BUSINESS WITH PERSONALITY
JULIA ROBERTS STARS
Issue 1,227 Friday 24 September 2010
GEOGHEGAN QUITS AFTER MISSING OUT ON CHAIRMAN ROLE
GULLIVER TO BE CEO • FLINT IS NEW CHAIR • MACKAY TO BE CFO
COUP AT HSBC
BANKING
▲
BY VICTORIA BATES
HSBC CHIEF executive Michael
Geoghegan is set to step down from
his role before the end of the year to
make way for investment banker
Stuart Gulliver, after a boardroom
coup that will rock the banking sector.
Geoghegan’s ego will be dealt a fur-
ther blow with the appointment of
HSBC’s finance director Douglas Flint
as chairman, a role Geoghegan is
understood to have coveted since
Stephen Green’s resignation earlier
this month.
HSBC’s nominations committee has
submitted recommendations for
Gulliver and Flint to the board, paving
the way for official approval of the
shake-up when the directors meet in
Shanghai next Wednesday.
City A.M. understands that Gulliver,
the widely-respected head of HSBC’s
investment bank, is to move out to
Hong Kong to take up the chief execu-
tive’s role, after Geoghegan relocated
last year to be closer to the beating
heart of the group’s operations in the
emerging markets of the East.
Flint, as chairman, will remain
based in London at the group’s corpo-
rate headquarters.
News of the boardroom shake-up
comes after planning for Green’s suc-
cession took a heated turn. Earlier this
week, Geoghegan is said to have
boiled over at the suggestion that for-
mer Goldman Sachs banker John
FTSE 100 t 5,547.08 -4.83 DOW t 10,662.42 -76.89
IN EAT, PRAY, LOVE
WEEKEND FILM REVIEWS P33
Michael Geoghegan (l) will be replaced by Stuart Gulliver (m), while Douglas Flint (r) becomes chairman
Thornton, one of HSBC’s non-execu-
tives, take up the chair in his place.
Geoghegan had been grooming
Gulliver to be his own successor as
chief executive and is thought to have
favoured a scenario with himself in
the chair in Hong Kong and Gulliver
as a London-based chief executive.
Despite the upheaval, investors are
likely to be reassured at the prospect
of two of HSBC’s most capable old
hands taking control. Gulliver has
NASDAQ t 2,327.08 -7.47
BRITS HEAD
www.cityam.com
Pictures: REUTERS/GETTY
spent almost three decades at HSBC, Britain’s largest banks, with the resig-
while Flint joined fifteen years ago. nations of both Barclays chief execu-
Iain Mackay, the finance director of tive John Varley, who will be replaced
HSBC’s Asian operations, is set to be by investment banker Bob Diamond,
named to replace Flint as group and Lloyds chief executive Eric
finance director, the third cog in the Daniels in the past few weeks.
new management wheel for the bank. Barclays’ and HSBC’s decision to
HSBC last night reiterated that “no install well-known investment
decision has formally been made”. bankers as their chief executives is
The FSA still needs to sign off on the likely to see them come under politi-
moves. They mark the continuation of cal pressure.
a period of extraordinary upheaval at ALLISTER HEATH: P2
£/$ t 1.57 -0.01 £/¤ t 1.18 -0.01 ¤/$ ▲ 1.33 +0.01
FOR GAMES
COMMONWEALTH
GETS OK BUT SITE
STILL A MESS P38
FREE
Profits hit
record high
at Arsenal
▲
EXCLUSIVE
BY FRANK DALLERES
ARSENAL will today announce record
pre-tax profits of around £55m, an
increase of £10m, as the football club
continues to reap the rewards of mov-
ing to the Emirates Stadium.
City A.M. understands that the
strong performance of Arsenal
Holdings’ property development arm
has driven an increase in revenue.
The north Londoners’ continued
success off the field will see them
record an increase in turnover for the
fourth successive year since leaving
Highbury for their new home.
Pre-tax profit is significantly up on
last year’s figure of £45.5m for the
year ending 31 May. That improve-
ment has been aided by strong sales of
apartments in the group’s Highbury
Square Development. It is understood
that only a very small number of the
655 residences in the club’s former
stadium remain unsold.
The success of that project is
thought to have enabled the club to
pay off the remaining debt on the
development, which at one stage
totalled £133m, six months early.
