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When your wife’s on the

operating table, the last thing
you need is a jobsworth on
the phone.
It was a Saturday afternoon when
Sylvia Cooper was rushed into
hospital for a life-saving operation.
On Monday morning her husband
Allen phoned Aviva, apprehensive
because he hadn’t been able to
clear the costs beforehand.
Aviva advisor Hayley Gerrard told
him not to worry. She took it
on herself to make sure all the
expenses were cleared, and called
Allen daily to check on Sylvia’s
“I said to my son before I called, I
just hope I don’t get a jobsworth,”
Allen recalls. “And I didn’t. I got an
At Aviva, we know that insurance
isn’t about policies. It’s about people.
That’s why, in cities across the world,
we’re exhibiting dozens of giant
portraits celebrating the people
who are most important to us – our
You can read the stories behind the
photographs, and upload your own
photograph, at
Issue 1,236 Thursday 7 October 2010 FREE


lashes out
at banks

BY MATTHEW WEST DAVID Cameron stepped up his rheto-

ABOUT 5,000 fewer jobs than expect-

ed will be created in the City this year
new city jobs in
ric against the City yesterday, using
his first conference speech as Prime
Minister to hit out at banks and big
as government proposals to introduce business.
a permanent immigration cap, the 2010 cut from He said the tripartite system of reg-
50p tax rate and regulatory uncer-
tainty force investment banks to put
the brakes on hiring.
14,000* ulation was partly to blame for the
economic crisis, but that individual
bankers had to take more responsibil-
Economic consultancy the Centre ity.
for Economic and Business Research “Labour failed to regulate the City
(CEBR), which tracks financial servic- properly. But they didn’t force those
es recruitment, yesterday slashed its
forecast for the number of jobs creat-
ed in the City in 2010 by a third from
14,000 to 9,600, while forecasting dire
new city jobs in
banks to take massive risks with
other people’s money,” Cameron said.
On the final day of the first
Conservative conference in govern-
prospects for 2011 saying only 2,700
49,000 2011* ment for 14 years, Cameron repeated
*according to the CEBR

new jobs would be created. calls for banks to lend more to small
It expects the average number of businesses.
people working in the sector in city jobs lost in “Taxpayers bailed you out, now it’s
Britain to increase from 305,000 to 2008-9* time for you to repay the favour,” he
315,000 this year, rising to 318,000 in said.
2011. This is a significant downgrade The £2.5bn levy on banks was one
from just six months earlier when it The government is making it harder to do business in the UK says the CEBR Picture: GETTY of the coalition’s most important
forecast that the average number of achievements, he said, while aides
people working in the sector would businesses are quite concerned about entering the UK from outside of the and PricewaterhouseCoopers (PwC) confirmed he was considering a sec-
rise to 319,000 this year and 327,000 the measures that are potentially European Union to 24,100. Due to be have all expressed concerns about the ond banking levy on profits and
next year. about to be brought in because they made permanent next April, critics of immigration cap. PwC warned recent- remuneration.
The group said the coalition gov- are going to make it much harder to the cap say it means companies will ly that businesses were “struggling to Although there were warm words
ernment’s increasingly “anti-busi- do business in the UK in the future,” not be able to bring in enough skilled operate” and having to put projects for “doers, grafters, inventors, and
ness” proposals were forcing some of said Scott Corfe, economist at the workers to carry out vital functions on hold. A Treasury spokesperson entrepreneurs,” Cameron played
the City’s biggest players to freeze CEBR. that help them grow their business. said the government was committed down the importance of big business
recruitment. Corfe said the biggest concern of The CEBR says together with the 50 to ensuring the City “remains a com- to the economy. “When you think of a
“There was a lot of talk from the legal, business services and invest- per cent tax on higher earnings and petitive location for financial servic- wealth-creator, don’t think of the
coalition government when it first ment companies was the immigra- regulatory uncertainty, businesses es” but that also meant reducing “the tycoon in a glass tower. Think of the
came to power about how Britain was tion cap, introduced in July, which could be forced to move abroad. systemic risk the financial services man… who cleans windows,” he said.
open for business again but a lot of limits the number of skilled workers JP Morgan Chase, Deutsche Bank sector poses to the wider economy.” CUTS DELAY: P2, CONFERENCE: P7

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2 News CITYA.M. 7 OCTOBER 2010

Cuts to public
We need an investment-led recovery sector spending
California’s Independent Institute, has
crunched the numbers in a superb
piece of analysis.
cent of US GDP. The main problem for
the US economy is that gross private
corporate investment still remains
of the sort that caused the crisis in the
first place.
Second, one doesn’t get more pri-
set for delay
The story starts with a basic fact. It is over 20 per cent below peak – with net vate investment by chasing away

often argued that governments must private investment a disastrous two- multinationals, bashing tycoons, POLITICS
boost consumer spending by increas- thirds under its previous peak. What cheering when hedge funds relocate or
ing handouts or hiring staff. But reces- isn’t a problem at all is consumer by making the country a hostile place PROPOSED public spending cuts are
sions are rarely, if ever, triggered by a spending, which is what most people for senior executives and high earners set to be delayed to enable the coali-
EDITOR’S LETTER collapse in consumer spending, even want to boost via stimuli programmes: (who determine most investment deci- tion government to spread the pain of
though such expenditure accounts for as Higgs argues, in the second quarter sions) to be based. Stability is required, the deficit reduction more evenly
ALLISTER HEATH the bulk of GDP; rather, it is invest- of this year, personal consumption was not the constant threat of new regula- over the next few years.
ment which plummets, dragging actually at an all-time high of close to tions or taxes; what matters is the The forthcoming spending review

NE of the main arguments down overall activity and jobs (and $9.3 trillion (in 2005 inflation-adjusted expected profitability of the invest- on 20 October is expected to outline
being used by sceptics to attack sometimes eventually feeding into dollars). There are many lessons here, ments, so anything that will trash the revised timetable for cuts,
David Cameron’s austerity consumer spending). for Cameron as much as for those con- them must be avoided. The net rate of although the Treasury has insisted it
package is that Barack Obama’s Consumer spending actually vinced that trimming state spending return for non-financial UK firms is will still eliminate the deficit within a
America is still attempting to pump- increased during the downturn as a will kill the recovery. First, we need now 11.6 per cent, down from 15.1 per parliament as David Cameron out-
prime demand. If the US thinks the percentage of US GDP, going up from firms to spend more; the UK and US cent in the fourth quarter of 2007. lined yesterday in his speech.
way out is for the state to spend more, 69.2 per cent in the fourth quarter of have become even more imbalanced. Cameron is right to stick with his Ahead of chancellor George
and rack up an ever larger deficit, 2007 to 71 per cent in the second quar- They rely on too much consumer austerity policy (though he was also Osborne’s review the government is
then why aren’t we following suit? ter of 2009. Private domestic US invest- spending and too little on savings- right to put the cuts in context yester- looking at contracts and redundancy
So it is worth taking a look at what ment peaked in the first quarter of financed private investment. However, day – they are not that large and are costs, according to the Financial
is really happening in the US, why 2006 when $2.3 trillion (in 2005 dol- unlike last time, the right investments spread over many years). But his mixed Times. The government refused yes-
Obama’s stimulus is actually failing to lars) were spent by firms, worth 17.5 need to take place. Trying to pump messages towards business is a mis- terday to confirm it would maintain
stimulate and why the coalition right per cent of GDP; it troughed in the sec- artificially easy credit back into the take. We need to encourage firms to the £23bn spending cuts in 2011-12,
to be going down a different route. ond quarter of 2009, having collapsed economy will merely lead to another invest, not consumers to spend. rising to £83bn a year cuts by 2014-15,
Robert Higgs, an economist at 36 per cent to $1.45 trillion, 11.3 per wave of incorrect investment decisions that it has already outlined.

7th Floor, Centurion House,

24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
IMF warns of
risk of cutting
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
UK ECONOMY world growth next year from 4.3 per

Business Features Editor Marc Sidwell

Lifestyle Editor Zoe Strimpel BY STEVE DINNEEN cent to 4.2 per cent and warned that Kerviel being led away from court after his conviction Picture: REUTERS
Art Director Darren Soulsby the global recovery could fizzle out. It

Jailed Kerviel is crushed

Pictures Alex Ridley THE government would have to revis- highlighted the dangers associated
it its plans for deep spending cuts if with yawning public sector pensions
Commercial growth substantially disappoints, the stretching finances to breaking point.
Sales Director Jeremy Slattery International Monetary Fund warned The IMF’s report came as the head
Commercial Director Harry Owen yesterday. of the World Bank praised the govern-
Head of Distribution Nick Owen Speaking at the launch of the ment’s determination to cut Britain’s
agency’s World Economic Outlook huge debt, saying that its actions BANKING being “hit on the head with a club”.

Distribution helpline report, which cut the UK’s projected were “courageous and wise”. Kerviel has consistently argued
If you have any comments about the distribution BY STEVE DINNEEN
of City A.M. Please ring 0207 015 1230, or email rate of growth from 2.1 per cent to Robert Zoellick said that the debts that Societe Generale knew he had two per cent, the fund’s chief econo- carried by many countries after the CONVICTED fraudster Jerome Kerviel traded €50bn and actively encour-
mist Olivier Blanchard said the UK’s economic crisis would potentially said yesterday he was “crushed” by aged risky behaviour.
Editorial Statement plans would have a negative impact sow the seeds of a future crisis. his jail term for running up trading But a judge found no evidence of
This newspaper adheres to the system of on growth. losses of €4.9bn (£4.3bn). this as she handed down the jail term
self-regulation overseen by the Press Complaints The comments contradict the IMF’s Dominique Strauss- In his first interview since he was on Tuesday.
Commission. The PCC takes complaints about the recent report praising the govern- handed a five year sentence, with two Kerviel is still liable for the money
editorial content of publications under the Editor’s Kahn has warned that
ment’s plans to slash spending, and suspended, he said: “I’m starting to he lost, despite the fact that, given his
Code of Practice, a copy of which can be found at Blanchard said the warning on cut- government promises digest it, but I’m nonetheless crushed last salary at SocGen, it will take the
Printed by Newsfax International,
ting too much, too fast applied to all could trigger a second by the weight of the sanction and the former banker nearly 50,000 years to
Beam Reach 5 Business Park, advanced economics, not just the UK. world recession weight of responsibility the ruling pay off the debt.
Marsh Way, Rainham, Essex, RM13 8RS The IMF reduced its forecast for places on me,” adding it was like He says he will appeal the decision.


with BT about buying the stake in
Tech Mahindra.

Cameron to turn his pro-enterprise Rising markets through September The British offices of a banknote The “time has now come” for the Gold hit yet another record on its
rhetoric into a detailed strategy that and a revived appetite for risk have manufacturer half-owned by Bank of England to pump more spurt higher on broad concerns that
would deliver better infrastructure propelled some of the world’s most Australia’s central bank were raided money into the UK economy, accord- aggressive monetary easing is desta-
and remove obstacles to growth. prominent hedge funds to post their by police yesterday as part of an inter- ing to the Institute of Directors. The bilizing currency markets. The most
David Frost, director-general of the biggest monthly gains this year. Big- national investigation into suspected organisation wants a further £50bn in actively traded gold contract for
British Chambers of Commerce said name hedge fund managers such as bribery. Over 100 police from the quantitative easing (QE), on top of the December delivery finished $7.40
corporate Britain was strongly behind Renaissance Technologies, Paulson & Serious Fraud Office carried out £200bn already injected into the econ- higher at $1,347.70 an ounce on the
the government’s effort to shrink the Co and Lansdowne Partners have all searches at nine properties connected omy to boost the money supply. Comex division of the New York
budget deficit but nervous about the reported large gains to investors in to Securency International, a joint Despite better than expected services Mercantile Exchange. Gold hit a high
impact that cuts could have. the past few days. venture between the Reserve Bank of sector data yesterday, industry surveys of $1,351 during the day.
Australia and Innovia Films, a British have been pointing to a slowdown in
Private equity groups are in talks Twitter and Skype, two of the fastest- SABMILLER LOOKS TO ROLL OUT £6BN SAINSBURY'S SALES RISE DESPITE German manufacturing orders rose
with BT about buying the UK tele- growing private internet companies, BARREL IN AFRICA 'DIFFICULT CONDITIONS' in August, sharply exceeding expecta-
coms group’s 31 per cent stake in have appointed new chief executives. SABMiller is in talks to swallow one of Sainsbury's sales rose 2.9pc in the sec- tions, due to strong demand from
Tech Mahindra, one of India’s largest Skype has hired Tony Bates, formerly Africa’s biggest brewers in a deal ond quarter, helped by online sales euro-zone countries, the Economics
software services providers, in a deal a rising star at Cisco Systems, as its worth more than £6 billion.The and demand for premium and non- Ministry said Wednesday. The rise
worth up to $800m (£506m). Apax new chief executive. Meanwhile, Dick Times understands that the owner of food products, the group said in a marks a rebound from the previous
Partners, Providence Equity and Costolo who joined Twitter last year Grolsch and Peroni Nastro Azzurro is trading update Sales rose slightly in month’s decline and signals rising
Goldman Sachs Private Equity are as chief operating officer was named running the rule over the African the second quarter, but it warned that industrial production for the coming
among the buy-out groups in talks chief executive on Monday. beer operations of Groupe Castel. the outlook remained challenging. months.
CITYA.M. 7 OCTOBER 2010 News 3

Ireland rating
BP to develop slashed as its
gas fields in misery grows


IRELAND’S economic turmoil contin-
ued yesterday as Fitch cut its credit
The news came a day after Moody’s
said it was considering downgrading
Ireland, driving up the nation’s bor-
rowing costs.

ENERGY BP is the largest producer in The decision heaps further pres-

BY MATTHEW WEST Azerbaijan and one of the largest sure on a government saddled with a
investors in the country, having Irish finance minister Brian Lenihan saw the country’s rating cut again Picture: PA debt pile set to hit a staggering
BP is expected to close a deal with played a key role in opening it to €155bn (£136bn) this year – equiva-
Azerbaijan’s national oil company international oil companies after the TIME LINE | IRELAND’S MISERY lent to £100,000 for each of the coun-
today to explore and develop a huge fall of the Soviet Union. Developing try’s 1.5m households.
natural-gas field in the Caspian Sea. the Shafag-Asiman gas field would ● 6 October 2010 budget from December. As well as cutting Ireland to A+
The field, Shafag-Asiman, has esti- also reinforce Azerbaijan'’ role as a ris- Fitch cuts Ireland's credit rating to A+ from AA-, Fitch put its rating on a
mated reserves of 17 trillion cubic ing gas producer and exporter. from AA-, citing the huge cost of clean- ● 9 September 2010 negative outlook, also pointing to
feet, according to the State Oil Meanwhile, Russian joint venture uncertainty over the country’s waver-
Company of the Azerbaijan Republic TNK-BP has stepped up its efforts to ing up its banks. Fitch also put its rating The government outlines a compromise ing economic recovery.
(Socar). If confirmed, that would buy BP’s assets in Algeria, which the on a negative outlook. plan to wind down Anglo via a two-way Fitch said: “The downgrade of
make it almost as large as company is selling as part of a $30bn split into an Asset Recovery Bank and a Ireland reflects the exceptional and
Azerbaijan’s massive Shah Deniz gas asset disposal plan. ● 30 September 2010 Funding Bank. greater-than-expected fiscal cost asso-
field, where BP is already operating. Ireland discloses a worst case price tag ciated with the government’s recapi-
The deal is BP’s first since Bob ANALYSIS l BP 436.30 of over €50bn (£44bn) for bailing out ● 24 August 2010 talisation of the Irish banks,
Dudley took over as chief executive of p 6 Oct its banks and announces it will have to Standard & Poor's cuts Ireland's long- especially Anglo Irish Bank. The nega-
the energy giant. Dudley is currently 440
make more budget savings. term rating by one notch to 'AA-', and tive outlook reflects the uncertainty
visiting BP’s operations in Azerbaijan assigns the country a negative outlook. regarding the timing and strength of
along with his predecessor, Tony ● 28 September 2010 Moody's cut its rating to Aa2 in July. economic recovery and medium-term
Hayward. Standard & Poor's and Fitch warn fiscal consolidation effort.”
The deal is a 50-50 production-shar- Ireland's rating is at risk of further ● 10 August 2009 The Irish financial regulator yester-
ing agreement over 30 years and day warned of more bad news as the
would cement BP’s position in the oil-
downgrades triggering a fresh leap in Anglo Irish Bank wins temporary clear- country’s property market continues
rich former Soviet republic, where it 360 borrowing costs and calls for the belea- ance from the EU for a fresh bailout of to unravel. The government last week
is one of the country’s biggest foreign guered government to bring forward its up to €10bn, more than expected. revealed it could cost up to €50bn to
investors. 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep bail out economy.
The UK’s number financial spread
betting provider.*
CITYA.M. 7 OCTOBER 2010 News 5

BA, AA and
Iberia name
banking fees lag tie-up routes
peers across globe


BRITISH AIRWAYS, American Airlines,

and Spain’s Iberia unveiled four new
routes and promised passengers
BANKING which saw the overwhelming debt lower prices and flight flexibility as

BY VICTORIA BATES burdens on fiscally-challenged they launched an $8bn (£5bn) transat-

Eurozone states threaten to plunge lantic joint business yesterday.
INVESTMENT banking fees in Europe, the entire area into chaos. The trio are strengthening their
the Middle East and Africa (EMEA) Across all fee revenue streams – existing oneworld alliance ties — but
slipped far behind the rest of the world investment banking, bonds, equity, stopping short of a full financial
over the first three quarters of the year, loans and M&A – JP Morgan pulled in merger because of strict US laws that
with the region’s banks taking a 15.2 the most in fees, taking 6.4 per cent of bar foreign ownership in the airline
per cent cut in fees in comparison to the global market. In the EMEA industry — as many airlines struggle
an 8.7 per cent global increase. region, Bank of America Merrill to stay airborne in the wake of the
Globally, the fee income pool for Lynch dominated with 4.9 per cent. global financial crisis.
investment banks rose to $57.65bn Goldman Sachs was the top-ranked However, British Airways chief
(£36.35bn). The biggest proportion of global M&A adviser, acting on 6.5 per executive Willie Walsh said of the
this came from the Americas, which cent of the world’s deals. deal: “You are going to witness a new
saw fees boosted 20.7 per cent to In total, M&A advisory fees rocket- era of competition. Customers flying
$28.92bn compared to the first nine ed up 37 per cent over the period to transatlantic have never had so much
months of 2009, while Asia-Pacific $20.4bn, as improving economic con- choice.”
recorded the fastest fee growth, up by ditions heralded a boom in the num- The four new routes are: New York
over a quarter to $8.69bn. ber of deals coming to market. The ANTHONY ODGERS, a senior member of the corporate restructuring team at Deutsche to Budapest, Chicago to Helsinki,
The EMEA region was alone across only asset class to record a year-on- Bank, has joined the body responsible for looking after the government’s assets, the London to San Diego and Madrid to
the globe in recording a fall, taking year decline was equity capital mar- Shareholder Executive, as it steps up efforts to find buyers for assets including the Tote, Los Angeles. The new venture’s route
investment banking fees down to kets, where fees dropped 15 per cent Royal Mail and the Student Loans portfolio. He joined Deutsche Bank in May 2007 as network will cover 433 destinations

$15.92bn in a tumultuous period to $14.5bn. chief operating officer for telecoms M&A in Europe from Lehman Brothers. in 105 countries.

US wades into hedge

fund tussle in Europe
REGULATION undermine France’s upcoming presi- is home to most European hedge

BY HARRY BANKS dency of the Group of 20 countries. funds.

France joined European diplomats In his letter, Geithner writes: “A pro-
US TREASURY secretary Tim Geithner and lawmakers yesterday in the latest posal that limits or delays the access of
has warned the French economy min- attempt to break the impasse on the third country firms to a passport --
ister Christine Lagarde that curbing shape of the new EU rules, entitled while granting EU domiciled man-
foreign hedge funds in Europe could Alternative Investment Fund agers and funds access to the
cause a rift between the continent at Managers Directive. European market -- would be discrimi-
the US government. But negotiations remain difficult natory and contrary to G20 commit-

In a letter, sent late on Tuesday and after Lagarde warned last week she ments.
seen by journalists, Geithner increases would stand her ground in opposing “We would consider adoption of
pressure on Paris to allow concessions part of the law that would make it easy such a proposal as unfair and damag-
on new European controls for private for foreign funds to work in the EU. ing to our shared interest in maintain-
equity and hedge funds. Lagarde believes issuing a 27-coun- ing an open, global financial system.”
Officials familiar with US thinking try EU licence to foreign funds would George Osborne, who has argued on
said France’s position had antagonised be a mistake because controls on those the side of Washington for an EU
Washington, which is worried that operators are unlikely to be tight. licence for foreign funds, also received
American hedge funds will be blocked Others suspect her of taking a swipe at a letter from Geithner explaining his
from Europe, and that the row could London, whose fashionable West End position.

