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Certified Distribution
04/10/10 - 31/10/10 is 110,406
ECB keeps
liquidity
flowing
EUROPEAN Central Bank (ECB) presi-
dent Jean-Claude Trichet emerged
victorious from his skirmish with
markets yesterday, as stocks sta-
bilised and the euro gained on the
back of ECB announcements.
The ECB announced that it would
continue its special liquidity pro-
gramme that are keeping Europe’s
banks out of default.
However, the Bank dashed hopes
that it would restart the bond-pur-
chasing programme that it launched
in May after the bailout of Greece.
Trichet had raised expectations of
further bond-buying by suggesting
that the Bank was prepared to inter-
vene in secondary bond markets, but
no announcement was made on the
subject during a much-anticipated
press conference yesterday.
But markets shook off the disap-
pointment yesterday.
The Eurostoxx 50 and the FTSE 100
both rose 2.2 per cent while the euro
jumped to a high of $1.324 against
the greenback. Banking stocks also
gained: Barclays was up 2.6 per cent,
Santander was up 5.1 per cent and
BNP Paribas rose 1.5 per cent.
Many of Europe’s banks have
becoming heavily reliant on the
ECB’s special liquidity scheme: its net
lending was equal in value to seven
per cent of Portuguese total bank
assets and 1.9 per cent of Spanish
total bank assets in October, accord-
ing to Deutsche Bank.
MORE ON EUROZONE: P4
BY JULIET SAMUEL
WORLD ECONOMY

The seventh day of snow and unseasonally cold temperatures meant 40 per cent of workers failed to make it into work yesterday Picture: PA
THE COST to the UK economy of the
mounting chaos bought by the snow
and unseasonally cold temperatures
could be as much as £1.2bn a day, it was
claimed yesterday.
As the seventh day of the cold snap
saw the disruption reach the south-east
of England, with more than six inches
of snow falling overnight, Labour’s
shadow transport secretary Maria Eagle
used the figure, estimated by insurer
RSA, to accuse the government of “com-
placency” amid the freezing weather
conditions.
For the capital, the London Chamber
of Commerce, forecast the cost of the
disruption caused by the snow, through
missed days at work and lost retail
trade, would “now undoubtedly be in
the millions.”
As many as two in five people were
unable to get into work yesterday, a sur-
vey by law firm Peninsula found, as
Gatwick Airport remained shut, com-
muter rail services were suspended and
road conditions remained treacherous.
While many chose to work from
home, law firm Kingsley Napley
warned the lack of a policy on weather-
related absence left employers vulnera-
ble to discrimination claims.
Head of employment law Richard Fox
said such a policy, clarifying the expec-
tations of an absent employee and
whether that worker would get paid if
ANGER OVER COST
OF SNOW FIASCO
BY KATIE HOPE
UK ECONOMY

www.cityam.com Issue 1,277 Friday 3 December 2010 FREE
JP MORGAN
SUED
MADOFF TRUSTEE
FILES $6.4BN
CLAIM P3
CAMERON’S 110 PER CENT JUST
WASN’T ENOUGH TO WIN
WORLD CUP HUMILIATION P4, P42-43,
BUSINESS WITH PERSONALITY
not able to work from home, would
ensure even treatment of all employees
and prevent possible discrimination
claims from an ad hoc system imple-
mented by day-to-day managers.
Transport secretary Philip
Hammond, who yesterday ordered an
urgent review of how the transport sys-
tem has coped, insisted that the govern-
ment was doing everything possible “to
keep Britain moving”, but that “the
scale of the weather event” had to be
taken into account.
Travellers are expected to face fur-
ther misery today with heavy snow
warnings for London and the South
East last night and widespread icy roads
expected. Gatwick Airport will remain
closed until at least 6.00am and train
companies in the south-east Southern,
the London-to-Brighton operator, and
Southeastern, paralysed by snowfall in
Kent, are both expected to have more
delays and cancellations into London.
One beneficiary of the weather how-
ever were the big shopping chains.
Marks & Spencer said there had been a
121 per cent increase in demand for
thermal clothing in the past week,
while Asda said it had sold about
100,000 units of de-icer and Waitrose
said sales for the past week were up 11
per cent overall on the previous year as
shoppers stocked up. However,
Waitrose parent John Lewis said the
past week had seen sales level with this
time last year due to lower customer
numbers in the poor conditions.
ALLISTER HEATH: P2
News
2 CITYA.M. 3 DECEMBER 2010
IoD: coalition
right on cuts
CHANCELLOR George Osborne must
not “wobble” on plans to reduce the
deficit, the Institute of Directors (IoD)
urged today.
Cuts in government spending will
not prevent strong, sustained eco-
nomic growth, they said.
And government job losses -- cur-
rently estimated at 330,000 -- will be
far lower than the 600,000 cuts seen
in the 1990s, the report states.
Private sector employment is
expected to increase by 1.5m by 2015.
The Office for Budget Responsibility
(OBR) expects this to “more than off-
set falling public sector employment.”
During the fiscal squeeze of the
1990s the economy grew by an aver-
age of 3.5 per cent, the IoD report
states.
“Unless we regain control of public
spending now, we could lose it for a
generation,” warned the group’s chief
economist Graeme Leach.
Yet cuts in government depart-
ments’ budgets are harsher than pre-
viously seen and could harm the UK’s
recovery, said Simon Kirby of the
National Institute of Economic and
Social Research (NIESR).
“We all agree on the need for con-
solidation,” he said. “But it should
only start once the economy can deal
with it. This is why I am concerned
about the cuts for next year.”
BY JULIAN HARRIS
UK ECONOMY

Snow chaos is turning UK into a joke
BRITAIN’S humiliating inability to
cope with winter conditions is becom-
ing almost unbearable. Heavy snow-
fall is not a freak event. It now
happens every year – and yet the
authorities and transport companies
appear utterly unable to learn any
meaningful lesson from the annual
debacle that is the onset of snow and
bad weather. It is beyond a bad joke
that so many train services have been
cancelled, that passengers have had to
sleep in carriages, that many have had
to put up with horrible commutes,
that airports are not working, that
roads are being turned into car parks
and that supermarkets are seeing sup-
ply chains disrupted. Business is being
lost, time wasted and the economy is
being damaged unnecessarily. It is
especially disastrous for retailers, who
need a good December ahead of what
will be a weak January, courtesy of
higher VAT.
Competitiveness is not just about
tax rates and legal systems. It is also
about a country’s transport, technolo-
gy and energy infrastructure. Yet for
all our chest-thumping about
Crossrail and mobile internet penetra-
tion rates, we are falling abysmally
short on all of these as a country (it’s
not just the snow; try and get a proper
broadband connection set up in an
office in central London and you will
soon discover that the UK is still suffer-
ing from a communist-era mindset).
London is meant to be one of the
financial and economic powerhouses
of the world – yet we are turning into
a laughing stock, incapacitated by the
kind of weather that a French,
German or American city could easily
cope with.
One problem is ideology: too many
people convinced themselves that
global warming would mean no more
cold winters and no more snow
(remember all those forecasts that
London and the South East would by
now be basking in a Mediterranean
climate?) Another is misplaced priori-
ties from government officials, who
cannot be bothered to focus on their
core responsibilities. When was the
last time most people saw a snow-
plough in operation in or around
London? The government may be
tightening its belt but councils own
the roads; it is their basic duty to keep
them clear. More grit is needed. Last
but not least, transport companies
and airports don’t seem to realise that
they need to spend more money on
ensuring that disruptions to their
services are almost non-existent,
regardless of weather conditions. The
whole thing is a disgrace. We need to
get our act together, and fast.
LEARNING FROM GOODWIN
So Sir Fred Goodwin, the man who
brought RBS to its knees, has escaped
sanctions from the Financial Services
Authority. After an 18-month investi-
gation, the FSA said while the bank
took a “series of bad decisions” these
blunders “were not the result of a lack
of integrity by any individual and we
did not identify any instances of fraud
or dishonest activity…or a failure of
governance on the part of the board.”
This has outraged many – but the
FSA is right. I have no time for the dis-
graceful Goodwin but crucially he did-
n’t break the law. It shouldn’t be
illegal to go bankrupt or to fail.
Shareholders angry about yesterday’s
verdict are barking up the wrong tree.
They need to organise themselves and
force boards to improve and tighten
the contracts they give CEOs. There
should be no more rewards for failure,
no massive payouts or pensions for
those who get the sack. But getting it
wrong should never be a crime.
allister.heath@cityam.com
NEWS | IN BRIEF
Cards overtake cash in UK
For the first time, UK consumers have
spent more using their debit cards than
with cash over the course of a year, data
suggests. Spending on debit cards
reached £272bn in the 12 months to
October, figures from the UK Payments
Council show. The statistics, released
every three months, showed spending
on cash stood at £269bn over the same
period. Credit card usage remained
steady but there was a further decline in
the number of cheques written.
Amazon.com invests $175m
Amazon.com is investing $175m in
online coupon company LivingSocial, a
pre-emptive strike against Google which
is looking to buy Groupon, another
coupon provider. LivingSocial said yes-
terday it also secured an $8m invest-
ment from Lightspeed Venture Partners,
adding that it will use the funds to grow
its business worldwide. LivingSocial said
it is currently booking revenues of more
than $1m a day on average and expects
well over $500m in 2011. Search engine
leader Google is talking to Groupon
about an acquisition, it emerged earlier
this week.
EDITOR’S LETTER
ALLISTER HEATH
7
th
Floor, Centurion House,
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Art Director Craig Gaymer
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
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Chancellor George
Osborne must keep
markets calm by
reducing the deficit,
said business leaders.
“I don’t know what he could do personally to add to the
response. The fact that he’s in Zurich probably has little to
do with London’s response. In fact, the potential benefits
of hosting a World Cup far outweigh any costs.”
CARLOS MICHEL | CUNNINGHAM LINDSEY
“I live in Ealing [West London], and I don’t drive or cycle. I
think Boris has a good response system, and I don’t
mind that he is in Zurich. Britain hosting the World Cup
would be pretty cool, actually.”
ELISE KATILOV | RK HARRISON
“I think he’s been doing his best, really. It certainly hasn’t
been easy, given all of the snow out there. The disap-
pointing thing is that rail services have shut
down, keeping people home.”
TONY LANCASTER | JUBILEE MANAGEMENT AGENCY
CITY VIEWS: IS BORIS JOHNSON HANDLING THE
SNOW SITUATION WELL? Interviews by Thomas Hamed
BANKS’ ASSET SELLING HINTS AT
BETTER CONDITIONS
Banks are selling some of the compa-
nies they took over from their private
equity owners during the financial
crisis, such as Swedish fridge-maker
Dometic and German construction
group DSI, indicating that the eco-
nomic cycle is turning. Bargain-hunt-
ing private equity executives have
been frustrated at the dearth of com-
panies being sold by the banks. But
now financial markets have rebound-
ed and the economy has stabilised
some banks are looking to exit.
JAPAN SUFFERS PANGS OVER KOREAN
PROWESS
Some 95 per cent of vehicles and 70
per cent of electronics sold in Japan
are made by local companies.But that
dynamic showed signs of shifting last
month with the Japanese launch of
Samsung’s Galaxy smartphone.
HESELTINE BEGINS REGIONAL ROAD
SHOW
Thirty years after Tarzan first swung
through the concrete jungles of
Britain’s blighted inner cities Michael
Heseltine is visiting again as part of
the latest government plan to reboot
the economies of some of the coun-
try’s poorest areas. He is chairing the
advisory board of its regional growth
fund, which will pay out £1.4bn over
three years for local projects.
WORLD OPINION COOLS ON
WIKILEAKS
WikiLeaks is testing the boundaries
of its public support round the
world, judging from a broad sweep
of international reaction. Publica-
tion of a cache of more than 250,000
US embassy cables has divided opin-
ion more evenly than its release ear-
lier this year of 76,000 documents
connected to the Afghan conflict
and 400,000 from the war in Iraq.
SPY IN WAGE PACKET TO TRACK
INCOME AND TAX
The taxman has stepped up plans to
download information straight from
pay packets, calling time on the P60
and other documents in an effort to
make sure the right amount of tax is
deducted under the Pay-As-You-Earn
system.
SOLICITOR FACING BRIBERY CHARGES
URGES COURT TO HALT EXTRADITION
A London solicitor asked the High
Court yesterday to block his extradi-
tion to America in connection with
an alleged multi-million dollar inter-
national bribery conspiracy. Jeffrey
Tesler, 62, a dual British-Israeli
national, is accused by US authori-
ties of conspiring to funnel more
than $130 million (£85 million) in
corrupt payments to Nigerian offi-
cials to secure engineering contracts.
SHELL TO BE PROSECUTED OVER
BACTON GAS TERMINAL FIRE
Royal Dutch Shell is facing "serious"
charges for alleged environmental
and safety problems connected to a
fire at its Bacton gas terminal almost
three years ago. The Environment
Agency and the Health and Safety
Executive (HSE) told the energy giant's
UK subsidiary on Thursday that the
company will be prosecuted jointly by
both authorities.
SHOPPERS LOSE OUT ON 'BILLIONS'
BECAUSE OF 'DECEITFUL' MARKETING
Websites, high street retailers and
even television shopping channels
have all engaged in a series of market-
ing practises that the Office of Fair
Trading has warned are damaging not
just to consumers but to the whole
economy. The OFT has highlighted
seven different techniques retailers
use to mislead consumers.
ELLISON SAYS ORACLE WILL 'GO
AFTER' H-P
Oracle Corp. will use new hardware
to attack onetime partner Hewlett-
Packard Co. in the market for server
systems, said Oracle Chief Executive
Larry Ellison. The jibe Thursday came
as Oracle announced new computers
based on the Sparc chip technology
developed by Sun Microsystems –
which Oracle acquired in January –
as well as updates to other products.
GOOGLE SET TO LAUNCH E-BOOK
VENTURE
Google is in the final stages of launch-
ing its long-awaited e-book retailing
venture, Google Editions, a move that
could shake up the way digital books
are sold. The long-delayed venture
recently has cleared several technical
and legal hurdles, people close to the
company say. It is set to debut in the
U.S. by the end of the year.
WHAT THE OTHER PAPERS SAY THIS MORNING
News
3 CITYA.M. 3 DECEMBER 2010
A CRACKDOWN on Europe’s share,
bond and derivative markets has
been proposed by the European
Commission as it believes current
market regulation needs updating.
Private trading platforms in banks
should be more transparent and regu-
lated directly, a draft consultation on
the EU’s Markets in Financial
Instruments Directive (MiFID)
obtained yesterday shows.
The paper says the directive
requires “significant extensions” as
part of global efforts under the G20
“to tackle less regulated and more
opaque parts of the financial system.”
It calls for tougher regulation of
trading facilities, technologies and
methods of execution to tackle the
increasing complexity of markets and
diversity in financial instruments.
It wants to tackle trading inside
banks or brokers, which exchanges
have criticised as too opaque, propos-
ing “a new sub-regime for crossing
systems within the family of organ-
ised trading facilities,” covering equi-
ties and other financial instruments.
Derivatives contracts that can be
centrally cleared and are “sufficiently
liquid” should be traded on an elec-
tronic platform such as an exchange,
a multilateral trading facility (MTF) or
a new category of trading platform to
be defined, it said.
“At a minimum this would imply
that trading on exchanges and elec-
tronic platforms becomes the norm
when the market in a given derivative
is suitably developed,” it said.
The proposed changes are similar
to recent US legislation to improve
market transparency.
There is also a backlash against
automated high-speed trading, which
can threaten “the orderly functioning
of markets,” and against high-fre-
quency trading. It proposes a specific
regime for automated trading and
requirements such as risk controls.
The EC should release the final doc-
ument next week when the two-
month consultation period begins.
EU in clamp
down over
trading rules
BY ALISON LOCK
FINANCIAL MARKETS

THE trustee seeking money for defraud-
ed former clients of Bernard Madoff said
he filed a $6.4bn (£4.1bn) lawsuit accus-
ing JPMorgan Chase of aiding the impris-
oned Ponzi schemer’s fraud as his main
banker yesterday.
The lawsuit is the second largest that
trustee Irving Picard has filed against for-
mer Madoff clients or others he believes
assisted in the estimated $65bn Ponzi
scheme.
JPMorgan, the second-largest US bank,
was for more than 20 years the main
banker for Bernard L. Madoff Investment
Securities, which the trustee is liquidat-
ing following its 11 December 2008 col-
lapse. Picard must file “clawback”
lawsuits to recover money lost in the
fraud by the two-year anniversary of the
Madoff firm’s demise. “While many
financial institutions enabled Madoff's
fraud, JPMorgan was at the very center of
that fraud, and thoroughly complicit in
it,” David Sheehan, a lawyer representing
the trustee.
JPMorgan said it will defend itself
against Picard’s lawsuit. “Any suggestion
that JPMorgan supported Madoff’s fraud
is utterly baseless and demonstrably
false,” spokesman Brian Marchiony said.
“Contrary to the trustee’s allegations,
JPMorgan did not know about or in any
way assist in the fraud orchestrated by
Bernard Madoff.”
Madoff trustee
sues JPMorgan
for $6.4bn
FRAUD

MEDIA mogul Barry Diller stepped
down as chief executive of Internet
company InterActiveCorp (IAC) yester-
day.
IAC, a wide collection of websites,
said Diller will be replaced by Greg
Blatt, the chief executive of IAC’s
online dating site Match.com.
However, Diller will remain as chair-
man of IAC.
Also, rival Liberty Media says it has
exchanged its 60 per cent stake in
IAC for the company’s Evite and
Gifts.com businesses and around
$220m in cash. The exchange was
designed to be tax-free to both IAC
and Liberty.
In a long career Diller ran
Paramount Pictures and gave the
green light to films Saturday Night
Fever and Raiders of the Lost Ark.
He also set up Fox TV and commis-
sioned The Simpsons.
US mogul Barry Diller
steps down as CEO at IAC
Barry Diller is stepping down as chief executive of IAC but staying on as chair Picture: GETTY
BY ROGER BAIRD
MEDIA

PRIME minister David Cameron’s 110
per cent he said he was putting into
the UK’s dream of hosting the 2018
World Cup may not have been
enough, but the economy can still
benefit – if our team can stay in the
tournament long enough, an expert
said yesterday.
Howard Archer, chief economist at
consultancy IHS Global Insight, said
while hosting the World Cup could
have added 0.2 to 0.3 per cent to GDP
in 2018 – a similar level to his forecast
for the 2012 Olympics – the UK could
still feel the benefit from games
played in Russia.
Consumer spending should still lift
the economy by billions as people buy
televisions and T-shirts, he said.
“We saw it in the second quarter
this year – the economy grew 1.2 per
cent with a definite spike in con-
sumer spending influenced by the
World Cup,” he said.
The England bid’s reliance on exist-
ing infrastructure would have meant
less new construction spend, which
would also have reduced the overall
economic impact. “There would not
have been much new building
because we’ve already got the stadia
there,” Archer said.
The defining factor would be the
England team’s performance, he said.
“The better England does, the big-
ger the economic boost tends to be,
because the the more matches
England play and the longer they last,
the more people buy.
PriceWaterhouseCoopers, which
advised the England bid, estimated
that hosting the Cup could have
added at least £3.2bn to the UK econo-
my in 2018. “Hosting the World Cup
would have been great news for the
UK economy,” chairman and senior
partner Ian Powell said.
2018 can still
boost UK GDP
LONDON
CITY TO
STOCKHOLM
FROM £65
ONE WAY
BY ALISON LOCK
UK ECONOMY

STANDARD & Poor’s yesterday warned
it could cut Greece’s BB-plus credit rat-
ing if it becomes clear that the pro-
posed European Stability Mechanism
will favor public creditors to the detri-
ment of private bond holders.
Greece, as a potential recipient of
European Stability Mechanism (ESM)
funding, could have its ratings nega-
tively affected by the new rules, S&P
said, echoing a warning it issued ear-
lier this week regarding Portugal's
ratings. “We believe that assigning
‘preferred creditor’ status to future
official lending via the ESM could be
detrimental to the ability of non-offi-
cial holders of sovereign debt to be
repaid,” S&P said in a statement.
S&P said it will await details of the
plan to make its decision, which
shouldn’t take longer than three
months.
S&P warns it could downgrade
Greece in three months time
EUROZONE ECONOMY

A EUROPEAN mechanism to share
the burden of potential defaults with
the private sector is a “step in the
right direction,” the Institute of
International Finance (IIF), a bank lob-
bying group, said yesterday.
Private creditors must be involved
in debt restructuring negotiations
since the very beginning, however,
and their role in the process still
needs to be clarified, the IIF said.
Eurozone finance ministers agreed
last weekend that sovereign bonds
issued as of 2013 would carry collec-
tive action clauses (CAC), an instru-
ment that allows a country to
restructure its debt with the agree-
ment of only a certain percentage of
creditors.
“Collective action clauses are very
positive, given their history,” said IIF
board member William Rhodes, who
is also chairman of Citigroup.
“Mexico in 2002 was the first coun-
try to put them in. They did it on a vol-
untary basis when they had good
market access, and they did it because
they thought that was a prudent and
correct thing to do,” Rhodes said.
Investors and ratings agencies have
expressed concern about the new
European rules for handling debt
crises as of 2013. Many investors were
rattled by the new mechanism as it
puts an end to the era of automatic
sovereign bailouts.
IIF: EU plan to share default
burden is the right strategy
News
4 CITYA.M. 3 DECEMBER 2010
JOHNSON IS NEW IFS DIRECTOR
PAUL Johnson is to be the new director of the Institute for Fiscal Studies (IFS), the think-
tank announced today. Johnson will replace Robert Chote, who left to chair the Office for
Budget Responsibility (OBR) in the summer. Johnson said: “With the government facing
an unprecedented fiscal deficit, having recently announced radical changes to public
spending, this is an important and fascinating moment to be taking over.”
BY ALISON LOCK
EUROZONE ECONOMY

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News
6 CITYA.M. 3 DECEMBER 2010
SHAMED banker Sir Fred Goodwin
escaped censure for his role in the
near-collapse of Royal Bank of
Scotland (RBS) yesterday.
After an 18-month investigation
the Financial Services Authority (FSA)
decided there was no fraud or dishon-
est activity by the former bank boss or
his executives.
It said a series of “bad decisions”
were made, in particular during the
doomed takeover of Dutch bank ABN
Amro, but said the issues did not war-
rant enforcement action.
However, the FSA hinted that the
former RBS directors may not be
granted a license to work in the City
again if they applied.
The news was welcomed by British
Bankers’ Association chief executive
Angela Knight who said that, while
“catastrophic” decisions were made,
censuring Goodwin could have been
counter productive.
She said: “It you start fining people
for making bad decisions you could
end up in a situation where no deci-
sions are being made.
However, Labour MP Michael
Meacher slammed the FSA and called
for Goodwin and his executives to be
thrown in prison, adding: “The FSA
appears not just toothless, but gum-
less and jawless. Mismanagement on
this gigantic scale cannot simply be
written off.”
Rob MacGregor, Unite national offi-
cer also criticised the ruling: “The
report’s conclusions are an outrage. It
is unacceptable to suggest that the
behaviour of the management in this
iconic UK bank did not ‘lack integrity’
when they brought RBS to its knees.
“By failing to bring any formal
charges they have allowed some of
the biggest villains of the financial
crisis to go on enjoying their million-
aire lifestyles.”
The review was undertaken inde-
pendently by PwC.
Goodwin is now a senior adviser to
the Edinburgh-based architecture
firm RMJM.
Scot free... No
censure for
Fred the Shred
Sir Fred Goodwin did not act dishonestly, the FSA investigation found. Picture: REUTERS
BY STEVE DINNEEN
ENFORCEMENT

