BUSINESS WITH PERSONALITY

Issue 1,342 Tuesday 15 March 2011 www.cityam.com FREE

n NIKKEI FALLS SIX PER CENT IN FIRST HOUR OF TRADING n THIRD NUCLEAR REACTOR EXPLODES

JAPAN REACTOR CRISIS

RAISES NUCLEAR FEARS
JAPAN QUAKE
▲

BY MARION DAKERS
JAPAN fought to keep control of its
damaged nuclear power plants yes-
terday, as explosions at two more of
the Fukushima plant reactors fuelled
fears of a partial meltdown from
failed cooling systems and ham-
mered the markets this morning.
Japan’s Nikkei 225 index fell six
per cent in the first hour of trading
this morning, after suffering the
fastest decline since October 2008
yesterday. Utility, transport and
manufacturing stocks were hit hard Fukushima’s reactor 3
again as the country’s weakened threw off black smoke
infrastructure hampered the ongo- after an explosion at
ing rescue efforts. 11am yesterday
World stocks slid to six-week lows
yesterday as traders reacted to the
unfolding disaster.
Officials reported an explosion at
Fukushima’s reactor 2 early this
morning, where yesterday workers
had raced to prevent meltdown
“The nuclear plants
when the improvised seawater cool-
ing system failed leaving nuclear
have been shaken,
rods temporarily exposed.
Non-essential workers were evac-
flooded and cut off
uated from Fukushima early this
morning after fears of a radiation
from electricity”
leak. Yukiya Amano,
Plant operator Tokyo Electric International Atomic
Power Company (TEPCO) said the Energy Agency
rods in Fukushima’s reactor 2 were
half-covered with water at 9am
local time (midnight GMT), and that
levels continued to improve in all being continued.” sent flames and black smoke into Across the country, officials said without water. “The Japanese gov-
the units. Chief cabinet secretary Yukio the air at 11am local time yesterday. at least 10,000 people have died ernment is currently taking the nec-
“There is the possibility that dam- Edano said earlier yesterday some Radiation levels at the plants, since the earthquake and subse- essary precautions – evacuating
age was done to the suppression damage has been detected at reac- located 240 km (150 miles) north of quent tsunami on Friday. nearby communities, putting peo-
pool,” said a spokesperson during a tor 2, though no data was available Tokyo, climbed from 1,941 to 8,217 About 450,000 people have been ple in safe shelters and distributing
news conference, referring to the this morning. microsieverts an hour at 9am local evacuated nationwide in addition potassium iodide to those at risk,”
store of water under the reactor A separate blow-out at time, TEPCO said – well above the to 80,000 from the exclusion zone the World Health Organisation said.
meant to prevent meltdown. “The Fukushima’s reactor 3, thought to legal limit of 500 microsieverts an around the nuclear power plants, FOCUS ON JAPAN: P2, P3, P4,
water injection operations are be caused by a hydrogen build-up, hour. and almost 2m households remain MARKETS: P15; P18

FTSE 100 ▼ 5,775.24 -53.43 DOW ▼ 11,993.16 -51.24 NASDAQ ▼ 2,700.97 -14.64 £/$ ▲ 1.62 +0.01 £/¤ 1.16 unc ¤/$ ▲ 1.40 +0.01 Certified Distribution
31/01/11 - 27/02/11 is 107,265
 2 News
Japan counts the
cost of a truly
horrific tragedy
EDITOR’S LETTER
ALLISTER HEATH
SLOWLY but surely, more horror sto-
ries are emerging from the rubble
that is Tsunami-hit Northern Japan.
The death toll will undoubtedly be
many orders of magnitude higher
than the few thousand so far con-
firmed by the authorities, while the
big issue last night was the extremely
serious problem at several Japanese
nuclear power plants. While this
series of accidents still appears to be
no Chernobyl, there is some radiation
leakage and the situation is far more
dangerous than it looked to be on
Sunday. Outsiders are finding it
impossible to work out true levels of
risk. If the situation isn’t resolved, a
second wave of panic is likely, in the
markets and among investors if not
among the astonishingly stoic
Japanese public.
As to the actual economic damage,
the Kobe earthquake of 1995 pro-
duced losses worth around two per
cent of GDP; this disaster could cost
up to five per cent. Rich economies
inevitably bounce back from severe
natural disasters; after a sharp slump
in GDP, output inevitably shoots back
up again as reconstruction efforts
begin. It will be no different this time,
despite Japan’s excessive public debt
and unfavourable commodity prices.
But one should not confuse a rise
in GDP as repair work kicks in in a
few months’ time with a rise in
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor
Business Features Editor
Katie Hope
Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Micha Theiner
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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wealth. That would be to fall foul of
what Frederic Bastiat called the bro-
ken window fallacy: a country doesn’t
become richer when its assets are
smashed up, even if mending them
temporarily creates new jobs.
Earthquakes don’t boost a nation’s
wealth, they make it poorer;
resources that could have been allo-
cated to other things need to be
diverted to the rebuilding effort. Vast
amounts of Japan’s capital have been
destroyed, including several nuclear
power stations worth at least $5bn
each, as well as tens of billions worth
of housing and commercial property.
One need not agree with the more
extreme estimates of the value of the
destruction – one analyst puts the
destroyed capital at $1 trillion – to see
that replacing what is broken is dif-
ferent to adding to the stock of
wealth. So much for the economics –
today, however, all eyes will be on the
nuclear reactors.
NOT ALL RICH FOLK ARE BANKERS
For those people who hate all bankers
and financiers, the 50p tax rate on
income over £150,000 a year is usually
welcomed as an anti-City tax. It is por-
trayed as a targeted, punitive measure
to exercise retribution for the reces-
sion (which the public attributes
almost exclusively to high-earning
bankers as a class). There is a lot
wrong with this naive argument,
including the fact that the causes of
the crisis were hugely complex and
included central banks’ low interest
rates, government guarantees, intel-
lectual errors about statistical pat-
terns and numerous other policies.
Yet another point is even more fun-
damental: most people on high
incomes don’t actually work in
finance. Jo Johnson, the Tory MP for
Orpington, was keen to find out who
actually paid the tax; the Treasury’s
permanent secretary Sir Nicholas
Macpherson has obliged. Of the
275,000 paying the new 50p tax
(which will reach 52 per cent in April
with extra employee national insur-
ance) only 63,000 work in financial
intermediation, such as banks and
funds. I would guess a few thousand
others on similar incomes yet not in
this list could be described as quasi-
investment bankers (lawyers specialis-
ing in corporate finance and so on).
But the vast majority of those paying
the new tax work in other fields.
The widespread view that the only
rich people in the UK today are
bankers is absurd. A little more than
2,800 people in firms under the
Financial Services Authority’s remit
earned more than £1m in 2009, the
regulator revealed last year. Even if we
were to assume that this number has
gone up, and that other quasi-bankers
(consultants, lawyers, top partners at
professional services firms) ought to
be added in, it is fair to assume that
no more than 4,000 people in City-
style jobs make £1m a year. Yet HMRC
estimates that around 13,000 people
in the UK earn £1m (down 1,000 from
its peak).
Most are the entrepreneurs who
are meant to grow us out of recession,
non-finance company directors, top
business people, entertainers and
footballers. None are to blame for the
crisis – all are being hammered.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
JAPANESE EARTHQUAKE AND TSUNAMI
The third nuclear
reactor of the
Fukushima
Daiichi nuclear
plant is seen
burning after an
explosion in this
satellite image
taken 14 March
Opposite: A tech-
nician in protec-
tive gear scans a
child for signs of
radiation
Pictures:
REUTERS, GETTY
Japan’s insured loss
may surpass $60bn
▲
INSURANCE
BY ALISON LOCK
JAPAN’S tsunami damage may cost
insurers more than $60bn (£37bn), and
lead to premiums rising for the first
time in years, analysts said yesterday.
Reinsurers such as Swiss Re and
Munich Re are likely to consider this a
“one-in-200-year” event, which would
mean they face losses of up to €2bn
(£1.7bn) each.
The losses are likely to count as a
“market-changing event” that would
end the trend of falling insurance pre-
mium rates, Panmure Gordon analyst
Barrie Cornes said. “In our view, the
loss will be so large that it will proba-
bly provide the trigger to ensure a re-
rating of the non-life sector, as
sufficient capacity [capital] is with-
drawn to allow rates to rise,” he said.
WHAT THE OTHER PAPERS SAY THIS MORNING
UK ART MARKET LOSES OUT TO
CHINESE
Britain has lost its position as the
world’s second largest art market to
China, in a sign of intensifying com-
petition and a shift in the geographi-
cal distribution of wealth towards
Asia, according to a new study. The
UK’s share of the global art market
fell by 5 percentage points to 22 per
cent in the four years to 2010.
FULLER’S XIX NOW VALUED AT $100M
Simon Fuller, creator of the American
Idol television series, has signed
Formula One driver Lewis Hamilton
in his first deal since launching XIX
Entertainment, his new media com-
pany that has secured investment in
two deals valuing it at $100m.
While damage to homes is covered
by Japan’s government-backed earth-
quake insurance programme, interna-
tional insurers cover all commercial
property, industry and marine claims.
Goldman Sachs analysts said Swiss
Re would bear SwFr 1.9bn (£1.3bn)
losses if it categorised the catastrophe
as a one-in-200-year event. Rival SCOR
has said it will bear about €185m –
slightly less than the €260m analysts
expected it would bear from a one in
250-year event.
Standard & Poor’s analysts said
Munich Re may also be exposed to
€2bn if it was characterised as a one-
in- 200-year event. They forecast a pre-
tax cost to the firm of €500bn-800bn.
Swiss Re closed 4.5 per cent down
and Munich Re 3.4 per cent lower. In
London, Lloyd’s insurers Catlin and
Beazley ended down 3.2 per cent and
2.83 per cent respectively, but Amlin
SHOPPERS GET WISE TO DODGY
PRICING
Research for furniture retailer CSL
suggests consumers are no longer
fooled by “dodgy pricing policies”.
The study found that almost all con-
sumers think furniture retailers are
guilty of misleading pricing.
PAYE FIASCO: 10,000 HAVE TAX DEBTS
CANCELLED
A quarter of those who appealed
against last year’s shock tax demands
from HM Revenue & Customs had
their tax debts cancelled, it has
emerged. David Gauke, a Treasury
minister, disclosed that 23pc of those
who used the “extra-statutory conces-
sion” A19 were successful.
CITYA.M. 15 MARCH 2011
and Chaucer, which updated the mar-
ket, gained 2.2 per cent and 2.3 per
cent. Jefferies analyst James Shuck
said Amlin’s strong retrocession cover
should cap its liability at about $150-
160m. Chaucer said it had little expo-
sure to Japan’s nuclear industry.
But Shuck added that with a 70 per
cent chance of large aftershocks, loss-
es were likely to rise yet further.
ANALYSIS l Swiss Re
60 SwFr 49.36
59 14 Mar
58
57
56
55
54
53
52
51
50
03 Jan 21 Jan 10 Feb 01 Mar
MCKINSEY SCRAMBLES TO LIMIT
INSIDER TRIAL FALLOUT
McKinsey has launched a concerted
effort to try to reassure clients and
limit the damage to its reputation
from its involvement in one of
America’s biggest insider trading
cases.
OBR CRITICISED OVER MISLEADING
FISCAL FORECASTS
The OBR has come under fire for fail-
ing to include the projected value of
asset sales in forecasts for the public
finances. Andrew Tyrie, chairman of
the Treasury Select Committee, said
not including the estimated proceeds
from assets such as the student loan
portfolio “may give a misleading
assessment” of the country’s finances.
CITYA.M. 15 MARCH 2011
ANALYSIS l A diagram of the nuclear electricity generation process. A meltdown
occurs when there is a catastrophic failure of the reactor core, with a potential for
widespread radiation release.
Containment
building
STEAM
Control
rods
WATER
Reactor
Nuclear
fuel
Primary water loop
Nuclear fears
spark drop in
energy stocks
▲
ENERGY
BY JULIAN HARRIS
STOCKS in nuclear energy companies
and uranium miners plummeted yes-
terday as safety fears threatened to hit
the industry.
In New York trading, uranium min-
ers Cameco and USEC were two of the
main losers, ending the day down
13.42 per cent and 10.56 per cent
respectively.
Meanwhile in France, where over 70
per cent of energy comes from nuclear
power, shares of the partly state-owned
nuclear equipment provider Areva
dropped by 9.61 per cent.
Also in Paris, energy giant EDF saw
shares fall 5.28 per cent, as the whole
CAC 40 Index declined by 1.29 per cent
in the day’s trading.
Areva is bidding to be part of new
nuclear power plants in the UK, at sites
such as Sizewell in Suffolk, and
Hinkley Point in Somerset.
Energy minister Chris Huhne prom-
ised a safety review into the industry,
yesterday.
However, nuclear development
should not be affected in countries
where it is politically favoured, accord-
ing to Jeremy Nicholson of the Energy
Intensive Users Group.
“The UK government sees the
urgency for new, low-carbon energy,”
Power
lines
Turbine
Pump
Secondary water loop
he told City A.M. “There’s little cause for
concern over new plans which incor-
porate robust safety features devel-
oped since the Fukushima plant was
built in 1971. New plants are even
safer, as they should be – we have very
stringent standards in western Europe,
quite rightly.”
Yet in Germany a political furore
broke out yesterday, with chancellor
Angela Merkel forced to back down on
the government’s decision to extend
the life of several nuclear plants.
“We will suspend the extension of
the life of Germany’s nuclear power
stations, which was decided only
recently,” she said.
And in neighbouring Switzerland,
approval procedures for three new
nuclear power stations were suspend-
ed in order to revisit safety standards,
the government announced yesterday.
ANALYSIS l Areva
38
€
36
34
32
20 Dec 7 Jan 27 Jan 16 Feb
FUKUSHIMA DAIICHI NUCLEAR PLANT
Q. WHAT CAUSED THE FUEL TO
OVERHEAT?
A. The failure of the electricity sup-
ply for the cooling pumps. At the
first sign of a tremor, the reactor start-
ed to shut down by inserting the con-
trol rods and the reactor ceased to
produce power. Even after the reactor
has shut down, a nuclear power sta-
tion still produces about 5-10 per cent
of its heat. When the cooling water
stops flowing the fuel dries out and
the temperature rises extremely.
Q.WHAT CAUSED THE EXPLOSION?
A. It is possible that the nuclear
fuel, once it has become uncov-
Generator
31.50
14 Mar
8 Mar
News 3
Q&A
ered, became sufficiently hot to sepa-
rate the water and steam that is
ment, exposing the
bare core to the atmos-
around into the separate components
of oxygen and hydrogen. This mix-
phere.
ture of hydrogen and oxygen explod-
ed. Q.WHAT ARE THE RISKS OF EXPOSURE
TO THE RADIOACTIVE CORE?
Q. HOW DOES THIS COMPARE TO
PREVIOUS DISASTERS?
A. We should take comfort from the
fact that the Japanese authorities,
are saying that the containment that
A. This scenario is far closer to the
Three Mile Island accident in
1979, Pennsylvania – which did not
sits around the reactor, which is a
very strong structure of concrete and
steel, is holding. That is important to
cause any cases of cancer – than to stress.
Chernobyl in 1986. There is a con- • Answers from Dr William Nuttall, of
tainment holding the overheated
core, which in the Three Mile Island
Cambridge Judge Business School, a lec-
turer in technology policy and a lead aca-
case saved the day. At Chernobyl,
the reactor did not have a contain-
demic at the Cambridge Nuclear Energy
Centre
 4 News CITYA.M. 15 MARCH 2011

JAPANESE EARTHQUAKE AND TSUNAMI

Moody’s: Earthquake costs could

accelerate Japanese debt crisis
▲

JAPAN QUAKE
BY JULIET SAMUEL
THE earthquake and tsunami in Japan
could bring forwards a crucial “tip-
ping point” for market confidence in
its sovereign debt, according to
Moody’s Investor Services.
Ratings agencies have so far held off
reviewing the status of Japan’s debt,
which S&P recently downgraded, say-
ing that it will take time for the fiscal
consequences of the tragedy to
become clear. The country’s debt-to-
GDP ratio is forecast to exceed 200 per
cent this year.
Moody’s said it understood that
Tokyo will have to suspend tackling its
debt in order to provide relief to the
millions left homeless by the disaster.
But the agency’s Thomas Byrne said:
“A tipping point may be reached at
some point if the market loses confi-
dence in the soundness of government
finances... The earthquake may have
shifted such a potential tipping point
a bit forward.”
S&P agreed that there would be no
immediate effect on Japan’s rating but
said: “The additional costs will add to
the already existing fiscal weaknesses.”
Around 90 per cent of Japan’s public
debt is owned by domestic savers,
many of them pension funds, which
has so far enabled it to keep interest
rates low despite its high debt load.

North-east Japan has been

devastated by Friday’s
earthquake and following
tsunami Picture: REUTERS

Luxury firms
take a tumble
▲

JAPAN QUAKE
BY MARION DAKERS
THE DISASTER in Japan pummeled
manufacturing and luxury goods
stocks yesterday, alongside insurers
and energy firms, as markets across
the world ended lower.
Burberry, which says it makes a sig-
nificant portion of its profits from its
Japanese licenses, fell 4.3 per cent in
London trading yesterday.
Hermes, which makes 19 per cent
of its sales in Japan, fell 3.1 per cent
in Paris trading.
LVMH, the owner of Moet,
Hennessy and Louis Vuitton, tum-
bled 3.1 per cent as the recovery in
high-end retail looked under threat.
Japan makes up 11 per cent of the
world’s luxury goods sales, ranking
second globally behind the US.
“As far as the European consumer
sector is concerned in the wake of
the earthquake, we believe that the
early cycle recovery rally in Luxury
now seems vulnerable,” said MF
Global.
However, the need for temporary
power to aid rescue efforts propelled
Aggreko to the top of the FTSE risers.
Manufacturing stocks fell on wor-
ries that supply chains will be dis-
rupted. Hitachi’s operations at six
plants in the country remained sus-
pended yesterday, pushing its New
York- and Tokyo-listed shares down
more than 15 per cent.
Peugeot Citroen said yesterday it
has halted production of its electric
cars, which are made in Japan, help-
ing send its shares down 1.9 per cent.
Toyota fell 4.6 per cent after it said
it has suspended all production in
Japan until at least Wednesday.
Boeing shares fell 1.3 per cent in
New York trading after its head of
commercial aeroplanes said the 787
Dreamliner faces further delays if its
Japanese suppliers are disrupted
beyond a few weeks. MARKETS: P15

High-end stocks face pressure

but love for labels will endure
AS anyone who has visited Tokyo cent of Hermes’ sales; 12 per cent
will know, Japan is a voracious con- of Richemont’s sales; and nine per
sumer of luxury labels. A natural cent of LVMH’s sales. PPR’s Luxury
throwaway culture by necessity, Business Group, which owns Yves
thanks to the tiny size of Japanese Saint Laurent and Gucci, gets 16
homes, has led to a constant per cent of sales in the region. All
Verona
V erona 3+ H otels
Hotels Bologna
Bologna Ca Carr H Hire
ire demand for the “latest thing”. were under pressure yesterday
Travel
Travel IInsurance
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double tthe
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difference) Burberry, which gets around 20 upon those who show off wealth at
per cent of its earnings from Japan a time of national crisis – but
thanks to lucrative licensing deals, Japan’s love affair with luxury is
We fly from London Gaat w ick . Price correct as at 8 March 2011. F lights available to book now for traavvel bet ween 28 March and lost 4.68 per cent yesterday, as likely to endure.
29 October 2011, though some launch dattes may var y. Variable charges for hold baggage apply and some payment methods attract traders predicted belt-tightening
a handling feee. See website for details.*Hotel price based on 2 adults stayying (in one room) 7 nights from 13 June 2011. **Car price would hit sales.
based on a small car (pickkeed up at the airpor t) with 7 days
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Mondial Assistance (UK) Limited which is authorised and regulated t by the F inancial Ser vices Authorit y (F SA). For full details on
The luxury firm’s rivals are also
exposed: Japan accounts for 19 per
BOTTOMLINE
best price guarantee, please see easyjet .com Analysis by David Crow
CITYA.M. 15 MARCH 2011 News 5

Renault says
Tchenguiz on sorry over false
attack after spy claims

firm collapses
AUTOMOTIVE

▲
FRENCH carmaker Renault yesterday
made a public apology to three execu-
tives accused of industrial espionage
after the Paris prosecutor said the trio
had no case to answer.
Bank accounts in Switzerland and
▲

