Issue 1,164 Monday 28 June 2010
BUSINESS WITH PERSONALITY
SHAMED
ENGLAND
HIT ROCK
BOTTOM
WORLD CUP
2010
BY JON COUCH
SORRY England crashed out of the
World Cup yesterday after suffering
their heaviest-ever finals’ defeat to a
rampant Germany in Bloemfontein.
Fabio Capello’s men were out-
classed by the Germans on their way
G20 DELAYS TOUGH CHOICES
WORLD ECONOMY
▲
BY DAVID CROW
LEADERS of the world’s largest
economies attempted to display a
united front last night, agreeing to
cut government borrowing while
stimulating growth after a weekend
of tense talks in Toronto.
The Group of 20 communiqué
agreed new targets for reducing
deficits and sovereign debt, but
America’s fear that fiscal tightening
in Europe could derail the global
recovery was also put forward.
FTSE 100 t5,046.47 -53.76 DOW t10,143.81 -8.99 NASDAQ ▲ 2,223.48 +6.06 £/$ ▲1.51 +0.02 £/¤ ▲1.22 +0.01 ¤/$ ▲1.24 +0.01
v
to a 4-1 defeat, but the game will be
remembered for a moment of con-
troversy when Frank Lampard’s shot
cannoned off the underside of the
crossbar and over the line, only for
the referee to wave play on.
Defeat has now brought Capello’s
reign under scrutiny, with the
Italian admitting he will discuss his
future with FA chiefs this week.
FULL REPORT: PAGES 30-31
And most of the questions sur-
rounding tougher capital and liquidi-
ty requirements for banks were
delayed until November’s summit in
Seoul, effectively kicking the issue
into the long grass while leaders
work out their differences.
Government officials hailed the
agreement as an endorsement of
British fiscal policy, pointing to a
commitment to “at least halve
deficits by 2013 and stabilise or
reduce government debt-to-GDP
ratios by 2016”.
“Those with serious fiscal chal-
www.cityam.com
lenges need to accelerate the pace of
consolidation,” the G20 said.
An aide travelling with chancellor
George Osborne said: “This clearly
welcomes those of us that want to
accelerate the pace of fiscal consolida-
tion. Thanks to our Budget, we’re
doing that.”
However, the communiqué did lit-
tle more than endorse the existing
deficit reduction targets of all 20
nations, with the sole exception of
Japan, which secured a statement
acknowledging its intention to cut
public borrowing more slowly.
FREE
And the final agreement contained
a pointed statement reflecting the
views of US President Barack Obama.
“There is a risk that synchronised
fiscal adjustment across several
major economies could adversely
impact the recovery,” the commu-
niqué read.
Although the leaders agreed on the
need to introduce tough new capital
and liquidity standards for banks,
they opted to wait until the
November summit in Seoul before
thrashing out the details, such as
what kind of assets will count as a
Picture: PA
capital cushion.
The G20 said any future capital and
liquidity regime must “enable banks
to withstand – without extraordinary
government support – stresses of a
magnitude associated with the recent
fiscal crisis”.
An aide to the chancellor said
Britain had adopted a “hawkish”
stance in talks on financial reform,
scotching suggestions that Osborne
was trying to delay the introduction
of new capital requirements amid
fears they could curtail bank lending.
WALL STREET REFORMS: PAGES 6-7
Certified Distribution
3/05/10 - 30/05/10 is 106,097
 2 News
The real game is emerging markets
EDITOR’S LETTER
ALLISTER HEATH
IT is always tempting to build grand
theories about national decline fol-
lowing the kind of thrashing meted
out to England yesterday afternoon.
This should be resisted; Germany v
Britain makes great sport but little
else. We may not be any good at foot-
ball right now – and Fabio Capello
needs to be sacked – but yesterday said
nothing about our (hardly great) eco-
nomic or geopolitical prospects.
It is true the UK won’t be doing well
when it comes to growth or influenc-
ing the world stage over the next few
years – that is because our long-term
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
THE SUNDAYS TODAY
PRIVATE SECTOR WARNS ON PUBLIC
SECTOR CUTS
Leading companies have warned they
will not be able to pick up the slack
from the wide-scale job losses expect-
ed in the public sector. The warning
raises concerns over a key part of the
Chancellor’s spending cuts, which
are based on the assumption that pri-
vate firms can absorb a large number
of state workers.
JOB CUTS LOOM AT BAE SYSTEMS
AFTER CONTRACT LOSS
BAE Systems, Britain’s biggest
defence company, is set to cut hun-
dreds of jobs in its UK vehicles busi-
ness in the coming weeks. The future
of Britain’s last tank-making facility is
also in the balance and an announce-
ment could be made as early as this
week. The cuts come after BAE lost
out on an armoured vehicle contract.
ability to grow has been crippled by
years of mismanagement, over-spend-
ing, excessive tax, onerous regulation,
poor education and insufficient infra-
structure. But thanks in no small part
to last week’s Budget, we will almost
certainly continue to outperform the
Eurozone, which is in a much worse
state than we are. Germany itself is
recovering and will grow a little faster
than Britain this year – its economy
contracted roughly as much as the
UK’s during the recession, despite
Germany’s smaller financial sector –
but the difference won’t be material.
The real contest is not about Britain
versus Germany, France or even
America – it is about how Western
nations can reform their economies to
compete better – and benefit more –
from the boom in the emerging
world. Citigroup is predicting GDP
growth of 10.5 per cent in China this
year, 8.4 per cent for India, 12.5 per
cent for Singapore and 7.6 per cent in
Brazil. China and other non-Japan
Asian economies will generate 40 per
Unite delays
strike ballot
UNIONS
▲
BY HARRY BANKS
THE Unite union has announced
plans to postpone balloting British
Airways cabin crew on further strikes
to allow union members to consider
the latest offer from the airline’s
management.
BA made a new offer to cabin crew
on Friday in a bid to end the long-run-
ning dispute over pay and conditions
before the employees are formally
asked to consider taking further
industrial action.
The ballot over future walkouts
was scheduled to begin tomorrow but
Unite boss Tony Woodley said in a
statement he now expected the vote
to be delayed.
“The company has made it clear
that the offer on the table will be
removed if the strike ballot starts on
REED ELSEVIER CHIEF SNUBS SUIT-
ORS FOR EXHIBITIONS ARM
Private equity groups are pressing
Reed Elsevier to consider a sale of its
exhibitions arm after the professional
publisher rebuffed buyers’ interest in
the division in the past few months.
Talks with one group, thought to be
TPG, valued Reed Exhibitions at close
to £1.5bn. Reed, led by chief executive
Erik Engstrom, made clear it was not
for sale and a bid was never tabled.
SHAKE-UP FOR PRU BOARD
Prudential is planning a boardroom
shake-up that could pave the way for
the departure of chairman Harvey
McGrath. Two non-executive directors
have been hired to strengthen the
board after mounting pressure from
investors. The board has been under
scrutiny since the failed $35.5bn
(£24bn) takeover bid for AIA, the
Asian arm of America’s AIG.
cent of global GDP growth (at current
exchange rates, a higher share when
adjusted for the fact that a dollar buys
more in Beijing than it does in New
York), twice the contribution of the US
and over four times the EU’s contribu-
tion. That is where the real economic
game is taking place.
OIL REMAINS VITAL
Oil accidents are horrific and heart-
breaking. But as Donald J Boudreaux,
an economist from George Mason
University who writes for the excellent
Café Hayek blog points out, they are
the all too visible downside of a prod-
uct which also boasts an enormous yet
invisible upside. An even greater dan-
ger than the actual spill in the Gulf of
Mexico is that we end up with an ail-
ing economy polluted by a gusher of
panic-driven legislation. Boudreaux
lists some of oil’s underreported bene-
fits – the many millions who are alive
thanks to pharmaceuticals and med-
ical devices (petroleum derivatives);
the vast numbers of people healthy
Tuesday,” said Woodley, whose Unite
union represents 90 per cent of BA’s
12,000 cabin crew.
“It would therefore be inexplicable
if we did not put this offer to our
members.”
The new offer from BA includes
two years of guaranteed rises in basic
salary from February 2011 in addition
to annual incremental pay increases.
“We welcome this statement from
the Unite leadership. We believe our
offer is fair and reasonable and pro-
vides a genuine opportunity to end
this dispute,” BA said in a statement.
Unite leader Tony
Woodley says cabin
crew should see the
new offer before a
decision on strikes
SINGAPORE AIMS TO BE DERIVA-
TIVES CLEARING HUB
Singapore is pushing to become an
Asian hub for derivatives clearing and
to poach business from Europe and
the US as regulation reshapes mar-
kets. The Monetary Authority of
Singapore is discussing ways of
expanding the city-state’s clearing
capacity.
PRIVATE EQUITY VALUATIONS
DIVERGE
Blackstone and TPG are providing
their investors with dramatically dif-
ferent valuations for one of their
biggest common holdings, Freescale
Semiconductor. Blackstone and TPG
each contributed about $1bn in equi-
ty for the $16.6bn leveraged buy-out
of Freescale, a semiconductor manu-
facturer, in December 2006.
because dangerous bacteria were
killed by ammonia or kept contained
by plastics (also made from oil); read-
ers of this and other newspapers
enjoying a paper printed with ink (tra-
ditionally made using petroleum)
whose sight is enhanced using glasses
made of plexiglass, yet another oil-
based product – and of course the fact
that our civilisation depends on trade
and transport. Even the asphalt on
which we walk is made from oil.
None of this excuses incompetence,
stupidity or negligence. But the oil
industry, for all its flaws, remains vital
to human well-being. There is noth-
ing I would like more than for some
enterprising firm to finally crack a
low cost, viable alternative to oil for
transportation. Huge strides have
been made but battery technology
and other critical issues remain; let us
hope it all changes within the next
decade. Even then, however, we could-
n’t live without oil – politicians pre-
tending we could need to get real.
allister.heath@cityam.com
June showed the highest annual increase in home prices since January 2008
Home prices up over year
PROPERTY
▲
BY HARRY BANKS
MONTHLY house price rises in
England and Wales slowed marginal-
ly in June, but still took the annual
rise in prices to the largest since
January 2008, property data company
Hometrack said today.
The number of houses being put
up for sale rose at a faster rate than
the number of buyers, potentially
limiting future price rises.
However, recent legislative changes
MINERS STAY ON GUARD IN ROW
OVER AUSTRALIAN “SUPER-TAX”
Dispute remains unresolved as new
Australian prime minister tries to
defuse issue while also declaring
industry must pay fair share of tax. In
the gold fields of Kalgoorlie the men
from the mines are worried. Despite
the new Australian prime minister,
Julia Gillard, calling a temporary
truce over the controversial Resource
Super Profits Tax (RSPT), employees of
the mining industry believe the fight
is far from over.
CONSULTANTS TO WORK ON
LADBROKES’ STRATEGY
The new chief executive of Ladbrokes
has brought in consultants Alix
Partners to assist with a review of the
bookmaker’s entire operations,
including the shape of the business
and its strategy. Richard Glynn has
hired the consultants.
CITYA.M. 28 JUNE 2010
NEWS | IN BRIEF
Rail groups call for cuts review
Train companies have called for a “swift
and rigorous” review of existing rail
investment to ensure that money is
being spent in the interest of passengers
and taxpayers. The Association of Train
Operating Companies (ATOC) has writ-
ten to the state transport minister,
Theresa Villiers, and said that it accepts
that the £8bn due to be invested in
enhancing the rail networks may be
affected by the “unprecedented situa-
tion in the public finances warrants a
review of commitments”. The ATOC said
that train companies should join the
Department for Transport and Network
Rail in reviewing infrastructure projects.
Saudis shuns European debt
Saudi Arabia does not intend to buy
European sovereign debt, central bank
chief Muhammad al-Jasser said in pub-
lished remarks yesterday. “There are no
plans to buy European sovereign debt,”
Jasser was quoted as saying by Saudi al-
Watan daily on the sidelines of the G20
summit in Toronto. Leaders meeting in
Toronto this weekend are seeking ways
to cut public debt without undermining
a fragile global economic recovery.
that have reduced up-front market-
ing costs for sellers mean more of the
new homes for sale may be from less
committed vendors only willing to
move if they get an unrealistically
high price, Hometrack said.
Hometrack’s survey of estate
agents and surveyors showed an aver-
age rise of 0.1 per cent in house prices
in June, down from 0.2 per cent in
May, and a year-on-year rise of 2.1 per-
cent.
Hometrack said scarcity of housing
for sale is still boosting prices.
CARMAKER HOPES HIGH-TECH PREDA-
TOR IMAGE WILL HELP ACCELERATE
GROWTH
First American carmaker to go public
since Ford in 1956, Tesla IPO is a bell-
wether for investor confidence in
green technology. Tesla Motors will
raise nearly $200m in one of the most
eagerly awaited initial public offer-
ings of the year because it is a “tech-
nology velociraptor”, according to its
founder and chief executive.
TACO BELL TAKES A SECOND LOOK AT
BRITAIN
Taco Bell is attempting to ride a new
Mexican wave into the affections of
British fast food fans. The chain, a fea-
ture of Main Street, America, is open-
ing an outlet at Lakeside shopping
centre in Essex, confident that people
appear to be increasingly open to
Mexican food both at home and when
eating out.
CITYA.M. 28 JUNE 2010 News 3

Insurance industry pleads to

be excluded from bank levy
the wake of the financial crisis. EU not the core insurance business which

▲
INSURANCE
BY HARRY BANKS
IT WOULD be unfair to include insur-
ance companies in the European
Union’s proposed banking levy, indus-
try supervisors said yesterday.
Yoshihiro Kawai, secretary general
of the International Association of
Insurance Supervisors, said the insur-
ance industry should not be caught up
Kirby Adams helped lead Corus back into the black in efforts to clamp down on banks in
leaders have said they support the idea
of a bank levy despite a lack of support
internationally, although details are
yet to be worked out.
Last week, EU officials said a levy on
banks could be applied to other finan-
cial services firms, stirring fears that
insurers could also be targeted.
“In my view, it’s really unfair that
insurance is included because the
business model is so different, and it’s
creates this kind of crisis,” Kawai said.
Insurers “play a stabilising role for
the financial system rather than
amplifying or originating system con-
cerns. I feel very uncomfortable that
the insurance business is being treated
the same way as banking in terms of
this levy.”
For the insurance sector, group-wide
supervision is particularly important
to avoid regulatory gaps, he noted.

Corus boss to
quit the firm
he rescued
more than 30 years.
▲

STEEL
BY STEVE DINNEEN
CORUS boss Kirby Adams has
announced his shock departure from
the steel giant after turning around
its fortunes in the wake of the finan-
cial meltdown.
He will be replaced in October by
Corus’ parent company Tata Steel’s
chief financial officer Dr Karl-Ulrich
Köhler.
Adams was responsible for oversee-
ing a sweeping restructuring of the
business, which took Europe’s second
largest steel producer from losses of
£100m a month back into the black.
He attracted controversy for giving
the green light to thousands of job
losses, many resulting from his deci-
sion to moth-ball a major Corus plant
in Teesside.
Adams confirmed his departure,
saying he will return to Australia,
where he worked for BlueScope Steel
before taking up the top job at Corus.
He will remain a consultant at the
firm.
Replacement Köhler, a board mem-
ber at the company, joined Corus in
February from ThyssenKrupp Steel,
where he has spent a career spanning
Tata Steel chairman Ratan Tata
says Köhler will take the reins at a
rejuvenated firm with strong growth
prospects thanks to Kirby.
He said: “In his time as chief execu-
tive of Tata Steel Europe, Kirby has
effected a major turnaround of the
business and he leaves the company
very well placed for the future. We
thank him for his contribution and
look forward to making further
progress under Karl’s leadership.”
The firm is now eyeing a deal for
the moth-balled Teesside plant, with
Thai steelmaker SSI understood to be
engaged in talks.
Corus, the European operation of
Tata Steel, accounts for two thirds its
parent company’s global output of
about 30m tonnes of steel, while the
booming Indian operations con-
tribute a quarter. Tata Steel also has
units in Thailand and Singapore.
Dr Karl-Ulrich Köhler
will take over as chief
executive after a 30-
year career at rival
ThyssenKrupp Steel.

NEWS | IN BRIEF
Boeing to probe 787 jet fleet
Boeing will inspect its entire test fleet of
787 Dreamliners before further flights
after identifying a “workmanship issue”
that affects the jet’s horizontal stabilis-
ers, the company said yesterday. Boeing
said it expects the issue will be
addressed within the existing pro-
gramme schedule and that the 787
remains on track for the first delivery to
All-Nippon Airways by the end of this
year. Boeing said that fixing each plane
will take up to eight days, but reports the
fleet was grounded were incorrect.
WPP revenue up from World Cup
The World Cup is expected to deliver
strong revenue for WPP, the world’s
largest advertising company, according
to an interview with Bloomberg.
Speaking at the Fortune Global Forum in
Cape Town yesterday, chief executive
officer Sir Martin Sorrell said that audi-
ences have generally been strong and
that sponsorship had been stronger than
people had anticipated, with the tourna-
ment, the world’s most-watched sporting
event, pulling in major supporters such as
Adidas and Coca-Cola. SPORT: P30-31
Toy Story wins film battle
The cartoon heroes of “Toy Story 3”
crushed new releases from Adam
Sandler and Tom Cruise to lead the North
American box office for a second week-
end, according to studio estimates issued
yesterday. Toy Story 3, from Walt
Disney’s Pixar Animation unit, sold about
$59m (£39m) in tickets across the
United States and Canada during the
three days beginning on Friday. Woody,
Buzz Lightyear and their pals hit $100m
internationally after a $36.1m weekend
in 32 countries representing 35 per cent
of the foreign market. Mexico has con-
tributed $34m, Disney said.
CITYA.M. 28 JUNE 2010
IDS asks jobless to relocate
POLITICS
▲
BY DAVID CROW
IAIN Duncan-Smith yesterday defend-
ed plans to relocate unemployed
council house tenants to areas where
they can find work, dismissing
claims he was returning to the “on
yer bike” approach of the 1980s.
The work and pensions secretary
said the policies would help the job-
less escape “ghettos of poverty” and
find work in more economically
active areas.
“People are static, unable to get
Cable is cool
on NewsCorp
BSkyB probe
▲
EXCLUSIVE
BY DAVID CROW
VINCE Cable has said there “would
need to be a lot of evidence” for him
to become involved in NewsCorp’s
attempt to acquire BSkyB, in
remarks that are sure to alienate
anti-Murdoch Liberal Democrats.
As business secretary, Cable could
announce an investigation into the
takeover on public interest grounds.
He would then have the ultimate say
on whether it could proceed.
But Cable told City A.M.: “I haven’t
taken an official view, but there
would need to be a lot of evidence
for me to become involved. There is
no suggestion that I should inter-
vene.”
Asked if he had any moral objec-
tion to Sky News being wholly
owned by the company that prints
The Times, The Sun, The Sunday
Times and The News of the World,
Cable replied: “If I answered that I
would be prejudicing the outcome
of any competition procedures.”
The favourite ground
this tournament.
Black, White, Cappuccino or Latte.
There’s a McDonald’s for everyone.
© 2010 McDonald’s.
work because there isn’t any work
there, unable to get to work because
their salaries, their wages aren’t high
enough. And they are stuck,”
Duncan-Smith added.
But Labour leadership contender
Ed Balls seized on the initiative as
proof the coalition was rehashing
the welfare-to-work policies of
Margaret Thatcher and Norman
Tebbit.
He said: “What he’s saying, a bit
like Norman Tebbit was saying on
the 1980s, is get on your bike, move
and find a job elsewhere.
His apparent reluctance to inter-
vene will annoy a large number of
Liberal Democrat MPs. They blame
NewsCorp’s newspapers, especially
The Sun, for eroding the party’s new-
found support in the final weeks of
the election campaign.
News Corp has proposed it acquire
the 61 per cent of shares it doesn’t
own in Sky at a price of 700p a share.
In the first instance, the European
Commission would look at whether
the takeover should be blocked.
However the matter could be
called back to the UK, either by the
Office of Fair Trading or by Cable
himself.
The OFT could call for a probe on
anti-competition concerns, but
Cable would have to announce pub-
lic interest grounds for an investiga-
tion. If he chose to do so, he would
have the ultimate say on whether
the deal could proceed.
Labour has yet to take an official
view on the planned takeover,
although it will voice its opposition
in the next few weeks.
“But he’s going slightly further
than Margaret Thatcher and Norman
Tebbit… it’s actually on your bike and
lose your home.”
The work and pensions secretary
said millions of people are trapped
on sink estates where there are no
jobs. Under existing rules, if they
choose to move to find work they
lose their right to a council house.
Recruits to Duncan-Smith’s
scheme would go to the top of the
waiting list for social housing in any
area, as long as they were relocating
there to take up employment.
Nick Clegg campaigned against a “Tory VAT Bombshell” in the election campaign
Support for Nick Clegg crumbles
▲
POLITICS
BY DAVID CROW
SUPPORT for the Liberal Democrats
has collapsed, leading to fears of a
split in the coalition government.
An ICM poll for the Sunday
Telegraph shows support for the
party has fallen to 16 per cent – its
lowest rating in 18 months and well
below the 31 per cent it enjoyed dur-
ing the campaign.
Firms win exemptions
from immigration cap
▲
POLITICS
BUSINESSES have convinced the Home
Office to water down plans that will
limit the number of economic
migrants allowed entry to the UK each
year.
Firms have been lobbying hard
against the cap since it was first moot-
ed, fearful it could stop them recruit-
ing top talent from abroad.
Business secretary Vince Cable has
Conversely, support for Tory coali-
tion partners is up two per cent to 41
per cent while Labour has gained four
points to 35 per cent.
And a YouGov/BrandDemocracy
poll for the Observer shows that
almost half of Lib Dems are consider-
ing tearing up their membership
cards because of the party’s support
for last week’s Budget.
Forty-eight per cent of voters that
backed the Lib Dems at the election
Politics 5
taken up their cause in cabinet discus-
sions, and they are now expected to be
offered some kind of exemption.
Theresa May, the home secretary,
will today announce a temporary cap
on economic migrants from outside
the EU. Under the cap, just 24,100
workers from outside the EU will be
let into the country between now and
April 2011.
Labour dismissed the policy as a
“gimmick”.
Picture: PA
said they were thinking about aban-
doning the party after it backed a
sharp hike in VAT from 17.5 per cent
to 20 per cent.
In the run up to polling day, Nick
Clegg campaigned against a “secret
Tory VAT bombshell”, while business
secretary Vince Cable said it would
“stall any early recovery and hit shops
hard”. The polls increase the likeli-
hood of a Lib Dem rebellion against
the Budget.
 6 Focus on Wall Street Reforms CITYA.M. 28 JUNE 2010

Q&A: US FINANCIAL REFORM UNTANGLED

Q. WHAT ARE THE ROOTS OF THE

DODD-FRANK OVERHAUL?
A. At the height of the financial cri-
sis in 2008, US investment banks
converted into holding companies so
they could take emergency loans
from the Federal Reserve, as well as
taxpayer aid. Most of the capital dis-
tributed then has been repaid, but
the public and politicians remain
angry at Wall Street. The House and
the Senate now need to approve the
bill next week and Obama will have
to ratify it for it to pass into law.
tory practices such as kick-backs for
brokers who push consumers
ment through organi-
sations such as the
Q&A
towards more expensive home loans
will be eliminated. Retail banks will
have to answer to a fresh regulator,
American Bankers’
Association and the Derivatives
Lobby.
the Consumer Financial Protection
Bureau. And the federal insurance
threshold for savers’ deposits will be Q. WHAT DOES IT ALL MEAN FOR
BRITISH BANKS?
raised to $250,000 (£166,000).
A. Although the coalition govern-
ment has been watching the
Q. HOW HAS THE CRACKDOWN
BEEN SOFTENED?
progress across the Atlantic with
interest, the real question is to what
A. Some proposals have fallen by
the wayside due to political dis-
agreement. Senator Blanche
extent the bill affects European
Union politicians’ plans. The Dodd-
Frank act’s $19bn tax on Wall Street

Q. WHAT DO THE RULES MEAN FOR

AMERICAN CONSUMERS?
Lincoln’s attempt to entirely ban
banks from derivatives-based activity
may add some credibility to the
EU’s proposed banking levy, while

A. For the first time, mortgage

lenders will have to verify a cus-
tomer’s income, employment status
and credit history. Supposedly preda-
was shot down by both Democrats
and Republicans, for example. On
other issues the banking community
the establishment of a new super-
regulator may give the EU’s drive to
set up four pan-European entities
was able to put its side of the argu- momentum.

