgar provides busi- the first place market and set to work. Those considering and regis-
small firms and entrepreneurs? Are credit- nesses with finance in the critical $1-5m starting a business should bear in mind tered designs
worthy businesses being starved of credit, range which is too small for most brokers Picture: ALAMY that a sound proposition and a good busi- from around
and if so, why is nobody seizing the oppor- and other funds. Its relationship-led ness plan are still the key to unlocking the world.
tunity? approach also offers an advice service. lending.
Living
20 CITYA.M. 1 OCTOBER 2010
| Property
W
ITH its network of cobbled
A.
alleys running between Dedicated dining rooms have gone out
ancient riverside warehouses, of fashion in favour of open-plan living
still bridged-over by those icon- arrangements, however with more
ic iron gantries, Shad Thames has been people entertaining at home, the desire for
one of the most atmospheric places to dedicated dining spaces has grown.
live near the City since its redevelop- If you have the luxury of a separate space
ment in the 1980s. Its attractions are you can use a rich bold colour, which will look
manifold: a thriving café culture, thanks good if well-lit. A rich red paint or a bold wall-
in part to the investment in the area paper can add to the sense of drama and
made by restaurateur and design guru colours from the hot palette stimulate the
Terence Conran; easy access to London appetite so they are great choices. If the din-
Bridge and Southbank; a short walk – or ing area is part of a larger open-plan space,
shorter by Boris Bike – to the Square then the decoration ie, a different colour on
Mile; and if you can bag a river-facing the walls can help define the area. With tiled
property, magnificent views of the this. The four-bedroom apartment sits on it’s luxurious nevertheless, and includes The flat has a or wooden flooring, consider using a rug under
Thames’s most famous landmark, Tower the eighth and ninth floors of Butler’s three underground parking spaces, 24- modern, spacious the table to create definition, but make it large
Bridge. Wharf, the largest and most famous of hour concierge and a bathroom for each interior. enough to pull out chairs.
Whoever buys this particular river-fac- the old Shad Thames warehouses. The of the bedrooms. Spacious, well-appoint- Lighting plays a major part in setting the
ing property will be able to enjoy those interiors are smartly modern and mini- ed and well-connected – a pretty useful correct mood – a feature pendant over the
views from two huge roof terraces – in malist. But with floor-to-ceiling windows combination. table can add a dramatic touch and create a
fact, riverside London properties really filled with that awesome panorama, you Contact Chesterton Humberts: 020 7357 pool of lighting onto the table. Remember to
don’t come much more spectacular than don’t need much other decoration. But 7999, www.chestertonhumberts.com. make sure the lighting for the dining room can
be dimmed; this can be supplemented with
candle light in the evening.
A.
Under-floor heating is a great choice
T
OUGH economic times have opened will usually offer you a price 10 to 20 per to provide heating in both a specific
the door for a new generation of cent below the market value. area and throughout the whole house.
property investment. Tumbling International mortgages are not too Although it is relatively unknown here, it is
prices in both the UK and abroad tricky either. Investors can still borrow up widely used in Europe and Scandinavia. I have
have actually made this investment option to 100 per cent of the property value and a water-based under-floor heating system in
more accessible than it was prior to the athenamortgages.com can offer a 15-year my own home so I can highly recommend it. It
credit crunch. Nick Clark, managing direc- fixed rate of 3.45 per cent a year with no is a common misconception that it is expensive
tor of the Property Investment Show, says: redemption penalties if you pay off the to install and run. The combined costs are
“House prices in England and Wales suf- loan after the first five years. comparable to traditional radiator heating.
fered their most widespread falls in Using a Self Invested Personal Plan is Under-floor heating means there are no
August since May 2009, but this is not nec- another financing option. Charlie King of restrictions on where you can place your furni-
essarily bad news for savvy property the Resort Group, says: “There is no doubt ture and you get a more even heat.
investors. In a low – and slow – market, that the overseas market now offers some You can either have an electric or a water-
investors know that there are opportuni- highly attractive Self Invested Personal based system. The electric is easily installed
ties to be found.” Plan compliant schemes. With widespread and suitable if you want a small installation.