REGULATION Tchenguiz were arrested with seven Liechtenstein, alleged to have

BY DAVID HELLIER
EMBATTLED tycoon Vincent
Tchenguiz has blamed last week’s
Serious Fraud Office (SFO) raid for a
series of actions which led to his prop-
erty management company, Peverel
Group, entering administration after
failing to repay a loan.
Bank of America Merrill Lynch
demanded repayment within 24
hours of the raid of a £124.6m loan
plus £11.4m accrued interest, another
Vincent Tchenguiz company,
Consensus Business Group (CBG), said
in a statement.
“Since November 2009 the bank
has agreed not to call in the loan but
as soon as news of the investigation
broke that was it,” said one source
close to the brothers.
Peverel Group manages some
200,000 residential units throughout
the UK and controls a number of sub-
sidiary operating companies
The bank demand came just a day
after Vincent and his brother Robert
other people when police raided
addresses in London and Reykjavik
linked to a Serious Fraud Office
investigation into the collapse of
Iceland’s Kaupthing Bank.
“We have been in consensual dis-
cussions with Bank of America
Merrill Lynch, since late 2009, about
the financial structure of the group
and we regret that their sudden
actions have forced this group in to
administration,” Vincent Tchenguiz
said in a statement.
“We believe that their actions are a
direct result of the very public com-
mencement of the Serious Fraud
Office’s investigation into events sur-
rounding the collapse of Kaupthing
bank.”
Separately Vincent’s brother Robert
issued a statement threatening to sue
the SFO. He said he had asked his
solicitors, Ian Burton and Richard
Sallybanks, now backed up by former
head of public prosecutions Ken
Macdonald, to determine whether
the searches were obtained legally.
Robert (r) and Vincent Tchenguiz are under pressure from the SFO
TIME LINE | AFTER THE RAID
Wednesday 9 March
The Serious Fraud Office, together with the
City of London police, raid the offices of the
Tchenguiz brothers, Robert and Vincent. The
brothers are released without charge later
that day.
Thursday 10 March
In Cannes, the brothers’ annual party at the
Mipim property conference aboard their
yacht goes ahead as planned. But the broth-
ers do not attend.
Bank of America demands immediate repay-
ment of its £124.6m loan.
Saturday 12 March
Vincent Tchenguiz tells friends that he has no
Picture: The Picture Library
alternative but to seek administrators for
Peverel, his property management company.
Both brothers tell friends of their growing
anger at the way the SFO conducted its raid.
Monday 14 March
Zolfo Cooper is appointed as administrator
to Peverel in the first financial blow to the
Tchenguiz brothers’ empire.
Robert Tchenguiz appoints a former head of
public prosecutions Ken Macdonald, to
examine whether the SFO obtained search
and arrest warrants legally.
Robert dismisses the SFO raid as a “publicity
stunt” designed to draw attention to the
body’s uncertain future.
Phoebe Torrance
belonged to the executives and seen
as key to the case over Renault’s elec-
tric car technology, did not exist, pros-
ecutor Jean-Claude Marin said.
The response of authorities in
those countries has enabled the pros-
ecutor “to dismiss a certain number
of theories, notably that which was
put forward in the initial complaint
by the company Renault,” Marin said.
Renault chief executive Carlos
Ghosn and chief operating officer
Patrick Pelata apologised to the three
men following Marin’s comments,
pledging to repair the injustice
against them after they were fired in
January.
Bertrand Rochette, Matthieu
Tenenbaum and Michel Balthazard
had denied any wrongdoing from the
start and have taken legal action
against the carmaker.
“They (Ghosn and Pelata) are com-
mitted that reparations be made to
the three executives, and that their
honour in the public eye be restored,”
Renault said in a statement.

It’s more than just a plan. It’s a Big Plan.

What you might call a total overhaul of the
Tube, and it’s already well under way. In fact
we’ve already laid over 200km of new track,
improved safety, and refurbished more than
half of the 270 existing stations. We’ve done a
lot, but there’s a lot more to do. Please bear
with us. We’re doing everything we can to
keep disruptions to a minimum.
Keep up with the upgrade plan and
how LWPLJKWDIIHFW\RXDWWÁJRYXN
 6 News
Saudi troops enter Bahrain
as Gaddafi fights back rebels
▲
WORLD
BY STEVE DINNEEN
SAUDI Arabia sent troops into Bahrain
yesterday to help put down weeks of
protests by the Shi’ite Muslim majori-
ty, a move opponents of the Sunni rul-
ing family on the island called a
declaration of war.
The Saudi capital, Riyadh, said that
it had responded to a “security threat”
by deploying its troops on the streets
of its neighbour. They are to protect
strategic sites such as bridges and gov-
ernment buildings. Shi’ites make up
about 15 per cent of the population in
Saudi Arabia, a key US ally and the
world’s top exporter of oil.
Bahrain has been gripped by its
worst unrest since the 1990s after pro-
testers took to the streets last month,
inspired by uprisings that toppled the
leaders of Egypt and Tunisia.
The intervention in Bahrain came as
David Cameron yesterday insisted that
the UK will not be dragged into a war
with Libya.
The government is coming under
increasing pressure to decide if it will
intervene in the region as Libyan leader
Colonel Gaddafi regains control of key
strongholds. Gaddafi’s jets bombed
Libyan rebels yesterday, aiding a count-
er-offensive that has pushed insurgents
100 miles east in a week. Cameron said:
“There is no intention to get involved in
another war. What is being looked at is
how do we tighten the pressure on an
unacceptable, illegitimate regime.”
Anti-Gaddafi rebels are struggling to hold the towns they took earlier
Nasdaq moves
in on NYSE bid
▲
STOCK EXCHANGES
BY MARION DAKES
NASDAQ stock exchange is poised to
make a hostile takeover bid for the
New York Stock Exchange (NYSE), after
entering late stage talks with Bank of
America Merrill Lynch to fund the
attempted break-up of NYSE and
Deutsche Boerse’s merger.
Nasdaq is close to securing $5bn
(£3.1bn) of financing for its takeover
bid, which could be unveiled as soon
as today.
The firm has teamed up with
Intercontinental Exchange, which
would snap up NYSE’s European assets
under the break-up plans.
However, talks were said to be ongo-
ing last night and it was unclear what
final shape the possible bid would
take.
Nasdaq has been considering
muscling in on the NYSE-Deutsche
Boerse merger for several weeks, as it
Brevan Howard chief to ditch
City for Switzerland this year
▲
HEDGE FUNDS
EUROPE’s largest hedge fund manag-
er, Brevan Howard Asset
Management, will see another of its
top executives move to Switzerland
this year.
Australian co-chief executive Nagi
Kawkabani said the decision to leave
London is purely a “lifestyle choice”.
But the move will inflame fears
that London is becoming a less attrac-
CITYA.M. 15 MARCH 2011
Picture: GETTY
attempts to reposition itself amid a
flurry of mergers and takeovers across
the world’s stock exchanges.
NYSE announced its $10bn merger
plan with Deutsche Boerse last month,
although politicians on both side of
the Atlantic have said the deals could
face competition hurdles.
Nasdaq and Bank of America
declined to comment, while the NYSE
and Intercontinental Exchange did
not return calls yesterday.
Bringing Nasdaq and NYSE together
would create a stock-trading power-
house in the United States and Europe
that also dominates US options and
listings businesses. It would be a bold
move by Nasdaq chief executive Robert
Greifeld, and, if successful, would
redraw the global exchange map.
Any bid would follow weeks of spec-
ulation that Nasdaq, the odd one out
amid a merger frenzy, would jump
into the fray with its own bid for an
exchange operator.
tive home for top-earners due to its
stringent rules on pay and effective
tax rate of 51 per cent on personal
income. Brevan Howard has seen a
raft of its staff move to Switzerland
since opening an office in Geneva in
2009. Last year, Alan Howard, co-
founder of the firm, moved there and
the asset manager has plans to double
its Geneva headcount this year. It has
$32.6bn (£20.1bn) in assets under
management.
CITYA.M. 15 MARCH 2011
Qatari wealth
fund buys 6pc
of Iberdrola
▲
ENERGY
BY ELIZABETH FOURNIER
SPANISH energy company Iberdrola
will sell a six per cent stake to Qatar’s
sovereign wealth fund, in a strategic
alliance valued at €2bn (£1.7bn).
Qatar Holdings, which is part of
the Qatar Investment Authority, will
buy 338m new Iberdrola shares at a
discounted price of €5.63 each, below
the company’s previous closing price
of €5.96.
Iberdrola said that the deal will
boost its balance sheet and protect its
credit rating.
The company has been looking to
limit its debt since the acquisition of
Brazilian power company Elektro
Eletricidade e Servicos in January this
year for €1.8bn.
It also pledged €2.5bn last week to
buy out minority shareholders in its
Iberdrola Renovables arm, which
focuses on renewable energy.
The deal will give Iberdrola a bal-
last against its largest single investor,
Spanish construction group ACS,
which holds a 20.2 per cent stake in
the company.
ACS, run by chief executive Pervez,
is suing Iberdrola for seats on its
board, with Perez saying last month
that he was “more committed than
ever to being its biggest shareholder”.
Qatar Holding bought the Harrod
Group from Mohammed Al-Fayed in
May last year, and was linked to a bid
for Manchester United in December.
Iberdrola’s stock price climbed 2.6
per cent in early trading on the
Madrid Stock Exchange, before set-
tling to close 0.3 per cent up at €5.98.
ANALYSIS l Iberdrola SA
6.6
5.98
€ 14 Mar
6.2
5.8
5.4
20 Dec 11 Jan 31 Jan 18 Feb
Galleon founder Raj Rajaratnam is on trial in the US for insider trading
Galleon witness testifies
INSIDER TRADING
▲
BY HARRY BANKS
A DISGRACED former McKinsey & Co
partner has testified that Galleon fund
manager Raj Rajaratnam paid him a
$1m (£617,856) “bonus” for tipping
him about an acquisition by chip-
maker Advanced Micro Devices (AMD),
a client of the consulting firm.
Anil Kumar told jurors yesterday he
supplied confidential details about
AMD’s 2006 purchase of graphics chip-
10 Mar maker ATI Technologies to
Picture: PA
Rajaratnam, who is on trial on crimi-
nal charges of running a vast insider
trading network.
“He called me at home and he said,
‘I just wanted to thank you. That was
fantastic, we are all cheering you at
the office right now,’” Kumar testified
in Manhattan federal court. “That
made me very nervous.”
Prosecutors in the trial are expected
to name David Palecek, a McKinsey
partner who died last year, as a third
target for Raj Rajaratnam to recruit to
his alleged insider trading ring.
News 7
Southern Cross
shares dive on
debt worries
HEALTH
▲
SHARES in healthcare group
Southern Cross plunged by up to 60
per cent yesterday as the company
admitted it was struggling in the face
of NHS and council budget cuts.
The company has appointed KPMG
to look at restructuring options after
cuts in local authority spending wors-
ened its trading outlook.
It said yesterday that it was no
longer in talks with potential buyers.
while it also admitted it was in dan-
ger of defaulting on debts. The joint
blow sent its stock into a nosedive.
“The company’s lenders are aware
of an impending banking covenant
breach but remain fully supportive of
the actions which the company is tak-
ing to address its problems,”
Southern said.
The firm provides care to more
than 31,000 people, with the bulk of
funding coming from the NHS and
councils. Budget cuts have left the
company reeling as it struggles to
meet rents on its buildings.
On potential takeovers Southern
added: “The board considers that none
of these proposals are likely to result in
a meaningful offer being made in the
foreseeable future and has decided not
to pursue them further.”
Southern’s shares closed 64.6 per
cent lower yesterday at 5.57p.
CITYA.M. 15 MARCH 2011
CITY VIEWS: IS LABOUR RIGHT TO CALL FOR THE BANK BONUS
TAX TO BE REINTRODUCED? Interviews by Phoebe Torrance IN ASSOCIATION WITH
Save or Borrow peer to peer at RateSetter.com
PETER SYMES |
JLT
“No. People who would otherwise
come to work in banks in the UK,
paying other
taxes, would be
driven away to
work elsewhere.
It wouldn’t help
the govern-
ment.”
Labour calls
for £2bn tax
on bonuses
POLITICS
▲
BY DAVID CROW
LABOUR shadow chancellor Ed Balls
yesterday claimed the government
could create 110,000 jobs and build
25,000 new homes by clobbering the
banks with a £2bn tax on bonuses.
Balls, who is seeking to flesh out
Labour’s economic policy ahead of the
Budget on 23 March, said the tax
would “boost jobs and growth”.
He urged the government to spend
£600m on a job creation scheme for
unemployed youths – similar to the
now-defunct future jobs funds – which
he said would generate 90,000 jobs.
Labour’s future jobs fund was
scrapped last year by the coalition
after a Department for Work and
Pensions study showed that 50 per
cent of participants were back on ben-
efits within seven months of joining
www.RateSetter.com Customer Phoneline: 08442490115
DAVID JONES |
QBE
“No. If we end up with a bonus
tax on banks it would cascade to
everyone else.
Everyone has a
choice in life, if
you end up in a
bank, why
should you be
taxed more?”
the scheme.
Balls said the government should
also put £1.2bn towards building
25,000 new homes, which he said
would create a further 20,000 jobs –
bringing the total to 110,000.
A further £200m should be used to
boost the regional growth fund, he
said.
Balls accused chancellor George
Osborne of pursuing a “reckless exper-
iment to cut too deep and too fast”
and said the economy had “taken a
turn for the worse”.
However, he remained tight-lipped
on which spending reductions Labour
would oppose and how it would fund
the cost to the cash-strapped excheq-
uer.
And he repeated his call for a reduc-
tion in fuel VAT, despite claims that
such a tax cut would fall foul of
European laws.
Fitch says UK’s AAA rating
safe due to spending cuts
▲
POLITICS
TOLA ADERINOKUN | BRITAIN’S top-notch credit rating
SONY GLOBAL looks increasingly secure thanks to
the government’s spending cuts and
“Yes. They earn a lot of money and a recovering banking sector, ratings
we’re in a mess because of them. agency Fitch said yesterday, in a sig-
nificant boost for the chancellor.
It would make a However, Fitch said there was a risk
difference, that inflationary pressures could
spur a sharper-than-expected rise in
because they interest rates which might hurt the
get a lot in economy.
“The strong budgetary consolida-
bonuses. It tion effort and declining fiscal risks
would help to fix arising from the UK financial sector
support the stable outlook on the
our finances.” UK’s ‘AAA’ ratings,” said Maria Malas-
FACT CHECKER | WITH DAVID CROW
THE CLAIM | CUTTING VAT ON FUEL WOULD BE
ILLEGAL UNDER EUROPEAN LAW
SHADOW chancellor Ed Balls will
tomorrow force a House of Commons
vote on fuel VAT, in a bid to earn politi-
cal capital from soaring petrol prices.
But George Osborne’s allies claim that
The government could collect fuel VAT
at the existing reduced rate of five per
cent, but it would cost the exchequer
some £4.2bn in foregone revenue.
APPLYING FOR AN EXEMPTION
cutting VAT on fuel is illegal under EU
law. Rubbish, say Labour spinners: all
Osborne needs to do is apply for an
exemption. So who is telling the
truth?
VAT RATES AND THE EU
The EU allows member
The chancellor could apply to the
EU for a so-called derogation. If
the EU agrees, that would allow
him to introduce a third rate of
VAT for fuel. In 1997, the then
Labour government applied
for a third rate of VAT
states to have two sep- for domestic fuel.
arate rates of VAT: a However, the EU rarely
headline rate (20 per grants VAT deroga-
cent in the UK) and a tions – in fact there are
reduced rate (five currently just three.
per cent in the UK). Cyprus, for example,
A third rate of VAT has a reduced rate of
at 17.5 per cent VAT on cylinders of liq-
could be intro- uefied natural gas
duced on some while certain regions
items under EU law in Portugal pay lower
– but not fuel. VAT than others.
THE VERDICT |
Balls is perfectly right to claim that it John Whiting, the head of the Office
would be possible to apply to the EU for Tax Simplification, said it would be
for permission to introduce a third “unlikely the EU would grant a dero-
rate of VAT at 17.5 per cent especially gation on something as fundamental
for fuel. However, that doesn’t mean as petrol”. Lowering VAT on fuel is
the EU is likely to grant a derogation. not a credible option.
Politics 9
Mroueh, a director in Fitch’s
Sovereign team.
Fitch said the government’s deficit
reduction plan was credible and it
expected the 23 March budget to reaf-
firm the government’s commitment
to fiscal tightening.
The opinion of the ratings agency
will provide a welcome fillip for
George Osborne, who is fighting
claims from Labour that he is cutting
too far and too fast.
However, Fitch noted that uncer-
tainty over how much spare capacity
remained in the economy as well as
the pace of economic recovery had
increased the potential for monetary
and fiscal policy errors.
Hutton: Public
sector pay hike
is unjustified
▲
POLITICS
THE public sector has failed to justify a
rapid rise in salaries for top executives,
according to an influential new report.
Will Hutton, the executive vice-chair-
man of the Work Foundation, has rec-
ommended senior public servants’ pay
should be directly linked to their per-
formance and should be subject to far
greater public scrutiny.
Under his proposals public servants
will have a percentage of their basic
pay “at risk” each year, with the money
earned back by meeting performance
targets.
However, he fell short of recom-
mending a fixed limit on pay multi-
ples, whereby executives could only
earn 20 times more than their lowest
paid workers.
He also warned against using the
Prime Minister’s pay as a benchmark
for the earnings of other senior public
servants.
Instead he said both the public sec-
tor and listed companies should be
required to track and publish their pay
multiples to make it easier to compare
earnings of top executives.

