Professional Documents
Culture Documents
SANTANDER
SUSPENDS
TOP ANALYST Under fire Minerva boss Salmaan Hasan received backing from Standard Life
REGULATION The SEC will question Santander’s Conaway, the former Kmart chief
▲
PROPERTY
office after charging senior executive highly suspicious and the likelihood Northern District of Illinois today. BY MARION DAKERS est strongly-worded letter to share-
Juan José Fernández García with mar- that it was based on an investment Aspen will set another date in two holders yesterday.
ket abuse. decision without access to private weeks’ time, by when the SEC must CITY stalwart Standard Life threw its It complained of the apparent apa-
Fernández García is accused of information is low.” report with details of its probe. weight behind the board of Minerva thy of Minerva’s non-executive direc-
making nearly $1.1m in illegal profits Fernández García, 35, has hired top Santander, the Eurozone’s largest yesterday, after the property investor tors, and claimed the firm “has
by piling into call options in lawyer Scott Lassar of Sidley Austin in bank, is one of several institutions and its activist shareholder KiFin trad- continued to mislead you” by couch-
PotashCorp before BHP made its hos- Chicago to help argue his case. Lassar that helped BHP line up a $45bn debt ed another round of inflammatory ing the planned overhaul as KiFin’s
tile offer and selling them shortly is a former US attorney and has facility for its PotashCorp approach. statements. attempt to seize control by stealth.
afterward when the stock had soared. worked for clients such as Charles BHP chief executive Marius Kloppers “It is not clear to us that the KiFin KiFin also turned on chief executive
Santander, which is advising BHP launched a fresh attack at speculators nominated board candidates would Salmaan Hasan, pointing out his
on its attempted takeover, yesterday Fernández García is yesterday saying that “fast money” act in the best interests of all share- salary represents 14 per cent of the
suspended Fernández García and accused of making nearly was piling into Potash in an attempt holders,” said Andrew Jackson, an firm’s wage bill.
insisted it had followed the “appropri- $1.1m in illegal profits by to profit from the deal. He said as investment director at Standard Life Minerva hit back, telling sharehold-
ate procedures”. “We are awaiting the piling into call options in much as 40 per cent of Potash’s share Investments, which owns a 4.89 per ers it regrets KiFin’s continued public
results of both our internal and the register had changed hands in the cent stake in Minerva. criticism, but strongly recommends
PotashCorp before BHP
supervisors’ investigations,” a last two weeks, and dismissed talk of KiFin, owned by billionaire Nathan they vote down the proposals at a
spokesperson said. made its hostile offer a counter-bid. MORE: P2 and P8 Kirsh, defended its plans to oust sever- crunch meeting on 8 September.
FTSE 100 ▼ 5,109.40 -46.55 DOW ▲ 10,060.06 +19.61 NASDAQ ▲ 2,141.54 +17.78 £/$ ▲ 1.55 +0.01 £/¤ 1.22 unc ¤/$ ▲ 1.27 +0.01 Certified Distribution
05/07/2010 till 01/08/10 is 94,889
2 News CITYA.M. 26 AUGUST 2010
Distribution helpline such as slashing housing benefits. an economist, said the work appeared Britain, in 1993 rather than stand
If you have any comments about the distribution BY EMMA SADOWSKI
of City A.M. Please ring 0207 015 1230, or email But deputy Prime Minister Nick “very robust”, and added that the situ- trial and is now expected to go court.
distribution@cityam.com Clegg, whose reputation relies on ation may be even worse than the IFS ASIL NADIR, the multimillionaire The businessman will appear before
convincing the electorate that the suggested because its model did not businessman, who fled the UK after the Old Bailey on 3 September where
Editorial Statement Budget is fair, criticised the “partial” account for spending cuts. facing a series of significant fraud he will comply with £250,000 bail
This newspaper adheres to the system of IFS report. charges, is to return after almost two conditions.
self-regulation overseen by the Press Complaints He said: “If you just look at who is Nick Clegg criticised decades to face the courtroom. In 1993 Nadir was due to stand trial
Commission. The PCC takes complaints about the receiving benefits then, in a sense, Nadir will arrive at Luton from his on 66 charges of false accounting and
editorial content of publications under the Editor’s the “partial” IFS report,
Code of Practice, a copy of which can be found at you don’t ask the most important native North Cyprus today to face theft involving £34m but fled the
www.pcc.org.uk question of all – how you can relieve which he said does not multimillion-pound fraud charges country in the middle of the night
Printed by Newsfax International,
poverty and make Britain fairer.” consider plans to get linked to the collapse of his Polly Peck first to France and later to North
Beam Reach 5 Business Park, He added: “[It is a] single snapshot people off benefits business, according to The Times. Cyprus where he has lived for the
Marsh Way, Rainham, Essex, RM13 8RS that simply doesn’t provide the full Nadir fled to North Cyprus, which past 17 years.
ABI struggles to
Breeden hurt save UK insurers
as Xchanging from US rules
PR push fails
▲
INSURANCE
BY OLIVER SHAH
UK life insurers could be hit with tens
of millions of pounds of costs if they
are forced to comply with tough regu-
lations on tax evasion being drafted
by US authorities.
▲
REGULATION
Shares in Xchanging fell 10.8 per 130 p banks from exploiting differences in industry that will ultimately be borne
BY HARRY BANKS
cent to 110p after the market was 110.00 the amount of capital they must hold by all policyholders.”
spooked by an unexpected conference 125 25 Aug ENDING the regulatory dividing line against losses in their trading and The trade body has written to the
call in which chief executive David between a bank’s trading and core banking books. US Treasury and Internal Revenue
Andrews tried to dispel “baseless 120 books would price risk better and Paul Sharma, FSA director of pruden- Service. It will attend a series of meet-
rumours” circulating about the com- help avoid public bailouts sparked by tial policy, said: “The financial crisis has ings with policymakers over the com-
pany. Andrews insisted Xchanging’s 115 the financial crisis, the markets highlighted that, for trading activities ing weeks to point out that savings
accounting practices had been watchdog said yesterday. in particular, an over-reliance on the sold by UK life insurers are taxed by
110
approved by its auditor, while finance The Financial Services Authority principles of efficient financial markets HM Revenue & Customs, and US resi-
director Richard Houghton said its 105
unveiled a 126-page discussion paper can lead to severe consequences when dents make up just 0.1 per cent of UK
profit and loss account had not been 8am 10am 12pm 2pm 4pm looking at approaches to tightening risks are misunderstood.” life policyholders.
Your singing may be awful.
But it’s okay, with the
MP3 player turned up,
no one will hear it.
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CITYA.M. 26 AUGUST 2010 News 5
Open
Evening
Thursday 2 September 2010, 4–7.30pm
Royal National Hotel, Bedford Way, London WC1H 0DG
Tullow slides
on Ugandan
project delay
ENERGY announcement raised concerns.
▲
”
positive. While today’s news is frustrating, we believe the
potential upside from the region remains intact.
”
It’s an expensive place to drill anyway, given the distance
from the pipeline to a export point, without this.
”
the dispute is resolved. This is unfortunate as it will overshad-
ow what is otherwise a strong performance.
6 News CITYA.M. 26 AUGUST 2010
I
RISH banks seem unable to shake ing crisis is essentially home grown. It for over €80m in 2005. recently declared bankruptcy. The gov- bubble.”
off the financial crisis, in fact they boils down to the bursting of one of This is also a tale of hubris. Philip ernment has been investigating. At least its central bank governor is
seem to be in worse shape now the largest property bubbles in history. Lane, head of economics at Trinity What is most startling in Honohan’s under no delusion of what caused the
then at the start of the year. The The genesis of Ireland’s problems go College Dublin, notes that the banks report is his refusal to blame the inter- crisis. It took a decade to grow, it may
main casualty is Anglo Irish Bank, back 10 years. “Until about 2000, are in trouble not because of home- national financial crisis for Ireland’s take a decade to unwind.
Dublin in row
with S&P due
to downgrade
Agency (NAMA) — which is buying up
▲
EUROPEAN ECONOMY
BY KATIE HOPE Ireland’s bad property loans — in the
debt figure. “They have invented a
A ROW broke out between S&P and new standard that doesn’t conform
Ireland yesterday after the country with Eurostat or IMF measures. It
accused the credit rating agency of results in a very exaggerated figure.
“flawed” analysis of its debt position. Where you see faulty analysis you
The war of words broke out after have to challenge it,” Corrigan said.
S&P cut its rating for Ireland by a But S&P fought back, saying in its
notch to AA- after the markets closed original document: “We understand
on Tuesday night and placed the that NAMA has been organised in
Or this? country on a “negative outlook”, indi-
cating that another rating cut could
such a way as to keep it off the Irish
government’s balance sheet under
be on the cards. Eurostat’s accounting rules. We take
The agency expects debt to peak at a different approach and have treated
137 per cent of GDP, compared with similar off-balance-sheet arrange-
the 97 per cent estimated by the Irish ments to support national financial
government. S&P also estimates that systems in other countries as direct
the cost of bailing out the nation’s obligations of the government.”
banks will surge to €50bn – more The downgrade pushed up the cost
than double the government’s own of borrowing for the Dublin govern-
predictions. ment as yields on ten-year bonds rose
John Corrigan, chief executive of from 5.5 per cent to 5.7 per cent. That
Ireland’s National Treasury took the premium that investors
Management Agency, insisted that demanded to hold the bonds rather
the analysis failed to take into than German bunds to the highest
account the value of its investment in level since the Greek financial crisis.
AIB or Bank of Ireland. There was fur- Yields on ten-year gilts also
ther disagreement over the ratings dropped to a record low of 2.79 per
agency’s inclusion of the liabilities of cent as investors fled to the safety of
the National Asset Management British government bonds.
ANALYSIS l IRELAND 10 Year Gilt Yield
6
5.511
5.8
5.6
5.4
5.2
5
4.8
4.6
4.4
Sep Nov 10 Mar May Jul
3.2 2.118
3
2.8
2.6
2.4
2.2
2
Sep Nov 10 Mar May Jul
CITYA.M. 26 AUGUST 2010 News 7
ACCOUNTANCY
BY EMMA SADOWSKI companies Kingfisher and Essar a drop from 2009 when partners
Energy as new audit clients. earned £883,000.
DELOITTE, one of the Big Four Connolly said that although the
accountancy firms, has seen UK rev- economic environment remained FAST FACTS | DELOITTE UK INCOME
enues fall for the second year in a row fragile, he anticipated a return to rev-
in the face of challenging markets and enue growth for the firm’s audit, tax ● Overall 2010 revenue fell £16m to £1.95bn.
a difficult economic environment. and consulting business by 2011. ● Corporate finance revenue up 10.6 per cent.
The global firm posted £1.95bn in Meanwhile, Deloitte added 750 ● Consultancy revenue down four per cent.
UK revenue for the year ended 31 people to its roster during the year ● Audit income fell 2.9 per cent.
May, marking a £16m fall from last after bolstering its business through a ● Tax revenue down by 2.3 per cent.
year. series of acquisitions, most notably its Deloitte senior partner John Connolly is confident on the year ahead Picture: REX
“Despite a second successive year of January merger with property con-
very challenging markets for Deloitte sultants, Drivers Jonas.
and our clients, we are emerging Deloitte also added advisory firm
from the recession with a very satis- ReportSource and Swiss group
factory performance,” said Deloitte Exsigno to its consultancy division
senior partner and chief executive and expanded its risk and security
officer John Connolly. business through the acquisition of
Connolly, said that revenue in IM Global and Simulstrat.
Deloitte’s UK corporate finance divi- Connolly added: “We will continue
sion was up 10.6 per cent during the to look for opportunities to bring in
year, while income in the firm’s UK highly skilled people who enable us
consulting business fell by four per to offer increased range and depth of
cent and the group’s tax division saw advice to a broader number of
revenue decrease by 2.3 per cent. clients.”
Also, Deloitte’s UK auditing busi- Partners earned £873,000 in profits
ness posted a 2.9 per cent decline in last year after pensions and annuities
Prices correct at the time of going to print, subject to availability and conditions, based on selected dates and prices.
Please see www.lastminute.com for full terms and conditions.
8 News CITYA.M. 26 AUGUST 2010
Chief executive
Marius Kloppers
said he had full
confidence in BHP
Billiton’s bid for
Potash at the com-
pany’s annual
results announce-
ment at the Merrill
Lynch Financial
Centre yesterday
Picture:
Micha Theiner
/CITY A.M.