TOM McKillop apologised for his
role in the financial crisis, admitting
to having no qualifications in bank-
ing to the Treasury Select
Committee. The former chemist and
pharmaceuticals chief executive has
now moved back into the field he is
more familiar with. He is chairman
of the British Pharma Group, vice-
president of the European Federation
of Pharmaceutical Industries and
Associations and chairman of the
North West Science Council.
TOM MCKILLOP
FORMER RBS
CHAIRMAN
JOHNNY Cameron is the only for-
mer RBS executive to be publicly
rapped over the banking crisis. He
was banned by the FSA from taking
on a top City job. In October he
landed a new role advising boutique
Gleacher Shacklock, where his role
entails helping the corporate finance
advisory firm work on deals, and
win new business. He is understood
to have carved a niche in debt
restructuring.
JOHNNY
CAMERON
FORMER RBS
INVESTMENT
BANK CHIEF
AMERICAN International Group (AIG)
is considering another debt offering
after the success of its $2bn (£1.3bn)
sale earlier this week, its chairman
Steve Miller said yesterday.
In an interview at The Deal’s Deal
Economy conference, Miller said,
“Well, we’re having second thoughts,”
when he was asked if the firm would
tap debt markets again.
AIG, once the world’s largest insur-
ance company, sold $500m in three-
year notes and $1.5bn in 10-year paper
on Tuesday, with heavy demand as it
offered high yields for an investment-
grade company.
The US government prevented AIG
from failing during the financial cri-
sis. After AIG completes a recapitalisa-
tion deal in the first quarter, it will be
92.1 per cent owned by the US
Treasury and will still owe taxpayers
about $100bn from its roughly
$182bn bailout.
AIG chief executive Robert
Benmosche said in November the
firm, wanted to tap the debt market
in the fourth quarter and the equity
market early next year to raise about
$3.5bn. Miller called the debt sale a
“milestone” for the firm, given it was
AIG’s first access to the capital mar-
kets at the holding company level
since August 2008.
NEWS Corp has submitted a series of
proposals to the EU in a bid to ease
concerns over its proposed takeover
of BSkyB.
It is understood Rupert Murdoch’s
firm is willing to be bound by strict
competition rules to avoid gaining an
unfair advantage over rivals.
However, company sources down-
played speculation Murdoch could
sell key assets such as Sky News or the
Times in order to force through the
deal.
EU regulators have extended the
deadline on the first phase of their
investigation of the deal to 22
December to consider the proposals.
It will then decide whether to
launch a full investigation into the
firm that would last around four
months.
British communications regulator
Ofcom is also reviewing the case on
media plurality issues.
News Corp is desperate to clear the
regulatory hurdles as soon as possi-
ble, with its potential acquisition
appreciating in value.
News Corp, which also owns British
newspapers the Sun and sister paper
the News of the World, wants to buy
the 61 per cent of BSkyB it does not
already own after floating the firm in
1994.
It has already had a bid of 700p a
share rejected by the Sky board. The
two sides have now agreed to halt
negotiations until a deal in principle
has been approved.
Sky’s independent directors have
said they would be prepared to sup-
port a bid of above 800p a share from
News Corp.
James Murdoch, News Corp’s
European boss, has warned the UK
could lose out on investment if the
deal is blocked.
News Corp
tries to woo
EU over Sky
American International Group
mulls return to the debt markets
BY STEVE DINNEEN
MEDIA

FINANCIAL SERVICES

News
7 CITYA.M. 3 DECEMBER 2010
BT’S head of retail Gavin
Patterson is to join the board
of British Airways (BA).
Patterson, who also has a
place on the BT Group board,
resigned as a director of
Johnston Press last year.
BA sales and marketing
director Andrew Crawley, who
was acquitted during the col-
lapsed price fixing case in May,
has been promoted by the air-
line to commercial director.
Jumeirah Group chief oper-
ating officer Frank van der
Post will join BA as managing
director of brands in January.
BT announced its own
shake-up at its Global Services
division yesterday, creating
four new executive roles.
Andy Nicholson will head
up Global Service’s global
banking and financial markets
arm; Neil Rogers leads for glob-
al government & health; Kim
McMann will run global con-
sumer packaged goods and Bas
Burger takes charge of the
firm’s global commerce organ-
isation. They will report to
Global Services chief executive
Jeff Kelly.
BT retail chief joins the
board at British Airways
BT’s head of retail Gavin Patterson, who is already on BT Group’s board, will now join British Airways’ board
BY STEVE DINNEEN
TELECOMS

710
700
720
730
14Oct 12Nov 15Sep
ANALYSIS l BSkyB Group
p
729.00
02 Dec
CONTROVERSIAL plans to force com-
panies to publish the pay gap between
their male and female employees were
abandoned by government yesterday.
In another Liberal Democrat policy
U-turn, the government will not
enforce the compulsory equal pay
audits proposed in the Equality Act
and will instead work with businesses
to introduce a voluntary scheme.
The government billed the move to
limit the two sections, drafted by
Labour, as a rolling back of its involve-
ment in people’s lives.
“New legislation and increased reg-
ulation has produced diminishing
returns, and in recent years progress
on equality has stalled and in some
areas begun to reverse,” the Equality
Strategy published yesterday said.
But the Lib Dem election manifesto
and past speeches by Lib Dem Lynne
Featherstone, now equalities minister,
pledged to introduce the audits.
Section 78 of the Equality Act would
impose audits on companies with
more than 250 employees that do not
voluntarily disclose pay by gender by
April 2013.
But the section has not been struck
off the Act and could be reinstated if a
voluntary arrangement fails.
Campaigners reacted with dismay,
but business groups expressed relief.
“There is no justification for the gov-
ernment using regulation in this area.
We believe that the vast majority of
businesses are rightly paying women
the same as men for the same work,”
said Institute of Directors director-gen-
eral Miles Templeman.
The CBI welcomed the commitment
to a voluntary framework to improve
gender diversity.
Gender pay
audit plans
are scrapped
THE WHITE House oil spill commis-
sion yesterday challenged offshore
drillers to boost safety standards,
detailing proposals for the creation of
an independent, self-regulating
industry group and reformed govern-
ment oversight.
Created in the aftermath of the BP
drilling accident in the Gulf of
Mexico, the commission said the
entire offshore oil industry needed to
increase its focus on safety and such
an industry group could hold firms
accountable.
“The oil and gas industry needs to
embrace a new safety culture,” com-
mission co-chair Bill Reilly said at the
start of a two-day meeting to help pre-
pare the panel’s final report.
Reilly said a lack of resources had
plagued the government’s offshore
drilling regulator for years, which he
said justified the Obama administra-
tion’s decision to delay expansion of
offshore drilling to areas off the
Atlantic coast and in the eastern Gulf.
“The industry is upset about it, but
one has to ask how a decision could
ever have been made otherwise, given
the poor state of the agency itself,”
Reilly said. The panel is considering
pushing for the creation of a self-regu-
lating safety organisation for offshore
drilling.
US oil spill panel
says new safety
culture needed
BY ALISON LOCK
POLITICS

ENERGY

● Women are paid 22 per cent less than men
on average, according to government figures.
● UK pay gap is expected to close in 2067.
● The audit was meant to apply to all firms
with more than 250 employees.
FAST FACTS | PAY INEQUALITY
News
8 CITYA.M. 3 DECEMBER 2010
BEST OF THE BROKERS
To appear in Best of the Brokers email your research to notes@cityam.com
ANALYSIS l Volkswagen
100
80
120
6Sep 24sep 14Oct 3Nov 23Nov

112.90
02 Dec
VOLKSWAGEN
S&P Equity Research has raised its 12-
month target price to €145 from €125 and
reiterated its “buy” recommendation on
Volkswagen (VW) preference shares. It
says VW remains in an excellent position in
the medium term with what it expects to
be €20bn industrial net cash at the end of
the year, a strong double-digit EBIT margin
and good sales prospects from its highly
important Audi division.
ANALYSIS l Electra Private Equity
1,500
1,300
1,700
1,800
6Sep 24sep 14Oct 3Nov 23Nov
p
1,605.00
02 Dec
ELECTRA PRIVATE EQUITY
Winterflood said Electra Private Equity
produced a good set of results, which bene-
fited from the sales of some recent oppor-
tunistic investments as well as from some
of its older investments. In share price
terms, performance has been impressive; it
calculates that over the last 12 months, the
fund’s share price has increased by 32 per
cent, compared with the FTSE All Share
which has risen 11 per cent.
ANALYSIS l Shire
1,480
1,420
1,520
1,560
6Sep 24sep 14Oct 3Nov 23Nov
p
1,605.00
02 Dec
SHIRE PHARMACEUTICALS
Shore Capital has reiterated its “buy” rec-
ommendation for Shire, saying the pharma-
ceutical firm is in a enviable position. Shire
has delivered 15 per cent sales growth as
well as 15 per cent earnings per share
growth. The broker says Shire is positioned
to continue to do well despite warnings
over earnings momentum in 2011 and a
possible FDA review of one the companies
core franchises.
News
9 CITYA.M. 3 DECEMBER 2010
MOUCHEL yesterday confirmed
Deloitte has been drafted in to exam-
ine how far the firm’s future income
could drop, sparking fears it could fol-
low Connaught and Rok into adminis-
tration.
The engineering consulting and
design group has been rocked by
swingeing cuts in government spend-
ing, resulting in the haemorrhaging
of contract income.
Deloitte was called in by the firm’s
lenders – including Royal Bank of
Scotland (RBS), Barclays and Lloyds –
to complete the review before it refi-
nances its £190m debt pile.
Mouchel is already spending huge
sums to service its debt and if its
banks are forced to lend it more it is
likely to be at sky-high rates. Almost a
third of Mouchel’s debt is due to be
paid back in 2012.
Industry sources told City A.M. the
review does not mean Mouchel will
follow in the footsteps of Connaught
and Rok. However, the news is likely to
spook investors who have already been
hit by a series of profit warnings.
A company spokesman said:
“Mouchel confirms that Deloitte has
been appointed by its lending banks,
with the agreement of the company,
to perform a limited scope review.
“Mouchel continues to expect the
refinancing to be completed by the
time of its interim results in March
2011. Its banks remain supportive.”
Mouchel, which works on govern-
ment projects such as highway main-
tenance, slumped to a full-year loss in
October and warned of an uncertain
outlook due to government austerity
measures, which has wiped more than
a quarter from its stock market value
this year.
Mouchel calls
in Deloitte as
austerity bites
BY STEVE DINNEEN
OUTSOURCING

Mouchel chief executive Richard Cuthbert says the firm has the confidence of its lenders
GERRY Loftus, national head of reor-
ganisation services at Deloitte, is
understood to be overseeing the
Mouchel account.
He joined Deloitte in May 2001.
Before this he worked in PwC’s finan-
cial advisory services division for 14
years, seven of which he was a part-
ner.
He specialises in reviewing the busi-
ness strategies of medium and large
firms in financial trouble, including
developing turnaround strategies and
balance sheet reconstructions.
Earlier this year Loftus is understood
to have worked on the restructuring
of troubled UK-based Greek telecoms
giant Wind Hellas, which had only
just emerged from administration.
GERRY LOFTUS
DELOITTE
● September 2010
Social housing repair firm Connaught put
most of its business into administration
after its lenders refused to fund the com-
pany further.
The FTSE 250 member said its public sec-
tor business will be put into the hands of
administrators KPMG, though its environ-
ment and compliance arms will remain in
operation. The company blamed govern-
ment spending cuts for its dire financial
state. Unsecured lenders exposed to the
firm’s social maintenance arm will recover
at most one penny in the pound.
It had around £220m of debt, provided by
six banks and four other creditors.
Connaught drafted in Deloitte to examine
its accounting practices in July, the results
of which have not been made public. The
Connaught administration will be one of
KPMG’s largest jobs in several years.
CONNAUGHT | BLAMES CUTS
● November 2010
Rok said it would go into administration
and trading in its shares was suspended.
Just 500 jobs out of a workforce of 3,800
look set to be saved after
PriceWaterhouseCoopers (PwC) found
buyers for only parts of the firm.
PwC said it had sold parcels of the con-
struction and social house building divi-
sion to Mansell Construction Services, a
subsidiary of Balfour Beatty, saving 381
jobs. PwC is retaining a team of 200 peo-
ple across the group to help wind up the
business but these jobs will go once the
parent group closes.
In September Rok cleared its former
finance director Ashley Martin after an
investigation failed to uncover any evi-
dence of malpractice on his behalf related
to problems at its plumbing, heating and
electrical unit.
ROK | NEXT DOMINO TO FALL
SHARES in Desire Petroleum yester-
day soared after the explorer said it
had struck oil in the Falkland Islands
and was testing to see if the find was
commercially viable.
The firm’s stock closed up 26 per
cent at 132.25p. News of this find
comes after rival Rockhoppers also said
it had found oil there earlier this year.
Desire chairman Stephen Phipps
hinted that Desire will step up its dis-
covery activities there. Phipps said:
“This discovery combined with
Rockhoppers’ Sea Lion discovery con-
firms our belief that the eastern
flank play fairway in the North
Falkland Basin is highly prospective
and that further oil fields will be dis-
covered in this area.”
The discovery could ignite tensions
between Argentina and the UK over
the islands, located in the South
Atlantic Ocean. The UK successfully
repelled an Argentinian invasion in
1982, and the islands have remained
under British control ever since.
Desire Petroleum shares
leap over Falklands strike
OIL

PEPSICO said yesterday it will buy a
majority stake in Russian juice and
dairy company Wimm-Bill-Dann
(WBD) for an initial deal price of
$3.8bn (£2.43bn) in its most ambi-
tious overseas purchase to date.
The deal will make PepsiCo Russia’s
largest food and drink maker. PepsiCo
plans to buy 66 per cent of the firm.
However, the US company said it
will also offer to buy the remaining
shares of WBD after the initial deal
closes, including $1bn in debt. Pepsi
values the entire Russian company at
$5.4bn.
Pepsi’s price of $33 per American
depositary receipt for WBD repre-
sents a 32 per cent premium to the
firm’s 30-day average trading price.
Hugh Johnston, PepsiCo’s chief
financial officer, said he expected to
clear any regulatory hurdles and to
close the deal by the second quarter.
The acquisition will make Russia
PepsiCo’s top overseas market replac-
ing Mexico.
It sees the company follow large
consumer products makers such as
Kraft Foods and Procter & Gamble,
which are investing billions in culti-
vating emerging markets like Brazil,
Russia, India and China (Bric) as
growth at home slows.
US acquisitions in the emerging
markets this year have increased by a
staggering amount.
They currently total $23.8bn – an
increase of 94 per cent on last year
and the biggest US emerging market
activity since 2007.
Worldwide cross-border mergers
and acquisitions (M&A) total
$843.2bn this year, up 54 per cent
year-on-year, while cross-border M&A
accounts for 39 per cent of worldwide
deal activity this year, compared to 27
per cent last year, according to data
from Thomson Reuters.
PepsiCo eyes Russia for growth
BY MATTHEW WEST
FOOD & DRINK

Mouchel blames
George Osborne’s
austerity cuts for its
slump as it loses
money on key projects.
100
80
60
120
140
14Oct 12Nov 15Sep
ANALYSIS l Mouchel
p
66.00
02 Dec
BRITISH construction unexpectedly
increased in November, it was
revealed yesterday.
In a boost for the economic recov-
ery, construction increased to 51.8 in
the Purchasing Managers Index (PMI),
a measure of business activity.
The index was up slightly, from
51.6 in October. All figures over 50
indicate growth in the sector.
The rate of growth had fallen in
recent months, after the boom wit-
nessed in the second and third quar-
ters of the year. Between April and
October, the index fell by 6.6 points.
The surge in construction from
April to June -- attributed to a sudden
uptake of projects delayed by the
recession and the harsh winter condi-
tions – added 0.6 per cent growth to
British GDP, according to Howard
Archer of IHS Global Insight.
Yet the economy can no longer rely
on construction to significantly aid
its recovery. The industry totals just
6.3 per cent of GDP, said Archer.
Construction growth nonetheless
remains steady, driven largely by com-
mercial activity. “Private commercial
development is the most resilient
sub-sector at the present time,” said
Simon Rubinsohn of the Royal
Institution of Chartered Surveyors.
Yet house building fell for the third
consecutive month.
“The weaker housing market
makes builders nervous about com-
mitting to large new building proj-
ects,” said David Noble of the
Chartered Institute of Purchasing and
Supply, who compiled the data.
Construction
projects still
growing in UK
NEW car registrations are up across
core Eurozone countries, according
to figures released yesterday by
Barclays Capital Research.
The group estimates that car sales
across the single currency area could
rise to 10.26m in November, a 4.3 per
cent rise on October.
French sales have maintained their
momentum, in spite of a government
scrappage scheme expiring earlier in
the year. There was a small uptick of
sales in Spain, yet rates still remain
well below their long-term average
In Germany seasonally adjusted car
sales increased by 3.5 per cent on
September. This was the third positive
reading in a row, as the German econ-
omy continues to surge forwards.
Earlier this week it was revealed
that German factory employment in
November rose at the second highest
rate in the history of the Purchasing
Managers Index (PMI) for manufactur-
ing.
Today overall PMI figures are
released for the whole of the
Eurozone for November, as well as
retail sales for October.
Growth steady in Europe
but Greece still in decline




































THE Eurozone economy expanded by
0.4 per cent in the three months to
September, it was revealed yesterday.
The rate of growth slowed, down
from one per cent in the previous
quarter, said the European
Commission’s Eurostat office.
Yet household consumption also
grew, creeping up by 0.3 per cent.
Growth continued to be driven by
core economies such as Germany,
which recorded 0.7 per cent growth.
The Eurozone’s troubled
economies, however, are lagging
behind. In Spain GDP stagnated,
while the Greek economy contracted
by 1.1 per cent. Greek GDP also fell in
the second quarter of the year, down
by 1.7 per cent.
Portugal experienced some
growth, with GDP rising by 0.4 per
cent, up from 0.2 per cent in the
three months to June.
Meanwhile, industrial producer
prices were up by 0.4 per cent in the
euro area for October.
“Underlying prices are likely to
remain moderate over the medium
term,” said Fabio Fois of Barclays
Capital Research. “The amount of
slack in the economy accumulated
during the crisis is still weighing on
domestic demand.”
Car registrations up
in key Eurozone areas
BY JULIAN HARRIS
UK ECONOMY

PENDING house sales surprisingly
shot up in the US for October, accord-
ing to data released yesterday.
The Pending Home Sales Index
(PHSI) showed that contracts
exchanged on properties increased by
10.4 per cent compared to September,
defying a predicted fall.
The result comes as a boost for the
housing market, after the index fell
by 1.8 per cent in September.
At 80.9 points, the index is still
well below its level for the same time
the previous year – 112.4 points.
However, the 2009 results were
warped in the final months due to
tax credits for first time buyers,
which caused a rush of new sales.
And new vehicle sales are also on
the up. In November 873,323 cars and
small trucks were sold in the US, 17
per cent more than at the same time
the previous year.
But there was bad news for the US,
as jobless claims went up. An extra
26,000 claimants signed on in the
week ending 27 November, the labour
department reported.
US home sales
rise but jobless
claims also up
EUROZONE ECONOMY