 

 
    

  


 
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 The Capitalist
10 EDITED BY CITYA.M. 15 MARCH 2011
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist

ROBERT THE Robert

LIONHEART
SERENADES
SELFRIDGES
ROBERT Tchenguiz will henceforth be
known as Robert the Lionheart, after the
billionaire property developer was spotted
singing The Lion Sleeps Tonight from the
film The Lion King in Selfridges.
The sighting took place at 5.30pm on
the evening of the now infamous yacht
party at MIPIM in Cannes last Thursday,
when a social contemporary of the broth-
ers recognised Robert from their common
haunts in Knightsbridge in the 1980s.
While Vincent Tchenguiz made his
excuses from the Cannes party – joking
that like F Scott Fitzgerald’s hero Jay
Gatsby he doesn’t show up at the parties
he throws – his brother Robert was back
in London, treating his son to a trip
around the retailer’s toy department.
“Talk about loud: he was singing “in the
jungle, the mighty jungle” from The Lion
King at the top of his voice over and over
again,” said this column’s source, who
added that the property mogul seemed to
be “in a bit of a world of his own”.
Robert Tchenguiz confirmed the sight-
ing at the Oxford Street store to The
Capitalist, although he took pains to make
clear that he was singing the Lion King
tune with his young son, inspired by the
Sing when you’re winning: that’s Robert Tchenguiz’ signature style, at least
toy lions they were looking at.
Whatever you say, Robert – sing when
you’re winning, and all that.
TOP OF THE WORLD
BASIL Geoghegan, former investment
banker with Goldman Sachs and Deutsche
Bank, has earned a reputation for high
achievement over his City career.
But advising Anglo Irish Bank at the
height of its crisis will seem like a walk in
the park compared to his latest challenge:
climbing Mount Everest to raise funds for
the Forgotten Irish campaign for the
Ireland Fund of Great Britain, of which
Geoghegan is co-chairman.
Taking advantage of a two-month win-
Tchenguiz
was spotted
in Selfridges
singing The
Lion Sleeps
Tonight at
the top of his City is an insanely competitive place
voice comes from Ernst & Young, which hired
the world’s former number two player
Peter Marshall just in time for the Square
Mile’s largest squash tournament.
Marshall (pictured above), who joined
the auditing giant as a healthcare consult-
ant in July last year, missed out on last
year’s Square Mile Corporate Challenge,
dow before he starts a new role at Citi, which runs alongside the pro event the
Geoghegan has started his training in ISS Canary Wharf Classic.
earnest, involving giving up alcohol, sleep- But he was quickly drafted onto the
ing in a hypoxic tent and climbing in the team for this year’s tournament,
Alps three days a week (pictured right in where he helped Ernst & Young beat
training with his daughter Julia). Barclays Capital to take a place in
Geoghegan, who has so far scaled Mount the semi-final against
McKinley, Mont Blanc and Kilimanjaro, PricewaterhouseCoopers.
intends to reach the summit of the world’s Even though Marshall retired
highest mountain in late May and says the from professional squash in 2002,
feat is a “very personal challenge” to help a his racket skills should still be sharp
vulnerable group for whom every day is a enough to give the City’s finest play-
challenge. To support his climb, see ers more than a run for their
www.justgiving.com/BasilGeoghegan. money – watch this space to see
whether he can take Ernst & Young
all the way to the grand final next
SQUASH RACKET Friday, where the firm will meet
either Credit Suisse or the FSA.
PROOF – as if any were needed – that the

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CITYA.M. 15 MARCH 2011 News 11

AssetCo to raise Buffett on acquisition trail

shareholder cash with $9bn Lubrizol deal
despite bid support PROFILE ings, consistent earning power,

▲
BY ELIZABETH FOURNIER
BERKSHIRE Hathaway’s purchase
of Ohio chemical maker Lubrizol
for $9bn (£5.6bn) is one of the
SUPPORT SERVICES lems with its short-term funding biggest deals ever for Berkshire
▲
good returns on equity while
employing little or no debt, and
“simple businesses”.
Lubrizol seems to be an exact fit
for Buffett’s strict criteria. Its rev-
enue last year hit $5.4bn, when it

BY KASMIRA JEFFORD
TOP shareholders in AssetCo, the
largest fire-engine supplier to the
London Fire Brigade, have criticised its
board for not considering a takeover
approach more carefully.
The Aim-listed company yesterday
said it had rebuffed months of bid
talks and taken out an emergency loan
of £1.45m as it prepares to raise more
cash from its shareholders.
One of the firm’s top investors, how-
ever, told City A.M. that certain institu-
tions would have been in support of a
takeover bid.
“The company has a duty of care to
its shareholders to consider a bid at a
significant premium carefully and we
can’t understand why it didn’t do it,”
said the shareholder. The announce-
ment comes one month after prob-
broke-up talks with a third party.
AssetCo is understood to have
received a formal bid from a Middle
Eastern investor after it turned to
shareholders last month for emer-
gency funding. But the company
rejected the approach, calling it
“opportunistic”.
“Independent directors consider the
current approach to be opportunistic
and not in the interest of shareholders
as the indicated price range included
an offer at a discount to the current
market price,” it said in a statement.
Next Monday AssetCo will ask share-
holders to approve the proposed plac-
ing of new shares to raise £16m, which
will help repay the short-term loan
facility from its principle banker.
AssetCo’s loan announcement reas-
sured investors and sent shares up 24
per cent, closing at 19.75p.
chairman Warren Buffett, who is
quickly making good on the prom-
ise of “major acquisitions” that he
made in his annual shareholder
letter last month.
The price tag for Lubrizol is at a
premium of 28 per cent to its clos-
ing price on Friday, valuing the
lubricant additive company at $135
per share. Lubrizol’s shares gained
27.7 per cent to close at $134.6 yes-
terday – close to the offer price.
Berkshire Hathaway’s annual
report for 2010 also detailed the
type of acquisition Buffett would
be seeking, after he declared to
shareholders that his “trigger fin-
ger is itchy” to start spending the
fund’s $38.2bn cash pile.
The criteria included companies
with at least $75m of pre-tax earn-
generated a cash flow of close to
$690m.
It’s also a market leader in its
sector – claiming the world’s
largest market share in the lubri-
cant additives business, even in
the face of competition from
Exxon and Shell’s Infineum
joint venture.
The company will keep its
Ohio base, and continue to be
managed by current chief
executive James Hambrick.
Lubrizol is Buffett’s second
biggest acquisition in the last
five years after Burlington
Northern, which he paid
$26bn for in November
2009. The deal is expected
to be completed by the
third-quarter of this year.
WARREN BUFFETT

Rio moves closer to

Riversdale takeover
MINING The international mining giant at 3,975p on the London Stock
▲

BY KASMIRA JEFFORD
RIO TINTO, the mining giant,
moved closer in its bid to gain con-
trol of rival Riversdale Mining yes-
terday, after a $3.9bn (£2.4bn)
improved offer spurred more
shareholders to accept the bid.
In a notice to the Australian
Securities Exchange, Rio said the
number of shares it either owned
or had received acceptances in
respect of the offer had risen from
17.86 per cent to 26.13 per cent by
Friday night.
A further 8.37 per cent of shares
has been put into an institutional
acceptance facility that would turn
the shares over to Rio if the bid
passed the 50 per cent threshold.
last Thursday raised its original Exchange, a rise of 0.3 per cent.
$16-a-share cash offer for Riversdale The acquisition of Riversdale
to $16.50, pricing the coal miner would be Rio Tinto’s first major
and its African operations at takeover since its $38bn acquisi-
$3.9bn. tion of Alcan in 2007.
It also extended the offer period A Rio Tinto spokesman declined
for a third time to 1 April, to comment yesterday.
although the cut off date for the
$16.50 offer is 23 March. ANALYSIS l Rio Tinto
Rio’s offer, which has been rec- 4,700 p
ommended by all of Riversdale’s 3,975.00
board, is still waiting for votes from 14 Mar
4,500
Riversdale’s two largest investors,
India’s Tata Steel and Brazil’s CSN, 4,300
which hold a combined 47 per cent
of voting rights. 4,100
Riversdale shares closed at
A$15.45 on Australian Securities 3,900
Exchange, down 0.45 per cent on
the day, while Rio’s shares closed 20 Dec 11 Jan 31 Jan 18 Feb 10 Mar

Asian share offerings European insurers to

hit pre-recession highs face capital squeeze
▲

CAPITAL MARKETS
▲

THE TOTAL level of cash raised through initial public
offerings (IPOs) in Asia so far this year has hit its highest
level since before the recession.
Companies from the region have generated a total of
$20.8bn (£12.9bn) from stock market offerings since
January, according to data provider Dealogic.
The figure comes after a boom year for Asia-Pacific IPOs
– which had at this point last year notched up $18.2bn –
and despite market volatility in the Middle East.
In 2009, only $314m had been raised in Asia-Pacific
stock offerings by this point in the year.
The $5.5bn offering by Hong Kong port operator
Hutchison Ports Holdings Trust on the Singapore Stock
Exchange has driven up the figure, in a strong year to
date for Asian firms.
Several large flotations of Chinese firms also helped to
boost the figure.
INSURANCE
EUROPE’s insurers would see their free capital cut by
more than a third by new higher solvency require-
ments imposed from 2013, regulators said yesterday.
Incoming Solvency II regulation would cut firms’
surplus capital by 44 per cent or a total €86bn (£74bn)
if implemented without any relaxation of the rules,
the European Insurance and Occupational Pensions
Authority found.
Where insurers applied their own internal risk
assessment models, or calculated the value of their
assets using transitional measures, their free capital
would be cut by just €3bn, or one per cent. But the new
rules do not yet specify when and to what extent regu-
lators would allow companies to use such internal
models or transitional arrangements. “QIS5 has shown
that Solvency II will be more onerous than the existing
regime,” said PwC partner Philippe Guijarro.
 12 News
3i mandate will be coup for BarCap’s Renwick
INSIDE TRACK
DAVID HELLIER
I
F, as seems likely, 3i decides to
appoint Barclays Capital as its
joint corporate broker at the end
of the month it will be further
proof that Barclays’s strategy of
Fears of Irish
default grow
over tax row
▲
EUROZONE CRISIS
BY JULIET SAMUEL
THE cost of Ireland’s debt continued to
rise to all-time Eurozone highs yester-
day, putting pressure on new Prime
Minister Enda Kenny to secure less
punitive rates on its €85bn (£73.5bn)
bailout despite demands that the
country raise its low 12.5 per cent cor-
porate tax rate in return for any relief.
The corporate tax issue moved cen-
tre-stage over the weekend when
French President Nicolas Sarkozy
demanded that Ireland put up the tax
in return for a one per cent cut in the
5.8 per cent interest rate it pays on its
bailout.
But Kenny refused, prompting
Eurozone leaders to keep Irish interest
unchanged while lowering Greece’s
rate by one per cent. Following the
move, the yield on five-year Irish debt
spiked above 9.9 per cent, with rates
on ten-year debt similarly jumping
briefly above 9.69 per cent.
This was in sharp contrast to Greek
yields, which dropped slightly to 14.3
per cent on five-year and 12.4 per cent
on ten-year bonds. Greece’s debt was
effectively restructured as a reward for
its progress on reducing its deficit,
with bond maturities extended from
Owners of British technology company
Edwards plot stock market offering
▲
TECHNOLOGY
BY RICHARD PARTINGTON
BRITISH vacuum technology producer
Edwards Group is plotting a London
listing to raise at least £375m.
The firm provides chipmakers with
vacuum technology needed to make
microprocessors, used in products
such as Apple’s iPad.
Its private equity backers own a com-
bined 90 per cent stake of the firm,
which was valued at £1.5bn last year.
CCMP Capital and Unitas Capital,
building up its equities business is
bearing fruit.
Since hiring Jim Renwick as head
of UK Equity Capital Markets and cor-
porate broking in April 2009, Barclays
Capital has won six FTSE 100 broker-
ships.
Renwick, formerly of UBS, must
take a lot of the plaudits for this but it
has to be said that the bank will also
be benefiting from the strong lending
relationships it already has with
clients, to which it can now offer equi-
ty advice.
Some say that Renwick will be hard
pressed to serve the bank’s growing
number of broking clients, which
four years to 7.5.
The Eurozone pact also agreed to
move forwards with a “common cor-
porate tax base” policy for the entire
EU, to be drawn up by the European
Commission.
However, the proposals, which will
be announced tomorrow by EU com-
missioner Algirdas Šemeta, will not
mandate uniform tax rates. Instead,
they will attempt to standardise the
way corporate taxes are levied, for
example, regarding the offset of losses
from past years.
But Pinsent Masons tax partner
Eloise Walker told City A.M.: “Ireland
fears that the common corporate tax
policy could be a precursor to an EU-
wide corporate tax rate.”
Overall, the Eurozone pact brokered
on Saturday has received a conditional
welcome from markets. Fitch Ratings
said the deal was progress but “will
not resolve market concerns over the
‘solvency’ of some highly indebted
euro area member states”. And the
House of Lords EU Committee said it
had “strong reservations” about how it
would be enforced.
In a sign that bond investors are still
nervous, Portuguese yields spiked above
7.8 per cent on five-year debt yesterday.
Spanish yields, however, were down.
the buyout vehicles once operated by
US investment bank JP Morgan, own 45
per cent of the company each, whilst
management retains the rest.
The owners must offer at least 25 per
cent of the company in order to list in
London.
Edwards did not give any detail of
the expected size of its offering,
although said it will not include any
new shares.
It will announce price details over
the coming weeks, and is expected to
list before the end of next month.
include Barclays (no surprise there),
National Grid and Resolution.
But the team is a dozen strong and
includes other experienced names
such as Alisdair Gayne (ex Morgan
Stanley), Jon Bathard-Smith (also ex
Morgan Stanley) and Bertie
Whitehead (formerly of Citigroup).
“So long as Barclays Capital
employs enough supporting players,
it will be able to keep its growing
number of clients happy,” says one
corporate broker.
As well as the corporate broker-
ships, Barclays Capital was also cho-
sen as one of three advisers to the LSE
on its bid for Canada’s TMX, along-
Industrialists defied bad winter weather in much of the euro area
Industrial production still
rising across the Eurozone
▲
EUROZONE ECONOMY
INDUSTRIAL production in the
Eurozone started the year on the up,
official data showed yesterday.
Production rose by 0.3 per cent on
the previous month, despite
December’s figure being hugely
revised upwards to show a 0.3 per
cent expansion, rather than the pre-
vious estimate of a 0.1 per cent
decline.
Compared to the same time last
year, Euro area industry was up 6.6
The former chief financial officer of
drinks giant Diageo, Nick Rose, will
step in as chairman of the firm follow-
ing the listing.
Founded in 1919, the West-Sussex
based firm made pre-tax profits of
£130m on revenues of £641m.
Edwards chief executive Matthew
Taylor said: “This is a very exciting time
for Edwards as we work towards a
potential IPO and listing.
“The group has been transformed
over the last four years, developing into
a world class operation.”
side RBC Capital Markets and Morgan
Stanley.
Joshua Critchley, the former
Goldman Sachs banker turned head
of RBC’s equity capital markets and
corporate broking, is still getting
tongues wagging with the sky-high-
packages being offered to bankers to
join his team.
Talk at the PLC awards dinner the
other evening was of the £350,000ish
pay and golden hello packages said to
be being offered to encourage people
like former Arden chief executive
Jeremy Grime and colleague Sarah
Spikes to join RBC.
Together with Peter Lenardos, the
per cent, and up 6.8 per cent across
the wider European Union.
“Adverse weather in early January
is likely to have led to continued dis-
ruptions to business, and we expect
the rate of growth to improve
markedly in February,” added Markit
economist Chris Williamson.
“The purchasing managers indices
also point to an acceleration in
February,” Williamson said. Among
member states for which data are
available, industrial production rose
in 14 and fell in five.
JONATHAN
WILCOX
JP MORGAN
CAZENOVE
JONATHAN Wilcox is leading the JP
Morgan Cazenove advisory team on the
Edwards Group initial public offering
(IPO).
The US investment bank is acting as
joint lead adviser together with Swiss
lender UBS on the listing.
As head of UK equity capital markets
at JP Morgan, Wilcox has led many of
the bank’s highest profile deals in recent
years, including rights issues for
Standard Chartered and Rio Tinto.
He also handled the IPO for Jupiter
CITYA.M. 15 MARCH 2011
three Arden colleagues last year
topped the Extel survey.
Tough for Arden, which by all
accounts is a good place to work and
yet can not really compete with the
sort of sums on offer from RBC – but
one must be a little concerned for the
Canadian firm if it doesn’t win the
business to match the pay packages it
is offering. The Arden hires come on
top of others from Cenkos.
Meanwhile, it’s not all one-way traf-
fic out of Arden. John Goold, one of
the firm’s original founders, last
week returned from Oriel Securities
to be its head of institutional sales.
david.hellier@cityam.com
UK is set for
steady but
slow growth
▲
WORLD ECONOMY
THE British economy is set for “a slow
but stable pace of expansion,” the
Organisation for Economic Co-opera-
tion and Development (OECD) said
yesterday.
“The OECD indicator is consistent
with the view that a modest economic
upturn remains intact for the UK,
despite a GDP contraction of 0.6 per
cent in the final three months of last
year,” commented Howard Archer of
IHS Global Insight.
However, the UK’s prospects remain
below those in some OECD member
states such as Germany and the US,
where “robust expansion” is forecast.
The US indicator jumped by 0.6
points in January, recording a score of
103.2. The UK’s indicator has
remained steady for three straight
months, at 101.9.
All scores above 100 point to above
average growth. The indicators
attempt to predict turning points in
economic activity six months ahead.
“We project British GDP to grow by
1.6 per cent in 2011,” Archer said.
The latest figures bode well for the
global economic recovery, with
monthly upturns across the OECD
area, and specifically in Europe and
Asia.
January’s scores were up 0.4 points
against the previous month, through-
out the OECD’s 33 member countries
– an annual improvement of 2.1
points, clearly indicating expansion.
Asset Management last year.
The team from JP Morgan also
includes head of UK corporate Ed
Byers, who is responsible for some of
the firm’s most important brokerage
relationships.
Managing director in the bank’s indus-
trial team Andrew Truscott and UK cor-
porate finance executive director Chris
Nicholls are also advising.
Swiss bank UBS’ team is led by
Christopher Smith and Adrian Lewis.
As vice president of investments for
the bank, Smith has recently advised US
media firm Perform on its London listing.
He also worked on the advisory for a
£242m share raising by British super-
market chain Sainsbury’s.
Morgan Stanley; led by Scott Matlock
and Ben Grindley, and Deutsche Bank;
led by Lorcan O’Shea and Edward
Sankey, are also advising on the listing.
 14 News CITYA.M. 15 MARCH 2011

Applications up for City jobs BoA emails leaked online

increases in bonuses will just about officer Mark Cameron: says
by Anonymous hackers
▲

RECRUITMENT
match inflation, with a third of CFOs “Dissatisfaction about pay is
BY JULIET SAMUEL planning to put them up by three to inevitable among such a hyper-com-

CITY firms are struggling to hang on
to staff despite plans to increase
salaries and bonuses by more than
inflation, according to two surveys by
recruitment firms.
Financial recruiter Robert Half says
that a survey of 280 chief financial
officers (CFOs), shows 61 per cent of
listed firms are planning to put up
salaries in coming months, more
than two thirds of them by five to six
per cent and a fifth by seven to 10 per
cent.
The research also shows that
four per cent, and half planning to
raise them by five to six per cent.
Numbers from rival City recruiter
Astbury Marsden show why: it says
the number of applications it
received in February has soared to
7,400, a 47 per cent jump year-on-year
as disgruntled employees consider
options and prepare to ditch their
current employer.
The data shows that non-top tier
investment bankers, in particular, are
upset about their pay levels.
Astbury Marsden chief operating
petitive cohort as investment bankers
– they see bonuses as the way to keep
score and they hate to lose.”
He added that some investment
banks are reporting staff turnover for
the first quarter of 20 per cent – way
above the usual churn that follows
bonus season.
The rise in applications has not
quite been matched by an equivalent
jump in vacancies, but there were
nonetheless 30 per cent more jobs
added to the recruiter’s register this
February than last.
▲
BANKING
BANK of America (BoA) became the
latest target of hacker group
Anonymous when confidential
emails were leaked online.
Anonymous, a group sympathetic
to WikiLeaks, say the documents
relate to the issue of whether BoA has
improperly foreclosed on homes.
However, the emails do not appear
to be as damning as the hackers hope,
with little evidence backing up the
claims that BoA foreclosed homes
without proper documentation.
The emails involve a discussion
between employees of BoA subsidiary
Balboa Insurance regarding remov-
ing documents from loan files for a
group of insured properties.
There was some indication that
material pointed to in the emails had
been recently removed, with many
links leading to blank pages.
A BoA spokesman said the docu-
ments were stolen by a former Balboa
Insurance employee, and were not
related to foreclosures.

Bovis doubles
NEWS | IN BRIEF
Hongqiao cuts IPO size to $1bn
China Hongqiao Group, China’s biggest
privately owned aluminium hydroxide

profit on land producer, will relaunch its Hong Kong

initial public offering as soon as next
week, after cutting the size to about
$1bn (£620m). The company had ini-
tially targeted raising up to $2.2bn,
but pulled the deal in January due to

grab policy market volatility. The group now plans

to sell around 1bn shares at between
HK$7.20 (57p) and HK$8.30 each.

Carlyle and Tiger invest in ships

Carlyle Group has formed a joint ven-
ture with maritime investment firm
The company said it would restore Bovis chief David Ritchie said the group spent £203m on land in 2010 Picture: Micha Theiner Tiger Group to buy more than $5bn
▲

HOUSEBUILIDNG
BY JOHN DUNNE
HOUSEBUILDER Bovis Homes yester-
day said its 2010 profit more than
doubled and that it had made an
encouraging start to 2011.
Bovis reported a pre-tax profit last
its dividend – with a proposed pay- (£3.1bn) worth of ships with a group
ment of 3p for 2010 – as a result of
the positive figures. The last time a
ANALYST VIEWS: WILL THE BOVIS FIGURES of other investors to tap growing ship-
ping demand in the region. The joint
dividend was paid was 2008.
Economists are predicting a testing
IMPRESS INVESTORS? Interviews by John Dunne venture will commence operations
immediately and has committed to
year for housebuilders and muted invest equity capital of $900m in the
growth at best, as economic uncer- KEITH BOWMAN | HARGREAVES LANSDOWN next five years. Private equity firm

year of £18.5m, compared with £7.5m
the year before.
The company had been expected to
post a profit of £18.54m, according to
tainty and a struggle to access credit
deter buyers from entering the mar-
ket. Bovis said mortgage availability
will continue to restrain buyers in
“
Carlyle said the venture would buy
container, dry bulk, tanker vessels and
Bovis has weathered the credit crisis relatively well, and is in better other assets. Their partner Seaspan
shape than many rivals. Despite a broadly positive update, the shares are general- and the Washington Family will invest

a poll of analysts.
Chief executive David Ritchie said:
“The group has delivered a strong
improvement in profit in 2010, driven
by increased volumes, stronger sales
2011 but expects prices to remain sta-
ble as a whole.
The Kent-based group, which is
debt free, added: “With the supply of
consented land likely to be con-
”
ly assessed as being ‘up with events’, with rival housebuilders potentially offering in container vessels purchased by the
better value. As such, market consensus opinion denotes a ‘Hold’. newly-formed firm, it said.
St Ives to sell magazine arm
MARK HUGHES | PANMURE Printing company St Ives said it

prices and delivery of cost savings.”
Bovis spent £203m on land in 2010,
acquiring 3,700 plots mostly located
in the south of England, and has
“
strained in the future, given the plan- agreed to sell its loss-making maga-
ning environment we believe that zine business for £20m to a unit of pri-
this is an excellent time to invest.” Although the group has seen a good start to the year with reservations vate equity firm Walstead
up 11 per cent in the first nine weeks, given the early stage of the year, we main- Investments. St Ives, which prints a

agreed terms to buy another 2,500
this year, it said.
The average selling price of a Bovis
home rose by 3.9 per cent to £160,700
in 2010, and the group achieved 1,901
”
ANALYSIS l Bovis Homes 442.50 tain our forecasts for now. Our target price rises from 450p to 459p as we move range of products from books to CD
460
14 Mar to 2011 multiples, though our recommendation remains ‘Hold’ and DVD cases, said it would receive
p
£15m in cash on completion of the
440
deal and £5m in loan notes. Walstead
RICHARD CURR | PRIME MARKETS Investments is backed by Bank Leumi,

completions in the year, up from
1,803 in 2009.
The company, which expects to
open 33 new sales outlets in 2011,
“
Israel’s largest bank. St Ives’ magazine
420
business has been struggling in recent
Bovis has invested heavily in new land plots, which is a clear sign of years as excess capacity in the market
400 lowered prices, and advertising and
confidence, but it is perhaps the reintroduction of the dividend that draws the line

”
said it had made an encouraging start in the sand and moves the recovery from ‘tentative’ to ‘solid’. We believe the content moved to digital formats. The
in the first nine weeks of the year, 380 shares offer an attractive sector play at current levels. division posted a pre-tax loss of £5.1m
with reservations up 11 per cent. 20 Dec 12 Jan 1 Feb 21 Feb 10 Mar on revenue of £70.5m.

