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Issue 1,274 Tuesday 30 November 2010 www.cityam.com FREE

MARKETS REJECT WPP not

planning
IRELAND BAILOUT UK return

▲
TAX
BY DAVID HELLIER AND MATTHEW WEST
LEADING marketing agency WPP is
EUROZONE CRISIS unlikely to return its tax base to the
▲

BY STEVE DINNEEN UK even if the Treasury reforms the

corporate tax regime, it emerged yes-
MARKETS rejected the €85bn (£71.6bn) terday.
bailout of Ireland yesterday, as traders Sources close to the company said
turned their attention to those coun- it would not be bounced into a “knee-
tries they think could be next: jerk” reaction over the reform of con-
Portugal, Spain and Italy. trolled foreign company tax (CFC).
EU finance ministers had hoped the WPP moved its tax base to Ireland
deal would inspire confidence, but the in 2009 citing the CFC regime as the
FTSE closed down two per cent to its reason. Since then several other com-
lowest level in two months, while the panies have followed including
US’ Dow Jones slipped 0.3 per cent to ANALYSIS l FTSE 5550.95 Henderson Group, pharmaceutical
11,052.49. The Ibex index of Spain’s 35 5,900 29 Nov firm Shire and United Business
leading stocks also lost significant Media.
5,700
ground in Madrid, closing down 2.3 There have been hints that WPP
per cent. And the price of insuring could return its tax base to the UK,
5,500
Portuguese debt climbed ever higher, and George Osborne also made a per-
with five-year credit default swaps 5,300
sonal plea to Sir Martin Sorrell, WPP’s
(CDS) closing 45 basis points higher at chief executive to do so in June.
545, and Spain’s rising 43 basis points 5,100 But a source told City A.M: “There
to 350. The bond market gave a muted 15 Sep 5 Oct 25 Oct 12 Nov can be no guarantees. Whatever this
response to the Ireland rescue, with administration may put in place with
Portuguese yields falling only margin- A sceptical trader is unconvinced by the €85bn Irish bailout Picture: GETTY regard to CFCs, the danger is what
ally to just below seven per cent. happens if this administration isn’t in
Spanish yields continued to creep up, ters, would be enough to pull it tion deteriorates even further. Chancellor George Osborne will power?”
hitting 5.5 per cent – more than dou- through. But analysts are increasingly “A bailout happened in Greece. It hope Portugal and Spain can, in the “WPP is pretty supportive of some
ble that of Germany. Italy also strayed sceptical about its ability to meet happened in Ireland, and it’s going to short term at least, resist a bailout. of the things this administration has
closer to the danger zone as its bond ambitious growth targets. happen in Portugal,” said Roubini, As part of the Ireland rescue pack- done, but there is no knee jerk reac-
yields hit 18-month highs of 4.54 per UniCredit Research said that despite who is known as “Dr Doom” for pre- age he won a concession that the UK tion to these moves; there can not be
cent following a disappointing auc- the Ireland deal, the Eurozone may dicting the credit crisis before 2007. will not contribute to a new bailout any guarantees”
tion of government debt. come under “continued pressure to He added: “The question is whether fund, set to replace the European Meanwhile, Shire said it would
Portugal has strongly resisted the provide a package for Portugal at it could happen in Spain. The eventual Financial Stability Mechanism (EFSM), remain cautious as to the proposed
suggestion it may require a bailout but least”. fiscal cost of cleaning up its financial in 2013. However, if Portugal or Spain reforms. A spokesperson said: “We
its high debt and slow growth have left And Professor of economics at New system will be much larger than has so stumbles before then, the UK will be will follow the development of any
it in a precarious position. York University Nouriel Roubini added far been estimated by the govern- forced to contribute to another rescue UK proposals, and when we see any
It yesterday said a tough austerity to Portugal’s plight by saying it should ment.” However, he believes Spain package. actual legislation we will consider its
Budget, backed by EU finance minis- apply for a bailout now before its situa- could prove “too big to bail out”. ALLISTER HEATH P2, MORE: P16-17 implications.” MORE: P7

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 2 News
British economy has come a long way
EDITOR’S LETTER
ALLISTER HEATH
IT is amazing how narrow our escape
from disaster has been. Yesterday, on a
day when the markets continued to
worry about the Eurozone, the Office
for Budget Responsibility’s long await-
ed forecasts were reassuringly benign.
Unexciting, sure, and an exercise in
sophisticated guesswork, evidently,
but that was exactly what the doctor
ordered. A year ago, it looked as if we
would be the ones begging the IMF for
money; no longer.
There are, of course, real similari-
ties between the UK and those parts of
the Eurozone that are in crisis: UK
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Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
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Lifestyle Editor Zoe Strimpel
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WHAT THE OTHER PAPERS SAY THIS MORNING
BLUNDER REVEALS CARBON TRADING
DATA
Europe’s biggest clearing house,
LCH.Clearnet, has admitted that
“confidential information” about
trading in carbon emission
allowances, including the names of
individual traders, was mistakenly
published on the internet. Climate
Markets, which provides marketing
services for LCH.Clearnet, said the
information was placed on its website
in error and has now been removed.
GOOGLE TO TRANSLATE EUROPEAN
PATENT CLAIMS
Technology could help unblock one
of Europe’s oldest political impasses
when Google unveils a deal today to
do computer-based translations of
patent material submitted to the
European Patent Office. Under the
memorandum of understanding,
Google Translate will be applied to all
house prices will fall 3.1 per cent next
year; the public sector will shed hun-
dreds of thousands of jobs over the
next few years (albeit fewer than previ-
ously expected); consumer spending
will grow by less than GDP; and the
budget deficit remains extremely
large. But the big difference is that the
UK appears on course to resolve its
budget deficit and has very little
chance of suffering another recession,
thanks in the most part to the coali-
tion’s policy of austerity.
It is good news that the commen-
tariat has moved away from its irra-
tionally ultra-pessimistic phase of just
a few weeks ago. At the time, most
journalists (albeit not at City A.M.) were
inserting the world “double-dip” in
everything they wrote and the Labour
Party was openly predicting the end of
civilisation as a result of the coali-
tion’s cuts. Since then, sanity has
returned, partly because it is obvious
that modest growth and job-creation
has returned, partly because the
Labour party has nothing to win from
Half of Tube
journeys run
TRANSPORT
▲
BY STEVE DINNEEN
TRANSPORT for London (TfL) yester-
day claimed to have run 48 per cent
of trains despite the mass walkout by
its staff.
Around 50 per cent of regular
Oyster journeys were completed
using the underground network,
with 80 per cent of stations remain-
ing open, the operator claimed.
Mike Brown, managing director of
London Underground, said: “The
tube carried half of its usual number
of passengers today despite the point-
less strike.
“We want an end to this dispute,
and have given the unions every
assurance that stations will remain
staffed, every station that currently
has a ticket office will retain one, and
that there will be no compulsory
patent applications flowing into the
EPO.
DAVIS TO HEAD INVESTMENT LOBBY
AT ABI
The Association of British Insurers
has hired web entrepreneur and jour-
nalist Jonathan Davis as its chief
investment lobbyist. Davis, founder of
the private shareholder website
Independent Investor, will serve as
the ABI’s new director of investment
affairs, working alongside its invest-
ment committee. He replaces Peter
Montagnon, who left the ABI for the
Financial Reporting Council this year.
GRAMERCY SETS UP OFFICE IN LONDON
Gramercy, the US emerging markets-
focused hedge fund that shot to
prominence through its lucrative
trading of Argentine government
bonds, is to open a new office in
London. The fund manager is under-
stood to see significant opportunities
in European sovereign debt markets
over the coming years.
endlessly crying wolf and partly
because the crisis all around us is
unarguable proof that belt-tightening
is not optional when budget deficits
are out of control.
The growth and borrowing num-
bers from the OBR are highly plausi-
ble. They may turn out to be a bit too
high – or a bit too low – but they are a
perfectly sensible guesstimate. GDP
growth this year has been revised
from 1.2 per cent to 1.8 per cent; hav-
ing already created several hundred
thousand jobs this year, the private
sector is forecast to add a total of 1.5m
by 2015, offsetting the 330,000 or so to
be lost in the state sector. It has done
the OBR’s credibility as an independ-
ent force (if not as an accurate fore-
caster) a world of good to have so badly
under-estimated growth for this year.
The big story of 2010 is how well the
UK has done and how it has outper-
formed what many were predicting.
Growth for next year is now seen at
2.1 per cent; for 2012, it is expected to
come in at 2.6 per cent. All highly rea-
redundancies.
However, unions branded the
claims “barefaced lies”. A spokesman
told City A.M.: “The passenger figures
are total fantasy. London
Underground has been running
‘ghost trains’ through closed stations.
“Most stations were closed and TfL
are lying through their back teeth.”
Brown denied the claims, adding:
“The unions have offered absolutely
no evidence that the information we
are providing to help passengers get
around London is anything other
than accurate.”
London Underground
boss Mike Brown
denied allegations he
lied about the number
of tubes running.
VODAFONE CUTS ITS EUROPEAN
ROAMING CHARGES
Vodafone has kicked off a price war
for data roaming that will sharply
reduce the cost of using a smart-
phone abroad. Vodafone has slashed
the price of data roaming to £2 a day
for 25MB, enough to read and reply to
250 e-mails, access Facebook 500
times or download 65 maps. It previ-
ously charged £1 per megabyte.
SHELL DECIDES TO REVAMP ITS
LONDON OFFICES
Shell has started plans to redevelop
its London headquarters on the
South Bank. It has opened discus-
sions with developers on an invita-
tion-only basis about redeveloping
the Shell Centre, built nearly 50 years
ago near Waterloo Station. It houses a
27- storey tower that was the first sky-
scraper taller than the Victoria Tower
at the Palace of Westminster.
sonable figures. The OBR’s verdict
remains that the cyclically adjusted
current budget will be in surplus in
2014-15, a year ahead of schedule. The
forecast may be right – or it may turn
out to spectacularly wrong in the
event of a catastrophe abroad. But the
fact that a relatively benign set of pre-
dictions from the UK’s new official
forecaster haven’t been laughed out of
town shows just how far the British
economy has come over the past year.
WE NEED YOUR HELP
City A.M.’s annual readership survey is
upon us again. This is a vital way for
us to find out what you, our readers,
really want so that we can improve
your paper further. So please help us.
Everybody who fills in the survey will
be entered into a draw to win a trip for
two to a Sandals luxury resort in St
Lucia – and there will also be Bollinger
to be won. Please turn to p9 and
www.cityamsurvey.com – many, many
thanks.
allister.heath@cityam.com
CITY VIEWS: HAVE YOU USED A BORIS BIKE?
MUKESH PATEL | KING WILLIAM NEWS
“I have never used a Boris bike and I wouldn’t
use one, not in the City of London. There are
too many idiots on the roads. It’s just not
safe, people drive with their eyes shut.”
STEVE FARELY | BSKYB
“Yes I use them maybe once a week. I’m not risking
my own bike getting stolen I don’t have to carry lots
around and there’s nowhere to safely lock your
bike up. I think they’re a great idea.”
DJILALI MOHA | QUICK
“I have never used one but I might do. I don’t know
exactly how it works and for the moment I just use
the train. It might be nice to use one at the week-
end but generally I prefer to walk.”
STUDENTS SHOULD GAIN BUSINESS
SPONSORSHIP SAYS DAVID WILLETTS
More businesses should sponsor stu-
dents through university, says David
Willetts, as part of the government's
overhaul of higher education and
workplace training. Willetts told busi-
ness groups at the launch of the gov-
ernment’s growth strategy that
planned reforms of higher education
and workplace training would require
companies to stump up more cash.
STARBUCKS ACCUSES CADBURY OWNER
KRAFT OF DAMAGING ITS BRAND
Kraft, the US owner of Cadbury, has
been accused by Starbucks of damag-
ing its brand as the two firms square
off in a dispute unlikely to be resolved
over a cup of coffee. In the latest salvo
in a fight over Kraft’s right to sell
Starbucks’ packaged coffee in grocery
shops, the firm said Kraft failed to
liaise on marketing initiatives.
CITYA.M. 30 NOVEMBER 2010
Enter our reader survey at
WIN
www.cityamsurvey.com for the chance to
a truly amazing
week-long holiday
FOR TWO
TO ONE OF SANDALS’ LUXURY INCLUDED ® RESORTS IN BEAUTIFUL SAINT LUCIA
today’s somewhat depressed climate,
we realise that the chance to win a
brilliant holiday in the sun is just what
the doctor ordered.
So everybody who fills in the sur-
vey will be entered into a draw for an
all-inclusive trip for two to one of
Sandals' Luxury Included resorts in
beautiful St Lucia, a package which
EDITOR’S LETTER includes return flights
ALLISTER HEATH (see terms and conditions below;
heartfelt thanks to the company for
IT is that time of the year again.
Today, City A.M. begins our annual
readership survey. As a quality news-
paper provided free of charge, it is
important for us to understand who
making this amazing prize possible).
To add further spice to the survey,
we will also be entering survey par-
ticipants into a daily draw to win a
bottle of Bollinger.
We reached our highest ever audit-
our readers are and what you think of ed circulation in October 2010 and
us, and this survey is one of the main have very ambitious plans for the
vehicles we have to achieve this. future. We are by no means finished
We know that many of our growing improving the paper and we are very
band of readers will be keen to help – keen to hear any thoughts or sugges-
and spend just a few minutes filling in tions you may have.
our very simple and straightforward Thanks for reading City A.M., thank
survey at www.cityamsurvey.com – but you for your loyalty and we look for-
as good capitalists here at City A.M. we ward to receiving your feedback at
also believe in incentives. And in www.cityamsurvey.com
www.cityamsurvey.com
WIN A
HOLIDAY
www.cityamsurvey.com
TAKE PART
IN OUR
SURVEY: P9
Interviews by Matthew West
KREMLIN PLAYS DOWN CABLES' TAKE
ON RUSSIA'S ALPHA DOG
Russian officials played down the
release of diplomatic documents that
portray Prime Minister Vladimir
Putin as the dominant ruler in a “vir-
tual mafia state”. Newly posted docu-
ments on the WikiLeaks website
include a US Embassy cable describ-
ing Putin as an “alpha dog” who calls
the shots and President Dmitry
Medvedev as a pale, hesitant figure
who “plays Robin to Putin’s Batman”.
PORSCHE SWINGS TO PROFIT
Porsche said yesterday it swung to a
€155m (£130.6m) net profit in the
first three months of its fiscal year
after suffering a €431m loss a year
earlier, and reiterated that full-year
earnings are expected to be positive
in 2011. It said comparison with last
year was hard as previous figures did
not separate Volkswagen’s earnings.
CITYA.M. 30 NOVEMBER 2010
Taylor hangs
for sale sign
on US branch
▲
PROPERTY
BY MARION DAKERS
HOUSEBUILDER Taylor Wimpey is
putting its North American sub-
sidiary Taylor Morrison up for auc-
tion, and has hired JPMorgan Chase
to advise on the sale, the company
confirmed last night.
The FTSE 250-listed company,
which recently completed a £950m
refinancing, has asked JPMorgan,
one of its corporate brokers, to gauge
market appetite for acquiring the US
housebuilder as the property market
begins to show signs of stability.
Taylor Wimpey said recently its
subsidiary had an operating profit of
£28.2m in the first half of 2010, with
a focus on California, Arizona,
Colorado, Texas and Florida. The firm
said earlier this month it continued
to buy land plots in the US and
Canada, but did not expect to remain
in the region long-term.
The asking price for Taylor
Morrison was unclear yesterday, but
the branch’s landbank in the US
alone was worth $559.6m (£359.8m)
in August.
“We have made no secret that in
the next two or three years we intend
to become a UK-focused company,
and that we will be exiting the US,”
chief executive Pete Redfern told City
A.M. “But we are not in a position to
announce anything soon.”
The UK parent said earlier this
month that profit for the year is like-
ly to be at the top end of estimates
thanks to stable sales and cost sav-
ings, but that the market outlook
remains uncertain.
Some US analysts were unsure that
Taylor Morrison makes an attractive
takeover target.
“My guess is we’re not going to see
a lot of strong bids,” said Stifel
Nicolaus analyst Mike Widner. “The
builders all have plenty of cash on
their balance sheets but the future is
not crystal-clear right now in terms
of volume of sales and how far home
prices are going to fall.”
The Prince is reported to have been “astonishingly candid”
Prince Andrew lashes
out at Saudi arms probe
POLITICS
▲
BY DAVID HELLIER
PRINCE Andrew described an investi-
gation by the Serious Fraud Office
(SFO) into the massive Al Yamama
arms deal with Saudi Arabia as “idio-
cy”, according to Washington’s
ambassador to Kyrgyztan that has
emerged as part of the Wikileaks rev-
elations.
Andrew, who travels as a special UK
trade representative, made his com-
Picture: GETTY
ments during what was described by
Tatiana Gfoeller as an “astonishingly
candid” discussion that “verged on
the rude” at an official engagement
at a hotel in the capital, Bishkek, in
2008.
His attack on the investigation
into alleged payment of kickbacks to
Saudi Arabian officials from BAE
Systems came two years after the SFO
was ordered to discontinue its investi-
gation by the then Labour govern-
ment. The SFO declined to comment.
News 3
WPP backs a
new start for
Lord Mandelson
POLITICS
▲
SIR Martin Sorrell’s WPP has solved
one of the big questions remaining
from the Labour Party’s defeat at the
last election.
The giant advertising-to-marketing
group is taking a minority stake in a
new consultancy firm set up by the
self-proclaimed Prince of Darkness,
giving the ever energetic Lord
Mandelson a new reason to get up in
the morning.
Mandelson, who has served as a
trade commissioner in Brussels and a
trade minister in the UK, will chair
the new company Global Counsel LLP,
which will be run by his former spe-
cial adviser Benjamin Wegg-Prosser.
Sorrell’s backing of the new compa-
ny gives it a strong start.
Mandelson’s career has been not
without unfortunate episodes. He was
twice asked to leave his post in Tony
Blair’s Cabinet.
Last night a source close to WPP
said: “Mandelson courts controversy
but clearly WPP feels that his business
will be a success and it wants to be
part of it. Mandelson moves in the
right circles.”
Some suggested that Finsbury
founder Roland Rudd, a friend of
Mandelson’s and a part of the WPP
group, might have helped the two
men put the deal together.
CITYA.M. 30 NOVEMBER 2010
CHOTE EXPECTS STEADY EXPANSION
ROBERT CHOTE yesterday presented his first outlook report as chairman of the Office for
Budget Responsibility (OBR). He painted a cautious yet optimistic picture, with growth
rising steadily for the term of Parliament. Inflation is expected to fall below target levels
by 2012, once “temporary” factors have worn off, he said.
OBR: Growth
at 2.1 per cent
▲
UK ECONOMY
BY JULIAN HARRIS
THE UK economy will grow by 2.1 per
cent next year, the Office for Budget
Responsibility (OBR) said yesterday, a
cut from its original prediction of 2.3
per cent but still exceeding other fore-
casters.
The OBR also revised down its esti-
mates for 2011 and 2012 by 0.2 per
cent. However, the OBR now expects
faster growth this year – forecasting
that it will hit 1.8 per cent in 2010, up
from the 1.2 per cent estimate in
June’s emergency budget.
Yet Simon Kirby of The National
Institute Economic Review said the
projections were “still too strong
given the weak prospects for Europe.”
Asked if talk of a double dip was
over, OBR chairman Robert Chote
said he expected a “steady albeit slow
recovery over the medium term.”
The anticipated level of govern-
ment sector job losses has plummet-
ed, meanwhile. Aiming more cuts at
welfare reform, the government has
saved 130,000 state jobs.
HOW THE OBR REVISED ITS FISCAL AND ECONOMIC FORECASTS
June prediction
GDP for 2010 1.2 per cent
Deficit for 2010-11 £149bn
Government job cuts 490,000
GDP for 2011 2.3 per cent
GDP for 2012 2.8 per cent
2010 Unemployment 8.1m
2010 Inflation (CPI) 2.8 per cent
Focus on OBR 5
ECONOMIST VIEWS: HAS THE OBR GOT IT RIGHT? Interviews by Julian Harris
SIMON WARD | HENDERSON GLOBAL INVESTORS
“ If anything the GDP projections are not optimistic enough. Fiscal consolidation didn’t stop
growth in the 1990s, and the private sector’s in better shape now than it was then.
ANDREW GOODWIN | ERNST & YOUNG ITEM CLUB
”
“ I’m a little surprised the deficit figure wasn’t revised lower. Growth would have to drop off
quite a bit for the government to miss the target. There’s a good chance it will overshoot.
HOWARD ARCHER | IHS GLOBAL INSIGHT
”
“ This is essentially a case of tweaking rather than changing the story. Having said that March
still looks some way away, especially given all that is going on in the Eurozone.
”
Picture: PA
We understand expat life
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it every day
40°N – New York, USA
Employment is expected to rise by
over 2m in the term of the parlia- 9JGPKVEQOGUVQ[QWTUCXKPIUCPFKPXGUVOGPVUKVoUIQQFVQVCNMVQRGQRNG
ment. “Private sector job creation
more than offsets falling public sec- YJQWPFGTUVCPF[QWTURGEKƂEPGGFUCPFEKTEWOUVCPEGUCPFYJCVKVoUNKMGVQ
tor employment,” the report says. be an expat. As the part of the HSBC Group dedicated to expats, HSBC Bank
Despite the economy expanding
beyond expectations, the OBR showed International has been serving the needs of people living and working abroad
caution by only slightly edging down for over 40 years.
the expected deficit for 2010-11 to
£148.5bn (from £149bn).
The government is on course to r2GQRNGYJQWPFGTUVCPFGZRCVNKHGDGECWUGVJG[FGCNYKVJGZRCVUGXGT[FC[
achieve its fiscal targets, with the
independent spending watchdog cal- r'ZRGTVUQPVJGITQWPFKPMG[NQECVKQPUCETQUUVJGINQDG
culating “a roughly 70 per cent proba-
bility” that the deficit will become a r1HHUJQTGUQNWVKQPUFGUKIPGFVQOCZKOKUGRQVGPVKCNVCZGHƂEKGPEKGUHQTGZRCVU
surplus by 2015-16. Yet it warned that r1PNKPGDCPMKPIVJCVNGVU[QWXKGYCNN[QWTGNKIKDNG*5$%CEEQWPVUYQTNFYKFG
interest payments on government
debt “have risen since August” and and make free transfers between them
could increase further. The national
debt will still “peak at around 70 per Talk to people who understand expat life:
cent of GDP” in 2013-14, said Chote.
“We really need to get real about
the true state of the public finances,” Call +44 1534 616079
warned Eamonn Butler of the Adam
Smith Institute. “The total national Visit www.offshore.hsbc.com/am
debt is crippling.”
The OBR’s central projection shows
the national debt being paid off
around 2050.
Yesterday’s prediction
1.8 per cent
HSBC Bank International is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation,
£148.5bn Investment and Fund Services Businesses and licensed by the Guernsey Financial Services Commission for Banking, Collective
Investment Schemes and Investment Business. Licensed by the Isle of Man Financial Supervision Commission. Deposits and
330,000 KPXGUVOGPVUOCFGYKVJQWTQHƂEGUKPVJG%JCPPGN+UNCPFUCPFVJG+UNGQH/CPCTGPQVRTQVGEVGFD[VJGTWNGUOCFGWPFGTVJG7-oU
(KPCPEKCN5GTXKEGUCPF/CTMGVU#EVHQTVJGRTQVGEVKQPQHTGVCKNENKGPVUKPENWFKPIVJG7-(KPCPEKCN5GTXKEGU%QORGPUCVKQP5EJGOG
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2.1 per cent Scheme as set out in the Banking (Depositors Compensation) (Jersey) Regulations 2009. HSBC Bank International Limited is a
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UWDLGEVVQEGTVCKPNKOKVCVKQPU6JGOCZKOWOVQVCNCOQWPVQHEQORGPUCVKQPKUECRRGFCVKPCP[ƂXG[GCTRGTKQF
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further information on these Schemes, please visit the Important Information section on our website www.offshore.hsbc.com/1/2/
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3 per cent
CITYA.M. 30 NOVEMBER 2010 News 7