This is also true of international proper- disillusionment in UK pension funds it is LEARN MORE | FOREIGN INVESTMENT The water-based system involves laying pipes
ties. Rightmove and Moneycorp have not surprising investors are looking to and enclosing them in a screed so it is more
found that property in parts of Barbados, take their retirement wealth creation into suited to larger renovations.
Spain and Florida can now offer discounts their own hands and see overseas property The Property Investor Show & OPP Live With under-floor heating, the heat will be
of 40 per cent on holiday homes. as the route to achieving significant ambient throughout the room and it will sud-
Prices in France have also fallen 20 per gains.”
Highlights include: denly make a tiled floor more attractive in the
cent. The typical property is now only The downturn has far from destroyed l Luxury real estate winter and it takes just a small trickle of heat
£143,320. Even higher-end properties have the opportunities for property investment. l Lodge and holiday home investment to take off the chill. Remember that under-
experienced this drop. In Bordeaux, for In fact, falling prices, accessible mortgages l Advice and properties offered in Egypt floor heating won’t provide instant warmth so
example, a town house can go for between and disillusionment with pension funds try not to switch it on and off. It is best if you
€500,000 and €1m. as a long-term investment could offer the l An alternative investments showcase can maintain a constant heat.
The bargains get more appealing if you possibility for a new generation of first- l Landlord forum - the UK's largest annual gathering of landlords Most floor finishes will be suitable but
are willing to go a little off the beaten time international property buyers. l An Auction Zone on Friday15 October 2010. This includes a “Live check that any wooden floor you intend to use
track. For example, there is a stone village To find out more visit is suitable for under-floor heating.
house in Aveyron with 5,000 metres of www.propertyinvestor.co.uk/london. Register Auction” of over 200 property lots. Andrew Dunning is head designer at APD
forested land going up for auction at the before 8 Oct for free entry. Show runs 14-16 Oct l The Association of International Property Professionals (AIPP) Interiors, an interior design consultancy,
Property Investment Show on 15 October 2010, at London ExCel, 3 Western Gateway, E16 Zone www.apdinteriors.com. Follow his design tips
with a guide price of £45,000. This deal is The show is aimed at everyone from property on Twitter: @andrewdunning
l SIPP Zone
made sweeter by the fact that an auction industry professionals to first-time buyers.
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| Reviews
Art Exhibitions
GAUGUIN
Tate Modern
Left: Tehaamana Has Many Parents (1893); above: Nevermore O
by Timothy Barber hhhhI Tahiti (1897), both Gauguin. Below: Ryan Reynolds is trapped in Buried.
TAKERS Hayden Christensen stars in this so so BAD LIEUTENANT – PORT OF CALL NEW ORLEANS NEIL YOUNG Le Noise is an album of sparse new DEAD RISING 2 (PS3, X360, PC) Fight zombies.
crime caper. Werner Herzog’s remake of the controversial film. songs from the rock veteran. Gee, how do they come up with these ideas?
BACK TO THE FUTURE The greatest oedipal time- THE KILLER INSIDE ME Casey Affleck stars in ERIC CLAPTON Slowhand releases his 19th solo TOM CLANCY’S HAWX (X360, PS3, WII, PC)
travelling film ever made. Michael Winterbottom’s shocking murder flick. album, called – wait for it – Clapton. Become a high-tech jet fighter pilot.
CITYA.M. 1 OCTOBER 2010 Lifestyle | Fashion 23
2
4
1. 110th anniversary mid grey coat by Austin Reed, £350 austinreed.co.uk
2. Georgetown overcheck Melange coat by Gant, £500, gantuk.com
3. Mayfair velvet collar coat by Richard James, £415, johnlewis.com
4. Charcoal grey tweed topcoat by Dunhill, £1,295, dunhill.com
5. Duffle coat by Hackett, £375, hackett.com
3 FOR HER
1 2
I
HEAR it all the time: “I don’t wear any only to neglect the most vital part – your er, mascara and lipstick is all you need (to the rest of you.
make up because I don’t know how to face. That doesn’t make sense to me. start with) to look “complete”. Sara Hollamby is a business image con-
apply it...I haven’t got time...Do I need If you can’t put makeup on because you One of Sue’s tips is only apply mascara to sultant with WorkingVoices.com email:
it?...I don’t know what to buy.” Well, never have and you don’t know where to the top lashes (twice), then wipe the wand in sarahollamby@blueyonder.co.uk.