Revenue has also been boosted by
on-field results, with a Champions
League run earning the club £27m in
prize money and revenue. Premier
League income rose past £51m, while
player trading is expected to show a
profit of around £30m.
Manchester United reported pre-tax
profits of £48.2m in January while
league champions Chelsea announced
a £44.4m loss in December.
Certified Distribution
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 2 News
HSBC’s spectacular boardroom row
EDITOR’S LETTER
ALLISTER HEATH
BIG companies need to get their PR in
order. BP’s reaction to its oil spill was
all over the place at first, with its CEO
Tony Hayward repeatedly putting his
foot in it; the Prudential failed to com-
municate adequately to the media
and shareholders during its hopeless-
ly mismanaged bid for AIA. Now, dis-
appointingly, it is HSBC’s turn to mess
up on the communications front.
It branded as “offensive” a story in
another newspaper earlier this week
stating that its chief executive had
threatened to resign unless he were
appointed chairman. Fair enough –
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Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
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WHAT THE OTHER PAPERS SAY THIS MORNING
HARMAN COOL ON PLAN TO
HALVE DEFICIT
Harriet Harman has suggested that
Labour should scrap its pre-election
plan to halve the deficit by the end of
this parliament, becoming the latest
senior figure to intervene in the
debate over economic direction.
Labour’s interim leader said the UK
was now in a “new situation” and the
plan – set out by Alistair Daling, for-
mer chancellor – was a manifesto
pledge rather than a template that
should be kept in opposition.
GOOGLE-STYLE COMPLEX
PLANNED AFTER LONDON OLYMPICS
International companies are being
invited to form a Google-style digital
and creative business complex in the
Olympic Park after the London 2012
games. Olympic chiefs are seeking
expressions of interest for the use of
the huge broadcast and press centre
apart from the fact that it now turns
out that Michael Geoghegan did
indeed fail to land the top job and is
therefore standing down. I have no
doubt that the firm was acting in
good faith and that the original denial
was technically true – but the fact that
the end result is identical has angered
many journalists and left HSBC with
egg on its face.
Not that any of this should detract
us from the astonishing and brutal
coup that has just taken place at the
top of such a large and usually staid
institution. A bitter and seemingly
uncontrollable power struggle, trig-
gered by Stephen Green’s resignation
as chairman and appointment as
trade minister, has torn HSBC’s board-
room apart; it goes to show that per-
sonalities matter immensely, even in
an organization that could run on
auto-pilot most of the time.
It is good that an HSBC insider –
Douglas Flint, the current chief finan-
cial officer and a KPMG graduate who
has worked at HSBC since 1995 – is
GSK hit by EU
Avandia ban
PHARMACEUTICAL
▲
BY EMMA SADOWSKI
DRUGS giant GlaxoSmithKline (GSK)
has been dealt a heavy blow by
European regulators, who are forcing
it to remove diabetes drug Avandia
from the market on concerns it is
linked to increased heart attacks and
strokes.
Yesterday’s decision by the
European Medicines Agency (EMA) to
suspend all marketing of Avandia
came after a lengthy review and con-
sultation period.
The EMA’s decision coincided with
a ruling by the US Food and Drug
Administration (FDA) that GSK could
continue to market the diabetes
drug – also known as rosiglitazone –
but with severe restrictions.
GSK’s chief medical officer Ellen
Strahlman said: “We are making
being built in the games zone at
Stratford, east London.
INDUSTRY LOOKS TO INDIA
AS FAVOURITE SUPPLIER
British manufacturers seeking lower
cost suppliers are targeting India over
China, according to new research.
Despite recent worries about manu-
facturing capacity going offshore, 55
per cent of British manufacturers
have their sourcing relationship with
a domestic supplier, says KPMG.
However, its global manufacturing
outlook warned that 36 per cent of
businesses intend to reduce their
sourcing from local suppliers in two
years primarily on grounds of cost.
EUROPEAN NATIONS PRESSED
TO SURRENDER IMF BOARD SEATS
European countries must give up
seats on the board of the
International Monetary Fund (IMF) if
the institution is to remain credible,
the Brazilian representative at the
IMF has warned.
being appointed as the firm’s next
chairman; promoting from within is a
tradition that has served the firm
well, helped maintain its strong corpo-
rate culture and contributed to the
cautious conservatism which saw it
through the crisis. Flint is used to deal-
ing with regulators; he ought to per-
form well as the firm’s new public
face in London.