GSK to invest over

Chancellor George
Osborne wants a
more competitive
corporate tax
structure

Picture:
Micha Theiner
/City A.M. £500m in the UK
allow the firm to push ahead with

▲
PHARMA
BY KATIE HOPE
GLAXOSMITHKLINE will build its first
new manufacturing plant in over two
decades in response to the govern-
ment’s plan to cut the rate of corpora-
tion tax on income from patents.
The drugmaker said yesterday the
10 per cent reduction in corporation
tax on profits generated from UK-
owned intellectual property will
plans to invest £500m in new manu-
facturing facilities, creating about
1,000 jobs.
The coalition’s plans, originally
drafted by the former Labour govern-
ment, will create a so-called “patent
box” that lowers the tax rate on prof-
its from successful product launches
originating from a patent registered
and then manufactured within the
UK.

Tax on profit
from abroad
faces reform
the last year moved their tax base to
▲

TAX
BY MATTHEW WEST
TAX should not be levied on profits
made from genuine overseas business,
the Treasury said yesterday in a bid to
stem the flow of internationalcompa-
nies moving their headquarters out of
the UK.
Publishing details of its corporate
tax reform programme, the Treasury
said controlled foreign company (CFC)
tax should only be levied on profits
that are artificially diverted away
from the UK, and that it is not
designed to catch a firm’s commercial
offshore operations in the UK tax net.
The proposal was published alongside
plans for a reduction in corporation
tax to 24 per cent from 28 per cent, by
reducing it by one per cent a year
starting in April 2011.
The proposals are designed to sim-
plify the CFC tax regime, which cur-
rently levies tax on profits UK
companies make overseas and which
many businesses have criticised as
being overly complicated and unfair.
Several firms, among them United
Business Media, the advertising
agency WPP, pharmaceutical giant
Shire and Henderson Group, have in
Ireland citing CFC as the main reasons
for doing so. Ireland also has a lower
rate of corporation tax at 12 per cent.
Toby Ryland of chartered account-
ants Blick Rothenberg said while the
discussion paper was a step forward
business had been asking for clarity
for several years without success.
He added given it would take at
least six months for any concrete pro-
posals to be put forward, and a year
before draft legislation, the uncertain-
ty would remain regarding the CFC
meaning businesses “may still be
tempted to move out of the UK”.
But Chris Sanger, head of tax policy
at Ernst & Young said UK companies
would be “breathing a collective sigh
of relief.” “The proposals have ruled
out a restriction on interest, helping
to ensure that the UK remains a stable
environment for companies to invest
in. It will also take the UK one step fur-
ther forward to the coalition’s pledge
of making the UK the most competi-
tive corporate tax system in the G20,”
he said. The government said it
would introduce more targeted rules
in 2012 but that a package of interim
improvements would be introduced
as early as next year.

CORPORATE TAX REFORMS

Q. HOW LONG BEFORE ANY

CONCRETE PROPOSALS?
A. The consultation is likely to last
for around six months. The
Treasury then intends to bring for-
ward permanent reforms to the CFC
regime in 2012. In the meantime the
Treasury is proposing to put forward
interim measures regarding the CFC
regime in a Finance Bill next year.
es to exempt foreign
branch profits in a
Q&A
similar way to the way
in which foreign branch
dividends were exempted in 2009.
However the ABI has already raised
concerns the transitional proposals –
they will only be effective for one
year – will be too complicated and
drive more businesses overseas.

. WHAT IS BEING PROPOSED BY . WILL THE UK REMAIN A SAFE

QTHE GOVERNMENT?
A. The discussion paper puts for-
ward proposals for foreign
branch opt-in exemptions which it
says will simplify the current tax
regime. Currently UK companies are
subject to corporation tax on the
profits of their foreign branches,
with credit given for foreign tax paid
on the same profits, in order to
relieve double taxation. Under the
new proposals The Treasury propos-
QPLACE FOR CORPORATE ASSETS?
A. It would appear the answer is
yes. Despite the move to a more
territorial tax regime, the proposals
do not apply to everything. So, tax
deductions for debt taken out in the
UK and invested offshore, in a for-
eign branch, will not be reformed.
Currently, a company can claim a tax
deduction in the UK for the interest
paid on debt but the UK receives no
taxable return on that investment.
 8 Focus on British Airways
TIME LINE | BRITISH AIRWAYS’ MERGER WITH IBERIA
● 18 July 1997
Iberia confirms preliminary deal on a co-
operation pact with BA.
● 27 October 1998
BA takes a stake in Iberia alongside
American Airlines parent AMR Corp.
Spanish state holding company SEPI,
which owned Iberia at the time, says the
deal was for BA to buy a stake of 8.2 to
9.1 per cent.
● 10 December 2003
BA and Iberia win European Commission
approval to operate a proposed alliance
in the EU.
● 15 November 2006
BA buys American Airlines’ stake in
Iberia for €19m raising its stake in the
Spanish carrier to about 10 per cent.
● 30 March 2007
Texas Pacific Group makes a €3.4bn bid
approach for Iberia, which BA says it will
not contend, but withdraws eight
months later.
● 14 August 2008
BA, American Airlines and Iberia
announce they have agreed to a transat-
lantic tie-up.
● 9 July 2009
Antonio Vazquez replaces Fernando
Conte as Iberia chairman, an appoint-
ment seen as boosting the chances for a
merger.
● 12 November 2009
BA and Iberia announce a preliminary
agreement and look to close the deal by
the end of 2010.
● 14 December 2009
BA reveals a £3.7bn pension deficit,
which becomes a stumbling block in the
merger talks.
● 8 April 2010
BA and Iberia sign a £5bn merger to
create the world’s biggest airline, after
agreeing to tackle BA’s pension problem.
● 29 November 2010
BA and Iberia shareholders agree the
merger at separate extraordinary gener-
al meetings.
BA boss Willie Walsh says the sector needs tie-ups
BA and Iberia
set to merge
▲
TRANSPORT
BY MARION DAKERS
SHAREHOLDERS at British Airways
(BA) and Spanish carrier Iberia rub-
ber-stamped a £5m merger yesterday,
allowing the pair to create a major
player that will compete with rivals
Lufthansa and Air France-KLM.
More than 99 per cent of BA’s share-
holders at a meeting in London yes-
terday backed the deal, meaning the
new International Airlines Group is
on track to start trading on the
London Stock Exchange on 24
January as well as listing in Madrid.
The two airlines recently said they
had already identified 12 possible
acquisition targets to pursue once
they have merged, with Asia seen as a
key region for expansion.
“I think we have a magnificent
vehicle to be in the driving seat of sec-
tor consolidation,” Iberia chairman
Antonio Vazquez told reporters after
Cabin crew in threat to strike
again as Unite ballots members
▲
TRANSPORT
THE UNITE union is getting ready to
ballot 11,000 British Airways cabin
crew on further strikes, it announced
yesterday after the merger with Iberia
was passed by shareholders.
The industrial action is over staff
travel concessions and disciplinary
action linked to previous strikes.
Unite joint general secretary Tony
Woodley said yesterday BA’s “vicious
CITYA.M. 30 NOVEMBER 2010
Picture: Micha Theiner/ CITY A.M
its shareholders’ meeting in Madrid,
but said the company was not yet in
talks with any potential partners.
BA chief executive Willie Walsh
also said the enlarged firm would
pursue further consolidation in the
industry.
The new firm will have more than
400 aircraft on 205 routes, with a
staff of more than 60,000. The two
companies carry close to 60m passen-
gers a year, with joint revenue of
around £12bn.
The airlines also estimate they can
make €400m (£337m) of synergy sav-
ings within five years, while keeping
the separate carrier brands. The firm
will be headquartered in London and
registered in Madrid.
Walsh will head the combined
group, with chief financial officer
Keith Williams moving up to become
chief executive of BA.
Shares in BA closed down 3.9 per
cent yesterday at 261.2p.
war against its workforce” was harm-
ing passengers and the company.
“We will not stand by while this air-
line bullies our members out of their
jobs, and if it takes strike action to
bring BA management to its senses,
then that is the road we must, regret-
fully, travel.”
The union said the ballot should be
concluded in early January, meaning
flights over Christmas will not be
affected by cabin crew strikes.
 Enter our reader survey at
www.cityamsurvey.com for the chance to

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IT is that time of the year again.
Today, City A.M. begins our annual
readership survey. As a quality news-
paper provided free of charge, it is
important for us to understand who
our readers are and what you think of
us, and this survey is one of the main
vehicles we have to achieve this.
We know that many of our growing
band of readers will be keen to help –
and spend just a few minutes filling in
our very simple and straightforward
survey at www.cityamsurvey.com – but
as good capitalists here at City A.M. we
also believe in incentives. And in
today’s somewhat depressed climate,
we realise that the chance to win a
brilliant holiday in the sun is just what
the doctor ordered.
So everybody who fills in the sur-
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making this amazing prize possible).
To add further spice to the survey,
we will also be entering survey par-
ticipants into a daily draw to win a
bottle of Bollinger.
We reached our highest ever audit-
ed circulation in October 2010 and
have very ambitious plans for the
future. We are by no means finished
improving the paper and we are very
keen to hear any thoughts or sugges-
tions you may have.
Thanks for reading City A.M., thank
you for your loyalty and we look for-
ward to receiving your feedback at
www.cityamsurvey.com