24 Lifestyle | TV& Games CITYA.M. 1 OCTOBER 2010
SKY SPORTS 1 12am WWE: Late Night – 10pm CSI: Crime Scene 1.10am Rude Tube 2.05am 3.50am Raging Planet 4.40am
SATELLITE & CABLE
7pm Ryder Cup Golf 9.30pm Bottom Line 1am WWE: Late Investigation 11pm Criminal Tim Minchin: Live 4am Unsolved History 5.30am-6am
Super League 10pm Take It Night – Smackdown 3am IEX Minds 12am CSI: Crime Scene Samantha Who? 4.20am The How Does That Work?
Like a Fan 10.30pm Premier Magazine 3.30am World Sport Investigation 2am Charmed Hills 4.40am-6am Switched
League Preview 11pm Football 4am-6am Victory Shield 3am Diet on the Dancefloor DISCOVERY HOME &
League Weekend 12am Ryder Football 4.40am The Jerry Springer HISTORY HEALTH
Cup Golf 2.30am Super League Show 5.30am-6am Home 7pm How the Earth Was Made 7pm Extreme Pregnancy 8pm UNREPORTED WORLD
3am Football League Weekend BRITISH EUROSPORT Shopping 8pm How London Was Built Addicted to Food 9pm 18 Kids CHANNEL 4, 7.30PM
4am Take It Like a Fan 6.45pm Live Equestrian 8.15pm 9pm How Britain Was Built and Counting 10pm Little Oliver Steeds travels to visits a town
4.30am Super League 5am- Cycling 9.15pm Strongest Man BBC THREE 10pm The Executioners 11pm People, Big World 11pm Kids’ labelled the ’malaria capital of the
6am Football League Weekend 10.15pm MotoGP 12.15am- 7pm Doctor Who 8.30pm Seven Deadly Sins 12am How Hospital 12am 18 Kids and world’, revealing why the disease is
12.30am Eurogoals Flash Great TV Mistakes 9.05pm Britain Was Built 1am The Lost Counting 1am Little People, Big such a problem in the area.
SKY SPORTS 2 Little Britain 9.30pm The King Evidence 2am How the Earth World 2am Kids’ Hospital 3am
7pm Super League 7.30pm ESPN Is Dead 10pm EastEnders Was Made 3am Deep Sea Addicted to Food 4am A Baby
Live Victory Shield Football 7pm Goal! 7.30pm Live 10.30pm Don’t Tell the Bride Detectives 4am-5am Clash of Story 5am-6am Bringing
9.30pm NFL: Britain’s Game Bundesliga 9.30pm Premier 11.30pm Family Guy 12.20am the Gods Home Baby
11pm Golfing World 12am League Preview 10pm NBA Little Britain 12.50am Ideal
Super League 12.30am World Basketball 11pm French Top 14 1.20am Him and Her 1.50am DISCOVERY SKY1
Sport 1am Premiership Rugby Rugby Union 12.45am Late The King Is Dead 2.20am Are 8pm How Do They Do It? 8pm The Middle 9pm Best Of
Union 2am Currie Cup Rugby Night Poker 1.45am Total You Fitter Than a Pensioner? 8.30pm How It’s Made 9pm Must Be the Music 10pm
Union 4am Premiership Rugby Italian Football 2.15am MMA 3.20am Don’t Tell the Bride Weird or What? 10pm I Westlife Live from the O2
Union 5am-6am WWE Special Live 3am This Week in Baseball 4.20am-5.20am EastEnders: Shouldn’t Be Alive 11pm 12am Football’s Greatest
3.30am 30 for 30 4.30am- Kat and Alfie’s Return Trawler Wars 12am Bear 12.30am Road Wars 1.25am LAW & ORDER: SPECIAL ...