BY MARION DAKERS will not increase the bid if it risks doubled to 228.6 cents.
the firm’s A+ credit rating. Six of the firm’s nine areas of
INDUSTRIAL giant BHP Billiton Kloppers and four teams from BHP operation posted growth, with
posted bumper profits in nearly all will this week begin a charm offen- some of the biggest jumps due to
areas of its business yesterday, as sive on all its shareholders to con- rising commodities prices.
chief executive Marius Kloppers vince them of the takeover’s value. Shares fell two per cent yester-
remained confident over the Kloppers said around 50 per day to close at £17.67.
firm’s $40bn (£25.9m) offer for cent of BHP shareholders in the
Canadian fertiliser group Potash. USA also hold stakes in Potash. ANALYSIS l BHP Billiton
p 1,767.00
“I have heard all the specula- “More information is always a 25 Aug
tion, but I have only seen one bid good thing,” he added. 2,000
on the table. Given the all-cash The company identified potash
nature of what have offered, it fertiliser as a candidate for expan- 1,900
doesn’t seem like there is an enor- sion as early as 2005, said Kloppers,
mous universe of potential inter- along with investing in platinum. 1,800
lopers here,” Kloppers said BHP Billiton posted a 65 per cent
yesterday. rise in operational profit to $20bn 1,700
He said the world’s biggest yesterday, on the back of a 5.2 per
miner will remain disciplined cent rise in revenue to $52.8bn. 16 Jun 6 Jul 26 Jul 13 Aug
LEGAL ing due diligence with expecta- Hammonds needs 75 per cent of its
▲
BY EMMA SADOWSKI tions that a decision to merge will partners to vote in favour of the
be brought to a partnership vote merger to go through, while Squire
UK law firm Hammonds con- before the end of the year. Saunders needs support from two-
firmed yesterday that it is in merg- Hammonds managing partner thirds of its partnership.
er talks with American rival Squire Peter Crossley said a merger with Should the merger go through,
Saunders & Dempsey, marking an Squire Saunders would help the it will mark the third significant
increasing trend of trans-Atlantic firm to meet its long-term growth trans-Atlantic tie-up in the legal
consolidation within the legal sec- strategy. sector this year.
tor. He said: “Operating as one firm In May, City based law firm
Discussions between the two around the world is a foundation Lovells officially merged with
Pay in £1,000 each calendar month to receive £5 (net)/£6.25 (gross) monthly. Reward paid net of income tax (at legal outfits are at an early stage, of the Hammonds culture which is Washington’s Hogan & Hartson,
the rate specified by law, currently 20%). Higher rate tax payers may need to pay additional tax on the reward but should they merge, the consol- shared by Squire Saunders.” while Denton Wilde Sapte
Call us, go online or visit one of our branches for more information on all fees and interest rates. Available only to idated firm is expected to generate Senior management at both law announced in the same month its
personal customers, aged 18 or over and who are resident in the UK. Halifax is a division of Bank of Scotland plc
Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. annual revenue of $625m (£405m). firms notified partners yesterday plans to merge with Sonnenschein
Currently the firms are undergo- of thier intentions to join forces. Nath & Rosenthal.
CITYA.M. 26 AUGUST 2010 News 9
BY STEVE DINNEEN ment when contacted by City A.M. behind the Bond films from 16 to
yesterday but chief executive Ivan 27 per cent, making it the firm’s
ROGUE shareholder Crystal Amber Dunleavy defended the board’s per- largest shareholder. January to
has continued its campaign against formance. June pre-tax profit for the group
Pinewood chairman Michael Grade He said: “We’re pleased with a was £1.5m, down from £1.7m last
despite the film-studio upgrading resilient performance. We’re sure year.
its expectations for the year. all of our shareholders are pleased ANALYSIS l Crystal Amber Fund
Crystal Amber has waged a cam- that our revenue is expected to rise. 108 p
paign against Grade, whose stew- “We’re enthusiastic about the 104.00
25 Aug
ardship of the firm and track business. With Michael Grade as 107
record has been called into ques- chairman we are running the busi-
tion. ness for shareholders. It is not 106
Yesterday a spokesman told City appropriate to comment on indi-
105
A.M.: “We are pleased to see there vidual personalities.
are encouraging signs for the sec- “We meet all of our shareholders 104
ond half but our underlying con- individually on a regular basis and
cerns remain. Our views as the take their views into account.” 103
largest shareholder remain valid.” Crystal Amber recently 7 Jun 25 Jun 15 Jul 4 Aug
)F¬ONLY¬ALL¬OVERDRAFTS¬WERE¬SO¬SIMPLE¬
¬ ¬ ¬ ¬ ¬ ¬ ¬
BY HARRY BANKS terbid by Indian firms as the valua- Vedanta said it agreed to spend up
tion done by Vedanta for Cairn to $9.6bn to buy a majority stake in To find out more, pop
STATE-RUN Oil and Natural Gas India is already very high,” the oil Cairn India from parent company
Corp, GAIL India and Oil India will ministry official said. Cairn Energy. into branch, call us
not make a counterbid against He declined to be named as he “I think it is very likely to go on 0845 122 1425
Vedanta Resources’ $9.6bn (£6.2bn) was not authorised to speak pub- through,” said Will Armstein, oil or visit halifax.co.uk
stake purchase in Cairn India, a licly. analyst at brokerage Finncap,
senior official in India’s oil min- Previously, an oil ministry adding that since it was a corpo-
istry said yesterday. source had said all options were rate transaction rather than the
The decision makes it likely that open for Indian state-run firms on sale of an individual field, the gov-
Cairn Energy’s planned sale of up Cairn India and domestic media ernment had few mechanisms
to a 51 per cent stake in its Indian reported the firms had held infor- available to block the deal even if it Call us, go online or visit one of our branches for more information on all fees and interest rates. EAR is the equivalent annual
division will proceed, analysts said, mal talks on a joint bid. sought to. rate. This is the actual annual interest rate for an overdraft. It does not take into account fees and charges. Overdrafts are
repayable on demand. Available only to personal customers, aged 18 or over and who are resident in the UK. Halifax is a
and boosted the Edinburgh-based ONGC, Oil India and GAIL Shares in Cairn closed up 0.9 per division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ.
company’s shares. declined to comment yesterday. cent at 449p yesterday.
The Capitalist
10 CITYA.M. 26 AUGUST 2010
EDITED BY
JEREMY HAZLEHURST
GOT A STORY? EMAIL
jeremy.hazlehurst@cityam.com
▲
SUPPORT SERVICES
June was £101.4m, against £83.4m with government officials about how
BY HARRY BANKS last year. to help achieve its cuts.
OUTSOURCING giant company Serco Support services companies with “[The coalition government] have
posted a 21 per cent increase in half- significant exposure to government called us in to say ‘where can we save
year pre-tax profit and said govern- contracts are bracing for Downing money?’ We see Serco as a big partner
ment spending cuts would boost sales Street’s October Spending Review, to government, we still see them as a
in areas where outsourcers would be which will outline the extent of the very strong customer, they still see us
hired to achieve savings. coalition’s drive to cut public spend- as a very strong supplier,” chief execu-
Serco, which runs Boris Johnson’s ing. tive Christopher Hyman said yester-
Serco boss Christopher Hyman says public spending cuts will benefit his firm Picture: GETTY new cycle hire scheme, said yesterday Serco said it and other companies day.
oi pre
d
es:
cash cuts
e
p S nd
ic
▲
▲
SUPPORT SERVICES SUPPORT SERVICES
W i
jor
“1
BY HARRY BANKS BY HARRY BANKS
AGGREKO, the world’s biggest a SIG, the insulation and roofing
provider of temporary power, again
sem group, said UK government austerity
upgraded its outlook for the year e measures were a drag on its outlook
after posting a jump in first-half prof- th 0 despite an encouraging start to the
it, helped by contracts for major on 10 second half after a fall in first-half
SE St
sporting events. pretax profit.
Aggreko said events such as the
T 3 0 Sales across the group recovered in
Vancouver Winter Olympics and the
F y May and June -- with sales per day in
all an
soccer World Cup, for which it provid- July up four per cent year-on-year --
ed generators and chillers, brought its after cold weather badly affected sales
local business unit £48m in revenues W rm 40 at the start of the year.
Ge nce
in the first half. “We think that certainly over the
“We believe that we will make fur- last three to five months, things have
ther good progress in the second half been gradually improving,” said chief
a
Fr
and the outcome for the year as a executive Chris Davies.
whole will be slightly better than our SIG reported a core pre-tax profit of
previous expectations,” chairman £18.5m for the six months to the end
Philip Rogerson said. of June, compared with £21.9m in the
The company, which is supplying same period last year.
cooling and power equipment to peo- However, the company offered a
ple cleaning up the Gulf of Mexico oil note of warning due to a faltering eco-
spill on the Louisiana coast, said it nomic recovery and the British gov-
also planned to raise the interim and ernment’s programme to slash public
final dividend by 50 per cent each to spending.
reflect recent profit growth. “SIG’s management remains cau-
For the six months to the end of tious on how its markets will develop
June, underlying trading profit rose over the next few months ... based on
23 per cent to £131.2m on revenue up the continuing macroeconomic
17 per cent at £585.6m. uncertainty and concerns about the
Pre-tax profit rose 19 per cent to potential impact of government aus-
£127.1m and the interim dividend is terity measures and credit availabili-
being increased to 6.55p. ty,” chairman Les Tench said
A poll of analysts taken before yes- yesterday.
terday’s results showed a mean esti- Shares in SIG closed up 2.5 per cent
mate of £285m for 2010 pre-tax profit. at 93p yesterday.
ANALYSIS l Aggreko
1,343.00
www.cityindex.co.uk ANALYSIS l SIG
p p
25 Aug 120 93.00
1,700
1,600
0845 077 1178 25 Aug
110
1,500 1 point spreads available during our market hours only.
1,400 Spreads lowered on our rolling and daily future spread bet markets.
1,300 100
Spread betting can result in losses that exceed your initial deposit.
1,200
BANKING AVIATION
BY HARRY BANKS big banks, whose collapse would send “We can’t understand the list of A third bargaining unit -- the tech-
shock waves through the financial those called upon to contribute,” a MEMBERS of American Airlines’ nical specialists -- approved their deal.
GERMANY’S cabinet yesterday agreed system. spokesman for the association of mechanics union rejected a contract “Our members have spoken loud
to adopt a levy on bank assets which The levy aims to shift the cost of German savings banks said. proposal and authorised union lead- and clear,” said TWU International
will raise around €1bn (£818m) a year bailouts to the private sector in a bid He added: “It’s like asking the driv- ers to call a strike, the Transport vice president Garry Drummond,
for bailouts, a government source to avoid future taxpayer-led salvage er of a small car to help pay the insur- Workers Union (TWU) said yesterday. who heads the union’s Air Transport
said, a move that small lenders efforts. ance for a large hazardous goods The union said on its website late Division. “After four years of negotia-
slammed. The bill, which is expected to come transporter.” on Tuesday that two American tions, a majority of TWU members ...
Small banks complained the new into force next year after parliamen- Large banks would benefit at the Airlines work groups represented by were not convinced that this agree-
bank restructuring bill fails to rule tary approval, would also give the expense of smaller and stable lenders, the TWU -- the mechanics and the ment represented an adequate
them out as potential contributors state powers to coordinate restructur- the spokesman said. stock clerks -- voted against a provi- return,” he added.
12 News CITYA.M. 26 AUGUST 2010
E
CONOMIES are pretty resilient ic recoveries. The world economy is lesson is cut and cut fast whatever interest rates to rise to lot of a chancellor.
things. Of course output can the most important factor for a the external circumstances. eight per cent. No won- Dan Corry, ex-senior advis-
decline extremely sharply as a medium sized, open economy like The trouble is that while the pub- der confidence indicators er on the economy to former
result of negative shocks – and the UK. So if the US falters, if the lic have never bought into the con- are not looking healthy. Prime Minister Gordon
the British economy shrunk 6.4 per German obsession with fiscal consol- cepts of Keynesian economics (every George Osborne and his Brown
cent in 2008-9 as a result of the idation rather than growth is too mythical housewife knows you pull team will be sweating over
world financial crisis and subse- strong, if the Greek crisis does spill- in your belt when in debt, you don’t each and every economic
quent recession. But at some point over to Portugal and Spain, if China spend more), they know bad times statistic, looking for
they do usually bounce back to stalls, then however low our coming when they stare them in the signs of life and
decent growth rates, particularly if exchange rate, a booming export led face and that is what they seem to momentum.
you are lucky enough to get decent recovery to save the day will not feel the first Osborne Budget offered T h e y
employment rates. That is the good materialise. them. may pull
news. And then there is that elusive driver
The trouble is that the length of of domestic demand that Keynes CUTTING FOR RECOVERY?
time it takes and the pace of that called animal spirits, and that busi- It was a categorical rejection of
recovery is very uncertain, and is not ness and the city usually call “confi- the idea that the state has
under the control of anyone. And dence”. Osborne staked the house on any role in supporting
that is news to make you nervous some old fashioned, pre Keynesian demand through fiscal pol-
not only if you are tending to a busi- economics in his first Budget. icy. Instead, to bring down
ness on the edge or searching for a He bet that getting down spend- the deficit swiftly, thou-
job, but if you are the chancellor ing fast to reduce the deficit would sands of jobs are to go –
tasked with making sure the econo- allow interest rates to stay low, directly in the public
my comes right in time to win you would get the thumbs up from inter- sector and indi-
the next election. national markets and would con- rectly from
Of course this last is never explicit- vince business decision makers that the firms
ly stated, but that is what all George now was the time to invest, to which sup-
Osborne’s colleagues are expecting expand, to hire. In other words he ply them
of him. Indeed he needs to pull it off bet that this strategy would boost and from the
CITYA.M. 26 AUGUST 2010 Economic News 13
Durable orders
fuel doubt over US new home
recovery’s legs
sales slump
▲
US ECONOMY
ONLY a surge in orders for commer- US ECONOMY things are improving whatsoever.
▲
cial aircraft kept durable goods orders BY JESSICA MEAD The odds of the dreaded double-dip
in positive territory last month, cast- are increasing.”
ing yet further doubt over the FEARS of a double-dip in the US hous- The downbeat data initially
resilience of the US recovery. ing market intensified yesterday weighed on US equities but buying
Durable goods orders only man- after data showed that new home activity capped losses.
aged to grow by 0.3 per cent on the sales fell at the sharpest monthly Analysts expect the pace of new
previous month but the more closely- pace in July since records began. home sales to remain depressed for
watched core capital goods orders fig- Sales of new homes plummeted some months to come and predicted
ure slumped eight per cent on June. 12.4 per cent to an annual rate of possible years of excess supply.