US ECONOMY

EUROZONE ECONOMY

Economic News
10 CITYA.M. 3 DECEMBER 2010
QE IS RIGHT FOR AMERICA, SAYS BULLARD
QUANTITATIVE EASING boosts the economy, albeit “with a lag of six to 12 months,”
according to the Federal Reserve’s James Bullard who was speaking in Washington DC
yesterday. Bullard, who votes on the committee that controls US monetary policy, hit
back at critics who accuse the policy of weakening the dollar and provoking inflation.
NEWS | IN BRIEF
Cross border transfers level out
Foreign Direct Investment (FDI) is
remaining flat as the year nears its end,
after a long period of decline, according
to the Organisation of Economic Co-
operation and Development (OECD). The
rate is still expected to fall this year, by
around eight per cent, yet this is a signif-
icant improvement on the 43 per cent
fall last year. Investment prospects for
next year depend partly on whether
countries avoid protectionism or conflict
over foreign exchange policies, the OECD
said.
Stagnation for Brazilian industry
Brazilian factory production rose in
October, yet was significantly slower
than the previous month, data released
yesterday showed. Production rose by
2.1 per cent, yet economists had expect-
ed a rise of 2.5 per cent. September had
seen a 6.3 per cent manufacturing rise
for the emerging economy.
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-
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
includes return flights
(see terms and conditions below;
heartfelt thanks to the company for
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
Enter our reader survey at
www.cityamsurvey.comfor the chance to
a truly amazing
week-long holiday
Terms and Conditions – CITY AM. 7 nights’ accommodation is provided for two adults at any Sandals resort in St. Lucia. Accommodation is on a Luxury Included® (all-inclusive) basis in a deluxe room. Resort transfers and return flights from London to St. Lucia are included but domestic
transfers are not included. There is no cash alternative to the prize and spending money is not included. Holiday insurance is not included and must be purchased before travel. The prize is subject to availability, cannot be taken during peak seasons (Easter, July, August, December and New Year) and
must be confirmed no later than 30 days and no earlier than 90 days prior to departure. Once dates are confirmed there will be an administration fee for any changes made to the reservation. This fee varies in accordance with the airlines. The prize is strictly non transferable, non refundable, and
is subject to Sandals Resorts’ normal terms and conditions. The prize must be taken before 30 November 2011. Sandals’ resorts are for couples. Sandals Resorts reserve the right to relocate prize winners from the stated resort to an alternative Sandals resort if rooms become unavailable for the
travel dates requested. By entering this competition you consent to your details being shared with our parent company located outside the European Economic Area. The competition is not open to employees and their immediate families of promoter Unique Vacations (UK) Ltd and their associated
agencies. Prize winners must be over 18. One entry per household. ATOL protected 2538. ABTA V2043.
EDITOR’S LETTER
ALLISTER HEATH
WIN
FOR TWO
TO ONE OF SANDALS’ LUXURY INCLUDED
®
RESORTS IN BEAUTIFUL SAINT LUCIA
Errors & omissions excepted. Goods subject to availability. Offers, prices, specifications and services are subject to change without prior notice and relate to
mainland UK stores only. All prices include VAT. Savings based on previous sell prices. Ask in store for details. ‘
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12 CITYA.M. 3 DECEMBER 2010
EDITED BY
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TUX-CLAD SOLICITORS
FLOCK TO FISH MARKET
Left: Norton Rose’s
Sir David Lewis
shares a drink
with Bill Knight,
chairman of the
City of London Law
Society and the
awards’ judging
panel.
Right: UNHCR
legal officer
Alexandra
McDowall was on
a table hosted by
Baker &
McKenzie’s London
managing partner,
Gary Senior.
HUNDREDS of lawyers gave their well-
worn tuxedos another outing last
night as they gathered for the British
Legal Awards hosted by Legal Week,
with the barristers characteristically
out-dressing the solicitors.
Catching City of London law society
chair Bill Knight sharing a drink with
Norton Rose’s Sir David Lewis before
the evening kicked off, The Capitalist
inquired as to what Lewis was in the
running for. “He’s too old to run!”
quipped Knight cheerily over his
champagne flute.
It wasn’t long before the lawyers
were treated to a strident round of
songs by 2008 X Factor finalist Ruth
Lorenzo, whose lycra jumpsuit cer-
tainly raised eyebrows before the legal
brains filling the room turned from
the stage to the screen of their black-
berries.
But as comedian Jack Dee took the
floor, the lawyers looked up. “This
was of course London’s first fish mar-
ket,” Dee said of the Old Billingsgate
venue. “Lots of cold, slippery slimy
creatures… why here for the British
legal awards?”
As donation envelopes were passed
around in favour of Changing Faces, a
charity for disfigured people, and
other envelopes were cracked open to
dole out prizes to the lucky few, the
audience made steady progress
through the wine bottles. Who says
lawyers don’t know how to let their
hair down?
RUSSIAN PRIDE
At least someone in the City was cele-
brating the Russian victory in the
World Cup stakes yesterday. Quick off
the mark, Renaissance Asset
Management’s chief investment offi-
cer Plamen Monovski was keen not to
underplay the event: “This is big, very
big,” he announced. “It will unleash
one of the largest spending on infra-
structure the world will see in the
next five years. Roads, bridges, rail,
airports, ports and sports facilities
will be brought to world-class stan-
dards.”
The Capitalist hopes so: at present,
less than half of the country’s airport
runways are even paved, and more
than that don’t have lights for night-
time landings.
But Monovski is always one to see
opportunities where others see risk:
“The public relations benefits will be
large,” he forecasts.
Capital Spreads’ Simon Denham,
however, isn’t so sure of the benefits:
“Building a huge number of massive
stadia which will have limited post-
Cup application seems a curious use
of funds for Russia. But then who are
the UK to comment on this? We are
spending more money on a two-week
Olympic jamboree than has been
raised by the sale of every single
school sports ground over the last
three decades put together.”
Better enjoy the jamboree – it’s the
only one we’re getting!
EASY STREET SAFARI
Pimco MD Bill Gross struck a musical
note in his latest note to investors, but
it was hardly a cheery one: “We’re all
Allentowners now,” he wrote, quoting
the Bill Joel classic: “Well we’re living
here in Allentown/And they’re closing
all the factories down.”
As for US policy, he’s not hopeful,
declaring that it is careering down
“Easy Street” in pursuit of “political
and financial chicanery: trade and
immigration barriers, currency deval-
uation and military domination of
foreign oil-producing nations”.
A grim picture and he’s not even
sure that emerging market demand
can sway the balance: “Their financial
systems are still maturing and remi-
niscent of a spindly-legged baby
giraffe, having lots of upward poten-
tial, but still striving for balance.”
But with metaphors like that, who
needs monetary policy?
Above: Baker & McKenzie’s Katherine Price
was up for associate of the year. Below:
Matt Parker, Nicholas Craig and Nick Hill
of 3 Verulam Buildings sip champagne.
JJB SPORTS warned yesterday it could
breach the financial covenants of its
£25m revolving credit facility with
Bank of Scotland (BoS) by the end of
January next year citing continued
difficult trading conditions as the
main reason.
The trading statement comes less
than a month after the firm, which
employs 6,300 staff nationwide, put out
a profit warning for the full-year blam-
ing poor sales numbers and promotion-
al activity. At the time it warned that
much would depend on Christmas and
New Year sales picking up.
The company said it was actively
engaged in constructive discussions
with BoS and their advisers in rela-
tion to the testing of the financial
covenants and more generally in rela-
tion to the future financing of the
business.
JJB said trading conditions had
remained extremely challenging
since it issued the profit warning
adding like-for-like sales had
remained below expectations. The
company said it expected sales to also
be affected by the continuing adverse
weather conditions. It added that
even with two months of important
trading remaining of its financial
year, which included the Christmas
shopping period as well as New Year
sales, the outlook for the full-year
remained uncertain.
JJB said it was exploring further
business restructuring options and
considering alternative sources of
finance, adding BoS continued to be
supportive of the actions the manage-
ment were taking.
JJB’s shares plunged as much as a
third to a 23-month low of 3.9p yester-
day, finally closing 18 per cent lower
at 4.7p as analysts warned investors to
expect a deeply discounted rights
issue little more than a year after the
firm’s last cash call for £100m.
JJB warns it
may breach
debt facilities
BY MATTHEW WEST
RETAIL

MID-MARKET private equity house
Inflexion acquired Asperity Employee
Benefits in a £25.5m buyout yesterday.
Asperity, a market leader at provid-
ing employee benefits such as dis-
count and reward schemes, has more
than 500 clients including BSkyB,
Aviva and Ladbrokes and attracts
about £150m of retail spend through
its platform each year.
Inflexion co-founder John Hartz
said Asperity was attractive due to its
double-digit growth performance
through the recession. The deal would
support Asperity’s UK expansion
plans and give it the firepower to
make new acquisitions. “We have
already started looking,” he said.
Inflexion’s Simon Turner and
Christian Hamilton will join the
board while Asperity co-founder
Glenn Elliott stays managing director.
Inflexion in £25.5m
buyout of Asperity
PRIVATE EQUITY

There are fears that
JJB Sports, whose
chief executive offi-
cers is Keith Jones
(inset), may need to
tap shareholders
for more cash.
Picture: ALAMY
News
14 CITYA.M. 3 DECEMBER 2010
8
6
10
12
14Oct 12Nov 15Sep
ANALYSIS l JJB
p
4.74
02 Dec
TNT to take big stake in
demerged Express unit
LOGISTICS firm TNT said yesterday
that it will keep a 29.9 per cent stake
in its Express unit once it is spun off
from its Mail division in a bid to avoid
raising funds, cheering investors who
had feared a cash call.
The move, details of which were
announced in a capital markets day
presentation in London, means the
firm is reduced to its former incarna-
tion as a postal business.
It also makes the Express opera-
tions a more attractive takeover tar-
get for the likes of FedEx and UPS.
A full split of operations would
have resulted in an equity shortfall of
around $1.19bn (£763m), while TNT
could face an additional shortfall of
around €900m against equity in 2012
or 2013 due to accounting changes,
TNT said.
TNT has a market capitalisation of
€7bn, or $9bn, against $70bn for UPS
and FedEx’s $28bn. TNT Express could
be worth a little less than €10bn to a
rival, while mail was worth between
€3bn and €4bn, depending whether it
remained public or was bought by a
private equity firm, ING analyst Axel
Funhoff said.
LOGISTICS

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DRINKS maker Britvic wrote down
the value of its struggling Irish busi-
ness and raised guidance on raw
materials cost inflation, reducing the
impact of a 22 per cent increase in
underlying full-year profit yesterday.
Britvic made a pre-tax profit of
£109m in the year to 3 October, which
was in line with expectations and led
the drinks maker to raise its full-year
dividend 11.3 per cent to 16.7p.
Revenue increased 14.6 per cent to
£1.14bn, driven by strong perform-
ance in the company’s core British
market, particularly in fizzy drinks.
The company added trading in the
first few weeks of the new financial
year was so far “satisfactory”.
But Britvic’s net debt rose 23 per
cent to £451m in the year.
Britain’s second biggest soft drinks
maker said it had cut the carrying
value of Britvic Ireland’s intangible
assets and properties by £104m to
reflect poor trading.
It also made an £11.4m write down
on the value of three non-core British
brands – Ame, Aqua Libra and GB Red
Devil. On top of that it was forced to
raise input cost inflation guidance
one per cent to a range of five to six
per cent, reflecting increased juice
and sugar prices.
“Ireland has felt the economic
downturn more acutely than other
markets. We continue to focus our
efforts on re-shaping the [Irish] organ-
isation,” Britvic’s chief executive Paul
Moody said, adding he remained
committed to the business.
“We are in good shape to deliver
another robust set of results for the
year ahead,” he added despite admit-
ting that he expected the consumer
environment to remain challenging.
Shares in Britvic closed down 2.9
per cent to 476p yesterday.
Britvic hit by
Ireland crisis
BY MATTHEW WEST
FOOD & DRINK

DIY RETAIL group Kingfisher said yes-
terday that sales in eastern Europe
and France helped to bolster its busi-
ness accounting for some 80 per cent
of profits in the third quarter.
The group said in a trading state-
ment, total sales were broadly flat but
that good international growth offset
a fall in the UK where sales were
down 4.2 per cent in the quarter and
where it said it was facing the tough-
est trading conditions in around
three and half years. But this was off-
set by sales in France, which saw 1.8
per cent growth, Poland and a recov-
ery in sales in China.
Kingfisher said the 8.2 per cent rise
in retail profit to £240m was also driv-
en by continued cost cutting meas-
ures across the group. The company’s
net cash balance saw a significant
improvement at £203m, up from
£19m at the end of the previous quar-
ter. Ian Cheshire, group chief execu-
tive, said the UK DIY market was
likely to shrink by two to three per
cent next year as consumers worry
about higher taxes and public spend-
ing cuts. But he added: “We are well
prepared to trade effectively in these
challenging times and we continue to
lay solid foundations for sales and
profit growth in the future.”
Kingfisher weathers storm
as sales increase overseas
BY MATTHEW WEST
RETAIL

News
15 CITYA.M. 3 DECEMBER 2010
Britvic boss Paul
Moody wrote
down the value of
its Irish business
by £104m
Seller’s remorse kicked in yesterday
but buyers should keep an eye on Eire
T
HE Irish crisis drained the fizz
out of drinks manufacturer
Britvic’s share price yesterday,
although it recovered to close at
476p, down only 2.9 per cent after
what many viewed as drastic over-
selling in the morning that saw it dip
down to a low of 449p.
Although the firm’s Irish exposure
demands some caution, its other num-
bers were reasonably solid and in line
with expectations.
And it showed spritely progress on
integrating its recently acquired
French business, keeping it far from
its last tango in Paris.
Analysts were generally positive
about the results, with Moody’s chief
executive Paul Moody saying that
Britvic’s experience was not unusual
for a company affected by the sover-
eign crisis.
The price could see a prolonged dip
due to raw materials inflation impact-
ing the bottom line, but overall, the
figures show an ability to grow
despite a difficult environment, with
overall pre-tax profit growth of 21.5
per cent.
Investors should keep a wary eye
on progress in Ireland and play the
price carefully, but any sharp selling
should nonetheless represent a good
buying opportunity.
BOTTOMLINE
Analysis by Juliet Samuel
News
16 CITYA.M. 3 DECEMBER 2010
ANALYST VIEWS: WHAT DO YOU MAKE OF TUI’S RESULTS?
By Thomas Hamed

SAM HART |
CHARLES STANLEY
Given tough environmental con-
ditions in the UK, the results were pretty
solid. TUI Travel is delivering synergy
savings and cost savings that will help it,
though it still needs to rebuild
credibility with investors.


KARL BURNS| SHORE CAPITAL
Even though the UK market has matured, TUI is able to consolidate its core markets. This
year will be better for TUI than last year.

UniCredit
Rico Pedrett will join UniCredit as part
of its equity capital markets (ECM)
team by the beginning of 2011. He will
be based in London, but will work flexi-
bly across UniCredit’s Western
European franchise.
Pedrett joins from CQS, where he
spent the last two years, having previ-
ously been at Goldman Sachs and
Merrill Lynch. He will report to
Christian Steffens, head of equity capi-
tal markets.
ETF Securities
ETF Securities has announced the
appointment of Kris Walesby to ETF
Securities Marketing as its European
head of capital markets.
In his new role, Walesby will be
responsible for managing the relation-
ships with the market maker communi-
ty with the intention of improving the
liquidity of ETF products. Walesby joins
from iShares, where he was a capital
markets business development officer.
Chalkwell Investments
Chalkwell Investments, the Aim-quoted
investment company, with a focus on
the resource sector, has announced the
appointments of Bruce Evers as execu-
tive chairman and Reinhold Heus as
non-executive director with immediate
effect.
Evers started his career in 1983 as
an oil and gas analyst at Panmure
Gordon, before moving to Laurence
Prust, Schroder Securities, Yamaichi
International and Investec, where he
worked for 12 years. He has also
worked as a Corporate Broker at
Evolution Securities, Fairfax and BDR
Securities.
Heus was the head of global corpo-
rate finance division of ANZ Investment
Bank before moving to 3i Group as an
senior adviser to the board. Since 2003,
he has been a director with Faircourt
Capital Group. He was previously a
business development manager at
Royal Dutch Shell.
CITY MOVES | WHO’S SWITCHING JOBS Edited by Steve Dinneen
Renaissance
Renaissance Group has announced that Robert
Hanson has been appointed as the first member
of its International Advisory Board.
Hanson, currently chairman of Strand Hanson,
the boutique investment bank in which both
Renaissance Group and Hanson hold significant
minority stakes, will advise Renaissance Group on
investments, transactions and strategic issues. He
remains a non-executive director of the Ivanhoe
subsidiary South Gobi Energy Resources.
+44 (0)20 7557 7245
morganmckinley.com
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
in association with
LEISURE firm Tui Travel released
stronger-than-expected profits yes-
terday, despite a tough year for UK
travel.
The travel group said that its
adjusted pre-tax profits rose four
per cent in the last fiscal year,
ended 30 September, while its
underlying full-year operating prof-
it increased by 11 per cent.
The results are from a rough
year for Tui Travel. The company
suffered as a result of April’s
Icelandic volcano disruption which
cost the group £104m.
Pre-tax loss narrowed from £94m
to £36m. Adjusted for exceptionals,
including the impact of the vol-
canic eruption, underlying pre-tax
profit increased four per cent from
£324m to £337m. Overall revenue
declined two per cent to £13.5m.
But basic earnings per share did
increase by 10 per cent, to 22p. Net
debt now stands at £249m, down
from £338m last year.
Chief executive Peter Long said he
was pleased with the results: “In a dif-
ficult trading environment we have
continued to achieve incremental
synergy benefits and made good
progress in delivering the turn-
around opportunity during the year.”
Tui is expected to have a better
year this year than last year. While
the UK market is maturing, Tui
expects to grow in Germany as its
economy experiences a manufac-
turing boom.
Tui is also expected to experi-
ence low cost inflation next year,
said analysts at Numis. Costs are
expected to rise just two per cent,
compared with four per cent at
rival Thomas Cook. Tui is also reap-
ing cost savings after its merger
with First Choice Holidays in 2007.
Tui Travel profits in
a surprise rebound
BY THOMAS HAMED
CONSUMER

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Chief executive
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Travel had made
“good progress in
delivering the turn-
around opportuni-
ty during the year.”
Picture: REX
NEWS | IN BRIEF
SEC mulls flash crash plan extension
US regulators are considering a three-month
extension to their pilot programme that
gives stocks a reprieve when they are in
freefall, people familiar with the situation
said yesterday. The Securities and Exchange
Commission’s (SEC) circuit-breaker pro-
gramme expires on 10 December and the
regulator is under pressure to find perma-
nent solutions to bolster market integrity
after the May “flash crash.” The circuit
breakers pause trading in a company’s stock
when it is dropping precipitously. The SEC is
now trying to craft measures known as
“limit up/limit down” that would slow, not
stop, trading when markets fall. Now the
SEC is considering extending its circuit-
breaker programme by at least three
months to give the exchanges time to imple-
ment new measures, said the sources.

NICK BATRAM |
KBC PEEL HUNT
I think it’s been a pretty torrid
year for it, but its statement is reassur-
ing. Bookings in winter are up, and sum-
mer bookings are up as well.

215
205
225
235
14Oct 12Nov 15Sep
ANALYSIS l TUI Travel
p
230.00
02 Dec
QANTAS reserved the right to sue
engine supplier Rolls-Royce yesterday
for damages related to the failure of
an engine on one of its Airbus A380
aircraft. But the airline stressed it was
still keen to come to a commercial
settlement with the engine maker.
Qantas filed a claim in Australia’s
Federal Court over the financial and
commercial impact of the failure of a
Roll-Royce Trent 900 engine on 4
November, which forced an Airbus
A380 bound for Sydney to make an
emergency landing in Singapore with
466 people on board.
“Today’s action allows Qantas to
keep all options available to the com-
pany to recover losses, as a result of
the grounding of the A380 fleet and
the operational constraints currently
imposed on A380 services,” the airline
said.
“The airline has today filed a state-
ment of claim ... [to] ensure that the
company can pursue legal action
against Rolls-Royce ... if a commercial
settlement is not possible.”
Qantas said the claim did not
include a specific figure as it was still
assessing the damage.
A firm estimate on the damages
may still be months away as Qantas
does not yet know when it can return
the aircraft to service or when Rolls-
Royce can fully solve the issues.
But analysts estimated the dam-
ages could be between AS$26m
(£16.28m) and AS$60m – in addition
to the US$70m that one insurance
company has predicted it will cost to
fix the plane.
Earlier in the day the Australian
Transport Safety Bureau (ATSB) told
airlines using the Trent 900 engine –
including Singapore Airlines and
Lufthansa – to conduct further
checks after it identified a potential
manufacturing defect which it said
could lead to oil fire and engine fail-
ure.
“The problem relates to the poten-
tial for misaligned oil pipe counter-
boring, which could lead to fatigue
cracking, oil leakage and potential
engine failure from an oil fire,” the
ATSB said.
The new checks come just days
after Qantas resumed flying two of its
A380s on a limited basis.
The remaining four planes are still
undergoing checks.
Qantas warns
it is set to sue
Rolls-Royce
DAISY GROUP clinched a deal to buy-
out the health-related business com-
munications service provider NEG
MBO Two (NEG) yesterday. The agree-
ment saw seven NEG executives walk
away with £23.5m between them.
Three of them will remain with Daisy
Group on an incentive scheme, taking
a percentage cut of the net profits over
the next two to three years. The news
comes a week after Daisy announced
the takeover of SpiriTel for £30m at
51.5p per share. Daisy has now taken
over a total of 36 of its competitors.
Founder Matthew Riley launched the
telecommunications company in 2001.
He is ambitious for Aim-listed Daisy,
telling City A.M. that he hopes to take it
onto the FTSE 250 in the next five
years. Daisy’s share price rose 2p yester-
day, closing at 96p.
FULL INTERVIEW: P:36
Daisy Group makes
£23.5m acquisition
BY MATTHEW WEST
AVIATION

Rolls-Royce chief
executive Sir John
Rose saw
Australian airline
Qantas file a legal
claim against it
after one of the UK
manufacturer’s
engines failed
during an A380
flight last month
Picture:
REX
BY DONATA HUGGINS
TELECOMMUNICATIONS

News
17 CITYA.M. 3 DECEMBER 2010
Marston’s delivers festive
cheer with robust results
PUB landlord Marston’s overcame
news of pub closures and the reces-
sion to deliver cheering full-year
results yesterday.
Marston’s, the UK’s largest brewer
of cask ale and owner of 2,158 pubs
across the country, defied tough trad-
ing conditions to report top-of-the-
range adjusted profit before tax of
£73.5m, up 4.6 per cent from £70.5m
the previous year.
Revenues were 0.9 per cent up to
£651m on the previous year, as ana-
lysts praised its strong strategies to
grow customers and profitability by
focusing on food, families and
females.
Revenue in its tenanted pubs,
owned by the company but managed
by landlords, fell 2.8 per cent to
£171m.
Like-for-like sales at its managed
pubs, which include the Pitcher &
Piano chain, rose 1.7 per cent, boosted
by the opening of 15 new pub-restau-
rants, with underlying operating
profit rising eight per cent.
Group net debt fell £17m to
£1.08bn.
The results met analyst forecasts.
LEISURE

