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Issue 1,180 Tuesday 20 July 2010 www.cityam.com FREE

INDIAN OIL GIANT Osborne in


bonfire of
MULLS £1BN FLOAT tax code


POLITICS
BY DAVID CROW
EXCLUSIVE GEORGE OSBORNE will today launch

BY DAVID HELLIER an independent body charged with


stripping the fat from Britain’s bloat-
JUBILANT ENERGY, an Indian-based ed tax code.
oil and gas exploration company, is The new Office for Tax
considering a flotation on the Simplification (OTS) will advise the
London Stock Exchange, according to chancellor on how to simplify the tax
City sources. system for businesses and individuals,
City stockbroker Evolution in keeping with the coalition’s aim of
Securities, assisted by Renaissance proving the UK is “open for business”.
Capital, is testing out the appetite for John Whiting, the former
a money-raising in London, say the PricewaterhouseCoopers partner and
sources. chair of the Chartered Institute of
A spokesman for Evolution told City Taxation, will become an unpaid tax
A.M. “Clearly it has been looking at director at the OTS, while ex-Tory MP
this for a while with a view to doing Michael Jack will chair the body.
something later in the year...it is look- Last night, Whiting told City A.M. he
ing at different ways of doing some- wanted the body to reduce the
thing.” “administrative burden” on firms.
There are suggestions that a flota- He added: “This is a real commit-
tion would look to raise around ment to simplify tax, and it’s clearly
£300m on the London markets and very welcome. It’s good to see that the
that the company, which is part of government’s pledge to simplify the
the Jubilant Bhartia Group, could be tax code has not been forgotten.”
valued at up to £1bn. The OTS will identify areas of com-
Last week an oil exploration group Jubilant Energy is part of a group run by Shyam Bhartia (left) and Hari Bhartia plexity and offer publicly-available
Fairfield Energy pulled its flotation advice on how to simplify them, but
after attracting less shareholder inter- add up” for the sponsoring banks. Jubilant Energy is part of the number of Indian groups wishing to the chancellor will still have the final
est than it had expected. It was hop- There were suggestions yesterday Jubilant Bhartia Group, a huge Indian raise money in London but advisers say when it comes to setting taxes.
ing to raise around £330m. that a host of other advisers have conglomerate run by Shyam Bhartia were finding it hard to distinguish Initially, the OTS will investigate
The online grocery group Ocado is been approached in recent months and Hari Bhartia. Its chief executive is the good companies from the less the regime for small businesses,
closing its own flotation today, with about putting a float together but Ajay Khandelwal. It has oil assets in well managed. including IR35 rules for the self-
institutions griping about its pro- have not been able to make the num- India, Australia and Yemen. There were question marks about employed. It will try to find ways of
posed £1bn valuation. bers work either. Another Indian energy group, the corporate governance of Essar reducing reliefs, allowances and
Jubilant Energy has tried to float in Goldman Sachs, whose oil experts Essar Energy, recently floated in Energy when it floated, with institu- exemptions, which now number some
London before. Three years ago JP and BP adviser Julian Metherell is London and although first day trad- tions worried that it had a lack of 400. Interim findings will be published
Morgan tried to pull off a deal but it said to have worked on a possible ing was disappointing the stock is truly independent directors on its in the Autumn with a full report ahead
failed to go ahead with City sources Jubilant float in recent months, now performing well. main board. of next year’s Budget.
saying that “the numbers just didn’t declined to comment. One source said there were a large DEADLINE DAY FOR OCADO: P3 ALLISTER HEATH: P2; MORE: P4

FTSE 100 ▼ 5,148.28 -10.57 DOW ▲ 10,154.43 +56.53 NASDAQ ▲ 2,198.23 +19.18 £/$ ▼ 1.52 -0.01 £/¤ 1.18 unc ¤/$ 1.29 unc Certified Distribution
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2 News CITYA.M. 20 JULY 2010

Our tax code needs a total overhaul NEWS | IN BRIEF


Investor warns on green energy
Neil Woodford, head of investment at
Invesco Perpetual, one of the energy
changing, which makes it tricky to Office for Tax Simplification be truly taxed twice; others even three times. industry’s largest shareholders, has
plan properly and efficiently. independent. When taking evidence, And what is the point of national threatened to stand in the way of new
Ignorance is no excuse in the eyes of it must treat government officials no insurance? It is merely a second layer investments in British renewables unless
the law – yet apart from those willing differently than it treats outside of income tax; a convenient way to the UK government ups the amount of
to spend a fortune on advisers, the experts or informed members of the camouflage hikes in direct taxation returns available to investors and pro-
rest of the country has at best an public. It is also vital that it be and to allow politicians to pretend vides greater certainty over the future
approximate grasp of what is permis- allowed to publish freely – or even bet- that they are keeping rates low. The of its policy. Invesco, which owns more
sible. The result is an unjust two-tier ter, that it must release – all of its con- money isn’t paid into some sort of pot than £4.5bn worth of shares in National
EDITOR’S LETTER system; we are not truly equal in front clusions. Last but not least, ministers or insurance scheme, contrary to Grid, Centrica, SSE, International Power,
of the law. must be required to respond properly what much of the public believes, but Drax and United Utilities, warned
ALLISTER HEATH All of this was made much worse to all the Office’s proposals, explain- is immediately spent on current against green energy plans laid out by
under the previous government, ing precisely why each discarded idea expenditure like all government rev- the coalition government in a letter to
LET us hope the coalition is serious which appeared to enjoy adding to simplify things is being rejected. enues. It is a con, like most of our tax Ofgem.
about tax simplification. Britain’s relentlessly to the tax code, in part to Simply dismissing its conclusions or system.
taxes are not only far too high; they try and squeeze ever more out of the firing off a short letter must not be It remains to be seen whether Desmond close to Five deal
are also extraordinarily complicated. I economy and in part because it was seen to be acceptable. George Osborne has the stomach for Express and Star newspaper owner
was recently talking to a very senior pursuing various forms of social engi- In the longer term, however, mere- this kind of thinking and the truly Richard Desmond has emerged as the
tax lawyer who admitted to me that neering via HMRC. In 1997, Tolley’s ly trimming the tax system around radical reforms that this would entail preferred bidder to buy RTL Group’s UK
no single person understands more tax handbook, the tax accountant’s the edges won’t work; it is akin to a – his Budget, by necessity a rushed channel Five. It is thought that the
than a small proportion of our tax bible, was 4,555 pages long; it is now lone gardener trying to weed an over- job, failed to make any dramatic group has moved closer to securing a
code. His views were all too typical. over 11,000 pages and growing. It is a grown field. What is needed instead is changes and merely built on the exist- deal with Desmond, but nothing has
The rules are oppressive and con- Kafkaesque nightmare which even a root and branch reinvention of how ing system. But unless we think out of been signed. RTL has been seeking a
fused; many individuals and compa- those who derive all of their income the state is financed. The government the box, I fear that the Office for Tax solution to Five’s monetary problems for
nies are inadvertently in breach of from helping others comply with needs to start from scratch and work Simplification’s best efforts are over a year after the channel had been
them in one way or another, thus HMRC’s demands loathe and want to out what the best tax system is to unlikely to achieve the revolution hit hard by the fall off in advertising rev-
holding themselves open to punitive reform. raise the revenue that it requires Britain so desperately requires. enue. It is understood that Desmond has
fines or worse. The system keeps It is vital, therefore, that the new every year. Some forms of income are allister.heath@cityam.com offered to pay around £100m for Five.

7th Floor, Centurion House,


24 Monument Street,
London, EC3R 8AJ
Swiss data
will go to US
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 Ben Griffiths
Night Editor Katie Hope
BANKING handing over of bank details of 4,450

Associate Editor David Crow


Lifestyle Editor Zoe Strimpel BY HARRY BANKS UBS clients suspected of tax evasion The strike ballot issued by the RMT closes on 11 August Picture: REUTERS
Art Director Darren Soulsby to the US authorities.

Tube staff vote on strike


Pictures Alex Ridley A SWISS court for the first time Berne agreed in August 2009 to
cleared the way for the transfer to hand over the UBS client data to
Commercial Washington of bank data about a UBS Washington to end a damaging tax
Sales Director Jeremy Slattery client, following the Swiss parlia- investigation against Switzerland’s
Commercial Director Harry Owen ment’s approval of a key tax deal. biggest bank.
Head of Distribution Nick Owen The Swiss federal administrative A ruling in January by the Swiss
court said yesterday it had rejected administrative court blocked the data TRANSPORT the safety rule book when it comes to

Distribution helpline objections by a UBS client to data transfer, forcing the government to staffing levels,” said RMT general sec-
If you have any comments about the distribution BY EMMA SADOWSKI
of City A.M. Please ring 0207 015 1230, or email transfer, saying the parliamentary draft a legal fix. retary Bob Crow.
distribution@cityam.com vote had removed any remaining The Swiss administrative court is LONDON UNDERGROUND (LU) staff But LU argued that the use of the
legal obstacles. reviewing around 100 more cases will start voting today on whether to Oyster technology meant that only
Editorial Statement A spokesman for the court said: linked to the UBS US tax evasion case. launch a strike which would hit mil- one in 20 journeys involve interaction
This newspaper adheres to the system of “The Swiss federal administrative lions of commuters. at a ticket office window.
self-regulation overseen by the Press Complaints court has decided that administrative UBS chief executive The dispute between trade union Howard Collins, chief operating
Commission. The PCC takes complaints about the assistance [to the United States] can RMT and LU is over job security for officer at LU, said: “We are commit-
editorial content of publications under the Editor’s Oswald Grübel has
Code of Practice, a copy of which can be found at be given with regards to this specific ticketing workers who currently face ted to delivering these changes with
www.pcc.org.uk case. Swiss tax officials can now been under pressure to up to 800 job cuts and the closure of no compulsory redundancies. The
Printed by Newsfax International,
transfer the data to US authorities.” prevent client’s data 240 ticket offices, according to the safe operations of our network
Beam Reach 5 Business Park, Swiss parliament last month voted being sent to the US union. remains at the top of our priorities.”
Marsh Way, Rainham, Essex, RM13 8RS in favour of a treaty allowing the “LU appear to be willing to rip up The ballots closes on 11 August.

WHAT THE OTHER PAPERS SAY THIS MORNING


HOARE GOVETT WINS LANDMARK
BLUE-CHIP CLIENT
Hoare Govett, the corporate broking
FUND BEARS LEAD THE PACK IN arm of Royal Bank of Scotland, has GOLDMAN TRADER TO FIGHT ABACUS BT TO RAISE COST OF MAKING A CALL GERMANY PROBES BANK'S IRAN
VOLATILE MARKETS won a blue-chip corporate broking FRAUD CHARGES Millions of families face a sharp rise in DEALINGS
Bearish hedge fund managers are mandate for the first time since it The Goldman Sachs trader charged in their phone bills due to a 10 per cent The German government is investi-
making their biggest gains since the was bought by RBS from ABN Amro the $1 billion Abacus fraud case is price increase by BT. The minimum gating the activities of an Iranian-
collapse of Lehman Brothers. Only a three years ago. According to people expected to fight the charges when cost of making a call will now be 17.3 owned bank in Hamburg for its
handful of hedge fund managers close to the process, Hoare Govett has he files his response to the Securities pence due to changes to connection alleged work in support of Tehran’s
have made money in May and June, won a co-broker mandate at Cable & and Exchange Commission’s (SEC) charges and call rates. The telecom controversial nuclear program, offi-
when many of the industry’s biggest Wireless Worldwide, the new non-UK claims later today. Sources with giant said the rise in charges was cials said. A spokesman for the
names were caught out by a sharp business spun out from Cable & knowledge of Mr Tourre’s case said needed to prop up its finances to sur- German Finance Ministry said
rise in market volatility. Wireless Communications. that he was likely to file a detailed vive the effects of the recession. Germany’s central bank, the
defence to the allegations. Bundesbank, and Germany’s banking
INDIAN TAKEOVER OVERHAUL COULD DEMAND FOR TECH STAFF RISES AT GOOGLE BUYS METAWEB TO 'IMPROVE' oversight agency, BaFin, are investi-
DRIVE UP M&A COSTS STHREE HUNGARY THE LATEST FOCUS OF SEARCH gating the activities of the European-
Buying controlling stakes in compa- SThree, the white-collar recruiter, FINANCE FEARS Google has acquired Metaweb, an Iranian Trade Bank AG.
nies in India will become more said demand for technology staff had The Hungarian currency was on the internet information database compa-
expensive and tougher under radical increased for the first time since slide and government borrowing ny, in a bid to “improve its search” CHINA PASSES US AS TOP ENERGY
changes regulators are proposing for 2008. With employment figures in costs on the rise today as the offering. The search giant announced USER
the country’s merger and acquisition the US and UK showing the jobs mar- Budapest administration became the its acquisition late on Friday evening China has passed the US to become
rules. India’s takeover panel on ket has stabilised, the recruiter said IT latest focus of fears for the finances of via its company blog. Jack Menzel, the world’s biggest energy consumer,
Monday said investors who wanted to staff hiring rose 4.1 per cent in the European countries. In a separate director of product management at according to new data from the
buy more than 25 per cent of a com- quarter to end May. But Russell development Moody’s downgraded Google, wrote: “We’ve acquired International Energy Agency. The
pany would have to make a mandato- Clements, chief executive, described the debts of the Irish government, Metaweb, a company that maintains milestone reflects China’s burst of
ry bid for all remaining shares in the the recovery as “patchy”, with a fall in another of the European countries in an open database of things in the economic growth and its future
target. underlying profits. the debt crisis spotlight. world.” needs as an industrial powerhouse.
CITYA.M. 20 JULY 2010 News 3

Ocado shifts 80pc of shares


as IPO hangs in the balance
ation. Most commentators believe it now shelved the fundraising until at

RETAIL
BY STEVE DINNEEN will come in at below the mid point. least next year. New Look and Merlin
Orders for Ocado shares close have also pulled IPOs this year. Ocado,
OCADO’S future was finely poised today, with the pricing announced led by chief executive Tim Steiner,
last night, with sources close to the tomorrow. They are being offered at has come under fire from a string of
firm’s planned £1bn flotation saying a range of between 200p to 275p. analysts who have baulked at the ask-
it has only shifted 80 per cent of the The take-up will particularly worry ing price.
shares on offer. Ocado’s founders in light of the The online grocer says it wants to
The firm maintained it is pleased pulled Fairfield IPO, which was raise £200m to fund its expansion
with the progress and is confident it scrapped after failing to drum up plans. Existing shareholders, includ-
will sell the remainder of the shares enough interest in a cautious market. ing the John Lewis Pension Fund, will
but would not comment on the valu- It had planned to raise £500m but has also sell shares worth around £200m. Ocado boss Tim Steiner (inset) will see the firm announce the price of its shares today

Revenues at
IBM and Texas
fail to impress

TECHNOLOGY with expectations.


BY HARRY BANKS The maker of chips for everything
from mobile phones to manufactur-
IBM’S second quarter revenue missed ing gear said its profit rose to $769m
expectations yesterday despite a compared with $260m in the same
growth in its higher-margin services quarter last year.
and software units, which bolstered Also, revenue rose to $3.5bn from
profits. $2.46bn compared to the same quar-
The US technology giant reported a ter last year. The firm forecast current
two per cent rise in second quarter quarter earnings per share of 64 cents
revenue to $23.7bn (£15.6bn). to 74 cents on revenue of $3.55bn to
IBM’s shares fell three per cent $3.85bn. Analysts on average were
after-hours to $125.60 after closing at expecting earnings of 64 cents per
$129.79 as analysts on average had share on revenue of $3.6bn.
expected $24.2bn. TI’s best sellers were analog chips,
Net profit, however, slightly exceed- which are used in phones and other
ed expectations and rose to $3.4bn electronics to regulate power and con-
from $3.1bn a year earlier. vert sound into electric pulses.
The New York-based company also
raised its full-year outlook for earn- ANALYSIS l IBM
ings per share of “at least $11.25” $ 129.79
134 19 Jul
from a previous forecast of “at least
$11.20”. 132
IBM has been shifting away from 130
commoditised hardware products in 128
the past decade, focusing instead on 126
software and services. It is now the
124
world’s biggest IT services provider.
Meanwhile, chip maker Texas 122
Instruments (TI) yesterday posted an
19 Apr 7 May 27 May 17 Jun 8 Jul
increase in quarterly earnings in line

Property tycoons the Reuben


brothers raise stake in Arena
Northern Racing business they

SPORT
acquired for £90m in 2007.
BILLIONAIRE property investors David Northern Racing owns 10 British
and Simon Reuben have raised their courses, including Chepstow and
stake in Arena Leisure to a level just Uttoxeter.
shy of the 30 per cent that would trig- However, a spokesman for the
ger a takeover bid for the British Reubens dismissed such a scenario,
horsetrack operator. saying the brothers were long term
The operator of seven UK courses, investors in Arena Leisure and had
including Doncaster, Royal Windsor picked-up the additional stock after
and Wolverhampton, said in a regula- being offered it by Bank of Scotland.
tory filing yesterday that the “I don’t think it’s true,” the
Reubens’ vehicle, Reuben Brothers spokesman said when asked if the
Limited, had upped its holding to Reubens planned a bid.
107.6m shares or 29.55 per cent. “We’ve been buying their shares
The move by the Reubens could from time to time. There was an
reignite speculation they want to opportunity to increase our stake,
combine Arena Leisure with the that’s what we did,” he added.
4 Politics CITYA.M. 20 JULY 2010

The new Office for Tax Simplification CABLE BASHES BANKS

won’t turn the UK into a low-tax state


David Crow assesses under Britain’s 11,000 page tax code.
Compared to the OBR, the OTS will
the independence of tax director
John Whiting – a much-respected fig-
the tax body’s chances be a relatively toothless creature. It
will identify areas of undue complex-
ure in the City – is not in doubt,
although the same can’t be same for
ity in the tax system, and offer advice Michael Jack, a former Tory MP.
ANOTHER week, another independ- on how to make them simpler. And it Aides to the chancellor say the OTS
ent body that could prove a headache will work with HMRC when new proves he is serious about putting an
for the chancellor. Hot on the heels of taxes are being drawn up, to ensure “Open For Business” sign above the
the creation of the Office for Budget that the needs of businesses are taken UK, after he pledged to cut corpora-
Responsibility (OBR), which has had a into account. tion tax by 1p for the next five years.
less than illustrious start, George Of course, advice is just that: But in truth, this is about tidying up
Osborne will today launch an Office Osborne will be able to ignore it if he around the edges. Deficit-laden
for Tax Simplification. It has been wishes, although that could prove Britain is not going to become a low
charged with lighting a bonfire politically embarrassing. At any rate, tax economy any time soon.

BANKS are ripping off their customers by not being upfront about the charges they levy on
personal overdrafts, business secretary Vince Cable said in a TV documentary aired last
night. Cable criticised “hidden” charges levied by lenders in the BBC Panorama programme
which allegedly found interest charged on unauthorised overdrafts was as much as 167 per
cent. Picture: BBC

Gove defends
school plans
most of all,” Gove told the Commons

POLITICS
BY DAVID CROW on the second reading of his
Academies Bill.
MICHAEL Gove, education secretary, In a bid to honour a manifesto com-
yesterday pressed ahead with plans to mitment to allow the best schools to
allow state schools to become acade- become academies in September, the
mies next autumn, despite claims he education secretary is pushing the
was railroading the legislation legislation through parliament at
through parliament. breakneck speed, leading to accusa-
Gove said the plans, which will tions the bill isn’t receiving enough
allow schools to be free from local scrutiny.
authority control, would “inject Shadow education secretary Ed
dynamism” into a schools system Balls, said: “This bill will rip apart the
that has been in “decline” under community-based comprehensive
Labour. education system we have built in the
Schools that win academy status last 16 years and which has delivered
have more control over their budgets record rising standards over the last
and curriculum, and have the power decade.”
to expel or exclude unruly pupils. But an aide to Gove dismissed the
“It grants greater autonomy to indi- concerns as “balls”, pointing out that
vidual schools, it gives more freedom Labour was the architect of the acade-
for teachers and it injects a new level my programme. When in govern-
of dynamism into a programme that ment, Balls and others insisted that
has been proven to raise standards for academies raised standards more
all children and the disadvantaged effectively than normal state schools.