Consequently, the three-month 276,000 – the lowest since the data ING’s Teunis Brosens said: “Sales
growth rate dropped to just 19.8 per was first recorded in 1963 and well may recover slightly in the coming
cent from 30.9 per cent. below the market’s expectations of a months, as the demand fallout fol-
Paul Ashworth, senior US econo- rate of 330,000 homes. The lowing the expiry of the homebuyer
mist at Capital Economics, said: Commerce Department also revised tax credit fades. But we expect them
“July’s durable goods report adds to down June’s annual sales pace to to remain low.”
the recent evidence from numerous 315,000 units. “Homebuilders continue to face
activity surveys that the manufactur- New home sales have struggled to tough competition from distressed
ing recovery has lost nearly all of the pick up over the past few months sales. These typically sell at a dis-
considerable momentum it had.” and the annual pace is only a quarter count and currently make up about
He added: “The rebound in manu- of what was seen in the boom years 30 per cent of total sales. Moreover,
facturing was one of the bright spots of the early 2000s. while the building spree peaked in
in an otherwise disappointing recov- New York-based Steven Ricchiuto at 2006, the housing market is still bur-
ery. Take it away, throw in a renewed Mizuho Securities said: “It is a bad dened with substantial excess supply.
collapse in housing, and you don’t report through and through, there is It may take several years to clear this
have much left.” The pace of new home sales dropped sharply in July. Picture: GETTY nothing in the details to tell you that excess,” he warned.
German businesses
remain confident
EUROPEAN ECONOMY German economic thinktank, said:
▲
CURRENCIES
pledge to intervene in the currency
THE Swiss franc surged to an all-time markets at its June meeting, saying
high against the euro yesterday as that deflation risks had largely disap-
fears over the potential for a double- peared and the economy was on track
dip recession continued to drive for a healthy recovery.
investors into perceived safe-haven The Dow Jones was off as much as
assets. 103 points at one stage, before rally-
The franc traded at €1.300 yester- ing to close up 19.6 points – or 0.2 per
day, within sight of the record level of cent – at 10,060, while the broader
€1.2968 hit earlier in the session. And S&P 500 index gained 0.3 per cent,
yields on 10-year Swiss bonds fell to ending four straight days of losses.
1.02 per cent as weaker-than-expected The FTSE 100 index closed 0.9 per
US new-home sales and durable cent down at 5,109.40, Germany’s
goods orders intensified the flight DAX fell 0.6 per cent and Tokyo’
out of equity markets. Nikkei dropped 1.7 per cent to hit a
The franc’s rise accelerated after 16-month low of 8845.39.
14 Focus on Admiral CITYA.M. 26 AUGUST 2010
as profits rise
highest-serving officers in the
Navy, you’d expect Admiral to be
sailing ahead of its competitors. At
first glance, yesterday’s numbers
don’t disappoint. It was UK motor-
ing, where insurance rates grew 14
per cent, which put in the
strongest performance. Customer
s
INSURANCE leverage its brand to enter the home numbers were up 23 per cent
BY OLIVER SHAH insurance space, Chidwick said. while the combined ratio – a key
His comments came as rising sales indicator of performance for insur-
ADMIRAL GROUP could bid for and prices boosted Admiral’s pre-tax ers – held stable at 89 per cent
Spanish insurer Linea Directa and is profit 20.5 per cent to £126.9m. The (numbers under 100 indicate prof-
eyeing an expansion into the house- group, run by Henry Engelhardt, itably). However, the main driver
hold market after growing its interim increased its half-year dividend 18 per was growth in profit commission
profit by more than a fifth to £127m. cent to 32.6p and announced plans to (the amount Admiral earns from
Admiral, which specialises in car hand out 1,500 free shares to each Admiral boss Henry Engelhardt is looking for growth Picture: Micha Theiner/ CITY A.M sharing in the profits of the firms
insurance, said an offer for Linea employee worth £6m in total. it underwrites for); this was up
Directa was a possibility at the right One dark spot was Confused.com, ADMIRAL'S HALF-YEAR RESULTS: from £23m to £37m, but doesn’t
valuation. The Spanish business Admiral’s comparison website, reflect Admiral’s performance,
could be worth around €850m which saw profits drop 20 per cent just improving conditions for
(£700m) based on the price at which as it was outgunned by everyone in the industry.
its parent, Bankinter, bought out Comparethemarket.com. Pre-tax profit s 20.5% to £126.9m Elsewhere things were less rosy.
joint venture partner Royal Bank of Confused.com profit fell from
Scotland’s 50 per cent share last year. ANALYSIS l Admiral Group £11m to £9m after rival Compare
Admiral finance director Kevin 550 p 1512.00 Interim dividend s 18% to 32.6p per share the Market’s meerkat campaign
Chidwick told City A.M.: “It’s a ‘maybe’ 500
25 Aug won the marketing battle. Already
if it was at a very good price, but trading on a hefty 20.3 times earn-
we’ve got fantastic growth on the 450 Turnover s 33% to £720.5m ings, these shares have had their
organic side too.” 400 day. Investors should reduce.
Separately, Chidwick said Admiral
would launch a household insurance
350
300
Customers s 23% to 2.37m
pilot project toward the second half
of next year. The FTSE 100 company
has a large database of motoring
250
Shares in Admiral s 2.7% to £15.12
BOTTOMLINE
200 Analysis by David Crow
cover customers and would hope to 7 Jun 25 Jun 15 Jul 4 Jul
CITYA.M. 26 AUGUST 2010 News 15
▲
Johnston Press breathed a sign of Chief executive John Fry said: p lents than Dell but with $15bn and
21 16.00 BY STEVE DINNEEN
relief yesterday as it limped to its first “These industry leading trends along 25 Aug $11bn, respectively, both could easily
20
profit since 2006. with our continued focus on costs, DELL is planning to submit a more afford to buy 3Par.
The Scotsman owner arrested its efficiencies and debt reduction, give 19 competitive bid for data storage firm Dell is following HP’s expansion
declining revenue amid a remarkable the board confidence, in the absence 18 3PAR, challenging Hewlett-Packard’s into services and is increasing its
turnaround in the advertising market. of a further deterioration in the UK 17 offer of $24 per share, a source famil- foray into smartphones.
Total advertising income fell by 6.3 economy, that the outcome for the 16 iar with the talks said yesterday. Analysts are expecting a fierce bid-
per cent after plummeting 18 per group in 2010 will be in line with cur- 15 3PAR said on Tuesday it would start ding war between the two firms for
cent during the darkest days of the rent market expectations.” 14 merger talks with HP after HP’s 3PAR.
advertising drought in 2009. The results follow a remarkable 13
$1.6bn offer topped Dell’s previous, Dell and HP both declined to com-
But stringent cost cutting in the recovery for advertising giant WPP, 7 Jun 25 Jun 15 Jul 4 Aug $1.15bn bid. ment yesterday.
soar by 54pc
MEDIA
▲
BY STEVE DINNEEN
FORMER Five owner RTL expects the
loss-making broadcaster to swing
back into profit this year, despite
clocking a first half loss of €49m
(£40m) on the channel.
GAMING “Most of our expansion is coming The venture was sold to Express
▲
BY STEVE DINNEEN internationally now. Our customers in Richard Desmond (above) hopes owner Richard Desmond last month
Australia have shot up 84 per cent and Five will post a second half prof- for £103.5m. Its operating loss was
PADDY Power reported soaring profits we are now launching in France. it, while Dawn Airey (below) just €6m but RTL wrote down a fur-
yesterday, despite admitting trading “Three quarters of our online rev- will take up a post with the ther €36m before offloading it.
in its Irish home-market is tough. enue comes from the UK, which is channel’s former owner RTL. Desmond plans to streamline the
The firm saw pre-tax profits grow our biggest market.” operation, with 80 of its 300 staff
54 per cent to €52.5m (£43m), buoyed However, he added that changing expected to be out of a job.
by strong performances in its interna- the firm’s domicile to London to Among the most high profile leavers
tional divisions. reflect its increasingly international is Five chair and chief executive Dawn
The bookmaker says it expects full- business model is “not on our imme- Airey, who actioned a clause in her con-
year earnings to rise by up to 30 per diate agenda”. tract guaranteeing her a job with RTL if
cent after an “exceptional” World Cup The firm also acknowledged new Five was sold. RTL would not comment
helped it to smash profit expectations. taxes and fees in the UK and Ireland yesterday on what role Dawn would
Chief executive Patrick Kennedy could affect earnings going forward. take with the firm.
told City A.M. the firm has performed The news comes as RTL posted rev-
well across the board but admitted ANALYSIS l Paddy Power enue growth of 7.5 per cent in its first
Irish customers have been “spooked” € 26.50 half, with advertising income finally
by the country’s precarious financial 29 25 Aug beginning to pick up.
situation. 28 This allowed the media giant to
He said: “We are continuing to swing to a profit of €257m, a remark-
grow in Ireland and our market share 27 able turnaround after posting losses
has risen by seven per cent to 32 per 26 of €105m the year before.
cent since the recession. We are trad- Chief executive Gerhard Zeiler said:
25
ing there harder than ever. But cus- “The stronger than expected rebound
tomer confidence is not great. The 24 seen in the Western European TV
government finances have spooked advertising markets is the result of
customers and trading is tough. 16 Jun 6 Jul 26 Jul 13 Aug the overall economic recovery.”
AUTOMOTIVE
China, posted a 804.85m yuan higher end car models this year and
BY HARRY BANKS (£76.61m) net profit for the first six focus on building its export business
CHINA’S Geely, whose parent bought months of this year against 595.91m to making it less vulnerable to China’s the insurance net profit came from its
▲
INSURANCE
Ford’s Volvo unit this month, warned yuan a year earlier. volatile domestic market. life business.
of tougher competition and slower The record profit topped an average Despite the dimming outlook for BELGIAN insurer Ageas reported a The overall net profit, a difficult fig-
sales after its record first-half earnings forecast of 756.4m yuan from ana- China’s car market, there is a poten- surge of cash coming into its business ure to forecast because of legacy issues
beat forecasts yesterday. lysts. tial bright spot for the carmaker -- its in the first half, particularly in Asia, related to its previous incarnation as
China overtook the United States The company sold 195,734 cars in parent’s new Volvo unit. and strong earnings from its life Fortis, was €455m, higher than the
last year to become the world’s biggest the first six months, up 42 per cent If the Geely’s parent, Zhejiang Geely, insurance business. €261m average forecast.
car market, as Beijing rolled out from a year earlier. But its July sales can turn Volvo around, that could The company, formerly known as Ageas, which operates as AG
incentives to boost spending during growth turned negative, falling 12 per allow Geely to benefit from technolo- Fortis, said yesterday that inflows Insurance in Belgium and sells insur-
the global downturn. cent to 21,684 year-on-year. gy transfers and eventually take over grew by 22 per cent during the first ance for the supermarket giant Tesco,
But that growth is expected to Competition is rising in China as the premium brand, said Man. six months of 2010 and by 59 per cent reiterated its forecast that the amount
wane in the second half as the govern- some car makers cut prices to boost Volvo has been profitable since the in Asia. of cash coming into the business in
ment presses the brakes to keep the sales, which have been slowing down start of the year, said Li Shufu, a big Insurance net profit dropped to 2010 should be higher than in 2009. It
economy from overheating. from last year’s breakneck pace. change for the luxury brand, which €180.5m (£145m) from €260.4m a year halved its exposure to southern
Geely, which has been trying to Founded by chairman Li Shufu, posted a $653m (£423m) pre-tax loss ago, when it booked a €94m one-off European sovereign bonds in the first
move up the value chain by launching dubbed the Henry Ford of China, last year. tax benefit in Belgium. Almost all of half of the year to €8.9bn.
347.20
ANALYSIS l WPP Group
p
720 634.00
25 Aug
help Heineken
430 410
25 Aug 700
420 400
390 680
410
380
400 660
370
390
360 640
380
boost profits
350
620
370 340
16 Jun 6 Jul 26 Jul 13 Aug 16 Jun 6 Jul 26 Jul 13 Aug 16 Jun 6 Jul 26 Jul 13 Aug
LEISURE tom end of consensus estimates, according its asset writeback remains conservative at exposure to the recovery in media budgets,
emerging markets.
BY HARRY BANKS Just over half of Heineken’s rev- to Jefferies. The broker added that Amlin around 23p per share. The broker was after upgrading its full year EPS forecasts
HEINEKEN, the world’s third-largest enue last year came from western should see the benefits of pruning its port- impressed by Persimmon’s improving bal- by 4.5 per cent. The broker said the gap
brewer, reported a higher than Europe. Heineken said the integra- folio in 2011. Jeffries kept its EPS forecasts ance sheet, with gearing of just seven per between WPP and rival Omnicom is clos-
expected rise in first-half net profit tion of FEMSA Cerveza was on track,
yesterday after cost savings helped with synergies due in the second half. for 2011 unchanged at 6.3 times after high cent. Citi said the firm’s land bank would ing, thanks to organic revenue growth of
offset lower beer sales in Europe and For the full-year, Heineken forecast acquisition costs, but kept its “buy” rating. provide continued support. “Buy” at 650p. seven per cent in July. “Buy” at 860p.
the United States. the percentage growth of net profit
The Dutch-based brewer, whose to be at least in low double digits
chief brands are Heineken and with further cost savings and price To appear in Best of the Brokers email your research to notes@cityam.com
Amstel, Europe’s number one and hikes continuing to have some
REGULATION
The company said it remained cau-
37 € 35.20 The FSA said that between “SocGen failed to accurately report
tious about beer consumption in 20 Aug THE Financial Services Authority November 2007 and February 2010, a very high proportion of its transac-
36.50
Europe and the United States due to (FSA) regulator fined French bank SocGen had either failed to report, or tions for a significant length of time,”
continued weak consumer spending 36 Societe Generale £1.575m yesterday inaccurately reported, 18.8m of its Margaret Cole, FSA director of
and planned austerity measures, but 35.50 for failing to provide accurate transac- 23.5m reportable transactions. enforcement and financial crime,
expected volumes to grow in Latin 35 tion reports. It added that the SocGen breaches said.