Vodafone may have to settle for £6bn Hydrogen Group revenue

for stake in French joint venture SFR up 67 per cent in 2010
Vodafone chief executive Vittorio SoftBank. Earlier last year it con- throughout 2009 and 2010, and that
▲

TELECOMS
▲

BY STEVE DINNEEN
VODAFONE may receive far less than
it had hoped for its stake in its French
joint venture, sending its shares
down two per cent yesterday.
It is in talks with Vivendi over the
sale of its 44 per cent stake in SFR but
it is understood the French firm is
only willing to pay £6bn. Vodafone
had hoped for closer to £7bn for the
asset, which it is purging as part of its
strategy to offload non-core assets.
Colao has said he will not be forced
into making the sale and several ana-
lysts said although they did not think
that £6bn was an unfair price, they
thought that Vodafone could wait to
see if the price improves.
A crucial part of the deal will be
whether Vodafone and Vivendi can
agree a long-term roaming deal which
would allow Vodafone customers to
access the SFR network in the future.
In November Vodafone sold its
£3.1bn stake in Japanese carrier
firmed the £4.3bn sale of its interests
in China Mobile. Other non-core ven-
tures likely to be disposed of soon
include Vodafone’s 25 per cent stake
in Poland’s Polkomtel.
A final decision on its large minor-
ity stake in US-based Verizon Wireless
is not expected until 2012 but ana-
lysts expect Vodafone to maintain its
interests after indications dividend
payments will resume later this year.
Vodafone’s shares closed 1.8 per
cent lower yesterday at 175.74p.
RECRUITMENT
RECRUITMENT specialist Hydrogen
Group reported a 67 per cent jump in
its full-year revenue yesterday, with
2010 figures reaching £123.4m.
The group’s net fee income rose 64
per cent to £27.6m and pre-tax profits
increased to £2.5m, compared with
£0.3m before exceptional costs in
2009.
Hydrogen chief executive Tim
Smeaton said significant investments
had been made in the company
the latest figures showed they were
starting to pay off.
“Our key plan over the past few
years has been the internationalisa-
tion of the business,” Smeaton told
City A.M. “And the 138 per cent
increase in international net fee
income shows we’re moving in the
right direction.”
Hydrogen has offices in Singapore
and Sydney as well as London, and
plans to open a new office in Hong
Kong in the first half of this year.
CITYA.M. 15 MARCH 2011 News 15

CITY MOVES | WHO’S SWITCHING JOBS Edited by Harriet Dennys in association with

SJ Berwin
The international law firm has appointed Tony
Angel, chief executive of healthcare technology
group Vantage Diagnostics, as a non-executive
director. As managing partner of Linklaters from
1998 to 2007, Angel presided over a 57 per cent
turnover increase and a 108 per cent profit
increase. In 2008, he joined ratings agency
Standard & Poor’s as executive managing direc-
tor and head of EMEA, where he was responsi-
ble for more than 1,000 employees worldwide.
Northland Capital Partners corporate finance in its London office.
The full-service investment bank has For the past seven years, Metcalfe has
appointed Tim Metcalfe as director of led Westhouse Securities’ London-
based corporate finance team.
Previously, he held positions at NM
Rothschild and Robert Fleming & Co.
Cordea Savills
The property fund manager has
appointed Nick Hayward as director of
institutional business. Hayward joins
from JP Morgan Asset Management,
where he was a client portfolio manag-
er for real assets in Europe.
Yorvik Partners
The debt broker-dealer has appointed
Paolo Taddonio as chief executive.
Taddonio, who joins the firm immedi-
ately, was previously head of fixed
income, currencies and commodities for
the Americas at Société Générale.
White & Case
The law firm has appointed Maxim
Telemtayev as executive partner in the
firm’s office in Almaty, Kazakhstan.
Telemtayev joins from Macleod Dixon,
where he was managing partner for the
law firm’s practice in the Republic of
Kazakhstan.
MGM Advantage
The retirement income specialist has
appointed Andrew Tully to the newly
created role of retirement income tech-
nical manager. Tully joins from
Standard Life, where he held the role of
senior pensions policy manager.
Sacker & Partners
The pensions law firm has promoted
Claire van Rees to associate. Van Rees
joined Sacker & Partners from Hogan
Lovells in 2010 and has six years’ pen-
sions experience.
FXall
The electronic foreign exchange plat-
form has appointed Kevin Lupowitz as
chief information officer. Lupowitz, who
joins from Liquidnet, will be responsible
for leading FXall’s technology strategy
and creating opportunities for growth.

To appear in CITYMOVES please email your career

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updates and pictures to citymoves@cityam.com morganmckinley.com

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ANALYSIS l WPP ANALYSIS l AMEC ANALYSIS l Ashmore

850 p 772.00 1220
p 1115.00 370 p
14 Mar 14 Mar 311.70
830 14 Mar
350
1180
830
330
830 1140

760 310

14 Feb 21 Feb 28 Feb 7 Mar 14 Mar 14 Feb 21 Feb 28 Feb 7 Mar 14 Mar 14 Feb 21 Feb 28 Feb 7 Mar 14 Mar

WPP AMEC ASHMORE

Citi rates the marketing group “buy /medium risk” with a target price of
950p. The broker has downgraded its 2011-12 forecasts by one to three
per cent thanks to currency movements, but still expects organic growth
of 5.6 per cent this year once the firm gets through the traditional “mid-
year doldrums”. Citi says WPP remains a cheap play on global advertising
strength, though believes rival Publicis has more short-term catalysts.
Evolution Securities has downgraded the energy services firm to “add”
from “buy” with a target price of £13.50. The broker expects delays to UK
plans to build 11 new nuclear reactors over the next 15 years in the wake
of the Japanese earthquake, hammering AMEC’s nuclear expansion.
However, Evo adds that nuclear power only accounted for nine per cent of
AMEC sector revenue in 2010 and that the shares remain good value.
Peel Hunt rates the investment manager “buy” with a target price of 410p.
The broker thinks Ashmore’s recent expansion into emerging markets is a
sensible long-term move, though expects immediate benefits to be mod-
est. Peel Hunt has kept its 2011 forecasts unchanged, but has hiked its
2012 earnings per share forecast by five per cent to 28.8p, supported by
the firm’s purchase of a stake in Emerging Markets Management.

FTSE hits a three-month low Wall Street suffers

as Japanese disaster deepens in quake aftermath
luxury products would suffer in the November low to the February dropped 13 per cent to $32.62 on the

THELONDON Japan.
“The market doesn’t forget and in
high. The next support, a 61.8 per
cent retracement is at 5,744. THENEW YORK New York Stock Exchange. Both
nuclear power companies traded on

REPORT
1995 following the Kobe earthquake,
a smaller disaster compared to last
Friday’s one, we must remember
that the Nikkei lost over 20 per cent.
REPORT
Graham Secker, European equity volume that was more than 10 times
strategist at Morgan Stanley, said their 10-day average.
the bank had moved to a more General Electric, which has com-
defensive stance, with telecoms bined nuclear ventures with Hitachi,

T
HE FTSE 100 share index hit a As things stand we’ve lost nearly 10 looking particularly favourable, as dropped 2.2 per cent to $19.92 and

fresh three-month closing low
yesterday, with some sectors
seen vulnerable to further falls
as the extent of the damage in Japan
after the earthquake and tsunamis
becomes clearer.
Luxury goods firms such as
Burberry Group and insurers includ-
ing Aviva and Catlin Group were
among the top fallers as Japan faced
the economic impact of a disaster
that has killed thousands.
The FTSE 100 closed down 53.43
points, or 0.9 per cent, at 5,775.24.
The blue-chip index has lost almost
200 points in the past four trading
days with sentiment weighed on by
violence in Libya, Eurozone debt
worries and Japan.
British-listed insurers fell further
with Aviva and Catlin each falling
more than three per cent.
“The earthquake, tsunami and the
aftershocks expected this week are
likely to generate one of the largest
reinsurance losses seen,” said Kevin
Ryan, analyst at Investec Securities.
“If this happens, it will affect
insurance and reinsurance pricing
and it may affect equity markets.”
Fashion group Burberry shed 4.3
per cent as analysts said demand for
per cent,” a trader said.
Temporary power generators
provider Aggreko rose 8.2 per cent as
demand for its services was seen
coming from Japan. The firm said it
was ready to equip Japan with some
of its self-contained gas and diesel
generators if asked.
Meanwhile gas firm BG Group was
up 3.7 per cent. “Disruptions to
nuclear power supply could see
Japanese LNG (liquid natural gas)
demand increase. This would reduce
global LNG oversupply and support a
recovery in European gas and power
prices,” UBS said in a note.
BG Group signed a 20 year LNG
sales deal with Tokyo Gas last week.
Away from Japan, strong sales of
the second-generation iPad in its
opening weekend boosted
Imagination Technologies up 5.5 per
cent. Its graphics chip is used in the
popular tablet.
Lack of confidence among
investors dogged the FTSE, which is
also under pressure from technical
indicators, which suggested that the
index is vulnerable to further signif-
icant weakness.
The index was below 5,812, the 50
per cent Fibonacci retracement of
he saw a peak in leading indicators
being reached.
Risky assets such as banks, miners
and integrated oils were all down as
sectors.
Heavyweight Vodafone was a sig-
nificant drag on the index, slipping
2.2 per cent after the Financial
Times said European telecoms and
entertainment group Vivendi is not
willing to pay much more than
£6bn for Vodafone’s stake in SFR.
Miner Vedanta rose 1.6 per cent
after the Indian regulators said they
had wrapped up an investigation
into the firm’s $9.6bn (£5.9bn) pur-
chase of some of Cairn’s assets,
fuelling speculation that the acqui-
sition will win approval.
ANALYSIS l FTSE
5,775.24
p 14 Mar
6,100
6,050
6,000
5,950
5,900
5,800
5,800
20 Dec 12 Jan 1 Feb 21 Feb
U
S stocks fell in the wake of
Japan’s devastating earthquake
yesterday, but other than specif-
ic industries such as nuclear
power, the broad impact on equities
was expected to be short-lived.
Trading volume was unusually low
compared with other sell-offs, com-
ing in at 7.68bn shares traded on the
New York Stock Exchange, the
American Stock Exchange and
Nasdaq, below last year’s daily aver-
age of 8.47bn. The recent pullback in
stocks had been accompanied by high
volume.
“I’m encouraged that we’re seeing
lighter volume on a down day since
that could suggest less enthusiasm
for selling,” said Hank Herrmann,
chief executive of Waddell & Reed
Financial.
Nuclear power stocks fell after
explosions at a Japanese plant. The
Market Vectors uranium and nuclear
energy exchange traded fund
slumped 12 per cent while the Global
X Uranium ETF sank 17 per cent. But
the Market Vectors Solar Energy ETF
of alternative energy shares climbed
7.2 per cent.
Shaw Group sank 9.2 per cent to
11 Mar $34.87 in the session while Camec
was the top percentage decliner on
the Dow.
“This is a knee-jerk reaction, but it
could put a lid on building new
nuclear plants,” said James Dunigan,
chief investment officer at PNC
Wealth Management.
Japanese ports handling about
seven per cent of the country’s indus-
trial output sustained major damage,
disrupting the flow of goods globally.
The Dow Jones industrial average
was down 51.24 points, or 0.43 per
cent, at 11,993.16. The Standard &
Poor’s 500 Index was down 7.89
points, or 0.60 per cent, at 1,296.39.
The Nasdaq Composite Index was
down 14.64 points, or 0.54 per cent, at
2,700.97. Texas Instruments fell 2.2
per cent to $33.80 in extended-hours
trading after the chipmaker said it
will lose revenues due to production
delays at its Japanese facilities from
quake-related interruption of power.
US-listed shares of Japanese compa-
nies declined and the BNY Mellon
index of leading Japanese American
Depositary Receipts lost 5.3 per cent.
Toyota Motor, which said it would sus-
pend production at all its Japanese
car plants, fell 4.6 per cent to $81.73
yesterday.
 16
Wealth Management
GOLD REMAINS
THE ULTIMATE
SAFE HAVEN
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
L
AST week brought up a host of challenging issues
for investors which seem likely to build in intensity,
at least in the short-term. The terrible earthquake
and tsunami which hit Japan on Friday has added
to nervousness leading to a general loss of risk appetite.
The sell-off in equities, the surge in the yen and last
week’s dollar rally all conspired to wrong-foot investors.
Consequently, markets which have out-performed
recently (such as oil and precious metals) have come
under pressure as hedge funds and others rush to
lighten up their long positions to raise cash.
The sell-off in oil was exacerbated by the shifting
geopolitical situation across north Africa and the
Middle East. In Libya, forces loyal to Gaddafi success-
fully counterattacked anti-government rebels. This
increased the likelihood of a quick resolution to the
unrest. In addition, the planned “Day of Rage” in Saudi
Arabia passed without major incident. But there were
violent protests in Bahrain on Sunday and Saudi forces
have crossed over the causeway between the two
kingdoms and have entered the main island. This has
the potential to destabilise the region far more than
protests within Saudi Arabia alone, as it pits Sunni
against Shia in a highly visible manner. The prospect of
an escalation in these tensions saw traders move back
tentatively into crude oil yesterday.
Precious metals are also proving to be highly
volatile. Last Friday, silver prices were slammed lower
for a second day in a row with $36 per ounce proving
to be a significant resistance level. Given the stunning
rally in silver over the last six weeks, some profit-tak-
ing and consolidation would seem in order. Although
silver then recovered strongly, it was caught up, along
with crude oil, in a “risk asset” sell-off as long-side
leveraged speculators were forced to unwind positions
due to margin calls in other financial instruments. But
despite this, precious metals are finally behaving as the
ultimate stores of value. They are now eclipsing the US
dollar as a safe-haven for investors. Although the sell-
off in silver has been vicious, the bulls can take com-
fort that gold has managed to hold onto support in the
$1,400/10 range. If it can hold above here, then this
should help silver to stabilise, and build on support
around the $34 level.
WAITING BY THE PHONE.
LOSING SLEEP.
CANCELLING DATES.
You could say GFT customer service reps are a bit obsessed.
That’s why they’re always available to answer your questions—even if you need to ask them at 3 AM.
What else would you expect from a world-class spread bet dealer?
When trading CFDs, spot forex, or spread bets, you can lose more than your initial deposit.
Visit gftuk.com to open an account and put them to the test.
CITYA.M. 15 MARCH 2011
| Contracts for Difference
Uncertainty hangs over
Japan in wake of quake
The country has
been in the doldrums
for years and this
disaster won’t help,
says Philip Salter
T
HE Great Kanto earthquake struck
Japan in 1923, killing over 100,000
people. In consequence, one day
every September, children train for
the next earthquake. Tragically, last Friday
that training was once again put to use. On
Monday, the Nikkei index slumped 6.18 per
cent, with the prospect of further falls over
the coming days.
Sentiment towards Japan has been bear-
ish for years – in fact, it hasn’t recovered
from the bursting of its property bubble
twenty years ago. But as Angus Campbell of
London Capital Group says, the disaster has
been “incredibly bad timing”. “We have
seen anaemic growth in Japan and this
comes at a time when there were small
glimmers of hope forming.” Campbell sug-
gests that the reaction to the Kobe earth-
quake could be illustrative. Sixteen years
ago Kobe struck and the Nikkei plunged by The reconstruction job is going to be a mammoth task Picture: REUTERS
around 25 per cent over six months.
Companies involved in the nuclear disaster is still unknown. However, she back into recession.”
industry have come in for the biggest believes “the drop in domestic demand, as David Jones of IG Group is optimistic in
drumming. Tokyo Electric Power, which well as the reduction in factory output, will medium term though, suggesting that
manages the Fukushima plant, fell 24 per most likely see a second successive quarter things might turn once the costs of
cent, while Toshiba, which makes nuclear of contracting GDP and therefore a slip clearing up after the disaster and the
reactors, is down 16 per cent. Baum is wor- uncertainty surrounding the nuclear issues
ried about the industry recovering “as the ANALYSIS l Nikkei 225 currently weighing heavily on markets
Japanese have been long term exporters of 10.80k become clearer. Jones says that with the
JPY
safe nuclear technology, as well as world 10.70k Nikkei having dropped around fifteen per
leaders in research and development in cent in the last three months, some confi-
nuclear energy.” Carmakers have also 10.60k dence might return in the next few days.
taken a tumble. Nissan and Toyota are 10.50k
CFD investors might consider backing this
down 9.5 per cent and 8 per cent respective- mid-term optimism.
ly. Construction is the only area that looked 10.40k Hopefully, Japan can recover from this
bullish. Nishimatsu Construction is up 21 10.30k
catastrophe as quickly as possible and its
per cent and Kajima is up 17.9 per cent. “lost economy” will find its way out of the
Lisa Baum at Cantor Index says that it is 10.20k doldrums. But realistically most investors
hard to know what is going to happen in Source: Yahoo Finance are pessimistic about its long-term future –
the long-term, while the full extent of the 20 Dec 2011 17 Jan 31 Jan 14 Feb 28 Feb earthquake or no earthquake.
SPREAD BETS | CFDs | FOREX
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CITYA.M. 15 MARCH 2011 17

THE TIPSTER CFDs in temporary power

solutions provider Aggreko
were popular on Monday as a
SAUSAGE ROLLS, result of Japan’s power prob-
lems. It climbed nearly 6 per
POWER, SILVER cent, getting back above the 50-
day moving average in the
AND VOLATILITY process. The 100-day moving
average at 1,508p is the next
cheaper jewellery is likely to
increase with a shift to silver.
Capital CFDs quotes May Silver
at $35.79-$35.82.
Despite incredibly volatile oil
prices, the petrochemicals sector
is failing to find much love from
investors. The threat of geopoliti-
cal issues disrupting output is

A
NALYSTS are expecting
Greggs’ final results tomor-
row to show an increase in
profit. Last year saw a
boost for the bakers. However, ris-
ing commodity prices have been
dominating the headlines this year.
Cantor Index offer a daily spread
of 479.1p-483.8p.
hurdle to a push higher. Spread
Co offers a spread of 1,488.9p-
1,492.1p.
There is talk of a potential rise
of silver to $50/ounce by the
end of the year, as production is
not keeping up with current
demand. With gold prices rising
as well, consumer demand for
leaving the sector as a whole to
suffer. BP – which could be con-
sidered to still be trading at a
discount after last year's huge
spill in the Gulf of Mexico – is
lagging along with its peers.
Current IG Markets price is
464.10/464.15p.
Philip Salter

Japan’s energy minister has ordered the release of some strategic oil stocks

Events in Japan
decide nuclear
option’s future
CFD opportunities in the energy sector
hinge on reactor’s fate, says Craig Drake