Government forced into U-turn


over cost of scrapping quangos

POLITICS Electronic Equipment Advisory Body


BY DAVID CROW (Wab) and the British Shipbuilders
Corporation are all being abolished.
THE GOVERNMENT was forced into a The annual cost of running the
U-turn yesterday, after it said it would bodies is £8.62m, but the real saving
save £8.62m by scrapping four quan- will be £603,000, as the department
gos, before later admitting that the for business will simply start carrying
real saving to the taxpayer would out most of the quangos’ functions
amount to just £603,000. itself.
The Strategic Advisory Board for Business secretary Vince Cable said:
Intellectual Property Policy (Sabip), “We are absolutely committed to
Sitpro (Simplifying International reducing the number and cost of
Trade), the Waste Electrical and quangos that we no longer need.”
CITYA.M. 20 JULY 2010 News 5

Halliburton warns offshore


ban will hit full-year profits
ond-quarter net income rose to $480m $4.4bn. Analysts expected $4.1bn.


ENERGY
BY HARRY BANKS (£315m), or 53 cents per share, com- Halliburton, based in Houston and
pared with $262m, or 29 cents per Dubai, expects a ban on deepwater
HALLIBURTON yesterday reported an share, in the year-earlier period. drilling in the US to trim 2010 earn-
83 per cent jump in second-quarter Excluding a gain from discontinued ings by 5 cents to 8 cents per share.
profit thanks to strong US onshore operations, the company earned 52 “The tragic incident that occurred
drilling, but a ban on deepwater activ- cents per share. Analysts expected in the Gulf of Mexico and the subse-
ity in the Gulf of Mexico is expected to earnings of 37 cents per share, accord- quent suspension of deepwater
hurt its full-year results. ing to Thomson Reuters, but it was not drilling, we believe, will usher in a
The world’s second-largest oilfield immediately clear whether the fore- new regulatory climate and will have a
services company, whose shares casts were comparable with the profound impact on how deepwater
gained two per cent yesterday, said sec- results. Revenue rose 15.8 per cent to drilling is performed,” it said.

The cap on the well had stopped the flow of oil into the Gulf Picture: REUTERS

Fears of fresh
oil leak hit BP
tions that BP played a part in the
BP IN CRISIS release of the Lockerbie bomber are
BY EMMA SADOWSKI expected to be discussed between
Prime Minister David Cameron and US
NEWS THAT oil is seeping from the President Barack Obama when they
floor of the Gulf of Mexico sent BP’s meet today at the White House.
shares down yesterday as concerns over Meanwhile, anger among lawmak-
the group’s future continued to grow. ers in the US escalated when BP rig
Engineers on the ground believe the manager Donald Vidrine refused to tes-
explosion of the Deepwater Horizon tify on the explosion for a second time
rig in 20 April, that killed 11 and led to citing health issues.
the worst oil spill in US history, could BP’s shares closed 4.53 per cent
have caused further damage to the down to 388.70p in London yesterday.
wellbore, allowing oil to leak into the
seabed. However, BP said it remained ANALYSIS l BP
unclear whether it was coming from p
the damaged well itself, or elsewhere 700
650
on the seabed.
The response to the spill has already 600 388.70
550 19 Jul
cost the oil major almost $4bn
500
(£2.62bn), with the new leak a major
450
setback to the group.
400
Admiral Thad Allen, the US official 350
overseeing the oil clean-up, demanded 300
BP act quickly. 250
The Gulf oil spill, alongside allega- 12 Apr 30 Apr 21 May 11 Jun 1 Jul

CITY VIEWS: DOES BP STILL HAVE


A FUTURE? Interviews by Emma Sadowski

ALEXANDRE ANDLAUER | ALPHAVALUE

“ The oil leak in the Gulf of Mexico changes BP’s picture for three
reasons: Development in deep water could be more difficult, costs are still
difficult to estimate but will be significant and BP’s reputation has been


hit and will lead to a discount versus peers.

HENRY DIXON | MATTERLEY ASSET MANAGEMENT

“ It is impossible to see BP operating solely in the US once the


leak is stopped. BP could look to do a joint venture with another company
or sell off its American business. If the worst came to the worst, BP US


might be forced into receivership. But it is likely to have a strong first-half
of the year.

DAVID BUIK | BGC PARTNERS

“ BP needs to establish how the Obama administration is going to


treat the oil titan – fairly or with an over-zealous degree of vituperative
revenge. Inability to establish the ground rules will make this saga drag


on in perpetuity. BP is a robust company with assets probably totalling
$200bn and will recover within four years, if given a chance.
6 Economic News CITYA.M. 20 JULY 2010

NAHB adds to
Moody’s cuts fears of US
Irish debt as housing slump

crisis deepens


US ECONOMY
FEARS of a double-dip in the US hous-
ing market grew yesterday after a key
housing index slumped to a 15-
month low and expectations of
future sales were extremely weak
The NAHB index, which measures
EUROPEAN ECONOMY rather than negative. sentiment on home building,

BY JESSICA MEAD “However, with catch-up sovereign slumped in July to 14 from a down-
rating downgrade action expected to wardly-revised 16 in June, indicating
WEAKENED growth prospects and continue, particularly due to high lev- that demand for new homes has
the Irish government’s significant els of indebtedness relative to existing weakened further. The future sales
loss of financial strength drove rat- high credit ratings, there is still a risk index declined from 27 to 11 and the
ings agency Moody’s to downgrade that some unexpected downgrades prospective buyers index dropped
Ireland to Aa2 from Aa1 yesterday. could arrive, particularly to core from 16 to 10.
It said the reason for the down- European sovereigns,” said Gerard “It is becoming increasing clear
grade was: “The government’s grad- Fitzpatrick, global fixed income port- that without the government’s artifi-
ual but significant loss of financial folio manager at Russell Investments. cial support, the US housing market
strength, as reflected by the substan- Concerns about the European sov- is struggling to stand on its own two
tial increase in the debt-to-GDP ratio ereign debt situation intensified over feet,” said Paul Dales, US economist
and weakening debt affordability.” the weekend after the EU and the at Capital Economics.
The agency said another crucial International Monetary Fund (IMF) Some fall in activity was expected
factor was: “Ireland’s weakened withdrew a €20bn (£16.9bn) financing as a result of the expiry in the home-
growth prospects as a result of the deal for Hungary. The EU said buyer tax credit in April. However, US
severe downturn in the financial serv- Hungary’s corrective measures fell home builders have been citing other
ices and real estate sectors and an short of the required adjustment. But factors such as high unemployment,
ongoing contraction in private sector Hungary yesterday hit back, ruling tight credit conditions and the
credit.” However, Moody’s now sees out further austerity measures this recent slowdown in economic activi-
the country’s new rating as stable year. There is little demand for new homes in Detroit ty, Dales added.

Fall in domestic
demand to hit
American firms to IMF wants $1 trillion in
total lending capabilities
China’s imports expand recruitment

WORLD ECONOMY
“Just because the financing role
THE International Monetary Fund decreases, doesn’t mean we don’t

CHINA US ECONOMY
ond quarter but at a slower pace than (IMF) wants to beef up its lending need to have huge firepower ... a
ASIAN powerhouse China is expected PLANS by American firms to add to earlier in the year. The net percentage capabilities to $1 trillion (£657bn) to $1,000bn fund is a correct forecast.”
to grow its exports by 16.3 per cent in their payrolls over the next six of firms reporting stronger condi- prevent future financial crises. South Korea, which is this year’s
the second half of this year compared months have risen to the highest tions fell to 42 per cent in July from a The IMF wants to agree financing president of the G20, is helping to
to the same period a year earlier, the level since January 2008 but service four-year high of 51 per cent in April. deals in advance that will be special- design the plan, which would see
China Securities Journal said yester- sector firms are still predicting fur- Expectations for economic growth ly tailored to individual countries, member countries back the addition-
day, citing a report by the country’s ther layoffs. in 2010 remained positive, although rather than respond to crises with al commitments ahead of a summit
State Information Centre. The National Association for there was a slight decline on the pre- conditional loan packages, the to be held in Seoul in November.
Full-year growth of exports is esti- Business Economics (NABE) yesterday vious quarter. Two-thirds of respon- Financial Times reported yesterday. Dominique Strauss-Kahn has been
mated at around 24.5 per cent. said that 39 per cent of firms report- dents believe that the economy will “Even when not in a time of crisis, working hard since the global crisis
Imports are estimated to rise about ed increased hiring intentions com- expand by more than two per cent in a big fund, likely to intervene mas- started to enhance the IMF’s role in
19.3 per cent in the second half. pared to 18 per cent a year ago. 2010. Thirty-five per cent of firms said sively, is something that can help pre- countering financial crises. At the
However, import growth will be hit by The quarterly industry survey con- that European credit and debt prob- vent crises,” Dominique G20 summit in London last year, the
declining domestic demand, the ducted by the NABE confirmed that lems will have a negative impact on Strauss-Kahn, the IMF managing IMF’s fund trebled to $750bn from
report said. the US recovery continued in the sec- their business. director, told the FT. $250bn.
CITYA.M. 20 JULY 2010 Focus on Tomkins 7

£4.2bn
2009 sales
From humble belt buckle maker to huge
£38.4m
2009 profits
buns-to-guns empire, then back to earth
£1.6bn
Pre-approach The firm pursued by bidders today is a truncated thet of the “buns-to-guns” company
and growing into a global conglomer-
market value version of its former self, writes Oliver Shah ate with revenues of more than £5bn.
The expansionary phase jolted to a
41 per cent halt when Hutchings resigned amid
accusations of taking excessive perks
Offer premium TOMKINS has shed several skins to in 1956. Controversial City tycoon in 2000. RHM was soon sold off for
reach its current incarnation as a Greg Hutchings bought a 23 per cent £1.1bn, less than Tomkins had hoped
15.8 times diversified industrial components
manufacturer sitting in the FTSE 250.
stake in 1983 and took control a year
later. An acquisition splurge followed.
to get. Smith & Wesson was offloaded
at a £66m loss a year later.
2010 EPS From humble beginnings as the FH
Tomkins Buckle Company, a maker of
Tomkins picked up assets as dis-
parate as pistol maker Smith &
Chief executive James Nicol joined
in 2002 and continued to streamline
Offer multiple belt fasteners, Tomkins grew and Wesson and baker Ranks Hovis the business, selling the consumer

SALE
floated on the London stockmarket McDougall (RHM), winning the epi- and industrial parts of its Gates unit.

Tomkins chief
executive James
Nicol is mulling
a takeover offer

Tomkins gets
£2.9bn offer

10
ONE WAY, FROM

But one fund manager said he


INDUSTRIAL
BY OLIVER SHAH expected an improved offer, adding:
“Very rarely in these situations is the
INVESTORS in Tomkins, the automo- first shot the last.”
tive and building products group, Another shareholder likened the
reacted coolly to a £2.9bn takeover situation to US buyout firm Apollo’s
approach from a consortium of attempt to buy Brit Insurance. He
Canadian investors yesterday. said: “It’s financial buyers, who don’t
Tomkins said it was in advanced necessarily have synergies, showing
talks with a team comprising Onex, an interest because they recognise
Canada’s largest listed private equity the business is undervalued.”
house, and the Canada Pension Plan
Investment Board, a gargantuan sav- ANALYSIS l Tomkins
ings fund, over an indicative offer p 294.20
300 19 Jul

£
valuing the company at 325p per
share. The approach sent Tomkin’s
280
shares up 27.8 per cent to 294.2p.
It is understood a recommended 260
bid could be tabled within weeks
depending on the outcome of due
240
diligence. Analysts suggested the
board and investors would be glad to 220
accept a price tag of £2.9bn given the
shares prolonged weak performance. 19 Apr 7 May 27 May 17 Jun 8 Jul

This deal is a no brainer FLIGHTS FROM LONDON (STANSTED)


INVESTORS might be giving their Although a bidding war for
Canadian suitors a chilly reception, Tomkins is improbable, there are
but this really is a no-brainer. The sure to be more bids for British engi-
325p bid offers a premium of 41 per neers coming across the Atlantic.
cent on Tomkins’ pre-approach price, Firms in this sector trade on a lower
and a rich valuation of 15.8 times multiple than their North
earnings per share in 2010. A rival is American rivals, while strong US

TRAVEL SEPTEMBER-OCTOBER
unlikely to trump this generous bid, companies are finding it much easi-
and the cautious outlook from man- er to raise debt. Low yields on US
agement suggests it will be unable to government debt and a dearth of
increase the share price in the short M&A activity are helping push up
term should it go it alone. Having demand for high quality corporate
booked an impressive first half, bonds, while weaker sterling makes
things are looking bleaker for firms in Blighty an increasingly
Tomkins; slow growth in emerging attractive target.
markets, lower European car output,
and softer US manufacturing will all
conspire to make the rest of 2010
tough for the British engineer.
BOTTOMLINE Book until midnight 22.07.10. Subject to availability. Terms and conditions apply,
see Ryanair.com for details. Fares exclude optional fees/charges.
Analysis by David Crow
8 News CITYA.M. 20 JULY 2010

FSA fines father and son duo


£180,000 for insider trading
inside information on Tower the news on 15 June last year.

FINANCIAL SERVICES
BY VICTORIA BATES Resources’ first oil well in Uganda, The regulator said that Jeremy
which looked unlikely to produce any Burley’s fine of £144,200 included
A FATHER and son duo were yester- oil, the FSA said. repayment of the £21,700 benefit he
day slapped with £179,200 of insider He then passed that knowledge on made through his actions and reflect-
dealing fines from the Financial to his father, Jeffery Burley, who man- ed a lack of co-operation during the
Services Authority (FSA), in relation to aged a share trading account in the investigation. It added that Burley
their dealing in shares of oil and gas UK on his behalf, instructing him to advised his father to sell the shares in
explorer Tower Resources. sell his entire holding of 790,000 multiple lots in order to try and dis-
Jeremy Burley used his position as Tower Resources shares. The pair guise his true intentions.
managing director of Ugandan equip- thereby avoided a significant finan- Jeffery Burley was fined £35,000 for
ment provider BMS Minerals to glean cial loss when the firm announced his part in the market abuse. Jim O’Neil has joined UKFI to oversee the sale of the government’s bank stakes

Futures ‡ Commodities ‡ Options


Stocks ‡ Forex ‡ Bonds ‡ Funds
BoA veteran

80
on over

Markets Jim O’Neil set


Worldwide for UKFI role
from One Account
share divestments and engaging with

FINANCIAL SERVICES
BY VICTORIA BATES the two banks as an active sharehold-
er, pressing the management teams
US Stocks* (all-in) UK Stocks and ETFs (all-in) UKFI, the body set up to manage the on issues such as risk, corporate gov-
USD 0.005 or less per share GBP 6.00 < 50,000 Value - UK2 taxpayer’s stakes in the banks, has ernance and executive strategy.
welcomed Bank of America Merrill Discussions over banking remuner-
(minimum GBP 6.00 per order) Lynch veteran Jim O’Neil as the latest ation will continue to be led by UKFI’s
US Stock Options * in a long line of senior executives to chief executive Robin Budenberg,
parade through its revolving door. himself a former UBS banker.
$0.15 - $0.70 per contract UK Options (all-in) O’Neil, who last year advised Lloyds UKFI has had its fair share of man-
(plus exchange fees) GBP 1.70 per contract - UK2 Banking Group on its £22.5bn recapi- agement upheaval since it was found-
talisation, will be doing the work of ed in 2008, in addition to the
(minimum GBP 1.70 per order) two of UKFI’s alumni, John Crompton departures of Crompton and Sykes
Forex and Tim Sykes, who both resigned earlier this year.
earlier this year. RBS chairman Sir Philip Hampton
Spreads as low as ½ pip
UK Futures3 He will be paid a fairly generous and Pearson’s Glen Moreno both held
(plus a transparent low commission1) public sector salary of £180,000 a year, the chairmanship for a period before
GBP 0.15 to GBP 0.65 though the figure is less than half of London & Continental Railways chair
per contract - UK the combined £400,000 that was paid Sir David Cooksey took up the role.
(minimum GBP 1.70 per order) to his predecessors. O’Neil will also be And former chief executive John
eligible for a performance-related Kingman, the Treasury mandarin,
bonus, which UKFI said would be “a left the body to join Rothschild in July
SIPP Accounts Supported small fraction rather than a multi- 2009 after scarcely half a year in
ple” of salary and subject to deferral charge.
and clawback. However, he will O’Neil has also advised on a num-
receive no bonus at all until the gov- ber of recent high-profile capital mar-
ernment’s stakes in Royal Bank of kets deals, including the €1.1bn
Scotland and Lloyds are sold – an (£934m) subsidiary IPO of Delta Lloyd
Successful traders and investors understand that event which is likely to be a year away from insurer Aviva, a $1.6bn (£1.05bn)
at the very least. share placement for National
In the meantime, O’Neil’s role will Australia bank and rights issues for
superior technology and low trading costs involve planning the structure of the Swedbank and Nordea.

hold the key to greater returns.


India’s HDFC Bank posts its best
profit growth in more than a year
Interactive Brokers and consumers took advantage of a

BANKING
The Professional’s Gateway to the World’s Markets fast-growing economy.
HDFC Bank, India’s second-biggest The bank expects strong demand
private sector lender, yesterday from mortgage borrowers and
www.interactivebrokers.co.uk reported its strongest profit growth
in more than a year, and highlighted
improving asset quality to help it
exceed the sector’s 20 per cent credit
more gains for the booming industry growth estimated in the year ending
020 7 776 7800 on robust loan demand.
HDFC Bank and its bigger rivals
March 2011. “There has been a steady
increase in the asset quality as a
State Bank of India and ICICI Bank are result of which the provisions and
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Services Authority. FSA register benefiting from improving business contingencies are lower,” said HDFC
entry number 208159 - * $1.00 minimum on all orders, no extra ticket charge. No technology surcharges. and consumer confidence in an econ- Bank’s executive director Paresh
[1] Commission is 0.1 to 0.2 basis points * trade value. USD 2.50 minimum commission on forex. [2] Stamp omy set to grow about 8.5 per cent in Sukthankar. “We do see corporate
duty on UK stock, ETFs (purchases) and option exercises (UK=0.5%) is passed through to the customer. [3] Plus the year that began in April. loan growth remaining strong.”
exchange, regulatory and carrying fees. Options and Futures are not suitable for all investors. The amount HDFC Bank matched estimates ICICI Bank, India’s second-largest
you may lose may be greater than your initial investment. Before trading options read the “Characteristics
and Risks of Standardized Options”. Before trading futures, please read the CFTC Risk Disclosure. For a copy with a 34 per cent rise in April-June lender, expects its loans to expand by
of either disclosure, call 020 7 726-9500. net profit to IR (Indian rupees) 8.12bn a fifth in the fiscal year ending March,
07IB10-281 (£0.11bn) from IR6.06bn as companies its chief executive said yesterday.
The Capitalist
10 CITYA.M. 20 JULY 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

FAIRFAX CO-FOUNDER CRAWFORD


ON THE HUNT FOR A NEW INVESTOR
IS A changing of the guard in the off- Murmurs have been rippling ulation earlier this year about a
ing down at boutique investment through the City for a while about a potential tie-up with Astaire. The
bank Fairfax? new direction for the firm, and those bank never confirmed the talks, but
I hear that Rolly Crawford, who co- at the top of its ranks confirmed yes- Astaire later ran into problems with
founded the firm back in 2006, is on terday that if a deal goes ahead, the its takeover of fellow stockbroker
the lookout for a new major investor status of chief executive Stefan Hoodless Brennan, changed its top
to take Fairfax forward in its ambi- Allesch-Taylor’s family trust – cur- management team and announced
tions. A number of interested parties rently the largest shareholder – could an abrupt U-turn in strategy – so
have already been sounded out about well end up diminished. Crawford and co. will probably have
the investment, though no deal has Incidentally, you’ll remember that thanked their lucky stars that no deal
yet been reached. Fairfax was the subject of much spec- was done.

