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 BUSINESS WITH PERSONALITY

HAS CHELSEA MANAGER ESCAPE THE

COLD
CARLO GOT THE BLUES? ZEBRA SAFARIS
IN MAGICAL
CHAMPS DENY QUIT CLAIM P32 ZAMBIA P26-27
Issue 1,268 Monday 22 November 2010 www.cityam.com FREE

IRELAND SURRENDERS
WORLD ECONOMY
▲

BY JULIET SAMUEL
IRELAND finally succumbed to pres-
sure and gave up its fiscal sovereignty
yesterday, with the government
announcing that it had applied for an
aid package to bail out the public
finances and the country’s ailing
banking sector.
Irish Prime Minister Brian Cowen
would not give a figure for the bailout
amount but finance minister Brian
Lenihan told RTE news that it “would
not be three figures” but would be in
the “tens of billions”. Independent
estimates for the amount range from
€60bn to €120bn (£52bn-£104bn), with
the money to be loaned at less than
market rates.
Britain is reportedly to stump up
€7bn – though it is not clear whether
this will be a bilateral loan or whether
it will go through the European
Financial Stabilisation Mechanism.
The other sources of cash will be the
Eurozone member countries and the
International Monetary Fund, with
Sweden also having offered money.
As a condition of the bailout, the
Irish government will be subject to reg-
ular reviews to make sure that it is on
track in tackling its deficit.
The Irish government is due to pub-
lish a four-year-plan this week to bring Ireland’s Brian Cowen (left) and Brian Lenihan explain themselves at a press conference last night Picture: PA
its 11 per cent deficit (32 per cent
counting the state’s guarantee of Irish Eurozone leaders want to bring the authorities.” quarter of this year, there were grow- sparked discontent on the Tory back-
bank loans) down to three per cent by country’s low corporation tax of 12.5 The IMF and EU could demand that ing fears of a run on Irish banks. benches, with John Redwood MP say-
2014. It has said that this will involve per cent into line with their own high- Irish banks increase their core capital As part of the bailout, the banks’ ing that the UK cannot afford to make
savings of €6bn this year and €15bn er rates, but the Irish government has ratios from current levels of eight per financing package will include a loans worth billions: “The public will
overall, with most to be absorbed by called that issue “non-negotiable”. cent. Allied Irish Bank revealed on restructuring that Cowen said would find it difficult to understand why cer-
spending cuts and tax rises on a two-to- EU finance ministers yesterday Friday that it has been haemorrhaging “downsize and make sustainable” the tain items are being cut that matter to
one ratio. released a joint statement declaring cash, with €13bn worth of deposits – Irish financial system, although he them, if the money being spent on EU
However, Ireland will now have to that “financial support will be provid- mostly from businesses – withdrawn would not give any further details. contributions and euro support keeps
negotiate the details of its deficit pro- ed under a strong policy programme since June. With Bank of Ireland also In the UK, Chancellor George soaring,” he wrote on his blog.
gramme with its new creditors. Other which will be negotiated with the Irish seeing outflows of €10bn in the third Osborne’s offer of help to Ireland has MORE ON IRELAND: P2-3

FTSE 100 t5,732.83 -35.88 DOW ▲11,203.55 +22.32 NASDAQ ▲2,518.12 +3.72 £/$ 1.60 unc £/¤ t1.17 -0.01 ¤/$ ▲1.37 +0.01 Certified Distribution
04/10/10 - 31/10/10 is 110,406
 2 News CITYA.M. 22 NOVEMBER 2010

Growing euro crisis raises the stakes Ireland’s PM

faces backlash
investors have been relaxed about the well above the Office for Budget whereas the OBR projects 21 per cent
UK, partly because there is a big dif- Responsibility’s (OBR) forecast for the drop over the full fiscal year.

ference between exposure and a loss.
Britain is unlikely to be dragged down
in any substantial way by Ireland,
Portugal or Greece. Worryingly, it is
tough to work out what is really hap-
pening in Spain or Italy. If those coun-
EDITOR’S LETTER tries were to hit the rocks, an EU-wide
double-dip recession and generalised
ALLISTER HEATH calamity would be inevitable.
With Democratic-controlled
full year (6.7 per cent). Revenues have
been fuelled by higher-than-expected
nominal GDP growth (5-6 per cent
year on year compared with the OBR’s
forecast of 4.4 per cent growth for the
whole year, in part because inflation
is overshooting), the first VAT hike
(back to 17.5 per cent, boosting rev-
enues by about 2 per cent).
Corporation tax receipts are up 28 per
There is one more piece of good
news, courtesy of Citigroup. Since
May 2006, the monthly deficit has
been revised down 41 times from the
initial data, with only 12 upward revi-
sions. For the last 12 figures, the
deficit has been revised down 10
times and only twice upwards. For
that 12-month period, the cumulative
downward revision has been a mas-
▲
EU ECONOMY
BY STEVE DINNEEN
FURY over the handling of the finan-
cial crisis engulfing Ireland could
soon see the government driven
from office.
Prime Minister Brian Cowen has
nose-dived in opinion polls amid wide-
spread belief he lied to the public over
the state of the nation’s finances.

I
T’s all starting to feel a little too
much like we’ve returned to 2007.
First a few little-known mortgage
lenders, then Bear Stearns
(Greece) in early 2008, then Freddie
and Fannie (Ireland) – and then, even-
tually Lehman Brothers (Italy or
Spain?) and the whole pack of cards
came crashing downs. What at each
stage seemed imminently contain-
able soon enough turned into a finan-
cial and economic disaster.
Fortunately, we are not there yet.
UK banks have substantial exposure
to Irish assets. Nevertheless, so far
California also teetering on the brink,
and the Republicans in Congress in
no mood for clemency, the spectre of
sovereign defaults will be the greatest
risk facing the world economy in
2011, above even the risk of China’s
credit bubble going pop.
So far, the gilts markets have stood
up well, largely because investors are
convinced that the coalition won’t be
turning on its plan to balance the
budget. As analyst Michael Saunders
of Citigroup points out, central gov-
ernment revenues are up 9.2 per cent
year on year in the fiscal year to date,
cent year on year in April-October.
The problem for the British govern-
ment is that austerity is not fully
being implemented, contrary to the
rhetoric. Total central government
current spending and net public
investment rose 5.9 per cent year on
year in April-October where the OBR
projects a 4.2 per cent gain over the
full year. Part of this overshoot
reflects higher interest payments,
including indexation on index-linked
gilts. But public investment also has
fallen less than expected so far, drop-
ping 5 per cent in April-October
sive £24bn.
Our public finances are improving
and will make it easier to deal with
small-scale sovereign crises. The rest
of the EU has a much bigger problem,
however: it has no solution to the fact
that the euro is clearly not working
and actually fuelling booms and
busts. And its resolution procedures
for failed states remain confused and
opaque. It still seems as if the UK at
least will be all right. But the chances-
that we won’t be have started to go
up.
allister.heath@cityam.com
With an increasing threat of civil
unrest and growing calls for the
government to call a general elec-
tion, it seems Cowen’s days are
numbered.
A poll commissioned by the Irish
Sunday Independent found voters
are “deeply resentful” at the manner
in which they believe the govern-
ment “lied” to them.
An editorial from the same news-
paper read: “All Fianna Fail [the lead-
ing party] could offer the people was
deceit, grand-standing and empty
hands.”

7th Floor, Centurion House,

24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Revealed: The UK’s Irish risk
Editorial loan exposure. EUROPEAN BANKS EXPOSURE TO THE PERIPHERY (€M) Source: Morgan Stanley
▲

BANKING
Editor Allister Heath The data lists Lloyds having no sov-
Deputy Editor David Hellier BY JULIAN HARRIS ereign bond holdings in Ireland, and Bank Sovereign Periphery Periphery Loan Periphery TNAV 2011 Sovereign Periphery Total Exposure
Exposure Exposure TOTAL Exposure as % of as %
News Editor Ben Griffiths THREE major UK banks – RBS, a Lloyds BG spokesperson said the TNAV 2011 of TNAV 2011
Night Editor Katie Hope Barclays and Lloyds – together have- bank has “no sovereign exposure to
Associate Editor David Crow more than €100bn (£860m) of expo- Portugal or Greece” and “minimal” Credit Agricole 3,261 31,825 35,086 28,612 11% 123%
Business Features Editor Marc Sidwell sure in Ireland, according to data sovereign risk exposure in Ireland.
seen by City A.M. The three banks with the largest Dexia 6,713 3,894 10,607 8,905 75% 119%
Lifestyle Editor Zoe Strimpel
Pictures Alex Ridley Morgan Stanley conducted Irish sovereign bond holdings are RBS 3,533 73,857 77,390 68,752 5% 113%
research on the levels of exposure in Credit Agricole (€929m), HSBC
Commercial the three “peripheral” Eurozone (€596m) and RBS (€385m). Danske Bank 89 11,086 11,175 12,103 1% 92%
Sales Director Jeremy Slattery countries, Ireland, Portugal and In the Eurozone, Ireland (9.9 per
Commercial Director Harry Owen Greece. Unsurprisingly “the largest cent), Greece (17.5 per cent) and Santander 5,173 33,342 38,515 51,530 10% 75%
Head of Distribution Nick Owen exposures are clustered in UK banks”, Portugal (7.2 per cent) have the high-
the report says. est proportions of banking assets Lloyds BG 169 31,451 31,619 52,223 0% 61%
After the Irish bailout, which could funded by the European Central Bank
Distribution helpline still see bank creditors taking losses, (ECB). In recent months Ireland’s level Barclays 1,838 20,728 22,566 53,781 3% 42%
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email such figures will be analysed ever of reliance has surged upwards, Intesa SPI 794 9,362 10,156 29,866 3% 34%
distribution@cityam.com more closely. resulting in ministers last night suc-
In total 21 listed banks hold cumbing to a bailout. SocGen 5,093 4,830 9,923 34,149 15% 29%
Editorial Statement €347bn of exposure across the three The report warns that Portugal
BNP Paribas 8,090 3,500 11,590 59,675 14% 19%
This newspaper adheres to the system of countries. Of that, €131.5bn is held by could face a similar fate. While the
self-regulation overseen by the Press Complaints RBS, Barclays and Lloyds BG. country’s problems are more due to
Commission. The PCC takes complaints about the The exposure to sovereign risk of “low productivity and competitive- Natixis 716 576 1,292 12,776 6% 10%
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at state-owned RBS is shown as equal to ness”, its levels of government debt to HSBC 2,517 - 2,517 91,456 3% 3%
www.pcc.org.uk 113 per cent of the company’s Total GDP are similar to Ireland’s – making
Printed by Newsfax International,
Net Asset Value (TNVA). it an off index investment in the eyes UniCredit 1,066 - 1,066 49,946 2% 2%
Beam Reach 5 Business Park, The report considers both sover- of many investors, according to the
Marsh Way, Rainham, Essex, RM13 8RS eign bond holdings as well as direct report. Deutsche Bank 700 - 700 40,701 2% 2%

WHAT THE OTHER PAPERS SAY THIS MORNING

ROK WAS WARNED ON OUTLOOK
Senior executives at Rok, the failed
building group, were warned the
company’s public statements risked
misleading investors by failing to
identify the extent or source of its
problems. The board of directors was
contacted by Ashley Martin, at the
time the suspended finance director,
after Rok released a trading state-
ment on August 11 that said it was
“confident about the outlook” for its
core maintenance and improvements
business.
LATIN AMERICAN BANKERS PAY SOARS
The growing demand for senior
investment bankers in Latin America
is driving up compensation levels.
This year, a top investment banker in
Brazil will earn an average $1.7m
(£1.1m), according to Options Group,
a global recruitment consultancy,
twice as much as in China.
TOP US BANKS FACE $100BN BASEL
SHORTFALL
The top 35 US banks will be short of
between $100bn and $150bn in equity
capital after the new Basel III global
bank regulations are imposed, with
90 per cent of the shortfall concen-
trated in the biggest six banks,
according to Barclays Capital. The
BarCap study assumes the banks will
need to hold top quality capital equal
to 8 per cent of their total assets,
adjusted for risk.
PENSION SCHEMES MUST TACKLE RISK
FTSE 100 pension schemes could see
their collective deficits increase by
more than £25bn in a single month
because of their exposure to interest
rate, inflation and equity market
risks. PensionsFirst, which has spent
two years developing a “value-at-risk”
model for defined benefit pension
schemes, has calculated that there is
a 5 per cent chance of such a large
swing in the total deficit of the UK’s
biggest corporate schemes.
ELECTION OF GENERAL SECRETARY GREEN RESTRICTIONS ON GAS “COULD
FAILS TO UNITE TRADE UNION ENDANGER UK SUPPLY”
Unite has a new general secretary
today but the manner of his election
— with less than seven per cent sup-
port from the membership — was
sharply criticised as an indication of
the disillusionment among members
of Britain’s biggest and most power-
ful union.
CIGARETTE GIANTS BREATHING FIRE
OVER PLAN FOR PLAIN PACKAGING
Britain’s two biggest cigarette makers
have launched a vitriolic attack on
the Government’s plan to force them
to use plain brown packets, saying
the move would be “like Christmas”
for counterfeiters. British American
Tobacco, whose brands include
Dunhill, Lucky Stripe and Kent, said
the policy — intended to remove the
glamour from smoking — may have
the opposite effect.
Power bosses from RWE and E.ON
have warned that the threat of green
restrictions on gas could stop new
plants being built, potentially endan-
gering Britain’s energy supply.
Concerns were sparked as ministers
announced that they are prepared to
fund a £1bn trial project looking at
“carbon capture and storage” for gas,
where emissions are siphoned off and
stored underground.
TESCO GIVES STAFF A £55M
CHRISTMAS “PRESENT” – IF THEY
SPEND IN STORE
Tesco has given its staff a £55m
“Christmas thank you”. However,
workers won’t actually get their
hands on any cash bonus. The voucher
package will cost the retailer £40m,
with the remaining £15m spent on
giving staff an extra day’s holiday.
CRITICISM HINDERS FED'S EASING
PLAN
Criticism of the Federal Reserve’s lat-
est bond-buying programme, both
from insiders and from US politi-
cians, is muting the plan’s potential
benefits for the economy. Amid wide-
ly publicised skepticism about the
efficacy and wisdom of the bond buy-
ing, investors and traders are ques-
tioning whether the Fed would be
able to expand its bond purchases
beyond $600bn – even if inflation
continues falling and unemployment
remains high.
MERCK CHOLESTEROL DRUG IS FOUND
TO HELP KIDNEY PATIENTS
A new study concluded Merck & Co’s
cholesterol-lowering drug Vytorin
modestly reduced the risk of heart
attacks and related disease among
people with chronic kidney disease,
when compared with a fake drug.
CITYA.M. 22 NOVEMBER 2010 Ireland Bailout 3

Irish to take to the streets as

crisis threatens to boil over
Irish to the streets. the 40,000-strong Technical

▲
EU ECONOMY
BY STEVE DINNEEN
IRELAND looks set to be hit by waves
of civil unrest as the full scale of its
financial nightmare begins to sink
in.
Jack O’Connor, general president of
SIPTU, Ireland’s largest labour union
believes anger at the government’s
handling of the crisis coupled with
severe austerity cuts will drive the
He said: “I think we’re close to the
tipping point. The kind of policies
that have been pursued to date,
which have been seen to fail, will not
work. There will be a reaction to
those kind of policies.”
Trade unions, student groups and
senior citizens are planning the first
demonstration in Dublin on
Saturday.
Eamon Devoy, general secretary of
Engineering and Electrical Union,
added: “A lot of political leaders have
been saying that they can’t under-
stand the calm about the Irish citi-
zens at the moment, but I think it’s
the calm before the storm.”
Next week the government will
issue its four-year plan for cutting the
worst budget deficit in the Eurozone,
with a target of €15bn in savings by
2014.

A passer-by walks in front of a Dublin discount store Picture: REUTERS

UK groups hold
firm in Ireland
Dublin.
▲

IRISH BAILOUT
SOME of the most high-profile corpo-
rate emigrants to the Irish tax regime
told City A.M. yesterday they are not
yet considering a move away from the
country, with UK rules on controlled
foreign companies (CFCs) influencing
their decision more than the total tax
rate.
Now that the Irish government has
admitted it will seek bailout funds
from the European Union, contribut-
ing member states are expected to
demand an increase in the country’s
favourable corporate tax rate, which
has stood at 12.5 per cent since 2003.
Though finance minister Brian
Lenihan insists a tax rise is not on the
table, he might not be in control.
Though the corporation tax rate is
the lowest of a major European econ-
omy, it is Ireland’s lack of a formal
CFC regime that makes it especially
popular – particularly for companies
with large foreign profits.
Since the 2008 UK budget added
anti-avoidance measures for CFCs,
several companies have set up in
Pharmaceutical firm Shire was one
of the first to move in April that year.
“The decision to move wasn’t based
on the lower tax rate but the way tax
is applied to foreign companies in the
UK,” said a spokesperson for Shire.
“There’s no discussion of a move back
going on behind the scenes – this is
the nature of the environment we
moved to and there’s no indication
that will change.”
The Henderson Group also said it
had no plans to reassess its position.
“The Group made the decision to
move with long-term prospects in
mind,” said a spokesperson. WPP, the
gaint advertising group, said much
the same. UBM, which moved in
April 2008, declined to comment.
Though the UK Treasury launched
a consultation in January to relax the
CFC regime, change is unlikely before
2012.
Several US companies in Ireland
are understood to have issued a warn-
ing that a rise in corporate tax rates
would reduce investment in the
country and harm competitiveness.

TIME LINE |

The firms that made the move

● Shire
The pharmaceuticals company was the first to
jump ship in April 2008, establishing a new par-
ent company tax-resident in Ireland.
● United Business Media
Later in April UBM also launched a holding com-
pany in Ireland. It cited international growth as
the catalyst, with 85 per cent of its profits now
coming from overseas.
● Henderson Group
The asset management firm moved its holding
company to Dublin in October 2008. At its 2009
AGM the company told investors that it would
now pay 20 per cent corporate tax, compared to
the UK’s 28 per cent.
● WPP
The advertising group made its move to Ireland,
with outspoken chief executive Sir Martin
Sorrell warning that unless UK tax laws on for-
eign companies change it wouldn’t be the last to
go.
● Northern Foods/Greencore
The food retailers announced their intention to
merge last week. New company Essenta will be
headquartered in Ireland to take advantage of
the 12.5 per cent tax rate.
CITYA.M. 22 NOVEMBER 2010 News 5

Shoppers hit the

stores, yet rising
debt levels are the
price to pay
Orange to trigger
Picture:
Micha Theiner
/City A.M. an iPad price war
version – for users signing up to an 18

▲
EXCLUSIVE
BY STEVE DINNEEN
THE pricing model for Apple’s all con-
quering iPad could undergo a dra-
matic shift, with UK carrier Orange
set to offer heavily discounted units
to users willing to sign lengthy con-
tracts, City A.M. has learned.
It is understood the firm will offer
the iPad for around £200 – far below
the starting price of £529 for the 3G
or 24-month data contract.
The discounted iPads are expected
to hit Everything Everywhere – the
firm formed by the merger between
Orange and T-Mobile – stores in time
for Christmas. A spokesman declined
to comment last night.
The new pricing strategy, which posi-
tions the iPad closer to the iPhone than
Apple’s range of laptops, could open up
a discount war between UK carriers.