Business Feature
18 CITYA.M. 3 DECEMBER 2010
Europe’s governments have put all
their chips into rescuing the banks
The decision to bail
out insolvent banks
and their creditors is
the real cause of the
Eurozone’s problems
T
HE THIRD phase of the financial cri-
sis has become acute. In the first
phase, from July 2007 to September
2008, certain money markets seized
up, costs of credit for financial institutions
rose, and a series of such institutions (e.g.
Northern Rock, Bear Stearns) came under
pressure. Phase one ended, and phase two
began in September 2008 with the nation-
alisation of Fannie Mae and Freddie Mac.
This event, in which equity-holders were
wiped out and bondholders spared, ended
all prospect of under-capitalised financial
institutions being recapitalised by private
sector decision-making (through some
combination of equity injections and debt-
equity swaps). The immediate result was
the bankruptcy of Lehman Brothers and
other financial institutions. Governments
around the Western world foolishly and
hubristically decided that, rather than
imposing losses on bondholders, they
would recapitalise firms themselves and
offer sovereign guarantees to bank bonds.
This exercise in denial transferred the mas-
sive losses of the banking sector onto the
balance sheets of governments.
Phase three saw governments them-
selves dragged down by these sovereign
guarantees, beginning with Greece (the
Dubai crisis of November 2009 was slightly
different in nature, and I won’t explore it
here). Greece was intrinsically distressed
because the government was over-bor-
rowed. But if other Eurozone governments
had not found their balance sheets
stretched by guarantees to their banks, the
Greek crisis would not have occurred in
the same way, because there would have
been no serious doubt that other Eurozone
members would assist the Greeks. The
Greek crisis was an indirect result of the
guarantees given to the banks. A more
direct example is Ireland, where the sover-
eign, in itself, was not particularly over-bor-
rowed. The Irish problem was a problem of
the Irish banking sector, and that the costs
to the Irish sovereign of supporting that
banking sector were more than the sover-
eign could bear.
BANKS HOLD SOVEREIGN DEBT
In both the Greek and Irish cases a further
banking crisis-related issue was that banks
are major holders of government debt. So
if governments were to default, banks
would suffer losses. In a context in which
it has (quite wrongly) come to be unthink-
able that any bank should go bust, losses
for banks are regarded as dangerous. If
Portugal were to default, or even if its
bonds had to be marked down significant-
ly, then banks, particularly Spanish banks,
would make losses. Since Spanish banks
could already be in trouble, dragging
down the Spanish government, this is
regarded as dangerous.
It should be plain now that the financial
crisis was not the result of some temporary
technical glitch in markets, or some
manipulative speculators. There are real
losses involved, reflecting real changes to
the long-term expected growth paths of
economies. During the 2000s many people
lent out a great deal of money on the basis
of wrong predictions about future growth
paths. That included holders of bank
bonds, government bonds, and bank
deposits. The bank bondholders and gov-
ernment bondholders particularly includ-
ed pension funds. Of course, depositors
and those saving for pensions are ordinary
people. They are ordinary people that had
invested in products – banks and pensions
– that had lost so much money that in cer-
tain cases they could not service their
debts. So some of these depositors and
pension savers should have lost some of
their money – specifically, those that had
invested in the wrong companies.
It was not in Britain’s interest to bail out
Ireland. That was simply part of the overall
strategy of denial. If Ireland had not been
bailed out, it would have imposed losses on
senior bondholders. The bondholders that
lost money would have included foreign
bondholders. Governments in those coun-
tries might be forced to provide extra capi-
tal injections into their banks if they were
not to accept losses for their bondholders.
Taxpayers in smaller states, experiencing
losses in this way, might wonder why they
were supporting their foreign bondholders
when taxpayers abroad allowed their bond-
holders to lose. The whole denial strategy,
refusing to allow bondholders to lose
money, might have begun to unwind.
CASCADING LOSSES FOR BANKS
Where do we go now? One likely route is
that we inflate. The consequence of infla-
tion will be that holders of fixed income
investments – depositors and bondholders
– will lose some of their money. It would
have been better if only those that had
deposited in the wrong institutions had
lost money. But if it is politically impossi-
ble that some depositors will lose, then it is
politically easy for all of them to lose –
through high inflation. (Losses for deposi-
tors in particular are quite likely to be
materially greater under inflation than
any plausible losses they could have made
if banks had entered administration.)
Another possibility is that the whole strat-
egy does indeed unwind, with losses on
bondholders in certain states cascading
into losses for many banks. Because states
chose to guarantee bonds, bank failures
will now constitute sovereign defaults.
That could involve chaos in certain coun-
tries – possibly including constitutional
dislocations (e.g. in Greece or Portugal).
One extreme version of this scenario
would be that German taxpayers decide
(quite justifiably) that the whole outra-
geous farrago has gone far enough and the
Germans give up on the euro. That could
potentially result in a significant reversal
of EU integration, perhaps including a
withdrawal, over time, to a core of seven or
eight member states. That may sound
somewhat overblown, but is precisely
what Merkel, Van Rompuy and Lagarde
have warned of in recent weeks. It is not
out of the question any more. That in turn
would involve the unwinding of the denial
strategy across much of Europe, with bank
bondholders losing out. Under that sce-
nario, it would be difficult for the British
sovereign to avoid coming under pressure,
despite the good work the Coalition has
done in addressing the deficit. It is thus
extremely urgent that we devise credible
mechanisms in the UK for imposing losses
on the bondholders of our banks in order-
ly special administration regimes.
More likely, however, is that, having
committed so much to the strategy (having
gone “all in”), wealthier governments now
see it through and provide huge bailout
funds to support Portugal, Belgium and
perhaps even Spain in the short term, but
then impose losses from 2013 onwards,
when the German constitutional court has
already clarified that a new haircutting
procedure will be required. The only way
the euro can survive is if the Germans get
their new treaty, with credible mecha-
nisms for imposing losses on bondholders
and high degrees of fiscal coordination.
It’s ultimately still about the politics – just.
But only just.
Andrew Lilico is chief economist at Policy
Exchange
The EU is gambling
everything on bank
bailouts being
successful
Picture:
GETTY
It was not in
Britain’s
interest to
bail out
Ireland. That
was simply
part of the
strategy of
denial
It should be plain now that the financial crisis
was not the result of some temporary glitch
in markets or some manipulative speculators
WORDS BY ANDREW LILICO
CABLE & Wireless Communications
(CWC) said yesterday it had signed an
agreement with the government of
the Bahamas to acquire a 51 per cent
controlling interest in the Bahamas
Telecommunications Company (BTC)
for $210m (£135m).
The deal will be completed in the
first quarter of 2011.
State-owned BTC is the exclusive
mobile operator in the Bahamas and
also provides fixed-line and broad-
band services.
The Bahamas government hopes
that by privatising the business it can
modernise its telecommunications
network and aims to open up the
mobile network to competition with-
in the next three years.
CWC will also oversee a restructure
of BTC’s workforce. Some redundan-
cies are expected although the num-
ber of likely redundancies is unclear.
CWC said they would be carried out
on a voluntary basis where possible.
BTC has around 392,000 mobile cus-
tomers, 123,000 fixed-line and 19,000
broadband subscribers, generating
revenue of $361m in 2009, CWC said.
The telecoms firm said it expected
to fund the deal from its existing cash
balances and debt facilities. The trans-
action is expected to be earnings and
cash flow accretive excluding restruc-
turing costs.
Tony Rice, CWC’s chief executive,
said the deal represented a “great
opportunity” for the business to
expand into the region and would fit
its strategy to “develop through mar-
ket leading and cash generative busi-
nesses.”
C&W set to
buy Bahamas
telecom firm
Intercontinental Hotels launches
its boutique brand in Shanghai
INTERCONTINENTAL Hotels Group
(IHG), the largest hotels group in the
world, launched its first upscale bou-
tique brand in Asia in Shanghai yes-
terday, a nod to the city’s rising
prominence as a business and
tourism hub.
IHG launched Hotel Indigo, a 184-
room waterfront property on
Shanghai’s picturesque promenade,
the Bund. The property, featuring
locally sourced materials and art
reflecting Shanghai’s history, is due to
open by the end of the year.
“The historic nature of the location,
the visibility of the hotel and also the
excitement of the city in general; it is
one of the most progressive, ever-
changing cities in all of China, so real-
ly it is a good fit for Hotel Indigo,” said
IHG Regional Manager Keith Barr.
IHG said it planned to open more
Indigo branded hotels in Asia over the
next three years, including in
Bangkok, Hong Kong, Taipei and
Xiamen. IHG already has Indigo hotels
in London, Costa Rica and the United
States.
“The key thing is for us is making
sure we have customers who want to
travel there, and what drives Indigo is
‘psychographics’ rather than demo-
graphics,” Barr said of the strategy for
expanding Hotel Indigo in mainland
China. In October, IHG, the world’s
biggest hotelier by room count, said
revenue from Greater China would
exceed $1bn (£641m) for the first time
this year.
BY MATTHEW WEST
TELECOMMUNICATIONS