Wall Street’s
great escape
as bank rules
are softened
Executives’ uncertainty over financial reform has
turned into relief, but Goldman Sachs and Morgan
Stanley will suffer heavily, writes Oliver Shah
AFTER a year of lobbying, the big exchanges, but banks will continue
beasts of American banking could most of their derivatives activities to
only sit and watch in the early hours help clients manage risk;
of Friday morning as Congress • around a third of riskier deriva-
finalised its finance reform bill. tives activity, including trades in cred-
A marathon 20-hour session sealed it default swaps, will have to be spun
the draft version of the Dodd-Frank out into separately capitalised units;
act, named after representative • Goldman Sachs and Morgan
Barney Frank and senator Chris Stanley, which particularly rely on in-
Dodd. Even as Dodd hailed the agree- house trading for revenues, would be
ment between the House and Senate badly hit. The clampdown could
as a “great moment”, banking stocks shave up to 10 per cent from
began to soar. Traders realised some Goldman’s turnover. Goldman may
of the bill’s toughest provisions had have to withdraw some $10bn from
been blunted by 11th-hour changes. its internal funds.
Bulge-bracket institutions will pay • an independent Consumer
a one-off levy of $19bn (£12.6bn) over Financial Protection Bureau will tack-
five years to cover the cost of tighter le mis-selling of mortgages, credit
regulation. But they will be able to cards and loans, while an über-regula-
I a brand
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F REEVI
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CO K three per cent of their tier one capital bank stocks,” he said, suggesting
into proprietary trading and buyouts; banks would pass on extra costs to
• over-the-counter derivatives will their clients and “get around” restric-
be forced onto clearing houses and tions on proprietary trading.
CITYA.M. 28 JUNE 2010 Focus on Wall Street Reforms 7

Barney Frank (l)

and senator Chris WHAT IMPACT WILL THE FINANCE REFORM BILL HAVE?
Dodd (r) have been
the most vigorous
proponents of a BARACK OBAMA | US PRESIDENT

“
clampdown on
Wall Street.

”
Our economic growth and prosperity depend on a strong financial sector... but we’ve all seen
Picture: REUTERS
what happens when there’s inadequate oversight and insufficient transparency on Wall Street.

BOB CORKER | REPUBLICAN SENATOR FOR TENNESSEE

ANALYSIS l Goldman Sachs

190 $

180

170
139.66
25 Jun “ Some of the core areas that are very important have gone completely untouched. We did not
deal with Fannie and Freddie – the underwriting provisions should have been much stronger.

DICK BOVE | ROCHDALE SECURITIES

”
“
160

”
150 This is a populist surge of activity to say: ‘Hey, we’ll get these bad guys on Wall Street that
140 did bad things to you.’ I would be buying bank stocks this morning as the bill is behind us.
130
29 Mar 19 Apr 7 May 27 May 17 Jun

ANALYSIS l Morgan Stanley

32 $
25.01
30 25 Jun

28

26

24

22
29 Mar 19 Apr 7 May 27 May 17 Jun

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CITYA.M. 28 JUNE 2010 News 9

Shell vows that

BP in £470m deepwater drills
battle with will continue

Transocean
ENERGY

BP IN CRISIS
BY EMMA SADOWSKI
BP AND Transocean, owner of the
Deepwater Horizon rig, look set to
enter into a legal bloodbath after the
oil major has given notice that it will
issue a £470m claim against the rig’s
insurance policy.
The two are set to go head to head
over who will cover costs linked to the
tragic Gulf of Mexico spill.
Insurers for Transocean, including
syndicates in the Lloyd’s of London
insurance market, have already filed
a lawsuit seeking a declaration that
they have no obligation to cover BP,
which was leasing the Deepwater
Horizon rig from Transocean at the
time of the 20 April explosion.
The recent claim is one of many
legal battles facing BP, as the group is
currently at odds with Macondo well
partner Anadarko over spill costs.
BP has already received a number
of class action claims from US busi-
nesses affected by the Gulf spill, while
it is understood that chief executive
Tony Hayward has been named as a
defendant in some legal suits.
Meanwhile, costs related to the
spill have climbed to $2.35bn (£1.5bn),
while BP said that it has already made
39,000 claim payments totalling
$126m (£83m).
Uncertainties over the approaching
hurricane season mounted over the
weekend as tropical storm Alex
looked likely to hit the Louisiana
coast. The storm eventually weak-
ened, but was a stark reminder to BP
that its efforts to cap the leaking well
could be threatened.
A spokesperson from BP said that
the group has “well worked plans” to
deal with a hurricane.
FAST FACTS | BP LEGAL BATTLES
● May: Lloyds of London insurers connected to
BP seek declaration on Transocean obligations.
● June: Anadarko refuses to pay for its share of
the costs.
● June: Class action law suits begin to spill in.
BP boss Tony Hayward is a defendant in some legal suits
▲
PETER VOSER, chief executive at Royal
Dutch Shell, has pledged that the
company will remain committed to
deepwater drilling despite the Gulf of
Mexico disaster.
Speaking in Cape Town yesterday,
Voser said that with a climb in popu-
lation and the rising demand for oil,
avoiding deepwater drilling is not an
option.
“Given the rise in the population
and rise in developing world of ener-
gy needs, we will have to develop
those resources in deep waters as
well, so my expectation is that we will
go forward with it, but it will need
some changes,” said Voser.
Shell’s global safety procedures are
in line with the regulations currently
being proposed by the US govern-
ANALYSIS l BP ment and interior secretary Ken
700
p Salazar, according to Voser, who said
650 304.85 that the industry needed to work
600
25 Jun harder at preparing for oil spills.
550
But Voser distanced himself from
500
BP and said that Shell would never
450
have drilled the Macondo well in the
400
same way.
350
He said: “We would not have drilled
300
the well in the same way. We have got
other safety procedures across the
29 Mar 9 Apr 20 Apr 29 Apr 11 May 20 May 1 Jun 10 Jun 21 Jun globe. But I think for some companies
there will be some learning from this
Picture: REUTERS as well.”
 The Capitalist
10
BOXING BANKERS UNLEASH THEIR
BULLISH INSTINCTS IN THE RING
ONE of the City’s biggest bankers’
boxing clubs is setting up a champi-
onship fight for a charity night soon.
The Real Fight Club in Spitalfields,
London’s original home to the prac-
tise of “white collar boxing” (i.e. box-
ing by bankers) is holding a boxing
showcase evening on 15 July and
expects to see a City audience of
1,200-1,300 turn out to watch.
As well as raising money for chari-
ty, the event is being held to celebrate
the club’s tenth anniversary. The
night – in aid of children’s charity
Kids Company – will pit top Danish
boxer Mads Handsen of Platinum
Equity against accountant Alex
Bogaciev in a battle for the White-
Collar Boxing Association’s European
cruiser-weight title. Other boxers
proving their prowess on the night
will include fighters from Deutsche
EDITED BY
JULIET SAMUEL
GOT A STORY? EMAIL
thecapitalist@cityam.com
Bank, Bloomberg, UBS, West LB and
Cleary Gottlieb.
And if the thought of oiled-up equi-
ty managers bashing each others’
brains out for a laugh doesn’t appeal,
don’t worry – these boxers take their
sports as seriously as they take their
portfolios. What’s more, there should
be no shortage of food and drink and
a VIP ticket gets you front row seats
for the action (as well as topping up a
The white-collar boxing championships: equity manager versus accountant.
worthy donation, of course).
Unlike some of his club members,
however, club founder Alan Lacey’s
not too worried about the economy:
“I wouldn’t say it’s recession-proof
but... when things are tough you tend
to want to focus on something. It’s
either that or you go to the bar. We’re
a cheaper alternative.”
Get used to German gloating
GERMAN SPAM
Quick off the mark after the England
football team’s 4-1 defeat to
Germany yesterday, IHS Global
Insight’s Howard Archer sent
through a hasty memo: “The thump-
ing of England by Germany in the
World Cup is bad news for UK con-
sumer confidence. I feel a down-
grade of my third quarter UK GDP
forecast coming on!”
He adds: “It is particularly bad
news for those of us who work for
companies with a German office.
All my emails from our Frankfurt
office are going straight to my junk
mail with immediate effect and I
am sure this will be a common fea-
ture across UK companies with
German operations.”
A COURAGEOUS CRIB
The Budget prompted some creative BE MY SUGAR ANGEL
metaphors this week, with BNP Lord Sugar – who used to be better
Paribas labelling the deficit one big
hangover after “Brown’s binge”.
Meanwhile, the OECD’s verdict on
Chancellor George Osborne made
for some happier language. It called
the Budget a “courageous move”
that could “restore public finances
to a sustainable path”.
Had they been cribbing pre-
Budget briefing notes from the
Royal Bank of Scotland (RBS)? RBS
released a note just four weeks ago
laying out the Osborne’s options:
“The choice facing the chancellor is
whether to pursue a ‘softly-softly’
strategy or a ‘courageous’
approach”.
Contacted, one of the paper’s
authors Ross Walker feigned out-
rage: “Those terrible people at the
CITYA.M. 28 JUNE 2010
OECD, stealing my work again!”
Though he can’t complain: RBS was
quoting the wisdom of an old politi-
cal master when it wrote about min-
isterial courage – that of Yes,
Minister’s Sir Humphrey Appleby.
“Above all,” Sir Humphrey advises,
“if you wish to describe a proposal in
a way that guarantees that a minis-
ter will reject it, describe it as coura-
geous.”
Clearly Appleby had yet to meet a
minister of George’s ilk.
THE PEOPLE’S PARTY
Speaking of courageous politicians, a
flock of MPs turned out in their fin-
ery on Thursday for a glitzy summer
soiree on the House of Commons ter-
race hosted by the Bow Group, the
original Tory think tank. Among the
honoured guests were business stars-
turned-politicos Kwasi Kwarteng, Tim
Loughton and Damian Hinds along-
side none too few City visitors soaking
up the Tory G&Ts.
The free-flowing drinks ensured
the guests went home merry, and
word reaches The Capitalist that a cer-
tain breakaway group of journalist
and blogger types didn’t just stop
when the free booze dried up.
Instead, the intrepid revellers
sneaked up the terrace into the exclu-
sive MPs’ Strangers Bar to continue
the party and made themselves at
home even after their MP hosts went
to bed.
They report drinking and “chilling
out” in London’s best riverside bar
until security kicked them out at clos-
ing time. Meanwhile, we hear that
Bow Group chair Annesley Abercorn
didn’t end the night before a late visit
to St Stephen’s Tavern. No one can say
those Thatcherites don’t know how to
party.
known as Surallan for his starring
role in the The Apprentice – could be
stepping on some Dragons Den toes
after announcing that he’s turning
the hit BBC TV series into an angel
investor game, with candidates now
competing for a £250,000 investment
from Sugar into an independent ven-
ture, rather than for a job at one of
his own firms.
Either way, the show’s not likely to
get any closer to the real deal.
Anthony Clarke of London Business
Angels says of entrepreneur pitches:
“It’s not like the Dragons Den – we’re
not there to catch them out or make
them look ridiculous.”
It seems Sugar my not have
received the memo.
Victoria Bates is away.
CITYA.M. 28 JUNE 2010
Spirits high
at SSG after
vodka boost
▲
CONSUMER
BY JOHN DUNNE
STOCK Spirits Group (SSG) has turned
in a record profit – fuelled by sales of
the fastest growing vodka brand in
the world.
The company’s annual revenue
soared by 17 per cent to €262m
(£216m) in 2009 compared with the
previous year.
Earnings – before tax interest, taxes
and amortisation – were up 46 per
cent to €69.2m. Polish vodka Czysta
de Luxe boosted the figures after
5.4m nine-litre cases were offloaded.
SSG, the largest producer of brand-
ed spirits in central Europe, is the
market leader for vodka in Poland,
Slovakia and the Czech Republic.
Overall production volumes for
vodka doubled in 2009 to 97m litres.
Meanwhile one of the UK’s big five
supermarket chains is preparing to
trial some of the company’s spirits.
SSG chief executive Chris Heath
said: “We have gone into markets a
lot of the big drinks companies have
avoided because they were worried
about working practices and various
other issues.
“We have gone in and used our
experience to take this businesses for-
ward. Some of the machinery in the
factories we took over was more than
40 years old, so we replaced it and it is
some of the most modern available.
“In central europe customers want
quality and that’s what we are offer-
ing and word of mouth is helping our
success.”
SSG was set up after a merger of
two regional businesses, Stock and
Polmos Lublin, in 2007, backed by
Oaktree Capital.
FAST FACTS | SSG RESULTS
● The company’s annual revenues shot up by 17
per cent to £216m
● Earnings were up by 46 per cent to £56.8m
● Production figures for vodka doubled to 97m
litres in 2009
Chris Heath is eyeing more expansion for SSG
CHRIS HEATH
SSG CHIEF EXECUTIVE
Chris Heath joined Stock Spirits Group in 2007.
In October 2009, he was appointed chief execu-
tive following a successful period as chief financial
officer.
He was previously group CFO and commercial
director of Gondola Holdings, owner of Pizza
Express, Ask and Zizzi restaurants.
From 1988 to 2005, he held a number of senior
positions in Allied Domecq. He started as chief
accountant of Ind Coope in 1988 before being pro-
News 11
moted to finance director of Ind Coope
Retail in 1990 and then finance, property
& leasing director of the same company in
1993.
In 1995 the executive moved into the
spirits division of Allied Domecq as finance
director of the european region.
He held the positions of managing director,
UK and then managing director, Spain
respectively from 1999 to 2003. He then
became global finance director of Allied
Domecq until 2005.
He told City A.M. that he had become a con-
noisseur of vodka in his new role and would be
able to identify all SSG products in a taste test.
 '{Ā{á­žææF𚞳
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§§æbá{{³ž­F{æ枭ú§Fð{oÏ
CITYA.M. 28 JUNE 2010 News 13

Eurozone divided on debt

will barely change.
However, how hard the next cou-
ple of years will be also greatly
depends on where in Europe you
happen to live. According to Diron,
while southern Europe is heading for
several years of very low, or even neg-
ative growth, northern Europe will
CNBC COMMENT benefit from strong competitiveness
levels. In addition, implementing
LOUISA BOJESEN austerity plans and reducing deficits
in the north will be more manage-
rally, and 4) the hangover from 3)
and the realisation of how pricey the
rescue was going to be for govern-
ments. Companies now look better
positioned than sovereigns if we are
indeed in turnaround mode, and
Olney points out credit’s shortcom-
ing is that it doesn’t share in profits
growth or excess cash flow. British
companies with a yield above the
market’s 12-month forward dividend
yield of 4.5 per cent, and which also

T
HE never-ending, seemingly bil-
lion-hour tennis marathon and
the World Cup have been wel-
come distractions to the doom
and gloom in the market. As the lat-
est record high in Greek 5-year credit
default swaps indicate, investors still
think there is a real possibility that
Greece could default on its gargantu-
an national debt.
Marie Diron, an economic adviser
at Ernst & Young, says that economic
growth in the Eurozone will be 1-2.5
Alchemy has sold its stake per cent lower per year than in the
in Seymour Pierce, headed US over the next five years. She
by Keith Harris (right), as it points out that there will be a severe
scales down its investments impact on jobs from this woeful
after the departure of Jon underperformance: while the US
Moulton (left) economy will generate more than
Pictures: REX, Micha Theiner 10m new jobs between 2010-2014,
employment levels in the Eurozone
able as the starting levels are better are well covered, include
to begin with. AstraZeneca, BAT, British Land, Land
Securities and HSBC. So it’s not all
THE OPPORTUNITY OF YIELD gloom after all, then.
Austerity does not mean that equi- Louisa Bojesen co-anchors European
ties are done for. Karen Olney, a Closing Bell weekdays on CNBC.
strategist at UBS, has looked into this http://europe.cnbc.com
in detail; she tells me that valuations
support equities. Even if the recovery
is muted, equities can offer good
earnings growth and cash flows –
something that bonds cannot. Olney
expects this to continue as she does-
n’t think we are going to see a dou-
ble-dip recession. Instead, Olney
reiterates that there are four legs to
the current crisis, and we’re current-
ly in the last leg: 1) the interbank
lending freeze, 2) the fallout on the
wider economy, 3) the government
bailout that led to the March 2009

Alchemy sells
Pierce stake
FINANCIAL SERVICES profit of £4.5m in the first half of this
▲

BY STEVE DINNEEN year.

ALCHEMY Partners will sell its stake in
broker Seymour Pierce as it attempts
to scale down its investments in the
wake of the departure of founder Jon
Moulton.
Alchemy acquired 29.9 per cent of
the City’s biggest small-cap brokerage
after throwing its weight behind a
management buyout in 2003.
The Seymour Pierce employee bene-
fit trust will snap up the shares,
which Alchemy and a management
consortium took private for £7.4m.
It is understood Alchemy will make
a decent return on its investment in
Seymour Pierce, although the sum
has not been disclosed.
Seymour Pierce is consolidating
after taking a battering during the
recession. Last year it posted a loss of
£3m, after scraping a profit of
£138,000 the year before.
However, it says it has recorded a
NEWS | IN BRIEF
The deal with Alchemy means the
firm is almost entirely owned by its
staff, including executive chairman
Keith Harris, who spearheaded the
management buyout.
Harris is also involved in the “Red
Knights” bid for Manchester United.
Alchemy is still reeling from the
shock departure of Moulton last year
to set up new private equity vehicle
Better Capital.
Moulton, who recently joined the
ranks of business leaders who threw
their weight behind our campaign
against a rise in capital gains tax, has
already bought the iconic Reader’s
Digest out of administration and
acquired aerospace manufacturer

Gardner for £20m.      
He raised £142m when he floated
Better Capital on Aim and is expected
 
to rake in an extra £67m as it steps up      
to the main London Stock Exchange
market in the near future.    
     
 

Shooting school sold for £8m
Royal Berkshire Shooting School, the clay
pigeon shooting and country sports com-
pany based in Pangbourne outside
Reading, has changed hands for between
£7m and £8m. Alex Newman, the former
head of mining player Antofagasta’s cor-
porate finance department, has bought
the centre from property investor Bryan
Richmond-Dodd. Newman said he was
planning to plough money into the busi-
ness and concentrate on its growth, pos-
sibly through making acquisitions.
Economist pays £33m dividend
The Economist Group, which owns the
well-known Economist business maga-
zine, has raised its dividend 38 per cent
to £33m even though its pre-tax profits
fell 10 per cent to £50m. The payout was
shared by investors including the
Rothschild and Schroder families. The
Economist boosted its weekly circulation
to 1.4m copies, offsetting a slump in print
advertising in the nascent recovery.
Tui finance boss linked to M&S
Tui Travel’s finance director, Paul Bowtell,
has been linked to a board position with
retailing heavyweight Marks & Spencer. '/5$EULJKWHUFRPPXWH
'/5$EULJKWHUFRPP
PXXWH ZZZGOUFRXN
ZZZGOUFRXN
Bowtell, who has previously done stints
with British Gas and BG Group, is under-
stood to have held talks with M&S about
the upcoming finance director vacancy
following Ian Dyson’s shock resignation,
which came just days after Marc Bolland
started as chief executive. Bowtell is well
regarded in the City.