SKY SPORTS 3 5.30am NHRA Drag Racing Grylls: Born Survivor 1am Night Cops 2.15am Street CHANNEL FIVE, 10PM
6pm Live Currie Cup Rugby E4 Deadliest Catch 2am Rory Wars 3.05am Oops TV 3.30am Benson and Stabler struggle to identify
Union 8pm Live Premiership LIVING 7pm Hollyoaks 7.30pm Friends McGrath’s Best of British The 4400 4.20am Vroom the cause of a woman’s death in
Rugby Union 10.30pm World 7pm Four Weddings 8pm 9pm Rude Tube 10pm Tim Engineering 3am World War Vroom 5.10am-6am Sell Me Central Park, and follow a trail of clues
Sport 11pm WWE Special Airways 9pm Medium Minchin: Live 12.15am Scrubs Two in HD Colour the Answer that lead to a mute homeless man.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
QUICK CROSSWORD
SUDOKU KAKURO
23 5 15 43 14
6 16
30 4 18
16 19
Place the numbers from 1 to 9 in each empty cell so that each 28
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 17 37
41
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 22 11
above or to the left of it. 7
You can only use the digits 1-9 16 20
and you must not use the
29 36
31
same digit twice in a block. 10
The same digit may occur 18 11
13 13
more than once in a row or
column, but it must be in a
12
14 12
10
22 12
separate block.
13
23 34
7 8
ACROSS DOWN
1 Condiment, sodium 1 Occasions for
WORDWHEEL C I
chloride (4)
3 Distinctive spirit of
a culture (5)
buying at lower
prices (5)
2 After that (4)
Using only the letters in the Wordwheel, you have 6 Dried flowers used 3 Strong black
ten minutes to find as many words as possible,
E D in brewing (4) coffee (8)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters N 7 Course of existence
of an individual (4)
4 Act of mass
destruction and
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
R N 9 Deliberately (2,7)
12 Form of address to a man (3)
loss of life (9)
5 Warhorse (5)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
A O 14 Important North
Atlantic food fish (3)
8 Number
represented
QUICK CROSSWORD 3 9 9 5 2 1
15 Respected leader in national by the Roman
6 ( 5 % , $ ) 7
6 8 9 7 4 9 5 7 SUDOKU
or international affairs (9)
16 Crafty (3)
XLV (5-4)
10 Main character
4 5 6 2 1 7 8 3 9
+ ( & ( / / $ 5
2 6 3 9 2 8 17 Country, capital in a play and
$ 0 $ = 2 1 , 6
9 6 & ( / ( 6 7 $ 1 4 2 4 1 Washington DC (inits) (3) novel by J M
, 6 6 8 ( ( 6 7 ( 5 5 7 8 9 8 9 6 7 19 Wicked (9) Barrie (5,3)
1
*
8
$ 5
/ (
% 2
$ ( 0
' 5 ( 6 6
5 1
1 3 2
8 3
8
5
3
2
WORDWHEEL
21 Agitate (4)
22 Edge tool used to cut
11 Male children (4)
13 Offshore area (4)
6 + ( $ 7 + ( 5 5
( 1 $ 1 * , 1 $ 9 2 5 7 4 8 6 3 1 The nine-letter word and shape wood (4) 16 Grunt (5)
8 6 9 6 9 8 7 5
& $ / $ , 6 1 &
was OBFUSCATE
23 Link up, connect (3,2) 18 Acquiesce (5)
' / 3 / $ * 8 ( 4 6 1 3 9 4
24 Gaming cubes (4) 20 Employed (4)
Punter
25
ARSENAL
very dangerous on home soil and difficult to at home when facing promoted teams. Since
MANCHESTER CITY break down, so this will be no easy task for 2005/06, when facing promoted opposition
Newcastle. in the opening 10 games of the season, 13 of
Chris Hughton’s side have been a measure 22 (59%) games have been won by the half-
NEWCASTLE of inconsistency on their return to the top time / full-time double result. City have also
flight. A 6-0 win at home against Aston Villa recorded that double in 11 of their 22 home
and a 1-0 win at Everton prove that they have fixtures since the start of last season and I’d
SUNDAY – 1.30PM ESPN enough quality to stay in this division, but advise backing that at 6/5 on Betdaq.
IT was time for Manchester City to put home defeats to Blackpool and Stoke under- It’s difficult to know how the Magpies will
up or shut up against Chelsea last week- line what a challenge it’s going to be. approach this game which makes it difficult
end and they certainly silenced the We saw the Magpies bounce back at to recommend a correct scoreline. However,
doubters with an accomplished perform- Goodison after the Blackpool defeat, but City are beginning to gel and I wouldn’t be
ance. Roberto Mancini employed typical Everton have struggled so far this campaign surprised if they won this quite comfortably.