Boss Stefan Allesch-Taylor’s


family trust is currently
Fairfax’s top shareholder

CAN’T FIGHT TIME PROUD PARTNER


Deadlines are a nasty invention, aren’t Good to see Mumsnet founder Justine
they? Roberts winning accolades for her pio-
Wandering down by the river in the neering work in giving a voice to
City recently, The Capitalist chanced mums all over the country. Roberts
upon the swanky new headquarters took the 97th spot on the Guardian’s
being built for Japanese investment annual media 100 hotlist yesterday,
bank Nomura at Watermark Place, after the site established itself as a
where the construction workers were powerful lobbying forum in the run-
beavering away despite it being the up to the last general election.
weekend. And, if their mutterings One person who’ll be particularly
about “never going to be ready in chuffed about that result, of course, is
time” and “so much work left to do” Roberts’ hubby Ian Katz – the
are anything to go by, it seems that Guardian’s deputy editor.
not all is going strictly according to
plan.
COOL CUSTOMER
Spotted grooving away in front of the
main stage at the Latitude music festi-
val at the weekend: none other than
Standard Chartered chief executive
Peter Sands. Sands and his novelist
wife Betsy Tobin were happy to get a
bit of quality time together as they
soaked up the sun and the music,
with the bank boss commenting that
he hadn’t seen much of his two kids
apart from the odd text saying they
needed a bit more cash…

Nomura has begun its move to the City

Not that it’s made any difference to


PETROL HEADS
Best of luck at the weekend to a hare-
the bank’s plans, mind you, which are brained young chap from Killik & Co,
still firmly on course. The real estate Harry Bell, who’s planning to get in a
and services staffers moved across to tin can to chug all the way from
the new building last week (where Surrey to Mongolia.
they’re presumably picking their way Bell and his chum Jonny Price will
through the debris to get to their be setting out on their 14,000 mile
completed floor); trading support is journey in a 2001 Perodua Nippa,
moving next weekend and the which I’m told is a bit like a Smart car
trading and investment bank- and the “most ridiculous vehicle” the
ing teams start their reloca- pair could find. (For petrolheads out
tion in August. there, it’s an 849 cc, 55bhp, three
Looks like those builders cyclinder “monster”, which
had better pull their demonstrates its lack of brute
socks up, and pronto. strength.)
The trip will take the pair
through Romania and
BIG SOCIETY Bulgaria, Turkey, Iran,
Quote of the day: a jibe at Uzbekistan and various other
Prime Minister David obscure ‘stans’ before reaching
Cameron’s optimistic plans Russia and Mongolia, all in
for social revolution, cour- about five weeks and in aid of
tesy of ever-irreverent the Christina Noble Children’s
Mayor of London Boris Foundation and Mercy Corps
Johnson. charities.
Speaking at the opening of “Depending on how well you know
the first of his new “cycle us, most people seem surprised that
superhighways” yesterday, Boris we have remained out of prison in
quipped: “We must tackle the the UK, so how we’re going to
scourge of obesity – or the ‘Big survive Iran and Turkmenistan
Society’, as it’s sometimes is beyond me,” writes Bell on his
known…” trip blog.
CITYA.M. 20 JULY 2010 News 11

International
Power in GDF
merger talks
deal could be worth £6.4bn. IP was

ENERGY
BY MARION DAKERS keen to stress yesterday the talks are
at a very preliminary stage.
BRITISH ENERGY firm International A prospectus will be issued in due
Power (IP) confirmed it had revived course, and any deal is still subject to
merger talks with GDF Energy yester- IP shareholder approval.
day, sending its share price soaring. The market signalled its approval International Power chair-
The companies have restarted long- yesterday as shares jumped 10.5 per man Sir Neville Simms (left)
running talks over France’s GDF buy- cent to 350.3p. and CEO Philip Cox (right)
ing up new shares in IP. Previous talks Analysts gave a cautious welcome
collapsed in January after the firms to the news.
failed to agree terms. Tina Cook from Charles Stanley
GDF, already one of the world’s said any deal could face regulatory SIMON ROBEY stalwart Simon Robey. an opera singer. He is the chairman of
largest utility companies, would hurdles, but gave an “accumulate” Robey, 49, is head of UK at Morgan the Royal Opera House and has held a
become the majority shareholder in recommendation on IP’s shares. HEAD OF UK, Stanley, most recently acting for season ticket at Arsenal for more than
an enlarged IP, which would still MORGAN STANLEY broadcast giant Sky after News 20 years.
trade on the London Stock Exchange. ANALYSIS l International Power International moved to buy the shares Robey is joined by Alastair Cochran,
It would be classed as a reverse 350 p in the broadcaster it did not already a managing director in Morgan
takeover under UK rules. own. He also worked with chocolate Stanley’s corporate broking team, and
IP’s board said in a 103-page state-
340 350.30 maker Cadbury in its £11.5bn sale to head of UK investment banking Simon
330 19 Jul
ment yesterday that the potential tie- US rival Kraft in January. He helped Smith. Other advisers for IP include
up of some operations outside of 320 AN INTERNATIONAL team has been Marks & Spencer fight off the Edmund Ryers and Mark Breuer at JP
Europe “warrants consideration 310 assembled to advise on the merger advances of the retail billionaire Sir Morgan Cazenove, and William
given the strategic rationale and talks. Big-hitters from JP Morgan Philip Green in 2004. Vereker, Adrian Mee and Jason
300
potential for synergies as a result of Cazenove, Morgan Stanley and Robey was a choral scholar at Hutchings at Nomura.
the combination”. 290 Nomura are on hand to advise Magdalen College, Oxford. He trained GDF has taken on advisers at NM
Neither company has mentioned a International Power, among them City as a bass-baritone and almost became Rothschild, Goldman Sachs and Lazard.
price, but reports have suggested a 19 Apr 10 May 28 May 18 Jun 8 Jul
School Open Evening
12 News
Business, Economics
and Informatics
Wednesday 21 July 2010, 4–7.30pm

Meet our academics and staff.


Attend taster sessions.
Meet current and former students.

For more information,


or to book your place:
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AIA and Prudential already fight tooth and nail for business in Asia Picture: REUTERS

Pressure back
on Pru as AIA
gets new boss
$35.5bn (£23.3bn) takeover of AIA,

INSURANCE
BY OLIVER SHAH industry insiders said Tucker’s reap-
pearance could pave the way for the
AMERICAN International Group reverse situation, whereby a publicly-
(AIG)’s hiring of Mark Tucker to run listed AIA would bid for PAC.
its Asian arm piles pressure on Analysts at Merrill Lynch also said a
Prudential to realise value from its Tucker-run AIA would be able to
Far Eastern operation, analysts argue. poach senior staff from Prudential’s
Mark Tucker, a former chief execu- Asian business. They wrote: “Things
tive of Prudential, will take over from appear to be moving fast and the pres-
Mark Wilson at the head of American sure on Prudential’s management
International Assurance (AIA) before and board has seldom been higher, in
its Hong Kong flotation in the our opinion.”
autumn. Tucker’s surprise appoint- Barrie Cornes at Panmure Gordon
ment will intensify competition said PAC would be worth £12.6bn
between AIA and Prudential in the based on the multiple for
region. For a decade until 2003 he Prudential’s revised AIA offer. A sale
was responsible for building or initial public offering (IPO) would
Prudential’s Asian unit, Prudential boost Prudential’s overall market cap-
Asia Corp (PAC), and was the architect italisation 51 per cent to £19.9bn.
of the British insurer’s longstanding Cornes said: “[Given Tucker’s]
ambition to buy AIA. detailed background knowledge of
After current Prudential boss Pru’s Asian operation, it is not hard to
Tidjane Thiam embarrassingly failed see how one day there may be an
to garner shareholder support for a offer for Pru’s Asian operation.”

MARK TUCKER lessly expanded in the region and took


on AIA in a head-to-head battle.
FORMER CHIEF Tucker left to join Halifax Bank of
EXECUTIVE OF Scotland as finance director in 2004,
PRUDENTIAL but was tempted back to Prudential
as chief executive a year later. He
stayed until October 2009, when he
quit, to be replaced by Tidjane Thiam.
“He is a very, very driven personali-
MARK Tucker is still revered by ty,” one City analyst says. “You get the
Prudential’s staff in Asia. A chartered impression you’d know if you were
accountant who began his professional working for him.” Tucker’s inside-out
life as a footballer for Wolverhampton knowledge of Prudential Asia Corp
Wanderers, he is a competitive charac- will be a formidable weapon as he
ter known for squeezing the best out takes over at AIA. Prudential made
of the teams he leads. much fanfare when Barry Stowe
Tucker spent 23 years at the FTSE joined its board from AIA in 2006. In
100 insurer. He joined Prudential swooping on Tucker, AIA has pulled
Portfolio Managers in 1986, moving to off the same coup in the opposite
become head of the company’s Asian direction. Prudential’s top brass will be
operation in the mid-1990s. He ruth- feeling nervous.
CITYA.M. 20 JULY 2010 Consumer News 13

UNILEVER OFFLOADS FINDUS

€805m (£687.9m)
Debenhams seals
the price Birds Eye is
to pay for Findus
€462m
the revenue of
new debt package
Findus last year to fall from about seven per cent this


RETAIL
BY JOHN DUNNE financial year to about 4.5 per cent
650 DEBENHAMS has sealed a new deal to
during the first full year of the agree-
ment.
the number of staff to be refinance its debts, signing a new Finance director Chris Woodhouse
transferred to Birds Eye Iglo £650m agreement that will cut its said: “The new facility puts
interest bill. Debenhams on a strong footing for
170 The deal includes a £250m loan
and a £400m revolving credit facility
the future, extending the group's
debt maturity horizon beyond three
Unilever is selling its the number of countries expiring in October 2013, with an years Debenhams continues to be a
Italian-based Findus unit where Unilever operates option to extend to October 2014. highly cash generative and profitable
It expects interest costs net of fees business.”

Birds Eye will


pay €805m
to buy Findus
that it will prosper under the dedi-

CONSUMER
BY JOHN DUNNE cated resource and focused manage-
ment that the new owners will
UNILEVER has agreed to sell its bring.”
Italian frozen foods unit Findus to Unilever is the second biggest con-
Birds Eye Iglo, which is owned by pri- sumer goods company in the world
vate equity group Permira, for €805m behind American powerhouse
(£687.9m). Procter & Gamble.
The sale represents the disposal of The deal will require the green
Unilever’s last remaining frozen light from European regulators
foods business in Europe. before it can go ahead.
Unilever said in a statement that The sale included Findus’s factory
about 650 factory and head office in Cisterna, Italy, and brands 4 Salti
staff at Findus, which made sales of in Padella, Sofficini, Capitan Findus
€462m in 2009, would transfer to the and That’s Amore.
new owner.
Permira had been neck and neck ANALYSIS l Unilever
with Lion Capital in the race to buy 2,000 p
1892.00
19 Jul
Findus, ahead of BC Partners, accord-
1,950
ing to analysts.
Unilever, which makes Dove body 1,900
wash and Liptons tea, is selling
Findus as part of its blueprint to dou- 1,850
ble sales. 1,800
James Hill, chairman of Unilever
Italy, said: “Findus is the lynchpin of 1,750
an attractive and profitable frozen
foods business and I am confident 19 Apr 10 May 28 May 18 Jun 8 Jul

Co-op launches MBL to hike its


apprentice plan dividend 25pc

RETAIL CONSUMER
THE Co-operative Group yesterday MBL Group, the Aim-listed home
launched a £21m apprenticeship entertainment products group, has
scheme. raised its dividend by a quarter after
Under the plans 2,000 new appren- reporting a revenue surge.
ticeships for people aged under 25 Revenue jumped by 35.7 per cent to
will be set up. £194.9m for the year to 31 March.
The apprentices will be given work Earnings per share rose by 17.5 per
experience at one of the group’s com- cent to 40.3p per share.
panies – which include banks and The company is proposing a 25 per
supermarkets – as well as the oppor- cent rise in final dividend to 7.5p per
tunity to gain a nationally-recognised share.
qualification. MBL is debt free and had cash bal-
The Co-op will also invest money in ances of £5.8m at the end of March
a range of organisations that help 2010, up from £2.6m in 2009.
young people. These include Truth Peter Cowgill, non-executive chair-
About Youth, a national programme man, said: “The group has experi-
that aims to challenge negative per- enced an encouraging year during a
ceptions about young people, which period of significant change. We have
will receive £2m. a solid platform.”
14 News CITYA.M. 20 JULY 2010

Philips offsets good results


with warning sales will slow
as much as 4.3 per cent before closing Brazil, China, Russia and India,

ELECTRONICS
BY STEVE DINNEEN 3.6 per cent down at €24 (£20). mainly in its lighting and consumer
Europe’s biggest consumer elec- lifestyle units. The maker of MP3
DUTCH electronics group Philips fore- tronics maker said it expected sales to players, MRI scanners, toasters and
cast sales growth would slow in the slow in the second half to mid-single- shavers posted second-quarter under-
second half of this year given sluggish digit levels from a 12 per cent compa- lying earnings of €527m versus ana-
US and European economies and as rable growth in the first half amid lysts’ average forecast of €486m. Sales
television sales drop off after the “continued but slow” recovery in the of €6.2bn and net profit at €262m also
World Cup. US and Europe. came in above forecast. Philips has
The outlook offset higher-than- Emerging markets -- whose share aggressively cut costs even as a nas-
expected quarterly results and brisk of global sales has risen to 34 per cent economic recovery took hold,
trade in markets like China and cent from 29 per cent last year -- were helping it to squeeze out earnings in
Brazil, helping push its shares down driving double-digit growth in a difficult environment.

The firm founded by Larry Page and Sergey Brin is on the verge of conquering China

Google set to
Looking for the win in China
right mortgage? ▲

TECHNOLOGY designs on controlling the fastest


growing and most influential sphere
BY STEVE DINNEEN
of consumer technology.
Voted APPLE may be taking the headlines in And China is vital to achieve that

Here’s a Best Direct


Mortgage
Europe with the launch of its iPhone
4, which despite well publicised
antenna issues, continues to sell at a
blistering pace.
But the California-based firm is los-
aim. By 2014 the estimated number of
Chinese mobile internet users is
expected to hit 957m, according to
Tech Crunch. The total population of
the US and EU is roughly 800m.

great move... Lender* ing the biggest battle in mobile tech-


nology to arch-rival Google – which is
to conquer China.
Google’s Android software is
A flood of cheap handsets using
Android from manufacturers includ-
ing Motorola have boosted the firm’s
exposure, while Apple is struggling to
muscling its way to the top of the pile shift its handsets at prices of around
at the expense of competitors includ- $1,285 (£844). Google’s rivals need to
ing Microsoft’s Windows Mobile or step up their game quickly if they are
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THE NEW iPHONE PUT YOU OFF?
Interviews by Marion Dakers and Eliza Brown

YOUR HOME MAY BE REPOSSESSED DUNCAN GOULD | LLOYD’S REGISTER


IF YOU DO NOT KEEP UP
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don’t have an iPhone myself, but my wife has one and I find it’s a very
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CITYA.M. 20 JULY 2010 News 15

NS&I axes saving certificates Hasbro falls short of last


it exceeding the upper end of its net interest rates paid on its direct saver
summer’s strong sales

PERSONAL FINANCE
financing target set by the govern- and income bonds by 0.25 per cent.
BY VICTORIA BATES ment. The body aims to broadly bal- The news came as NS&I announced
NATIONAL Savings and Investments ance funds coming into NS&I with it had delivered £1.6bn of net financ- including advertising.


RETAIL
(NS&I) delivered a blow to consumers’ those going out, within a range of ing for the 2009-10 financial year. Net income rose to $43.6m
purses yesterday as it axed its two £2bn either side of zero. NS&I’s prod- “NS&I is extremely mindful of its TOY maker Hasbro said yesterday it (£28.6m), or 29 cents per share, in the
inflation-beating savings products, ucts are backed by the Treasury, responsibilities given its unique place had suffered a sharper-than-expected quarter ending 27 June. Revenues for
citing particularly strong levels of meaning savers’ money is guaranteed. at the heart of the UK savings sector,” quarterly sales decline, after failing to girls’ toys remained flat, but boys’
demand. Website, telephone and over-the- said chief executive Jane Platt. “We repeat the success of last year’s tie-ins toys fell 34 per cent.
NS&I said demand for the fixed counter sales of the certificates were continue to follow a policy of acting to Hollywood blockbusters like GI Joe. “We continue to expect revenues to
interest and index-linked savings cer- abruptly suspended yesterday morn- transparently and balancing the But the firm, which owns brands be more heavily weighted to the sec-
tificates had far outstripped its expec- ing, while postal applications were interests of our savers, the taxpayer from Monopoly to Playskool, beat ond half of the year as our major ini-
tations and that its decision to pull stopped at midnight last night. and the stability of the wider finan- analysts’ earnings expectations for tiatives are beginning to launch,” said
the products was designed to prevent NS&I also said it had reduced the cial services market.” the second quarter by cutting costs, chief executive Brian Goldner.

City office rents


Eurotunnel in
EUROTUNNEL’S BLACK HOLE

left behind as
West End soars
red in spite of


PROPERTY

surge in sales OFFICE rents in the West End have


increased for the first time in three
years, far outgunning steady rises in
City charges, research out yesterday
claimed.
West End rents rose 13 per cent to
£85 per square foot in the last three
Eurotunnel is no stranger to legal months, in what property advisers

TRANSPORT
challenges, with disputes dogging the Jones Lang LaSalle (JLL) described as a
BY STEVE DINNEEN firm since its ambitious construction “real sea change”.
CROSS channel rail operator Groupe started in 1988. Gounon negotiated a A tunnel fire in 2008 has cost the firm dearly “It is a positive development for
Eurotunnel says it will not post a prof- massive debt restructuring that won landlords and investors. Looking for-
it this year unless it receives further final court approval in January 2007. ward we expect modest growth over
insurance payouts for a tunnel blaze Goldman Sachs is currently the the remainder of the year,” said head
in 2008. biggest shareholder with a stake of 17 of West End agency and development
The embattled firm made a first-
half loss of €45m (£38m) despite sales
rising 22 per cent to €331m. It booked
per cent.

ANALYSIS l Groupe Eurotunnel


€45m
First-half loss €2.8bn Jonathan Evans.
City office rents have continued to
make a slow recovery, rising five per
€33m in insurance indemnities last € cent in the three months to July to an
year but said it only received half of
that. It is awaiting the payment of
8

7.5
5.76
19 Jul Market Cap average of £50 per square foot.
However, a lack of new space under
the remaining €16m, as well as construction, down nine per cent in

€331m
7
another €59m relating to the same the quarter to 2.6m square feet, could
accident, which was blocked follow-
ing a legal challenge by train opera-
6.5
€33m soon force rents upwards.
“From 2011 until 2013 we are
tor Eurostar.
6
First-half sales Insurance expecting double digit rental growth
Chief executive Jacques Gounon 5.5
indemnities last in the City, driven by supply shortages
said: “It is not the traffic that is push- of prime stock,” said head of markets
ing us into the red, it is the insurance.” 19 Apr 7 May 27 May 17 Jun 8 Jul year group Neil Prime.