HMV to announce
profits of £74m
▲
RETAIL
BY STEVE DINNEEN
EMBATTLED retailer HMV is expect-
ed to post pre-tax profits of £74m in
its full year results on Wednesday,
boosting hopes the firm’s new man-
agement can turn around its for-
tunes.
It is understood HMV will hit esti-
mates laid out earlier this year.
The music, film and games mer-
chant has been torpedoed by the pro-
liferation of digital versions of its
products and its share price has
plummeted in recent years. In 2005
the firm’s shares were valued at
274p – now they are worth less than
55p.
The group, which runs over 400
stores under its own name as well as
313 Waterstone’s bookstores, said in
April its like-for-like sales slipped 13.2
per cent in the 16 weeks to 24 April.
But the retailer said it has benefit-
ed from better margins and tight
cost control. It added that a strong
summer release schedule should
lead sales trends to improve.
It has seen a boost from block-
buster movie releases including sci-fi
epic Avatar, Sherlock Holmes, Alice
in Wonderland and Toy Story 3.
It also expects a strong music ros-
ter and the release of motion sensor
hardware for the major games con-
soles to boost its revenue.
However, it isn’t all good news,
and the general malaise surround-
ing the retail sector will weigh on
the mind of new chief executive
Simon Fox, especially in relation to
the firm’s ability to honour its 7.4p
shareholder payment at the end of
the year.
The firm’s low share price has
reportedly alerted a number of pri-
vate equity sharks who are circling
the firm in the hope of a further
share collapse.
14 News
TfL closes door on
Tube Lines takeover
▲
TRANSPORT
BY EMMA SADOWSKI
BORIS JOHNSON, London’s Mayor,
and Transport for London (TfL) have
completed the takeover of Tube
Lines.
Under the agreement, TfL has
purchased all of Tube Lines’ shares
from Bechtel and Ferrovial’s Amey,
for £310m and will now manage
the ongoing work to the Northern,
Jubilee and Piccadilly lines.
Johnson said the deal will open a
new era for the tube giving TfL
greater flexibility to how improve-
ment work is carried out.
Amey will continue to provide
It might not be fair – but sell, sell, sell
IT’S not hard to see why shareholders
are so down on HMV. Its traditional
source of revenue – CDs, DVDs and
video games – is being quickly eroded
by digital replacements. And its foray
into ticketing, live music and music-
themed memorabilia and clothing
isn’t convincing the market. That
said, HMV is massively oversold: it has
lost 35 per cent of its value since the
start of they year, earning it a demo-
tion to the FTSE 250.
maintenance services to all three
lines, while Bechtel will oversee a
transition period.
He said: “The capital is the
engine room of the UK economy
and this new arrangement ensures
that the vital tube upgrade work,
upon which London’s own econom-
ic success depends, is delivered at
the best possible value.”
TfL said that its first objective is
to launch a review of the public pri-
vate partnership (PPP) upgrade pro-
gramme at the same time
completing the maintenance work
affecting the Jubilee Line.
“We have wasted no time in act-
ing to limit the disruption of the
Fears over HMV’s long-term future
have been priced in, but they fail to
recognise the upsides: management,
led by the able Simon Fox, has a good
track-record of growing profits
against a tough backdrop; and if fore-
casts are met when HMV reports this
week, the shares will be trading on
just 4.3 times earnings – a massive
discount to the rest of the retailers.
Still, with the shares trading on a
dividend yield of around 14 per cent,
CITYA.M. 28 JUNE 2010
upgrade programme by cutting
back the closures... we will now
look at how we can keep disruption
to a minimum in the future,” said
Johnson.
However, an ongoing dispute
between Tube Lines, its workers
and rail union RMT is yet to be
resolved after workers launched a
three-day strike, causing severe
delays across the Northern,
Piccadilly and Jubilee Lines.
A further set of strikes are sched-
uled between 14 and 16 July but
could be stopped by a court injunc-
tion this week.
The dispute is over pay, working
conditions and job security.
Chief executive
Simon Fox hopes a
strong release
schedule will buoy
his struggling
firm.
Picture: REX
the payout is looking increasingly at
risk. Although the firm says it can
make this year’s 7.4p payment thanks
to underlying cashflow, it is unlikely
to keep it up. It might not be fair, but
this stock is priced to fail. Investors
should sell on any short-term lift at
the results this week.
BOTTOMLINE
Analysis by David Crow
CITYA.M. 28 JUNE 2010
CASSANO QUIZZED OVER AIG COLLAPSE
JOSEPH Cassano, a former AIG executive who played a big role in bringing the giant
insurer to its knees, will face a grilling this week from a US panel investigating the caus-
es of the financial crisis. Cassano will rub shoulders with a star cast, which includes
Goldman Sachs president Gary Cohn and chief financial officer David Viniar. Cassano,
who ran AIG Financial Products, has evaded public appearances since the 2008 collapse.
Financial firms fear
looming regulation
▲
BANKING
BY JESSICA MEAD
ACTIVITY in financial services firms
over the past three months has
increased at the fastest rate since
September 2007, but market volatil-
ity meant that this growth was
much slower than had been expect-
ed, the quarterly CBI/PwC Financial
Services survey will show today.
In the second quarter, a net nine
per cent of firms said that their
business volumes rose. But they are
highly optimistic about the sum-
mer period – a net 63 per cent
expects a rise in volumes, the most
positive since December 1993.
The financial services sector
enjoyed its fourth consecutive quar-
ter of improving profitability but
the survey revealed that firms
expect that to level off.
But concern about the impact of
regulation and legislation on
future business has stayed high,
with 77 per cent of firms expecting
to spend more on compliance over
the coming year. John Cridland,
deputy director-general of the CBI,
said: “Many remain concerned that
red tape will hamper growth
prospects in the year ahead.”
ANALYSIS l Banking firms’ optimism versus three months earlier
80
40
0
-40
-80
2001 2002 2003
Norman hopes to
sell gold at ATMs
▲
COMMODITIES
BY MARION DAKERS
GOLD trader Sharps Pixley has been
sold to metals dealer Ross Norman.
Norman, a director at metal news
website Fastmarkets and former trad-
er at the London Bullion Market, is
understood to have bought the com-
pany in order to sell gold ingots and
coins to small-scale investors.
He said he hoped to revive the
Sharps Pixley brand, after current
owner Deutsche Bank stopped using
the name when it acquired the firm
in 1994.
Norman is understood to be in
talks with several UK banks and
building societies about enabling cus-
Andrew Gray, UK financial servic-
es consulting leader at PwC, said:
“The generally upbeat outlook for
banks of growing revenues and
profitability is being overshadowed
by the looming threat of regulation
on the sector. While banks may be
confident in their own business
models, they are unsettled by their
operating environment.”
Source: CBI/PwC
2004 2005 2006 2007 2008 2009 2010
tomers to buy small quantities of
gold through ATMs and other chan-
nels.
Sharps Pixley was formed in 1740,
and was one of the five original gold
brokers in London that used to set
the daily price of gold.
Norman is known for his accurate
forecasts on the price of gold, as a
member of the London Bullion
Market Association.
Small-scale investors have flocked
to gold and other commodities
recently after the uncertainty of the
credit crunch and eurozone sover-
eign debt crisis.
Neither Deutsche Bank nor
Fastmarkets were available for com-
ment yesterday.
News 15
NEWS | IN BRIEF
M&B close to £40m strike
Pub giant Mitchells & Butlers is on the
verge of selling its ten-pin bowling chain
for up to £40m. The pub group, which is
led by chief executive Adam Fowle, has
been in talks in recent weeks over the
sale of its Hollywood Bowl division,
which has 24 centres from Glasgow to
Somerset. Privately-owned AMF is
regarded as the frontrunner for buying
the chain, but other parties are still
involved. M&B, which operates the
Harvester and Toby Carvery chains, is
keen to sell off other ventures and con-
centrate on pubs and food.
Barclays to expand in Eurozone
Barclays is this week set to announce
plans for faster expansion in Spain,
Portugal and Italy, taking advantage of
local competitors weak position. Antony
Jenkins, head of the group’s retail bank-
ing operations, is expected to outline the
plans for expansion to investors this
week. Barclays already has a network in
Spain and Italy. During the credit crunch
it bought credit card and loan portfolios
from rivals including Citigroup.
 16 News
Fitness First
in £1.2bn IPO
LEISURE
▲
BY OLIVER SHAH
BUYOUT house BC Partners is
believed to be lining up Fitness First
for a flotation in the Far East which
could value the world’s largest gym
group at between £1bn and £1.2bn.
BC Partners, which has enjoyed suc-
cess with the initial public offerings
(IPOs) of travel IT firm Amadeus and
French care home operator Medica
this year, is thought to be looking at a
listing in either Singapore, Shanghai,
Sydney or Hong Kong.
Fitness First had sales of £610m in
the year to 31 October 2008, accord-
ing to the most recently filed
accounts at Companies House. The
group generated ebitda of £134.9m
and had net debt of £1.2bn. It is likely
an IPO would be used to cut the com-
pany’s borrowing pile and reduce BC
Partners’ stake in the business from
its current level of 81 per cent.
Goldman Sachs, JPMorgan,
Macquarie and UBS are understood to
be among the investment banks
briefed on the plans by BC Partners.
Because Fitness First’s business is tilt-
ed to Asia-Pacific – more than a third
of its revenues and more than half its
earnings come from the region – it is
thought investor appetite for an IPO
on a local market would be stronger.
The move would mark a return to
public ownership for Fitness First,
albeit in a new geography.
Entrepreneurs Mike Balfour and
Christopher Pearce set up their first
club in Bournemouth in 1992 before
floating the outfit on London’s
Alternative Investment Market (Aim)
four years later. Private equity player
Cinven took the company over in
2001 for £400m.
BC Partners bought Fitness First
from Cinven at an enterprise value of
£835m in 2005, vowing to help fuel
the group’s international expansion.
CITYA.M. 28 JUNE 2010
Estimated
NEWS | IN BRIEF
TNT to sack full-timers by 2012
Dutch postal company TNT has said it
aims to lay off all its full-time workers
market value
£1bn to £1.2bn
Sales in the year
within two years after the firm was
crunched by the liberalisation of the
country’s mail market and the shift to
digital forms of communication. TNT
said it would fire all employees involved
in sorting and delivering mail who work
more than 25 hours per week.
to October 2008
Blood takes chair at Waverley
£610m Former Scottish & Newcastle (S&N)
managing director Jeremy Blood is to
Ebitda become chairman at Waverley TBS
after Manfield Partners backed a man-
£135m agement buyout of the business from
Heineken, Britain’s largest brewer. The
Net debt takeover, at an undisclosed price, comes
after Heineken significantly restructured
£1.2bn Waverley following its £7.8bn joint
acquisition of S&N with Carlsberg in
2008. Blood is one of five partners at
Size of BC Manfield.
Partners stake Cineworld signs 25-year O2 deal
81 per cent Cineworld, the UK’s second largest cine-
ma chain, has won a contract to run the
O2’s multiplex cinema for the next 25
years. It began operating the 11-screen
venue on Friday, having inked the deal
with O2 owner AEG Europe. Analysts
said the site, which produced turnover
of £4.1m last year, would add
£600,000 to Cineworld’s sales.
 AN ADVERTISING INSERT BY MEDIAPLANET

No.2/June ‘10

FRACTIONAL
OWNERSHIP

3STEPS

GET YOUR SLICE OF

THE HIGH LIFE
A life of luxury: Britain’s leading female entrepreneur, Chelsey Baker

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2 · JUNE 2010
CHALLENGES
Luxury living is what everyone aspires to, but the trouble is that it comes
at a price. Second homes and luxury cars don¹t come cheap. However, by
owning not the whole asset, but a part of it, a millionaire lifestyle is now
within reach. .
Living in luxury for a
fraction of the cost
T
he UK Fraction-
al Ownership mar-
ket really took off in
2006, with a grow-
ing number of peo-
ple wishing to enjoy a
lifestyle of luxury items and experi-
ences without the ties, responsibili-
ties and capital outlay of a complete
purchase.
A growing trend
Since its inception in 2007 it
1 has been my pleasure to host
the Fractional Life Expo, the annual
event held at Broadgate Arena in the
City of London.Over the years I have
seen a dramatic increase in both
consumer awareness and interest,
with many professionals from the
City buying into fractional owner-
ship.
If you want to own a luxury sec-
ond home in an expensive resort
but can’t justify the expense or the
time to make use of it, then frac-
tional ownership is very appealing.
The choice of locations is immense
and owners can even trade time at
THE UK'S LARGEST CONSUMER FRACTIONAL OWNERSHIP AND ASSET SHARING EXHIBITION
AN ADVERTISING INSERT BY MEDIAPLANET
their locations for nights at other
properties in the club’s portfolio on
a space-available basis.
Names you trust
Luxury developers including
2 Ritz-Carlton, Four Seasons,
Marriot, Timbers Resorts, and De-
Vere have all capitalised on the
growing demand and offer any-
thing from four to 12 weeks of home
ownership per year at the most ex-
clusive resorts in a wide variety of
prestigious beach, golf, mountain
and urban destinations worldwide,
offering consumers a choice of both
time and location to suit their
needs.
Find your perfect niche
The popularity of asset-shar-
3 ing car clubs has also soared in
recent years, promoting access to a
fleet of classic and supercars for a
fixed membership cost.
The basic model is that a member-
ship fee gets you a number of points.
The amount of points used depends
on the category of the car, whether
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WE RECOMMEND
Playing the
beautiful game
Why there is more
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in one.
PAGE 8
“There are clear
financial benefits
to buying into a
golfing resort.”
you want to drive during the week
or at weekends and the time of year.
Members have access to a whole
fleet of desirable cars with a differ-
ent car to suit every occasion, with
all the associated costs of tax, insur-
ance and maintenance.
We make our readers succeed!
If you enjoy spending your time FRACTIONAL OWNERSHIP, 2ND
EDITION, JUNE 2010
on the water then a fractional boat
plan is definitely worth consider- Managing Director: Willem De Geer
Editorial Director: Danielle Stagg
ing before you invest in what could
be a rapidly depreciating asset with Business Developer: Darren Clarke
Contributor: Virginia Blackburn
exorbitant running costs. You can
Chelsey Baker
Host of the Fractional Life Expo 2010 purchase a share of a boat or yacht Project Manager:
Dominic Webber
and are allocated an amount of us- Phone:
EXPERT OPINION age time. Mooring fees, mechanical 0207 6654409
E-mail:
maintenance and insurance are all
“If you want to own included.
dominic.webber@mediaplanet.com
Distributed with: City AM,
a luxury second All these offerings and more will June 2010
be showcased at the annual Frac- Mediaplanet contact information:
home but can’t tional Life Expo taking place at the Phone: 0207 6654400
justify the expense prestigious Broadgate Arena and Fax: 0207 6654419
E-mail: info.uk@mediaplanet.com
surrounding area in the City of Lon-
... then fractional don 13 – 15th September 2010. The
ownership is very event is free.
I hope to see you there! Mediaplanet’s business is to create
new customers for our advertisers by pro-
appealing” viding readers with high-quality editorial
content that motivates them to act.
13 – 15 Sept 2010, Broadgate Event Venues
Register for FREE entry to the show
www.fractionallifeexpo.com
Follow us at: twitter.com/fractionallife | Expo Stand enquiries: info@fractionallife.com
 AZVYZgh^cH]VgZYDlcZgh]^eVcY:c_dnbZcid[
Bjai^eaZDkZghZVhGZh^YZci^VaEgdeZgi^Zh
M
ore than £14 million has been subscribed
by UK and other investors to Rocksure
funds since Rocksure pioneered in the
UK the shared ownership and enjoyment
of multiple overseas properties, and ten magnificent
houses around the world have been purchased for
our Villa Funds since 2006.
Rocksure funds are unique in the industry because
of these special features: 100% of the equity in the
real estate belongs to the Shareholders; the property
risk is spread over at least 5 destinations; there is
absolutely no gearing, thus lowering risks and op-
erating costs; each house is fully-staffed including a
Housekeeper / Cook who will prepare and serve your
meals; and there is a pre-planned exit at the end of
the life of each Fund.
If you invest in a Rocksure Villa Fund, you will co-own
at least five houses (such as the two pictured below)
for a fraction of the cost of just one and will be able
to enjoy an average of a month a year FREE of any
direct rental cost at your choice of the properties.

Two of the Rocksure Houses in Portugal

CdlndjXVcVahdXd"dlc&%ajmjgn:jgdeZVc
VeVgibZcih[dgV[gVXi^dcd[i]Zeg^XZd[dcZ
Rocksure has now launched its new Capital Fund
which follows exactly the same formula of shared own-
ership and enjoyment but provides a different product:
spacious (1500 sq. ft., 140 sq. m. approx.), minimum
2 bedrooms, 2 bathrooms, luxuriously-furnished and You can be part of this exclusive club and enjoy
equipped, centrally-located apartments and town houses 3-night weekends, 4-night mid-week stays, or 7
in 10 of Europe’s most attractive cities, four of which are night combinations by reserving a unit with a fully-
by the sea. refundable deposit of just £5,000.

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šFWh_iš9Wdd[išL[d_Y[š<beh[dY[šHec[šBedZedš8WhY[bedWšCWhX[bbWšFhW]k[šL_[ddW

First closing has already taken place and the apartment in Private companies may subscribe, too, and use the prop- Please contact us right away to reserve one of the last
Paris is being purchased now, but it is still possible for you to erties to thank existing clients, win new ones and reward remaining Premium Shareholder units.
obtain an ‘early bird’ discount as a Premium Shareholder. management and staff for outstanding performance.

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4 · JUNE 2010
NEWS
Buying your own
portion of paradise
O
Question: Why is fraction-
al ownership not talked about
more?
O
Answer: Because it is still
new to this country and poten-
tial buyers need to be better
informed.
SHOWCASE
As society becomes ever more cash
rich but time poor, a new type of
second home ownership has been
gaining in popularity, namely frac-
tional ownership.
As its name suggests, it im-
plies shared ownership of a prop-
erty, typically between four to 12
individuals, but unlike its disliked
distant cousin, timeshare, the own-
ers which actually be listed on the
deeds of the house. Originating in
Florida about 30 years ago, and now
widely established in the US, frac-
tured ownership is becoming in-
creasingly popular here.
“Typical fractional life visitors
have a time-poor, transient lifestyle
based around luxury and experien-
tal ‘discovery’,” says Fabrizio Harp-
er, head of sales at Fractional Life.
“They perhaps own an interest in
a fractional life property or belong
to a private jet operator/supercar
club already.”
AN ADVERTISING INSERT BY MEDIAPLANET
One size does not fit all
The amount of time owners stay in
their properties varies according
to the region. In the United States,
most people have two weeks annual
holiday, and so that tends to be time
FACTS
O
Britain is leading the way in Eu-
rope. It is estimated that 44 per cent
of fractional property owners in the
UK are British.
O
Ownership starts at about
£25,000, with the average in Europe
between £100,000 to £200,000.
O
According to Fractional Life, 65
per cent of male fractional owners
are 30 to 55, while 40 per cent of
female owners are aged 19 to 35.
O
Mosaic profiling groups identify
fractional owners as predominantly
“It is an
aspirational
lifestyle.”
Fabrizio Harper
Head of sales, Fractional Life
the owners plump for, whereas in
Europe it can be twice that.
Find the right spot for you
Although location, as with any
property purchase is key, there are
baby boomers or ”symbol of suc-
cess” demographics, with rewar-
ding careers rather than jobs, who
live in sought after locations, drive
modern and expensive cars and in-
dulge in exotic leisure pursuits.
O
Fractional owners also tend to
comprise professionals in senior
management positions and entre-
preneurs who have reached a sta-
ge in their lives in which they want
to balance work and leisure more
evenly.
1
STEP
AIM HIGH
HELLO WORLD
Fractional ownership
combines flexibility and
luxury for those search-
ing for adventure.
PHOTOS: ISTOCK PHOTO
many places to consider. Some frac-
tional properties are specifically de-
signed for leisure activities such
as a spa vacation or golf, but there
are plenty of city developments as
well.
For example, in London, a prop-
erty in the middle of affluent May-
fair or celebrity-haunt Primrose
Hill would be stratospherically ex-
pensive if wholly owned; as a frac-
tional property it caters for visitors
who want to come to London either
for vacation or work.
These choices are, however, more
personal (and over the long term,
cheaper) than hotel rooms, as al-
most every fractional property has
somewhere to leave personal prop-
erty, which will be installed in ad-
vance of the owner’s visit. Many
also provide concierge services,
which means groceries can be
bought and installed in advance.
According to Fabrizio, the top
countries in order of user popular-
ity are the United Kingdom, Unit-
ed States, Mexico, South Africa and
India. “It is an aspirational life-
style,” he says.
VIRGINIA BLACKBURN
info.uk@mediaplanet.com
5
TOP TIPS
When looking for your
property, bear the
following in mind:
Know what you’re
looking for
What do you want the prop-
1 erty for? Golf? A spa? And
how far are you prepared to trav-
el? There are fractional properties
for most types of destination in
the UK, but if you have more time
to spend in the property, you
might want to go further abroad.
Consider your schedule
Seasonality is a big issue.
2 Some UK destinations are
still not fully developed because
they are attractive in the summer
months but not in winter, and for
the ownership to work from the
developer’s point of view, it must
be sold all year round. However,
this looks set to change.The same
was true of ski resorts in the
States, but over the last 10 to 20
years, additional facilities have
made them attractive at any time
of year.
Plan ahead
It may seen obvious, but if
3 you have children and want
to use the home for vacations,
make sure you own the part that
covers the school holidays. Check
if there are nearby facilities for
children.
Think outside the box
Fractional ownership does
4 not just cover property:
there are many other elements to
it such as cars and planes. It can
be a far cheaper option than buy-
ing a very expensive car outright.
Be realistic
There are usually two costs:
5 the entry level purchase of
the property and the annual
charge. Make sure you budget for
both.
 