Betfair investors agree IPO

range of up to £14 per share
LEISURE strong enough. 500 are employees. Its other big share-

BY MATTHEW WEST Betfair was launched ten years ago holders include the private equity
and allows gamblers to offer odds and firms Balderton Capital and Index
BETFAIR will announce its plan to bets to each other via the internet, Ventures and Richard Koch, co-
float on the Stock Exchange today eliminating the need for a bookmak- founder of LEK Consulting.
after a meeting of the company’s 700 er. Japanese bank Softbank bought a
shareholders voted in favour of an ini- It now claims to be the largest gam- 21.5 per cent stake for £13.20 a share
tial public offering (IPO) at a meeting bling community in the world. It also four years ago. The bank is thought to
last night. sponsors sporting events, including have objected to a listing at a price
City A.M. understands the price horseracing. below this level, forcing Betfair to
range will be between £11 and £14 per But there are concerns the IPO delay a planned IPO in August. A June
share, valuing the company at could be shunned by investors who listing was also postponed. MORE NEWS WWW.GANT.CO.UK

between £1.25bn and £1.59bn. suffered losses after the flotation of Founders Ed Wray and Andrew
About 10 per cent of the stock will Ocado, the online supermarket deliv- Black own 22.5 per cent of the busi-

be floated in the IPO although more ery service, this year. ness — worth between £281m and LONDON E14 5AX
TEL 020 7715 7470
shares could be issued if demand is Of Betfair’s 700 shareholders about £359m at the proposed IPO price.
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CITYA.M. 7 OCTOBER 2010 Conservative Conference 7

Hague acts to assuage fears

coalition is too pro-Europe
ence gave the foreign secretary a Chris Bryant dismissed the move as
CONSERVATIVE standing ovation, after he said he “posturing”, pointing out that the
CONFERENCE would “reaffirm once and for all the announcement will have little or no
BY DAVID CROW IN BIRMINGHAM sovereignty of our ancient parlia- impact. All EU law only takes effect
ment”. Currently, parliamentary sov- because of the European
WILLIAM Hague yesterday pledged to ereignty is only rooted in common Communities Act 1972, which parlia-
enshrine the sovereignty of the law, but the government has decided ment can amend or repeal at any time.
British Parliament over the European to include a clause in the forthcoming Even Hague admitted the move
Union, in a bid to quell fears among EU Bill, stating that European law can would “not alter the existing order in
Tory activists that the coalition gov- only take effect in the UK if parlia- relation to EU law” but insisted that it
ernment is too pro-Europe. ment decides that it should. would “put the matter beyond specu-
Delegates at the Tory party confer- However, former foreign minister lation”.
Liam Fox said future defence cuts are Labour’s fault in yesterday’s speech Picture: PA

Carriers still
sore point for
defence cuts
CONSERVATIVE Earlier this week, former Prime
Minister Gordon Brown made a rare
CONFERENCE intervention in national politics, and
BY DAVID CROW IN BIRMINGHAM insisted that both aircraft carriers
should be built as planned.
LIAM Fox yesterday confirmed that the But yesterday Fox responded with a
Trident nuclear deterrent would be scathing attack on Labour’s handling
replaced, earning him a huge round of of the defence budget.
applause at the Tory conference, but He said: “We all know about
the future of two aircraft carriers Labour’s toxic economic legacy. There
remains unclear. is an unfunded liability in defence of
“The first duty of the government is around £38bn over the next 10 years –
defence of the realm. That is why we compared to an annual budget of only
will maintain Britain’s nuclear deter- £37bn. Fox added that the UK would
rent and will go ahead with the tri- pay £46bn on debt interest payments
dent replacement programme,” the next year, a sum that could purchase
defence secretary said. four aircraft carriers, 300 Chinook hel-
But Fox warned the government icopters, 13,000 troops, 10 destroyers,
was approaching the defence spend- 50 cargo planes, and pay for a com-
ing review “with unavoidably con- plete refurbishment of forces’ living
strained finances”, adding to fears that quarters.
at least one of the Navy’s two aircraft Later, in his first conference speech
carriers could be scrapped. as Prime Minister, David Cameron said
The government could scrap both the defence review would “match our
ships, which are expected to cost some commitments with the resources
£2.5bn each to build, but fears that the we’ve got”, and warned of “big
impact could prove fatal for Britain’s changes” for Britain’s military.
ship building industry. Another Resources for the Afghanistan war
option is building just one carrier and will be maintained or improved, but
keeping it in a state of “extended readi- the Navy and Royal Air Force are brac-
ness”, essentially mothballing it. ing themselves for swingeing cuts.

Pilot sports events established to

boost participation among young
including Olympic and Paralympic

disciplines. It will culminate in coun-
SCHOOLS from nine areas in England ty-level events next summer, which
will participate in a pilot sports event will help finalise plans for Olympic
next year as part of efforts to ensure year 2012.
the 2012 Olympics gets more young- The 2012 event will end with a
sters playing competitive games. national competition in the Olympic
Announcing the event at the Tory Park in London, featuring opening
conference, culture secretary Jeremy and closing ceremonies and medals.
Hunt said only around one in five Meanwhile, Hunt will today unveil
children regularly plays sport against plans for the government’s long-term
other schools. ambition for the Olympic park once
“We are seeking a lasting legacy in the games have ended.
the numbers playing competitive Last week footballers from West
sport,” Hunt told delegates. Ham visited Downing Street to pres-
The Schools Olympics pilot event ent the club’s bid to run the Olympic
will start early in 2011 and allow chil- stadium and convert it into a 60,000
dren to compete in a range of sports seater arena for community use.
8 Consumer News CITYA.M. 7 OCTOBER 2010

Marston’s is
Prada mulls a boosted by
Hong Kong pub grub

listing launch

PUBS and brewing group Marston’s
said earnings for the year to 2 October
were in line with its expectations, as
increasing food sales boosted rev-
enues at its managed pubs division.
Like-for-like sales at the managed

RETAIL offering at the time. Prada may fetch pubs unit were 1.7 per cent ahead of
BY HARRY BANKS a valuation in excess of Louis Vuitton last year, as food sales, which account
Moet Hennessy SA’s trading multi- for about 40 per cent of total sales,
ITALIAN fashion house Prada is ples, sources told Bloomberg. Chief executive Ken McMeikan says sales have been resilient despite the recent recession grew 2.5 per cent.
studying an initial public offering The world’s largest maker of luxury Drinks sales climbed 1.4 per cent.

Greggs in slim sales rise

(IPO) in Hong Kong for the first half of goods has an enterprise value of 11.65 The company, which like other pub
2011. times 2010 earnings before interest, companies has made a push to
Prada, which has scrapped an IPO tax, depreciation and amortisation. increase higher margin food sales,
four times in the past ten years, may Prada’s Ebitda more than doubled said like-for-like profit at its tenanted

thanks to bacon rolls

raise more money through a primary to €225.2m (£197.3m) in the six pubs, which are owned by pub compa-
listing in Hong Kong than in Milan months to 31 July. nies but run by publicans, fell 3.7 per
because individual investors are more Revenue climbed 29 per cent to cent year-on-year.
active in Asia, according to experts. €936.5m, led by a 47 per cent gain in This was better than the 4.5 per
Prada, which owns top-selling Asia. Prada’s debt was €485m at the cent fall reported at interim results in
brands Miu Miu and Church’s, may end of 2009, the company said in May.
hire banks as soon as next month, a March. RETAIL group’s best-selling sandwich line.

source told Bloomberg. Prada was founded by head design- It is now extending its breakfast ANALYSIS l Marston’s
A Prada spokesman said the Prada er Miuccia Prada’s grandfather Mario range with new products such as 102 p 97.60
company is continuing to monitor Prada in 1913. HIGH street bakery chain Greggs yes- croissants, pain au chocolate and por- 6 Oct
market conditions. terday reported a narrow rise in third- ridge.
Prada is controlled by chief exexcu- FAST FACTS | PRADA quarter sales thanks to its breakfast Chief executive Ken McMeikan said 98
tive Patrizio Bertelli, his wife Miuccia range. the company was proving resilient.:
Prada and her family. ● The company was founded in Milan in 1913. The group, which has 1,451 stores “As we expected, the trading environ-
The company ditched plans to list ● It still operates from its first outlet in Milan’s and serves six million customers ment has been tough and is likely to 94
in 2008 because of adverse market 19th-century Galleria shopping. every week, said like-for-like sales remain so, with consumer spending
conditions. Prada had hired Intesa ● Prada also owns the Miu Miu, Car Shoe and increased 0.2 per cent for the 13 continuing to be constrained and
Sanpaolo SpA, UniCredit SpA and Church’s brands. weeks to 2 October. inflationary pressures building for
Goldman Sachs Group to manage the Greggs said its bacon roll was the next year,” he said. 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep

Future City after-work debates

every night this week
CITYA.M. 7 OCTOBER 2010 Consumer News 9

Bullish spending means shares are a hold

ANALYSIS l Sainsbury

AINSBURY’S was a little more stores and with like-for -like sales up
low key about its sales rise 2.9 per cent and online sales rising, 400 p 387.10
and consumer sentiment the company’s data is far from 6 Oct
than Tesco which posted bleak. Sam Hart at Charles Stanley 380
sales figures earlier in the week. said the shares had been prospering
With Sir Terry Leahy signing off but expectations should now be

2.9% 266,000 with his last set of results it is hard-

ly surprising that Tesco has stolen
reined in. In a note he said: “We
think the valuation is now starting

sq feet some of Sainsbury’s thunder.

However, Sainsbury’s chief execu-
to look slightly rich and anticipate a
period of share price consolidation.

tive Justin King echoed Sir Terry’s “Our recommendation is down- 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep
view that consumer confidence was graded from ‘Accumulate’ to ‘Hold’.
like-for like increase of new floorspace far from falling off a cliff. “We see better value in Tesco
opened Sainsbury’s has added more than (‘Accumulate’) and Morrison
in sales in second
quarter 266,000 sq ft to its retail space with
the opening of three new super-
(‘Accumulate’) at present.”
The shares are “hold” for now.
Analysis by John Dunne

25% 520
rise in online sales new jobs planned

J Sainsbury chief executive Justin King is rapidly expanding store space

Non-food lifts
J Sainsbury
would help it to outstrip rival Asda,

despite its rival recently acquiring the
BY JOHN DUNNE Netto chain.
J SAINSBURY yesterday reported a King said Sainsbury’s was “a good
sales rise in the second quarter as it way ahead” of its rivals with its sales
pinned its hopes on catching Asda by lift.
rapidly expanding store space. He said the chain was performing
The UK’s third largest chain behind well in a “challenging consumer cli-
Tesco and Asda, said non-food items mate”, and that he was not expecting
were fuelling its performance. any significant impact when public
Sainsbury’s saw a 2.9 per cent like- spending cuts kick-in because people
for-like increase in sales in the period, had already prepared themselves and
which also saw the opening of its changed their spending habits where
largest ever store in Kent. And a total necessary.
of 266,000 sq feet of new floorspace “Consumers are already dialled in
was opened in the period. to what is happening. They have been
Sainsbury’s said its non-food busi- for a long time now,” King said.
ness was growing at three times the He said a reduction in petrol prices
rate of food, with its Tu clothing rage had given some relief to cash-strapped
“leading the charge” in sales. Its families and put more money back in
online sales were also performing their pockets. Sainsbury’s said its
well, increasing by 25 per cent in the back to school clothes were flying off
period. the shelves while fair trade goods
Chief executive Justin King said the were also on the march with growth
boost in floorspace at the chain of 25 per cent for the second quarter.

Thorntons profit slumps with

rising cocoa price taking its toll
sales. It also warned of the impact of

spiralling cocoa prices causing possi-
CHOCOLATE maker and seller ble price rises.
Thorntons posted a 2.4 per cent fall in “We have strengthened our senior
full-year profit as own store sales fell retail management team and we
and said it expected market condi- believe that this, together with exten-
tions to remain tough. sive product innovation and changes
The firm, which issued a profit to the promotional and marketing
warning in May, said yesterday it programmes, should have a positive
made a profit before tax of £6.1m in impact on trading in the lead up to
the year to 26 June. That compares Christmas,” it said in a statement.
with analysts’ consensus forecast of The firm said trading since the
£6.5m. year-end had been in line with inter-
The group, which trades from nal expectations. Thorntons, which
around 600 stores, said overall rev- cut net debt to £26m during the year,
enue was flat at £214.6m. maintained its total dividend payout
Thorntons said its key challenge at 6.05p.
continues to be the own stores chan- The traditional chocolate maker
nel, which saw a 3.6 per cent fall in was founded 99 years ago.
The Capitalist
10 CITYA.M. 7 OCTOBER 2010

CITY GYM “Our two

chubby con-
LAUNCHES testants will
battle it out
FAT BANKER to achieve
CHALLENGE the most
HOT ON the heels of last week’s much- results over
lauded “Best Dressed Banker” award, and
The Capitalist’s own rundown of the top ten eight weeks” Henry Kravis donated $100m Picture: REUTERS
hunkiest gents and loveliest ladies in the
City, published in the summer, comes towards an all-singing, all-dancing new
another, err, extra-curricular competition campus, one of whose buildings will be
for London’s financiers. named after him.
Matt Roberts, personal trainer to the That hefty sum matches a donation made
stars, is on a mission to help the City get by Steve Schwarzman – the Blackstone
healthier and into shape – which explains Group founder – to the New York Public
why his personal training club on Library a couple of years ago.
Cornhill is offering a fitness package Matt Roberts, person- Next up on the tit-for-tat list for Kravis –
worth £1,600 free to two of the fattest
bankers in the business.
al trainer to the stars,
is on a mission to help
TWIST IN THE TALE a kindly corporate biography, along the
Much humming and hah-ing in the City same vein as the newly-released “King of
The challenge? Said chubby bankers the City get into shape yesterday over a peculiar twist in the tale Capital”, which has just been published
must go head to head against each other of Liverpool FC’s sale to New England about Blackstone and aims (according to
to see who can get the best results in eight Picture: GETTY Ventures, owner of the Boston Red Sox early reviews) to show that the firm was a
weeks, with any sponsorship money from baseball team. disciplined and risk-aware investor in the
their efforts going to charity. Liverpool chairman Martin Broughton crisis.
Two hard-core personal training ses- is being advised on the sale by Barclays KKR’s contribution to literary history, by
sions a week will be supplemented by two Capital, headed by Bob Diamond – who is contrast, is so far limited to the best-seller
compulsory workouts off our corpulent himself, of course, an avowed Red Sox about the firm’s 1989 takeover of RJR
friends’ own backs, plus (cue wagging fanatic. How very convenient. Nabisco, with the not-so-complimentary
accusatory finger) a “strict dietary title “Barbarians at the Gate”.
That’s put paid to any more steak-and- FESTIVAL VIBE
red wine lunches at Gaucho, then. A date for the diaries of musi-
cally-inclined City types: 22
Speaking of the new Blackstone book,
A fine filly at Newmarket Picture: October, when poverty charity there have been a few gems to come
LEGAL EAGLES Oxfam is bringing its month- out of Kings of Capital up to now.
Much excitement over at law firm Clifford long “Oxjam” festival of music to We all knew that Steve
Chance, which began voting earlier this
week on a successor to current senior
HORSING AROUND the City. Leadenhall Market is Schwarzman was a colourful char-
A sterling show of loyalty from Irish racing going to be hosting the main acter, of course – he did, after all,
partner Stuart Popham, who’s stepping billionaire John Magnier over the past few rock and acoustic stage, featur- recently cause a furore by
down at the end of the year. days at the Tattersalls October yearling sale ing 35 London and South East comparing President
The three candidates who’ve tossed at Newmarket. bands over 12 hours, includ- Obama’s Wall Street
their names into the hat are tax partner As a crowd of racing and business ing The Roolettes, The tax reforms to the Nazi
Jonathan Elman, banking and finance moguls – including Magnier’s racing Obscuritones, Zen Motel, invasion of Poland. But
partner Malcolm Sweeting and Daniela investment partners JP McManus and Cavilry and The Weller did anyone ever expect
Weber Rey, a German partner – who Michael Tabor and Eddie Stobart group Collective. that the private equity mogul was a
would be the first woman ever to hold the chief executive Andrew Tinkler – gathered The organisers are hoping to lover of the ballet?
hallowed position within the firm’s to coo over the finest fillies and colts, it raise £4,000 on the night – which According to the book,
ranks. was Magnier who put his money where his should inspire enthusiasts to get down Schwarzman started up a club
But while there are still over two weeks mouth is. there and boogie. while he was in his first year at Yale,
of voting to go, The Capitalist hears early After stumping up £1.2m for one filly the Davenport Ballet Society (named after
indications from friends at the firm that on Tuesday – a three-year record high his residential college) – arranging for
the historic election of a lady to the top
job is unlikely to come to fruition.
price for a yearling sale – the Irish tycoon
yesterday added another new filly to his
SUM TOTAL members to see a dress rehearsal of the
So, Henry Kravis – one of the founders of Nutcracker by the New York City Ballet
Apparently, the smart money’s on stable for £900,000. private equity giant Kohlberg, Kravis and organising a dance festival. One
Sweeting – who ticks all the boxes as a Both young’uns were bred from Roberts – has doled out a stonking acquaintance describes Schwarzman’s
jovial chap who also works in the sought- Magnier’s own horse Galileo, so he’s keep- $100m (£63m) to his former university, attachment to the ballet as “an excuse to
after area of finance… ing things happily in the family. the Columbia Business School, to put meet girls”. Ever the shrewd operator, eh?
CITYA.M. 7 OCTOBER 2010 News 11

GE closes $4.6bn of deals

to build up its business...
“Dresser has a global franchise and executive Jeff Immelt has said the

BY HARRY BANKS brand with 60 per cent of sales outside company will focus on deals sized at
of North America, which will be accel- $1bn to $3bn in areas that comple-
GENERAL ELECTRIC (GE) yesterday erated by GE’s global footprint,” said ment its core industrial and finance
made a pair of major acquisitions John Krenicki, a GE vice chairman of businesses. The company is in the
despite being spurned in a third its energy infrastructure division. process of selling its NBC Universal
attempt to buy a UK oil firm, as the Its GE Capital finance arm, which media business to the biggest US cable
largest US conglomerate builds up its had been its weakest point through operator Comcast.
energy and finance arms. the recession had bought $1.6bn of The payoff of the company’s latest
GE reached a $3bn (£1.9bn) deal to retail credit assets from Citigroup. round of deals is yet to be seen, said
buy Dresser, a maker of gas engines GE has been an active acquirer over senior portfolio manager Peter Klein at
used by oil and gas production firms. most of the past decade, and chief Fifth Third Asset Management. General Electric chief executive and chairman Jeffrey Immelt (centre) Picture: GETTY

... as it’s rebuffed in $1.2bn

bid for oil firm Wellstream
This follows a period when GE was

BY HARRY BANKS more active in selling operations,
including its NBC Universal media
GENERAL ELECTRIC (GE) was spurned unit and parts of its finance opera-
in one of its largest recent efforts to tion.
build up its industrial businesses, Wellstream would not comment
when British oilfield services on GE’s statement that it had made a
Wellstream rejected a $1.2bn (£755m) proposal at 750p per share, which led
takeover approach. some investors to conclude the oil
News of Wellstream’s rejection services firm may be talking to other
came on the same day GE said it suitors.
would buy Dresser, a maker of gas Fairfield, Connecticut-based GE,
engines used to power oil and natural which also owns Vetco Gray, a maker
gas production equipment, and retail of equipment used in deep-sea oil and
credit assets from Citigroup. gas production, said that it would
The US conglomerate’s offer for keep its options open.
Wellstream comes at a time when GE “GE is disciplined in its acquisi-
officials said the firm could have tions, and as such, there can be no
$30bn available for acquisitions over certainty that it will take any further
the next few years. action,” the company said.

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CITYA.M. 7 OCTOBER 2010 News 13

Goldman’s Weinberg dies

a senior director since 1999. from the position of janitor’s assis-

He was also deeply committed to tant to become chief executive of the
BY VICTORIA BATES philanthropy, having set up his own firm by 1930. He led the bank for
SIDNEY Weinberg Jr, a scion of the charity – the Sidney J. Weinberg Jr nearly four decades until his death in
banking family whose members led Foundation – in 1971 to support the 1969, during which time his power
Goldman Sachs for the best part of arts, children and youth projects, and influence earned him the nick-
the last century, has died aged 87. education, environmental causes and name “Mr Wall Street”.
Weinberg Jr joined the firm in health organisations. Weinberg Jr’s brother, John
1965, moving up to lead its invest- His father, Sidney J. Weinberg, had Weinberg, was also formerly a chief
ment banking division for ten years previously started work at Goldman executive of the bank between 1976
All in the family: (l to r) John Wienberg, Sidney Weinberg Jr, Sidney Wienberg Picture: GETTY between 1978 and 1988. He had been in 1907 at just 16, working his way up and 1990. He died in 2006.


may block
forecast on Rio venture
higher traffic

RIO TINTO and BHP Billiton shares
gained more than three per cent each
yesterday after Rio insisted that its
$116bn (£73bn) joint venture plans
are not close to collapse.