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

Jefferies America Securities and has also been a Mirae Asset


Matrix Group The investment bank has hired Richard senior research analyst covering the The Asian asset management group
The financial services group has promoted Taylor as head of international equity telecoms sector at Bear Stearns. has appointed Kenho Kim as managing
Malcolm Le May, the chief executive of its research in London and Robert Fagin as director of its European business, Mirae
investment banking business, to the group co-director of US equity research in Investec Asset Global Investments UK.
board. Le May took up his current role in New York. Crispin Gandy is to join Investec’s prop- Kim joined the group in 2007 as a
December last year, steering the investment Taylor has over 25 years of industry erty investment arm, where he will be member of the international business
bank through a rapid period of expansion work- experience, including 13 years at responsible for property acquisitions in division, which he has headed up since
ing with small and mid cap companies. Citigroup, where he was most recently the UK and Ireland. 2008. Prior to that, he was a portfolio
He previously worked at private equity real a managing director and head of Gandy joins from Exemplar manager at Korea’s National Pension
estate investor JER Partners, where he was European equity research. Properties, where he was a partner and Service, where he spearheaded the
president of their European operations. Fagin was most recently associate head of investment. He has also worked establishment of the fund’s overseas
director of equity research at Banc of at CIT Group and Schroders. investment capabilities.

To appear in CITYMOVES please email your career +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT morganmckinley.com
16 News CITYA.M. 20 JULY 2010

Fast-growing SMEs are vital for UK’s future


states to downsize. Is this a good thing? who missed Dragon’s Den last week, potential deal with Tesco, it’s not a who can help her on her journey.
Martin Varsawsky, founder of FON, she secured funding for her new lifestyle business. As they create more Building businesses creates social
one of Europe’s largest Wifi communi- frozen dessert. Working 2.5 jobs, rais- profit, these fast-growing SMEs create welfare. As the wave of those vital six
ties, and a serial entrepreneur, is ing a little boy alone, and yet having more taxable income which will fill per cent of fast-growing SMEs succeed,
proud of the fact that Europe has “the time to launch her own business, com- the Treasury’s coffers. As fast-growing we may surprise ourselves with how
world’s richest poor people”. ing close to landing Tesco as a major SME’s create more jobs, they reduce we exceed our revenue forecasts as a
I am also interested in social justice, client represents the Best of Britain in unemployment, and more people nation. Think Kirsty is unique? She’s
but I am always amazed at what the my opinion. become addicted to the taste of profes- not. That’s what so fantastic about
DRAGON’S VIEW human spirit can achieve when you Nesta, the UK’s Innovation Agency, sional success in a business which is where we are today. She is exceptional,
remove the soft bigotry of low expecta- released some research recently on taking off. Kirsty really is a model for but not unique. There are tens of thou-
JULIE MEYER tions. Instead of assuming that we
need a massive social welfare net, why
“the vital six per cent”. An estimated
54 per cent of all new jobs are created
the new Britain which is becoming an
“entrepreneur country”. She doesn’t
sands of Kirsty Henshaws, and their
success will do more to keep the Great

T
O a fascinating lunch on Friday not engineer a society where most peo- by the vital six per cent of fast-growing see barriers, but is thinking globally in Great Britain than rigidly holding
at Lombard Odier with Paul ple exceed expectations of what they SMEs. Kirsty’s business, without any big marketing speak – on to a welfare state of the past.
Marson, its chief investment offi- can or should achieve. Worthenshaw’s, has the profile of just getting on with it, nailing the Julie Meyer is chief executive of Ariadne
cer. He believes that sovereign Kirsty Henshaw could have ended becoming part of that six per cent that right partnerships, creating a great Capital and a dragon on the BBC’s Online
debt levels will force European welfare up a different way. For those of you will help to drive the recovery. With a product, and selecting people carefully Dragon’s Den.

NEWS | IN BRIEF
GCP sees sucessful IPO on new fund Edenred posts 3.8pc revenue rise
GCP Infrastructure Investments raised Edenred, the vouchers firm recently split
£40m through its initial public offering (IPO) from Accor, yesterday posted a 3.8 per cent
yesterday. Parent company Gravis Capital rise in revenue on strong sales in Latin
Partners said it plans to float the fund on the America, and said high unemployment would
London Stock Exchange on Thursday, the continue to weigh on its European business.
first infrastructure fund to be listed in the Chief executive Jacques Stern said yesterday
UK. The fund will invest in the debt of private that the second half of the year would show
finance initiative projects, such as schools “a similar trend” in Europe and Latin
and hospitals. America to the first half.

ROLAND RUDD IS READY. (Left to right) Boeing’s Jim Albaugh, Bombardier’s


Steven Ridolfi and Akbar Al-Baker of Qatar Airways
Pictures: GETTY, REUTERS, Micha Theiner/City A.M.

ARE YOU?

(Left to right) Business secretary Vince Cable delivers a


speech at the show and Airbus displays the A400M air-
craft.
Pictures: GETTY, Micha Theiner/City A.M.
Roland Rudd, Founder of Finsbury, is ready
to judge entries to the inaugural CITY A.M.

Farnborough show
Awards – the new financial business awards
from the UK’s leading, free, business daily.
The Awards are free to enter and entry is
online at www.CityAMAwards.com.
There are 15 company awards recognising
corporate excellence and 6 awards that
celebrate the individual or team stars of
the financial community.
The deadline for entries is 22 July 2010
Book now for the City A.M. Awards reception,
dinner, ceremony and entertainment on
sees bumper start
Thursday 28 October 2010 at Albaugh. Qatar Airways for two business jets
AVIATION

Grange St Paul's Hotel, London EC4. Boeing also sold 40 737-800 air- worth $90m.
BY EMMA SADOWSKI
To be a sponsor of the first City A.M. Awards craft to GE Capital Aviation for “Global business aircraft are
please contact Harry Owen: 020 7015 1241 ALMOST $20bn (£13.1bn) in deals $3bn. renowned for their exceptional per-
were signed yesterday at the Rival Airbus, which also signed a formance and reliability in
harry.owen@cityam.com Farnborough Air Show, marking a deal with Emirates last month to demanding climate and weather
successful first day for the annual sell the airline 32 A380 planes for conditions,” said Akbar Al Baker,
headline sponsor in association with
aviation gathering. $11.5bn, also had a successful first chief executive of Qatar Airways.
Boeing, which kick-started the day. The EADS owned manufactur- Other highlights from yester-
show with the arrival of its 787 er sold 20 A321 and 31 A320 planes day’s events included a keynote
Dreamliner jet on Sunday, signed a to financing and leasing company speech by business secretary Vince
bumper round of deals after Air Lease Corporation for $4.4bn. Cable who warned that defence
Emirates airline agreed to buy up Airbus shed 11 A330-300 planes procurement will be affected by
to 30 new 777-300ER planes worth after signing a $1.7bn deal with cuts in government spending.
$9.1bn. Russian flag carrier Aeroflot. He said: “I want to back aero-
official venue partner Awards reception sponsor category sponsors “Today’s order underscores the The group also displayed its space research and defence to the
airline’s [Emirates] confidence in A400M military plane at the show, hilt and I will keep doing that. We
the airplane which forms the back- which had its maiden flight earlier need to shift the balance of the UK
bone of its fleet. For that we are this month. economy to manufacturing and
very grateful,” said Boeing chief Meanwhile, Canadian-based exporting and aerospace is at the
executive and president Jim Bombardier secured a deal with forefront of that.”
CITYA.M. 20 JULY 2010 News 17

Nokia Siemens buys L’OREAL HEIRESS FACES POLICE PROBE NEWS | IN BRIEF
AIG sells offices in New York

Motorola network
Deutsche Bank is set to buy AIG’s build-
ing at 72 Wall Street for about $60m
(£39.4m) from a consortium including
South Korea's Kumho Investment Bank.
The sale, if completed, will give AIG a

in $1.2bn purchase
return of about $26m from its invest-
ment made slightly over a year ago.
People familiar with the situation said
AIG will lease back some offices in the
building.

UK Coal posts increased losses


TELECOMS tion in North America through an Coal miner UK Coal expects to post a

BY HARRY BANKS acquisition last year, but lost out on higher interim loss of about £94m, up
two major auctions of assets from from £81.5m, despite the global rise in
NOKIA Siemens Networks will buy bankrupt Canadian rival Nortel: first coal prices. The firm blamed its recent
Motorola’s telecom network equip- to Ericsson and then to Ciena Corp. refinancing, which cost £7.5m in legal
ment business for $1.2bn (£789m), Both companies paid 0.57 times fees, and a £10m drop in property val-
getting a stronghold in the North annual revenues for the Nortel busi- ues. Its operating loss will be £52m, it
American market and taking the ness units. said in its six month trading update.
number two position in the cut- Nokia Siemens is paying 0.32 times Shares dropped 13 per cent to 33p yes-
throat mobile gear market. annual revenues for the Motorola terday.
Nokia Siemens Networks – a 50-50 business.
joint venture between Nokia and Nokia Siemens has struggled to Brits don’t save for a rainy day
Siemens – has struggled to make a take a larger share of North American The average Briton would only be able
profit in the $82bn market, which business on its own; its revenues from to survive financially for a month if they
was hit hard by the recession. North America shrank nine per cent were unable to work, a survey by insurer
Under chief executive Rajeev Suri in the first quarter of this year to Unum said. Around one in five employ-
the venture has started to seek €153m, making just six per cent of ees, 5.5m of the workforce, admitted
growth more aggressively and fight the group total. they have no savings or insurance to
back against market leader Ericsson In contrast, Ericsson generated rev- FRANCE’S richest woman, Liliane Bettencourt, is to be questioned by police about alleged support them if they are unable to work.
and China’s Huawei. The Motorola enues of 9.5bn Swedish crowns in tax evasion and money laundering in a scandal that has hit the government, public prose- Around one in four said relying on their
deal will help the venture overtake North America the same quarter, 21 cutors said yesterday. President Nicolas Sarkozy has been embarrassed by allegations by the partner was their only back-up plan, and
Huawei. per cent of the group total, helped by former bookkeeper of L’Oreal cosmetics heiress Bettencourt, 87, that the billionairess and her another quarter said they would ask
Nokia Siemens tried to build a posi- its Nortel asset buy. late husband made illegal cash donations, including to Sarkozy’s 2007 election campaign. family members for financial help.

Temasek set to sell


first sterling bonds London
Night Hike
FINANCIAL SERVICES launched in the near future, sub- is Asia-focused Standard Chartered Friday 17 September 2010

BY HARRY BANKS ject to market conditions,” the bank in which it has a stake of about 18
said in the note seen by Reuters. per cent.
SINGAPORE state investor Temasek The fund raising is understood Temasek has sold bonds worth
Holdings will soon sell sterling- not to be linked to any fresh invest- $6bn under its existing $10bn medi-
denominated bonds for the first ments in the UK. The sources could um-term note programme, mostly
time in a move aimed at diversify- not be identified because the deal is in the Singapore and US dollar,
ing its funding sources. not public. according to its annual report
Temasek has hired UBS, Temasek, which manages a port- released earlier this month.
Deutsche Bank, HSBC and RBS to folio worth S$186bn (£88bn) at the Its bonds have a weighted aver-
sell the bonds, according to a note end of March, has distanced itself age maturity of 13 years and are
sent to fund managers yesterday by from speculation it could invest in rated AAA by both Moody’s and
one of the investment banks. BP, which has approached several Standard & Poor’s.
Temasek plans a benchmark issue, sovereign wealth funds for cash to Analysts said Temasek was taking
industry jargon for an issue equiva- ward off a takeover and help pay for advantage of the low interest rates
lent to at least $500m (£327m). the worst oil spill in US history. to raise long-term funds at attrac-
“The issue is expected to be Its biggest investment in the UK tive levels.

BEST OF THE BROKERS See London in


a different
ANALYSIS l Associated British Foods ANALYSIS l Great Eastern Energy ANALYSIS l Fenner 225.30
1,060 p 540 p 240 p
19 Jul
light...
450.00 How far will you go to
1,040
1030.00 520 19 Jul 230 change the lives of people
1,020 19 Jul
1,000
500 220 affected by cancer?
980 480 210 Walk 10 or 20 miles
960
460 200 through late night London.
940
920
440 190 With exclusive access
900 420 180
to iconic buildings.
28 Apr 19 May 9 Jun 29 Jun 28 Apr 19 May 9 Jun 29 Jun 28 Apr 19 May 9 Jun 29 Jun

ASSOCIATED BRITISH FOODS GREAT EASTERN ENERGY FENNER


Evolution Securities has downgraded Arden Partners reiterates its “buy” rat- Collins Stewart rates Fenner as a “buy”.
Associated British Foods (ABF) from ing on Great Eastern Energy Corp It says its recent statement highlighted www.maggiescentres.org/nighthike
“buy” to “neutral”, as it sees limited (GEEC) due to the company’s unaudited a strong profit recovery in the Advanced Register today or call 0300 123 1801
upside to 2011 earnings and believes the management numbers showing revenue Engineered Products (AEP) division, as
gross margin pressures at its Primark increasing quarter-by-quarter from the well as significant operational gearing
unit is beginning to build. However, last quarter in 2009 to over $1m per opportunities in this division.
Evolution remains optimistic about the month in June 2010. Arden’s (GEEC) tar- Collins Stewart has a target price of
company’s long-term prospects. get price is. 757p per share. 237p a share for Fenner .
Maggie Keswick Jencks Cancer Caring Centres Trust
(Maggie’s) is a registered charity, No. SC024414 A partnership between Maggie’s and Open City
To appear in Best of the Brokers email your research to notes@cityam.com
18 Google Debate CITYA.M. 20 JULY 2010

Internet search giant faces its first public grilling


WiFi network data, intentionally col- Privacy International and the Alex Dean from BBW told City A.M.: down in the face of a big company.”

TECHNOLOGY
BY STEVE DINNEEN lected unencrypted information, European Privacy Association will “We want a genuine debate about The event is the latest evidence
including private emails and bank also be present at the debate which how these alleged intrusions were that the tide of public opinion is
GOOGLE will today face a grilling by details. will take place at Big Brother allowed to happen.I think that this turning against the internet giant,
privacy campaigners who claim the Google strongly denies the claims, Watch’s Westminster headquarters. will be the definitive discussion to whose founding slogan was “Don’t
firm should be held accountable for pointing out that it raised the alarm (BBW). They will also question why date of the most controversial aspect be evil”. It also attracted criticism for
collecting sensitive personal infor- itself when it realised its mistake. the Information Commission failed of Google’s operations here in the allowing the Chinese state to censor
mation. The event will feature guest speak- to launch an investigation when pre- UK. We will be questioning why the its search results, although the rela-
It will face accusations its Street ers including Rob Halfon MP, who sented with the evidence. Information Commissioner’s Office tionship between the two has now
View project, which uses special cars has raised concerns over Google in A Google representative will be failed to look into the matter. I sus- broken down and Google has shifted
to record photographic images and parliament. Campaigners from present to defend the firm. pect there has been a case of backing its offices to Hong Kong.

Is Google violating our privacy?


NO

PETER BARRON, GOOGLE

A
T Google, we’re in the business
of connecting people to infor-
mation. Sometimes that’s
through our search engine,
which helps hundreds of millions of
people find useful results every day.
Sometimes that means helping peo-
ple manage their own information
through products like Gmail and
Picasa web albums. And in all of this
we work hard to make sure that
appropriate controls are in place to
protect people’s private information.
In May, one of the data protection
authorities in Germany asked us for a
detailed breakdown of the WiFi data
we collect for use in location-based
products like Google Maps. That
request prompted us to re-examine
everything we collect – and during
our review we discovered that we had
mistakenly included code in our soft-
ware that collected samples of what’s
known as payload data – that is infor-
mation sent over an unsecured net-
work. We have never used this data in
A Google Street View any Google product, and our priority
car used to capture is now to delete it, but this was a seri-
images and WiFi data ous mistake for which we have apolo-
Picture: GETTY gised.
As soon as we became aware of the
problem, we grounded our Street
View cars and isolated the data. In

YES WiFi connections, is more than peo-


ple can stand.
So what is going on? Google, in its
again, and we will delete all that infor-
mation.” This hardly seems to be an
appropriate response.
increasingly at odds with its customer
base and clashing with domestic
authorities. The evidence: the hostile
recent weeks we have been reaching
out to the Data Protection
Authorities in the relevant countries,
drive to collect any and all informa- Google had an opportunity to file a reaction in countries such as the UK, and we’re working with them to
tion that exists, wanted to map all patent in the US for technology that Australia, New Zealand and Germany answer their questions and have the
WiFi networks it would encounter would have prevented it from collect- over the company’s Street View proj- data deleted in the appropriate man-
with its Street View project. They ing private information. Considering ect. The Italian Data Protection ner.
decided to use programming code that an American start-up, Skyhook, Authority even singled Google out in Maintaining people’s trust is cru-
and aerials that not only mapped the had been doing the same WiFi map- its annual report, citing the compa- cial to everything we do. We asked a
networks, but also collected data ping for far longer, it would seem ny’s persistent hostility towards the third party to review what happened
streaming over unencrypted net- there were options available that very standards the Authority is meant in this case and internally we are cur-
works, and retained it. could have prevented it collecting pri- to protect. rently reviewing our procedures to
KARIN RIIS JORGENSEN, EPA This may not be terribly concerning vate data. Technological innovation must pro- make sure they are sufficiently
for students at Stanford University in The company’s chief executive, Eric tect privacy, not attack it. The right to robust to address these kinds of prob-

G
OOGLE is in the dog-house as Google’s back yard, where the technol- Schmidt, famously said, “If you have privacy is sacrosanct. Protecing peo- lems in the future. In addition, given
far as we and many other priva- ogy was first tested – but it is clearly something that you don’t want anyone ple’s identity is not censorship, but a the concerns raised, we have decided
cy campaigners are concerned. concerning for European citizens. to know, maybe you shouldn’t be doing fundamental right. And respecting pri- that it’s best to stop our Street View
The internet giant is guilty of After all, our banking information, it in the first place”? vacy should be considered an asset, not cars collecting any WiFi network
playing fast and loose with people’s personal conversations, and pass- This statement fails to acknowledge an obstacle. Rather than expecting data.
privacy. It has been found capturing words are supposed to be protected the fact that the core of a liberal uninformed users to dig around to find Privacy is a priority for Google. We
people’s WiFi information, including from wiretapping. Google is not democracy is the ability for one’s life to an opt-out option from its data shar- handle large amounts of data every
private emails, bank information, and excused from this law. remain private – covering everything ing, the firm should put individual pri- day and we have an excellent record
passwords in the course of its Street Recently the Australian authorities from who one votes for to what we say vacy at the centre of all its policies and in keeping that data safe. We know
View service. The service, originally clamped down on the company, accus- over the phone. Otherwise, we are pledge to protect it above all else. that the only thing that keeps people
focused on photographing curbside ing it of being in possible breach of guilty until proven innocent. • European Privacy Association (EPA) is an coming back to Google is their trust
views, was already being attacked for privacy law. The Australian case comes This is not good enough. Google’s advocate for privacy and data protection at in our products, so users’ privacy is
photographing individuals and their after countless complaints in Europe. leaders should promote privacy as it the European level. The EPA website is at and will remain of the utmost impor-
properties without consent. This lat- And all Google says, when confront- grows as a company. As long as Google www.europeanprivacyassociation.eu tance.
est transgression, however, of collect- ed with the evidence, is: “Sorry, it was delays taking up the role of a champi- • Karin Riis Jorgensen is the chair of the • Peter Barron is Google UK’s head of com-
ing private data directly from people’s a mistake. We promise to not do it on for privacy, it will risk seeing itself EPA. munications.
Investment | Contracts for Difference
19

SCALE BACK
EXPOSURE ON Despite its progress, BP
THE BOUNCE
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
is now a high-risk bet
Even if plugging the
T
HIS is a big week for the markets with
traders forced to consider the potential
effects of a number of major events. Looking leak goes perfectly,
at the US, we get deeper into the second
quarter earnings season with over 500 companies expect volatility,
to report – up from less than 100 last week. The
interpretation so far has been that earnings are writes Juliet Samuel
beating the Street’s (low) expectations; revenues