John Lewis
sees £88m in
week’s sales
Warm clothing and household
▲

UK ECONOMY
BY JULIAN HARRIS
SHOPPERS have been flocking to buy
goods in the run up to Christmas,
according to John Lewis’ latest sales
figures, released today.
Last week £88m was spent in the
department store, a 12 per cent jump
from the same time last year.
New gadgets are selling well, such
as Kindle Readers, iPads, iPods and
SLR digital cameras. Consumers may
be stocking up before VAT is pushed
up to 20 per cent in the new year.
UK retail sales have recently picked
up, increasing by half a per cent
between September and October. Last
month’s figures were slightly lower
than at the same point last year, but
John Lewis’ announcement offers
hope for a greater jump in high street
sales this month.
Sales through the John Lewis web-
site are up 42 per cent from last year,
reflecting huge increases in internet
purchases across the sector.
However, Director of Operational
Development Lesley Ballantyne,
insists that the group’s “bricks and
clicks” policy is seeing improved sales
in-store, as well as online.
items are also flying off the shelves,
said Ballatyne, as shoppers battle the
cold weather and prepare their
homes for the holiday period.
The figures were described as
“largely encouraging” by Howard
Archer of IHS Global Insight.
However, he warned that while John
Lewis has traditionally been seen as a
bellwether for the industry, “it has
recently been outperforming the
retail sector as a whole.”
The news came as a household
finance survey revealed that people
are getting in more debt to pay for
their spending.
The Markit Household Finance
Index, based on data from Ipsos
MORI, said that a rise in household
spending “came at the expense of a
survey record rise in debt and a steep
fall in savings.”
As incomes fall, 29 per cent of
respondents indicated a worsening of
their finances (compared to seven per
cent saying theirs had improved).
Recognising the pinch on consumers,
Tim Moore, an economist at Markit,
said that “…falling incomes mean
that higher spending is resulting in
more debt and lower savings.”

PM: migrant cap won’t

stop inter-firm transfers
immigration system.”
▲

POLITICS
DAVID Cameron yesterday said that
inter-company transfers would likely
be excluded from government plans
to cap the number of economic
migrants entering the UK from out-
side the EU.
City firms have been calling on the
government to exempt transfers
within companies, which they say
would hinder their ability to com-
pete internationally.
Yesterday, the Prime Minister said:
“We will try and exempt many of the
inter-company transfers from the
A temporary cap is in place but an
announcement is expected next
week on permanent measures from
next April.
Baroness Jo Valentine, the chief
executive of City lobby group
London First said: “It’s good news for
the economy that government lis-
tened to business and excluded inter-
national moves within companies
from the cap.
“We now need to see whether the
cap is made flexible enough to
enable companies to bring in other
highly skilled specialists they need.”
 6 News
Militant era looms for Unite
with election of hard-liner
UNIONS
▲
BY JULIET SAMUEL
THE UK’s biggest union, Unite, has
elected a new leader reported to have
said that “there is no such thing as an
irresponsible strike”.
Len McCluskey, currently assistant
general secretary, was elected on a 16
per cent turnout, winning 101,000
votes – nearly double that of his near-
est rival.
The vote, to be announced formally
on Wednesday, is a resounding victo-
ry for the union’s left, with Les
Bayliss, the main moderate candidate
who had argued against the BA
strikes, coming in third place with
46,000 votes. Jerry Hicks, endorsed by
the Socialist Worker, came second
with 52,000 votes.
McCluskey’s victory could open the
door to the adoption of a more mili-
tant strategy by Unite, a merged body
of five formerly independent unions
with a total of 1.4m members.
McCluskey will also be a more power-
ful figure than the union’s previous
leaders because he is its first single
general secretary. The role was for-
merly shared by rivals Tony Woodley
and Derek Simpson.
In response to McCluskey’s elec-
tion, Tory party chairman Baroness
Warsi said: “Labour’s reliance on
Unite’s bank balance means that Len
McCluskey can hold the party to ran-
som and win extreme, left-wing poli-
cy concessions.”
Ed Miliband was elected Labour
leader with the help of Unite mem-
bers in September, but in response, a
spokesman for Ed Miliband said:
“That is absurd. The election of the
Unite leader has no bearing on Ed
whatsoever.”
THE WORLD ACCORDING TO......
MCCLUSKEY on British Airways
"BA management’s real agenda is destroying
trade unionism among its employees.”
MCCLUSKEY on the Labour Party
“We must return Labour to its roots as a radical
reformist party.”
MCCLUSKEY on the City
“The government is making ordinary people pay
for the bankers’ crash with savage cuts.”
MCCLUSKEY on other unions
“Under my leadership, Unite will secure further
mergers with sister trade unions.”
MCCLUSKEY on the economic crisis
“My political principles are clear. Capitalism has
failed, as the present crisis shows.”
Len McCluskey becomes the new leader of Unite
CITYA.M. 22 NOVEMBER 2010
Osborne may
water down
bonus rules
▲
BANKING
GEORGE Osborne has set a collision
course with business secretary Vince
Cable after it emerged he may water
down bank bonus rules.
The chancellor is on the verge of
scrapping planned legislation forc-
ing banks to disclose bonuses over
£1m, according to a report in the
Financial Times.
Bankers have lobbied Osborne, say-
ing London’s position as a financial
hub could be harmed as firms con-
sider moving abroad to escape the
rules.
But any watering down of the
bonus rules will almost certainly
lead to clashes with Cable, who has
strongly campaigned for greater
transparency.
Osborne is understood to favour a
united action with the US and
Europe.
Both Cable and Osborne were
unavailable for comment last night.
Osborne may water
down planned rules
forcing banks to
declare bonuses
totalling over £1m.
Picture: GETTY
 Cell,
cell,
cell.

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 The Capitalist
8 CITYA.M. 22 NOVEMBER 2010
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com

QUIET BOOK BILL OF THE WEEK

LAUNCH FOR
BROWN ONLY
FOR PROFS
AFTER a long dormancy, which has seen
former Prime Minister Gordon Brown
make only rare appearances as an MP in
the House of Commons, the troubled ex-
chancellor is readying himself for a low-
key book launch at the London School of
Economics.
The Capitalist has learned that the PM
has set a date of 7 December for the
launch, but if you were hastily pencilling
the momentous day into your diary,
think again. In the classic crowd-shun-
ning mood of the former PM’s post-elec-
tion activities, the event will only be
open to students and professors of the
university.
With 2010 having already seen a rash
of books by Labour party grandees – from
Peter Watt’s Inside Out to Lord
Mandelson’s The Third Man and Tony
Blair’s epically named A Journey – Brown
has gone for an altogether more academ-
ic name for his serious tome: Beyond the
Crash: Overcoming the First Crisis of
Globalisation. Well, he never claimed to
be a branding genius…
He is rumoured to have worked up
quite a lather over the behaviour of RBS,
which could make for an interesting
Brown is unlikely to compete with Blair on his speaking fee.
read given his friendship with Sir Fred
Goodwin and the cosy chats that
Goodwin’s successor, Stephen Hester, has
been having with Mandelson (as revealed
by The Capitalist on Friday).
But is Brown going to cash in on the
launch? In his first tentative step onto
the lecture circuit in New Delhi over the
weekend, he reportedly bagged a cool
£60,000 for his future promotional
efforts.
No word yet on whether his gig at the
LSE will earn the ex-PM anything fur-
ther, but with his speaking fee worth
considerably less than Tony’s, he might
be a little less tempted to follow Blair’s
lead in donating all his book’s proceeds
to charity.
Picture: REUTERS
DINING FOR CHARITY
A bevvy of high-profile City names showed
up at the newly opened Hakkasan Mayfair
hotel last week, for a dinner hosted by
David Bailey, Heather Kerzner, Emily
Oppenheimer and Keith Tyson in order to
promote the charity Malaria No More UK.
The guests, who included Arcadia Group
owner and government efficiency tsar Sir
Philip Green, fashion and property tycoon
Richard Caring and Freud
Communications’ Matthew Freud, were
treated to a three-course meal and a deluge
of cocktails before being urged to go out
and promote the charity’s work in their
various fields of experience. After all, char-
ity often begins at the dining table...
A troupe of City boys from one of
the UK’s biggest financial services
companies headed down to the
Real Greek on bankside last week
and they went to town on the
restaurant’s brand new menu.
They racked up the tidy sum of
£1,038 but, unlike the usual fea-
tures of this column, they were a
bit more interested in the food
than their liquid diet.
They did, however, match their
menu with a set of Greek wines,
ranging from a couple of bottles
of Silenus white to three
Mitravelas bottle, two bottles of
Santorini and a couple of the
rose Retsorini.
But beyond the wines, dinner
was a sober affair. Instead, our
diners sampled the spicy octo-
pus, Greek sausages, spicy
meatballs and indulged the
table’s collective sweet tooth
with a full complement of ice-
cream and baklava to follow.

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CITYA.M. 22 NOVEMBER 2010
Energy XX1 to
gamble on the
Gulf of Mexico
▲
OIL
BY OLIVER MICHELL
JOHN Schiller, chief executive of
Texas oil upstart Energy XXI, relishes
his reputation for taking risks.
Unconcerned by President
Obama’s drilling moratorium in the
Gulf of Mexico and BP’s woes in the
region – which slashed his company’s
share price from $22 (£13.70) to $13 –
he has ambitious expansion plans.
Schiller has announced a substan-
tial expansion in Energy XXI’s hold-
ings in the Gulf of Mexico shelf, with
purchases of properties from
ExxonMobil worth $1.01bn.
The sale by ExxonMobil places
Energy XXI at the centre of the most
audacious gamble in the Gulf of
Mexico in years.
Schiller has been expanding
Energy XXI fearlessly since it went
public in 2005 and a $550m equity
offering two weeks ago, which
released common stock at $20.75,
gives him plenty of cash to carry on
doing so.
The gamble is to snatch up as many
old shallow-water wells as possible,
then to use new technology to drill
deeper in the hunt for megafields of
natural gas.
In a characteristically bold esti-
mate, Schiller anticipates his compa-
ADVISERS
SEYMOUR PIERCE
Described as a typical Texas dealmak-
er, Energy XXI's chief executive John
Schiller likes to seal a deal personally
with as little outside help as possible,
sources close to today's ExxonMobil
deal confirmed. However, Schiller's lat-
est property grab in the Gulf of Mexico
has been guided to completion by a
number of high-flying advisers, both in
the US and the City.
Foremost among the London advisers
has been Richard Redmayne, head of
corporate broking at Energy XXI's list-
News 9
Energy XXI’s bull-
ish chief executive
John Schiller is on
the hunt for
Exxon considering
petrol station sales
megafields in the
Gulf of Mexico
An Exxon spokeswoman would not
▲
OIL
BY HARRY BANKS. comment on the report but said the
company intended to keep investing
EXXON Mobil Corp yesterday con- in the region.
firmed it was considering the sale of “In terms of North Sea assets,
its 100 petrol stations in Scotland but Exxon Mobil is a long-term investor in
declined to comment on a report it the UK and plans to remain a major
plans to sell its North Sea oil fields, investor.” a spokeswoman said.
worth some $2bn (£1bn). In September Exxon and Shell said
Its comments came after a press they planned to sell their interest in
report said the North Sea disposal the Corvette field platform in the
was on the cards. North Sea.
Winter Sale
now on!
ny’s daring move producing 100 tril-
lion cubic feet of natural gas –
enough to keep the entire US going
for four years. “What we’re seeing so
far is not making anything look
smaller,” Schiller said.
“The ExxonMobil properties are an
extraordinary fit with our existing,
oil-focused core assets, which gener-
ate some of the highest margins in
the industry.”
Even relative to its own partner,
McMoRan Exploration, Energy XXI is
a pipsqueak. But while McMoRan’s
legendary leader Jim Bob Moffett is
well into his seventies, Schiller is a
mere 51.
Reports from Houston suggest that Leeds Fly from
Jersey £
26 99
Moffett’s succession plans include a
possible merger of McMoRan and Bradford
Energy XXI – with Schiller at the one
helm. way
ANALYSIS l Energy XXI
26 $ 24.50
19 Nov
22
Inverness Newcastle
18
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov
ing broker in the UK, Seymour Pierce.
Düsseldorf Belfast
The stockbroker has been given the
task of pushing the Texas company to City
the forefront of British investors'
minds, a task that should become eas-
ier if Schiller hits megafields of natural
gas as he predicts. Redmayne is a
familiar face in big City deals. He was
closely involved with both the privati-
sation of the British Airports
Authority and raising the equity for
Eurotunnel.
In Texas, Energy XXI was advised by
up-and-coming energy boutique,
Dahlman Rose & Co, under the leader-
ship of their vice-president, Anthony
Socci. The privately owned investment
bank and natural resources specialist,
founded in 2004, has its base in New
Keeping London on the move
York but maintains a strong presence
in Houston.
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 10 News
Deloitte fails to convince
Roland Berger to merge
▲
CONSULTANCY
BY STEVE DINNEEN
PLANS to merge Roland Berger
Strategy Consultants with Deloitte
Touche Tohmatsu have fallen
through after the Munich-based firm
rejected the advances.
The two had been in advanced
talks but directors at Berger over-
whelmingly voted to remain inde-
pendent.
Talks between the two firms had
progressed so far it is believed they
had already decided upon a new chief
executive and were examining possi-
ble regulatory hurdles.
The merger talks came after rival
Roland Berger will
invest his own cash
into the firm he found-
ed to grow it as an
independent entity
Aon’s $4.9bn (£3.1bn) acquisition of
Hewitt Associates, with the manage-
ment consultancy sector continuing
to consolidate. It is understood Berger
founder Roland Berger, along with a
number of partners in the firm, has
agreed to invest around £43m in
growing the company.
Roland Berger began as a one-man
company in 1967 with a focus on mar-
keting consulting. In 2009, the com-
pany generated €616m in sales and
employed 2,000 staff worldwide.
Lord Rothermere maintains DMGT is committed to newspapers
DMGT set for
higher profit
▲
MEDIA
BY DAVID CROW
DAILY MAIL and General Trust is
expected to unveil a hike in full-year
profits when it announces prelimi-
nary results on Thursday, thanks to a
recovery in advertising revenues and
strong trading at its business-to-busi-
ness (b2b) division.
Analysts at Numis expect the firm
to book pre-tax profits up 23 per cent
at £245m for 2009-10, compared to
£201m a year earlier, with underlying
group revenues up two per cent at
£1.97bn.
Sales at its b2b arm, which
accounts for around 70 per cent of
profits, are expected to be up by
around three per cent on an underly-
ing basis, after a strong performance
at its information and events busi-
nesses.
Trade magazine publisher
Euromoney, which is 66 per cent
Time to sell regional arm
WHEN DMGT sold the loss-making
Evening Standard to Russian billion-
aire Alexander Lebedev in January
2009, finance director Peter
Williams caused a storm by saying
the firm’s love affair with newspa-
pers was all but over. It had “crossed
the Rubicon,” he declared (although
chairman Lord Rothermere soon
made it clear that Williams had
crossed the line). DMGT abandoned
plans to sell regional arm
Northcliffe in 2007, so it has none of
the emotional attachment that
made offloading the Standard so
CITYA.M. 22 NOVEMBER 2010
Picture: REX
owned by DMGT, also reported a
strong set of preliminary results last
month, with profits of £71.42m com-
pared to a pre-tax loss of £17.36m in
the previous year.
Meanwhile, the consumer division
that publishes the Daily Mail and
Metro is expected to have grown rev-
enues by one per cent, after display
advertising staged a recovery.
However, trading at the firm’s
regional Northcliffe division will like-
ly have been tougher. Rivals Johnston
Press and Trinity Mirror have both
reported lower sales of display adver-
tising on the back of the comprehen-
sive spending review.
“We view the group’s data-centric,
high margin b2b businesses as best-
in-class and believe that the Daily
Mail titles enjoy the demographic,
online reach and brand strength to
outperform peers significantly both
on and offline,” said Numis analyst
Dominic Buch.
painful; that sale was shelved after
it couldn’t find a buyer willing to
stump up £1.3bn. The division is
likely worth less now: the outlook
for regional ad sales is bleak, while
pension problems remain. But
Northcliffe, which accounts for just
five per cent of profits, is a distrac-
tion and relaxed merger rules mean
Trinity Mirror or Johnston could be
interested. It’s time to sell.
BOTTOMLINE
Analysis by David Crow
CITYA.M. 22 NOVEMBER 2010
United chief
may quit with
£4m pay-out
▲
UTILITIES
BY PHILIP WALLER
THE boss of former state-owned water
group United Utilities may quit later
this month with a golden goodbye
payout worth more than £4m, it
emerged yesterday.
It is understood group chief execu-
tive Philip Green could announce his
resignation from the water and waste
services supplier in north-west
England as early as November 24.
Green is thought likely to receive
stock and share options worth more
than £4m should he resign. No-one
from the company was yesterday
available to comment.
The company serves nearly 7m peo-
ple, 3.2m households and business
premises and more than 400 industri-
al and commercial enterprises.
Green joined the company in 2005
with the task of returning it to a pure
water and waste services company
after the previous management had
expanded it to include electricity and
support services.
News 11
Water groups
to post slower
flow of profits
UTILITIES
▲
WATER companies Severn Trent and
Pennon Group are tipped to report a
slower flow of profits due to higher
costs and pricing pressure when they
report half-year numbers this week.
Deutsche Bank expects Midlands
The group has since sold most of its water and sewage group Severn to
non-regulated operations and is post pre-tax profit tomorrow of about
expected to discontinue its “contract £159m against £188m last time, while
solutions” infrastructure manage- others predict about £153.9m.
ment business. “We expect to see lower numbers,
The announcement about Green’s with prices rebased downwards by
departure may come in the compa- one per cent from the beginning of
ny’s first half results on Wednesday, April,” Deutsche said.
in which it is tipped to post pre-tax Severn is also tipped to update
profits of about £173m, against shareholders on its dividend at the
£268m a year ago. results, with other firms in the sector
Water regulator Ofwat forced having already unveiled their policies
United to cut its bills by four per cent for the five-year regulatory period.
at the start of April, one of the tough- It is forecast to say its dividend will
est initial reductions imposed on the grow by Retail Price Index (RPI) infla-
listed water stocks, although tion plus three per cent in the four
Deutsche Bank expects growth there- years to 2015.
after as the company moves through Severn provides water and sewage
the five year regulatory period. services to more than 8m people in an
area stretching from the Bristol
FAST FACTS | UNITED UTILITIES Channel to the Humber, and from
mid-Wales to the East Midlands.
● United Utilities has: 184 reservoirs; Pennon, which owns South West
* over 42,000 km of water mains; Water and waste contractor Viridor, is
* over 43,000 km of sewers; expected on Thursday to post half-
* 100 water treatment works. year pre-tax profits of £78m versus
* 575 wastewater treatment works £97m last time and an eight per cent
United Utilities boss Philip Green may quit with a £4m golden goodbye dividend rise to 7.5p.
 12 News CITYA.M. 22 NOVEMBER 2010

US authorities will announce

string of insider dealing cases
Prosecutors and securities regula- could start before Christmas, lawyers
▲

ENFORCEMENT
BY STEVE DINNEEN
FEDERAL authorities are closing in
on a series of high profile targets as
part of a drive to purge insider trad-
ing from Wall Street.
They are understood to be on the
verge of announcing cases against
hedge fund traders, consultants and
Wall Street bankers within weeks,
according to lawyers working on the
cases.
tors are likely to file a number of
cases targeting the $1.7 trillion hedge
fund industry rather than a single
spectacular case, said the lawyers.
They are likely to reveal suspicions
of multiple, highly organised insider
trading rings suspected of reaping
tens of millions of dollars for their
members over a period of years.
The probe is said to include up to
three dozen companies.
The new round of prosecutions
said, adding that they could rival last
year’s arrest of Galleon Group hedge
fund manager Raj Rajaratnam and
nearly two-dozen others in one of the
largest insider trading cases ever
brought.
Authorities are still deciding
whether to pursue cases against sev-
eral individuals who were implicated
but never charged in the Galleon case
and another case involving a former
UBS investment banker.