BY EMMA SADOWSKI cial impact over the period it took The FTSE 100 firm warned however
from the closure of European air- that competition watchdogs may
EASYJET’S shares, soared yesterday as space during the eruption of the scupper more than a years’ worth of
the budget airline boosted its 2010 Eyjafjallajokull volcano will come efforts for a joint iron ore production
profit expectations after reporting down from £65m to £60m. plant in Western Australia.
strong September traffic figures. Last month easyJet flew 4.7m pas- The company said competition bod-
The airline’s senior management, sengers, marking an eight per cent ies had recently “indicate[d] potential
including newly appointed chief exec- rise on September last year when obstacles to achieving clearance for
utive Carolyn McCall, have increased 4.4m people used its services. the joint venture”. The watchdog in
pre-tax profit expectations for the full The rise is in conjunction with Australia has delayed its final ruling.
year, despite recent problems with annual rising passenger numbers, A spokesperson for the European
the airline’s punctuality, disruption which the airline said grew by 7.9 per Commission, which must also
from the Icelandic volcano and an cent to 48.7m over the last 12 months. approve the deal, said yesterday it
ongoing bitter dispute with founder The airline also filled almost 90 per expects to conclude its preliminary
Sir Stelios Haji-Ioannou. cent of available seats on its flights, investigation soon. If the Commission
Anticipations are that profits marking a rise from 2009 when it filled finds that the venture poses a threat
before tax for the year to the end of 88.1 per cent of its flights. The good to competition, it can begin a lengthy
September 2010 will come in slightly news caused its shares to rise 12 per full investigation and ultimately
above £150m. The airline had previ- cent to 433.30p – a two-month high. block the deal.
ously estimated its profit would come Rio also mentioned the Japanese
in between £100m to £150m. ANALYSIS l easyJet 433.30 and Korean regulators in its state-
Picture: REUTERS

McCall said yesterday that easyJet’s 440 p

6 Oct ment late on Monday, but neither was
commercial performance remained available for comment yesterday.
robust and consequently total rev- 420 BHP Billiton’s spokesperson said
enue per seat is expected to rise by six the firm was not likely to follow suit
per cent during the period. 400 with a statement to the stock market,
“This robust financial performance but said: “The joint venture continues
in a tough trading environment is a 380 FACEBOOK will give users the ability to download all the information they have to be assessed by the regulators.”
tribute to easyJet’s unique blend of uploaded to the site and make it easier to see how individual applications are using per- Numis Securities said in a note:
the lowest prices to the most conven- sonal information, chief executive Mark Zuckerberg said yesterday, answering two main “[T]he ongoing delays probably mean
ient airports,” said McCall. criticisms that have dogged the site for years. The feature, called “Download your that if the regulators don’t kill the
The airline expects that the finan- 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep Information,” will give users a “.zip file” with all the data they have put up on the site. deal then Rio’s shareholders might.”

Arden chief makes a premature exit Accenture to buy Ariba’s

after Fairfax takeover plan stumbles assets in $51m cash deal
exchange omits any mention of the Arden Partners in September Shares of Dublin, Ireland-based


strategic differences and advisers said warned that it was unlikely to meet Accenture were trading almost flat at
they were unable to comment on the earnings expectations for the year TECHNOLOGY outsourcing and con- $45.19 yesterday morning on the
STOCKBROKER Arden Partners said reasons behind the premature depar- ending 31 October, because of chal- sulting firm Accenture said it would New York Stock Exchange.
yesterday that its new chief executive ture. lenging stockmarket conditions. buy Ariba consulting services and Ariba’s stock was down as much as
officer Jeremy Grime is leaving the Grime was named as CEO desig- Analysts had been expecting fiscal- BPO assets for $51m in cash. 4 percent at $18.92 on Nasdaq.
company after only four weeks in nate in June but he only formally year pre-tax profit of around £1.6m. Ariba, which provides procure- At their Tuesday close of $19.65,
charge. took up the role last month. Since then Arden has raised ment software and consulting servic- shares of the Sunnyvale, California-
It is understood that Grime, who He had been a highly rated analyst around £120m for two companies, es, said the businesses will account based Ariba, which have climbed con-
was promoted internally from the in Arden’s financial services team, iEnergizer and KSK. for about $40m of 2010 revenue and sistently over the last couple of years,
group’s financials team, wanted to having worked previously for Collins Keeling is determined to make a seven cents a share in adjusted earn- were at the highest in more than six
pursue a merger with Fairfax, the Stewart and Altium. Some ques- thorough review of the business but ings, it said in a regulatory filing. years.
boutique investment bank run by tioned his appointment at the time he has told friends that he doesn’t Accenture, which will absorb 160 The company press release sug-
Stefan Allesch-Taylor. But his plan was because of his lack of management want the top job again long-term. employees from Ariba, will enter into gests “approximately 160 Ariba
scuppered when he could not take experience. He is still committed to growing a four-year non-competition agree- employees are expected to join
the rest of the board with him and in He will be replaced on an interim the group’s Indian business. ment with the latter. Accenture upon the closing of the
the end the strategic differences basis by Jonathan Keeling who moved Fairfax was earlier this year the The deal is expected to close in transaction.”
appeared too great for him to carry out of the job and became deputy subject of speculation about a tie-up Ariba’s first quarter of fiscal 2011, The deal is not yet closed, but
on in charge. chairman to order to focus on grow- with Astaire. However, it never con- ending 31 December 2010, the com- Ariba forecasts closing by the end of
Arden’s statement to the stock ing Arden’s Indian business. firmed talks had taken place. panies said in a statement. the December quarter.
14 News CITYA.M. 7 OCTOBER 2010

Autonomy shares rocked

by cut in profits forecast
eight-month low of 1,464p, the largest where in the neighbourhood of six per

BY HARRY BANKS FTSE 100 faller, after a trading update cent in terms of earnings, and that
yesterday. will extrapolate into 2011 in a higher
SOFTWARE firm Autonomy said it The stock closed at 1,551p, a fall of percentage downgrade.”
would cut its full-year revenue guid- 16 per cent. Goldman Sachs removed the com-
ance by about three per cent after Autonomy said it expected full-year pany from its “conviction buy” list, but
weaker-than-expected demand, send- revenue growth of about 17 per cent retained its “buy” rating, saying it
ing its stock sharply lower. and said its third quarter would meet believed the stock would be in the
Shares in the group, whose mean- but not beat its own expectations. “penalty box” in the short to medium
ing-based search software is used by Analysts had pencilled in full-year term.
multinationals and governments, growth of about 21 per cent, according “Apart from M&A support and
Autonomy boss Mike Lynch stunned the market with yesterday’s warning Picture: BBC plunged as much as 21 per cent to an to a Thomson Reuters poll. prospects of an accretive acquisition,
Chief executive Mike Lynch blamed we believe predictability of growth has
customer volatility due to the current become more uncertain in the short
macroeconomic situation for a cut in term,” Goldman said.
the company’s revenue forecast of
three per cent. ANALYSIS l Autonomy
Analyst Bob Liao at Canaccord 1950 p 1,551.00
Genuity, who rates the firm a “hold”, 6 Oct
said Autonomy was expected to 1850
rebound after one-off events clouded
the second quarter, when the group’s
margin slipped.
“Things have not been coming

Great Offers together as expected,” he said. “It

throws into question its longer-term
growth potential. I’m guessing the

downgrade to consensus will be some- 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep

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CITYA.M. 7 OCTOBER 2010 News 15

Interviews by Marion Dakers
Pay at FTSE
“They shouldn’t be entitled to a bonus at all. The rest of us are happy with just
getting wages, never mind a bonus for simply doing our job. I don’t think bigger
bonuses are a sign of an improving economy that we should celebrate –
firms grows
it’s a sign a banker’s gamble has paid off.” RECRUITMENT adding 1.6 per cent.

BY MARION DAKERS Private companies have managed to
bounce back more quickly from the
PAY PACKETS in the private sector are slump in May and June this year,
JANE CASSIDY | CHARTERED ACCOUNTANT growing at a faster rate than those in adding 0.9 percentage points to the
the public sector for the first time since average wage growth compared to 0.2
March 2009, said research out today. percentage points within public bodies.
“I think banks bring a lot to this country, not least the 50 per cent tax on their Workers in for-profit companies Douglas McWilliams, chief execu-
saw their take-home pay increase at tive of the Centre for Economics and
bonuses. They are not all to blame for the downturn, and banks are the back- an annual rate of 1.4 per cent in Business Reform said: “The sluggish-
bone of the country’s economy. It’s also unfair to come down on the indi- September. Pay rises are still lagging
far behind inflation, which is push-
ness of annual earnings and pay
growth is largely the result of slack-
viduals.” ing up the cost of consumer goods by ness in the labour market. The latest
3.1 per cent a year. data released by the Office for
However, public sector workers National Statistics has revealed that
fared even worse, with the average the claimant count measure of unem-
JEREMY SCOTT | JMS FINANCIAL pay packet growing by an annual rate ployment increased in August for the
of 1.3 per cent last month, according first time since January.”
to figures from 600 public bodies Marion King, chief executive officer
“Yes, I think they should reduce their bonuses. It seems like the right thing to compiled by payment specialist at VocaLink, added: “With the emer-
VocaLink. gency Budget of 22 June announcing
do, particularly when the banks themselves are still in trouble. It would be a Pay growth has improved slightly a two-year public sector wage freeze
wise move too, given public opinion on flashing lots of cash at the over the year, with pay hikes at FTSE
350 companies growing by an average
for those earning above £21,000, pri-
vate sector wage growth is likely to
moment. I would think twice about taking a bonus.” of 0.9 per cent over the year to continue outstripping public sector

September, and public sector rises wage growth from 2011 onwards.”

Card fraud at a 10-year low Toyota’s Prius sales take a tumble
Credit card fraud losses in the first six Japanese sales of the Toyota Prius have
months of the year plunged to their low- fallen for the first time in almost a year-
est level for 10 years, at just £187m, the and-a-half after a government subsidy for
banking industry said yesterday. Online buying more eco-friendly cars ended,
banking fraud was 36 per cent lower industry figures suggest. The hybrid
than in the first half of last year, at motor is Japan’s most popular car, with
£25m, said the UK Cards Association. 27,249 sold in September, according to
Phone banking fraud was up nine per the Japan Automobile Dealers Association.

cent to £6m, however cheque fraud loss- However, this was 14 per cent lower than
es fell 13 per cent to £14m. the same month a year ago.

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18 News CITYA.M. 7 OCTOBER 2010

Hays boss sees

Growth in UK
Robert Walters
managing direc-
tor Kevin Gibson
oversaw strong
growth this year
Picture: REUTERS
a £200,000
boosts Robert cut in annual pay

Walters’ fees

ALISTAIR Cox, chief executive of
recruiter Hays, saw his pay shrink by
ANALYST VIEWS: WHAT DO YOU THINK OF £200,000 to take home £1.56m last
year, according to the company’s
ROBERT WALTERS’ RESULTS? Interviews by Emma Sadowski annual report.

RECRUITMENT the year before. The report that showed Cox took
BY EMMA SADOWSKI Meanwhile, the group’s European home a base salary of £630,000 and
arm, which has lagged behind the KEAN MARDEN | ROYAL BANK OF SCOTLAND received a cash bonus of £422,000

GLOBAL recruiter Robert Walters has rest of the regions, posted a 33 per during that time.
seen a spike in fees during the third cent growth compared to 2009. The Similarly, finance director Paul
quarter, driven by strong growth in Americas and South Africa, the small- At the divisional level, Asia Pacific was softer than expected – accord- Venables took a £200,000 pay hit after
the UK and Asia. est region for Robert Walters, saw fees ing to the company this was driven by financial services hiring rather than a gen- his salary dropped from £1.31m in

Robert Walters said that gross prof- rise by 61 per cent to £900,000. eral loss of momentum around the Australian general election – and the UK’s 2009 to £1.11m in 2010.
it for the three months to the end of Robert Walters, which has Kevin stronger performance. The report said that Venables’ base
September soared 65 per cent to Gibson as its managing director, also salary came to £454,000 and he also
£42.5m. The rise is against a low com- bolstered its global footprint after received a cash bonus, worth
parison last year when fees came to opening new offices in Germany and CAROLINE DE LA SOUJEOLE | SEYMOUR PIERCE £301,000.

£25.8m as the recession took its toll. South Korea and adding 408 new Both Cox and Venables will see
Fees derived from the group’s UK staff members. “We have taken steps their respective salaries frozen for
business improved by almost 50 per to maximise opportunities where we Robert Walters delivered a stellar set of results although we suspect another year due to the uncertainty
cent to £12.6m. see strong growth,” said Walters. this is against very easy comparatives. All regions saw double-digit growth in the of the economic climate.

Chief executive Robert Walters quarter with Asia Pacific showing the strongest increase while the UK was up 49 Hays’ international fees fell by
said: “Trading in the UK has been pos- ANALYSIS l Robert Walters per cent. However, such a high growth in the UK may not be sustainable. almost 20 per cent to £557.7m for the
itive, in spite of continued economic 300 p 291.75 year ending 30 June 2010 and before
uncertainty and our offices in Europe 6 Oct tax profits nosedived to £29.7m from
have done well to achieve a healthy

increase in net fee income during the The recruiter said that its business
quieter summer period.” can withstand tough economic times
The group’s Asia Pacific business Robert Walters is our only ‘buy’ among the larger players in the sector and that it is confident moving for-
remained the strongest performer 220 ward.
and we continue to retain the recommendation. Today the group announced

after delivering a 92 per cent hike in exceptionally good third quarter trading – even the UK reported strong growth. Last month the recruitment firm
fees. The rise sees this unit’s fees rise revealed that it had laid off a 100 staff
to £21.5m from the £11.2m it posted 12 Jul 30 Jul 19 Aug 9 Sep 29 Sep in the UK.
CITYA.M. 7 OCTOBER 2010 Economic News 19

Growth concerns CITY A.M. | SHADOW MPC


and inflation cause

“With the services sector growing at a faster rate, the supply and velocity of money accelerating, and
inflation too high, it is time for a symbolic quarter point hike in rates.”
“Maintain vote for quarter-point hike. Monetary conditions are loose with velocity recovering, while CPI inflation

a three-way split
could rise to 4 per cent near-term. QE2 will fuel commodities speculation rather than help the real economy.”
“While the economic news has become less positive, the slowing growth momentum does not seem sufficient
yet to justify further easing in policy. The risks of additional QE have grown but for now its wait and see.”


UK ECONOMY the economic recovery. Williams

“The MPC may produce an unusual three-way split, but the majority will vote to hold. With the rebound in nomi-
BY JESSICA MEAD thinks that another £50bn of asset nal GDP and sticky inflation, Posen is unlikely to find much support for his view that the UK is like Japan.”
purchases is needed ahead of next
FOR the second consecutive month, a year’s fiscal squeeze. VICKY REDWOOD | CAPITAL ECONOMICS
three-way split has emerged among The remaining five members voted “The recovery has slowed sharply, while higher inflation still isn’t having much upward effect on inflation
City A.M.’s Shadow Monetary Policy for no change this month but a
expectations or pay growth. I think the time has come to launch QE but the MPC will probably hold fire.”
Committee (MPC) members ahead of majority stand ready to buy more
the Bank of England’s policy bonds should the economic situation TREVOR WILLIAMS | LLOYDS TSB
announcement scheduled for midday deteriorate from here.
today. Despite Bank of England external “Signs of a weakening in the UK economy are becoming more widespread. I vote for rates to remain on hold
Two members voted for an increase MPC member Adam Posen’s decidely in October and for a further £50bn of QE. The latter should start before the fiscal squeeze kicks in next year.”
in interest rates of 0.25 per cent while dovish speech last week, the consen- HOWARD ARCHER | IHS GLOBAL INSIGHT
two others thought the time had sus among City economists is that the
come to extend quantitative easing Bank will hold fire this month ahead “No change on rates and I would hold fire on QE for the time being. But I am worried about the growth out-
(QE) further. Both City A.M.’s Allister of the Comprehensive Spending look and if the economy takes a further downward lurch then further stimulative action would be justified.”
Heath and Henderson’s Simon Ward Review. JAMIE DANNHAUSER | LOMBARD STREET RESEARCH
maintained their hawkish stance, cit- But many have not ruled out a poli-
ing high inflation and an improve- cy shift in November when the MPC “We have long argued that the MPC should err on the side of doing too much. But with nominal private sector
ment in the money supply. will benefit from fresh growth and spending up by 8 per cent in the last year, at this stage the data does not support the bears’ case.”
In contrast, Capital Economics’ inflation forecasts, the austerity cuts
Vicky Redwood and Lloyds TSB’s have been outlined and the first esti- GRAEME LEACH | IOD
Trevor Williams called for further mate of third quarter GDP has been “Beyond this month, an expansion in QE looks almost certain by year-end, given the weakness of money
loosening to offset the slowdown in published. supply growth and the softening across a range of economic indicators.”


will not back down &

WORLD ECONOMY sidelines of a summit with EU lead- ic turbulence, then it would be a

BY HARRY BANKS ers. disaster for the world,” Wen said.
Wen said EU leaders should turn The US and the EU accuse China *
CHINESE premier Wen Jiabao told to the US dollar for an explanation of keeping its currency artificially

the European Union (EU) yesterday of the fluctuations in the exchange weak to promote exports, under-
to stop piling pressure on Beijing to rate of the euro. mining jobs and economic growth UP *
revalue its currency, saying a rapid He said China's trade surplus in the West. TO
shift could unleash disastrous against the United States was due The monetary standoff came
social turmoil.
Wen told an EU-China business
to the specific structures of the two
economies, not the yuan exchange
amid growing signs of a “currency
war” in which major industrial
forum in Brussels that China rate. nations such as Japan and the
would implement a reform of its He noted that a US congressman United States are seeking to weak-
currency regime announced in had predicted social unrest in en their exchange rates while OR UPGRADE TO A CONCIERGE OR BUTLER SUITE
June, making the exchange rate
more flexible, but rebuffed calls
China if there was a rapid rise in
the currency, known as the ren-
emerging economies such as Brazil
and South Korea are taking or
from EU leaders for a rapid and minbi or yuan. threatening measures to curb capi-
substantial appreciation. “Many of our exporting compa- tal inflows.
“Do not work to pressurise us on nies would have to close down, The EU also pressed Beijing to
the renminbi rate,” the Premier migrant workers would have to amend its trade practices to put an
said, departing from a prepared return to their villages. end to technology theft, counter-
speech to a business forum on the “If China saw social and econom- feiting and export controls.

Weak US employment figures give

Fed room for fresh policy stimulus

WORLD ECONOMY quantitative easing, due at their mist at Nomura Securities in New
early November policy meeting, York. “But in general if we get any-
US private employers unexpectedly will likely hinge on inflation and thing looking like this on Friday,
shed jobs in September, reinforcing labor market developments and ‘QE2’ is a done deal at the
the conviction that the US Federal the monthly US Labor Department November 3 (Fed) meeting."
Reserve as early as next month will report on employment tomorrow. Another report yesterday
In conjunction with
embark on another round of mon- The non-farm payrolls report showed the number of planned lay-
etary policy stimulus to support will likely show zero growth in offs at US firms rose slightly in INCLUSIVE RESORTS Appointed Operator
the economic recovery. September from August as a fur- September, though it was the sec-
ADP’s national employment ther unwinding of temporary US ond lowest level of the year, accord-
report yesterday said US private Census jobs and layoffs at state and ing to the report from consultants TO BOOK CALL 0800 742 742
employer payrolls fell by 39,000 local governments offset a slight Challenger, Gray & Christmas.
jobs in September. The median pickup in private hiring, according The Fed last month said it was AND QUOTE ‘OCTSALE’
forecast from a Reuters poll was for to a Reuters survey. ready to inject more money into *Terms & conditions apply. Book by 15 Oct 2010. Travel up to 11 Jun 2011.
an increase of 24,000 jobs. A strong payrolls reading is pos- the economy if needed to shore up
£150 saving is per couple. ABTA & ATOL protected.
The Fed’s decision on further sible, said Zach Pandl, US econo- a sluggish recovery.
20 News CITYA.M. 7 OCTOBER 2010

Sausage showdown gets apprentices sizzling

told the 16 new candidates, “but then inspired by the (not entirely problem- described as “cringable”, proving upbraided him for his posture.
so do fish and chips”. free) space mission. once again that in The Apprentice the Dan chose chief sausage maker
It was midnight in the boardroom The teams opted for different real loser is always the English Alex and man-brand Stuart for
and before they set out for their first approaches: the girls decided to make language. the firing line, who took
challenge (making and selling gourmet sausages while the boys Speaking of which, it the chance to flatter
sausages), there was just time for a lit- went for cheap and cheerful. was the boys who Lord Sugar in the
tle bombast. “My first word wasn’t Channelling Gerald Ratner, telecoms ended up back in the most excruciating
mummy, it was money”, insisted one entrepreneur Stuart Baggs helpfully boardroom after a way, talking of
APPRENTICE REVIEW candidate. “Everything I touch turns explained, “We’re essentially pushing narrow defeat. what an honour it
GRAEME ALLISTER to sold”, countered another.
Egos puffed to dangerous levels,
crap”. At 21, Stuart is the youngest
ever Apprentice candidate and has a
Team leader Dan,
who managed to
would be to work
for “one of the
there was just time to argue over the disconcerting habit of referring to sell £14 worth of most successful

EFORE series six of The team names before going to himself as “Stuart Baggs – The sausages, became people, not just in
Apprentice had even begun Spitalfields to buy some meat. After a Brand”. the centre of a Britain but in the
there’d been a promotion: step brief flirtation with Fusion, the boys With the charm and social grace of hurricane of abuse, world”.
forward Lord Sugar of Clapton. called themselves Synergy, both a mugger, Stuart bounded up to the described as In the end it was
Not that all that ermine and refined sounding more like deodorants for genteel inhabitants of Portbello Road, “volatile”, “bullying” Dan who was fired,
company has done much to soften teenage boys. Their minds on loftier demanding they buy his sausages. It and “acting like a dicta- but at least he kept his
him. “You all look good on paper”, he matters, the girls plumped for Apollo, was a display one team-mate tor” while Lord Sugar dignity.