BY HARRY BANKS
LEISURE

50
45
55
60
14Oct 12Nov 15Sep
ANALYSIS l Cable & Wireless
p 46.99
02 Dec
On the third day
of Christmas
Lucy had a
flashback to
being punched
by her step-father
Lucy’s night wasn’t silent at all. She tried to snatch some sleep on a park
bench, but kept getting night terrors at the thought of all the times her
step-father punched her. When you’re young and homeless like Lucy, it’s
difficult to forget what drove you to run away from home.
In the build up to Christmas, it’s easy to
forget about homeless young people like Lucy.
How would you feel trying to forget a violent
childhood? It’s not easy when it’s dark for 15
hours and you’re trying to get some sleep out
in the freezing cold.
Lucy’s mother was an alcoholic and her
step-father used to fly into rages and punch
them both. Growing up, Lucy often went
hungry for days. Eventually, Lucy was trying
to do her homework surrounded by squalor,
drunkenness and the threat of violence.
Often, it was easier not to go home at all.
At first it was mates who helped but soon it
was pimps and drug dealers who stepped in.
One guy made Lucy feel safe. “He seemed so
friendly but then started hitting me”. He forced
her to have sex for money and then started
dealing drugs. “I had to get away. But I didn’t
know where else to go.”
By sponsoring a room at Centrepoint this
Christmas – for just 40p day (£12 a month)
– you could get a homeless young person
like Lucy off the streets and away from the
dangers of pimps and drug dealers.
The Centrepoint room sponsorship scheme
offers homeless young people like Lucy a safe,
secure room for up to two years – enough
time to turn things around for good.
Just imagine how that young person will feel,
opening the door of a room you help sponsor
for the very first time. Think how it will feel
to wake up on Christmas morning in a soft,
snug bed and have a steaming hot shower,
rather than sleeping rough.
Become a Centrepoint Room Sponsor now.
Call 0800 138 3244 or visit
www.centrepointroom.org.uk/city2
While staying in their Centrepoint room, the
young person you’re helping will receive all
the support they need. Like counselling to
deal with their problems, career advice to
help them into college or a job, and skills such
as how to cook, budget and pay bills.
Today, you can stop a homeless young person
like Lucy from risking another night in the
cold. And all it will cost you is 40p a day
– what an amazing Christmas present that
would be.
It’s so easy to forget about vulnerable
young people like Lucy at Christmas, but
you can be the person who chooses not to.
Today, we can help so many more homeless
young people just like Lucy.
THE £12 OF
CHRISTMAS
Become a Centrepoint
Room Sponsor today
for just £12 a month
Please sponsor a Centrepoint room today.
Call 0800 138 3244, search online
for ‘Lucy Room Sponsor’ or visit
www.centrepointroom.org.uk/city2
RCP1011Z01
Please tear off and keep
To protect the privacy of those we help, a model has been used for the photograph.
Charity No 292411
News
19 CITYA.M. 3 DECEMBER 2010
Cable &Wireless Communications boss Tony Rice said the deal is a “great opportunity” for growth
NEWS | IN BRIEF
African Barrick strikes gold
African Barrick Gold aims to build an
underground operation beneath existing
open pits after finding more gold at its
North Mara mine in Tanzania. The
London-listed FTSE 100 firm declared
an initial resource of 370,000 ounces
beneath two open pit operations at
North Mara, it said in a statement yes-
terday. The discovery provides “the
potential to develop a substantial under-
ground operation at the Gokona and
Nyabigena deposits with an attractive
grade profile”, the firm said. Further
drilling early next year is expected to
boost the underground resource to more
than one million ounces. North Mara, is
one of four mines run by African Barrick
in northwest Tanzania. The stock closed
up 2.3 per cent at 552p yesterday.
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3i Group 317 9.75 326 250
3i Infrastructure 117.25 0 118.5 97
A.B. Foods 1101 23 1107 800
Aberdeen Asset.Man. 195 10 195 112.75
Admiral Group 1589 28 1693 1073
Aegis Group 139.75 3.5 139.75 103.5
Afren 134.5 6.5 134.5 79
African Barrick Gold 552 12.5 670 503
Aggreko 1546 23 1685 777
Alliance Trust 363.75 7 363.75 293.5
Amec 1139 10 1154 733.5
Amlin 390.25 2.25 433 357.25
Anglo American 2999.5 101 3055 2254
Antofagasta 1413 52 1472 761
Aquarius Platinum 346 16 458 227
ARMHoldings 402 0.5 414.5 161.25
Ashmore Group 364.25 16.5 383.75 218
Ashtead Group 144.5 13 144.5 66.25
AstraZeneca 3064 29 3385 2732
Atkins (WS) 731.5 9.5 792.5 556.5
Autonomy 1367 8 1975 1271
Aveva Group 1568 35 1575 942.5
Aviva 385.25 16 423.5 294.25
Babcock International 550.5 23.5 635 492.75
BAE Systems 330.75 3.75 388.75 294.75
Balfour Beatty 285.25 8 303 229.75
Barclays 275 7 383.25 255.25
Barratt Development 73.5 2.75 142 70
BBA Aviation 205.5 11.25 217.25 152
Bellway 546 29.5 826 511
Berkeley Grp Hldgs 840 16 892 742
BG Group 1228.5 37.5 1296 984
BHP Billiton 2450 87 2469 1684.5
BlackRock Mining 754 13.5 754 492
BlueBay 484 1 489.25 258
BlueCrest AllBlue 173.5 -0.25 174.5 152
Booker Group 57.75 2.75 57.75 38.75
BP 441.5 11.75 655.5 303
Brit Insurance 1037 1 1045 720
British Airways 277 13.5 286 184.25
British Amer.Tob 2371 23 2464.5 1907.5
British Empire Tst 495.5 13.25 495.5 394
British Land 501.5 10 520 418.25
Britvic 476.25 -14.5 518 373
Brown (N.) Group 298 15 301 206.5
BSkyB 729 8 729 524.5
BT Group 174.25 4.75 174.25 110
Bunzl 728 12.5 777 616.5
Burberry Group 1099 67 1099 564
C&WComms 47 2.5 63.75 44.25
C&WWorlwide 64.25 1 100 60.5
Cairn Energy 396.5 1.5 493.25 303.5
Caledonia Inv. 1823 13 1827 1511
Capita Group 644.5 -1 826 644.5
Capital & Counties 147 0 157 100
Capital Shop Centre 408.25 7.75 408.25 301
Carillion 345.5 8.5 357 273
Carnival 2738 64 2920 2037
Catlin Group 350 4.25 393 316
Centamin Egypt 183.5 2.25 197 106.75
Centrica 318 5 346 257
Charter 736.5 29 848.5 567
Chemring Group 2959 63 3663 2598
Close Brothers 814.5 16 821.5 664
Cobham 200.5 8.25 276 192.25
Colt Telecom 127 2.25 142.5 109
Compass Group 585 16.5 585 425
Cookson Group 584 23.5 607 367.5
Croda International 1572 50 1572 749.5
Daily Mail & Gen 537 7.5 567.5 404
Davis Service 406 8 435 360.25
Debenhams 74 2.75 84.25 53
Derwent London 1508 51 1605 1208
Dexion Abs 140 -0.25 148 131.25
Diageo 1153 7 1193 1000
Dixons Retail 26 0.75 38 23.75
Domino’s Pizza 550.5 8.5 550.5 280.75
Drax Group 370 12 444 326.25
DS Smith 200.75 8.25 200.75 104
Dunelm 532 29 532 325.25
easyJet 443 8.75 496.5 341.5
Edin.Inv.Tst. 441.75 6.5 464.25 351.5
Electrocomponents 275 7 275 161.75
Enquest 142.75 1.25 142.75 89.25
Essar Energy 549 10.5 549 383
Eurasian Nat Res 929 25.5 1266 818
Euromoney Inst. 701.5 -2.5 708 405
Experian Group 789 37.5 789 572
Ferrexpo 372.25 14.25 396 179.5
FirstGroup 376.5 5.25 426 336
For.&Col.Inv.Tst 300.5 5.25 300.5 251.5
Fresnillo 1508 49 1508 669.5
G4S 243.75 4.75 283.5 237.75
Genesis E.m.f. 536 9 540.5 399
GKN 210.5 15 210.5 102
GlaxoSmithKline 1241.5 10.5 1339.5 1095
Great Portland Est. 347 11 364 268
Greene King 460 10.25 468.25 376.25
Halfords Group 412 2.5 550 372.75
Halma 340.75 9 343 223
Hammerson 418.25 15.25 434.5 336.25
Hargreaves Lansdown 495.75 -1.25 501.5 265.25
Hays 116 7.5 123.5 88.5
Henderson Group 125.75 4.75 151.75 112.75
Heritage Oil 380.5 4.5 581 296.75
Hikma 794 18 804.5 498
Hiscox 366.25 12 370 300
Hochschild Mining 595 28 595 234
Home Retail Group 205.25 3.25 310.75 201.5
Homeserve 455.75 16.5 487.5 322.5
HSBC Holdings 667.5 11.25 740.5 596.25
Hunting 643 15.5 658.5 439.5
ICAP 526 26.5 526 294
IG Group 522 9.5 553 340
Imagination Tech 377 7 441.75 211
IMI 908 24 908 504.5
Imperial Tobacco 1874 -7 2154 1753
Inchcape 346 10.5 357 237
Informa 420.5 10 448 285
Inmarsat 644.5 -5.5 821 606.5
InterContinental Htl 1209 54 1225 867
Intermediate Cap.Grp 314.25 7.25 351 240.5
International Pers Fin 325 20.25 332 183.25
International Power 420 7 436.75 283.25
Intertek Group 2000 107 2000 1150
Invensys 338 14.25 349 230.25
Investec 513.5 7 562 413.25
ITV 71 3 72 48.25
Jardine Lloyd 592.5 2.5 600 445
John Wood Group 503.5 6 503.5 285
Johnson Matthey 1867 35 1973 1446
JPMFlem.Emerg Mkt. 621 11.5 621 450.5
Jupiter Fund Man 302 2 306 180.25
Kazakhmys 1487 27 1630 965
Kesa Electricals 173.5 4.75 173.5 99.25
Kingfisher 255 17 255 198.5
Ladbrokes 125.25 -0.5 162.75 123.5
Lancashire 620 -2 647 422.25
Land Securities 651.5 13 696.5 545
Legal & General 98.75 4.25 106.25 69.75
Lloyds Banking Grp 66.5 2.5 77.5 46.5
Logica 120 1.5 148 101.75
London Stock Ex. 798 31 798 544
Lonmin 1809 59 2157 1355
Man Group 288.75 16 328.5 202
Marks & Spencer 386 1.25 427.5 323.5
Meggitt 354.25 16.75 354.25 239.25
Melrose 296 5.75 304.25 162
Mercantile Inv Tst 1037 24 1037 822.5
Michael Page 510 27 510 345.25
Micro Focus 354.5 -5 546.5 276
Millennium& Cop. 562 25.5 570 342
Misys 303.75 8.25 303.75 200.5
Mitchells & Butlers 357.25 8.5 357.25 247.5
Mitie Group 223 9.5 241 188.75
Mondi 498.75 20.75 557.5 321.5
Monks Inv.tst. 346.25 4.75 349.25 265.5
Morgan Crucible 243.5 4 254 145.5
Morrison (Wm) 272 -0.5 306.25 257.5
Murray Int.Tst 921 13.5 936 720
National Express 233.5 6.5 259.5 178
National Grid 559 6.5 613.25 484.25
Next 2069 53 2344 1817
Northumbrian Water 327.5 0 361.5 252.75
Ocado Group 153.5 -0.75 167 123.5
Old Mutual 123.25 1.5 145.25 97.25
PartyGaming 256.5 4.5 334.5 206
Pearson 982 21.5 1051 846
Pennon Group 634 9.5 639 483
Persimmon 372.25 27 507.5 336.5
Petrofac 1491 41 1540 876.5
Petropavlovsk 1117 29 1365 852
Phoenix Group Hldgs 633 12 758 557.5
Premier Farnell 298 6 298 158.5
Premier Oil 1869 -11 1890 1017
Provident Financial 820.5 18.5 974 728.5
Prudential 605.5 6.5 653 487.5
PZ Cussons 393.5 10.5 403 234.75
QinetiQ Group 120.75 5.75 167 96.75
Randgold Res 6070 35 6655 4209
RDS ‘A’ 2019 30 2100.5 1624
RDS ‘B’ 2008.5 39.5 2064.5 1554
Reckitt Benckiser 3446 38 3655 3037
Reed Elsevier 520 4.5 563 460.5
Regus 78 2 120 66
Renishaw 1184 26 1235 516.5
Rentokil Initial 91.25 3 138.5 87.75
Resolution 213.75 -1 349 211.25
Rexam 314.25 9.25 346.75 272.5
Rightmove 757 -3 810 464
Rio Tinto 4415 208 4454 2812
RIT Capital Partners 1194 19 1210 948.5
Rolls-Royce Group 626 7.5 654.5 473.5
Rotork 1702 94 1895 1145
Royal Bank of Scot 41.5 1.75 58 28.5
RSA Insurance Grp 125 1 136.5 114.75
SABMiller 2125.5 42.5 2157 1650
Sage Group 289 18 289 220
Sainsbury (J) 363.75 8 395 313
Schroders 1712 54 1712 1116
Schroders NV 1363 47 1363 929.5
Scot.& Sth. Energy 1114 2 1198 1010
Scottish Mortgage 682.5 15.5 683 475
SEGRO 290 9 352 250.25
Serco Group 570.5 13.5 651 494.25
Severn Trent 1427 17 1468 1010
Shaftesbury 441 -3.5 460 349.25
Shire 1514 17 1567 1159
SIG 116 2.5 137.75 90.75
Smith & Nephew 598 4.5 696.5 537.5
Smiths Group 1201 39 1285 954
Soco International 344.5 1.75 484.25 292
Spectris 1187 22 1222 691.5
Spirax-Sarco 1859 13 1870 1094
Spirent 160.25 7.75 160.25 92
Sports Direct 135 8 152.75 92.25
St James’s Place 253 12.5 292 204.25
Stagecoach Group 205 5.25 224 150
Standard Chartered 1864 65 1950 1351.75
Standard Life 208.25 5 236 173
Supergroup 1637 -1 1638 535
TalkTalk 155.5 -0.5 156 108.5
Talvivaara Mining 534 16 581 342.5
Tate & Lyle 527.5 7.5 531.5 388.75
Taylor Wimpey 25.25 1.25 44 22.25
Telecity Group 471.25 -2.75 532.5 335
Templeton Emrg. 661.5 8.5 685 471.5
Tesco 428 13.75 454.5 377.5
Thomas Cook Group 181.5 3.5 272 171.75
Travis Perkins 884 65 912 664.5
TUI Travel 230 15.5 308.5 190
Tullett Prebon 366.75 12.75 417.25 262
TullowOil 1171 27 1369 991.5
UK Commercial Prop 76.75 -0.25 85 72.75
Ultra Electronics 1686 33 1895 1265
Unilever 1851 45 2015 1688
United Utilities 594.5 5 628.5 488.25
Utd Business Media 656 21.5 682.5 409.75
Vedanta 2172 127 2934 1839
Victrex 1271 32 1338 788
Vodafone Group 165.25 0.5 175 129.5
Weir Group 1861 64 1861 669
WellstreamHoldings 751.5 9.5 789 436
WH Smith 499.5 19 537.5 398.25
Whitbread 1791 67 1797 1266
WilliamHill 159.5 -0.5 216.5 155.5
Witan Inv Trust 491.75 8 491.75 410
WOLSELEY 1806 66 1817 1166
WPP Group 753.5 25 755 572.5
Xstrata 1403 36 1419 845.75
Wall St rallies as
euro concerns ease
W
ALL Street rallied for a sec-
ond day yesterday as con-
cerns about Europe’s
sovereign debt crisis waned,
giving investors the chance to add to
positions in winners among banks
and retailers.
More than two stocks rose for every
decliner on the New York Stock
Exchange, with bank stocks leading
the way after Goldman Sachs said
improving economic conditions will
favour that sector.
The European Central Bank allayed
some concerns of a growing
Eurozone crisis with hefty purchases
of Portuguese and Irish debt. The
European Central Bank, however,
said it did not plan to increase the
size of its liquidity programme at
this time.
The KBW bank index shot up 3.9
per cent. The S&P 500 financial index
rose 2.6 per cent, making it the
largest gainer among S&P sectors.
“The fears had been centered on
Europe. That seems to have sta-
bilised, and now the focus is on what
domestic and international growth
will look like. People are betting that
growth will be better than people
had feared,” said Mark Bronzo, port-
folio manager at Rydex-SGI in
Irvington, New York.
Retailers’ shares rose on stronger-
than-expected November sales data,
which reflects a healthy start to the
holiday shopping season. The S&P
500 retail index rose 1.8 per cent.
The data follows a recent flurry of
reports suggesting a pick-up in US
economic activity that has let
investors worry less about troubles
overseas.
The Dow Jones industrial average
gained 106.63 points, or 0.95 per
cent, to 11,362.41.
The Standard & Poor’s 500 Index
rose 15.46 points, or 1.28 per cent, to
1,221.53.
The Nasdaq Composite Index
added 29.92 points, or 1.17 per cent,
to 2,579.35.
Further supporting financial
shares, Goldman Sachs said US banks
are on stronger footing because of an
improving economy, higher equity
prices and a favourable interest-rate
environment.
Shares of regional lender Marshall
& Ilsley jumped 12.3 per cent to $5.48
and Bank of America gained 3.5 per-
cent to $11.68.
B
ANKS and commodity stocks
powered strong gains for
Britain’s top share index by
close yesterday, on increasing
optimism about the global economy
and investor confidence that the
Eurozone debt crisis would be con-
tained.
The FTSE 100 index ended up
125.06 points, or 2.2 per cent, at
5,767.56, a second straight session of
strong gains.
It was its highest close since 22
November and the biggest daily gain
since the start of September.
Shares initially trimmed gains as
comments from European Central
Bank President Jean-Claude Trichet
suggested it would resist pressure for
a major bond buying programme,
but confidence returned that the
authorities would do what was need-
ed to prevent contagion from the cri-
sis that had engulfed Ireland last
month.
“There’s more confidence than
there has been that [euro zone debt]
problems can be contained than
there has been since the Ireland news
started to emerge about two weeks
ago,” said Giles Watts, head of equi-
ties at City Index.
Commodity stocks extended gains
from Wednesday, tracking firmer
metal and crude oil prices on recov-
ery expectations and as upbeat eco-
nomic data out of the United States
pointed to a brighter demand out-
look.
BP added 2.6 per cent, while oil
services firm Petrofac gained three
per cent after Goldman Sachs upgrad-
ed it to “buy” from “neutral”.
Miners Rio Tinto, Anglo American
and BHP Billiton were 2.7-4.2 per cent
higher.
Stronger than forecast housing and
retail data from the United States also
lifted investors’ spirits. Fashion group
Burberry, up 6.5 per cent, was among
the top beneficiaries of the improved
sentiment, traders said.
Banks were also in demand, as
fears that the sector could face more
setbacks as a result of the Eurozone
debt crisis began to fade.
Lloyds Banking Group, Royal Bank
of Scotland and Standard Chartered
rose 2.8 to 3.8 per cent.
In earnings news, TUI Travel,
Europe’s biggest travel company, rose
7.5 per cent, the leading gainer after
full-year operating profit came in at
the top end of expectations.
Elsewhere, GKN gained 7.2 per
cent, boosted by a rise in US auto
sales.
Defensive stocks Imperial Tobacco
and Morrison Supermarkets were
among a short list of fallers as
investors rotated into more cyclically
biased stocks.
Traders were cautious on whether
the gains could be sustained, with
volumes not much above the 90-day
trading average cited as evidence that
there is not huge enthusiasm for the
rally.
“While the market is trading
strongly higher today, volume is hard-
ly spectacular, indicating that even
fund managers may just be dipping
their toes,” said Manoj Ladwa, senior
trader at ETX Capital.
FTSE 100 surges on gains by
commodities and financials
THELONDON
REPORT
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A
A THE snow settles in London and
the transport system goes into an
adolescent sulk, many of us have
started thinking about places
where the white stuff is more welcome.
With many resorts reporting bumper
snowfalls, it is beginning to look like yet
another excellent ski season for the Alps.
Time to get out the goggles then.
Remember that skiing can be a danger-
ous activity, however. Though the tradi-
tional broken leg is now a rarity, an
average of 40 people die skiing in America
every year, while countless more suffer
broken wrists or twisted knees. If you get
injured, you don’t want your bank balance
to be a victim too. In Europe, an air ambu-
lance rescue could cost as much as
£10,500, and hospital bills up to £1,200 a
day. Despite that, according to research by
AXA Insurance, as many as one million
Brits will go skiing this year without ade-
quate insurance. So what should you know
about getting insured for skiing?
In Europe, you should be sure to carry
your European Health Insurance Card,
since that will cut the upfront costs of any
hospital visits. Many ski resorts only have
small private clinics, however, so you will
also want travel insurance to cover the cost
of any smaller injuries. In the USA and
Canada, healthcare is typically a lot more
expensive than in Europe, so you should
also make sure that your cover is extensive
enough if venturing further afield.
Check that you are insured for the right
thing too. Vanessa Fisher, from the Ski
Club of Great Britain, says that “the most
important thing is to make sure you check
the small print”. While most annual travel
policies will include some coverage for
winter sports, some skiers will find that
their chosen activities aren’t covered.
With off-piste skiing, for example, many
policies will require you to be skiing with a
guide, or the definition of off-piste might
be very limited – excluding ski touring or
heli-skiing. Similarly, it is relatively rare for
a policy to cover freestyle skiing, or “jib-
bing”, so if you (or your teenager) likes to
hit up the snow-park, you should make
sure you are properly insured.
Specialist winter sports insurer
Snowcard will cover you off piste and with-
out a guide as standard but it also offers a
range of advanced policy options depend-
ing on what activities you intend to do. If
you want to throw a few 360s in the half
pipe, or shred some backcountry powder,
there are policy options to cover you.
Snowcard also allows you to insure your
ski equipment, including avalanche gear,
up to a value of £3,000, though you will
still have to be careful with your skis.
Another specialist provider is Dogtag,
which issues every insured person with a
stainless steel dogtag carrying their name,
their policy number and the 24-hour emer-
gency number – that’s helpful for the
authorities if you are injured and saves you
carrying scraps of paper on the slopes.
Dogtag will cover you for activities such
as ski touring, ski mountaineering and
heliskiing but stops short – perhaps rather
understandably – at covering you for stunt-
ing, ski jumping and acrobatics.
When the snow is falling, many people
will get a little too excited. The most impor-
tant thing is to remember to be careful. If
you ski within your abilities, pack the right
gear and don’t do anything stupid, then
you shouldn’t injure yourself. But if you
do, then if you have the right insurance, at
least it won’t cost you too much.
Investment | Personal Finance
22 CITYA.M. 3 DECEMBER 2010
Being adventurous
might not be insured
as standard, so read
small print carefully,
says Daniel Knowles
Cliff dropping is
unlikely to be covered
by your insurance
Picture: GETTY
PERSONAL FINANCE NEWS
BY JESSICA MEAD
MORGAN STANLEY UNVEILS GROWTH PLAN
Morgan Stanley this week announced the
launch of its new FTSE Defensive Digital
Growth Plan, which lasts for six years. The
plan offers a fixed return of 60 per cent at
maturity if the FTSE 100 rises or even if it
falls by less than 20 per cent over the dura-
tion of the plan. If the FTSE 100 Index has
risen by 10 per cent or more after three
years, then investors can choose to exit the
plan early and receive a fixed return of 15 per
cent plus the initial investment. The plan can
be included in both ISAs and Sipps and the
minimum investment is £3,000. The deadline
for investment is 10 January 2011 or 31
December for ISA transfers.
HSBC ADDS AIRSPACE CLOSURE COVER
HSBC and its subsidiary First Direct have
now both added airspace closure cover to
their travel insurance, HSBC revealed earlier
this week. Disruption to airspace, airport and
port closure are now covered and it is provid-
ed free to all new and existing travel insur-
ance customers with effect from 1 December.
HSBC and First Direct’s travel insurance is
underwritten by Aviva Insurance.
Hit the powder,
not your wallet
this ski season
BARCLAYS’ NEW LINKED INCOME NOTE
Barclays Stockbrokers has launched a new
structured product based on the FTSE 100
and which is available exclusively to clients
until 21 December 2010. The FTSE Linked
Income Note is a five-year-and-10-day fixed
term investment, providing investors with
the opportunity to earn 2 per cent for each
quarter that the FTSE 100 is at or above the
closing level on 21 December. The maximum
potential income is 8 per cent a year. But
your capital could be at risk should the FTSE
ever close at a level below 60 per cent of the
starting level and, at the end of the term, is
not at or above that starting level. The prod-
uct is both ISA and Sipp eligible.
PARENTS SPLASH OUT ON KIDS’ PRESENTS
Research from investment and retirement
firm LV= out today shows that parents are
shrugging off the financial pressure to shell
out a combined £2bn on their kids this year.
The survey showed that over half of all par-
ents will spend the same or more on their
children than they did last year, with an aver-
age of £168 spent per child. But other rela-
tives will get cheaper presents as a result.
Living| Winter Property Special
THE BEST FAMILY
CHRISTMAS
SHOWS
SEE PAGE 38
23
Buy a slice of elite London p32
Buy a slice of elite London p32
Incentives
for first-time
buyers
p26
What the rail
revolution means
for commuters
p24-25
Europe’s
constant
charms
p34-35
Incentives
for first-time
buyers
p26
What the rail
revolution means
for commuters
p24-25
Europe’s
constant
charms
p34-35
Rail revolution
opens new areas
for commuters
City workers will benefit from Crossrail, HS2
and Thameslink, writes Jeremy Hazlehurst
A
SK any Londoner what irritates
them most about the city and
they will say two things. First, the
transport is rubbish and second,
it is too hard to buy a decent, affordable
home. For families who want their chil-
dren to grow up outside London, the
misery of the commute has to be
weighed against the improved standard
of living.
But the coming of several new trans-
port links should go some way to solving
these problems. Crossrail, High Speed 2
and the upgrade to the Thameslink will
bring several new areas into play as
potential homes for commuters. Just last
week the government announced mas-
sive investment in the railways, which
will hopefully make longer-distance com-
muting an attractive option.
Crossrail will slash commuting times
from both the east – think Stratford and
even Brentwood – and to the west – from
the towns of Berkshire. The Thameslink
upgrade will see trains double in length,
meaning that those who commute from
places like Luton, Harpenden and St
Albans in the north and Brighton and
Croydon to the south might actually be
able to get a seat. The flashy new inter-
change at Farringdon will also mean that
commuters can switch easily on to both
the Circle and District lines, and
Crossrail. High Speed 1 has opened up
parts of Kent like Dartford and Strood.
Estate agents in these areas say that say
that the impact of the recession means
that so far there is little new develop-
ment, but it is only a matter of time.
“Crossrail will open the door to towns like
Maidenhead for commuters. Maidenhead
to Bond Street or Tottenham Court Road
by Crossrail will be half an hour quicker
than it is now,” says David Le Neve Foster,
director of County Homesearch in
Berkshire. This will mean that prices in
the well-developed city centre will
increase, but also that developers are sure
to look to build new developments on the
edges of town or on brownfield sites.
North of London, the Hertfordshire
towns of St Albans, Harpenden, Hertford
and others are already commuter
hotspots, but as Simon Pendlebury of
Linden Homes points out, the improve-
ment to the Thameslink will also improve
the through trains to the airports of
Gatwick to the south of London and to
Luton in the north, while the Farringdon
interchange onto Crossrail will slash jour-
ney times to Heathrow in the west.
Added to all of this are the changes to
the congested London Bridge area, which
will improve the commute from the
Dartford area. At the moment there are
just two tracks for all trains on these
lines, and this will be doubled by 2012.
Demolition of parts of Borough Market
are underway at the moment and regret-
table as they are, they will ease the bottle-
neck that currently makes travelling
from the east into the City, Waterloo and
Charing Cross a chore.
With the creation of High Speed 2,
which will link London and Edinburgh
via Birmingham, it might even become
plausible to commute from England’s sec-
ond city to London. In fact, say developer
Hackett & James, some are already buying
its luxury properties in Birmingham and
commuting into London. With a journey
time of an hour and a quarter on quiet
trains where you can work, it’s possibly a
better use of your time than taking a cat-
tle-truck from the London suburbs. Crest
Nicholson’s Park Central in Birmingham
would also be an option.
At the moment it’s too early to say we
are entering a new era of travel paradise
in the Home Counties, especially as some
of the promised upgrades won’t be in
place until 2019, but at long last things
are looking up for commuters. Not a
moment too soon.
Living | Winter Property Special
24 CITYA.M. 3 DECEMBER 2010
From Hackney to the country
WHEN they decided that they needed more space, Bekim and Elizabeth
Nuhiu and their son Leon knew that they had to look beyond Hackney,
where they owned a flat. Property prices were rising due to the East
London regeneration ahead of the Olympics – 26 per cent in Hackney as
a whole, and 69 per cent in some areas, according to research by Lloyds
TSB – making moving up the property ladder impossible.
“We love Hackney and would have happily stayed in the area but we
simply couldn’t afford to buy a larger home there,” said Elizabeth. “We
wanted to buy a three bedroom house with a garden and this would just
not have been possible in Hackney or anywhere nearby. We also wanted
Leon to grow up experiencing the countryside but we needed to be
close to London and good travel links as I work near St Pancras and my
husband works in Charlton.”
After looking at Dartford, they plumped for the new Liberty Park
development, built by Crest Nicholson. Their new home, which cost just
over £200,000, is just a mile and a half from Strood station, which
gives Elizabeth a 32-minute commute to St Pancras on the High Speed 1
line. “I’m at my desk in just over an hour of leaving home which,
considering it used to take me 45 minutes from Hackney, is really very
good – particularly as we can enjoy all the benefits of living in the
countryside for only an extra 15 minute commute.” Trains from Strood
also go to London Bridge, Waterloo East and Charing Cross. The
development is just two miles from picturesque Rochester and close to
the A2 and M2 motorways.
LIBERTY PARK, KENT
Perhaps the best feature of this development for commuters is that
Strood railway station is just a mile and a half away, with a 32-minute
trip to St Pancras. The properties themselves have a traditional feel,
with weatherboarding and hanging tiles, while tree-lined boulevards
and landscaped open space give it a spacious feel. Two, three and four-
bedroom houses are available, perfect for growing families. Two
bedroom coach houses from £149,500; three bedroom houses from
£214,500.
For further information contact Crest Nicholson on 0870 752 4382 or
visit www.crestnicholson.com/LibertyPark.
Commuting can
only get better.
Bekim and
Elizabeth Nuhiu,
with son Leon.
BALLS PARK, HERTFORD
Ten minutes from Hertford North
and East Railway Stations, this
offers a 45-minute commute into
central London, something that will
become more pleasant when the
Thameslink upgrade kicks in. The
17th century Balls Park mansion,
built around 1650, and the Grade II-
listed coach house and stables, built
in 1902, are currently being
transformed into 40 apartments set
in beautiful landscaped gardens and
parkland, which all residents will
have access to.
For further information, contact
City & Country Group on 01992
551777 or visit: www.balls-
park.co.uk.
Gloucester Avenue, Primrose Hill, NW1 Freehold
Family House: 2770 sq.ft. 5/6 Bedrooms 5 beautiful
Bathrooms 2/3 Huge living areas Fully equipped
kitchen Terrace, Balcony and garden Partial A/C
Secure gated car parking
£2,650,000. Freehold
Mews Houses: 1390 sq.ft. 3 double
Bedrooms 2 stunning bathrooms 24 x 17
Living room Fully equipped Kitchen Terrace,
Balcony and secure car parking
£1,100,000. Freehold
Unique opportunity. In the heart of this
prized residential area just by the Royal
Park and easily accessible to the City &
West End a limited edition of two newly
built family houses and 6 mews houses
of exceptional quality.
Exemplary standards of design and build
complemented by stunning
contemporary interiors with finest
materials. 10 year build warranty
included. Each house features extensive
terraces/garden and secure car parking.
AMAZING VALUE AND
RECOMMENDED.
Anthony Casingena Property Consultants 10/12 Perrins Court, Hampstead, London NW3 1QS
RESIDENTIAL SALES & LETTINGS ASSET VALUATION & MANAGEMENT DEVELOPMENT & INVESTMENT
020 7433 3933 www.anthonycasingena.com
Living | Winter Property Special
25 CITYA.M. 3 DECEMBER 2010
MOSAIC, ST ALBANS
Mosaic is a collection of 259
apartments just a few minutes
walk from St Albans train station,
with regular and fast trains to
London St Pancras in 20 minutes,
Farringdon in 30 minutes and
London Bridge in 40 minutes. The
contemporary city-style
apartments feature open-plan
layouts and built-in AEG energy
efficient appliances. Many also
have en suite bathrooms, floor-to-
ceiling windows and a terrace or
balcony. Prices start at £170,000
for a studio apartment, with one,
two and three bedroom
apartments also available.
See www.lindenhomes.co.uk or
call the Linden Homes sales team
on 01895 827 456.
REGENCY GATE, MAIDENHEAD
Close to the town’s shops and restaurants and a short
walk from the mainline station, with a 45-minute
commute into London. Crossrail won’t be here until
2017, but when it opens it will give quick access into
the City and West End. Heathrow is just 16 miles
away, and the M25, M4 and M40 are nearby.
Two and three-bedroom apartments are on the
market, as well as three and four-bedroom
townhouses, all built in a traditional style with fully-
fitted designer kitchens with earthstone worktops
and energy efficient appliances. £450,000 for a four-
bedroom townhouse.
Visit www.lindenhomes.co.uk or call the Linden
Homes sales team on 01895 827 456.
HARDY’S GATE, DARTFORD
A development of two-bedroom coach houses, two and three-bedroom cottages
and four-bedroom detached homes built in a “traditional style” around a village
green, this is designed for young families looking for more space outside London.
The homes are close to Dartford and the Bluewater shopping centre, and are in the
catchment area for the top schools in Dartford and adjacent to the sought-after
Dartford Grammar School for Girls. Dartford to Charing Cross is theoretically a 45-
minute commute, while the nearby Ebbsfleet International station takes you to St
Pancras in 17 minutes. Two-bedroom houses start at £225,000, three-bedroom
houses at £275,000 and four-bedroom houses at £370,000.
Contact the sales and marketing suite on 0870 757 8188 or visit
www.crestnicholson.com.
Home-builders ramp up incentives
to lure hard-up first-time buyers
H
OME-BUILDERS have always offered
buyers deals, but some are more
valuable than others. Take, for
example, the West Bromwich
Building Society’s offer in 2004 of a free
Rover car worth over £7,000 – a year before
the car-maker went into administration.
The downturn has left house-builders
with new-builds sitting empty all over the
country, and first-time buyers are finding
it hard to persuade banks to loan. This has
led to builders dreaming up all sorts of
incentives to attract buyers.
Among the most eye-catching are Crest
Nicholson’s offer to pay for an annual sea-
son ticket worth £3,292 for the High Speed
1 rail link from Ebbsfleet to King’s Cross to
those who buy at their Ingress Park devel-
opment at Greenhithe. Anybody who buys
a penthouse at the same development gets
a £10,000 interior design voucher.
Taylor Wimpey is also offering people
who reserve a new home before Monday 6
December a Christmas package including
a tree, crackers, a hamper and champagne.
Incentives at its other developments
include a cleaner or a gardener for a year,
or holiday vouchers.
The Christmas deal seems to be a popu-
lar one this year. If you reserve a property
at Linden Homes’ Oakley Meadows devel-
opment at Chinnor before Christmas, they
will throw in a holiday – a Caribbean
cruise or a trip to Disneyland or Australia
– up to the value of £5,000. Linden is also
offering to pay £10,000 towards a conser-
vatory at the same development. David
Wilson Homes will give buyers of flats at
its Moo-ve development in Banbury an
annual rail and underground pass
between Banbury and London, worth
£4,760.
But while these might be nice sweeten-
ers, they aren’t likely to be enough to con-
vince cash-strapped buyers. When it
comes down to brass tacks, it’s really all
about the money for first-time buyers.
Although they do their best to differenti-
ate themselves, the deals offered by all the
big home-builders are pretty similar.
Firstly, they all have some sort of part-
exchange offer. One of the biggest perils
of moving in the current market is the
risk of chains collapsing. To protect
against this, Linden Homes, Taylor
Wimpey and Crest Nicholson all offer a
part-exchange service and guarantee to
buy your old home.
Taylor Wimpey asks three local estate
agents to value the property and guaran-
tees to take it off your hands when you
pick up the keys to your new home,
whether it is ready to move into or not.
Crest Nicholson guarantee to make an
offer within seven days, and all of them
will cover estate agents fees.
Second, there is a wide range of deposit-
matching or shared equity deals. Banks
are loath to lend to home-buyers and in
many cases the best mortgage you can get
requires a 10 per cent deposit. Both Taylor
Wimpey and Crest Nicholson have a deal
where if you raise 5 per cent, then they
will match that with an interest loan,
Living | Winter Property Special
26 CITYA.M. 3 DECEMBER 2010
From deals on shared
equity to free train
tickets, there are
teasers galore, writes
Jeremy Hazlehurst
Carrots, carrots
everywhere.
Picture: GETTY
allowing you to access 90 per cent mort-
gages. Barratt has a similar scheme called
Head Start which, they say, means that
you can buy a home with as little as an
£8,450 deposit in some of its London
developments.
Not everybody can get hold of a 90 per
cent mortgage, of course, and for those
looking at 80 per cent loans, Barratt will
lend you 15 per cent of a 20 per cent
deposit, in the form of an interest-free
loan payable after 10 years or on the sale
of the property, whichever comes first.
Taylor Wimpey offers the same 5/15 per
cent deal, with the money repayable in up
to three installments over a 10-year period.
Crest Nicholson has a similar deal, which
it calls Easy Buy. There is no interest for
the first five years, and you pay back the
loan when you sell the property.
While these look fantastic, bear in mind
that not all lenders will look kindly on
these schemes and that they might not
want to lend to people who can only raise
5 per cent – it doesn’t say an awful lot for
your financial clout, and they want to be
sure you can pay back the money they
lend you.
Also, be sure to read the small print
when considering these deals. Make sure
you are aware when you start paying
interest on the loan. And be aware that in
some cases you pay back not the amount
that you borrowed, but the per centage
value of the re-sale price, which could be
a lot more.
Fourthly, there are deals that are
aimed at getting friends or family to use
a deposit as an investment, something
which is increasingly popular for first-
time buyers. Linden has a Parent Bond,
which means that if a family member
provides up to 25 per cent towards the
purchase price they get a guaranteed
return of 10.25 per cent on the amount
for two years.
Taylor Wimpey has a similar deal called
the Family and Friends Advantage.
Anybody contributing a deposit of up to
20 per cent of the new home price to help
a friend or relation will receive a return of
5 per cent per annum for five years.
Fairview has a deal for buy-to-let investors.
If you pay a 30 per cent deposit they will
give you 8.2 per cent return for two years,
on top of the rent you receive.
IT’S ABOUT THE PACKAGE
David Hollingworth from mortgage
adviser London & Country says
that while incentives can be
attractive, you have to look at the
whole package. A house-builder
might only require a 5 per cent
deposit, and make up the rest of
the money in a loan, but that is not
necessarily enough to get you a
mortgage. “Lenders want to see
that you are putting money in and
making a real commitment rather
than just buying on a whim and
seeing how it goes,” says
Hollingworth. Lenders look at your
risk profile, not just the amount of
money you can access.
When you add in all the costs then
saving for a deposit could still be
the best option. Those with a 25
per cent deposit could, for exam-
ple, get Yorkshire Building
Society’s 2.89 per cent two-year
fixed rate, while typical for a 90
per cent deposit would be HSBC’s
4.99 per cent two-year rate. It’s
tempting to do anything to get on
the housing ladder, but is not nec-
essarily the best value for money.
Flashy incentives can be good, but
the boring truth is that incentives
such as a free valuation, or help
towards the legal work, might end
up saving you more overall, says
Hollingworth .
MORTGAGE DEALS
It’s not only the home-builders who
are getting in on the incentives act –
the lenders need to pull in the punter
too at the moment. David Carmichael
of mortgage advisor Taylor
Carmichael Financial Services points
out that Royal Bank of Scotland
offers a lower arrangement fee to
those who already hold its Royalties
account. Elsewhere, Coventry
Building Society is offering a £500
IKEA voucher for those who take up
a mortgage with a fixed rate of 5.69
per cent until 2015 with no arrange-
ment fee and a £199 booking fee.
Lloyds TSB has a Lend a Hand product
for first time buyers who need only
raise a 5 per cent deposit along with a
“helper” who can pay a further 20 per
cent of the property value. The money
is held by the bank and earns 3.75 per
cent interest per annum. The mortgage
rate is 4.99 per cent for three years.
Others are simply offering low repay-
ment rates. ING has one of the best
lifetime deals about at the moment. It
has a 60 per cent LTV mortgage with
the rate of base rate plus 1.85 per cent
for the first two years, 2.35 per cent
right now, with a subsequent rate of
2.35 per cent. The fee is £945.
limassolmarina.com
LIVING ON
THE SEA
S
A
L
E
S