America, Africa and Asia. 34.50 The fine handed out to SocGen, occurred despite the FSA sending out “This failure is a serious breach of
Heineken’s first-half results includ- 34
which in 2008 lost around €5bn repeated reminders to companies of our rules as it can have a damaging
ed two months from the beer busi- (£4.1bn) in a trading scandal, follows their obligations to provide accurate impact on our ability to detect and
33.50
ness of Mexico’s Femsa, bought to previous penalties handed out to data, and of the importance of com- investigate suspected market abuse,”
33
boost exposure to faster-growing 7 Jun 28 Jun 12 Jul 2 Aug Barclays, Credit Suisse and plying with FSA rules concerning the she added.
CITY MOVES | WHO’S SWITCHING JOBS Edited by Tom Day in association with
To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com
CITYA.M. 26 AUGUST 2010 News 17
Derwent posts
Crucial time higher profit on
wasted after bargain hunters
rig explosion
PROPERTY
▲
OFFICE landlord Derwent London
reported sustained growth in the
value of its portfolio to £2.2bn yester-
day, easing fears of a new real estate
slump as Britain’s economic
prospects wilt.
Thierens testified alongside Billy Chief executive John Burns said
BP IN CRISIS Stringfellow a subsea superintendent Derwent’s signature strategy of pro-
BY EMMA SADOWSKI for Transocean and Halliburton’s viding affordable offices in the capi-
Vincent Tabler. tal’s nascent business hubs would
DEEPWATER Horizon-owner On Tuesday, Jesse Gagliano, a hold up as firms budgeted for slower
Transocean changed a locking mecha- Halliburton technical adviser told the expansion and higher rates of infla-
nism on the blow out preventer, panel that BP had ignored his con- tion.
resulting in a severe delay in respond- cerns that a cement seal inside its “We have a sort of formulaic busi-
ing after the Gulf Oil rig exploded, Macondo well might fail. ness model, operating off the middle
according to a BP vice president. He also alleged that the oil major market for rents between £30-50 a
Harry Thierens, executive vice pres- had argued with him when he sug- square foot and I’m just very positive
ident for drilling and completions at gested that more devices used to plug Halliburton’s Jesse Gagliano accused BP of ignoring his concerns over the well that the momentum has continued.
the oil major, told a panel of federal the well were needed. Even over this summer period, we
investigators that crucial hours after However, BP’s lawyers disputed his ANALYSIS l BP were making lettings,” Burns said.
the 20 April explosion were wasted allegations after producing email evi- “We have been able to deal with all
p
after it became apparent that dence that Gagliano had said that he 550 376.80 the crises without having a rights
Transocean had made the changes. was happy with the procedure. 25 Aug issue and we’ve still bought property,
The Texas-based panel heard from BP hired Halliburton to perform 500 we’ve got a lot of uncharged property
Thierens, who had a personal role in and design the cement jobs on the that’s not mortgaged and a lot of
trying to stop the leak, yesterday that Macondo well. 450 unused facilities,” he added.
it took between 12 and 24 hours to The oil giant is currently attempt- Derwent marked a long-awaited
locate drawings of the changes. ing to retrieve the damaged blow out 400 return to investment with the £146m
His testimony is part of a joint inves- preventer from the floor of the Gulf. purchase of the West End’s Central
350
tigation by the US Coast Guard and Meanwhile, BP confirmed yester- Cross building in July.
the Interior Department into the caus- day that it has withdrawn its applica- The firm posted a 17 per cent rise in
300
es of the Deepwater Horizon explo- tion for an exploration licence in first-half net asset value to 1,365p a
sion, which killed 11 people and led to Greenland, currently the centre of a 250 share, against 18 per cent six months
one of the worst oil spills in history. new oil rush. 16 Jun 6 Jul 26 Jul 13 Aug earlier.
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 clarification at the registered office address The Royal Bank of Scotland plc, Registered in Scotland No 90312. Registered Office: 36
St Andrew Square, Edinburgh EH2 2YB. RBS is authorised and regulated in the UK by the Financial Ser vices Authority
y. RBS is an authorised
authorise agent of The Royal Bank of Scotland plc N.V in cer tain jurisdictions.
Investment
18 CITYA.M. 26 AUGUST 2010
| Listed Products
Be prepared for
the turbulent
autumn ahead
Listed products can is now is struggling to stay above the psy-
chologically important 5,000 level.
offer a low-risk way Richard Perry, chief market strategist at
Central Markets, reckons that the FTSE
could see further falls towards the mid-
to trade the FTSE, 4000s once the market comes back to
work: “A lot of people are talking about the
writes Jessica Mead market having a poor September and
October; this seems to be supported by the
charts and the fundamentals that are com-
I
NVESTORS fed up with volatile, range- ing out.”
bound markets that apparently have
little sense of clear direction will be PRECARIOUS POSITION
cheering the end of the summer and He explains: “From a chart perspective the
the dust being swept off the City trading overriding feeling is that there continues
floors. But those hoping for an immediate to be a bearish look about the FTSE 100
return to normality and a bullish rebound Index. Although the original head and
are likely to be sorely disappointed. shoulders top pattern may have been
The FTSE 100 has been drifting down- recently aborted [which saw the index
wards as US economic data disappoints drop briefly below 5,000 in July] the long-
and Hindenburg Omens – a little-known term position continues to look rather pre-
market timing gauge which points to an carious for the market bulls.”
imminent market crash – have been sight- Equally worrying, the 200-day moving
ed and are hitting the investment pages average, which shows the long-term trend
and blogs on a disturbingly regular basis. of the market, has stopped rising for the
And things aren’t expected to get any first time in a year and the sequence of
better any time soon. While October might higher lows, which is a bullish signal has
be more renowned for market crashes, his- been broken. Perry warns: “The index
torical data reveals that September is the would probably now need to make a deci- Don’t get swept away take positions that leave you exposed to have turned a profit and if it isn’t, then
worst month for market returns in the sive move through 5,832 to defer what con- unlimited losses and use leverage, even if you only lose your initial investment.
United States – the average September loss tinues to look like an extended topping out Picture: GETTY you can set stop losses to ensure you don’t
for the Dow between 1980 and 2010 was phase.” end up owing thousands of pounds. SANTA RALLY
1.25 per cent. In contrast, the much- The buyers of the FTSE 100 just aren’t By picking a covered warrant, you can However, you might be expecting an
maligned October enjoys average gains of there at the moment. Simon Denham, bet on the FTSE 100 hitting at least a cer- immediate decline followed by an upturn
about 1.2 per cent. managing director of Capital Spreads says: tain level on a pre-specified date. For exam- in the fourth quarter – markets tend to
But with a choppy September to con- “Normally on a move down of 250 points ple, if you think that the index is going to perform well at this time year, in what is
tend with first, what will happen to the we would be finding a large number of suffer over the next few months, then you known as a Santa rally.
FTSE 100 and how should traders be look- buyers looking for a bounce but this time could buy put covered warrants with a To bet on a rally, you could buy a call cov-
ing to play the markets? they are almost matching themselves out.” strike price of 5,000 with an expiry date of ered warrant with a strike price of 5,400
After reaching the giddy heights of For retail traders looking to navigate a 17 December. Providing the index is trad- with an expiry date of 17 December.
5,833 back in April, the UK blue-chip index stormy September, it can be daunting to ing at or below 5,000 on this date, you will For those investors who are more risk
T
OO much choice can be a problem owner. Uwe Becker of Barclays says that that the issuer, such as Barclays, is able to ment and expiry date is six years. It will Synthetic Zero products that track a
for investors these days. Online con- the chief attraction of an ETN, as opposed pay you at any time you choose to redeem pay you 9.25 per cent for every year wide variety of indices and stocks,
sumer champion Which? singled out to an ETF, is that there is no tracking error. your ETN. The benefit is that they give you that the FTSE 100 is 50 per cent higher including mining giants Rio Tinto and
structured products as being some of An ETF is created by a provider to mimic access to a wide range of markets such as than your entry level. What is good BHP Billiton, with a variety of strike
the most confusing instruments on offer the actual index and sometimes there are commodity indices. about this product that the 50 per cent prices.
and was particularly unhappy about their
lack of transparency, particularly when it
comes to counterparty risk. The UK
Structured Products Association hit back at IN FOCUS | UK DEFENSIVE AUTOCALL IN FOCUS | EXCHANGE-TRADED FUNDS (ETFS)
the research saying that listed products are
regulated by the FSA and praising the stan- This product is available from RBS and receive 6.75 per cent plus your original These tend to track an underlying index, underlying index, but be aware that
dard of educational material produced by isn’t nearly as scary as it sounds. But it is investment. If on the final valuation date such as the FTSE or the S&P 500. The sometimes the issuer’s portfolio can
the providers. This argument doesn’t exact- a long-term investment. The life of the the index is at or above 60 per cent of beauty of an ETF is two-fold: first you slightly slip out of line with the underly-
ly help investors who are trying to find product is five years and each year has a the level when the product was issued, pay low fees to get exposure to an entire ing index, which is called a tracking
returns in an environment of low interest trigger point, which, if reached, adds a then you will receive 33.75 per cent of index compared to buying each individ- error. You receive the performance of
rates. So to help our readers, we have 6.75 per cent “coupon” to your final pay- the total issue price, plus 100 per cent of ual stock through a broker; second, you the issuer’s portfolio, so the tracking
looked in depth at some of these products out. For example, in the first year if the your original investment. But if the FTSE can buy short ETFs, so if you think the error is important. You need the issuer
to de-bunk some myths and figure out FTSE 100 is equal to or above 80 per is trading at 59 per cent of your entry FTSE will fall in the coming weeks, then to remain solvent but your investment is
what the lingo actually means. These prod- cent of the starting level, then it auto- level, then you would only receive 59 per you could use an ETF to take a short backed by an actual portfolio of assets
ucts are complex, but not impossible for a matically redeems early and you would cent of your original investment. position. The issuer tries to mimic the unlike an ETN.
retail investor to understand.
CITYA.M. 26 AUGUST 2010 Investment | Listed Products 19
5600
5400
5200
5000
4800
THE
TIPSTER
D
ESPITE the yawning deficit in
Britain’s public finances, 10-year gilts
have been finding favour thanks to
the ongoing theme of risk aversion.
The flight from equities has seen yields
dropping dramatically in recent days.
Although attention is now focusing on a
break-out, this could struggle to find sup-
port unless bargain hunters move back into
equities. The current IG Index December
2010 spread on the long gilt is 12502-
12506.
There have been a number of comments
over recent weeks about the renewed pos-
sibility of a slide back into recession,
encouraging further risk aversion among
investors. The US dollar-yen currency pair
hit a new 15-year low of ¥83.57 on
averse, there are a range of autocalls and Monday – will it continue its slide against
accelerated tracker products (see story the yen should US GDP data disappoint on
on left hand page). For example, RBS’s Friday? City Index was offering a spread on
UK Accelerated Tracker 3 product has a dollar-yen of ¥84.57-¥84.60.
potential payout at expiry of two times Miners such as Kazakhmys, which pub-
any positive gain in the FTSE 100 and lishes its interim results today, have taken a
investors’ capital is protected providing bashing recently. But analysts still appear
the index has never fallen to or below 65 to be feeling positive about the London-list-
per cent of its initial level. ed stock and an upbeat statement in July
Post-crisis, we’re still a long way from means the firm could still have a long way
market normality, whatever that might to climb. Cantor Index offers a spread of
turn out to be. You can still keep your toe 1,085.16p-1,089.84p.
in the water, but don’t get swept away. Promethean World, which supplies
interactive white boards to schools, has
seen its share price fall by 40 per cent
from its high of 211.50p in June to lows of
LISTED PRODUCT 114.60p yesterday. The government’s
NEWS potential cuts to education spending budg-
ets have hit the firm hard and not even
first-half figures, which saw revenues rise
ETP TURNOVER 10PC OF EQUITY ACTIVITY 35 per cent, have been able to stop the
The latest figures from BlackRock’s slide. Will there be even further to fall?
exchange-traded fund (ETF) division show ShortsandLongs.com has a rolling spread
that exchange-traded product turnover of 122.7p-124.7p.
was 10.45 per cent of equivalent equity Advertising giant WPP reported results
market activity but was down 8.8 per cent earlier this week and the recovery across
on the previous week at €10bn. Country- most markets delighted analysts. Chief
related products saw the greatest turnover executive Sir Martin Sorrell was cautious
at €2.1bn, an increase of 1.8 per cent on about the outlook, prompting some profit-
the previous week. The fixed income area taking. This simply represents a better level
had the highest increase in turnover, up 10 at which to buy. Spreadex offers 631.80p-
per cent on the previous week, while 633.70p Jessica Mead
regional turnover fell by 26 per cent.