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Sky news could suffer from a News Corp takeover Picture: Micha Theiner/City A.M.

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lowdown from local people on all sorts of businesses, would not pose “serious public inter-
▲

MEDIA
BY STEVE DINNEEN
whether you’re looking for the hottest curry in town, SKY News could suffer if the takeover
of its owner BSkyB by News Corp is
blocked, according to independent
directors at the broadcaster.
or a proper local’s local. It’s just one of the many In a submission to media watchdog
Ofcom, directors at Sky warned
future investment in the news chan-
changes we’ve made to Yell.com. You’ll also find videos nel could be jeopardised if the
takeover is vetoed. They argue that
blocking the £7.8bn bid could actual-
showcasing what local businesses have to offer, just the ly undermine “media plurality” – the
issue being investigated by Ofcom –
by weakening Sky News.
The directors said this would be “a
job for locksmiths in London, eateries in Edinburgh or wholly unwelcome outcome, con-
trary to the public interest,” claiming
they wanted to avoid Ofcom setting a
B&Bs in Brighton. As well as that, there’s our realistic 3D precedent that could discourage
future interest in the channel.
They also argued that Sky News
maps,* helping you find exactly what you’re looking for controls just five per cent of the TV
news audience, meaning the takeover
est consequences”.
The submission, part of the Ofcom
probe into the bid, comes after News
Corp ramped up pressure on the gov-
ernment last week. News Corp’s head
of Europe James Murdoch said News
Corp could move some of its opera-
tions abroad if the coalition tried to
stand in the way of the takeover.
News Corp is desperate to buy the 61
per cent of Sky it does not already own.
However, it has faced intense criticism
from rival media organisations, who
say the takeover could irrevocably
harm the UK media landscape by plac-
ing too much power with one firm.
James Murdoch has
warned the UK could
lose out on investment
in its media if the bid
for Sky is blocked.

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AIG Rail, started in 2005, leases
▲

INSURANCE
have to take our word for it. BAILED-OUT insurer AIG has put its
rail-car unit up for sale, though trade
buyers are complaining of being
excluded from the auction, the Wall
Street Journal reported yesterday.
The assets of AIG Rail Services have
a book value of about $660m but it
was not clear how much American
International Group was seeking for
*3D maps available in Birmingham, Leeds, London and Manchester. the business.
tank and freight cars.
The Journal also quoted the chief
executive of competitor GATX Corp as
saying his company and other poten-
tial strategic buyers have been exclud-
ed from the auction.
GATX CEO Brian Kenney told the
paper he was interested in the assets.
An AIG spokesman declined to
comment on the sale. Bank of
America is said to be advising AIG.
.com
 14 News
Barclays and
Lehman wrap
up US lawsuit
▲
BANKING
BY MARION DAKERS
LEHMAN Brothers’ lawsuit against
Barclays over its $1.75bn (£1.09bn)
purchase of the bankrupt group’s
assets draws to a close today, as
lawyers on both sides submit their
final arguments on whether Barclays
made a secret windfall on the sale.
Lehman, which filed for the
world’s biggest bankruptcy in
September 2008, is expected to claim
Barclays made $13bn from business
assets and securities added to the pur-
chase at the last minute.
Barclays will argue that the terms
of the sale were fair, and were made
clear in a letter given to both Lehman
and the New York bankruptcy judge
who approved the purchase.
Judge Peck, who presided over the
original bankruptcy hearings, must
now re-examine his ruling and decide
whether Barclays deceived Lehman
and the court. If he decides Barclays
must repay Lehman, the money
could go towards paying the hun-
dreds of billions of dollars still owed
to creditors.
Peck said in court in October that
he “never approved [Barclays’] clarifi-
cation letter,” adding: “There are over
12,000 docket entries. I do not know
everything that is contained.”
New Barclays chief executive Bob
Diamond took to the stand in June to
defend the bank, but was slammed by
the judge for his “evasive” answers,
with Peck adding: “I think that this is
a witness that needs to have the leash
held tightly.”
Peck is expected to take until
January or February to reach a deci-
sion, extending the prolonged legal
battles linked to the collapse of
Lehman Brothers.
Last week, the same judge ruled
that Bank of America must return
$500m of deposits it seized from
Lehman Brothers Holdings shortly
after the bankruptcy.
Lehman is also suing JP Morgan for
allegedly siphoning off assets during
the early stages of the bankruptcy,
which the bank denies.
Barclays chief executive Bob Diamond
Picture: Micha Theiner/City A.M.
CITYA.M. 22 NOVEMBER 2010
London reaches
20-year low for
development
CONSTRUCTION
▲
CENTRAL London’s construction level
is at a 20-year low, with just 2.7m
square feet under development.
Overall development is down by
almost 70 per cent on this time last
year, according to the latest Crane
Survey research by property agency
Drivers Jonas Deloitte.
The report says this year and next
will see the lowest level of new com-
mercial completions on record as the
hangover from recession continues.
But it predicted a flurry of new
development to start next year as the
construction slow-down leads to a rise
in rents.
The report points out the City of
London has seen no new construction
starts in the last twelve months – the
first time this has happened since the
firm published its first Crane Survey
more than 20 years ago.
However, it predicts that office
rents in London will have risen by a
more than a quarter over 2010 as new
delivery dries up, with developers
now hurriedly dusting off plans and
purchasing sites ready to start con-
struction next year.
The agency warns there is a real
possibility of the market seeing an
oversupply of space in 2014 as new
developments are completed and the
market swings to the other extreme.
CITYA.M. 22 NOVEMBER 2010
Compass chief executive Richard Cousins
Compass sees UK decline
as new markets fill gap
▲
SUPPORT SERVICES
BY JOHN DUNNE
CATERING services giant Compass
Group is expected to report a splutter-
ing performance in the UK this week,
with Australia and Brazil helping to
shore up its figures.
The company, which operates in 55
countries, is expected to show growth
of around six per cent in its Rest of
the World division, while dropping
Picture: Micha Theiner/City A.M.
by one per cent in the UK and Ireland.
Its annual results are expected on
Wednesday.
Across the rest of Europe growth is
forecast to be flat, with total revenue
across all markets expected to have
grown by three per cent.
Keith Bowman, analyst at
Hargreaves Lansdown said: “Few sur-
prises are expected. Any comments in
relation to rising food commodity
prices, a major group cost, would dis-
News 15
appoint on the downside.
“On the positive, continued
healthy cash flow could allow for a
bigger than expected rise in the divi-
dend payment. Market consensus
opinion currently denotes a strong
hold.”
Meanwhile electrical retailer
Dixons will give a trading update on
Friday, which should help to indicate
the state of consumer confidence in
the tough economic climate.
CITYA.M. 22 NOVEMBER 2010
UK regulation reaches crucial tipping point
MONDAY COMMENT
STUART FRASER
T
HE future of the European Union
(EU), and the economic prospects
of member states, continues to
be the subject of intense scruti-
ny. Even a Royal engagement has not
pushed the crisis headlines off the
front pages.
Simon and David Reuben hope to build a 42-storey tower
Japan’s Marubeni
enters bidding in
Kwik-Fit auction
▲
M&A
BY OLIVER MICHELL
TYRE firm Kwik-Fit may be snapped
up by Japanese giant Marubeni.
Marubeni, which employs 29,000
people and is one of the largest gener-
al trading companies in Japan, was
previously keen to acquire the tyre
wholesaler Micheldever. But exclusive
talks with Graphite Capital broke
down after Marubeni dropped its
offer from the agreed £200m.
Now it is being suggested the firm
will throw itself into a straight fight
with competitors Bridgestone and
Michelin for control of Kwik-Fit, in
the £650m auction launched by Kwik-
Fit’s French private equity owner PAI,
under the stewardship of Credit
European countries are not alone in
facing fiscal adjustments in the wake
of the financial crisis. Ensuring these
changes are smoothly managed is a
crucial challenge for leaders.
The City of London Corporation has
forged strong ties in Europe to ensure
the UK financial services industry is
well represented in such debates.
Indeed, I will be visiting Budapest
later this week alongside Lord Mayor
Michael Bear to flag up key issues
ahead of Hungary’s EU Presidency.
The European Parliament will short-
ly begin considering proposals on over-
the-counter (OTC) derivatives, central
counterparties and trade repositories.
This will be followed by amendments
to the Markets in Financial
Picture: Alan Davidson
Suisse.
Marubeni would be a formidable
competitor. It is one of the largest
dealers for Toyota and Mazda in
Europe, with operating interests in
chemicals, minerals and foods, as
well as being the owner of a network
of 24 car showrooms in the UK and
the distributor in Europe of
Yokohama tyres.
Marubeni holds working interests
in the North Sea and, on 25 October
2010, announced an agreement with
a subsidiary of BP to acquire working
interests in oil and gas fields in the
Gulf of Mexico for $650m.
Kwik-Fit was bought by PIA in 2005
for £800m. It then realised £215m
through sales of part of the insurance
arm of the firm.
Instruments Directive, the Capital
Requirements Directive and the
Market Abuse Directive.
As Europe accounts for more than
half of all global OTC derivatives activ-
ity, the outcome of these measures
will have a significant impact on the
EU economy.
Consistency will be crucial across
these measures, but the European
Commission also needs to work with
its US counterparts to ensure that our
competitive position is not damaged.
The need to engage hard, fast and
early with EU stakeholders was
demonstrated by the legislative
process around the Alternative
Investment Fund Managers Directive.
This began with a draft, preceded by
Reuben brothers
plan new tower
▲
PROPERTY
BY MARION DAKERS
THE BILLIONAIRE Reuben brothers’
property firm has applied for plan-
ning permission for a 42-storey tower
in the Paddington Basin, ramping up
its redevelopment plan for the area.
European Land and Property, a
joint venture between the Reubens’
firm Aldersgate and the Jarvis family
trust Pearcroft, altered its planning
application earlier this month to
include the new tower, which has
already been nicknamed “the
Cucumber”.
The 140m-tall development would
have enough space for 222 flats and a
90-room hotel on the 1 Merchant
Square site, according to documents
filed with Westminster Council.
If construction goes ahead, the
Robin Partington-designed building
will be the tallest in Westminster.
The firm has finished most of its
minimal consultation and unaccom-
panied by impact assessments. The
early proposals would have damaged
key markets and restricted access to
capital and to a wide range of invest-
ment products. We have now reached
a much more acceptable compromise
– but only after 18 months of hard
work and intensive dialogue.
Global problems require global solu-
tions. But it is not just wider reforms
that matter when it comes down to
day-to-day business. The way domestic
regulators interpret and act upon such
agreements is an equally important
factor in determining how competitive
we are in international markets.
We are approaching a tipping
point.
redevelopment work at Paddington
Basin, which is now home to the head
offices of Orange and Marks &
Spencer, as well as the Paddington
Walk apartments. Around 100,000
square feet of office space was recent-
ly put on the market, with DTZ and
Jones Lang LaSalle acting as leasing
agents.
There are also several rother esiden-
tial blocks completed near the Grand
Union Canal, which are being market-
ed by King Sturge.
European Land and Property won
planning permission for an earlier
guise of the 42-storey mixed-use devel-
opment in 2007, after months of
wrangling with Westminster Council,
which still needs to approve the new
plans.
The company has been working on
the 3.2 acre site since 2006, shortly
after government plans for a new hos-
pital fell through as development
costs spiralled.
News 17
During my recent visit to the US,
companies expressed reservations
over investing in the UK due to an
overly aggressive approach to regula-
tion. It is vital that we replace this
negative perception with a positive
one – that the UK is open to business,
and home to a stable regime for regu-
lation and taxation.
Without this, the City will find it
increasingly difficult to attract and
retain international investment in the
future.
And equally important is the new
business we risk missing out on if deci-
sion makers choose to plant or expand
operations elsewhere.
Stuart Fraser is policy chairman at the City
of London Corporation
NEWS | IN BRIEF
Delia fattens Waitrose with cake
Waitrose grocery sales rose four per
cent in the 12 weeks to October 31 - lift-
ed by swift sales of Delia Smith’s ready-
to-make Christmas cake kit. The UK
cook has in the past caused a run on
ingredients like eggs, stout and goose
fat, after championing them in her
recipes. Earlier this year Waitrose ran
out of rhubarb after it featured in
Smith’s rhubarb crumble recipe. The
cake is the latest favourite, especially as
it costs £10 while all the ingredients
would cost £26 if bought separately.
Brisa may buy back shares
Portuguese motorway operator Brisa
may buy back its own shares in the mar-
ket soon and will maintain its dividend
policy for the next five years, the compa-
ny said in a statement yesterday. In the
document, Brisa outlined some strategic
guidelines, including the "possibility of, in
the short term, acquiring treasury
shares up to the limit of 10 per cent" of
its capital. Brisa already holds own
stocks equivalent to about 4 per cent of
its capital. Some analysts had expected
a special payout after Brisa sold its
16.35 per cent stake in Brazil's CCR for
a net €1bn earlier this year. The compa-
ny said it will maintain a stable dividend
policy in line with previous years.
 18 News
Latvia is the Baltic beacon of budget busting
CNBC COMMENT
ANNA EDWARDS
I
have spent the past week in
Eastern Europe trying to learn
something about the right way to
impose fiscal austerity. The region
throws up some fascinating examples
Reed Elsevier
halts private
equity talks
▲
M&A
BY MARION DAKERS
PUBLISHING group Reed Elsevier has
broken off early-stage talks with pri-
vate equity groups Cinven and Apax
over the disposal of its events branch,
it emerged over the weekend, follow-
ing takeover rumours on Friday that
sent the shares up sharply.
Cinven and Apax are thought to
have approached the firm several
months ago about buying the Reed
Exhibitions business, which runs
almost 500 events a year including
property conference MIPIM and the
Global Gaming Expo in Las Vegas.
Shares jumped 10 per cent on
Friday following talk of an unnamed
suitor, with the shares eventually
closing 6.5p up at 535.5p.
However, a source close to the com-
pany said the talks with the private
equity groups had been at a prelimi-
nary stage, and were “almost certain-
ly over” thanks to Reed’s reluctance
to sell.
Dutch publisher Wolters Kluwer
was also named in reports as a possi-
ble bidder, after it agreed buy Reed’s
Lexis Nexis Deutschland legal data-
base earlier this month.
Reed, which publishes hundreds of
Obama heads for internal conflict over Westfield sells half stake
the heated issue of tax cut eligibility in Stratford City retailing
▲
US POLITICS
BY HARRY BANKS
PRESIDENT Barack Obama’s fellow
Democrats in the US Congress, many
upset with him for election losses, are
in disarray over what to do about tax
cuts for millions of Americans that
are set to expire on December 31.
With time running out and high
political and economic stakes, Obama
is pushing Democratic leaders to
determine if they can win an accept-
able extension of the cuts, which he
that Dublin could learn from.
The most illuminating of my desti-
nations turned out to be Latvia. Much
has been written about the Baltic
state that delivered the worst eco-
nomic performance in the EU last
year. GDP fell by 18 per cent in 2009
and employment decreased by rough-
ly 20 per cent from peak to trough.
Latvia’s boom was driven overwhelm-
ingly by consumer spending with 70
per cent of its growth from 2000 to
2008 from this source. In the wake of
the collapse of Lehman Brothers for-
eign money fled the country and the
consumer-driven boom, and housing
market, were left in tatters. The coun-
consumer and trade magazines
including New Scientist and
Computer Weekly, said last week in
an update that Exhibitions had
returned to sales growth in the sec-
ond half of the year, with an encour-
aging number of forward bookings
for next year.
The division made an adjusted
operating profit of £478.7m in the
first half of the year, a rise of four per
cent on 2009.
However, group margins were
down, and the market for biennial
conferences is expected to reach a
cyclical low in 2011.
Reed Elsevier declined to com-
ment, while spokespeople for Apax
and Cinven did not return calls for
comment yesterday.
ANALYSIS l Reed Elsevier
570 p
535.50
19 Nov
550
530
510
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov
could sign into law.
Resurgent Republicans are
demanding that all the tax cuts be
renewed, including those for wealthi-
er Americans – individuals making
more than $200,000 and families
above$250,000.
Obama favours renewing the tax
cuts only for those at or below those
level, saying the nation cannot afford
to renew them for wealthier
Americans.
Despite a number of options --
including renewing all tax cuts or
try took IMF and EU support which,
as Prime Minister Valdis Dombrovskis
told me last week, “came with
strings”. IMF style cuts were imposed,
resulting in fiscal tightening to the
tune of 14 per cent of GDP last year.
The parallels with Ireland are strik-
ing. Both countries experienced a
consumer-driven boom and bust.
Both have applied fiscal tightening
measures that have been applauded
by financial markets. And neither
country was able to devalue its cur-
rency to export it out of trouble.
Latvia decided not to devalue the
“Lat” to boost exports as so many of
its households were indebted in
HIGH TAXES DON’T SCARE BUFFETT
Billionaire Warren Buffett rebutted claims that the Obama administration is unjustly
hurting business orders with high taxes and said instead that the wealthy should pay
more in tax.”I think that people at the high end, people like myself, should be paying a
lot more in taxes. We have it better than we've ever had it," he told ABC's Christiane
Amanpour in a clip played on "This Week" yesterday.
only those for the middle class or
tying any extension to a renewal of
jobless benefits -- there is no indica-
tion a consensus is near.
“How the hell should we know
when we will figure this out?” said a
senior Senate Democratic aide. “This
is the Democratic Party,” long known
for internal struggles and diverse
views.
“It seems like no one is on the same
page,” said Chris Krueger of MF
Global, a private firm that tracks
Washington for investors.
euros. Instead of forcing many fami-
lies into bankruptcy the country
decided to protect its currency peg to
the euro. Ireland’s Eurozone member-
ship results in the same lack of cur-
rency flexibility.
The differences are also significant
though. Ireland’s plans involve spend-
ing the equivalent of 50 per cent of
GDP on bailing out its banks. Latvia
spent only 10 per cent of its GDP in
part-nationalising Parex bank. It cre-
ated a good-bank and bad-bank, just
as Ireland has done, but because
much of the consumer boom in
Latvia was driven by Scandinavian
banking giants (SEB and Nordea are
Picture: REUTERS
▲
M&A
AUSTRALIAN shopping-mall owner
Westfield Group is selling a stake in
its Stratford City development in
London to Dutch and Canadian pen-
sion funds for £871.5m, Westfield has
revealed.
The company said it had agreed to
sell a 50 per cent stake in the retail
component of the development,
which is being built next to the site of
the 2012 Olympic Games, to Dutch
pension fund APG and the Canada
CITYA.M. 22 NOVEMBER 2010
still on every street corner in Riga) it
fell to Swedish and Norwegian gov-
ernments to deal with them.
Things are looking up now for
Latvia as growth is returning, wages
are bottoming out and unemploy-
ment has stopped rising. But the
social costs of austerity have been
great. Hospitals and schools have
been closed and local journalists told
me many Latvians just left the coun-
try. Ireland may now have little say in
its fiscal fate, but a little study of the
Baltic beacon of budget busting
might be time well spent.
Anna Edwards co-anchors CNBC’s Capital
Connection and Squawk box Europe.
NEWS | IN BRIEF
Nestle alters sales policy
Nestle has said it will change its sales
recognition policy effective 1 January
2011, bringing it in line with
International Financial Reporting
Standards. Reported sales will drop by
around 15 per cent as expenses like dis-
counts and retailer promotions will be
deducted from sales, leading to a corre-
sponding increase in profit margins.
However, the change is not expected to
affect net profit or earnings per share.
Nestle said it would publish restated
2010 figures after its results for the
year to allow for comparisons to results
from 2011.
Britain could get train upgrade
Britain will replace its ageing Intercity
Express trains with high speed electric
trains, at a cost of £7.5bn, said newspa-
per reports yesterday. The department
for transport refused to comment on the
story, which appeared in the Sunday
Times, and said an announcement if nec-
essary would be made in due course.
The report named Hitachi and John
Laing as preferred bidders on contracts
for the upgrade, which could be
announced this week.
Toyota loses lawsuit challenge
Carmaker Toyota suffered a fresh blow
in its class action lawsuit at the week-
end, after a judge in the US said cus-
tomers stand to recover compensation
for the lost resale value of their cars,
regardless of whether their car had suf-
fered the notorious break fault. Toyota’s
lawyers had challenged the ruling, argu-
ing the case could involve roughly 40m
customers if left unchanged. The car-
maker insists its electronic throttle sys-
tem is glitch-free, but has acknowledged
ill-fitting floor mats and sticking gas
pedals as the root cause for breaking
problems. Both problems were
addressed earlier this year in safety
recalls encompassing 5.4m US vehicles.
Pension Plan Investment Board.
The property group will retain full
ownership of the adjacent non-retail
development sites.
Westfield said realised profit of
around £150m would be added to
future retained earnings. An unre-
alised £150m would be recognised as
development valuation gains.
The centre was scheduled to open
in the third quarter of 2011, with
around 75 per cent of the retail area
either leased or committed, Westfield
said.
CITYA.M. 22 NOVEMBER 2010
UK economic
growth rate
now trimmed
UK ECONOMICS
▲
BY JESSICA MEAD
OFFICIAL data published on
Wednesday is expected to reveal slower
economic growth in the three months
to June, after UK construction growth
was slower than previously thought.
Weaker business confidence is also
casting a shadow over the outlook for
future growth.
The UK economy was originally
seen expanding by 1.2 per cent in the
second quarter but this could be
trimmed to just one per cent follow-
ing a sharp downgrade of construc-
tion growth in this period. The Office
for National Statistics (ONS) cut its
estimates to 6.8 per cent from 9.6 per
cent quarter-on-quarter and also
revealed that the sector contracted
more than earlier reported in the first
three months of 2010.
Although the ONS is expected to
leave third-quarter quarterly growth
at a resilient 0.8 per cent, the annu-
alised growth rate could be trimmed
from the previous figure of 2.8 per
cent to 2.6 per cent, barring any other
revisions to the components of GDP.
Business investment is expected to
have recovered for a third successive
quarter in the three months to
September after spending was
slashed in 2008/09 but recent evi-
dence suggests this will not last.
China tries to curb food prices after
consumer inflation hits two-year high
GLOBAL ECONOMY
▲
BY MARION DAKERS
CHINA said yesterday it would step
up efforts to keep commodity
prices stable, in its latest attempt
to keep fast-rising inflation rates
in check.
China’s central cabinet has
asked local governments to
increase agricultural production
and keep a constant coal, oil and
gas supply in a seven-page circular.
The government has urged local
groups to ramp up vegetable-plant-
ing programmes and better man-
age grain production to ensure a
continuous supply.
NEWS | IN BRIEF
Google eyes acquisition
Google has expressed an interest in
buying online coupon provider
Groupon, according to reports at the
weekend. Google could pay more than
$3bn for the company, said the
reports, making it one of the largest
acquisitions for the internet giant. It
has bought up several firms in recent
months, while Groupon fended off a
bid from online rival Yahoo earlier in
the year. Google declined to comment
yesterday, while Groupon was unavail-
able for comment.
UK businesses have lowered expec-
tations for 2011 according to the lat-
est ICAEW/Grant Thornton UK
Business Confidence Monitor (BCM),
which suggests that economic
growth next year will be slower than
forecast with companies reluctant to
invest and back the recovery.
Business confidence has fallen to
11.9 from 21.5 since the third quarter
of 2009, with the pace of decline
accelerating.
Michael Izza, chief executive of
ICAEW, said: “The steady decline in
confidence over recent quarters
reflects ongoing uncertainty about
the UK economy over the next twelve
months. Companies are still cautious
to invest – a crucial factor in helping
growth and creating a strong recov-
ery.”
Although the BCM revealed contin-
ued improvement in companies’
financial results with business
turnover, profit and exports all
increasing in the fourth quarter,
expectations for future growth have
been revised as companies become
more pessimistic about 2011.
Expected turnover growth over the
next 12 months dropped to 3.5 per
cent in the final three months of 2010
from 4.9 per cent the previous quar-
ter while forecast gross profit growth
for the year ahead has also fallen to
3.3 per cent from 4.4 per cent.
Delivery costs on farm produce,
such as road tolls, will be banned
from 1 December in the hope the
savings filter down to retail prices.
Local governments will have the
power to set prices on daily neces-
sities and production materials if
and when the high costs become
unaffordable.
Market monitoring will
increase, to clamp down on hoard-
ing and speculation in major agri-
cultural products, the circular
added.
China has been trying to limit
excess liquidity to keep a lid on
inflation pressures, after the con-
sumer price index hit a 25-month
Deathly Hallows slays rivals
The first instalment of Harry Potter
and the Deathly Hallows made $125m
in its opening weekend in the US and
Canada, according to studio estimates,
making it the sixth most successful
opening of the year. The seventh
Potter film comfortably beat the previ-
ous best weekend debut for the fran-
chise, which was set at $102.7m by
Harry Potter and the Goblet of Fire in
November 2005. Warner Bros, which
made the film, had expected the film
to reach the $100m sales barrier.
News 19
Axiom set
for Dubai
flotation
▲
TELECOMS
The ONS said industrial production increased in the third quarter Picture: GETTY
UNITED Arab Emirates handset retail-
ANALYST VIEWS: DO YOU EXPECT REVISIONS IN er Axiom Telecom said yesterday it
expects to debut on Nasdaq Dubai in
THE GDP GROWTH RATE? early December with a market value
Interviews by Jessica Mead
of up to $1bn (£630m) after selling up
to a third of its shares to institutional
HOWARD ARCHER | IHS GLOBAL INSIGHT investors.
In what would be the first initial
“
public offering from the UAE in near-
ly two years, Axiom set the share price
I suspect that the year-on-year growth rate may be range between $0.80 and $1.15. The
trimmed to 2.7 per cent from the currently reported rate of first day of trading will likely be on or
2.8 per cent but there are currently no indications that the around 9 December.
When the retailer announced
”
third-quarter GDP growth rate of 0.8 per cent quarter-on- plans in October to list a 35 per cent
quarter will be revised down. stake on Nasdaq Dubai, it was not
decided what portion of the shares
would be allocated to retail investors
MICHAEL SAUNDERS | CITIGROUP and how much would be reserved for
“
institutional investors.
The company said, however, the
I do not anticipate any revisions at this stage. I IPO will not be available to retail
expect that the split will show consumer spending up about investors.
“The IPO is only being directed at,
0.8 per cent quarter-on-quarter with investment up 2-3 per and made available to, certain institu-
”
cent. Nominal GDP is likely to remain buoyant, probably ris- tional investors,” Axiom said in a
ing by 5-6 per cent year-on-year. statement. “It is not being made avail-
able to the general public.”
But given broader interest, one bro-
ker said he expects retail investors to
PHILIP SHAW | INVESTEC actively seek shares once they list.
“
“Retail investors want to diversify --
many are sitting on cash and are scep-
Assessing whether GDP will be revised this month is tical about entering into real estate-
a tough call, given that the ONS still judges that industrial related stocks, while the telecoms
production expanded by 0.6 per cent in the third quarter. sector has done comparatively well,
even through the financial crisis,”
”
Services were estimated to have risen 0.6 per cent. I have said Vyas Jayabhanu, head of invest-
no strong views on whether this will be revised. ments at Al Dhafra Financial Broker.
high of 4.4 per cent in the 12
months to October. Food costs con-
tribute to a third of the total index
rate, the government said.
The People’s Bank of China, the
country’s central bank, said on
Friday it would raise capital
reserve requirements by 0.5 per
cent for all Chinese banks for the
fifth time this year to control cred-
it and liquidity.
The country has been criticised
by the United States and other
nations for artificially keeping its
currency undervalued. It was
claimed that would give it a trad-
ing advantage in the global mar-
ket.
Danone to cut Japanese firm
Yoghurt-maker Danone is reportedly in
talks with Japanese brewers about
offloading some distribution opera-
tions linked to its water business in the
country, to help cut losses in a slow-
growth region. Danone said at the
weekend it was not prepared to dis-
pose of its Japanese water business,
despite speculation it was ready to sell
out. Earlier this month, reports claimed
Kirin Holdings, Asahi Breweries and
Suntory Holdings had entered talks to
take over Japanese operations.
 20 News CITYA.M. 22 NOVEMBER 2010