Hermes still bullish on 2010 Chi-X Europe haggles with FSA in

bid to avoid Swiss Exchange fee
Speaking on the sidelines of the Thomas said he had not seen an

BY HARRY BANKS Hermes 2011 spring/summer collec- improvement in the economic envi-

tion presented on Wednesday – the ronment, only “more and more FINANCIAL MARKETS such as Chi-X Europe, Bats Europe and
FRENCH luxury Hermes is maintain- last one designed by Jean-Paul Chinese customers entering our Turquoise, which all use data from the
ing its 2010 guidance despite a broad- Gaultier – Thomas said economic shops in Asia and in the West”. CHI-X Europe, the continent’s largest Zurich-based stock market to facilitate
er rebound in the luxury sector, chief clouds remained dark. In July, Hermes raised its 2010 sales share trading platform, is in talks Swiss stocks trading.
executive Patrick Thomas said yester- “I see that the crisis is far from growth target to 10-12 per cent from with Britain’s Financial Services “The proposed fee amounts to a sig-
day. being over and that difficulties are five per cent while at the end of Authority (FSA) to find a way of avoid- nificant charge at a time when trading
Asked whether Hermes would raise ahead of us,” Thomas said. August, it said it expected sales ing new fees the Swiss Exchange will revenue is scarce,” Chi-X Europe chief
its forecasts after similar upgrades Thomas said he was worried the growth of around 12 per cent. Several charge for using its price data. executive Alasdair Haynes said. “So,
from luxury fashion companies such global financial system was still being luxury groups, including LVMH, and The SIX Swiss Exchange plans to we have contacted the relevant author-
as Valentino, Thomas said: “Not us, transformed, which risked impacting Gucci Group, have posted forecast- impose a new fee of 100,000 Swiss ities about the possibility of using the
we keep the same guidance.” consumer demand. beating first-half results. francs (£65,200) on trading rivals, prices from our own order book.”

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CITYA.M. 7 OCTOBER 2010 News 21

PwC boss urges audit review Sportingbet profit falls

His remarks come as the auditing Discussions with clients and the
on investigation costs

profession faces scrutiny into profes- Treasury’s Audit Committee should
BY EMMA SADOWSKI sional standards and competition be public, according to Powell.
IAN POWELL, PwC’s chairman and issues in the industry. Powell is also urging the profession two months of the new financial year

senior partner has called on the The House of Lords economic to focus on narrative reporting – the was 17 per cent above the same peri-
auditing profession to examine its affairs select committee is currently critical contextual and non-financial ONLINE gambling firm Sportingbet od last year.
role and responsibilities, and evalu- investigating competition concerns information that is reported along- posted a 69 per cent fall in full-year “Whilst the economic outlook
ate how it can change. over the market dominance held by side financial information at the pre-tax profit on one-off costs related remains challenging, our spread of
Speaking last night, Powell said the big four accounting firms, while front of annual report. to a settlement with the US activities across the different eco-
that the current public debate is the large accountants have recently Department of Justice and its move to nomic cycles of Europe, Australia and
focused on the “value and relevance” been the subject of heavy criticism PwC chairman Ian the main stock market, but said it South America gives us confidence
of the traditional audit. for the quality of audit work done on started the new year well. for a further year of success,” the com-
He said: “While there is no single companies such as Lehman Brothers
Powell has questioned The company had agreed to forfeit pany said in a statement.
right answer to what those changes which collapsed in 2008. the “value and $33m (£21m) to settle a US investiga- For the year ended 31 July, pre-tax
need to be, there is a broad spectrum Powell yesterday suggested raising relevance” of the tion over alleged illegal internet gam- profit was £6.9m, compared with
of reforms which will make a positive the bar on auditing standards and traditional audit bling. £22.3m last year. Net gaming revenue
impact.” making audits more transparent. Net gaming revenue in the first grew 27 per cent to £207.5m.

Car sales fall 48

ANALYSIS l Northern Foods
p 46.00
6 Oct
440 p
6 Oct
ANALYSIS l Inmarsat
760 p 644.00
6 Oct

for third time 46






said that car sales in September were 380

AUTOMOTIVE 12Jul 30Jul 19 Aug 9 Sep 29 Sep 12Jul 30Jul 19 Aug 9 Sep 29 Sep 12Jul 30Jul 19 Aug 9 Sep 29 Sep
BY EMMA SADOWSKI actually 16.3 per cent ahead of last
year and on par with 2008 numbers.
CAR SALES in the UK were down for a Likewise, 1.6m cars were sold with- NORTHERN FOODS TESCO INMARSAT
third month, after September regis- in the last 12 months marking a 7.8 JP Morgan Cazenove has moved its rating UBS says there were few surprises in Inmarsat has been a stellar performer
trations dropped by 8.9 per cent com- per cent improvement on the previ- on Northern Foods back to “underweight” Tesco’s interim results. A robust margin since its listing, says Barclays Capital. But
pared to the previous year. ous year and suggesting that con-
According to monthly data from sumer confidence is returning. with a new downgraded price target of performance in the UK made up for a still- the company has de-rated, which the bro-
the Society of Motor Manufacturers “Despite an 8.9 per cent fall in 40p. The broker says the food manufactur- soft sales line and growth was augmented ker believes is driven by stalling earnings
and Traders (SMMT) the fall in sales September registrations, demand for er’s growth and profitability are dependant by the bank and an improving economic momentum and, more recently, Harbinger’s
meant that 335,246 cars were bought new cars has stabilised and will end upon its relationship with UK food retailers environment, according to the broker, 14 per cent stake sale. The broker says that
last month versus the 367,929 which 2010 slightly up on last year,” said
were sold in September 2009. Paul Everitt, SMMT chief executive. and its ability to control its costs. The bro- which rates Tesco “buy”. Profit growth of the return on capital employment risk from
The SMMT said the 2009 figure Over 150,000 Diesel based cars were ker says Northern is likely to come under 9.1 per cent is, in the broker’s view, the best the Ka-Band investment is factored in and
included the impact of the govern- sold last month, while 4,176 alterna- pressure from the second half of the year. indicator of the trajectory of the business. upgrades the stock to “equalweight”.
ment’s scrappage scheme, when con- tively fuelled vehicles were in To appear in Best of the Brokers email your research to
sumers were offered £2,000 for cars demand. Both figures are slightly are
older than ten years. up on last year. The SMMT said new

Shop price inflation hits a five-month

However, excluding the scrappage car sales for the whole of 2010 should
enhanced figures of 2009, the SMMT reach 2m, slightly above 2009’s total.


J\gk\dY\ijXc\j**,#)+- /%0
/%0 high after food and cotton prices surge
PK;jXc\j(%-d .%/
. %/
Gi`mXk\jXc\j(.'#0,( ((0
0 per cent higher than a year ago, up the year – the first time the rate has

from an annual rise of 1.7 per cent in picked up since April.
A JUMP in the cost of agricultural com- August and the highest since April. The price of cotton hit a 15-year high
=c\\kjXc\j(+-#')- -%.
-%. modities drove British shop price infla-
tion to a five-month high in
The pick-up was driven by a rise in
food price inflation to its highest since
last month as fund managers ramped
up their positions in the fibre on the
9lj`e\jjjXc\j(/#)-0 /%,
/%, September, but weak consumer
demand should contain price pres-
July 2009 – up by an annual 4.0 per
cent – and reflected a recent surge in
view that demand was picking up and
stocks were running low, although
sures in the rest of 2010, a survey wheat prices. prices have subsided more recently.
showed yesterday. Meanwhile, a jump in cotton prices Meanwhile, a near doubling in glob-
The British Retail Consortium (BRC) pushed up the price of clothes and lift- al wheat prices is still filtering down to
said shop prices in September were 1.9 ed non-food prices by 0.7 per cent on food manufacturers.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Victoria Bates in association with

as senior fund managers. Kelsey has been at PwC for 20 years Solutions, of which he was president.
Nomura Grewal joins from ICAP Equities and and particularly focuses on mid-cap and He was also chief operating officer of
Former RBS chief market strategist Bob also formerly spent a decade at Tudor Aim companies, helping them through parent group BlueMountain, a $4bn
Janjuah (pictured) and chief markets economist Capital. He is a specialist in TMT and mergers, acquisitions and disposals and alternative asset manager focused on
Kevin Gaynor have resurfaced at the Japanese healthcare, as well as having experience preparing private companies for IPO. the credit and derivatives markets.
investment bank, where they take up the roles covering UK property companies, stock She was formerly treasurer of the
of co-heads of cross asset allocation strategy. exchanges and asset managers. QCA, a role which will now be held by Covington & Burling
Perma-bear Janjuah made the headlines Cosh joins from BNP Investment Baker Tilly partner Paul Watts. The law firm has hired Christopher
weeks before Lehman Brothers collapsed back Partners, where he was a senior portfo- Walter as a partner, Chris Bracebridge
in 2008, when he predicted the economic crisis. lio manager. State Street as special counsel and Helena Laughrin
Geoff Kendrick has also joined Nomura from The financial services group has hired as an associate, all in its European
UBS as G10 FX strategist. Quoted Companies Alliance Sam Cole as an executive vice president employment practice. All three join
The quoted company body has appoint- and deputy head of its e-Exchange trad- from Paul Hastings in London.
ed PwC partner Fiona Kelsey as its new ing solutions business. Walter also chairs the International
F&C Investments hired Randeep Grewal and Sam Cosh chairman, replacing Faegre & Benson Cole, 40, joins from risk and analytics Committee of the Employment Lawyers
The investment management firm has (pictured) to its European equity team partner Donald Stewart. service provider BlueMountain Association.

To appear in CITYMOVES please email your career

updates and pictures to
22 CITYA.M. 7 OCTOBER 2010

| Listed Products

Christmas will
come early to
the high street
The doom and gloom has already been priced
in to the retail sector, writes Jessica Mead

IGH-STREET retailers have every rea- after two years of heavy discounting to
son to be cautious right now. If it keep the tills ringing and tinkering with
isn’t the government squeezing the supply chain, they may have little
households’ disposable incomes room for manoeuvre left and be forced to
with one hand and hiking VAT with the pass on higher prices to the consumer.
other, then surges in the prices of com- However, this is a familiar story and
modities such as cotton, which is at a 15- therefore likely to have already been priced
year high, are threatening margins. in. Consequently, any caution from chief
Only last month Next chief executive executives during earnings season – which
Simon Wolfson said that clothing prices kicks off in earnest on 18 October in the The high street will gloomy winter for the high street is Arden tant month than August so it can’t be
may have to rise by as much as 8 per cent UK and Europe – is unlikely to have a sig- still be busy this International’s Nick Bubb: “The gloomsters shrugged off.” He also believes that the
in 2011. With consumers still lacking the nificant downward effect on retailers’ Christmas still expect the coming storm of public sec- “lowly sub-10 times price-to-earnings (p/e)
confidence or the money to shop until share prices. And any better-than-expected tor austerity to decimate the consumer but valuations in the general retail sector look
they drop, retailers are understandably news will give stocks a sharp boost. Picture: REUTERS the resilience of non-food trading is strik- pretty attractive”.
loath to pass on higher input costs. But One analyst who is expecting a less ing and September is a much more impor- Longer-term investors who think retail-

Don’t count on a future

bailout for Euro bonds
High yields have not sufficiently priced in the high yields of the European sovereign bond
market through iShares’ numerous
risk in the periphery, writes Juliet Samuel Eurozone bond products.
Demand at recent bond sales in the
Eurozone periphery has beaten expecta-

NVESTORS are increasingly looking for added two funds to its db x-trackers range, tions: Ireland, Spain and Greece all held
new ways to find decent income as with one tracking the iBoxx Eurozone high succesful auctions last month. But with
most western bond yields sink ever yield index and the other tracking overall European Central Bank (ECB) bond pur-
lower. Many are flooding into emerg- Eurozone sovereign debt. Head of db x- chases having risen slightly, many suspect
ing market (EM) debt, with iShares having trackers’ Manooj Mistry says that investors the Bank of stepping in to prop up demand
seen its EM bond fund swell to over $1bn. are attracted to exchange-traded funds to and prevent yields from rising further. Irish
Others are looking closer to home – and buy bonds because it means they don’t 10-year yields are now at 6.4 per cent and
they don’t have to look far. Markets are have to rebalance their portfolios every Portugal is not doing much better at 6 per Don’t make long-term preventative – but should recognise that
jumpy, as shown by the 10-point spike in 10- time the situation changes – the index does cent. Investors can take advantage of these plans assuming you the ECB is unlikely to allow yields to rise too
year Irish yields in response to Fitch’s down- it for them. The new funds are listed in yields in the short-term – since the ECB’s will be bailed out high before it starts buying more.
grade yesterday. Deutsche Bank this week Germany, but UK investors can tap into the actions tend to be retroactive rather than Picture: ALAMY These yields compare very favourably to

Japan’s historically high savings ratio and and the government’s debt position is the rency products show a starkly contrasting
YEN APPEARS surplus on its current account are behind the
safe-haven perception of the yen. But the
highest in the OECD and politically Japan is a
rudderless ship – it has had five prime minis-
view, with over 35 per cent of ETFS’ assets
under management held in short positions.

unwind of carry trades seems a more likely ters in the past five years. The yen’s real effective exchange rate (REER)
explanation of the yen’s current strength Futures market positioning and options is over 10 per cent above the longer-term
rather than it being seen as a true store-of- pricing confirm the bullish market view of the average and the valuation looks stretched
value asset. Unwinding could be interpreted yen. But investors using exchange-traded cur- given the underlying fundamentals.
STRETCHED as a move to avert risk since investors are
unwinding a riskier trade and seeking to pro-
tect themselves if risky assets decline.
ANALYSIS l The yen tracks Treasuries
The accommodative monetary environment 130 5
MARTIN ARNOLD is likely to place downward pressure on the
yen in the coming months as the global recov-
Dollar / yen (LHS)
SENIOR ANALYST, ETF SECURITIES ery path becomes clearer and as interest 120
US Treasury 4
rates rise and differentials potentially widen. 2-year yield (RHS)
Japan’s unsterilised currency intervention is

HE Japanese yen has historically been effectively a decision to pursue an indirect 110 3
considered as a barometer of risk form of quantitative easing. A more diplomat-
appetite in the FX market. True to form, ically palatable solution could be for Japan to
it has strengthened as bouts of risk aver- introduce its own direct QE programme, 100 2
sion have hit financial markets. Recently, the thereby debasing the yen in a similar fashion
yen reached 15-year highs and has rallied more to the US dollar and not raising the ire of the
than 10 per cent in 2010, prompting official US anti-intervention lobby. 90 1
intervention for the first time in six years. So as With an export-driven economy, a strong
the recovery shows signs of fading, will yen yen is a thorn in the side of Japanese
strength continue despite a litany of Japanese exporters and was partly behind the currency Source: Bloomberg
economic problems? intervention. Additionally, growth is faltering Jan2005 Jan2006 Jan2007 Jan2008 Jan2009 Jan2010
CITYA.M. 7 OCTOBER 2010 23

view about where you think large cap providers such as BlackRock’s iShares you
ANALYSIS l Performance of Stoxx Europe retailers such as Marks & Spencer and can buy an ETF of the STOXX Europe 600
600 Retail over past three months Next will be by the end of the year. For Retail index. This includes both food and
€ example, Societe Generale has a call war- non-food stocks and the biggest holding is
285 rant (where you bet that the share price Tesco at 21.62 per cent. The second is
will rise) with a strike price of 400p and Stockholm-listed Hennes & Mauritz (H&M)
275 an expiry date of 17 December 2010. with 13.62 per cent.
Provided that the stock rises to above With the sector and many of the con-
265 400p before this date, your position is “in- stituent stocks attractively priced on a p/e
the-money” – ie, in profit. basis, a bullish outlook for the retail sector
255 ETFs are more transparent and diversi- could prove lucrative. Christmas might
Source: Bloomberg
fied so they protect from the risks of invest- have already hit the high street but retail-
11 Jul 2010 1 Aug 22 5 Sep 26 ing in a single stock but you can’t invest in ers could well experience a Santa rally over
only the British retail sector. Through the next few months.

Watch out for Wall Street moves Picture: PA

ers’ share prices have been overly

depressed by the gloomy outlook can use he Dow is making efforts to reach its
both exchange-traded funds (ETF) and April high, but the major companies
covered warrants to take a bullish per- are about to bring out the next quar-
spective. terly figures. This means that many are
Covered warrants allow you to take a looking to short the Dow below 11,258 with
a stop and reverse above, particularly if the
market continues to be impressed with com-
core Eurozone yields – Germany offers pany news. WorldSpreads offers a 1 point
just 2.2 per cent. The question for spread on the Dow currently at 10,956-
investors is whether the risk premium of 10,957.
3-4 per cent accurately reflects the Financial markets remain swathed in
chance of a default. Analysts at BNP uncertainty and yesterday’s ADP payroll fig-
Paribas point to Ireland and Spain’s ures from the US have done little to calm
decline in PMI as diverging from the over- these fears. But equities keep working their
all trajectory of the Eurozone in way higher, spurred on by the prospect of
September, which offered more good sur- more cheap money from quantitative eas-
prises than bad. BNP forecasts double ing. While many believe the run higher will
dips for both countries, and IMF growth come to a halt in the not too distant future,
projections are not much better. the upside could still have some momentum.
But Evolution Securities’ Gary Jenkins The current IG Index price on the FTSE is
thinks the market might be overly opti- 5,674-5,675.
mistic in pricing in a bailout of the most Silver is benefiting from strength in gold
indebted Eurozone countries: “Clearly and other precious metals. The price has
there isn’t a default scenario being priced had a good run recently and looks set to
in because otherwise the yields would be continue. Capital Spreads quotes a price of
a lot higher,” he says. While relying on a $22.89-$22.92 for Silver December.
bailout might make sense in the short- The euro is charging against the dollar
term, Jenkins is not sure it is wise to bank while the Bank of Japan (BoJ) seems
on it beyond the next couple of years. “At poised to intervene at any moment. This
the moment Europe daren’t do anything makes euro-yen looks like an interesting
other than bail them out because the sys- long bet. Yesterday it broke through a
tem is so fragile that if one country fails twelve-month downtrend resistance line
the knock-on impact could lead to a com- and a 150-day exponential moving average
plete meltdown. But fast forward four at around ¥115.25. If the BoJ does inter-
years: if the economic outlook is rosier, vene we could well see the yen shoot up to
the ECB might allow one of them to go.” the 200-day moving average around ¥118.
This means that even while choosing Spread Co offers a spread on euro-yen of
European high-yield bonds over their EM ¥115.41–¥115.44
counterparts, investors would be wise to The FTSE is forging ahead to new highs
keep a narrow time horizon. The ongoing while other indices are lagging, in particular
Eurozone crisis has shown that buyers the German Dax. It should catch up soon,
would be foolish to assume that Europe’s testing its own 2010 highs just below
governments are insulated from default. 6,400. Capital CFDs offers a price of
In the long-run, a steadily growing 6,258.0-6,259.0 for the Dax index.
emerging market government with a Donata Huggins
decent yield could be a safer bet.