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 . . . . . . . . . . . . . . . . . . . . . . . .254.10 –5.60 314.80 246.90 Cobham . . . . . . . . . . . . . . . . . . .207.80 –0.90 278.60 199.90 Investec . . . . . . . . . . . . . . . . . . .461.20 –5.40 565.00 411.50 SABMiller . . . . . . . . . . . . . . . . .1847.00 –23.00 2090.00 1394.00
3i Infrastructure . . . . . . . . . . . . . 113.10 –0.10 115.00 89.35 COLT Group . . . . . . . . . . . . . . . . 111.00 +2.00 144.20 107.70 ITV . . . . . . . . . . . . . . . . . . . . . . . .55.35 –1.70 71.75 41.04 Sage . . . . . . . . . . . . . . . . . . . . . .239.30 –4.20 260.50 208.20
A.B. Foods . . . . . . . . . . . . . . . .1047.00 –4.00 1096.00 785.50 Compass . . . . . . . . . . . . . . . . . .516.50 +3.00 574.50 322.40 Jardine Lloyd Thompson. . . . . . .577.00 –4.50 604.50 420.70 Sainsbury(J) . . . . . . . . . . . . . . . .360.50 –2.60 373.00 307.60
Aberdeen Asset Man . . . . . . . . . .133.00 +0.10 155.60 111.00 Cookson . . . . . . . . . . . . . . . . . . .412.30 –13.50 616.00 347.60 Johnson Matthey . . . . . . . . . . .1550.00 –29.00 1814.00 1302.00 Schroders . . . . . . . . . . . . . . . . .1330.00* –38.00 1450.00 1029.00
Admiral. . . . . . . . . . . . . . . . . . .1512.00 +39.00 1556.00 1003.00 Croda Intl . . . . . . . . . . . . . . . . .1230.00 –26.00 1361.00 607.00 JPMorgan Emerg Mkts . . . . . . . .522.00 –9.00 549.00 397.00 Schroders N/V. . . . . . . . . . . . . .1071.00* –25.00 1185.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . . 110.70 –2.20 137.30 96.60 Daily Mail ‘A’ . . . . . . . . . . . . . . . .441.30 –11.20 539.00 371.80 Kazakhmys . . . . . . . . . . . . . . . .1073.00 –30.00 1634.00 901.50
Afren . . . . . . . . . . . . . . . . . . . . . .96.60 –2.50 111.00 60.50 Dana Petroleum . . . . . . . . . . . .1806.00 +1.00 1817.00 968.50 Kesa Electricals . . . . . . . . . . . . .129.60 +0.30 162.00 98.45 Scot. & Sthrn Energy. . . . . . . . . 1126.00* –1.00 1206.00 357.50
African Barr Gold . . . . . . . . . . . .567.00 –0.50 685.00 520.50 Davis Service . . . . . . . . . . . . . . .364.00 +0.90 442.30 356.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .198.50 –2.60 255.00 196.50 Scottish Mortgage. . . . . . . . . . . .571.00 +2.50 623.50 441.00
Aggreko . . . . . . . . . . . . . . . . . .1346.00 –83.00 1639.00 596.00 De La Rue . . . . . . . . . . . . . . . . . .689.50 –3.50 1021.00 666.50 Ladbrokes . . . . . . . . . . . . . . . . .131.40* –0.60 174.29 114.60 SEGRO . . . . . . . . . . . . . . . . . . . .275.00 –1.10 403.10 244.00
Alliance Trust . . . . . . . . . . . . . . .307.60 –1.30 352.70 286.40 Debenhams . . . . . . . . . . . . . . . . .56.05 –0.05 90.00 51.95 Lancashire Hldgs . . . . . . . . . . . .525.50 +3.50 545.00 416.70 Serco . . . . . . . . . . . . . . . . . . . . .586.50 +27.00 656.50 440.90
AMEC . . . . . . . . . . . . . . . . . . . . .848.50 –24.00 937.00 720.50 Derwent London . . . . . . . . . . . .1383.00 +9.00 1490.00 1077.00 Land Securities . . . . . . . . . . . . . .603.00 +5.00 743.50 543.00 Severn Trent . . . . . . . . . . . . . . .1301.00 +13.00 1358.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .408.50 +3.70 437.60 350.80 Dexion Absolute . . . . . . . . . . . . .135.60 –0.80 148.00 121.10 Legal & General . . . . . . . . . . . . . .89.40 –1.35 97.00 66.90 Shaftesbury . . . . . . . . . . . . . . . .409.00 +5.00 426.50 341.70
Anglo American . . . . . . . . . . . .2254.00* –66.00 3015.50 1846.50 Diageo . . . . . . . . . . . . . . . . . . .1066.00 –10.00 1176.00 930.50 Lloyds Banking Gp . . . . . . . . . . . .66.00 –1.41 77.61 45.30 Shire. . . . . . . . . . . . . . . . . . . . .1387.00 –31.00 1526.00 999.00
Antofagasta . . . . . . . . . . . . . . . .977.50 –34.50 1100.00 699.50 Dimension Data . . . . . . . . . . . . .120.00 –0.30 125.50 56.50 Logica . . . . . . . . . . . . . . . . . . . .108.20 –1.70 149.10 100.80 Smith & Nephew . . . . . . . . . . . . .545.00 –7.00 700.50 505.50
Aquarius Platinum . . . . . . . . . . .261.90 –1.20 490.00 211.50 Domino’s Pizza . . . . . . . . . . . . . .409.80 +0.80 431.30 231.10 London Stk Exchange . . . . . . . . .641.50 –7.00 949.50 540.50 Smiths . . . . . . . . . . . . . . . . . . . 1135.00 –3.00 1242.00 771.50
ARM Holdings . . . . . . . . . . . . . . .331.80 +1.80 370.00 123.30 Drax . . . . . . . . . . . . . . . . . . . . . .385.50 –4.60 496.50 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1477.00 –21.00 2198.00 1336.00 SOCO Intl . . . . . . . . . . . . . . . . . .437.40 –4.10 476.60 380.60
Arriva . . . . . . . . . . . . . . . . . . . . .773.00 +0.50 782.50 428.20 DSG Intl . . . . . . . . . . . . . . . . . . . .24.00 +0.25 39.75 23.32 Man . . . . . . . . . . . . . . . . . . . . . .206.60 +0.10 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .880.00 +10.50 949.00 612.00
Ashmore . . . . . . . . . . . . . . . . . . .283.10 –1.10 311.20 211.60 Dunelm . . . . . . . . . . . . . . . . . . . .381.30 +1.30 438.40 250.70 Marks & Spencer. . . . . . . . . . . . .334.20 –3.80 412.70 321.90
Astrazeneca . . . . . . . . . . . . . . .3230.00* –3.50 3376.00 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .352.30 –3.50 499.90 308.50 Meggitt . . . . . . . . . . . . . . . . . . . .265.10* –3.30 331.00 202.20 Spirax-Sarco Eng . . . . . . . . . . .1562.00 –1.00 1617.00 947.00
Atkins(Ws) . . . . . . . . . . . . . . . . .676.50* –20.50 801.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .392.40 –2.10 412.40 327.40 Melrose . . . . . . . . . . . . . . . . . . .212.50 –6.50 251.50 139.30 Spirent Comms . . . . . . . . . . . . . .125.10* –2.90 135.90 74.05
Autonomy Corp . . . . . . . . . . . .1560.00 –7.00 2012.00 1272.00 Electrocomponents . . . . . . . . . . .205.70 –1.20 245.00 142.90 Mercantile IT . . . . . . . . . . . . . . . .907.50 –8.50 1002.00 822.50 Sports Direct Intl . . . . . . . . . . . . .103.50 –0.20 134.00 81.80
Aveva . . . . . . . . . . . . . . . . . . . .1400.00 +12.00 1419.00 805.00 EnQuest . . . . . . . . . . . . . . . . . . . 116.30 +0.70 125.90 87.35 Michael Page Intl. . . . . . . . . . . . .385.80 –9.80 461.50 309.90 SSL Intl . . . . . . . . . . . . . . . . . . . 1160.00* — 1190.00 536.00
Aviva . . . . . . . . . . . . . . . . . . . . .375.30 –6.60 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .395.70 –0.40 475.90 358.50 Millen & Copthorne . . . . . . . . . . .482.70* +2.90 514.50 321.40 St James’s Place . . . . . . . . . . . . .253.00* –1.50 296.90 203.40
Babcock International . . . . . . . . .492.80 –8.20 660.50 482.10 Eurasian Nat Res . . . . . . . . . . . .827.00 –3.50 1276.00 776.00 Misys . . . . . . . . . . . . . . . . . . . . .269.90 –0.40 281.70 173.90 Stagecoach. . . . . . . . . . . . . . . . .170.00 –0.60 204.90 126.20
BAE Systems . . . . . . . . . . . . . . .299.10 +0.80 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .590.00 +12.00 630.00 258.00 Mitchells & Butlers . . . . . . . . . . .284.40 –4.60 343.90 228.30 Standard Chartered . . . . . . . . . .1661.00* –26.50 1927.00 1351.00
Balfour Beatty . . . . . . . . . . . . . . .235.10 +0.50 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .606.00 –10.50 664.50 489.00 MITIE . . . . . . . . . . . . . . . . . . . . .188.70 –2.90 281.70 187.80 Standard Life . . . . . . . . . . . . . . .199.00* –4.10 237.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .298.00* –11.15 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .89.50 –0.50 96.80 79.00 Mondi . . . . . . . . . . . . . . . . . . . . .447.00 –9.60 491.30 278.00 SuperGrp . . . . . . . . . . . . . . . . . .952.00 –20.50 1100.00 499.00
Barratt Development . . . . . . . . . . .91.45 –1.20 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .278.20* –11.80 396.20 138.00 Monks Inv Tst . . . . . . . . . . . . . . .292.10 –1.30 321.20 242.10 TalkTalk . . . . . . . . . . . . . . . . . . .123.60 –1.10 147.10 106.60
BBA Aviation . . . . . . . . . . . . . . .180.50 –12.10 220.00 136.60 FirstGroup . . . . . . . . . . . . . . . . .343.50 –3.20 448.80 331.20 Morrison Wm . . . . . . . . . . . . . . .289.70 +0.50 306.30 255.00 Talvivaara Mining . . . . . . . . . . . .391.80 –9.70 501.50 341.40
Beazley. . . . . . . . . . . . . . . . . . . . 111.90* +0.70 125.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .263.80* –2.10 297.20 232.70 Murray Intl Tst . . . . . . . . . . . . . . .837.00 –9.50 893.50 667.50 Tate & Lyle . . . . . . . . . . . . . . . . .412.40 +0.50 509.00 388.00
Bellway. . . . . . . . . . . . . . . . . . . .513.00 –7.50 927.50 510.00 Forth Ports . . . . . . . . . . . . . . . .1288.00 +2.00 1425.00 1020.00 National Express. . . . . . . . . . . . .221.20 –3.00 258.60 155.86
Berkeley . . . . . . . . . . . . . . . . . . .805.00 +1.00 984.00 735.00 Fresnillo . . . . . . . . . . . . . . . . . . .997.50* –2.50 1139.00 583.00 National Grid . . . . . . . . . . . . . . .533.50 –1.00 607.65 474.80 Taylor Wimpey . . . . . . . . . . . . . . .24.95 –1.16 54.90 24.29
BG . . . . . . . . . . . . . . . . . . . . . .1059.00* –15.50 1248.00 966.90 G4S . . . . . . . . . . . . . . . . . . . . . .247.10 –1.00 285.70 210.00 Next . . . . . . . . . . . . . . . . . . . . .1932.00 –12.00 2360.00 1601.00 Telecity . . . . . . . . . . . . . . . . . . . .465.00 +7.60 485.00 311.30
BHP Billiton . . . . . . . . . . . . . . .1767.00 –36.00 2346.00 1527.50 Genesis Emerging Mkts Fd . . . . .462.00 –11.20 484.00 370.00 Northumbrian Water . . . . . . . . . .327.90* +7.30 341.30 225.20 Templeton Emrg Mkts . . . . . . . . .539.00 –4.50 598.00 398.00
BlackRock Mining . . . . . . . . . . . .557.00 –3.00 654.50 420.00 GKN . . . . . . . . . . . . . . . . . . . . . .138.50* –1.80 155.00 100.20 Old Mutual . . . . . . . . . . . . . . . . .122.90 –4.10 130.20 86.85 Tesco . . . . . . . . . . . . . . . . . . . . .402.70 +0.20 454.90 366.30
Bluecrest Allblue GBP . . . . . . . . .167.40 +0.20 169.00 137.10 GlaxoSmithKline . . . . . . . . . . . .1205.50* +5.50 1347.00 1088.00 Pace . . . . . . . . . . . . . . . . . . . . . .207.90 –2.10 243.80 145.00 Thomas Cook . . . . . . . . . . . . . . .181.20 +0.60 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .43.50 –0.75 49.50 34.75 Great Portland Estates . . . . . . . .310.70 –3.30 332.10 236.60 Partygaming . . . . . . . . . . . . . . . .255.70 –4.30 339.70 205.80 Tomkins . . . . . . . . . . . . . . . . . . .322.70 +1.20 325.70 155.00
BP . . . . . . . . . . . . . . . . . . . . . . .375.15 –2.35 658.20 296.00 Greene King . . . . . . . . . . . . . . . .403.80* –0.80 504.00 372.50 Pearson . . . . . . . . . . . . . . . . . . .937.00* –2.00 1069.00 715.50 Travis Perkins . . . . . . . . . . . . . . .747.00 –16.00 915.00 647.50
Brit Insurance . . . . . . . . . . . . . . .952.00 +5.50 1017.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .485.70 +0.70 562.50 324.00 Pennon . . . . . . . . . . . . . . . . . . . .565.00* +5.00 613.00 440.40 TUI Travel . . . . . . . . . . . . . . . . . .198.60 –3.00 313.90 189.20
British Airways . . . . . . . . . . . . . .208.70 –6.80 255.80 172.40 Halma . . . . . . . . . . . . . . . . . . . . .270.00* –4.70 298.70 192.00 Persimmon . . . . . . . . . . . . . . . . .347.30 –0.80 534.50 335.90 Tullett Prebon . . . . . . . . . . . . . . .371.00 –1.20 436.20 261.20
British Amer. Tob . . . . . . . . . . .2181.00* –20.50 2335.50 1832.00 Hammerson . . . . . . . . . . . . . . . .352.20* –1.80 460.30 332.20 Petrofac . . . . . . . . . . . . . . . . . .1355.00 –37.00 1428.00 849.00 Tullow Oil . . . . . . . . . . . . . . . . .1238.00 –59.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .422.50 –2.60 467.90 338.50 Hargreaves Lansdown . . . . . . . .392.00 –9.20 408.40 229.00 Petropavlovsk . . . . . . . . . . . . . . .976.00 +11.00 1370.00 675.50 UK Commercial Prop. . . . . . . . . . .77.50* +0.50 84.90 68.75
British Land . . . . . . . . . . . . . . . .449.40 +1.70 531.00 416.00 Hays . . . . . . . . . . . . . . . . . . . . . . .89.15 –1.35 119.00 82.50 Premier Farnell . . . . . . . . . . . . . .215.00 –4.80 252.60 140.60 Ultra Electronics . . . . . . . . . . . .1616.00* –5.00 1718.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .475.50 –1.10 518.00 324.80 Henderson . . . . . . . . . . . . . . . . .121.00 –2.10 157.80 112.10 Premier Oil . . . . . . . . . . . . . . . .1480.00 –54.00 1610.00 984.00