W
are proving a disappointment, while forward guid- ITH BP’s temporary capping of
ance has been less bullish than hoped. These come the leaking Macondo well last
amid a slew of data which call the recovery into week, investors piled back into
doubt. It is hardly surprising then that equities the stock. Fidelity’s star fund
made a sharp retreat at the end of last week, espe- manager Anthony Bolton declared that
cially as a number of major indices failed to break investors have “a classic once in-alifetime
above significant resistance levels. opportunity to buy BP” and even after the
This week sees another round of US housing announcement on Sunday that gas is now
data, with building permits and housing starts leaking from the ocean floor, most invest-
today and existing home sales on Thursday. Last ment notes yesterday retained “buy” rec-
month’s numbers shocked the market and many ommendations.
investors concluded that without the stimulus of But if contracts for difference traders
the tax credit, which expired in April, the housing wondered if they should be getting some of
market was on its knees. Foreclosures are on tar- the action on Friday, BP’s 4.74 per cent drop
get to hit a record high this year and there are yesterday should reaffirm a cautious out- The full legal costs of the
fears that a massive shadow inventory of repos- look. Although there are likely to be gains, Macondo leak won’t be
sessed homes will weigh down supply. Many ana- the oil giant’s share price will stay extreme- known for years
lysts now feel a double-dip is a certainty. ly volatile.
Fed chairman Ben Bernanke testifies before the On the upside, analysts highlight that BP
Senate Banking Committee on Wednesday and has been severely oversold. Its share price
the House Financial Services Committee the fol- hit a low of 296p at the end of May, which emerged on the weekend, pointing out only being paid 0.3 per cent more for the
lowing day. Both statements will be scrutinised was for many a strong “buy” signal. Those that “it is still too early to tell whether the extra risk.”
carefully but the question and answer sessions who snapped up shares or bet long at the well will remain shut off”. So even if everything goes perfectly, low-
may be of greatest interest. Last week’s FOMC stock’s bottom could by now have made Meanwhile, the cost of the clean-up and risk traders should not assume that BP’s
minutes showed a remarkable deterioration in the more than a 30 per cent profit. litigation remains unclear. Dealing with stock price will enjoy a smooth recovery.
members’ economic outlook. They were particu- Moreover, with a temporary cap cutting the leak has already cost £3.95bn and law- Until the well is permanently plugged and
larly concerned that the risk of deflation had off the leak last week, BP has made signifi- suits are likely to hang over the company until the full legal costs are known, the oil
grown, that unemployment was likely to remain cant progress. Many analysts target prices for years to come. BNP Paribas Wealth major remains a high-risk bet.
high for a significant period and that the economy of over 500p, with UBS targeting 525p, Management’s Chris Alexander highlights
could take five or six years to return to normality. AlphaValue suggesting 543p and Evolution this uncertainty as the reason for his firm’s ANALYSIS l Macondo well partners’ market cap loss
Friday sees the release of the European stress Securities more bullish still at 580p. They negative outlook on the stock in both the $0 0%

Source: Datastream
test results. Given the confusion currently sur- argue that BP has a strong balance sheet, short and long-term. Alexander says: “It is -$10,000 -5%
rounding their terms and scope, it seems unlikely plenty of assets to sell and that models sug- impossible to get a handle on the costs. For -10%
-$20,000
that Europe’s version will lift confidence in the gest it is severely undervalued at its current low-risk investors who’d like to sleep easy
-15%
way the US tests did. Consequently, traders may price. and own something once removed from a -$30,000
use any bounce in equities as an opportunity to But not everyone agrees with this opti- gilt, this is a leopard that has changed its -20%
-$40,000
scale back their long exposure. mistic outlook. Despite its 12-month 455p spots. It has become a higher-risk, higher- -25%
price target, the Royal Bank of Scotland volatility share.” -$50,000
-30%
urges caution: “From a short-term point of Moreover, he does not think this has yet -$60,000
view, we suspect that 400p will manifest as been priced in. Comparing BP to Shell’s val- -35%
resistance and short-term traders should uation, he says: “If you look at the analysts’ -$70,000 -40%
BP Anadarko Transocean Mitsui Cameron Halliburton
prepare to take profits.” Killik & Co’s consensus view of 2012 prospective yields, -$80,000 -45%
Jonathan Jackson took a similar line on BP offers a riskier 7.2 per cent compared Loss in market cap abs. ($m) Loss in market cap rel. -($m)
Friday even before reports of new gas leaks with Shell’s 6.9 per cent. So, at best, you’re Loss in market cap % Loss in market cap (%)- relative

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CITYA.M. 20 JULY 2010 Investment | Contracts for Difference 21

No blue skies
for the Nikkei
stock market
this summer
A strong yen and political stalemate will cap
any gains in the index, writes Jessica Mead

D
ESPITE the bearish fundamentals positive on Japan: Schroders is optimistic
plaguing the Japanese currency, the about Japanese stocks, arguing that they
yen has proved remarkably resilient are undervalued and should benefit from
over recent months, boosted first by a broadening of the export-led recovery.
safe-haven inflows as a consequence of the Over a long-term horizon, they are almost
European sovereign debt crisis and then certainly correct – we will see a weakening
from the deterioration in the US recovery. of the yen eventually, which should help
This strength in the yen has had a detri- to stimulate the economy and exporters.
mental effect on the health of Japanese But in the short-term, fears of a US dou-
firms and therefore on the Nikkei 225. ble-dip and risk aversion will probably
The Japanese index had fallen in line with keep the yen strong against the US dollar
other major indices since the end of April over the summer. This is not the only rea-
but has not picked up as strongly as the son that CFD traders should be shorting
others since the start of this month. For Japanese equities either. Credit Suisse’s
example, the FTSE 100 is up 8 per cent equity strategy team, led by Andrew
month-to-date and the S&P 500 has risen Garthwaite, has downgraded Japan to
6.7 per cent but the Nikkei has only added benchmark from overweight for three key
2.3 per cent since 1 July. reasons. First, the team argues that this
Given its relatively poor performance stage in the economic cycle is historically
over the past few weeks you might be bad for Japan – the country’s stock market
tempted to view the Nikkei as cheap. tends to peak about four months after the
Indeed, nearly a third of independent peak in the OECD global lead indicator,
financial advisers (IFAs) are tipping which was in April. Its exporters are also
Japanese equities as a good bet over the dependent on continued economic
summer months, according to research momentum in emerging Asia – 57 per
published last week by Ignis Asset cent of its exports go to the region and 19
Management. Ignis found that Japanese per cent to China alone. Picture: GETTY
stocks were the fourth most favoured Second, Credit Suisse believes that
asset class, behind emerging markets, US “tightening fiscal policy and not engaging
equities and commodities. in QE in a period of deflation is a policy
So should contracts for difference (CFDs) mistake” and highlights the likely lack of Europe) for a market where long term With equity markets having come off so
traders also be considering trading reform given the legislative deadlock that growth looks to be slower than that of the much in recent months, it is probably
Japanese stocks this summer? If you’re is prevailing. Third, the strategists reckon US, Europe or the UK and corporate gover- worth waiting for any rebounds in the
brave and a bit of a night owl, then the that Japan is no longer obviously oversold. nance has proved to be a lot worse.” Nikkei to go short.
Nikkei 225 could be an ideal bet. For a Japan is no longer trading at a sharp dis-
start, its volatility is attractive – the index count to its Asian neighbours. It is also ANALYSIS l Japan is not abnormally cheap on a relative 12-month forward price-to-earnings ratio
has seen monthly gains or losses of at least not obviously cheap relative to other glob-
10 per cent six times since January 2008 al equities on a 12-month forward price-to-
and State Street, an asset management and earnings ratio. “We struggle to 3.5
custody firm, expects this to last for years. understand why international investors
However, the vast majority of the events would pay a p/e premium (19 per cent on
3.0
that determine the index’s daily move- forward earnings) or have such a low free
ments happen when Europe is asleep. cash flow yield relative to other regions
Unless you are prepared to stay up into the (3.1 per cent in Japan compared with 6.7 2.5
early hours or rise early, you need to be per cent in the US and 6.3 per cent in
particularly rigorous about setting stop
Source: Credit Suisse

losses and limit orders – otherwise you 2.0


could easily get burnt and miss out on any The Japanese stock market tends to peak
important moves.
But given how strong the yen is, should about four months after the OECD’s global 1.5

you be going long or short the Nikkei and


its constituents? It is clear that many asset lead indicator, which topped in April. 1.0
1988 1990 1993 1995 1998 2000 2003 2005 2008 2010
managers are starting to become more

THE TIPSTER news whether it is smashing its own profit


records or promoting the success of its
sovereign debt worries after it was
announced that Hungary will need to rely on
RYANAIR aggressive pricing policy. Even the ash cloud is
unlikely to have hurt profits. We expect to see
external financing to service its massive debt
mountain. The euro is now closing in on the
FLIES HIGH more good news in the first quarter trading
statement released on Tuesday. Cantor Index
$1.3000 level against the dollar. Capital CFDs
quotes a price of $1.2962-$1.2963.
AS PROFITS offers a spread on Ryanair of 374.5p-380.7p.
The shambles that was Prudential’s flirta-
BHP Billiton updates the market with its
latest set of results this week. Shares have
SET TO SOAR tion with AIG’s Asia operations has taken
another twist with the announcement yester-
performed well recently following the
announcement that the proposed Australian
day that Mark Tucker, who left Prudential mining tax was going to be less than original-