European ETF provider Amundi this week Industry experts anticipate an increase in BlackRock’s ETF division iShares last Friday
expanded its product offering by launching demand for sustainable ETFs, according to launched the first currency hedged equity
two new funds on the Paris stock exchange. UK Sustainable Investment and Finance ETFs in Europe. The new funds, which are
The first gives investors exposure to around (UKSIF) in its latest report The Future of physically replicated, enable investors to
20 stocks in the European energy sector and Investment: Sustainable Index Investing. invest internationally and hedge currency
replicates the performance of the MSCI Penny Shepherd, chief executive of UKSIF, exposure in one trade. BlackRock said the
Europe Energy index. The second tracks the said: “Institutional and high net worth indices incorporate a monthly currency
EuroMTS AAA Government index, which investors are increasingly looking at sustain- hedge, with exposure hedged using one-
consists of debt securities issued by Eurozone able indexes for both products and perform- month forward FX contracts. It warned
member states with at least three ratings ance measurement.” By investing via ETFs, that forex exposure would be reduced
equivalent to AAA. The energy ETF has a retail investors can get accessible and rather than eliminated. State Street Global
total expense ratio of 0.25 per cent while the affordable exposure to such sustainable Markets has been appointed to manage the
Amundi has listed two new ETFs on the bourse Picture: REX fixed income fund costs 0.14 per cent. indices, the report added. currency hedge.
24 Markets & Investment CITYA.M. 7 OCTOBER 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor -
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .293.00 +3.00 310.00 246.90 Compass . . . . . . . . . . . . . . . . . .521.00 +2.00 574.50 379.50 JPMorgan Emerg Mkts . . . . . . . .593.50 –7.50 609.00 443.00 SABMiller . . . . . . . . . . . . . . . . .1992.00 –28.50 2090.00 1504.00
3i Infrastructure . . . . . . . . . . . . . 114.00 –0.10 115.00 97.00 Cookson . . . . . . . . . . . . . . . . . . .574.50 +26.00 616.00 347.60 Jupiter Fnd Mgmt . . . . . . . . . . . .249.10 +1.50 264.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .281.50 –3.60 286.80 208.20
A.B. Foods . . . . . . . . . . . . . . . .1054.00 +6.00 1096.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1508.00* +9.00 1529.00 674.50 Kazakhmys . . . . . . . . . . . . . . . .1483.00* +56.00 1634.00 955.50 Sainsbury(J) . . . . . . . . . . . . . . . .387.10 –2.50 397.00 307.60
Aberdeen Asset Man . . . . . . . . . .167.00 +0.80 168.80 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .529.50 +2.50 539.00 381.00 Kesa Electricals . . . . . . . . . . . . .153.00* +3.70 162.00 98.45 Schroders . . . . . . . . . . . . . . . . .1450.00 +7.00 1459.00 1056.00
Admiral. . . . . . . . . . . . . . . . . . .1590.00 –74.00 1695.00 1003.00 Dana Petroleum . . . . . . . . . . . .1800.00 — 1817.00 968.50 Kingfisher . . . . . . . . . . . . . . . . . .229.40 –1.10 255.00 196.50 Schroders N/V. . . . . . . . . . . . . . 1170.00 +4.00 1191.00 864.00
Aegis . . . . . . . . . . . . . . . . . . . . .126.50 +2.00 137.30 103.10 Davis Service . . . . . . . . . . . . . . .413.00* +5.10 442.30 356.00 Ladbrokes . . . . . . . . . . . . . . . . .136.50* +1.60 164.60 114.60
Afren . . . . . . . . . . . . . . . . . . . . . 116.40 — 117.70 76.50 Debenhams . . . . . . . . . . . . . . . . .67.35 +0.55 90.00 51.95 Lamprell . . . . . . . . . . . . . . . . . . .347.60* –0.50 372.30 157.30 Scot. & Sthrn Energy. . . . . . . . .1120.00 –10.00 1206.00 1006.00
African Barr Gold . . . . . . . . . . . .638.00 +22.00 685.00 520.50 Derwent London . . . . . . . . . . . .1599.00* +32.00 1601.00 1174.00 Lancashire Hldgs . . . . . . . . . . . .572.00* +4.00 576.00 416.70 Scottish Mortgage. . . . . . . . . . . .651.00 +4.50 655.00 475.00
Aggreko . . . . . . . . . . . . . . . . . .1589.00* +18.00 1639.00 685.50 Dexion Absolute . . . . . . . . . . . . .139.30 +0.30 148.00 130.30 Land Securities . . . . . . . . . . . . . .676.00* +13.00 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .291.00* +3.40 389.90 244.00
Alliance Trust . . . . . . . . . . . . . . .337.90 +0.40 352.70 292.80 Diageo . . . . . . . . . . . . . . . . . . . 1102.00* +3.00 1176.00 930.50 Legal & General . . . . . . . . . . . . .105.90 +1.40 106.50 69.05 Serco . . . . . . . . . . . . . . . . . . . . .618.50* +7.00 656.50 489.00
AMEC . . . . . . . . . . . . . . . . . . . .1008.00 +9.50 1024.00 728.00 Dimension Data . . . . . . . . . . . . . 119.80 +0.20 125.50 65.25 Lloyds Banking Gp . . . . . . . . . . . .76.39 +0.72 79.15 45.30 Severn Trent . . . . . . . . . . . . . . .1320.00 — 1404.00 939.50
Amlin . . . . . . . . . . . . . . . . . . . . .400.70* –0.10 437.60 350.80 Dixons Retail . . . . . . . . . . . . . . . .27.07 +0.06 39.75 23.07 Logica . . . . . . . . . . . . . . . . . . . .129.70* — 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .453.40 +8.90 456.00 348.00
Anglo American . . . . . . . . . . . .2752.00 +110.50 3015.50 1969.50 Domino’s Pizza . . . . . . . . . . . . . .467.90 –1.30 484.70 278.20 London Stk Exchange . . . . . . . . .679.50 +1.50 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1425.00* +3.00 1532.00 999.00
Antofagasta . . . . . . . . . . . . . . .1313.00* +44.00 1344.00 749.00 Drax . . . . . . . . . . . . . . . . . . . . . .385.00* –1.30 479.30 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1790.00 +67.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .577.00 — 700.50 525.50
Aquarius Platinum . . . . . . . . . . .363.10 +17.50 490.00 211.50 Dunelm . . . . . . . . . . . . . . . . . . . .427.60 +22.40 438.40 305.00 Man . . . . . . . . . . . . . . . . . . . . . .237.70 +10.60 373.60 199.60 Smith(Ds) . . . . . . . . . . . . . . . . . .158.80 +4.20 159.30 103.00
ARM Holdings . . . . . . . . . . . . . . .389.30 –10.70 419.50 138.00 Easyjet . . . . . . . . . . . . . . . . . . . .433.30 +46.40 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .390.80 –1.70 412.70 321.90 Smiths . . . . . . . . . . . . . . . . . . .1250.00 +10.00 1261.00 881.50
Ashmore . . . . . . . . . . . . . . . . . . .351.90 +3.30 357.50 215.00 Edinburgh Inv Tst . . . . . . . . . . . .427.90 –1.10 436.00 338.00 Meggitt . . . . . . . . . . . . . . . . . . . .308.60 +6.60 331.00 229.80 SOCO Intl . . . . . . . . . . . . . . . . . .448.40 +4.40 510.00 380.60
Astrazeneca . . . . . . . . . . . . . . .3236.00 –6.50 3389.50 2668.00 Electrocomponents . . . . . . . . . . .243.50 +2.70 251.00 144.80 Melrose . . . . . . . . . . . . . . . . . . .285.30 –0.60 290.00 160.00
Atkins(Ws) . . . . . . . . . . . . . . . . .741.50 +3.00 801.00 532.50 EnQuest . . . . . . . . . . . . . . . . . . .125.60 +7.40 126.60 87.35 Mercantile IT . . . . . . . . . . . . . . . .974.00* +3.50 1002.00 822.50 Spectris . . . . . . . . . . . . . . . . . . 1107.00 +32.00 1117.00 653.00
Autonomy Corp . . . . . . . . . . . .1551.00 –301.00 2012.00 1278.00 Essar Energy . . . . . . . . . . . . . . .503.50 +22.10 504.00 358.50 Michael Page Intl. . . . . . . . . . . . .478.40* +8.30 478.40 316.40 Spirax-Sarco Eng . . . . . . . . . . .1832.00 +23.00 1859.00 1050.00
Aveva . . . . . . . . . . . . . . . . . . . .1430.00 –30.00 1504.00 856.50 Eurasian Nat Res . . . . . . . . . . . .926.00* +15.50 1276.00 801.00 Micro Focus . . . . . . . . . . . . . . . .367.90 –11.40 550.00 272.20 Spirent Comms . . . . . . . . . . . . . .146.00 +1.90 146.30 85.70
Aviva . . . . . . . . . . . . . . . . . . . . .402.10* +5.80 474.00 290.20 Euromoney Inst Inv . . . . . . . . . . .602.00 +5.00 630.00 364.40 Millen & Copthorne . . . . . . . . . . .532.00* +12.00 547.00 321.40 Sports Direct Intl . . . . . . . . . . . . .145.40 –0.50 148.00 89.85
Babcock International . . . . . . . . .580.50 — 660.50 489.00 Experian . . . . . . . . . . . . . . . . . . .685.00 +2.50 698.50 520.00 Misys . . . . . . . . . . . . . . . . . . . . .289.00 –5.60 298.00 196.60 SSL Intl . . . . . . . . . . . . . . . . . . . 1159.00 +1.00 1190.00 616.00
BAE Systems . . . . . . . . . . . . . . .355.40 +4.60 389.90 288.10 Ferrexpo . . . . . . . . . . . . . . . . . . .332.70 +18.20 396.20 140.70 Mitchells & Butlers . . . . . . . . . . .295.70 +2.20 343.90 228.30 St James’s Place . . . . . . . . . . . . .282.00 –2.00 298.00 203.40
Balfour Beatty . . . . . . . . . . . . . . .269.70 –1.90 304.80 228.60 FirstGroup . . . . . . . . . . . . . . . . .374.60 +3.70 428.40 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .191.90 –0.90 257.00 187.60 Stagecoach. . . . . . . . . . . . . . . . .184.80 +2.40 204.90 137.00
Barclays . . . . . . . . . . . . . . . . . . .306.80 –2.00 394.25 253.40 Foreign & Col Inv Tst. . . . . . . . . .291.60 +2.70 297.20 248.70 Mondi . . . . . . . . . . . . . . . . . . . . .537.50 +4.50 540.50 304.70 Standard Chartered . . . . . . . . . .1873.50* –20.50 1946.00 1366.50
Barratt Development . . . . . . . . . . .99.25 –0.95 178.75 89.10 Fresnillo . . . . . . . . . . . . . . . . . .1315.00 +15.00 1333.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .327.00 +3.60 328.90 265.00 Standard Life . . . . . . . . . . . . . . .232.00* +3.70 237.00 170.00
BBA Aviation . . . . . . . . . . . . . . .194.10* +4.20 220.00 145.90 G4S . . . . . . . . . . . . . . . . . . . . . .252.40* +1.00 285.70 220.90 Morrison Wm . . . . . . . . . . . . . . .299.80* +1.40 307.10 255.00 SuperGrp . . . . . . . . . . . . . . . . .1226.00 +1.00 1312.00 499.00
Bellway. . . . . . . . . . . . . . . . . . . .597.50 –1.00 842.50 510.00 Genesis Emerging Mkts Fd . . . . .527.00 +9.50 527.00 370.00 Murray Intl Tst . . . . . . . . . . . . . . .919.00 +9.50 922.00 720.00 TalkTalk . . . . . . . . . . . . . . . . . . .143.60 — 153.80 106.60
Berkeley . . . . . . . . . . . . . . . . . . .839.00 +2.50 949.50 735.00 GKN . . . . . . . . . . . . . . . . . . . . . .172.00 +4.10 174.30 100.40 National Express. . . . . . . . . . . . .240.40 +1.40 258.60 155.86 Talvivaara Mining . . . . . . . . . . . .514.00 +14.00 516.00 341.40
BG . . . . . . . . . . . . . . . . . . . . . . 1174.50 +7.50 1248.00 966.90 GlaxoSmithKline . . . . . . . . . . . .1273.00* +3.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .562.50 +2.00 607.65 474.80
BHP Billiton . . . . . . . . . . . . . . .2137.50 +63.00 2346.00 1618.50 Great Portland Estates . . . . . . . .364.10 +10.40 364.10 236.60 Next . . . . . . . . . . . . . . . . . . . . .2262.00 +1.00 2360.00 1733.00 Tate & Lyle . . . . . . . . . . . . . . . . .486.20 +12.20 509.00 388.00
BlackRock Mining . . . . . . . . . . . .658.50 +9.50 665.00 475.00 Greene King . . . . . . . . . . . . . . . .431.90 +3.20 484.00 372.50 Northumbrian Water . . . . . . . . . .337.60 +4.70 353.00 225.20 Taylor Wimpey . . . . . . . . . . . . . . .28.69 +0.28 46.34 24.29
BlueBay . . . . . . . . . . . . . . . . . . .350.80 +2.80 393.00 251.00 Halfords . . . . . . . . . . . . . . . . . . .447.00 +4.40 562.50 356.00 Ocado Grp . . . . . . . . . . . . . . . . .131.90 –0.30 169.00 129.20 Telecity . . . . . . . . . . . . . . . . . . . .486.00 –12.10 546.00 320.00
Bluecrest Allblue GBP . . . . . . . . .169.20 +0.20 170.00 147.10 Halma . . . . . . . . . . . . . . . . . . . . .327.60 +7.30 327.60 218.40 Old Mutual . . . . . . . . . . . . . . . . .142.40 +3.40 143.30 95.30 Templeton Emrg Mkts . . . . . . . . .642.00 +5.50 648.00 455.00
Booker . . . . . . . . . . . . . . . . . . . . .50.55 +0.88 50.55 37.50 Hammerson . . . . . . . . . . . . . . . .412.00 +10.30 460.30 332.20 Partygaming . . . . . . . . . . . . . . . .289.10 +3.70 339.70 205.80 Tesco . . . . . . . . . . . . . . . . . . . . .440.65 +9.40 454.90 368.40
BP . . . . . . . . . . . . . . . . . . . . . . .435.55 +4.05 658.20 296.00 Hargreaves Lansdown . . . . . . . .470.90 +9.40 478.00 259.40 Pearson . . . . . . . . . . . . . . . . . .1004.00 +22.00 1069.00 761.00 Thomas Cook . . . . . . . . . . . . . . .180.10* +0.40 277.20 167.50
Brit Insurance . . . . . . . . . . . . . .1033.00 +3.00 1045.00 709.00 Hays . . . . . . . . . . . . . . . . . . . . . . 117.60 –1.00 120.10 82.50 Pennon . . . . . . . . . . . . . . . . . . . .580.50* –1.00 616.50 440.40 Travis Perkins . . . . . . . . . . . . . . .893.50 +39.50 915.00 647.50
British Airways . . . . . . . . . . . . . .266.10 +11.50 268.50 172.40 Henderson . . . . . . . . . . . . . . . . .133.10 +5.20 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .392.90 –1.10 520.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .224.40 –1.50 313.90 189.20
British Amer. Tob . . . . . . . . . . .2370.00 +2.50 2439.00 1832.00 Heritage Oil. . . . . . . . . . . . . . . . .325.70 +13.70 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1423.00* +28.00 1446.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .396.20 –3.50 436.20 261.20
British Empire Tst . . . . . . . . . . . .480.80 +3.70 481.00 338.50 Hikma Pharma . . . . . . . . . . . . . .706.50* +3.50 813.00 452.20 Petropavlovsk . . . . . . . . . . . . . . 1137.00* +34.00 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1297.00* –4.00 1375.00 979.50
British Land . . . . . . . . . . . . . . . .490.70 +2.90 515.00 416.00 Hiscox . . . . . . . . . . . . . . . . . . . .353.20 +4.60 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .685.00* — 775.00 550.50 UK Commercial Prop. . . . . . . . . . .78.90 –1.10 84.90 70.00
Britvic. . . . . . . . . . . . . . . . . . . . .469.80 –5.30 518.00 341.50 Hochschild Mining . . . . . . . . . . .476.50 +24.10 495.50 220.00 Premier Farnell . . . . . . . . . . . . . .280.20* +6.20 282.80 140.60 Ultra Electronics . . . . . . . . . . . .1759.00 +19.00 1774.00 1198.00
Brown(N.) . . . . . . . . . . . . . . . . . .243.20 +3.30 284.30 204.80 Home Retail . . . . . . . . . . . . . . . .210.10 +2.20 326.30 201.70 Premier Oil . . . . . . . . . . . . . . . .1675.00 — 1703.00 984.00
BSkyB . . . . . . . . . . . . . . . . . . . .709.50 +2.50 732.00 521.00 Homeserve . . . . . . . . . . . . . . . . .464.40 +5.30 502.00 422.00 Provident Financial . . . . . . . . . . .820.00 –2.00 986.00 795.00 Unilever . . . . . . . . . . . . . . . . . .1845.00 +11.00 2024.00 1662.00
BT . . . . . . . . . . . . . . . . . . . . . . .151.20 +2.70 153.00 108.40 HSBC Hldgs . . . . . . . . . . . . . . . .663.70* –1.80 766.80 595.20 Prudential . . . . . . . . . . . . . . . . . .643.00 +6.00 665.00 475.70 United Utilities . . . . . . . . . . . . . .583.50 — 620.00 429.00
Bunzl . . . . . . . . . . . . . . . . . . . . .768.50 +10.50 784.50 614.00 Hunting . . . . . . . . . . . . . . . . . . .650.50 –5.00 661.00 429.10 PZ Cussons . . . . . . . . . . . . . . . .376.40* +2.00 382.70 231.70 Utd Business Media . . . . . . . . . .621.50* +1.50 656.50 408.30
Burberry . . . . . . . . . . . . . . . . . .1005.00 –9.00 1065.00 495.50 ICAP . . . . . . . . . . . . . . . . . . . . . .449.50 +5.20 478.30 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . .108.50 — 179.10 103.50 Vedanta Resources . . . . . . . . . .2223.00 +26.00 2967.00 1795.00
Cable & Wire Comms . . . . . . . . . .56.90 — 150.00 53.00 IG . . . . . . . . . . . . . . . . . . . . . . . .530.50* +17.00 532.00 291.00 Randgold Resources. . . . . . . . .6585.00 –70.00 6755.00 3930.00 Victrex . . . . . . . . . . . . . . . . . . .1323.00 –5.00 1347.00 726.50
Cable & Wire Wwide . . . . . . . . . . .75.60 +0.60 94.80 60.05 Imagination Tech Gp . . . . . . . . . .389.20 +4.50 399.00 161.10 Reckitt Benckiser . . . . . . . . . . .3464.00 –31.00 3667.00 2971.00 Vodafone . . . . . . . . . . . . . . . . . .161.90 +0.90 164.95 126.50
Cairn Energy. . . . . . . . . . . . . . . .452.30 +7.30 497.60 306.80 IMI . . . . . . . . . . . . . . . . . . . . . . .792.50* +6.50 803.50 410.00 Reed Elsevier . . . . . . . . . . . . . . .554.00 +9.50 566.00 454.60 Weir . . . . . . . . . . . . . . . . . . . . .1519.00 +33.00 1519.00 639.00
Caledonia Invs . . . . . . . . . . . . .1661.00 +8.00 1759.00 1496.00 Imperial Tobacco. . . . . . . . . . . .1910.00 +7.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .84.70* +4.45 125.50 64.05 Wellstream Hldgs . . . . . . . . . . . .761.00* –19.00 810.00 429.70
Capita . . . . . . . . . . . . . . . . . . . . .792.00* +13.50 829.50 693.00 Inchcape. . . . . . . . . . . . . . . . . . .328.20 +11.40 347.00 235.00 Renishaw . . . . . . . . . . . . . . . . .1093.00* +18.00 1094.00 479.00 Whitbread . . . . . . . . . . . . . . . . .1671.00 +24.00 1680.00 1182.00
Capital & Counties . . . . . . . . . . .136.30 +2.20 139.50 99.60 Informa . . . . . . . . . . . . . . . . . . . .428.50 +7.00 439.40 263.30 Rentokil Initial . . . . . . . . . . . . . . .103.70 +0.70 140.20 91.15 William Hill . . . . . . . . . . . . . . . . .170.70 +2.50 217.80 160.50
Capital Shopping Centres . . . . . .389.20 +5.20 533.50 300.10 Inmarsat . . . . . . . . . . . . . . . . . . .644.00* +15.00 831.00 528.50 Resolution . . . . . . . . . . . . . . . . .246.50* +2.50 264.80 220.10 Witan Inv Tst . . . . . . . . . . . . . . . .476.50 +3.20 487.00 396.30
Carillion . . . . . . . . . . . . . . . . . . .327.30* +6.20 361.90 272.00 Intercontl Hotels . . . . . . . . . . . . 1172.00 +26.00 1244.00 762.50 Rexam . . . . . . . . . . . . . . . . . . . .315.40* +3.60 348.80 266.40
Carnival . . . . . . . . . . . . . . . . . .2583.00 +25.00 2937.00 1876.00 Intermediate Capital . . . . . . . . . .308.50 +4.80 309.60 233.50 Rightmove . . . . . . . . . . . . . . . . .757.50 +12.00 796.50 456.90 Wolseley . . . . . . . . . . . . . . . . . .1653.00 +36.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .341.50 +2.70 394.60 303.20 Intertek . . . . . . . . . . . . . . . . . . .1842.00 +22.00 1863.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .3926.00 +134.00 4104.00 2612.00 Wood Group (John). . . . . . . . . . .432.60 +8.00 443.50 279.60
Centamin Egypt . . . . . . . . . . . . .169.80 +1.90 194.40 100.00 Intl Personal Fin . . . . . . . . . . . . .281.00* +12.50 283.00 166.30 RIT Capital Partners . . . . . . . . .1152.00 +10.00 1215.00 940.00 WPP . . . . . . . . . . . . . . . . . . . . . .703.00 +3.50 744.00 528.00
Centrica . . . . . . . . . . . . . . . . . . .321.80* –5.20 347.00 236.30 Intl Power . . . . . . . . . . . . . . . . . .399.30* +1.80 401.60 248.20 Rolls Royce . . . . . . . . . . . . . . . .601.50 +1.50 631.50 434.50 Xstrata . . . . . . . . . . . . . . . . . . .1286.50* +46.50 1344.50 832.50
Charter Intl . . . . . . . . . . . . . . . . .747.50 +25.00 855.50 563.50 Invensys . . . . . . . . . . . . . . . . . . .310.70 +3.50 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1805.00 +10.00 1823.00 1101.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .3050.00 +55.00 3711.00 2551.00 Investec . . . . . . . . . . . . . . . . . . .512.50 +6.50 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .49.49 +0.41 58.95 28.25
Close Bros . . . . . . . . . . . . . . . . .740.00 –10.00 803.50 657.00 ITV . . . . . . . . . . . . . . . . . . . . . . . .61.55 +2.30 71.75 41.04 Royal Dutch Shell A . . . . . . . . .1972.00 +32.50 2068.50 1621.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .235.50 +6.00 278.60 205.50 Jardine Lloyd Thompson. . . . . . .572.00 +1.00 604.50 420.70 Royal Dutch Shell B . . . . . . . . .1909.00 +27.00 1997.50 1550.00
COLT Group . . . . . . . . . . . . . . . . 118.20 –0.30 144.20 107.70 Johnson Matthey . . . . . . . . . . .1804.00 +24.00 1814.00 1337.00 RSA Insurance . . . . . . . . . . . . . .131.30* –0.90 142.00 114.10