Brown(N.) . . . . . . . . . . . . . . . . . .221.00 –0.50 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .305.00* –14.40 585.00 298.20 Provident Financial . . . . . . . . . . .824.50 +2.50 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1688.00* –4.00 2024.00 1610.00
BSkyB . . . . . . . . . . . . . . . . . . . .704.50 –3.50 732.00 521.00 Hikma Pharma . . . . . . . . . . . . . .734.50 +5.50 746.00 440.00 Prudential . . . . . . . . . . . . . . . . . .547.00* –13.50 665.00 475.70 United Utilities . . . . . . . . . . . . . .565.50 +1.00 620.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .132.60* –2.60 151.00 108.40 Hiscox . . . . . . . . . . . . . . . . . . . .360.80 +9.80 369.30 299.60 PZ Cussons . . . . . . . . . . . . . . . .339.80* –9.80 373.20 210.50 Utd Business Media . . . . . . . . . .547.00 –6.50 579.50 408.30
Bunzl . . . . . . . . . . . . . . . . . . . . .682.00 +3.00 784.50 570.00 Hochschild Mining . . . . . . . . . . .326.00 +5.50 370.60 220.00 Qinetiq . . . . . . . . . . . . . . . . . . . .104.90 +0.20 179.10 103.50 Vedanta Resources . . . . . . . . . .1839.00 –43.00 2967.00 1616.00
Burberry . . . . . . . . . . . . . . . . . . .820.50 –28.00 891.50 457.70 Home Retail . . . . . . . . . . . . . . . .212.10 –3.10 336.50 208.50 Randgold Resources. . . . . . . . .5740.00 +10.00 6600.00 3456.00 Victrex . . . . . . . . . . . . . . . . . . .1080.00 –13.00 1320.00 681.00
Cable & Wire Comms . . . . . . . . . .57.90 –1.25 150.00 53.00 Homeserve . . . . . . . . . . . . . . . . .436.10 –3.60 488.20 435.40 Reckitt Benckiser . . . . . . . . . . .3130.00* –35.00 3667.00 2765.00 Vodafone . . . . . . . . . . . . . . . . . .149.40 –0.45 155.50 126.50
Cable & Wire Wwide . . . . . . . . . . .62.75 +0.10 94.80 60.05 HSBC Hldgs . . . . . . . . . . . . . . . .631.50* +1.60 766.80 595.20 Reed Elsevier . . . . . . . . . . . . . . .514.50* –6.50 566.00 435.40 Weir . . . . . . . . . . . . . . . . . . . . . 1130.00 –7.00 1275.00 599.00
Cairn Energy. . . . . . . . . . . . . . . .449.40 +3.90 497.60 306.80 Hunting . . . . . . . . . . . . . . . . . . .554.00 –15.50 659.50 429.10 Regus . . . . . . . . . . . . . . . . . . . . . .66.05 –1.00 125.50 64.05 WH Smith . . . . . . . . . . . . . . . . . .406.50 +2.90 551.00 392.20
Caledonia Invs . . . . . . . . . . . . .1545.00 –5.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . .396.20 –3.90 478.30 291.70 Renishaw . . . . . . . . . . . . . . . . . .850.00 +10.50 915.50 457.00 Whitbread . . . . . . . . . . . . . . . . .1368.00 –11.00 1645.00 992.50
Capita . . . . . . . . . . . . . . . . . . . . .700.50 –2.00 829.50 661.00 IG . . . . . . . . . . . . . . . . . . . . . . . .508.50 +7.00 510.50 291.00 Rentokil Initial . . . . . . . . . . . . . . . .91.85 –1.55 140.20 91.35 William Hill . . . . . . . . . . . . . . . . .166.90 –1.10 217.80 160.50
Capital & Counties . . . . . . . . . . . 116.80 +0.30 125.40 99.60 Imagination Tech Gp . . . . . . . . . .338.00 –1.00 362.00 149.75 Resolution . . . . . . . . . . . . . . . . .246.60 +0.90 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .429.20 –1.00 487.00 380.00
Capital Shopping Centres . . . . . .325.40 +0.70 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .664.50 –9.00 786.00 393.30 Rexam . . . . . . . . . . . . . . . . . . . .293.00 –2.90 348.80 252.80
Carillion . . . . . . . . . . . . . . . . . . .298.20 +7.00 361.90 263.90 Imperial Tobacco. . . . . . . . . . . .1819.00 –16.00 2159.00 1706.00 Rightmove . . . . . . . . . . . . . . . . .596.50 –2.50 729.00 456.90 Wolseley . . . . . . . . . . . . . . . . . .1223.00 –16.00 1742.00 1155.00
Carnival . . . . . . . . . . . . . . . . . .2037.00* –27.00 2937.00 1804.00 Inchcape. . . . . . . . . . . . . . . . . . .253.20 –10.00 347.00 235.00 Rio Tinto . . . . . . . . . . . . . . . . . .3105.00* –56.50 4104.00 2262.50 Wood Group (John). . . . . . . . . . .345.60 –4.30 411.70 277.00
Catlin . . . . . . . . . . . . . . . . . . . . .334.00 –6.50 394.60 303.20 Informa . . . . . . . . . . . . . . . . . . . .372.00* –7.60 439.40 263.30 RIT Capital Partners . . . . . . . . . 1124.00 –7.00 1215.00 927.00 WPP . . . . . . . . . . . . . . . . . . . . . .633.00 –11.50 744.00 489.00
Centamin Egypt . . . . . . . . . . . . .169.80 +2.40 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .661.00 +6.00 831.00 503.00 Rolls Royce . . . . . . . . . . . . . . . .553.00 –4.50 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . . .976.10 –13.50 1344.50 765.50
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REPORT
the economy in China, its biggest cus-
tomer, would slow from recent highs.
Shares in BHP, which reported
1.1 per cent, with Barclays down 3.6
per cent. As investors sought safer
shelter, the yield on the 10-year
REPORT Composite Index gained 17.78 points,
or 0.84 per cent, to 2,141.54.
The KBW bank index briefly hit
bumper results yesterday, fell 2 per British gilt hit an all-time low of 2.790 42.70. The index finished down 0.4
B U
RITAIN’S top share index fell to cent, while the sector lost 1.8 per per cent. By comparison, the UK blue S stocks staged a comeback yes- per cent at 43.41.
a seven-week closing low yester- cent. chip index offered a dividend yield of terday, breaking a four-day los- The Nasdaq fared better than the
day on growing unease that the However, robust company earnings 3.54 per cent. ing streak by major indexes, as other two main indexes, boosted by
global economy may slip back helped limit the losses on the FTSE key technical support triggered Apple.
into another recession following fur- 100, which closed 46.55 points or 0.9 ANALYSIS l FTSE 100 Index bargain hunting that offset weak eco- But the market’s gains may prove
ther weak economic data from the per cent lower at 5,109.40, after trad- 5500 5,109.40 nomic data. to be short lived. The S&P’s 14-day
United States. ing as low as 5,070.94. 25 Aug The S&P 500 index sagged as much moving average fell below its 50-day
5400
New orders for long-lasting US A one-notch downgrade of Ireland’s as one per cent after data showed new moving average.
5300
made goods rose far less than expect- credit rating by Standard & Poor's also single-family home sales slumped to a About 8.14bn shares traded on the
ed in July and, excluding transporta- weighed on sentiment as it reignited 5200 record slow pace in July. But positive New York Stock Exchange, the
tion equipment, posted their largest concerns over sovereign debt issues at 5100 momentum grew through the ses- American Stock Exchange and
decline in 1-1/2 years, while new US Eurozone peripheral economies. 5000 sion after the benchmark S&P 500 Nasdaq.
single-family home sales unexpected- Tullow Oil sank 4.6 per cent, the 4900 bounced back from a breach of the Advancing stocks outnumbered
ly fell last month to set their slowest second biggest faller on the FTSE 100, 4800 1,040 level. declining ones on the NYSE by 1,832
pace on record. after saying development of its 4700 The Dow Jones industrial average to 1,167, while on the Nasdaq,
Also illustrating concerns over Ugandan oil fields would be delayed 7 Jun 25 Jun 15 Jul 4 Aug rose 19.61 points, or 0.20 per cent, to advancers beat decliners 1,676 to 977.
City Focus
21
BACK TO SCHOOL
| Careers KIT FOR COOL
KIDS, TOMORROW
F
OR graduates, it’s harder than ever per cent of people who have completed
to get a job as a trader. Unless you Amplified’s courses go on to work in
have a double first in something investment banks, but usually in non-trad-
maths-related then you can kiss ing jobs. JC Zuidmeer completed Amplify’s
good-bye to the dream. But is there a way course after he left his role as a product
to increase your chances? One way of get- controller at Morgan Stanley. Although he
ting first-hand knowledge is on a “trader loved it, he is back working as a product
training school.” But are they any good? controller for another investment bank.
As a former trading analyst at an oil “This is a temporary role, I needed the
company, it was with heavy heart that I cash, but my passion is still trading.”
went along to a course run by Amplify Amplify has definitely benefited his CV, he
Trading. I thought these courses were says, and he is continuing to look for a job
expensive tosh in out-of-town locations. in trading.
But Amplify’s office is just behind Canada Manoj Ladwa, senior trader at ETX
Square. Even if the course is rubbish I will Capital, says: “These courses can be useful
feel like I am where the action is happen- since they give new recruits a good idea
ing, I thought. The trading floor wasn’t about how a market works. But what
quite Goldman Sachs standard, but it cer- makes a good trader is aptitude to take
tainly looked professional: desks had mul- risk, a quick head for numbers as well as
tiple computer screens and phone lines creativity and these things can’t be
and there was a squawk box – a loud- taught.” The sceptics include Fiona
speaker system that is used to channel Sandford, director of careers services at
market news straight to a trader’s desk. London School of Economics. “I would be It could be you.
I was led to my desk and told that I and nervous to advise students who are
the others on the course could trade euro- already in debt to go on a course like this,”
dollar, oil and the S&P 500 mini contract she says. “Banks tend to look at a passion
on a simulator. My heart sank. Simulators for trading, not a huge knowledge of it.” GCU London – Glasgow Caledonian
were always inferior to real trading sys- She says there are many ways for to show
tems and tended to malfunction. Or so I your passion for trading – interning at University’s specialist postgraduate London
thought. Technology has moved on. In investment banks in holidays and joining campus – announces a range of professionally
front of me were two screens. On the right investment clubs at your university where
were my charts that automatically updat- you can play simulated trading games. accredited master’s degree programmes.
ed every minute. Impressive. The screen Personally, I loved the thrill of it. While I
on the left was the control centre where I wouldn’t advocate anyone to get into debt
would make the trades. We could start for a course such as this, if you haven’t had
trading immediately, so once I realised the opportunity while at uni to get into
how to place a buy or sell order – it was the trading community, these courses are Study for a
only slightly more complex then placing a certainly one route to doing so. master’s degree
grocery order online – off I went.
Things started slowly. Oil seemed to with
DETAILS | SCHOOLS FOR TRADERS
move first, with the S&P and then euro-
dollar following closely behind. After half
an hour I was down $1,000. Time to
l Amplify’s four month trading course costs £3,600, a two month professional
change tack. Since I write investment fea-
tures all day, I have a pretty good idea
course £1,275 plus Vat. Students will spend two months on the sim-
ulator, then if they are good enough, spend the last two months accreditation
trading the actual markets. www.amplifytrading.com
about themes in the market. But what I l Schneider Trading Associates offers a free four-week full time
did learn is that when you trade intra-day course for those who get selected to take part in its professional
you will only make money by reacting to trader programme. You need to have a minimum 2.2 degree to
minute-by-minute price action. apply. www.schneidertrading.com/tradercourse/ Open events
l TCA Markets has a remote trading programme for trainee traders. Sunday, August 29
GOOD CAMERADERIE tcamarkets. tradercareers.com 11am-3pm and
There was good camaraderie during the Banking & Finance: Wednesday, September 8
course. An instant messaging system Executive MBA Financial Services Management 4pm-8pm
allowed experienced traders to share mar- MSc International Banking & Finance
ket tips with everyone else. I found this MSc Banking, Finance & Risk Management
useful for generating ideas and also check- MSc Finance Services, Risk & Operations
ing what other traders were investing in.