S
INCE the impact of the earth-
quake that hit Japan last week,
and the devastating effects of
the tsunami that followed in its
wake, the Japanese central bank has
been throwing yen by the trillions into
the economy to try and mitigate the
disaster’s effects. At the same time, the
government has taken a similar inter-
ventionist approach to the country’s
oil reserves.
According to Banri Kaieda, Japan’s
de facto energy minister, the Japanese
government has reached the decision
to allow the release of three days’
worth of consumption from the coun-
try’s strategic petroleum reserves.
These are held by the private sector to
ease oil supply shortages.
The Dow Jones Japan electricity and
the oil and gas total stock market
indices, which have seen a -11.5 per
cent and -8.69 per cent shift respective-
ly on the US dollar price return since
the earthquake hit, will have investors
waiting in the wings. However, with
the government already having
demonstrated its intention to inter-
vene heavily, those ready to speculate
in the sector may be kept at bay.
In the long term, the future of the
nuclear fuel industry will hinge on
that of the nuclear reactor of Tokyo
Electric Power Company’s (TEPCO)
Fukushima Daiichi reactor.
Ankit Jain, equity research analyst
at Standard and Poor’s, views the like-
ly outcome of events as being higher
regulation of the industry, pushing
governments further towards a focus
on sustainable energy: “Safety con-
cerns alone may prompt governments
to explore other power sources. Near
term, we expect fossil fuels to be the
key energy beneficiary of the events in
Japan. However, on sustainability
grounds, we believe the ultimate win-
ner will be renewables.”
David Morrison, market strategist at
GFT, does not see the outcome as
being so definite: “There has been a
reticence in developed nations to
ramp up their nuclear fuel producing
capacity, however there has been a
steady move amongst the developing
BRIC nations, especially India and
China, to expand their energy base,
decreasing their reliance on fossil
fuels in favour of nuclear energy.” As a
result of this, as you can see from the
graph below, Cameco, Paladin and
Uranium One, which together pro-
duce around 20 per cent of the world’s
uranium, have seen healthy growth.
Although he says that TEPCO’s sec-
ond reactor could be to nuclear ener-
gy what the BP oil disaster was to
deep sea drilling, ironically, he pre-
dicts that BP, along with other oil
companies, could be a big winner as
part of Japan’s need for oil in its
rebuilding operation over the coming
months.
ANALYSIS l Top uranium producers
%
80
60
40
Cameco
20 Paladin
Uranium One
0
Oct Nov Dec 2011 Feb Mar
 18 Markets & Investment CITYA.M. 15 MARCH 2011

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 Lifestyle
19

| Restaurant WORDS BY TIMOTHY BARBER

A tapas triumph
in Covent Garden
The folks behind Salt Yard and vibrant bar and restaurant that has all the
boisterous atmosphere of a proper old
West End boozer with food that’s far supe-
Dehesa have done it again with rior to anything you’d find in one.
It’s also smart business: tapas is surely
this moreish, theatreland eaterie the ideal cuisine for theatregoers needing
to fit in a bit of this and that before cur-
tain-up, and with tapas of this quality
Opera Tavern is in a they’ll be coming back in the interval and
Opera Tavern former pub. missing the second half.
We were due to eat in the main restau-
23 Catherine St, WC2B 5JS, rant area on the first floor, but thanks to a
Tel: 020 7836 3680 www.operatavern.co.uk booking mix-up, found ourselves without really working out where to start. The wine list is impressive, with plenty
squeezed into a tiny table in a nook in the After struggling over it with the help served by the glass to mix and match
FOOD hhhhi bar downstairs – a happy mistake. It’s of a few glasses of Prosecco, we gave up with different courses. Puddings – well,
SERVICE hhhhi noisy and fun down there, with the ele- and let the staff decide for us, tucking um, I can’t remember what they were. I
ATMOSPHERE hhhhi ments of the old pub interior – grand win- into a healthy selection (a cardiologist was enjoying myself too much – it’s that
dows, dark wood panelling, that lively might contest that) of the whole menu. kind of a place. I think there was some
Cost per person without wine: £35 tavern atmosphere – injected with a bit of Among the stand-outs were the deeply unctuous chocolate fondant involved,
Latin vim. Attention is focused on the bar, flavoursome Iberico ham carved in strips along with some sweet dessert wine.
where you’re invited to sit and eat tapas from the aforementioned leg; beef onglet Oh I’ll say it, I fair staggered out of

O
PERA Tavern has been opened by finger food. Beyond it, a stout leg of served pink and bubbling hot from the Opera Tavern. The wine flowed, the food
the husband and wife team behind Iberico pork sits on its stand next to a grill on a skewer with porcini mushroom came in endless rounds of small plate joy,
two of London’s best-regarded tapas large robata grill, whose smoky, meaty and winter truffle; and delightful mini my pal and I had a jolly good argument –
restaurants, Salt Yard and Dehesa. fumes create a beautiful fug. burgers of grilled pork and foie gras, a waving pinchos morunos skewers in the
This one’s in Covent Garden, just off the The menu is divided into smaller bar combination that felt naughtily indul- air to make our points – and set the
piazza, and used to be one of theatreland’s snack, charcuterie and grill dishes, and gent. Some sturdy salt cod was served world to rights by the time we finished
better, friendlier pubs. more elaborate tapas dishes. It’s a little with pleasing “arroz negre” squid ink- things off with some fortifying sherry
Losing a good pub is a shame, but it’s confusing and overwhelming, one of blackened rice, while the confit of pork (there is a neat list of 10). As I said, it’s
exciting to see it reborn as a thriving, those menus where you can look and look belly was heartily wonderful. that kind of a place.

SUMMER SUNSHINE PARTY WEEKEND

FOR THE MOST SOUGHT AFTER SOCIAL
EVENT IN THE CAPITAL HEAD FOR
HURLINGHAM PARK ON THE FIRST
WEEKEND IN JUNE WITH 3 DAYS OF POLO
ACTION AND THE FABULOUS ‘VEUVE
CLICQUOT AT HURLINGHAM’ PARTY

Start the weekend early on City Friday, enjoy the charms

of Ladies Day on Saturday and see it through to Finals Day
and the Veuve Clicquot at Hurlingham Party on Sunday.
BOOK If polo isn’t enough visit our Harrods Food Court, Shopping
NOW Village, Mahiki Bar or the Punchbowl Pub – altogether
VIP PACKAGES making MINT Polo in the Park the best event in town!
SELLING
FAST Contact us now for more information on our range
of hospitality packages to suit any budget
T: +44(0)20 7 936 5284
E: Rachel@cityevents.uk.com
mintpolointhepark.com
20 Lifestyle | Caribbean Travel
Barbados
BEST BEACH
Crane Beach is considered by many to be
one of the island's most beautiful beach-
es. In fact, Lifestyles of the Rich and
Famous rated it as "one of the 10 best
beaches in the world". The name “Crane”
was derived from the large crane situat-
ed at the top of the cliff which was used
for loading and unloading ships. The
Crane Resort & Residences, standing on
the cliff above the beach, has been a
favourite with honeymooners since 1867.
BEST ART AND CULTURE
Crop Over is Barbados' most popular and
colourful festival. Its origins can be
traced back to the 1780's, a time when
Barbados was the world's largest pro-
ducer of sugar. At the end of the sugar
season, there was always a huge celebra-
tion to mark the culmination of yet
another successful harvest – the Crop
Over celebration. The festival is a cultural
mix of song, dance art and craft culmi-
nating with Kadooment Day, a carnival
parade featuring large bands with mem-
Bermuda
BEST BEACH
All along our fine shores you can find
beaches bathed in pink sand, made
from finely pulverized remains of calci-
um carbonate shells and skeletons of
invertebrates such as corals and clams.
The pink sand makes the already poetic
scenery that much harder to resist.
Once you step foot on Horseshoe Bay
Beach you will realize why it is the
most celebrated on the island. The long,
sweeping crescent of pink sand makes
it a popular choice any time of year.
The nearby Beach House offers snacks,
rentals and changing facilities.
BEST ART AND CULTURE
The National Museum of Bermuda is
set within the Keep, a sprawling six-
acre fortress at the edge of the Royal
Naval Dockyard. Eight historic build-
ings, including old munitions warehous-
es and the newly restored
Commissioner's House, contain a great
variety of exhibitions on our rich histo-
ry. Whether taking in some local histo-
bers dressed in colourful costumes
depicting various themes.
BEST AREA FOR NIGHTLIFE
The St Lawrence Gap is one of Barbados’
most lively areas and is home to a num-
ber of hotels, apartments, restaurants,
shops, street-vendors (both food and
handicraft), bars and clubs. After dinner
The Gap, as it is known locally, comes
alive and people can be seen hanging out
on the decks of the bars, watching the
constant traffic or dancing the night
away in one of the nightclubs.
BEST ACTIVITIES/SPORT
For avid sporting enthusiasts visiting
Barbados, there is an abundance of
activities year round to whet the
appetite. These include cricket, football,
horseracing, polo, golf, rallying and div-
ing. Many hotels offer water sports
activities including water-skiing, wind-
surfing, snorkeling, sailing and parasail-
ing. The West Coast is ideal for
snorkeling and water-skiing, while the
ry, enjoying stunning views from the
ramparts, or exploring Bermuda's
largest fort, there is plenty to see and
learn at this important cultural attrac-
tion.
BEST ROMANTIC EXCURSION
One step on our shores and you’ll
understand why we say, “Feel the
Love”. You’ll discover romance at every
corner, from our unique Moongates to
our pink sands. Start your day with an
intimate couples’ massage at one of
our world-class spas. End your day of
romance with a private dinner on the
beach, and just let our beautiful azure
waters, blushing sands and symphony
of whistling tree frogs be your back-
drop.
BEST ACTIVITIES/SPORT
On our island you are never more than
a deep breath away from the underwa-
ter experience of a lifetime. Dive below
to visit more than 400 historic wrecks,
some dating back to the 15th century.
in assocation with
CITYA.M. 15 MARCH 2011
South Coast is known as one of the
world’s best areas for windsurfing. A
must-do is a catamaran cruise with a
Bajan lunch and snorkelling with turtles.
CHOICE PICK
The British Airways Football Legends
Invitational Tournament is scheduled for
10-11 June. The event, endorsed and sup-
ported by the Professional Football
Association (PFA), will feature eight UK-
based, eight-man teams including
Manchester United, Chelsea, Arsenal,
Liverpool, Tottenham Hotspurs,
Newcastle, Blackburn Rovers and a
Premier League All-Star team. These
teams will feature past greats including
Alan Shearer, Andy Cole, Matt LeTissier
and Roberto DiMatteo. For more details,
visit the website www.barbados-football-
legends.com.
British Airways offers holidays to
Barbados from £549pp. Terms and con-
ditions may apply. See ba.com for
details.
Bermuda is the undisputed shipwreck
capital of the Atlantic and is the high-
light of their trip for many visiting
divers. You can also explore over 200
square miles of coral reef through
snorkelling and diving.
DID YOU KNOW?
Since 2007, Bermuda has been home
to the PGA Grand Slam of Golf, the
season-ending showcase featuring
golf's premier foursome. The Mid
Ocean Club hosted the showcase in
2007 and 2008, and in 2009 and
2010 the tournament was held at our
recently renovated and world-
renowned Port Royal Golf Course. We
are pleased to announce that Bermuda
and the Port Royal Golf Course will
return as hosts through 2012 for the
29th and 30th editions of the event.
British Airways offers holidays to
Bermuda from £739 pp. Terms and
conditions may apply. See ba.com for
details.
CITYA.M. 15 MARCH 2011
Dominican Republic
BEST BEACH
Located on the southern tip of Punta
Cana, and just far enough from the
many resorts, Juanillo Beach features a
forest of coconut palms that give way
to a lazy coast of white sands.
Considered one of the best beaches in
the Dominican Republic and one of the
best in the world, Juanillo’s coral reef
shields its coast from rough surf, creat-
ing kilometres of serene waters lightly
washing Juanillo’s sands.
BEST ART AND CULTURE
Declared a UNESCO World Heritage
Site in 1991, the Colonial City of Santo
Domingo was the first urban settlement
in the Dominican Republic. It is also the
site of numerous New World firsts – the
first cathedral, hospital, palace, paved
street and university in the Americas
were all built here. The Colonial City is a
cultural gem with quaint colonial plazas
and narrow streets brimming with
Dominican culture in its authentic
shops, art galleries, cafes and bars.
Grenada
BEST BEACH
Grand Anse Beach and Morne Rouge
Bay are a pretty close tie, both are
white sanded with lots of space and
few crowds. Grand Anse allows visitors
to walk its full length and take exercise,
while dipping in and out of the gentle
waves. Morne Rouge’s trees and stun-
ning sunsets make it the perfect place
both for a day on the beach or a cocktai
after dark.
BEST ART AND CULTURE
Grenada’s culture revolves around its
food and its small boat festivals.
Experience cuisine that is infused with
nutmeg, cinnamon, ginger and other
locally grown spices, either at a local,
traditional bar or at one of the interna-
tional hotels. Visit Grenada during the
Workboat Regatta at the beginning of
February for a truly memorable experi-
ence and get to know the locals and
understand how this island state makes
the most of the sea and the wonderful
fresh fish within it.
BEST AREA FOR NIGHTLIFE
As the sun sets on the Dominican
Republic’s east coast, Punta Cana’s
famous nightlife begins. Mega clubs
like Mangu, Areito and Imagine (a
disco inside a cave) attract a mix of
visiting tourists and locals from
around the country. For a relaxing,
local night out, many head to beach
bars such as Soles and Photobar. Out
and about in Punta Cana, the mix of
people is just as varied as its music,
with Latin beats, reggaeton, electron-
ic and hip hop.
BEST ACTIVITIES/SPORT
Cabarete is a small, laid-back beach
village and the mecca for water
sports in the Dominican Republic. The
physical make-up of the area and its
winds make it ideal for kiteboarding,
windsurfing and surfing. Both water
sport fanatics and beginners alike
flock to Cabarete from around the
world. Visitors will find numerous
schools that can accommodate any
BEST AREA FOR NIGHTLIFE
Grenada’s nightlife revolves around the
small beach-side bars and restaurants,
servicing local Carib beers and a whole
range of Rum punches.
Grenada boasts three main nightclubs –
Fantasia 2001, Bananas and Karma –
all of which are within easy distance of
the hotels.
BEST ACTIVITIES/SPORTS
Grenada, only the size of the Isle of
Wight is lucky enough to have four
hotels with good spa offerings;
LaSource, Spice Island, La Luna and
Calabash Hotel. Each with a very dif-
ferent approach. For those of a more
active bent, watersports have devel-
oped rapidly over the past few years,
and Grenada now boasts the best
wreck diving in the Eastern Caribbean;
the Caribbean’s first underwater sculp-
ture park; a pirate ship for all the fami-
ly; donut boats; Shadofax luxury
champagne and lobster and snorkelling
tours; Seafaris powerboat eco adven-
Lifestyle 21
skill level, whether you just want to
rent out equipment or get some one-
on-one lessons. The surf’s always up in
Cabarete.
BEST KEPT SECRET
Exclusivity meets cosiness at the
Peninsula House in the Dominican
town of Las Terrenas. A boutique
guest house, the Peninsula House
offers guests pampering service, pri-
vate gardens and an ocean view
restaurant with candlelit dinners, all
within a warm home resplendent with
Victorian furnishings. Located in the
lively beach town of Las Terrenas, the
Peninsula House is in close proximity
to the town’s wide variety of restau-
rants, nightlife, beautiful beaches and
natural attractions, lsuch as the
famous Limon Waterfall.
British Airways offers holidays to
Dominican Republic from £869pp.
Terms and conditions may apply. See
ba.com for details.
ture tours; and great river tubing on
Balthazar River
CHOICE PICK
Belmont Estate is the premiere tourism
attraction on thGrenada. Located in St
Patrick, only an hour’s scenic drive from
the island’s capital of St George,
Belmont Estate is a unique and authen-
tic 17th century plantation that offers
guests an opportunity to participate in
and observe the workings of a fully
functional historic plantation. Visit the
organic farm, gardens, heritage muse-
um, and cocoa processing facilities plus
a goat dairy farm, petting farm, and
craft market.Grenada Carnival, which
takes place on the second Monday and
Tuesday in Augus, is the friendliest car-
nival in the Caribbean, safe and fun for
the family.
British Airways offers holidays to
Grenada from £659 pp.Terms and con-
ditions may apply. See ba.com for
details.
 22 Lifestyle
Show your
mother
you care...in
a luxe spa
Mothers Day is a great chance to
share some pampering with your
favourite lady, says Zoe Strimpel
If you don’t want to let Mothers Day, on 3
April, creep up on you, here are four great
spa packages that will show your mother
you care (and haven’t forgotten her).
CITY POINT CLUB, MOORGATE
Best for: the City mum (or the super-busy
City daughter).
The package: Called “I Love Mum”, it cer-
tainly gets to the point. You’ll both spend a
day at the club (a favourite with City high-
flyers) and will lunch together in your
robes, sip champagne, use the spa facili-
ties and each have a short massage and
facial. £199 for two. To book, email
Katie.shemesh@thecitypointclub.co.uk.
MANDARIN ORIENTAL, KNIGHTSBRIDGE
Best for: fashionista mums
The package: Go and paint the town red
with this package of the same name,
which combines every woman’s favourite
shoe maker, Christian Louboutin, with a
day of luxury at the Mandarin Oriental.
First, nails are sorted with a red manicure
for you both. Next: a private appointment
at Louboutin’s Mount Street store. To cele-
The revolution will be beamed into your head
GEEK
SPEAK
@steve_dinneen
THE revolution is here and it won’t be tele-
vised. It will be beamed directly into your
head. It will be everywhere you go, knowing
what you are thinking, what you are wearing.
It will probably be able to guess what you are
going to do next, before even you know it.
Welcome to “Gladvertising,” the latest
weapon in the digital battlefield. It uses tiny
cameras to scan your facial expression
and tailor adverts to suit your mood.
Its “face-tracking algorithm” can dis-
tinguish between six emotions: happy,
angry, sad, fearful, surprised and dis-
gusted. It’s certainly clever, but these
six categories seem to imply a rather
cynical breakdown of the human psy-
che.
Of the six moods, at least four are
negative (angry, sad, fearful and dis-
gusted) and even surprise is question-
able. Sure, a surprising event could be a
nice party where your friends all jump
out from behind the sofa, but it’s just as likely
to be the bloke from down the road whipping
Embark on a day of
pampering to recon-
nect with Mother
dearest.
brate your inevitable purchase, head to
the Mandarin bar for cocktails. Next day –
it’s a boozy brunch in Bar Boulud with a
bottle of wine and two Bloody Marys. From
£495 per person. Call 0207 235 2000 to book, or
go to www.mandarinoriental.com.
CHI YU, MARYLEBONE
Best for: Holistic mums with a penchant
for Eastern therapies
The package: A double massage.
Therapists at this Japanese spa have some
of the best technique in London. Mothers
are tactfully pointed towards an anti-age-
ing Naturalift facial with a cleanse,
enzyme peel, massage, mask and moistur-
ising. Daughters receive the Chidoriya
Japanese facial with rice bran, camellia oil
open his trench-coat on a secluded pathway
(an opportunity for a Crime Stoppers ad, per-
haps).
What adverts could you tailor to surprise?
The number for a health-care clinic in the split
second before a truck splatters you into the
tarmac? For that matter, disgust doesn’t seem
like the ideal emotion to associate with your
product either. Maybe an advert for Clarks
shoes appearing as you step in a particularly
virulent pile of dog mess makes a twisted kind
of sense but do you really want your product to
be forever associated with the smell of faeces?
And what if you just have a miserable face?
Are you to be forever taunted with products
designed to cheer you up, like sun drenched
beaches and chocolate, when all you want is to
find out where you can pick up a bottle of drain
unblocker?
Gladvertising isn’t the only major develop-
ment heading our way in the digital realm.
Ads will be beamed from the cloud onto bikes
and phone books. They will know when it’s
raining and offer you an umbrella, or try to
sell you a car if you’re waiting at a bus stop.
You will even be able to buy special sun-
glasses to project adverts onto anything
you look at. The whole world will become
a blank canvas. Look at a bottle of wine
and Tesco can tell you whether it is on 3
for 2. A glance at Picasso’s Guernica
might try to sell you a package holiday
to Tenerife. Almost everything can be cov-
ered and there will be nowhere on earth it
can’t reach you. The future is here, we just
didn’t see it arrive.
and aduki beans. The highlight is the lym-
phatic drainage using a jade roller. You’ll
both look like a million bucks afterwards.
£195 for two people. www.chi-yu.co.uk
THE GROVE, HERTFORDSHIRE
Best for: Lovers of country house grandeur
The package: Set amid the glorious
grounds of the Home Counties’ most opu-
lent hotel, this package includes three
treatments, lunch and plenty of lounging:
Mum will have an ESPA massage and
facial plus a manicure with Leighton
Denny varnish. Next, she’ll have a two
course lunch in the garden and use of the
luscious Sequoia spa all day. Until 30 April.
£155 per person. To book, call the Spa on 01923
294 294.
NINTENDO 3DS TESTED
NINTENDO’s hotly anticipated 3DS will finally
arrive at the end of the month and I’ve been
testing it out for the last week, during which
time I haven’t put down (which raises some
troubling questions I don’t feel comfortable
answering here).
The Japanese firm has a lot to prove, with
critics saying it is fighting a losing battle
against increasingly sophisticated mobile
phones. Thankfully, they are wrong: the 3DS is
brilliant. The pre installed software alone
offers a tantalising glimpse of what it is capa-
ble of. The augmented reality software, which
superimposes images over the inbuilt camera,
making digital objects appear to be in the
room with you, is bafflingly good. Within five
minutes of firing it up I had my workmates’
heads flying around the office while I fired
tennis balls at them (which, incidentally, is a
recurring dream I’ve been having). Digital ani-
mations danced across my desk. It’s like a
particularly vivid hallucination without the
possibility of terrifying flashbacks.
Launch titles will include Pilot Wings,
which will lend itself perfectly to the console’s
3D capabilities, and Super Street Fighter IV,
which you can play wirelessly against your
mates. Add to this the prospect of a 3D re-
issue of Ocarina of Time and you already have
a roster of games worth shelling out for. The
Wii changed the console world, paving the
way for the PlayStation Move and the Xbox
Kinect. The 3DS will do the same for hand-
held gaming. Out 25 March, from £187
CITYA.M. 15 MARCH 2011
The Scan:
off to the
clinic for a bit
of a surprise...
CITY DAD
W
HO knew that not going to work
could be so stressful? The day had
begun well, with an early morning
cup of tea and Radio Four while the
rest of the house slept. But then Noel had rolled
out of bed in a foul mood, bemoaning the 363
days remaining until his next birthday. And
presents. And party. I began to say something
about Easter and Christmas but in search of
vengeance he turned on me, asking why I was
still at home on a Monday morning and
whether I’d been fired. Six going on sixteen.
And now we’re in a gleaming consulting
room. Emma is recumbent, her belly exposed.
I watch it rise and fall. It doesn’t seem five
minutes since we were in the adjacent con-
sulting room looking at the tadpole with the
fierce heartbeat that would become Noel.
And even less time since – well, since the
miscarriage 18 months later. I realise Emma
must be anxious. I take her hand. She turns to
me. The young Australian sonographer
approaches, drying her hands on a towel. “OK,
we have all your details. Now, let’s have a look
shall we?”
Emma squeezes my hand. The sonographer
applies lubricating jelly and rolls the probe
firmly over Emma’s belly. The Undersea World
of Jacques Cousteau suddenly comes alive on
the screen. Caverns and gullies loom.
“Well, well” says the sonographer thought-
fully. She looks up from Emma’s belly. “Is
there a history of twins in either of your fami-
lies?”
We stagger out onto the street, photo-
graphs and video in hand; evidence for the
prosecution. Pedestrians, cars and buses go
about their business as if nothing out of the
ordinary had just happened. I need a ciga-
rette. I pat my pockets. I haven’t got a ciga-
rette. In fact, I realise I haven’t smoked in ten
years.
“Global warming. Cyber terrorism. Double
dip recession,” I ramble. “What kind of world
is this to bring a child into?”
“Or two” answers Emma, mischievously.
My phone rings. In a daze, I answer. It’s
Sandy.
“What the hell did you say to Ringel?”
“Sandy…” I begin but am entirely lost for
words.
“Anyway, what the hell,” he bellows.
“Doesn’t matter. Good work. They’ve just dou-
bled the size of the issue.” The phone goes
dead.
I turn to Emma. She is beaming. We
embrace. On the street. Oblivious to the rest
of the world.
“How shall we tell Noel?” she asks. “Six
years an only child. He’s not going to find this
easy.”
“Never mind Noel. How are we going to tell
Maria? She’s certainly not going to be happy
and if she leaves we’re going to be outnum-
bered.”
One step at a time” says Emma, reassuring-
ly.
I cling tightly to Emma. “I love you,” I say.
City Dad continues next week.
CITYA.M. 15 MARCH 2011 Lifestyle | TV& Games 23