 
        
 
    
   

 

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  4  
6 · JUNE 2010
INSPIRATION
Question: Why is it so important to use a trustee when considering
fractional ownership?
Answer: Because you need someone in place to look after your interests.
How to buy
peace of mind
CHANGE
ORGANISATION & PREPARATION
While fractional ownership can be a
very successful and cost effective way of
owning a second home, there are many
issues to be aware of, including the
fact that the law is different in various
jurisdictions, and that given several
people’s name will be on the title deeds,
you must ensure that you have the
proper title to the property. It is there-
fore wise to use a trustee or administra-
tor.
Know what you’re getting into
“You need someone to look after the re-
lationship,” says Jerry Cobb,chief execu-
tive of the Fractional Ownership Consul-
tancy. “You need someone to look after
your usage rights and arbitrate should
something go wrong.”
Jerry cites many examples of in-
stances owners have to look out for, all
AN ADVERTISING INSERT BY MEDIAPLANET
of which should be totally avoidable
as long as the proper paperwork is in
place. One owner might try to take
a charge against the property, thus
leaving the others vulnerable if he de-
faults on the loan. Or a property might
have four owners, one of whom dies and
leaves it to his five sons, in which case
there are now eight owners. But none of
this will happen as long as the purchase
is structured correctly.
In actual fact, it is rare for major fall-
outs to happen between owners. “They
tend to be silly issues, such as a dis-
agreement over the furniture package
that will furnish the house,” Jerry says.
“Owners also need to be aware of what
they will be expected to pay in nor-
mal wear and tear and abnormal wear
and tear. Most properties prohibit pets
and smoking, so if an owner leaves the
property covered in dog hair and ciga-
rette burns, that will be abnormal wear
and tear. But even normal wear and tear
4
TOP TIPS
JOSHUA HODGE PHOTOGRAPHY
costs will be higher than the average for a Consult an expert
second home, as the property will be used Go to a company that spe-
more often.”
Trustees are sometimes asked to per-
1 cilises in fractional own-
ership. While it is a rela-
form due diligence on potential owners: this tively new area, it’s growing.
means that co-owners know that each is up-
standing. Normally, the property ends up be- Know what you want
ing held in trust for the various owners: a Take time to discuss ex-
“You qualified administrator will be required to
set up the paperwork there, too.
2 actly what you expect of
them.
need The ideal number of co-owners, accord-
Cover yourself
someone
ing to Jerry, is four, but that pushes up en-
try costs, something most developers don’t Make sure they have pro-
to look want to do in an uncertain economic envi-
ronment.
3 fessional indemnity in-
surance (any qualified
after the “Say you have a lovely house in Barbados trustee should automatically
relation- worth $1 million,” he says.“But if four people
owned it, it would still cost them $250,000 or
have this.)
ship” more. So at the moment, many are sold with
shares of 12 - but that will change.”
Know what to expect
The developer will nor-
Jerry Cobb
Chief executive,
Fractional
Ownership
4 mally cover the cost of le-
gal work, but you will
VIRGINIA BLACKBURN have annual costs.
Consultancy
info.uk@mediaplanet.com
 AN ADVERTISING INSERT BY MEDIAPLANET JUNE 2010 · 7

2
STEP

UNDERSTAND
THE PROTOCOL

SUMMER BREEZE
Fractional can offer a new
lease of life, if you have the
right advice.
PHOTO: ALBERTO SIMONETTI

www.colf.org
0845 120 7502

21 June – 9 July
The City's annual celebration of the arts

Mon 28 June 7.30pm
Merchant Taylors’ Hall,
EC2
Orlando Consort
with Kuljit Bhamra tabla,
Jonathan Mayer sitar,
Shahid Khan voice
Mantra
Musical conversations across the
Indian Ocean (London première)
£10, £18
Tues 29 June 8pm
St Paul’s Cathedral,
EC4
Haydn The Creation
Orchestra of the Age of
Enlightenment
BBC National Chorus of Wales
Thierry Fischer conductor
£5, £10, £15, £25, £30
Tues 29 June 8pm
Bart’s Hospital EC1
Grand Union Orchestra
Tony Haynes director
Rhythm of Tides
(Por Mares Do
Imaginário)
Tony Haynes music,
Manuel Alegre, Luis Camões,
David Bradford lyrics
£15 (unreserved)
Weds 30 June 6pm
St Bartholomew-the-
Great, EC1
Gulbenkian Choir
Jorge Matta conductor
A programme of Brazilian
sacred polyphony of the
18th & 19th centuries and Festival Sponsor
Creole vilancicos of
17th century Africa.
£15 (unreserved)
8 · JUNE 2010
INSPIRATION
3
STEP
KNOW
WHAT’S HOT
How to achieve the
perfect hole in one...
O
Question: Why are
fractional properties good
value for golf lovers?
O
Answer: Because they can
provide access to the best
resorts in some of the most
beautiful countries in the world.
HOW WE MADE IT
One of the most popular reasons
for entering into fractional owner-
ship is to pursue a particular type
of sport,and nowhere does this hold
more true than with golf. Charlotte
Rose Melsom currently heads up
development, marketing, advertis-
ing and branding for the Absolute
World Group,and is currently focus-
ing on two resorts, yooPhuket and
The Beach Samui, both by YOO in
Thailand. The former caters for golf
enthusiasts; the latter is more for
water sports.
“Boutique resorts like yooPhuket
are a lifestyle purchase including
amenities,” she says. “The Phuket
destintion was built because it is
surrounded by three of the best golf
courses in the world. Prices start
from £25,000 for a studio apart-
ment, and that includes a pool, gym,
spa and use of restaurants,as well as
24-hour concierge service and being
collected from the airport.”
Owners will also have use of the
golf courses, complete with choice
AN ADVERTISING INSERT BY MEDIAPLANET
of top of the range golf clubs, as well
as perks that differ by the location.
In yooPhuket that includes use of a
speedboat for one day a week,as well
FACTS
O
When buying a fractional
property, be aware that you will
probably not be paying the ex-
act cost of, say, a quarter share
of a property’s outright value.
Costs will be slightly higher, but that
is because more than the purcha-
se price is included. ”Say you have
a £400,000 property, that is being
sold in quarter shares,” says Jerry
Cobb. ”Each quarter will typically
cost £125,000, bringing the total to
£500,000. However, that extra mo-
ney will be used to provide a furnitu-
re package and legal advice.”
“Boutique
resorts like
yooPhuket are
a lifestyle
purchase.”
Charlotte Rose Melsom
Absolute World Group
as use of a car.
A popular choice
Alan Cornelius is the Sales Direc-
O
Increasingly, lenders are pro-
viding mortgages for fractional
ownership. Banks will usually ad-
vance money on a loan to value of
60 per cent. In the above example,
that would mean they would lend
50 per cent of the £125,000, as, ta-
king into account the underlying va-
lue of the property, that constitutes
an LTV of 60 per cent. Crucially, ho-
wever, they do not place a charge
on the property: rather, the owner
gets a certificate and the bank lends
against that.
INTO THE SUNSET
Golf resorts can make a
fantastic investment, say
experts.
PHOTO: ARTCYCLONE
tor for the Firstlight K Club, one of
Europe’s largest Golfing, Fractional
resorts. “Golf has always been a rea-
son for people buying into fraction-
al ownership,” he says. “It’s a staple
now in resort real estate and even
ski resorts now routinely provide
golf in the summer.”
A worthwhile investment
For very keen golfers, it makes
sense.“There are clear financial ben-
efits to buying into a golfing resort,”
Alan says. “At the K Club, member-
ship of the club alone is €80,000 for
the initiation fee, plus annual fees,
whereas you can buy into a proper-
ty at just €160,000.” Again, there are
many benefits for golf enthusiasts:
access to two championship golf
courses, the Smurfit and the Palmer
Ryder Cup course, alongside mem-
bership of the Michael Dixon School
of Golf.
Fractional ownership also in-
cludes membership of the K Club
spa when the owner is in residence,
which may well provide a pastime
for the golfing widow. Certainly, the
popularity of the golf resort is not
going to wane anytime soon.
VIRGINIA BLACKBURN
info.uk@mediaplanet.com
DON’T MISS!
yooPhuket, Thailand
yooPhuket is a 256-room de-
velopment nestled in the
middle of three world class golf
courses. As well as the golf courses
themselves owners will have ac-
cess to facilities including a 55m
long infinity pool,high-end restau-
rant and poolside cafe, as well as a
fully equipped gym and business
centre. Check with yooPhuket for
exact prices.
The K Club, Ireland
A grand Irish county retreat
on the River Liffey in County
Kildare, south of Dublin, it offers 33
properties for fractional owner-
ship, and is home to two champi-
onship golf courses designed by Ar-
nold Palmer. It has hosted 14 Euro-
pean Opens and hosted the Ryder
Cup in 2006. Prices start at
€160,000.
Arcos Gardens, Spain
Arcos Gardens Golf Club and
Country Estate is a 440 acre
property next door to the famous
village of Arcos de la Frontera in
Cadiz. It has a championship 18-
hole course that was recently
named among Europe’s top 100. In
affiliation with The Registry Collec-
tion, 10 of the development’s Jaca-
randa units are for sale, with a one-
eighth fract ion starting at
€199,000.
The Ritz-Carlton, Florida
The 285-acre Ritz-Carlton Golf
Club & Spa at Jupiter, Florida
provides members with 35 days of
luxury vacation living. It features
an Audubon-certified Jack Nicklaus
Signature Golf Course,a 68,000 sq ft
clubhouse,a spa,resort-style swim-
ming pool and a Ritz Kids program.
 H OT E L | C H A M PI O N S H I P G O L F | D AY S PA | LU X U RY R E S I D E N C E S

FRACTIONAL OWNERSHIP AT ARCOS GARDENS

It makes sense...

Show houses open | Prices from ½199,900 | Golf membership for two people included | Discovery packages available
Fractional Ownership at Arcos Gardens simply makes good sense. After all, why pay 100% for a property that you only use for a few weeks
a year? With our Fractional Ownership program the purchase price is shared with others. You become a fully titled owner of a luxury villa
overlooking one of Europe’s most beautiful golf courses for a fraction of the cost.
Start to make sense of life - welcome to Arcos Gardens, Cádiz, Spain

To receive a copy of our free guide to Fractional

Ownership at Arcos Gardens, contact us for
Tel: + 34 956 701 694
more information or visit our website: www.arcosgardens.com/fractional

Phuket, Thailand Seychelles Tuscany, Italy

Australia / China / Croatia / France / Indonesia / Ibiza / Italy / Japan / Korea / Laos / Majorca / Maldives / Mauritius / Mexico / Morocco
Portugal / Seychelles / South Africa / Sri Lanka / Spain / Switzerland / Thailand / Turkey / UAE / United Kingdom

Why settle for one vacation home when you can have a whole collection? Banyan Tree Private Collection,
the first asset-backed Destination Club from Asia offering perpetual membership, gives members access to
exquisite villas around the world, while avoiding the burdens of owning a second home. From Seychelles,
to Phuket and Tuscany, the ever growing Collection is all yours to enjoy, year after year, forever.

To find out more, please contact us +44 207 841 2759 or sales-london@btprivatecollection.com www.btprivatecollection.com
10 · JUNE 2010
PANEL OF EXPERTS
Question 1:
Where, in your opinion, is the
best place on earth for Frac-
tional Properties or Destina-
tion Clubs?
Question 2:
What is the biggest benefit to
purchasing a Fractional Prop-
erty or Destination Club?
Question 3:
Where is the next big desti-
nation going to be?
AN ADVERTISING INSERT BY MEDIAPLANET
Nick Turner
Vice President of
Development Europe at
RCI Wyndham
Somewhere that has many years’
history of attracting people over genera-
tions as a tourist slot, such as the south west
of England, Provence and the Cote d’Azur
and Tuscany. High end destinations such as
Monaco, Majorca and Madeira continue to
appeal, as do year round destinations inclu-
ding vibrant cities like London, Paris, Rome
and New York. In all these cases, it is difficult
to access full ownership of a second home at
entry level, and in many there is a shortage
of properties and very high prices.
Financially, the entry level is very low
in comparison to whole ownership. Annu-
al costs are shared with others, so ongoing
costs are lower. People often forget that it is
not just a case of buying a second home: they
have to manage the upkeep as well, which
can be stratospherically expensive, especi-
ally in very high end destinations. Fractio-
nal ownership also gives owners access to
very luxurious living at much lower costs
than they would otherwise incur. It’s a very
smart way to own a second home.
Financially, the entry level is very low
in comparison to whole ownership. Annu-
al costs are shared with others, so ongoing
costs are lower. People often forget that it is
not just a case of buying a second home: they
have to manage the upkeep as well, which
can be stratospherically expensive, especi-
ally in very high end destinations. Fractio-
nal ownership also gives owners access to
very luxurious living at much lower costs
than they would otherwise incur. It’s a very
smart way to own a second home.
Christian Jensen-Brob
Vice-President of Marriott
Vacation Club International
London has all the dynamics of a big
city which people will go to for business or
leisure, and it is a destination people will go
to, whatever the time of the year. Hawaii is
also seasonally well balanced and as such a
year-round destination, and U.S. mountain
regions remain popular. Eventually, per-
haps, Paris and Barcelona, but currently the
price per square footage of property is not
high enough to make it worth while for de-
velopers. The two elements to look out for in
attractive destinations are high hotel rates
and high real estate rates.
It is a smart way to purchase what is
needed for your lifestyle in a location that
would otherwise be exorbitantly priced.
There are also many other considerations,
including the fact that owners may well be
serviced by a high class hotel, but over time
it is cheaper, like for like, than a hotel room.
Then there is the fact that if you are not go-
ing to use your property one year, you can
put it into the developer’s rental pro-
gramme, thus maximising the ren-
tal fee you receive and making a re-
Get expert
advice!
Somewhere urban. Moscow,
Shanghai and Hong Kong are all see-
ing above average cost increases and all
have the perfect blend of business and leisu-
re, which attracts buyers who want one or
the other – or both. Also, in all those cases,
they are all attractive destinations all year
round, which is a very important considera-
tion. The Maldives is right for seasonality re-
asons – again, it is attractive at every time of
the year - and there is a vast demand for lux-
ury at a certain price point.
Marina Kleiman
Managing Director of
Banyan Tree Private
Collection
There is a two-fold answer to the abo-
ve question. In terms of destinations for our
members to use, the world is not enough! In
our perspective, having lovely beach desti-
nations a short haul away from the main ci-
ties has proven successful. Resorts located in
Phuket, Bali and Bintan Island are frequent-
ly visited by our members, where they have
beautiful scenery and are easily accessible to
people flying in from abroad. From the pro-
motion and marketing perspective Asia and
specifically China look the most promising
to acquire new members.
Having the access to multi-million dol-
lar residences at a fraction of the price is a
great advantage. On top of that, the flexibi-
lity of destinations and choosing when you
want to travel is very enticing for fractio-
nal owners. In our case, we also have the fa-
mous award-winning hotel and the service
it provides behind us - Banyan Tree Hotels
and Resorts is famous for high levels of ser-
vice, privacy and idyllic locations, all of
which are very attractive for mem-
bers.
China is high on the list and
looks to continue to be so as the
economy is growing fast and people
have more money to spend. More and mo-
re affluent guests are Chinese and they tra-
vel within their domestic borders – which
are vast - and which means they need places
to stay on a regular basis that are way from
their first home. They have purchasing po-
wer and they love luxurious private and ex-
clusive club memberships, with all the high
levels of service that that can provide.
<G6C9EG>M
 This view could be yours
There are now a select few exclusive apartments available for purchase
through Fractional Ownership with De Vere and we are offering 10% off the
usual purchase price of £54,950. This means prices now start from £49,455
for 4 weeks with your first years’ management fee’s all paid for. This home
from home is then entirely yours to use for the weeks you select.

Fractional Expo in London Your exclusive D7> visit

For the first time ever De Vere will be attending
the Fractional Expo in London on 13th-15th
September. Come along to find out more about
our luxury apartments.
Join us for one night and two days’ blissful relaxation,
including a round of golf or spa treatment, at a special
rate of just £169 per room. To make a reservation today,
call 0844 980 0490

Fractional Ownership

Terms & conditions apply. See website for details.

CITYA.M. 28 JUNE 2010
Halliwells to face administration AstraZeneca to scale up
▲
LEGAL
BY EMMA SADOWSKI
HALLIWELLS, the first legal outfit to
fall victim to the recession and face
administration, was close to securing
a deal last night with a rival firm in a
bid to transfer some of its business.
Late last week, the Manchester
based firm filed for court permission
to appoint an administrator after tak-
ing a severe hit from escalating debts,
and falling income and profit levels.
It is understood that Halliwells is in
Eredene wins
£200m port
build contract
▲
SHIPPING
BY STEVE DINNEEN
AIM-listed Eredene Capital yesterday
announced it has won a £200m con-
tract to build and operate a vast con-
tainer terminal in southern India.
It clinched the lucrative contract as
part of a consortium including
Spanish port operators Grup Marítim
TCB, international construction firm
Obrascón Huarte Lain, and India’s
Lanco Infratech.
Eredene has a 22 per cent stake in
the consortium. Its equity commit-
ment will be up to £23m, spread over
two years.
Company sources say the commit-
ment will initially be funded
through existing cash reserves and
then through the raising of addition-
al capital.
Government to close up to 75pc of its Private evictions rose 23
websites and slash budgets for rest per cent during recession
▲
POLITICS
BY STEVE DINNEEN
THREE quarters of government web-
sites will face the chop in a plan to
slash the cost to the taxpayer.
The remainder of the existing 820
government-funded sites will also see
their budgets chopped by up to 50 per
cent under tough new rules outlined
by Tory Francis Maude.
discussion with Hill Dickinson to
transfer a large portion of its business
in Manchester.
Halliwells, which will be the largest
commercial firm to face administra-
tion, has suffered from two years of
partner walkouts, redundancies and
a sharp fall in profits.
The firm, which has entered into a
moratorium to protect clients and
other stakeholders, attributed high
property costs and the current eco-
nomic climate as the main contribu-
tors to the fall in profits, but said that
Alastair King, founder and chief
executive of Eredene, said: “This is a
major milestone for Eredene. The
Ennore Container Terminal is a world
class project, with an excellent grow-
ing hinterland and good existing
transport connectivity.
“This project builds on our expert-
ise in ports and port infrastructure
and on our commitment to the
dynamic Indian economy.
“We look forward to working with
our partners and contributing solidly
to the designing, constructing,
financing and operating of the new
Ennore container terminal.”
The Ennore Port in the Indian State
of Tamil Nadu is one of the 13 major
ports in India. Work on the new ter-
minal is scheduled to take 33 months
and it is expected to be operational by
the end of 2013.
The government will explore
which of the sites can be consolidated
and how resources can be split
between sites.
A Central Office of Information
report flagged up several sites that
have proved to be remarkably cost
ineffective, including
uktradeinvest.gov.uk, which cost a
staggering £11.78 per visit, although
the figure was disputed by UK Trade
its underlying business remains
strong.
The news is a blow to Halliwells
after the firm completed a £20m refi-
nancing earlier this year, which was
thought to have put it in a stronger
position for another three years.
BDO is expected to be appointed as
administrator, with partner Dermot
Power thought to be ready to take up
the lead role.
Halliwells and BDO did not return
calls, while Hill Dickinson declined to
comment.
NAT ROTHSCHILD MINING FOR MONEY
NEW mining investment firm Vallar has unveiled plans to list on the London Stock
Exchange and raise £600m to take advantage of acquisition opportunities in the sector.
The firm, led by finance and mining veterans Nathaniel Rothschild (pictured) and James
Campbell, plans to start with one major acquisition and eventually build up a mid-tier
mining house.
and Industry.
Maude blamed the Labour govern-
ment for miring the public with far
too many unnecessary and expensive
“vanity sites”.
New digital consultant Martha
Lane Fox is advising the coalition on
how it can slash fat from the govern-
ment network of websites. But Labour
warned the move could end up cost-
ing the government even more.
South African operations
▲
PHARMACEUTICALS
THE UK’s second-largest drugmaker,
AstraZeneca, has revealed it is scaling
up its up its operations in South
Africa.
Chief executive officer David
Brennan told Bloomberg news that
sales are growing faster there than in
more established markets.
At the Fortune Global Forum in
Picture: GETTY
▲
PROPERTY
PRIVATE landlords filed 23 per cent
more repossession claims against ten-
ants during the credit crunch, say fig-
ures out today.
Legal claims to evict tenants
increased from around 17,000 in 2004
to over 21,000 in 2008, according to
legal publisher Sweet & Maxwell.
However, social landlords were less
News 17
Cape Town, he said AstraZeneca had
increased investment in marketing,
selling and clinical research capabili-
ties in South Africa.
The London-based drugmaker
needs new sources of revenue to off-
set potential competition to seven
drugs by 2014, including three of its
bestsellers, which are Nexium for
ulcers, the antipsychotic Seroquel
and Crestor for cholesterol.
NEWS | IN BRIEF
iPad revolution hits boardroom
City-based insurance firm Torus says it
has become the first company in the UK
to hold paperless board meetings follow-
ing a trial of Apple’s iPad. Directors of
this $1bn (£663m) insurance company
used iPads to review documents during
the board sessions instead of the usual
print-outs. Bosses say prior to using
iPads, the firm was printing 1,600 pages
a meeting and couriering the material to
directors based in Bermuda, Jersey and
London. It says the savings in printing
and courier charges mean the new
devices have paid for themselves after
just one meeting of the full board.
Reliance sells mobile mast arm
Reliance Communications has sold its
mobile mast arm in one of the biggest
mergers seen in India. The deal marks
the Indian billionaire Anil Ambani’s
emergence from a family feud with his
elder brother Mukesh. Anil Ambani’s
mast business, Reliance Infratel, will be
merged into GTL Infrastructure, India’s
largest independent mobile tower opera-
tor. Mukesh Ambani’s group, Reliance
Industries, held a right of first refusal
over any sale, under an agreement bro-
kered when the brothers divided their
late father’s business empire between
them in 2005. The companies did not
disclose the terms of the “transforma-
tional deal” that they have approved in
principle but said the combined tower
business would be worth more than
$11bn (£7.3bn).
likely to repossess properties, with
the number of claims between 2004
and 2008 declining by 23.5 per cent.
Social landlords are bound by rules,
introduced in 2006, saying they must
help tenants stay in their homes.
Michael Donnellan, partner at
Trowers & Hamlins, said: “Private
landlords have come under financial
strain themselves and are likely to
move much faster to replace tenants.”
NIGEL BOARDMAN IS READY.ARE YOU?
Nigel Boardman, Partner of Slaughter and May

Nigel Boardman is ready to judge entries to the inaugural CITY A.M. Awards –
the new financial business awards from the UK’s leading, free, business daily.
And, like CITY A.M. itself, all entries are free to companies, teams and
individuals working in the financial business. Entry is online and there are 15
company awards recognising corporate excellence and 6 awards that celebrate
the individual or team stars of the financial community. Start thinking about
your entries and nominations now.
The deadline for entries is 22 July 2010
For full details and helpful contact points please visit the Awards website:
www.CityAMAwards.com
For information on becoming a sponsor of the City A.M. Awards
contact Harry Owen: 020 7015 1241/ harry.owen@cityam.com
And save this date for your diary: Thursday 28 October 2010
at Grange St Paul's Hotel, London EC4 for the Awards Dinner.

