BUSINESS WITH PERSONALITY

SPORTS REVIEW OF 2010 DISRUPTION

CONTINUES
QUOTES OF THE YEAR WILL SNOW CHAOS AND
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P6-P7, P22
Issue 1,289 Tuesday 21 December 2010 www.cityam.com FREE

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UNION STRIKE THREAT
POLITICS CABLE: I CAN BRING DOWN
▲

BY DAVID HELLIER THE GOVERNMENT

THE government’s assault on public THE TENSIONS within the coalition
sector pensions became a major flash- were thrown into sharp relief yester-
point yesterday at trade union lead- day after the Telegraph quoted busi-
ers’ first official meeting with a ness secretary Vince Cable
Conservative Prime Minister for 25 threatening to use the “nuclear
years. option” to bring down the govern-
In a meeting at No. 10 requested by ment.
the unions to outline their concerns Cable told undercover reporters pos-
about the government’s public spend- ing as constituents that there is “a
ing cuts, Cameron said certain constant battle going on behind the
aspects of the government’s pro- scenes” both within and between the
gramme were “non-negotiable”. Tory and Liberal Democrat camps.
According to sources at the meet- “If they push me too far then I can
ing, led by TUC general secretary walk out of the government and
Brendan Barber, Cameron used the bring the government down and they
phrase to refer to the government’s know that,” he was recorded as say-
position on public sector pensions, ing.
where it has said it will change the Cable said last night that he was
basis on which they are calculated. embarrassed by the
The government has said it will comments, but
index pensions against the CPI rather would not be
than the RPI in a move that will make TUC leader Brendan Barber arrives at No. 10 for talks with the Prime Minister David Cameron Picture: PA resigning from
thousands of workers worse off as it his role in the
shaves thousands off the value of Serwotka says the union might do government’s move, which was McCluskey warned over the week- coalition. The
their pensions. better by organising protests against announced in the budget. end that the government faced a mas- Liberal
“David Cameron said that the the government’s proposals rather Those at the meeting said that the sive battle with unions over the cuts Democrats have
change in the index was non-nego- than discussing issues with them. discussions were fairly cordial, and he vowed to work with students backed his
tiable,” said a spokesman for the “If Cameron’s government will not although some on the union side to fight the austerity agenda. position.
Public Services Union. “There’s no agree to meaningful negotiations, questioned how valuable the talks The union side included TUC
point in having cosy fireside chats if then all the cordiality and the fine had been. leader Brendan Barber and National
they do not lead to meaningful nego- words are for nothing, and have the The trade union delegation was Union of Journalists general secretary
tiations,” he added. effect of inviting industrial and legal deprived of one of its most militant Jeremy Dear, while the government
Writing in today’s City A.M. the action,” Serwotka said. members, Len McCluskey, whose was represented by Cameron, Oliver
Public and Commercial Services The Trades Union Congress (TUC) is train arrived late in from Liverpool, Letwin and Francis Maude.
Union general secretary Mark already looking at the legality of the causing him to miss the meeting. DEBATE: WINTER OF DISCONTENT?: P17

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 2 News
FSA probes Swift mortgage firm
▲
BANKING
MORTGAGE company Swift Advances
has been under investigation by City
watchdog the FSA since July 2009, the
firm revealed in recent accounts.
The public company said the group
is likely to incur £9.4m of costs linked
to the probe into its handling of mort-
gage arrears and lending practices,
including a potential fine.
Apax nears a deal to take Takko
▲
PRIVATE EQUITY
PRIVATE equity firm Apax Partners is
reportedly closing in on a deal to buy
German clothing retailer Takko from
US rival Advent International for
about €1.3bn (£1.1bn).
Apax has been given until
Thursday to hold exclusive talks with
Takko and a deal is likely before the
deadline, says the Wall Street Journal.
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WHAT THE OTHER PAPERS SAY THIS MORNING
BANKS TO OVERHAUL GLOBAL PAY
STRUCTURES
The world’s biggest investment banks
are to overhaul their pay structures to
differentiate between bankers based
in Europe and those who work else-
where, after European regulators’
clampdown on bonuses. Many US and
Swiss banks are considering paying
higher salaries and lower bonuses to
top bankers based in the European
Union, mostly in London, to ensure
they comply with new instructions
from the Committee of European
Banking Supervisors (CEBS), the pan-
EU regulator, limiting cash pay-outs.
CHINA AND BRAZIL WEAK LINKS IN
BRIC EQUITY RETURNS
Lacklustre stock market performanc-
es from economic power houses
China and Brazil have damped
returns for the many investors who
poured money at a record pace into
The Office of Fair Trading is also
investigating the company under the
Consumer Credit Act 1974.
The lender, which deals with cus-
tomers unable to secure credit else-
where, turned over £128m in the year
to 31 March, its accounts noted –
£108m of which was used to repay
debts and meet interest costs.
Swift Advances made a pre-tax prof-
it of £9.4m for the year.
Advent has been readying an initial
public offering of Takko, which oper-
ates discount clothing shops across
Europe, in case a committed buyer
does not emerge.
Last week it emerged that both
Apax and Swedish rival EQT were
both preparing binding bids for
Takko.
Apax and Advent were unavailable
for comment last night.
US set to sue E&Y
for Lehman audit
ENFORCEMENT
▲
BY ALISON LOCK
NEW YORK prosecutors are said to be
preparing to file a lawsuit against
accountant Ernst & Young for its
involvement in Lehman Brothers’ col-
lapse in 2008.
The civil case will reportedly
charge Ernst & Young with helping
Lehman Brothers to mislead investors
during its time as the bank’s auditor,
specifically homing in on the use of a
controversial accounting technique
called Repo 105.
The lawsuit may seek fines and
damages from the Big Four account-
ant if it can prove it failed to spot evi-
dence that Lehmans’ accounts
mislead investors, the report in the
Wall Street Journal said.
The lawsuit would be filed by
Andrew Cuomo, the New York state
attorney general, but would be pur-
sued by his successor, Democratic
emerging market funds. Overall gains
from emerging markets have been
strong but those funds tracking the
so-called Bric countries would have
collectively underperformed counter-
parts focused on western markets this
year.
DEAL FOR HYUNDAI E&C FALLS
THROUGH
Creditors of Hyundai Engineering &
Construction have decided to scrap a
deal to sell their controlling stake to
Hyundai Group, citing uncertainty
over the conglomerate’s financing
plans for the $4.8bn deal. This is like-
ly to open the door for Hyundai
Motor, an alternative bidder, which
has been determined to regain con-
trol of the construction group.
The battle for control of the compa-
ny involves a dynastic power struggle
pitting Chung Mong-koo, chairman
of Hyundai Motor, against his sister-
in-law, Hyun Jeong-eun, chairwoman
of Hyundai Group. The tussle has
drawn attention to South Korea.
Judge casts doubt on
BAE’s deal with SFO
DEFENCE
▲
BY PHILIP WALLER
A DEAL between arms group BAE
Systems and the Serious Fraud Office
to settle a long-running investigation
into allegations linked to an arms
sale to Tanzania looked in doubt yes-
terday after a judge challenged it.
BAE and the SFO had agreed under
the terms of the deal that BAE would
not have to admit to allegations that
it made payments to secure a radar
deal with the Tanzanian govern-
ment.
BAE had acknowledged paying
commission money to a Tanzanian
marketing adviser linked to the
group’s sale of a radar to Tanzania in
1999, but denies corruption.
New York state senator Eric
Schneiderman, as Cuomo is due to
step down at the end of December to
become governor of New York state.
A suit of this kind would be unusu-
al, legal experts said yesterday, as it
has been rare for prosecutors to
charge audit firms directly since
auditor Arthur Andersen collapsed
after being sued for its role in the
Enron scandal.
Ernst & Young is also being investi-
gated by the UK’s Financial Reporting
Council and the Accountancy and
Actuarial Discipline Board over the
allegations, originally published in
an report of Lehman’s collapse by
bankruptcy lawyer Anton Valukas.
Valukas said Lehman used Repo
105 without telling investors or regu-
lators to temporarily remove up to
$50bn (£32.2bn) of risky assets and lia-
bilities from its balance sheet in 2008.
Ernst & Young and the SEC
declined to comment yesterday.
THREE BECOME ONE AS LONDON
UNITES ITS AGENTS OF ATTRACTION
The bodies that attract students,
investors and tourists to London have
been merged into Britain’s first
“super agency” by Boris Johnson.
From April, Visit London, Think
London and Study London will be
brought together under a new
umbrella organisation with the work-
ing title Promote London.
WALL STREET BONUS BRIGADE GO
FROM HEROES TO ZEROES
As Wall Street’s bonus season
approaches, certain traders, bankers
and brokers face a chilling new reali-
ty: this year their bonus won’t just
end in several zeroes — it may well
start with one as well. Reforms to
Wall Street pay this year have resulted
in a big shift in the way in which
some of the biggest companies are
paying their staff.
It is understood to have agreed to
an ex-gratia payment of up to £30m
to Tanzania and admitted failing to
keep accurate records of the pay-
ment to the agent.
BAE had agreed to plead guilty to
one charge of breach of duty to keep
accounting records linked to pay-
ments “made to a former marketing
adviser in Tanzania” and the judge
had been expected to sentence the
defence company on that basis.
BAE said in February: “In connec-
tion with the sale of a radar system
by the company to Tanzania in 1999,
the company made commission pay-
ments to a marketing adviser and
failed to accurately record such pay-
ments in its accounting records.”
The firm added: “The company
New York attorney general Andrew Cuomo is close to filing the suit
PIMCO SAYS UNTENABLE POLICIES
WILL LEAD TO EUROZONE BREAK-UP
Pimco, the world’s largest bond fund,
has called on Greece, Ireland and
Portugal to step outside the Eurozone
temporarily and restructure their
debts unless the currency bloc agrees
to a radical change of course. Andrew
Bosomworth, head of Pimco’s portfo-
lio management in Europe, said cur-
rent policies are untenable in the
absence of fiscal union and will lead
to a break-up of the euro.
ALLIED IRISH BANKS MOVES £7.9BN
PROPERTY LOANS TO BAD BANK
Allied Irish Banks has handed over
property loans worth €9.3bn (£7.9bn)
to the country’s bad bank as the
lender’s debt was downgraded along
with that of many of Ireland's other
major banks. Allied transferred the
loans to NAMA at an average discount
of about 60 per cent.
CITYA.M. 21 DECEMBER 2010
failed to scrutinise these records ade-
quately to ensure they were reason-
ably accurate and permitted them to
remain uncorrected.
“The company very much regrets
and accepts full responsibility for
these past shortcomings.”
BAE said it had improved its com-
pliance policies to avoid a repetition
of such issues.
But the judge at a hearing at
Southwark Crown Court said he was
unable to pass sentence without
hearing more evidence and said he
wanted to call witnesses to testify.
He questioned why the payments
to the businessman had been made
and also whether some of the pay-
ments had been channelled to offi-
cials in Tanzania.
Picture: GETTY
TELENOR DOESN'T SUPPORT
VIMPELCOM'S WEATHER DEAL
One of VimpelCom’s two major
shareholders Telenor ASA said yester-
day it opposed a $6.7bn merger with
the telecom assets of Egyptian bil-
lionaire Naguib Sawiris, a setback
that will almost certainly derail the
deal to create the world's fifth-
biggest mobile operator, according to
people familiar with the negotia-
tions.
ECB WARNS IRELAND ON NEW LAWS
The ECB warned Ireland that pro-
posed legislation revamping the
country’s financial system could
threaten some of the ECB’s opera-
tions, and pressed Irish officials for
assurances that the central bank's
collateral rights will be protected.
The ECB said it had serious concerns
that the draft law is insufficiently
legally certain on a number of issues.
CITYA.M. 21 DECEMBER 2010
Delay could
prove fatal
for Gartmore
▲
FUND MANAGEMENT
BY JULIET SAMUEL
HENDERSON is unlikely to agree an
acceptable offer for Gartmore before
the Christmas break, sources close to
Henderson say, raising the risk that
the embattled fund manager could
collapse before a deal is done.
Henderson confirmed yesterday it
is in negotiations to snap up its
stalling rival and is said to have
offered 95p per share for the compa-
ny, whose shares closed yesterday at
95.8p. That equates to £346m in total
equity, with Gartmore’s latest trading
update putting net debt at £80m.
But while Gartmore is pushing for a
quick deal before Christmas,
Henderson is in no hurry to complete.
Sources close to Henderson say that
the company is keen to include a price
adjustment mechanism in the deal,
whereby it can reduce its offer if
Gartmore’s share price plummets dur-
ing negotiations.
But if Henderson drags its feet for
too long, Gartmore could lose so
much of its value as to make the deal
pointless. The company’s latest results
showed that its assets under manage-
ment (AUM) had seen outflows of
Cerberus nears Australia buys
sale of Chrysler Gatwick stake
▲
M&A
Toronto-Dominion Bank is close to an
agreement to buy Chrysler Financial
from US private equity firm Cerberus
Capital Management for $6.3bn
(£4.1bn), it was reported last night.
Cerberus, which is led by co-
founder Stephen Feinberg, would
retain about $1bn in assets as part of
the deal, the Wall Street Journal said.
TD spokesman Wojtek Dabrowski
said the bank does not comment on
market rumours or speculation.
Toronto-Dominion is Canada’s sec-
ond-largest bank, and it owns just
under half of online broker TD
Ameritrade.
News 3
Banks should have
Gartmore chief
executive Jeff Meyer
is keen to strike a
deal with
Henderson before
paid for protection
more investor cash
flows out of the
business
Picture: REX
protection scheme. The troubled
▲
BANKING
BY MARION DAKERS bank last year agreed to pay £2.5bn.
The support package has also “only
THE BAILED-OUT banks were under- been partially successful in encourag-
charged for the toxic asset insurance ing lending to creditworthy borrow-
scheme used to prop them up, accord- ers on the scale originally envisaged”,
ing to the National Audit Office. the report said.
The watchdog criticised the former The NAO accepted the asset protec-
Treasury staff under Labour and said tion scheme coupled with the capital
the department could have charged injections for banks such as RBS and
Royal Bank of Scotland (RBS) in partic- Lloyds since 2008 have helped sustain
ular up to £1.9bn more for the asset financial stability.
£700m during the third quarter of
this year, though overall AUM was
roughly steady at £20bn. However, it is
not known how much more investors
might have withdrawn since then.
Some observers have said that the
deal could also be slowed by the
Financial Services Authority (FSA),
which is already investigating
Gartmore over the conduct of one of
its former fund managers, Guillaume
Rambourg.
Gartmore has been in crisis since
the departure of its star fund manag-
er Roger Guy in early November.
Henderson is being advised on the
deal by UBS and Ondra Partners,
while Gartmore has hired Goldman
Sachs.
ANALYSIS l Gartmore
125 p
120
95.75
115 20 Dec
110
105
100
95
20 Sep 8 Oct 8 Nov 26 Nov 26 Nov
TRANSPORT
GATWICK Airport is now partially
owned by the Australian govern-
ment after its Future Fund bought a
17.2 per cent stake from US invest-
ment firm Global Infrastructure
Partners (GIP).
GIP yesterday said the deal,
thought to be worth around £150m,
is part of its plan to syndicate owner-
ship of the airport.
It has previously sold holdings to
other state-backed investors includ-
ing the Californian retirement fund,
the South Korean pension plan and
Abu Dhabi’s investment authority,
leaving GIP with a 42 per cent stake.
 4 News
HSBC investors questioning
London HQ, Geoghegan says
▲
BANKING
BY ALISON LOCK
JPMORGAN may be moving to the
Wharf to stay, but other banks are
still uncertain whether London
remains the ideal home.
Faced with the government’s threat
of further banking levies, bonus taxes
and regulation, HSBC investors are
reconsidering London’s appeal.
Former chief executive Michael
Geoghegan is the latest to warn that
HSBC’s shareholders have been ques-
tioning whether the bank should
remain headquartered in London. In
an interview with the Telegraph,
Geoghegan said investors were
increasingly focused on London’s
competitiveness – and costs – relative
to other centres.
“Shareholders are taking more of
an interest and beginning to ask
‘What is the cost to HSBC of the bank
being located here?’” he said.
Geoghegan’s words echo incoming
chief executive Stuart Gulliver, who
has said several times over the past
three months that the bank, while
preferring to stay in the UK, would
consider a move. The bank reviews its
head office location every three years.
HSBC sources told CityA.M.: “It is
our preference to stay in London and
we have been crystal clear on that.
But shareholders are questioning the
economic viability of the bank
remaining here in the UK and we are
considering that.”
Former HSBC boss Goeghegan says the bank is mulling moving its HQ Picture: REUTERS
Adobe turns in a fourth-quarter
profit as revenues beat forecasts
▲
TECHNOLOGY
ADOBE Systems issued an earnings
forecast sharply above Wall Street pro-
jections yesterday, contrasting
sharply from a pessimistic outlook
three months ago when it was con-
cerned about the weak economy.
The world’s biggest maker of
design software marked a sharp con-
trast to the forecast issued in the last
quarter when problems in key mar-
Bankers could
trade lending
for soft touch
▲
BANKING
BY JULIET SAMUEL
CHIEF executives of all of the UK’s
major banks will be summoned to a
meeting with chancellor George
Osborne today, with the directors
expected to try and sweeten the chan-
cellor with offers of a multi-million
pound lending target.
The meeting was due to take place
on Monday but was postponed due to
Osborne being stranded in New York
by the snows in Britain.
It was convened in part to discuss
increasing transparency measures to
do with bankers’ pay, but the
bankers are expected to offer to
agree to a headline-grabbing target
for lending to small and medium-
sized businesses.
The move would give Osborne a
way to claim victory while avoiding
any further action on bonuses. The
EU and the Financial Services
CITYA.M. 21 DECEMBER 2010
kets in Japan and the US educational
sector caused Adobe to warn that rev-
enue would fall short of Wall Street
expectations. As a result, investors
had been anxious about upcoming
forecasts. But Adobe turned in a prof-
it, excluding items, of 56 cents per
share for the fourth quarter, which
ended 3 December. That beat the aver-
age forecast of 52 cents. Quarterly rev-
enue of $1bn (£645m) beat the
average forecast of $988m.
Authority have just rolled out the
most stringent bonus regulation in
the world, with bankers no longer
permitted to receive more than 20
per cent of their bonus in cash up-
front.
The tough new regulation means
that there is little more Osborne can
do to regulate bonus payments.
But the agreement could be
thwarted by business secretary Vince
Cable, who recently called lack of dis-
closure on pay a situation that could
foster a “poisonous fungus”.
Meanwhile, RBS is in negotiations
over bonuses with its biggest share-
holder: the UK taxpayer as represent-
ed by the UK Financial Investments
(UKFI).
Sources close to the bank say that
RBS has asked to be able to pay up-
front cash bonuses of up to £50,000 so
as to prevent an exodus of talent. For
the last two years, RBS has been not
permitted to pay any cash bonuses.
CITYA.M. 21 DECEMBER 2010
From left: Mayor Boris Johnson;
JPMorgan head of investment
banking Jes Staley; and financial
secretary Mark Hoban
Pictures: REX/GETTY/REUTERS
JPMorgan
moves its HQ
to the Wharf
▲
BANKING
BY ALISON LOCK
JPMORGAN confirmed yesterday it
will base its European headquarters
at the former Lehman Brothers tower
in Canary Wharf from 2012.
The decision is a major vote of con-
fidence in London as one of the
world’s top finance hubs and follows
concerns that the government was
not supportive enough of the bank-
ing sector. JPMorgan will not build a
new block for its use as had been
hoped, instead paying £495m for the
31-floor block at 25 Bank
Street.
“This acquisition is a
long-term investment and
represents part of our con-
tinued commitment to
London as one of the
world’s most important
financial centres,” said
Jamie Dimon, the
bank’s chairman and
chief executive.
The towering steel
and glass block will
host JP Morgan’s
entire 8,000-strong
investment bank-
ing division, which
is currently spread
between four
TIME LINE | JPMORGAN CAZENOVE
JPMORGAN’S decision to move its
8,000-strong team of investment
bankers east to a new European head-
quarters at Canary Wharf marks a his-
toric break with the past for one part of
the business. As part of the move,
JPMorgan is to relocate its stockbroking
arm, JP Morgan Cazenove, a firm that
has maintained its illustrious City roots
for nearly 200 years.
The historic Cazenove stockbroking busi-
ness traces its roots back to 1819, when
Phillip Cazenove joined his brother-in-law
John Menet’s company. The two men
decided to go into business together four
years later, and in 1823 the stockbroking
partnership was established.
Cazenove has maintained its blue-blood-
ed credentials since, not least thanks to
News 5
ANALYSIS l Current location of JP Morgan offices Barbican Old Street
The investment banking offices are currently at: Barbican
1. 125 London Wall EC2Y 5AJ Art Centre
Barbican
2. 60 Victoria Embankment EC4Y 0JP
3. 100 Wood Street EC2V 7AN
4. 10 Aldermanbury EC2V 7RF 1 Moorgate
London Wall
2 3 Liverpool
Guildhall Street
City Newgate St
Thameslink
Paternoster Gresham st
square St Pauls
Cheapside
Guided
St Paul’s Walks
Fleet street Ludgate Hill
Strand
New Poultry
Change
Bank
Grandstands Mansion
House
Temple
Place 4 Blackfriars Queen Victoria Street
Temple
Gardens Mansion
House
Upper Thames St Cannon St
offices.
The move will relieve policymakers,
who reportedly met with Dimon to
discuss JP Morgan’s concerns over poli-
cies such as the bank levy and bonus
tax. Mayor of London Boris Johnson
said it was “a tremendous coup for
London and for the UK, which rightly
reflects the prevailing confidence in
the capital.”
“Banking is one of the few global
industries in which we truly excel,” he
said. “JPMorgan’s commitment to
London will help ensure the capital
retains its position as a banking power-
house.”
The move also pleased the Treasury,
which received £550m from
JPMorgan from last year’s
bonus tax alone.
Mark Hoban, financial secre-
tary to the Treasury, said the
decision would “help to
ensure the City’s position as
the pre-eminent global finan-
cial centre.” “This is excellent
news for the City of London,
and indeed the UK,” he said.
The bank had planned to
build a £1.5bn complex on
the Riverside South site
but will now just manage
the development and pay
£74.5m to exit the con-
tract.
its ongoing reputation as the Queen’s
stockbroker. It is famed for its respect
for tradition too, from the discreet brass
plate outside its Tokenhouse Yard offices
to the separate doors for different staff
members, from brokers to butlers.
But the highly-regarded broker has
undergone fundamental change over the
past decade. In April 2001 it officially
ended its partnership structure and
began preparations to float, but pulled
the plan and eventually sold 50 per cent
to JPMorgan in 2004 and the remaining
half, for £1bn, in 2009.
It has never yet left the City, though it
has moved around: from Tokenhouse
Yard it moved to Moorgate in 2003 and
following the takeover, it moved again to
the bank’s offices on Aldermanbury.
 6 Focus on Snow Disruption
National Grid expects record
gas usage to ease this week
▲
ENERGY
BY MARION DAKERS
THE NATIONAL Grid has reassured
customers that gas and electricity
supplies are more than enough to
meet demand, despite record usage
yesterday forcing it to issue a supply
alert.
The utility issued a gas balancing
alert for yesterday and today, which
allows its to redirect power from
industrial users to help fuel homes
and switch electricity generation
from gas to other fuels in an effort to
keep a constant power supply.
This is the first such alert to be
issued as early in the winter as
December.
Demand for gas is thought to have
passed 468m cubic metres (mcm),
slightly above forecasts on Sunday of
465.8mcm and well above the previ-
ous record of 465.5mcm seen in
CITYA.M. 21 DECEMBER 2010
January this year.
The National Grid said usage was
likely to be slightly less today and for
the rest of the week, as companies
start to close down for Christmas.
“A gas balancing alert is a routine
market tool and should not be a
cause for concern,” said network
operations director Chris Train.
Utility firms Centrica and National
Grid helped push the FTSE 100 up 0.3
per cent yesterday to 5,891.61.
BA shares hit
as Heathrow
chaos drags on
was too early to calculate the costs.
▲
TRANSPORT
BY MARION DAKERS “Our priority is to fly as many cus-
tomers as we can before Christmas,” he
SHARES in British Airways plummeted said.
yesterday thanks to the major disrup- Transport secretary Philip
tion to its flights from Heathrow. Hammond told Parliament yesterday
The firm, which is Heathrow’s that the late night flying rules would
biggest operator, cancelled 70 of its be relaxed to ease congestion.
130 flights out of the airport yesterday, Eurostar is also expected to be hit
leaving thousands stranded. hard by the weather.
BA is currently losing up to £10m a Thousands of passengers queued
day, according to analyst estimates – outside St Pancras station yesterday to
close to the losses suffered when all get a train to Europe after cancella-
flights were grounded during the tions at the weekend.
Icelandic volcanic eruption in April. BA shares closed down 1.85 per cent
“We have BA down to deliver rev- at 265.2p yesterday.
enues of around £27m a day in this
quarter so assuming some 70 per cent ANALYSIS l BA
of that is fixed cost it is probably losing 290 p
265.20
about £8m a day of profit,” said Davy 280 20 Dec
Stockbrokers analyst Stephen Furlong,
adding that the majority of BA’s profit 270
comes from its Heathrow operations. 260
“It depends on the percentage of
longhaul flights BA have operated but 250
I think they are probably losing
240
around £10m a day,” said Oddo
Securities analyst Yan Derocles.
20 Sep 8 Oct 28 Oct 17 Nov 7 Dec
A spokesperson for the airline said it
ANALYSIS l WEATHER FORECAST | LONDON AND THE SOUTH EAST
Today: Any light snow flurries across Kent Coventry
should die away during the morning
to leave a mainly dry day, mostly cloudy
day. Cold with temperatures Ipswich
struggling to get above freezing. Maximum
temperature 2 °C. Gloucester
London
Wednesday - Friday: Some showers of Swindon
rain, sleet and snow are possible during FOG
Wednesday, Thursday and Friday, and FOG
feeling bitterly cold in a strengthening
north or northeast wind. Southampton
FOG
Source: Met Office MIST
Brighton
MIST
CITYA.M. 21 DECEMBER 2010 Focus on Snow Disruption 7