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders: BBC News
8pm Holby City
9pm Silk
10pm BBC News
10.25pm Regional News
10.35pm Neighbourhood
Watched
11.20pm Girls Behind Bars:
Weatherview 12.25am Sign Zone:
See Hear 12.55am Sign Zone:
Human Planet 1.55am Sign Zone:
When Teenage Meets Old Age
2.55am Sign Zone: Natural World
3.55am Sign Zone: Nuns Aloud
4.50am-6am BBC News
6pm Eggheads
6.30pm Royal Upstairs
Downstairs
7pm Wonders of the Universe:
The creation and destruction of
matter.
8pm The Hairy Bikers: Mums
Know Best
9pm CHOICE Bible’s Buried
Secrets
10pm Have I Got Old News for
You
10.30pm Newsnight: Weather
11.20pm ICC Cricket World
Cup Highlights
12.20am BBC News
4am-6am BBC Learning Zone
6pm London Tonight 6pm The Simpsons 6.30pm 6pm Home and Away
6.30pm ITV News Hollyoaks 7pm Channel 4 News 6.25pm OK! TV
7pm Emmerdale 7.55pm 4thought.tv 8pm Gok’s
7pm 5 News at 7
Clothes Roadshow 9pm Heston’s
7.30pm Grimefighters 7.30pm Extraordinary Dogs:
Mission Impossible 10pm CHOICE
8pm Lion Country Lily Allen: From Riches to Rags 5 News Update
9pm CHOICE Caroline Quentin: 11.05pm The Big C 11.40pm 8pm Stansted: The Inside
A Passage Through India Facejacker 12.10am Cheltenham Story: 5 News at 9
10pm ITV News at Ten Festival Highlights 12.45am UK & 9pm CSI: Crime Scene
10.30pm London News Ireland Poker Tour 1.40am FIS Investigation
10.35pm FILM Before Sunset: Freestyle World Ski Championships
10pm CSI: Miami
BIBLE’S BURIED SECRETS
2.10am The Grid 2.35am KOTV BBC2, 9PM
Premiere. Romantic drama
Boxing Weekly 3am Powerboating 10.55pm CSI: NY New series. Dr Francesca
sequel, starring Ethan Hawke 3.30am Britain’s Favourite Yacht 11.55pm CSI: Crime Scene Stavrakopoulou examines the impact
and Julie Delpy. 2004. Race 3.55am Triathlon ITU Investigation of archaeological discoveries on
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Headlines Magazine 4.50am Full Metal 4am How Not to Decorate 4.45am
2.15am Crossing Jordan Challenge 5.45am-6.10am Nick’s Quest 5.10am Wildlife SOS
3am-5.30am ITV Nightscreen Wogan’s Perfect Recall 5.35am-6am House Doctor

SKY SPORTS 1 BRITISH EUROSPORT Cleveland 9pm Shock Docs: 11.30pm King of the Hill 12am Survivor 1am Deadliest Catch
SATELLITE & CABLE

7pm Sky Sports News at Seven
7.30pm Soccer Special 10.30pm
School of Hard Knocks 11pm A
League of Their Own 12am UEFA
Champions League Highlights
1am School of Hard Knocks
1.30am A League Football 2am
Football Asia 2.30am Revista De
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4.30am School of Hard Knocks
5am Football Asia 5.30am-6am
Football’s Greatest
SKY SPORTS 2
7pm Live UEFA Champions
League 10.15pm Revista De La
Liga 11.15pm Golfing World
12.15am ICC Cricket World Cup
2.15am-3.15am Golfing World
SKY SPORTS 3
4pm Live Golf 9pm Live Masters
Tennis 12am Pool 1am-3am
British Basketball
6pm Live WTA Tennis 10pm
Extreme Sports: Freeride Spirit
10.30pm World Touring Car
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Cycling
ESPN
7pm ESPN Exclusive Interviews:
Landon Donovan 7.15pm French
Top 14 Rugby Union 7.45pm
WRC: Access All Areas 8.45pm
NBA Tonight 9.15pm Baseball
Tonight 9.45pm ESPN Kicks:
Serie A 10pm World Series of
Poker Europe 11pm Live NHL Ice
Hockey 1.30am Live Major
League Soccer 4am World
Series of Poker Europe 5am
Planet Speed 5.30am-6am
Russian Premier League Preview
SKY LIVING
7pm Ghost Whisperer 8pm
Cougar Town 8.30pm Hot in
Teens Who Tie the Knot 10pm
Bridalplasty 11pm Criminal
Minds 12am CSI 2.40am
Charmed 4.20am Four
Weddings 5.10am-6am Maury
BBC THREE
7pm Total Wipeout 8pm Snog,
Marry, Avoid? 9pm Junior
Doctors: Your Life in Their Hands
10pm EastEnders 10.30pm 24
Hour Panel People 11.05pm
Family Guy 11.50pm Snog, Marry,
Avoid? 12.50am Junior Doctors:
Your Life in Their Hands 1.50am
24 Hour Panel People 2.25am
Total Wipeout 3.25am Young,
Jobless and Living at Home
4.25am-5.25am Working Girls
E4
7pm Hollyoaks 7.30pm Friends
9pm 90210 10pm The Cleveland
Show 10.30pm Bob’s Burgers
11pm The Ricky Gervais Show
The Big Bang Theory 12.55am 2am Weaponology 3am World
Scrubs 1.45am Accidentally on War Two 3.50am Extreme
Purpose 2.30am Rick & Steve: Engineering 4.40am Raging
The Happiest Gay Couple in All Planet 5.30am-6am How Does
the World 2.50am Reaper That Work?
CAROLINE QUENTIN: A PASSAGE
3.35am The OC 4.20am Style
Her Famous 5am-6am Switched DISCOVERY HOME & THROUGH INDIA ITV1, 9PM
The actress travels by camel to
HEALTH
HISTORY 7pm A Baby Story 8pm How
Jaisalmer, Rajasthan, before visiting
Ahmedabad, and ends the second leg
7pm How the Earth Was Made Clean Is Your House? 9pm The of her journey in Mumbai.
8pm How Britain Bridged the Eight-Limbed Boy 10pm 999
World 9pm Monster Moves Emergency 11pm Real ER: The
10pm Mega Movers 12am Bronx 12am The Eight-Limbed
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Bridged the World 2am Cities of Real ER: The Bronx 3am A&E
the Underworld 3am Dinosaur 4am Bringing Home Baby
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5am-6am Ancient Discoveries
SKY1
DISCOVERY 8pm Live to Dance 9pm FILM LILY ALLEN: FROM RICHES TO
8pm How Do They Do It? Gladiator 2000. 11.55pm Mental RAGS CHANNEL4, 10PM
8.30pm How It’s Made 9pm 1.55am Miami SWAT 3.50am The singer and her half-sister Sarah
Swords: Life on the Line 10pm Glenn Martin, DDS 4.20am Lost Owen plan to open a vintage clothing
HMS Ark Royal 11pm Get Out 5.10am-6am Sell Me the store, but retail guru Mary Portas is
Alive 12am Bear Grylls: Born Answer forced to deliver unpleasant news.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
3 22 21 16 40 16 12 30 
26 29
   
21 25
Place the numbers from 1 to 9 in each empty cell so that each 10 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 5 16
17 44
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 14 24 8
 
above or to the left of it. 6 20
You can only use the digits 1-9 31 
   and you must not use the
23 23
10 13    
same digit twice in a block. 22
  The same digit may occur 42  
11 28
  more than once in a row or
column, but it must be in a
9
9
8
7
16
 
35 3
    separate block.
17 9
20 14
  10 27
 

  ACROSS DOWN
1 Obvious and dull (5) 1 Injury which discolours
 
    WORDWHEEL C A
3 Firm open-weave
fabric used by
window-cleaners (5)
the skin (6)
2 Person born under the
sign of the ram (5)
Using only the letters in the Wordwheel, you have 7 Positive or favourable 4 Turned-back hems at
   ten minutes to find as many words as possible,
R G aspect (6) the ends of sleeves (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters I 10 Young horse (4)
11 The smallest
5 Dairy product (4)
6 Pay back (9)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
R E quantity (4)
12 Type of craftsman
8 Fixture found on a
chimney stack (3)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
I T (10)
15 Type of coffee topped
9 Epidermal pore in a
leaf or stem (5)
QUICK CROSSWORD 9 8 7 3 2 1 3 8
with steamed milk 13 Characteristic of

S T A R C H S R
6 3 1 2 4 2 1 6 SUDOKU         
and milk froth (10)
20 Afresh (4)
a sheep (5)
14 Solid substance
8 4 1 4 8 5 9
A I A C T I V E          21 Archaic word in the form of tiny
T U N N E L D A 3 1 8 2 6 1 4
        
Y S F R I E N D 7 6 1 5 3 2 4 meaning ‘in the loose particles (6)
        
R O M E O I C Y 1 3 5 2 9 6 7 8 direction of’ (4) 16 Dig into (5)
WORDWHEEL
        
U V E T A 2 9 6 3 8 7 4 22 Thin top layer on 17 Freight (5)
M M E E R R O R         
E M B A R K U A
7 9 4 1 2 9 3 a solid floor (6) 18 Named prior to
        
R L N E L S O N
1 5 5 9 3 3 1 The nine-letter word was 23 Curl of the lip (5) marriage (3)
2 6 9 8 1 8 4 2         
G H E T T O E C
STRETCHER         
24 Climbing plant 19 Informal name
E D W A R M T H 5 8 7 9 7 9 8 4
supporter (5) for a cat (4)
 Punter
24 CITYA.M. 15 MARCH 2011

| Cheltenham

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THE
SUPREME NOVICES’ AND SPINAL RESEARCH CHASE

That’s the Spirit Son

Spirit Son can give
Nicky Henderson
the perfect start to
the Festival

C
UE Card is aiming to do what I wouldn’t put anyone off having a Victor Chandler. He hated the heavy
Cousin Vinny and Dunguib small each-way interest in Malcolm ground at Haydock last time and will be
couldn’t by becoming the first Jefferson’s KING FONTAINE at 33/1 with much more suited to today’s conditions.
Supreme Novices’ Hurdle banker to
win since Brave Inca in 2004.
Colin Tizzard’s stable star has produced
some tremendous performances over hur-
dles this season, but the stats are against
him. Montelado in 1992 was the last
Champion Bumper winner to take this
race the following season and 13 of the
last 15 winners won last time out.
There is no doubt that Cue Card is the
likeliest winner, but it’s always a tough
race and he’s too short for me at 2/1.
Paddy Power are once again offering
their excellent Supreme Novices’ conces-
sion and will refund all bets if Cue Card
7PNKOKVGF
7 PNKOKVGF
F wins. Barry Geraghty has opted to ride
SPIRIT SON and that should be a tip in
itself as Sprinter Sacre also looks a top
HHCNNGTTGHWPFU
CNNGTTGHWPFU class novice.
I was hugely impressed with the selec-
tion’s jumping at Exeter last time and he
Q P#..HQWT
QP#..HQWT looks an each-way bet to nothing at 5/1
with Paddy Power, especially with the Cue
Card insurance.
%JCORKQPUJKR
%JCORKQPUJKR It’s interesting that Brian Ellison runs
Marsh Warbler in this rather than Friday’s