Italian tactics and his defence – led by and City will be a totally different kettle of Sporting Index quote City supremacy at 1.3-
the excellent Vincent Kompany – limited fish at Eastlands. The Sky Blues have won 1.5 and I’d be happy to buy at 1.5.
the champions to only a handful of eight of their last nine home games against
chances.
Carlos Tevez has started this season
promoted sides – drawing the other – and
have recorded seven half-time / full-time vic-
POINTERS...
where he left the last one and now has tories. Manchester City HT / FT double result at 6/5 on Betdaq
four league goals to his name. City are Top-six sides generally have a strong record Buy Manchester City supremacy at 1.5 with Sporting Index
winning some games soon if they are to have three of their home games and also in six of
any chance of finishing in the top four. their 10 games hosting promoted sides since
LIVERPOOL Blackpool come to town on Sunday and 2007/08. They have kept a clean sheet in eight
have surprised everyone with the guts and of those matches – drawing the other two 2-2
BLACKPOOL guile they have shown so far. However, they – and they are unbeaten when drawing at
have now lost back-to-back games for the first half-time at Anfield since the start of last sea-
time this season and are yet to win at home, son.
SUNDAY – 3.00PM so the pressure is starting to creep up a notch. I actually think Liverpool will have too
If Liverpool don’t win this game, Hodgson much for Ian Holloway’s battlers in the end,
LIVERPOOL’S season is going from bad to will have some serious problems, but I would- so I’ll be backing the draw half-time /
worse and Roy Hodgson must be wonder- n’t be backing them with stolen money at 1/3. Liverpool full-time double at 7/2 on Betdaq.
ing why he left his comfortable life at They are a side playing with a complete lack of
Craven Cottage. The Reds were pretty
inept again against Sunderland at Anfield
confidence and their only win so far this sea-
son was a 1-0 home victory against West Brom.
POINTER...
last weekend and they really need to start The Reds have been level at the break in all Draw HT / Liverpool FT at 7/2 on Betdaq
26 Punter CITYA.M. 1 OCTOBER 2010
RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THE BEST BETS OVER THE WEEKEND…
No reason to oppose
Behkabad in the Arc POINTERS...
TAQLEED e/w 3.40pm Newmarket (tomorrow)
P
ARIS was hit by so much rain solid race, but may lack the required at around 16/1.
ABSINTHE e/w 3.40pm Newmarket (tomorrow)
earlier in the week that gears at the business end. While old REGAL PARADE looks like a crack- PLANET FIVE e/w 12.35pm Longchamp (Sunday)
Sunday’s Prix de l’Arc de favourite Youmzain, runner-up on ing each-way bet at around 8/1 in the AMICO FRITZ e/w 12.35pm Longchamp (Sunday)
Triomphe will almost certainly each occasion for the last three years, Prix de la Foret over seven furlongs. REGAL PARADE e/w 2.20pm Longchamp (Sunday)
be run on bottomless ground. will be looking to become the first Dandy Nicholls’s mudlark has BEHKABAD 3.05pm Longchamp (Sunday)
Connections of the top three in the bet- seven-year-old to win since Motrico in already won in France this season CAVALRYMAN e/w 3.05pm Longchamp (Sunday)
ting have all moaned about the weath- 1932. He may well make the frame and can shake up French wonder
er over the last few days, but strangely once more but doesn’t make too mare Goldikova on ground she’ll Regal Parade looks a cracking each-way bet. Picture: PA
all three have wins under their belts on much each-way appeal at 14/1 with hate and over a trip that is too short
INSIDER
either very soft or heavy ground. Paddy Power. for her. She is a terrific lay on Betdaq
the
When trying to find the winner of If there is to be a massive shock, it at around 11/8 as she has been beaten
Europe’s richest race, I normally may well be Godolphin’s CAVALRY- on three of the four occasions she
always start (and often finish) with MAN at a massive 40/1. Last season’s has run on ground this soft.
the Prix Niel – 10 of the last 16 win- Prix Niel winner and Arc third will Back on home soil and Newmarket
A
ners have gone on to win the Arc. relish the big field and fast pace, and stages the Cambridgeshire tomorrow fter a short trip to Las Vegas the the form of her first outing. Together
BEHKABAD, this year’s winner, has looks sure to appreciate the cut in the afternoon at 3.40pm. John Gosden is clock inside my body is all at sea. looks a tough nut to crack and shouldn’t
won all three of his lifetime starts at ground. He is far better than he has bidding to land the race for the third But it was back in 2004 that a mind the going, but I have a feeling that
Longchamp and the last two of those shown so far this campaign and may time in four years and his rapidly horse running at this time of year SECRET LOVE (3% win) is the one to be
wins have been over the 12 furlong well surprise a few at a huge price. improving Nationalism currently paid for a massive trip to the gambling on.