Tesco sales pick up overseas QR National sees second

of sales and over three-quarters of its Malaysia were up 0.5 percent follow-
biggest Australian IPO
▲

RETAIL
profits in Britain. But its overseas ing a second-quarter decline of two
BY HARRY BANKS markets are growing strongly, with percent.
TESCO, the world’s third biggest more than half of the profit growth Tesco said its cash return on invest- al investors, who took 66 per cent.

retailer, has seen a pick up in sales
growth in South Korea, its biggest
market outside Britain, as well as ris-
ing sales in China, Thailand, Malaysia
and India, it said yesterday.
The supermarket group, on the
first day of a trip to Asia with ana-
lysts, also said returns in Asia and
mainland Europe would reverse their
recent decline as economic recovery
takes hold and its assets mature, and
that it expects to open its first cash
and carry in India in May next year.
Tesco, with over 5,000 stores across
14 countries, makes about 70 per cent
achieved in the six months to August
28 coming from Asia and continental
Europe.
In presentation slides published on
its website, the group said sales at
stores open over a year rose 6.7 per-
cent in South Korea in the nine weeks
to October 31, up from 6 per cent in
the second quarter.
Like-for-like sales in China and
Thailand were up 8.3 per cent and 3.4
per cent in the same period, down
from 9.3 per cent and 4.8 per cent
growth respectively in the second
quarter, while underlying sales in
ment in Asia and mainland Europe
fell during the recession to 11.8 per
cent in 2009-10 from 13.1 per cent in
2007-8.
But it said this was back on a rising
trend.
“International returns will improve
from economic recovery in the short
term and maturity of assets in the
long term,” it said, pointing out that
returns in its leading international
businesses (Ireland, Hungary, South
Korea, Thailand) were up 14.7 per
cent, and up 16.9 per cent at stores
over four years old.
▲
FUNDRAISING
AUSTRALIAN rail freight operator QR
National became the country’s sec-
ond biggest initial public offering on
record at the weekend after selling
shares worth just over A$4bn (£2.5bn).
The float is at the heart of the
Queensland government’s plan to
raise A$15bn by selling assets, in a bid
to regain its triple A credit rating.
The Queensland government is
keeping 40 per cent of the company,
while the remaining 60 per cent has
been split between retail investors,
who took 34 per cent, and institution-
The state government’s forecast
range was between A$2.50 and A$3 a
share. It will be listed on the
Australian Securities Exchange at
noon today (Australian time), with an
allocation of A$4.05bn in shares.
The float will be the largest share-
market listing since Telstra was priva-
tised in three stages from 1997.
Treasurer Andrew Fraser denied
the government was disappointed
the price was at the lower end of its
forecast range.
He said the state government
would keep its stake for two years.

Survey: new BEST OF THE BROKERS

ANALYSIS l Xstrata
1,500 p
1,319.00
19 Nov
ANALYSIS l BHP Billiton
2,500 p 2,332.50
ANALYSIS l Taylor Wimpey
30 p

rules will hit

19 Nov 24.50
2,300 28 19 Nov
1,300
26
2,100
1,100 24
1,900

bank profits 900

23 Aug

XSTRATA
13 Sep 10 Oct 21 Oct 10 Nov

Standard & Poor’s has initiated coverage

23 Aug

BHP BILLITON
13 Sep 1 Oct 21 Oct

Nomura rates the miner “reduce” with a

10 Nov
22

23 Aug

TAYLOR WIMPEY
13 Sep 1 Oct 21 Oct

UBS rates the housebuilder “neutral” with

10 Nov

on the miner with a “buy” recommendation target price of £23. The broker examines a a 12 month target price of 29p, down from
▲

FINANCIAL SERVICES
BY PHILIP WALLER
NEW rules forcing banks to hold
more capital could permanently
depress profits and hit tax revenues
and jobs, a survey has found.
Liquidity buffers three times their
present size will increase banks’ costs
sharply and permanently reduce prof-
it margins, according to the Evolving
Bank Regulation study from business
before, in order to protect the inter-
ests of individual depositors and
avoid the risk of national bailouts.
“Banks recognise the challenges –
but the scale of regulatory reform is
daunting. Lower profits are recog-
nized as one potential outcome.”
European and US banks face the
greatest challenges in the next two
years, while banks in the Asia Pacific
region will have to deal with consid-
and a 12 month target price of £15.00. The
broker expects group earnings to hit record
levels in 2011, due to both through a £14bn
capital expenditure programme that will
increase volumes, and through rising prices
of copper and thermal coal.
possible takeover or merger with 31p following the firm’s trading update last
Woodside Petroleum, which could create week. The broker has upgraded its earn-
an oil and gas group with synergy savings ings before interest and tax forecast by 25
of almost $4bn. A spin-off listing could help per cent to £196m and cheers the recent
improve BHP’s share price of seven per debt restructuring, but does not see the
cent below its total value, Nomura says. cost of capital covered until 2013 – 14.
To appear in Best of the Brokers email your research to notes@cityam.com

The Beatles score 31 tracks in top 200

and tax consultants KPMG.
The moves will affect government
tax revenue, pension fund income
and potentially the level of employ-
ment in the financial services indus-
try, the report said.
Global chairman of KPMG’s finan-
erably less pressure, the report said.
Partner in KPMG’s financial regula-
tion practice, Giles Williams, said:
“Despite the language coming out of
the G20 around creating level playing
fields, the reality may well be differ-
ent. One thing though is for sure - Analysts predicted they could top- ing this year as the market reaches
▲

cial services practice, Jeremy
Anderson, said: “Banks have recently
returned to profitability following
two or more years of heavy losses due
to the economic crisis.
“But the signs are that regulatory
developments will introduce an era
of permanently lower profitability.
“The regulatory efforts are
designed to ensure that banking is
more stable and conservative than
banks have a major task to deal with
the changes and are already chan-
nelling considerable time and
resource into doing so.”
KPMG said the new liquidity rules
from the Basel Committee of Banking
Supervisors would force companies to
hold liquid funds in low risk, low
return assets such as government
bonds yielding very small returns,
further reducing profitability.
TECHNOLOGY
THE Beatles managed to land 31
tracks in the iTunes top 200 chart
after their first weekend on sale.
Last Thursday saw the Beatles
songs become available for down-
load for the first time after years of
fruitless negotiations between Apple
founder Steve Jobs, Beatles manage-
ment company Apple Corps and the
Beatles label EMI.
ple top selling albums by Michael maturity.
Jackson and Black Eyed Peas. Troubled EMI will be hoping sales
However, only The Beatles 1967- will provide it with a cash boost.
1970 managed to scrape into the top
ten best selling albums by last night. The highest placed
And, although 31 tracks were in
the top 200, the highest placed sin- Beatles song after one
gle was Hey Jude at number 30. weekend on sale was
Now some analysts believe The Hey Jude, written by
Beatles may have missed the “golden Paul McCartney
age” of downloads, with sales slow-

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

KPMG
KPMG has added to its Russian and eastern
European expertise with the appointment of
Bob Savic to its private client advisory practice
in London. Savic is moving over from Gibraltar,
where he joined in February. He has spent two
decades working for the “big four” financial
advisory firms in Russia, Macedonia and Serbia
as well as in Asia and Australia. He speaks
Russian, several east European languages,
Mandarin, Malay and Filipino.
Huntsworth Group finance director, replacing Tymon
Global PR firm Huntsworth has added Broadhead. He has a background in
Colin Adams to its board as group media and joins from Bloomsbury
Publishing, where has had been finance
director since 1994.
He also has three years’ experience
on the investment committee of the
creative capital fund. He will begin as
soon as possible, most likely in April
2011.
Fox-Davies Capital
Fox-Davies Capital has made a series of
senior hires, having been approved a
nominated adviser by the London
Stock Exchange. Rick Thompson has
joined the firm’s board as head of
investment banking, having been head
of corporate finance at Charles Stanley
Securities for the seven years. He has
also worked at Teather & Greenwood.
Phillip Davies has also joined Fox-
Davies as head of corporate finance,
also moving from Charles Stanely
Securities where he worked with
Thompson for seven years, having pre-
viously worked at Seymour Pierce.
In addition, the company has hired
Tim Davis from Charles Stanley
Securities, David Porter from WHI
Securities, Simon Leathers from Daniel
Stewart and Jonathan Evans from
Daniel Stewart.
Navigant Consulting
The financial advisory Navigant
Consulting has hired David Royle as
director of retail banking. He has
moved from Capgemini Consulting,
where he helped to found the finance
services sector team. Previously, he has
worked at Ernst & Young, Merrill Lynch
and Coopers & Lybrand.
HobbyCraft
UK arts retailer HobbyCraft has
announced the Simon Burke will
become chairman of the company from
December. Burke has previously
worked as chairman and CEO of
Hamleys, CEO of Virgin Entertainment
Group and MD of Virgin Retail. He has
also worked as chairman of Majestic
Wine.

To appear in CITYMOVES please email your career

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com morganmckinley.com
Over 17 years ICAP Charity Day has
raised US$119 million for charities
across the globe and changed the
lives of thousands of people.