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CITYA.M. 28 JUNE 2010 News 19

Beltane to
Prime house buy its first
prices upbeat property
after election

▲
PROPERTY
BY MARION DAKERS
BELTANE Asset Management has
bought Pellipar House in Cloak Lane
for an undisclosed sum.
PROPERTY price growth, with the average prop- The investment and asset manage-
▲

BY MARION DAKERS
THE election has helped stir the
prime property market and sparked a
rise in demand and prices, according
to research out today.
Prices in the top 10 per cent of the
housing market rose 1.1 per cent in
June, contributing to an annual
growth of 4.1 per cent – more than
double the average house price rise of
two per cent.
Researchers put this down to the
steps taken by the government to cut
the deficit. “The introduction of the
Lib-Con government has acted as a
tonic for the prime property market,”
said Andrew Smith, research director
at primelocation.com.
“Despite concerns that the emer-
gency Budget may have clouded the
horizon, the property market did not
fare as badly as was feared.”
London was the site of the bulk of
erty price in the top quarter of the
market growing by 1.5 per cent to
£1.1m last month.
Kensington & Chelsea is still the
most expensive area to buy a house,
with the top quarter of properties ris-
ing by 10 per cent last year to an aver-
age price of £2.68m.
This compares to a 1.5 per cent
jump in Hackney, the cheapest bor-
ough for prime real estate, where the
average top quarter property now
costs around £616,000.
Conversely, sellers in East London
rushed to join the market (17.5 per
cent more stock this month) in an
attempt to cash in on anticipated
price rises following the relaunch of
the East London Overground line.
The research also suggested that
the incoming rise in the stamp duty
threshold might push plum proper-
ties onto the market sooner than sell-
ers had hoped.
ment company acquired the proper-
ty near Cannon Street in an
off-market transaction from ING. It is
the first purchase for the firm, which
was set up by Johathan Chenery and
Duncan Roe earlier this year.
The building has 29,700 sq feet of
office space spread across eight
floors. Beltane plans to refurbish the
upper four floors, which are current-
ly vacant, and all common areas.
Former City agents Chenery and
Roe set up the firm to target assets in
the UK and Europe, with a focus on
the City of London.
Cushman & Wakefield acted on
behalf of Beltane during the sale,
while ING represented itself.
The sale is one of several prime
City locations to enter the market in
recent months, including the Square
Mile’s tallest office block Tower 42, as
investors attempt to cash in on rising
Prime real estate is bucking the national trend of sluggish growth rents.

CITY MOVES | WHO’S SWITCHING JOBS Edited by Marion Dakers

Simmons & Simmons
The law firm has hired Jonathan Marsh as a
partner in its non-contentious financial services
regulatory practice. Marsh joins the firm from
Berwin Leighton Paisner, where he was a part-
ner specialising in financial services from 2006.
He has also worked at Hunton & Williams,
Hammonds, Sempra Metals and Linklaters in
the last decade. He brings the total number of
lawyers in the Simmon & Simmons internation-
al regulatory practice to 30.
BNP Paribas joins from Barclays, where he was
The banking group has appointed European head of credit research. Prior
Robert Adie to the newly created role to this he led the European credit strat-
of global head of credit research and egy team at Lehman Brothers. He also
strategy. Adie will start at BNP in spent six years at Salomon Brothers as
August, and will be based in London. He head of European emerging markets.
Adam & Company
The Scottish private bank has hired
Andy Nicol for the new position of head
of business development. Nicol was a
professional rugby player until 2003,
playing for Bath and the Scottish
national team were he was captain dur-
ing seven international games.
Following his retirement from the sport
he has worked as a rugby commentator
for the BBC and STV, before joining
RBS as a business development manag-
er in 2006. His took up his most recent
role as area manager of private clients
at RBS in 2009.
Mercer
The financial and recruitment consul-
tancy has appointed Le Roy van Zyl as a
senior consultant. Van Zyl will be based
in London, and will advise pension fund
trustees and corporates on pension risk
management and asset strategy. He
moves from HR consultants Tower
Watsons, where he was a senior corpo-
rate investment consultant. He has also
held investment-related roles at
Alexander Forbes, Towers Perrin and
the Netherlands branch of Mercer.
AIM Advisory Group
Philip Secrett has been appointed as
chairman to the group, which advises
the London Stock Exchange on matters
affecting the operation of AIM. Secrett
is the international director of capital
markets at Grant Thornton, and previ-
ously worked on secondment at the
London Stock Exchange in the equity
markets group.
State Street
The financial services firm has promot-
ed Nicholas Bonn to the head of its
securities finance business. Bonn, cur-
rently executive vice president, has
worked at the firm for 18 years. He will
be responsible for trading desks in
London, Boston, Hong Kong, Sydney,
Tokyo and Toronto. His most recent role
was global head of sales and client
development for the global markets
arm of the company. State Street has
also hired Doug Stern and Yvonne
Wong to its enhanced custody business,
which advises on long/short and lever-
aged strategies.

To appear in CITYMOVES please email your career updates and pictures to citymoves@cityam.com

THE WORLD CUP

AT BOISDALE OF
BISHOPSGATE
Enjoy the World Cup in style with
a 72” screen & air-conditioning in
the Champagne & Oyster Bar
BOISDALE OF BISHOPSGATE SWEDELAND COURT,
202 BISHOPSGATE,
EC2M 4NR 020 7283 1763

INFO@BOISDALE-CITY.CO.UK
WWW.BOISDALE.CO.UK
 20 News CITYA.M. 28 JUNE 2010

France tightens screws BEST OF THE BROKERS

ANALYSIS l Marks & Spencer
p
MARKS & SPENCER
UBS maintains a “buy” recommendation

on tax breaks once more

380

370 340.00 for Marks & Spencer and said that it fore-
25 Jun casts first quarter like-for-like growth of
360
three per cent in general merchandise and
350
1.5 per cent in food. UBS said the consen-
340
sus may be a little higher and that there
“We proposed €5bn a few weeks ago 330
WORLD ECONOMY back on an array of tax breaks – the may be an Easter impact as last year’s first
▲

BY HARRY BANKS
A CRACKDOWN on tax breaks will
have to be intensified to enable the
French government to meet its 2011
deficit target, budget minister
Francois Baroin said yesterday, under-
scoring the struggle it faces in shoring
up its finances.
Speaking on radio, Baroin said his
ministry might need to bring in
€10bn (£8.2bn) next year by cutting
second time in just two days that the for next year and I think we’ll have to 320 quarter saw a 0.7 per cent benefit.
government has had to increase this be closer to €10bn... so that we can 29 Mar 20 Apr 11 May 1 Jun 21 Jun
figure. meet our goal, which is unavoidable,
The economy ministry originally of lowering our deficit from eight per ANALYSIS l Axa
€
AXA
said it wanted to raise €2bn from this cent (of GDP) to six per cent,” he said. 17 Axa is selling a part of its UK business to
measure in 2011, then raised the fig- The government estimates that tax Resolution for a total consideration of
ure to €5bn. breaks cost the French treasury some 16 13.13
25 Jun €3.3bn, of which €2.7bn is in cash and
On Friday Prime Minister Francois €75bn a year and it has already said it 15
Fillon said it could climb to €8.5bn, will continue to attack this mass of €500m in Resolution senior deferred con-
14
“depending on the situation”. But loopholes, often intended to encour- sideration notes. Goldman Sachs has reiter-
13
Baroin said even €8.5bn might not be age investment and employment, in ated a “sell” rating for Axa and said that it
enough. 2012 and 2013. 12
lowers its three-month return on enterprise
11 value price target to €16.
29 Mar 20 Apr 10 May 28 May 17 Jun

SUMMER TICKET OFFER ANALYSIS l Tesco

450
440
430
p

398.25
TESCO
Citigroup has issued a “sell” rating for
Tesco and said that £58.4bn sales were
expected but the outturn was just £56.9bn
25 Jun
420 and that expectations were off 20 per cent
2 SEATS FOR THE PRICE OF 1 410
400
with regard to the last seven weeks. Citi
said that there are some wrinkles in Tesco’s
390 sales growth data that deserve to be
380 explored.
29 Mar 20 Apr 11 May 1 Jun 21 Jun

To appear in Best of the Brokers email your research to notes@cityam.com

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CITYA.M. 28 JUNE 2010
City’s competitive edge blunted by bank levy
MONDAY COMMENT
STUART FRASER
T
HERE can be no doubt that Asia
holds the key to the future
growth of the global financial
services industry, providing a
whole host of new opportunities for
the international business communi-
ty, including many UK firms.
And it is in all of our interests to
help these rapidly emerging markets
MA pays $1bn for Albaugh
▲
INDUSTRIALS
BY HARRY BANKS
ISRAEL’S MA Industries is to buy US
firm Albaugh for about $1bn (£664m)
to bolster its presence in the Americas
and solidify its position as the world’s
biggest generic agrochemical maker.
MA, also known as Makhteshim
Agan, said yesterday it signed a mem-
orandum of understanding to pay
succeed and grow. That is why I have
spent the past week in China to foster
greater cooperation with the Chinese
authorities and offer support for
Chinese institutions which are looking
to do more business in London. I sit on
the Shanghai International Financial
Advisory Council, which aims to gath-
er international expertise to help
Shanghai fulfil its ambition of becom-
ing an international financial and
maritime centre by 2020.
Over the years, the City has benefit-
ted massively from decisions taken in
other jurisdictions as they have sought
to restrict the size and scale of their
financial services industries.
To allow this to happen to us is
unthinkable. Which is why George
Osborne’s Budget announcement,
introducing a bank levy in the UK, pro-
$340m in cash, $455m in seven-year
promissory notes and 59m of its own
shares, equivalent to a 12 per cent
stake and worth $211m.
The acquisition of Albaugh, a pri-
vate company based in Iowa, is
expected to close in the fourth quar-
ter and to be accretive to earnings per
share on a non-GAAP basis within a
year of closing.
Albaugh’s financial debt will not
vides cause for concern.
Of course I understand the
Chancellor’s reasoning – he wants the
banking industry to repay its debt to
the UK taxpayer and to be seen to be
contributing to the economy – but he
could be walking a political tightrope.
The £2bn the Chancellor hopes to
raise may not be as huge a sum as
some initially feared but it remains a
significant imposition upon an indus-
try that is vital to future UK and world
economic growth. After all, our finan-
cial services sector contributed an esti-
mated £61.4bn to the UK last year.
Unless we address the uncertainty
surrounding our tax and regulatory
regimes and change the global percep-
tion that an “anti-banker” sentiment
continues to prevail in the UK, the
City’s ability to compete with other
exceed $280m, MA said in a state-
ment. The deal is subject to the com-
pletion of due diligence and
regulatory approvals in the United
States, Europe and other countries.
Albaugh is a leading generic crop
protection company in the United
States, Mexico, Argentina and Brazil.
MA is a subsidiary of Koor Industries,
which is part of the IDB Holding
group. It had sales of $2.2bn in 2009.
financial centres around the world
will surely be diminished.
Whilst it is true that we have not
acted alone – France and Germany
joined the UK in committing to intro-
duce a levy on banks’ balance sheets
and the US has also produced specific
proposals of its own – it is worth bear-
ing in mind that many countries such
as Canada, China, India and Brazil
have not. They did not have to bail out
their banks, and see no reason why
they should punish their financial
services industry and diminish their
international competitiveness.
These differences apart, the City
needs to retain a degree of regulatory
equivalence with all of our major com-
petitors. The G20 summit meeting in
Toronto is ideal for such a debate.
Of course it is unrealistic to expect
Hertz raises €400m in loan notes
through Netherlands subsidiary
▲
SERVICES
HERTZ, the car hire company, has
placed €400m (£328m) in senior
secured notes through its Dutch sub-
sidiary to refinance its outstanding
international fleet debt facilities.
The group said the 8.5 per cent
notes, which are due in 2015, would
News 21
unanimity within G20 on specific reg-
ulatory issues, particularly with
regards to a bank tax.
But even with such diverging opin-
ions, it is essential that the major juris-
dictions work in partnership to agree
on some common standards by which
the global marketplace can operate.
Regulatory arbitrage is a dangerous
thing, especially when it is the City
that is at a competitive disadvantage!
EU and US interests, whilst not identi-
cal, are certainly compatible. We must
use the City’s unique position as
Europe’s financial capital and one of
only two truly global financial centres
to encourage greater dialogue and
understanding between our European
and transatlantic partners.
Stuart Fraser is the Policy Chairman at
the City of London Corporation.
be sold to institutional investors. The
notes are rated “B1” by Moody’s and
“B” by Standard & Poor’s.
Hertz, the largest worldwide air-
port and general use car rental brand,
operates from more than 8,200 loca-
tions in 146 countries around the
globe. Its shares closed 8c up at $9.98
on Friday.
 Investment
22 CITYA.M. 28 JUNE 2010

| Spread Betting

Take a view on
the UK with
the FTSE 250
But liquidity concerns mean that picking
individual stocks is crucial, says Jessica Mead

I
NVESTORS in the FTSE 100 have
endured a difficult couple of months
as heavyweight BP’s tumbling share
price dragged the rest of the index
down with it. But while the blue-chip
index has lost almost 13 per cent since the
middle of April, the FTSE 250 has fared a
little better. It too has suffered a dip but
has only shed 9.5 per cent.
However, the FTSE 100’s well-trumpeted
saving grace is its international exposure,
which should insulate it from the relative-
ly weak UK economic situation.
The FTSE 250, on the other hand, is com-
posed of businesses that are more focused
on the UK and therefore may suffer from
the sluggish domestic demand forecast for
the years ahead. David Jones, chief market
strategist at IG Index, says that austerity
policies may well hinder progress and add
to the negativity.
While the FTSE 250 closed on Friday at
9,630.22, Jones says that the big support
level that spread betters should be watch-
ing out for is the 8,950-9,000 area. This
marks the index’s lows that were hit in
February and which were unsuccessfully
tested in May. “There’s a fair bit of stability
at these levels but if the index slipped
much below there, then it would start to
look quite negative. But it is difficult to say
definitively because so much of the mar-
ket sentiment has changed in recent
months,” he adds.
The good news for spread betters is that
the daily moves on the FTSE 250 tend to be
greater in terms of points than the FTSE
100 – Thursday, for example, saw a 125
range on the blue-chip compared to a 150
point range on the FTSE 250. However, the
bad news is that low liquidity in the FTSE
250 index and futures market has deterred
many spread betting companies from
offering the market to clients.
Those that do tend to impose a wide
spread to compensate for the lack of liquid- ANALYSIS l The performance of the FTSE 250 and the FTSE 100 year-to-date
ity and the difficulties they face in hedg-
% change since Jan 10
ing large volumes – IG Index’s spread is 44
points. Consequently, anybody who does 15%
want to take a punt on moves in the over- FTSE 250
all index needs to have a medium-term tar- 10% FTSE 100
get if they want the trade to be a profitable
one. It’s certainly not an index for day 5%
traders. But Jones says that rather than
trading the FTSE 250 index, most clients
0%
prefer to focus on individual stocks, which
are much more liquid and consequently
have much tighter spreads. -5%
But one FTSE 250 stock that has been
tipped to do quite well in the coming 2010 Feb Mar Apr May Jun
months is outsourcing firm Xchanging,
which is currently trading at just above
200p. Not only should it do well from gov-
ernment contracts, it announced last week
IN FOCUS | KESA ELECTRICALS
that it has entered into an enterprise part-
nership agreement with SIA-SSB, a FTSE 250 firm Kesa Electricals has had results last week gave the company a BNP Paribas and Bank of America
European financial and payment systems
services provider. Seymour Pierce analyst a difficult time since last summer when boost with Comet’s profits up and over- Merrill Lynch in the wake of these
Kevin Lapwood said: “This is good news its share price began its dip below the all pre-tax profits for the group up 18 results being announced, its P/E ratio is
since it is exactly the sort of large outsourc- FTSE All-Share average. Although the per cent to £81.9m. The dividend yield now at 15.2 times. Forecasts for its
ing deal that the market had almost given
up on seeing from Xchanging.” He reiterat- group’s foreign wing, Darty France, also increased 18 per cent to 5.9 per future hinge primarily on one’s view of
ed his Buy rating with a target of 250p. brings in most of the revenues, it is the cent. Total sales were up 3.4 per cent to the European retail sector as a whole:
Britvic, the soft drinks maker which poor performance of Comet in the UK £5.124bn – a slower growth than some while Darty France could continue to
derives most of its revenues from Britain,
is another firm that is likely to do well; its
that has been giving investors pause – had expected but, alongside significant perform well, the environment for
products are proving successful in the age perhaps unsurprising given sluggish cost reductions, nonetheless delivering Comet is only going to get tougher
of austerity. By picking FTSE 250 stocks, consumer appetite for big white goods profits ahead of company guidance. after the Budget’s 2.5 per cent VAT rise.
you can take a view on their prospects as and electronics purchases. But Kesa’s With broadly positive analyses from Juliet Samuel
well as specifically target the UK economy.