Arc trip on testing ground. The Prix de l’Abbaye is as difficult heads the betting at 4/1. However, capital and a stop at the Breeders Cup, I’m not sure the £500,000 Tattersalls
On both of those occasions he has as ever, as the forecast ground will that’s really short in a field of over 30 that animal was Something Exciting and Millions Trophy at 2.25pm is much of a
come out on top in titanic battles prevent the majority of these speed- runners and I’d prefer to take a we need to find another horse to do the race and as such let’s stick with likely
with Planteur (who re-opposes again) balls from showing their natural chance on the stable’s supposed sec- same again. favourite FORMOSINA (5% win).
and there is every chance they will pace. The fillies Swiss Diva and Lady ond string TAQLEED at 12/1. He also The £300,000 Tattersalls Millions The Cambridgeshire looks tough, but I
fight out the finish once more on Of The Desert are the obvious ones looks to be improving at a rate of Fillies Trophy at Newmarket looks very think William Buick may have picked the
Sunday. However, Behkabad won the with their weight allowance, but they knots, will relish any juice underfoot competitive. I quite like Date with wrong John Gosden runner in
Prix Niel with a little more in hand are plenty short enough for such a and has won at the track before. I’ll Destiny but I’m not sure the expected Nationalism. However, START RIGHT
than the official winning margin of a tough race. I’d prefer to take an each- also throw in Walter Swinburn’s ground will suit. I can see I Love Me (2% e/w) looks to be the sort for this
head may suggest and he is worth an way chance on both PLANET FIVE and ABSINTHE at around 12/1 as another improving from her first run and winning race and with Kieren Fallon in the saddle
interest at 7/2 with Stan James. AMICO FRITZ as they will relish these who could be a couple of steps in another massive prize but I’m not sure of he might just be able to take the prize.
Fame And Glory looks sure to run a conditions and are currently trading front of the handicapper.
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CITYA.M. 1 OCTOBER 2010 Sport 27
Johnson earns City point Reds fail to end winless Contador blames positive drugs
run in Dutch stalemate
in the Europa League. Juventus took LIVERPOOL failed to win for a fourth
test on a contaminated meal
MANCHESTER CITY 1 the lead after just 10 minutes when
striker Vincenzo Iaquinta cut in from
successive match last night when they
scraped a 0-0 draw at Utrecht. ple confirming the results.
▲
CYCLING
the wing and unleashed a 35-yard The result in Holland keeps Roy But the amount of the banned sub-
JUVENTUS 1 shot that clipped Kolo Toure on its
way past goalkeeper Joe Hart.
Hodgson’s men top of Europa League
Group K, but does little for the team’s
TOUR de France winner Alberto
Contador last night blamed contami-
stance was so tiny – 400 times lower
than the level at which accredited lab-
City responded, Gareth Barry head- fragile confidence. nated meat for the failed drug test oratories must be able to detect – that
Captain Steven Gerrard may have
▲
FOOTBALL ing against a post, before Yaya Toure that threatens to destroy his reputa- the Spaniard insists there is only one
BY FRANK DALLERES charged forward and slid a through- been rested but it was an otherwise tion. possible explanation.
ball for Johnson to control and prod strong side that went closest to scor- It emerged yesterday that three- “This is an error,” Contador said.
ENGLAND winger Adam Johnson past the onrushing Alex Manninger. ing when Fernando Torres saw a time Tour winner Contador tested “It’s such a minimal amount that it is
scored the equaliser as Manchester It leaves City second in Group A, close-range effort saved. positive for the steroid clenbuterol only possible to come from a food
City came from behind to earn a draw behind Lech Poznan on goals scored. during this year’s race, with a ‘B’ sam- contamination.”