www.cityamsurvey.com
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 10 News
NEWS | IN BRIEF
Coop members donate dividends
Cooperative group members are collec-
tively donating £1.2m of their interim
dividend to charity. The 4.9m members
of the scheme have earned £16.9m from
spending in Coop businesses, but half of
all those receiving cash payments have
opted to donate. The money will be dis-
tributed between community groups.
Members usually receive one point for
every £1 spent with the group. Each
point is worth 1p in the interim dividend,
and paid either in vouchers or into a
bank account.
Tax protestors target Topshop
Topshop owner and government effi-
ciency adviser Sir Philip Green has been
named as a target by anti-tax avoidance
protesters. Activists linked to UK Uncut
have scheduled protests at Topshop
branches in Birmingham and
Manchester this Saturday, with more
expected to follow in the run-up to
Christmas, while a group protesting
against education cuts and tax avoid-
ance occupied the pavement in front of
Topshop’s flagship branch on Oxford
Street yesterday. UK Uncut managed to
shut down 20 branches of Vodafone
earlier this month during action against
its tax status in the UK. Sir Philip’s fami-
ly tax affairs came under fire earlier this
year in May when he was appointed by
the coalition to report on waste in the
government.
QUEEN OF THE NET QUITS MORGAN STANLEY
MARY Meeker, the Morgan Stanley internet analyst, dubbed the “Queen of the Net” as
she shot to fame in the 1990s dot-com-boom era, is leaving Wall Street to join the power-
ful venture-capital firm Kleiner Perkins Caufield & Byers as a partner. The firm was one of
the prime backers of the early wave of internet start-ups such as Amazon. Picture: GETTY
BSkyB to launch an
Arabic news station
MEDIA
▲
BY MARION DAKERS
SATELLITE broadcaster BSkyB has
teamed up with the owner of
Manchester City football club to set
up an Arabic news channel based in
Abu Dhabi.
The channel will be Sky’s first for-
eign-language news venture, put-
ting it in direct competition in the
Middle East with BBC Arabic, Al-
Arabiya and state-funded Al-Jazeera.
Man City owner Sheik Mansour
bin Zayed Al Nahyan’s investment
vehicle Abu Dhabi Media
Investment Corp (ADMIC) agreed
after months of talks to fund half of
the joint venture, which will oper-
ate under the Sky News brand.
Sky said yesterday the free-to-air
ANALYSIS l Sky’s news operations around the world
PwC faces a probe
into its auditing of
Connaught’s books
FINANCIAL SERVICES
▲
BY KATIE HOPE
PRICEWATERHOUSECOOPERS (PwC)
faces an investigation into its audit of
collapsed social housing repair firm
Connaught.
The UK accounting regulator, the
Accountancy and Actuarial Discipline
Board (AADB), said yesterday it would
look at the conduct of auditor PwC, as
well as some of its staff, in relation to
the preparation and auditing of the
group’s results for the year to 31
August 2009 and the six months to 28
February 2010.
PwC said it would “co-operate fully
with the AADB investigation”, but
declined to make any further com-
ment.
The accountancy firm is believed to
have only signed off last year’s finan-
cial statement and not the 2010 inter-
channel will begin broadcast across
the Middle East and parts of Africa
from 2012.
BSkyB chief executive Jeremy
Darroch said: “The Middle East and
North Africa is undergoing rapid
development and our partnership
with ADMIC means we are able to
enter this dynamic marketplace
with the support and expertise of a
strong local partner.”
Sky News’ head of international
news Adrian Wells has been drafted
in to help launch the new channel.
Sky said a permanent director of
news will be appointed in due
course.
Dr Sultan Al Jaber, energy con-
sultant for the Abu Dhabi govern-
ment and chairman of Sheik
Mansour’s newly formed invest-
Plan to Operate
in Abu Dhabi
CITYA.M. 30 NOVEMBER 2010
im accounts.
The investigation was prompted by
a request from the Institute of
Chartered Accountants in England
and Wales that the events leading up
to Connaught’s failure be looked into.
The probe is likely to look closely at
the issue of mobilisation costs – costs
incurred when companies bid for
contracts. The expenses can either be
written off upfront, or spread out
over the life of the contract.
Connaught chairman Sir Roy
Gardner announced an internal
investigation into mobilisation costs
in July to ensure “this policy remains
appropriate in its current form.”
PwC began auditing Connaught’s
accounts in 2006, when it took the
contract from KPMG. KPMG is now
administrator of Connaught.
Connaught went into administra-
tion in September this year.
ment fund, will head the new ven-
ture.
Sky broadcasts its UK-based Sky
News channel across Europe, Asia
and the Middle East, and currently
operates standalone news channels
in Germany, Italy, Australia and
India.
News Corporation, which is cur-
rently bidding for the 61 per cent in
BSkyB it does not own, bought a
9.09 per cent stake in Saudi-based
media company Rotana in February.
The firm operates 11 free-to-air
channels in the Middle East.
Ofcom is due to report in January
on whether News International’s
offer to buy the rest of BSkyB
restricts competition.
Shares in BSkyB closed down 0.2
per cent yesterday at 719p.
 V.A.T?
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 The Capitalist
12
NEW FUNDS
PLAN FOR
CRISIS-HIT
IRELAND
IRELAND may have accepted an €85bn
handout to keep it afloat, but why stop
there? The ever-popular Powers That Be in
Ireland seem to have come up with a
novel solution to the country’s solvency
issues.
An advert has appeared on Ireland’s
biggest property website, the appropriate-
ly named daft.ie, offering the Republic of
Ireland for a cut-price €900bn (o.n.o.).
The classified ad, posted by one Brian
Cowen, says the property is available to
move into immediately, with “full plan-
ning permission for 300,000 homes, eight
prisons, five public hospitals, 10,000
schools... as well as hundreds of unfin-
ished road developments”.
It warns the property is “in need of
some refurbishment” but comes with
stunning scenery.
It adds one final point: “Neighbours are
[blank] but can be quite helpful”. Put your
guesses on a postcard addressed to The
Capitalist.
TRUE BLUE SEES RED
MARTIN Broughton (right), the man who
chaired Liverpool Football Club during its
Daft.ie is advertising the Republic of Ireland for a cut-price €900bn
dramatic takeover discussions earlier this
year, was back at the football club he
knows best over the weekend – Chelsea.
Attending an annual fundraising lunch,
the lifelong Blues fan was asked whether
it felt odd rescuing Liverpool, one of his
club’s fiercest rivals, from financial melt-
down.
Broughton sidestepped the question by
turning the spotlight on a couple of
Liverpool’s other advisers. Corporate
lawyer Nigel Boardman, is a massive
Arsenal fan, and the barrister used in the
High Court, Lord Grabiner, supports
Spurs.
A speaker at the lunch was Chelsea
chairman Bruce Buck, a lawyer from
Skadden Arps, who joked that Chelsea
CITYA.M. 30 NOVEMBER 2010
EDITED BY
STEVE DINNEEN
GOT A STORY? EMAIL
thecapitalist@cityam.com
“The
property is in
need of some
refurbishment
but it comes
with stunning
scenery.”
Tony Rudd is an expert on the Battle of Britain
on the transport system as thousands of
staff took to the streets, a triumphant
press release proudly declared: “The
Waterloo & City line is operating across
the full line,” which would be altogether
more impressive if the line wasn’t made
up of only two stops.
Pictures: REX, JUPITER
were indeed interested in buying the site
at Earls Court from property firm Capital
RUDDY GOOD BOOK
CITY folk will be used to receiving
& Counties. one of Tony Rudd’s regular com-
But he said it wouldn’t lead to a move muniques on the state of the
away from Stamford Bridge for the Blues. world. Now Rudd, who has been
Owner Roman Abramovich just wanted blind for many years, has gone
the site to put his yachts in during the one step further. Yesterday saw
winter. publication of the former City
As for Manchester City, he quipped, can broker’s book on the Battle of
you believe they think it is possible to buy Britain. It follows Rudd’s blog
the Premiership? The irony did not go retelling the famous air campaign
unnoticed. through regular diary entries.
Rudd, who was a journalist
before he became a stockbroker, is
YOU TUBES father to Roland, senior partner
TRANSPORT for London yesterday proved of Finsbury and a master spin-doc-
it is a master in the art of polishing the tor, so one might expect a bit of
proverbial turd. Despite widespread chaos media coverage for this one.
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 14 News CITYA.M. 30 NOVEMBER 2010

Peel Hunt staff

BP sells $7bn buyout from
stake in Pan KBC completes

▲
FINANCIAL SERVICES

American unit
BY ALISON LOCK
BROKER Peel Hunt has started life as
an independent entity after complet-
ing a buyout by its staff.
The buyout from former owner
KBC, a Belgian bancassurance firm,
was completed on Friday and values
▲

OIL
BY HARRY BANKS
SHARES in oil major BP closed lower
yesterday after the company said at
the weekend it had agreed to sell its
60 per cent interest in Pan American
Energy for $7bn (£4.5bn).
Analysts welcomed the sale, saying
it was another milestone in the com-
pany’s rehabilitation, as it claws its
way back from its Gulf of Mexico oil
spill, selling assets to cover the expect-
ed $40bn cost.
“The $7.06bn price tag for the asset
base sold is more than fair in our
view,” said ING oil analyst Jason
Kenney.
The deal takes BP close to its target
of raising $25bn to $30bn in asset
sales by the end of 2011, with $21bn
in sales agreed in recent months. BP
has already sold assets in Venezuela,
Egypt and Vietnam. BP has also said it
is looking for a buyer for its gas fields
in Pakistan, and sales which BP
sources said were under considera-
tion include some of BP’s Alaskan
fields and interests in Algeria. BP said
on Sunday that it had agreed to sell
the Pan American stake to Bridas,
which is half owned by China’s
CNOOC and the family of Argentine
tycoon Carlos Bulgheroni. The stake
BP is selling represents reserves of
917m barrels of oil equivalent (boe)
and production of 143,000 boe per
day. BP has said it expects its produc-
tion to fall to 3.5m boe per day, from
four million boe per day last year, as a
result of its divestment programme.
The shares closed down 1.8 per cent at
436p yesterday.
ANALYSIS l BP
460
p
440
420
400
380
6 Sep 24 Sep 14 Oct 3 Nov
Peel Hunt chief executive Simon Hayes said the end of uncertainty was “tremendous”.
and acquisitions for financial institu-
tions in the UK for the past ten years.
He focuses on the asset management
and stock broking sectors and has
LEXICON advised on deals such as F&C’s
PARTNERS £53.6m acquisition of Thames River
Capital this year.
JOE CHAMBERS Prior to joining Lexicon in May
2001, Chambers worked at US invest-
KBC hired corporate finance advisory ment bank Donaldson, Lufkin &
firm Lexicon Partners in September Jenrette, which was acquired by
436.00 2009 to advise on the sale of broker Credit Suisse First Boston in 2000.
29 Nov Peel Hunt. There he specialised in mergers and
Lexicon, which has offices in New acquisitions in the financial institu-
York, Hong Kong and Aberdeen, is an tions sector.
independent boutique advisory firm Prior to Donaldson, Lufkin &
focused on financial services, utilities, Jenrette, Chambers worked for the
infrastructure and energy. Its client corporate finance division of Natwest
list includes Prudential, HSBC, Aviva Markets for two years, and at Ernst &
and Schroders. Young for three years. He has a degree
Joe Chambers, a managing director in management science from UMIST
at Lexicon, has specialised in mergers and is a chartered accountant.
23 Nov
the company at £74m – a third of the
£218m KBC bought it for in 2001.
Peel Hunt’s employees own 75 per
cent of the new firm’s equity while 25
per cent is owned by private investors
including entrepreneur Neil Utley.
It ends months of speculation over
Peel Hunt’s future after KBC put it up
for sale last September.
Simon Hayes, chief executive and
co-managing partner at the new Peel
Hunt said it was “tremendous” to
have the uncertainty removed.
He said it was now “business as
usual” as Peel Hunt would continue
to focus on small and mid-cap compa-
nies as when it was KBC-owned.
The decision to sell Peel Hunt fol-
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advise on the sale. By July the man-
agement had secured the required
investment and an estimated 75 per
cent of the company’s 126 employees
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 16 Focus on Sovereign Debt Crisis CITYA.M. 30 NOVEMBER 2010

Irish banks soar but

analysts are sceptical
As a result, Dublin will almost cer- required capital from its own
▲

EUROZONE CRISIS
BY STEVE DINNEEN
SHARES in Ireland’s stricken banks
soared yesterday as the market react-
ed positively to its bailout plans.
Bank of Ireland gained 16.6 per cent
and Allied Irish Banks gained 3.8 per
cent amid hopes the rescue package
can keep the banking system afloat.
However, analysts are sceptical that
the initial injection will be enough
and say the government’s plans are
not well enough defined.
Ireland was last night thrashing
out the details of how its banking sys-
tem will make immediate use of the
€10bn (£8.4bn) of capital made avail-
able to it yesterday.
In a bid to boost confidence in Irish
lenders, the central bank raised its tar-
get core Tier 1 capital ratio, a measure
of financial strength, to 12 per cent
from eight per cent, with even stricter
requirements on some lenders.
tainly end up effectively nationalis- resources.
ing Allied Irish Banks, once the The bank said the plan to overcapi-
country’s largest-listed lender, which talise Irish lenders will reassure for-
the central bank wants to maintain a eign investors.
core Tier 1 ratio of 14 per cent. Irish Life is the only Irish lender to
It requires a further €5.3bn on top avoid a state bailout and was not
of the €4.5bn it had already been told required to transfer any loans to the
it would need. country’s “bad bank”.
The state will be also forced to Ireland has earmarked €35bn in
acquire a majority stake – estimated total to help restructure the banking
at around 60 per cent – in Bank of sector.
Ireland as the lender struggles to
meet the fresh capital requirements. ANALYSIS l Bank of Ireland
Bank of Ireland will require €2.2bn
€
extra, which it says it will attempt to 640
raise itself. 620 0.31
Irish Life & Permanent says it will 29 Nov
not need to dip into the Irish bank 580
bailout fund to meet the capital
requirements. 540
The lender must raise €100m by
the end of May to meet the 12 per 500
cent core Tier 1 capital ratio but it
says its banking arm will raise the 6 Sep 5 Oct 3 Nov

Bondholders must take a haircut IMF admits it

Eurozone and our exports are likely to
become considerably less competitive
as the euro depreciates against ster-
ling. As William Hague never quite
put it, “We are out of the euro, but not
free from the influence of the euro”.
tially a political gambit – much of
their borrowing had been funded by
institutional investors and the risk of
contagion in the event of their col-
lapse was deemed too great. Yet in a
“heads we win, tails you lose” inver-
should have
In this low-to-zero interest rate envi-
ronment (a deceptively benign state
which provides a strong disincentive
to foreclosure) many banks, both
done better
domestically and in mainland Europe,
still have huge unquantifiable toxic
▲

The present panic in Ireland, so we
are told, has been inflamed by the
German chancellor Angela Merkel’s
GUEST COMMENT unilateral announcement that bond-
MARK FIELD MP holders should take a share of the
responsibility for the costs of restruc-
turing sovereign debt, not just
sion of traditional capitalist practice,
bondholders have now come to expect
– and continue to receive – a taxpayer
funded bailout. This cannot go on.
Further sovereign default in the
Eurozone risks leaving European gov-
ernments without either the financial
“assets” on their balance sheets.
Other sovereign nations faltering
would most likely precipitate a
renewed credit crunch. Then it is diffi-
cult to see how small and medium
British firms can play its crucial part
in the export-led, private sector recov-
EUROZONE CRISIS
THE International Monetary Fund
(IMF) has admitted it should have
done better in predicting the banking
and property crisis in Ireland that
precipitated its €85bn (£72bn) rescue

F
OR the financial markets the
Irish crisis is almost history. The
show has now moved remorse-
lessly on to more central players –
Portugal, Belgium and Spain and,
before long, perhaps even to Italy.
Outside the single currency the UK
may smugly stand, but this unfolding
debt crisis threatens to engulf us with
merciless disregard. Some 55 per cent
of our external trade is with the
European taxpayers. Yet to place
blame on German shoulders is to
shoot the messenger. Without a mech-
anism for sovereign-debt default,
investors enjoy a perverse incentive to
pump ever more money into the riski-
est economies. This will only be pre-
vented if bondholders take an
enforced haircut.
At the time of the September 2008
crisis, the bailout of banks was essen-
capacity or political stock to let
investors off the hook next time.
For all the commentary to the con-
trary, it would be unwise yet to con-
clude that we are witnessing the
demise of the euro. It is hard to see
how Greece or Ireland might ever
again be able to finance their debt in
the global capital markets if expelled
from the Eurozone. But it is not hard
to envisage a fresh banking crisis.
ery on which all our hopes for eco-
nomic growth are pinned.
Conservative backbench critics of
the Irish bailout are consoled by their
clear understanding that British assis-
tance would not have been offered to
Portugal, Belgium or Spain.
Perhaps this faith will soon be put
to the test.
Mark Field is MP for the Cities of London &
Westminster
package. Deputy director of the IMF’s
European department Ajai Chopra
said in an interview with the
Financial Times: “There is no ques-
tion that we – and other observers –
could have done better. But it’s very
much a balancing act.
“We have to be careful that we
don’t end up predicting nine of the
next two crises, or that we precipitate
what we’re trying to avoid.”
CITYA.M. 30 NOVEMBER 2010 Focus on Sovereign Debt Crisis 17

A passer-by walks ANALYSIS l CDS spreads at Bank of Ireland and Allied Irish
past graffiti of
Irish finance 1,600
minister Brian
Lenihan and prime 1,400
minister Brian AIB Bank of Ireland
Cowan yesterday. 1,200

1,000
Picture: REUTERS
800

600

400

200
2010 14 Jun 28 Jun 12 Jul 26 Jul 09 Aug 23 Aug 06 Sep 20 Sep 04 Oct 10 Oct 01 Nov 15 Nov

ANALYSIS l Irish sovereign debt as % of total non-linked assets

Source: Company data, Nomura research

1%
Munich Re
1%

1%

1%

ZFS
1% Generali
AXA
0%
Fondianria Hannover Re

0% Swiss Re
Aegon Allianz Aviva Prudential L&G Old Resolution SCOR St Standard
Mutual James Life
0%
1.2% 0.6% 0.5% 0.4% 0.3% 0.3% 0.1% 0.1% 0% 0% 0% 0% 0% 0% 0% 0% 0%

Greece gets loan extension Munich Re is exposed to Oil reaches two

as Italian yields surge higher €2.4bn of Irish bonds week high on
back of bailout
▲

EUROZONE CRISIS
▲

of finance ministers on Ireland on EUROZONE CRISIS Greece and Spain.

Sunday. It has a total of €56.3bn sunk into
MUNICH Re is exposed to €2.4bn (£2bn) sovereign debt, with €44.4bn in Italy
▲

GREECE will have until 2021 to repay
its €110bn (£92.7bn) EU/IMF bailout
loan, the country’s finance minister
said yesterday.
In return, Greece will have to pay a
higher fixed interest rate of about 5.8
per cent from 5.5 per cent, George
Papaconstantinou said.
“The repayment, which was now until
2015, will go to 2021 ... we have a grace
period of four years and a repayment
period of seven years,” Papaconstantinou
said. “The decision is very important, it
opens the way to return to markets earli-
er than expected.”
An informal deal to extend the
repayment was reached at a meeting
The extension came as Greece was
forced to step in yesterday to end a
week-long maritime strike, which left
ships and passengers stranded at
ports and disrupting supplies of food
and medicine.
Meanwhile, Italy moved closer to
the firing line yesterday after a disap-
pointing bond auction forced it to
offer bond yields of 4.61 per cent.
The Italian government raised
€6.8bn on debt securities due to
mature in 2013, 2017 and 2021.
The yields were significantly high-
er than at a previous auction. The 10-
year securities at one point jumped as
high as 21 points to 4.61 per cent.
of Irish government bonds – around 1.2
per cent of its total non-linked assets
(see chart above).
However, exposure to the Irish crisis
is not as bad as some feared, according
to data from Nomura.
Munich Re’s exposure is double the
next most exposed insurer, ZFS, which
has 0.6 per cent of its non-linked assets,
or €1.2bn, in Irish sovereign debt.
Generali is third with 0.5 per cent of
non-linked assets, or €1.8bn exposed.
However, Generali is by far the most
exposed to sovereign debt across all
five crisis hit peripheral Eurozone
countries – Portugal, Ireland, Italy,
alone. Axa has the second largest over-
all exposure to the five countries with
€30.1bn. Munich Re has a total of
€12bn. Reception to the Irish bailout
package was muted in bond markets,
with little movement. However, insur-
ers performed well, with Prudential put-
ting on 14p to 591p and Aviva adding
8.1p to 377.8p.
New Munich Re EMEA
chief executive Andrew
Rear will closely monitor
his firm’s exposure to
Irish government debt
EUROZONE CRISIS
OIL rose to a two-week high yesterday
on the back of the Irish financial res-
cue. However, persisting worries about
the health of other Eurozone mem-
bers trimmed some of the gains later.
Worries that a spreading crisis with-
in the Eurozone would keep a lid on
growth and hence energy demand
have helped pressure commodities
prices over the last week, pulling
down oil from a two year high of
$88.63 on 11 November. US crude for
January traded one per cent up to
$84.59 a barrel after rising 1.5 per cent
to a high of $85.03 earlier.
 18 News
Better Capital promises more
deals after a strong first year
▲
PRIVATE EQUITY
BY ALISON LOCK
JON Moulton’s turnaround house
Better Capital reported encouraging
progress in its first interim results
yesterday.
Moulton, founder and managing
partner, said they were “quite pleased
with the progress to date.”
It has committed £57.5m to four
firms: Gardner, RD Precision,
Reader’s Digest and Calyx. The portfo-
lio generated a profit of £3.5m in the
period.
Analysts say the fund currently
generates a 12 per cent premium
compared to its net asset value.
The fund, launched in November
2009 at 100p a share, raised more
money in June at 110p a share, taking
the total fund to £210m.
“With the initial restructurings
well under way and proceeding gen-
erally according to plan, coupled with
the impressive early results of
Gardner, progress so far is encourag-
ing,” said Better Capital’s chairman
Richard Crowder.
Moulton said the fund, which takes
majority stakes in distressed compa-
nies, was targeting “companies that
have got the opportunity to do better,
and need extra capital and a change
in management to get there.”
The fund should be substantially
invested by the end of 2011, through
between four and ten deals, Moulton
said.
Jon Moulton is looking for more deals next year
City business
still booming
▲
FINANCIAL SERVICES
BY MATTHEW WEST
BIG four accountancy firm
PricewaterhouseCoopers has main-
tained its lead as the firm with the
highest number of FTSE clients in the
third quarter ended 4 November,
according to the latest research from
business data firm Hemscott.
The Hemscott Corporate Advisers
Rankings Guide, which is published
quarterly, also revealed yesterday that
public relations agency Brunswick
had gained clients in four out of the
last five quarters and that Canaccord
Genuity had jumped six places in the
overall City financial adviser rankings.
Ernst & Young, the lowest-ranking
of the Big Four in terms of its number
of FTSE 100 clients, saw the addition of
a new client to its roster in the last
quarter from 17 to 18 put it in the best
position it has been in for three years
in the FTSE 100 rankings.
Overall, PricewaterhouseCoopers
kept its number one ranking with 39
RANKING BY NUMBER OF FTSE 100 CLIENTS
RANK PREVIOUS AUDITOR
RANK
1 1 PRICEWATERHOUSECOOPERS LLP
2 2 KPMG
3 3 DELOITTE
4 4 ERNST & YOUNG LLP
5 5 BDO LLP
CITYA.M. 30 NOVEMBER 2010
Picture: Micha Theiner/City A.M.
FTSE 100 clients, KPMG stayed in second
place with 24 clients, and Deloitte
stayed in third after losing a client and
ending the quarter with 20.
Meanwhile, public relations firm
Brunswick continues to lead the
Hemscott table for the largest number
of FTSE 100 companies it advises having
won clients in four or the last five quar-
ters and with almost a third (29) of FTSE
100 firms on its client roster.
Among the top law firms Slaughter
and May remains in first place for FTSE
100 clients extending its lead by one
client during the quarter and raising its
tally to 28. Third-placed Freshfields
secured one new client in the quarter.
In the overall rankings among
financial advisers, Canaccord Genuity
produced the largest client win of the
quarter adding 12 new clients, taking
its client list to 48. These client wins
meant the broker jumped six places in
the Hemscott rankings from 18th to
12th, one place behind FinnCap,
whose own four client wins over the
quarter brings its tally to 55.
FTSE 100 PREVIOUS
CLIENTS NOW TOTAL
39 39
24 24
20 21
18 17
1 1
CITYA.M. 30 NOVEMBER 2010 Economic News 19