Retailers feel chill winds of arctic conditions

FOR retailers, it never rains – it snows
and snows and snows. The industry
had been hoping that the latest blast
of freezing weather would hold off
until after Christmas. Instead, the
snow that blanketed London in the
small hours of Saturday morning
thwarted one of the biggest days on
the retail calendar. Persistent sub-zero
conditions means the impacted snow
and ice is going nowhere.
Many shops had been hoping that
consumers would bring forward pur-
chases of big-ticket items ahead of the
VAT rise, which increases from 17.5
per cent to 20 per cent in January. But
most punters aren’t even venturing
on to the High Street, let alone arrang-
ing delivery of bulky goods like
fridges, washing machines or TVs.
Even those customers that do brave
a shopping spree will find less stock.
Supply chains – which are still suffer-
ing from the bout of snow in early
December – have been massively
affected; hundreds of product lines
are stuck in container ports.
It isn’t just retailers which suffer: a
quick stroll around the Square Mile
proves that consumer-facing business-
es of every hue, from sandwich shops
and gourmet restaurants to bars and
hotels, are feeling the arctic condi-
tions. Shelves are empty, shop floors
even emptier.
The list of other companies that are
likely to be affected is seemingly end-
less. British Airways lost almost two
per cent yesterday on fears that it’s
bottom line – already squeezed by
strikes – will be further hit by the arc-
tic conditions. Eurostar, one of the
biggest losers from last year’s freezing
conditions, will also be hurt.
Of course there are always winners:
utilities helped push the FTSE 100
higher yesterday, because if there’s
one thing people are using it’s energy.
Purveyors of woolly jumpers should
do well too.
BOTTOMLINE
Analysis by David Crow

(Clockwise from far left) Ground staff

de-ice planes; chaos on the roads; can-
celled flights; and London in the Snow
Pictures: GETTY, REUTERS

SHOULD THE GOVERNMENT BE BETTER PREPARED

FOR THE SEVERE WEATHER? Interviews by Tom Chatfield
JENNIFER DEVLIN | RSA GROUP
“Yes, most definitely. I feel they could have
spent more money and have done more about
the whole country, not just London, especially
when it comes to trains.”

JOHN HEAGREN | TPD ASSOCIATES

“Not really, between now and the last time of
the snow, they couldn’t have. However, it will
be interesting to see how they cope if the
same happens next year.”

PATRICK GILHAM | HOWDEN

“Undoubtedly! The country is in chaos and
we have our main airport running with
only one runway, even after the second
bout of snow.”

TRANSPORT | TUESDAY SERVICES ON TRAINS AND PLANES

● Heathrow Airport
Running a reduced service until at least
6am on Wednesday. Passengers should
not travel to the airport unless they have
confirmation from their airline that their
flight is taking place.
● Gatwick Airport
No departures until at least 6am this
morning, with knock-on delays likely.
Check with your airline and on Gatwick’s
Twitter feed before travelling to the air-
port.
● Stansted Airport
Running a normal service, but check with
airline before travelling.
● London City Airport
Runway should be open but delays are
expected.
● Eurostar
Running around 80 per cent of scheduled
trains. Only those with bookings should
try to travel, and should expect queues.
● Southern Rail
The operator hopes to run a normal
timetable in London tomorrow, though a
reduced service will run in Sussex.
● National Express East Anglia
Cancellations and delays are expected on
some lines – check before travelling.
● Southeastern
The operator is confident about running
a normal timetable on Tuesday.
● First Capital Connect
Thameslink trains through Bedford and
Brighton will run on a reduced timetable.
 8 Eurozone Debt Crisis
ECB takes its foot off the gas
in bond purchase programme
▲
EUROZONE CRISIS
BY JULIET SAMUEL
THE European Central Bank (ECB)
slowed its rate of sovereign bond
purchases significantly last week,
figures out yesterday showed.
The ECB bought €600m’s (£507m)
worth of gilts in the week to last
Friday, marking a sharp downward
shift from its purchases of €2.7bn,
€2bn and €1.3bn in the previous
three weeks respectively.
Last week also saw a disappointing
auction of short-dated Spanish debt,
with Spain selling less than expected
and paying more for its money.
The slowdown in special bond pur-
chases in part reflects a market
wind-down before Christmas, but
could also signal a concession to its
board’s more hawkish German
membership.
However, the lighter intervention
is likely to be temporary. ING Bank’s
Martin van Vliet said: “With the
Eurozone debt crisis far from over,
the ECB will probably be forced to
ramp up its bond purchases again
early next year.”
Goldman Sachs has estimated
that, between them, Spain, Belgium,
Italy and Portugal will need to refi-
nance €707bn’s worth of debt next
year.
With yields skyrocketing, it is like-
ly that the ECB will be pressured to
intervene in secondary markets to
temper borrowing costs.
Spain’s unemployment rate has hit 18 per cent leading to public protests at cuts Picture: REUTERS
OECD: Spain
needs reform
▲
EUROZONE CRISIS
BY JULIET SAMUEL
SPAIN is in urgent need of far-reach-
ing labour market and tax reform,
according to an economic survey
released yesterday by the
Organisation for Economic
Cooperation and Development
(OECD).
The report also said that efforts to
curb the country’s budget deficit –
which it predicts will hit 11 per cent
this year – and improve the econo-
my’s competitiveness need to be
“broadened and deepened”.
In particular, the country needs
far-reaching reform to address its 18
per cent unemployment rate – a rate
higher than that of Ireland or
Portugal: “Labour market reform is
the cornerstone to rebalance the
economy,” the report said.
In order to do so, the OECD sug-
gests reforming the tax system to
Trichet warns Ireland to stick to
its bailout plan for sake of euro
▲
EUROZONE CRISIS
EUROPEAN Central Bank head Jean-
Claude Trichet said yesterday
Eurozone countries must do more
individually and collectively to com-
bat the bloc’s debt crisis, and Ireland
must stick “rigorously” to its bailout
plan.
In a position paper published on its
website, the ECB earlier expressed
“serious concerns” that Ireland’s res-
CITYA.M. 21 DECEMBER 2010
shift more of the burden onto con-
sumption and property and away
from employment. It also emphasis-
es the need to de-regulate so as to
make hiring people less onerous,
including measures to reduce sever-
ance pay and make it easier for com-
panies and employees to opt out of
collective sector agreements.
In addition, the organisation said
that water management and regula-
tion requires urgent reform so that
its cost reflects its scarcity.
But sweeping reform could prove
difficult: Spain’s government is
already struggling to maintain order
after introducing a raft of measures
to address its deficit, including an
increase in VAT, income tax and a
five per cent cut in public sector
wages.
The country is still in a state of
emergency imposed after a strike by
air traffic controllers shut down the
country earlier this month.
cue package could affect the institu-
tion’s liquidity operations in the Euro
zone.
Asked if he was concerned about
the health of Irish banks, Trichet said:
“The Irish [bailout] plan is designed
for Ireland to face up to its own par-
ticular problems, which have mostly
to do with its banking system.”
“We consider it necessary [for
Ireland] to complete this plan rigor-
ously,” he added.
CITYA.M. 21 DECEMBER 2010 News 9

Hedge funds play an important role in society

and effectively regulated at a UK level,
but they will soon also be subject to EU
regulation, with the Alternative
Investment Fund Managers Directive
(AIFMD) soon to be approved by the
European Council.
With new EU regulation approach-
ing on areas like derivatives and short-
GUEST COMMENT selling, it’s worth remembering why
ANDREW BAKER the hedge fund industry is a good
thing. The traditional defence of the
industry is that it provides liquidity
facilitating market efficiency.
For example, the industry provides a
lot of jobs, both directly (for managers)
and indirectly (for advisers and service
providers like lawyers and account-
ants) – about 40,000 in total in the UK
alone, according to our research. It
generates significant tax revenues
too – we think about £3bn a year.
That’s not chump change in these
times.
And because it is increasingly insti-
endowments and charitable invest-
ments.
Hedge funds do a good job protect-
ing and growing those socially valu-
able investments because the
investment strategies it employs – like
short-selling – allow it to “hedge” and
help prevent losses when markets fall.
That’s why the industry delivers such
solid returns for its investors.
The figures suggest that institution-
al investment now makes up about
they think it’s worth investing in
hedge funds, surely it is worth listen-
ing to them?
And there is another important
market function hedge funds provide.
They assume risk on behalf of other
participants who are less able to do so.
It’s better for everyone if risk is dis-
persed among lots of small, diverse
players, rather than concentrated
among a few big guys who all do simi-
lar things. The “biodiversity” that

O
NE of the biggest popular mis-
conceptions about the hedge
fund industry is that it is unreg-
ulated and wishes to stay that
way. Not only are managers vigorously
and price discovery to markets, and
that is all true.
But the industry actually has an
important social role and provides
value to the broader economy, beyond
tutional investors like pension funds two-thirds (and rising) of all assets
who make up the majority of assets being managed by the hedge fund
managed, the industry has an impor- industry. These institutional investors
tant social role as the guardian of peo- do extensive due diligence on the
ple’s pensions, of university hedge fund managers they appoint. If
hedge funds provide actually helps
reduce systemic risk and thus prevents
financial instability. Andrew Baker is
chief executive of the Alternative Investment
Management Association.