Even so, with half an hour to go, I was still Risk Management:
$2,000 down. I needed to come up with a MSc Insurance & Risk Management
plan. Not only did none of the others look MSc Public Sector Risk Management
like they had made any losses, I was the MSc Risk Management
only one with experience of working in Fashion & Luxury:
the actual markets. How embarrassing. MBA Luxury Brand Marketing
Suddenly my competitive streak let
MSc International Fashion Marketing
loose. I knew that I wouldn’t make a prof-
it, but I at least had to claw back some of Tourism:
my losses. I decided on a buy and hold MSc International Tourism Enterprise
strategy. I bought all three products when
the market was low in the hope it would Construction Management:
rise in the next 30 minutes. Finally, things MSc International Project Management
started to go in my direction. The euro
ticked up against the dollar. Oil rose, and
the S&P 500 also moved in my direction. Located in the heart of the City,
By the end of the session I was pleading GCU London is a leading-edge
for just “five more minutes”; I clawed back learning environment with excellent
half of my euro losses, eradicated my oil industry links and partnerships.
losses and made a slight dent in the S&P
loss. Walking back to the DLR I felt a real
thrill. Because the prices were all in real-
time it didn’t seem to matter that I was
To find out more:
only trading a simulator. I also came away
with a different understanding of the call 0203 369 3000
markets. If you aren’t looking at the charts email enquiries@gculondon.ac.uk
and seeing where it is actually going, all or visit www.gculondon.ac.uk
the theory in the world is useless. Glasgow Caledonian University is a registered Scottish charity, number SC021474
| Books
I
Cousins’ War, with an instantly, electri- T may still be peak holiday season but in
cally gripping story about Margaret our cosmopolitan capital you can com-
Beaufort. Who? Indeed. Beaufort, the plete a world tour whenever you like by
grandmother of Henry VIII, was merely a taking a glamorous (if slightly less exotic)
shadowy character on the edge of The journey around London’s more exclusive inter-
White Queen, Gregory’s previous book national nightlife.
about Elizabeth Woodville, matriarch of Starting with Japan, the chic Kyashii has
the House of York. But here she takes just re-launched on Upper St Martin’s Lane
centre stage as the heiress to the red rose offering a sophisticated, ultra modern hide-
of Lancaster. We meet her as a child – a away in which to enjoy your sake. Above
deeply devout, grandiose nine-year-old ground you’ll find a sleek white champagne
who wishes she could be like Joan of Arc lounge and glossy, dark mezzanine bar, while
and believes angels talk to her. the restaurant rooms downstairs are posi-
The Red Queen begins when mad King tively Bond-esque with wall-to-wall fish tanks
Henry VI marries the child Margaret to and futuristic lights. No longer Kingly Club-
his half-brother Edmund Tudor, twice owned, the new management has introduced
her age. Their son is born just as the wars less exorbitant prices with a reasonable
are starting, and Beaufort vows that he Japanese and pan-Asian menu and after-
will become king. She never surrenders work “Shaker” sessions with two-for-one
her belief that her House is the true cocktails. Well worth re-discovering.
ruler of England and that she has a great To continue on the tour, for further Asian
destiny before her. influence you could drop into Chinawhite,
There’s plenty to pity about Margaret Taman Gang or even Funkybuddah (with
Beaufort. She’s born without much love Buddha Bar recently departed) and for
from her mother or her (quickly dead) African influence there is, of course, the new
father, penalised for being a girl. She’s Shaka Zulu or the Moroccan classic (but
repeatedly raped by Edmund Tudor in recently refurbished) Momo on Heddon
order to produce an heir: once she does, Street. Representing the Middle East we have
the birth is so butchered by midwives champagne overflowing at Merah on Wells
that she becomes infertile. Street.
But make no mistake, Gregory paints Moving to Europe, for France there‘s the
an egotistic, jealous and unscrupulous quirky yet stylish Sketch on Conduit Street
person. Unlike Woodville, who spares and for Italy, Luxx on New Burlington Street,
barely a thought for the homely along with the still achingly trendy Polpo and
Margaret, Beaufort is completely its new little sister Polpetto (confusingly on
obsessed with the beautiful head of her top of the French House). The champagne bar
rival household, whom she believes has at the effortlessly stylish and refreshingly
taken her place as the rightful queen. Icelandic Texture on Portman Square bridges
As usual, Gregory has gone against the the mid Atlantic gap.
grain. She’s put a nasty character at the Meanwhile, American Bar at the Stafford
centre of her work, but it doesn’t mean is best in class for the USA, with Floridita’s
the book is too sour to digest. On the con- Olwen, merrily drinking herself to death Phillipa Gregory’s The SHADOWPLAY Cuban passion and the Argentinean Gaucho
trary, it’s a riproaring induction to the in a virtually unfurnished flat, the young Cousins’ War series is BY KAREN CAMPBELL bars making a showing for South America
period for those who may not have con- doctor with a disastrous career, the vile getting better and Hodder, £18.99 (there’s Sushinho on Kings Road too if you
sidered themselves interested in late caretaker and his wife. The one person he better. don’t mind Japanese with your Brazilian).
Medieval history, and a must-read for doesn’t invite is his girlfriend, as she hhhii Mahiki and Kanaloa’s tongue in cheek Tiki-
anyone else. might invite her husband. Needless to by ZS ness take us round to the South Pacific.
say, the party doesn’t go as planned, Closer to home it’s hard to beat the cigar bar
TIGERLILY’S ORCHIDS thanks to a murder – and the guests’ THIS gutsy new book from star-to-be Karen at Boisdale for Scottish influence and – for
BY RUTH RENDELL lives will never be the same again. Campbell is set right in Campbell’s own something less formal – the new Platform
Hutchinson, £18.99 Living across the road is a beautiful stomping ground of Glasgow. down by London Bridge for good old Blighty,
Asian woman with bruises all over her, An ex-policewoman herself, Campbell’s with its local ciders and farm to table feasts.
hhhhi christened Tigerlily by Stuart. As if super- well-drawn star is Anna Cameron, recently If you are looking for a
by ZS natural, she emerges to cast a malevolent promoted to Chief Inspector in the mish-mash of the interna-
spell over the cast of characters. After the Glasgow police. Her new boss is a woman, tional Jet Set head
RUTH Rendell is the grande dame of murder, Tigerlily becomes entwined but rather than this making Cameron’s for Maddox or
mannered, urban mystery, homing in on with Stuart’s cold-hearted girlfriend and life easier in a traditionally misogynistic Cuckoo but there
precise segments of London and excavat- the other inhabitants of Lichfield House. force, she’s wound up with the fearsome JC is also the
ing the sinister secrets and motives lurk- As ever with Rendell, there are multi- Hamilton. brand new
ing below the surface. Over the years she ple mysteries here, the stories of myriad Still, she’s determined to be a brave and Jet Lounge
has manoeuvred her way through death displaced souls are all interwoven, from above all, a good cop. But suddenly, every- on Haymarket for
among the bohemian middle classes of a young woman drawn into petty crime, thing turns topsy turvy when her mother clientele waiting to depart
Holland Park in its hippy days, and vio- to the curious activities of the Asian goes into a coma in a foreign country and to the crazy late-night Jet Black
lence in post-property boom red brick ter- characters. What emerges is a beautifully an old woman disappears from a Glasgow at a very antisocial hour.
races, skewering the mannerisms and constructed answer to the murder mys- care-home in deeply suspicious circum- We have, of course, skipped
fads of the capital at the turn of this cen- tery. stances. Australia’s lovely Walkabout pubs
tury and beyond. The scope of this book is huge, but The screws only tighten further on Anna which are only for very special occa-
Now she brings us a tale of sordid mur- under Rendell’s control, it’s also razor with the gang-related murder of a young sions, as I’m sure you know all too well.
der in a suburban block of flats – a who- sharp and acutely spine-chilling. It’s not Asian boy and an assault on one of her offi- Tim Badham is the founder of
dunit among neighbours. Stuart Font, a quite perfect – she’s done this for so long cers. All at once, her personal and profes- Innerplace, London’s leading providers of
rakishly handsome but naïve young pro- you get the sense that sometimes she’s sional lives threaten to implode. Can Anna VIP entertainment, including film pre-
fessional, decides to throw a housewarm- writing from an older place, with the be both a good cop and a good person? It’s mieres, fashion shows, launch parties and
ing party and invite the whole block. And result that the book can feel a bit dated. high time we had a good, gritty British members club access.
what odd ducks they are: the 60-year-old All in all, though, you’re in for a treat. crime novel by a woman – and here it is. www.innerplace.co.uk.
CITYA.M. 26 AUGUST 2010 Lifestyle | Debate 23
A P
S experienced a father as responsibilities, than that he’s ATERNITY leave is sup- months down the line.
David Cameron may be, turning to public office to posed to be about enjoy- Caribbean holiday en famille,
he absolutely needs to be escape the strain of family life. ing your newborn baby anyone?
around in these first This is an opportunity for and helping the mother Cameron refusing to take
formative weeks not just to David Cameron to redefine out. But in my experience (hav- paternity leave would lead to
build a relationship with the himself as a dad while demon- ing been through it twice), it’s a mass disapproval, even though
baby, but to help his wife and strating to the world the cru- bit different. Mainly, I’ve felt like I’ll bet he’s dying to get back –
older children adapt as well. cial role that fathers play in the a spare part, of little use to any- at least while he’s in possession
Crucially, he must establish a family. Given what’s waiting one. Paranoid. Restless. of a BlackBerry. But what peo-
pattern of involvement that for him at home, I don’t know A woman who has just given ple don’t understand is that in
will last long into the future. why he wouldn’t jump at the birth has no need of the sperm- refusing his paternity leave
Should the situation be dif- chance to set an example. donor – she’s got her hands full now, he wouldn’t be setting a
ferent because he’s Prime Andrew Watson is a commentator on enough. Until men grow bad example. On the contrary,
Minister? Yes – how can he parenting issues. His guide for new breasts, they are pretty irrele- he’d be showing an astute
pledge to make Britain “the fathers, Be A Great Dad, is out in vant in the very first two weeks. understanding of the role and
most family-friendly country in October, and his diary of first-time Mothers and NCT (National place of fathers in the child-
Europe” without demonstrat- fatherhood, Down To Earth With A Child Trust) friends are far birth saga. Harry Owen is com-
David and pre-baby Samantha on holiday in Cornwall. Picture: PA ing those family values right Bump, will be published next spring. more useful, as well as able to mercial director of CityA.M.
24 Lifestyle | TV& Games CITYA.M. 26 AUGUST 2010
SKY SPORTS 1 BRITISH EUROSPORT BBC THREE HISTORY DISCOVERY HOME &
SATELLITE & CABLE
7pm Sky Sports News 7.30pm 6.10pm MotoGP 7.35pm Live 7pm Total Wipeout 8pm Young, 7pm Britain’s Lost Mega- HEALTH
ATP Tour Uncovered 8pm Test UEFA Europa League Football Dumb and Living Off Mum 9pm Fortress 8pm Pawn Stars 9pm 7pm Portland Babies 8pm 10
Cricket: England v Pakistan. 9.45pm Fight Club 11.15pm- I Can’t Stop Stealing 10pm Lost Cities of the Ancients Years Younger 9pm I Didn’t
10pm Time of Our Lives: 12.15am World Superbikes EastEnders 10.30pm The Real 10pm Decoding the Past 11pm Know I Was Pregnant 10pm I
Former Arsenal stars Hustle: Celebrity Scammers Hitler’s Private World 12am E NUMBERS: AN EDIBLE
reminisce. 11pm Premier ESPN 11pm Family Guy 11.45pm I Pawn Stars 1am Lost Cities of
Have An Embarrassing Medical
Condition 11pm Most Shocking
League World 11.30pm Test 6pm Live UEFA Europa League Can’t Stop Stealing 12.45am the Ancients 2am Britain’s Lost ADVENTURE BBC2, 8PM
Football 8.45pm ESPN Kicks Autopsies 12am I Didn’t Know Food writer Stefan Gates tries to
Cricket 1.30am Carling Cup Baby Beauty Queens 1.15am Mega-Fortress 3am Britain AD: I Was Pregnant 1am I Have An
Football 3am Time of Our Extra 9pm Motorcycling 10pm uncover the truth about food additives,
Small Teen, Big World 2.15am King Arthur’s Britain 4am-5am Embarrassing Medical
Lives 4am Premier League MMA Live 10.45pm ESPN beginning with an investigation into
Total Wipeout 3.10am The Real The Universe Condition 2am Most Shocking
World 4.30am-6am Carling Premier League Kicks 11pm the effects of E-number colours.
Goal! 11.30pm 30 for 30 Hustle: Celebrity Scammers Autopsies 3am 10 Years
Cup Football 3.40am Young, Dumb and DISCOVERY Younger 4am A Baby Story
12.30am Press Pass 2010 1am 8pm How Do They Do It?
SKY SPORTS 2 Live NFL 4am Superleague Living Off Mum 4.40am- 5am-6am Bringing Home Baby
5.10am Baby Beauty Queens 8.30pm How It’s Made 9pm
6.30pm Race World 7.30pm Formula 4.30am-5am Goal!
Live Greyhound Racing 10pm
Venom Hunter with Donald SKY1
Live Poker 12am Race World LIVING E4 Schultz 10pm River Monsters 8pm The Real A&E: A
7pm Four Weddings: A Sikh 7pm Hollyoaks 7.30pm Friends 11pm Greatest Tank Battles basketball player is told he may
1am Show Jumping 2am-
2.30am IAAF Athletix Weekly wedding with a modern twist. 9pm The Big Bang Theory 12am Bear Grylls: Born not walk again. 8.30pm Real
8pm Private Practice 9pm 9.30pm How I Met Your Survivor 1am Deadliest Catch Filth Fighters 9pm Lie to Me
SKY SPORTS 3 Criminal Minds 12am CSI: Mother 10pm Accidentally on 2am Rory McGrath’s Best of 10pm NCIS: Los Angeles 12am
7pm Live Carling Cup Football Crime Scene Investigation 1am Purpose 10.35pm Alan Carr: British Engineering 3am World Road Wars 1am UK Border BRITAIN’S UGLIEST MODELS
10pm WWE: Late Night – Raw Charmed 3am CSI: Crime Chatty Man 11.25pm War Two: The Complete Force 1.50am Road Wars CH FIVE, 11PM
12am WWE: NXT 12.30am Scene Investigation 3.50am Important Things with Demetri History 3.50am Treasure Quest 2.40am Oops TV 3.30am The Following the work of an agency that
Golfing World 1am World The Jerry Springer Show Martin 11.55pm The Big Bang 4.40am The American Civil 4400 4.20am Top Design specialises in unconventional looks.