UK housing slump continues

UK ECONOMY new buyers registered with agents. increased to £1bn from £0.2bn. And

Mervyn King’s Bank had bad news for housebuyers
Picture: Micha Theiner/City A.M.
▲
BY JULIAN HARRIS
MORTGAGE approvals reached an
eight-month low in October, accord-
ing to official data released yesterday.
The Bank of England’s lending fig-
ures showed that only 47,185 mort-
gages were approved. A healthy UK
housing market would record closer
to 80,000 mortgages per month.
The news pours more misery on
the housing market, after recent fig-
ures showed a similar decline.
On Sunday the property website
Hometrack reported a 4.3 per cent
fall for November in the number of
Their survey also showed a fall in
house prices for the fifth consecutive
month, as prices dropped by 0.8 per
cent on October.
And last week the British Bankers’
Association (BBA) announced a 19-
month low in mortgages approvals
for October, mirroring the Bank’s fig-
ures.
“House prices will trend down to
lose around 10 per cent from their
peak 2010 levels by the end of 2011,”
said Howard Archer of IHS Global
Insight.
However, the data held some posi-
tive news, as net mortgage lending
according to Richard Sexton of char-
tered surveyors e.surv, this reflects a
tiered housing market in which
wealthy people are continuing to buy.
“Approvals are actually up for the
most expensive properties,” he
explained. “Wealthy buyers are using
large deposits to side-step lending
restrictions.”
The Bank also revealed that con-
sumer credit picked up in October,
rising to £287m from £72m in
September. While the rise appears
positive, it had been forecast by econ-
omists and is still well below long-
term levels.

OECD: Better
run NHS could
save billions
Ageing populations are placing
▲

HEALTH
BY JULIAN HARRIS
NATIONAL Health Service (NHS) inef-
ficiency is the third worst among
peer countries, according to a new
study released yesterday.
Only Greece and Ireland’s health-
care sectors had more scope for effi-
ciency savings, according to the
Organisation for Economic Co-opera-
tion and Development (OECD).
The UK came out well below the
OECD average.
The study gathered data from 29
countries, evaluating the return on
investment into healthcare provision.
Health services are facing tight-
ened budgets as governments deal
with the global economic slowdown,
“reinforcing the need to improve
healthcare efficiency,” said OECD sec-
retary-general Angel Gurria.
The report claims costs can be
reduced in many OECD countries by
almost two per cent of GDP, while the
NHS could achieve savings in excess
of three per cent of GDP.
“Healthcare averages 15 per cent of
government spending across the
OECD, and costs are still rising,” said
Gurria.
pressure on budgets, while expensive
technological advances are often too
expensive for government depart-
ments.
In 1999 the government set up the
National Institute for Health and
Clinical Excellence (NICE) to ration
treatments.
The OECD’s conclusions were
echoed by Nick Seddon of the think
tank Reform. “Competitive pressure
is a very good way to improve per-
formance,” he said. “And inequalities
are actually lower in market-based
systems.”
Last week the NHS released a map
of the UK revealing stark variations in
quality, he said.
The NHS is one of two government
departments to have its budget “ring-
fenced” by the Coalition, a move criti-
cised last week by the Treasury Select
Committee.
The Department of Health’s budget
is expected to increase by 1.3 per cent
over the next four years.
Out of the OECD countries sur-
veyed, patients in Australia, Japan,
Korea, Switzerland and Iceland get
the best health outcomes for money
spent.

Eurozone sees CSR provokes

boost in morale consumer fears
▲

EU ECONOMY
EUROZONE economic sentiment rose
to a three-year high in November, the
EU announced yesterday.
Despite problems in the periphery,
the Economic Sentiment Indicator
(ESI) rose by 1.5 points in the 16-coun-
try currency block. It also increased
by 1.3 per cent across the EU.
The results were boosted by a
strong German increase of 2.8 points,
while UK improvement was less pro-
nounced, at 0.5 points.
The news came as the European
Commission revised up its projection
for German GDP growth for this year
to 3.7 per cent.
ECONOMY
CONSUMER confidence in the UK
tumbled in November, according to
European Commission (EC) data
released yesterday.
The indicator dropped to an 18-
month low of -18.4. The news comes
as a surprise after recent figures
showed a boom in retail sales shoot-
ing upwards.
The EC findings were “undoubtedly
the consequence” of the coalition’s
spending review, according to
Howard Archer of IHS Global Insight.
“Consumers are worried about how
they could personally be affected by
the cuts,” he said.
 20 News
Companies hit
buyout trail as
cash piles up
▲
M&A
BY MARK POTTER AND SIMON FALUSH
COMPANIES sitting on a global cash
pile of about $4.3 trillion (£2.76 tril-
lion) are set to fuel a pick-up in
takeover deals and handouts to share-
holders, providing a prop for equity
markets in an uneven recovery.
Asian businesses, bolstered by the
strength of their domestic economies,
are likely to be most active in mergers
and acquisitions (M&A) and capital
spending, analysts believe.
Firms in Europe and the United
States will also look for M&A deals as a
quick route to boosting earnings, but
are likely to hand more cash back to
shareholders and focus less on capital
spending.
“We are now seeing companies raise
dividends and spend on M&A, but we
do see hesitancy on the capex side and
we see that continuing,” said Ad van
Tiggelen, senior strategist at ING
Investment Management.
He predicted 2011 would be the best
year for M&A deals since 2007, with
CITYA.M. 30 NOVEMBER 2010
ANALYSIS l M&A activity by type of
1,000 $bn
800
600
consideration offered
Stock only
Cash and stock combination
Cash only
400
200
0
1998 2000 2002 2004 2006 2008 2010
ANALYSIS l Company cash as a percentage of
assets
Cash and equivalents as % Cash and equivalents as %
40 of total current assets of total current assets
S&P 500 average
35
30
dividend increases the highest for 25
three or four years, helping to under- MSCI Asia Pacific average
pin equity markets. 20
Europe Stoxx 600
According to Thomson Reuters data,
15
companies outside the financial sector 1995 2000 2005 2010 1995 2000 2005 2010
(where cash is often held as a regulato- ANALYSIS l Global M&A activity by acquirer
ry requirement) are sitting on cash region
and short-term investments worth Acquirer ultimate Total deal value 2010 YoY %
parent region YTD -$ bn change
$1.88 trillion in Asia, $1.3 trillion in
the United States and $1.17 trillion in Americas 853.7 +4.1%
Europe.
These figures all represent a higher Europe 584.7 +21.0%
proportion of companies’ total assets
Asia-Pacific 403.9 +55.2%
than at any time for 20 years as firms
built up a buffer against a deep eco- Japan +14.0%
114.6
nomic downturn and a crippled bank-
ing system. Africa/Middle East/ 72.5 +22.2%
Central Asia
China Mobile has amassed the
biggest net cash hoard of $42.7bn, Steve Ballmer, Eric Schmidt and Steve Jobs are sitting on a combined $90.4bn in cash Graphics: Thomson Reuters
ahead of Microsoft with $33.5bn,
Google $31.3bn, Apple with $25.6bn But he thinks companies will start finance director of a European multi- 9.4 per cent, down from a 23 per cent
and Cisco Systems with $23.6bn. putting some cash to use as long as the national company that has more than increase last year, and less than the
Jim Wood-Smith, head of research world avoids major shocks, if only $300m of cash on its books, speaking average rise for the past 10 years.
at investment manager Williams de because it is earning such poor returns on condition of anonymity. At the same time, M&A deals
Broe in London, believes there are amid low interest rates. There are already signs this is start- involving US companies have risen 16
good reasons for firms to keep cash “You’re earning next-to-nothing (on ing to happen. per cent in value, and share buybacks
levels high amid fears the Eurozone cash), so you've got to be looking at In the first nine months of this year, have more than doubled to $250bn,
debt crisis will spread. ways of making it work,” said the cash held by listed US companies rose according to Thomson Reuters data.
CITYA.M. 30 NOVEMBER 2010
Walmart set
to pay £1.5bn
for Massmart
RETAIL African management after the deal.
▲
BY HARRY BANKS The two companies said in a joint
statement Wal-Mart would pay 148
WALMART is to pay 16.5bn rand rand per share for a 51 per cent stake
(£1.5bn) for control of Massmart, giv- in the South African company, which
ing the world’s largest retailer a sub- has a presence in 14 countries in
stantial presence in South Africa and Africa.
paving the way for further expansion Wal-Mart said in September it was
across the continent. looking to buy up to all of the South
The Wal-Mart tie-up will help dis- African retailer, but scaled that back
count retailer Massmart speed up to more than 50 per cent – to ensure
expansion in sub-Saharan Africa and it took control – last month.
increase its food retailing business,
the South African company’s chief ANALYSIS l Massmart
executive said yesterday.
rand
The deal will also likely pit Wal- 140 142.00
Mart, which has long battled with 26 Nov
130
organised labour in the United
States, against South Africa’s power- 120
ful trade unions, some of which have 110
threatened to strike against the US
100
giant.
Massmart’s chief executive, Grant
Pattison, said the company would
90
retain its local listing and South Mar Jul Nov
CITY MOVES | WHO’S SWITCHING JOBS
CBRE Investors
The global real estate investment management
firm has announced the appointment of Jean
Lamothe as President of CB Richard Ellis
Investors Europe. Jean will be responsible for
the strategic direction, operations, financial
results, day-to-day management and leadership
of the firm’s pan-European platform, including
the UK. He also will oversee the existing direct
investment programmes.
portfolio manager of its German Retail
Cordea Savills Fund. Christian has been a Senior Asset
The international property fund manag- Manager for Cordea Savills, based in
er has promoted Christian Haertl to Munich, since October 2007. He has had
To appear in CITYMOVES please email your career
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
updates and pictures to citymoves@cityam.com
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Walmart boss Mike Duke is pushing into emerging markets Picture: REUTERS
It’s all about the margins
EMERGING markets might be boom- cent over the last ten years. Walmart
ing, but South Africa seems, at first is unlikely to boost the top line
glance, an odd place for Walmart to much faster, but its record of margin
expand. Inflation is in the high sin- expansion will serve it well.
gle digits; unemployment is at 20 Massmart’s ebitda margin is at 4.9
per cent; and the workforce is highly per cent, compared to 6.5 per cent at
unionised. its American suitor. If executives can
Massmart, South Africa’s third bring down costs (no mean feat
largest grocer, is not without prom- when one considers the power of the
ise, however. It offers Walmart a trade union) this deal could yet
route into 13 near-by countries, come good.
which are expanding far more quick-
ly than their developed neighbour.
Sales at Massmart are already
growing quickly, averaging 15.5 per
BOTTOMLINE
Analysis by David Crow
Edited by Steve Dinneen in association with
responsibility for German retail proper- tion of Gartmore’s product range to
ties held within three funds. Prior to leading Institutions around the world.
Cordea Savills, he was with BVT Prior to Gartmore, he was Group
Holding, where he managed several Marketing and Product Development
German closed-ended real estate funds Director at INVESCO UK, where he was
aimed at private investors. responsible for marketing and product
strategy. Prior to INVESCO, Angus held
Matrix Group a number of senior marketing positions
The privately owned financial services at HSBC Asset Management.
business has announced the appoint-
ment of Angus Woolhouse as chief Gextech
executive of its Asset Management The provider of interactive gaming con-
division. tent to betting and lottery operators
Angus Woolhouse was most recently announces the appointment of Jamie
Head of Global Institutional Business at Maskey as Managing Director. He will
Gartmore, where he was responsible take responsibility for all of Gextech’s
for the sales, marketing and distribu- operations with immediate effect.
Boisdale of Belgravia,
15 Eccleston Street,
Belgravia, London SW1W 9LX
Tel: 020 7730 6922 Fax: 020 7259 1257
www.boisdale.co.uk
News 21
Starbucks stirs
up trouble over
Kraft deal
CONSUMER
▲
KRAFT Foods yesterday said it is seek-
ing arbitration in its fight with
Starbucks, which is trying to end a
deal under which Kraft sells packaged
Starbucks coffee to grocery stores.
Starbucks accused Kraft of failing to
meet certain provisions of their
arrangement, including keeping
Starbucks involved in major market-
ing initiatives.
Kraft, which has overseen the
growth of the packaged coffee busi-
ness from $50m (£32m) to $500m in
annual sales, in turn accused
Starbucks of trying to walk away from
their partnership without honoring its
conditions.
Starbucks, which is also pushing for
sales growth of its Via instant coffee,
has made no secret of a desire to exert
more control over its consumer pack-
aged-goods business.
Yesteday, the company said it has
exercised its right to end the relation-
ship due to Kraft’s failure to fix the
alleged breaches of their partnership.
It expects to assume direct responsibil-
ity for the packaged-coffee business in
March.
Kraft said it recognised Starbucks’
right to take over the business but said
the deal calls for Kraft to get sufficient
time to prepare for any transition.
Maskey has over twenty five years of
experience in the gaming and media
sectors, most recently at Finsoft, the
gaming industry’s leading supplier of
risk management solution.
Fat Prophets
The independent research and invest-
ment management specialist, has
appointed David Lennox as its new min-
ing analyst. David joins with thirty
years experience in research covering
Australian resource and industrial com-
panies. Previously he held analyst posi-
tions at big name firms including Aegis
Research, Washington H Soul Pattinson
and Centric Wealth.
+44 (0)20 7557 7245
morganmckinley.com
 22 News WORDS BY MARC SIDWELL CITYA.M. 30 NOVEMBER 2010

Lady liberty has found her sense

of humour – PJ O’Rourke checks in
The great satirist “I read the EU
talks about his new Constitution.
book and laments It has clauses
the stupidity of about the
American politics specifics of
edible meat
offal. It’s
P
OLITICIANS,” growls PJ O’Rourke,
“don’t understand finance at all –
even the last little bit. Yet they’re round the
increasingly in charge of it.”
America’s greatest living satirist is bend.”
back in town and training his anger on
the political enterprise. His new book is
titled Don’t Vote! It Just Encourages The
Bastards. The idea of politicians setting
themselves up to manage the financial
industry brings out particular scorn. He
sees the regulators locking the stable
door behind the problems of 2008 with
little recognition that it is a different
horse that bolts in every crisis.
But in the end what makes him laugh
the hardest is the idea of the men in grey
suits trying to battle with the City’s
finest. “On one side you have the
smartest people in the world, ferociously
motivated. On the other you have a
group of average-to-reasonably smart
politicians and regulators. Who’s going
to win?” He throws up his hands.
He gives the example too of Bernie
Madoff, who, he argues, the SEC missed
plenty of opportunities to catch because
of the limits of those running it.
“Christopher Cox is the smartest guy in
Congress. But he’s a lawyer.” Madoff was
caught by a mathematician, O’Rourke
says, who needed just four minutes to
see that the numbers were suspect and
just four hours to run the algorithms to
show they definitely didn’t add up.