Stuart Gulliver, the firm’s head of
investment banking, is an equally
good choice as the new chief execu-
tive; a talented and charismatic opera-
tor, he built up the bank’s
sophisticated wholesale and markets
operation, succeeding where his pred-
ecessors had failed. Like Bob
Diamond’s appointment as CEO of
Barclays, it is also a brave choice polit-
ically: Gulliver has earned millions in
recent years. To the likes of Vince
Cable, the business secretary, this is a
bad thing; it will certainly fuel the
rage of the populist and left-wing
media. Yet the big financial institu-
tions are rightly putting their share-
every effort to ensure that physicians
in Europe and the US have all the
information they need to help under-
stand these regulatory decisions.”
Analysts have said that yesterday’s
ruling is likely to have a negative
impact on GSK’s future sales streams.
Global sales for Avandia reached
£771m last year, while the drug gen-
erated £321m in sales during the first
half of 2010.
Meanwhile, European sales of the
drug during the first half of the year
reached £72m, and in the US Avandia
made £164m.
GSK’s chief medical
officer Ellen Strahlman
said the group’s top
priority is patients
with type 2 diabetes
HMRC ON DEFENSIVE OVER
£1.5BN WRITE OFF
HM Revenue & Customs (HMRC) has
rushed to quash reports that it is
preparing to write off £1.5bn of tax
owed by millions of people who
received incorrect tax demands. The
claim emerged after an unnamed
HMRC staff member reportedly told
the BBC that the Revenue is likely to
write off the tax underpayments dat-
ing back to 2005/06.
BIG FOUR GRIP COULD PUSH UP
AUDIT FEES
The stranglehold of the Big Four
accountants over the audit market
has led to big companies paying high-
er fees to have their accounts scruti-
nised, a leading mid-tier accountant
has told a House of Lords inquiry. So
entrenched is their dominance it has
become almost impossible for small-
er firms to challenge them, said BDO.
holders first (after years of neglecting
them), rather than pandering to the
UK government’s absurd anti-invest-
ment banking mood.
It will be a shame to see Geoghegan
go. He was a hands-on, operations
man, a down to earth banker who
steered the firm through the credit
crisis – it never needed a bailout – and
sorted out the Household mess in the
US. He did make mistakes, of course:
one of his errors was that he mishan-
dled his compensation; nearly a quar-
ter of shareholders failed to back the
bank's pay proposals for its directors
earlier this year. But let us hope he
reemerges soon in another role.
Following the shake-up at Barclays
and Eric Daniels’ looming departure
from Lloyds, it is all change at the top
of British banking. If the government
had any sense, it would use the oppor-
tunity to draw a line under its City-
bashing rhetoric and acknowledge
that the UK needs a strong and
healthy financial industry. One can
but hope. allister.heath@cityam.com
Londoners are facing another Tube strike on 3 October
Unions reject Tube talks
TRANSPORT
▲
BY EMMA SADOWSKI
TUBE unions embroiled in a bitter
dispute with London Underground
(LU) have refused a call by the public
transport body to resume talks aimed
at averting another strike.
Transport unions the RMT and
Transport Salaried Staffs’ Association
(TSSA), which together represent over
10,000 Tube workers, said proposals
made by LU “do not go far enough to
resume talks”.
4.4M BARRELS LEAKED INTO GULF
OF MEXICO BY BP OIL SPILL
The first independent study of the BP
Gulf of Mexico spill has calculated
that 4.4m barrels of oil were spilled
before the well was capped. Research
in US journal Science concluded that
the quantity of oil which spilled was
enough to fill 700,000 cubic metres.
They said that about 58,000 barrels of
oil escaped per day until a temporary
cap was effectively put in place.
LIB DEM DONOR URGES CABLE TO STOP
BANK BASHING AND DEFEND CITY
Paul Marshall, the hedge fund manag-
er and high profile Liberal Democrat,
has urged Vince Cable to stop bank
bashing and focus instead on defend-
ing the City against onerous and dam-
aging regulations. He said Cable was
behaving like a "minister who wants
to make his mark” rather than doing
what was "important for the country".