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CITYA.M. 28 JUNE 2010
THE WORLD CUP TIPSTER
WHITTLING DOWN THE
TEAMS TO THE LAST EIGHT
AFTER what was a tense and ultimately (for
England) depressing weekend, the remaining
quarter final places will be decided over the
course of today and tomorrow. Some teams,
such as Holland and Brazil, which have sailed
through the group stage, appear to be on
track to progress - but as the shock exits of
Italy and France have shown, anything can
happen at the World Cup.
Holland continue their bid for World Cup
glory at 3pm today against Slovakia. The
Dutch won all three group games without
appearing to even break a sweat. This could
change today against Slovakia, who were
SPREAD BET
GURU
JOSHUA
RAYMOND
MARKET
STRATEGIST
josh@cityindex.com
Q.
Dear Josh, can you tell me how
the markets reacted to the
emergency Budget presented by
George Osborne last week?
A.
The banks and the retailers all per-
formed strongly in reaction to the
budget while the pound also
received a boost. We saw banking stocks
such as RBS, Lloyds Banking Group and
Barclays rally on the back of the bank levy
charge not being as severe as had previous-
ly been speculated.
The retailers also got a boost from the
delay to the VAT hike until next January. Of
Britvic is a FTSE 250
stock with good THE TIPSTER
prospects
Picture: PA
BUDGET APPROVAL MEANT IT WAS A
STERLING WEEK FOR THE POUND
I
T WAS good news for the pound at the
end of last week. Sterling-dollar briefly
rose above $1.50 last week – its highest
point since mid-May – after the markets
signalled overall approval of the Budget pack-
age. But with the Federal Reserve reiterating
its pledge to keep interest rates low for an
extended period, the pound could rally further
still. Spreadex quotes a September contract
of $1.4940 - $1.4945.
Sterling also saw its best level against the
euro last week but can it hold up against the
single currency at these levels? Cantor Index
Holland take on
Slovakia this afternoon
Picture: ACTION
IMAGES
excellent against Italy. Punters should look to
buy total match goals at 2.5 with Sporting
Index. However, the Slovakians are unlikely to
be an obstacle to the Oranje progressing to
the quarter finals, so an alternative market is
to buy Dutch Supremacy at 1.3 with
Spreadex.
If you want to take a bet on when the first
goal is scored, then remember that of the nine
goals that these two teams have scored so
far, seven have been in the second half. With
extrabet offering a spread on the time of the
first match goal of 38-41 minutes, this could
well be worth buying.
course, a VAT hike could play a role in
reducing consumer appetite as people see
their disposable incomes fall.
But the fact that there is a six-month
period until it comes into effect gives con-
sumers time to digest the increase.
Retailers could also see an upsurge in buy-
ing activity as shoppers try and make the
most of the lower VAT rate before the hike
takes place on 4 January 2011.
Sterling rallied last week, climbing to its
best levels against the euro and the dollar
since the middle of May. This was because
the new coalition government is tackling
the deficit head-on, which is giving
investors increased confidence. Initial com-
ments from ratings agency Fitch also
helped to remove some of the fears of an
impending UK rating cut and gave sterling
an additional boost. The ongoing clean-up
process is weighing on
BP’s shares
Q.
Dear Josh, several stocks are Picture: REUTERS
proving to be quite volatile cur-
rently, and BP in particular. What
methods can I use to manage my risk in
these market conditions?
A.
You are certainly right that BP’s
shares are incredibly volatile at the
moment given that the Gulf Oil
spill continues to have a terrible effect on
THE DELIGHTS
OF ZANZIBAR
SEE OUR TRAVEL
PAGES ON P25-26
offers a euro-sterling September spread of
£0.8244-£0.8250. The German stock index,
the Dax 30, failed to break through to new
highs last week, forming a double top that
could signify further declines. Capital
Spreads quotes 6,080-6,081 for the Dax.
We will also get some companies updating
the market this week. FTSE 100 big hitter
Standard Chartered, a bank which has
proved highly resilient to the financial crisis,
gives a trading update today. The news that
capital requirements for banks may be soft-
ened helped boost the stock towards 1,750p
Tonight is the battle of the South American
teams and the Brazilian and Chilean strikers
have been on fire. Chile scored in all three of
their group games while Brazil have Fabiano
and Robinho in good form and will welcome
back Kaka. Buy total goals with extrabet at 2.7.
Both Paraguay and Japan will be in a confi-
dent mood ahead of their clash tomorrow
afternoon. After strong group stages, both
teams will fell that they have a realistic chance
of progressing to the quarter-finals. Neither
team has hit the back of the net particularly
frequently so the best option would be to sell
total match goals. Sporting Index is offering a
the company and its share price. BP closed
down 6.35 per cent Friday at 304.6p. While
unlimited losses are possible with spread
betting, there are thankfully various risk
management tools on offer, which should
help you prevent volatile markets from
escalating your potential losses.
One essential risk management tool is a
guaranteed stop loss. If you are worried
about volatile markets and the effect that
they have on your account balance, then
you should consider placing a guaranteed
stop loss on your position. This will mean
23
on Friday. But 1,800p should prove strong
resistance once again to the upside, while
there is strong support at 1,600p to the
downside. Look to play this range until a solid
break of 1,800p. Spread Co offers a spread
on Standard Chartered of 1,737.2p – 1,740.8p
Annual results from Carpetright tomor-
row should shed some light on the recovery
in the home-building and home improvement
industries. The deferral of the VAT rise should
give retailers a short-term boost. Look for
continued strength from Carpetright with a
short-term target of 800p. Spread Co offers
a spread on Carpetright of 705.5p-711p.
Shares in stock market tiddler D1 Oils
dropped by nearly 20 per cent last week
after a proposed £2.6m sale of its former
Bromborough oil refinery fell through.
Remarketing the site could cause the share
price to drop further. Spreadex has a rolling
D1 Oils spread of 6.73p-7.33p.
Jessica Mead
sell at 2.1.
The last fourth round match sees the two
Iberian countries face off. Despite Spain origi-
nally being the favourites to win the tourna-
ment, Portugal have been the best performing
team of the two - they have yet to concede a
goal. If they beat Spain, they would only have
to beat Paraguay or Japan to advance to the
semis. It's therefore worth buying Portugal on
the 100 Index (extrabet is offering 22-25),
given that the semi-finalists get 50 points, the
runner-up 75 points and the winner 100
points.
Jessica Mead
that your position will be closed out at the
level of your stop loss regardless of any
market gapping, which can be a regular
feature of volatile markets. Normal stop
losses will only close out your position at
the first market price hit after the gap.
However, do be aware that you will have
to pay a small fee for this extra insurance.
One alternative you could consider is using
options because when you buy options your
maximum downside is already limited. But
be aware that your downside is not limited
if you chose to sell an option.
 24 Markets & Investments CITYA.M. 28 JUNE 2010

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .279.90* –3.30 314.80 216.75 COLT Group . . . . . . . . . . . . . . . .131.50 –3.00 144.20 105.25 ITV . . . . . . . . . . . . . . . . . . . . . . . .53.50 –1.80 71.75 31.75 Schroders . . . . . . . . . . . . . . . . .1275.00 –4.00 1450.00 764.00
3i Infrastructure . . . . . . . . . . . . . 112.80* +0.70 115.00 89.35 Compass . . . . . . . . . . . . . . . . . .536.50 +1.00 574.50 307.75 Jardine Lloyd Thompson. . . . . . .540.00 –13.50 604.50 398.00 Schroders N/V. . . . . . . . . . . . . .1048.00 — 1185.00 643.50
A.B. Foods . . . . . . . . . . . . . . . . .986.00* –5.00 1045.00 752.00 Cookson . . . . . . . . . . . . . . . . . . .429.40 –6.00 616.00 220.00 Johnson Matthey . . . . . . . . . . .1554.00* –24.00 1814.00 1108.00 Scot. & Sthrn Energy. . . . . . . . . 1120.00 +5.00 1206.00 357.50
Aberdeen Asset Man . . . . . . . . . .132.10 –1.00 155.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1010.00 –5.00 1047.00 519.50 Kazakhmys . . . . . . . . . . . . . . . .1067.00 –43.00 1634.00 574.50 Scottish Mortgage. . . . . . . . . . . .560.00* –11.00 623.50 376.00
Admiral. . . . . . . . . . . . . . . . . . .1402.00 –3.00 1441.00 851.50 CSR . . . . . . . . . . . . . . . . . . . . . .387.40 –11.60 524.00 338.75 Kesa Electricals . . . . . . . . . . . . . 116.50 –0.50 162.00 98.45 SEGRO . . . . . . . . . . . . . . . . . . . .263.20 +3.00 403.10 250.00
Aegis . . . . . . . . . . . . . . . . . . . . . 110.60* –1.10 137.30 81.50 Daily Mail ‘A’ . . . . . . . . . . . . . . . .458.90* –11.10 539.00 267.25 .LQJÀVKHU . . . . . . . . . . . . . . . . . .220.40 –4.50 255.00 171.80
Afren . . . . . . . . . . . . . . . . . . . . . .89.00 –0.55 111.00 44.75 Dana Petroleum . . . . . . . . . . . . 1177.00 +11.00 1549.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .137.90 +0.10 174.29 114.60 Serco . . . . . . . . . . . . . . . . . . . . .620.50 — 656.50 394.30
African Barr Gold . . . . . . . . . . . .632.50 +2.50 685.00 520.50 Davis Service . . . . . . . . . . . . . . .373.00 –4.40 442.30 308.25 Lancashire Hldgs . . . . . . . . . . . .496.50 +1.50 540.00 416.70 Severn Trent . . . . . . . . . . . . . . .1251.00* +11.00 1310.00 921.00
Aggreko . . . . . . . . . . . . . . . . . .1435.00 –17.00 1496.00 492.50 De La Rue . . . . . . . . . . . . . . . . . .958.50 +1.00 1021.00 808.50 Land Securities . . . . . . . . . . . . . .581.00* –4.00 743.50 415.25 Shaftesbury . . . . . . . . . . . . . . . .368.90* +4.10 426.50 285.25
Alliance Trust . . . . . . . . . . . . . . .313.00 –2.20 352.70 260.25 Debenhams . . . . . . . . . . . . . . . . .57.50 –2.55 91.95 53.75 Legal & General . . . . . . . . . . . . . .80.80 –0.65 94.40 49.37 Shire. . . . . . . . . . . . . . . . . . . . .1416.00 +3.00 1526.00 816.00
AMEC . . . . . . . . . . . . . . . . . . . . .842.50* +2.00 891.00 603.50 Derwent London . . . . . . . . . . . .1298.00 +13.00 1490.00 844.00 Lloyds Banking Gp . . . . . . . . . . . .54.20 –2.11 75.58 40.42 SIG . . . . . . . . . . . . . . . . . . . . . . . 110.10 –1.10 146.60 86.75
Amlin . . . . . . . . . . . . . . . . . . . . .382.30 +1.00 428.50 291.00 Dexion Absolute . . . . . . . . . . . . .139.00 –0.50 148.00 112.00 Logica . . . . . . . . . . . . . . . . . . . . 111.70 –1.00 149.10 74.50 Smith & Nephew . . . . . . . . . . . . .642.50 –4.50 700.50 435.25
Anglo American . . . . . . . . . . . .2475.00 –70.00 3015.50 1557.50 Diageo . . . . . . . . . . . . . . . . . . .1070.00 –4.00 1176.00 857.00 London Stk Exchange . . . . . . . . .602.00 +2.50 949.50 588.00 Smiths . . . . . . . . . . . . . . . . . . . 1100.00 –2.00 1186.00 677.50
Antofagasta . . . . . . . . . . . . . . . .827.00 –28.50 1100.00 561.00 Dimension Data . . . . . . . . . . . . . .99.00 — 105.00 54.75 Lonmin . . . . . . . . . . . . . . . . . . .1523.00 –58.00 2198.00 950.00 SOCO Intl . . . . . . . . . . . . . . . . . .404.80 –5.90 444.60 380.60
Aquarius Platinum . . . . . . . . . . .360.10 –6.90 490.00 172.75 Domino’s Pizza . . . . . . . . . . . . . .375.60 –2.20 387.80 200.00 Man . . . . . . . . . . . . . . . . . . . . . .246.60 –7.40 373.60 199.60 Spectris . . . . . . . . . . . . . . . . . . .778.50* –5.50 928.00 505.00
ARM Holdings . . . . . . . . . . . . . . .281.10 –3.60 362.40 111.75 Drax . . . . . . . . . . . . . . . . . . . . . .381.30 +5.60 496.50 321.50 Marks & Spencer. . . . . . . . . . . . .340.00* –7.00 412.70 293.75 Spirax-Sarco Eng . . . . . . . . . . .1364.00 –3.00 1591.00 802.00
Arriva . . . . . . . . . . . . . . . . . . . . .765.00 +0.50 782.50 378.50 DSG Intl . . . . . . . . . . . . . . . . . . . .26.18 –0.97 39.75 19.25 Meggitt . . . . . . . . . . . . . . . . . . . .310.00 +0.20 331.00 151.75 Spirent Comms . . . . . . . . . . . . . .107.60 –1.40 127.80 54.50
Ashmore . . . . . . . . . . . . . . . . . . .251.00 –2.00 311.20 183.25 Dunelm . . . . . . . . . . . . . . . . . . . .327.80 –10.50 438.40 202.00 Melrose . . . . . . . . . . . . . . . . . . .221.70 –3.80 251.50 90.00
Astrazeneca . . . . . . . . . . . . . . .2966.00 –31.00 3136.00 2631.50 Easyjet . . . . . . . . . . . . . . . . . . . .405.10 –12.20 499.90 260.00 Mercantile IT . . . . . . . . . . . . . . . .894.00 –6.50 1002.00 726.00 Sports Direct Intl . . . . . . . . . . . . .106.50 –1.60 134.00 72.50
Atkins(Ws) . . . . . . . . . . . . . . . . .680.00 –7.00 747.00 532.50 Edinburgh Inv Tst . . . . . . . . . . . .384.70* –2.40 412.40 298.50 Michael Page Intl. . . . . . . . . . . . .393.20 –5.10 461.50 218.50 SSL Intl . . . . . . . . . . . . . . . . . . . .809.50 –8.00 893.50 506.00
Autonomy Corp . . . . . . . . . . . .1873.00 –4.00 2012.00 1121.00 Electrocomponents . . . . . . . . . . .222.50* +1.00 245.00 134.25 Micro Focus . . . . . . . . . . . . . . . .436.30 –23.70 550.00 300.90 St James’s Place . . . . . . . . . . . . .218.60 –1.30 296.90 172.25
Aveva . . . . . . . . . . . . . . . . . . . . 1168.00* +7.00 1237.00 666.50 EnQuest . . . . . . . . . . . . . . . . . . .104.50 +1.30 112.70 87.35 Millen & Copthorne . . . . . . . . . . .423.30 –18.70 496.30 227.75 Stagecoach. . . . . . . . . . . . . . . . .194.30 +3.90 204.90 122.75
Aviva . . . . . . . . . . . . . . . . . . . . .325.10 –7.10 474.00 274.75 Essar Energy . . . . . . . . . . . . . . .450.70 –12.20 475.00 358.50 Misys . . . . . . . . . . . . . . . . . . . . .243.60 — 281.70 165.25 Standard Chartered . . . . . . . . . .1742.00 +31.50 1847.00 1115.00
Babcock International . . . . . . . . .587.50* +5.00 660.50 448.50 Eurasian Nat Res . . . . . . . . . . . .930.50 –36.50 1276.00 632.00 Mitchells & Butlers . . . . . . . . . . .291.90 –2.90 343.90 228.30 Standard Life . . . . . . . . . . . . . . .179.00 –2.30 237.00 172.60
BAE Systems . . . . . . . . . . . . . . .319.00 +1.20 389.90 294.20 Euromoney Inst Inv . . . . . . . . . . .599.50* –12.50 630.00 197.25 MITIE . . . . . . . . . . . . . . . . . . . . . 211.30* –8.00 281.70 198.70 SuperGrp . . . . . . . . . . . . . . . . . .725.00 –8.00 736.00 499.00
Balfour Beatty . . . . . . . . . . . . . . .239.90* –4.60 328.85 238.50 Experian . . . . . . . . . . . . . . . . . . .610.50* –4.00 664.50 434.00 Mondi . . . . . . . . . . . . . . . . . . . . .392.50 –13.50 488.00 187.50 TalkTalk . . . . . . . . . . . . . . . . . . .123.50 –0.50 147.10 106.60
Barclays . . . . . . . . . . . . . . . . . . .281.20 –5.80 394.25 255.00 F&C Comm Prop . . . . . . . . . . . . . .93.00* — 96.80 73.50 Monks Inv Tst . . . . . . . . . . . . . . .288.00 –1.30 321.20 222.00 Talvivaara Mining . . . . . . . . . . . .375.00 –0.40 501.50 319.00
Barratt Development . . . . . . . . . .104.50 –3.70 193.31 93.70 Ferrexpo . . . . . . . . . . . . . . . . . . .271.60 –2.10 396.20 112.00 Morrison Wm . . . . . . . . . . . . . . .271.70 –0.80 306.30 234.25 Tate & Lyle . . . . . . . . . . . . . . . . .453.60* –5.00 509.00 284.75
BBA Aviation . . . . . . . . . . . . . . .191.20 +0.70 220.00 105.00 FirstGroup . . . . . . . . . . . . . . . . .387.60 –1.20 448.80 322.75 Murray Intl Tst . . . . . . . . . . . . . . .821.00 –6.00 893.50 593.50 Taylor Wimpey . . . . . . . . . . . . . . .30.46 –1.25 54.90 27.40
Beazley. . . . . . . . . . . . . . . . . . . . 119.30 –1.70 124.80 94.50 Foreign & Col Inv Tst. . . . . . . . . .266.20 –1.70 297.20 210.25 National Express. . . . . . . . . . . . .229.40 –4.40 256.80 135.86 Telecity . . . . . . . . . . . . . . . . . . . .399.60 –2.50 455.00 289.25
Bellway. . . . . . . . . . . . . . . . . . . .652.50* –13.50 927.50 591.50 Fresnillo . . . . . . . . . . . . . . . . . .1003.00 –23.00 1115.00 438.00 National Grid . . . . . . . . . . . . . . .499.00* –3.00 607.65 469.37
Berkeley . . . . . . . . . . . . . . . . . . .801.00 +1.00 989.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .280.80 –1.10 285.70 199.40 Next . . . . . . . . . . . . . . . . . . . . . 2118.00* –40.00 2360.00 1438.00 Templeton Emrg Mkts . . . . . . . . .538.00* –4.50 598.00 349.50
BG . . . . . . . . . . . . . . . . . . . . . .1050.00 –13.00 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .453.00 –2.00 484.00 370.00 Northumbrian Water . . . . . . . . . .308.50 +0.50 312.00 219.90 Tesco . . . . . . . . . . . . . . . . . . . . .398.65* –1.35 454.90 347.40
BHP Billiton . . . . . . . . . . . . . . .1867.00 –53.00 2346.00 1274.50 GKN . . . . . . . . . . . . . . . . . . . . . .121.10 –1.90 155.00 71.75 Old Mutual . . . . . . . . . . . . . . . . .107.40* –1.70 127.20 74.32 Thomas Cook . . . . . . . . . . . . . . .188.00 –4.40 277.20 187.90
BlackRock Mining . . . . . . . . . . . .560.50 –1.50 654.50 346.00 GlaxoSmithKline . . . . . . . . . . . . 1145.00* –22.50 1347.00 1058.00 Partygaming . . . . . . . . . . . . . . . .251.00 — 339.70 213.30 Tomkins . . . . . . . . . . . . . . . . . . .236.70 –0.70 261.10 141.00
Booker . . . . . . . . . . . . . . . . . . . . .41.00* –0.25 49.50 33.00 Great Portland Estates . . . . . . . .291.10 +1.90 332.10 203.75 Pearson . . . . . . . . . . . . . . . . . . .920.50 –6.50 1069.00 574.00 Travis Perkins . . . . . . . . . . . . . . .785.50 –20.50 915.00 491.00
BP . . . . . . . . . . . . . . . . . . . . . . .304.60 –20.65 658.20 296.00 Greene King . . . . . . . . . . . . . . . .399.00 –7.30 504.00 367.00 Pennon . . . . . . . . . . . . . . . . . . . .554.50 +1.50 567.00 434.40 TUI Travel . . . . . . . . . . . . . . . . . .217.60 –4.30 313.90 213.80
Brit Insurance . . . . . . . . . . . . . . .895.00* –26.00 970.00 709.00 Halfords . . . . . . . . . . . . . . . . . . .525.00 –21.00 562.50 303.50 Persimmon . . . . . . . . . . . . . . . . .380.50 –7.00 534.50 343.00 Tullett Prebon . . . . . . . . . . . . . . .320.60 –6.90 436.20 261.20
British Airways . . . . . . . . . . . . . .207.20 –0.70 255.80 117.30 Halma . . . . . . . . . . . . . . . . . . . . .276.60 +2.00 281.80 184.00 Petrofac . . . . . . . . . . . . . . . . . .1220.00 –3.00 1294.00 600.00 Tullow Oil . . . . . . . . . . . . . . . . .1067.00 –20.00 1375.00 834.50
British Amer. Tob . . . . . . . . . . .2129.00 +11.00 2335.50 1664.00 Hammerson . . . . . . . . . . . . . . . .352.80 –1.70 460.30 277.00 Petropavlovsk . . . . . . . . . . . . . .1234.00 –40.00 1370.00 516.50 UK Commercial Prop. . . . . . . . . . .78.65 +0.10 84.90 62.25
British Empire Tst . . . . . . . . . . . .418.90 –2.90 467.90 338.50 Hargreaves Lansdown . . . . . . . .338.50 –3.80 387.00 197.25 Premier Farnell . . . . . . . . . . . . . .230.00 –1.10 252.60 121.25 Ultra Electronics . . . . . . . . . . . .1576.00 –3.00 1678.00 1076.00
British Land . . . . . . . . . . . . . . . .440.20 +2.60 532.00 353.00 Hays . . . . . . . . . . . . . . . . . . . . . . .95.75 — 119.00 80.00 Premier Oil . . . . . . . . . . . . . . . . 1182.00 +11.00 1431.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1812.00 –17.00 2024.00 1419.00
Britvic. . . . . . . . . . . . . . . . . . . . .476.10* –5.10 497.70 269.75 Henderson . . . . . . . . . . . . . . . . .123.50 –0.70 157.80 86.25 Provident Financial . . . . . . . . . . .851.00 –9.00 986.00 763.00 United Utilities . . . . . . . . . . . . . .528.00* +3.00 575.00 429.00
Brown(N.) . . . . . . . . . . . . . . . . . .266.20 –7.80 284.30 204.25 Heritage Oil. . . . . . . . . . . . . . . . .410.00 –2.00 587.00 409.20 Prudential . . . . . . . . . . . . . . . . . .530.00 –16.00 665.00 350.25
BSkyB . . . . . . . . . . . . . . . . . . . .701.00 –1.00 732.00 435.75 Hikma Pharma . . . . . . . . . . . . . .706.00 +4.50 730.00 430.00 PZ Cussons . . . . . . . . . . . . . . . .326.10 +2.80 332.30 188.50 Utd Business Media . . . . . . . . . .505.00 –8.00 579.50 364.75
BT . . . . . . . . . . . . . . . . . . . . . . .130.70 –1.30 151.00 99.50 Hiscox . . . . . . . . . . . . . . . . . . . .341.10 –0.10 369.30 279.50 Qinetiq . . . . . . . . . . . . . . . . . . . . 117.00 +0.50 179.10 113.90 Vedanta Resources . . . . . . . . . .2248.00 –74.00 2967.00 1264.00
Bunzl . . . . . . . . . . . . . . . . . . . . .689.50* –12.00 784.50 492.75 Hochschild Mining . . . . . . . . . . . 311.70 +1.40 370.60 220.00 Randgold Resources. . . . . . . . .6480.00 +80.00 6590.00 3351.00 Victrex . . . . . . . . . . . . . . . . . . . 1126.00* –5.00 1193.00 534.00
Burberry . . . . . . . . . . . . . . . . . . .784.50 –5.50 815.50 390.00 Home Retail . . . . . . . . . . . . . . . .225.00* –6.70 336.50 224.80 Reckitt Benckiser . . . . . . . . . . .3126.00 +72.00 3667.00 2686.00 Vodafone . . . . . . . . . . . . . . . . . .144.05* +1.15 153.80 111.90
Cable & Wire Comms . . . . . . . . . .59.80* +0.30 150.00 53.00 Homeserve . . . . . . . . . . . . . . . .2039.00 +1.00 2190.00 1336.00 Reed Elsevier . . . . . . . . . . . . . . .500.00 –1.00 548.00 403.75 VT . . . . . . . . . . . . . . . . . . . . . . .770.00 +6.50 777.50 416.00
Cable & Wire Wwide . . . . . . . . . . .90.70* –1.30 94.80 68.60 HSBC Hldgs . . . . . . . . . . . . . . . .641.80* +4.70 766.80 487.00 Regus . . . . . . . . . . . . . . . . . . . . . .75.00 –2.15 125.50 61.00 Weir . . . . . . . . . . . . . . . . . . . . .1081.00 –6.00 1183.00 437.50
Cairn Energy. . . . . . . . . . . . . . . .422.40 –0.80 448.60 306.80 Hunting . . . . . . . . . . . . . . . . . . .450.10 +2.50 659.50 377.00 Rentokil Initial . . . . . . . . . . . . . . . 115.40 –2.10 140.20 82.25 WH Smith . . . . . . . . . . . . . . . . . .418.10 –9.30 551.00 407.70
Caledonia Invs . . . . . . . . . . . . .1573.00 –11.00 1759.00 1495.00 ICAP . . . . . . . . . . . . . . . . . . . . . .414.70 +3.30 478.30 291.70 Resolution . . . . . . . . . . . . . . . . . .60.30† — 99.15 58.45 Whitbread . . . . . . . . . . . . . . . . .1482.00* –3.00 1645.00 778.50
Capita . . . . . . . . . . . . . . . . . . . . .776.00 +7.00 829.50 643.50 IG . . . . . . . . . . . . . . . . . . . . . . . .429.60 –0.70 458.20 261.25 Rexam . . . . . . . . . . . . . . . . . . . .315.10 –2.90 331.20 222.50 William Hill . . . . . . . . . . . . . . . . .179.90 –0.70 217.80 160.50
Capital & Counties . . . . . . . . . . .105.30 +1.20 125.40 99.60 Imagination Tech Gp . . . . . . . . . .273.00 –11.10 311.60 130.00 Rightmove . . . . . . . . . . . . . . . . .661.50 –8.50 729.00 334.00 Witan Inv Tst . . . . . . . . . . . . . . . .428.00 –1.20 487.00 329.50
Capital Shopping Centres . . . . . .321.50 –0.10 580.00 300.20 IMI . . . . . . . . . . . . . . . . . . . . . . . 711.50 +1.50 756.50 275.25 Rio Tinto . . . . . . . . . . . . . . . . . .3189.00 –93.00 4104.00 1822.00 Wolseley . . . . . . . . . . . . . . . . . .1434.00 –25.00 1742.00 1026.00
Carillion . . . . . . . . . . . . . . . . . . .319.30 –4.90 361.90 244.00 Imperial Tobacco. . . . . . . . . . . .1890.00 –1.00 2159.00 1547.00 RIT Capital Partners . . . . . . . . . 1162.00 +10.00 1200.00 877.00
Carnival . . . . . . . . . . . . . . . . . .2302.00 –22.00 2937.00 1574.00 Inchcape. . . . . . . . . . . . . . . . . . .267.50 –6.90 347.00 253.20 Rolls Royce . . . . . . . . . . . . . . . .582.00* –3.00 631.50 342.50 Wood Group (John). . . . . . . . . . .321.90 +1.90 411.70 231.25
Catlin . . . . . . . . . . . . . . . . . . . . .353.80 –3.30 380.50 284.75 Informa . . . . . . . . . . . . . . . . . . . .370.90 –7.60 439.40 216.00 Rotork . . . . . . . . . . . . . . . . . . .1305.00* –11.00 1482.00 779.50 WPP . . . . . . . . . . . . . . . . . . . . . .664.50 –5.00 744.00 380.50
Centamin Egypt . . . . . . . . . . . . .164.00 –0.70 174.75 77.86 Inmarsat . . . . . . . . . . . . . . . . . . .748.00 +2.50 831.00 491.00 Royal Bank Of Scot . . . . . . . . . . . .44.46 –0.73 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . . .957.00 –28.30 1344.50 555.10
Centrica . . . . . . . . . . . . . . . . . . .305.70 –1.60 320.00 212.50 Intercontl Hotels . . . . . . . . . . . . 1138.00 — 1244.00 584.50 Royal Dutch Shell A . . . . . . . . .1752.50 –23.00 2068.50 1431.00 Yell Group. . . . . . . . . . . . . . . . . . .27.05 –0.96 86.00 21.00
Charter Intl . . . . . . . . . . . . . . . . .673.50 –12.50 855.50 406.50 Intermediate Capital . . . . . . . . . .257.00 +0.70 332.00 170.25 Royal Dutch Shell B . . . . . . . . .1674.50 –19.50 1997.50 1437.00 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .3010.00 +10.00 3711.00 1993.00 Intertek . . . . . . . . . . . . . . . . . . .1480.00 –21.00 1576.00 1024.00 RSA Insurance . . . . . . . . . . . . . .120.50 +0.20 142.00 113.10
Chloride Group . . . . . . . . . . . . . .348.00 +0.50 350.00 129.00 Intl Power . . . . . . . . . . . . . . . . . .306.60* –2.10 354.00 230.00 SABMiller . . . . . . . . . . . . . . . . .1961.50 +1.50 2090.00 1210.00 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .707.50 –2.50 806.50 623.00 Invensys . . . . . . . . . . . . . . . . . . .263.30* –4.40 350.30 212.25 Sage . . . . . . . . . . . . . . . . . . . . . .237.50 –2.00 260.50 167.20
Cobham . . . . . . . . . . . . . . . . . . .222.60* –1.90 278.60 169.30 Investec . . . . . . . . . . . . . . . . . . .469.00 –7.00 565.00 321.50 Sainsbury(J) . . . . . . . . . . . . . . . .328.20* –3.40 373.00 307.00 www.interactivedata.com