E
XPECTATIONS are high for Ryanair’s last year, will be taking over as chief execu- ly thought. But watch out for the 1,865p level
first quarter trading update that will be tive of AIA. With Tucker at the helm and an where there is decent resistance. Beyond that
announced today. Its last update in June upcoming listing on the Hong Kong stock the 1,900p-1,940p area also looks likely to
showed a 280 per cent jump in pre-tax exchange, investors expect AIG to sell its cap any upward moves in the short-term.
profits for 2009. Back in June it announced AIA stake. Cantor Index offers a spread on Spread Co offers a spread on BHP Billiton of
that it expects growth to expand by 11 per AIG of $34.97-$35.12. 1,815.1p-1,819.3p.
cent in 2010. The airline is rarely out of the The euro has shrugged off concerns over Kathleen Brooks Expectations are high for Ryanair’s trading update
22 Markets & Investments CITYA.M. 20 JULY 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .273.40* +1.00 314.80 239.00 COLT Group . . . . . . . . . . . . . . . .130.10 +1.20 144.20 106.75 ITV . . . . . . . . . . . . . . . . . . . . . . . .50.05 –0.45 71.75 34.00 Schroders . . . . . . . . . . . . . . . . . 1193.00 –8.00 1450.00 860.50
3i Infrastructure . . . . . . . . . . . . . 110.00 –1.10 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .557.00* –0.50 574.50 307.75 Jardine Lloyd Thompson. . . . . . .564.50 –1.50 604.50 415.75 Schroders N/V. . . . . . . . . . . . . . .999.00 –3.00 1185.00 723.50
A.B. Foods . . . . . . . . . . . . . . . .1031.00 –25.00 1066.00 766.00 Cookson . . . . . . . . . . . . . . . . . . .414.30 –12.10 616.00 276.50 Johnson Matthey . . . . . . . . . . .1590.00* –24.00 1814.00 1202.00 Scot. & Sthrn Energy. . . . . . . . . 1174.00 –18.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .126.10 –0.80 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . . 1130.00 –3.00 1165.00 536.00 Kazakhmys . . . . . . . . . . . . . . . .1017.00 –7.00 1634.00 673.00 Scottish Mortgage. . . . . . . . . . . .581.50 +1.00 623.50 410.00
Admiral. . . . . . . . . . . . . . . . . . .1409.00 –1.00 1483.00 900.50 CSR . . . . . . . . . . . . . . . . . . . . . .385.70 –3.80 524.00 338.75 Kesa Electricals . . . . . . . . . . . . .122.10 –1.20 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .269.90 +0.30 403.10 244.00
Aegis . . . . . . . . . . . . . . . . . . . . .107.00 –0.20 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .456.90 –3.00 539.00 290.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .218.70 –1.60 255.00 196.50
Afren . . . . . . . . . . . . . . . . . . . . . .83.75 –0.80 111.00 51.75 Dana Petroleum . . . . . . . . . . . .1483.00 — 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .136.40 –2.40 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .570.00 –6.50 656.50 394.30
African Barr Gold . . . . . . . . . . . .579.50 +2.00 685.00 520.50 Davis Service . . . . . . . . . . . . . . .366.70 –3.30 442.30 322.75 Lancashire Hldgs . . . . . . . . . . . .526.50 –0.50 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1276.00* –4.00 1310.00 921.00
Aggreko . . . . . . . . . . . . . . . . . .1569.00 –9.00 1639.00 523.50 De La Rue . . . . . . . . . . . . . . . . . .923.50* –6.50 1021.00 808.50 Land Securities . . . . . . . . . . . . . .577.00* +4.00 743.50 474.00 Shaftesbury . . . . . . . . . . . . . . . .386.30 +1.80 426.50 306.25
Alliance Trust . . . . . . . . . . . . . . .314.00* –2.50 352.70 273.75 Debenhams . . . . . . . . . . . . . . . . .57.35 –0.90 91.95 51.95 Legal & General . . . . . . . . . . . . . .84.20 +0.10 94.40 55.90 Shire. . . . . . . . . . . . . . . . . . . . .1469.00 –9.00 1526.00 825.50
AMEC . . . . . . . . . . . . . . . . . . . . .862.00 –4.50 891.00 656.00 Derwent London . . . . . . . . . . . .1296.00 –2.00 1490.00 903.00 Lloyds Banking Gp . . . . . . . . . . . .59.27 –0.34 75.58 44.95 SIG . . . . . . . . . . . . . . . . . . . . . . .100.00 –0.60 146.60 96.90
Amlin . . . . . . . . . . . . . . . . . . . . .417.40 — 428.50 312.00 Dexion Absolute . . . . . . . . . . . . .137.20 +0.20 148.00 117.00 Logica . . . . . . . . . . . . . . . . . . . .108.70 +0.40 149.10 79.50 Smith & Nephew . . . . . . . . . . . . .600.50 –4.50 700.50 438.00
Anglo American . . . . . . . . . . . .2353.00 +14.50 3015.50 1762.50 Diageo . . . . . . . . . . . . . . . . . . . 1109.00 –5.00 1176.00 870.50 London Stk Exchange . . . . . . . . .632.50 +9.50 949.50 540.50 Smith(Ds) . . . . . . . . . . . . . . . . . .139.00 –0.40 147.00 63.75
Antofagasta . . . . . . . . . . . . . . . .913.00 +10.00 1100.00 653.00 Dimension Data . . . . . . . . . . . . .123.00 +0.50 123.60 55.00 Lonmin . . . . . . . . . . . . . . . . . . .1420.00 +3.00 2198.00 1088.00 Smiths . . . . . . . . . . . . . . . . . . . 1104.00 +2.00 1186.00 714.00
Aquarius Platinum . . . . . . . . . . .227.10 –28.90 490.00 206.00 Domino’s Pizza . . . . . . . . . . . . . .420.60 –1.50 426.00 218.50 Man . . . . . . . . . . . . . . . . . . . . . . 211.40* +2.00 373.60 199.60 SOCO Intl . . . . . . . . . . . . . . . . . .416.40 –1.60 444.60 380.60
ARM Holdings . . . . . . . . . . . . . . .300.90 –3.20 362.40 120.50 Drax . . . . . . . . . . . . . . . . . . . . . .377.00 +0.20 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .342.90* –4.60 412.70 321.90 Spectris . . . . . . . . . . . . . . . . . . .895.00 +3.50 949.00 517.00
Arriva . . . . . . . . . . . . . . . . . . . . .769.00 +1.00 782.50 397.75 DSG Intl . . . . . . . . . . . . . . . . . . . .26.15 –0.61 39.75 22.50 Meggitt . . . . . . . . . . . . . . . . . . . .294.80 +0.50 331.00 166.75 Spirax-Sarco Eng . . . . . . . . . . .1546.00 –2.00 1591.00 851.00
Ashmore . . . . . . . . . . . . . . . . . . .268.80 +0.70 311.20 195.00 Dunelm . . . . . . . . . . . . . . . . . . . .372.80 –3.30 438.40 250.70 Melrose . . . . . . . . . . . . . . . . . . .223.40 –1.30 251.50 100.75
Astrazeneca . . . . . . . . . . . . . . .3216.50 +10.00 3277.50 2668.00 Easyjet . . . . . . . . . . . . . . . . . . . .418.00 –3.50 499.90 271.00 Mercantile IT . . . . . . . . . . . . . . . .906.00* –2.50 1002.00 772.00 Spirent Comms . . . . . . . . . . . . . . 117.30 –0.90 127.80 60.50
Atkins(Ws) . . . . . . . . . . . . . . . . .725.00 +1.00 747.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .390.90* –1.60 412.40 313.50 Michael Page Intl. . . . . . . . . . . . .398.90 +4.00 461.50 245.75 Sports Direct Intl . . . . . . . . . . . . . 114.50 +1.30 134.00 81.80
Autonomy Corp . . . . . . . . . . . .1866.00 –30.00 2012.00 1161.00 Electrocomponents . . . . . . . . . . .220.70* –2.90 245.00 138.00 Micro Focus . . . . . . . . . . . . . . . .437.00 –2.00 550.00 300.90 SSL Intl . . . . . . . . . . . . . . . . . . . .890.00 +7.50 898.00 522.50
Aveva . . . . . . . . . . . . . . . . . . . .1272.00* –18.00 1365.00 721.50 EnQuest . . . . . . . . . . . . . . . . . . .103.70 +0.50 112.70 87.35 Millen & Copthorne . . . . . . . . . . .433.00 –2.90 496.30 243.50 St James’s Place . . . . . . . . . . . . .233.50 –2.70 296.90 172.25
Aviva . . . . . . . . . . . . . . . . . . . . .334.60 –0.90 474.00 290.20 Essar Energy . . . . . . . . . . . . . . .458.90 +0.70 475.90 358.50 Misys . . . . . . . . . . . . . . . . . . . . .251.30 –1.00 281.70 171.00 Stagecoach. . . . . . . . . . . . . . . . .176.20 –6.10 204.90 126.20
Babcock International . . . . . . . . .616.00 –6.00 660.50 459.80 Eurasian Nat Res . . . . . . . . . . . .838.50 –1.00 1276.00 720.00 Mitchells & Butlers . . . . . . . . . . .297.60 –5.40 343.90 228.30 Standard Chartered . . . . . . . . . .1740.00 +34.00 1847.00 1195.00
BAE Systems . . . . . . . . . . . . . . .318.30 –0.30 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .589.00 –6.00 630.00 218.25 MITIE . . . . . . . . . . . . . . . . . . . . .208.50* –1.80 281.70 198.70 Standard Life . . . . . . . . . . . . . . .190.90 –1.50 237.00 170.00
Balfour Beatty . . . . . . . . . . . . . . .246.90 –0.50 328.85 228.60 Experian . . . . . . . . . . . . . . . . . . .648.50* –0.50 664.50 450.50 Mondi . . . . . . . . . . . . . . . . . . . . .399.20 –3.90 488.00 202.25 SuperGrp . . . . . . . . . . . . . . . . .1001.00 –5.00 1010.00 499.00
Barclays . . . . . . . . . . . . . . . . . . .285.30 +0.65 394.25 253.40 F&C Comm Prop . . . . . . . . . . . . . .93.65* — 96.80 74.50 Monks Inv Tst . . . . . . . . . . . . . . .282.00* –1.90 321.20 237.00 TalkTalk . . . . . . . . . . . . . . . . . . . 117.10 –1.20 147.10 106.60
Barratt Development . . . . . . . . . . .93.85 –5.45 193.31 89.10 Ferrexpo . . . . . . . . . . . . . . . . . . .251.60 –1.60 396.20 135.25 Morrison Wm . . . . . . . . . . . . . . .282.70 +1.40 306.30 249.25 Talvivaara Mining . . . . . . . . . . . .399.90 +3.90 501.50 333.00
BBA Aviation . . . . . . . . . . . . . . .195.10 –0.80 220.00 116.50 FirstGroup . . . . . . . . . . . . . . . . .367.90* –3.80 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .823.50* –9.00 893.50 627.00 Tate & Lyle . . . . . . . . . . . . . . . . .467.00* –2.10 509.00 299.25
Beazley. . . . . . . . . . . . . . . . . . . . 119.50 –1.50 125.80 95.25 Foreign & Col Inv Tst. . . . . . . . . .267.50 –1.70 297.20 219.25 National Express. . . . . . . . . . . . .234.40 –0.60 256.80 154.04 Taylor Wimpey . . . . . . . . . . . . . . .24.99 –1.10 54.90 24.29
Bellway. . . . . . . . . . . . . . . . . . . .568.00 –22.50 927.50 567.00 Fresnillo . . . . . . . . . . . . . . . . . .1050.00 –10.00 1139.00 539.50 National Grid . . . . . . . . . . . . . . .488.70* +1.10 607.65 474.80
Berkeley . . . . . . . . . . . . . . . . . . .812.00 –15.00 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .265.80 –1.90 285.70 208.50 Next . . . . . . . . . . . . . . . . . . . . .2039.00 –31.00 2360.00 1580.00 Telecity . . . . . . . . . . . . . . . . . . . .423.80 +3.80 455.00 300.00
BG . . . . . . . . . . . . . . . . . . . . . .1060.50 — 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .458.00 –1.00 484.00 370.00 Northumbrian Water . . . . . . . . . .324.60 –0.20 328.90 219.90 Templeton Emrg Mkts . . . . . . . . .534.50* +3.50 598.00 376.00
BHP Billiton . . . . . . . . . . . . . . .1816.50 +5.00 2346.00 1431.50 GKN . . . . . . . . . . . . . . . . . . . . . .132.00 +0.50 155.00 78.00 Old Mutual . . . . . . . . . . . . . . . . . 111.40 –0.60 127.20 85.00 Tesco . . . . . . . . . . . . . . . . . . . . .398.80 +2.30 454.90 361.20
BlackRock Mining . . . . . . . . . . . .538.00 +5.00 654.50 383.50 GlaxoSmithKline . . . . . . . . . . . . 1188.00 +0.50 1347.00 1088.00 Partygaming . . . . . . . . . . . . . . . .232.00 –5.30 339.70 205.80 Thomas Cook . . . . . . . . . . . . . . .186.50 –4.30 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .42.21 +0.21 49.50 33.00 Great Portland Estates . . . . . . . .296.30 –1.70 332.10 215.00 Pearson . . . . . . . . . . . . . . . . . . .923.50 –1.50 1069.00 603.00 Tomkins . . . . . . . . . . . . . . . . . . .294.20 +63.90 314.00 155.00
BP . . . . . . . . . . . . . . . . . . . . . . .387.85 –19.30 658.20 296.00 Greene King . . . . . . . . . . . . . . . .438.00 –6.70 504.00 372.50 Pennon . . . . . . . . . . . . . . . . . . . .577.00 +4.00 584.00 434.40 Travis Perkins . . . . . . . . . . . . . . .779.50 –20.00 915.00 613.00
Brit Insurance . . . . . . . . . . . . . . .897.00 –2.00 975.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .497.30* –14.20 562.50 322.25 Persimmon . . . . . . . . . . . . . . . . .360.30 –17.30 534.50 340.20 TUI Travel . . . . . . . . . . . . . . . . . .218.70 –1.70 313.90 202.30
British Airways . . . . . . . . . . . . . .201.90 –1.90 255.80 127.50 Halma . . . . . . . . . . . . . . . . . . . . .282.40 –5.10 298.70 184.25 Petrofac . . . . . . . . . . . . . . . . . .1272.00 –9.00 1317.00 730.00 Tullett Prebon . . . . . . . . . . . . . . .331.30 –4.20 436.20 261.20
British Amer. Tob . . . . . . . . . . .2238.50 –27.00 2335.50 1749.00 Hammerson . . . . . . . . . . . . . . . .365.20 +2.80 460.30 300.75 Petropavlovsk . . . . . . . . . . . . . . 1132.00 –38.00 1370.00 584.50 Tullow Oil . . . . . . . . . . . . . . . . . 1123.00 –16.00 1375.00 913.50
British Empire Tst . . . . . . . . . . . .422.50 +0.50 467.90 338.50 Hargreaves Lansdown . . . . . . . .326.80 –5.20 387.00 204.50 Premier Farnell . . . . . . . . . . . . . .232.20 –2.80 252.60 131.25 UK Commercial Prop. . . . . . . . . . .79.70 +0.55 84.90 62.25
British Land . . . . . . . . . . . . . . . .443.00* –0.20 532.00 385.25 Hays . . . . . . . . . . . . . . . . . . . . . . .94.95 –0.35 119.00 83.25 Premier Oil . . . . . . . . . . . . . . . .1462.00 +12.00 1502.00 984.00 Ultra Electronics . . . . . . . . . . . .1544.00 –17.00 1678.00 1094.00
Britvic. . . . . . . . . . . . . . . . . . . . .504.00 –3.00 516.50 309.25 Henderson . . . . . . . . . . . . . . . . .122.10 –1.40 157.80 89.50 Provident Financial . . . . . . . . . . .854.50 –11.00 986.00 786.00 Unilever . . . . . . . . . . . . . . . . . .1891.00 +9.00 2024.00 1498.00
Brown(N.) . . . . . . . . . . . . . . . . . .242.80* –2.30 284.30 204.80 Heritage Oil. . . . . . . . . . . . . . . . .423.70 –8.20 587.00 368.70 Prudential . . . . . . . . . . . . . . . . . .513.00 –9.00 665.00 386.50
BSkyB . . . . . . . . . . . . . . . . . . . .697.50 — 732.00 492.00 Hikma Pharma . . . . . . . . . . . . . .730.50 +4.50 731.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .335.00 –7.20 356.80 210.00 United Utilities . . . . . . . . . . . . . .558.50* +3.50 575.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .139.00 –0.40 151.00 108.00 Hiscox . . . . . . . . . . . . . . . . . . . .346.80 +0.50 369.30 290.00 Qinetiq . . . . . . . . . . . . . . . . . . . .124.80 –0.40 179.10 113.90 Utd Business Media . . . . . . . . . .520.00 –6.50 579.50 366.00
Bunzl . . . . . . . . . . . . . . . . . . . . .697.50 –8.50 784.50 510.00 Hochschild Mining . . . . . . . . . . .293.50 +1.80 370.60 220.00 Randgold Resources. . . . . . . . .5915.00 –55.00 6600.00 3351.00 Vedanta Resources . . . . . . . . . .2228.00* +25.00 2967.00 1455.00
Burberry . . . . . . . . . . . . . . . . . . .805.00* +5.50 827.50 419.75 Home Retail . . . . . . . . . . . . . . . .228.30* –2.30 336.50 208.50 Reckitt Benckiser . . . . . . . . . . .3232.00 –16.00 3667.00 2686.00 Victrex . . . . . . . . . . . . . . . . . . . 1130.00 –17.00 1193.00 588.50
Cable & Wire Comms . . . . . . . . . .57.10* –0.10 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2105.00* +1.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .514.00 –2.50 548.00 403.75 Vodafone . . . . . . . . . . . . . . . . . .144.65* +0.30 153.80 112.30
Cable & Wire Wwide . . . . . . . . . . .83.55* –1.15 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .623.10 +1.50 766.80 537.80 Regus . . . . . . . . . . . . . . . . . . . . . .72.05 –1.20 125.50 67.00 Weir . . . . . . . . . . . . . . . . . . . . . 1182.00 +6.00 1229.00 487.25
Cairn Energy. . . . . . . . . . . . . . . .445.90 –3.50 479.20 306.80 Hunting . . . . . . . . . . . . . . . . . . .491.10 –11.90 659.50 395.75 Rentokil Initial . . . . . . . . . . . . . . .108.20 –2.90 140.20 86.50 WH Smith . . . . . . . . . . . . . . . . . .424.00 +1.80 551.00 396.00
Caledonia Invs . . . . . . . . . . . . .1578.00 –7.00 1759.00 1496.00 ICAP . . . . . . . . . . . . . . . . . . . . . .406.80 +0.90 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .68.00 –1.00 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1415.00 –20.00 1645.00 816.50
Capita . . . . . . . . . . . . . . . . . . . . .740.50 –8.50 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .466.60 +3.00 485.30 262.25 Rexam . . . . . . . . . . . . . . . . . . . .319.70 –0.10 331.20 222.50 William Hill . . . . . . . . . . . . . . . . .178.90 –2.60 217.80 160.50
Capital & Counties . . . . . . . . . . . 112.50 +0.30 125.40 99.60 Imagination Tech Gp . . . . . . . . . .318.00 –7.90 334.60 142.00 Rightmove . . . . . . . . . . . . . . . . .601.50 –28.50 729.00 350.00 Witan Inv Tst . . . . . . . . . . . . . . . .436.50 –0.40 487.00 349.50
Capital Shopping Centres . . . . . .324.60 +0.60 580.00 300.10 IMI . . . . . . . . . . . . . . . . . . . . . . .726.50 +11.00 756.50 281.75 Rio Tinto . . . . . . . . . . . . . . . . . .3048.50 +43.50 4104.00 2087.50 Wolseley . . . . . . . . . . . . . . . . . .1363.00 –1.00 1742.00 1090.00
Carillion . . . . . . . . . . . . . . . . . . .316.80 –3.00 361.90 246.25 Imperial Tobacco. . . . . . . . . . . .1956.00 –5.00 2159.00 1614.00 RIT Capital Partners . . . . . . . . . 1170.00 –33.00 1215.00 904.00
Carnival . . . . . . . . . . . . . . . . . .2146.00 –31.00 2937.00 1649.00 Inchcape. . . . . . . . . . . . . . . . . . .285.40 –4.60 347.00 235.00 Rolls Royce . . . . . . . . . . . . . . . .579.50 — 631.50 363.00 Wood Group (John). . . . . . . . . . .337.70 –1.30 411.70 254.00
Catlin . . . . . . . . . . . . . . . . . . . . .374.10 –4.30 386.30 300.25 Informa . . . . . . . . . . . . . . . . . . . .353.40 –6.70 439.40 225.00 Rotork . . . . . . . . . . . . . . . . . . .1395.00* –11.00 1482.00 805.50 WPP . . . . . . . . . . . . . . . . . . . . . .637.00 –5.50 744.00 411.50
Centamin Egypt . . . . . . . . . . . . .151.40 –1.90 174.75 80.00 Inmarsat . . . . . . . . . . . . . . . . . . .719.00 –1.00 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .43.56 –0.15 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . . .918.20 +9.60 1344.50 671.30
Centrica . . . . . . . . . . . . . . . . . . .307.90 –1.30 320.00 215.50 Intercontl Hotels . . . . . . . . . . . . 1104.00 –4.00 1244.00 604.00 Royal Dutch Shell A . . . . . . . . .1799.50 +5.00 2068.50 1521.50 Yell Group. . . . . . . . . . . . . . . . . . .25.62 –0.95 86.00 21.50
Charter Intl . . . . . . . . . . . . . . . . .688.00 –5.00 855.50 474.00 Intermediate Capital . . . . . . . . . .258.90* –0.10 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1724.00 +2.00 1997.50 1505.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2957.00* –31.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1653.00 +17.00 1667.00 1024.00 RSA Insurance . . . . . . . . . . . . . .122.40 –0.80 142.00 114.10
Chloride Group . . . . . . . . . . . . . .371.50* — 390.50 130.75 Intl Power . . . . . . . . . . . . . . . . . .350.00 +33.20 354.00 243.00 SABMiller . . . . . . . . . . . . . . . . .1914.50 –7.00 2090.00 1293.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .700.00 +3.00 806.50 654.00 Invensys . . . . . . . . . . . . . . . . . . .272.80* +7.50 350.30 232.25 Sage . . . . . . . . . . . . . . . . . . . . . .235.50 –0.80 260.50 178.30
Cobham . . . . . . . . . . . . . . . . . . .238.00 +3.30 278.60 173.20 Investec . . . . . . . . . . . . . . . . . . .469.80 –3.40 565.00 357.50 Sainsbury(J) . . . . . . . . . . . . . . . .346.40* –0.60 373.00 307.60 www.interactivedata.com

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Bid for Tomkins fails to boost investor Wall St rises as IBM and
cheer as BP’s woes drag down FTSE Texas results hit after bell
THELONDON
The data sparked new fears about
the pace of a recovery.
The data offset upbeat corporate
economy is facing stiff headwinds,
asking prices for British homes fell
for the first time this year,
THENEW YORK and Texas Instruments slumped 5.6
per cent.
The Dow Jones industrial average

REPORT news from Halliburton and Boeing.


BP shed 4.7 per cent and took 14
points off the index as engineers
Rightmove said yesterday.
Tomkins soared almost 28 per
cent after the engineering firm said
REPORT gained 56.53 points, or 0.56 per cent,
to 10,154.43. The Standard & Poor’s
500 Index rose 6.37 points, or 0.60 per
monitoring its damaged well in the it had received a bid approach at cent, to 1,071.25. The Nasdaq

W U
EAK US housing data Gulf of Mexico detected seepage on 325p per share from a consortium of S stocks rose yesterday, Composite Index added 19.18 points,
helped push Britain’s the ocean floor that could mean Onex and the Canada Pension Plan spurred by optimism ahead of or 0.88 per cent, to 2,198.23.
top shares lower yester- problems with the cap that has Investment Board. earnings from key technology The S&P 500 hit a session low of
day, as cautious stopped oil from gushing into the companies and after Dow about 1,061, roughly at the index’s 14-
investors trimmed positions in riski- ocean. ANALYSIS l FTSE 5,148.28 component Boeing announced strong day moving average and the 23.6 per
er assets, while BP fell after leaks The oil firm has lost over 40 per- 5,800 19 Jul orders. cent retracement of the benchmark
were discovered in its capped well. cent in value since the leak started 5,600 Investors bet on solid reports from index’s 2010 high-to-low decline.
The FTSE 100 closed down 10.57 in April. International Business Machines Volume was among the lightest,
points, or 0.2 per cent, at 5,148.28, A broker downgrade weighed on 5,400 (IBM), the world’s largest technology with 7.1bn shares traded on the New
having shed one per cent on Friday. Associated British Foods, off 2.4 per 5,200
services provider, and chip maker York Stock Exchange, the American
The index’s fall echoed a retreat cent, with Evolution Securities cut- Texas Instruments, hoping both Stock Exchange and Nasdaq.
on Wall Street after data from the ting its rating on the Primark fash- 5,000 would show strength similar to Intel’s Advancing stocks outnumbered
United States revealed that the ion stores owner and Silver Spoon results last week. declining ones on the NYSE by a ratio
4,800
homebuilder sentiment index fell in sugar refiner to “neutral” from But shares of IBM fell more than of almost two to one, while on the
July to the lowest level in more than “buy”. 4,600 three per cent after the closing bell Nasdaq, three stocks rose for every
a year. In a sign that the domestic UK 19 Apr 10 May 28 May 18 Jun 8 Jul after revenues missed expectations, two that fell.
Lifestyle BMW 535I SE 23
SALOOON
| Health & Beauty IN LIFSETYLE
TOMORROW

Find a superstar facialist


FIT IN
Sweaty summer calls THE CITY
for some serious BY LAURA WILLIAMS
face-saving. Here are FITNESS & DIET EXPERT

our pick of rescuers,


by Zoe Strimpel Bikini SOS:
how to get fit
L
ONDON is overwhelming at the best
of times. When it comes to locating

for the beach


the best therapists in a sea of spas
and salons, you may well end up
overpaying for the privelage of an inferior,
unsatisying treatment and a surly, stan-

in a hurry
dardised therapist. VANDA SERRADOR, URBAN SKIN SHAREEN ANANDALE, THE SPA AT BROWN’S HOTEL
Facials are among the most intimate Serrador has a loyal following among city-dwelling South African-born Shareen is not famous in her
treatments and are the easiest to get celebrities wanting to look fresh as daisies. Since I own right (yet). Yet from the first moment I met
wrong. So we went on a valiant mission to spend most of my time either on the Tube or in the her (for a pedicure, as it happens), I felt instantly
bring you four of London’s super-facialists: office, I simply had to visit. She has a lovely, intelli- happy and relaxed, bathed in an amazing sweet-
women (and a man) who will never let you gent manner – she can tell you all you want about ness that was entirely free of industry-speak.
down, and who really deliver the promises lymphatic drainage and the chemical composition Within three minutes I felt I was with an old

L
of their products. More to the point, each of the fabulous Yon-Ka products she uses, or you can friend. But this being one of London’s best spas,, EFT it until the last minute to tackle
has phenomenal skill and a knack for just lie back and relax as she performs a deliriously you’re in for a highly skilled treatment too and your beach body? Fear not – we have a
flourishes: Shareen is a dab hand at the pleasant (and vigorous) lymphatic drainage massage Shareen’s touch is as assured and focused as her brilliant 3-point plan to get you great
facial tuning fork, while Una has innovat- all over your face, neck and arms. You’ll think her personality is bubbly. Book her for the Natura Bisse results.
ed with hot wax to open your pores. Vanda touch is heaven-sent as she swipes off the dead cells Diamante facial, a 90 minute orgy of wellbeing
has her own devices, including a brush, to on your face with a big brush; other special feature involving a thorough lymphatic massage, a tuning PUMP SOME IRON
make your face beautiful – and a touch is a hot stone oil application. A truly euphoric sensu- fork’s vibrations on facial pressure points, and a Male or female, everyone’s problem areas
like no other. Well, none other than al experience, and my skin looked baby-like for days. diamond dust-filled face mask. £150 for 90 minutes. look better for a bit of strength work in the
Roberto, whose massage technique is sec- £100 for an hour. www.urban-skin.com www.brownshotel.com gym. Aside from giving your body a more
ond to none in London. Hope it helps. toned appearance, training with weights or
resistance bands will help to accelerate
FACE FORWARDS | TREATMENT WATCH weight loss. Stick to multi-muscle moves like
squats and press ups to get the most muscle
groups covered in the shortest space of time.
The four facialists featured here are personal-
ities and/or experts in themselves. But there MAKE SURE YOU STAY FITT
are a range of absolutely brilliant treatments You should always apply the FITT principle
at other spas around London that are worth to your workouts - adjust Frequency,
trying out if your skin needs a boost, or you Intensity, Time and Type of exercise at regu-
need a treat. lar intervals so you get results continually.
Top of that list is the Oxygen Plasma & There is such thing as an exercise plateau
Ultrasound facial at Beauty Works West. which applies to fitness levels, muscle tone
Developed by New York A-list facialist Ling and your waistline too. Always mix your
Chang, it involves a triple exfoliation, parraf- workouts up by trying new classes and
fin wax mits for the hands, an ultrasound lym- include higher intensity training (e.g.interval
phatic massage, heavy steaming, extraction training) in your workouts. For the next few
and a lip and eye plumping treatment. It actu- weeks too, squeeze an extra workout into
your weekly routine in the lead up to your
ally changed my skin for good. www.beauty- beach holiday.
workswest.com
Don’t miss the range at Glow Urban Spa DRINK THAT MUFFIN TOP AWAY
either: my favourite are the Raw Glow UNA BRENNAN ROBERTO GRAZIANO, CITYPOINT CLUB Every so often a diet comes along that
facials, which use superfoods, sea algae, Brennan has such a cult following from celebrities, It’s not every day that you encounter a male beauty seems so radical I’m compelled to try it. The
organic cold pressed oils, fruits and vegeta- beauty editors and those deeply in the know that I therapist. It’s even rarer that you encounter one that Lemon Detox (aka The Beyonce Maple Syrup
bles on your face, resulting in an incredible, was almost afraid to meet her. But it’s hard not to is equal parts beefcake and sensitive beautician. Diet) is such a diet. This is one plan that real-
err, glow and sense of wellbeing. The feel at home with her, since you are, literally, in her Graziano trained as a masseur (after studying chem- ly does do what it says on the tin (in this
Omorovicza re-mineralising facial is also rich- front room at her home in Notting Hill. Then there’s istry in his native Italy), and his strengths like in his case, a tin of Madal Bal syrup – a key ingre-
ly rejuvenating, using Hungarian oats and her boho look and her Irish lilt: she’s both cool and touch, at times supernaturally sensitive; at others, so dient in the detox, and similar to maple
wheat. www. glowurbanspa.co.uk. friendly. Her facial, though, is astonishing. A double firm you yelp. A big believer in Elemis, Graziano syrup). This short-term detox involves drink-
Up in Camden, Reikha at Alchemy dishes up cleanse with her range of choice, Skinceuticals, is brings the brand’s range to life with a quickfire pro- ing lots of homemade lemonade which
a superb COMO Shambhala Purify Holistic followed by a dynamite massage (she trained at a gression through its host of creams, oil capsules, claims to cleanse the system and aid in
body-building gym in Belfast), extraction, then the massage and a mask. If you like soft facials – free of weight loss. And it works beautifully. You
facial, using hot compresses full of ginger, kicker: a hot wax mask that is in both agonising and the pain of extractions of vigorous exfoliations – can either do the full detox (drink only) or
lemongrass and kaolin to soothe, along with extraordinary. Then, pores wide open and vulnera- Graziano is your man, and the head massage he per- the relaxed version which involves eating
grapefruit and fennel oils on your face and neck. ble, she slams them shut with a cold compress so forms while your mask dries is second to none. The healthy food along with the drink (I would
Relaxation is extreme, and your skin will thank you’re ready to face the world, glowing. £110 for 90 glow I left with after the SOS Purifying Facial with is only ever recommend the latter). For more
you. www.alchemythecentre.co.uk mins. Tel: 020 7313 9835 proof. £65 for an hour. www.thecitypointclub.co.uk info visit www.lemondetox.com
www.laurawilliamsonline.co.uk