LEFT WITH THE TOUGH STUFF

It’s not that O’Rourke thinks that poli-
tics cannot achieve anything, though his
staunchly libertarian politics are on the
side of politics doing far less. Instead, he
argues that politics may have reached its
limits. “It’s not stupid to think that poli-
tics is an effective tool. But its time is
coming to an end because the easy prob-
lems for free and democratic societies
have been solved: slavery, equality before
the law; near-universal franchise; the
defeat of massive dictatorships. We’re
left with the tough stuff.”
It’s an interesting argument, going
further than those who see in our cur-
rent problems only a lack of actuarial
care behind politicians’ promises that
has left them temporarily overdrawn.
O’Rourke suggests that there may a natu-
ral limit to what we can ever ask politics
to solve on our behalf. Europeans, he
adds, are far too fond of politics as the
principal tool of problem-solving. “I read
the EU Constitution – it has clauses
about the specifics of edible meat offal.
It’s round the bend.”
On America’s politics, O’Rourke is
more equivocal. He is “pretty pleased”
with the results of the midterms, with
their startling repudiation of Democrat
policies, but he wonders how long it will
all last. “Have people really come around
to the conclusion that government can
be too large, or are they just arguing over
how government largesse is distributed?
It’s too early to say.”
That said, O’Rourke is impressed with
the Tea Party, though as a personal
friend of John McCain it is probably
unsurprising that he shrinks from the
idea of one of the Tea Party’s leading
lights – Sarah Palin – running against
President Obama in 2012: he suggests it
would be an act of “random self-destruc-
tiveness” by Republicans.
AS SERIOUS AS IT GETS
Its deeply-felt opinions make this book,
as O’Rourke admits, oddly his most seri-
ous yet – even more so than his digested
version of Adam Smith’s Wealth of
Nations, which at least interpreted the
sage of Kirkcaldy by such examples as
the size of Angelina Jolie’s earning
power. This book is “as serious as I get” –
though that just means even the most
serious sentiments are slashed through
with O’Rourke’s trademark wit. “We
can’t treat the American government
like mom, expecting her to get us off to
kindergarten in the morning, fix our
meals, wash the dishes, fold the laundry,
keep our house clean and our grandpar-
ents happy, do the shopping and the gar-
dening, and still somehow make herself
interesting to dad. That’s why mom
snapped and started drinking and got in
that car wreck.”
Indeed, for O’Rourke, the humour and
his political views go hand in hand. It’s
PJ O’Rourke speaks to notable that both he and Dave Barry, two by P. J. O'Rourke is published by Grove Press
City A.M. at the One of America’s greatest masters of prose (UK) £16.99 hardback
Alydwich hotel humour, are avowed libertarians.
O’Rourke says the two have discussed it.
Picture: For him, “the libertarianism comes from CV | PJ O’ROURKE
Micha Theiner humour”. Having a strong sense of
/City A.M. humour helps keep things in proportion
– a certain flair for deflating human Age: 63
arrogance makes it harder to read the
communist manifesto with a straight Born: Toledo, Ohio
face. “Have you ever read Mein Kampf?
“We can’t It’s like a bad cocktail party where the
wine is domestic and warm and you’ve
Lives: New Hampshire,
treat the been backed into a corner by a bore with
absolutely no sense of humour at all.”
Family: Married with three children
American It is thirty-six years since O’Rourke’s
first book was published, but he is as
Education: BA Miami University, Ohio,
MA John Hopkins University, Maryland
government good company as ever. The Republican
Party Reptile has become America’s
Books: CEO of the Sofa; Eat the Rich; On
like mom, equivalent of the great French liberal
Frederic Bastiat, a voice of economic con- The Wealth of Nations; Parliament of
Whores
expecting science, explaining the hard lessons of
the free market in words that everyone
her to get can understand and enjoy. As the epi-
graph from Horace in O’Rourke’s
Wisdom: “Giving money and power to gov-
ernment is like giving whiskey and car
us off to Parliament of Whores says, “What stops
a man who can laugh from speaking the
keys to teenage boys”, “Earnestness is stu-
pidity sent to college”
kindergarten” truth?”
Don't Vote! It just encourages the Bastards
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 24 News
Barrick hits
gold deposit
in Tanzania
▲
MINING
BY MARION DAKERS
AFRICAN Barrick Gold has found
greater-than-expected amounts of
high-grade gold in its Nyanzaga proj-
ect in Tanzania, it said yesterday.
The FTSE 100-listed miner said the
results of its drilling were “very excit-
ing and increase the potential for
Tusker to add to our future growth
profile”.
The gold deposits are closer to the
surface and a better grade than origi-
nally thought by the previous owner
Tusker Gold, which declared a
deposit of around 4.2m ounces in
June 2009. African Barrick took sole
ownership of the site in May after
buying out Tusker, and began an
intensive hunt for gold in late July.
The miner pledged to accelerate its
drilling programme at the project
after the good results, and is now
moving a third drill to the site. It
expects exploration work to continue
until 2011.
BEST OF THE BROKERS
African Barrick last month sus-
pended some operations and slashed
forecasts at its Buzwagi mine in
Tanzania after uncovering a fuel
theft ring, which knocked 10 per cent
from its share price. Shares closed
down 1.56 per cent at 503p, erasing
earlier gains of two per cent.
The firm is trading at 12.5 per cent
below its float price, after it was spun
off from Barrick Gold, the world’s
biggest goldminer, in March.
Canadian parent Barrick Gold retains
a 74 per cent stake in African Barrick.
ANALYSIS l African Barrick Gold
p through securities vehicles, and believes
640
620 503.00
29 Nov
580
540
500
To appear in Best of the Brokers email your research to notes@cityam.com
6 Sep 5 Oct 3 Nov
CITYA.M. 30 NOVEMBER 2010
NEWS | IN BRIEF
ANALYSIS l Resolution
RESOLUTION Salamander discovers gas and oil
JP Morgan has started coverage of the
270 p 219.60 Oil and gas explorer Salamander Energy
29 Nov insurance group with an “underweight” said drilling results from its keenly
260
rating and a target price of 254p. The bro- awaited Angklung-1 exploration well in
250 ker believes the firm’s main strength is its Indonesia found gas and noted deeper
oil and gas potential. Chief executive
240 excess capital that allows it to make pur- James Menzies said the find of around
230 chases without equity financing, but adds 25m of gas and 120m of oil-bearing
that a share buyback would be more pro- sandstones is “a highly encouraging dis-
220
ductive. It sees the earnings potential of covery”. Richard Rose, analyst at Oriel
210
the combined AXA / Friends Provident Securities, said Salamander’s shares
6 Sep 24 sep 14 Oct 3 Nov 23 Nov have been affected this year by a lack of
among the least attractive in the sector. success with the drill bit, but noted that
Angklung was always seen as the best
ANALYSIS l Lloyds Banking Group LLOYDS BANKING GROUP prospect in the portfolio and this result
80 p Seymour Pierce rates the bank a “hold” should help reverse sentiment.
60.54 with a target price of 72p. The broker
29 Nov Third oil strike for Cove’s group
believes there could be a trading bounce in
75
A partnership between Cove Energy,
the bank’s shares following the Irish Videocon Industries, Anadarko
70 bailout, given the 10 per cent drop in price Petroleum, BPRL Ventures and Mitsui
in the last month due to the bank’s expo- E&P has discovered major natural gas
65 sure to impaired loans linked to the coun- presence off the coast of Mozambique.
The discovery well at the Lagosta
try. However, it warns that the size of the prospect has a net 550 feet of natural
60
6 Sep 24 sep 14 Oct 3 Nov 23 Nov bailout relative to the size of Ireland’s econ- gas find, Videocon said in a statement.
omy might be storing up trouble. The group has made three discoveries in
the area, and is looking into ways to
PUNCH TAVERNS commercialise liquefied gas from the
ANALYSIS l Punch Taverns Shore Capital rates the leisure firm a “buy” region.
95 p 62.30 with a target price of 60p. The broker out-
29 Nov Nighthawk closes projects
85
lines three options for the firm’s pubs held Oil explorer Nighthawk Energy said it
would focus on its Jolly Ranch prospect
in Colorado and exit all other current
75 the company is most likely to renegotiate
the terms of the vehicles or attempt a capi-
projects yesterday, sending its shares
down 23 per cent. The US-focused ener-
65 tal injection such as a debt for equity swap. gy company also said yesterday that it
It adds that if the firm suggests it will not had stopped looking for a farm-in part-
55 provide further cash support to the vehi- ner for a part of the Jolly Ranch project.
6 Sep 24 sep 14 Oct 3 Nov 23 Nov Writedowns from exiting the non-core
cles the share price is likely to rise. assets including the Cisco Springs proj-
ect in Utah will be around $65m
(£41.8m), the firm said.
 Markets&Investment
25

LONDON’S TOP 250

Company Name Closing Price Price Change 52wk high 52wk low Company Name Closing Price Price Change 52wk high 52wk low Company Name Closing Price Price Change 52wk high 52wk low Name Closing Price Price Change 52wk high 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)Company (p) (p) (p) (p)
3i Group 302.25 -5 326 250 Cobham 194 -4.5 276 194 Jardine Lloyd 573.5 -1.5 600 421.5 Rolls-Royce Group 608 -8.5 654.5 473.5
3i Infrastructure 117.25 -0.25 118.5 97 Colt Telecom 122 -4.5 142.5 109 John Wood Group 473.25 -7.75 487 285 Rotork 1600 -23 1895 1105
A.B. Foods 1067 -16 1107 797 Compass Group 549.5 -5.5 567.5 425 Johnson Matthey 1814 -58 1973 1446 Royal Bank of Scot 38.5 -0.25 58 28.5
Aberdeen Asset.Man. 179 -2.5 190 112.75 Cookson Group 552 -18.5 607 367.5 JPM Flem.Emerg Mkt. 598 -1 618 450.5 RSA Insurance Grp 120.25 -0.5 136.5 114.75
Admiral Group 1541 -35 1693 1061 Croda International 1433 -27 1521 744.5 Jupiter Fund Man 290 0.5 306 180.25 SABMiller 2049 -64.5 2157 1650
Aegis Group 133.75 -2.25 136 103.5 Daily Mail & Gen 520 -29 567.5 404 Kazakhmys 1395 -35 1630 965 Sage Group 258.25 -1.5 285 213.25
Afren 126.5 -3 134 79 Davis Service 396 -3.5 435 360.25 Kesa Electricals 167.5 -2.5 170.75 99.25 Sainsbury (J) 360 -7 395 313
African Barrick Gold 503 -8 670 503 Debenhams 72 -2 84.25 53 Kingfisher 237.5 -7 250 198.5 Schroders 1630 -46 1676 1116
Aggreko 1455 -45 1685 736.5 Derwent London 1440 -7 1605 1208 Ladbrokes 126 0.25 162.75 125 Schroders NV 1291 -34 1325 929.5
Alliance Trust 352 -2.5 361.25 293.5 Dexion Abs 140 -1 148 131.25 Lancashire 618 -7 647 422.25 Scot.& Sth. Energy 1121 -27 1198 1010
Amec 1108 -17 1154 733.5 Diageo 1150 -29 1193 1000 Land Securities 634 -13.5 696.5 545 Scottish Mortgage 650 -2.5 683 475
Amlin 375.25 -0.5 433 357.25 Dixons Retail 26 -0.25 38 23.75 Legal & General 94 -2 106.25 69.75 SEGRO 279.5 -5 352 250.25
Anglo American 2821 -83.5 3055 2254 Domino’s Pizza 529 -3 536 280.75 Lloyds Banking Grp 60.5 -1.25 77.5 46.5 Serco Group 550 -11 651 494.25
Antofagasta 1299 -26 1472 761 Drax Group 360 -10.5 444 326.25 Logica 117.5 -2.25 148 101.75 Severn Trent 1438 -30 1468 1010
Aquarius Platinum 325 -4 458 227 DS Smith 189.25 2 189.25 104 London Stock Ex. 777 -1 795.5 544 Shaftesbury 441 -1.75 460 349.25
ARM Holdings 391 -7.5 414.5 154.75 Dunelm 503 -4.5 510 325.25 Lonmin 1683 -35 2157 1355 Shire 1522 -45 1567 1159
Ashmore Group 358.75 0.25 383.75 218 easyJet 439.5 -3.5 496.5 341.5 Man Group 260.75 -9 328.5 202 SIG 113.5 -1.75 137.75 90.75
Ashtead Group 131.5 0.5 135 66.25 Edin.Inv.Tst. 429 0 464.25 351.5 Marks & Spencer 377.5 -8 427.5 323.5 Smith & Nephew 586.5 -8 696.5 537.5
AstraZeneca 3023 -50 3385 2717 Electrocomponents 262 -5.5 269.5 161.75 Meggitt 327 -10.25 337.25 239.25 Smiths Group 1159 -16 1285 954
Atkins (WS) 718 2.5 792.5 556.5 Enquest 133 3 137.5 89.25 Melrose 298.25 0.25 304.25 162 Soco International 346.25 -2 484.25 292
Autonomy 1325 -16 1975 1271 Essar Energy 501.5 -8.5 548 383 Mercantile Inv Tst 990 -6.5 1028 822.5 Spectris 1156 -24 1222 663.5
Aveva Group 1517 -9 1575 942.5 Eurasian Nat Res 883.5 -26 1266 818 Michael Page 480 -4 503.5 335.25 Spirax-Sarco 1829 2 1870 1072
Aviva 359 -10.75 423.5 294.25 Euromoney Inst. 706.5 -1.5 708 393 Micro Focus 338.25 4.5 546.5 276 Spirent 145.5 -1.5 156 92
Babcock International 520 -7.5 635 492.75 Experian Group 744 -7 751 572 Millennium & Cop. 524 3 570 342 Sports Direct 129.5 -1.5 152.75 92.25
BAE Systems 334 -6.25 388.75 294.75 Ferrexpo 356.25 -13 396 179.5 Misys 291.25 -1.75 298.25 200.5 St James’s Place 243.25 -4.5 292 204.25
Balfour Beatty 272.5 -6.75 303 229.75 FirstGroup 360.75 -8 426 336 Mitchells & Butlers 345.5 -8 356 247.5 Stagecoach Group 199 -0.75 224 144.5
Barclays 263 3.25 383.25 255.25 For.&Col.Inv.Tst 291.25 -2 299.75 251.5 Mitie Group 211.25 3.75 241 188.75 Standard Chartered 1749.5 -8 1950 1351.75
Barratt Development 71 -3.25 142 71 Fresnillo 1406 -36 1469 669.5 Mondi 479 -7 557.5 321.5 Standard Life 209 -5 236 173
BBA Aviation 195 -1.5 217.25 152 G4S 237.75 -2.5 283.5 237.75 Monks Inv.tst. 337.75 -0.5 349.25 265.5 Supergroup 1539 6 1539 535
Bellway 538 -1.5 826 511 Genesis E.m.f. 521.5 0.5 540.5 392.5 Morgan Crucible 237.5 -7.5 254 145.5 TalkTalk 153 -2 155 108.5
Berkeley Grp Hldgs 815.5 -16.5 897 742 GKN 188.25 -5.5 193.75 102 Morrison (Wm) 272.5 -5.25 306.25 257.5 Talvivaara Mining 509 -21.5 581 342.5
BG Group 1168.5 -38.5 1296 984 GlaxoSmithKline 1224.5 -36 1339.5 1095 Murray Int.Tst 901 -6 936 720 Tate & Lyle 511.5 -6.5 531.5 388.75
BHP Billiton 2265.5 -49.5 2469 1684.5 Great Portland Est. 333.5 -4.5 364 268 National Express 223.5 -1.5 259.5 165.5 Taylor Wimpey 24.25 -0.5 44 22.25
BlackRock Mining 705 -5 737.5 492 Greene King 452.25 -2 468.25 376.25 National Grid 567 -9 613.25 484.25 Telecity Group 469.5 -2 532.5 333.5
BlueBay 483 1 489.25 258 Halfords Group 412 -5.5 550 372.75 Next 2015 -61 2344 1817 Templeton Emrg. 637 -5.5 685 471.5
BlueCrest AllBlue 173.25 -1 174.5 152 Halma 329 -8 343 223 Northumbrian Water 332 -6 361.5 252.75 Tesco 421.5 -8.5 454.5 377.5
Booker Group 54.75 -0.25 56 38.75 Hammerson 394.75 -12.25 434.5 336.25 Ocado Group 149.5 -1.5 167 123.5 Thomas Cook Group 192 -1.75 272 171.75
Travis Perkins 823 -19.5 912 664.5
BP 428.25 -7.75 655.5 303 Hargreaves Lansdown 490 -3.75 501.5 265.25 Old Mutual 121.5 -5.5 145.25 97.25
TUI Travel 214.5 -0.25 308.5 190
Brit Insurance 1034 -1 1045 720 Hays 111 -1.5 123.5 88.5 PartyGaming 234 0.75 334.5 206
Tullett Prebon 353 -4 417.25 262
British Airways 261.25 -10.75 286 184.25 Henderson Group 119.25 -3 151.75 112.75 Pearson 931.5 -21.5 1051 829
Tullow Oil 1151 -31 1369 991.5
British Amer.Tob 2333.5 -60.5 2464.5 1847 Heritage Oil 369.5 -9.25 581 296.75 Pennon Group 631.5 -7.5 639 483
UK Commercial Prop 74.75 0 85 72.75
British Empire Tst 480 -1.25 495 394 Hikma 762 -8 804.5 486.25 Persimmon 345 -14.5 507.5 336.5
Ultra Electronics 1615 -23 1895 1241
British Land 480 -10 520 418.25 Hiscox 348 0.75 370 300 Petrofac 1392 -85 1540 876.5
Unilever 1795 -42 2015 1688
Britvic 497.25 -2 518 373 Hochschild Mining 539 -22.5 580.5 234 Petropavlovsk 1065 7 1365 852 United Utilities 596 -12 628.5 476.75
Brown (N.) Group 290.5 1.5 301 206.5 Home Retail Group 201.75 -3.5 310.75 201.75 Phoenix Group Hldgs 640 -3 758 557.5 Utd Business Media 615.5 -18.5 682.5 409.75
BSkyB 719 -1.5 729 524.5 Homeserve 428.5 -9.25 487.5 312 Premier Farnell 283.5 -3 296.75 153.25 Vedanta 2010 -65 2934 1839
BT Group 169 -5.25 174.25 110 HSBC Holdings 651.5 0.25 740.5 596.25 Premier Oil 1839 -46 1890 1017 Victrex 1202 -23 1338 788
Bunzl 715 -8 777 616.5 Hunting 611.5 -12 658.5 439.5 Provident Financial 834 -13.5 974 728.5 Vodafone Group 159.25 -6 175 129.5
Burberry Group 996 -44 1050 564 ICAP 473.75 -2.25 494 294 Prudential 568.5 -8.5 653 487.5 Weir Group 1703 -53 1756 669
C&W Comms 44.75 -1.25 63.75 44.75 IG Group 490.5 -1 553 316.5 PZ Cussons 381.25 -1.25 403 234.75 Wellstream Holdings 730 -2 789 436
C&W Worlwide 62 -1.75 100 60.5 Imagination Tech 345.25 5.25 441.75 210 QinetiQ Group 116 -0.25 167 96.75 WH Smith 473.5 -1.75 537.5 398.25
Cairn Energy 377.5 -17.5 493.25 303.5 IMI 862 -12 874 491.75 Randgold Res 6040 -30 6655 4209 Whitbread 1697 -46 1797 1266
Caledonia Inv. 1771 -11 1827 1511 Imperial Tobacco 1895 -60 2154 1753 RDS ‘A’ 1945.5 -44 2100.5 1624 William Hill 157.5 2 216.5 155.5
Capita Group 659 -11 826 656.5 Inchcape 330 -7.75 357 237 RDS ‘B’ 1919 -44.5 2064.5 1554 Witan Inv Trust 472.25 -6.5 490.5 410
Capital & Counties 149.25 -0.5 157 100 Informa 401.75 -10.25 448 277.5 Reckitt Benckiser 3423 -78 3655 3037 WOLSELEY 1720 -61 1817 1160
Capital Shop Centre 400 -1 401.5 301 Inmarsat 653 -23.5 821 606.5 Reed Elsevier 516 -9.5 563 454.5 WPP Group 712.5 -12.5 755 568
Carillion 339.75 -6.5 357 273 InterContinental Htl 1133 -30 1225 841.5 Regus 76 0 120 66 Xstrata 1294.5 -37.5 1419 845.75
Carnival 2569 -59 2920 2037 Intermediate Cap.Grp 322.75 -2.75 351 240.5 Renishaw 1119 -17 1235 516.5
Catlin Group 332 -4 393 307 International Pers Fin 303 -1.5 332 183.25 Rentokil Initial 89.25 -1.25 138.5 89.25
Centamin Egypt 179.25 -6.5 197 106.75 International Power 410 -7 436.75 277 Resolution 219.5 -5.5 349 219.5 LONDON TOP 250 BY MARKET CAPITALISATION
Centrica 311 -5 346 254.5 Intertek Group 1818 -32 1959 1150 Rexam 305.75 -6.25 346.75 272.5 POWERED BY
Charter 692 -8 848.5 567 Invensys 319 -7.75 349 230.25 Rightmove 750 0 810 464
Chemring Group 2917 -22 3663 2598 Investec 503.5 -8.5 562 413.25 Rio Tinto 4043 -136 4454 2812
Close Brothers 800 -7.5 821.5 664 ITV 67 -0.75 72 48.25 RIT Capital Partners 1149 -22 1210 944.5 www.digitallook.com