3G 13:05

Markets

SPREAD BET NOW

Cash: 20719.24 Unrealised P&L: 92.70
Margin: 560.00 Total Position: 20092.70

List One Long name... List Three

Sell Buy Change Status
UK 100 Rolling Spread
Trade
4917.0 4919.0 +45.2 >
Wall Street Rolling Spread
Trade
9599 9605 +24 >
US SP 500 Rolling Spread
Trade
1034.6 1035.2 +4.8 >
Trade
US Tech 100 Rolling Spread
1644.4
884.8 1647.4
885.2 +6.6
-15.0 >
Germany 30 Rolling Spread
Trade
5538.5 5540.5 +67.0 >
Trade
US Crude Oil Oct 09 Spread
1644.4
884.8 1647.4
885.2 +6.6
-15.0 >
GP/USD Rolling Spread
Trade
16346 16350 +61 >
5

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Banks headed higher as governments back BP

week, and which appears to be less stable company”, will probably lend ANALYSIS l DAX 6,070.60
MARTIN ON strict than many in the sector had
feared.
some support to the company’s
shares this morning.
6,400 25 Jun

THEMARKETS GFT is quoting the FTSE 100 index

to open up 26 points from Friday’s
close, at a level of 5,072. The German
TROPICAL STORM ALEX HITS FTSE
In fact our call on the FTSE index
6,200

6,000
DAX is also expected to start higher, would probably have been higher if
up 27 points at 6,097, and the French it were not for the uncertainty over
CAC is forecast to open up 22 points whether tropical storm Alex is 5,800
at 3,541. going to miss the Gulf of Mexico
coast; if it were to hit then an
5,600
OBAMA SAYS BP TO REMAIN STABLE expensive and damaging prolonged 9 Apr 29 Apr 20 May 10 Jun
So a positive start is on the cards delay in efforts to contain the spill
then. The US House could vote on would be likely. ANALYSIS l FTSE
the bill as soon as tomorrow, and •Martin Slaney is director of global 6,000
the Senate shortly thereafter. dealing operations at GFT.
MARTIN SLANEY The spreadbet and CFD day trad-
er’s market-of-the-moment BP will be
5,800 5,046.47
25 Jun
5,600
under focus yet again – after drop-

E
UROPEAN markets are set to ping another 6 per cent on Friday 5,400
jump higher on the open this which in itself was responsible for
morning, with bank stocks taking over 50 points off the FTSE, 5,200
most likely to rally following on the weekend’s news from the meet- 5,000
from the agreement in the US over ing between Barack Obama and
the details of the financial reform David Cameron, reportedly agreeing 4,800
9 Apr 29 Apr 20 May 10 Jun
bill which was hammered out last that BP should “remain a strong and
 Lifestyle
Where safari
meets heavenly
white beaches
Tanzania has it all, from super-luxury tents
to tropical resorts, says Judith Baker
T
ANZANIA
combines the
thrill of safari
through the vast plains
of the Serengeti with relaxation on the
tropical beaches of the exotic Spice island
of Zanzibar.
Serengeti
We draw the curtains of our room in
Kempinski’s Bilila Lodge to find a wel-
come committee of seven elephants, oblig-
ingly gathered at a watering hole just
steps away from our balcony. Our first
encounter with the wildlife of the
Serengeti National Park, an area the size
of Scotland and home to some of the
world’s most impressive wildlife, is just a
taster of things to come.
Safari simply means “journey” – so for
MUST DO
A balloon ride over the Serengeti is the best way
to get a bird’s eye view of the Migration.
Fly over the Ngorongoro Crater – one of the
wonders of the world. Make sure to grab the
seat next to the pilot on the short 10-seater
flight from Lake Manyara to Seronera for a
spectacular sight.
Have a Champagne breakfast in the bush as the
sun rises. The sounds and smells of the local
| Travel
pasty
Europeans
like us, some
structure and the
guidance of an expert is vital.
Which is why we went game driving with
Steven, a guide with an uncanny knack of
knowing exactly where the baboons
would cross our path or where a pride of
lions were playing with their cubs. But
this isn’t Disney’s Lion King – moments
later we passed a lioness that had just
caught and killed a young wildebeest and
was in the process of tearing its throat
out.
Back to that welcome committee of ele-
phants and the place that allowed us to
enjoy them. Bilila Lodge is a new luxury
lodge in the Seronera area, generally
thought to be the best year-round game
wildlife waking up give a whole new meaning to
Bucks fizz.
Sample an African barbeque in the Boma, a
round room built in the style of a Maasai house.
The Maasai people have grazed their cattle on
the vast grassy plains here for millennia. These
tall and handsome people with their red blan-
kets and huge spears act as guards around
the hotel.
PUZZLED?
YOU WILL BE
SEE TV & GAMES
PAGE 27
3 5
Above: giraffes on the
Serengeti. Left: the Jetty Bar
at the Zamani Kempinksi and
right: the Bilila Kempiski.
viewing area of the Serengeti. The term
“luxury safari” has always struck me as a
contradiction, because there’s no fragrant
way to get up close and personal with a
smelly hippo or a rather ugly wildebeest.
But lodges such as Bilila bring style to the
experience. Touches such as a personal tel-
escope from your own private viewing
deck, good food and wine and – best of all
– state of the art AC systems which ensure
bug-free nights, make this a safari far
removed from camp fires and canvas. The
on-site spa offers a welcome jet-lag mas-
sage after the long trip, or an après-game
drive spot of relaxation before enjoying a
Bilila Bellini overlooking the savannah.
THE BEAUTIFUL GAME
The Serengeti is one of the best places on
earth to see lions – there are over 3,000 of
them here. The short grass makes viewing
easy. Elephants, giraffe and zebras are all
to be seen in great numbers, as are the
25
5
1
7 6
9 8
3
4
2
cheetah and African wild dog. Animals
such as the gazelle, impala, hartebeest,
topi and waterbuck also frequent the
plains. Hippos can be spotted bathing in
their muddy pool and it’s a sight quite
unlike any other. They may look innocent,
even tranquil, as they wallow in their
muck, but if you annoy them, beware
their enormous mouths and deadly bite.
It’s not unheard of for angry hippos to
devour unwitting intruders. Likewise ele-
phants: annoy them with loud chatter and
they have been known to trample or even
to bring down treehouses.
Over a million wildebeest and about
200,000 zebra flow from the Northern
hills to the Southern plains for the short
rains every October and November, then
swirl West and North after the long rains
in April, May and June. The sight of them
is staggering.
CONTINUED ON PAGE 26
 26 Lifestyle | Travel CITYA.M. 28 JUNE 2010

Advertisement feature CONTINUED FROM PAGE 25

Charley Boorman’s
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House of Wonders and the Old Dispensary thriving coral reefs, beautiful tropical
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The major inhabited islands are Unguja
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CITYA.M. 28 JUNE 2010 Lifestyle | TV& Games 27

BBC1 BBC2 ITV1 CHANNEL4 FIVE

TERRESTRIAL
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The Graham Norton Show
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2010 FIFA World Cup;
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Westminster Abbey: A Time 8pm CHOICE Police
Team Special: The unveiling of Interceptors; Five News at 9
the Cosmati pavement in 9pm Extraordinary People:
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9pm The Untold 10pm Crimes That
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10pm Big Brother 11pm FILM Tequila Sunrise: THE GRAHAM NORTON SHOW
11.10pm Music on 4: Thriller, starring Mel BBC1, 10.35PM
Being N-Dubz Gibson, Kurt Russell and The host talks to Jason Manford about
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Chatty Man 1.10am SuperCasino 4.05am chats to singer-songwriter Katy Perry,
12.30am Big Brother: Live Wildlife SOS 4.30am Wildlife SOS and meets Anna Kournikova.
4.30am-6.15am FILM The 4.55am County Secrets 5.10am
Common Touch: British drama, The New Tomorrow 5.35am-6am
starring Geoffrey Hibbert. 1941. Michaela’s Wild Challenge

SKY SPORTS 1 PGA Tour Golf 9pm Wonderful Formula 4.30am-5am 2.55am Glastonbury 2010 2.30am How It’s Made 3am
SATELLITE & CABLE

5.30pm Live Twenty20 Cup
Cricket 9pm World Sport
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Soccer AM: The Best Bits
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SKY SPORTS 2
6.30pm NASCAR 7.30pm Live
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Boots ‘n’ All 12am Fishing Gurus
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Fishing Gurus
SKY SPORTS 3
7pm European Tour Golf 8pm
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World 12.30am This Week In
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Live WWE: Late Night – Raw
4.15am-5.15am Show Jumping
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7pm Eurosport Flash 7.05pm
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ESPN
7pm Superleague Formula 8pm
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BC 10pm Marked 11pm How
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People 2am Vimy Ridge: Heaven I Was Pregnant 2am Diagnosis
to Hell 3.30am Once We Had a X 3am Jon and Kate Plus 8
Rocket 4am-5am Perfect Child 4am Bringing Home Baby 5am-
6am Mum’s the Word
Mummies
DISCOVERY SKY1
8pm How Do They Do It? 7.30pm Pineapple Dance
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Iceman: The Lewis Gordon Pugh Toughest Jail 10pm Law & POLICE INTERCEPTORS
Story 10pm Mystery Order 11pm Bones 1am The FIVE, 8PM
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I’m Alive 12am Deadliest Catch Road Wars 3.30am 24 4.20am suspect goes missing at a burger bar,
1am Bear Grylls: Born Survivor Tru Calling 5.10am-6am Sell and the team is given advanced training
2am How Do They Do It? Me the Answer in the use of a tactical battering ram.

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

SUDOKU KAKURO
35 15 13 11 12 21 18  
11 20
27  
18 16
Place the numbers from 1 to 9 in each empty cell so that each 31 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 33 24
28
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 9 14 6
   
above or to the left of it. 15 4
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7
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same digit twice in a block.
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30 28
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column, but it must be in a
16
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1 Pair of spectacles on 2 Native of Muscat, eg (5)
WORDWHEEL L T
a long handle (9)
8 Throw with great
effort (5)
3 Small compact-bodied
almost completely
aquatic bird (5)
Using only the letters in the Wordwheel, you have 9 Perfect type (5) 4 Stretching out (5)
   ten minutes to find as many words as possible,
S E 10 Bread roll (3) 5 Belonging to those
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters A 11 Unlawful act (5)
13 Wounded by piercing
people (5)
6 Final chess move (9)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
P E with a sharp object (5)
15 Signified (5)
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who served as Prime
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
B A 18 Strong dark ale
made from malt
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 Sport
28 CITYA.M. 28 JUNE 2010

Results
WORLD CUP ROUND OF 16
Uruguay..........................(1) 2 South Korea.....................(0) 1
Suarez 8, 80 C Lee 68
Att: 30,597
USA...................................(0) 1 Ghana ....................................(1) 2
Donovan 62 (pen) Boateng 5
England limp to series win
Att: 34,976 Gyan 93
AET: Score after 90 mins 1-1.
▲

CRICKET
Yesterday
Argentina.....................(2) 3 Mexico.................................(0) 1 BY JON COUCH
Tevez 25, 52 Hernandez 71
Higuain 33 Att: 84,377 RELIEVED Andrew Strauss admitted it
Germany .......................(2) 4 England ................................(1) 1 was “horrendous” watching England
Klose 20, Podolski 32 Upson 37 limp to a victory at Old Trafford yes-
Muller 67, 70 Att: 40,510
terday, but then lauded the efforts of
CRICKET his bowlers in helping his side open
THIRD ONE DAY INTERNATIONAL up an unassailable 3-0 series lead.
England v Australia
OLD TRAFFORD: England beat Australia by one wicket Spinner Graeme Swann took 4-37
AUSTRALIA and James Anderson 3-22 as Australia
S Watson c Strauss b Swann ..................................................................61 slumped from 130-2 to 212 all out.
T Paine lbw Yardy ........................................................................................44 Strauss, himself, led the reply with
R Ponting st Kieswetter b Swann ............................................................3
M Clarke c Sub b Swann............................................................................33 a fine 87, but England suffered a sim-
C White c Strauss b Swann ......................................................................12 ilar collapse to the tourists and even-
M Hussey b Collingwood ............................................................................21 tually crawled over the line with one
S Smith lbw Anderson................................................................................20 wicket and five balls to spare.
J Hopes b Anderson........................................................................................7
R Harris c Strauss b Broad ..........................................................................1 “It was pretty horrendous,” Strauss
D Bollinger b Anderson..................................................................................3 admitted. “We looked like we were
S Tait not out ......................................................................................................1 cruising when Morgs [Eoin Morgan]
w6 ................................................................................................................6
Total (46 overs) ................................................................................212
and I were going well, but we have a
Fall: 75, 93, 130, 154, 169, 183, 202, 207, 211. couple of speed bumps in the first two
Bowling: Anderson 8-1-22-3, Bresnan 6-0-43-0, Broad 6-1-30- one-dayers and today was a major one.
1, Wright 1-0-14-0, Yardy 10-0-45-1, Swann 10-1-37-4, But the captain added: “We dragged
Collingwood 5-0-21-1.
ENGLAND
it back well. The spinners were out-
A Strauss c Paine b Harris ........................................................................87 standing, the guys reacted well to the
C Kieswetter b Tait..........................................................................................0 conditions we were encountering, we
K Pietersen c & b Tait..................................................................................25 put the batsmen under pressure and England celebrate as another Australian wicket falls. Picture: ACTION IMAGES
P Collingwood b Bollinger ........................................................................40
E Morgan c Ponting b Smith ....................................................................27 that is leading to wickets.
M Yardy c Paine b Tait ..................................................................................8 “Any series win against Australia is defeat to the Australians last summer. leading the charge after losing fellow order to set up a thrilling finish.
L Wright c Hopes b Smith............................................................................0 a big achievement and you have to dig Shane Watson top-scored for the opener Craig Kieswetter first ball to But with others falling around
T Bresnan not out ..........................................................................................14 pretty deep. Personally it’s a great feel- tourists with 61, but once he and fel- the returning Shaun Tait. him, Tim Bresnan (14no) held his
G Swann b Bollinger........................................................................................1
S Broad b Bollinger ........................................................................................0 ing to beat them but we are conscious low opener Tim Paine (44) were dis- Kevin Pietersen (25), Paul nerve in the final pairing with
J Anderson not out ........................................................................................0 there are areas we can improve in.” missed, the bowlers took charge with Collingwood (40) and Eoin Morgan Anderson to see England home.
B1 lb3 w6 nb2 ......................................................................................12 For England, this was an eighth Swann accounting for the top order (27) all made contributions, but Tait The penultimate match of the five-
Total (9 wkts., 49.1 overs) ..........................................................214 straight limited-overs victory and acts and Anderson the tail. (3-28) and Doug Bollinger (3-20) got game series takes place at The Oval
Fall: 1, 52, 128, 185, 189, 190, 197, 203, 203.
Bowling: Tait 10-1-28-3, Bollinger 10-3-20-3, Harris 10-0-59-1, as sweet revenge for their 6-1 one-day Strauss was in imperious form, the better of the middle-to-lower on Wednesday.
Hopes 6.1-0-44-0, Clarke 4-0-25-0, Smith 9-0-34-2.
Umpires: A Dar & I Gould.