FTSE rises do something different Tech shares

on stimulus drag down
expectation Wall Street
Wall Street: REPORT
‘I once said greed is
good... but now it
seems it’s legal.’
Money Never Sleeps
B 12A
RITAIN’S top share index closed ECH shares slumped yesterday,
higher, at a fresh five month Gordon Gekko (Michael Douglas) hit by worries about demand for
peak yesterday led by miners semiconductors and data stor-
and energy issues as commodi- age.
ties rose on optimism governments
will act to stimulate economies
Tickets from £8.50 Book now The Nasdaq bore the brunt of the
day’s selling, led by data system serv-
around the world. ices provider Citrix Systems. The stock
At the close, the FTSE 100 was up was down in sympathy with small-cap
45.63 points, or 0.8 per cent at Equinix, which plunged 33.1 per cent
5,681.39, its highest close since 26 Private employers cut 39,000 jobs after the budget airline said it expect- an above-forecast second-quarter to $70.34 after it issued a revenue
April. in September, according to the ADP ed to beat its profit expectations for trading update prompted some prof- warning late on Tuesday. Citrix slid
Miners gave the biggest boost to Employer Services report, the largest the year following a strong perform- it taking. Charles Stanley cut the rat- 14.1 per cent to $60.15.
the index as gold hit a record high monthly loss since January and a dis- ance over the summer. ing on the supermarket for Another blow to tech stocks came
and copper rose to its highest since appointment to analysts who had Autonomy was the top blue chip Sainsbury to “neutral” on valuation from Morgan Stanley’s downgrade of
July 2008 on a strong demand out- forecast 24,000 private payroll addi- faller, shedding 16 per cent after the grounds. And fellow retailer Marks & semiconductor companies Xilinx and
look and expectations that govern- tions. software firm said in a trading Spencer shed 0.4 per cent ahead of a Altera to “underweight” on concerns
ments will do more to stimulate the Meanwhile, on the domestic update it would cut its full-year rev- trading update due today. about a slowdown in Asian markets.
global economy. macro front, a survey by the British enue guidance by about three per Both fell more than two per cent.
Anglo American, Lonmin, Retail Consortium showed that a cent after weaker than expected ANALYSIS l FTSE 5,681.39 The broader market, meanwhile,
Kazakhmys, and Xstrata added jump in the cost of agricultural com- demand. 6 Oct was hamstrung by a poor reading on
between 3.8 and 4.2 per cent, helped modities drove British shop price In reaction, Goldman Sachs 5,700 private-sector employment and specu-
by a Morgan Stanley note increasing inflation to a five-month high in removed Autonomy from its lation about further quantitative eas-
price targets across the sector. September. “Conviction Buy” list, and Panmure 5,500 ing from the Federal Reserve.
Oil majors gained as crude hit its British Airways was a big blue chip Gordon downgraded its rating to The Dow Jones industrial average
highest level in five months, with riser, up 4.5 per cent, adding to sharp “hold” as estimates and targets were added 22.93 points, or 0.21 per cent,
Royal Dutch Shell up 1.7 per cent. gains in the previous session when it chopped. to 10,967.65. The Standard & Poor’s
US blue chips were up 0.2 per cent reported strong September passenger Other technology issues suffered 500 Index inched down 0.78 of a
by London’s close, although an unex- numbers, helped by a Barclays in sympathy, with Sage Group down 5,100 point, or 0.07 per cent, to 1,159.97. The
pectedly poor reading on private sec- Capital target price hike. 1.3 per cent. Nasdaq Composite Index dropped
tor hiring provided some caution Mid-cap peer EasyJet was the top Food retailer Sainsbury was also a 4,900 19.17 points, or 0.80 per cent, to
12 Jul 30 Jul 19 Aug 9 Sep 29 Sep
ahead of September’s jobs report. FTSE 250 gainer, jumping 12 per cent blue chip faller, down 0.6 per cent, as 2,380.66.
City Focus BOLTHOLES 25

The world’s best negotiator explains

how to get more out of your work
Whether you want more money
or a better office, keep talking,
discovers Jeremy Hazlehurst

N the day that Stuart Diamond Stuart Diamond
arrived in London, a Tube strike
had paralysed the city, and the Picture:
next day when I met him he was Micha Theiner
still shaking his head in wonder at the /City A.M.
whole thing. “The mayor should never
have let it get to this stage, so that
Londoners are suffering because of two
people being fired,” he said. “They need
to sit down and brainstorm, they should
have been doing that for months.”
Everybody has their views on the
strikes, but Diamond’s are worth more
than most people’s – he’s arguably the
most experienced and best negotiator in
the world. He’s the man who helped
resolve the Hollywood writers’ strike, and
has trained managers at Google, JP
Morgan Chase, IBM, BASF, Microsoft – the
list of corporate giants goes on.
He has consulted for the UN, once per-
suaded Bolivian farmers to give up boss’s goals are and if you can help him There are lots of ways of doing this. It all sounds great in theory, but how
cocaine-growing for bananas, and per- achieve them. That is the way to make Diamond tells the story of a senior per- much of this can actually be learned? Are
haps most impressively also says that he him value you more. And that is the son in a computing firm who found out good negotiators made or born? Here,
has taught parents to persuade their chil- route to more influence, and money. that a potential client’s daughter was Diamond insists that you can learn the
dren to eat fruit and couples to get on This is linked to honesty, another qual- having computer problems, so he spent a skills, but that you have to use them in
better. ity Diamond is keen on. If a negotiation morning helping her. They got the con- an “authentic” way. People know when
Diamond is a former New York Times is going nowhere, sometimes the best tract. Another firm was unable to give you are faking, or trying to be somebody
journalist – who won a Pulitzer Prize for thing you can do is to say: “This is not somebody a raise, but helped to get the you are not and they will trust you less if
investigating the Challenger space shut- working”. That will allow you to reset foundations of his new home built. He they see that. “You have to be honest.
tle crash – who studied at Harvard Law the discussion, and keep talking. stayed. Sometimes people ask for a raise Credibility comes from being real.”
School and did an MBA at Wharton. Now Roadblocks where everybody packs up when they are starting a family, but are Are you listening, Boris and Bob?
he has written a book, Getting More, and goes home are no good at all. Unless sometimes equally happy with flexible Getting More by Stuart Diamond is out now,
which aims to help you become a better you keep talking, you’ll never get any- working. Everything is a trade. £14.99 from Penguin
negotiator at work, in your relationship, where. He explains that when he started
and even with your children. working on the Hollywood writers’ strike BARGAIN BOX | 5 WAYS TO GET WHAT YOU WANT AT WORK
So what’s the big idea? “Everything is a he persuaded the studio boss to physical-
trade,” he says. “The theory is that you co- ly walk over to the picket line and start
operate, but in order to find out the talking to people. Two days later, the 1. Expand your relationships. You want to ness. Make it easier for them to make the deci-
other sides’ needs with the ultimate end strike was over. achieve your goals, so get to know people who sion, by giving them a way to explain it to the
of meeting yours.” The principles are the This brings us to Diamond’s second
same, whether we are talking about big idea: that “the world is not rational”
can help you do that. That can be the security people they need to. Standards or rules can seem
General Motors, your boss, your spouse or and that to negotiate successfully you man who lets you in when you’ve lost your pass, to block things, and you can use other standards
North Korea, and the first step is to find have to understand how emotional peo- the IT chap who will sort out your problems to unblock them.
out what they want. To do that, you have ple are. You are far more likely to get quickly, or the PAs who know the gossip. 4. Trade items of unequal value. Sometimes peo-
to get talking. “You have to understand results if you can make the other side 2. Make it personal. Get face-to-face with the ple will accept a lower salary if they get a better
their perception, however crazy,” he says. feel better about themselves. Even
“Only then can you lead them where you something as basic as flattery can work. person who makes the decision, and try to build job title; somebody who is about to have a child
want them to go.” “If somebody says to me: ‘You are flat- a relationship. Then you can leverage these per- might value flexible working. Rather than forcing
tering me!’ I say: ‘Yes!’,” he chuckles. sonal contacts. If your firm’s rules throw up a somebody to do a piece of work they don’t want
VALUE JUDGEMENTS Don’t underestimate the power of mak- problem that appears to be insoluble, your pow- to, trade it for something you don’t want to do.
So how does this translate to the work- ing people feel better. Get people to like
place, for example to negotiating for you, and they will help you. It’s human
erful friends can often make things happen. 5. Be incremental. Don’t try to get all your goals
more pay? The first step is to get informa- nature. Whether you are trying to per- 3. Reframe standards. For example, instead of at once. If you want to move departments, ask if
tion. “What you want to know from the suade somebody to hire you, give you demanding more money, show that others with you can do a bit of your target work. It might
boss is: how does the company value me, more money, or give you a corner the same skills get more, or explain the value you take longer, but if the alternative is no deal at all,
and how can I make them value me office, they are more likely to do so if bring to the company. Make it an issue of fair- then it’s worth it.
more?” You need to find out what your you get on.


of management theory, then this is it. A there’s no fat.
THE MANAGEMENT journalist for Management Today, the There are sections on words like “net- that? Far more memorable than rattling
MASTERCLASS author has read all the books so that work” and “bonus” which are snappy and out some reheated maxim from Lao-Tse
BY EMMA DE VITA you don’t have to, and boils down their helpful (“don’t worry if your network has for the umpteenth time.
Headline, ££10.99 wisdom into 175 sparsely-worded, con- holes – it’s meant to”), memorable exam- Although it’s short, it’s got a broad focus,
cise pages of “practical, no-nonsense ples – the Kray Brothers’ downfall, we are and my favourite section
advice whether you’re a chief executive, told, was due to poor delegation skills; was The Numbers, which
Jeremy Hazlehurst a graduate trainee or a fledgling entre- instead of getting somebody else to do deals with things like bid-
preneur.” the dirty work, they did it ding for internal resources,
HALLELUJAH. In a world filled with There are lists galore – 10 ways to moti- themselves. cutting costs and dealing with
pseudo-intellectual management books, vate, 10 ways to inspire, 10 to handle Then there are well-chosen falling sales. Did you know that
at last comes a thoroughly practical, rumours; there are “crash courses” in quotations. The section on Oscar Wilde said: “The salesman knows
easy-to-use one bereft of posturing and managing a crisis, managing a virtual authenticity reminds us that nothing of what he is selling, save that he
pretension. If you want a book that gives team, chairing a meeting and so on. It’s all Dolly Parton said: “Find out who you is charging a great deal too much for it”?
you a quick-fire tour of the current state easy-to digest, but every word is wise and are, and do it on purpose.” How brilliant is A cracking little book.
26 CITYA.M. 7 OCTOBER 2010

| Film Review Special

Brace yourself, Gordon is in town

Wall Street II is no flashback to
the 80s, but Michael Douglas still
steals the film, says Marc Sidwell

One or two things

Film have changed while
he was in prison
Cert: 12A

ORDON Gekko comes to London. If
you enjoyed Oliver Stone’s original
film, do you really need any other
inducement to see Wall Street’s
sequel, Money Never Sleeps? For a few
brief scenes the financial world’s debonair
Mephistopheles can be seen, trademark
devil-may-care smirk and all, getting
shaved in Trumper’s, measured for a suit
in Savile Row and doing what he does best,
ruthlessly putting money where it can
grow fastest, from an glass-walled office
with a magnificent City view.
Be warned that after a twenty-three
year gap, this film is far more than a con-
ventional sequel and a little less than its
remarkable predecessor. Wall Street was
the film of a director young enough and negotiatior with a bottomless thirst for to himself. Indeed, the only words on gov- the new is absent. By contrast, Wall Street,
angry enough at the world to try and power. As Moore strives to break free and ernment are left to Gekko, who more than planned as a show trial of the new breed
change it, a morality tale aimed at the bull make sense of his own priorities, the film once expresses his “healthy distrust for of trader, saw the type Stone wanted to
market of the 1980s; the new film is the gains yet another strand as it attempts a big government”. The deeper lesson seems condemn becoming the story, rather than
work of an older man looking for life les- potted history of the 2008 crisis. Surely to be one of human tragedy in the face of his scripted verdict.
sons in the rubble of the 2008 crash, mak- never before has a film managed to com- the agendas of the powerful. Gekko lives on, a demonic figure who
ing Wall Street II an altogether more bine a bittersweet quest for reconciliation All that said, Money Never Sleeps falls will not let bonds of blood or loyalty stand
autumnal affair. The battle of the banks is across the generations with an exposition short of the first film. Wall Street did not in the way of his skill. He is a devil, but
interwoven with the story of Gekko’s of the nature of toxic debt and moral haz- just put a fresh gloss on the ancient prob- also a liberator, a City College boy who
attempts to rebuild a relationship with his ard. lem of power: it announced a new world, refuses to let vested interests have all the
estranged daughter, and to atone for the It is to the great credit of Stone that the one that was brash, rich, egalitarian, driv- fun. He attracts and appals, because we
death by overdose of his only son. At times film, wobbling under the weight of so en by technological revolution and, yes, still live in his disrupted world, with even
the atmosphere is more like a late many elements, still more or less suc- dangerous and open to abuse. Cell phones the powerful too often clinging to old cer-
Shakespearean comedy than a conven- ceeds, combining nostalgic cameos – Bud are smaller in the sequel, but the shock of tainties that don’t work any more.
tional Hollywood coming-of-age drama. Fox has apparently sold his soul for a per-
That could sound a little downbeat, yet matan and a blonde on either arm – with
remember the promise of those scenes in
London. This is not just a case of exit
a fresh take on the world of finance after
twenty years. Stone’s personal politics may THEN AND NOW | THE QUOTABLE GORDON GEKKO
Gekko, pursued by a bear. One of the lean towards Hugo Chavez, but he grew
charms, if also a frustration, of Money up with Wall Street – his father was a bro- WALL STREET WALL STREET II
Never Sleeps, is that it offers so many ker – and he remains a highly gifted direc- We make the rules, pal. The news, war, Someone reminded me I once said "Greed is
films under one banner. That gives it over- tor. The result, as with the first film, peace, famine, upheaval, the price per paper good". Now it seems it's legal. Because
all a restless, exhilarating energy, if also escapes into a much more human story clip. We pick that rabbit out of the hat everyone is drinking the same Kool Aid.
making it less tight in storyline than the than Stone’s didactic side might have while everybody sits out there wondering
original. wished. how the hell we did it. Now you're not naive Money is a bitch that never sleeps!
In the new film, as well as the story of Stone presents his bankers like rival enough to think we're living in a democracy,
what Gordon gets up to after his prison mafia families, and their meetings at the are you buddy? It's the free market. The mother of all evil is speculation.
sentence – he writes a bestseller predict- Fed as the shameless fleecing of the
ing the 2008 meltdown – we also have a public coffers by men serving their The point is, ladies and gentleman, that The one thing I learned in jail is that money
reworking of the old Bud Fox-Gekko own cynical ends, but he also takes greed, for lack of a better word, is good. is not the prime asset in life. Time is.
dynamic. Shia LaBeouf is a young trader, aim at Main Street for its embrace Greed is right, greed works. Greed clarifies,
Jake Moore, in search of a mentor and of an unsustainable property cuts through, and captures the essence of It's not about the money - It's about the
engaged to Gekko’s daughter. He gets bubble. And although a cri- the evolutionary spirit. Greed, in all of its game.
more that he bargained for not only tique of government’s role in forms; greed for life, for money, for love,
from his encounters with Gekko but the crisis is absent from his knowledge has marked the upward surge of Stop telling lies about me and I'll stop
in his new boss, Bretton James, narrative, Stone keeps his mankind. telling the truth about you.
played by Josh Brolin as a brutal enthusiasm for big government


“Wall Street was a major cult film. The “As a film that captured the spirit of the “The original film caused widespread
greased-back hairstyles, the £1,000 age, the original Wall Street was with- excitement among people who didn’t
‘whistle and flute’, the £150 pair of out equal. Mostly, its legacy in the City know much about the City, and the
Churches, Turnbull & Asser shirts was a collection of great one-liners – ‘greed is good’ slogan captured the
and Hermes tie. It was all a great act ‘money never sleeps’, ‘greed is good’ imagination of the lumpenproletari-
and no doubt Gordon Gekko was and, my personal favourite, ‘lunch is for at – but at the end of the day, it was just
very influential.” wimps’!” a movie, not a creed.”
CITYA.M. 7 OCTOBER 2010 Lifestyle | Books 27

An angel in Wonderland doesn’t

quite reach the satirical heights
The wildly inventive THAN SHWE: UNMASKING
recession novel by a BURMA’S TYRANT
Booker Prize-winner Silkworm, £20.99
is scuppered by its hhhhi
by Alex Deane
second-rate narrator
ONE balks at the notion of men so
undeserving as Than Shwe as the sub-
ject of biographies. But evil and tyranny
LIGHTS OUT IN must not only be loathed – it must also
WONDERLAND be understood.
That Shwe, Burma’s ruthless, brutal dic-
BY DBC PIERRE tator, is perhaps the foremost proponent
Faber & Faber, £12.99 of such qualities in our time, and thus
thoroughly merits the attention given to
hhhii him by this scholarly and timely book.
by Jeremy Hazlehurst It’s timely because on 7 November
Burma will hold “elections”. They will
DBC PIERRE’S first novel, Vernon God be a total sham. That Shwe will win.
Little, was a brilliant act of ventrilo- That is entirely predictable; just as pre-
quism in which he channelled the voice dictable as the suffering that his coun-
of a 15-year-old American boy on death trymen will endure as a result of his
row for a murder. This – his third novel – continued power.
also tries to capture the state of the What deserves reflection and indeed
world through another young man demands our attention is the apathetic
struggling to make sense of his peculiar approach that countries around the
segment of it, and is also a no-holds- world have adopted and continue to
barred, scorched-earth critique of capi- adopt in response to what is happening
talism. there, and the sheer extent of the
Our narrator is the angelically-named human depravity that occurs there as a
Gabriel Brockwell – confused anti-capi- result.
talist and self-confessed bad poet, Rogers advances a compelling and con-
microwave chef, drug-abuser and all- vincing case that Burma’s tyrant has
round loser. He decides to commit sui- committed crimes against humanity.
cide, but after one last bender with his Rogers does not pull his punches (nor
pal Nelson Smuts, who is working as a should he, of course). I unashamedly con-
chef in a Tokyo restaurant. Drugs, high- Living the high The Kalashnikov is a product of state fess that I had to put this book down a
end booze and a sexual encounter with
THE GUN life in Tokyo manufacture – only the Soviet system number of times and let my emotions
an octopus follow. BY CJ CHIVERS could have devoted such expertise and settle. 
Soon we are in Berlin – site of capital- Allen Lane, £25 Picture: ALAMY know-how to creating a 10lb gun with It is impossible to read of the mas-
ism’s triumph over Communism – where so much firepower. sacring of thousands, the torturing and
Smuts is hired to create a menu that is hhhhi When the USSR collapsed, the guns it brutal mutilation of thousands more, of
evidently meant to suggest Trimalchio’s by Jeremy Hazlehurst manufactured spread all over the world. the use of people as human landmine
famously decadent feast in Petronius’ The wars in many parts of the world detectors, of the massacring of families
Satyricon. Koalas, rhinos and monkeys THE HISTORY of the Kalashnikov rifle could only have been fought with them; and villages, with equanimity.
are on the menu, as are drugs, booze and might seem a bloodthirsty topic, if not it has made child soldiers and guerilla What Rogers achieves, forensically
grubby decadence. one reserved only for bores and gun armies possible. As Chivers says: “War and precisely, is the demonstration of
The fantasies about high-end cuisine nuts, but in the hands of this Pulitzer reorganized around Stalin’s gun”. the plain fact that this heap of pain,
are baroque and beyond, the whole Prize-winning New York Times journal- Chivers follows the sad, strange indignity and subjugation is done at
thing becomes so cartoonishly hyper-real ist – who was formerly a marine who career of General Kalashnikov, used as a Than Shwe’s direct behest. It is difficult
that the satirical intent is drowned. It’s fought in the first Gulf War – it is a fas- salesman to flog his gun to dictators to know at times whether one is read-
not helped by ponderous asides (often in cinating look at mass production, and repressive regimes all over the ing a biography or a lengthy and graph-
footnotes which break the story’s flow) industrialisation, and the way that tech- world, and also tells the surprising ic criminal indictment.
about Thatcherism and totalitarianism, nology shapes the world. secret history of how firearms deter- For years Rogers has dedicated his life
and the general decadence of market To illustrate this, a few Kalashnikov mine the course of wars – had the to exposing the tragic wrongdoings in
capitalism. facts from the book: there is one for Americans in Vietnam had better guns, this former British colony and this, the
The problem with ventriloquism is every 70 people alive; they are so widely history might have been very different. first ever biography of the Beast of
that you are dependent on the quality of available and easy to use that the In his novel Bomber, Len Deighton Burma, is the ultimate fruit of his
your dummy. Vernon Little was a sharp, Chukti people of the western Pacific suggests that war is driven by machines, efforts.
acerbic, mercurial, surprising and witty shoot whales with them; guns made in and that the possibilities they allow At £21 for a paperback copy, it’s most
one. Gabriel is just a dummy. 1953 are still being used by Afghan mil- become inevitable. We are drawn along unlikely to be taken up by the casual
For all its invention, the characters itants; the flag of Mozambique has a by heavy bombers, atomic bombs and reader – but for anyone with a serious
and the world Lights Out creates are pro- Kalashnikov on it, where it has equal other weapons, and lives change to fit interest in Burma, or in the way that
saic, and after a couple of hundred pages billing with a hoe and a book. the patterns their weapons create. The evil develops and is allowed to develop,
the stylised, over-rich dialogue is hard to Remember, too, that it features on history of the Kalashnikov suggests that this book is a must-read.
digest – almost as hard as a plate of mon- murals in Belfast. It is one of the icons rather than being a fanciful notion, it’s Alex Deane is the director of Big Brother
key-brain ravioli. of our era. a melancholy truth. Watch, a think tank