CITYA.M. 24 SEPTEMBER 2010
NEWS | IN BRIEF
Dubai to launch $1bn bond sale
The Kingdom of Dubai will seek to raise
about $1bn (£638m) from a bond sale
next week, tapping the market for the
first time since Dubai World’s $24.9bn
debt restructuring. HSBC Holdings,
Deutsche Bank and Standard Chartered
have been hired to manage the sale of
the five to seven-year bonds, which is
likely to be completed by 27 September.
Dubai’s government last sold bonds ear-
lier this year in October, when the
Department of Finance raised $1.93bn
from five year, fixed and floating-rate
Islamic notes.
Verizon to pay dividends in 2012
US communications firm Verizon hinted
it may resume dividend payments at its
joint venture with Vodafone in 2012.
The company, which holds a 55 per cent
controlling stake in Verizon Wireless,
stopped paying dividends in a move
widely seen as an attempt to squeeze
Vodafone out. Verizon chief executive
Ivan Seidenberg said it would probably
resume dividends once it had paid off its
remaining debt. It has $15bn (£9.6bn)
net debt but generates $1bn in cash a
month.
The unions confirmed that three
planned 24-hour strike periods for 3
October, 2 November and 28
November would go ahead.
LU management called on RMT
and TSSA yesterday to restart talks at
conciliation service Acas in a bid to
reach an agreement over plans to axe
up to 800 station staff.
Leaders from RMT and TSSA met
with senior management from LU
earlier this week, but after six hours
neither side could reach an agree-
ment.
STANDARD CHARTERED CEO
SEES UNCERTAINTY IN US
Standard Chartered’s chief executive
said Thursday that global bankers
view the US as an arena of "uncertain-
ty"—not knowing what the impact of
the November midterm
Congressional elections will be, nor
"how long the US expansionary fiscal
stance is going to be sustainable"
amid still-unresolved issues from the
US mortgage crisis.
'SECOND LOOK': FIRST AID
FOR BORROWERS
Many of the biggest US banks, criti-
cised since the financial crisis erupt-
ed for making fewer loans and
toughening borrowing standards,
have launched what industry offi-
cials call "second look" programs to
review rejected loan applications.
Banks are also reviewing those they
rejected for small-business loans.
CITYA.M. 24 SEPTEMBER 2010
Fears grow
over second
EU debt crisis
▲
EU ECONOMY
BY MATTHEW WEST
FEARS of a second European
Sovereign debt crisis grew yesterday
as economic data showed Ireland’s
second quarter GDP fell while uncer-
tainty over how the country will sup-
port its banking sector triggered a
sell-off in its bond markets that sent
gilt yields to a record high.
The sell-off came after the Irish gov-
ernment signalled that holders of
Anglo-Irish bank’s €2.4bn worth of
subordinate debt may have to accept
a “haircut”, as it confirmed it would
extend its bank guarantee scheme for
three months.
The spread on five-year Irish sover-
eign credit default swaps (CDS)
widened to as much as 490 basis
points (bps) yesterday, meaning the
cost of insuring $10m of debt over
five years jumped to $490,000.
Meanwhile, the spread on five year
Portuguese CDS widened to 419 bps
from 391 bps and Italy widened to
204 bps from 195 bps. The Spain five-
year CDS spread was at 242 bps versus
234 bps on Wednesday, while Greece
widened to 828 bps from 813 bps.
Spanish telecommunications giant
Telefonica also cancelled a bond sale
on concerns about the creditworthi-
ness of the Eurozone’s most indebted
nations.
Official figures showed Ireland’s
GDP fell 1.2 per cent in the second
quarter as imports grew unexpected-
ly.
More broadly, economic data
showed the manufacturing and serv-
ices sectors in the Eurozone slowed
more than expected in September.
The Eurozone Purchasing
Managers Index (PMI), compiled from
surveys of around 2,000 businesses
ranging from banks to restaurants,
showed sentiment fell to 53.8 in
September from 55.9 in August, its
lowest reading since February.
The index also indicated Ireland,
Spain and Italy were in danger of
falling back into recession.
News 3
Five ministers
cut early deal
with Treasury
POLITICS
▲
FIVE departments have agreed budget
cuts with the Treasury ahead of the
comprehensive spending review
(CSR), as the government gears up for
the toughest fiscal tightening in
Britain’s peacetime history.
The foreign office, cabinet office
and the Treasury itself have all
reached early agreements on cuts.
The department for communities and
local government and the environ-
ment department have also cut an
early settlement with the Treasury.
The CSR will take place on 20 October.