This year on Wednesday 8th December we

look forward to our customers, staff, suppliers
and of course the charities and their patrons
working together for the big global
ICAP Charity Day.

www.icapcharityday.com

CHARITY DAY
Tsunami Orphans, Ban Talae Nok, Thailand.
Charity Day is proud to support the Annika Linden
Foundation which supports community based projects
through empowerment and education.
Charity Day funding has provided scholarships for
Thai children orphaned as a result of the Tsunami crisis.
2010
WEDNESDAY 8TH DECEMBER

© ICAP plc 2010. ICAP® and other service marks and logos are service marks of ICAP plc and/or one of its groups of companies.
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 22 News
Gaffe delays
US air tanker
deal decision
▲
DEFENCE
BY PHILIP WALLER
A DECISION on the winner of a US
deal to build new air-refuelling
tankers is facing more delays after
officials sent data to rival bidders
EADS and Boeing about each other’s
bids – sparking talk that the order
could be split between them.
US air force (USAF) officials said
they would announce a winner of the
battle to replace the military’s
tankers early next year, rather than
the planned date of December 20.
The USAF earlier this month acci-
dentally sent Boeing and European
aerospace giant EADS a limited
amount of identical data about each
other’s offer to replace Boeing KC-135
tankers, which are about 50 years old.
Both companies immediately
returned the data, but the gaffe has
prompted suggestions that the USAF
may buy aircraft from both bidders to
avoid a protest by the losing bidder.
The contract for the tankers has
already become embroiled in contro-
versy after the USAF awarded a 179-
plane deal to EADS’ North American
unit teamed with Northrop
Grumman Corp in 2008, only to have
it overturned on appeal by Boeing.
Richard Aboulafia of aerospace
consultancy Teal Group said the data
mix-up lifted the likelihood of a for-
mal protest by whichever firm loses.
“Even if this didn’t happen, it
would still be very difficult to success-
fully and conclusively award a con-
tract to one side. More than ever, it
looks like a dual source buy may be
the only way forward.”
Former Air Force Secretary Michael
Wynne has suggested buying tankers
from both teams to test them and
maintain competitive pressure.
Defence Secretary Robert Gates has
opposed a split buy, partly due to the
added cost of using two aircraft types.
The USAF said it was postponing
the selection because certain aspects
of the competition were taking
longer than expected, saying it was
unrelated to the “clerical error” that
caused the data bungle.
CITYA.M. 22 NOVEMBER 2010
Eurofighter
group in talks
with India
DEFENCE
▲
A CONSORTIUM building the
Eurofighter Typhoon jet may make
India a partner in the project in
return for a £7bn deal to supply the
jets to its air force, it has emerged.
The group including UK defence
giant BAE Systems is thought to be
ready to offer key data about the air-
craft to India to persuade it to buy 126
of the jets in a deal set to create up to
2,000 jobs in the UK.
The proposal to India is understood
to involve making Delhi a fifth part-
ner in the consortium, including pro-
viding technical sovereignty over the
jet, access to computer codes and the
ability to make the aircraft in India.
Defence secretary Liam Fox is set to
promote the multi-role Typhoon dur-
ing a visit to Delhi this week, in which
he will meet his Indian counterpart.
The Eurofighter Typhoon consor-
tium is facing rival bids to supply air-
craft to India from Russia and France,
who are respectively offering their
MiG-35 and Dassault Rafale jets.
The Eurofighter consortium also
involves Germany, Italy and Spain.
A BAE spokesman declined to give
details of any potential deal with
India, but said: “We consider our-
selves to have a pretty good track
record of working with customers
Re-fuelling tankers such as the EADS KC-45 are caught up in the row Picture: REUTERS including India.”
 Markets&Investment 23

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .314.00 –1.20 328.30 246.90 Compass . . . . . . . . . . . . . . . . . .529.00 –6.50 574.50 399.30 Kazakhmys . . . . . . . . . . . . . . . .1450.00 –20.00 1634.00 955.50 Sainsbury(J) . . . . . . . . . . . . . . . .366.80* –5.80 397.00 307.60
3i Infrastructure . . . . . . . . . . . . . 118.30 –0.10 118.50 97.00 Cookson . . . . . . . . . . . . . . . . . . .526.50 +5.00 616.00 364.80 Kesa Electricals . . . . . . . . . . . . .159.90 — 172.40 98.45 Schroders . . . . . . . . . . . . . . . . .1601.00 –1.00 1670.00 1096.00
A.B. Foods . . . . . . . . . . . . . . . .1084.00 +4.00 1113.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1437.00 –1.00 1540.00 735.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .244.70 –2.10 255.00 196.50 Schroders N/V. . . . . . . . . . . . . .1275.00 –2.00 1330.00 912.50
Aberdeen Asset Man . . . . . . . . . .179.40 +1.70 191.60 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .566.50 +7.00 573.50 401.70 Ladbrokes . . . . . . . . . . . . . . . . .129.30* –1.40 164.60 120.00 Scot. & Sthrn Energy. . . . . . . . . 1156.00 — 1206.00 1006.00
Admiral. . . . . . . . . . . . . . . . . . .1554.00 –19.00 1721.00 1003.00 Davis Service . . . . . . . . . . . . . . .401.20 –5.10 442.30 356.00 Lancashire Hldgs . . . . . . . . . . . .647.00 +13.50 650.00 416.70 Scottish Mortgage. . . . . . . . . . . .646.50* –2.50 684.00 475.00
Aegis . . . . . . . . . . . . . . . . . . . . .133.40 –1.70 137.30 103.10 Debenhams . . . . . . . . . . . . . . . . .70.45 –0.95 87.85 51.95 Land Securities . . . . . . . . . . . . . .669.50 –0.50 714.50 543.00
Afren . . . . . . . . . . . . . . . . . . . . .126.60 –0.60 135.90 77.00 Derwent London . . . . . . . . . . . .1457.00 –2.00 1633.00 1183.00 Legal & General . . . . . . . . . . . . . .97.55 +0.75 107.50 69.05 SEGRO . . . . . . . . . . . . . . . . . . . .291.80 –5.10 378.80 244.00
African Barr Gold . . . . . . . . . . . .542.00 +7.00 685.00 520.50 Dexion Absolute . . . . . . . . . . . . .138.60 –0.90 148.00 131.20 Lloyds Banking Gp . . . . . . . . . . . .66.72 –1.07 79.15 45.30 Serco . . . . . . . . . . . . . . . . . . . . .556.00 –0.50 656.50 491.20
Aggreko . . . . . . . . . . . . . . . . . .1515.00 –21.00 1698.00 727.50 Diageo . . . . . . . . . . . . . . . . . . . 1189.00 –4.00 1240.00 988.00 Logica . . . . . . . . . . . . . . . . . . . .123.10 –0.70 149.10 100.80 Severn Trent . . . . . . . . . . . . . . .1439.00 +4.00 1468.00 981.50
Alliance Trust . . . . . . . . . . . . . . .353.30 –2.20 363.00 292.80 Dixons Retail . . . . . . . . . . . . . . . .25.17 –0.63 39.50 23.07 London Stk Exchange . . . . . . . . .757.00 +9.50 869.00 540.50 Shaftesbury . . . . . . . . . . . . . . . .437.80 +2.00 465.00 348.00
AMEC . . . . . . . . . . . . . . . . . . . . 1152.00 –2.00 1163.00 728.00 Domino’s Pizza . . . . . . . . . . . . . .515.50 –3.50 535.50 278.20 Lonmin . . . . . . . . . . . . . . . . . . .1780.00 +5.00 2198.00 1344.00 Shire. . . . . . . . . . . . . . . . . . . . .1541.00 –2.00 1547.00 1117.00
Amlin . . . . . . . . . . . . . . . . . . . . .381.60 –1.60 437.60 357.30 Drax . . . . . . . . . . . . . . . . . . . . . .370.60 –2.60 452.90 321.50 Man . . . . . . . . . . . . . . . . . . . . . .295.10 +10.90 361.90 199.60 SIG . . . . . . . . . . . . . . . . . . . . . . .121.50 +2.20 142.10 89.55
Anglo American . . . . . . . . . . . .2939.00 –19.00 3069.00 2210.00 Dunelm . . . . . . . . . . . . . . . . . . . .495.20 –2.50 521.00 319.40 Marks & Spencer. . . . . . . . . . . . .380.60* –9.60 431.40 321.90 Smith & Nephew . . . . . . . . . . . . .587.00 –5.00 700.50 532.00
Antofagasta . . . . . . . . . . . . . . .1377.00 –18.00 1482.00 755.50 Easyjet . . . . . . . . . . . . . . . . . . . .439.80 –10.20 499.90 339.80 Meggitt . . . . . . . . . . . . . . . . . . . .336.70 +12.80 338.30 234.50 Smith(Ds) . . . . . . . . . . . . . . . . . .183.10 +0.10 185.90 103.00
Aquarius Platinum . . . . . . . . . . .339.00 –12.40 490.00 211.50 Edinburgh Inv Tst . . . . . . . . . . . .438.00* –5.00 466.80 345.50 Melrose . . . . . . . . . . . . . . . . . . .292.30 –11.90 306.80 160.00 Smiths . . . . . . . . . . . . . . . . . . . 1145.00* –9.00 1297.00 930.00
ARM Holdings . . . . . . . . . . . . . . .384.90 +14.30 419.50 150.60 Electrocomponents . . . . . . . . . . .269.50 +7.40 269.70 159.50 Mercantile IT . . . . . . . . . . . . . . .1002.00 –5.00 1029.00 822.50 SOCO Intl . . . . . . . . . . . . . . . . . .349.50 +0.80 510.00 287.40
Ashmore . . . . . . . . . . . . . . . . . . .359.70* –1.90 400.50 215.00 EnQuest . . . . . . . . . . . . . . . . . . .131.00 –1.00 138.50 87.35 Michael Page Intl. . . . . . . . . . . . .479.00 –4.20 507.50 326.00 Spectris . . . . . . . . . . . . . . . . . .1221.00 +19.00 1234.00 653.00
Ashtead . . . . . . . . . . . . . . . . . . .128.00 –0.80 135.60 61.25 Essar Energy . . . . . . . . . . . . . . .518.50 +12.00 566.50 358.50 Micro Focus . . . . . . . . . . . . . . . .343.40 +19.50 550.00 272.20
Astrazeneca . . . . . . . . . . . . . . .3058.00 –4.50 3389.50 2687.00 Eurasian Nat Res . . . . . . . . . . . .910.00 –17.00 1276.00 801.00 Millen & Copthorne . . . . . . . . . . .533.00 +0.50 585.00 329.20 Spirax-Sarco Eng . . . . . . . . . . .1760.00 +14.00 1888.00 1060.00
Atkins(Ws) . . . . . . . . . . . . . . . . .738.00 –1.00 801.00 549.50 Euromoney Inst Inv . . . . . . . . . . .705.00* +30.00 714.00 383.00 Misys . . . . . . . . . . . . . . . . . . . . .293.10 –2.30 300.00 196.60 Spirent Comms . . . . . . . . . . . . . .148.90 — 158.30 90.45
Autonomy Corp . . . . . . . . . . . .1416.00 +17.00 2012.00 1319.00 Experian . . . . . . . . . . . . . . . . . . .742.50 –2.00 763.50 559.00 Mitchells & Butlers . . . . . . . . . . .356.00 +8.70 357.10 242.50 Sports Direct Intl . . . . . . . . . . . . .128.50 –2.10 154.30 89.85
Aveva . . . . . . . . . . . . . . . . . . . .1562.00 +36.00 1572.00 930.00 Ferrexpo . . . . . . . . . . . . . . . . . . .368.90 –8.00 401.60 177.50 MITIE . . . . . . . . . . . . . . . . . . . . .201.00 +3.00 245.90 187.60 SSL Intl . . . . . . . . . . . . . . . . . . . 1163.00 –1.00 1190.00 660.50
Aviva . . . . . . . . . . . . . . . . . . . . .399.00 –1.90 428.70 290.20 FirstGroup . . . . . . . . . . . . . . . . .381.50 +1.60 428.40 331.20 Mondi . . . . . . . . . . . . . . . . . . . . .494.80 –1.20 562.00 304.70 St James’s Place . . . . . . . . . . . . .254.40 +2.60 298.00 203.40
Babcock International . . . . . . . . .519.00 –11.00 645.50 489.00 Foreign & Col Inv Tst. . . . . . . . . .294.20 –0.50 300.00 250.00 Monks Inv Tst . . . . . . . . . . . . . . .337.40 –1.20 349.70 265.00 Stagecoach. . . . . . . . . . . . . . . . .204.10 –1.10 226.10 144.10
BAE Systems . . . . . . . . . . . . . . .349.70* –3.00 389.90 288.10 Fresnillo . . . . . . . . . . . . . . . . . .1408.00 –6.00 1480.00 647.00 Morgan Crucible . . . . . . . . . . . . .244.00 +1.40 254.90 142.90 Standard Chartered . . . . . . . . . .1803.00 –49.00 1975.00 1316.50
Balfour Beatty . . . . . . . . . . . . . . .279.00* –0.30 304.80 228.60 G4S . . . . . . . . . . . . . . . . . . . . . .249.20 –0.40 285.70 238.70 Morrison Wm . . . . . . . . . . . . . . .274.50 –5.50 307.10 255.00 Standard Life . . . . . . . . . . . . . . .222.90* –0.90 238.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .274.20* –3.75 394.25 253.40 Genesis Emerging Mkts Fd . . . . .521.00 — 542.50 383.00 Murray Intl Tst . . . . . . . . . . . . . . .904.50 –1.50 938.50 720.00 SuperGrp . . . . . . . . . . . . . . . . .1475.00 –3.00 1488.00 499.00
Barratt Development . . . . . . . . . . .74.95 –0.70 145.00 72.15 GKN . . . . . . . . . . . . . . . . . . . . . .193.70 +2.10 194.40 100.40 National Express. . . . . . . . . . . . .241.80 –0.20 261.30 164.80 TalkTalk . . . . . . . . . . . . . . . . . . .151.50 +2.10 154.50 106.60
BBA Aviation . . . . . . . . . . . . . . .197.80 +1.00 220.00 145.90 GlaxoSmithKline . . . . . . . . . . . .1251.50* –6.00 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .578.50 –9.00 607.65 474.80 Talvivaara Mining . . . . . . . . . . . .539.00 –6.00 597.00 341.40
Berkeley . . . . . . . . . . . . . . . . . . .805.50 +4.50 917.50 735.00 Great Portland Estates . . . . . . . .338.00* +5.90 368.60 265.40 Next . . . . . . . . . . . . . . . . . . . . .2071.00 –12.00 2361.00 1816.00 Tate & Lyle . . . . . . . . . . . . . . . . .531.50 +5.50 534.50 388.00
BG . . . . . . . . . . . . . . . . . . . . . .1222.00 –10.00 1302.50 966.90 Greene King . . . . . . . . . . . . . . . .451.00 +4.30 484.00 372.50 Northumbrian Water . . . . . . . . . .346.70 –2.30 364.00 240.50
BHP Billiton . . . . . . . . . . . . . . .2332.50 –32.50 2500.00 1678.00 Halfords . . . . . . . . . . . . . . . . . . .428.00 +1.40 562.50 370.10 Ocado Grp . . . . . . . . . . . . . . . . .139.00 –0.40 169.00 120.90 Taylor Wimpey . . . . . . . . . . . . . . .24.50 –0.84 46.34 22.12
BlackRock Mining . . . . . . . . . . . .708.00 –18.00 737.50 490.00 Halma . . . . . . . . . . . . . . . . . . . . .338.30 +4.10 345.50 221.80 Old Mutual . . . . . . . . . . . . . . . . .127.80* –0.40 146.90 95.30 Telecity . . . . . . . . . . . . . . . . . . . .448.00 +3.00 546.00 323.50
BlueBay . . . . . . . . . . . . . . . . . . .482.00* +0.40 495.00 251.00 Hammerson . . . . . . . . . . . . . . . .403.80 –7.30 449.70 332.20 Partygaming . . . . . . . . . . . . . . . .235.40 +3.20 339.70 205.80 Templeton Emrg Mkts . . . . . . . . .645.50 –6.50 688.00 470.00
Bluecrest Allblue GBP . . . . . . . . .173.50 –0.50 174.50 151.90 Hargreaves Lansdown . . . . . . . .493.70 +3.50 502.50 259.40 Pearson . . . . . . . . . . . . . . . . . . .930.50 –7.00 1069.00 812.00 Tesco . . . . . . . . . . . . . . . . . . . . .426.65* –1.65 454.90 368.40
Booker . . . . . . . . . . . . . . . . . . . . .55.60* +0.20 56.00 37.50 Hays . . . . . . . . . . . . . . . . . . . . . .109.10* –0.40 125.30 82.50 Pennon . . . . . . . . . . . . . . . . . . . .628.00 +0.50 644.00 472.90 Thomas Cook . . . . . . . . . . . . . . .188.60 +0.60 277.20 167.50
BP . . . . . . . . . . . . . . . . . . . . . . .435.85 –2.40 658.20 296.00 Henderson . . . . . . . . . . . . . . . . .127.40 –0.40 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .353.00* –4.30 520.00 335.90 Travis Perkins . . . . . . . . . . . . . . .852.50 — 915.00 647.50
Brit Insurance . . . . . . . . . . . . . .1037.00 –1.00 1052.00 709.00 Heritage Oil. . . . . . . . . . . . . . . . .385.60 +18.60 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1481.00 –19.00 1545.00 900.00 TUI Travel . . . . . . . . . . . . . . . . . .200.80 +0.40 313.90 189.20
British Airways . . . . . . . . . . . . . .270.40 –2.50 290.00 180.20 Hikma Pharma . . . . . . . . . . . . . .779.00 — 813.00 480.00 Petropavlovsk . . . . . . . . . . . . . .1050.00 –12.00 1370.00 834.00 Tullett Prebon . . . . . . . . . . . . . . .354.00* –2.60 427.00 261.20
British Amer. Tob . . . . . . . . . . .2427.50 +25.00 2490.50 1832.00 Hiscox . . . . . . . . . . . . . . . . . . . .351.60 –2.00 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .675.00 +3.50 775.00 550.50 Tullow Oil . . . . . . . . . . . . . . . . .1206.00 –7.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .482.00 — 497.00 338.50 Hochschild Mining . . . . . . . . . . .572.00 +6.50 580.50 220.00 Premier Farnell . . . . . . . . . . . . . .296.70 +1.70 300.00 150.80 UK Commercial Prop. . . . . . . . . . .76.50* –0.50 84.90 71.00
British Land . . . . . . . . . . . . . . . .496.30 +0.90 525.00 416.00 Home Retail . . . . . . . . . . . . . . . .206.70* –3.70 320.10 201.70 Premier Oil . . . . . . . . . . . . . . . .1890.00 +5.00 2032.00 984.00 Ultra Electronics . . . . . . . . . . . .1610.00 +22.00 1903.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .498.40 +10.50 518.00 366.10 Homeserve . . . . . . . . . . . . . . . . .430.50 +0.50 502.00 405.40 Provident Financial . . . . . . . . . . .757.00* +7.00 983.50 725.50 Unilever . . . . . . . . . . . . . . . . . .1884.00* +7.00 2024.00 1662.00
Brown(N.) . . . . . . . . . . . . . . . . . .285.00 +2.00 308.00 204.80 HSBC Hldgs . . . . . . . . . . . . . . . .657.50* –9.00 752.00 595.20 Prudential . . . . . . . . . . . . . . . . . .614.50 –3.50 665.00 475.70
BSkyB . . . . . . . . . . . . . . . . . . . .726.00 — 737.00 521.00 Hunting . . . . . . . . . . . . . . . . . . .636.50* +0.50 663.50 429.10 PZ Cussons . . . . . . . . . . . . . . . .382.50 –2.70 406.80 231.70 United Utilities . . . . . . . . . . . . . .628.00 +2.00 634.50 470.00
BT . . . . . . . . . . . . . . . . . . . . . . .165.00 +0.20 170.10 108.40 ICAP . . . . . . . . . . . . . . . . . . . . . .475.00 –1.60 501.50 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . . 112.30 –0.20 179.10 96.00 Utd Business Media . . . . . . . . . .642.50 –2.50 692.00 408.30
Bunzl . . . . . . . . . . . . . . . . . . . . .721.00* –2.00 784.50 614.00 IG . . . . . . . . . . . . . . . . . . . . . . . .502.00 –5.00 560.00 312.60 Randgold Resources. . . . . . . . .6025.00 –20.00 6755.00 4126.00 Vedanta Resources . . . . . . . . . .2208.00 –11.00 2967.00 1795.00
Burberry . . . . . . . . . . . . . . . . . .1033.00 +7.00 1065.00 555.50 Imagination Tech Gp . . . . . . . . . .332.00 +14.70 445.00 200.00 Reckitt Benckiser . . . . . . . . . . .3590.00 +49.00 3667.00 3019.00 Victrex . . . . . . . . . . . . . . . . . . .1240.00 –1.00 1355.00 753.00
Cable & Wire Comms . . . . . . . . . .47.03* –1.02 150.00 46.51 IMI . . . . . . . . . . . . . . . . . . . . . . .849.00 –7.00 860.00 483.10 Reed Elsevier . . . . . . . . . . . . . . .535.50 +6.50 566.00 454.60 Vodafone . . . . . . . . . . . . . . . . . .167.75* –0.35 179.90 126.50
Cable & Wire Wwide . . . . . . . . . . .66.30 –0.40 94.80 60.05 Imperial Tobacco. . . . . . . . . . . .2013.00 +23.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .77.50 –2.70 125.50 64.05 Weir . . . . . . . . . . . . . . . . . . . . .1733.00 +8.00 1740.00 660.00
Cairn Energy. . . . . . . . . . . . . . . .373.10 –0.60 497.60 306.80 Inchcape. . . . . . . . . . . . . . . . . . .340.00 –1.10 358.00 235.00 Renishaw . . . . . . . . . . . . . . . . . 1172.00 –6.00 1250.00 479.00 Wellstream Hldgs . . . . . . . . . . . .739.00 –11.00 810.00 429.70
Caledonia Invs . . . . . . . . . . . . .1763.00 –20.00 1833.00 1496.00 Informa . . . . . . . . . . . . . . . . . . . .417.30 –3.40 450.50 263.30 Rentokil Initial . . . . . . . . . . . . . . . .93.90 +0.10 140.20 89.40 WH Smith . . . . . . . . . . . . . . . . . .475.00 +6.90 551.00 392.20
Capita . . . . . . . . . . . . . . . . . . . . .677.00 –13.00 829.50 655.00 Inmarsat . . . . . . . . . . . . . . . . . . .691.00 +3.00 831.00 603.50 Resolution . . . . . . . . . . . . . . . . .237.00 –3.50 280.50 220.10 Whitbread . . . . . . . . . . . . . . . . .1709.00* –6.00 1807.00 1260.00
Capital & Counties . . . . . . . . . . .144.90 –0.90 159.00 99.60 Intercontl Hotels . . . . . . . . . . . . 1141.00 +2.00 1244.00 803.00 Rexam . . . . . . . . . . . . . . . . . . . .314.60 –3.70 348.80 271.40 William Hill . . . . . . . . . . . . . . . . .156.60* –1.70 217.80 156.30
Capital Shopping Centres . . . . . .365.70 –6.30 523.50 300.10 Intermediate Capital . . . . . . . . . .337.10 +1.60 352.80 233.50 Rightmove . . . . . . . . . . . . . . . . .762.50 –7.50 830.00 456.90 Witan Inv Tst . . . . . . . . . . . . . . . .480.00 –1.50 492.00 397.30
Carillion . . . . . . . . . . . . . . . . . . .344.60 +0.20 361.90 272.00 Intertek . . . . . . . . . . . . . . . . . . .1822.00* –6.00 1964.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .4230.00 –51.50 4477.50 2751.00
Carnival . . . . . . . . . . . . . . . . . .2621.00* –11.00 2937.00 1963.00 Intl Personal Fin . . . . . . . . . . . . .314.80 — 340.90 181.40 RIT Capital Partners . . . . . . . . . 1187.00 –8.00 1215.00 940.00 Wolseley . . . . . . . . . . . . . . . . . .1754.00 –16.00 1837.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .344.70 +0.70 394.60 303.20 Intl Power . . . . . . . . . . . . . . . . . .436.80 +8.50 438.10 268.70 Rolls Royce . . . . . . . . . . . . . . . .592.00* –11.50 661.50 466.10 Wood Group (John). . . . . . . . . . .478.80 –0.20 492.60 279.60
Centamin Egypt . . . . . . . . . . . . .185.10 +0.30 202.80 103.50 Invensys . . . . . . . . . . . . . . . . . . .335.00* –3.70 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1639.00 –21.00 1906.00 1101.00 WPP . . . . . . . . . . . . . . . . . . . . . .741.50 +1.50 758.50 562.50
Centrica . . . . . . . . . . . . . . . . . . .329.90 –1.10 347.00 252.00 Investec . . . . . . . . . . . . . . . . . . .509.00 +2.00 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .41.77 –0.24 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . .1319.00 –19.50 1462.50 832.50
Charter Intl . . . . . . . . . . . . . . . . .707.00 –4.50 855.50 563.50 ITV . . . . . . . . . . . . . . . . . . . . . . . .68.30 +0.05 73.00 46.77 Royal Dutch Shell A . . . . . . . . .2030.50* –11.50 2106.50 1621.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2866.00 –4.00 3711.00 2551.00 Jardine Lloyd Thompson. . . . . . .578.00 –4.00 604.50 420.70 Royal Dutch Shell B . . . . . . . . .2000.50* –14.00 2071.00 1550.00
Close Bros . . . . . . . . . . . . . . . . .808.50* +2.50 834.00 657.00 Johnson Matthey . . . . . . . . . . .1895.00 –2.00 1999.00 1435.00 RSA Insurance . . . . . . . . . . . . . .126.50* –0.40 137.40 114.10 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .205.00 –2.90 278.60 199.20 JPMorgan Emerg Mkts . . . . . . . .599.00 –3.50 618.00 448.00 SABMiller . . . . . . . . . . . . . . . . . 2114.50 –42.50 2165.50 1638.00
COLT Group . . . . . . . . . . . . . . . .122.00 +1.00 144.20 107.70 Jupiter Fnd Mgmt . . . . . . . . . . . .284.30 –2.20 310.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .261.00 –8.20 286.80 208.20 www.interactivedata.com