Roll up, roll up, tickets are on sale now You probably didn’t know that it is Another week, another spe-
to see this brilliant actor take on the chocolate week from the 11th, but it is. cial event courtesy of the
biggest role imaginable. The Oliver-win- Where better to celebrate that indefatigable Tom
ner has proved that he is a versatile Claridge’s? Chocolatier William Aikens, who from 4-18
stage actor over the years, and it’s just Curling will be dishing up some special October is cooking up
the time for him to take on The Dane. creations, including a pistachio and a special seasonal
Advance rumours suggest that he’ll do chocolate opera, chocolate and sea salt menu at his restau-
it as a hoodie, and has a mercurual caramel tart and – perhaps ideal for rants for the London
rather than a gloomy take on the role, those Mayfair hedge fund boys – a trop- Restaurant Festival
perhaps taking a cue from David ical chocolate financier. Tom’s Kitchen Somerset
Tennant. Not to be missed. At Claridge’s for one week only starting on 11 House and Chelsea, 4-18
Rory Kinnear – to see or not to see? From 26 October, tickets on sale now from £10 A Curling creation October October
28 Lifestyle | Food & Drink CITYA.M. 7 OCTOBER 2010

Warm your cockles with a TIM

big, bold autumn red wine BADHAM


New world or old, it’s

all about gutsy vinos
right now, writes
Jeremy Hazlehurst

AMES JOYCE said that white wine is
lightning, and red wine is beefsteak.
I don’t know about you, but a beef-
steak in a glass is exactly what I
want at this time of year. We asked some
of the City’s most trusted wine experts to
recommend their favourite wines for this
time of year.
“Once the game season starts you want
something substantial in red wine,” Battersea’s Vertilon Bar.
enthusess Alan Griffiths of wine mer-

New breed of
chant Berry Brothers. “The classic autumn
wines are ones from the Rhone and
Languedoc, with spicy flavours.” For a
Rhone wine, he says that rather than go

hotel bars to
for the well-known Chateauneuf-du-Pape
he would look to another producer close
by which makes very similar wines that
cost far less. The 2007 Vacqueyras Les

boost London
Christins has a “deep black colour, lots of
fruit and spices and liquorice to give it
some character” and sells for £13.95 a bot-
tle from Berry’s. From Languedoc
Roussillon he looks to the Pic Saint Loup

region – “they make some spicy interest- ONDON may have cutting edge
ing wines with structure” – and he recom- nightlife when it comes to clubs and
mends a Domaine l’Hortus, £11.95 a restaurants but sadly the bar culture
bottle. isn’t quite NYC. Fortunately the much
Moving out of France and towards maligned (if pricey) hotel bars are here to
Spain, to Ribera del Duero to be precise, save the day.
we have a Collar de Silos, made with the In the coming month the scene is going to
same tempranillo grape that they use in get a serious boost with a host of new luxury
Rioja, “but more elegant,” says Griffiths. hotels soon to open their doors and their
With a “warming strawberry flavour”, bars. The American Bar, with its classic
and it tastes like a lighter wine than its Savoy Cocktail Book, will soon re-open along
14.5 per cent alcohol might suggest. £15.95 then in the bar. tends to look for Zinfandels, Italian Just the thing after a with a new art deco Beaufort Bar at the
a bottle. Down in Italy and over to Over in the Rhone, he recommends a Chiantis and big, spicy Rioja Reservas, “or hard day’s work. restored Savoy. The Amaranto lounge bar
Piemonte Berry’s has the Langhe Gevrey-Chambertin Domaine called if you want something old school, then go will be debuting at the re-modelled Four
Nebbiolo, full of “roses and tar” and sell- Dugat-Py, £75 a bottle. In terms of clarets, into the Crozes Hermitages”. Specifically, Picture:GETTY Seasons in December, featuring an impres-
ing for £16.50. For new world fans, a wine he picks out a Leoville Barton second he guides me towards The Gatekeeper sive-sounding wine wall. Up the road The
called The Scribbler from the Barossa growth, £60 for an 06, going up to £85 for Shiraz, a classic spicy Australian with Dorchester’s little brother, 45 Park Lane, is
Valley and made by Yalumba. A combina- a 1978. Alternatively, another well-known blackcurrant and raspberry flavours that due in January and the much anticipated W
tion of shiraz and cabernet sauvignon, it’s favourite in the bar is Cos d’Estournel, and sells for £6.15 for a small glass, or £22.95 Hotel on Leicester Square soon after
got “lovely ripeness” more “elegance” they sell a 1994 vintage for £70. for a bottle; and a Crozes-Hermitage The new five-star Corinthia’s Bassoon Bar is
than some Aussies. £12.25. For those with a thing for the “spice box “Millepertuis” Guyot that sells for £28.95 also looking exciting down by Trafalgar and
If you are looking for something to give flavours” of the big new world reds, he a bottle, or £7.95 a glass. will be designed by David Collins. Finally, Von
you a boost after work (or even at suggests a Two Hands shiraz that sells for Corney’s also does a big, chocolately, Essen’s Verta Hotel by the Battersea Helipad
lunchtime), the lovely Planet of the Grapes £40. They also have a De Bartoli shiraz on spicy Edmeades Mendocino Zinfandel has just been cleared for take-off and their
wine bar in Leadenhall Market has a few by the glass at the moment,whose “cassis from California, at £29.95. Back in the old Vertilon Bar promises to whisk you back to
suggestions. The bar’s Beans Boughton flavours, luscious fruit and velvety tan- world, Cameron suggests Chateau de 30’s glamour with a jet set crowd.
also looks towards France, and points out nins” can warm your cockles at £8 for Lamarque Cru Bourgeois Superieur 2004, There are plenty of golden oldies too.
their Domaine Faiveley Blagny, a classic 175m, and £9 for 250ml. yours for £34.95 the bottle. So there you go For a modern classic with a colourful twist
100 per cent pinot noir burgundy, “but If that’s not your neck of the woods, you – a selection to put warmth into the cold- try David Collins’ beautiful Blue Room at The
not like the fresh ones that you have in are sure to be within striking distance of a est bones. All you need to do now is to find Berkeley, or for old school style with a touch
summer, it’s a stronger, deeper beast” at Corney & Barrow wherever you are in the a nice fireside to drink them by. of contemporary glamour it’s hard to beat
£25 – they add one a tenner to all their City. Rolo Cameron of the Lime Street the world class Connaught Bar (similarly a
pieces if you want to drink it there and branch says that as autumn takes hold he David Collins creation) and the slightly more
tranquil Coburg Bar with its Bacchanology
menu’s historical insight into your tipple.

Shell out on
little gobs of horror. I fall into the first catego- skills are legendary, and Scott’s on Mount For older school still there is the superbly
ry, and so it is with fanfares and rejoicing that Street (also in Mayfair) was also given a refined Dukes Bar for the ultimate Martini
I read that Rowley Leigh’s much-loved Café modern twist by Mark Hix. Over in the City, made at your table or Library Bar at the
Anglais has opened an oyster bar. They’re sell- we have the Runner at Green’s on Cornhill, Lanesborough for its Regency gentleman’s

British oysters
ing half a dozen Carlingford Rocks for a rea- with its spectacular crustacean display and drinking den and Garden Room, a clandestine
sonable £7.50, Maldon Native No 2s glasses of Laurent Perrier champagne smokers’ paradise.
for £16.50 a half dozen, and a to ensure that your lunch goes out Modern options include the lively Light Bar
tasting plate with 12 of the lit- in style. For those willing to and exclusive Bungalow 8 at St Martin’s
tle beasties for £23.50. Add a make the trip south of the Lane and the Miami-esque Long Bar and
spot of Picpoul de Pinet (£5 river, Wright Brothers in stunning Courtyard Garden at The
A new bar is a great addition to a glass, £11 a half-bottle Borough Market is one of Sanderson, also home to the intimate and
and £21 a bottle – all the the best in town, and you luxurious Purple Bar. The Met Bar has been
London’s growing seafood scene wines in the oyster bar are
available in half-bottles) and
can wash your oysters down
with London-brewed porter,
reliving its rock star heritage of late and The
Sanctum Soho rock ‘n’ roll credentials are
you are away. just like they did in the days improved by its 24-hour Roof Garden Bar.

IKE Marmite and the ouevre of Robbie The new Café Anglais bar, of when they were a staple of Newcomers to the scene include the stylistic
Williams, oysters divide opinion, and course, joins a growing list of London’s poorer classes. HUNter 486 at The Arch, the buzzy Bar
strongly. For some they are the perfect London restaurants that have Le Café Anglais, 8 Porchester Boulud at the Mandarin Oriental and the sur-
expression of pure foodiness, something fallen in love with the beautiful Gardens, London W2 4DB; tele- prisingly funky hidden find of Fleming’s
that is best eaten quivering, dressed only with British bivalve. Bentley’s, the classic phone: +44 (0)20 7221 1415, web: Cocktail Bar.
the smallest squeeze of lemon or (if you must) Mayfair oyster bar, was rejuvenated in recent Tim Badham is the founder of concierge
a dab of Tabasco. For others they are snotty years by Richard Corrigan, whose shucking Jeremy Hazlehurst company Innerplace.
CITYA.M. 7 OCTOBER 2010 Lifestyle | TV& Games 29


6pm BBC News 6pm Eggheads: Quiz show, 6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm BBC London News hosted by Jeremy Vine. 6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
7pm The One Show 6.30pm Strictly Come Dancing 7pm Emmerdale 7pm Channel 4 News 7pm Five News at 7
7.30pm EastEnders; BBC News – It Takes Two 7.30pm The Cuts Are Coming: 7.55pm 7.30pm Jaguar Adventure with
8pm CHOICE Watchdog 7pm Games Today: Highlights Tonight 8pm River Cottage Every Day Nigel Marven; Five News
9pm Traffic Cops from day four of the 8pm Emmerdale 9pm Dispatches: Bravo’s Deadly Update
10pm BBC News Commonwealth Games. 8.30pm Coronation Street Mission 8pm Deep Sea Divers; Five
10.25pm Regional News 8pm CHOICE Nigella Kitchen 9pm Law & Order: UK 10.30pm CHOICE True Blood News at 9
10.35pm Question Time 8.30pm Autumnwatch 2010 10pm ITV News at Ten 11.40pm 3 Minute Wonder: 9pm FILM Kiss of the Dragon:
11.35pm This Week; Holiday 9.30pm Autumnwatch 10.30pm London News New Sensations 2010 Martial arts adventure, starring
Weatherview Unsprung 10.35pm FILM The Matrix 11.45pm Reaper Jet Li. 2001. WATCHDOG
12.25am Sign Zone: Panorama 10pm Mock the Week Revolutions: Sci-fi sequel, 12.45am A Family Portrait 10.55pm Police Interceptors BBC1, 8.00PM
12.55am Sign Zone: Countryfile 10.30pm Newsnight; Weather starring Keanu Reeves. 2003. 12.50am Mother of Many 11.55pm Cops in Crisis Anne Robinson and Matt Allwright
1.55am Sign Zone: Wild Wales 11.20pm Whites 12.50am The Zone; ITV News 1am King of the Hill 1.25am King of 12.10am SuperCasino investigate why hundreds of thousands
2.55am Sign Zone: Antiques 11.50pm Harry & Paul Headlines the Hill 1.45am Who Knows Best: 4.05am Police Interceptors of ordinary drivers are at risk of having
Roadshow 3.55am Sign Zone: 12.20am The Apprentice: 2.50am The Jeremy Kyle Show Getting a Job 2.40am The Hospital 4.55am Animal Rescue Squad their cars seized by the police.
Britain’s Empty Homes: Finding a You’re Fired! 3.45am The Cuts Are Coming: 3.35am Unreported World 4am 5.10am Michaela’s Wild Challenge
property in rural Suffolk. 4.25am- 1.05am BBC News 4am-6am BBC Tonight 4.10am-5.30am ITV Hercules 5.25am-6.10am 5.35am-6am Michaela’s Wild
6am BBC News Learning Zone Nightscreen Countdown Challenge

SKY SPORTS 1 ESPN 11pm Family Guy 11.45pm Him 11pm Extreme Trains 12am Ice 9pm I’m Pregnant and 55-

6pm Live Darts 12am Ringside 7pm Press Pass 2010 7.30pm and Her 12.15am Are You Road Truckers 1am Deep Sea Years-Old 9.30pm I’m
1am Premier League World Live NBA Basketball 10pm Fitter Than a Pensioner? Detectives 2am How the Earth Pregnant and Addicted 10pm I
1.30am Time of Our Lives MMA Live 10.45pm UFC 1.15am Kids with Guns – Was Made 3am Concorde – A Didn’t Know I Was Pregnant
2.30am Ringside 3.30am Unleashed 11.45pm ESPN Stacey Dooley Investigates Love Story 4am-5am Specials: Cradle Will Rock
Premier League World 4am Game of the Week 12.15am 2.15am The King Is Dead Disappearing Britain 11pm Embarrassing Illnesses
ESPN Kicks Extra 12.30am 2.45am E20 3.10am Britain’s 12am I’m Pregnant and 55- NIGELLA KITCHEN
Time of Our Lives
Press Pass 2010 1am Live Really Disgusting Drinks DISCOVERY Years-Old 12.30am I’m BBC2, 8.00PM
SKY SPORTS 2 4.10am-4.40am Him and Her 8pm How Do They Do It? Pregnant and Addicted 1am I Nigella Lawson demonstrates how to
Major League Soccer 3am-
7pm Live European Rugby 8.30pm How It’s Made 9pm I Didn’t Know I Was Pregnant get food on the table quickly, featuring
5.30am Live NHL Ice Hockey
Union 10pm Ringside 11pm E4 Shouldn’t Be Alive: Two boys Specials: Cradle Will Rock 2am recipes for roast lamb with rosemary
Time of Our Lives 12am LIVING 7pm Hollyoaks 7.30pm Friends who were swept out to sea. Embarrassing Illnesses 3am and port and Japanese prawns.
European Rugby Union 3am 7pm Baggage 8pm Private 9pm The Big Bang Theory 10pm Deadliest Catch 11pm The 28 Stone Teenager:
IAAF Athletix Weekly 3.30am Practice 9pm Nikita 10pm 9.30pm How I Met Your Greatest Tank Battles 12am Shocking Story – One Year
Modern Pentathlon 4.30am- Criminal Minds 12am CSI: Mother 10pm PhoneShop Bear Grylls: Born Survivor 1am Later 4am A Baby Story 5am-
5.30am Race World Crime Scene Investigation 10.30pm The Inbetweeners Deadliest Catch 2am Rory 6am Bringing Home Baby
2am Charmed 3am Nothing to 11.05pm School of Comedy McGrath’s Best of British
SKY SPORTS 3 Declare 3.50am Pete Burns’ PA 11.35pm Misfits 12.40am Engineering 3am Weaponology SKY1
7pm Premier League World 4.40am The Jerry Springer Scrubs 1.35am Glee 2.15am 3.50am Raging Planet 4.40am 8pm Modern Family 9pm An
7.30pm Live Premier League Show 5.30am-6am Home Misfits 3.10am What About Days That Shook the World Idiot Abroad 10pm A League of
Snooker 8.30pm Live PGA Shopping Brian 3.50am Samantha Who? 5.30am-6am How Does That Their Own 10.30pm Football’s
Tour Golf 11pm European Tour 4.15am The Hills 4.35am-6am Work? a Funny Old Game 11pm NCIS:
Golf 12.30am Golfing World BBC THREE Switched Los Angeles 1am Road Wars TRUE BLOOD
7pm Top Gear 8pm Are You DISCOVERY HOME & 1.50am Premiership’s 50 CHANNEL4, 10.30PM
BRITISH EUROSPORT Fitter Than a Pensioner? 9pm HISTORY HEALTH Greatest Goals 2.40am Oops Sookie and Bill travel to Dallas to find
6.40pm Strongest Man Kids with Guns – Stacey Dooley 7pm How the Earth Was Made 7pm Deliver Me 8pm The 28 TV 3.30am Lost 4.20am the missing leader of the local vampire
8.40pm Fight Club 11.40pm- Investigates 10pm EastEnders 8pm Ice Road Truckers 10pm Stone Teenager: Shocking Vroom Vroom 5.10am-6am community. Meanwhile, Maryann
12.25am International Football 10.30pm The King Is Dead America: The Story of the US Story – One Year Later Sell Me the Answer throws a party for Tara.

Copyright Puzzle Press Ltd,


34 18 13 30 6 35 30 
17 7 12
15 20
Place the numbers from 1 to 9 in each empty cell so that each 16 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 45
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 8 24 13
above or to the left of it. 17 19
You can only use the digits 1-9 15 16    
   and you must not use the
3 14  
same digit twice in a block. 20 33 27 32 17
  The same digit may occur 31 23 
    more than once in a row or
column, but it must be in a

  separate block. 
7 19
      22 10 4

3 Concealment (7) 1 Principal bullfighter (7)
6 Nimble (5)
7 Craftiness (7)
2 Arsonist (7)
3 Factions (5)
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   ten minutes to find as many words as possible,
U L 8 Dexterous (5) 4 Become used up (3,3)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I 9 Concerning those
who are not members
5 High-kicking dance (6)
10 Deciduous tree (3)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E O of the clergy (7)
13 Musical
11 Blue-flowered
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
D Y composition (4)
trailing plant (7)
12 Official who is expected
16 Pitch of the voice (4)
to ensure fair play (7)
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30 Sport CITYA.M. 7 OCTOBER 2010

Burton Albion............(0) 1 Rotherham........................(0) 2
Arsenal won’t win title, says Hartson
Walker 83 Bradley 65
Arsene Wenger’s Gunners are well they want to get that monkey off Adams, Steve Bould or Martin Keown

Att: 1,360 Ellison 79 (pen) FOOTBALL
Sheff Wed.....................(1) 2 Chesterfield......................(1) 2 BY FRANK DALLERES equipped to end their five-year wait their back.” mould.
Mellor 12, Tudgay 90 Morgan 10, Davies 84 for silverware in one of the cup com- Arsenal were boosted yesterday by “I think they’re missing someone
Att: 15,003 FORMER Arsenal striker John Hartson petitions. the news that captain Cesc Fabregas like a Paul Merson to open up that
Sheff Wed win 8-7 on penalties.
has written off the club’s chances of “I don’t think they’ll win the and England winger Theo Walcott are link. I know [Andrey] Arshavin does it
COMMONWEALTH GAMES challenging for the Premier League league. I didn’t think that at the start set to return from injury after the but not like Merson used to do it for
ATHLETICS—W Women's Shot Put Final: 1 L Ellery (Aus) this season because he believes their of the season. I think the league’s international break. But Hartson me. And I still think they need that 25
1110pts, 2 J Hamill (Nzl) 979, 3 G Prescott (Eng) 952, 4 B squad is too thin. between two teams: Chelsea and Man believes that Wenger still needs to goal-a-season man. This year I think
Moore (Aus) 951, 5 M Okoko (Ngr) 937, 6 M Mahadevaiah
(Ind) 651, 7 D Malik (Ind) 526, 8 A Oluoch (Ken) 29. Hartson, who is now looking to get Utd,” he told City A.M. enhance his squad with a handful of it’s intriguing to see if [Marouane]
SHOOTING—M Men's Singles 10m Air Rifle Final: 1 G Narang into management having won an 18- “I think they’re good enough to signings in order to bridge the gap Chamakh can come up with the goals
(Ind) 703.6pts, 2 A Bindra (Ind) 698, 3 J Huckle (Eng) 693.5, month battle with testicular cancer, win a trophy and could win one of with Chelsea and United. for them. He’s started very well.”
4 K Parr (Eng) 693, 5 E Gouw (Aus) 692.9, 6 J Hong Ong insists the title is a two-horse race the cups. “I think they’re missing two or John Hartson will be at Waterstones, Jubilee
(Sin) 692.2, 7 J Zhang (Sin) 690.6, 8 T Vitler (Aus) 690.4. between Chelsea and Manchester “Arsene Wenger will realise now it’s three players,” added the Welshman. Place, Canary Wharf today at 12:30pm to
Pairs Double Trap Final: 1 England 189pts, 2 India 188, 3
Malaysia 185, 4 Australia 184, 5 Isle of Man 182, 6 Malta United. been five or six years and, no matter “I think they’re missing a big com- sign copies of his new book, ‘Please Don’t
171, 7 Canada 171, 8 Singapore 160, 9 Niue 111. But the 35-year-old is convinced what he says in the press, I believe manding centre-half in the Tony Go: Big John’s Journey Back To Life’.
DNS: Northern Ireland
SINGLES—550m Pistol Final: 1 O Singh (Ind) 653.6pts, 2 B
Gai (Sin) 649.6, 3 S Hon Lim (Sin) 644.7, 4 S Edirisinghe (Sri)