Foreign secretary William Hague
and cabinet office minster Francis
Maude will now join George Osborne
and chief Treasury to the secretary
Danny Alexander in a “star chamber”
Traders were shocked by a fall in second quarter GDP Picture: REUTERS to assess other department’s spend-
ing plans. Communities secretary
ANALYSIS l Cost of insuring Anglo Irish debt surges Eric Pickles and environment secre-
tary Caroline Spelman are also
expected to sit in the chamber.
700 Most government departments will
Cost to insure €10m (€000)
have to slash their budgets by around
600 25 per cent in real terms over the next
five years as part of spending cuts
500 announced in the chancellor’s emer-
gency budget in June.
400 The five departments have relative-
ly low annual spending compared to
300 ministries like defence, transport and
welfare, where a much fiercer battle
Oct Dec Feb Apr Jun Aug is likely. LABOUR LEADERSHIP: P9
CITYA.M. 24 SEPTEMBER 2010
FSA hauls in
bank execs
over bonuses
▲
REGULATION
BY EMMA SADOWSKI
TOP officials from Britain’s largest
banks have met at the Financial
Services Authority (FSA) to discuss the
regulator’s proposed crackdown on
banker’s bonuses and pay.
Last month heads of remuneration
from each of the top banks met at the
financial watchdog to discuss ways in
which the banks would adhere to the
revised remuneration code, which
has already caused a flurry of politi-
cal debate.
The talks, which were hosted by the
FSA’s banking sector leader Thomas
Huertas, were the result of a consulta-
tion paper issued by the regulator in
July.
Attendees included HSBC’s John
Thornton; Sir Richard Broadbent
from Barclays; Ruth Markland from
Standard Chartered; Lloyds Banking
Group’s Tony Watson; and Penny
Hughes from Royal Bank of Scotland.
The FSA told City A.M. that a meet-
ing had taken place but sought to dis-
tance itself from suggestions that it
was held in secret or the result of a
special summons.
Three phone calls
key to EMI dispute
▲
BANKING
BY MATTHEW WEST
THE legal battle between Guy Hand’s
private equity firm Terra Firma and
Citigroup looks set to hinge on three
phone calls Hands claims he received
from David Wormsley, head of Citi’s
investment banking division, it
emerged yesterday.
The case, which begins in New York
on 18 October, centres on Hand’s
acquisition of music label EMI which
he now claims he was duped into pay-
ing £4bn for. The record label’s value
has halved since the deal in 2007.
Hands alleges he was told of a rival
bid for EMI of 262p per share from
Cerberus by Wormsley in three sepa-
Alexon reports improved trading
despite flat first-half profits
▲
RETAIL
BRITISH fashion retailer Alexon
posted a flat adjusted pretax profit
for the first half as it was hurt by
lower inventory levels, but said trad-
ing since the half year was encour-
aging.
The company, whose brands
include Ann Harvey, Eastex and
Dash, said like-for-like sales rose 3.1
News 5
Above: John Thornton, HSBC
Below: Tony Watson, Lloyds
Above: Richard Broadbent, Barclays
Below: Penny Hughes, Royal Bank of
Above: Ruth Markland, Standard
Chartered
Scotland Below: Thomas Huertas, FSA
“[The talks] are part of a regular
engagement when we issue an open
consultation,” said a spokeswoman at
the regulator.
It is understood that the FSA has
asked the senior banking figures to
respond to the paper by 8 October.
July’s publication of the remunera-
tion code outlined a number of sug-
gestions banks might have to
consider when it came to bankers
pay, including deferred bonus pay-
Get on your bike on your
ments and the proportion of bankers’
pay that should be in shares or cash.
The FSA is proposing that at least
City Break to Holland
40 per cent of a bonus must be
deferred over a period of at least three
years, and that 60 per cent must be
deferred when the bonus surpasses
£500,000.
Similarly, the FSA has said that at
least 50 per cent of any variable remu-
neration components should be
made in shares.
The news comes after FSA chair-
man Lord Adair Turner on
Wednesday said there a need to move
away from the “demonisation of over-
paid traders” and that bad policies –
not just bankers – were to blame for
the financial crisis.
rate phone calls and was advised by
him to bid 265p per share to secure a
deal.