U
N
D
E
R

W
A
Y
Designed by a world-renowned team of architects and engineers,
Limassol Marina in Cyprus is destined to become the most
exclusive waterfront development in the Mediterranean.
Just a stroll away from the heart of Limassol town, it combines
luxury apartments, villas with private berths and a state-of-the-art
Marina with an enticing mix of restaurants and shops, to create a
lifestyle uniquely shaped by ‘living on the sea’.
Construction has commenced and the first apartments have
been released with an attractive finance scheme. Berths are
available for residential property owners at the Marina.
Prices from £370,000.
UK
+44 (0)20 8371 9700
International
+357 25 820511
Developed by Limassol Marina Ltd.
Managed by Cybarco Ltd.
Operated by Camper & Nicholsons Marinas.
<280,*+7
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KníghlFrank.cc.uk]Lcllíngs
020 7431 8686 hampslcadìcllíngsQkníghlfrank.ccm
KníghlFrank.cc.uk]wappíng
020 7480 6848 wappíngQkníghlfrank.ccm
KníghlFrank.cc.uk]Fuìham
020 7751 2400 fuìhamQkníghlfrank.ccm
KníghlFrank.cc.uk]Canarvwharf
020 7512 9966 canarvwharfQkníghlfrank.ccm
KníghlFrank.cc.uk]kívcrsídc
020 7590 2450 rívcrsídcQkníghlfrank.ccm
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020 7499 1012 mavfaírQkníghlfrank.ccm
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020 7590 2450 rívcrsídcìcllíngsQkníghlfrank.ccm
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020 7480 6848 wappíngìcllíngsQkníghlfrank.ccm
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020 7483 8349 marvìcbcncìcllíngsQkníghlfrank.ccm
Cuide £1,375,000 Cuide £1,400,000 Cuide £675,000
£310 per week £525 per week
£1,200 per week £395 per week £370 per week
Cuide £1,050,000 Cuide £1,275,000 Cuide £650,000 Cuide £1,200,000
Cuide £920,000
£750 per week £450 per week
£775 per week
ln gccd crdcr lhrcughcul, lhís hcusc has a sunnv palíc gardcn and
a garagc. 2 dcubìc bcdrccms, bcdrccm 3, balhrccm, shcwcr rccm,
rcccplícn rccm, kílchcn, palíc gardcn, garagc. Apprcxímalcìv
107 sq m (1,15/ sq fl). Frcchcìd.
5 bcdrccms, 3 balhrccms (1 cn suílc), kílchcn]díníng]famíìv rccm,
dcubìc rcccplícn rccm, ìargc gardcn. Apprcxímalcìv 215 sqm
(2,315 sq fl). Frcchcìd.
ßcaulífuì 3 bcdrccm aparlmcnl. 3 bcdrccms, balhrccm, rcccplícn
rccm, scparalc kílchcn, díníng rccm, ccmmunaì gardcns, garagc.
Apprcxímalcìv 121 sq m (1,305 sq fl). Sharc cf Frcchcìd.
Furníshcd aparlmcnl ín Síìvcr wharf, wílh 2 dcubìc bcdrccms,
1 balhrccm, cpcn pìan rcccplícn and mcdcrn kílchcn. A ìargc lcrracc
cĝcrs vícws cf lhc walcrfrcnl. Ccncícrgc, ccmmunaì rccf lcrracc and
parkíng íncìudcd. Furníshcd.
A slunníng 1 bcdrccm gardcn ğal ín Icllíng híìì ccmprísíng cf
bcdrccm, rcccplícn rccm wílh cpcn pìan kílchcn, balhrccm and
ccnscrvalcrv. Furníshcd.
An ímmacuìalc famíìv hcmc ìccalcd ín lhc hcarl cf Líllìc vcnícc.
3 dcubìc bcdrccms, 2 balhrccms, rcccplícn rccm, díníng rccm,
cìcakrccm, Ğllcd kílchcn and a síngìc garagc. Furníshcd cr
unfurníshcd.
A ncwìv rcfurbíshcd ccnlcmpcrarv 1 bcdrccm aparlmcnl ìccalcd cn
lhc 1sl ğccr cf a purpcsc buíìl dcvcìcpmcnl. 1 bcdrccm, 1 balhrccm,
rcccplícn rccm and fuììv Ğllcd kílchcn. Apprcxímalcìv /5 sq m
(/8/ sq fl). Furníshcd.
Spacícus and bríghl aparlmcnl ín a pcrícd buíìdíng. 0cubìc
bcdrccm wílh cn suílc balhrccm, gucsl wC, rcccplícn rccm wílh
cpcn pìan fuììv Ğllcd kílchcn and sìídíng dccrs ìcadíng cnlc a
prívalc gardcn. 56 sq m (596 sq fl). Avaíìabìc furníshcd.
2 bcdrccm ğal wílh culslandíng vícws cf lhc rívcr and lc Tcwcr
ßrídgc. kcccplícn rccm, 2 cn suílc balhrccms, shcwcr rccm, fuìì
wídlh baìccnv, ìífl, parkíng. Apprcxímalcìv 107 sq m (1,159 sq fl).
Lcaschcìd 988 vcars rcmaíníng.
Maslcr bcdrccm suílc, / furlhcr bcdrccms, 2 furlhcr balhrccms
(1 cn suílc), dcubìc rcccplícn, kílchcn]brcakfasl rccm, slcrc rccm,
wcsl facíng palíc gardcn. Apprcxímalcìv 192./ sq m (2,072 sq fl).
Frcchcìd.
A 2 dcubìc bcdrccm aparlmcnl ín 0ísccvcrv 0cck wcsl. Thc
aparlmcnl has vícws lc Canarv wharf, lhc dcck and lhc kívcr Thamcs
frcm a wcndcrfuì baìccnv. Apprcxímalcìv 95.7 sq m (1,030 sq fl).
Lcaschcìd.
A spacícus 3 bcdrccm aparlmcnl Ğníshcd lc cxaclíng slandards. Un
lhc grcund ğccr cf a fanlaslíc rívcrsídc dcvcìcpmcnl lhís aparlmcnl
ccmcs wílh lwc sccurc parkíng spaccs. Apprcxímalcìv 125 sq m
(1,350 sq fl). Lcaschcìd.
A 1 bcdrccm aparlmcnl wílh baìccnv cvcrìcckíng a prívalc gardcn
ín a mcdcrn purpcsc-buíìl bìcck wílh lhc bcncĞl cf a ìífl. Maslcr
bcdrccm suílc, rcccplícn rccm, kílchcn, cìcakrccm, baìccnv.
Apprcxímalcìv 68.3 sq m (735 sq fl). Lcaschcìd 51 vcars.
Ccmprísíng cf 2 bcdrccms, 2 balhrccms (1 cn suílc), a ìargc
scmí-cpcn pìan rcccplícn, mcdcrn wcìì-cquíppcd kílchcn and
ìargc baìccnv wílh rívcr vícws. Apprcxímalcìv 97 sq m (1,050 sq fl).
Furníshcd.
2 dcubìc bcdrccm furníshcd ğal, duaì aspccl rcccplícn rccm ìcads
cn lc a prívalc palíc gardcn, 2 balhrccms, kílchcn, wccdcn ğccrs,
undcrgrcund parkíng and a ccmmunaì gvm. Apprcxímalcìv
928 sq fl. Furníshcd.
A slvìísh and mcdcrn mcws hcusc. 2 bcdrccms, 2 cn suílc
balhrccms, rcccplícn rccm wílh baìccnv, kílchcn, parkíng vía
scparalc ncgclíalícn. Apprcxímalcìv 10/ sq m (1,119 sq fl).
Avaíìabìc unfurníshcd.
Uvcr haìf lhc prcpcrlícs wc scìì ín Lcndcn arc príccd al
£1.5m cr bcìcw, and cn avcragc wc scìì a prcpcrlv ín
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Living | Winter Property Special
30 CITYA.M. 3 DECEMBER 2010
Baubles
to warm the cockles this
Christmas
1 6
I
F there’s is one time that you can have a bit of fun in the house, it’s
Christmas. Even the cold heart of the most ardent minimalist melts at this
time of year, and starts yearning for things that glitter and flash. But it
doesn’t have to all be about twinkly lights on a tangled wire and wonky
fairies on the top of trees. We scoured the world of classy, quirky
Christmas decorations to bring you the best ways to make your
home fun this year. From classy angels by Georg Jensen to
peculiar gnomes, via unusual tree decorations,
these should bring a smile to your family’s
faces come Christmas day.
1 7
1 5
11
1 2
1 3
1. Personalised
porcelain Christmas
bauble, £16, www.notonthe-
highstreet.com
2.Georg Jensen Angel Gabriel, £20,
see www.skandium.com for stockists.
3. Scandiavian Christmas gnomes, from
£17, see www.skandium.com for
stockists.
4. Santa bauble, £14.
www.notonthehighstreet.com
5. Penguin Russian doll set, £10, from
Habitat, www.habitat.com
6. Christmas stocking, £9.50 from
www.toast.com
7. Little London Christmas decora-
tions, £15, www.notonthe
highstreet.com
1 4
mmm$Yh[ijd_Y^ebied$Yec
*Sub|ecl lo 0resl Nicholson`s lerns ond condilions. Nol in con|unclion wilh ony olher offer ond on selecled plols only. Trovel lines ore opproxinole. Prices correcl ol line of going lo press.
London`s colling
Wilh slylish new hones ocross lhe connuler bell, gelling fron pillow lo plolforn is o
breeze! Fn|oy o low noinlenonce new hone wilh oll nodern fixlures ond fillings ond wilhin
eosy reoch of The 0ily. Whelher you ore looking for o High Slreel or o wolerfronl locolion,
bolh Bose ond The Pier offer lwo of lhe nosl ospirolionol new oddresses.
Plus, when you reserve o slylish new oporlnenl you will olso receive on onnuol Brenlwood
or 0reenhilhe lroin slolion seoson lickel lo London, fully filled flooring & lighl fillings!*
~¡~:l:e:ls l¦~l co::ecl vou lo T¦e Cilv
8Wi[ | Brenlwood | Fssex
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[:o: l¦e sl~lio: [o: l:~i:s lo Lo:oo: Live:¡oo¦ Sl:eel
i: |usl o8 :i:ules
1 bedroom apartments priced Irom £17ó,500
2 bedroom apartments priced Irom £223,500
&.-&-+-.).*
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Morkeling Suile & Show Hone open doily
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2 bedroom apartments priced Irom £215,000
2 & 3 bedroom penthouses priced Irom £335,000
&.-&-+(*)-&
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Morkeling Suile & Show Hones open doily
1Oon lo 5pn
The Pier at Ìngress Park, 0reenhithe Base, Brentwood
Base, Brentwood The Pier at Ìngress Park, 0reenhithe
London apartments
with classic stylings
A
NYBODY who wanders through
the West End for any amount of
time is taken with the stunning
architecture, but many don’t get
the opportunity to stay in these wonder-
ful buildings. The new generation of
serviced apartments, however, offers you
the chance.
These are proving increasingly popu-
lar for those who regularly spend time
in London for business but who don’t
want to stay in faceless hotels on the one
hand, or can’t justify buying a property
in the capital on the other.
At the top end of the range are places
like 47 Park Street, the only serviced
apartment in Mayfair. An Edwardian
townhouse, it was built in 1927 as a pri-
vate residence for the 1st Baron Milford
but has now been converted into 49 pri-
vate residences, which offer a full
concierge service, à la carte room serv-
ice, in-house florist, valet service and
twice daily housekeeping. It’s a mix of
old English charm and bang up-to-the-
minute mod cons, with DVD player,
stereo, satellite TV and a kitchen with
Villeroy & Boch cookware and china,
Hepp flatware and Siemens appliances.
One of the benefits for frequent
London visitors is a storage service,
which lets visitors come back to
pressed clothes hanging ready
for them in the wardrobe – and
they’ll even put out pictures of
your family on the mantelpiece
to make you feel at home.
It all works on a fractional
ownership system, and for an ini-
tial outlay of between £110,000
and £260,000 depending on the
size of the residence, you can stay
for 21 nights a year. Extra nights
cost less than £100.
Interestingly, 44 per cent of
new members who joined in
2010 live in Surrey.
Perhaps the best thing
about all this is that you also
get access to a serious
concierge service. You can order in
meals from nearby three Michelin-
starred restaurant Le Gavroche, and it
also has partnerships with the likes of
the Royal Opera House – they can get
you tickets not available to the public
and behind the scenes tours – and
Morton’s, an elegant private members
club on Berkeley Square. You can also
get deals on treatments at the nearby
Spa Illuminata and use the gym and
pool at the Marriott Park Lane hotel.
An alternative for those who want
long-stay accommodation is the option
offered by the Firmdale group, which as
well as running fashionable hotels in
areas such as Soho, Covent Garden and
Knightsbridge also has a range of serv-
iced apartments attached to some of its
hotels.
The most traditional of these
is the townhouse connected to
its Haymarket Hotel, right next
door to the historic Haymarket
Theatre. Guests have access to
private dining and meeting
rooms, a drawing room, a
concierge, valet parking and
some exceptionally elegant
rooms that offer something clos-
er to home comforts than faceless
international hotel.
The building was designed by John
Nash, the man who was responsible
for much of the lay-out of Regency
London and designed some of the
most iconic buildings in the city,
including Buckingham Palace,
Clarence House and Trafalgar
Square. The interiors are designed
in a sort of super-modern Georgian
English style, with oak dominating
the lobby and library. Guests also
have use of the 18m pool and gym.
The hotel’s Bruno Brega says that
most of the guests are “either media
industry majors, such as film producers,
actors or directors, and high income cor-
porate clients, usually from New York
and other US locations, Russia and
Western Europe.” High demand for
rental properties in London “has caused
standard rental prices to rise significant-
ly, bringing rental levels closer in line
with the prices offered for full serviced
apartment services”, he says, which is
encouraging people to opt for serviced
apartments. The group also lets out
properties at its Soho Hotel as serviced
apartments.
If such central locations aren’t your
thing, then one alternative is the bou-
tique-style Space Apart Hotel in
Westbourne Grove. It targets “business
travellers and corporate executives who
come to London regularly on business
who want a home from home experi-
ence or somewhere more private with-
out having to pay a hefty price tag,” says
Zeev Zi Pear, the hotel’s co-owner. As
such, guests don’t demand some of the
add-ons that the serviced apartments
that work on a fractional-ownership
basis do. “Our guests tell us that as they
are international travellers they don’t
need parking or personal shoppers, they
just need high comfort, all mod cons
and a friendly concierge,” he says.
The hotel prides itself on the atten-
tion to detail in the rooms, which are all
individually styled, and when taken
along with the Georgian architecture
give a really classic-meets-modern feel.
Although it normally has a 94 per cent
occupancy rate, at Christmas they say
that locals with overcrowded houses use
it as classy overflow accommodation for
in-laws.
Living | Winter Property Special
32 CITYA.M. 3 DECEMBER 2010
Old meets modern in
the new generation of
serviced business
accommodation, says
Jeremy Hazlehurst
HAYMARKET HOTEL
If being slap-bang in the centre of the action is your thing, then you can’t do much
better than the Haymarket Hotel, a stone-cold Georgian classic designed by John
Nash. It has a separate building with suites in a townhouse next to the hotel,
which can be booked out for long-term stays as serviced apartments. The rooms
can be configured to give you anything from a one to a five-bedroom apartment –
with prices for one room from £2,100 for the week, while the entire townhouse
can be rented out for £31,000 per week.
See www.firmdale.com for more information.
APARTHOTEL
Another beautiful Georgian façade, this
time in Westbourne Park, this targets busi-
ness travelers who are staying in London
for one to two weeks. Modern comforts
are the name of the game. 32in flat-screen
televisions, DVD players with a free DVD
library, iPod docks and high-speed internet
access should keep you entertained when
you are not enjoying the bars and restau-
rants in the area.
For more information, see www.apartho-
tel-london.co.uk.
47 PARK STREET
The Mayfair location makes it a
big hit with the finance crowd –
35 per cent of members who
joined in 2008/9 worked in the
industry. The classic Edwardian
stylings give it an air of tradition-
al gentility, but it is bang up to
date with all the trappings of
understated, modern apartments.
It’s popular with foreign guests,
but also with Brits who spend
time in London. It’s not cheap,
with membership starting at
£110,000, but you get serious
bang for your buck, with a
concierge and access to some of
the top arts and entertainment
venues in the capital. It’s hard to
single out any one feature as the
best, but perhaps getting food
shipped over from Le Gavroche,
which is practically next door, has
to come pretty high on the list.
www.47parkstreet.com
For membership enquiries
call 020 7950 5528, or email
info@47parkstreet.com.
Heating Roofing Locks
Plumbing
& Drainage
Electrics
L
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187751
European classics still
all the rage if you want
a place in the sunshine
Buyers are looking for safety in traditional hotspots such as
Italy, France and the eastern Med, writes Jeremy Hazlehurst
I
F you fancy picking up a nice cot-
tage in the Irish countryside, or a
villa in Portugal or Greece, then
now might be the time to start
looking. In the wake of the financial
crisis most potential buyers were put
off by uncertainty, but now the euro-
zone is in crisis and the pound is rela-
tively strong, some buyers are
starting to look favourably on bricks
and mortar.
“Since the market collapsed at the
end of 2008, international property
has suffered not only at the hands of
the recession, but at the crumbling
pound and lack of lending facilities
for higher risk transactions,” says
Camilla Mabbott of estate agent
Aylesford International. “2009 and
most of 2010 have been pretty stag-
nant with many sellers dropping
their prices to entice buyers, compen-
sate for the poor exchange rate and
get out of trouble themselves.” In the
past few weeks, though, she says that
the market has started to pick up as
bargain-hunters come into the mar-
ket. In 2011, she says, “we expect the
trend to continue and people will
gradually come out of the wood-
work.”
These buyers are generally looking
for safe-havens – old favourites like
the South of France, Tuscany, Ibiza
and Corfu are proving popular right
now. “Prices have come down by
between 10-30 per cent,” says
Mabbott. She adds that places with
amenable tax regimes, especially in
the Caribbean, will continue to
attract buyers.
A recently-launched property fund
called Vikare decided to start with
one of the true European classics –
Tuscany. “As well as a beautiful place
to spend leisure time, Tuscany is an
area where investment can be
extremely stable and lucrative,” said
the firm, pointing out that 11m visi-
tors a year go there. The global repu-
tation means that it is pretty much
recession-proof: even when
Europeans aren’t going there, Asians
are. An “undiscovered hotspot”, says
Vikare, is Valdera, an area that is
often compared to Chianti. Vikare
points out that construction in
Tuscany is strictly controlled, and
therefore over-supply is unlikely to
become a problem.
For those who are more interested
in an owner-occupied property, the
key is to look for those areas with
price stability, liquidity and security.
In other words, places where demand
is always high and is unlikely to be
shaken, whatever happens to the
economy. Buyers are not necessarily
looking for places that will make
them money, but ones that offer a
high quality of living for buyers and
their families. The continuing high
demand in these areas also means
that if the need arose to liquefy an
investment, then there would always
be plenty of buyers and there is little
chance that the investment would
significantly lose value. Examples of
such stalwarts include Geneva,
Cyprus, Tuscany, the Cote d’Azur and
Barbados. Right now there is a gap
between sellers’ expectations and
what buyers are willing or able to pay,
but if vendors are willing to price sen-
sibly, then good quality properties are
still finding buyers.
Italy remains a firm favourite and a
solid investment, says Claire Hazle, a
Living | Winter Property Special
34 CITYA.M. 3 DECEMBER 2010
negotiator at Knight Frank. “Italy has
long been regarded as a solid invest-
ment for the long-term lifestyle pur-
chase, providing you with much
more than just an overseas holiday
home,” she says. “Here you acquire a
piece of the lifestyle, the food and
wine, the history and architecture,
majestic views and welcoming locals.
Buying property in Italy offers you a
safe and trusted destination with
excellent international links and a
solid infrastructure.”
Tuscany and Umbria are currently
both excellent areas to look, she says,
with prices starting at around
€800,000 for a well restored farm-
house with pool and views. In
Tuscany she suggests looking at the
Cortona area close to Lake Trasimeno
and reached from Perugia
International airport, which has
direct flights from London Stansted.
In Chianti she recommends looking
in Figline Valdarno, a quaint Tuscan
town on the river Arno located about
20km south east of Florence with a
manageable commute to an
International School and
Florence/Pisa Airport.
Also proving a sensible buy now
are city boltholes – this is a good time
for a “restoration project”, Hazle says.
In Florence the San Niccolo area on
the south bank of the Arno is popu-
lar, a “very arty community with lots
of quirky cafes, shops and nightlife”,
while in Venice the Guidecca area has
become “trendy” and offers new,
modern property at more competi-
tive prices.
Intriguingly, one of the hot-spots
for the next few years could be
Greece. As those Greeks who still do
have money remain nervous about
investing their money, they will
switch to property. In the context of
that country, that means holiday
resorts.
In fact we are already starting to
see some quality resorts getting
under way, such as the Aman resort
outside Athens, which is already
under construction. Clever investors
might also be looking to the likes of
Spain and Portugal where, however
ugly the clouds on the financial hori-
zon, the sun will always shine.
Living | Winter Property Special
35 CITYA.M. 3 DECEMBER 2010
APARTMENT IN SAN FREDIANO,
FLORENCE
On the south side of the river in the San
Frediano area and just 20 minutes from
the airport, this elegantly restored, 185 sq
m apartment mixes tradition and
modernity with exposed beams on the
ceilings and swish modern design
throughout. It’s set over two floors and has
glass sliding doors that lead to a decked
courtyard. There are three bedrooms and
the same number of bathrooms.
€1.25m, contact Knight Frank on
020 7629 8171
VILLA IN TANNERON,
SOUTH OF FRANCE
Just 25 minutes from the centre of
Cannes in the heights of Mandelieu in
the village of Tanneron, this property
has a sea view over the bay of Cannes.
Set in approximately 1.1 hectares, the
villa comprises 650 sq m and has a
swimming pool, pool house, tennis court
and golfing greens. There are six
bedrooms and six bathrooms, including a
master bedroom with dressing room.
€4.95m, through Beauchamp Estates,
www.beauchamp.com, tel: + 33 (0)4 93
94 45 45/020 7499 7722
VILLA BARCARELLI, TUSCANY
This 400 sq m country house has six
bedrooms – five en-suite – including a
master suite with its own staircase to the
garden. There is a tennis court and a
14x6m solar-powered swimming pool,
with a pergola and a poolside kitchen. As
well as the main house, there is a 50 sq m
guest cottage, also with a solar-powered
heating system. The grounds have their
own olive grove and the property is set in
100 acres of woodland, which includes a
private lake. Just 30 minutes from Pisa
airport, the closest town is Palaia.
Recently reduced from €3.8m to €3.5m,
through Aylesford International,
www.aylesford.com, tel: 020 7349 5100
AKAMAS BAY VILLAS, CYPRUS
On the spectacular Akamas
Peninsula on the north west
coast of Cyprus, this
development consists of 40
three- and four-bedroom villas,
each with a pool and
landscaped gardens. You can
customise your property,
adding a cinema room, gym or