Hockey Monthly 1.30am-2am 4.40am Nothing to Declare Theory 12.25am-6am Ultimate War 5.30am-6am How Does 5.10am-6am Sell Me the Company director Marc French tries to
ATP Tour Uncovered 5.30am-6am Home Shopping Big Brother: Live That Work? Answer sign the world’s most pierced woman.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
QUICK CROSSWORD
SUDOKU KAKURO
17 37 7 11 21 11
9 6 14
24 22
34 16
Place the numbers from 1 to 9 in each empty cell so that each 17
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 10 11
9 13
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 23 17
above or to the left of it. 35 28
9 16
You can only use the digits 1-9
and you must not use the
15 20
13 29
same digit twice in a block.
The same digit may occur 32
8
4
6
more than once in a row or
column, but it must be in a 22
13
11 14
15
separate block. 21
13
11
7
8 33
16 5 3
ACROSS DOWN
1 Divisible by two (4) 1 Hinge joint in
WORDWHEEL E M
3
6
Less common (5)
Leak through (4)
the arm (5)
2 Not any (4)
Using only the letters in the Wordwheel, you have 7 Edible leguminous seed (4) 3 People sent to locate
ten minutes to find as many words as possible,
A S 9 Might, possibly (3)
and help others (8)
4 Setting straight
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters A 10
12
Fiasco (7) or right (9)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
S R 13
Came first (3)
Gaming cube (3)
5 Be similar in end
sound, eg cat
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
D C 14 Sport of shooting arrows and mat (5)
with a bow (7) 8 Latin phrase:
QUICK CROSSWORD 15 Feverish cold (3) done so often that
SUDOKU
8 9 3 7 1 3 8
6 8 2 9 2 1 5 4 it has become
& $ & 7 8 6 ' )
16 Vex (3)
7 1 4 6 5 9 8 tiresome (2,7)
2 2 & 5 $ 9 $ 7
1 5 1 2 2 7 1 18 Cowboy’s hat (7)
/ 8 6 7 $ 5 & 11 Unmarried man (8)
2 7 3 5 $ 1 & ( 5 4 3 2 6 9 1
20 Source of metal (3)
6 3 ( / / 8 $ 7 ( 2 6 1 9 2 9 7 8 15 Drift on water (5)
21
6
$
/
: /
8 5
0
1 1 '
7 2 1 * $
8 3 9
8 2 5 7 6 9
5 9 3 6
WORDWHEEL
22
Type of hybrid citrus fruit (4)
Finished (4)
17 Item of cutlery (5)
/ , 2 1 ( 6 6 , /
7 4 8 9 1 3 1 The nine-letter word 19 Yours and mine (4)
9 $ 7 $ % / (
1 2 3 7 8 7 4 9 23 More docile (5)
' ( 1 , 5 2 $ 5
was PARENTING
6 / 3 $ / / ( 7 1 2 8 3 1 2 8 24 Underside of a shoe (4)
Sport
25
‘WE WANT REAL MADRID AND
INTER MILAN’
CROUCH COURTS EURO GIANTS AFTER
MAKING TOTTENHAM HISTORY: P27
▲
RUGBY UNION the new Premiership season. surprisingly omitted when England
BY FRANK DALLERES Borthwick will sit out the opener manager Martin Johnson named
against London Irish, which takes his 32-man elite performance squad
FORMER England captain Steve place at Twickenham as part of the last month. That was despite cap-
Borthwick’s prospects of returning traditional London double header taining the team for the first 20
to the national team this autumn on 4 September, and the visit of Sale Tests of Johnson’s tenure.
have diminished after he tore a the following weekend. Injury ruled him out of the sum-
thigh muscle. That spell in the treatment room mer tour Down Under, where Lewis
The Saracens skipper is expected will not help Borthwick fight his Moody impressed as skipper, while
to be sidelined for three weeks by way back into the England set-up locks Tom Palmer, Dave Attwood
the quadriceps injury, meaning he for the autumn internationals. and Courtney Lawes also advanced
will miss their first two matches of The 30-year-old lock forward was their claims.
Alastair Cook boosted his confidence with a century in the last Test. Picture: ACTION IMAGES
Strauss: Our
batsmen will
shine at Lord’s
▲
SPORT | IN BRIEF
Monty: Westwood fit for Ryder Semenya runs at Commonwealths
GOLF: European Ryder Cup captain Colin ATHLETICS: World 800m champion
Montgomerie insists world No3 Lee Caster Semenya has been named in the
Westwood will be fit in time for the Ryder South Africa team for October’s
Cup in October. Commonwealth Games in Delhi following
Europe’s top player is currently recover- her return to competition last month.
ing from a torn calf muscle he picked up in The 19-year-old, who was out of action
June, but Montgomerie has guaranteed his for almost a year while gender tests were
participation at Celtic Manor – even if concluded, won her first two comeback
Westwood is unable to play any competi- races in Finland and Germany last month
tive golf before the match. and also triumphed in Berlin on Sunday.
26 Sport CITYA.M. 26 AUGUST 2010
Results
UEFA CHAMPIONS LEAGUE
PLAY-OFF SECOND LEG
Tottenham ...................(2) 4 Young Boys .......................(0) 0
Crouch 5, 61, 78 (pen)
Ferdinand defends Capello
and lambasts fickle critics
Defoe 32 Att: 34,709
Agg: 6-3.
Ajax...................................(1) 2 Dynamo Kiev...................(0) 1
Agg: 3-2.
Auxerre ..........................(1) 2 Zenit St Petersburg....(0) 0
Agg: 2-1.
FC Copenhagen.........(1) 1 Rosenborg.........................(0) 0
Agg: 2-2; FC Copenhagen win on away goals rule.
MSK Zilina....................(1) 1 Sparta Prague................(0) 0
Agg: 3-0.
CARLING CUP SECOND ROUND
Accrington St.............(1) 2 Newcastle ..........................(1) 3
“Before the World Cup he
Putterill 45 Taylor 36
Hessey 90
Att: 4,098
Ameobi 48
Lovenkrands 67
was the best thing since
Everton...........................(2) 5 Huddersfld.........................(1) 1
Fellaini 7, Rodwell 14
Beckford 50 (pen), Saha 77
Heitinga 40 (og) sliced bread,” reasons
Osman 85 Att: 28,901
Fulham............................(4) 6 Port Vale ............................(0) 0
Gera 10, 45
vexed England skipper
Dembele 26
Zamora 36, 66
Dempsey 70 Att: 9,031
▲
CRICKET FOOTBALL
LV COUNTY CH’SHIP - DIV ONE (Edgbaston); Essex 90-7 v BY FRANK DALLERES
Warwickshire.(Trent Bridge); Lancashire 319 (S
Chanderpaul 92, A R Adams 6-79, R J Sidebottom 4-79) v ENGLAND captain Rio Ferdinand has
Nottinghamshire 178-4 (53.0 overs). (Taunton); Somerset leapt to Fabio Capello’s defence, insist-
287-4 (81.0 overs) (M E Trescothick 128). v Durham. No play ing the head coach’s critics have been
Wednesday due to rain. (Scarborough); Yorkshire 322-9 dec.
(A U Rashid 76, A Lyth 63, D G Cork 5-64) v Hampshire 367- too quick to turn against him.
3 (99.0 overs). DIV TWO: (Derby); Middlesex 228-3 (61.0 Capello was widely depicted as the
overs) v Derbyshire. (Northampton); Northamptonshire 96- steely general England’s cosseted
3 (34.5 overs) v Worcestershire. (Grace Road); Surrey 483
(M R Ramprakash 179, G C Wilson 125, J J Roy 76, C W underachievers needed during an
Henderson 4-119) v Leicestershire 32-0 (12.2 overs). unerringly successful march to the
CLYDESDALE BANK 40 - GROUP A: Sussex v Glamorgan World Cup finals.
(Hove); Match abandoned, rain, 1pt each. But his stock has fallen off a cliff fol-
lowing a disastrous tournament in
TODAY’S DIARY South Africa, and his decision not to
(Football 7.45pm unless stated) step down only appears to have
UEFA Europa League Play-off Round Second Leg enraged his detractors further.
AEK Athens (1) v Dundee Utd (0) (7pm) .......................................................... The Italian’s popularity in the Press
Aston Villa (1) v Rapid Vienna (1)........................................................................
FC Utrecht (0) v Celtic (2) (7.30) ........................................................................ plummeted to a new low yesterday
Man City (1) v FC Timisoara (0) .......................................................................... when one newspaper portrayed him as
Motherwell (1) v Odense BK (2) .......................................................................... a donkey – complete with photo-
The New Saints FC (0) v CSKA Sofia (3) (7.35) ............................................ shopped ears – alongside a scathing Capello has come under fresh fire for dropping youngster Jack Wilshere. Picture: ACTION IMAGES
Trabzonspor (0) v Liverpool (1) (6.30) .............................................................. report on his latest squad selection.
Carling Cup 2nd rnd
Birmingham v Rochdale............................................................................................ “You don’t become a bad player the Godfather, Don Fabio and what- Jack Wilshere and overlooking the Ferdinand added: “It is up to him who
overnight and I don’t think all of a sud- not. claims of Andy Carroll and Jack he picks and who he feels is right for
CRICKET den our manager became a bad man- “Now they have changed course. Yes, Rodwell, despite pledging after the the squad.
Fourth Test Match—day 1 of 5: England v Pakistan (Lord’s). ager overnight,” said Ferdinand, who we didn’t play well at the tournament, World Cup to blood new talent. “If he sees it right to make changes,
GOLF missed the World Cup through injury no-one is getting away from that. But All three have been named in the who are we to argue as players? We are
European Tour: Johnnie Walker Championship at Gleneagles and will not return for several weeks. that doesn’t make him a bad manager Under-21 squad, meaning they will just out there to go and do a job.
(The Gleneagles Hotel, Perthshire, Scotland). “Before the tournament he was the overnight, and I think a lot of people miss the senior team’s first Euro 2012 “It’s all about England winning, it is
best thing since sliced bread, we quali- are probably jumping the gun.” qualifier against Bulgaria on 3 not about individuals. And if that
SPORTS EDITOR JON COUCH fied in great style. All of these so-called Capello has come under renewed September. means some people have to be disap-
email sport@cityam.com people in the know were saying he is fire this week for dropping youngster But Manchester United defender pointed by being dropped, so be it.”
F
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Fulham and Everton show no mercy No Gerrard or Torres for Reds ly yesterday in training and
LIVERPOOL are without key trio Steven then declared him not for sale.
Gerrard, Fernando Torres and Javier “I have been able to see Jo close up in
Mascherano for tonight’s tricky trip to the last two months and what I have
Trabzonspor. seen makes me think he’s a good player,”
Captain Gerrard has a back injury and said the Italian, whose team won the
equaliser from Ray Putterill ensured Fulham routed League Two Port Vale Torres is rested as a precaution, while play-off first leg 1-0 in Romania. “We
ACCRINGTON 2 the two teams went in level at half-
time and revived a raucous home
6-0 at Craven Cottage. Recent signing
Moussa Dembele notched his first for
Mascherano remains omitted amid spec-
ulation about a move to Barcelona.
want to keep him.”
crowd’s hopes of a giant-killing. the Premier League club, who made “It’s going to be a very tough ask for MacDonald not deterred by rout
TL
EU
NI
NEWCASTLE 3 Shola Ameobi needed less than
three minutes of the second period to
just three changes from the weekend,
while Clint Dempsey completed the
the players in a difficult place,” said
Hodgson, whose side hold a 1-0 lead
ASTON VILLA caretaker boss Kevin
MacDonald insists Sunday’s 6-0 mauling
reassert Newcastle’s superiority with scoring. from the play-off first leg. “They’re a hos-
at Newcastle has not put him off taking
▲
CARLING CUP a low shot, however, and Peter Everton also enjoyed easy progress tile and fanatic crowd and it’s a difficult
the job permanently.
Lovenkrands tapped in a rebound to to round three, with a 5-1 win over 10- pitch. But if we come through it we’ll MacDonald maintains he will only
PREMIER League heavyweights extend the lead on 67 minutes. man Huddersfield. come through it stronger.” decide whether to put himself forward
Newcastle needed a second-half resur- Putterill saw another effort cleared Marouane Fellaini, Jack Rodwell, after tonight’s visit of Rapid Vienna and
gence to avoid an upset at League Two off the line and Sean Hessey lashed Jermaine Beckford, Louis Saha and Mancini decides to keep Jo the weekend fixture with Everton.
Accrington. home a second for Stanley deep into Leon Osman all struck against the MANCHESTER CITY outcast Jo has “It hasn’t changed my stance,” he said.
Ryan Taylor looked to have put the stoppage time, but the home side had League One side, who had Lee Peltier been welcomed in from the cold by man- “Whether it’s damaged my opportunity,
underdogs in their place when his to settle for a gallant second-round sent off for a second yellow card. But ager Roberto Mancini and could start I’ve not thought of it as that yet.”
long-range strike gave an under- defeat. Toffees defender Johnny Heitinga had tonight’s visit from Timisoara. Villa drew 1-1 in Austria and are with-
strength Magpies side the lead late in England striker Bobby Zamora and a night to forget, scoring an own goal The Brazil striker had looked sure to out Stewart Downing, Stephen Warnock
the first half. But a spectacular Zoltan Gera both netted doubles as and then missing a penalty. be sold, but Mancini used him prominent- and Richard Dunne for the return leg.