Sovereign debt worries a drag on stock markets

stock markets around the world. the early part of the week due to the ANALYSIS l FTSE
MARK ONTHE However a late rally in the US on
Friday should translate into a positive
Thanksgiving holiday on Thursday
and early closing of markets on
6,000
5,732.83
19 Nov

MARKETS open for European stocks this morn-

ing.
GFT expects the FTSE 100 index to
Friday. On Tuesday and Wednesday
the US will release third quarter GDP,
home sales, durable goods and per-
5,800

5,600

start 20 points higher, at 5,753, with sonal income data, along with the 5,400
similar gains for the German DAX 30, minutes from November’s FOMC
up 18 points to 6862, and the French meeting. 5,200
CAC 40, up 9 points to 3869. The pick of the corporate news this
In the coming days, the market will week will come later today with an 5,000
22 Aug 13 Sep 1 Oct 21 Oct 10 Nov
be looking for clarification of the pro- earnings update from Hewlett-
posed bailout for Ireland’s banking Packard. ANALYSIS l DAX
crisis. Mark Outten is senior dealer for GFT 7,000 6,843.55
It is hoped that these measures will Global Markets UK Ltd
6,800
19 Nov
dampen speculation about Portugal
MARK OUTEN and Spain.
The economic calendar for the
6,600

6,400
week ahead is light for the UK. In

L
ast week, China’s efforts to slow Germany the Ifo index is released on 6,200
rising inflation and the ongoing Wednesday. 6,000
concerns about European sover- Meanwhile in the US, all major
eign debt, both placed a drag on data releases has been condensed into 23 Aug 10 Sep 30 Sep 22 Oct 9 Nov

THE WALL STREET WEEK AHEAD

E
xpectations about Black Friday, source of worry. after a week of sharp losses and cyclical bull market to resume, so a ment is seen as one of the biggest
when Americans traditionally Even though light volume will advances. lot rests on that,” said Chris Burba, drags on the US economy,
get serious about holiday shop- define trade during the holiday- Further gains would resume an short-term market technician at The day after Thanksgiving tradi-
ping, could sway stocks this shortened week of US Thanksgiving uptrend that began at the end of the Standard & Poor’s in New York. tionally marks the start of the US hol-
week if it looks like the economy will Day on Thursday, investors will summer, with the Standard & Poor’s Retailers have been optimistic in iday shopping season and is called
get a pop from consumer spending. watch to see if retail sales appear 500 index up 14 per cent since their forecasts for holiday sales, and Black Friday because retailers make
The outcome of talks to shape a strong enough to give the market a August 31. The market was little investors will want to see evidence to enough sales to get their accounts
bailout for Ireland could also move Santa Claus rally. changed lastweek and suffered losses support those forecasts as worries into black ink.
stocks, analysts said, but they cau- The lighter-than-average volume the week before. about consumer spending weigh on Shoppers are expected to flood
tioned that other highly indebted expected next week could lead to “Bullish sentiment toward holiday the economic outlook. stores in search of bargains while
Eurozone countries could still be a exaggerated moves in the market sales is the most likely catalyst for the At a rate of 9.6 per cent, unemploy- retailers fight for sales.
 24 Investment | Spread Betting
How to defuse
a time bomb:
China worries
about liquidity
High inflation risks
setting off bubbles in
the Chinese economy,
says Daniel Knowles
I
F ANYONE had needed more proof of
the extent of global economic imbal-
ance, then last week’s inflation fig-
ures ought to have been enough.
Despite unprecedented monetary ease,
America’s inflation rate is running at 0.6
per cent, the lowest level in 53 years. In
China, however, money is abundant and
inflation is running at 4.4 per cent. That is
causing deep unease in the Chinese
Communist Party, but it might be a boon
for spread betters. The important ques-
tion, as ever, is whether to go short or
long.
Certainly the momentum has mostly
been downwards recently. Fears about
monetary tightening have driven equity
prices down, and the FTSE Xinhau 50 has
fallen by 10 per cent over the last two
weeks. The People’s Bank of China (PBoC)
raised its reserve requirements on Friday
in an attempt to suck liquidity out of the
system, while the government has threat-
ened to intervene directly in some mar-
kets to lower prices. The government has
also tried to crack down on state banks
deemed to be lending too much – official-
ly there is a 7.5 trillion yuan (£706bn)
quota for lending. With further tighten-
ing expected, traders might be well
advised to go short on Chinese stocks.
Conveniently, IG Markets now offers
spread betting on the Xinhua 50.
Unfortunately, as Dylan Grice of Societe
Generale observes, “the Chinese stock
market is crazier than most”, so traders
AMPLIFY
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CD03UK.115.080310
CITYA.M. 22 NOVEMBER 2010
also need to be careful. One reason why
the Chinese government has been so keen
to interfere with its banks is that there is
an awful lot of liquidity in China at the
moment. As a result, speculative bubbles
have grown up in assets from property to
caterpillar fungus – an obscure Chinese
medicine that now costs as much as gold.
If inflation persists then Chinese savers
may seek out more profitable speculative
investments, inflating bubbles further.
BUBBLING LIQUIDITY
Grice argues that the Chinese government
is struggling to contain Chinese specula-
tors and that they may be forced to engi-
neer a slowdown, “in which case a hard
landing shouldn’t be beyond the realms of
imagination”. But before that happens,
Chinese asset prices could well increase
dramatically, so traders need to make sure
they are not caught out. Much depends on
how effective monetary tightening is seen
to be – with rising food prices a global phe-
nomenon, many analysts fear that infla-
tion will persist.
Mark Williams, senior China economist
at Capital Economics, is not one of them
however. Williams argues that much of the
recent increase in food prices was the
result of a temporary supply shock, and
that inflation ought to recede within a few Chinese prices going ANALYSIS l China’s credit inflation
months. He says there is “no strong evi- up - will inflation
Trillions of Chinese Renminbi
dence of bubbles” and that “while there is continue? 12
the potential for speculative spending to
take off”, it isn’t happening yet. According Picture: GETTY 10
to Williams, the Chinese government is
succeeding in suppressing speculation, 8
and China ought to keep growing. As he
says, investors “shouldn’t panic”. 6
But they should perhaps step back a lit-
4
tle. Chinese liquidity is rather like an unex-
ploded bomb. Either the PBoC will be able
2
to slowly defuse it, or it will go off. Spread
betters need to be careful not to get caught Source: SG Cross Asset Research. POBC
in the blast if that happens. 2001 2002 2003 2004 2005 2006 2007 2008 2009
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Get started now at gftuk.com.
CITYA.M. 22
18 OCTOBER
NOVEMBER2010
2010
TECHNICAL
ANALYSIS
GURU
SANDY
JADEJA
CHIEF TECHNICAL
ANALYST
sandy.jadeja@cityindex.co.uk
Q.
Do you trade based on psychologi-
cal numbers?
A.
One of the most common questions
asked at our training seminars is
“What are the key levels on a chart?”
There are several key levels to observe when
looking for an opportunity to trade from.
One of the most common are known as
psychological price levels. For example, when
you are filling your car up with petrol, you
often aim to round off the amount to £10 or
£20, say. These round numbers are also
apparent when it comes to trading financial
Rolls Royce better
value for traders
But make the most of near term
turbulence, says Jessica Mead
T
HANKS to a combination of superior
design, pilot skill and more than a
pinch of good luck that engine frag-
ments did not hit more crucial parts
of the jumbo jet, Qantas flight QF32
touched down safely a little more than a
fortnight ago, leaving its passengers shak-
en but fundamentally unscathed.
Much the same can be said of the
engine’s manufacturer Rolls Royce. On 4
November, the day the Trent 900 engine
failed, the London-listed firm’s share price
plummeted more than 60 points, a level
from which it has so far failed to stage a
sustained recovery.
The incident rattled investors but Rolls
Royce has remained fundamentally strong.
Last Friday Goldman Sachs reiterated its
conviction buy rating and its price target
of 810p – an upside of 37 per cent. They
pointed to the prospect of strong sales
growth, the potential for margin expan-
sion and its capacity to generate cash.
For a start, the group’s management
ANALYSIS l FTSE 100 (Daily)
markets. If you observe the charts, you will
notice that markets behave in a certain way
around round numbers.
6,000
Q.
What happens at these key levels? 5,800
5,600
A.
As an exercise take a look at the
FTSE 100 index chart on the right.
5,400
Notice what happened when we
reached the recent high at 5,900 and also
notice the reaction at the 5,600 level. 5,200
You will quite often see that markets
behave in a certain way as they approach
5,000
the round number levels. This is what can be
referred to as a key psychological level.
For example if the FTSE index has been 4,800
trading at 5,856 and it is heading higher,
then we can assume that it will try to aim
for the next level at 5,900. This is then called
a resistance level, which the index may
struggle to break past.
Q.
Can I trade these psychological
levels as a strategy?
A.
Depending on the type of reaction
that takes place at the levels, you
can certainly create a trading strate-
gy based on this theory.
ANALYSIS l Rolls-Royce Group
660 p
620
592.00
19 Nov
580
23 Aug 13 Sep 1 Oct 21 Oct 10 Nov
Still a badge of quality
Picture: REUTERS
have been able to contain the crisis quickly
and reassure analysts, easing concerns
about long-term reputational damage.
Secondly, Rolls Royce have continued to
win contracts despite the Trent 900 failure,
such as a $1.2bn order from China Eastern
Airlines for Trent 700 engines.
Finally, the marine division is becoming
an increasingly important part of the
group and now accounts for around 25 per
cent of total revenues and 30 per cent of
earnings before interest and tax (Ebit).
Yet in the near-term, spread betters
should make the most of the likely turbu-
lence in Rolls Royce’s stock. Not only is the
investigation and remedial work still ongo-
ing, warns Charles Stanley’s aerospace and
defence analyst Tina Cook, but the 2010
impact will be around £50m according to
the company itself. There are also concerns
among some analysts that the financial
impact could continue into 2011 and
beyond.
For those looking slightly more long-
term, they should remember that prior to
this incident “Rolls Royce was priced
almost to perfection and trading at a pre-
mium,” says Cook. Today’s lower share
price provides an excellent opportunity to
buy into a top quality company.
Investment | Spread Betting 25
5,900
5,650
5,400
5,100
21 Jun 6 Jul 19 Jul 2 Aug 16 Aug 30 Aug 20 Sep 11 Oct 31 Oct 16 Nov
Personally I like to trade patterns and These support levels can also be based on
there are several patterns that as a trader the psychological numbers mentioned earli-
you should learn. One of the popular types of er. Currently the FTSE 100 is flirting with
charts is a candlestick charts. the 5,650 level. Keeping an eye on round
Within this type of charting method one numbers can be valuable and it is a simple
can look for specific price reversal patterns. method to learn. Let’s see how the index
You can also look to see if the market fails to reacts in this week’s trading around key lev-
break above the key level and then goes on els.
to break below a recent low. You can then
assume a move to the downside towards Learn more about technical analysis with
support levels. Sandy at his free City Index seminars.
THE TIPSTER hold the position until at least
Ca$1.0300. Spread Co offers a
spread of Ca$1.0192-Ca$1.0196.
TRADERS GET IN Severn Trent shares have fall-
en away slightly since setting
A FESTIVE SPIRIT year highs of 1,468p on 11
November and the firm ended
last week trading around the
1,430p level. Tomorrow’s update
is expected to show a fall in prof-
T
HE run-up to Christmas its for the firm. This, combined
truly gets underway this with some of the debt the com-
week with US Thanksgiving pany has been shouldering, has
on Thursday. Historically prompted a few spread betters
this has given equity markets a to short the stock. Spreadex has
boost as a result of improved sen- a rolling Severn Trent spread of
timent and as the festive senti- 1434.5p – 1440.5p.
ment rubs off on investors. This United Utilities follow on
could prompt a rally in the Dow. Wednesday and also set a year
Capital Spreads quotes 11,165- high – of 634.5p – on 11
11,167 for the index. November. That followed the sale
US dollar strength has helped of its non-regulated business for
our US dollar-Canadian dollar around £600m – beating ana-
buy recommendation at lysts’ expectations of between
Ca$1.0010. The pair has since £450m and £500m. That
taken out the first target of sparked a positive feeling from
Ca$1.0200 on its way to a high spread betters but shares have
of Ca$1.0258 before pulling back
to support around Ca$1.0165 last
week. It might be wise to pull
stop-losses up to Ca$1.0140, but
fallen since to close on Friday at
627p. ShortsandLongs has a
rolling spread of 626.8p-628.70p.
Jessica Mead
Champion Trader - Day 1
l Week 4
Time is running out if you plan to play and catch the leaders with just over a week left. It was a
difficult week predicting the markets with many of our early leaders suffering set backs. alsonsove
our outright leader also manged to increase their account the most this week with over £70,000 prof-
it taking the £1,000 prize. rhona45 was runner up in the week with just over £56,000 and lurks dan-
gerously in third.
It is free and a £7,000 prize pot still available.
User Name Account Value % Difference
1 alonsove £149,578.26 1396
2 jasonkhan £123,193.67 1132
3 rhona45 £116,903.64 1069
4 shidong £100,719.33 907
5 Gekko1981 £97,018.79 870
6 TheMysteryTrader £91,519.55 815
7 sbwilliams £88,629.21 786
8 urosbric3 £73,280.42 633
9 orcanz £36,849.16 268
10 altuary £30,087.64 201
To register and the full standings, visit www.intertrader.com/champion
 Lifestyle
26
Glimpse the Big
Five in Zambia’s
beautiful (and
quiet) savannah
A world away from the mass tourism of
Kenya, Zambia offers intimate lodges and
magical walking safaris, finds Belinda Archer
W
E’RE sitting in the back of an
open-topped jeep, manoeuvering
our way over some rough terrain.
The sherbet pink sun set around
half an hour ago and already it is dark, the
night sky inky black. Fannuel, our guide,
has spotted something. He veers off the
track and gingerly pulls up to the crest of
an escarpment. Down below, quietly sip-
ping water out of the drying up Luangwa
river bed, is a majestic female leopard, her
belly full from a recent kill and her spots
glinting in the moonlight.
It is the sort of sighting that Zambia
prides itself on: magical and rare, far away
from lines of other jeeps with their flash
cameras and intrusive binoculars. We have
seen no other tourists on our drive, and
there is just us, alone, with this breathtak-
ingly beautiful creature.
Unlike the packaged mass tourism of
Kenya, the expense of Botswana and the
ludicrous air-conditioned, satellite-televi-
sioned luxury of South Africa, Zambia is a
relatively unknown and undeveloped
African safari nation. It has a raw, uncom-
mercialised charm about it, its infrastruc-
ture less advanced and the camps and
lodges smaller and more intimate. We are
here for just a week, and already we are
enchanted.
The leopard moves off and the jeep softly
pulls away to continue on its night drive.
Within minutes we see a pod of hippos
close to the track and a herd of fragile,
super alert impala, with a sinister hyena
shadowing them, his jaws hanging open,
ready for the first bite of flesh.
THE ACCOMMODATION
AMBIA has accommodation to suit all
Z tastes, ranging from the more humble,
temporary bush camps that sleep a
maximum of eight, to the luxury fixed
lodges. Mfuwe Lodge, in the South
Luwangwe National Park, is an ultra luxury,
newly refurbed lodge with designer,
contemporary interiors. It also has several
sister bush camps, including the super-chic
Chamilandu camp three hours away beside
the Luangwa riverbed. Think hanging cane
chairs, stilted tree houses that are
completely open to nature, and gorgeous
designer African pieces.
Norman Carr Safaris also has a main
lodge with several bush camps, set up
specifically so you can walk between them.
These include the traditional Nsolo camp,
with its typical safari-themed colour
schemes, director chairs and outside
showers. Old Mondoro is another bush camp,
CITYA.M. 22 NOVEMBER 2010
| Travel
Back at Mfuwe Lodge, a luxury lodge in
the South Luwangwa National Park, we
retire for the night to our sumptuous pri-
vate huts, escorted by a scout. The escort
is essential -- the lodge has no borders
and the animals are free to roam
wherever they wish. This, too, is
typical of Zambia, where the
animals have right of way,
even in the human encamp-
ments.
The following morning
we rise early, ready for our
first taste of a walking
safari. Now copied
throughout Africa, these
were introduced in talk in a whisper, and tracks, scent the pungent aroma of the
Zambia by the doyen of don’t ever panic.” wild sage and pick “elephant biscuit” pods
Zambian safaris, the game Being on the ground is off the winter thorn trees.
warden Norman Carr, in the far more real than in a Jeep. The following day we move on to Nsolo
1950s. He wanted to emulate On foot you feel, hear and Camp, around a two hour drive from
the traditional safari adventure smell Africa, not just see it. You Mfuwe. Unlike the fixed-structure luxury of
of tracking big game on foot and are closer to nature, while the Mfuwe, Nsolo is a temporary bush camp of
of walking from camp to camp the sense of possible danger heightens conical roofed straw huts that is stripped
original safari way. And, of course, the experience. You also learn more bare and abandoned in the rainy season. It
given that Zambia “invented” the walking about the flora. We witness a small group overlooks the Luwi River and is quite isolat-
safari, it claims to have the very best, large- of elephants, two females with an impossi- ed, deep in the bush. As we arrive, a mother
ly because of its highly experienced, A typical sight on a bly cute calf, from just 30 feet away, and elephant and her young are sauntering
impressively informed guides. Zambian safari. spot a rascally warthog scampering down the sandy river bed right beside the
We assemble for our briefing in the around, but we also crouch down to learn main hut.
morning mist with our scout Godfrey, a about the different animals’ dung and “Oh yes, that happens a lot here,” says
rifle parked ominously over his shoulder. Tara, the assistant camp manager, noncha-
“Just one bullet shot from this gun will lantly. “Last week we had two wild dogs
kill a charging elephant”, reassures It is the sort of sighting that Zambia chasing some lions in the camp and there
Fannuel, as we set off in single file behind was a leopard at brunch yesterday.”
him with Godfrey up front. “But we don’t prides itself on: magical and rare, far from Shaddy, our guide, who proudly trained
like to kill. In the bush, together we stand under Norman Carr himself, takes us off
and divided we fall, so stay in single file, other Jeeps with their flashing cameras on a late afternoon walking safari, and
with a fabulous location in the Lower Zambezi
National Park to the south of the country,
right on the banks of the Zambezi itself.
One of the most superb properties is Sausage
Tree camp, which, as a safari camp, sits
somewhere between a bush camp and a fixed
lodge. This too has a breathtaking setting high
up on the banks of the Zambezi, and consists
of immense luxury private quarters and a
charming chitenji with sofa’d areas, a pool,
and a magical campfire area.
l Nsolo bushcamp (nightly rate from £305
per person), Mfuwe Lodge (nightly rate
from £280 per person), Old Mondoro
bushcamp (nightly rate from £350 per
person) and Sausage Tree Camp (nightly
rate from £360 per person) are all
members of the Zambian Horizons
(www.zambianhorizons.com) collection.
Belinda’s last day was spent at the
Intercontinental in Lusaka.
CITYA.M. 22 NOVEMBER 2010 THE FOLLY 27
MONUMENT’S HOT NEW
OPENING REVIEWED
TOMORROW