wine cellar. Residents can make
use of the nearby Anassa Hotel,
with its spa and restaurants.
Akamas Bay is 25 miles from
Paphos International Airport.
From around €1.6m to €3.967m.
Contact Cybarco on 020 8371
9700 or Knight Frank on 020
7629 8171,
www.knightfrank.co.uk
I
T WAS a huge day for Matthew Riley
the founder of telecommunications
company Daisy yesterday. He
announced a £23.5m buyout of his
competitor, NEG MBO Two Limited – a big
deal particularly considering that just last
week Daisy bought out SpiriTel
Technologies for £30m. When asked about
the deals Riley grins cheekily and says he’s
“been Christmas shopping.” Riley does not
seem at all flustered by the affair; high
speed seems to be his style. Riley has accel-
erated Daisy from a start-up launched
from his garage in 2001 to the Aim-listed
company worth around £260m that it is
today.
Despite living in London for a few days a
week for meetings, Riley has no intention
of moving Daisy’s headquarters away from
its birthplace of Nelson in Lancashire. Riley
was born in Burnley, Lancashire. He left
school at 16 to join a Youth Training
Scheme where he earned £29.50 a week
fixing fax machines. This was what
initially led him into a career in telecom-
munications. But being a bit of, what he
described as, a “wheeler dealer” it wasn’t
long until he left to start out on his own.
Riley felt there was a gap in the telecom-
munications market for greater customer
service care for small businesses, not just
the cabling. The idea took off quickly, mak-
ing Riley bold enough to launch Daisy on
Aim in 2008 to raise capital to start buying
out its competitors. He explains that the
strategy was: “Basically to take on their
customer bases but keep our own business
model.” He has now bought out 36 com-
petitors.
Riley puts his success down to two fac-
tors: the first was establishing a direct
debit payment system: “After all cash is
king, so many good businesses go under
because of cash flow problems. Could you
imagine chasing cheques from 75,000
small businesses?” The second was win-
ning an RBS award for small businesses:
“We had quite a low profile before that, it
gave us more credibility.” Not to mention
the prize: £5m interest-free funding and
mentoring from Sir Philip Green who
Riley claims he is still in touch with every
other day. “I mean he’s an inspiration. If he
phones HSBC he’ll be put through to the
head of the bank, I struggle to get hold of
my branch manager,” Riley chuckles.
He might sound modest but he is
extremely ambitious. He talks excitedly
about how he’s going to make his mark on
the call-waiting services market to manage
peak time calls. “Doctors surgeries really
need these. If you’re feeling a bit off colour
it’s a nightmare having to ring back over
and over again trying to get through. I’m
going to contact my own doctor’s surgery
about it.” But the plans don’t stop here. He
hopes to see Daisy Group in the FTSE 250
in the next five years.
Donata Huggins speaks to Matthew Riley
about the rise of Daisy telecommunications
Modest but ambitious Picture: Micha Theiner/City A.M.
Sometimes good, some-
times bad
Picture: ALAMY
The master of
business buyouts
C
REDIT rating agencies’ recommen-
dations have always caused anxiety
and bafflement to small business
owners. But now according to
accountancy firm Shelley Stock Hutter
there is proof that there is little rhyme in
the agencies’ reasons: the firm recently
conducted an investigation comparing
the three well-known credit agencies, Dun
& Bradstreet (D&B), Experian and
Creditsafe. The investigation found that
the agencies could sometimes return wild-
ly different credit ratings and limits for
the same small business. For example,
Creditsafe recommended one small busi-
ness a credit limit of £43,000 while D&B
recommended the same business £17.5m.
Bobby Lane, a partner at Shelley Stock
Hutter, blames this state of affairs on
small and medium sized businesses’ (SME)
failure to submit up-to-date management
information to credit agencies: “In some
cases, a good credit rating could make or
break a business. Many SMEs are unwit-
tingly putting their credit chances at risk
– they need to realise that the information
they are currently submitting to the agen-
cies could fail to present a true picture of
the performance of the business. I have
seen cases where many strong businesses
have low credit ratings and as a result find
it difficult to obtain terms with their suppli-
ers.”
Entrepreneur Natalie Ellis, the founder of
Prestige Pet Products, says: “We had a huge
problem with our credit rating when we
were starting out. It turned out that the
problem was caused by an error on our
Companies House records. It goes to show
how important it is to check and supply the
most up-to-date information.”
Shelley Stock Hutter have found that
SMEs improve their chances of obtaining a
better credit rating if they ensure that the
credit agencies have the most up-to-date
accountancy reference date for the business,
as well as registered address, the balance sheet
net assets and key staff members’ names.
While it is true that some agencies do not
accept external additional information,
others do.
Working out which ones do can be a little
tricky. None of the agencies advertise accept-
ing additional information. Lane suggests
that it is basically a matter of calling the agen-
cies and trying your luck. If they refuse to
accept the new information, you should try
another agency, advises Lane.
Businesses need to find ways to
work around varying advice given
by agencies, says Donata Huggins
The lucky dip of credit rating
Q.
Is it possible to promote
my small business in the
press?
A.
Absolutely. Journalists are busy peo-
ple but they want and need to hear
from specialists with stories and
ideas. Don’t be put off if you don’t have a
dedicated press department, or even a dedi-
cated person for handling the media, getting
coverage for your company only requires cre-
ative thinking and a little research.
Q.
What is the most effective way to
achieve this?
A.
The first thing you need to do is
work out your specialism: what
expertise can you offer? What sto-
ries can you provide? For example, if you are
a small construction business, you will be
able to comment on property, building and
planning news. You will also more broadly be
able to comment on the conditions facing
small businesses.
The second most important thing to do is
ensure that you target your information cor-
rectly – make sure you know the interests of
the newspaper and the various journalists’
briefs. There is very little point contacting a
fashion journalist, for instance, about devel-
opments in the building sector.
Finding a journalist’s contact details and
information about their brief is not difficult.
They often advertise them in their publica-
tion or on their website – and if not they will
normally be listed on websites such as
www.gorkana.co.uk and
www.journalisted.com.
Finding out about a journalist’s brief and
their background is vital for the success of
your pitch. Once you have identified your tar-
get journalists, read as many of their articles
as possible to find out what interests them,
but more importantly look at the type of
material they use. This should guide what
you offer. For example, if they regularly use
statistics and research, commission research
in your business sector and send it to them
with a comment.
Be sure to think carefully about the type
of story the information you send could cre-
ate. This has to be interesting, informative
and link to the current news agenda where
possible. You improve your chances of a
story being picked up if you can provide sub-
stantial evidence.
Make sure your emails are brief and clear.
Don’t send emails with the information
buried under pictures and graphics that take
ages to download. Journalists receive hun-
dreds if not thousands of emails a day. If you
haven’t made your point in the first few lines
your email is more likely to get missed.
And finally, it is very important to be easy
to contact. Make sure you provide a direct
line or mobile number on the bottom of all
your emails.
Q.
What must I not do?
A.
Never lie or provide information you
are not sure is true. When the jour-
nalist finds out, you will destroy any
chance of having a relationship in the future
since they will not trust the information you
provide.
Try your best not to phone a journalist
close to their
deadline. If you
have a story
relevant for
that day make
sure you call
early in the
morning before
the day’s agenda
has been decided.
If the story is not
time specific – just
email.
Donata Huggins
Age: 36
Born: Burnley
Lives: Lancashire and London
Studied: Left John Fisher &
Thomas More School at age 16
First ambition: “To make some
money and get out of school.”
Reading: What You See Is What
You Get by Alan Sugar
Favourite business book: Losing
My Virginity by Richard Branson
Drinking: Guinness
Motto: “Cash is King.”
Talents: “I can walk on my
hands.”
Idol: Winston Churchill
Turnover: “Around £260m”
Staff: 13,000
CV | MATTHEW RILEY
City Focus| Entrepreneurs
36 CITYA.M. 3 DECEMBER 2010
Q&A
BUSINESS PR
?
FASHION NEWS
BY ZOE STRIMPEL
I
T’S at this time of year that lots of us
are reminded just what a frightful
drag shopping can be. But of course,
it doesn’t have to be – you just have to
find the right shop. Take the new premis-
es of men’s clothes and accessories brand
Simon Carter on Bow Lane in the City –
along with enough colour and English
style to revive even the most cheesed-off
Christmas shopper, there’s an antique
hoopla game (you know, throw the rings
over the pegs to score points) on a pillar by
the cash desk. Have a go on it while you’re
paying and you can win a smart pen from
the shop.
“I found it in an antiques shop in
Hastings,” says Simon Carter the man, who
founded his eponymous business 25 years
ago. “It’s part of the look of the store and
fun of the brand to have things like that
that are a bit intriguing.”
Carter, 48, is best known as a designer
of cufflinks which are sold in shops all
over the world – Jeff Randall of Sky News
recently described his as the world’s
biggest cufflinks business (Carter humbly
deflects this, stating instead that it’s at
least one of the most influential cufflinks
brands). From acorn-shaped links made
with semi-precious stones to crystal-
encrusted Spitfires and simple, smartly-
patterned square designs, Carter’s
cufflinks are crisp, uncomplicated and
imaginative.
“With cufflinks there’s a fine line to
tread to avoid being too quirky or novelty,
though it’s great men are more adven-
turous now,” he says. “David
Beckham’s ear lobe
translated very nicely
into cufflinks, making
it cool to wear dia-
monds or crystals. Now
things are becoming
more and more
refined and sophis-
ticated, but sparkly
is always good.”
While cufflinks
are Carter’s stock in
trade, the business has grown
to include other accessories like watches,
wallets and bags, and snappy menswear
like suits and coats. Carter’s fashion hero is
Paul Smith, and his own lines share a sensi-
bility – sharp cut, retro English themes –
with Smith, if at more affordable prices.
The same playful spirit that brought the
hoopla game to the shop runs throughout
the brand – for example, open up one of
the suave leather wallets and you find its
inside lined with a print of a 1950s comic.
The shop’s swing tickets carry graphic sto-
ries of Carter’s adventures on his scooter,
travelling off round the world with his pet
dog Gervase in tow – it’s all imaginary of
course.
In fact, Carter was a kid with a degree in
immunology and a love for vintage
clothes, who started his business in the
early ‘80s selling pewter brooches to shops
on the King’s Road. He’s also a world-
class croquet player, currently
ranked 50 internationally
and hoping to be picked to
play for England next
year. It’s an appropriate
sport for someone so
taken with the
quirkier side of
true Britishness.
“It’s the slight-
ly off-centre
world of Simon
Carter,” he says. “I like
that unexpected touch, tying that
sense of provenance of the product with
something more whimsical.”
Simon Carter, 8 Bow Lane, EC4M 9EB
Simon Carter is known for his cufflinks, but
his snappy menswear and accessory lines
are just as stylish, writes Timothy Barber
Simon Carter in his
new City shop. Below,
Acorn cufflinks £49,
St Leonard’s canvas
weekender bag £150.
www.simoncarter.net
Lifestyle | Fashion
BEST SKI RESORTS
FOR FAMILIES
IN MONDAY’S
TRAVEL SECTION
37
The man adding colour
and style to the City
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FERRAGAMO OPENS MONO-STORE IN ISTANBUL
The Turkish taste for luxury fashion brands is moving apace,
with the opening this week of a Salvatore Ferragamo store in
Istanbul. The new shop covers 200 sq m and is located in the ritzy
neighbourhood of Nisantasi. Including a full range of men’s and
women’s products, it is sure to keep the glitterati of the
European Capital of Culture happy.
NEW MARY’S LIVING & GIVING SHOP: PRIMROSE HILL
Shopping maven Mary Portas is opening her third charitable
shop full of shabby chic must-haves in Primrose Hill on 18
December. The shop’s theme is a house: peruse the “living room”,
“conservatory” and “reception room” for an assortment of design-
er clothing, jewellery and household bits and bobs. Mince pies
and carols on opening day. 109 Regents Park Road, NW1N.
HARVEY NICKS’ CHRISTMAS BAUBLE BAR
Harvey Nichols is making the Christmas shopping experience
more enticing with a partnership with luxury tequila maker
Patron. The Patron Silver Bauble Bar will transform the
menswear deparment into a Christmas wonderland, with a spec-
tacular bar installation offering a selection of festive (tequila)
cocktails. Open 16-23 Dec. www.harveynichols.com.
TANYA SARNE HANDWRITTEN SAMPLE SALE
Don’t miss the legendary Tanya Sarne’s sample sale this weekend,
with her sumputous collection of natural fabrics and lovely
knitwear from the Handwritten line going from £15. “I design to
de-stress and give women confidence in their femininity and daily
lives” says Sarne (pictured) – and who doesn’t want that? Sale is
today through Sunday, 11-7PM. 1-3 Middle Row, W10, 020 8962 9600.
Film
MEGAMIND
Cert: U
hhhhI
EVERY superhero needs a supervillain to
fight against, and vice versa. So when
one defeats the other, what’s left for the
victor to do? That’s the existential crisis
confronting Megamind, a blue-skinned
alien blessed with a huge brain inside
his shiny, Mekon-esque bonce. His evil
ambitions have the perfect foil in the
form of Metro Man, the smug beefcake
defender of Metro City. Megamind has
become so used to having his nefarious
attempts to take over the city foiled by
Metro Man that when he suddenly finds
himself victorious, he hasn’t a clue what
to do. The thrill of being wicked,
it seems, is all in the chase.
This is a blast. The 3-D ani-
mation is frequently stun-
ning, with plenty of aerial
chases through the metropo-
lis. What the script lacks in
originality it makes up for
in wit and sharp one-liners,
delivered perfectly by Will
Ferrell as Megamind him-
self.
Brad Pitt has fun as
vain cheesemeister Metro
Man, as do Tina Fey as the
gutsy news reporter
Megamind kidnaps, and
Jonah Hill as a schmuck
Megamind turns into a
superhero just so that he
has someone to fight. No
classic, but excellent holi-
day entertainment.
Timothy Barber
SECRETARIAT John Malkovich and Diane Lane star in the
story of the famous titular race horse.
MONSTERS Ultra-low budget, but rather enjoyable, British-
made zombie flick.
THE WARRIOR’S WAY Action adventure with Kate
Bosworth, Dong-gun Jang and Geoffrey Rush.
FILM
ALSO OUT
FILMS, MUSIC, GAMES
Lifestyle | Reviews
38 CITYA.M. 3 DECEMBER 2010
SEX AND THE CITY 2 Sarah Jessica Parker et al go to Abu
Dhabi, but leave their brains in the States.
THE A-TEAM Disappointing remake of the ‘80s TV show,
with Liam Neeson and his badly-dyed grey hair as Hannibal.
CATS AND DOGS 1 AND 2 Double set of fun films about
adventurous warring pets.
DVD
DUFFY Album two by the Welsh singer, co-written with
Albert Hammond of the Strokes, titled Endlessly.
OLLY MURS X-Factor also-ran and chipper likely lad releases
his eponymous debut.
BLACK EYED PEAS Their last album was called the E.N.D., so
the new one’s called the Beginning. The wags!
MUSIC
DONKEY KONG COUNTRY RETURNS (WII) The latest
installment of the game is released for Wii.
DEAD NATION (PS3) Kick zombie ass in this all-new shoot
‘em up.
BLAZBLUE: CONTINUUM SHIFT (PS3, X360) Sequel to the
Japanese arcade game.
GAMES
BEAUTY AND THE BEAST,
NATIONAL THEATRE
A new version of the fairytale classic by
Lucy Kirkwood, incorporating music,
magic and puppets. The director is Katie
Mitchell, who was behind last year’s
enthralling Cat in a Hat. Until 4 Jan. Tickets
from £10 from www.nationaltheatre.org.uk
MY DAD’S A BIRDMAN,
THE YOUNG VIC
David Almond has adapted his own hit
book about a father and daughter
attempting to take to the skies
despite the best efforts of an inter-
fering aunt, while none other
than the Pet Shop Boys have pro-
vided the songs. Until 1 Jan. £8 kids,
£10 adults. www.youngvic.org
POTTED PANTO,
VAUDEVILLE THEATRE
CBBC’s Dan and Jeff – who also had
a smash hit with their wizardly
Potted Potter – deliver seven pan-
tomimes in 80 minutes, including
Sleeping Beauty, Aladdin, Dick
Whittington and Snow White. Madcap
stuff. Tickets from £15 from
www.pottedpanto.com
CINDERELLA,
SADLER’S WELLS
Super-choreographer Matthew Bourne is
reviving his exquisite version of
Prokofiev’s Cinderella, set during the
blackout in wartime London, where
Cinderella’s encounter with a dashing
RAF pilot plays out against a city trans-
formed by the Blitz. Until 23 Jan. Tickets from
Timothy Barber picks out the
must-see shows for kids of all
ages in London this Christmas
A family theatre bonanza
Below, The Snowman
at Sadler’s Wells.
£10 from
www.sadler-
swells.com
THE SNOWMAN,
THE PEACOCK
THEATRE
An enchanting stage version of Raymond
Briggs’s book. Altogether now: we’re walk-
ing in the air…. Until 9 Jan. Tickets from £12,
www.sadlerswells.com
JACK AND THE BEANSTALK,
HACKNEY EMPIRE
Panto fun of the fee fi fo fum variety at the
Hackney Empire, including the singing
harp, the golden hen, and Buttercup the
break dancing cow. And a giant, of course.
Until 9 Jan. Tickets from £9.50 from www.hack-
neyempire.co.uk
DICK WHITTINGTON AND HIS CAT,
LYRIC HAMMERSMITH
Stephen Fry and Alan Davies have lent
their voices as narrators Bow and Bells for
the Lyric’s colourful telling of the feline
fancier who came to London to seek his
fortune and eventually became mayor.
Until 8 Jan. Tickets from £10 from www.lyric.co.uk
PEPPA PIG’S PARTY, THE CRITERION
Every little kid’s favourite playful
piggy celebrates her birthday
with her brother George,
Suzy Sheep, and Ellie
Elephant, with songs and
lots of jumping in puddles.
Until 2 Jan. Tickets from $14.50
www.peppapiglive.com
GET SANTA!, THE ROYAL COURT
Sloane Square’s innovative the-
atre brings magic and mischief
– and an elf called Bumblehole
– to contemporary issues in
Anthony Neilson’s play about
a little girl who waits up for
Santa on Christmas Eve to trap
him, in order to make him help
her find her real father. Until 15
Jan. Tickets from £8 from
www.royalcourttheatre.com
Children will
fall in love with
this evil alien
Right, Jack and the
Beanstalk at the
Hackney Empire.
Below, Dick
Whittington at the
Lyric, Hammersmith.
T
E
R
R
E
S
T
R
I
A
L
COUNTRYWISE KITCHEN
ITV1, 8.00PM
New series. The team searches out
seasonal British recipes. Paul Heiney
visits a sheep farm in Cumbria once
owned by Beatrix Potter.
ROBERT’S WEB
CHANNEL4, 10.30PM
Peep Show actor Robert Webb
hosts a comedy show offering an
alternative take on the week’s online
news and events.
LAW& ORDER: SPECIAL VICTIMS
UNIT CHANNEL5, 10.00PM
A woman is investigated for supplying
alcohol to minors after a student is
found dead at a party. With Mariska
Hargitay and Christopher Meloni.
BBC1
SKY SPORTS 1
7pmSky Sports News at
Seven 7.30pmPremier League
Preview8pmTest Cricket
10pmTake It Like a Fan
10.30pmFootball League
Weekend 11.30pm-6amLive
Test Cricket
SKY SPORTS 2
7pmLive Darts 11pmWorld
Sport 11.30pmPremier League
Preview12amElite League Ice
Hockey 1amPremiership
Rugby Union 2amNFL: Total
Access 3amNFL 4.30am
Premiership Rugby Union
5.30am-6amWorld Sport
SKY SPORTS 3
6.30pmLive LPGA Tour Golf
9pmLive PGA Tour Golf 12am
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13
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18
22
Fill the grid so that each block
adds up to the total in the box
above or to the left of it.
You can only use the digits 1-9
and you must not use the
same digit twice in a block.
The same digit may occur
more than once in a row or
column, but it must be in a
separate block.
COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk
KAKURO
QUICK CROSSWORD
LAST ISSUE’S
SOLUTIONS
KAKURO
WORDWHEEL
Using only the letters in the Wordwheel, you have
ten minutes to find as many words as possible,
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters
or more, all must contain the central letter and
letters can only be used once in every word. There
is at least one nine-letter word in the wheel.
SUDOKU
Place the numbers from 1 to 9 in each empty cell so that each
row, each column and each 3x3 block contains all the numbers
from 1 to 9 to solve this tricky Sudoku puzzle.
SUDOKU
QUICK CROSSWORD
ACROSS
1 Bafing question
or problem (5)
4 Implement used to
sharpen razors (5)
7 Person whose job
it is to dust and
vacuum, etc (7)
8 Pull sharply (3)
9 Greyish-brown
colour (5)
12 Old Testament
prophet (5)
15 Rate of travel (5)
18 Farewell remark (5)
20 Make the sound
of a dove (3)
21 Confined,
imprisoned (7)
23 Lance (5)
24 Gateaux (5)
DOWN
1 Edging of small loops,
as on lace (5)
2 H Rider Haggard novel (3)
3 Gamut (5)
4 Watery fluid of
the blood (5)
5 Customary practices (5)
6 Leaves of a book (5)
10 Viper (3)
11 Food in a pastry shell (3)
13 Ancient (3)
14 Consciousness of one’s
own identity (3)
15 Draws in by a vacuum (5)
16 Wear away (5)
17 Interior furnishings (5)
18 Jelly based on fish
or meat stock (5)
19 Stairs (5)
22 Vex (3)
T
T
E
A
Y E
L
P
H
4