Goddard keeps
638.3, 5 N Baxter (Eng) 635.7, 6 K Ullah Khan (Pak) 634.2, 7
M Gault (Eng) 632.3, 8 D Moore (Aus) 630. 0.
WOMEN'S—SSingles 25m Pistol Finals: 1 A Sayyed (Ind)
786.8pts, 2 R Sarnobat (Ind) 781.0, 3 P Bibiana Ng (Mal)
778.2, 4 L Yauhleuskaya (Aus) 772.0, 5 L Ryan (Aus) 769.4, 6
S Badrin (Mal) 769.2, 7 J Lydall (Eng) 765.5, 8 L Wachowich
(Can) 757.2.

the gold rush

SWIMMING—M Men’s 200m Backstroke Final: 1 J Goddard
(Eng) 1min 55.580secs, 2 G Kean (Nzl) 1:57.370, 3 A Delaney
(Aus) 1:58.180, 4 C Walker-Hebborn (Eng) 1:59.000, 5 C
Francis (Can) 2:0.070, 6 M Loughran (Wal) 2:0.110, 7 T
Oriwol (Can) 2:0.240, 8 R Bennett (Eng) 2:1.860. 4x200m
Freestyle Final: 1 Australia 7mins 10.290secs, 2 Scotland
7:14.020, 3 South Africa 7:14.180, 4 Canada 7:14.630, 5
England 7:16.570, 6 Malaysia 7:43.530, 7 India 7:46.180.

going in Delhi
50m Butterfly Final: 1 J Dunford (Ken) 23.350secs, 2 G
Huegill (Aus) 23.370, 3 R Schoeman (Rsa) 23.440, 4 M
Patterson (Aus) 23.650, 5 R John Pini (PNG) 23.880, 6 A
James (Eng) 24.290, 7 V Khade (Ind) 24.610, 8 A Mayor
(Sco) 24.630. 100m Breaststroke Final: 1 C Van Der Burgh
(Rsa) 1min 0.100secs, 2 C Sprenger (Aus) 1:0.290, 3 B
Rickard (Aus) 1:0.460, 4 M Jamieson (Sco) 1:0.600, 5 S
Dickens (Can) 1:0.980, 6 G Mark Snyders (Nzl) 1:1.390, 7 K
Gilchrist (Sco) 1:1.430, 8 D Sliwinski (Eng) 1:1.680.
“I came down with a bit of a

WOMEN’S—1100m Freestyle Final: 1 A Coutts (Aus) COMMONWEALTH GAMES

54.090secs, 2 E Seebohm (Aus) 54.300, 3 F Halsall (Eng)
BY JON COUCH tummy bug and had nothing to give
54.570, 4 H Palmer (Nzl) 54.680, 5 A Smith (Eng) 54.910, 6 today, I pretty much couldn’t stand
V Yuen Poon (Can) 55.040, 7 N Hind (Nzl) 55.440, 8 E JAMES GODDARD continued up after my final,” she said.
Saunders (Eng) 56.170. 100m Backstroke Final: 1 E
Seebohm (Aus) 59.790secs, 2 G Spofforth (Eng) 1:0.020, 3 J England’s gold rush in the pool after Meanwhile, Gemma Spofforth
Wilkinson (Can) 1:0.740, 4 S Edington (Aus) 1:0.810, 4= B regaining the 200m backstroke title. began as favourite for gold in the
Hocking (Aus) 1:0.810, 6 G Davies (Wal) 1:1.050, 7 M The 27-year-old, who won his first women’s 100m backstroke, but had
Ingram (Nzl) 1:1.140, 8 S Russell (Can) 1:1.420. 200m gold in Manchester in 2002, swam a to settle for silver behind Seebohm.
Breaststroke Final: 1 L Jones (Aus) 2mins 25.380secs, 2 T
Wallace (Aus) 2:25.600, 3 S Katsoulis (Aus) 2:25.920, 4 M Commonwealth Games record of Elsewhere, Luke Folwell and Reiss
Mccabe (Can) 2:26.460, 5 A (Can) 2:27.210, 6 S Tadd (Eng) 1.55.58 to head off New Zealand’s Beckford delivered gymnastics gold
2:28.480, 7 H Miley (Sco) 2:30.200, 8 K Buchan (Sco) Gareth Kean by a clear two seconds. and silver for England in the men’s
2:31.180.44x200m Freestyle Relay Final: 1 Australia 7mins It was England’s third gold in two all-round individual final, while Steve
53.710secs, 2 New Zealand 7:57.460, 3 England 7:58.610, 4 days after Fran Halsall and Liam Scott and Stevan Watson took
Canada 7:58.920, 5 Scotland 8:6.850, 6 Wales 8:8.500, 7
Northern Ireland 8:13.020, 8 India 8:56.590. Tancock both won their events on England’s first shooting gold of the
WEIGHTLIFTING—W Women's Group A 58kg Final: 1 R Tuesday. Games with victory in the men’s dou-
Yumnam (Ind) 197pts, 2 S Lee (Aus) 192, 3 Z Smith (Eng) “I knew I had a one-minute-55 time ble trap pairs event.
188, 4 C Ciana Agricole (Sey) 187, 5 E Quarton (Can) 185, 6 in me, but I still think I can go quick- Sixteen-year-old Zoe Smith won
A Moniqui (Can) 184, 7 R Kari (PNG) 178, 8 P Tzuche (Cmr)
171, 9 H Jewell (Eng) 170, 10 F Akther (Ban) 16.
er,” said Goddard, who missed bronze in the women’s 58kg
August’s European Championships in weightlifting and England’s Myroslav
TODAY’S DIARY Budapest because of a virus. Dykun took the men’s 66kg Greco-
“I’ve had a shoulder problem for Roman wrestling gold.
European Under-21 Championship Play-Off First Leg the last year, it’s been playing up for
Iceland v Scotland (8pm)........................................................................................
Switzerland v Sweden (7.15)..................................................................................
the last few days, and I’m so happy. I C’WEALTH GAMES | MEDALS TABLE
Blue Square Bet Premier knew it was going to be quite a tight
Forest Green v Grimsby (7.45)................................................................................ field. I’m so chuffed with the time.” G S B Total
COMMONWEALTH GAMES Halsall, meanwhile, blamed a 1 Australia 21 15 10 46
touch of Delhi belly for missing out 2 India 11 8 5 24
2010 Commonwealth Games (Delhi, India).
on the chance for a double gold after 3 England 6 11 9 26
settling for bronze in the women’s 4= South Africa 3 2 4 9
SPORTS EDITOR JON COUCH 100m freestyle behind Australian pair 4= Malaysia 3 2 4 9
email Alicia Coutts and Emily Seebohm. Goddard won England’s third gold in the pool in two days. Picture: ACTION IMAGES

Rookie Finn nets top ICC SPORT | IN BRIEF

Benayoun faces lengthy lay-off Wozniacki closes in on No1 spot

gong but Swann edged out

FOOTBALL: Chelsea have been dealt TENNIS: Caroline Wozniacki will become
another injury blow with the news that the new women’s world No1 if she beats
midfielder Yossi Benayoun faces several Czech Petra Kvitova in the last 16 of the
months on the sidelines with an Achilles China Open today.
problem. The Dane eased past Sara Errani 6-4,
The Israel captain, 30, has been out 6-2 second round win over Sara Errani in
for three weeks with a calf strain but a Beijing yesterday and needs one more
Finn, 21, played in six Test matches Swann, meanwhile, missed out scan undertaken while on international win to leapfrog Serena Williams at the

during the voting period, taking 27 despite taking 49 wickets in Tests and duty for the Euro 2012 qualifiers against top of the rankings.
BY JON COUCH wickets at an average of 21.85. 28 in one-day internationals during Croatia and Greece, has revealed a tear Briton Andy Murray is also in action
ENGLAND fast bowler Steven Finn Receiving his award from leg- the qualification period. He was in the Achilles tendon. today, against Spain’s Albert Montanes.
was handed a pre-Ashes boost yester- endary West Indies bowler Joel short-listed along with Tendulkar, fel-
day after being named the ICC Garner, Finn said: “It’s a great honour low India batsman Virender Sehwag Raikkonen no to F1 return Froch all set for title bout
Emerging Player of the Year. to win this, an award I wasn’t expect- and South Africa’s Hashim Amla. FORMULA ONE: Former F1 world cham- BOXING: Carl Froch’s Super Six fight
The 6ft 8in Middlesex paceman ing and I’m very pleased and hon- l Meanwhile, the appeals by the pion Kimi Raikkonen has dismissed sug- against Arthur Abraham next month has
beat off competition from Pakistan’s oured to be playing Test match cricket three Pakistan cricketers against their gestions he could make a return with been confirmed as a world title bout.
Umar Akmal, Sri Lanka’s Angelo for my country. I’ve enjoyed the last suspension over ‘spot-fixing’ allega- Renault for next season. The Nottingham fighter lost the WBC
Matthews and Tim Paine, of Australia, few months representing my country tions will be heard in Doha over two The 2007 champion now drives in the super-middleweight title to Mikkel
to land the top gong in Bangalore. and I hope it continues. days starting in on 30 and 31 October. world rally championship but was Kessler in April but an injury to the Dane
But there was no such luck for spin- “Next up is the Ashes and I think Captain Salman Butt, Mohammad approached about making a comeback means the title is now vacant.
ner Graeme Swann, who was pipped we’re well prepared to win the series Amir and Mohammad Asif have been by Renault boss Eric Boullier. Froch will also get the chance to
by Indian legend Sachin Tendulkar to – we’ve got a settled side ready to go charged by the ICC following allega- But the Finn said: “Its 100 per cent cer- defend the belt on 27 November with
the ICC Cricketer of the Year prize. for this winter.” tions made in the News of the World. tain I will not drive for Renault in 2011.” Kessler set to await the winner.
CITYA.M. 7 OCTOBER 2010 Sport | Liverpool takeover 31

Premier League chiefs and Carragher FANS VIEW

set to give takeover the green light We’re not

directors yesterday despite strong senior executives of the club and has, Carragher has thrown his weight

insist fans

opposition from current owners Tom accordingly, been made aware of a behind the proposed takeover.
BY JON COUCH Hicks and George Gillett. number of potential prospective own- Under new boss Roy Hodgson, the
THE proposed takeover of Liverpool League bosses have been kept ers in recent weeks. Reds are currently in the bottom
could be granted approval as early as informed of developments and have “We can confirm that Liverpool FC three of the Premier League after suf-
Friday, the Premier League confirmed revealed it would be more than happy has formally notified the Premier fering their worst start for 53 years. LIVERPOOL fans’ group, Spirit of
last night. to give the takeover the go-ahead. League of an intended change of con- And Carragher said: “Everyone Shankly (SoS) say they have greeted the
A £300m offer to buy the club from It said in a statement: “The board of trol and that the board has undertak- knows it’ll be a good thing for the news of John W Henry’s imminent
New England Sports Ventures the Premier League has been kept en to complete all the necessary club. Hopefully it will be sorted soon- takeover with “cautious optimism”.
(NESV) – principally owned by Boston fully informed of developments processes by Friday so that the sale of er rather than later and we can start The group have organised a num-
Red Sox chief John W Henry – was regarding the potential sale of the club can proceed.” improving results, which is what we ber of protests against the current
accepted by the Liverpool board of Liverpool FC by the chairman and Meanwhile, Reds defender Jamie need to do.” ownership, but spokesman Jay
McKenna insists their anger is direct-
ed solely at Hicks and Gillett and that

Owners may yet halt deal

they are not anti-American.
“It is not about who you are or
where you come from, it is about
being the right owner for the club,”
he said. “I think there is cautious opti-
mism and hopefully the football club
will finally get rid of Hicks and
Gillett. After three troublesome years
Hicks and Gillett could supporters will want to see the back
of them quickly.”
Of the new owners, he added: “I
mount legal challenge as would like to know a bit more about
the supposed sale process and who
chairman gives go-ahead, will be in charge of the club. We
would like them to engage with sup-
says Frank Dalleres porters.
“They need to be saying the right
LIVERPOOL’S sale to American group things – but Hicks and Gillett said all
New England Sports Ventures could the right things and failed to deliver.
be delayed or even derailed by a legal “Supporters will be watching quite
challenge from current owners Tom keenly and we would like them
Hicks and George Gillett, sports busi- (NESV) to come out and alleviate con-
ness experts warned last night. cerns. We deserve to know what is
Reds chairman Martin Broughton going on.
is adamant the board has the right to “We have fought long and hard to
sell the club to John Henry’s NESV for get rid of Hicks and Gillett and we
£300m, even against the owners’ don’t want more of the same.
wishes, and is “confident” of being “So we wait with baited breath. We
proved right in court next week. hope these people are the right owners
Hicks and Gillett have opposed the to take over Liverpool Football Club.”
deal because they stand to lose Meanwhile, ShareLiverpoolFC – the
around £140m on their investment, Hicks and Gillett group which is campaigning to see
and the case is now expected to go stand to lose the club run by supporters – have nat-
before a judge after the duo failed to around £140m on urally expressed sceptisism of the
remove Broughton and two other their investment. move.
board members. Picture: PA Board member Rogan Taylor said:
That move has bought Hicks and “I don’t feel any great excitement
Gillett extra time to either secure refi- about the prospect, I must admit.
nancing of the £280m they must pay RBS into relaxing their stance. resources. They cannot use the club’s Key to Broughton’s position is his “John Henry’s got a lot of respect in
Royal Bank of Scotland by the end of “If Hicks and Gillett put up a huge future incomes to secure borrowing.” belief that he has a signed undertak- the sports world over in the States.
next week, or come up with another fight, which they may do, the bank Graham Shear, a partner at Berwin ing from Hicks and Gillett giving him Our problem is, will they understand
buyer willing to pay a higher price. may back off and give them another Leighton Paisner, told City A.M.: “My the right to sell the club if he finds a anything about the way it actually
And while neither of those plans month to find a solution,” McLean gut feeling is the owners are running suitable owner. Shear added: “The works here and the kind of culture on
appear to be very far advanced, foot- told City A.M. “I’d imagine there’s lots out of time. They could buy more question of whether the board can which this stuff grows?
ball finance expert Joe McLean of of frantic behind-the-scenes activity time with a legal dispute, or end up force through a sale depends on to “I think that’ll remain a concern
Grant Thornton believes it could going on. If they get refinancing it’d dealing directly with bidders and try- what extent possible contractual for a very long time, even if he does
cause enough controversy to force have to be personally borrowed ing to get a better price.” undertakings take primacy.” take over the club.”

Henry: Self-made millionaire ulating Bob Diamond could have

been involved in putting Red Sox
owner John Henry in touch with

who brought Red Sox glory

The BarCap boss is a massive
Red Sox fan and a close friend of
former banker Henry.
Representing NESV is New York-
based sports consultancy firm
Inner Circle. According to its web-
BOB DIAMOND site, the firm advised Liverpool on
ments have made Henry and NESV funds and was estimated to be worth its refinancing and stadium financ-

BY FRANK DALLERES one of the most popular regimes in £540m four years ago. That is thought ing in 2007 and 2008.
the Major League Baseball. Last year to have been hit by the downturn but THE Liverpool board is being They have also been a part of
PROSPECTIVE Liverpool owner John Sports Illustrated magazine named NESV is valued at nearly £1bn. advised on the sale of the club by deals involving Setanta Sports,
W Henry knows what it takes to them the best of the 30 MLB owners. He was born in Arkansas, where he Barclays Capital. Co-head of Real Madrid and Sunderland
revive the dwindling fortunes of a Liverpool owner Tom Hicks, who grew up on a farm before taking over European M&A Mark Warham is Football Clubs.
world famous sporting name, having owns the Texas Rangers, was 29th. the family business aged 25. He now heading up the search for a buyer Nigel Boardman is the legal
done as much with Boston Red Sox. Henry has toyed with the idea of lives in Florida but returns to Boston and is believed to be advising the adviser to Liverpool. The partner at
Henry, 61, and his holding compa- moving the Red Sox away from their during the baseball season. club on the proposed takeover by Slaughter and May specialises in
ny New England Sports Ventures took iconic home, Fenway Park, but has Henry’s sporting interests spreads New England Sports Ventures corporate deals.
control of the baseball franchise in ultimately resisted the temptation to to NASCAR; he bought a 50 per cent (NESV). He was involved in FirstGroup’s
2002 and by 2004 had ended their 84- transfer the team to a more modern stake in Roush Fenway Racing in Warham left Morgan Stanley disposal of GB Railfreight in June
year wait to recapture the World stadium. Similar decisions face the 2007. last year to take up the post. The and advised Asda on an agreement
Series. Since then they have repeated Anfield hierarchy, with work on a Henry is joined in NESV by 16 other BarCap team has recently worked with Dansk Supermarked to buy its
the feat, in 2007, re-establishing the proposed new ground at Stanley Park individuals, with close ally Tom advising BHP on their hostile bid wholly owned subsidiary Netto
team’s reputation as one of the pre- currently on ice. Werner, 60, a friend of ex-US presi- for Potash. Foodstores.
eminent forces in the game. A self-made multi-millionaire, dent Bill Clinton and the current Red The market was yesterday spec- Steve Dinneen
Unsurprisingly, those achieve- Henry amassed his fortune in hedge Sox chairman, chief among them.
32 CITYA.M. 7 OCTOBER 2010


FOOTBALL Liverpool FC to its rightful place in

BY FRANK DALLERES English and European football, suc-
cessfully competing for and win-
LIVERPOOL’S prospective owners ning trophies.”
New England Sports Ventures last NESV’s bid of around £300m
night eased supporters’ fears by would clear all the debt owed to the
promising their takeover will leave Royal Bank of Scotland, including
the club debt-free. fees for late payment that Hicks
The American group, led by hedge and Gillett have incurred. Their
fund millionaire and Boston Red loan is due for repayment on Friday
Sox owner John Henry, have 15 October, and time is running out
pledged that their estimated for them to refinance.
£300m bid will wipe out any exist- Highly significant is NESV’s prom-
ing debt at Anfield. And, crucially, ise not to load further debt onto the
they have vowed not to load any club. Hicks and Gillett’s borrowings
extra borrowing onto the club in have crippled their ability to invest
order to complete the buyout, as in Liverpool, contributing to the
current owners Tom Hicks and team’s dip in performance. Last sea-
George Gillett did in 2007. son they failed to qualify for the
Hicks and Gillett still hope to Champions League and they are
delay or overrule the board’s deci- currently amid their worst to a new
sion to sell to Henry and NESV, but campaign for 57 years.
the bitter dispute now seems cer- Manchester United’s owners the
tain to be decided in court. Glazer family have also attracted
Confirming their bid had been huge criticism for their leveraged
accepted, the American group said buyout of the club in 2005. Old
in a statement: “NESV wants to cre- Trafford debts are estimated to be
ate a long-term financially solid around £700m and spending on
foundation for Liverpool FC and is players has been slashed in the last
dedicated to ensuring that the club 18 months.
has the resources to build for the Liverpool are, however, likely to
Boston Red Sox future, including the removal of all escape a points deduction even if
owner John Henry acquisition debt. RBS call in Hicks and Gillett’s loan,
has made his pledge “Our objective is to stabilize the as the club itself is solvent.
to Liverpool. club and ultimately return WHAT NEXT FOR BID? PAGE 31
Picture: PA

Captain Moody faces race Westwood turns his back

on the PGA Tour millions
to be fit for All Blacks clash play-offs a fortnight ago, but

Westwood has vowed to turn his
weekend, which is obviously very 20 victory over the Wallabies in RYDER CUP hero Lee Westwood will back on the fortunes across the pond

tough on him. He was just getting Sydney and was expected to keep the continue to fly the European flag in and put his family first.
BY JON COUCH used to the Bath style of play, and it’s captaincy for the four-match series 2011 after snubbing the chance to “The FedEx Cup sits right in the
ENGLAND captain Lewis Moody faces equally frustrating for the rest of us to against New Zealand, Australia, play on the American PGA Tour. middle of the kids summer holidays
a race against time to be fit for the lose him at this stage in the season. Samoa and world champions South The 37-year-old moved up to second and I like going on holiday with them.
first autumn Test against New “We will of course make sure he Africa this autumn. in the world rankings after helping “I don’t want to be dictated to by
Zealand at Twickenham after picking receives the best possible attention to His absence though would leave Europe retain the Ryder Cup at the having to go to America to play FedEx
up a facial injury playing for Bath at get him back on the field as, and Johnson short of candidates to take weekend. Cup when it doesn’t really mean that
the weekend. when, he’s ready.” the captain’s armband for the first And he could even depose Tiger much to me. It doesn’t mean enough
The 32-year-old is likely to be out for Coach Martin Johnson gave Moody game against the All Blacks on 6 Woods as the world’s No1 player with to me anyway.”
four weeks after suffering bruising to the nod to replace Steve Borthwick as November. a first or second finish at the Dunhill Westwood is one of nine European
his eye following a collision with captain for the summer tour of Centre Mike Tindall, fly-half Jonny Links Championship, which starts Ryder Cup heroes, plus captain Colin
Gloucester full-back Charlie Sharples Australia after the Saracens lock suf- Wilkinson and No8 Nick Easter are today. Montgomerie, to play on the Scottish
in the 18-3 defeat on Friday night. fered a knee injury. among the leading candidates with World No5 Jim Furyk earned more Links’ this week with the finale tak-
“Lewis took a serious knock at the He led the side to a memorable 21- Borthwick left out of the elite 32. than £7m by winning the FedEx Cup ing place at St Andrews on Sunday.
Some of our investments
aren’t meant to make a profit.
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