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FTSE tumbles on weaker commodity Eurozone fears dampen

prices and nerves over Ireland’s rescue markets on Wall Street
5,722.7. 3.2 per cent and Royal Dutch Shell off to 11,052.49. The Standard & Poor’s 500

THELONDON The UK blue chip index ended

below the 5,600 level for the first time
2.2 per cent.
BP fell 1.8 per cent. The firm has THENEW YORK Index fell 1.64 points, or 0.14 per cent,
to 1,187.76. The Nasdaq Composite

REPORT
since 1 October, just holding above agreed to sell its stake in Argentina- Index lost 9.34 points, or 0.37 per cent,
REPORT that month's opening level of
5,548.62.
“A monthly closing price reversal
based oil and gas group Pan American
Energy to Bridas for $7bn.
Oil services firm Petrofac was the
to 2,525.22.
In the wake of a stronger-than-
expected start to the holiday shopping

B
RITAIN’S top share index ended top could be a bearish sign that this top blue-chip faller, down 5.8 per cent, season, investors took profits on a two-

sharply lower yesterday, seeing
two months of gains wiped out,
as heavyweight commodity
issues dropped back with weaker
metal prices and financial firms
dropped on worries over the
Eurozone.
The FTSE 100 index dropped 117.75
points, or 2.1 per cent, to close at
5,550.95, the day’s low, having
reversed from a session peak of
market is getting ready to roll-over to
the downside, with 5,483 to 5,385 the
next likely major downside target,”
said James A Hyerczyk, an analyst at
Autochartist.
“A failure to hold the last swing bot-
tom at 5,566 sets up this market for a
further acceleration to the downside.”
Energy issues were the biggest blue-
chip sector fallers, although the crude
price held firm, with BG Group down
squeezed lower after a rally, with ana-
lysts raising strategic concerns over a
deal in Nigeria.
Oil explorer Cairn Energy shed 4.4
per cent, while metals firm Vedanta
Resources lost 3.1 per cent.
India’s oil secretary said yesterday a
decision on Cairn’s application to
transfer majority stakes in its Indian
assets to Vedanta will be taken before
the end of February.
U
S stocks edged down in a low-vol-
ume session yesterday on wor-
ries Europe’s credit crisis will
spread, despite a weekend agree-
ment to bail out Ireland.
But stocks finished well off their
lows of the day as the dollar retraced
some of its earlier gains and energy
and financial stocks rallied later.
The Dow Jones industrial average
dropped 39.51 points, or 0.36 per cent,
week rally in retail stocks. The S&P
retail index fell 0.7 per cent.
Online retailer Amazon rose 1.3 per
cent to end at $179.49 on expectations
of solid sales on “Cyber Monday”, a day
of steep discounts for online shoppers.
The CBOE Volatility index, known as
Wall Street’s fear gauge, rose three per
cent to hit its highest level since early
October, indicating anxiety among
investors was increasing.
 26 Contracts for Difference
US JOBS DATA
COULD STILL
DISAPPOINT
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
L
AST week was a stomach-churning roller-
coaster for investors and traders alike.
Attention shifted away from the US and
the backlash which greeted the Fed’s
announcement of QE2. Instead, the focus was
on tensions between North and South Korea,
along with the European sovereign debt and
banking crisis. These issues have the potential
to deteriorate further, which should support the
dollar and keep equities under pressure.
This week we get another update on US job
losses with the focus on Friday’s non-farm pay-
rolls. Last month saw an unexpected but wel-
come jump in employment. The headline figure
showed a rise of 151,000 jobs, well above ana-
lysts’ expectations of a 63,000 rise. The prior
month’s number was also revised upwards.
Private employment rose 159,000 but manu-
facturing jobs fell 7,000 against expectations
of a 5,000 gain. This will be a blow to those
hoping that recent dollar weakness would help
US manufacturing and exports.
A payroll gain of 151,000 is welcome but
growth of this magnitude is required just to
accommodate fresh entrants to the labour
market from population growth and immigra-
tion. It does nothing to address the 8.5m jobs
which have been lost since the end of 2007.
Additionally, the labour force participation rate
dropped to its lowest rate since the mid
1980s, indicating a huge rise in Americans
who have stopped looking for work. This ties in
with the depressing news that there are now
close to 42.5m US citizens claiming food
stamps, up 17 per cent on the year before. This
includes people who become ineligible for
emergency unemployment compensation once
the limit of 99 weeks has been exhausted.
Unless Congress votes to extend the pro-
gramme, the number claiming food stamps
will soon swell even more dramatically.
We’ll get a look at private payrolls from the
ADP survey on Wednesday, and weekly jobless
claims on Thursday. Last week’s claims were
better than expected. But the figures may
have been flattered by the shortened holiday
week, so there could be a nasty upward revi-
sion to come.
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CITYA.M. 30 NOVEMBER 2010
Savvy traders can also
benefit from dividends
Income-paying utility
stocks will do well in
the current climate,
writes Jessica Mead
I
N A world of high inflation, low
growth and stock markets trading
sideways, the investor is perpetually
in search of ever-elusive income.
Dividend income is understandably more
appealing to the buy-and-hold investor
community but the speculative trader
should not ignore it either.
Dividends can still play a part in the con-
tracts for difference (CFD) trader’s strategy
and defensive, dividend-paying stocks such
as utilities can be attractive in a recession-
ary, low growth environment.
Utilities stocks such as water and gas
providers often pay out sizeable dividends,
which are usually linked to the retail price
index (RPI). For example, although Severn
Trent last week announced that it would
cut the interim dividend, its dividend poli-
cy will be RPI plus 3 per cent – a sizeable
percentage at the moment. Inflation-
linked revenues and consumers’ need for
water and gas provision whatever the eco-
nomic climate ensure that utilities have Turning water into income Picture: REX
relatively strong balance sheets, allowing
them to pay dividends. Unfortunately, if you hold a short CFD in a ANALYSIS l Annual growth in quarterly
To qualify for the dividend payment as a stock on the ex-dividend date, you have to dividends
CFD trader, you have to be holding a long pay the full 100 per cent of the dividend. 30%
position in a stock on the day it goes ex-div- Typically, shares in a dividend-paying
idend. Most broker firms will pay out fairly stock will rise in the run-up to the ex-divi- 20%
quickly – in most instances within a week dend date in anticipation of the announce-
– but technically they can leave it until the ment. On the day the stock goes 10%
payable date, says McCaig. The payable ex-dividend, you would then expect it to
date can be as much as a couple of months fall by the amount of the payout. Some
0%
– for example, Vodafone went ex-dividend CFD traders employ a strategy known as
on 17 November but the payable date isn’t dividend stripping, which involves buying
until 4 February 2011. a CFD just before a stock goes ex-dividend -10%
The majority of brokers will pass on the and then selling immediately afterwards.
dividend to CFD traders and spread betters If the share price does not fall by the full -20%
holding long positions. After the 10 per amount then you will make a small gain,
cent dividend tax has been deducted, you which can be leveraged up. Source: Exchange Data International, Capita Registrars
-30%
would expect to get between 80 and 90 per The tax treatment of the dividend Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10
cent of the gross dividend. should, in theory, also be beneficial. CFDs
However, firms are not technically are liable for capital gains tax (CGT) at reduce your liabilities.
obliged to pass this on, warns Alastair either 18 or 28 per cent whereas dividends Dividends are not and should not be the
McCaig, head of investment management are taxed at just 10 per cent. If you are like- prime reason for holding a CFD in a partic-
at WorldSpreads, who advises that you ly to exceed your annual personal CGT ular stock but their advantages mean they
check with your broker or provider first. allowance of £10,100, this is a way to should not be forgotten.
Get started at
gftuk.com.
 Who next?
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 28 Contracts for Difference CITYA.M. 30 NOVEMBER 2010

Ford’s share price

THE TIPSTER is motoring ahead Champion Trader -
FORD IS BACK ON Picture: Final days
THE OPEN ROAD REUTERS
There are just two days trading left and the tournament has now reached fever
AND ROARING UP pitch with the top players switching positions on a daily basis. Alonsove nearly
doubled their account value since Friday’s close to lead with jasonkhan now in
second. It is just too close to call!

T
HE US car giant Ford is due to give a The tournament closes 17.30 on 1 December and the overall winner taking the
trading update tomorrow. Its stock has £6,000 top prize will be announced the following morning in City A.M.
rallied over 50 per cent in 2010 thanks
to optimism that quantitative easing will User Name Account Value % Difference
prevent a double dip and people will keep buy-
ing cars. It was only two years ago since the 1 alonsove £240,897.03 2309
stock was trading at $3 and looking close to 2 jasonkhan £213,420.13 2034
going bust. Now, the uptrend still looks firmly
intact. Capital CFDs quotes a price of $15.92- 3 rhona45 £206,690.78 1967
$15.95 for Ford. 4 wallabies £170,269.05 1603
Travel operator Thomas Cook updates the Utilities might be worth considering. The despite some astounding claims from Visa 5 urosbric3 £127,267.12 1173
market with earnings news tomorrow with company’s share price has retraced to its pre- about the scale of UK online shopping. With
figures of around £394m expected. Its shares vious resistance level around the £6 mark and the Christmas shopping season well and truly 6 sbwilliams £88,629.21 786
have underperformed the FTSE by over 20 per yesterday’s decline could well present a buying underway, the company must be hoping for 7 garnz123 £54,283.00 443
cent in 2010, but they may be worth picking opportunity. The previous resistance should some festive cheer in the weeks ahead. A 8 ragbull1 £51,934.15 419
up at prices of around 180p-190p. If it can now be a good support level. Capital CFDs campaign of store reformatting is also under-
climb past the 150-day exponential moving quotes a price of 601.6p-603.4p. way but the lower overheads of the pure-play 9 youngdav £50,208.33 402
average at 195p then we might see it head After the punishing run lower for shares in online retailers are always going to pose a 10 paulmh £48,097.25 381
back towards 220p. Spread Co offers a spread Dixons Retail through 2007 and 2008, the threat. IG Markets offers a spread on Dixons
on Thomas Cook Group of 188.7p-189.3p. recovery has been somewhat painful for the Retail of 26.35p-26.39p. For more information or to see the full league table visit
The UK’s largest listed water utility United group. Its online sales seem to be falling Daniel Knowles www.intertrader.com/champion

MARKETS NEWS
BY DANIEL KNOWLES
CMC’S NEW CHARTING PACKAGES
CMC Markets has announced the launch of a
new charting software package for both
demo and live spread betting accounts. The
software allows clients to use professional
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Line, candle, open-high-low-close and spread
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Using charts to get ahead Picture: GETTY patterns.
CITY INDEX SLASHES ITS MARGINS
City Index has cut its margin requirements
on a range of equities, including on several
mining companies, British banks and insurers.
Clients can now trade on firms like BHP
Billiton with a margin of just 2.5 per cent,
down from 15 per cent previously. Joshua
Raymond, market strategist, said: “Traders
will appreciate the opportunity to use their
capital more efficiently”. Lower margin
requirements allow traders to place more
leveraged bets, magnifying profits and losses.
S&P LAUNCHES NEW EUROZONE INDEX
Standard & Poor’s has launched a new index
designed to provide exposure to 75 of the
Eurozone’s most liquid blue chip companies.
The S&P Euro 75’s constituents are drawn
from stocks included in the S&P Eurozone
broad market index. They are screened for
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calculated in real time. Germany and France
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 Lifestyle THE NEW 29
MITSUBISHI
| Fashion LANCER
REVIEWED TOMORROW

Snuggly ways 21

to beat the brrr

41

1
31

71
51

61

10
1

Y
ESTERDAY was the first day this year the form of plenty of snuggly vestments.
when Londoners thought, hang on, Here we’ve chosen the cosiest, softest and
this is serious. Well, if forecasters are warmest items that can serve as emergency
correct, we’re in for a lot more days measures for getting through winter –
where stepping outside is painful, and get- while bolstering your fashion credentials
ting out of bed agony. at the same time. Here’s to a season of 91
So we believe you should take steps, in snazzy winter warmers. Zoe Strimpel
81
1. Double-breasted leather coat, Karl Donahue, £1,570, www.netaporter.com
2. Cap, Eugenia Kim, £130, www.netaporter.com
3. Club check gloves, Aquascutum, £95, www.aquascutum.co.uk 4. Patterned hooded snood, Peacocks, £8,
www.peacocks.com 5. Barts Joanna beanie, £18.99, www.johnlewis.com 6. Baby cheetah sweater dress,
Wildfox Couture, £160, www.wildfoxcouture.co.uk 7. Cashmere blend argyle cardigan, Pringle of Scotland,
£495, www.pringlescotland.com 8. Shearling snood, Burberry, £450, uk.burberry.com
9. UGG mittens, £85, www.johnlewis.com
10. Class jacket, Roberto Cavalli, £275 (second hand), www.chicandseek.com

All cosied up? Time to drink yourself warmer

Boost your fight against the CITY
freezing weather with a warming Five hot cocktails are on offer at the Folly
and the Anthologist near Bank, the Parlour
Conigliari cooks up things like Fisherman’s and lemon zest, muscovado sugar and bit-
Friend liqueur and horseradish vodka. The
menu has a few good warmers – I like the
ters. Rich and fruity (gloglos.co.uk).

CENTRAL AND WEST

cocktail, advises Zoe Strimpel at Canary Wharf and the Refinery in
Southwark (drakeandmorgan.co.uk) – we
say go for the Warm Spiced Apple Toddy. It
combines cider with calvados, cognac,
fresh apple juice, mint and liquorice bitters
liquorice caipiroska since aniseed warms
the throat – but if you ask nicely, he might
make you a toddy, which is a wonderful
brew of whisky, apple and melted butter.
Over in Shoreditch, the Chinese-style
Dishoom, the Bombay café (12 Upper St
Martin’s Lane), has a few cockle-heaters. We
favour its hot toddy – Johnnie Walker Black
Label with warm Darjeeling tea and fresh

T
HE next best thing to snuggling up in – and best of all, is served in a Thermos Drunken Monkey (thedrunken citrus. At celebrity chocolatier William
a woolly jumper or – if you’re a City with accompanying chunky chalice glasses. monkey.co.uk) is offering a Spiced Curley (williamcurley.co.uk), there’s exqui-
A.M. reader, perhaps a Burberry Chestnut Whirl – vodka with chestnut site chilli hot chocolate (made with the
snood – is a warming tipple. We’ve NORTH/EAST liqueur and cinnamon liqueur, plus milk, house 70 per cent) and at Chelsea newbie
carefully combed the options to find the Colebrooke Row in Islington (69cole- cream and cinnamon syrup. It doesn’t get Eighty-Six (86restaurant.co.uk), the house
best ones near you. brookerow.com) has the only drinks lab in cosier. Meanwhile, glitzy new bar Glo Glo’s toddy features brandy, flames, lemon,
England, where cocktail genius Tony R&R Blazer involves V/X rum, dates, orange brown sugar, cinnamon and apple.
 30 Lifestyle | Health CITYA.M. 30 NOVEMBER 2010

Give the gift of a fit, toned body

Laura Williams picks
pressies to help 3 SHOCK ABSORBER PUMP
SPORTS BRA
Research from Edinburgh University
counter the excesses found that wearing a sports bra during
any kind of exercise reduces movement in
the chest and can prevent long term sag-
of the festive season ging. And as time’s gone on, sports bras
have got better looking. Shock Absorber
lead the way in providing good looking,

1 LEMON DETOX IN THE CITY

The famous Beyonce/Demi & Ashton
supportive sports bras – check out this lit-
tle crop top number (below).
£19, www.lingerieplease.co.uk

Maple Syrup Diet is now available as a City

detox at the swanky new Hotel Verta in
Battersea. For weight loss in the height of
luxury, vouchers for the detox start from
£375.00 including overnight stay, consul-
6 POWERBEATS
These are the latest offering in cool head-
phones from Dr Dre’s Hip Beats range.
tation, two treatments and the Lemon These bad boys are specially ported so that
Detox formula with the tin of magic syrup if you’re cycling or running, you’re still
to take away so you can continue at home. aware of oncoming traffic and sirens –
www.hotelverta.co.uk perfect for a cyclist wanting to drown out
the sound of irate cabbies and pedestrians
without compromising safety. And they
look good too.
£139.95, beatsbydre.com

4 BODY REFURB
This Body Adonis package from the
Nordic Balance gym will ensure that your
loved one has a body to die for come the
New Year. Consisting of a bespoke set of
23 body buffing personal training ses-

2 BUTT LIFT IN A BOX

Bremenn’s Butt Lift in a Box promises to
turn a “flat & saggy rear end into a round
Toned shoulders:
could there be a bet-
ter Christmas gift?
sions (you get to see different trainers to
get different areas of expertise), and
three deep tissue sports massages and
helpful nutrition information, this pack-
age leaves no stone unturned.
firm butt”. This is a three-pronged attack £1,150, www.nordicbalance.co.uk
on wobbly derrieres: state-of-the-art cream
and emulsions and specific toning exercis-
es. And if it sounds too good to be true,
Bremenn offers a money-back guarantee.
£72, Available from Harvey Nichols and
Selfridges, and www.victoriahealth.com.
7 GUINNESS HOME DART CENTRE
This is the ultimate stocking filler for the
Guinness lover who wants to be seen ges-
turing towards a healthier lifestyle. You
need to be dedicated with the darts,
though – it takes an hour of darts playing
to burn off a pint of Guinness. It comes
complete with wooden cabinet and com-
petition-size dartboard (but alas no
Guinness). £29.99, www.amazon.co.uk