Greek Prime Minister

George Papandreou
has said speculators
were to blame for his
country’s debt woes
Picture: REUTERS

Bundesbank:
CDS did not
cause crisis
for the likes of Greece.
▲

EUROZONE CRISIS
BY ALISON LOCK
GERMANY’S central bank said yester-
day that speculative trading in sover-
eign credit default swaps (CDS) was not
to blame for the Eurozone debt crisis.
In its December report, the
Bundesbank said that a spike in the
cost of insuring sovereign debt using
CDS was not down to excessive specu-
lation by traders.
Instead, movements in CDS prices
for peripheral Eurozone economies –
like Greece, Spain and Ireland – was
due to specific problems in those
countries, the Bundesbank said.
It added that the CDS market had
responded well to important informa-
tion about the financial strength of
these countries, such as credit rating
agency downgrades.
The Bundesbank also found that
suggestions speculative traders
pushed up the price of CDS to make a
quick profit was “not confirmed by
empirical data”.
The report backs up a similar inves-
tigation by the European
Commission, which also found that
trading in sovereign CDS was not to
blame for a spike in borrowing costs
The report, published earlier this
month, found “no conclusive evi-
dence” that developments in the CDS
market affected the cost of state bor-
rowing.
It praised the “efficiency of CDS
markets in sovereign debt” and said
they had little influence on bond
yields even where governments faced
funding difficulties.
“CDS spreads for the more troubled
countries seem to be low relative to
the corresponding bond yield spreads,
which implies that CDS spreads can
hardly be considered to cause high
bond yields for these countries,” said
the report, which was commissioned
by European finance ministers in
March.
The findings come hot on the heels
of tough new European Commission
proposals published in September,
which aim to tighten rules on short
selling and restrict trading of CDS on
sovereign debt, where investors effec-
tively take a short position on EU gov-
ernment bonds.
But Syed Kamall, a UK member of
the European Parliament, has warned
the crackdown could actually lead to
higher sovereign borrowing costs.
 The Capitalist
10 CITYA.M. 21 DECEMBER 2010
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com

EUROPE GETS ANOTHER SCROOGE:

OSBORNE NOW JOINED BY MERKEL
LAST time The Capitalist reported on
the activities of Evolution Securities’
head of fixed income Gary Jenkins,
he was fantasising about taking over
ratings agencies and hiring Natalie
Portman as his PA.
He has been putting his wild
imagination to other productive
uses recently, it seems, churning out
a re-imagining of Charles Dickens’ A
Christmas Carol for his Credit
Matters magazine column last week.
And in the mind of a bonds ana-
lyst, guess who takes the role of
Scrooge? That’s right, German chan-
cellor Angela Merkel: “Some saw her
as hard and sharp as flint, which no
warmth could warm,” he writes.
“She considered herself as a profes-
sional keeper of the flame.”
As for the “ghosts of
Deutschmarks past”, Jenkins brings
us a bond analyst; for the present,
ECB president Jean-Claude Trichet
(“It appears that I am being asked to
undertake a number of different
responsibilities at this time which
were not part of my original man-
date”); and for Christmases future,
an evil ghost of a ruined Europe in
the wake of a euro collapse.
But this re-telling has a realist
twist. Instead of embracing fiscal

Gary Jenkins draws on his active imagination for his columns.

union, Merkel dismisses her revela- treats.

tions and “with a smile on her face
and a spring in her step she went
downstairs to stuff the turkey”.
PARTY ON
It might have been a year of uncer-
tainty for investors, but the City par-
ties on, according to the annual
Christmas survey by the London
Chamber of Commerce and Industry.
The research shows that more
than half of licensed venues (that is,
bars, clubs and the like) surveyed
said that business is more profitable
than it was this time last year.
Overall, 48 per cent of venue man-
The Corporation just slapped its
first ever immediate injunction in the
Square Mile on Piccadilly Whip
Catering Limited.
But what offence is this dastardly
organisation accused of committing?
Selling icecream on the street
without a license, it seems.
“We’re clamping down on ice-
cream vendors because of reported
overpricing – with some tourists
being charged up to £5 for a cornet
(sic) – and concerns over health and
safety,” said a City spokesman yester-
day.
Now a fiver might be a bit steep for
a couple of strawberry scoops on a
sugar cone, but The Capitalist is pretty
sure that the heavens’ dramatic
intervention in the form of freezing
temperatures will be just as effective
an injunction on icecream consump-
tion as any imposed by the High
Court.

NERDS’ BUSINESS
Rumours abound of a possible tie-up
between Facebook and Chinese
search engine Baidu.
But these new media types have a
The City A.M. awards: a good party year funny way of denying market whis-
pers. Not for them the bland, “We do
agers said that trading was better, 32 not comment on speculation”.
per cent said it was much the Instead, a spokesman told The
same, with only 20 per cent Guardian: “It was just two nerds
saying it was worse. comparing notes. Keep the
And unlike in 2009, speculation in check.”
party venues are report- Nice to inspire such
ing less reliance on respect from your own
one-time spending press goons, eh?
events like
Christmas.
Just 30 per cent
said that the fes-
DOUBLE SPEAK
Labour leader Ed
tivities account- Miliband is clamping
ed for 11 to 25 down on loose language,
per cent of according to reports.
annual turnover, In a memo to his Shadow
versus more than Cabinet recently, he
half in 2009. informed them that the
The EU might be use of the descriptive
doing its best to phrase “coalition govern-
stamp on City exu- ment” is no longer au fait. It
berance with new sounds much too friendly,
bonus rules out apparently.
recently, but it just So what sanctioned lan-
goes to show that guage will the new Party
you can’t keep a machinery accept?
banker away from “Conservative-led govern-
her gin and tonic ment” is A-OK.
for long. A curious prohibition,
you might think, given
that the Tories currently
WHIPPED poll around 37 per cent,
It might not be the versus their friendly coali-
season for icecream, tion partners’ recent low of
but the City of London 11.
Corporation never stops Is it possible that Ed has
thinking about the regu- spun himself into a frenzied
lation of our summer re-imagining of the 90s?
CITYA.M. 21 DECEMBER 2010
KKR’s £1bn bid
for Perpetual
is called off
▲
WEALTH MANAGEMENT
BY HARRY BANKS
AUSTRALIAN wealth manager
Perpetual has called off talks with pri-
vate equity firm Kohlberg Kravis
Roberts over a $1.7bn (£1.09bn)
takeover saying the approach under-
valued the company, knocking its
shares down by nearly 15 per cent.
KKR made an indicative bid of A$38
to A$40 per Perpetual share in
October, eyeing a slice of the $1.2 tril-
lion Australian wealth management
sector. It was only willing to raise that
slightly after looking at limited data.
The Australian wealth manage-
ment industry is among the few grow-
ing parts of the country’s financial
services sector, thanks to compulsory
private pension schemes.
There have been several deals in the
sector, including the $13bn takeover
offer of AXA Asia Pacific by AMP.
Perpetual, which is currently
searching for a new chief executive,
said the the initial offer was too low
and said it would now end all discus-
sions with KKR after it failed to get an
acceptable price.
A successful offer could have led to
further consolidation in the world’s
Aggreko wins Ingenico dips
Olympics deal after deal fails
▲
ENERGY
AGGREKO, the Scottish power special-
ist, has sealed a £37m deal to supply
electricity to the London 2012 Olympic
Games.
The Glasgow-based company will
provide about 220 megawatts of
power – some 60 megawatts more
than it supplied at the Beijing games
in 2008.
Aggreko has also provided power for
the football World Cup in South Africa
and the Vancouver Winter Olympics.
The company, which has 5,000
employees, said it had also been signed
up as a sponsor for the London games
after winning the deal.
News 11
Groupon hires new
Kohlberg Kravis
Roberts, which bid
over £1bn for
Perpetual, was co-
founded by Henry
CFO from Amazon
Kravis
Picture:
GETTY
(£3.86bn) buyout offer from Google
▲
TECHNOLOGY
BY HARRY BANKS earlier this month.
The Chicago-based company’s viral
GROUPON has brought in a former couponing concept has been a hit,
Amazon executive as its new chief with annual revenue said to range
financial officer, the discount coupon from $500m to $2bn. It sends mem-
provider said yesterday. bers daily e-mails with a variety of dis-
Jason Child, a former vice president counts. The deals are activated when a
of finance for Amazon’s international minimum number of people agree to
business, took on the new role with make a purchase.
Groupon yesterday. Child spent 12 years at Amazon
Groupon turned down a $6bn after seven years at Arthur Andersen.
fourth-largest wealth management
industry but investors said KKR will
likely remain in the market for other
Australian wealth management
assets.
KKR’s offer valued Perpetual at
about 22 times forward earnings com-
pared to 18 times for AMP’s offer for
the Australia and New Zealand assets
of AXA Asia Pacific.
“The takeover premium is gone out
of the share price and no other bid-
ders are likely to come in,” said Simon
Burge, fund manager at ATI Asset
Management.
“Add to that uncertainty over the
new chief executive. Only when a new
head is appointed will we know the
direction of the firm.”
ANALYSIS l Perpetual
38 A$
36
34
31.54
32 20 Dec
30
8 Oct 28 Oct 17 Nov 7 Dec
FINANCIAL SERVICES
FRENCH payment services provider
Ingenico’s shares fell yesterday after a
takeover offer from a US buyer was
scuppered by opposition from its top
shareholder, state-backed defence
group Safran.
Safran, 30 per cent owned by the
French government, holds 22.5 per
cent of Ingenico.
It blocked the €1.44bn (£1.22bn)
offer as a result of political pressure
to prevent the company passing into
foreign hands, analysts said. French
industry minister Eric Besson said it
was a “strategic” business. Shares
closed six per cent off at €26.05.
 12 Focus on Ladbrokes CITYA.M. 21 DECEMBER 2010

ANALYST VIEWS: IS LADBROKES ON A WINNER WITH 888? By Philip Waller

SIMON DAVIES| Collins Stewart NICK BATRAM| PEEL HUNT

“ We believe that a 70p per share offer

should be a slam dunk for [888] investors, but
see significant regulatory risk to a successful
transaction given that 888 has not procured a
non-prosecution agreement with the United
“ 888 and Ladbrokes need a deal. For
shareholders of the former, the only question is
whether to hang on for a bid or sell now. We feel
a competing offer is unlikely. But 888 is no
stranger to disappointment and Ladbrokes’ share-

” ”
States Department of Justice, which rep- holders may question if it is backing the
resents a potential poison pill. right horse.

SIMON FRENCH| PANMURE GORDON

“ Clearly a significant opportunity for the combined business lies in cost reduction. A significant element of

”
Ladbrokes’ cost base is from licensing software from Microgaming. 888 has developed its own proprietary technology
which could be used across the combined group when Ladbrokes’ current agreement with Microgaming expires.

| PROMOTION Ladbrokes boss

Richard Glynn
has 888 in his
sights

Picture: REX

Ladbrokes to
Power
The
Hundred
bid for online
TELL US YOUR TOP 3 CHOICES
FOR THE POWER HUNDRED 2011
2011 gaming firm
WIN ONE OF 7 PAIRS OF FLIGHTS 58p yesterday, while Ladbrokes stock
▲

TO ANY CITYJET DESTINATION*
The Power Hundred 2011, published on
22 December in City A.M., will highlight all
those who will be calling the shots in the City in
2011, whether they be bankers, lawyers, chief
executives or hedge fund managers.
FOR YOUR CHANCE TO WIN, SIMPLY TELL US YOUR TOP 3 CHOICES FOR THE POWER HUNDRED. A NEW WINNER WILL BE CHOSEN EACH DAY.
WHO WILL TOP OUR EXCLUSIVE CLUB THIS YEAR?
Go to www.CityJet.com/cityam
to submit your entries and for full
terms and conditions.
LEISURE
BY PHILIP WALLER
BETTING firm Ladbrokes is in talks
Two years ago, the Power Hundred was with 888 about a potential £240m
takeover bid that sent shares in the
dominated by those involved in rescuing the online gambling group soaring.
banks. This year's list will have a different Britain’s biggest bookmaker and
888 both confirmed weekend media
complexion, with dealmakers and successful speculation about the possible tie-up,
business leaders in the ascendancy. saying they were in “very preliminary
discussions”, although they declined
to give details.
Ladbrokes, led by chief executive
Richard Glynn, is thought to be keen
on expanding its online operations,
which while being successful are not
believed to have grown as much as
the bookmaker would have liked.
In August, 888 scrapped its divi-
dend, preferring to keep cash after a
weak economy and competition from
soccer’s World Cup sapped appetite
for poker and hit its first-half profit.
Shares in 888 rose 18 per cent to
closed down 1.2 per cent to 126p.
Ladbrokes said: “There can be no
certainty that these discussions will
ultimately lead to an offer being
made for 888. Further announce-
ments will be made as appropriate.”
The move by Ladbrokes, which has
2,700 betting shops, would represent
the latest move towards consolida-
tion of the gaming industry after
PartyGaming and bwin announced
their merger in August.
Ladbrokes and 888 held talks four
years ago but aborted them due to
Ladbrokes’ concerns over the threat
of possible retrospective legal action
linked to 888’s activities in the US
prior to the industry being outlawed
in 2006.
Unlike rivals PartyGaming and
Sportingbet, 888 has yet to strike a
deal with US authorities to give it
immunity from prosecution, which
one broker said could scupper a bid.

Don’t forget to pick up City A.M. on 22 December to check out who's up, who's down, which banker is
pulling the best deals, who has entered our exclusive club and who has dropped out of it. GARRY LEVIN
*from London City Airport, excluding Milan Linate. Terms and conditions apply EVOLUTION
SECURITIES
To celebrate this year’s list, CityJet, City A.M.’s partner for the Power
Hundred 2011, is giving away one pair of flights each day for 7 days in the run GARRY Levin at Evolution Securities
up to the list. CityJet is a subsidiary of one of the largest airlines in the world and Andrew Burnett at Panmure
Gordon are joint brokers for 888
and offers a choice of over 480 flights a week to 14 major European and UK while Deutsche Bank and Greenhill
advise Ladbrokes.
business centres from London City Airport. With just a 15 minute check-in Garry Levin left his role as man-
time - the shortest of any UK airport - CityJet are the smartest choice for aging director in corporate finance
at KBC Peel Hunt earlier this year to
time-conscious business and leisure passengers in London. join rival Evolution Securities as
head of its equity corporate finance
division, a role he formally took up
in April 2010.
Before working for KBC Peel
Hunt, he was joint chief executive
of broker Altium Capital between
2002 and 2007, having started his
career as a solicitor.
Andrew Burnett, who also acts as
a broker for 888, is an executive
director at Panmure Gordon & Co.
He was previously head of mergers
& acquisitions at Empire Online,
director of corporate finance at
Numis Securities, research director
at Merrill Lynch International, assis-
tant director at Charterhouse
Tilney and research analyst at
County Natwest. He studied at the
University of St Andrews.
CITYA.M. 21 DECEMBER 2010
Coalition rejigs
high speed line
▲
TRANSPORT
BY PHILIP WALLER AND DAVID CROW
THE government has caved in to pres-
sure from Conservative backbenchers
by changing the planned route of the
UK’s new high speed rail line from
London to Birmingham.
Transport secretary Philip
Hammond said the changes would
“significantly mitigate” the impact of
the 250mph trains on towns and vil-
lages bordering the railway.
The proposed line passes through
the constituencies of several Tory MPs,
including those of Welsh Secretary
Cheryl Gillan and Andrea Leadsom, MP
for South Northamptonshire, who
questioned whether the proposals rep-
resented value for money.
Leadsom said: “My overriding belief
is this is wrong. The UK is simply too
small, hilly and contoured to cope with
a 250mph juggernaut.”
Hammond insisted the scheme
would bring parts of the country closer
together by reducing journey times to
and from London.
But he acknowledged that some
Philip Hammond is spearheading the rail project
News 13
along the preferred route may suffer
falls in the value of their homes and
said the government was considering
compensation.
Hammond said engineers would
reduce the environmental impact of
the railway line by running it through
tunnels and cuttings.
The coalition has changed about half
the plan originally put forward by the
body charged with designing it, HS2
Ltd.
A line between London and
Birmingham and a connection to the
Channel Tunnel rail link – known as
HS1 – will be built first, with a y-shaped
network stretching to Manchester and
Leeds to be built later, as well as a
branch to Heathrow Airport.
Track and station operator Network
Rail said the new line was needed to
relieve congestion on the existing West
Coast main line and provide extra
space for passenger and freight trains.
The Confederation of British
Industry said it backed the route cho-
sen by ministers because it would bring
more benefits for the economy and bet-
ter connections for big cities.
Picture: Micha Theiner/City A.M.
 14 News CITYA.M. 21 DECEMBER 2010

Nasdaq OMX in buyback

bond sale, the US-based company said Investor AB, the holding company for

▲
FINANCIAL SERVICES
BY HARRY BANKS
EXCHANGE operator Nasdaq OMX
kicked its buyback plan into high
gear with a deal to repurchase 11.5
per cent of its outstanding shares
from Borse Dubai for $497m
(£320.4m) yesterday.
The repurchase of 22.8m shares
Nasdaq OMX chief Robert Greifeld said the buyback was “opportunistic” Picture: REUTERS will be funded by a proposed $370m
yesterday.
Nasdaq OMX said it agreed to a
price of $21.82 per share for the buy-
back, below its closing price of $22.53
on Wednesday.
The deal will help Borse Dubai
meet its debt obligations, Nasdaq
OMX said.
It said Borse Dubai would also sell
about 8m Nasdaq OMX shares to
Sweden’s Wallenberg family.
After the transactions with Nasdaq
OMX and Investor AB, Borse Dubai’s
holdings in Nasdaq OMX will total
about 30m shares.
The plan “allows us to be oppor-
tunistic and accelerate our share
repurchase plans,” Nasdaq OMX chief
executive Robert Greifeld said in a
statement.

Genzyme in AT&T to pay

push for a Qualcomm
higher bid 3G

Cash: 20719.24
Margin: 560.00
13:05

Markets
Unrealised P&L: 92.70
Total Position: 20092.70
$1.9bn in deal
List One Long name... List Three
Sell Buy Change Status
UK 100 Rolling Spread
>
▲

▲
PHARMACEUTICALS TELECOMS
Trade
4917.0 4919.0 +45.2
Wall Street Rolling Spread
Trade
>
BY HARRY BANKS 9599 9605
US SP 500 Rolling Spread
+24
BY HARRY BANKS
Trade
1034.6 1035.2 +4.8 >
GENZYME which is fighting off a hos- Trade
US Tech 100 Rolling Spread
1644.4
884.8 1647.4
885.2 +6.6
-15.0 > AT&T plans to buy wireless spectrum
tile $18.5bn (£11.2bn) bid from Sanofi- Trade
Germany 30 Rolling Spread
5538.5 5540.5 +67.0 > from Qualcomm for $1.93bn
Aventis, is taking another stab at Trade
US Crude Oil Oct 09 Spread
1644.4
884.8 1647.4
885.2 +6.6
-15.0 > (£1.24bn) and boost its 4G network,
persuading investors that its experi- Trade
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>
aiming to counter criticism over
16346 16350 +61
mental multiple sclerosis drug is 5
iPhone service quality and a threat
worth more than Sanofi’s projec- from rivals like Verizon Wireless.
tions. AT&T is the sole US carrier for
Genzyme, a US-based biotech com- Apple’s iPhone, but smaller rivals like
pany that makes drugs for rare dis- Sprint Nextel and Clearwire have
eases, maintains that its Campath been adopting 4G, a new wireless
drug could generate peak annual standard that enables better Internet

SPREAD
sales of $3.5bn.
France’s Sanofi sees peak annual
sales closer to $700m. The discrepan-
cy is central to Genzyme’s argument
that it is worth more than the $69 a
share being offered by Sanofi.
To break the deadlock, Genzyme
and Sanofi advisers have discussed
using contingent value rights (CVR) in
a potential deal structure. The rights
would give Genzyme investors an
extra payout if the drug reached cer-
tain targets.
BET N W
“I think that’s the way it’s going to
go,” said William Tanner, an analyst
at Lazard Capital Markets. “I imagine
there will be a figure in the low $70s
with an earn-out based on how this
drug actually does.”
Sanofi’s hostile tender offer expires
on 21 January. Sanofi had extended
that deadline earlier this month to
buy time for an agreement, though it
has not ruled out more aggressive
options, including a proxy battle for
Genzyme.
Few analysts believe that Campath,
which is already sold as a cancer treat-
ment and known generically as alem-
tuzumab, will generate the kind of
sales projected by Genzyme.
Independent market research group
BioMedTracker has forecast Campath
sales of about $1.6bn in 2019.
Genzyme first presented its argu-
ment for a higher value at an investor
event in New York two months ago.
access including video.
It is the sort of wireless bandwidth
AT&T desires – and will go with yes-
terday’s deal – given the strain iPhone
has put on its existing network. At
times, customers in cities like New
York and San Francisco have com-
plained of dropped calls and slow
Web connections.
AT&T's move also comes as Verizon
Wireless, the venture of Verizon
Communications and Vodafone
Group, has also adopted 4G service
and is widely expected to gain rights
Get Spread Betting on your iPhone™ to sell the iPhone in 2011.
now from just 10p per point* The 700 megahertz (MHz) airwaves
are considered valuable because they
travel long distances and can pene-
trate thick walls. The license covers
more than 300m people in the United
Spread betting can result in losses States, the companies said in a joint
that exceed your initial deposit. statement.
In 2007, AT&T bought wireless air-
wave licenses in the 700 MHz frequen-
cy band from privately held Aloha
* 10p offer available to new account holders for first 8 weeks. Partners LP for about $2.5bn.
For San Diego-based chipmaker
Qualcomm, the sale will mark the
end of its FLO TV business, its mobile
020 7150 0499 television service that never took off.
www.finspreads.com It had said in July that it would
examine its strategic options for the
business, and announced in October
iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc.
that it was suspending sales. It was
trying to sell the spectrum and was in
talks with wireless operators includ-
ing Verizon Wireless.