44CEGU
CEGU Triumph Hurdle and he might be able to
sneak into a place getting 8lb off the field.
The Stewart Family Spinal Research
Handicap Chase (2.40pm) is always one of
the big betting handicaps of the week.
Blazing Bailey has been revitalised this
Place
NCEGaCday
FC[ofQHrace
2NCEGCFC[QHTCEG
2 bet
TCEG season and Alan King’s popular nine-year-
old heads the weights on 11st12lb.
onGVtoday’s
QPVQFChampion
DGVQPVQFC[oU9QTNF
D C[oU9QTNF However, it’s the stable’s other runner
Bensalem who is set to be sent off
Hurdle
WTFNGand
CPFifKHyour
*WTFNGCPFKH[QWT
* [QWT favourite after two promising hurdles
runs this season. *
horse
J QTUGfalls,
HCNNUunseats
WPUGCVor
JQTUGHCNNUWPUGCVU U He was travelling like the winner in this
race last year when he came down two
isTbrought
Q down...
QTKUDTQWIJVFQYPe
KUDTQWI JVFQYPe out, but that was still a long way from
home and it’s a worry that the last 11 win-
ners of this race carried less than 11 stone
Y GoNNTGHWPF[QWT
YGoNNTGHWPF[QWT (he must shoulder 11st2lb).
David Pipe’s Great Endeavour won the
G
GPVKTGYKPUVCMGCUC
PVKTGYKPUVCMGCUC Byrne Group Plate at last year’s Festival
and ran a stormer in the Vote AP Gold Cup
HHTGGDGVPQNKOKVUQP
TGGDGVPQNKOKVUQP in December. He clearly loves
Cheltenham, but with 11st7lb on his back
UUK\GQHTGHWPFU
K\GQHTGHWPFU I’m prepared to look elsewhere.
There’s no-one better at preparing a
horse for a big Cheltenham handicap than
Jonjo O’Neill and he has a great chance
with SUNNYHILLBOY. Second to Great
Endeavour at last year’s Festival, he was
just six lengths behind the same rival here
in December and has always looked as
though he’d relish this step up in trip. He’s
a knocking each-way bet at 6/1 with Paddy
Power and William Hill.
2TQWFPGYURQPUQTQHVJG3WGGP/QVJGT%JCORKQP%JCUG
2 TQWFPGYURQPUQTQHVJG3WGGP/QVJGT%JCORKQP%JCUG POINTERS...
SPIRIT SON e/w 1.30pm Cheltenham
0QNKOKVTGHWPFUCRRN[QPFC[QHTCEGDGVUQPN[
CPVGRQUVDGVUFQPQVEQWPV
0QNKOKVTGHWPFUCRRN[QPFC[QHTCEGDGVUQPN[
CPVGRQUVDGVUFQPQVEQWPV
QPVJGHQWT%JCORKQPUJKR4CEGU6GTOU%QPFKVKQPUCRRN[sUGGYGDUKVG
QPVJGHQWT%JCORKQPUJKR4CEGU6GTOU%QPFKVKQPUCRRN[sUGGYGDUKVG SUNNYHILLBOY e/w 2.40pm Cheltenham
HQTFGVCKNU
HQTFGVCKNU
KING FONTAINE e/w 2.40pm Cheltenham
 Punter
CITYA.M. 15 MARCH 2011
RACING TRADER BILL ESDAILE, OUR RACING EXPERT,
TAKES A LOOK AT THE CHAMPION HURDLE
Menorah to land the
Champion for Hobbs
L CHELTENHAM
AST year we thought we weren’t
going to see Binocular run in the
Champion Hurdle and his connec-
tions surprised us all by declaring
him fit for the race at the last minute.
Amazingly, 12 months on, they have sur-
prised us all again at the final hour by not
declaring the champion because of a med-
ication mix-up. The race, which had been
billed as the best of the meeting, still looks
a cracker even though it has lost one of its
headline acts.
Last year’s Supreme Novices’ winner
MENORAH now assumes the mantle of
favouritism from Binocular and lines up
this afternoon bidding to defend a 100 per
cent Cheltenham record. Philip Hobbs’
stable star has added two impressive wins
(in the Greatwood and the International)
to last year’s Festival success and comes
here as the most bomb-proof of the
leading fancies.
The one concern I had about a smallish
field was the danger of there being no
pace. Our selection is only seen at his best
if there is a decent gallop and that looks
assured now with Overturn declared to
run. His role is to ensure that there are no
hiding places for any of the field with
stamina doubts as the stable’s first string
Peddlers Cross is a proven stayer and the
biggest danger to Menorah.
He has done nothing wrong so far this
season and was extremely impressive
when beating Binocular and Starluck at
Newbury in the rearranged Fighting Fifth
Hurdle before Christmas. However, there
is just a nagging doubt that he may be
more effective over a slightly longer trip
and he is really short now at just 4/1 with
Victor Chandler.
As for Irish talking-horse Hurricane Fly,
he could well be the superstar the whole
of Ireland suggests he may be, but is
plenty short enough at 7/2 with Paddy
Power. Yes, he has demonstrated that he
has the speed, stamina and class to win a
Champion Hurdle, but he has been
plagued by injury and this is his first trip
to Cheltenham. I’m not sure whether the
course will suit him and his sire Montjeu
doesn’t exactly have a proven history of
producing Festival winners.
Oscar Whisky, Khyber Kim and Mille
Chief look place possibilities at best, while
last year’s beaten Supreme Novices’
favourite Dunguib has a mountain to
climb, although if there is to be an upset
in the race, he could well be the most like-
ly if he finally lets his hooves do the talk-
ing. However, the most sensible bet in the
INSIDER
the
C
UE CARD is the obvious place to
start when looking at the Supreme
Novices’ Hurdle as he stands out on
form. However, he has been off the
track a little while and I worry that he
may get done for toe up the famous ‘hill’.
The horse most likely to go past him is
Nicky Henderson’s SPIRIT SON (three per
cent each way) who has done nothing
wrong so far and can cheer up his trainer
after the Binocular debacle.
As for the Champion Hurdle itself, I
respect Menorah who did us a good favour
GOING: GOOD TO SOFT (Good in places)
3.20 STAN JAMES CHAMPION HURDLE CHALLENGE TROPHY GRADE 1 (1) 2m 110y £210,937
1 P46U02 BYGONES OF BRID (26)(D)
Karen Mclintock James Callow
2 1-11144 CLERK’S CHOICE (94)(CD)
M Banks8 M C Banks
3 11136-1 DUNGUIB (24)(C)(D)
P Fenton Ire8 Daniel Harnett/Mrs E A Lawlor
4 131-111 HURRICANE FLY (51)(D)
W Mullins Ire George Creighton & Mrs Rose Boyd
5 51121-4 KHYBER KIM (59)(CD)
N Twiston-Davies Mrs Caroline Mould
6 1212-11 MENORAH (94)(CD)
P Hobbs Mrs Diana L Whateley
7 11-5211 MILLE CHIEF (24)(D)
A King McNeill Family
8 1114-11 OSCAR WHISKY (38)(C)(D)
N Henderson Walters Plant Hire Ltd
9 11-2125 OVERTURN (24)(D)
D McCain T G Leslie
10 1111-11 PEDDLERS CROSS (26)(C)(D)
D McCain T G Leslie
11 013-743 THOUSAND STARS (51)(C)(D)
W Mullins Ire Hammer & Trowel Syndicate
S.P. F’CAST: 3 Menorah, 7-2 Hurricane Fly, Peddlers Cross, 7 Oscar Whisky, 8 Dunguib, 12 Khyber Kim, Mille Chief,
20 Thousand Stars, 40 Overturn, 50 Clerk’s Choice, 150 Bygones Of Brid.
PEDDLERS CROSS (11-10) 1-6 fav in touch in 3rd, head-
way on inner to go 2nd 4 out, led on bridle before last,
driven clear run-in, bt BYGONES OF BRID (11-6) 10-1
11l (9 ran) (Kelso 2m2f hdle(2) £9,758 soft).
MENORAH (11-4) 7-4 fav tracked leaders, jumped well,
switched and led approaching last, ran on strongly, rid-
den clear run-in, bt Cue Card (11-4) (Cheltenham 2m1f
hdle G2(1) £85,515 good to soft).
DUNGUIB (11-12) 8-11 fav settled in 3rd early, slight mis-
take 2nd, mistake 4th, improved to challenge 2 out, soon
led, bt Luska Lad (11-10) 31/2l (3 ran) (Gowran Park 2m
hdle G2 26,000 soft to heavy).
HURRICANE FLY (11-10) 4-9 fav tracked leader in 2nd, chal-
lenged entering straight, travelled well to lead before last,
ridden and kept on well run-in, comfortably, bt Solwhit
race is without doubt Menorah and he is
decent value at 10/3 with Sportingbet. I’m
also interested in trading Overturn at a
massive price on Betdaq as there is a very
real possibility he might get a soft lead
from the front.
Sporting Index have produced a mas-
sive array of markets, including the usual
host of match bets which sees two horses
paired against each other. Even though
they cannot separate Peddlers Cross and
Hurricane Fly, I would far rather be with
the former than the latter and recom-
oddschecker.com
All the latest odds and £100s of bookie freebets
this time last year by landing the Supreme
Novices’ Hurdle.
Yet, as hard to beat as he may be, it’s not
often that Donald McCain is as bullish
about a horse as he is about PEDDLERS
CROSS (five per cent win) and he narrowly
gets the nod. Elsewhere, I like the look of
old favourite BLAZING BAILEY (two per
cent e/w) in the 2.40pm, who has per-
formed with all his old relish this season,
while POKER DE SIVOLA (one per cent e/w)
can go well at a big price in the Cross
Country Chase at 4.00pm.
25
| Racing
live on Channel 4
supplied by RACING POST
8 11-10 T J Murphy 79
5 11-10 T Molloy 84
8 11-10 B O’Connell 88
7 11-10 R Walsh 97
9 11-10 P Brennan 99
6 11-10 R Johnson 94
5 11-10 R Thornton 92
6 11-10 B J Geraghty 92
7 11-10 G Lee 93
6 11-10 J M Maguire 92
7 11-10 P Townend 90
(11-10) 31/2l (Leopardstown 2m hdle G1 71,500 soft).
OVERTURN (11-7) 7-1 led, ridden when headed before 2
out, kept on but no match for winner, btn 33/4l by
Binocular (11-7) (6 ran) (Kempton 2m hdle G1(1)
£42,758 good to soft).
MILLE CHIEF (11-2) 15-8 disputed close 3rd, took narrow
advantage soon after last, held on, bt Celestial Halo (11-
6) (Wincanton 2m hdle G2(1) £39,907 good to soft).
OSCAR WHISKY (11-7) 2-7 fav tracked leading pair, not flu-
ent 3rd, went close 2nd at 5th, led on bit 2 out, clear
when hit last, easily, bt Black Jack Blues (11-3) 8l (5 ran)
(Ffos Las 2m hdle(2) £28,179 good to soft).
OVERTURN (11-6) 4-1 led until ridden approaching 2 out,
weakened before last, last of 5 (well btn) to Mille Chief
(11-2) (Wincanton 2m hdle G2(1) £39,907 good to soft).
mend a buy at ¾ length. That means that
every length more than ¾ length that
Peddlers Cross beats Hurricane Fly, you
win one unit stake wherever they finish. It
is also worth remembering that the maxi-
mum make-up between the pair is capped
at 15 lengths meaning that if disaster
struck, you can only lose 15 ¾ times your
stake.
Finally, you can keep tabs on all of my
Cheltenham betting news by following
me live from the course on Twitter
@BillEsdaile.
That leaves QUEVEGA (10 per cent win)
as the opening day banker in her attempt
to land the hat-trick in the David
Nicholson Mares’ Hurdle.
Finally, the last race of the day looks an
impossible puzzle to solve, but TULLAM-
ORE DEW (0.5 per cent e/w) and complete
outsider QUO VIDEO (0.5 per cent e/w) are
two of the more likely sorts.
Check the latest prices of the Insider’s tips at
www.oddschecker.com Bet with all the best book-
ies and get exclusive sign up offers, promotions
and tips.
 26 Punter | Racing CITYA.M. 15 MARCH 2011

CU E
3/1
RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THE ARKLE

CARD CHELTENHAM TODAY

GOING: GOOD TO SOFT (Good to Soft in places)
live on Channel 4
supplied by RACING POST
2.05 IRISH INDEPENDENT ARKLE CHALLENGE TROPHY CHASE 9 2113112 STAGECOACH PEARL (31)(D) 7 11-7 S Byrne 94

PLUS 4 PLACES
GRADE 1 (1) 2m £74,113 Mrs S Smith John Conroy Jaqueline Conroy
10 2-12111 WEST WITH THE WIND (200)(D) 6 11-7 P Moloney 89
1 1-22221 CAPTAIN CHRIS [T] (17)(C)(D) 7 11-7 R Johnson 95
E Williams3 Mrs Janet Davies
P Hobbs Mrs Diana L Whateley
S.P. F’CAST: 11-4 Medermit, 7-2 Ghizao, 4 Finian’s Rainbow, 7 Captain Chris, Realt Dubh,
NE
AVAILABLE ONLINE, IN SHOP & ON THE PHO
205-0211d DAN BREEN [BH] (18)(D) 6 11-7 T Scudamore 87 12 Rock Noir, 14 Dan Breen, 25 Giorgio Quercus, 33 West With The Wind, 40 Stagecoach
D Pipe Stuart M Mercer CAPTAIN CHRIS (11-0) 2-5 fav tracked leader, led 7th, not fluent 11th but jumped with
plenty of zest apart, drew clear from 3 out, eased flat, bt Adams Island (11-4) 13l (3 ran)
3 315-111 FINIAN’S RAINBOW (31)(D) 8 11-7 B J Geraghty 95 (Kempton 2m41/2f nov ch G2(1) £13,340 good to soft).
GIORGIO QUERCUS (11-3) 11-4 raced in 2nd, hit 4 out, ridden after 3 out, stayed on under
4 N Henderson Michael Buckley pressure to challenge final 120yds, carried persistently right, just failed, finished 2nd,

STAN JAMES SUPREME NOVICES’ HURDLE PLAC

placed 1st, bt DAN BREEN (11-3) Sht-hd (3 ran) (Sandown 2m nov ch(2) £7,828 soft).
FINIAN’S RAINBOW (11-4) 2-5 fav took keen hold, jumped erratically early, went 2nd at
4 108-211 GHIZAO (76)(CD) 7 11-7 T J Murphy 99
ES
4th, quickened and left in lead 8th, flew over next two, unconvincing jump 2 out and
again when left well clear at last, heavily eased, bt STAGECOACH PEARL (11-7) 6-1,
P Nicholls The Johnson & Stewart Families
2 miles, Cheltenham 1.30pm, Live on C4. 11l (4 ran) (Warwick 2m nov ch G2(1) £17,637 good to soft).
GHIZAO (11-10) 11-4 tracked leaders when in view from 4th, still chasing leaders when in
5 02/1F11 GIORGIO QUERCUS (18)(D) 6 11-7 P Brennan 87 view from 10th, challenged 4 out, led approaching next, driven and stayed on strongly
3 Cue Card 18 Dunraven Storm run-in, bt CAPTAIN CHRIS (11-0) 13-8 fav in lead when in view 4th, still leading when
N Henderson Sir Robert Ogden back in view 10th, mistake 11th, went right and joined 4 out, headed approaching next
9/2 Spirit Son 20 Gibb River and dropped to 3rd, rallied run-in to re-take 2nd close home but no chance with winner,
8 Recession Proof 20 Marsh Warbler 6 4-1R121 MEDERMIT (38)(D) 7 11-7 R Thornton 94 4 1/2l (9 ran) (Newbury 2m21/2f nov ch(3) £5,855 good to soft).
MEDERMIT (11-4) 5-2 fav waited with in rear, progress 7th, tracked leading pair 12th, led
8 Sprinter Sacre 50 Rathlin A King The Dunkley & Reilly Partnership 3 out, drew 3 lengths clear last, driven and pressed near finish, held on well, bt CAP-
TAIN CHRIS (11-4) 4-1 waited with in rear, mistake 6th, progress to track leaders 11th,
9 Al Ferof 100 Far Away So Close 7 1F1211 REALT DUBH (51)(D) 7 11-7 P Carberry 93 close up when mistake 3 out, ridden to chase winner last, closed flat, just held, 1/2l (9
ran) ROCK NOIR (11-4) 15-2 well placed, close up when mistakes 12th, 13th and 14th,
still on terms, dropped to last of leading group, outpaced after 3 out, kept on flat, 4th
10 Zaidpour 100 Spanish Treasure N Meade Ire D J Sharkey
(btn 7 3/4l) (Sandown 2m41/2f nov ch G1(1) £21,094 good).
REALT DUBH (11-12) 5-2 fav settled behind leaders, 5th halfway, headway in 3rd 3 out,
14 Magen’s Star 200 Sheer Genius 8 0-21314 ROCK NOIR [T] (38)(D) 6 11-7 A P McCoy 89 left 2nd 2 out, travelled well entering straight, led before last, ridden and challenged
last, disputed run-in, just prevailed close home, bt Noble Prince (11-12) sht-hd (6 ran)
16 Hidden Universe Jonjo O’Neill John P McManus (Leopardstown 2m1f nov ch G1 52,000 soft).
Each way ONE-QUARTER the odds a place 1, 2, 3, 4.

STAN JAMES CHAMPION HURDLE

2 miles, Cheltenham 3.20pm, Live on C4.
4
4
4
7
Hurricane Fly
Menorah
Peddlers Cross
Oscar Whisky
12
16
40
50
Khyber Kim
Thousand Stars
Overturn
Clerk’s Choice
King can be crowned
Arkle champion again
8 Dunguib 250 Bygones Of Brid
11 Mille Chief
Each way ONE-QUARTER the odds a place 1, 2, 3.

IRISH INDEPENDENT ARKLE TROPHY

2 miles, Cheltenham 2.05pm, Live on C4.
7/2 Medermit 9 Rock Noir

A
4 Ghizao 12 Dan Breen LAN KING has a fantastic record in Nicky Henderson has always loved pretty poor Arkle if he was to win.
the Irish Independent Arkle Finian’s Rainbow and he was the clear The last 10 winners have all returned
5 Finian’s Rainbow 20 Giorgio Quercus Challenge Trophy (2.05pm), win- ante-post favourite after his two small 9/1 or shorter, so it’s not a race for the out-
15/2 Captain Chris 33 West With The W’ ning it with Voy Por Ustedes and field wins at Newbury. siders. Ireland have won the last two,
8 Realt Dubh 40 Stagecoach Pearl My Way De Solzen in 2006 and 2007. He is However, they tried different waiting though, so you’d have to give a squeak to
Each way ONE-QUARTER the odds a place 1, 2, 3.
set to rely on MEDERMIT this year and the tactics with him at Warwick last time and Noel Meade’s dual Grade One winner
seven-year old looks to have a favourite’s his jumping seemed untidy and occasion- Realt Dubh.
chance. Although he’s never won at ally clumsy. Connections have said since He’s beaten Noble Prince twice, but I’m
STEWART FAMILY SPINAL RESEARCH H’CAP CHASE Cheltenham, he arguably should have that they were trying to give him more just not sure how strong the Irish two
taken the 2009 Supreme Novices’ Hurdle experience by teaching him to jump mile novice chasers are. His trainer also
3 miles, Cheltenham 2.40pm, Live on C4.
and didn’t run that badly in the behind other runners and they look set to doesn’t have the best record at
6 Bensalem 20 Fair Along Champion Hurdle last season, when his allow him to bowl along from the front Cheltenham.
6 Great Endeavour 20 Rare Bob stable were out of form. this afternoon. Medermit is a very solid contender and
6 Sunnyhillboy 25 King Fontaine An impressive winner of the Scilly Isles However, Dan Breen is another con- my idea of the best bet on day one of the
Novices’ Chase at Sandown last time, he firmed front-runner and Finian’s Rainbow Festival. Sportingbet offer 3/1 and that is a
7 Reve De Sivola 25 Razor Royale jumped like a stag and was probably just is very likely to be taken on for the lead. fair price considering it doesn’t look to be
14 Blazing Bailey 25 The Rainbow H’ter idling when Captain Chris lunged late on. Admittedly, Henderson and Geraghty are the hottest Arkle.
14 Carole’s Legacy 33 Carrickmines He has always had the potential to be a aware of this and may use David Pipe’s That said, I certainly wouldn’t be sur-
14 Wolf Moon 33 The Sawyer top class chaser and that was his first per- runner as a lead horse. Yet, there is a prised if he traded far bigger in-running
15 Adams Island 50 Slippers Percy formance that screamed, “Arkle”. King chance his jumping may become unset- on Betdaq as this is bound to be run at a
reckons he will be better suited to a tled once more and I’d worry about him blistering tempo and he may have to
20 Chief Dan George 66 No Panic strongly run two miles and it is hard to staying on his feet. come from a long way back.
20 Exmoor Ranger see Captain Chris getting any closer to Ghizao is a more solid proposition hav- The only other trade I would be looking
Each way one-quarter the odds a place 1, 2, 3, 4. him over this shorter trip. ing won two competitive races this at is possibly laying Captain Chris for a
Above races: Prices subject to fluctuation. In the event of any withdrawal(s), One of the key features of Arkle season, beating Captain Chris place, also on Betdaq. Philip Hobbs’
S.P place terms and Tattersalls Rule 4(c) will apply based on these prices. winners in recent years is their ability to comfortably both times. He has jumped charge took forever to get going at
Non-Runner-No Bet. stay. My Way De Solzen had previously excellently, but there is a nagging doubt Sandown and I wasn’t that impressed by
won a World Hurdle, while 2008 champi- that he just isn’t a spring horse. He disap- his jumping either. All his best form is
on Tidal Bay is contesting this year’s Gold pointed at both Cheltenham and Aintree also on a right-handed track and I’d be
Cup. Medermit stays 2m4f well and that last year and even his co-owner Andy surprised if he managed to get into the
can only be good news for his supporters. Stewart has admitted that it would be a places.