5 TENSCARE’S SPORTS TENS

This new TENS machine is one of a
new generation of affordable versions of
the. TENS (transcutaneous electrical nerve
stimulation), which has been found to be
a highly effective, non-invasive form of
pain relief. If you’re looking for the perfect
gift for an arthritic relative, or an active
pal who’s permanently plagued with nig-
gling exercise injuries, this is it.
£69.95, www.tenscare.co.uk

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IT CAN BE RESTORED!
CITYA.M. 30 NOVEMBER 2010
Hooray: Hakkasan comes to Mayfair
The world’s coolest
Chinese restaurant
has expanded by
repeating its hit
formula and it works
Hakkasan (Mayfair)
17 Bruton Street, W1J 6QB
Tel: 020 7907 1888, www.hakkasan.com
FOOD hhhhi
SERVICE hhhhi
ATMOSPHERE hhhhh
Cost per person without wine: £55
L
AST week I gained half a stone. It all
started (relatively) modestly with a
couple of (gastro) pub meals. And it
ended modestly: eating a cheeseburg-
er and chips while standing up at the
crowded, faintly sticky Market Tavern in
Shepherd’s Market on Friday.
It’s the in between bit, though, that I’m
going to dwell on. The bit that involved
very high-class Chinese food, swanky cock-
tails involving yuzu and puddings in tex-
tures I’ve never encountered.
To prepare myself for the new
Hakkasan, I had to go to the old one.
Obviously. The old one, on Hanway Street,
is a dark, throbbing nest of cool, with lots
of dark wood in faintly Chinese designs
and lots of cool media people celebrating
various contracts.
The new one is pretty much the same,
only with hedge funders celebrating. The
bar is a bit different (bigger); there’s an
upstairs and a downstairs, too, and some
of the special dishes (ones you have to pre-
order and cost over £200) are different.
The point is: the second you enter
Hakkasan, you enter the world standard of
global “in-ness” – where Russian super-
models, Hollywood A-listers, City boys
done very good and media tycoons look as
natural as fish in a pond. London, as a
friend from New York is always pointing
out to me, tends to be a little more
relaxed, more scruffy, less het up about
looking the part than her city, or indeed
LA, Hong Kong and Dubai.
Well, if you’re feeling like a scruffy
Londoner, don’t go to Hakkasan Mayfair.
But if you’re feeling like a super-cool citi-
zen of the world, with a hankering for
good cocktails, delicious food and a set-
ting that says: “I’ve made it on as many lev-
els as you care to name”, then do go.
Being a fan of jeans and hoodies, I
dwelled on the food. Now, here comes a
tidbit of truth that – no doubt – won’t
cause too much of a stir. Despite being a
TASTING NOTES: BREAD OF HEAVEN
TIMOTHY BARBER
A
RTISAN is a word that gets bandied
around fairly carelessly. Bolt it onto any-
thing from a cheese brand to a fireplace
producer (Europe’s largest, according to
Google) and hey presto, you get a touch of old-
fashioned, hand-crafted authenticity that’s
about as authentic as the ye olde porcelain fig-
urines sold in the back of magazines.
So call me a cynic, but the idea of an “arti-
san bakery” which is actually based in a facto-
ry on an industrial estate in Hendon didn’t
exactly enthuse me – until I saw it. Or rather,
until I smelled it – a fug of wholesome, warm-
ing, toasty goodness envelops the particular
corner of NW9 housing the Bread Factory
which must leave those at neighbouring busi-
nesses feeling permanently hungry.
In bread baking, “artisan” means bread
that’s handmade – carefully, skilfully, slowly.
WORDS BY
ZOE STRIMPEL
“Chinese” restaurant, the food isn’t strict-
ly Chinese. It’s based on Chinese staples,
but veers off very sharply at many points.
I only know this because I went to
Hakkasan with a Chinese friend. She
laughed at the inclusion of “jasmine
foam”, champagne marinade, and beef in
merlot sauce (merlot sauce she could not
get over) and mused on what her grand-
parents in Peking would have said.
GOES WELL WITH RICE
She laughed, I chuckled, but we stopped
when the food arrived and our mouths
began to grapple with the array of fried
parcels (not un-Chinese, in fact; just less so
when foie gras is inserted), laquered meat
and aromatic fish. The main requirement
for Chinese food is “xia fan” which means,
poorly translated, “goes well with rice” –
no complaints there. And, as my friend
admitted, Hakkasan delivered well on the
sixth taste, umami, which is a particularly
delicious type of savouriness and a crucial
part of Chinese cooking. She also enjoyed
her glutinous rice and gave it the “authen-
tic” stamp of approval.
There is no dim sum at night (apart
from a rather limited “platter” in the
“small eat” section), and I was sad to forgo
this enormous category. Somehow mov-
ing on from this sadness, though, we
ordered the crispy duck salad with pome-
lo, pine nuts and shallots – an elegant dish
We’re talking 48 hours for some sourdough
loaves, made from “mother” dough – a wild
yeast mulch that’s been fermenting, regener-
ating and maintained (by ultra-skilled bakers)
for years if not decades. In the Bread Factory,
teams of bakers expertly stretch, knead, pum-
mel and mix doughs for breads ranging from
potato and rosemary sourdoughs to
bright pink, beetroot-infused loaves.
The bread is served in several
Michelin-starred restaurants in
London, as well as in Gail’s, the lit-
tle chain of gorgeous bakers’ shops
that make up the sister business. A
new one opens this week in
Exmouth Market, that atmospheric,
foodie-friendly Clerkenwell street,
which joins upmarket places like
Hampstead, Chiswick and St John’s
Lifestyle | Restaurant
Dark glamour defines of clover-like greens which the waiter toss-
Hakkasan one and es and further shreds at your table – and
two. sesame prawn toast with foie gras. The lat-
ter was undistinguished – wonderfully
decadent, of course, but heavy in the way
that a takeaway might be. The salad was
gorgeous to look at and very nice to eat. I
also recommend the pumpkin tofu puffs –
lovely light, orange cubes tossed in a fluffy
mound. The tea-smoked pork ribs (ordered
at Hanway Place) should delight, too.
For mains we opted for a Chinese clas-
sic: pepper beef. Only ours came with the
aforementioned merlot sauce, served in a
nest of prawn cracker. At first I found it a
tiresome rendition of a dish you get in
every takeaway in the country – the beef
too chewy, the sauce a kind of mask. But
as I persevered, its aromas and umami
unfurled, the meat softened and it
became a wonderful dish, the merlot giv-
ing it a touch of the European winter
warming stew.
Fish at Hakkasan is utterly mind-blow-
ing. At Hanway Place I had the roast silver
cod in Chinese honey and champagne,
and it was like eating fish in a kind of pos-
set; the sauce rich and gel-like and com-
pletely delicious. In Mayfair we had the
stir-fry Chilean seabass with Szechuan
pepper, sweet basil and spring onion and
it felt like another version of the silver cod,
which in itself is related to Nobu’s famous
black cod. Genius.
Wood in housing a Gail’s. It also contains a
concession from cheese specialists Paxton &
Whitfield.
The Bread Factory was founded by Gail
Stephens, also the force behind the Baker &
Spice patisserie-cafés. In 2005, management
consultants Tom Molnar and Ran Avidan took
it over, consolidated the business at the
Hendon HQ and started opening the Gail’s
bakery shops.
These places are the anti-Greggs – a cel-
ebration of brilliant bread (not to mention
cakes, buns, sweets and dips) of the kind
that you can find in very few other places.
The nobbly, uneven, crusty, alluring results
of actual artisan skills that, you might say,
are the best thing since sliced bread.
33-35 Exmouth Market, EC1R 4QL
www.gailsbread.co.uk
31
About dessert, I’ll just say: skip it. It’s
horrid. Judging from the small waistlines
of most of the diners, I assume most peo-
ple do that anyway.
For a fancy schmancy place, portions at
Hakkasan are generous, making its prices
not unreasonable – although the wine is
very steep. But the bottom line is this:
don’t come here if you’re pinching pen-
nies. It wouldn’t feel – or more important-
ly look right – would it now?
FOOD & BOOZE
NEWS
ZOE STRIMPEL
POP-UP SWEDISH CHALET AT THE WELL
The thought of a Swedish ski lodge sounds won-
derfully apt at the (freezing) moment. Well,
that’s exactly what you’ll find in the groovy
downstairs bit of the acclaimed Well pub in
Clerkenwell. It’s been transformed into a world
of fake furs, reindeer, fir trees and gingerbread.
Abba, Ace of Base and Roxette will be on the
sound system while “Swedish winter hostesses”
will be on hand to serve you ice cold glasses of
vodka. Vintage skis, moose antlers, wooden logs
and plenty of Aquavit complete the scene of
Scandinavian merriment. 1-24 Decembe,. 180 St
John Street. www.downthewell.com.
SKETCH AT THE ROYAL ACADEMY
For a second year, London’s quirkiest restaurant
will be running a witty Parisian pop-up at the RA
alongside the exhibition GSK Contemporary,
about art, fashion and identity. Sketch’s chef
Pierre Gagnaire will create a host of sandwiches,
viennoiseries, cakes and pastries in a perfect meld-
ing of art, fashion and food. Yum yum. 2 Dec-30
Jan, www.royalacademy.org.uk/aware.
NEW TEA MENU AT THE DRUNKEN MONKEY
Shoreditch’s favourite dim sum eatery and cocktail
bar is launching a warming afternoon tea menu,
featuring 12 anti-oxidant varieties of tea, and
organic cakes: think jasmine-infused cupcakes
topped; lemon and ginger mini drizzle cakes with
lemon zest and grated ginger and spiced star
anise cupcakes made with sultanas, ground cinna-
mon and star anise, topped with vanilla cream.
Menu from January. 22 Shoreditch High Street.
www.thedrunkenmonkey.co.uk
 32 Lifestyle | TV& Games CITYA.M. 30 NOVEMBER 2010

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders; BBC News
8pm Holby City
9pm Turn Back Time – The
High Street
10pm BBC News
10.25pm Regional News
10.35pm CHOICE Imagine
11.35pm FILM Away from Her:
Premiere. Drama, starring Julie
Christie 2006; Weatherview
1.25am Sign Zone: See Hear
1.55am Sign Zone: MasterChef: The
Professionals 2.55am Sign Zone:
Renaissance Revolution 3.55am
Sign Zone: The Bionic Vet 4.25am-
6am BBC News
6pm Eggheads
6.30pm Strictly Come Dancing
– It Takes Two
7pm Coast: A journey from
Cornwall to South Wales.
8pm Alan Titchmarsh’s Garden
Secrets: The presenter explores
the gardens at Sissinghurst.
9pm CHOICE The Foods That
Make Billions: How grain
became one of the food
industry’s most lucrative
commodities.
10pm Miranda
10.30pm Newsnight; Weather
11.20pm Limbo Babies
12.20am American Dream
1.20am BBC News 4.25am-6am
Close
6pm London Tonight
6.30pm ITV News
7pm Emmerdale
7.30pm River Monsters
8pm All New You’ve Been
Framed!: Camcorder clips,
including two musical horses.
8.30pm I’m a Celebrity Get Me
Out of Here! Yet another
contestant faces eviction.
10pm ITV News at Ten
10.30pm London News
10.35pm Olly Murs Revealed
11.35pm Swingtown
12.30am The Zone; ITV News
Headlines
2.30am The Rockford Files 3.25am
The Jeremy Kyle Show 4.20am-
5.30am ITV Nightscreen
6pm The Simpsons 6pm Home and Away
6.30pm Hollyoaks 6.25pm Live from Studio Five
7pm Channel 4 News 7pm Five News at 7
7.55pm 4thought.tv 7.30pm CHOICE Street Market
8pm Kirstie’s Homemade Home Chefs; Five News Update
9pm The Family 8pm Sea Patrol UK: A diver is
10pm Frankie Boyle’s Tramadol reported missing near Skomer
Nights Island; Five News at 9
10.35pm The Morgana Show 9pm CSI: Miami
11.10pm 3 Minute Wonder: The 10pm CSI: NY; Five News
Turner Prize 2010 Update IMAGINE
11.15pm The Big Bang Theory 11pm CSI: Crime Scene BBC1, 10.35PM
11.40pm Robert’s Web 12.15am Bull
Investigation Alan Yentob marks the unveiling of a
Run 12.50am World B-Boy Series
1.15am Freesports on 4 1.45am 11.55pm True CSI major Tate Britain exhibition focusing
Beach Volleyball 2.40am KOTV 12.55am SuperCasino on the life and work of 19th-century
Boxing Weekly 3.05am World Sport 4am The FBI Files 4.45am House photographer Eadweard Muybridge.
3.30am Great Salford Swim Doctor 5.10am Michaela’s Wild
4.25am Sailing 4.55am Deadliest Challenge 5.35am-6am Michaela’s
Catch 5.45am-6.30am One Tree Hill Wild Challenge

SKY SPORTS 1 12.30am Premier League 9pm Hairy Women 10pm 2.20am What About Brian the Universe Works 4.40am
SATELLITE & CABLE

7pm Sky Sports News at
Seven 7.30pm Live Carling Cup
Football 10pm Revista De La
Liga 11pm Football Asia
11.30pm A-League 12am
Carling Cup Football 1.30am
Revista De La Liga 2.30am
Football Asia 3am A-League
3.30am Carling Cup Football
5am-6am Revista De La Liga
SKY SPORTS 2
7pm FIA GT1 World
Championship 8pm British
Basketball 10pm The Ultimate
Fighter 11pm Poker Million 1am
The Ultimate Fighter 2am FIA
GT1 World Championship 3am-
3.30am Asian Tour Golf Show
SKY SPORTS 3
7pm Premier League Bowls
8pm World Pool Masters 9pm
FIA GT1 World Championship
10pm European Seniors Tour
Golf 11pm Golfing World
12am Asian Tour Golf Show
Bowls 1.30am-3.30am British
Basketball
BRITISH EUROSPORT
6.15pm Live Table Tennis
7.30pm Eurogoals 8pm Boxing
10pm Freeride Spirit Show
10.15pm Carole Nash Bike
Show 11.15pm Champions Club
11.45pm-12.30am Swimming
ESPN
6.30pm Eredivisie Review
Show 7.30pm NFL: Monday
Night Football 10pm Premier
League Review: A look back at
recent fixtures. 11pm Russian
Premier League Review
11.30pm ESPN Game of the
Week 12am Live NHL Ice
Hockey 2.30am Press Pass
2010 3am-5.30am Live NHL
Ice Hockey
LIVING
7pm CSI: Miami 8pm
America’s Next Top Model
Strictly Baby Ballroom 11pm
Criminal Minds 12am CSI:
Crime Scene Investigation 1am
CSI: Miami 2am Four
Weddings 3am Charmed
4.40am Exposed: Brad Pitt
5.30am-6am Home Shopping
BBC THREE
7pm Total Wipeout 8pm
Beyond Walford: Roxy Mitchell
9pm Mad About the House
10pm EastEnders 10.30pm
Young Plumber of the Year
11.30pm Family Guy 12.10am
Beyond Walford: Roxy Mitchell
1.10am Mad About the House
2.10am Young Plumber of the
Year 3.10am Total Wipeout
4.10am-5.10am Can’t Bully Me
E4
7pm Hollyoaks 7.30pm Friends
9pm FILM Zoolander 2001.
10.50pm The Event 11.50pm
Scrubs 12.50am The Event
1.40am Life Unexpected
3.05am Reno 911! 3.45am Unsolved History 5.30am-6am
Switched 4.10am Accidentally How Does That Work?
on Purpose 4.30am-6am
Switched DISCOVERY HOME &
HEALTH
HISTORY 7pm A Baby Story 8pm 10 THE FOODS THAT MAKE BILLIONS
7pm How the Earth Was Made Years Younger 9pm Your Kid BBC2, 9PM
8pm Clash of the Gods 9pm Ate What? 10pm Embarrassing The Money Programme team reveals
Colosseum: Rome’s Arena of Illnesses 11pm Strange Sex how grain has become one of the most
Death 10pm Warriors: Attila 12am Your Kid Ate What? 1am lucrative commodities of the food
the Hun 11pm Decoding the Embarrassing Illnesses 2am industry.
Past 12am Colosseum: Rome’s Strange Sex 3am 10 Years
Arena of Death 1am Warriors: Younger 4am Baby Days 5am-
Attila the Hun 2am Tunnellers 6am Portland Babies
3am-5am Seven Signs of the
Apocalypse SKY1
7.30pm Modern Family 8pm
DISCOVERY UK Border Force 9pm Stargate
8pm How Do They Do It? Universe 10pm Fringe 11pm
8.30pm How It’s Made 9pm FILM Black Swarm 2007.
Swamp Loggers 10pm Built 12.50am Road Wars 1.40am
from Disaster 11pm River Inside: Surviving Prison STREET MARKET CHEFS
Monsters 12am Deadliest 2.30am Bite Size Brainiac CHANNEL5, 7.30PM
Catch 1am Bear Grylls: Born 2.40am Oops TV 3.30am Lost Amanda Lamb challenges two
Survivor 2am Industrial 4.20am Sell Me the Answer Leicester chefs to produce two-course
Revelations 3am World War 5.10am-6am Are You Smarter meals in an alfresco kitchen using the
Two in HD Colour 3.50am How Than a 10 Year Old? tropical fruit plantain.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
30 6 8 22 7 22 
9 8
10 14 35  
45
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row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 12 11 12
28
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 10 17 16
 
above or to the left of it. 24 12 7
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    and you must not use the
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column, but it must be in a
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45
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4 Noisy altercation (5) 1 Digging implement (5)
 