BEAUTY NOTES: DAXITA VAGHELA EYELASH EXTENSIONS


ZOE STRIMPEL

P
Eyelash extensions ERHAPS it wasn’t the cleverest timing. I thetic black lashes, bonded with glue to my confident. I soon forgot I’d had surgery after
give you an instant decided to have eyelash extensions 10 real lashes. They fall out naturally over the a few jitters (what if a lash goes in my eye?)
boost of confidence. days after laser eye surgery. But Daxita, following month and you are allowed to and began swanning around handing out lin-
who does a full set of lashes in an indus- swim, sweat, do anything with them, except gering looks. After about two-and-a-half
try-beating single hour, put me at ease with use oily makeup remover near them. weeks, though, I took them off myself (a bit
her immensely light touch and singsong voice. When I sat up, I couldn’t take my eyes off of oil will do it) as they were falling out with
My options were a natural look, a “fashion” myself. If you aren’t a narcissist, you will be my real eyelashes (they aren’t meant to), and
look and an all-out drag-queen “look-at-me” after this. Suddenly I had a lush, black set of I was afraid of ending up bald-eyed. For the
style. I went for natural. eyelashes that curved out and up in a time I had them though, I felt a million bucks.
I lay back and relaxed. It all felt rather supremely pretty fashion. I looked alert and £150 for a full set. Daxita is at Atherton &
lovely as she neatly tweezed and pulled and my eyes looked greener than before. Having Cox, 18 New Cavendish Street, tel: 0207 487
tweaked my eyelids. She was attaching syn- stunning lashes makes you instantly more 4048. www.daxitalashes.co.uk
24 Lifestyle | Restaurant Review WORDS BY
TIMOTHY BARBER
CITYA.M. 20 JULY 2010

Not flashy, but still good FOOD & BOOZE


NEWS
ZOE STRIMPEL
TAKE HIGH TEA ON DEAN STREET
A plush Knightbridge Soho’s hottest spot for power breakfasts and
gossipy dinners has launched afternoon and
stalwart has lost its high tea menus in keeping with its down-to-
earth English style of cooking. Retro is the
star, but manages to word for the high tea: but rather than the
dreary offerings of the rationing era, expect
lovely plump fish fingers, Scotch egg with
shine nonethless caper mayonnaise and pork pie with piccalilli.
Afternoon tea is less radical: finger sandwich-
es and cakes such as Victoria Sponge and
Battenberg. High Tea menu has dishes from
The Capital £4.50. Afternoon tea is £18. 69 Dean Street,
W1D. www.deanstreettownhouse.com
22 Basil Street, SW3 1AT
Tel: 020 7591 1202 ALL-NATURAL FRO-YO IN SOHO
The cult of healthy ice cream – also known as
frozen yoghurt – continues apace with the
FOOD hhhhi opening of Yuforia on Beak Street (there’s
SERVICE hhhhi another site in Covent Garden). It’s a genius,
ATMOSPHERE hhhii eco-loving little shop that emphasises all
things natural, from the décor to the top-
Cost per person without wine: £50 pings. Spoon, straws and cups are
biodegradable – gone in six weeks if

I
T’S all happening in Knightsbridge. you chuck them in your flower
Pierre Koffman, the cook who dazzled bed (so they claim) – but more
Eighties London with La Tante Clare importantly, the fro-yo is
and Noughties London with last year’s made from Cumbrian
pop-up restaurant on the roof of Selfridges, cows, the fruit toppings
has just opened an eponymous place in the sourced from Borough
Berkeley Hotel, in the same building as Market and each helping is
Marcus Wareing’s culinary big hitter. 70-100 calories. What’s not
Gordon Ramsay recently re-opened Petrus to love? 38 Beak St, W1F.
round the corner, and in a few months
Heston Blumenthal launches his first HAWKSMOOR TO OPEN IN
London joint, Dinner with Heston COVENT GARDEN
Blumenthal (not sure about that name), in Steak lovers hold your breath: it has been
the Mandarin Oriental Hotel. announced that Hawksmoor, the Spitalfields
These new arrivals join the likes of Zuma restaurant that helped reignite London’s love
and Racine in feeding Knightsbridge’s affair with beef, is opening a second site in
international bon viveur crowd. The launch Covent Garden this autumn. Hawksmoor
of the unfeasibly exclusive One Hyde Park Seven Dials will serve exclusively British beef
development, right next door to the with a poky little cocktail bar to one side, An ever-so-smart out of its shell which might bother some from a lovingly reared herd of Longhorn cat-
Mandarin Oriental, will only swell business the dining room has around 12 tables. It’s a restaurant, The but pleased my friend, who didn’t fancy tle. The large steaks, all simply cooked on a
further. reverential, talk-in-hushed-tones kind of a Capital. digging around bits of crustacean body charcoal grill, will be offered alongside
But amid all this swagger, one place took place – you wouldn’t exactly go for the armour when she could have it in a dainty Josper-grilled seafood: think grilled Dublin
a step back in the past year. The Capital is buzz, though with wood-panelled walls pile that tasted as elegant as it looked. The Bay prawns and hand-dived scallops. There
the ever-so-smart restaurant in the ever-so- and chairs upholstered in rich crimsons, tornedos Rossini – beef filet mignon pre- will also be a hotly-anticipated hot dog on
discreet Capital Hotel, hidden on a quiet it’s quietly sumptuous. sented with a slice of fried foie gras on top, the menu and plenty more. Remember it
street between Harrods and Harvey Nicks. It You could and should go for Ponchelle’s in a rich jus with slices of truffle – seemed will all be washed down with an award-
was winning Michelin stars when Marcus cooking, which turns out to be right on the a natural extension of the foie gras ravioli winning cocktail list too. Exact date of
Wareing was still cleaning his mum’s money. We started with some plump scal- starter, and was equally rich and almost as opening tbd. 11 Langley Street, WC2,
plates, and Koffman protégé Eric Chavot lops served with puy lentils and bacon in a good. Ponchelle being steeped in classic www.thehawksmoor.com.
picked up two in his ten year reign in the gently curried sauce, and foie gras ravioli French cuisine, the sauces for every dish
kitchen. His departure last autumn in in a foamy truffle sauce. These were both were as devilishly delicious as the meat CAFE LUC JOINS MARYLEBONE FRAY
search of new projects saw those stars get rich, enlivening dishes cooked with care and fish they surrounded, and it was a A new venture from the man behind Le
vapourised when Michelin brought out its and precision, and the ravioli was particu- pleasing touch to be supplied with a spoon Pain Quotidien, Cafe Luc is a father-daugh-
2010 guide. larly fine – I’ve not had foie gras in ravioli for each course to help polish it all off. ter project with a Belgian twist: think
The new chef is fellow Frenchman before, but the slippery, slidey textures of The service is deferential and slick, and homemade salted caramel, vanilla and
Jerome Ponchelle, formerly of Wiltons and the pasta and the meat, and the sweetness the wine collection is impressive – we speculoos ice cream – like gingerbread ice
The Connaught. In trying to win those stars of the foie against the earthy, perppery enjoyed a few drops from the owner David cream, but better. Otherwise expect good
back, he has the advantage of a restaurant magic of the truffle foam, made for a heav- Levin’s own winery. It’s a restaurant that brasserie fare. Much will delight and sur-
where the gastronomic ambition is in enly dish. lives up to its classy history in every ele- prise: breakfast includes warm quinoa with
directly opposite proportion to its size – it’s Next up was lobster thermidor and beef ment, and with Ponchelle’s tenure The banana and sultana, for example. 50
tiny. Just off the hotel’s austere little lobby, tournedos Rossini. The lobster was served Capital appears to be in a safe set of hands. Marylebone High Street, www.cafeluc.com.

Whole Native Lobster & Chips

£24.50
With A Glass Of J&B NV Champagne

Subject to availability until 16th August

Celebrating Justerini & Brooks 250th Anniversary


Boisdale of Belgravia - Boisdale of Bishopsgate - The Lamb at Hindon
15 Eccleston Street, Swedeland Court, Hindon near Salisbury,
London, SW1W 9LX 202 Bishopsgate Wiltshire, SP3 6DP
020 7730 6922 London, EC2M 4NR 01747 820 573
020 7283 1763

www.boisdale.co.uk
CITYA.M. 20 JULY 2010 Lifestyle | TV& Games 25

BBC1 BBC2 ITV1 CHANNEL4 FIVE


TERRESTRIAL
6pm BBC News
6.30pm BBC London News
6pm Eggheads: Quiz show,
hosted by Dermot Murnaghan.
6pm London Tonight
6.30pm ITV News
6pm The Simpsons
6.30pm Hollyoaks
6pm Home and Away
6.25pm Don’t Stop Believers
TV PICK
7pm The One Show 6.30pm Antiques Road Trip: 7pm Emmerdale 7pm Channel 4 News 6.30pm Live from Studio Five
7.30pm EastEnders: BBC News James Lewis and David Harper 7.30pm CHOICE Children’s 7.55pm 4thought.tv 7.30pm Michaela’s Zoo Babies
8.30pm Holby City shop in Derbyshire. Hospital 8pm CHOICE The Ugly Face of 8pm Mussolini: The Rise of
9.30pm Outnumbered 7pm Antiques Master 8pm Piers Morgan On: The Beauty: Dr Christian Jessen Italian Fascism – Revealed: Five
10pm BBC News 7.30pm University Challenge journalist travels to Monte explores the pitfalls of seeking News at 9
10.25pm Regional News 8pm Top Gear: The presenters Carlo. cosmetic surgery abroad. 9pm CSI: Miami
10.35pm The Bionic Vet build their own motorhomes. 9pm The Bill: An elderly widow 9pm The Fairy Jobmother 10pm CSI: NY: Five News
11.05pm FILM Forces of 9pm CHOICE That Mitchell and is raped. Claire Bloom guest 10pm Big Brother 11.10pm Update
Nature: Comedy, with Sandra Webb Look stars. Rhod Gilbert and the Award- 10.55pm Don’t Stop Believers THAT MITCHELL AND WEBB LOOK
Bullock. 1999; Weatherview 9.30pm Shooting Stars 10pm ITV News at Ten Winning Mince Pie BBC2, 9PM
11pm CSI: Crime Scene
12.50am Sign Zone: The Edible 10pm Miranda 10.30pm London News 12.10am The Poker Lounge Investigation David Mitchell and Robert Webb
Garden 10.30pm Newsnight: Weather 10.35pm Ladette to Lady 1.10am Big Brother: Live 3am 12am The FBI Files 1am introduce a man who works in a tiny
1.20am Sign Zone: The Silence 11.20pm How to Beat Tough 11.35pm October Road Beach Volleyball 4am KOTV Boxing SuperCasino 4.05am House Doctor office, and demonstrate how to reap the
2.20am Sign Zone: Raymond Blanc: Times: Money Watch 12.30am The Zone; ITV News Weekly 4.25am MSA British 4.30am House Doctor 4.55am rewards of cashing in unused plutonium.
Kitchen Secrets 2.50am Sign Zone: 12.20am University Challenge Headlines Rallycross Championship 4.55am Animal Rescue Squad 5.10am The
Theo’s Adventure Capitalists 12.50am BBC News 2.30am The Jeremy Kyle Show The Grid 5.25am World Sport New Tomorrow 5.35am-6am
3.50am-6am BBC News 3.50am-6am Close 3.25am-5.30am ITV Nightscreen 5.55am-6.20am The Hoobs Michaela’s Wild Challenge

SKY SPORTS 1 Ride 11.30pm Mountain Bike 10pm 16 and Pregnant 11pm 10pm The Ricky Gervais Show 3.50am Nasa’s Greatest
SATELLITE & CABLE

7pm Live Darts 11pm World 12am Thinking Tackle Criminal Minds 12am CSI 2am 10.30pm The Cleveland Show Missions 4.40am Unsolved
Countdown to the 2010 Ryder 1am-3am Bowls So You Think You Can Dance 11pm King of the Hill 12am- History 5.30am-6am How
Cup 11.30pm Football Asia 3am The Fresh Prince of Bel- 6am Big Brother: Live Does That Work?
12am Football’s Greatest BRITISH EUROSPORT Air 3.50am Maury 4.40am
12.30am Soccer AM 7pm Boxing 9pm Cycling Nothing to Declare 5.30am- HISTORY DISCOVERY HOME &
1.30am Darts 5.30am-6am 9.30pm Cycling: Tour de 6am Home Shopping 7pm The Roman Invasion of HEALTH CHILDREN’S HOSPITAL
Football’s Greatest France 10.30pm Planet Britain 8pm How Britain Was 7pm Test Tube Babies 8pm 10 ITV1, 7.30PM
Armstrong 10.35pm World BBC THREE Built 9pm Britain AD: King Years Younger 9pm Raising 10 Doctors diagnose 10-month-old Dolly
SKY SPORTS 2 Touring Car Championship 7pm Snog, Marry, Avoid? Arthur’s Britain 10pm Inside Kids: The Hayes Way 10pm Jon Thompson is having a hiatus hernia and
4.30pm Live ECB 40 League 11.05pm Rallying 11.35pm- 7.30pm Don’t Tell the Bride the World of Henry VIII 11pm and Kate Plus 8 11pm Plastic is in need of an emergency operation.
Cricket 10pm Countdown to 12.35am Cycling 8.30pm Underage and How the West Was Made Surgery 12am Raising 10 Kids John Thomson narrates.
the 2010 Ryder Cup 10.30pm Pregnant 9pm Danielle Lineker 12am How Britain Was Built 1am Jon and Kate Plus 8 2am
Poker 11.30pm Golfing World ESPN – My New Stepfamily 10pm 1am The Roman Invasion of Plastic Surgery 3am 10 Years
12.30am Countdown to the 7pm AFL Review Show 8pm EastEnders 11pm Mongrels Britain 2am Ancient Younger 4am Baby Tales 5am-
2010 Ryder Cup 1am Challenge Eredivisie 9.30pm Serie A 11.30pm Family Guy 12.15am Discoveries 3am Cities of the 6am Baby Whisperer
Series Golf 1.30am World Football 10pm Russian Premier Danielle Lineker – My New Underworld 4am-5am
Match Tour Sailing 2.30am League Review 11pm AFL Stepfamily 1.15am Underage Decoding the Past SKY1
Powerboating 3am Poker Review Show 12am X Games and Pregnant 1.45am Bizarre 8pm Ouch! Sextuplets 9pm
4am-4.30am Countdown to Classix 1am Press Pass 2010 ER 2.15am Mongrels 2.45am DISCOVERY Extraordinary People: Women
the 2010 Ryder Cup 1.30am NHRA Drag Racing Don’t Tell the Bride 3.45am 8pm How Do They Do It? who suffer constant physical
4.30am-5am Basketball: FIBA Snog, Marry, Avoid? 4.15am 8.30pm How It’s Made 9pm arousal. 10pm House 12am My
SKY SPORTS 3 World Magazine The Real Hustle Undercover River Monsters 10pm Surviving Pet Shame 1am Inside 1.50am THE UGLY FACE OF BEAUTY
7pm Countdown to the 2010 4.45am-5.15am Bizarre ER Disaster 11pm I Was Bitten Road Wars 2.40am Oops TV CHANNEL4, 8PM
Ryder Cup 7.30pm LIVING 12am Deadliest Catch 1am 3.30am Shear Genius 4.20am Dr Christian Jessen explores the pitfalls
Powerboating 8pm World 7pm Four Weddings 8pm E4 Bear Grylls: Born Survivor Tim Gunn’s Guide to Style of seeking cosmetic surgery abroad,
Match Tour Sailing 9pm Britain’s Next Top Model 7pm Hollyoaks 7.30pm 2am Chris Barrie’s Massive 5.10am-6am Are You Smarter highlighting the cases of women who
Premiership Years 11pm Ocean 9pm Dating in the Dark Friends 9pm Smallville Speed 3am Weaponology Than a 10 Year Old? suffered botched operations.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
17 17 14 7 13 35 
24 10
29 11 14  
45
Place the numbers from 1 to 9 in each empty cell so that each 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 6 15
26
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 12 9 10
   
above or to the left of it. 8 15
39 17 
You can only use the digits 1-9
   and you must not use the
14
3 11   
same digit twice in a block.
   The same digit may occur 12
12 33
22
10 16 27

  more than once in a row or


column, but it must be in a
8
16 13
4 11
  

  separate block. 34
15 16
13

45
    6 22
 

  ACROSS DOWN
1 Indian lute (5) 1 Muffler (5)
 
   WORDWHEEL E E
4 Adult female (5)
7 Beat severely with
a whip or rod (4)
2
3
4
Plea of being elsewhere (5)
Went faster (3)
For what reason? (3)
Using only the letters in the Wordwheel, you have 8 One more time (5) 5
   ten minutes to find as many words as possible,
V A 9 Imperial units
Cocktail of vermouth
and gin (7)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E of length (5)
11 Saying: ___ breeds
6
10
Thoroughly unpleasant (5)
Puts a name to (5)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
R L contempt (11)
15 Product of a hen (3)
12 Definition (7)
13
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
N B 16 Ability to form 14
Hawaiian wreath (3)
___ Khan, Islamic
mental images of religious leader (3)
QUICK CROSSWORD things or events (11) 16
SUDOKU In snooker, to pocket
8 9 5 8 1 1 6
5 8 1 6 7 3 2 4 9          19 Projecting bay the cue ball after
6 7 $ , ' 6 0 , 7 +
, / , $ 2
2 6 3 5 2 1          window (5) hitting another (2-3)
( & 0 $ & 5 $ 0 ( 1 4 2 9 5 1 3
         21 Trail left by an 17 Conical tent (5)
6 & $ 0 3 . $ 3 8 6 2 5 7
7 = / 8 & ( 1 7
         animal (5) 18 Easily agitated or
8 9 4 7 7 6 8 9
         22 Slender double-reed
$ % $ 6 (
( 5 $ 6 (
, '
5
, 2
7
7
5
9
6
3 1 4
4 5 2
4 3
1 8 2
WORDWHEEL          instrument (4) 20
alarmed (5)
Destiny (3)
) / & 8 5 6 (         
& 2 1 7 5 2 / $ $ 7 2 3 9 2 1 The nine-letter word 23 Conflict (5) 21 Concession given
        