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I
am almost certain that Cue Card will
stake, up to a maximum of £60. Quote promo code RP60* travel like the winner for much of the
opening contest (1.30pm), but there is
a danger he won’t find an awful lot
off the bridle. Therefore, it may pay to
back him on Betdaq pre-race at around
the 3.2 mark and then look to lay your
stake back and more at odds-on approach-
ing the second last flight. He may well
win, but I am not prepared to find out if
williamhill.com 0800 44 40 40 he’ll come up the hill and would prefer to
lock in a profit whatever the result.
The key to the Champion Hurdle is the
number of contenders who have the
potential to travel sweetly off the pace.
Oscar Whisky, Hurricane Fly, Dunguib
and Mille Chief are the obvious four who
could easily still be on the bridle turning
for home.
However, the battle hardened pair of
Menorah and Peddlers Cross have come
up the hill before and may find more
when push comes to shove. Don’t get
sucked in to backing the ‘travellers’ in-
running and it’s proved more profitable
over time to hit the ‘lay’ button rather
than the ‘back’ one.
Overturn looks the most likely pace
angle in the race as he is sure to make it a
searching gallop.
Interestingly it may pay to adopt a
back-to-lay policy with him as if he opens
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CITYA.M. 15 MARCH 2011
RACING TRADER BILL ESDAILE, OUR RACING EXPERT,
TAKES A LOOK AT THE DAY’S OTHER RACES
Ferdy Murphy
the man to be
feared in the
big handicaps
I
T’S been a disappointing season for
Ferdy Murphy so far, but there have
been some signs of late that his
string is starting to hit form again.
He has a formidable record at the
Cheltenham Festival and punters should
take notice when he says that DIVERS, in
this afternoon’s Centenary Novices’ Chase
(5.15pm), is his best chance of a winner at
the meeting.
Murphy has had just 18 winners this
season which is a very poor return for a
trainer of his calibre, but that means a
number of his horses are very well handi-
capped. Divers has always been a favourite
of his and was only beaten a neck by the
decent Ashkazar in a handicap hurdle at
Cheltenham last April. He was always
going to make a better chaser and he
could be thrown in off a mark of 132 here.
There are a whole host of other chal-
lengers and the two biggest dangers in my
book are On Borrowed Wings and
Tullamore Dew. The former ran a cracker
to almost win a competitive handicap
hurdle at Ascot, while the latter was sec-
ond at 80/1 in last year’s Coral Cup and
would have to go close judged on his sec-
ond to Medermit at Plumpton in
December.
The Glenfarclas Cross Country Chase
(4.00pm) isn’t one for the purists, but it is
certainly some spectacle and the only
place to start is with ‘King of the Banks’
Enda Bolger. In the race’s six year history,
he has won it four times, all for JP
McManus-owned horses, and dual winner
Garde Champetre will be back with stable-
mate L’Ami. However, they aren’t getting
any younger and have to carry an awful
lot of weight.
Ireland have won all six renewals and
although there has been money for
Maljimar over the past week, I think it
will stay in the Emerald Isle. A NEW
Punter | Racing 27
STORY can hardly be described as improv-
ing at the age of 13, but he won this race
last year and finished an excellent third in
his hurdle prep race at Naas earlier this
month. You need a horse that truly stays
and Michael Hourigan’s runner was
placed in this race in both 2008 and 2009,
so is a decent each-way bet at a general Quevega is going for
10/1. her third straight win
Ferdy Murphy runs Poker De Sivola who in the David Nicholson
wouldn’t be without a chance judged on Mares’ Hurdle
his win in the four-miler at last year’s
Festival. However, the trainer has said
that this is firmly a stepping stone to the
Scottish National and I don’t like backing
horses in this race who haven’t experi-
enced the unique course.
Willie Mullins is bringing a very strong
team over to Prestbury Park this year and
his best chance of a winner could well be
QUEVEGA in the David Nicholson Mares’
Hurdle (4.40pm). An infrequent visitor to
the racecourse, the seven-year-old mare
has won the last two runnings of this race
hugely impressively. She goes very well
fresh, Ruby Walsh will be in the saddle
and it will be a big surprise if the Irish
banker of the day gets turned over.
Sparky May is a clear danger, as she is
undefeated in four starts this season and
got the better of the decent yardstick
Carole’s Legacy at Ascot last time. She’d
have to be pretty good to beat Quevega,
though, and I’m a little concerned that
her trainer Patrick Rodford doesn’t have
that many runners. The stable have had a
good season, but this is a big step up for
Sparky May and I reckon she’ll be playing
for second place.
POINTERS...
A NEW STORY e/w Cheltenham 4.00pm
QUEVEGA Cheltenham 4.40pm
DIVERS e/w Cheltenham 5.15pm
 Sport
28
Cheltenham’s commercial supremo
outlines ambitions for UK racing Plc
The Jockey Club’s
Simon Bazalgette
talks money-making
tactics on the first
day of Cheltenham
T Board has
ODAY marks the start of the
Cheltenham Festival – the jewel in
the crown of the jump racing calen-
dar and one of the biggest days of
the year for Simon Bazalgette, chief execu-
tive of the Jockey Club, which owns and
runs the sporting event.
Over the four days until the festival
reaches its climax with the Cheltenham
Gold Cup on Friday, about 250,000 pun-
ters are expected to pass through the race-
course turnstiles, “hundreds of millions of
pounds” will be spent on sporting bets,
and the sleepy county of Gloucestershire
will receive a projected positive economic
impact of £50m.
As Bazalgette points out, Cheltenham is
just one of many sporting fixtures that
contribute to the health of the UK racing
industry, which is the second biggest
sports employer in the country, after foot-
ball, and the second biggest sports contrib-
utor to GDP.
In other words, horseracing is big busi-
ness, which is why Bazalgette and his
Board members, known appropriately as
stewards, run the Jockey Club as a Plc to
support the racing industry, with all the
profits generated by the company reinvest-
ed in the sport.
In 2009, the Jockey Club posted a
turnover of £99.9m and operating profits
of £17.2m, down slightly from 2008’s
turnover of £100.9m, and Bazalgette
expects the financial results for 2010 to be
roughly flat year on year.
Total prize money for the sport reached
£41.3m in 2009, of which The Jockey Club
contributed 30 per cent, or £12.4m.
The Jockey Club raises money through
its four commercial divisions: the land
management arm Jockey Club Estates,
thoroughbred breeding business the
National Stud, industry charity Racing
Welfare, and Jockey Club Racecourses,
which oversees the operation of a portfo-
lio of 14 racecourses and joint venture
Jockey Club Catering.
The racecourses arm is by far the
biggest moneyspinner for the business,
contributing between 80 and 90 per cent
CV | SIMON BAZALGETTE
2008 to present: Chief executive, the
Jockey Club and chair of Jockey Club
Racecourses.
2004: Executive chairman of Racing UK
and chairman of Racecourse Media
Services.
1993: Joins Music Choice, rising to chief
executive of Music Choice Europe by 1999
and leading its 2000 flotation.
1984: Qualifies as a chartered accountant
at KPMG, rising to become managing
director of the company’s media consult-
ing department.
of its revenue through marketing, media
rights and hospitality.
The recent diversification into confer-
ences, outdoor concerts and exhibitions
should also be noted, bringing in a small
but “steadily growing” 10 to 15 per cent of
that total, through ventures such as the
weekly antiques fair at Kempton.
The biggest project on the horizon at
the Jockey Club is the British Champion
Series, a joint venture with The
Horsemen’s Group and racecourses that
will launch to the racing public through
“the biggest marketing campaign in
British racing to date” in mid-April.
The aim of the series is to boost the pop-
ularity of the flat-racing season, spanning
from the Guineas at Newmarket to a new
day at Ascot in October, to be called British
Champions Day, which will extend the
flat-racing calendar by five races.
Broadcast rights for the finale’s five
races have been bought by the BBC –
although Bazalgette refuses to reveal for
how much – giving the Corporation the
media rights to 16 of the season’s flat
races, with Channel 4 broadcasting the
remaining 19.
The headline sponsor for the British
Champions Series will be announced in
the next two weeks – although again,
Bazalgette will not yet reveal which firms
are bidding or for how much.
The “most critical” issue for securing
the commercial future of racing is mod-
ernising the Levy, the rights fee paid by
bookmakers in return for making an
income from the sport, following the rise
of “loopholes” such as betting firms mov-
ing offshore to pay less tax on their prof-
its. In the year to 31 March 2008, the Levy
paid £155m to the Jockey Club; over the
same period for this year, the company
will receive just £60m to £65m.
“The legislation was drafted in different
days,” says Bazalgette. “If bookies go off-
CITYA.M. 15 MARCH 2011
WORDS BY
HARRIET DENNYS
“The best
option is that
the Tote
remains
independent,
as the Tote
proposed”
Simon Bazalgette is shore, they can avoid paying the Levy and fair for the taxpayer and fair for racing,”
diversifying the gross profits tax. And if bookmakers are says Bazalgette. “Our preferred outcome is
Jockey Club’s com- operating offshore, one of the big issues is that the Tote stays independent under a
mercial interests that consumers won’t bet with them structure that would give the taxpayer
because they don’t have consumer protec- some money, as the charitable trust pro-
Picture: tion under UK law. People need to know posal by the Tote Board has put forward.”
Micha Theiner they won’t be taken advantage of.” As the legal battle with the bookmakers
/City A.M. Fortuitously for racing, the Department over Turf TV – The Jockey Club’s most
for Culture, Media and Sport is working valuable media rights, through its 25 per
on a new licensing regime to bring errant cent stake in the venture – fades into his-
bookmakers “back into the net”, and cul- tory, Bazalgette can focus on “optimising”
ture minister Jeremy Hunt has already the media deals with the BBC and
stipulated The Jockey Club must receive Channel 4 and doing what he loves best –
between £74m and £81m for 2011/12. getting the nation as passionate about the
Meanwhile, the debate over whether sport of horseracing as he is.
the pool betting quango the Tote should He tells the anecdote with pride of how
move to ownership by a new trust called last Tuesday, the Tote Jackpot of £1.4m
the Tote Foundation, or by one of four bid- was won by Steve Whiteley, a heating engi-
ders, rumoured to be Gala Coral, Reuben neer from North Tawton in Devon, who
Brothers, Sir Martin Broughton and went racing through a local promotion
Betfred. The Jockey Club takes £11m per organised by the Jockey Club.
year from the Tote’s profits and £9m per “This is a guy who took a free bus to
year from its contribution to the Levy and, Exeter racecourse and won £1.4m with a
unsurprisingly, Bazalgette wants to see £2 stake,” Bazalgette says.
that revenue protected. Refreshing to see that even a man who
“The racing industry is working with owns a stake in seven racehorses has an
the government to find a solution that is egalitarian approach to the Sport of Kings.
FACT | HOW MUCH MONEY DOES CHELTENHAM MAKE?
Betting: About £600m is staked on the outcome of the worth more than £250,000. Sponsors range from
festival’s 26 races. In 2010, punters drew almost £1.4m bookmakers to financial services, construction, bever-
from the site’s 20 cash points. age and media companies.
Ticket sales: Total gate receipts net an estimated £7m. Prize money: The total prize money for 2011 is £3.4m,
an average of £125,000 per race. About half this
Hotels and B&Bs: About 10,000 beds are filled during total comes from the races’ sponsors, with prize
the festival week, ranging from four-star hotels to local money for the Totesport Cheltenham Gold Cup at
B&Bs. The value to the local Gloucestershire economy £500,000 and prize money for the Stan James
is estimated at £50m. Champion Hurdle at £370,000.
Sponsorship: Overall sponsorship money raised by the Broadcast rights: The broadcast rights are owned by
festival is £1.8m, with the main sponsorship deals all Racecourse Media Group with Channel 4.
CITYA.M. 15 MARCH 2011
2012 tickets:
Ready, set, go
Top tips for getting into next year’s event
T
HE ticket application process for
the London 2012 Olympic
Games finally opens today, and
they are sure to be hot property
so City A.M. has put together an easy
guide designed to make the process as
easy as possible.
1. IT’S NOT FIRST COME, FIRST SERVED
While the application process opens
today, it lasts for six weeks (until
11:59pm on 26 April), and only then
will tickets be allocated. It is not a case
of first come, first served; if events are
oversubscribed then all those who
apply will go into a ballot after the
closing date. All payments will be
taken after 10 May and successful
applicants will be notified by 24 June.
2. PLAN APPLICATIONS CAREFULLY
Customers can apply for a maximum
of 20 sessions, but be warned: only
apply for events you will definitely
intend to go to and can afford to pay
for. Once applications have been regis-
tered you are committed to paying,
assuming you are allocated a ticket.
For this reason, setting a budget is
also worth considering. Some 2.5m
tickets will cost less than £20, while 90
per cent will be under £100.
3. TWO WAYS TO APPLY
The quickest way to apply for tickets is
by visiting the official website
(www.tickets.london2012.com), where
you will need a valid email address
and a Visa debit or credit card.
Applications can also be made by post
using forms available from branches
of Lloyds TSB, with payments made by
Visa card, cheque or postal order.
4. CORPORATE HOSPITALITY
The only official channels for travel
and hospitality are Thomas Cook,
Prestige Ticketing and Jet Set Sports –
apart from football at Wembley,
which is being sold by the stadium
operators themselves – so beware of
fraudsters claiming to offer tickets.
Jessica Ennis is hoping for 2012 gold in the heptathlon on 4 August
KEY DATES | LONDON 2012
Athletics Usain Bolt defends 100m title on 5
August, when Chrisitine Ohuruogu goes for
400m gold. Other home hopefuls Jessica Ennis
(heptathlon) and Phillips Idowu (triple jump)
take centre stage on 4 and 9 Aug
Cycling Team sprint and pursuit events on 3
and 4 Aug; Sir Chris Hoy in men’s sprint on 6
Aug and Victoria Pendleton in keirin on 7 Aug
Swimming Rebecca Adlington will go for 400m
and 800m freestyle titles on 29 July and 3 Aug
Picture: REUTERS
Diving Prodigy Tom Daley’s big days at the
Aquatics Centre are 30 July (10m synchro plat-
form) and 11 Aug (individual 10m platform)
Football Wembley hosts men’s and women’s
finals on 9 and 11 Aug
Tennis Andy Murray will be hoping to be in the
men’s singles final on 5 Aug
Rowing GB duo Zac Purchase and Mark Hunter
go for lightweight dohble sculls on 4 Aug
Gymnastics Beth Tweddle in uneven bars 6 Aug
29
SPORT | IN BRIEF
Vettel to stick with Red Bull
FORMULA ONE: World champion
Sebastian Vettel has extended his con-
tract with Red Bull and will stay at the
team until 2014. Vettel said: “The reason
why I'll stay until 2014 with Red Bull
Racing is that I feel very comfortable.”
Pakistan through to last eight
CRICKET: Pakistan secured their World
Cup quarter-final berth with a seven-
wicket victory over Zimbabwe in a rain-
affected Group A clash at Kandy.
Results
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email sport@cityam.com
 30 Sport
Hamilton won the 2008 title Pic: GETTY
Hamilton
latest star in
Fuller stable
▲
FORMULA ONE
BY FRANK DALLERES
BRITISH former world champion
Lewis Hamilton has joined global
superstars David Beckham, the Spice
Girls and Sir Michael Caine in signing
up to be managed by showbiz mogul
and Pop Idol creator Simon Fuller.
Hamilton, who is paid £10m a year
by team McLaren, has agreed to be
represented by Fuller’s company XIX
Entertainment, which also boasts ten-
nis player Andy Murray and actress
Jennifer Lopez among its clients.
The move ends a year of uncertain-
ty after the Stevenage driver, 26,
decided he no longer wanted to be
managed by his father Anthony, who
guided him when he won the 2008
world championship.
“I spoke to many interested compa-
nies in recent months, but I felt
Simon and his team not only wanted
to help me become an even better rac-
ing driver, but they also shared my
ambitions for the longer term,” said
Hamilton, who dates pop star Nicole
Scherzinger.
Fuller, 50, has built up an estimat-
ed £350m fortune since starting out
in the music industry. He managed
the Spice Girls during their peak and
created the television show Pop Idol,
which spawned a global franchise.
Fergie banks
on Euro
know how
United boss insists his
side can handle the
pressure as the run-in
begins to heat up
MANCHESTER UTD
MARSEILLE
▲
FOOTBALL
BY JAMES GOLDMAN
MANCHESTER UNITED manager Sir
Alex Ferguson admits it’s “squeaky
bum time” again as his side aim to
step up their pursuit of the second
treble of his reign this evening.
United booked their place in the
semi final of the FA Cup at the
weekend and maintain a three
point lead at the head of the
Premier League. Tonight attention
turns to continental matters with
the three-times European Cup win-
ners looking to capitalise on the
goalless draw they secured in
Marseille three weeks ago.
But Ferguson is sage enough to
know the French champions offer a
real threat to his side’s Champions
League ambitions, but is confident his
players will again thrive on the pres-
sure that accompanies matches of
this magnitude during the decisive
period of the campaign, which
Ferguson famously labeled “squeaky
bum time” during the 2003 run-in.
He said: “We are experienced
enough to do what we are doing at
the moment and that is taking each
game as it comes. That’s why the
focus is on Marseille because we
know it is going to be a hard game.
“It is nice to have a bit of apprehen-
sion about big ties, though. European
games are always that way. It won’t be
any different. We are playing a very
experienced, powerful Marseille
team. We will have to play well.
“I have watched them twice away
from home against Monaco and
against Rennes and they showed the
qualities we will be up against.
“I thought Marseille were going for
the 0-0 at home I must admit. Maybe
they are the ones who are confident.
They are a good team, who will try to
hit us on the counter.
“In these games at Old Trafford
and a home match in midweek it is
always a terrific atmosphere. That
does help us and hopefully we will
get the result we want.” United will
CITYA.M. 15 MARCH 2011
be boosted by the return of Nani,
less than a fortnight since he suf-
fered a leg injury – inflicted by an
awful tackle from Liverpool’s Jamie
Carragher – which many feared
would rule him out for the rest of
the season.
“There’s a good chance Nani will
be involved,” confirmed Ferguson.
“He and Michael Carrick trained on
Sunday. Both will be involved
tonight.
“The important thing is to have
all the players fit and available for
the run-in. If we can do that then it
will definitely increase our chances
of winning trophies.”
CITYA.M. 15 MARCH 2011 Sport 31

HISTORY LESSONS
A goalless draw away from home in the first
Tindall expected to be ruled
leg is often regarded as a dangerous scoreline
and United have shown on occasion in the past
why that’s the case. Moreover, even when
they’ve managed to grab an away goal they
out of Grand Slam decider
haven’t always progressed.
Tindall, a veteran of England’s last

▲
RUGBY UNION
BY JAMES GOLDMAN
ENGLAND captain Mike Tindall is today
expected to be ruled of his side’s Grand
Slam decider against Ireland on
Saturday.
Tindall has led Martin Johnson’s side
to four consecutive victories in this year’s
1998: United came through unscathed on a RBS 6 Nations in the absence of
concrete surface in Monaco but their defences Lewis Moody, whose knee ligament
were breached by a David Trezeguet thunder- injury paved the way for the
bolt early in the return leg. Ole Gunnar World Cup winner to captain the
Solskjaer equalised in the second half but Sir team for the first time.
Alex Ferguson’s side exited on away goals. The 32-year-old (right), who was
winning his 70th cap, injured his
Lehmann fell out with current Arsenal keeper Almunia Picture: REUTERS left ankle in Sunday’s scrappy 22-
16 victory over Scotland and
was replaced at half-
Grand Slam campaign back in 2003, will
be assessed further by England medics
when the squad reconvenes at Pennyhill
Park today.
If Tindall is, as expected, ruled out of
the Dublin clash, Nick Easter would be
the leading candidate to captain
England.
But England could face a further prob-
lem if Banahan is cited for the way
he flattened Scotland No8 Kelly
Brown with his forearm.
Scotland’s head coach Andy
Robinson said he will study the
video to see if Banahan had illegal-
ly used his forearm on Brown who
was carried off with a head injury,
though he later recovered
and may face Italy on

Return of Almunia time by Bath power-

house Matt Banahan.
The Gloucester
centre lifted the
Saturday
Murrayfield.
If Banahan is
cited and subse-
at

2000: A superb display from Mark Bosnich

helped United restrict Real Madrid in the
nemesis Lehmann Calcutta Cup but
then
Twickenham in a
left

protective boot to
undergo x-rays.
quently banned,
England will be
looking for yet
another option
at centre.
Bernabeu but he was beaten by his own cap-
tain, Roy Keane, early in the return. A Raul
▲

brace stretched Real’s advantage and ren-
dered two late consolation goals irrelevant.
2004: A Benni McCarthy brace turned the
first leg in Porto on its head, but Paul Scholes’
goal in the return looked to be sending United
through, only for Costinha’s last gasp effort to
send Ferguson’s side crashing out and spark
an infamous touchline jig from Jose Mourinho.
FOOTBALL
BY FRANK DALLERES
ARSENAL manager Arsene
Wenger has risked dressing-room
unrest by calling on the com-
bustible veteran former Gunners
goalkeeper Jens Lehmann to solve
his injury crisis.
Lehmann, 41, is set to come out
of retirement and rejoin the
north London club on a short-
term deal as backup to Manuel
Almunia, their only fit senior
stopper, in one of the most unex-
pected moves of the season.
The German hung up his
gloves last summer, two years
after leaving Arsenal, where he
helped the so-called Invincibles
win the 2003-04 Premier League
title without losing a match.
But while eccentric Lehmann
has undoubted pedigree, he noto-
riously fell out with Almunia, the
understudy who ultimately
replaced him, to his chagrin.
Lehmann described it as a
“humiliation” when he lost the
No1 spot to Almunia early in the
2007-08 season, while the
Spaniard said in April 2008: “I
know he hates me.”
Lehmann’s return risks reopen-
ing old wounds at a time when
Almunia is already fragile, having
been dropped and then shunned
for months but now reinstated
following injuries to Lukasz
Fabianski and Wojciech Szczesny.
Arsenal, who can sign
Lehmann outside the transfer
window because he is a free
agent, held talks with him yester-
day and hope to complete his
signing before Saturday’s trip to
West Brom.
HIGHS AND LOWS | LEHMANN
1988 Makes debut for Schalke
1997 Shootout hero in Uefa Cup final
1998 Begins ill-fated spell at AC Milan
1999 Returns to homeland with Borussia
Dortmund, wins Bundesliga in 2001-02
2003 Joins Arsenal and plays every game
of Invincibles season, also wins 2005 FA
Cup but is dropped in 2007-08
2008 Joins Stuttgart, retires in 2010

Recession Proof my tip

HOW TO GET YOUR HANDS ON
TICKETS FOR THE LONDON

to challenge Cue Card

SPORT OLYMPICS

2012 GAMES: PAGE 29

a competitive handicap so won’t

mind the rough and tumble.
If it goes pear shaped we’ll face a
multi million pound payout, and I’m
so sure my pulse will be racing that
we’re even betting on what my heart
rate peaks at during the race!
The Champion Hurdle is one of the
TIPS FROM THE TOP WITH highlights of the whole week and
many Irish punters will pile into
PADDY POWER Hurricane Fly who has brushed aside
the rest of the Irish challenge.

T
he first day of The Festival is my
favourite day, when the tapes go
up for the Supreme Novices’
Hurdle the crowd erupts – and
we’re off. Cue Card is the hot
favourite and if he wins Paddy Power
will be refunding losing bets on any
other horse in the race.
I also like Recession Proof, he’s won
Peddler’s Cross is unbeaten over
hurdles so can’t be ignored whilst the
forgotten horse is Dunguib and at
double figure odds he’s also worth a
look each way.
18+ Please gamble responsibly. www.gambleaware.co.uk Prices correct at time of going to press.
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