  WORDWHEEL A W
7 Innovator (7)
8 General name
for beer (3)
2 American gangster ___
Parker, who teamed
with Clyde Barrow (6)
Using only the letters in the Wordwheel, you have 10 Closely crowded 3 Native American tents,
    ten minutes to find as many words as possible,
O R together (5) usually of conical shape (6)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters R 12 Quick evasive
movement (5)
4 Mr Pitt, actor (4)
5 In one’s sleeping place (4)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E C 13 Decorates with
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that coagulates on
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
S C 15 Armistice, truce (9)
19 Succulent plant with
exposure to air (5)
9 External medicament (6)
QUICK CROSSWORD spikes of showy 11 Large shrimp cooked
SUDOKU
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 Sport
Watch Kaymer go
from strength to
strength after
sensational year
German has achieved more in one year than many
players do in their entire careers – and he’s only 25
GOLF COMMENT
SAM TORRANCE
R
OBERT KARLSSON’S victory at
the Dubai World Championship
was well deserved by the Swede
but came in unusual circum-
stances that rang a few bells for me.
Karlsson holed his birdie putt to
win the second extra hole of a play-off
with Ian Poulter after the Englishman
had been penalised a shot for drop-
ping his ball on his marker.
Funnily enough, the same thing
happened to me one year at the
Dunhill Cup. Since it was matchplay,
it didn’t cost me a whole tournament,
but I know how it feels. It’s unlucky
but just one of those things.
CREDIT
In all fairness, that was the end of the
tournament and Karlsson was looking
likely to win anyway, so I’d rather give
credit to him.
He has had a good year – he ended
sixth in the Race to Dubai after win-
ing his second title of the year and is
up to 16 in the world rankings.
Poulter, meanwhile, has had a fan-
tastic year. The Ryder Cup star almost
David Villa scored a second-half brace
Picture: GETTY
ended the Race to Dubai with back-to-
back tournament wins, having tri-
umphed in Hong Kong earlier this
month, and is back up to eighth in the
world – one of four Englishmen in the
top 10.
HIGHLIGHT
Which brings us on to Martin Kaymer.
What can I say about the young
German that hasn’t been said
already? So many Europeans had a
good year – we’ve mentioned a couple
of them already – but Kaymer has
been sensational.
He has won four titles this season,
been part of the Ryder Cup success,
finished in the top 10 in three majors
and now won the race to Dubai. But
the highlight was winning the
USPGA, his first major.
He has always shown promise but
in the last 12 months has really come
to the fore. In one season he’s
achieved more than a lot of players do
in their entire careers. What a year.
He’s only 25 years old but already so
accomplished. He doesn’t have any
real weaknesses and has a fantastic
demeanour; that’s his biggest asset.
He will go from strength to strength.
My season on the Seniors Tour is
about to draw to a close too, and I’m
in Mauritius at the moment prepar-
ing for the final tournament of the
year. I haven’t gone through a year on
the tour without a title before so it’d
be nice to keep that run going with
victory in the Mauritius Commercial
Bank Open.
Barca show Jose
who’s the Real deal
▲
FOOTBALL
BY JAMES GOLDMAN
BARCELONA produced an astonish-
ing display of attacking football to
batter Real Madrid 5-0 at the Camo
Nou and hand Jose Mourinho his
heaviest ever defeat as a manager.
The Spanish heavyweights came
into this Clasico fixture both unbeat-
en and with Real leading their great
rivals by a solitary point.
But Barca had something to prove,
especially to Mourinho, who master-
minded their Champions League
downfall while at Inter Milan last
season.
And revenge was achieved in
grand style as Xavi and Pedro stroked
“SURVIVING THE ‘GABBATOIR’
GIVES ENGLAND HUGE EDGE”
ANDY LLOYD DISSECTS THE ACTION
FROM THE FIRST ASHES TEST: P35
Kaymer won a
first major and
the Race to
Dubai in a land-
mark season
Picture: GETTY
the home side into an early 2-0 lead.
The game was over shortly after the
break when David Villa struck twice
in three minutes, and substitute
Jeffren added an injury-time fifth.
ANALYSIS | TV REVENUES
Clashes between Barcelona and Real
Madrid draw huge foreign television
audiences, and the revenues serve
only to widen the gap between
Spain’s big two and the rest of La
Liga. Unlike in the Premier League,
where broadcast rights are sold col-
lectively, Spanish clubs sell their own,
meaning Barca and Real clean up.
SPORT | IN BRIEF
McCoy favourite for top award
GENERAL: Jockey Tony McCoy is the
favourite to win the prestigious 2010
BBC sports personality award. Golfers
Lee Westwood and Graeme McDowell,
darts legend Phil Taylor and diver Tom
Daley are also on the shortlist. Winter
Olympic gold medallist Amy Williams is RUGBY UNION: Leicester are set to be
also included, along with heptathlon
champion Jessica Ennis and England
cricketer Graeme Swann. Boxing’s
world heavyweight champion David
Haye and cycling sprint sensation Mark shoulder in Saturday’s 21-11 defeat to
Cavendish make up the top 10 con-
tenders.
Neville quells Beckham rumours “fractured scapula” but he faces at least
FOOTBALL: Phil Neville is refusing to
get carried away by the speculation
linking David Beckham with Everton.
Toffees boss David Moyes recently
admitted that he would welcome the
opportunity to bring the former
England captain back to England on
loan, with his commitments to MLS out- Nations campaign, which kicks-off on 4
fit Los Angeles Galaxy over for another February with a testing encounter
season. But Neville, who played with
33
Results
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SPORTS EDITOR FRANK DALLERES
email sport@cityam.com
Beckham at Manchester United, said:
“Obviously you would want a player of
that ilk to come to your club, but he’s an
LA Galaxy player and until we hear oth-
erwise we will respect that.”
Croft hammer blow for Leicester
without Tom Croft for their back-to-
back Heineken Cup ties against
Perpignan after it was confirmed the
England flanker suffered a broken
South Africa. Croft, 25, will see a spe-
cialist this week to determine whether
further action needs to be taken on the
four weeks on the sidelines.
Northampton wing Chris Ashton will
also be assessed by his club after a
head-on collision with Victor Matfield
left the Springbok captain with a bro-
ken rib. Croft, meanwhile, should be
available for the start of England's 6
against Wales in Cardiff.
 34 Sport CITYA.M. 30 NOVEMBER 2010

Strauss hails
Cook’s knock
as greatest
Ashes innings
Skipper can’t recall a better performance
from an Englishman Down Under and
claims his side have crucial momentum
▲

CRICKET Cooky did, with the concentration to

BY JAMES GOLDMAN see it through for such a long time.
It’s one of the really special innings
ENGLAND captain Andrew Strauss from an England player.”
hailed Alastair Cook’s match saving When Strauss finally declared at a
double hundred as the greatest Ashes scarcely believable 517-1, Cook was
innings by an Englishman in undefeated on 235 having surpassed
Australia. Donald Bradman’s highest score of
Cook’s maiden first class double 226 at the Gabba, and the partner-
hundred shattered numerous records ship of 329 with Trott, who finished
as his second-wicket partnership with 135 not out, was a record for any
Jonathon Trott helped not only England wicket in Australia.
to draw the game, but also to But all that mattered to England at
hammer away at the close was that they had rescued
Australia’s already the Test having been staring down
fragile confidence. the barrel of an innings defeat at Trott and Cook put
And Strauss the end of the third day. on a record stand
believes the Essex “It’s just great we came back into of 329 for the sec-
opener’s marathon the game, managed to get a draw ond wicket
10 hour effort has and finished so strongly,”
helped sway the said Strauss. “There’s not Pictures: GETTY
series momentum a long turnaround
in England’s favour before Adelaide and
ahead of the second both sets of players For Cook, 25, confidence could Australia finished on 107-1, chasing
Test in Adelaide will be keen to come hardly be higher, and yet it wasn’t so a nominal target of 297, with Ricky
which begins on out strong on the long ago that his position was under Ponting (right) thumping a 40 ball
Friday. first morning. threat, before a gutsy century against half-century.
Strauss (right) “Everyone talks Pakistan this summer at The Oval The Aussie skipper was reluctant to
said: “I’m not about how impor- earned him a reprieve. concede that England had siezed the
great on cricket- tant the first Test He said: “It’s amazing how quickly initiative, but the immediate call-up
ing history, but is against it turns round. If you keep working at of seamers Doug Bollinger and Ryan
you’d be hard- Australia in the right things and keep believing Harris suggets Autralia are hastily
pressed to think of Brisbane, so to you’re a good player, you get results. redrawing their battle plans
a better innings in get through that The dark days against Pakistan makes “I don't think anyone is certain [to
Australia. It must be from the posi- this extra special. The hundred at The play] yet,” Ponting said. “The fact we
a long time ago that a tion we were in Oval was a great boost. To back it up have brought two fast bowlers in, I’m
player batted as well as is a great effort.” here is very pleasing.” not sure if anyone is certain.”

Wenger asks for faith as he

prepares to shuffle his pack
craven Champions League surrender
ARSENAL away to Braga.
But Wenger is convinced that his
unstinting loyalty to a group of play-
WIGAN ATHLETIC ers who have failed to deliver silver-
ware in the last five years will
ultimately be vindicated. “I am still
quite optimistic, even if disappointed
▲
fident on the longer-term, like it is a
marathon, that will all come out –
keep with us, and keep faith with the
team.
“I know their attitude is spot on, I
know they have the quality, and we
will not always lose games where the
opponent only has one shot on goal.”

FOOTBALL
BY FRANK DALLERES
ARSENAL manager Arsene Wenger
insists his faltering team will justify
his faith in the long run, as he aims
to take another step towards a long-
awaited trophy tonight.
Gunners supporters have been test-
ed in recent weeks by home defeats to
Newcastle and then Tottenham, and a
by the results,” said the Frenchman,
who has vowed to field a strong side
against Wigan in the Carling Cup
quarter-final.
“I have no major reason to doubt
the team and the players, so even if
my disappointment was huge, maybe
that is why I am less down than many
people – because I see all the positive
signs which are in my team. I am con-
Midfielder Emmanuel Eboue has
miraculously recovered from a knee
injury while forward trio Robin van
Persie, Nicklas Bendtner and Theo
Walcott are likely to feature as
Wenger shuffles his pack.
Arsenal last night said they expect-
ed the fixture to go ahead, despite the
cold snap, but urged fans to monitor
the club’s website for updates. Eboue is in line for a miraculous comeback in tonight’s Carling Cup tie Picture: GETTY
CITYA.M. 30 NOVEMBER 2010 Sport 35

England should draw more positives

SCORECARD | FIRST TEST
ENGLAND 1ST INNINGS
Strauss c Hussey b Hilfenhaus 0
Cook c Watson b Siddle 67
Trott
Pietersen

Bell
Prior
b Watson 29
c Ponting b Siddle
Collingwood c North b Siddle
c Watson b Doherty 76
b Siddle
43
4

0
than an ordinary looking Australia
Broad lbw b Siddle 0
Swann lbw b Siddle 10 THE ALL-ROUNDER |
Anderson b Doherty 11 CONDITIONS, STATS AND BANTER
Finn not out 0
STATS OF THE DAY
Extras 6nb 6w 8lb 20 l For only the sixth time, a team
TOTAL (all out, 76.5 overs) 260 went past 500 for the loss of a soli-
Fall: 0, 41, 117, 125, 197, 197, 197, 228, 254, 260 tary wicket. The last time it hap-
ASHES COMMENT pened was in February 2008, when
Bowling: Hilfenhaus 19-4-60-1, Siddle 16-3-54- Bangladesh were on the receiving
6, Johnson 15-2-66-0, Watson 12-2-30-1, ANDY LLOYD end against South Africa.
Doherty 13.5-3-41-2, North 1-0-1-0

O
UR cricket columnist, former l The 329-run stand between
AUSTRALIA 1ST INNINGS England batsman and Alastair Cook and Jonathan Trott is
Watson c Strauss b Anderson 36 Warwickshire chairman Andy the highest by an England pair in
Katich c and b Finn 50 Lloyd, has been poring over all Australia, and only the third
the Ashes action. Here he dissects instance of a 300-plus partnership
Ponting c Prior b Anderson 10 what he’s learned from the play so far. for them in this country. It’s also
Clarke c Prior b Finn 9 the highest partnership at the
Hussey c Cook b Finn 195 ENGLAND HAVE PSYCHOLOGICAL EDGE Gabba, going past the 307-run
North c Collingwood b Swann 1 It may only have been a draw but it’s stand that Michael Hussey and
Haddin c Collingwood b Swann 136 England who take all the positives Brad Haddin had put together only
away from Brisbane. Other than the a couple of days back.
Johnson b Finn 0 efforts of Brad Haddin and Michael
Doherty c Cook b Finn 16 Hussey with the bat, and one burst l Cook’s unbeaten 235 is the high-
Siddle c Swann b Finn 6 from Peter Siddle with the ball, the est Test score by any batsman at
Hilfenhaus not out 1 Baggy Green plusses were few and far the Gabba, and first double-century
Extras 1nb 4w 4b 12lb 21 between. by a visiting batsman at the
The ‘Gabbatoir’ has been a fortress ground. The previous-best by an
TOTAL (all out, 158.4 overs) 481 for the Aussies over the last 20 years, overseas player was Martin
Fall: 78, 96, 100, 140, 143, 450, 458, 462, 472, and for England to have emerged Crowe's 188 in 1985. In fact, of the
481; Bowling: Anderson 37-13-99-2, Broad 33-7- comfortably unscathed is a huge 25 scores of 150 or more at the
72-0, Swann 43-5-128-2, Finn 33.4-1-41-0, bonus. Many Aussie fans I spoke to Gabba, only four have been scored
before the series felt that if their side by visiting batsmen.
Collingwood 12-1-41-0 failed to win in Brisbane, the game
was as good as up. FIGHTING TALK
ENGLAND 2ND INNINGS – DECLARED The fact the Aussies made a lot of “Had a beer with Ally Cook last
Strauss st Haddin b North 110 targeting our opening partnership, night. At this rate he will have
Cook not out 235 they identified Andrew Strauss as a 1,500 runs by the end of the series.
threat and Alastair Cook as a weak Delighted for him.” Former England
Trott not out 135 link, and it ended up producing a captain Michael Vaughan tweets
Extras 6nb 10w 17b 4lb 37 massive second innings stand was his support for England’s Brisbane
TOTAL (for 1, 152 overs) 517 another psychological hammer blow hero.
Fall: 188 to the hosts.
Bowling: Hilfenhaus 32-8-82-0, Siddle 24-4-90- “This English team is phenomenal.
PONTING HAS NO BOWLING WEAPONS They drew the Test and should go
0, North 19-3-47-1, Johnson 27-5-104-0, Much was made of Ricky Ponting’s Swann didn’t bowl at his best during the first Test in Brisbane Picture: GETTY on and win the series now.”
Doherty 35-5-107-0, Watson 15-2-66-0 reputation as a poor captain ahead of Andrew Flintoff gives an object les-
the first Test. While it’s true he lacks fear from that pair – they are just is a new Test and a new pitch and I’m son in how to count chickens before
AUSTRALIA 2ND INNINGS – CLOSE a bit of imagination in that regard more of the same. And if Bollinger sure Swann will have a say. they’ve hatched.
Watson not out 41 any skipper can only be as good as the was that good, he wouldn’t have been The Aussies, particularly Hussey
Katich c Strauss b Broad 4 bowlers he can choose from. carrying the drinks in Brisbane. who used his feet very effectively, did- “I think he needs a good couple of
Mitchell Johnson is terribly out of n’t let Swann settle at any point in months of remedial work and mak-
Ponting not out 51 sorts and it’s abundantly clear this SWANN WILL COME GOOD the first Test and attacked him at ing sure he gets into a position to
Extras 1w 4b 1lb 5pen 11 unit isn’t going to win back the If there’s one area where England every opportunity. Swann will know release the ball with a stable
TOTAL (for 1, 26 overs) 107 Ashes. Australia have reacted by call- undoubtedly hold the edge it’s in the what to expect now, he’s a smart seam.” Former Aussie bowler
Fall: 5; Bowling: Anderson 5-2-15-0, Broad 7-1- ing up Doug Bollinger and Ryan spin department. Graeme Swann did- cricketer and he’ll adapt his game Damien Fleming says it’s back to
Harris, and though it wouldn’t be fair n’t perform at his best in Brisbane, accordingly. He’s got all the skills, basics for Mitchell Johnson and his
18-1, Swann 8-0-33-0, Finn 4-0-25-0, Pietersen to call that a desperate measure, he’ll be the first to admit that, but sometimes he just hides them in wonky radar.
2-0-6-0 England certainly have nothing to that shouldn’t be a concern. Adelaide funny places.

Hammers can end Untied’s England bid team slams

‘embarrassing’ Panorama
unbeaten run, says Tomkins FOOTBALL
▲

more than rake over a series of histori-

ers, who are unbeaten in all competi-
WEST HAM UTD tions this season, if they are to reach
the last four of this competition for
the first time since 1990.
MANCHESTER UTD But England Under-21 internation-
al Tomkins insists spirit in the camp
is high, aided by the infectious per-
▲
“You can see Wally on the sidelines.
He just wants us to do well. He has
come in, done well for us and hope-
fully we can carry on the defensive
focus like this. It livens you up when
you see passion like that. It is good for
us. That is what he brings. We are
SENIOR members of England’s 2018
World Cup bid team have reacted furi-
ously to BBC Panorama’s investigation
into Fifa and branded the programme
“an embarrassment”.
Panorama accused three Fifa execu-
tive committee members of taking
cal allegations none of which are rele-
vant to the current bidding process. It
should be seen as an embarrassment to
the BBC.”
The Panorama programme has been
criticised over the timing of the screen-
ing with the 2018 World Cup host
nation set to be annouced on Thursday.

FOOTBALL sonality of Wally Downes, who going to need that. bribes, and alleged that Fifa vice-presi- But Uefa President Michel Platini
BY JAMES GOLDMAN joined the club’s coaching staff last “He told us how we can play for dent Jack Warner made efforts to sup- insisted last night that the controver-
week. each other, how we can cover each ply ticket touts. sial show would not have a detremen-
WEST HAM defender James Tomkins “It doesn’t get much bigger than other. And, if it has to go in the stand, Warner is the subject of accusations tal impact on England’s chances of
believes his side can cause a major the cup quarter-final,” he said. “The it has to go in the stand. That is that he “ordered [2010 World Cup] tick- winning the vote.
Carling Cup upset against mood is good in the dressing room. It important instead of taking any risks. ets costing $84,240 from the Fifa ticket He said: “I don’t think this [pro-
Manchester United tonight. is nice to get the win, to see the lads Deal with things if you have to.” office but the deal subsequently fell gramme] will have an effect, but I
The Hammers are still propping up buzzing. After a game when you win If West Ham are to pull off a shock through”. think what may affect the decision is
the Premier League table, despite there is no better feeling and hopeful- victory, it looks like they will have to An England 2018 statement said: the atmosphere going back a long time
Saturday’s 3-1 home win over Wigan ly we can just carry this on against do so without their skipper Scott “We stand by our previous position and what people have written about
and must overcome the league lead- United. Parker who has a chest infection. that the BBC’s Panorama did nothing Fifa in the British press for years.”
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