5 ( ( 7 ' 3 2 9 6 1 8 5 7 4
was MASCULINE 24 Large showy to mollify (3)
+ ( 5 ' 6 7 ( ( 1 6 9 7 9 8 8 9 6         
flower (5)
Sport
26 CITYA.M. 20 JULY 2010

Results
CRICKET
CLYDESDALE BANK 40 - GROUP A: Sussex 313-6 (E C
Joyce 117, L J Wright 95) v Worcestershire 154. Sussex
(2pts) beat Worcestershire by 159 runs.
Casey sweats on Cup place
1ST TEST MATCH (Galle) Sri Lanka 256-2 (68.0 overs) (K C
Sangakkara 103) v India. No play due to rain. Casey slipped out of Open con-

GOLF
1ST ODI — (Glasgow) Scotland v Bangladesh. Match aban- tention with a final-round 75.
doned without a ball being bowled. BY JON COUCH Picture: ACTION IMAGES
CYCLING PAUL CASEY’S disastrous final round
TOUR DE FRANCE (Pamiers - Bagneres-de-Luchon, 187.5km)— at the Open on Sunday has left him RYDER CUP | EUROPEAN POINTS
Stage 15: 1 Thomas Voeckler (Fra) Bbox Bouygues Telecom
4hrs 44mins 51secs, 2 Alessandro Ballan (Ita) BMC Racing
still sweating on his Ryder Cup place.
Team at 01.20, 3 Aitor Perez Arrieta (Spa) Footon-Servetto at Captain Colin Montgomerie names
same time, 4 Lloyd Mondory (Fra) AG2R La Mondiale at 2.50, 5 his European team for Celtic Manor in
WORLD POINTS LIST
Luke Roberts (Aus) Team Milram at same time, 6 Francesco
Reda (Ita) Quick Step at same time, 7 Alberto Contador six weeks time, but, as it stands, Casey 1 Lee Westwood (Eng) 422.01
Velasco (Spa) Astana at same time, 8 Samuel Sanchez is outside the nine players in automat- 2 Rory McIlroy (NI) 271.21
Gonzalez (Spa) Euskaltel - Euskadi at same time, 9 Denis ic qualifying positions and is left need-
Menchov (Rus) Rabobank at same time, 10 Brian Vandborg 3 Graeme McDowell (NI) 244.15
(Den) Liquigas-Doimo at same time. Selected Others: 48 ing a wild card to qualify.
Bradley Wiggins (Gbr) Sky Professional Cycling Team at 9mins The world No8 began the final 4 Luke Donald (Eng) 215.59
35secs, 104 Geraint Thomas (Gbr) Sky Professional Cycling round second on the leaderboard at 5 Ian Poulter (Eng) 211.24
Team at 26.04, 113 Mark Cavendish (Gbr) Team HTC - Columbia
at 28.49, 141 Steven Cummings (Gbr) Sky Professional Cycling St Andrews, four shots behind eventu- 6 Edoardo Molinari (Ita) 202.62
Team at same time, 145 Daniel Lloyd (Gbr) Cervelo Test Team al winner Louis Oosthuizen. 7 Justin Rose (Eng) 190.42
at same time, 151 David Millar (Gbr) Garmin - Transitions at A stronger challenge would surely
same time, 170 Jeremy Hunt (Gbr) Cervelo Test Team at same
time. General Classification: 1 Alberto Contador Velasco (Spa) have assured Casey of a place in 8 Martin Kaymer (Ger) 181.58
Astana 72hrs 50mins 42secs, 2 Andy Schleck (Lux) Team Saxo Montgomerie’s top nine, but a disap- 9 Padraig Harrington (Ire) 176.27
Bank at 0.08, 3 Samuel Sanchez Gonzalez (Spa) Euskaltel -
Euskadi at 2.00, 4 Denis Menchov (Rus) Rabobank at 2.13, 5 pointing round of 75 and a joint-third 10 Francesco Molinari (Ita) 160.86
Jurgen Van Den Broeck (Bel) Omega Pharma-Lotto at 3.39, 6 finish wasn’t enough to guarantee 12 Paul Casey (Eng) 150.04
Robert Gesink (Ned) Rabobank at 5.01, 7 Levi Leipheimer automatic qualification.
(USA) Team Radioshack at 5.25, 8 Joaquin Rodriguez (Spa)
Team Katusha at 5.45, 9 Alexander Vinokourov (Kaz) Astana at But Montgomerie has given the 33-
7.12, 10 Ryder Hesjedal (Can) Garmin - Transitions at 7.51. year-old hope that he will feature as EUROPEAN POINTS LIST
Selected Others: 23 Bradley Wiggins (Gbr) Sky Professional one of his three wild card picks after
Cycling Team at 17mins 44secs, 72 Geraint Thomas (Gbr) Sky 1 Lee Westwood (Eng)
praising his Ryder Cup hopefuls for
Professional Cycling Team at 1.33.12, 149 Steven Cummings
(Gbr) Sky Professional Cycling Team at 2.47.18, 151 Mark their showing in the Open. the Masters, we’re contending here and Sergio Garcia will also need a late
2 Graeme McDowell (NI)
Cavendish (Gbr) Team HTC - Columbia at 2.49.43, 157 David Speaking prior to Sunday’s final again and who says we won’t do so surge to be assured of a place. 3 Ian Poulter (Eng)
Millar (Gbr) Garmin - Transitions at 2.57.19, 163 Daniel Lloyd
(Gbr) Cervelo Test Team at 2.59.45, 166 Jeremy Hunt (Gbr) round, Montgomerie said: “Things again at the USPGA next month? Montgomerie is also due to 4 Rory McIlroy (NI)
Cervelo Test Team at 3.01.58. couldn’t be going much better really “With Justin Rose winning twice in announce his two vice-captains for 5 Martin Kaymer (Ger)
when you look at the leaderboard, America, it’s been a fabulous year for the event this afternoon.
TODAY’S DIARY with Casey [Lee] Westwood, [Martin] British golf, an amazing standard of Jose Maria Olazabal looks unlikely 6 Francesco Molinari (Ita)
(Football 7.45pm unless stated) Kaymer and [Henrik] Stenson. They golf, with British players battling to continue the role he had under 7 Miguel Angel Jimenez (Spa)
UEFA Champions Lge Second Qualifying Round
Second Leg
are all up there doing you proud. against each other.” Nick Faldo two years ago, as he is suf- 8 Ross McGowan (Eng)
HB Torshavn (0) v SV Red Bull Salzburg (5) (5pm) .................................... “We’ve had our first British winner Casey, however, is not the only top fering with rheumatism, leaving 9 Paul Casey (Eng)
Koper (1) v Dinamo Zagreb (5) (7.15) ................................................................ of the US Open for 40 years [Graeme European to be sweating on his place. Thomas Bjorn, Paul McGinley and
Renova (0) v Omonia Nicosia (3) (3.30) ............................................................ McDowell], Lee Westwood almost won Padraig Harrington, Rose, Stenson Bernhard Langer as the favourites. 10 Luke Donald (Eng)
Rudar Pljevlja (0) v Litex Lovech (1) (7.30)......................................................
The New Saints FC (0) v Bohemians (1) (7pm)..............................................
Dinamo Tirana (1) v FC Sheriff (3) (5pm) ........................................................
Friendly Matches: Athlone Tn v Port Vale (7.30), Bath City v
Exeter, Bishop’s Stortford v Lincoln City, Brentford v Wycombe
(8pm), Bromley v Dag & Red XI, Burton Albion v Sheff Utd, Bury
v Leeds, Crewe v West Brom (7.30), Darlington v Sheff Wed
(7.30), Gillingham v Peterborough, Matlock Tn v Chesterfield,
Tigers’ promotion for Schleck’s left in a wreck
Cockerill and O’Connor as Contador takes charge
Newcastle Tn v Macclesfield (7.30), Northwich v Stockport,
Oldham v Wigan, Preston v Blackburn, Salisbury v Aldershot,
South Shields v Hartlepool (7.30), Stevenage v Norwich, Walsall v
Wolverhampton, Welling v Millwall XI, York v Barnsley,
Rotherham v Leicester, Thurrock v Dag & Red.
CRICKET
LV County Championship - Division One—day 1 of 4:
Somerset v Kent (Taunton), Durham v Lancashire (Emirates
Australia international Matt second deficit into an eight second

Durham ICG), Essex v Yorkshire (Chelmsford), Warwickshire RUGBY UNION CYCLING


v Nottinghamshire (Edgbaston). Division Two—day 1 of 4: BY JON COUCH O’Connor moving up to head coach. BY JON COUCH lead.
Surrey v Northamptonshire (Brit Insurance Oval). “Leicester Tigers is a unique club “My stomach is full of anger,”
Clydesdale Bank 40 - Group B: Derbyshire v Gloucestershire RICHARD COCKERILL has been where so many people work very hard ANDY SCHLECK has declared war on Schleck raged. “The race is not fin-
(Derby). rewarded for leading Leicester to to get the team into positions to com- his Tour de France rivals after a ished and I want to take my revenge. I
1st Test Match—day 3 of 5: Sri Lanka v India (Galle). back-to-back Premiership titles by pete for major honours. mechanical failure saw him lose the can end it like a champion.”
1st ODI: Bangladesh v Holland (Glasgow). being promoted to the role of director “This is one of those special jobs in yellow jersey to defending champion Thomas Voeckler won the stage
5th Women’s ODI: England v New Zealand (Lord’s). of rugby at Welford Road. the world of sport and I feel privi- Albert Contador. between Pamiers and Bagneres-de-
CYCLING Since taking over as head coach leged to be in this position.” The Luxembourg rider attempted Luchon – the fifth victory for a
Tour de France - Stage 16 (BagnËres-de-Luchon - Pau; 199.5 from Heyneke Meyer in 2009, the for- Centre O’Connor added: “Leicester to challenge Contador near the sum- Frenchman this year.
km). mer England international has guided Tigers stands right at the top of world mit of the final climb of yesterday’s l Meanwhile, British track star
the Tigers to successive domestic titles rugby in terms of reputation and I’ve 15th stage before his chain came off Victoria Pendleton says she will miss
and the 2009 Heineken Cup final. thoroughly enjoyed working here and jammed his rear wheel. the Commonwealth Games in Delhi
SPORTS EDITOR JON COUCH Now, he has agreed a new deal to with a great squad of players and I’m Contador seized the advantage to in October to focus on the European
email sport@cityam.com become director of rugby with former very excited about the future.” finish in seventh place – turning a 31- Championships.

SPORT | IN BRIEF
Games cost trimmed by £27m tle, prompting some experts to predict he
OLYMPICS: London 2012 chiefs have cut will abort his comeback.
Strauss: KP will come good
£27m from the cost of staging the But Haug said: “Michael will concen-
Games in response to the government trate for the rest of the year on achieving Strauss said. “He has had a “Kevin wants to be a great cricketer

CRICKET
slashing public spending. the absolute best results. Next year he BY JON COUCH tough time, there is no and he knows the way to do that is by
The savings have come from efficiency will go for the title. He is still totally cool doubt about that. scoring runs consistently and putting
measures and procurement gains, a and relaxed, he wants success – and that CAPTAIN Andrew Strauss believes “He has not scored as in match-winning performanc-
report published yesterday revealed. impressed us all.” Kevin Pietersen can rediscover his many runs as he has es and I have no worries that
In total the Games will now cost the best form in the forthcoming Test done in the past. But he he will do that.”
public sector £9.3bn. Mayweather won’t be rushed series with Pakistan. is a high-quality crick- l Meanwhile, England
Minister for Sport and the Olympics BOXING: Floyd Mayweather insists he is Pietersen has suffered a dismal run eter and he will come spinner Graeme
Hugh Robertson said: “With over two- in no hurry to fix a long-anticipated of form with the bat in recent back and play match- Swann has been
thirds of the construction phase com- super-fight with Manny Pacquiao. months, failing to score a half-century winning innings for us. charged with drink
plete, we are in an excellent position.” The latest deadline for a deal to be in his last 17 one-day internationals. “He has had a bit of a driving.
agreed passed on Saturday, meaning But Strauss believes the 30-year- break and that has been Swann was stopped
Schumacher ‘to vie for 2011 title’ Pacquiao is free to line up an alternative old, inset, who has just become a well received. A new addi- in the West Bridgford
FORMULA ONE: Mercedes boss Norbert opponent for his next bout. father for the first time, is due a big tion to the family changes area of Nottingham on
Haug insists Michael Schumacher is But the American said: “I’m not inter- score and is backing him to lead the your priorities a bit and 2 April and has will
unruffled by his disappointing return to ested in rushing to do anything. I’m not England batting attack in the four- you need to get your life in appear before the city’s
the track and will not walk away. really thinking about boxing right now. match series. order. I think he will magistrates on 16 August – two
The German seven-time champion is I’m just relaxing. I fought about 60 days “Kevin has just turned 30 but he come out and play really days before the third Test
well off the pace in the current title bat- ago, so I’m just enjoying myself.” has got a lot of cricket left in him,” well against Pakistan. against Pakistan at The Oval.
CITYA.M. 20 JULY 2010 Sport | Football 27

Arsenal set to join


Spurs and place
ban on vuvuzelas
sentatives from the local licensing


PREMIER LEAGUE
authorities, the club will not be per-
BY FRANK DALLERES mitting vuvuzelas or similar instru-
ARSENAL are set to follow the lead of ments into White Hart Lane on
rivals Tottenham and ban vuvuzelas matchdays.
for the coming season, City A.M. can “We are concerned that the pres-
reveal, as English football braces itself ence of the instruments within the
for an invasion of the controversial stadium pose unnecessary risks to
World Cup horns. public safety and could impact on the
The South African instruments ability of all supporters to hear any
were inescapable at this summer’s emergency safety announcements.
tournament, where their atonal parp- “We are very proud of the fantastic
ing often drowned out crowd noise, atmosphere that our supporters
and have since hit the British high produce organically at White Hart
Cole has made just street. Lane and we are all very much
28 league starts But some club chiefs, anxious to looking forward to this continu-
for Chelsea in the preserve the terrace atmosphere, ing into the forthcoming sea-
last two seasons have moved quickly to son.”
Picture: PA declare their grounds Arsenal are set to confirm a
vuvuzela-free zones. ban within days, but Wenger
Tottenham joined the list (left) has already said he

Rush: Signing of Cole


yesterday and it is under- “would sign a petition to get
stood Arsenal, whose man- rid of them tomorrow”. “It
ager Arsene Wenger has kills one of the charms of
called them “a nightmare”, football: the songs,” he
are to take the same step, added.
but are yet to make an offi- Elsewhere in London,

can light up the Kop


cial announcement. only Brentford have out-
A Spurs spokesman told lawed the vuvuzela, although
City A.M.: “Following discus- other clubs said their policies
sions with the police and repre- were currently under review.

VUVUZELAS... CAN I BRING MINE?


whether that’s an England interna- to just 28 Premier League starts NO

PREMIER LEAGUE Decision has been taken and


tional or a foreign international,” through injury and Chelsea’s rota-
BY JON COUCH Rush said. “We’ve got a great new tion policy. ARSENAL is set to be announced
LIVERPOOL legend Ian Rush reckons manager in Roy Hodgson and he Subsequently, Cole was released
Joe Cole will be a huge hit at Anfield knows what he wants and he can talk after six years at Stamford Bridge, in YES
after the England midfielder agreed these players into signing for our which time he won three Premier Club says there are no plans
terms on a four-year deal yesterday. club. This is the signing supporters League titles and two FA Cups. It was CHELSEA for a ban at Stamford Bridge
The former Chelsea man will wanted and it’s a big boost for them. reported the club refused to agree to
undergo a medical in the next 24 “You look at last season when we his £90,000-a-week wage demands. YES
hours before he is unveiled by Reds went into it not hoping but thinking Hodgson beat off competition from A ban has not even been
boss Roy Hodgson. we were going to win the league. This Arsenal and Tottenham to land the FULHAM talked about, Cottagers say
And Rush, the club’s all-time season people are thinking, ‘are we playmaker, whose arrival is being
record scorer, believes Cole’s signing going to finish in the top four?’ seen as a key negotiating tool in keep- NO
is a statement of intent from the new “I think this sends a sign out to ing star players Steven Gerrard and Spurs have banned the horn
manager. Liverpool supporters that the club do Fernando Torres at the club. TOTTENHAM on safety grounds
“Liverpool might not have been mean business.” Cole will be seen as a direct replace-
successful as we would have liked to Cole’s arrival on Merseyside signals ment for Yossi Benayoun, who moved YES
have been recently but this shows we the end of a frustrating last two years in the opposite direction to Stamford Club don’t allow bands but
can still attract top name players, for the 28-year-old, who was restricted Bridge in a £5m deal. WEST HAM have no policy on vuvuzelas

YES
Capello not in a hurry to Fifa chiefs make CRYSTAL PALACE
No ban in place at the cash-
strapped Championship club

sudden U-turn on YES


reveal new English coach technology vow
MILLWALL
Lions say they don’t antici-
pate a vuvuzela ban
YES
No ban in place, but issue is
his new man on board and is yet to
QPR under review

ENGLAND
put forward names of any potential
NO

BY JON COUCH GOVERNANCE


candidates. “Fabio volunteered he
FABIO CAPELLO is to be given an extra wanted another English coach to join WORLD governing body Fifa has back- Vuvuzelas are NOT welcome
helping hand in his attempts to turn his set-up when we met him last tracked on its pledge to reconsider BRENTFORD at Griffin Park
around England’s fortunes. week,” said Club England managing implementing goal-line technology in
The fall-out from the Three Lions’ director Adrian Bevington. the wake of Frank Lampard’s disal- YES
poor World Cup campaign has forced “We were pleased to hear this as we lowed World Cup strike. Horn blowers: flock to the
Capello into adding a third English want to introduce a wider pool of Fifa president Sepp Blatter vowed to CHARLTON Valley, there’s no ban there
coach to work alongside Stuart Pearce English coaches moving forward. reopen the debate after Lampard’s
and Ray Clemence. “Fabio was clear he didn’t want us legitimate effort was missed by all YES
The new man will be in place to offer names immediately, stressing officials as England crashed out to Club is discussing the matter
before the start of the Euro 2012 qual- he wanted more time to consider Germany. LEYTON ORIENT but as yet no ban in place
ifiers, which get underway with a who it should be, then discuss it in Blatter pinpointed tomorrow’s
home game against Bulgaria at more detail with Sir Trevor Brooking meeting of the International Football NO
Wembley, on 3 September. during the first week of August. Association Board in Cardiff as the No ban yet but issue will be
Capello is due to meet the FA’s “Therefore, any speculation as to occasion for goal-line technology to DAGENHAM AND REDBRIDGE raised in meeting on Friday
director of development Sir Trevor who it might be cannot be made with be addressed.
Brooking next month to discuss the
appointment with a number of
any real conviction. Fabio hasn’t
offered his preference, we haven’t
But Fifa admitted yesterday that the
issue would not be on the agenda, and
YES
Vuvuzelas have not been
young coaches being touted. said ours and no one has been that any possible discussion would
But the Italian is in no rush to bring approached.” start in October at the earliest.
BARNET banned from Underhill

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