Fiat in crucial week of Italian union talks Google delays its TV sets
to build top-range SUVs if unions time unions were split, with some TV products at the Consumer
▲

AUTOMOTIVE
BY HARRY BANKS
ITALIAN carmaker Fiat has entered
a crucial week of talks over the
future of its historic Mirafiori plant
ahead of a self-imposed Christmas
deadline to decide whether to stick
to planned investments.
Fiat unveiled a plan at the end of
November to invest more than €1bn
(£840m) in its Turin Mirafiori plant
TECHNOLOGY
agreed to more flexible shifts. ready to sign the deal, some asking Electronics Show in Las Vegas in early
The plan was part of chief execu- for more time and the left-leaning GOOGLE has asked manufacturers to January.
tive Sergio Marchionne’s “Fabbrica Fiom union against it. delay the launch of TV sets based on Google did not immediately reply
Italia” project under which Fiat may “We are not against a separate the internet company’s software. to an email seeking comment.
invest €20bn in loss-making Italian contract for the car sector,” said Google sent out word to some hard- TVs with Google’s software let
plants to boost productivity. Luigi Angeletti, secretary general of ware makers last week asking them viewers surf the Web directly from TV
However, talks between Italy’s top moderate trade union Uil said yes- not to announce additional products sets. Apple has a competing device,
industrial group and unions over a terday. yet, saying the delay may allow the Apple TV, which allows users to watch
plan to relaunch Mirafiori stalled “But drafting takes time and we company to improve its software. their iTunes collection on TV.
over a labour contract dispute. need to reach a deal on Mirafiori by However, Samsung Electronics will The initial Google TV devices are
Union representatives said at the the end of the week.” go ahead with its launch of Google offered by Sony and Logitech.
CITYA.M. 21 DECEMBER 2010
Demand for mortgages and supply of credit remain constrained
ANALYSIS l Mortgage lending over the decade
400 £bn
350
300
250
200
150
100
50
Source: The Council of Mortgage Lenders
0 uing flat market,” said CML economist
2001 2003
Red tape stunting
UK factory exports
UK ECONOMY
▲
BY JULIAN HARRIS
BRITAIN’S manufacturers are
being held back from lucrative
export markets, the British
Chambers of Commerce (BCC) said
yesterday.
More than one in four manufac-
turers does not export at all, and 82
per cent of industry respondents
identified export controls as a bar-
rier to trading overseas.
“Overly zealous export control
rules can stand in the way of rea-
sonable trade,” the report states.
It calls on Vince Cable to deliver
his pledge to reduce “onerous busi-
ness taxes, red tape which suffo-
cates small firms, and a slow
oppressive planning regime.”
Relapse for consumer confidence in
the Eurozone, as trade deficit grows
▲
EUROZONE ECONOMY
HOPES for a retailing resurgence
across the Eurozone took a hit yes-
terday, with news that consumer
confidence has dropped more
sharply than expected.
In November the confidence
index rose to a 35-month high, yet
appears set to drop in December,
according to the European
Commission’s “flash” reading.
The full reading for the month
will be published on 6 January.
The drop was the first since May,
when problems in the single cur-
2005 2007 2009
Year
Many small and medium sized
businesses say “the needs of big
business are taken into account
when the government is creating
regulation,” harming their own
prospects.
And tax credits to encourage
research and development (R&D)
are unnecessarily complex and too
prescriptive, also deterring small,
innovative companies, the BCC
found.
The UK spends half a per cent
less of its GDP on R&D compared to
peer countries.
The education system is also fail-
ing to provide young people with
the necessary skills, the report
found.
And banks should be “more
adept at serving the specialised
rency’s peripheral states previously
reached a peak.
“Consumer spending has been a
weak link in the Eurozone’s eco-
nomic recovery,” said Howard
Archer of IHS Global Insight. “Yet
retail sales volumes rose by 0.5 per
cent in October, which was the best
performance since May -- so this
relapse in consumer confidence is
disappointing.”
Meanwhile, the Eurozone’s trade
deficit increased considerably
beyond the expectations of ana-
lysts in October.
The deficit of €9.8bn (£8.3bn) was
Mortgage lending
slumps to lowest
point for a decade
MORTGAGES
▲
BY JULIAN HARRIS
MORTGAGE lending has sunk to its
lowest level since 2000 for five consec-
utive months, it was revealed yester-
day.
In November lending dropped by
five per cent to £11.1bn compared to
the previous month, according to the
Council of Mortgage Lenders (CML).
A huge 10 per cent drop from last
year’s November figures is partly
accounted for by a rush to seal proper-
ty deals in November 2009 before
stamp duty concessions expired.
Along with seasonal factors, the
stamp duty changes make the drop
appear worse than it is – yet the news
still “reinforces the picture of a contin-
Bob Pannell.
Gross mortgage lending for next
needs of manufacturers,” it said.
Yet British manufacturing was
the seventh largest in the world in
2009.
Output, productivity and value
have increased since the 1980s,
despite a fall in employment in the
sector.
The UK has “a strong interna-
tional position in many higher
value areas such as pharmaceuti-
cals and aerospace,” the BCC said.
And manufacturing has become
the economy’s success story this
year. In the third quarter the sector
was 5.8 per cent up on the same
time in 2009, the government
revealed this month.
Yet the industry still “needs to
rediscover its trading spirit,” said
the BCC’s David Frost.
up from €9.7bn (£8.2bn) in
September.
Deficits in current transfers,
income, and goods were only part-
ly offset by a surplus in services.
In Germany, producers prices
rose slightly more than expected,
up 0.2 per cent in November com-
pared to the previous month – and
4.4 per cent higher than last year.
Food inflation led the way,
increasing by one per cent on
October.
“Pipeline pressures in the food
chain keep building up,” said Fabio
Fois of Barclays Capital Research.
year will level out at around £135bn,
he said. Prior to the credit crunch,
lending reached £363bn in 2007.
The Bank of England has shown
mortgage approvals levelling down at
around 45,000 per month, for
September to November. Nationwide
and the Halifax both showed slight
falls in house prices for November.
“House prices will not crash but will
trend down gradually to lose around
10 per cent from their peak 2010 levels
by the end of 2011,” said Howard
Archer of IHS Global Insight.
Tight credit continues to hold back
the housing market, and some com-
mentators fear a rise in interest rates
could further deter buyers.
But low rates, low prices and high
rental yields make the market “a great
opportunity for anyone who is able to
secure a mortgage,” said David
Whittaker of Mortgages for Business.
NEW
YEAR’S
E VE
2010
Escape the crowds in central
London and make New Year’s
Eve 2010 one to remember
with a private fireworks
display at midnight.
TICKETS ARE £125 (£115 FOR MEMBERS)
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E: victoria.l@roofgardens.virgin.com
T: 0207 368 3960
Economics 15
NEWS | IN BRIEF
Tube strike to hit west end sales
London’s retailers could be severely
affected by tube strikes on Boxing Day,
the British Retail Consortium (BRC) has
warned. Almost one fifth of retail spend-
ing takes place in the capital, providing
380,000 jobs, they said. And the strike
could damage the industry at a crucial
moment, as shops try to tempt cus-
tomers ahead of the VAT rise in the new
year. “Everyone involved in the tube driv-
ers’ dispute needs to recognise the
importance of London retailing and the
damage disruption on this scale will
cause,” said the BRC’s Stephen Robertson.
Hungary Bank continues its feud
The central bank of Hungary raised
interest rates by a quarter of a per cent
yesterday, bringing the rate to 5.75 per
cent. The hike was attributed to above
target consumer price index (CPI) infla-
tion, which hit 4.2 per cent in November.
Yet analysts say the rise signals an
increase in tensions between the Bank
and the government, which continues
with exceptionally high taxes and
“unsustainable” fiscal policies.
UK state to learn from industry
Up to £30bn can be saved from govern-
ment spending on infrastructure, the
Treasury announced today. “By working
with industry we can identify ways to
save money for them and the taxpayer,”
said chief secretary Danny Alexander.
YOUR TICKET INCLUDES:
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• A mini bottle of Moët
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• A selection of
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welcome canapés until 9pm
• Live music in the Marquee
• Complimentary snack from
the BBQ
• Three of London’s top DJs
in the Clubhouse
• Breakfast nibbles between
3am and 4am!
 16 News
Russia tycoon
creates new
potash giant
▲
MINING
BY HARRY BANKS
A RUSSIAN billionaire moved yester-
day to create the world’s second-
largest potash miner by uniting
Russia’s top two producers, Uralkali
and Silvinit, in a $1.4bn (£900m) deal.
Uralkali, which like Silvinit is effec-
tively controlled by Russian mining-
to-banking tycoon Suleiman Kerimov,
offered to buy rival Silvinit for cash
and shares.
Uralkali’s offer for 20 per cent of
Silvinit, or 1.57m ordinary shares is at
$894.5 per share, which compares
with the $940 price on Moscow’s dol-
lar-denominated RTS exchange. The
total cash price would be $1.4bn, both
firms said.
The merger of the two companies
will then be completed through a
share swap.
Shares in Silvinit fell nine per cent
in Moscow on the news, while
Uralkali stock added around two per
cent.
Analysts at Uralsib estimated that
the deal valued Silvinit at a 35 per
cent discount to Uralkali. They said it
was far from a merger of equals.
“They [the terms] don’t look very
good for Silvinit, it values the busi-
ness at about 40 per cent discount to
Uralkali... That’s in the interest of
Uralkali shareholders,” said Bob
Kommers, analyst at Deutsche Bank.
“They are buying a similar asset at
a significant discount, which is very
attractive [for Uralkali]. There are
some operational synergies, which
are in line with our estimates. Those
are the main benefits.”
Uralkali said the deal had already
gained the support of 53 per cent of
its ordinary shareholders and from
67 per cent of Silvinit’s.
FAST FACTS | URALAKI / SILVINIT
● The new company will be one of the largest
potash makers in the world, second only to
Canada’s Potash
● The new company will have a market capital-
isation of around $24bn (£15.5bn)
Novartis boss Joe Jimenez wants to expand into emerging markets
Novartis to build first
factory in St Petersburg
PHARMACEUTICALS
▲
BY HARRY BANKS
NOVARTIS will invest $500m (£322m)
in Russia over the next five years,
strengthening its position in the
country as it joins rivals looking to
get around tough rules on imported
medicines.
The Swiss drugmaker plans to
build a new pharmaceutical manu-
facturing plant in St Petersburg as
part of a partnership, which will
Picture: REUTERS
focus on local manufacturing, R&D
partnerships and public health devel-
opment, Novartis said.
“The ongoing partnership with
Russia enables us to expand our com-
mercial presence in a key emerging
market,” Novartis chief executive
Joe Jimenez said in a statement yester-
day.
Emerging markets, such as Russia,
are the new battleground for phar-
maceutical companies as sales stall in
Western markets.
CITYA.M. 21 DECEMBER 2010
Telenor blocks
Vimpelcom’s
Weather bid
TELECOMS
▲
VIMPELCOM’S $6.6bn (£4.24bn) bid
for telecoms assets owned by Weather
Investments is hanging by a thread
after Norwegian shareholder Telenor
said yesterday it would not back the
deal.
Telenor’s opposition to the deal --
which would see Vimpelcom taking a
controlling stake in Egypt’s Orascom
Telecom and all of Italy’s Wind --
means that all three independent
Vimpelcom directors must back the
long-running transaction.
The deal, which has been backed by
the Kremlin, would make Russia’s
Number Two mobile phone operator
the world’s fifth largest.
Analysts said the move undermines
the long-term stability of Vimpelcom
by once again pitting Telenor against
its other major shareholder Altimo --
the telecoms arm of Russia’s Alfa
Group run by billionaire Mikhail
Fridman.
The two owners fought protracted
board and courtroom battles over
strategy for years before a 2009 resolu-
tion.
Telenor spokesman Dag Melgaard
said the deal did not make “strategic
or financial sense” for shareholders.
Telenor has 36 per cent of voting
rights in Vimpelcom and three of the
nine Vimpelcom board members.
CITYA.M. 21 DECEMBER 2010
Is UK facing
a winter of
discontent?
YES
MARK SERWOTKA, PCS
A
T yesterday’s meeting with
David Cameron, I raised the
issue of public sector pen-
sions. Mr Cameron said he
was “happy” to look at a process for
future discussion, but on the specif-
ic issue of the change from the RPI
to CPI index for public sector pen-
sions he said flatly it was non-nego-
tiable.
It is always worth unions talking
to the government of the day – for
my union, representing civil ser-
vants, it is a necessity because the
government is our employer.
Our first choice is always to nego-
tiate and come to an agreement.
But faced with a refusal to talk on
an issue that represents a massive
cut in the value of pensions and is
of major concern to public sector
NO
DAVID BRADLEY, DLA PIPER
T
HE annual reference to a win-
ter of discontent is being rolled
out again, but this year it
appears to be gaining some
traction. According to Len McCluskey
the newly appointed leader of the
UK's largest union, Unite, protesting
students can act as a role model for
workers fearing the consequences of
government cuts to the public purse.
Recent surveys, including one of
over 500 employers by DLA Piper, sug-
gest there is a concern about the level
of disruption in the next 12 months
but what we are seeing here is a call
to arms at a political level and across
a number of different employers. This
may be easier said than done.
The first thing to keep in mind is
the vast difference between “protest”
and “strike” action. Strikes are a
breach of contract for employees and
a civil wrong by trade unions, both of
which could lead to serious employ-
ment and financial consequence
unless excused by regulations around
balloting and notification.
The premise for any form of indus-
trial action is that it arises from a gen-
uine trade dispute. To gain exemption
from legal action any union(s) seek-
ing to co-ordinate strikes across vari-
ous employers will have to show
News 17
Unions threaten a
return to 1979
Picture: REX
workers, you have to question the
intentions and the value of meet-
ings like this one.
If Cameron’s government will not
agree to meaningful negotiations,
then all the cordiality and the fine
words are for nothing, and have the
effect of inviting industrial and
legal action.
The key issue for us has always
been, what must be done to oppose
the government’s cuts and how to
unite not just trade unions but
other campaigners and communi-
ties.
The Unite union’s general secre-
tary Len McCluskey called it right
when he said the cuts are politically
motivated and we have to oppose
them all. We can not and will not
allow ourselves to be drawn into
accepting cuts to welfare, attacks on
public services, mass job losses, and
cuts to pay and pensions, with the
occasional promise of tea and a cosy
chat in Downing Street.
The coming year will undoubted-
ly see more protests on our streets
and PCS is committed to playing its
part to help build on what is
already a promising movement
against the cuts.
Mark Serwotka is general secretary of
the Public and Commercial Services
Union
“cause”, not in general but specific to
their members with their employer.
Whilst this threshold is capable of
being met against a backdrop of
redundancies, unions will need to be
careful to pay attention to the detail
and the “real reason” for the dispute.
“Political” strikes are not legal under
UK law and could expose unions to
damages claims or employees to
action for breach of contract.
Unless the unions fund (it is not
cheap) and organise protected strike
action and negotiate the complexity
of the law, what are they left with?
Protest? All well and good and possi-
bly quite effective, but workers are
simply not as flexible as students
when it comes to organising the time
to do so. Neither do students suffer
deductions in pay and disruption to
benefits as a consequence of their
actions. Employers will be well
advised to communicate with work-
ers their policy relating to time off
and absence if there is a groundswell
of threatened protest and action.
The second key issue to bear in
mind is that public sector disputes
are often incapable of being resolved
between trade union and employee
on one side and the employer on the
other. Why? Because the employer is
subject to a funding decision and
process that is different from the pri-
vate sector. The “real” dispute is with
the funder: the government. The
unions cannot negotiate with the
real decision makers. This brings us
back to the distinction between
protest and lawful and protected
industrial action and the truth is that
one is far easier to organise than the
other, and with far fewer conse-
quences for all those involved.
David Bradley is a partner and head of
employment law at DLA Piper LLP
 18 News CITYA.M. 21 DECEMBER 2010

Desire presses
Lloyds sells BEST OF THE BROKERS
ANALYSIS l Lloyds banking group
80 p
LLOYDS BANKING GROUP
RBS rates the bank “buy” but has reduced on with drilling
salt group to
its target price to 105p from 120p, after
75

70
66.87
20 Dec
Lloyds last week revealed a larger than
expected impairment to its portfolio in
in Falkland Isles
Ireland. The broker adds that the bank’s
65 underlying earnings power generation

soda ash firm

remains unaffected, but that it has down- OIL & GAS

▲
60
graded some profit estimates up to 2012 FALKLAND Islands oil explorer Desire
because of the exposure to Ireland. Petroleum has started drilling a new
20 sep 8 Oct 28 Oct 17 Nov 7 Dec
well after suffering disappointment
with its last attempt to strike oil in
ANALYSIS l Supergroup SUPERGROUP the South Atlantic.
1,700 p Execution Noble maintains its “sell” rating Desire has begun drilling its
INDUSTRIALS ations in Durban in South Africa and Dawn/Jacinta 25/5-1 well in the North
▲