Results
Westwood to UEFA EUROPA LEAGUE GROUP A
Lech Poznan ...............(0) 2 SV Salzburg ....................(0) 0
Arboleda 47
Peszko 80 Att: 42,590
lead Europe
Man City ........................(1) 1 Juventus .............................(1) 1
Johnson 37 Iaquinta 10
Att: 35,212
P W D L F A GD Pts
Lech Poznan 2 1 1 0 5 3 2 4
Man City 2 1 1 0 3 1 2 4
Juventus 2 0 2 0 4 4 0 2
into combat
SV Salzburg 2 0 0 2 0 4 -4 0
GROUP K
FC Utrecht ...................(0) 0 Liverpool............................(0) 0
Att: 23,662
Steaua Bucuresti....(3) 3 Napoli ....................................(1) 3
Cribari 2 (og) Vitale 44
Tanase 11 Hamsik 73
Kapetanos 17 Cavani 90
Att: 20,000
P W D L F A GD Pts
confident he and world No6 Kaymer,
RYDER CUP making his Ryder Cup debut, are
Liverpool
Napoli
2 1 1 0 4
2 0 2 0 3
1
3 0
3 4
2
2010 ready for the responsibility. “We are FC Utrecht
S Bucuresti
2 0 2 0 0
2 0 1 1 4
0
7
0
-3
2
1
both playing well and we are looking
BY FRANK DALLERES forward to being first out and leading ICE HOCKEY
ENGLAND’S Lee Westwood and the team off,” said Westwood. “You’ve ELITE LGE: Cardiff 12 Edinburgh 4, Dundee 3 Coventry 4.
Germany’s Martin Kaymer will launch got to hit the ball sooner or later so RUGBY UNION
Europe’s challenge to reclaim the you might as well hit it first.” MAGNERS LEAGUE
Ryder Cup when they face Phil Europe captain Colin Montgomerie Cardiff Blues ..............................22 Connacht ......................................6
Mickelson and Dustin Johnson of the said Westwood had requested to be in SPEEDWAY
United States in this morning’s open- his first pairing at Celtic Manor, near ELITE LGE KO CUP—2nd leg: Coventry 48 Wolverhampton
ing fourball. Newport, Wales. “I feel that the hon- 42 (Wolverhampton win 93-91 on agg).
Northern Irishman Rory McIlroy our should be given to Lee to hit the PREMIER LGE—Play-off semi-final 2nd leg: Sheffield 61
did not get the clash with world No1 first shot tomorrow morning for Edinburgh 31 (Sheffield win 92-90 on agg).
Tiger Woods that he craved, the Europe,” said the Scot. “I think in Lee
youngster and his partner, compatriot asking for that position gave me no TODAY’S DIARY
Graeme McDowell, being pitted option but to give him that honour.”
against Stewart Cink and Matt Kuchar GOLF
in the second contest. THIS MORNING’S FOURBALLS The Ryder Cup (Celtic Manor, Newport, Wales).
Woods and Steve Stricker, US cap- ICE HOCKEY
tain Corey Pavin’s highest ranked pair- 07:45 Lee Westwood & Martin Kaymer v Elite League: Braehead Clan v Newcastle Vipers .
ing, then meet the flamboyant Ian Phil Mickelson & Dustin Johnson RUGBY UNION
Poulter and his fellow Englishman 08:00 Rory McIlroy & Graeme McDowell Aviva Premiership: Bath v Gloucester (8.05), Sale v Wasps
Ross Fisher, before Europe’s Luke (7.45).
Donald and Padraig Harrington com- v Stewart Cink & Matt Kuchar
Magners League: Benetton Treviso v Newport-Gwent D’gons
plete the morning by taking on Bubba 08:15 Ian Poulter & Ross Fisher v (6.05), Ulster v Glasgow (7.05).
Watson and Jeff Overton. Steve Stricker & Tiger Woods
Westwood has not played competi- 08:30 Luke Donald & Padraig Harrington v
tively since the start of August owing SPORTS EDITOR JON COUCH
Bubba Watson & Jeff Overton
to a calf injury, but the 37-year-old is Westwood has recently been sidelined by a calf injury. Picture: ACTION IMAGES email sport@cityam.com
Sport
28 CITYA.M. 1 OCTOBER 2010
MONTY UNVEILS
RYDER CUP PLANS
WESTWOOD IN FIRST
EURO PAIRING: P27
EXCLUSIVE:
Strauss lifts
lid on fixing
furore
England captain tells why
Pakistani allegations about
his team were ‘a massive
slap in the face’
CRICKET
BY FRANK DALLERES international. “I think we all want to move on camp divided on whether to see out one-dayer finished,” he says.