Murray: I still need to raise my game

FRIENDS PROVIDENT T20—North Division: (Trent Bridge);
Nottinghamshire 149-6 (D J Hussey 56) v Warwickshire
117-10. Nottinghamshire (2pts) beat Warwickshire by 32
runs. (New Road); Derbyshire 147-7 (W J Durston 77) v
Worcestershire 148-2 (P A Jaques 70no). Worcestershire
(2pts) beat Derbyshire by 8 wickets. (Headingley Carnegie);
Leicestershire 175-4 (J W A Taylor 62no, A U Rashid 4-20)
v Yorkshire 169-8 (A W Gale 52). Leicestershire (2pts) beat
Yorkshire by 6 runs. South Division (Bristol); Gloucestershire
153-6 (H J H Marshall 52no) v Middlesex 149-7.
Gloucestershire (2pts) beat Middlesex by 4 runs. (The Rose
Bowl); Hampshire 159-8 (S M Ervine 74no) v Essex 164-1 (R
S Bopara 94no). Essex (2pts) beat Hampshire by 9 wickets.
(Hove); Kent 194-1 (R W T Key 98no, M van Jaarsveld 53no)
v Sussex 167-9. Kent (2pts) beat Sussex by 27 runs.
RUGBY UNION
INTERNATIONAL MATCHES
Argentina .....................................41
Australia.......................................22
New Zealand ..............................29
South Africa...............................55
TODAY’S DIARY
World Cup 2nd rnd
Holland v Slovakia (3pm) ........................................................................................
Brazil v Chile (7.30) ....................................................................................................
SPORTS EDITOR JON COUCH
email sport@cityam.com
France............................................13
Ireland ..........................................15
Wales ............................................10
Italy ................................................11
WIMBLEDON
2010
BY JON COUCH
ANDY MURRAY accepts he is going to
have to up his game if he is to end
Britain’s 74-year wait for a
Wimbledon champion.
The British No1 is still yet to drop a
set in this year’s tournament ahead of
this afternoon’s fourth-round clash
with big-serving American Sam
Querrey.
But the fourth seed knows there is
still room for improvement if he is to
recover from his shaky start to 2010
and land a dream first Grand Slam.
“The start has been very good and
something that I needed for the con-
fidence,” Murray said. “But I did feel I
wasn’t too far away from playing very
good tennis again.
“I just needed to put more work in,
and I did that the week before. So
that definitely helped me going into
the tournament with my belief.
“It’s obviously showed in the first
few matches. But I’m going to have to
play better next week if I want to go
all the way.”
While Murray is relatively fresh
ahead of his clash with the Queen’s
Club champion, many of his rivals –
notably Roger Federer and Rafael
Nadal – have struggled.
Federer was taken to five sets by lit- and they will next week, that is for
tle-known Alejandro Falla in the first sure,” he added.
round, while Nadal has twice been
taken the distance in his three match- ORDER OF PLAY | TODAY
es so far.
Both are also in action this after-
noon with six-time champion Federer CENTRE COURT
taking on Austrian 16th seed Jurgen
R Federer (Swi) (1) v J Melzer (Aus) (16)
Melzer on Centre Court, while world
No1 Nadal takes on Frenchman Paul- S Williams (USA) (1) v M Sharapova (Rus) (16)
Henri Mathieu on Court One. S Querrey (USA) (18) v A Murray (GB) (4)
And Murray believes form in the
COURT ONE
early rounds has little bearing on the
second week. K Clijsters (Bel) (8) v J Henin (Bel) (17)
“It’s kind of irrelevant, it’s different N Djokovic (Ser) (3) v L Hewitt (Aus) (15)
obviously if they lose the matches but
when they come through, you are J-P Mathieu (Fra) v R Nadal (Spa) (2)
always expecting them to play well,

I’ll see the job through and I SPORT | IN BRIEF

Horsey wins in Germany the crowd during his match against

won’t step down, vows Draper

GOLF: David Horsey was the only
Englishman celebrating victory over the
Germans yesterday after he came from
behind to claim the biggest win of his
career at the BMW International Open in
Munich.
The 25-year-old shot a five-under-par
▲
Daniel Brand.
In a statement, he said: “I lost my con-
trol briefly in the fifth set after another
insult from someone in the crowd. I
should never have done that but I am
human and I made a mistake.”
Sinfield thwarts Wolves

TENNIS Indeed, only Murray and British
BY JON COUCH women’s No1 Elena Baltacha are
ranked inside the world’s top 100 – a
UNDER-FIRE Lawn Tennis Association statistic which falls well blow the tar-
chief executive Roger Draper has gets set by Draper two years ago.
vowed not to walk away despite This has led to much criticism of
Britain’s worst-ever showing at Draper’s reign, but the LTA chief
Wimbledon. insists the process of nurturing talent
Andy Murray was the only one of takes time and says he is not consider-
seven British players to make it ing his position.
through to the second round, while Asked if he had ever thought about
the LTA suffered the ignominy of hav- resigning, Draper said: “No, we are in
ing no English player in the men’s this for the long-term.
singles at SW19 for the first time ever. “As a leader in sport, what you now
need is business continuity and to
continually improve what has been
happening across the sport.”
He added: “We are four years into a
10-year transformation of the sport.
The reason we made the changes a
few years ago was to stop what hap-
pened on Monday and Tuesday, and
that takes time.
“What we are now doing to get
more kids playing tennis in schools
will pay dividends. We will get suc-
cess and we have got to be ready for
that.”
closing round 67 to finish on 18-under-
par, one shot clear of fellow countryman
Ross Fisher.
Long-time leader Bradley Dredge fell
off the pace after shooting a double-
bogey at 16 and finished in a tie for third.
Hanescu is sorry in spit row
TENNIS: Victor Hanescu has apologised
after he was fined £10,000 for spitting
in the direction of fans at Wimbledon on
Friday.
The Romanian appeared to react after
he was verbally abused by a section of
RUGBY LEAGUE: Kevin Sinfield produced
a masterful display of kicking for Leeds
as Warrington missed the chance to
close the gap on leaders Wigan in the
Super League.
In a match of six tries apiece, Sinfield
proved the matchwinner by landing all of
his conversions before booting over a 45-
yard drop goal.
Elsewhere, Michael Shenton ran in a
hat-trick of tries to help Castleford to a
28-22 win over Bradford to take them to
within a point of a top-eight place.
CITYA.M. 28 JUNE 2010
No hat-trick,
but Lewis is
still on track
FORMULA 1
2010
BY JON COUCH
HE wasn’t the only Englishman to
trail a German yesterday, but Lewis
Hamilton was decidedly more cheery
than his footballing counterparts
after retaining his lead in the drivers’
championship.
Hamilton just missed out on a hat-
trick of Formula One victories, but
still kept his nose in front in the over-
all standings after finishing second
behind Sebastian Vettel at an inci-
dent-packed European Grand Prix in
Valencia.
After successive victories in Turkey
and Canada, McLaren are Hamilton
was looking to claim a first-ever hat-
trick of wins, but, despite recovering
from a drive-through penalty for over-
taking the Safety Car, could find no
way past the Red Bull ace.
Hamilton’s 18 points ensures he
stayed at the top of the standings
EUROPEAN GP | RACE STANDINGS
1. Sebastian Vettel (Red Bull) 1:40:29.571
2. Lewis Hamilton (McLaren) +00:05
3. Jenson Button (McLaren) +00.07
4. Rubens Barrichello (Williams) +00:20
5. Robert Kubica (Renault) +00:22
Gilberto warns
of complacency
WORLD CUP
2010
BY JON COUCH
FORMER Arsenal captain Gilberto
Silva is playing down his Brazilian
side’s recent dominance over Chile,
insisting tonight’s last-16 clash is a
one-off game.
The Brazilians have not lost to
their South American rivals since
the 2002 qualifiers, winning seven
straight matches and the last six by
FOOTBALL TRADER BEN CLEMINSON TAKES A LOOK AT TODAY’S
SECOND ROUND MATCHES
BRAZIL are still the tournament
favourites at 7/2 with Paddy Power,
but they were uninspiring against
Portugal and Dunga has been crit-
icised at home for the lack of flair
in the side. It may just be though
that the team are holding some-
thing back for the knockout stage.
I have been impressed with
Chile so far and they gave Spain a
good game on Friday night. But
they have a terrible record against
the Brazilians, losing the last
seven – the last six by at least a
two-goal margin.
Brazil are a best-priced 4/7 on
Betdaq to win this evening’s game
with 125 points, six clear of team-
mate Jenson Button, who finished
third. “I think it is just very, very posi-
tive to be leading the world champi-
onship,” said Hamilton, the 2008
champion.
“Both myself and Jenson we have
been working so hard all year and the
results show the effort that everyone
is putting in. It’s great getting the
results we deserve.”
Vettel led from pole to flag for a
second race win of the season, but
had to survive a first-lap coming
together with Hamilton, who had
taken Vettel’s Red Bull team-mate
Mark Webber at the first corner.
Webber slumped from second to
ninth after the poor start and his mis-
erable afternoon was compounded by
a 200mph horror smash for which he
miraculously walked away unscathed.
Hamilton served his penalty on lap
27, but still held position, and despite
pulling the German back in the latter
stages, was unable to get close
enough to challenge.
STANDINGS | DRIVERS’ CHAMPIONSHIP
1. Lewis Hamilton (McLaren) 127pts
2. Jenson Button (McLaren)
3. Sebastian Vettel (Red Bull)
4. Mark Webber (Red Bull)
5. Fernando Alonso (Ferrari)
a
margin
two-goal
or
more. But
Gilberto
believes such
statistics got
out of the
window when it comes to the knck-
out stage and says Chile should not
be taken for granted.
“Now it’s totally different,” the 33-
year-old said. “It’s a knockout round.
[Chile] has been playing well and we
will have to be extra careful.”
and I think they will do exactly
that. A correct score bet is a diffi-
cult one to weigh up, but I would-
n’t put anyone off having a small
bet on a Brazil 3-1 win at 14/1 with
William Hill. There have been 28
goals in the last six meetings
between these sides and I’d advise
spread bettors to buy goals at 2.7
with Sporting Index.
Games often become tighter
when you get to the second round
of the World Cup, but I actually
fancy both games today to be rela-
tively high scoring. Holland have
performed well so far but, similar-
ly to Brazil, haven’t really set the
Sport 29
Hamilton showers
victor Vettel after
their tussle in
Valencia.
Picture: GETTY
I’m lucky to be alive, says Webber
MARK WEBBER emerged by what happened. I’m a little
unscathed from his horror bit tender here and there but
200mph smash in Valencia yes- the car did a great job.”
terday and admitted: I’m lucky Describing the incident, he
to be alive. added: “Initially I thought
The Australian flipped his Red Heikki was letting me go. Then
Bull up into the air and landed I thought he was closing the
upside down before careering door and started to make little
into the tyre wall after running movements. I thought, ‘What is
into the back of Heikki he doing?’ And then he braked
Kovalainen’s Lotus on lap nine. 80m before I did on the previ-
“I was just having a shower ous lap.”
121 and thinking, ‘Mate, you’re Kovalainen added: “I’m very
115 lucky to be in one piece’,” happy that Mark is fine as well.
103 Webber reflected. “It was a It was an unfortunate incident
nasty incident. I was surprised that should not happen.” Webber goes airborne in Valencia. Picture: BBC
98
TODAY’S MATCHES
Holland v Slovakia
Durban, ko 3pm, BBC1
Brazil v Chile
Johannesburg, ko 7.30pm, ITV1
world alight just yet. Slovakia did
brilliantly to beat Italy, but they
showed their defensive frailties
again by conceding two late goals.
They’ve let in five goals so far in
the competition and I can see
them adding to that this after-
noon, so I’ll also be buying goals at
2.6 with Sporting Index.
POINTERS...
Brazil to beat Chile at 4/7 on Betdaq
Brazil to win 3-1 at 14/1 with William Hill
Buy total goals at 2.8 with Sporting Index
Buy total goals in Holland v Slovakia at 2.6
with Sporting Index
30 Sport | Football CITYA.M. 28 JUNE 2010

HOW THEY RATED

ENGLAND

OUR MAN IN BLOEMFONTEIN

TREVOR STEVEN
David James
Made two crucial first-half
saves but perhaps could have done
6
SHAMBLES
Capello on the brink as England crash
better with Muller’s first goal.

Glen Johnson 6 GERMANY 4

Drifted in and out of the game
and didn’t get forward enough to
give England width.
John Terry 4 WORLD CUP 2010
Had a shocker. His lack of pace
was a liability for England and had
a poor understanding with Upson.
Matthew Upson 5 Bloemfontein.
Gets an extra mark for the goal but,
like Terry, was all over the place as
Germany waltzed through them.
Ashley Cole 6 Capello will point to Frank
Started the game well, but, like
Johnson, didn’t get forward any-
where near as much as he should.
James Milner 5 on.
Looked a little lost at times and
showed a lack of pace. Quality on
the ball was below-par also.
Frank Lampard 6 from Miroslav Klose and Lukas
Unlucky not to score twice, but was
left chasing shadows as we failed
to seize control of the midfield.
Gareth Barry 5 put fire in the England bellies with
Failed in his brief to man-mark
Ozil and looked lost as Germany
showed him how to keep the ball.
Steven Gerrard 5
Showed poor quality on the ball,
just shooting from distance with
little control.
ENGLAND 1 after having a clause removed from
BY JON COUCH
FABIO CAPELLO remained defiant
last night he would not stand down
as England manager despite his
side’s World Cup humiliation in
But the Italian admitted he
would seek crisis talks with Football
Association chiefs after England’s
woeful display against the Germans
culminated in a heaviest-ever World
Cup finals’ defeat.
Lampard’s ‘goal that never was’ as
the turning point of the match
after his first-half shot cannoned off
the underside of the crossbar and
over the line, only for Uruguayan
referee Jorge Larrionda to wave play
Nevertheless, he will still be
made to carry the can for a spine-
less display, which saw the Three
Lions defence carved open on
numerous occasions by the ram-
pant Germans. First-half strikes
Podolski gave Capello’s men a
mountain to climb before Matthew
Upson handed England a lifeline
with a towering header.
The injustice of Lampard’s disal-
lowed ‘goal’, just 55 seconds later,
Lampard crashing a swerving 30-
yard free-kick against the crossbar
just after the break.
But it wasn’t to last long as
England were made to pay for fail-
ing to retain possession and
Thomas Muller’s second-half brace
compounded a miserable exit.
Capello’s position will now come
under intense scrutiny just a month
his £6m-a-year contract to allow
either party to terminate the con-
tract after the World Cup.
He will further explain his posi-
tion at a press conference this after-
noon, but, for now, the 64-year-old
was standing his ground.
“I want to speak with the chair-
man [Sir Dave Richards] and then
decide my future,” he said. “I need
to know whether the FA have confi-
dence in me or not.”
Asked if he would resign, he
replied: “Absolutely not. We have to
wait until we get back to London.”
When he meets with Sir Richards
at FA HQ, Capello will be forced to
explain a dismal World Cup cam-
paign, which saw England well
below-par in three of their four
matches with only a win against
Slovenia to show for their efforts.
But bosses at Soho Square are
unlikely to share Capello’s view that
England bowed out with a good per-
formance in Bloemfontein, insiting
they were beaten only by a moment
of controversy.
“It was one of the most important
things in the game,” Capello said.
“The goal was very important. We
could have played a different style.
We played I think well at 2-1, but
after the third goal it was a little bit
disappointing.
“We played well. Germany is a big his boss, had no excuses for the why we didn’t progress further in
team. They played a good game. We manner of the defeat. the tournament.
made some mistakes when they
played the counter-attack. The refer-
ee made bigger mistakes. Little
“At 2-1 we had a goal disallowed.
At 2-1 we were hurting them and we
were still in the game. I think it had
“As a team we’ve made a big mis-
take today and we’ve been beaten
by a good team.
things decide the result always.” an effect but we cannot use that as “They were more clinical in front
Captain Steven Gerrard also an excuse with being beaten 4-1. of goal and they made less mistakes
admitted the disallowed goal had “You go away and you have a than us and we got punished for
an effect on the result, but, unlike think about what went wrong and that today.”

Wayne Rooney 4
FA chiefs must now turn to Hodgson
An absolute shadow of his former
self as he has been all tournament.
Risked when he’s clearly not fit.
Ex-World Cup star Trevor Steven says the Fulham player to South Africa limited him
when it came to Steven Gerrard, and I
what with bias.
For me, there’s no-one better to get
boss is the man to turn around England fortunes think bringing on a non-goalscorer in
Emile Heskey for a goalscorer in
the best out of these up-and-coming
players than Roy Hodgson. Roy is
Jermain Defoe, just when we needed being linked with the vacant
Jermain Defoe 5 a goal, pretty much summed up his Liverpool job, but if that is not the

Failed to get any understanding
with Rooney or midfield runners.
Drifted out of the game.
Substitutes
J Cole (Milner, 63) 5, Heskey (Defoe, 71) 4,
Wright-Phillips (Johnson, 86) 5
Fabio Capello 3 No team has ever won the World
Poor selection, poor substitutions
and lacked any kind of a game plan.
Has been found out this World Cup.
F
ABIO CAPELLO will sit down
with FA chairman Sir Dave
Richards over the next few days
to decide how to take this
England team forward.
But, sadly, it’s going to take a lot
more than a brief discussion over tea
and biscuits as the answer is this
England team can simply not go for-
ward with Capello in charge.
Cup with a foreign manager and
England showed just why in
Bloemfontein yesterday.
Capello came into this World Cup
with no game plan and no fixed start-
ing line-up, and his failure to commu-
nicate properly with the players was
all to evident in a lack of understand-
ing in every area of the park.
What can he say to the players at
half-time to get them going? It need-
ed an inspirational figure and I just
don’t think Fabio Capello has been
particularly inspirational to this
group of players this World Cup.
Personally, I think his 4-4-2 wasn’t
clever enough for international foot-
ball and he ran out of options. Not
taking an out-and-out left midfield
tournament.
What did Peter Crouch ever do
wrong? He didn’t get a sniff.
RESPECTED
So what now? We need a new fresh-
ness, new ideas, a new approach. Like
Germany have done, we need to ditch
the old guard and build a developing
team for the future.
The simple fact is we are not as
good as we tend to think we are. Our
players are simply add-ons in a for-
eign-based Premier League and our
idea of ‘world class’ is tinged some-
case and he is available, then the FA
should bring him in.
Certainly his face fits, he’s at a good
age, has experience of international
football and is well respected by the
players he’ll be working with.
Or, how about Harry Redknapp? He
is in the same mould as Ray, hugely
respected, but I just wonder whether
this pending court case will go
against him.
Either way, the FA need to act, and
now. Capello has not earned his £6m-
a-year wages in South Africa, it’s been
nothing short of a shambles.
CITYA.M. 28 JUNE 2010 Sport | Football 31

Klose slides home

Germany’s first
goal past David
James after shoddy
Tevez brace fires Argentina
England defending
ARGENTINA
MEXICO
WORLD CUP 2010
BY FRANK DALLERES
CARLOS TEVEZ followed up a
moment of controversy with a
moment of magic as he helped
Argentina earn a World Cup quarter-
final with Germany.
The Manchester City striker infuri-
ated Mexico after heading Diego
Maradona’s side in front despite
3 being two yards offside.
The Mexicans surrounded referee
Roberto Rossetti after a replay of the
1 goal was shown on the Soccer City
stadium big screen, and also prompt-
ed a touchline melee as the referee
attempted to leave the field at the
break.
Up until then, the Mexicans were
the better side with Carlos Salcido
crashing a long-range effort against
the crossbar and Andres Guardado
shooting narrowly wide.
But buoyed by their fortunate
opener, Maradona’s men found their
feet and eight minutes later they
were 2-0 up when Gonzalo Higuain
latching onto Ricardo Osorio’s error
for his fourth goal of the tourna-
ment.
Indeed, seven minutes into the re-
start, the tie was as good as over
when Tevez let fly with a sensational
25-yard strike into the top corner.
Mexico, however, never gave up
and deservedly pulled a goal back
through a fine finish from new
Manchester United signing Javier
Hernandez.
But not even he could prevent the
Mexicans exiting the last-16 stage of
the competition for the fifth World
Cup in succession.

Lampard’s
effort clearly
bounces over
the line

Dejected England
captain Gerrard
holds his head

Fifa set to reject new calls

for goal-line technology
▲

GOVERNANCE
FIFA will stand firm and reject calls to
introduce goal-line technology
despite Frank Lampard’s disallowed
strike in Bloemfontein.
President Sepp Blatter was at the
Free State Stadium to see Lampard’s
20-yard shot clearly cannon off the
underside of the crossbar and over
the line with the match delicately
poised at 2-1.
Fifa ruled out using goal-line tech-
nology at the International FA board
meeting in March in favour of experi-
menting with two assistant referees.
Sports Minister Hugh Robertson
last night called on Fifa to change its
stance, while also challenging the
Football Association to conduct an
inquest into England’s poor perform-
ance in South Africa.
“This was a disappointing end to a
tournament in which England hardly
ever performed,” Robertson said.
“Once the dust has settled, I hope the
FA take a long hard look at the rea-
sons why, and Fifa reassess their oppo-
sition to using goal-line technology.”
Fifa refused to comment after the
match, saying: “Fifa will not make
any comment on the decisions of the
referee on the field of play.”
Blatter said at the time: “No matter
which technology is applied, at the
end of the day a decision will have to
be taken by a human being.”
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