Kenya-based Magadi Soda, which is

BY PHILIP WALLER
PRIVATE equity group Lloyds
Development Capital is selling the
parent company of British Salt to
chemicals group Brunner Mond in a
deal believed to be worth £93m.
Lloyds is off-loading Cheshire Salt
Holdings (CSH) in a deal that the two
sides expect to complete by the mid-
dle of January next year.
The companies said the move will
enable Brunner to use British Salt,
which produces about half of the
UK’s pure salt used in food processing
to chemicals production, to comple-
ment its own operations in manufac-
turing bulk products.
British Salt is based in Middlewich
and employs 125 people.
Brunner Mond, owned by India’s
Tata Chemicals, is based in the UK,
where it makes soda ash, sodium
bicarbonate, calcium chloride and
associated alkaline chemicals at its
sites in Northwich, Cheshire.
It also has soda ash and other oper-
Africa’s largest soda ash producer.
Brunner Mond managing director
Martin Ashcroft said: “British Salt has
an excellent reputation and we will
be able to share with each other our
manufacturing and processing expe-
rience which will help to accelerate
our growth.
“There will be benefits for both
companies with new opportunities
with customers around the world
and it provides Brunner Mond with
more opportunities in non-cyclical
markets in sectors such as food and
water treatment.”
British Salt chief executive Bill
Thompson said: “Given the strategic
alignment of our businesses, as well
as the significant combined expertise
and resources, this acquisition pro-
vides a major opportunity to achieve
growth in our chosen markets and to
add value to our existing customers.
“We now look forward to the next
chapter of our growth with Brunner
Mond and the Tata Group.”
1,600 with a reduced fair value price of £10, Falkland Basin.
down from £11.65. The broker believes the
1,500 The group said it expected to take
1,334.00 negative reaction to the firm’s interim about a month to drill the well and
1,400 20 Dec
results last week is the start of a longer- would make more announcements
1,300 when appropriate.
term price correction, on the back of signif-
1,200 The group’s shares soared and then
icant risks within the Supergroup growth tumbled earlier this month after it
1,100 model. The broker has cut its earnings per said it thought it had struck oil at its
share estimate for 2011 by 18.6 per cent. Rachel North well, only to have to
20 SEp 8 Oct 28 Oct 17 Nov 7 Dec announce later that the well con-
tained mainly water.
ANALYSIS l Research in Motion RESEARCH IN MOTION Desire said it had learned lessons
from the failed well and would press
66 C$ Nomura rates the owner of Blackberry
58.39 ahead with more exploration.
20 Dec “neutral” with a raised target price of $65 The group started the new well in
62
(£41.90) following last week’s results. The its wholly-owned Tranche I in the
broker has upgraded its earnings per share North Falkland basin on Saturday.
58
estimates for the quarter by 12 per cent Once finished, Desire will hand
over the Ocean Guardian rig to anoth-
54 thanks to higher sales and better margins. er explorer, Rockhopper, which will
It expects new product announcements in use it before returning it to Desire to
50
the new year, including the launch of the drill a well at a location still to be
PlayBook tablet computer, to drive the decided.
4 Oct 25 Oct 15 Nov 6 Dec Controversy has dogged drilling by
share price further. Desire and other UK oil firms amid
To appear in Best of the Brokers email your research to notes@cityam.com opposition to their operations from
the Argentinian government.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Juliet Samuel in association with

Canaccord Genuity be in charge of building market share Klaus Wülfing.

Smith & Williamson
Geoff Everett (pictured) has been appointed as
London head of private client tax services for
independent financial services firm Smith &
Williamson. In addition, Joss Dalrymple has
been appointed as head of private client tax
services nationally. Dalrymple will be oversee-
ing communication between offices while
Everett will replace her in her previous role as
head of the division in London. Everett is now
leading a team of 75 people in the London
office, based in Moorgate.
The global capital markets division of
Canaccord Financial has added Gareth
Evans as a senior IT and technology
analyst. Evans has twice won stock pick-
er of the year award by StarMine. He
joins the firm after a decade at Investec
and has formerly worked at ABN Amro.
He will begin at Canaccord in March.
Ernst & Young
The financial services firm has appoint-
ed Jane Cannon as a partner in its
defence and security practice. She will
and finding new opportunities in the
market.
She moves to the company from
Lockheed Martin and has also worked
at QinetiQ and BT. Overall, Ernst &
Young’s advisory practice has now
added 11 new partners in the last year.
Perella Weinberg Partners
The independent financial services firm
has hired six new partners. Two will be
based in London on the corporate advi-
sory practice: Graham Davidson and
Davidson has worked at Perella
Weinberg since 2006, before which he
was a vice president at Merrill Lynch.
Wülfing joined the firm in 2007, when
he moved from Credit Suisse. The other
four partners will be based in New York.
XCAP Securities
The independent financial advisory had
appointed David Hargreaves as a mining
consultant and Austin McKelvie as a
mining and metals analyst. The hires
bring the company’s payroll to 50.

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

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 Markets&Investment 19

LONDON’S TOP 250

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 Name Closing Price Price Change 52wk high 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)Company (p) (p) (p) (p)

3i Group 330.75 2.25 330.75 250 COBHAM 203.25 4.50 276 192.25 John Wood Group 538.50 -3 541.50 293 Royal Bank of Scot 38.50 0.75 58 28.50
3i Infrastructure 118 -2 121.50 99.25 Colt Telecom 131 0.50 142.50 109 Johnson Matthey 2048 11 2048 1446 RSA Insurance Grp 124.75 0.50 136.50 114.75
A.B. Foods 1128 -5 1139 816 Compass Group 582.50 3.50 588.50 425 Jupiter Fund Man 305 2 310 180.25 SABMiller 2251 7.50 2251 1650
Aberdeen Asset.Man. 203 3 205 112.75 Cookson Group 639.50 0 640 367.50 Kazakhmys 1578 -5 1630 965 Sage Group 275 -0.75 289 220
Admiral Group 1561 10 1693 1114 Croda International 1577 8 1610 751 Kesa Electricals 164 -2.50 174 99.25 Sainsbury (J) 373.25 1 395 313
Aegis Group 139.50 -1.25 145.50 103.50 Daily Mail & Gen 561.50 3 567.50 414.25 Kingfisher 257 1.50 259 198.50 Schroders 1831 48 1831 1116
Afren 140 1 143.25 79 Davis Service 426.25 4.25 435 360.25 Ladbrokes 126 -1.50 162.75 123.50 Schroders NV 1440 42 1440 929.50
African Barrick Gold 593 0 670 503 De La Rue 849.50 0.50 1005 549.50 Lancashire 540.50 -1.50 647 424 Scot.& Sth. Energy 1200 15 1200 1010
Aggreko 1570 36 1685 882 Debenhams 70.75 -1.25 81 53 Land Securities 655 -2 696.50 545 Scottish Mortgage 702 0.50 705 475
Alliance Trust 374 2 374 293.50 Derwent London 1543 4 1605 1208 Legal & General 99 -0.25 106.25 69.75 SEGRO 295.25 0.75 352 250.25
Amec 1159 4 1159 733.50 Diageo 1196 16 1196 1000 Lloyds Banking Grp 66.75 0.25 77.50 46.50
Serco Group 587.50 -1.50 651 494.25
Amlin 396 -2 433 357.25 Dixons Retail 22.75 -1.50 38 22.75 Logica 128.25 0.75 148 101.75
Severn Trent 1452 16 1468 1072
Anglo American 3141.50 -8.50 3150 2254 Domino’s Pizza 560.50 5.50 560.50 293.25 London & Stamford Property Ltd. 130 -2 132
Antofagasta 1547 17 1560 761 Drax Group 370.50 11.25 444 326.25 110.25 Shaftesbury 445.75 -4.50 460 349.25
Aquarius Platinum 338.50 1 458 227 DS Smith 203.25 -1.25 210 104 London Stock Ex. 838.50 15.50 838.50 544 Shire 1516 -14 1567 1191
ARM Holdings 392 -2 414.50 172.75 Dunelm 528 -22 550 325.25 Lonmin 1889 16 2157 1355 SIG 123 0.25 137.75 90.75
Ashmore Group 345 2.50 383.75 218 easyJet 427.25 -7 496.50 348.50 Man Group 296.50 2.50 327.50 202 Smith & Nephew 656.50 1 696.50 537.50
Ashtead Group 164.50 -2 166.50 72 Edin.Inv.Tst. 446.75 -1.50 464.25 355.50 Marks & Spencer 373 -2.50 427.50 323.50 Smiths Group 1251 16 1285 975
AstraZeneca 2937.50 -3.50 3385 2732 Electrocomponents 268.50 0.50 279.50 161.75 Meggitt 369.75 4.75 369.75 251 Soco International 362 5.25 484.25 292
Atkins (WS) 712.50 -5 792.50 556.50 Enquest 138.50 4 146.50 89.25 Melrose 305.75 0.75 305.75 162 Spectris 1296 16 1296 705
Autonomy 1520 -23 1975 1271 Essar Energy 582 4.50 586 383 Mercantile Inv Tst 1074 8 1074 828 Spirax-Sarco 1960 -27 1987 1170
Aveva Group 1588 -12 1600 980.50 Eurasian Nat Res 999.50 7 1266 818 Michael Page 556.50 9.50 556.50 346.50 Spirent 150 -2 160.25 97.25
Aviva 390 4 423.50 294.25 Euromoney Inst. 689.50 -0.50 727 424.25 Micro Focus 406 -9 546.50 276 Sports Direct 154 1.25 154 92.25
AZ Electronic Materials SA (WI)298 2.25 301 249 Experian Group 813 -0.50 813.50 572 Millennium & Cop. 558 7 570 358.75 St James’s Place 268.50 -4.50 292 204.25
Babcock International 560 6.50 635 492.75 Ferrexpo 396.75 7.25 396.75 184 Misys 314.25 5 314.25 201.50 Stagecoach Group 208 -5.75 224 160.75
BAE Systems 327.50 2.50 388.75 294.75 FirstGroup 395.25 2.25 426 336 Mitchells & Butlers 350.50 -4.50 360 247.50 Standard Chartered 1752.50 18.50 1950 1351.75
Balfour Beatty 313.75 -0.50 314.25 229.75 For.&Col.Inv.Tst 305 -0.50 305.75 251.50 Mitie Group 232 -0.50 241 188.75 Standard Life 210.25 0.25 236 173
Barclays 261 1.25 383.25 255.25 Fresnillo 1547 9 1605 669.50 Mondi 485 1.50 557.50 323.75 Supergroup 1334 -27 1638 535
Barratt Development 85 0.50 142 70 G4S 252.50 -0.25 283.50 237.75 Monks Inv.tst. 356 -1.50 363 271 TalkTalk 168.25 2 168.25 108.50
BBA Aviation 215.25 0.75 217.25 156 Genesis E.m.f. 537 -0.50 542.50 399 Morrison (Wm) 264.50 0 306.25 257.50 Talvivaara Mining 560 4 581 342.50
Bellway 622 -9 826 511 GKN 217.25 0.50 217.25 102 Murray Int.Tst 944 5 944 720 Tate & Lyle 535.50 -1.50 544.50 388.75
Berkeley Grp Hldgs 886 -13.50 932.50 742 GlaxoSmithKline 1263 -2.50 1339.50 1095 National Express 242.50 -0.25 259.50 188 Taylor Wimpey 29.50 1.25 44 22.25
Betfair Group 975 -64 1550 975 Great Portland Est. 354 -0.50 364 279 National Grid 563 11 613.25 484.25 Telecity Group 480.50 -13.25 532.50 360
BG Group 1331.50 7 1333.50 984 Greene King 482.50 -9 491.50 376.25 Next 1968 -17 2344 1817
Templeton Emrg. 651 -2.50 685 471.50
BHP Billiton 2512 12 2524.50 1684.50 Halfords Group 450 -2 550 372.75 Northumbrian Water 335 2.75 361.50 252.75
BlackRock Mining 780 8.50 799 492 Halma 359 -0.75 366.50 223 Ocado Group 160 -0.75 170 123.50 Tesco 430 -3.25 454.50 377.50
BlueCrest AllBlue 171 1 174.50 153.75 Hammerson 421.50 2 434.50 336.25 Old Mutual 120 0 145.25 97.25 Thomas Cook Group 184.25 0.50 272 171.75
Booker Group 59 0.75 60.25 38.75 Hargreaves Lansdown 570.50 10 570.50 276.50 PartyGaming 212 -4.50 334.50 206 Travis Perkins 1013 -4 1017 664.50
BP 469 2 655.50 303 Hays 127.75 1.50 127.75 88.50 Pearson 1016 -1 1051 855 TUI Travel 237.25 -1.25 308.50 190
Brit Insurance 1040 2 1045 728 Henderson Group 130.50 0 151.75 112.75 Pennon Group 641 7 641 483 Tullett Prebon 375.75 1.75 417.25 262
British Airways 265.25 -5 286 184.25 Heritage Oil 425 1 581 296.75 Persimmon 409 -3.75 507.50 336.50 Tullow Oil 1251 16 1369 991.50
British Amer.Tob 2463 8 2464.50 1949.50 Hikma 816.50 -13 829.50 510 Petrofac 1551 38 1551 876.50 UK Commercial Prop 83.50 -1.50 85 72.75
British Empire Tst 484.50 -5.50 498.50 396.50 Hiscox 371.75 1 373.50 308.50 Petropavlovsk 1100 1 1365 852 Ultra Electronics 1672 16 1895 1265
British Land 525 9 525 418.25 Hochschild Mining 611.50 -3 658 234 Phoenix Group Hldgs 609.50 -12.50 758 557.50 Unilever 1969 -3 2015 1688
Britvic 488 3.50 518 381.50 Home Retail Group 192 -4.75 295.50 192 Premier Farnell 289 -2 304.50 171.50 United Utilities 586 0.50 628.50 488.25
Brown (N.) Group 296 -1.25 301.75 206.50 Homeserve 454.25 0.50 487.50 326.25 Premier Oil 1959 4 1959 1017 Utd Business Media 679 2.50 682.50 409.75
BSkyB 733.50 5.50 736 524.50 HSBC Holdings 656.75 1.25 740.50 596.25 Provident Financial 860 -5.50 974 728.50 Vedanta 2395 -27 2934 1839
BT Group 187 4.75 187 110 Hunting 710 -7.50 724 439.50 Prudential 671.50 1 671.50 487.50 Victrex 1512 -10 1522 796
Bunzl 728 4.50 777 616.50 ICAP 538 1 539.50 294 PZ Cussons 392 -1 409 234.75 Vodafone Group 170.25 0.25 175 129.50
Burberry Group 1132 2 1156 581 IG Group 513 -1 553 362.50 QinetiQ Group 132 1.50 167 96.75 Weir Group 1811 21 1861 695
C&W Comms 51 -0.50 63.75 44.25 Imagination Tech 377.50 1 441.75 215 Randgold Res 5600 -15 6655 4209 Wellstream Holdings 788 -5 793 436
C&W Worlwide 69.50 1 100 60.50 IMI 939.50 1 948 513.50 RDS ‘A’ 2069.50 -1.50 2100.50 1624 WH Smith 502 -5.50 523 398.25
Cairn Energy 420.25 1.50 493.25 318.25 Imperial Tobacco 1955 14 2154 1753 RDS ‘B’ 2065.50 -4 2081.50 1554 Whitbread 1801 -4 1812 1266
Caledonia Inv. 1880 -26 1906 1512 Inchcape 350.75 -0.25 368 237 Reckitt Benckiser 3599 22 3655 3037 William Hill 165.25 1 216.50 155.50
Capita Group 702.50 2 826 635.50 Informa 413.50 4.75 448 304.50 Reed Elsevier 528 0 563 460.50 Witan Inv Trust 508.50 3 508.50 410
Capital & Counties 147 0.50 157 100 Inmarsat 686.50 1.50 821 606.50 Regus 82.50 0.50 120 66
WOLSELEY 1968 9 1968 1205
Capital Shop Centre 420 2.25 420 301 InterContinental Htl 1249 15 1249 887 Renishaw 1306 32 1306 545
Carillion 371.50 1.25 371.50 273 Intermediate Cap.Grp 329.25 3.50 351 240.50 Rentokil Initial 98.25 0.25 138.50 87.75 WPP Group 786.50 3.50 786.50 572.50
Carnival 2801 37 2920 2037 International Pers Fin 361.50 6 362.75 183.25 Resolution 235 2 349 211.25 Xstrata 1455 5.50 1461.50 845.75
Catlin Group 364.50 -1.50 393 320 International Power 439 4 439 284.50 Rexam 331.75 5.75 346.75 276.50
Centamin Egypt 166.25 2.50 197 106.75 Intertek Group 1879 12 2000 1150 Rightmove 801 10.50 810 477.50 LONDON TOP 250 BY MARKET CAPITALISATION
Centrica 335.25 4.75 346 264 Invensys 351.75 0.50 351.75 230.25 Rio Tinto 4422 4 4505 2812
Charter 829 17 848.50 567 Investec 508.50 2.50 562 417.75 RIT Capital Partners 1228 24 1228 971.50 POWERED BY
Chemring Group 2859 -12 3663 2598 ITV 71.50 -0.50 74.25 48.25 Rolls-Royce Group 637 7 654.50 473.50
Close Brothers 852.50 2.50 861.50 664 Jardine Lloyd 603 1 609.50 459 Rotork 1802 41 1895 1158
www.digitallook.com

Utility firms lift FTSE 100 as US cheer sees S&P

cold snap drives power sales hit a two-year high
electricity and gas. January 2011,” said Daniel Harris, 0.4 per cent as some investors bet the

THELONDON The Met Office has warned of

more snow and ice in many parts of
head of dealing at H2O Market.
Mid cap Debenhams was 1.6 per THENEW YORK sector could be among the leaders
next year after a strong December.

REPORT REPORT
the country. cent lower, while Dixons Retail However, American Express tum-
Oil majors were higher as temper- dropped 6.2 per cent as traders bled 3.4 per cent to $42.50 after Stifel
atures in Europe and the US feared the weather would hit sales of Nicolaus downgraded the stock to
Northeast looked set to remain its big ticket items, which were “hold” from “buy.”