“I felt that as a group of players from the matter,” he says. “I think it’s the last two matches of the one-day “Everything we did on the pitch had
ENGLAND captain Andrew Strauss we’d done very well not to embroil cleared our names – he’s said there series. some sort of subtext to it; to a large
has laid bare the full extent of his ourselves in it in any way. We hadn’t was no evidence to it. I think the most “I think it was my hardest time as a extent it was overshadowed by things
fury at seeing the team accused of got involved with them on the pitch; important thing for us was that there captain,” he says. “After Ijaz Butt happening off the pitch.”
match-fixing by Pakistan Cricket the guys had gone about their busi- was no remaining question that we came out with his comments and we The suspicion that dogged Pakistan
Board chairman Ijaz Butt, calling the ness in a good professional manner. might have been involved in anything were in the room deciding what we stemmed from allegations made in a
claims “a massive slap in the face”. So then to be brought into it by the like that again, and I think I’m far should do, that was pretty tough Sunday newspaper during the fourth
In a candid interview with City A.M., chairman of the Pakistan Cricket more comfortable now that that’s the because there were some pretty and final Test that captain Salman
Strauss says Butt’s remarks – retract- Board was a massive slap in the face, case.” strong views from a number of differ- Butt, Mohammad Asif and
ed on Wednesday, after more than a and one that we weren’t prepared to In the storm that followed Butt’s ent players. Mohammad Amir had engaged in
week – were the ultimate insult fol- stand for. allegations, Strauss held a momen- “The most important thing for me spot-fixing earlier in that same
lowing a hugely turbulent tour over- “It is the worst thing anyone can was we came out of it as a united match. The first Strauss heard of it
shadowed by serious and detailed say to you. If they’re bringing your force, and that’s great testament to was while watching television.
allegations that members of the integrity as a cricketer into question – some of the players who had to bite “I didn’t get a tip-off, it was just on
Pakistan side had accepted bribes. especially in the context of what had their lip and get on with it.” There the News at Ten the night before and
Strauss admits the summer was his been going on this summer – there is was, in the end, “if not consensus it was the lead story,” he recalls. “I was
toughest spell as skipper and reveals nothing worse, and there is no bigger then very nearly consensus”, he adds. flabbergasted. I couldn’t quite work
how he had to talk livid players into affront to you as a person than for Strauss, who is an ambassador for out how the game was going to go
completing a series that he himself someone to say you’re dishonest. the FTI MVP rankings, a statistical ahead the next day at that stage. And
could not wait to finish and now “In hindsight, maybe he was doing analysis system created in conjunc- I have never played in a worse atmos-
regards as “devalued”. it in a bit of a tongue-in-cheek fash- tion with FTI Consulting, added: phere than that. It was horrendous.
He also tells how he was “flabber- ion, but at the time you just see the “There was definitely part of me that “There were so many players deeply
gasted” at hearing of the original quotes in the newspapers. It’s one was tempted to walk away from the disappointed and disillusioned by
spot-fixing claims against Pakistan on thing some guy in the street saying it; series. I had very strong misgivings what had gone on because you felt all
the TV news, and calls the atmos- it’s another when it’s the chairman of about it going ahead.” your efforts in previous matches had
phere the following day at Lord’s the the Pakistan Cricket Board.” England completed a 3-2 series vic- been devalued, and it automatically
worst he has ever experienced. Butt’s retraction did not include tory on 22 September, bringing a wel- gets you questioning everything
“I was outraged,” Strauss said of the “full and unreserved apology” come end to a tour that he concedes you’ve ever done on a cricket field.
Butt’s claim that some England play- that the England and Wales Cricket Ijaz Butt has retracted claims England play- was tainted. And that’s why it’s such a horrendous
ers were paid “enormous amounts of board had demanded, but Strauss is ers took bribes. Pictures: ACTION IMAGES “I think there was an immediate blight on the game.”
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and are not suitable for every investor. You can lose more than your initial deposit
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