SKI NOTES | by Zoe Strimpel

Right: Chalet Zen in
Zermatt. Below: Le
Strato’s spa at
Courchevel 1850.
Below right: the
newly refurbed Grand
Hotel Park in Gstaad.

Courchevel’ s new retreat

Courchevel addicts (with extra cash) rejoice: a
fabulous new opening in 1850 is setting
tongues aflutter. Le Strato has just 25 bed-
rooms, an 800sq m spa by Nuxe, a gastro
restaurant with a famous French starred chef
– and, wait for it, a a champagne bar in the
ski room. Open from 10 Dec, rooms from
€790 per night, www.hotelstrato.com.

Gstaad’ s Grand refurb Chalet Zen offers weekends

after a couple of hours of more out-of-this-
world sightings we come over the ridge of a
dry river bed and are greeted by a magical
sight of twinkling lanterns, director chairs
arranged in a line and a full bar set up on a
table laden with delicious canapés. There
we chat, sipping on cocktails and watching
the burnt orange sun setting behind the
distant red mahogany trees.
The following day we move on to another
This December, the Grand Hotel Park turns Zermatt’s swankiest chalet is now offering
100 and re-opens after a 10-month closure skiers the chance to bask in its complete luxu-
to reveal a staggering multi-million euro ren- ry for long weekend breaks rather than full
ovation. Wood, wood, stone and flannel weeks at a time, offering two long weekends
define its rustic elegance. Most of the84 and two mid-week breaks in January 2011.
rooms have views of Mount Wispile and the Only 100m from the Klein Matterhorn lift,
Diablerets Glacier. The spa is second to none. there’s an outdoor hot tub and more.
Rooms from £450. www.grandhotelpark.ch Three day ski breaks from £750 per person.
Above left: A view of Our love affair with this beautiful coun- +41 33 748 98 00. www.chalet-zen.com, +41 027 967 17 27.
the Luangwa riverbed. try is almost complete. Our last stop is
Top: a veranda at Sausage Tree Camp, so-named after the
Old Mondoro. Above: curious tree whose fruit hang like giant
dining at Sausage salamis in an Italian deli. Creature com-
Tree Camp. forts abound here, and the game spotting is
extraordinary; we witness a pride of lions
feasting on a recent baby elephant kill, and
even go fishing for tiger fish, gin and tonic
in hand, on the Zambezi.

FOUR MOUNTAINS
tucked away bush camp, Old Mondoro, Zambia seems to offer the real Africa. Its
deep in the Lower Zambezi National Park combination of top game, undeveloped
and reached by wobbly four-seater plane. It out-of-the-wayness and vast havens of

ONE LIFT TICKET

is located right on the edge of the Zambezi,
and we enjoy silent canoe safaris along the
waters – another Zambia speciality -- sight-
ing a bachelor herd of majestic buffalo pos-
ing photogenically on the bank. A deadly
crocodile silently slithers into the water just
feet ahead of our boat, as well as all kinds of
birds, including the swooping goliath heron
and distinctive African fish eagle.
unspoilt wilderness guarantee a safari
experience like no other. You must go now,
and prepare to be spellbound.
Belinda travelled with the Zambia Tourist Board
(www.zambiatourism.com) and Kenya Airways Experience The Power of Four
which flies from London to Lusaka and has just
launched a new service to Ndola International
Airport. www.kenya-airways.com; 020 8283 1818.

THE GAME
ambia can offer all of the Big various antelope such as impala, The birds, too, are spectacular,

Z Five, although rhinos have

been poached out of
existence in most parks. Leopard,
with the distinctive M
printed on their behinds,
the larger kudu and
particularly in the
Lower Zambezi.
There is everything
elephant, lion and buffalo are all bushbuck, as well as from the African
to be found in profusion, hyena, several types fish eagle,
alongside other traditional safari of mongoose, and Zambia’s national
game such as zebra, giraffe, smaller mammals emblem, to the emerald
hippos and of course crocodile. such as warthog, spotted wood dove with
Each national park is different, baboons and its mournful cry, the jewel-
however; there are no giraffe in porcupine. coloured kingfishers, herons

0131 243 8097

Lower Zambezi (no-one is quite and immense birds of prey.
sure why, given that the Zambia also specialises in
necessary vegetation is plentiful) offering a range of different
and there are few buffalo to be safaris. You can spot the
spotted in South Luangwa.
The Lower Zambezi is also
wildlife from the safety of
open-topped jeeps, go on www.ski-i.com
better for hippos, given that the walking safaris, sit at the front
Zambezi doesn’t dry out in the of a canoe paddled by a guide, or
main season so there is plenty of even, for the more adventurous,
water for them to loaf about in. fly over the beautiful land and
Other game in evidence includes rivers in a microlight.
 28 Lifestyle | TV& Games CITYA.M. 22 NOVEMBER 2010

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm Inside Out: BBC News
8pm EastEnders
8.30pm British Schools,
Islamic Rules: Panorama
9pm CHOICE Accused
10pm BBC News
10.25pm Regional News
10.35pm Don’t Hit My Mum
11.40pm FILM A Walk to
Remember: Romantic drama,
with Mandy Moore and Shane
West 2002; Weatherview
1.20am Sign Zone: The Apprentice
2.20am Sign Zone: MasterChef: The
Professionals 2.50am Sign Zone:
Eyewitness 3.50am-6am BBC News
6pm Eggheads
6.30pm Strictly Come
Dancing – It Takes Two
7pm Michael Wood’s
Story of England: The history of
the village from the 19th
century to the present day.
Last in the series.
8pm University Challenge
8.30pm Miranda
9pm CHOICE Giles & Sue
Live The Good Life
10pm The Trip
10.30pm Newsnight: Weather
11.20pm JFK: The Making of
Modern Politics
12.20am BBC News
3.50am Close 4am-6am BBC
Learning Zone
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
7pm Emmerdale 7pm Channel 4 News 7pm Five News at 7
7.30pm Coronation Street 7.55pm 4thought.tv 7.30pm How Do They Do It?
8pm The Deadliest Bite: Tonight 8pm Dispatches: City of Five News Update
8.30pm Coronation Street Fear: Terrorist attacks in 8pm The Gadget Show:
9pm I’m a Celebrity Islamabad, Pakistan. Five News at 9
Get Me Out of Here! 9pm Coppers 9pm Extreme Fishing
10pm ITV News at Ten 10pm CHOICE with Robson Green
10.30pm London News Chris Moyles’ Quiz Night 10pm FILM Kickboxer: Martial
10.35pm Real Crime with Mark 10.55pm FILM Commando: arts thriller, starring Jean- ACCUSED
Austin: Rachel Nickell – Action adventure, starring Claude Van Damme. 1989. BBC1, 9PM
Case Closed Arnold Schwarzenegger. 1985. 12.05am Ultimate Fighting A soldier’s best friend humiliates him
11.35pm Robson Green’s Wild 12.40am Premier League Poker Championship during a campaign of victimisation.
Swimming Adventure 12.30am The 1.40am FILM The Lost Son: Drama, 1am SuperCasino 3.55am Military courtroom drama, starring
Zone; ITV News Headlines 2.30am starring Daniel Auteuil. 1999. Emergency Bikers 4.45am House Mackenzie Crook.
UEFA Champions League Weekly 3.25am FILM The Hot Rock: Crime Doctor 5.10am Michaela’s Wild
3am The Jeremy Kyle Show comedy, starring Robert Redford. Challenge 5.35am-6am Michaela’s
3.50am-5.30am ITV Nightscreen 1972. 5.05am-5.55am ER Wild Challenge

SKY SPORTS 1 BRITISH EUROSPORT BBC THREE Accidentally on Purpose Steeds 5.30am-6am How Does
SATELLITE & CABLE

7pm Live Monday Night
Football 10.30pm Netbusters
11pm A League of Their Own
11.30pm SPL Round-Up 12am
Soccer AM: The Best Bits 1am
Monday Night Football 3am
FIFA Futbol Mundial 3.30am
Watersports World 4.30am
Max Power 5.30am-6am FIFA
Futbol Mundial
SKY SPORTS 2
6pm Live ATP World Tour
Finals Tennis 10pm Test Cricket
11pm NASCAR 12am Show
Jumping 1am European Tour
Golf 2am Wonderful World of
Golf 3.30am-4.30am PGA Tour
Classic
SKY SPORTS 3
5pm WWE: Raw 8pm Thinking
Tackle 9pm NFL 11pm WWE:
Late Night – Bottom Line 12am
WWE: Late Night – Afterburn
1am WWE: NXT 2am-4.15am
Live WWE: Late Night – Raw
6.45pm Strongest Man 7.45pm
Timbersports Series 8.45pm
Motorcycling: The Ulster Grand
Prix. 10.50pm Champions Club
11.50pm Eurogoals: One to One
12.05am-12.35am Eurogoals
ESPN
6.30pm Talk of the Terrace
8pm NBA Action 8.30pm
Premiership Rugby Union 10pm
Between The Lines 10.30pm
Talk of the Terrace 12am NFL:
Monday Night Countdown
1.30am Live NFL: Monday
Night Football 4.30am-5am
Press Pass 2010
LIVING
7pm CSI: Miami 8pm Dating in
the Dark US 9pm America’s
Next Top Model 10pm Party
Wars 11pm Criminal Minds 1am
CSI: Miami 2am Four Weddings
3am Charmed 4.40am
Exposed: Tom Cruise 5.30am-
6am Home Shopping
7pm Merlin 7.45pm Doctor
Who 8.30pm Freak Like Me
9pm The World’s Strictest
Parents 10pm EastEnders
10.30pm How Not to Live Your
Life 11pm Family Guy 11.45pm
The World’s Strictest Parents
12.45am Freak Like Me 1.10am
How Not to Live Your Life
1.40am Mad About the House
2.40am Children in Need: 50
Greatest Moments 3.40am The
Real Hustle: Celebrity
Scammers 4.10am-5.10am
Mad About the House
E4
7pm Hollyoaks 7.30pm Friends
9pm Scrubs 10pm The IT
Crowd 10.30pm Pete Versus
Life 11.05pm Misfits 12.10am
Scrubs 1.05am The IT Crowd
1.35am Pete Versus Life 2am
Misfits 2.55am What About
Brian 3.40am Rick & Steve: The
Happiest Gay Couple in All the
World 4am Switched 4.25am
4.45am-6am Switched That Work?
HISTORY DISCOVERY HOME &
7pm How the Earth Was Made HEALTH
8pm America: The Story of the 7pm Babes in the Wood 8pm
US 9pm Kennedy Assassination: 10 Years Younger 9pm Chopper GILES & SUE LIVE THE GOOD LIFE
24 Hours After 11pm Lost JFK Rescue 9.30pm A&E: Outback BBC2, 9PM
Tapes: The Assassination 12am 10pm Mystery ER 11pm Giles Coren and Sue Perkins explore
America: The Story of the US Trauma Unit 12am Chopper ways to make and save money, before
1am Mystery of the Mary Rescue 12.30am A&E: Outback considering whether they could
Celeste 2am Tunnellers 3am 1am Mystery ER 2am Trauma maintain the self-sufficient lifestyle.
Prehistoric Megastorms 4am- Unit 3am 10 Years Younger
5am Ancient Discoveries 4am Multiple Mums 5am-6am
Portland Babies
DISCOVERY
8pm How Do They Do It? SKY1
8.30pm How It’s Made 9pm 8pm Best of Oops TV 9pm Road
Mythbusters 10pm Frontline Wars: Officers pursue two
Battle Machines with Mike shoplifters through Slough.
Brewer 11pm How the Universe 10pm NCIS: Los Angeles 11pm
Works 12am Deadliest Catch Law & Order 12am Road Wars
1am Bear Grylls: Born Survivor 1.50am Steve Jones in the CHRIS MOYLES’ QUIZ NIGHT
2am Mark Williams on the Rails Jones Boys’ Amazon Adventure CHANNEL 4, 10PM
3am World War Two in HD 2.40am Oops TV 3.30am Lost The Radio 1 DJ is joined by Ruth Jones
Colour 3.50am How the 4.20am Sell Me the Answer and Heston Blumenthal, who compete
Universe Works 4.40am 5.10am-6am Are You Smarter to secure a place in the grand final and
Mystery Investigator: Olly Than a 10 Year Old? Game show. top the leader board.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
5 33 18 34 9 32 5 
7 16 8
9 7   
45
Place the numbers from 1 to 9 in each empty cell so that each  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 29 11
5 6 3
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 12 12 4
  
above or to the left of it. 22 16
You can only use the digits 1-9 14 15 
   and you must not use the
17
6 8 
same digit twice in a block. 14 16 18 17 11
  The same digit may occur 35 24   
23
    more than once in a row or
column, but it must be in a
10
15
20
15
7
  
11 12
   separate block.
17 13 7 
45
  12 16 8
 

   ACROSS DOWN
1 Hooded jacket (5) 1 Cougar (4)
   
  WORDWHEEL K A
4 Animal’s foot (4)
7 Relative by
marriage (2-3)
2 Payment by a tenant
to a landlord (4)
3 Device on an aircraft that
Using only the letters in the Wordwheel, you have 8 Adult male controls lateral motion (7)
   ten minutes to find as many words as possible,
C T person (3) 4 Pester (6)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters R 10 US city known
for gambling
5 Be in debt (3)
6 Single level of a

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
A E casinos and easy
divorce (4)
multistorey building (5)
9 Extension to a main
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
C R 11 Deer’s horn (6)
13 Engage in
building (5)
12 Cook in an oven (5)
QUICK CROSSWORD 9 2 7 3 9 7 8 2
boisterous, 14 In a perfect way (7)

% 2 $ 5 ' 4 ' $ %
2 3 6 1 4 3 5 1 SUDOKU         
drunken
merrymaking (7)
15 Suggestive of the
supernatural (5)
6 9 8 5 6 9         
( ( / 8 ' ( $
9 4 8 4 8 4 1 16 Thoroughfares (5) 16 Elongated cluster
$ 9 $ , / , & ,         
9 ( 7 2 5 0 ( 1 7 7 1 9 3 7 8 6 5 17 Wide scope (7) of flowers (6)
        
( $ 5 0 $ 5 . 3 5 8 9 6 7 18 Manoeuvre (6) 17 Glowing fragment of wood
        
5 2
6
* 7
3 $ 3 5 ,
3
. $
5 7 3
9 8
4 2
6 1
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WORDWHEEL         
21 Scottish hillside (4)
23 Of a female (3)
or coal left from a fire (5)
19 Archaic form of the
6 2 3 5 $ 1 2 2 3         
$ $ * / 8 1 * ( 9 1 7 2 1 4 The nine-letter word 24 Tiny (5) word ‘you’ (4)
8 6 4 9 8 5 9 7         
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25 Garden tool (4) 20 Steep rugged rock or cliff (4)
2 5 ( 5 3 $ 5 , 6 1 4 2 3 1 3 7 5
26 Immature (5) 22 Seek an answer to (3)
 Sport
29
SWANN’S ASHES COUNTDOWN
IS FINALLY NEARING AN END
ENGLAND SPIN KING CAN’T WAIT TO
GET STUCK INTO AUSTRALIA: PAGE 30

Poulter’s on song in Hong Kong as McDowell aims

to end the season in Dubai as Europe’s top dog
GOLF

▲
ENGLAND’S Ian Poulter claims he’s
no longer concentrating on his world
ranking after his victory in the UBS
Hong Kong Open.
The 34-year-old shot a second
round 60 and never looked back,
carding a solid 67 on the final day to
finish one stroke ahead of Simon
Dyson and Italian Matteo Manassero.
Poulter caused controversy two
years ago when he claimed he was
the only serious threat to Tiger
Woods’ supremacy. And although he
is confident of progressing further,
he stopped short of making any bold
statements about his ability to chal-
lenge the game’s elite.
He said:“I’m not playing the game
saying, ‘I’m going to get to No1’. I
tried that once before and it didn’t
work. I think I’ll just try winning next
week and see how high I can go.”
Meanwhile, Graeme McDowell is
second to Martin Kaymer in the Race
to Dubai after finishing fifth in Hong
Kong and he is confident he is in the
perfect frame of mind as he bids to
finish the season as Europe’s No1.
“I’m within touching distance now
of next week,” he said. “I’m feeling
really good about my game.”