U U
TILITY stocks helped push below freezing this week boosting expected to pick up ahead of the VAT S stocks tacked on further gains Boeing also kept gains in check.
Britain’s top shares higher yes- heating fuel demand. rise in January. to push the S&P 500 to a two- The stock was down 2.7 per cent to
terday, as the UK’s near-Arctic Oils services firm Petrofac gained Back on the upside, Diageo rose year high yesterday, continuing $63.27 after the Seattle Times news-
conditions boosted demand 2.5 per cent, while temporary power 1.4 per cent as investors bet on stocks a steady upward march paper said a delivery delay could be
for energy, but British Airways toiled supplier Aggreko added 2.4 per cent. perceived as better able to endure investors believe will continue in announced for the plane maker’s 787
as the big freeze disrupted airline The snow and sub-zero tempera- harsh economic conditions, and as 2011. Dreamliner aircraft.
services. tures grounded flights across north- UniCredit lifted its rating on the Volume was light, as is expected The Dow Jones industrial average
The FTSE 100 closed up 19.86 ern Europe yesterday. drinks company to “buy” from through the rest of 2010. Investors dipped 13.78 points, or 0.12 per cent,
points, or 0.3 per cent, at 5,891.61. British Airways fell 1.9 per cent as “hold”. stayed with sectors that have led a to 11,478.13. The Standard & Poor’s
Meanwhile, the FTSE 250 closed the airline cancelled all short-haul Positive broker sentiment also sharp December rally, including 500 Index added 3.17 points, or 0.25
up 6.33 points at 11,433.11. flights out of Heathrow. buoyed InterContinental Hotels, up financials, energy and materials per cent, to 1,247.08. The Nasdaq
It touched a fresh intra-day year Mid cap peer EasyJet was off 1.6 1.2 per cent, with Numis Securities stocks. The S&P 500 is up 5.7 per cent Composite Index rose 6.59 points, or
high of 5,913.83 before falling away, per cent. upgrading its rating for the stock to for the month and 11.8 per cent for 0.25 per cent, to 2,649.56.
although trade was light as the mar- Retailers, which rely heavily on “buy” from “add”. the year. Energy shares led the way up as the
ket wound down for the Christmas the foot-fall in the lead up to “We have seen this year-end rally price of oil rose nearly one per cent in
holiday at the end of the week. Christmas, were trampled lower, ANALYSIS l FTSE refuse to give up any ground,” said choppy trading. Chevron added 0.4
5891.61
“If this winter wonderland contin- with Next and Marks & Spencer off 5,900 20 Dec Bucky Hellwig, senior vice president per cent to $88.88.
ues it’s not only good news for Santa, 0.9 per cent and 0.7 per cent respec- at BB&T Wealth Management in Amazon.com helped boost the
but an early Christmas present for tively, and Tesco down 0.8 per cent. 5,800
Birmingham, Alabama. Nasdaq on optimism the company
the utility companies too,” said Next was also hit by a downbeat The combination of improving eco- will benefit from improved holiday
Jimmy Yates, head of equities at CMC note from H20 Market, which repeat- nomic data, additional stimulus from spending. According to research firm
5,700
Markets. ed its “sell” rating. the Federal Reserve and the extension comScore, US online sales are up 12
Utility firms Centrica and “Our view is that the shares are of tax cuts was keeping equities in per cent to $27.5bn so far this season
National Grid were up 1.4 and 2.0 likely to suffer a continuing down- 5,600 demand, Hellwig said. compared with a year ago.
per cent respectively, as the freezing ward correction in the run up to the The financial sector, which has Shares of Amazon gained 3.2 per-
temperatures boosted demand for Christmas trading statement on 5 lagged the broader market, was up cent to $183.29.
20 Sep 8 Oct 28 Oct 17Nov 7 Dec
 20 Markets & Investment | Contracts for Difference
GOOD TIMES
FOR EQUITIES
MAY NOT LAST
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
D
ESPITE a couple of nasty dips earlier this
year, 2010 is ending on a high note for
equity investors. Worries over the
European debt crisis, concerns about
stubbornly high US unemployment and a crip-
pled housing market, and growing fears of infla-
tion in emerging markets have failed to inflict
serious damage to the upward trend. As we
head into the home straight, the bulls continue
to trample on the bears, and most investment
houses are calling for further gains in 2011.
But just how good has 2010 been for equi-
ties? In a crude overview of the past twelve
months, the US came out top. The Nasdaq is
up 18 per cent, while the Dow and S&P have
both risen around 10 per cent. The tech-heavy
Nasdaq outperformed as corporations pre-
ferred to invest in IT upgrades rather than
take on new staff. The German Dax 30 also
did well, rising 16 per cent thanks to its strong
manufacturing base and high productivity. The
UK’s FTSE 100 tacked on a respectable 7 per
cent, benefiting from the heavy weighting of
multinationals within the index – and it would
have done better were it not for BP’s disas-
trous performance. But other European
indices fared less well. The French CAC 40
looks likely to end the year down. The Italian
MIB has fallen 14 per cent and Spain’s Ibex is
off 18 per cent. Investors remain concerned
about the unresolved debt issues in the euro
zone.
Surprisingly, given how bullish many bro-
kers have been on the region, the major Asian-
Pacific indices failed to shine this year. The
Hang Seng is flat; the Japanese Nikkei is down
3 per cent while China’s Shanghai Composite
has fallen 11 per cent. For China and other
developing economies, the US Fed’s stimulus
has added fuel to their overheating markets.
A pick-up in inflation has led to fears that the
Chinese authorities will soon tighten rates
sharply. With GDP in developed economies still
pointing to a pathetically weak recovery,
investors may be relying too much on China. If
so, then investors in the US, UK and Europe’s
core could be overestimating the upside for
equities in 2011.
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CITYA.M. 21 DECEMBER 2010
Silicon valley is
being flooded
through by a
torrent of cash
America’s tech firms may be about to start
spending their reserves, says Daniel Knowles
C
ALIFORNIA itself may be on the per cent of the company’s market capitali-
brink of bankruptcy, but its most sation, pushing its share price up by about
famous Silicon Valley firms very 26 per cent. Though neither Apple or
much are not. By one estimate, the Google looks likely to start paying divi-
top 15 most capitalised technology firms dends, they may splash around some
have $316bn (£203.6bn) of cash and short money on acquisitions.
term investments racked up. According to Rogoff, it would make
Apple, now the world’s second largest sense for Apple to buy Adobe, a software
company by market capitalisation, has company. Google, for its part, has already
about $50bn in the bank. Google has been opening its wallet. Last month, it
$33bn and Microsoft has $43bn. That is
fuelling a wave of optimism about the pos-
sibility of share price boosting dividends, ANALYSIS l Total cash & short-term investments of tech companies
share buybacks, as well as expectations of a
flurry of mergers and acquisitions. Is it 40 $bn
time CFD traders joined in?
Certainly, it looks like an exciting time
for the technology sector. Ben Rogoff, fund
manager of the Polar Capital technology
trust, reckons that 2011 should see contin-
ued volatility among technology stocks. “It 30
is quite telling which firms have the cash
piles” he says, “it’s an indicator of how Microsoft
with it a firm is”.
Rogoff reckons that firms which have Apple
spent a large amount on acquisitions like Google
IBM and Hewlett Packard, have been 20
forced to do so to deal with a rapidly
changing industry, whereas firms like
Google and Apple have succeeded in gener-
ating innovation themselves, and so have
been able to hoard money. Traders might
10
want to stick with the wealthy companies Intel
then
HUGE BUYBACKS
That may be at an end now, however, as all
firms branch out. Texas Instruments Source: Capital IQ
announced a huge $7.5bn buyback of Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09
shares in September, or approximately 25
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free phone 0800 358 0864
gftuk.com
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Services Authority. CD03UK.129.120310
CITYA.M. 21 DECEMBER 2010
reportedly offered $6bn for Groupon, a
“social purchasing” site. It was refused,
partly due to the anti-trust concerns which
have intensified around Google of late.
Microsoft is another large firm which
may embark on a spending spree. Over the
last year, the technology giant has seen its
share price slip back by 8.26 per cent, suf-
fering from its dependence on relatively
stagnant business software revenues. It
may choose to make some spectacular
acquisitions so as to reinvent itself and
find new revenue streams.
PARADIGM SHIFT
According to Sean Murphy, a partner at
Norton Rose who specialises in the tech-
nology sector, the IT industry is undergo-
ing a paradigm shift.
“Sections of the technology sector are
converging and it’s all becoming increas-
ingly competitive” he says. As a result,
firms that have been exceptionally conser-
vatively managed since the late 1990s are
now being forced to spend so as not to miss
out on consumer trends.
According to Murphy, the main reason
acquisitions haven’t already happened is
Dangerous times ahead
for grown up Google
G
OOGLE was the darling of the 2000s.
From its humble beginnings in
California’s Stanford University in
the late 1990s, Google managed to
become a verb in less than a decade. It is
now already thought by many to be “the
next Microsoft”. Over the last five years, its
share price has increased by 450 per cent,
while the company has expanded, provid-
ing new products from an office productiv-
ity suite to self driving cars.
While the profits are still flowing, how-
ever, the company is beginning to come
into the same problems that dogged
Microsoft. The EU has just begun a probe
into whether or not Google is abusing its
market dominance by privileging its own
ventures in search rankings. Once an
incredibly in demand employer, the firm
recently had to raise wages by 10 per cent
confidence. “After Lehman fell, lots of peo-
ple thought that companies would take
advantage, but that didn’t happen – actu-
ally, activity fell.” With confidence now
picking up again, many firms may feel
forced to start running down their cash
balances – as appeared likely in January
2010, before the Greek sovereign debt crisis
depressed confidence again.
So how should traders react to this?
Unfortunately, it’s far from clear. Part of
the reason why companies like Apple and
Google have accumulated such dramatic
cash hoards is because they have been con-
sidered growth companies. Many investors
might not take kindly to large acquisitions.
In that case, it might make sense to go
short on the wealthiest firms, while buy-
ing up the firms likely to be acquired.
Alternatively, given the potential cash
about to be flashed, it might make sense to
go long on the Nasdaq, in anticipation of a
round of price boosting deals.
One thing seems relatively certain, how-
ever. One way or another, the technology
sector is likely to excite more than most in
2011. Traders should keep watching their
screens.
just to hold onto staff. Clearly, Google is suf-
fering.
As Clem Chambers, the CEO of ADVFN, a
financial data website, put it: “With Eric
Schmidt on a PR rampage destroying
Google’s ‘do no evil’ mojo, it’s no surprise
that the regulatory antibodies of the world
are starting to be on alert for Google.” Is it
about time for traders to be alert and go
short too?
Certainly the probe does not look good.
Greg Sterling, an expert on Google, reckons
that the EU probe goes to the heart of what
Google does. “Google’s algorithms are what
make it competitive” he says. If it is forced
to make them publicly available, it may
lose its edge – CFD traders would be wise to
watch the proceedings very carefully then.
For the moment, they probably needn’t
worry too much, however. According to
Investment | Contracts for Difference 21
8 month high and has been trending up since
THE the start of December. With investor confi-
dence in the US on the up and Alcoa’s fourth
TIPSTER quarter earnings per share up $0.03 to $0.18,
there could be room for further movement
WALGREEN IS higher. Capital CFDs quotes $14.56–$14.59.
It looks like the word might have been on
WALLOWING the street Friday regarding Ladbrokes’ report-
IN THE GREEN ed interest in bidding for 888 Holdings, as the
shares jumped 12 per cent on heavy volume.
This of course was followed by confirmation
T
HE US drugstore chain Walgreen reports yesterday of bid talks by Ladbrokes and a fur-
its first quarter 2011 earnings on ther 20 per cent jump to seven month highs of
Wednesday with the stock trying to break 58p. Although figures of 70p a share have
through the $38 resistance level to new been mentioned, the shares did stall at an old
12-month highs. Walgreen has surged on strong support/resistance line and the 200 day mov-
volume over the last three weeks and it does ing average, which may hold it for now. A
look like only a matter of time before it breaks break of this level though should see it close
higher. There is large call-option open interest the gap to 65p left on 28 May. Spread Co
on the $40 strike level, so that should be our offers a spread on 888 Holdings of
target if it breaks through $38. Spread Co 57.96p–58.29p and Ladbrokes of
offers a spread on Walgreen of $37.49-$37.56. 126.8p–127.5p.
The aluminium producer, Alcoa Inc, is at an Daniel Knowles
A mountain of cash is ANALYSIS l Apple's share price over the last year
building up in
California 350
$
Picture: GETTY
300
250
Dec 09 Feb 10 Apr 10 Jun 10 Aug 10 Oct 10 Dec 10
Different faces of ANALYSIS l Google's share price dipped in Mark Tricker, a partner with Norton Rose at
Google
640
late November their Brussels office, this is a very difficult
$ case for the EU. At best “it could be over by
Picture: GETTY 620 the middle of next year, if Google settles”,
600 he says. If not, it could take years to resolve.
580 In the mean time, the innovation and prof-
560 its should keep flowing.
But with the spectre of action hanging
540
over the company, Google’s halo is a little
520 darker than it was. Regardless of what hap-
pens, there will be interesting times ahead
500
17 Nov 07 Dec for traders.
 Lifestyle
22 CITYA.M. 21 DECEMBER 2010

A fancy hotel is the answer Lux retreats

for weightloss
if you’re stranded by snow
If the weather scuppers your plans
to escape London for Christmas,
get booked in, says Timothy Barber FIT IN
THE CITY
BY LAURA WILLIAMS

I
T’S not looking good for those of us Right, lap up the
planning to head away for Christmas, festive atmosphere in FITNESS & DIET EXPERT
which means it could be time to the Donovan Bar at

rethink things. Option one: wallow at Brown’s Hotel.
home, rueing the fact that your plans have
been scuppered and the shops have sold
out of turkey; option two: book into a hotel,
relax and enjoy a stress-free Christmas for
once. If you’re stranded in London it’s a no-
brainer, and there’s plenty of availability.
Here are our picks.
THE BERKELEY, KNIGHTSBRIDGE
The roof terrace of the Berkeley’s spa has been trans-
formed into a mini outdoor cinema, hidden between the
trees of a makeshift pine forest. It’s showing winter clas-
sics while hot chocolate, warm blankets, fluffy cushions
and furry hot water bottles (plus heating lamps and huge
down feather jackets) keep viewers cosy. If you’re staying
for Christmas, a horse-drawn carriage ride through
Belgravia, four course Christmas lunch at Koffmann’s, a
Santa’s grotto in the Blue Bar and Christmas stockings are
all included in the £550 per person Christmas package.
Wilton Place, SW1X 7RL. www.the-berkeley.co.uk
BROWN’S HOTEL, MAYFAIR
London’s oldest hotel is a discreetly luxurious Mayfair insti-
tution. Paul Smith has designed this year’s festive decora-
tions, including a tree decked with Smith’s hand-painted
baubles. Rooms are available between December 23-29,
and there are a number of packages, such as the Family
Festive Celebrations package (from £565 per night), in
which you get a deluxe room with another interconnect-
ing room for the kids. Small kids get a 50 per cent reduc-
tion on food and drink, and on Christmas Eve Santa will be
visiting to deliver goodie-filled stockings. Albemarle St,
W1S 4BP. www.roccofortecollection.com
FLEMINGS, MAYFAIR
One of Mayfair’s less showy boutique hotels – on the out-
side, anyway – has gone through a major refurbishment
recently and emerged a thing of chic, quirky fabulousness.
The interior design sits somewhere between Moulin
Rouge and Alice in Wonderland, while the newly-invigor-
ated cocktail bar & tea room (the afternoon teas are high-
ly recommended) has been picking up plaudits from those
in the know. For staying over Christmas, the Cupcake and
Champagne package is available from £185 per room per
night, staying in a classic double or twin. 7-12 Half Moon
St, W1J 7BH . www.flemings-mayfair.co.uk
N
o longer seen as old-style fat farms,
weightloss retreats are perfect for those
looking to shift a Christmas-pud tum and
locate long-forgotten waistlines.
FOR THE PURIST: Covering everything from
Neuro Linguistic Programming – through to Raw
Food Training and colonic irrigation, the team at
Anamachara Detox maintain they can get your
weight down by up to 2 stone in just one week.
If your idea of heaven is raw food, smoothies and
lots of yoga in the Somerset countryside, this is
the one for you. www.anamcharadetox.com
FOR THE COMFORT EATER: At NuBeginnings,
you don’t just receive exercise and nutrition
know-how, you get hypnotherapy too –
NuBeginnings want you to change for good and
keep up the good work on returning home.
NuBeginnings claim to be “a boutique weight
loss camp like no other” – their customers cer-
tainly seem to think so. www.nubeginnings.co.uk
FOR GUYS ONLY: New Men-Only Boot Camp
from market leaders New You Boot Camp is an
extreme, seven day residential course run by mil-
itary PTIs. A typical day may be broken up into
hourly sessions on-site, or spent on exhilarating
full-day expeditions on the beach or in the
woods. Run through military-style drills and bust
problem areas through activities like abseiling,
gorge walking, and zip wires for the fearless.
www.newyoubootcamp.com
FOR GIRLS ONLY: Situated on Exmoor in the
Peak District, FitFarms run separate male and
female camps recognising that men and women
have very different needs when it comes to diet
and exercise. The aim is to make sure you receive
as much individual attention as possible (which
you can then continue at home with ongoing
long-distance help from your designated coach).
www.fitfarms.co.uk