4

4

S A L E S B A L L S
C E E S A
A W A K E N P L A N
R R R A C E E
C A N E M A N G O
E E S I T L S
A D L I B F A C E
C A X I S Z P
R U S T A N O I N T
O T O E E
P E T E R B U R S T
3 6 9 8 4 8 3 1
1 2 7 5 8 6 9 5
8 6 1 9 5 3
1 4 5 3 2 3 4 2
2 9 7 5 8 9 6
4 8 6 9 3 1 2 7
1 3 4 6 2 1 8
7 2 1 8 6 4 7 9
9 7 1 9 4 3
8 5 6 3 1 2 4 7
6 3 1 2 7 1 8 9
8 5 1 3 7 9 6 4 2
6 3 9 4 1 2 7 5 8
4 7 2 6 8 5 3 1 9
3 6 8 2 4 1 9 7 5
1 9 4 8 5 7 2 3 6
7 2 5 9 3 6 1 8 4
5 1 6 7 9 8 4 2 3
2 8 3 1 6 4 5 9 7
9 4 7 5 2 3 8 6 1
WORDWHEEL
The nine-letter word was
GEOMETRIC
Lifestyle | TV&Games
39 CITYA.M. 3 DECEMBER 2010
AFTER a hugely impressive demolition of
Blackburn at Old Trafford on Saturday,
Manchester United fell back down to
earth on Tuesday night when West Ham
unceremoniously dumped them out of
the Carling Cup. Sir Alex Ferguson fielded
a heavily weakened side, but he will not
have been happy with the lack of desire
that his youngsters showed.
Blackpool were kicking themselves last
weekend after letting a two-goal lead slip
at in-form Bolton. However, Ian Holloway
probably would have taken a point
beforehand and his side have now lost
just one of their last six league games.
That said, they have lost their only home
game against a team currently in the top
half, Manchester City, and United will
prove a very difficult test.
The Red Devils are still unbeaten in the
league this season and although they’ve
only won one on the road, they will
expect to take all three points tomorrow
evening. They have won eight of their last
10 trips to promoted sides and of their
last 10 league victories, home and away,
all 10 have come by the HT / FT double
result. That can be backed at 11/10 on
Betdaq and is the main selection.
Since 2005/06, middle-third promoted
teams have won none of 17 home games
hosting the Big Four, losing 11, with
seven coming by the HT / FT defeat.
Holloway seems to accept that his team
will lose games against the big boys and it
would be a big surprise if the match
ended up anything other than an away
win.
The goals are likely to flow in this one;
there have been three or more scored in
12 of the Tangerines’ 15 league matches
this campaign. They’ve managed to score
in all six home games, netting two in five
of them, so we could be set for an enter-
taining early evening encounter.
Sporting Index quote goals at a huge
3.3-3.5 and that is due to Blackpool’s
gung-ho attitude, as well as United’s
seven-goal party last weekend. I wouldn’t
normally contemplate buying at such a
big price, but this really could be a day for
the strikers, so the advice is to get on.
United often bounce back from a
defeat and even though they won’t be too
upset about not winning another Carling
Cup, the players will want to show that
Tuesday night was just a blip. I can see
them running out comfortable winners,
so spread bettors are also advised to buy
their supremacy at 1.7 with Sporting
Index.
POINTERS...
Manchester United / Manchester United at EVS
on Betdaq
Buy match goals at 3.5 with Sporting Index
Buy Manchester United supremacy at 1.7 with
Sporting Index
United can give the
Tangerines red faces
IT’S not exactly the return of the prodigal
son, but Gerard Houllier’s first visit to
Anfield as Aston Villa manager adds
some spice to Monday night’s live game.
He might not be feeling too confident of
repeating his team’s 3-1 win here last sea-
son, though, as Villa have been shocking
on the road so far this term. Having
taken just four points from a possible 21
on their travels, they really need to start
picking up some points away from home
as they’re still only three points clear of
the relegation zone.
Liverpool have a similar make up to
Villa in that they are also very poor on
the road and have only suffered one
home defeat. However, they actually
played well at Tottenham on Sunday and
should really have left White Hart Lane
with at least a point. Roy Hodgson will be
pleased his side are back at Anfield on
Monday where they have won 16 of their
last 24 home games against bottom-half
opposition, with 11 wins coming by two
or more goals.
This really looks an ideal opportunity
for the Reds to notch another home win,
especially as Villa had a tough battle with
Birmingham in the Carling Cup on
Wednesday night. The home win is 4/6
on Betdaq and that is worth a bet consid-
ering both team’s home and away
records.
There have been at least three goals in
four of Liverpool’s last five home games
this season and in 14 of their last 18
when hosting bottom-half outfits. There
have also been three or more goals in
eight of the Villains’ last 13 away fixtures
and in five of their last six at Big Four
sides.
I fancy this to be another high scoring
game – all of the last five contests
between these two at Anfield have seen a
minimum of four goals – so will be buy-
ing Sporting Index’s prediction at 2.8
POINTERS...
Liverpool at 4/6 on Betdaq
Buy match goals at 2.8 with Sporting Index
WEST HAM remain firmly rooted to the
bottom of the table, yet they managed to
produce an astonishing performance on
Tuesday night to knock Man United out
of the Carling Cup. However, the fact
remains that they are winless in 25 away
league games and they’ve lost three and
drawn three of their last six trips to top-
half non-Big Four teams.
Sunderland looked like they were
going to notch only their second away
win of the season at Molineux last week-
end, only to concede two late goals and
end up losing 3-2 to Wolves. That was a
blow for Steve Bruce’s men, but they will
relish another game at the Stadium of
Light as they are one of only two unbeat-
en sides at home this campaign.
The Black Cats have won six of their
last eight home contests against non-Big
Four sides and are unbeaten hosting bot-
tom-six teams since the start of last sea-
son. They lost to the Hammers in the
Carling Cup here earlier in the season,
but their league form has been strong
and they are currently seventh in the
table.
Bettorlogic.com analysis shows that
both teams have scored in seven of
Sunderland’s last eight home games
against bottom-six sides, but that is tem-
pered by the fact West Ham have only
found the net in three of their seven
games on the road. I’m going to stick to
just the one selection here and with
Sunderland having such a strong home
record this season, that is to back the
home win at 5/6 with Paddy Power.
POINTER...
Sunderland at 5/6 with Paddy Power
MONDAY, 8.00PM, SKY SPORTS
ASTON VILLA
LIVERPOOL
TOMORROW, 5.30PM, ESPN
MANCHESTER UNITED
BLACKPOOL
P
i
c
t
u
r
e
:

G
E
T
T
Y
SUNDAY, 4.00PM, SKY SPORTS
WEST HAM
SUNDERLAND
Punter | Football
CITYA.M. 3 DECEMBER 2010 40
...the home of form
FOOTBALL TRADER FOOTBALL TRADER BEN CLEMINSON HAS TEAMED
UP WITH BETTORLOGIC TO BRING YOU THE CITY AM FOOTBALL TRADER
Sport
41
“WE REALLY COULD NOT HAVE
TRIED ANY HARDER”
CRESTFALLEN BECKHAM’S REACTION
TO ENGLAND’S FAILED 2018 BID: P43
NEW SARACENS recruit Gavin
Henson is expected to make his eager-
ly awaited debut on Boxing Day
against Wasps at Wembley.
The Welsh centre’s involvement in
BBC television show Strictly Come
Dancing has delayed his first appear-
ance for the London club, with whom
he signed a contract until the end of
the season in October.
Saracens chief executive Ed
Griffiths said: “If you’re looking at it,
the Wembley match looks like a
grand stage for what could be a grand
occasion.
“Obviously, selection of the team is
very much up to the coaches, but it’s
funny how things seem to work out.
“Maybe Gavin Henson’s Saracens
debut could take place on the grand-
est stage in English sport at Wembley
Stadium.”
Henson has been out of the game
for over a year, and his comeback
could coincide with an extremely
busy period in the domestic calendar,
including the return of the Heineken
Cup.
But Griffiths insisted Henson
would be ready for action, saying:
“He’s looking exceptional in training.
The coaches are delighted with his
progress. it won’t be long before we
see him on the field for Saracens.”
RUGBY UNION

ESPIONAGE is not one of the more
orthodox tactics employed by Ashes
combatants but Australia are hoping
to gain a decisive edge from their
man with inside knowledge of the
England camp.
Tasmanian Dene Hills, who until
three months ago was England’s lead
batting coach, joined the Australia
squad as performance analyst ahead
of the second Test, which started in
Adelaide this morning.
Hills, who amassed expert knowl-
edge of the entire England set-up dur-
ing two years with the national
set-up, defected in September but
was prevented from starting his new
role by a 90-day clause in his contract.
That clause expired last week,
allowing the 40—year-old to team up
with his fellow Australians and plot
the downfall of his former paymas-
ters.
“We think he will bring some local
knowledge of England in the short-
term, but long-term he’s a fantastic
fit for the Australian cricket team,”
said Michael Brown, general manag-
er at Cricket Australia.
“An opportunity has come up now
as performance analyst, where he
can combine his technical skills in
and around the IT part of the game
with his coaching. He brings a wealth
of experience and credibility.
“I’ve become an undercover agent I
suppose. But, seriously, Dene was
keen and it was all above board. We
knew he’d have a termination period,
which we respectfully allowed him to
complete.”
Hills, rated the best Australian
batsman never to have played for his
country, is the second former mem-
ber of England’s back-room team to
have switched allegiances in recent
years.
Bowling coach Troy Cooley, a for-
mer team-mate of Hills with
Tasmania state, quit England for a
job with his native country after
helping Andrew Flintoff and friends
win the iconic 2005 Ashes series.
The arrival of Hills was not the only
change made by Australia ahead of
the second Test, with selectors, as
expected, dropping bowler Mitchell
Johnson following his woeful show in
the drawn first Test.
Johnson finished with figures of
none for 170 as the hosts’ attack
failed to make a dent in England’s
heroic second
innings, and
was replaced in
the side this
morning by Doug
Bollinger. Paceman
Ryan Harris was also
included at the expense of
Ben Hilfenhaus.
Spy games as Aussies bank
on defector for Ashes edge
BY FRANK DALLERES
CRICKET

Henson lined up to make
Saracens Wembley debut
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SPORTS EDITORFRANK DALLERES
email sport@cityam.com
SPORT | IN BRIEF
Birmingham to identify rioters
FOOTBALL: Birmingham City’s acting
chairman Peter Pannu has vowed to
come down hard on those fans the club
manages to identify as having caused
trouble during Wednesday’s Carling Cup
quarter-final win against Aston Villa.
Hundreds of fans confronted riot police
at the final whistle, and the club con-
firmed they will hold an impartial investi-
gation in to the rioting. Pannu said: “We
do not condone the embarrassing actions
of certain individuals. A meeting has
been called involving all parties con-
cerned and we will of course support the
football authorities and police in this
investigation.”
Schwarzer signs new Fulham deal
FOOTBALL: Fulham goalkeeper Mark
Schwarzer has signed a new two-year
deal. The 38-year-old had been heavily
linked with a move to Arsenal during the
summer but has ended speculation about
his future by commiting to the west
London club. “I’m delighted to have final-
ly signed a contract extension with
Fulham after a great deal of speculation
surrounding my future in recent months,”
he said.
Harrington on fire in Sun City
GOLF: Padraig Harrington carded a six
under par round of 66 to lead the
Nedbank Golf Challenge by one stroke
after a rain-affected first day at Sun City.
The Irishman fired seven birdies and had
just one bogey as he produced an excel-
lent back nine to move ahead of English
duo Ross Fisher and Lee Westwood, on
five and four under respectively. Fisher
had led for most of the day but regis-
tered a double-bogey at the par four
17th. “I may have hit one driver too many
on 17, I was between driver and three-
wood and I pulled it a bit left,” he said.
“It’s just one of those things. I guess six is
as good as I could have done.”
THE ALL-ROUNDER |
CONDITIONS, STATS AND BANTER
PITCH
The surface looks greener than
most Adelaide tracks and the rain
could liven things up early on.
Winning the toss and batting first
would still be the preferred sce-
nario from an England point of
view though, considering our upper
hand in the spin department.
STAT OF THE DAY
Despite the euphoria that accom-
panied England’s fightback in
Brisbane, it cannot be overlooked
that we were let off the hook after
a below par first innings total. They
can’t afford to make the same mis-
take here – the average first innings
total in the last 10 Tests is 416.
Even the West Indies have passed
400 on their last two visits.
FIGHTING TALK
“The fact is the Poms are more dis-
ciplined, their bowlers are better. I
believe their bowlers bowl tighter
than our blokes and we don’t
have the patience that
they do. They’re just bet-
ter organised than we
are. To me, we look
like we’re a sham-
bles. I knew we’d
struggle to take 20
wickets.” Former
Aussie paceman,
Jeff Thomson who,
along with Dennis
Lillee, terrorised
England in the 1970s,
isn’t overly impressed by
the state of Australia’s current
bowling attacking.
WEATHER FORECAST
Sunny
HIGH
LOW
32
0
25
0
Hills has started-
work with
Australia, who
have axed
Johnson (inset)
Pictures: GETTY
A BACKLASH at media allegations of
corruption and vote-swapping pacts
were blamed last night after
England’s bid to host the 2018 World
Cup ended in abject humiliation.
England were eliminated from the
contest in the first round of the secret
ballot after polling just two votes –
one of which was from their own del-
egate Geoff Thompson.
Russia achieved the majority need-
ed to see off a joint bid from Spain
and Portugal in the second round,
meaning they will stage the tourna-
ment for the first time.
England had gone into a day of
drama at the headquarters of world
governing body Fifa with high hopes
of winning, despite stiff competition.
But the expected support failed to
materialise, despite frantic lobbying
from star turns David Beckham,
Prince William and David Cameron –
dubbed the Three Lions.
Prime Minister Cameron called the
result “bitterly disappointing”,
adding: “It is hard to see what more
you can do, but in the end it turns
out, having the best technical bid,
commercial bid, the passion for foot-
ball, that is not enough.”
Mayor of London Boris Johnson,
who was also part of the 30-strong bid
team, said: “I certainly don’t think
they made a decision on the merits
of the bid. Gutted is an understate-
ment.”
The almost total shunning of
England’s bid led to speculation that
they had been deliberately frozen out
because of media claims of corrup-
tion within Fifa.
The Sunday Times and the BBC’s
Panorama programme have both
accused members of Fifa’s all-power-
ful executive committee (ExCo) of
being involved in bribery.
Fifa president Sepp Blatter
namechecked “recent media cover-
age” and “certain media” in an
address to ExCo members before the
lunchtime secret ballot.
England captain Rio Ferdinand crit-
icised the BBC for running Panorama,
which named three ExCo members it
accused of corruption, on Monday
night, less than 72 hours before the
vote. “The timing of the Panorama
programme was bad taste – fact,”
Ferdinand wrote on Twitter.
“England got lowest votes – 2!
Something really can’t be right
there.”
Former Football Association chiefs
David Davies and Mark Palios said the
results suggested a backlash against
English media coverage.
“I think that may well be a feature,”
said Palios. “To see why we actually
came nowhere near and underneath
the Belgium/Holland bid, it sounds
like it’s almost payback time.”
Davies added: “The problem with
the English press, as it was put to me,
was: ‘Do we want to live with the
English press for the next seven-and-a-
half years?’ Which is a big question.”
Andy Anson, chief executive of the
2018 bid, suggested England lost
because rivals struck voting pacts
with bidders for 2022, which Qatar
won in a huge surprise.
“Running two World Cups together
was clearly a mistake,” said Anson. “It
inevitably led to people with votes in
2018 doing deals with people
involved in 2022.
“There were other votes we
thought we were going to get. When
people look you in the eye and prom-
ise you something, you hope they live
up to their word.”
Crushing defeat as bid to stage 2018 World Cup wins
just two votes, prompting fears of a Fifa backlash
against allegations of corruption from British media
Accusations fly after
England humiliated
Sport 42 CITYA.M. 3 DECEMBER 2010
LIVERPOOL manager Roy Hodgson
believes his side’s progression to the
last 32 of the Europa League is the per-
fect riposte to those who doubt the
depth and quality of his squad.
The Reds are through to the knock-
out stage of the competition with a
game to spare following last night’s
draw against experienced European
campaigners Steaua Bucharest.
Milan Jovanovic headed a Liverpool
side, made up of fringe players and
young hopefuls, into a 19th minute
lead, but an uncharacteristic error
from goalkeeper Pepe Reina allowed
the hosts to snatch a point.
Hodgson was nonetheless encour-
aged by his team’s display. He said: “I
am very happy. Happy most of all the
team we had confidence in to take on
this tough task of facing Steaua were
able to produce the performance, and
get the result we needed.
“Players like Danny Wilson, Dani
Pacheco and Jonjo Shelvey, who have
hardly played at all in the first team,
asking them to come to Bucharest
and get a result against a team of
Steaua’s quality is fantastic.
“It’s a good achievement consider-
ing we have gone through this Europa
League campaign giving many players
a chance to play who don’t normally
play in the Premier League.”
Liverpool appeared to be heading
for their first European away win of
the campaign before Reina, captain
for the night, allowed Eder Bonfim’s
header to squirm over the line.
“We are happy to have qualified for
the next stage of the Europa League
but I am not happy with the goal I
conceded,” said Reina.
“At first I thought it was offside but
it was my fault, my mistake and I
should have saved it. I was distracted
by another player who looked like he
was in an offside postion but I can’t be
making excuses and I should have
stopped it.”
Hodgson delighted as fringe players
and young starlets prove their worth
DEFINITELY NOT
OVER THE MOON
England figures
react to World
Cup bid disaster
Jovanovic is congratulated by Shelvey after opening the scoring Picture: ACTION IMAGES


It turns out having
the best technical
bid, commercial
bid and passion for
football is not
enough.
David Cameron


The timing of
Panorama was bad
taste – fact.
England got lowest
votes! Something
can’t be right.
Rio Ferdinand


We had a very
strong bid, sadly it
didn’t work out. I’m
sorry for the fans
back home, we did
all we could.
Prince William


It just makes you
wonder, if we
haven’t got this
World Cup then
when will we get
one?
Alan Shearer
BY JAMES GOLDMAN
FOOTBALL

1
1
STEAUA BUCHAREST
LIVERPOOL
BY FRANK DALLERES
FOOTBALL

SNUBBED | HOW THEY VOTED
ROUND ONE
England 2*
Holland/Belgium 4
Spain/Portugal 7
Russia 9
ROUND TWO
Holland/Belgium 2
Spain/Portugal 7
Russia 13 WINNER
*Eliminated for polling fewest votes
Beckham claims he and
other big guns could not
have done more for bid
Sport
43 CITYA.M. 3 DECEMBER 2010
RUSSIA and Qatar celebrated last
night after their vows to take the
World Cup into uncharted territory
earned them the right to stage the
2018 and 2022 tournaments. Qatar,
with a population of less than two
million, were the shock winners, but
Russia also prevailed having been
almost written off just hours earlier.
Prime Minister Vladimir Putin’s
absence had been seen as a blow to
their bid, but he jetted into Zurich to
join the party after learning of his
country’s success. “Russia loves foot-
ball, Russia knows what football is
and in our country we have every-
thing to conduct the 2018 World Cup
on a very worthy level,” said Putin.
“The decision corresponds with
Fifa’s philosophy for developing foot-
ball, especially in those regions of the
world where that development is
needed.”
Qatar succeeded despite Fifa admit-
ting concerns in their pre-vote report,
and have pledged to build nine new
stadiums with climate control to
combat extreme temperatures of up
to 50 degrees centigrade.
“We have worked very hard over past
two years to get to this point,” said
Emir Sheikh Hamad bin Khalifa Al-
Thani. “Today we celebrate, but
tomorrow, the work begins.”
Barack Obama, President of Qatar’s
rival bidders the United States, called
the result “the wrong decision”.
Russia and Qatar toast success as tournament breaks new ground
FORMER England captain David
Beckham was left crestfallen last
night claiming the bid team “did
everything possible” to bring the
World Cup home for the first time
since 1966.
A stellar charm offensive, led by
Beckham, Prime Minister David
Cameron and Prince William, had
seen England’s odds of hosting the
2018 tournament shorten dramatical-
ly, but ultimately the bid garnered
just two votes from Fifa’s Executive
Committee members.
Beckham said: “I think the bid
team have done everything possible,
we couldn't have got a better bid.
“We’re disappointed but we wish
Qatar and Russia the very best,
they’re two great countries and I’m
sure they’ll make Fifa very proud.
“It’s obviously hard to not come
away with the World Cup in 2018 but
a lot of congratulations have to go to
the team, a lot of hard work has been
done.
“With the Prime Minister’s hard
work and Prince William’s hard
work, the whole bid team has been
exceptional.
“It would be great to bring the
World Cup to our country because
we’ve not had it for so many years but
it’s a process I’ve enjoyed.”
Prince William, president of the
Football Association added: “We had
a very strong bid, sadly it didn’t work
out. I’m sorry for the fans back home,
we did everything we could.”
Former Arsenal vice-chairman
David Dein, a central and influential
figure in England’s bid, complained
that “the best team didn’t win”.
“When the technical study and the
economic reports came out, we were
one of best – if not the best – and I
think you’ll agree that the presenta-
tion today was top class, so that
makes it all the more disappointing
that we didn’t do better.
“I’m not sure how it worked, all I
can say is sometimes in life – we’ve
seen so many football matches in our
time – the best team doesn't necessar-
ily win.”
Former England striker Gary
Lineker, an ambassador for the 2018
bid, added: “They’ve always said they
want to push the frontiers – I was sur-
prised they went with two new ones
but there were a lot of good strong
bids.”
Fifa president Sepp Blatter announced
Russia’s success leaving the likes of Prince
William, Beckham and Cameron, not to
mention and entire nation, searching for
answers
Pictures: PA / REUTERS / ACTION IMAGES
AUSTRALIA’S
SPY GAMES TO
PINCH ENGLAND
SECRETS
PAGE 41
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Wilkinson and Haskell given ultimatum
ENGLAND stars Jonny Wilkinson and
James Haskell face career-defining
dilemmas after being told they will
not be picked for international duty if
they continue to ply their trade
abroad.
The Rugby Football Union’s recent-
ly-appointed chief executive John
Steele has written to England players
warning them that those based over-
seas will no longer be considered fol-
lowing next year’s World Cup.
Steele’s attempt to persuade players
to return home, and others to snub
lucrative foreign moves, is aimed at
strengthening the elite player squad
before England host the tournament
in 2015.
It would prohibit the selection of
Wilkinson (right), of Toulon, Haskell,
of Stade Francais, and his club col-
league Tom Palmer.
But while Palmer is likely to be
given exemption until his contract in
Paris runs out in 2012, Haskell and
Wilkinson, whose contracts are due
to expire in the summer, face tough
decisions over whether to renew.
“It is our strong intent, from the
end of Rugby World Cup 2011
through the RWC 2015 cycle, to select
our Elite Player Squads at all levels
entirely from players playing at
English clubs where at all possible,”
Steele wrote.
“I would stress that this is not a
change to our selection policy itself,
players remain entirely free to play
outside England should they so wish,
but you need to understand that it is
our absolute intention that we only
select from overseas clubs in excep-
tional circumstances. It is for you and
your agent to decide if you are willing
to take that risk.”
England manager Martin Johnson,
who enjoyed an encouraging autumn
campaign in which Wilkinson was
absent through injury and Haskell
played only a fringe role, backed the
RFU’s tougher stance.
“It’s virtually where it is
now, but it’s harder. We said
to some of the guys when
they went away that it
will be harder,” said
Johnson.
“It’s tougher when
players are over there
in terms of getting their
release and the fixtures
in France don’t marry
with internationals like
here. The number of
games they play in
France will have a
cumulative effect on players as well.”
Haskell’s availability for England
gatherings while at Stade Francais
has been an issue for the RFU,
and director of elite rugby
Rob Andrew believes the
change in stance will help to
avoid such scenarios.
“We’ve had some difficul-
ties over contracts with
the French clubs,”
Andrew said. “It’s also
more difficult to man-
age the players under
the terms of the EPS
agreement when
they are in France.
We think it’s in the
best interests of the
player for his long-term
international career and the
England team if we go down
this road.”
BY FRANK DALLERES
RUGBY UNION

BY FRANK DALLERES
FOOTBALL

BY JAMES GOLDMAN
FOOTBALL

IF YESTERDAY’S World Cup ballot alone
wasn’t a big enough kick in the teeth for
English football fans desperate to see the
biggest sporting event on the planet
hosted on home shores, the fact that
football now won’t be coming home until
2030 at the earliest simply rubs salt into
already gaping wounds. By then, it could
be as many as 64 years of hurt, David
Beckham will be 55 years old and Sir
Geoff Hurst, scorer of the hat-trick that
won England the World Cup in 1966, will
be 88. If you fancy a speculative patriot-
ic flutter, however, you can get on
England at 10-1 to be the host nation
come 2030.
IS IT COMING HOME? | MAYBE 2030