21-28 NOVEMBER The O2 LONDON

Murray took less than an hour and a half to beat Soderling in straight sets. Picture: PA

Murray sees
off Soderling
“The court is really slow for an
▲

TENNIS
BY JAMES GOLDMAN
BRITISH No1 Andy Murray is off and
running at the Barclays ATP World
Tour Finals in London after downing
Sweden’s Robin Soderling in straight
sets.
A bumper crowd of 17,500 were
treated to a near faultless display from
the 23-year-old, who took just an hour
and 20 minutes to vanquish this sea-
son’s beaten French Open finalist 6-2
6-4.
Soderling arrived in London fresh
from claiming his first Masters title in
Paris and having leapfrogged Murray
in the world rankings. But the Swede
never got going here, running into a
home favourite, determined to put on
a show for his followers.
Murray said: “I managed to play a
lot of long rallies but hit some big
passing shots when I needed to, I’m
just glad to come through.
SPORT | IN BRIEF
Shearer unimpressed by Capello De Villiers enters record books
FOOTBALL: Former England captain
Alan Shearer believes the national side
have made no progress under the man-
agement of Fabio Capello. Shearer hit out
at the Italian tactician’s inconsistent
team selections and formations and fears
that even after nearly three years in the
job, he is still nowhere near settled on
who would compromise his best team.
Shearer said: “Fabio has been here over
two and a half years now and I’m not
sure we’ve gone forward in that time. If
every England player was fit I’m not sure
he would actually know what system he
wanted to play or what team he wanted
to play.”
indoor court and I used the slice really
well, it was staying pretty low, and
played a lot of drop-shots which some
of the commentators don’t like, but
they worked today.”
At the same event last year, Murray
opened with a win over Juan Martin
del Potro, only to lose out on a semi-
final spot to the Argentine five days
later on the percentage of games won.
And the Scot acknowledged winning
in straight sets won’t do his chances of
progression any harm this time.
He said: “I got a little bit unlucky
last year so it was good to get off to a
great start today and win in straight
sets. The two matches I won here last
year were in three sets so if it does get
tight then it’s obviously a help.”
Murray faces Roger Federer tomor-
row in his next group B match. The
Swiss star kicked off his campaign
with a 6-1 6-4 win over Spaniard David
Ferrer. SEE NADAL & DJOKOVIC
IN ACTION ON WEDNESDAY
CRICKET: AB de Villiers made a South
African Test record score of 278 to put
LAST TICKETS REMAINING
the Proteas firmly in control after two
days of the second Test against Pakistan
in Abu Dhabi. De Villiers struck 23 fours
www.BarclaysATPWorldTourFinals.com
and six sixes in his unbeaten total to sur-
pass the previous mark of 277 set by
Test captain Graeme Smith against
England in 2003. “It was very special
and I dedicate that knock to Graeme for
allowing me to go on. It tells you a lot FOR CORPORATE HOSPITALITY, PLEASE CONTACT IMG ON 020 8233 5888
about his captaincy and his class as a OR ATPTennis@imgworld.com. Follow the stars on their journey to compete at the
captain,” De Villiers said. “I actually 2010 ATP World Tour season finale on Check website for order of play.
begged him at tea just to declare and get Qualification and participation subject to ATP rules.
on with it because we needed a few
wickets at the end.”
 30 Sport CITYA.M. 22 NOVEMBER 2010

Results
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▲

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RUGBY UNION
and hopefully I did enough after that
8ij\eXc%%%%%%%%%%%%%%%%%%%%%%%%%%%%(+ / ) + )/ (, (* )- BY FRANK DALLERES first 15 minutes of shaky time.
DXe:`kp%%%%%%%%%%%%%%%%%%%%%%%%%(+ . + * (0 (( / ),
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Jle[\icXe[%%%%%%%%%%%%%%%%%%%(* + . ) (, (* ) (0 victory over Samoa proves he can cut and for the last four weeks with
Jkfb\%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(+ - ( . (/ (/ ' (0
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E\nZXjkc\%%%%%%%%%%%%%%%%%%%%%%(+ , * - )) )( ( (/ The strapping Bath back, who start- and getting my lines.”
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9cXZbgffc%%%%%%%%%%%%%%%%%%%%%%%(+ , * - )( ). $- (/ international start at No13 against contention to stay in the side for
8jkfeM`ccX%%%%%%%%%%%%%%%%%%%%%(+ + , , (, )' $, (.
9`id`e^_d%%%%%%%%%%%%%%%%%%%%(+ * . + (, (. $) (- the Pacific Islanders in place of Mike Saturday’s final autumn internation-
N\jk9ifd%%%%%%%%%%%%%%%%%%%%(+ + + - (- ), $0 (- Tindall. al against South Africa, and means
<m\ikfe%%%%%%%%%%%%%%%%%%%%%%%%%%%(* * - + (+ (* ( (, And Banahan took the opportunity England manager Martin Johnson
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N`^Xe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(+ * , - (' )* $(* (+ with both hands, impressing in the faces a tricky selection call.
Nfcm\j%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(+ ) * 0 (+ ), $(( 0 midfield with club colleague The Jersey-born player, whose previ-
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>FC= man of the match. was quick to pay tribute to his bur-
?FE>BFE>FG<EÇ=`eXcie[>Yi@iclec\jjjkXk\[#gXi To cap it all he scored the second- geoning partnership with Hape.
.' 1),/@XeGflck\i-.-'-+-.%),0DXkk\fDXeXjj\if half try that helped England pull “I thought Shontayne was brilliant,” Banahan
@kX -.-*-.-)#J`dfe;pjfe-+-,-,-,%)-'8ek_fep touched down
BXe^LJ8 -.-(-.-,%)-(>iX\d\DZ;fn\cc-,-,-* away from stubborn Samoa, and now Banahan added. “I think he’s getting
-/#)-)IfipDZ@cifp-*-----.% feels he has answered those critics all the praise for that try but I called for England
who doubted him. that move. That’s the confidence Picture: GETTY
IL>9PLE@FE
“I’d like to ask them if they have that’s going through the team.”
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▲

CRICKET
8KG98I:C8PJNFIC;KFLI=@E8CJF)8i\eX ÇD\ej
BY JAMES GOLDMAN
J`e^c\j>iflg91, 8e[pDliiXp>Yi Yk+ IfY`e
Jf[\ic`e^Jn\ -$)-$+% GRAEME SWANN cannot wait to
open the final window of his Ashes
KF;8PËJ;@8IP advent calendar as the excitement
9XiZcXpjGi\d`\iC\X^l\ and anticipation builds towards a
Jle[\icXe[m<m\ikfe/gd %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% crescendo ahead of the first Test at
K<EE@J the Gabba on Thursday.
8KG9XiZcXpjNfic[Kfli=`eXcjF)8i\eX#Cfe[fe % The world’s premier spin bowler
has been patiently ticking off the
SPORTS EDITOR FRANK DALLERES days ever since the touring party
email sport@cityam.com landed in Perth at the end of October.
other that Aussie legend Shane
Warne as the key to the destination
of the famous urn and like a child at
Christmas desperate to open their
presents, the Nottinghamshire
twirler can’t wait to rip into
Australia’s batsmen.
He said: “When we first got over
here I daren’t think of the first Test
match – because I was like a kid on 1
December, with an Advent calendar,”
said the 31-year-old.
come along. It’s really building now. I
go back to my room at night and I
bounce off the walls.
“It’s going to be amazing come
Thursday – I just can’t wait.”
Meanwhile, Kevin Pietersen has dis-
missed the suggestion that Aussie wild
card pick, Xavier Doherty, has been
selected to specifically target him.
England’s stellar batsman has
struggled against left-arm orthodox
spin in the past, but the South
cerned by the threat the 28-year-old
Ashes rookie poses.
“I don’t have technical glitches, I’ve
sorted them,” said Pietersen. “It’s
something people have talked about
but it wont bother me.
“I have seen Doherty bowl a couple
of overs against Sri Lanka in the one-
dayers. He looks a good bowler but it
will be interesting to see if they play a
spinner or the four quicks. But that’s
for everyone else to talk about.”
CITYA.M. 22 NOVEMBER 2010
▲
Pedersen double leaves
Rovers chiefs cock-a-hoop
▲
FOOTBALL
BLACKBURN boss Sam Allardyce
toasted his team’s first victory in
front of their new Indian owners.
Officials from Venkateshwara
Hatcheries watched on as goals in
each half from midfielder Morten
Gamst Pedersen helped Rovers beat
Aston Villa 2-0 in the Premier League.
“Now they have seen us win for the
%$5%$5,$169V6287+$)5,&$
7:,&.(1+$06$77+'(&(0%(530.,&.2))
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$1218:,//*(1,$-2+1+$<(63/860$1<
Walder’s boot
prevents Irish
from going top
RUGBY UNION
THE RELIABLE boot of Dave Walder
provided 18 points as Wasps came
from behind to beat London Irish 33-
25 and prevent the Exiles from return-
ing to the top of the Premiership.
Irish kept fighting and scored a
third try in the 78th minute through
Paulica Ion to seemingly snatch a los-
ing bonus point, only for Walder to
deny them with a last-minute penalty.
London Irish rugby director Toby
Booth admitted he was shocked by his
team’s failure to return to the top of
the table.
Booth said: “I am absolutely flabber-
gasted. I cannot believe we played like
that and came away without even a
bonus point. We were three times five
metres off their line yet came away
with nothing.”
Elsewhere, second-half tries by
Kameli Ratuvou and debutant James
Short helped Saracens to a 17-13 win
at Bath. A sixth win in eight league
games moves Brendan Venter’s side
into third in the Premiership.
“I’m delighted,” said Mark McCall,
the Saracens coach. “We stuck in
there and played some really great
rugby. I thought we deserved to win,
though it was a tough battle.”
Finally, Newcastle had Jimmy
Gopperth to thank for their 12-6 win –
only their second of the season – over
Gloucester. The Kiwi kicked all of his
side’s points.
first time,” said Allardyce. “Hopefully,
like every Blackburn fan, the players
and myself, they will be very happy
with the way we have won today and
the performance that was given.”
Pedersen’s first came when Brad
Friedel misjudged his free-kick which
curled into the far corner. He doubled
the lead in the 66th minute when he
diverted Ryan Nelsen’s shot past for-
mer Rovers goalkeeper Friedel.
%$5%$5,$13/$<(56,1&/8'(0$77*,7($8
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025(/($',1*,17(51$7,21$/67$56
7,&.(76WWW.TICKETMASTER.CO.UK 25&$//0844 847 2492
35,&(6$'8/76)520£35
Sport 31
Harry will spend again
to boost title challenge
▲
FOOTBALL
BY JAMES GOLDMAN
TOTTENHAM boss Harry Redknapp
will spend again in January in order
to boost his side’s title challenge.
As revealed by City A.M. 10 days ago,
the former Portsmouth manager has
been given the green light to dip into
the record £120m revenues the club
generated last year.
Saturday’s dramatic 3-2 win over
Arsenal in the north London derby,
secured by Younes Kaboul’s late head-
er, moved Spurs to within six points
of joint leaders Chelsea and
Manchester Untied. And Redknapp Kaboul complet-
believes that several shrewd additions ed the comeback
to his squad would propel his charges win at Emirates
into the thick of the race for the Stadium.
Premier Leauge crown. Picture: PA
“We need to tweak it to finish it
off,” he said. “I think Tottenham have
got a championship in them in the
next few years.
“Just because they haven’t for a
Wenger bemused by poor home form
while, doesn’t mean that Chelsea,
Man Utd, Arsenal or Liverpool will ARSENAL manager Arsene Wenger first two games we didn’t deliver the
carry on winning it. Why can’t some- admits his side must make Emirates performance and we can only say that
one else win it? Stadium a fortress if they are have any we got what we deserved.
“I feel, with the right ambition, we hope of challenging for the title. “Here we delivered the performance,
can go on and win it. There’s one or Saturday’s capitulation against but what is worrying for me is that we
two other bits we could do without Spurs means the Gunners have now had an opportunity to go to the top of
spending a fortune that could make a lost three times on their own patch the league and when we have to deliv-
difference to the team. this season. er we can’t. That’s worrying because
“I think Tottenham are now getting Wenger said: “Yes I agree. Three that’s part of our job. We put ourselves
closer and the championship is wide home defeats are three too many. The in the right position and we failed.”
open.”
Tevez reignites City charge
Goals from Yaya Toure and Pablo am only three points off the top of
FULHAM 1 Zabaleta were sandwiched between a
Carlos Tevez brace – Zoltan Gera added
the league. This is not important. But
if we have a big problem and we are only
a consolation for the hosts – as City three points behind United and Chelsea,
MAN CITY 4 moved back to within three points of
the leaders.
we are doing well.”
MANCHESTER CITY are right back in
City were all but written off after
their drab display in the recent score-
TOP FOUR
the Premier League title hunt after a less Manchester derby, a fact clearly TEAM PLD W D L F A PTS
comprehensive 4-1 win over Fulham at not lost on Mancini. Chelsea 14 9 1 4 28 9 28
Craven Cottage, but manager Roberto He said: “Last week I was a stupid Man Utd 14 7 7 0 28 15 28
Mancini is urging his players to keep a manager who was six points behind. Arsenal 14 8 2 4 28 15 26
measure of perspective. Now, I am the ‘best manager’ because I Man City 14 7 4 3 19 11 25
-81,256)520£17.50 ,1$662&,$7,21:,7+
%22.,1*)((V$33/<
%22.,1*)((V$33/<
 Sport
32 CITYA.M. 22 NOVEMBER 2010

HONG KONG GONG

POULTER TRIUMPHS
IN FAR EAST: P29

Andy’s flying start follows

Downing Street knock-up
Murray, 23, declined to comment on

▲
TENNIS
BY JAMES GOLDMAN
ANDY MURRAY began his Barclays ATP
World Tour campaign with a straight
sets win over Robin Soderling before
revealing he’d prepared for the tourna-
ment by having a knock around with
Prime Minister David Cameron inside
Downing Street.
Mr Cameron had hoped to play in
the garden but the weather was too
bad. So he took Murray indoors to the
State Dining Room, cleared it of furni-
ture and was cheered on from the side-
lines during Thursday’s reception by
players such as Rafael Nadal and Roger
Federer.
the outcome of the game but praised
the efforts of left-hander Mr Cameron.
He said: “I was scared as I didn’t
want to break anything. The Prime
Minister was hitting the ball really
hard at me.
“I have no idea if everything in there
is incredibly expensive but it looked
very old-fashioned. I was more scared
than embarrassed as the other guys
like Rafael and Roger watched.
“There was a chandelier above where
the dining table would normally have
been. Some of the balls flew danger-
ously close to it. Mr Cameron looked
like he knew what he was doing.”
MURRAY SLAYS SWEDE: PAGE 29

Bookmakers last night saw a rush of money for Ancelotti to be the next Premier League manager to leave his post. Picture: PA

Chelsea deny Carlo

resignation claims
League manager to leave his post league defeats for the first time
▲

FOOTBALL
BY FRANK DALLERES
CHELSEA were last night forced to
publicly deny that manager Carlo
Ancelotti had sensationally quit
the club, following a day of
intense speculation over the
Italian’s future.
Suggestions surfaced that
Ancelotti had become disenchant-
ed with life at Stamford Bridge
after Chelsea’s dramatic recent
slump continued with a shock 1-0
defeat at Birmingham on
Saturday.
As rumours spread, one book-
maker slashed its odds on him
becoming the next Premier
from 10/1 to 6/4 in the space of
just three hours.
But the Blues emphatically rub-
bished whispers that the man
who led them to the double just
six months ago had tendered his
resignation to the club’s board,
only to have it rejected.
A Chelsea spokesman told City
A.M. the speculation was “total
nonsense”, adding that the sug-
gestions were “a work of fiction”.
Despite the club’s rebuttal,
Ancelotti’s future looks likely to
remain the topic of much discus-
sion.
Defeat to Birmingham saw
Chelsea record back-to-back
since 2006 and represented their
third loss in four matches.
They remain top, albeit only on
goal difference but have also been
affected by the departure of first
team coach Ray Wilkins earlier
this month. Wilkins said on
Saturday he was taking legal
advice because he felt he had
been unfairly dismissed.
When pressed on the mystery
surrounding Wilkins’ departure
and the fact Sir Alex Ferguson
would not have allowed it to hap-
pen at Manchester United,
Ancelotti said: “It is different.
Ferguson has total control. I am
just technical director. Full stop.”

SA warn England of a backlash

tion for the weekend showdown England ensured they recorded
▲

RUGBY UNION
BY FRANK DALLERES
ENGLAND have been warned to
prepare themselves for an
almighty South African backlash
when the two sides collide at
Twickenham at the weekend.
The Springboks slipped to a sur-
prise 21-17 defeat to Scotland at
Murrayfield on Saturday, despite
scoring the game’s only try.
It was far from ideal prepara-
with Martin Johnson’s men, who
have enjoyed a hugely encourag-
ing autumn programme.
But hooker Bismarck Du Plessis
said: “We always pick ourselves up
for England. It’s going to be a great
game to play at Twickenham.
Playing against England, in
England, with a full Twickenham
– we’re looking forward to that.”
While South Africa lost their
penultimate November Test,
back-to-back wins by overcoming
Samoa 26-13.
Converted winger Matt Banahan
shone at outside-centre, scoring a
try and impressing in a new-look
partnership with club colleague
Shontayne Hape. Banahan, whose
previous five England caps had
come as a winger, hopes he has
answered critics who doubted his Subject to availability. Most stores.
value as a Test No13.
BANAHAN JOY: PAGE 30
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suitable for everyone. Please ensure you fully understand the risks involved in trading
these products and seek independent advice if necessary.

LMAX.com
0333 700 1000
LMAX Limited is authorised and regulated by the Financial Services Authority in the United Kingdom (Register Number 509778). LMAX Limited is registered in England and Wales (Number 06505809) and our registered address is LMAX Limited,
Yellow Building, 1A Nicholas Road, London W11 4AN.