CLARIDGES, MAYFAIR
As last year,
fashion
designer
John Galliano
has designed
a Christmas
tree for
Claridge’s Art
Deco lobby,
this year coming up with what resembles
a vast piece of pink coral, surrounded by
oceanic life. It’s perfectly extravagant, as
is a Claridge’s Christmas, which can
include a horse-drawn carriage ride
through Mayfair, a seven course Christmas
Day lunch, a visit from Father Christmas
for kids, an overnight stocking delivery,
and breakfast on Christmas day and
Boxing day. That’s part of the Timeless
Claridge’s Christmas package, which is for
two nights (24-26 December) and costs
£680. 29 Brook Street, W1K 4HR.
www.claridges.co.uk
LANDMARK LONDON,
MARYLEBONE
Ineffably
grand and
aptly named,
the
Landmark
London –
famous for
its huge cov-
ered court-
yard housing the Winter Garden
restaurant – has a Home for Christmas
package (£570 per room based on two
sharing) which includes mince pies and
Champagne served while you unwrap a
mystery gift, a complimentary day pass
for two for the hotel’s rather special spa
and £100 credit for the restaurant. Or
choose the All I want for Christmas deal,
which includes a £100 voucher for
Hamleys, Selfridges or M&S. A five-course
Christmas day lunch is £170 per person.
222 Marylebone Rd, NW1 6JQ.
www.landmarklondon.com
THE HOXTON HOTEL
For some-
thing a bit
more afford-
able – and
extremely
comfortable
– head to
the heart of
hipsterville
for a stay at the ever-so-groovy Hoxton
hotel. The hotel, which has garnered
a reputation for selling five rooms each
night for just £1 (released periodically
throughout the year) is an eclectic mix-
ture of urban cool and creature comforts,
with exposed brick walls and polished
concrete next to huge, old leather arm-
chairs and roaring log fires. There are
rooms available between Christmas and
New Year, and while they may not be
£1, they’re a relative snip at just £69. 81
Great Eastern St, EC2A 3HU. www.hox-
tonhotels.com
SOFITEL ST JAMES, PALL MALL
Sofitel St
James is a
place of
beautiful,
old-fash-
ioned opu-
lence in the
heart of Pall
Mall. The St
James bar has launched a special
Christmas cocktail – involving a double
cognac shot and a frozen shooter – which
you can enjoy while gazing at the
Christmas tree adorned with 200 minia-
ture, handmade Baccarat bottles of Louis
XIII cognac. Bear in mind that the
Brasserie Roux restaurant is fully booked
for Christmas lunch, but you’re hardly short
of places to head for a festive feast round
here. The spa is running a selection of spe-
cial Christmas treatments. From £258 per
room per night. 6 Waterloo Place, SW1Y
4AN. www.sofitelstjames.com
SOHO HOTEL
Beloved by
fashion-
istas and
the media
crowd, the
Soho Hotel
is as styl-
ishly, dis-
cretely
comfortable as it is cool. Being on the
doorstep of the Soho film industry, it
comes equipped with its own, ultra-luxe
screening room (complete with cowhide
chairs) which will be showing the
acclaimed George Clooney movie The
American to aide the Boxing Day come-
down on the afternoon of December 26.
A Christmas stay also includes English
breakfast and a festive gift from the
hotel, while rates are from £260 for a
Superior room (excluding VAT). 4
Richmond Mews, W1D 3DH. www.firm-
dalehotels.com
CITYA.M. 21 DECEMBER 2010
Kensington’s own slice of Provence
Big-shot restaurant
group MARC has
opened a Provencal
“bistrot”. But it is
anything but rustic
Cassis
232 Brompton Road, SW3 2BB
Tel: 020 7581 1101, cassisbistro.co.uk
FOOD hhhii
SERVICE hhhhi
ATMOSPHERE hhhii
Cost per person without wine: £35
T
HE website of Cassis, Marlon Abela’s
new venture, says proudly that the
interior matches its cuisine. The cui-
sine, though, is Provencal, an inher-
ently rustic sort of food, with snails and
hunks of meat and tomatoey vegetable
dishes, meant to be eaten under trees or in
red-tiled kitchens among flagons of wine.
Marseille, Aix, Avignon.
Or, in this case, South Kensington, and
the matching interior is one of sleek sur-
faces, Julian Opie portraits and large win-
dows. This is, one can only conclude, a
very SW3 type of Provence.
I’m not sure if the rusticity of the food
concept and the sleekness of the restau-
rant work when put together. Abela – the
catering heir and Rich Lister – is an expert
in providing luxurious, global and thus
perhaps occasionally bland “dining experi-
ences”. Though nobody could call his
Greenhouse, with its vast wine list and
Michelin-starred food, or Umu, his Kyoto-
style place in Mayfair bland, those sorts of
comments have been made in relation to
A Voce, his Manhattan Italian.
I fear Cassis may have caught a little
sniff of what some say A Voce suffers.
Although everything is attractively put
together, it all feels a bit sterile, like you
might come here with your beautiful hus-
band or wife or partner and talk
about…nothing. Or sit there wishing you
were somewhere else. It feels a million
miles from the sort of place in the sun
where you’d hunker down with fish soup
and large hunks of baguette. But maybe
that’s the point. We are on Brompton
Road and there’s nothing to be gained by
pretending otherwise. It would be kitsch.
Indeed, our fellow diners were the beau-
tiful Sloane crowd – and there were a good
few elderly denizens of the area there too.
Dressed ever so slightly scruffily we felt a
bit (ok, very) out of place – but were not
made to feel in the slightest bit uncom-
fortable by the excellent staff.
THREE OTHER FRENCH RESTAURANTS IN SOUTH KENSINGTON
ZOE STRIMPEL
L’ETRANGER
French with a – hang on a minute – Japanese twist,
you’re unlikely to find a dining experience quite like this
elsewhere in London. Tofu and ginger sit alongside pan-
fried foie gras and fillet steak Rossini. Less usual dishes
include quail and lychee salad with chicken liver choco-
late and miso-grilled aubergine with ponzu caviar. 36
Gloucester Road, SW7 4QT, 020 7584 1118.
WORDS BY
ZOE STRIMPEL
So, far from Provence – the Roman Cassis’s distinctly
aqueducts and fields of lavender non-rustic interior.
exchanged for the smart kitchen shops
and bars of Brompton Road – we settled
down for our meal.
To go with an aperitif of blueberry
Royale, we had a few “petites bouches” –
some parcels of fried tortellini stuffed
alternatively with spinach, foie gras and
cheese; snails in pastry, and some fried
whitebait. The parcels may have been
faithful to Provence, and artfully done too,
but they tasted like undistinguished party
snacks all the same (that said, the ones
with foie gras inside were impressive). The
whitebait was just fishy (I never like the
things, but if you do, these are probably
quite good) but the snails – now, these
were excellent. Earthy, silky jewels
encased in moreish pastry and herby
sauce. Phew.
Starters were very strong indeed. The
soup I had contained squash and chest-
nuts with a dollop of cream. The broth
was savoury and smooth, the chestnuts
rich and sweet and then, the indulgent
whorl of cold cream just to make you
swoon. I loved this soup and hated to
share it with my companion, who was any-
way preoccupied with his extremely gen-
erous board of good country terrines
(including hare) served with chutneys and
toasts.
For mains, I decided to get into the spir-
it of things and order the bouillabaisse
even though it’s a dish that scares and
impresses me in equal measure. This one
terrified me: it was an enormous bowl of
BIBENDUM
A classic Conran outpost, this top-flight French restau-
rant is a stone’s throw from Cassis and is housed in the
resplendent Michelin building. There’s an oyster bar for
something more laid-back, but for some very pricey
French seafood dining, head to the first floor. A prix fixe
menu softens some of the prices. Michelin House, 81
Fulham Road, SW3 6RD, 020 7581 5817.
Lifestyle | Restaurants
clams and several types of white fish (the
contents changes daily) placed in front of
me before a gallon-sized pot, or so it
seemed, of that famous viscous brown
fish soup was poured atop. Now, looking
carefully at the menu it appears the dish
was for two people – why did nobody stop
me? Anyway, I didn’t make great headway
because I was struggling – I found the
soup too severe – stern and fibrous and
without any forgiving buttery sweetness.
The seafood portion was so industrial-
sized that I blanched and desisted before
doing justice to what I’m certain others
would have called a magnificent dish. I
will confidently say, however, that I’ve had
better rouille, which was served on the
side with gruyere and croutons.
My companion had lamb about which
he was pretty over the moon. Lamb’s not
my favourite but the bit of his rack that I
tried had a good, deep flavour. It wasn’t as
hot, or even as warm, as I was expecting
but maybe lamb cools faster than other
meat. It’s worth pointing out that the rata-
touille that accompanied all this was one
of the nicest dishes: vegetables wallowing
in their own aromas, helped along by
home-made tomato sauce. I confess I filled
up on it rather, perhaps denting my abili-
ty to wrestle with the fish.
Pudding was jolly nice. The Grand
Marnier and orange soufflé is a source of
great pride, and I found it impressive
though very sweet a bit too goopy (it came
out surprisingly quickly for a soufflé).
Chocolate tart with pine nuts was lovely.
Dessert cocktails may be best left alone:
RACINE
Considered a jewel of Kensington, this is one of London’s
very best French restaurants. It proudly boasts lapin à la
moutarde, tête de veau and soupe de poisson. Salads of
mountain goat's cheeses and herbs, and “proper Dover
soles that cover the plate” are also to be expected. A
wine list is carefully chosen and the interior is elegant.
239 Brompton Road, SW3 2EP, 020 7584 4477.
23
we had a pink one modeled on strawberry
cheesecake and a tiramisu one that was,
frankly, garish.
But Abela knows what he’s doing and
most things are as they should be. You can
count on great ingredients that are well-
sourced, cooked well and a stonking, even
flustering, wine list to go with it all. The
only thing missing, oddly, is that flavour
of Provence, some spilled red wine per-
haps, or a portly grandmother at the next
table, to take the shiny edges off what
feels like a global product.
FOOD & BOOZE
NEWS
ZOE STRIMPEL
NEW YEAR’S AT PARAMOUNT
For a decadent New Year’s Eve with the best
possible views of London, head to Paramount,
the former members’ club at the top of Centre
Point. A champagne reception, five-course meal
and a DJ from 11pm should ensure a stylish way
to ring in 2011. £160 per person. Top of Centre
Point, 101-103 New Oxford Street. To book, call
020 7420 2900.
CONNAUGHT’S COOL COBURG EXTENDED
One of London’s finest and smartest drinking
venues has just got bigger and even smarter.
The speakeasy-cool Coburg bar at Mayfair’s
Connaught hotel – a huge hit since its opening a
couple of years ago –  has been extended, with
the addition of a beautiful new veranda section
housing what will be some of the most desirable
seating for cocktails to be found in London.
Carlos Place, W1K, 020 7499 7070.
NEW YEAR’S AT PARAMOUNT
Quo Vadis, the
private
members’
club on Dean
Street, will intro-
duce a new bar on
the ground floor in
January. Behind the
attractive copper-topped
bar will lurk an impressive
assortment of cocktails
made in one-off silver shak-
ers, along with snacks such
as smoked trealy ham toast-
ed sandwich and salt cod
fritters with tartare sauce.
Opens 5 Jan. 26-29
Dean Street. 020
7437 9585.
 24 Lifestyle | TV& Games CITYA.M. 21 DECEMBER 2010

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The Nativity
7.30pm EastEnders: BBC News
8pm Holby City
9pm Accidental Farmer
10pm BBC News
10.25pm Regional News
10.35pm CHOICE Imagine:
Ray Davies – Imaginary Man
11.55pm FILM Taking Sides:
Fact-based drama, starring
Harvey Keitel 2001;
Weatherview
1.45am Sign Zone: See Hear
2.15am Sign Zone: The Apprentice –
Why I Fired Them 3.15am Sign
Zone: Turn Back Time – The High
Street 4.15am-6am BBC News
5.50pm Porridge: The inmates
plan a Christmas escape.
6.30pm Top of the Pops 2
Christmas Special 2010
8pm Top Gear
9.05pm CHOICE Oz and
Hugh Raise the Bar
10.05pm Mock the Week:
Highlights from the topical quiz.
10.35pm Never Mind
the Buzzcocks
11.05pm Have I Got
News for You
11.35pm Russell Howard Live:
Dingledodies
12.35am The Many Faces of
Richard Wilson
1.35am Medium 2.20am Medium
3am BBC News 4.15am-6am Close
6pm London Tonight 6pm The Simpsons 6.30pm 6pm Monkey Life
6.30pm ITV News Hollyoaks 7pm Channel 4 News 6.25pm Live from Studio Five
7pm Emmerdale 7.55pm 4thought.tv 8pm The 7pm Five News at 7
7.30pm River Monsters Secrets of Westminster Abbey: A 7.30pm Street Market Chefs:
8pm CHOICE Children’s Time Team Special 9pm Jamie’s Five News Update
Hospital at Christmas Best Ever Christmas. Part two of 8pm The Princess and the
9pm The Savoy two. 10pm Frankie Boyle’s Tramadol Press: How Kate’s Life Will
10pm ITV News at Ten Nights 10.30pm The Morgana Change Forever: Five News at 9
10.30pm London News Show 11.05pm The Family 12.05am 9pm CSI: Miami
10.35pm FILM The Dukes of Music on 4: Little Noise Sessions 10pm CSI: NY: A student dies
Hazzard: Comedy, starring 12.40am Mercury Prize Sessions:
in a subway. IMAGINE: RAY DAVIES –
Chapel Club 12.55am Mumford &
Seann William Scott and Sons: Gentlemen of the Road 10.55pm CSI: Crime Scene IMAGINARY MAN BBC1, 10.35PM
Johnny Knoxville. 2005. 1.10am The Album Chart Show Investigation
The Kinks singer-songwriter
12.35am Christmas Tales: Spotlight 1.25am Beach Volleyball 11.55pm True CSI
Ray Davies talks to Alan Yentob.
The Story of the Tree 2.15am KOTV Boxing Weekly 12.55am SuperCasino
1.30am The Zone; ITV News 2.45am World Sport 3.10am 3.55am Poker 4.45am House Last in the series.
Headlines 3.30am The Rockford Deadliest Catch 3.55am Brothers & Doctor 5.10am Michaela’s Wild
Files 4.25am-5.30am ITV Sisters 4.35am ER 5.20am- Challenge 5.35am-6am Michaela’s
Nightscreen 6.05am One Tree Hill Wild Challenge

SKY SPORTS 1 Time 4am-6am Premiership 4.40am Boston Legal 5.30am- Brian 3.40am Being Erica DISCOVERY HOME &
SATELLITE & CABLE

Years 6am Home Shopping 4.20am-6am Switched

7pm Live Darts 12am Spanish
Cup Football 2.30am Football
Asia 3am A-League 3.30am
Soccer AM: The Best Bits
4.30am Football Asia 5am-
6am Sports Unlimited
SKY SPORTS 2
6.30pm Sports Unlimited
7.30pm Live Spanish Cup
Football 10pm Football Asia
10.30pm A-League 11pm
World Pool Masters 12am
Premier League Bowls 1am
Extra Time 1.30am A-League
2am World Pool Masters 3am
Premier League Bowls 4am-
6am British Basketball
SKY SPORTS 3
7pm Premier League Bowls
8pm British Basketball 10pm
European Seniors Tour Golf
11pm Cage Fighting 12.30am
British Basketball 2.30am
European Seniors Tour Golf
3am Snow Ride 3.30am Extra
BRITISH EUROSPORT
7.30pm Live Tennis 9.15pm
Eurosport Top Ten 10pm
Boxing 11pm Best Battles
Bikes 12am Freeride Spirit
Show 12.15am-12.30am
Destination Dakar
ESPN
7pm Live SPL 10pm German
Football 11.45pm ESPN Serie
A Kicks 12am Eredivisie
Review Show 12.30am Press
Pass 2010 1am Live College
Football 4.30am Press Pass
2010 5am-6am Premier
League Review
LIVING
7pm America’s Next Top Model
9pm Celebrity Four Weddings
10pm I Am Alex Reid 11pm
Criminal Minds 1am CSI:
Miami 2am CSI: Crime Scene
Investigation 3am Charmed
BBC THREE
7pm Don’t Tell the Bride 8pm
EastEnders: The Greatest
Weddings 9pm Little Britain
Abroad 10pm EastEnders
10.30pm Russell Howard’s
Good News 11pm Family Guy
11.45pm Lee Nelson’s Well
Good Show 12.15am Mongrels
12.45am American Dad!
1.30am Two Pints of Lager and
a Packet of Crisps 2.30am
EastEnders: The Greatest
Weddings 3.30am Don’t Tell
the Bride 4.25am Russell
Howard’s Good News 4.55am-
5.25am Mongrels
E4
7pm Hollyoaks 7.30pm Friends
9pm FILM X-Men 2000.
11pm The Event 12am Scrubs
12.55am The Event 1.50am
Make It or Break It 2.35am
Reno 911! 2.55am What About
HEALTH
HISTORY 7pm A Baby Story 8pm 10
7pm The Universe 8pm Clash Years Younger 9pm Paralysed
of the Gods 9pm The Search and Pregnant: Four Years Later
for Burke and Hare 10pm 10pm Real ER: The Bronx OZ AND HUGH RAISE THE BAR
Bedlam 11pm Ancient Aliens 11pm The Real A&E 12am BBC2, 9.05PM
1am Bedlam 2am The Paralysed and Pregnant: Four New series. Wine expert Oz Clarke and
Crusades: Crescent and the Years Later 1am Real ER: The comedian Hugh Dennis embark on a
Cross 3am-5am Clash of the Bronx 2am The Real A&E 3am challenge to set up the UK’s most
Gods 10 Years Younger 4am Baby patriotic drinking establishment.
Tales 5am-6am A Baby Story
DISCOVERY
8pm How Do They Do It? SKY1
8.30pm How It’s Made 9pm 7pm Middle 7.30pm Simpsons
Swamp Loggers 10pm 8pm Modern Family 8.30pm
Extreme Engineering 11pm Simpsons 9pm Little Crackers
River Monsters 12am Bear 9.30pm Victoria Wood Presents
Grylls: Born Survivor 1am Angina Monologues 10.30pm
Deadliest Catch 2am Chris Little Crackers 11.15pm Top 50
Barrie’s Massive Machines Greatest Families 1.15am A
2.30am Chris Barrie’s Massive League of Their Own 2.05am CHILDREN’S HOSPITAL AT
Engines 3am The First World Road Wars 2.55am Oops TV CHRISTMAS ITV1, 8PM
War 3.50am Nasa’s Greatest 3.20am The Dresden Files
Missions 4.40am Days That 4.10am Sell Me the Answer Lorraine Kelly presents an hour-long
Shook the World 5.30am-6am 5.05am-6am Are You Smarter special from the Royal Manchester
How Does That Work? Than a 10 Year Old? Children’s Hospital.

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

SUDOKU KAKURO
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bands (3) 5 Crustlike surfaces of
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healing wounds (5)

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S N 13 Follow as a result (5)
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SOLUTIONS KAKURO is at least one nine-letter word in the wheel.

T E 15 Solid projectiles shot
7 Gut (9)
by a musket (5) 12 Nocturnal bird (3)
QUICK CROSSWORD
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 Sport
25
FLOWER: HUSSEY DOESN’T
RUFFLE SWANN’S FEATHERS
ENGLAND COACH BACKS SPINNER TO
BOUNCE BACK IN MELBOURNE: P26

2010: A rollercoaster year of sport

JANUARY Our cricketers and golfers enjoyed vintage seasons and positive signs emerged SEPTEMBER
l TENNIS: Andy in rugby union, but our football fortunes were dire, writes Frank Dalleres l CRICKET: Pakistan
Murray misses out on chief Ijaz Butt causes
a maiden grand slam storm by claiming that
when he is beaten by rumours abound that
Roger Federer in the England players fixed
Australian Open final; elements of recent
FOOTBALL: David clashes; Andrew
Sullivan and David Flintoff retires from all
Gold take over at West Ham; terrorists forms of the game; FOOTBALL: Wayne
attack the Togo team at the Africa Cup Rooney’s miserable form is compounded
of Nations in Angola, killing three; by allegations he cheated on his wife
CRICKET: England are denied series win with a prostitute; BOXING: Ricky Hatton
in South Africa by loss in the final Test. loses licence over cocaine claims.

FEBRUARY OCTOBER
l WINTER OLYMPICS: l FOOTBALL: Boston
Amy Williams wins Red Sox owner John
gold for Great Britain Henry sees off High
in the skeleton bob; Montgomerie led Court legal challenges
FOOTBALL: Man Utd Europe to victory to complete a £220m
win Carling Cup; John in the Ryder Cup, buyout of Liverpool;
Terry is stripped of the while Spain GOLF: Captain Colin
England captaincy amid (below) won the Montgomerie leads
rumours about his pri- World Cup Europe to Ryder Cup
vate life; Portsmouth become the first top Picture: PA glory at Celtic Manor; Lee Westwood
flight club to go into administration; dethrones Tiger Woods as world No1;
GOLF: England’s Ian Poulter wins the RUGBY UNION: Saracens sign Gavin
WGC Match Play in Arizona. Henson, a move revealed by City A.M.

MARCH MAY JULY NOVEMBER

l RUGBY UNION: l CRICKET: Paul Collingwood l ATHLETICS: Phillips Idowu l FORMULA ONE: Red
France clinch the Six leads England to victory at the is among Britain’s gold medal Bull’s Sebastian Vettel
Nations by beating World Twenty20 in Barbados, winners at the European becomes the youngest
England; FOOTBALL: their first triumph at an ICC Championships; FOOTBALL: world champion ever;
Wayne Rooney injures event; FOOTBALL: Chelsea Spain beat Holland in the final CRICKET: England save
ankle as Man Utd lose win the league and cup to win the World Cup; TENNIS: a draw in first Ashes
at Bayern Munich; double; Fulham lose Rafael Nadal wins his second Test; RUGBY UNION:
FORMULA ONE: Europa League final to Wimbledon title; CRICKET: Chris Ashton’s 80m try
Fernando Alonso wins on Ferrari debut Atletico Madrid; West Ham avoid the England beat Australia 3-2 in home one-day against Australia is highlight of strong
in Bahrain; HORSE RACING: Imperial drop but still sack boss Gianfranco Zola; series; CYCLING: Alberto Contador wins the autumn for England; FOOTBALL: Glazer
Commander upstages Denman and RUGBY UNION: Leicester edge Saracens Tour de France; GOLF: Louis Oosthuizen wins The family spark Man Utd sale rumours by
Kauto Star to win Cheltenham Gold Cup to win a thrilling Premiership final. Open; SNOOKER: Alex Higgins dies, aged 61. paying off £220m of costly PIK loans.

APRIL JUNE AUGUST DECEMBER

l FOOTBALL: Lionel l FOOTBALL: England l GOLF: Martin Kaymer, 25, l CRICKET: England
Messi hits four goals crash out of the World wins first major after a play- take lead in the Ashes
as Barcelona destroy Cup early, losing 4-1 to off at US PGA Championship; with second Test romp
Arsenal; GOLF: Tiger Germany in the second FOOTBALL: Tottenham clinch but are pegged back to
Woods returns at the round; GOLF: Graeme historic place in Champions 1-1 in the third; FOOT-
Masters, where Phil McDowell becomes the first League group stage; Aston BALL: England’s bid to
Mickelson pips Lee European to win the US Villa manager Martin O’Neill host the 2018 World
Westwood; HORSE Open since 1970; RUGBY quits days before new season; Cup is humiliated as
RACING: Tony McCoy wins the Grand UNION: England enjoy morale-boosting win Man City complete £130m summer spree; TEN- Russia win the vote; Newcastle sack
National at the 15th attempt, on board over Australia in Sydney; TENNIS: John NIS: Andy Murray warms up for US Open by Chris Hughton and Blackburn dump Sam
Don’t Push It; BOXING: David Haye Isner eventually beats Nicolas Mahut in winning the Rogers Cup in Toronto; CRICKET: Allardyce despite good results; GOLF:
defends his WBA world heavyweight the longest match ever, lasting 11 hours Allegations emerge that Pakistan players fixed Graeme McDowell beats Tiger Woods in
title by beating John Ruiz over three days at Wimbledon elements of matches against England. play-off at Chevron World Challenge.

QUIZ OF THE “I walked in at half-

1. time and said sorry to
3. “Bit of genius... Bit of
magic... Sireli Bobo...
“Next thing I said:
5. ‘Isn't that a gun?’ and
7. “I might be in a bit of
a Skoda garage
9. “Now I’m retired my
dream job would to
YEAR: THEY the chaps – and now I apol-
ogise to the millions of peo-
ple back home.”
Very interesting, very good
yeah, very good. Three
cheers for Sireli Bobo!”
as, the driver angled the
car and floored it. That’s
when we saw six men, all
rather than a Mercedes
garage, but I am telling you
some old bangers don't half
be the landlord of the
Rovers Return. Any chance
ITV?”
SAID WHAT? brandishing machine guns.” polish up great.”

Not everything sports

stars say is cliched non-
sense. But can you guess
who uttered these gems?
Answers on page 26
2. “Once the match got
past, you know, 25-
“They got him sent
4. off, everyone sprinted
“In all honestly I
6. became very worried
“Turnover, Ben
8. [Youngs] got the ball,
“The 'Hand of God'
10. now belongs to me.
all, I wasn't really thinking.
Hitting a serve and trying
towards the referee. Typical
Germans.”
at the way the conversation
went. I was really spooked.
pass, I drew the man, gave
the pass to Chris [Ashton],
Mine is the real ‘Hand Of
God’. I made the best save
to hit a forehand winner is I wanted to get out of the basic rugby, nothing spec- of the tournament.”
the only thing I was doing." hotel and on the plane.” tacular.”
 26 Sport CITYA.M. 21 DECEMBER 2010

Results ASHES OR CRASHES: WHO’S FOR THE CHOP?

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Swann’s not It really was all going a bit too well. As all
long-suffering England fans know, an Ashes
tour isn’t complete without calls for a mass
upheaval in personnel and a change tactics.
Here City A.M. identifies the men most under
pressure and those in line for promotion.

intimidated
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IL>9PLE@FE IAN BELL: Ran out of partners in both the PAUL COLLINGWOOD: Averaging just
Adelaide and Perth Tests. Surely due a pro- 16.50 but is still worth a place on the
▲

CRICKET there for him – so it was a difficult

?<@E<B<E:LGGFFC(
<[`eYli^_%%%%%%%%%%%%%%%%%%%%%%%%%)+ :Xjki\j%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)) BY JAMES GOLDMAN
<LIFG<8E:?8CC<E><:LGGFFC( ENGLAND spinner Graeme Swann
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has been backed to bounce back from
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:I@:B<K by his coach Andy Flower.
=@IJKK<JKD8K:? Swann, ranked the No2 bowler in
Jflk_8]i`ZXm@e[`X world cricket, came into this Ashes
:<EKLI@FE1Jflk_8]i`ZXY\Xk@e[`XYpXe`ee`e^jXe[),ilej series rated as the man most likely to
@E;@81=`ijk@ee`e^j(*-Dfib\c,$)' ensure England return home with
JFLK?8=I@:81=`ijk@ee`e^j-)'$+[\Z%
BXcc`j)'(ef#8dcX(+'#[\M`cc`\ij()0#G\k\ij\e..#Jd`k_-) the urn still in their possession.
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)+$*$0/$(#?Xii`j*'$,$//$)#BXcc`j(*$*$,-$(%
Ldg`i\j1J;Xm`j@>flc[% Aussie fast bowler Geoff Lawson to
claim that Swann is intimidated
by the highest run scorer in
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Flower.
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;le[\\Lk[mIXe^\ij%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%F== can come back,”
IL>9PLE@FE said Flower. “He
?\`e\b\e:lgGffc--gd 1Kflcflj\m>cXj^fn% got him in the
K_\:_Xdg`fej_`g.%+, 1<j_\imEfkk`e^_Xd% first innings of
this Test, and I’d
email sport@cityam.com be surprised if
Swann got intimi-
dated by Michael
QUIZ ANSWERS FROM PAGE 25 Hussey.
“We’d have expected a
1. Rob Green; 2. John Isner; 3. Brendan guy of his quality to affect
Venter; 4. Sir Alex Ferguson; 5. Jenson the momentum a little more.
Button; 6. John Higgins; 7. Ian “But once we got on that pitch, we
Holloway; 8. Courtney Lawes; 9. all noticed it was tricky facing the
Andrew Flintoff; 10. Luis Suarez. quicks and the bounce was aiding
them – and there wasn’t much turn
task. I don’t blame him for that at motion in the batting order. Verdict: Ashes basis of his fielding alone. Verdict: Ashes
all – it was a tough ask. Melbourne is
a different set of conditions.”
As part of a four man attack,
Swann’s importance in this England
side cannot be overstated. The 31-year-
old is expected to do much of the don-
key work, tieing up an end, in order
to keep the three pacemen fresh.
As the tour has gone on, however,
the system that has served England so
well in recent times appears to be
accomplishing the exact opposite of
what it is designed to do.
Stuart Broad suffered his tour end-
ing injury as early as the fourth day
of the second Test, while 21-year-old
Steven Finn, despite retaining his
position as the leading wicket taker
in the series, looks in need of a rest. STEVEN FINN: The 21-year-old paceman has TIM BRESNAN: A real work horse who
Despite calls for a review of the coped better than expected, but he appears is capable of bowling long spells in tough
composition of his bowling unit, to be feeling the pace. Verdict: Crashes conditions. Can bat too. Verdict: Ashes
Flower maintains it is only
personnel, rather than
quantity, that is likely
to change in
Boxing Day.
Flower (left)
said: “The work-
load on the
bowlers is heavy –
but in the absence
of a quality all-
rounder, we are
sticking with a four-
bowler attack.
“I think we expect a
lot of these young men, to
come in and shoulder quite a lot
of responsibility.
“A five-Test series is hard on every- AJMAL SHAHZAD: The Yorkshire bowler is Eoin Morgan: Pushing for Collingwood’s
one, both physically and emotionally, highly-rated, but throwing him in at the deep spot but has yet to prove he can handle
and for the fast bowlers more so.” end would be a big gamble. Verdict: Crashes Test match cricket. Verdict: Crashes

Henson targets Wales recall Fears over fixture pile-up

as more games face axe
▲

RUGBY UNION believe they will be. I think it’s
BY JAMES GOLDMAN going to be fun.
“Hopefully I can get up to
SARACENS newboy Gavin Henson speed as soon as possible because
ing his time by performing on reali-
ty TV shows Strictly Come Dancing
and 71 Degrees North.
Henson feels appearing Seasiders also had to call off a home
▲

FOOTBALL
claims he’s back in rugby for good obviously I’d love to get in that on those shows has been BY FRANK DALLERES game against Manchester United
and hopes to cap his comeback to the Welsh Six Nations squad, and good for his personal because of a frozen pitch earlier this
sport by being part of Wales’ 2011 Six then obviously the World development but is so PREMIER LEAGUE chiefs have moved month, meaning a backlog is threat-
Nations campaign. Cup. happy to be back in a to ease fears of a fixture pile-up as ening to build up.
Henson, 28, is set to make his first “I’ve missed out on the World rugby environment that extreme weather threatens to wipe Champions League sides are short
appearance for his new club in the Cup the last couple of times. he can see himself out further fixtures. of dates on which rearranged fixtures
Premiership Boxing Day clash against That’s a huge thing missing on extending his career well Heavy snowfall claimed seven of can be scheduled. United also have to
Wasps at Wembley, 21 months on my CV so I’ll do everything in into his 30s. the nine top flight games at the week- set a new date for their trip to
from his last competitive outing. my power to get in. It’s all really “I do look after my self end, while some of the Boxing Day Chelsea, which was postponed at the
Wales coach Warren Gatland has exciting. and I’m hoping I can play schedule is already under threat. weekend. There are fewer free dates
warned Henson a return the interna- “I’ve not heard anything for another eight years. Blackpool, who postponed their available this season because the
tional fold is far from guaranteed, but directly from the Wales man- I’m in it for the long run,” clash with Tottenham on Sunday, are Champions League last 16 round is
the two-time Grand Slam winner agement. I’ve heard he’s he said. “I think those already considering calling off the taking place over four weeks, and the
believes he is capable of the sort of [Gatland] been speaking about me so two shows have been visit of Liverpool on 26 December. Premier League has an agreement
performances that will make his obviously he remembers me a little good for me but I’d really “We can almost certainly guaran- not to play on those nights.
claims hard to ignore. bit.” like to be taken seriously as tee the pitch will be playable but it is A Premier League spokesperson
He said: “The bigger picture for me International recall or not, a rugby player. the prevailing conditions once the said: “Our football department will
is the Six Nations and hopefully I can Henson (right) is simply happy “I want to get back to the top of the covers have been removed and already have contingency dates in
get in that Welsh squad. Hopefully to be back doing what he game and win honours in rugby. whether the pitch will freeze before mind and will work closely with the
the game hasn’t changed too much loves best after turning his That’s what I’ve missed, especially the end of the game taking place,” affected clubs to get new dates agreed
and my skill levels are still there. I back on the sport and occupy- playing for my country.” said chairman Karl Oyston. The as quickly as possible.”
 CITYA.M. 21 DECEMBER 2010
THE ALL-ROUNDER |
ALL THE GOSSIP FROM DOWN UNDER
CLARK THANKS ANDERSON
Sledging is suddenly a hot topic again. It
had been conspicuous by its absence in
this series, most likely due its one-sided
nature until Australia regained their
swagger and a foothold by dint of a
crushing win in Perth. And the catalyst
for the Aussie recovery? According to
their former pace ace Stuart Clark, it’s all
down to James Anderson’s big mouth.
Clark said: “Thanks, Jimmy Anderson. You
might just have given Australia the spark
they needed to win back the Ashes.
Perhaps it took Anderson and his con-
frontational approach towards the
Australians – in particular Mitchell
Johnson – to fire up our players.” Note to
Jimmy, maybe keep it buttoned in
Melbourne.
MELBOURNE’S STRIP TEASER
Kevin Pietersen may have patented the
switch hit, but if rumours in the British
press are to be believed, those dastardly
Aussies are busy coining the pitch switch.
On seeing England crumble like a stick of
rhubarb on the WACA’s speedy deck,
MCG curator Cameron Hodgkins had
reportedly been instructed to prepare a
clone in Melbourne. “Tricky Ricky in pitch
switch! Aussie skipper Ponting plots
bouncer barrage in Melbourne,” ran the
Daily Mail’s headline. Not the case, retort-
ed Cricket Australia’s public affairs man-
ager Peter Young, yesterday. He
complimented the Mail on its headline,
but said pitch preparation was left up to
each venue, which all worked to the best
of their ability according to local weather
and other conditions. “The MCC would be
deeply offended if anyone was presump-
tuous enough to give them advice on how
to prepare a cricket pitch,” Young said.
PONTING WILL MAKE MCG
Australia batting coach Justin Langer
believes it would take more than a frac-
tured finger to prevent Ricky Ponting
from taking to the field in the fourth Test.
Aussie batting coach Langer said: “At
one-all, Boxing Day Test, a chance to win
the Ashes, he will definitely be there. It is
just a matter of time before he makes
runs. He’s definitely due a big one.”
SYDNEY WEATHERWATCH
The Boxing Day Test could be Australia’s
last chance to regain the Ashes if
Sydney’s long-range weather forecasts
prove correct. According to weather-
zone.com.au, there is a greater than 75
per cent chance of rain in Sydney on days
three to five of the fifth Test and a “low”'
risk, 25 to 50 per cent likelihood, of rain
on the opening two days.
Christmas party poopers Everton spoil
City’s opportunity to go top of the table
MANCHESTER CITY 1 back following Phil Jagielka’s unfor-
EVERTON 2 example in typical all-action hero
▲
FOOTBALL
BY JAMES GOLDMAN
A BATTLING display from 10-man
Everton prevented Manchester City
from topping the table at Christmas
for the first time since 1929.
Roberto Mancini’s side were boost-
ed prior to kick-off by the news of
Carlos Tevez’s transfer request u-turn,
but that was as good as it got on a
night of missed opportunities.
City fought back admirably after a
trademark Tim Cahill header and a
sumptuous Leighton Baines effort
had put the visitors into an early 2-0
lead, but a string of fine saves from
Tim Howard meant the home side
were unable to complete the come-
tunate 72nd minute own goal.
It was Cahill though, who set the
style, who drew most praise from his
manager David Moyes after his side
secured a belated first away win of
the campaign.
“Tim Cahill epitomised what we’re
about here,” said Moyes. “Tim’s ener-
gy levels were back to the old days. I
thought they dipped a bit recently.
“We needed him to do it tonight,
especially when we went down to 10
men but his energy levels were also
great when we had 11.”
Everton were rampant early on,
while City’s general malaise was epit-
omised by the concession of a fourth
minute goal.
With Pablo Zabaleta off the field
receiving treatment, Baines made
progress down the left, his deep cross
fell to Seamus Coleman whose dink
Sport 27
Baines and Everton
celebrated a first
away win this term
Picture: ACTION
IMAGES
Tevez U-turn
over his future
MANCHESTER CITY striker Carlos
Tevez retained the captaincy for
last night’s match after retracting
his transfer request.
Tevez stunned City last week by
demanding to leave Eastlands in
January, blaming homesickness
and a breakdown in relations with
the City hierarchy.
But following talks with the
Argentina star the club issued a
statement insisting any disagree-
ment with their highest-paid play-
er had been ironed out.
“Manchester City can confirm
to its fans that ‘clear-the-air’ talks
have been held with Carlos Tevez,”
to the near post found Cahill totally read the statement. “During the
unmarked, and the Australia interna-
tional couldn’t miss.
meeting Carlos expressed his
absolute commitment to the club
Cahill was involved 15 minutes and formally withdrew his trans-
later when Baines met his touch back
with a curling right-footed shot that
fer request. Carlos’ contract
remains unchanged and both
arrowed into Joe Hart’s far corner. Carlos and the football club are
City were handed a route back into keen to focus on the opportunities
the game when Victor Anichebe was that lie ahead.”
sent off on the hour for two yellow Manager Roberto Mancini
card offences, and a grand stand fin- added: “I am pleased we are now
ish was ensured when Jagielka able to focus on pure football mat-
deflected Yaya Toure’s shot past a flat- ters and able to look forward to
footed Howard. Carlos continuing to play a signifi-
But a mixture of fine goalkeeping cant role in the club’s progress.”
and stout defending meant City, who
lost Kolo Toure to a red card in the
last minute, were to be frustrated.
Mancini said: “We have missed a TOP FOUR
big opportunity to go top and I think TEAM PLD W D L F A PTS
we are disappointed. Man Utd 16 9 7 0 36 16 34
“Football is unbelievable but the Arsenal 17 10 2 5 34 19 32
season is long and we must now start
again. There are three more games Man City 18 9 5 4 25 15 32
this month.” Chelsea 17 9 4 4 31 12 31