Terra Firma will also argue Citi had Visit Amsterdam,
a strong motive to ensure the EMI
deal happened, as it earned £6m in Rotterdam & The Hague
fees for advice to the label and £80m
for financing the private equity bid. All within 35 mins of Amsterdam Airport
Wormsley is expected to say one of
the three calls never happened and
the two other calls were about differ-
ent topics.
Citi will cite the flight log for
London to
Hands’s private jet and Wormsley’s
mobile phone records to say the
banker called him twice for about 30
seconds each time – allegedly suggest-
ing he left voicemails – after the
Amsterdam
plane had taken off.
from
per cent for the first seven weeks of
£
29 .99
single
inc. taxes
the second half, with some margin
improvement.
For the 26 weeks ended 31 July,
pre-tax profit before exceptional
items on continuing operations was
nearly flat at about £1m We fly from Gatwick, Luton and Stansted. Price correct as at 8 September 2010. Available to book now for travel
Revenue fell 10 per cent to £69.7m
as disruptions such as air transporta- between 31 October 2010 and 26 March 2011. Variable charges for hold baggage apply and some payment
tion issues led to lower inventory lev- methods attract a handling fee. See website for details.
els.
 6 News
Evolution set
to chew over
Panmure bid
▲
FINANCIAL SERVICES
BY VICTORIA BATES
STOCKBROKER Panmure Gordon yes-
terday thumbed its nose at larger
rival and potential bidder Evolution,
insisting that it is firmly on track
with its strategy as an independent
firm.
Evolution said that a “possible
offer” for Panmure was one potential
option being weighed up by the
group’s board, led by chief executive
Alex Snow, though it stressed that
plans are at a very early stage and
that no formal discussions have yet
been initiated.
“The company is keen to assess
Panmure Gordon’s upcoming trading
results before determining whether
there is any merit in taking its delib-
erations further,” Evolution said in a
statement to the stock exchange.
Panmure countered its rival’s dec-
laration with an indignant reply of its
own, arguing that it “is a well capi-
talised business, with a well respected
brand name and… 64 corporate
clients in the UK”.
“Panmure has a strong footprint in
the UK and US with significant
growth potential and has a clear
international development strategy
in both the Middle East and the
emerging markets as an independent
entity,” the group added.
Panmure, which is due to report
first half results next Wednesday, said
that QInvest – Qatar’s largest invest-
ment bank, which last year snapped
up a 44 per cent stake in the firm – is
supportive of that strategy.
Evolution’s interest is the latest
development in a lengthy saga of con-
solidation in the City’s small to mid
cap broking sector, which has taken a
heavy hit from lower activity levels
during and in the wake of the finan-
cial crisis.
The news sent Panmure’s stock
rocketing on the Alternative
Investment Market (Aim) yesterday,
adding 8.6 per cent over the day to
close at 31.5p.
Panmure chief Tim Linacre (top) and Evolution boss Alex Snow
CITYA.M. 24 SEPTEMBER 2010
Germany’s
largest steel
firm quits Iran
INDUSTRIAL
▲
GERMANY’S biggest steelmaker
ThyssenKrupp has joined a growing
list of businesses which have with-
drawn from Iran in response to ever-
harsher sanctions against the Islamic
Republic.
ThyssenKrupp said it would freeze
all new business immediately and ter-
minate existing contracts as soon as
possible. It is the latest in a series of
German companies to cut ties with
Iran. Others include Daimler, Munich
Re, Siemens and Allianz.
A spokesman for ThyssenKrupp said
Iran accounted for less than 0.5 per
cent of group revenues of €40.6bn
(£34.5bn) in its last financial year to 30
September 2009.
Most of its existing business in Iran
comprised engineering projects for
cement factories, he added.
The announcement came as Iranian
President Mahmoud Ahmadinejad
told the United Nations that most peo-
ple believe the US government was
responsible for the attacks of 11
September 2001, prompting US dele-
gates to storm out in protest.
Another theory, he said, was “that
some segments within the US govern-
ment orchestrated the attack to
reverse the declining American econo-
my, and its grips on the Middle East, in
order to save the Zionist regime.”
 8 Technology News
Google wins
If key piracy
case in Spain
lif e
g i ve s
Google hailed the ruling as a victory for internet freedom
▲
TECHNOLOGY
BY STEVE DINNEEN
GOOGLE yesterday won a landmark
ruling when a Spanish judge threw
out a claim it should be responsible
yo u
for pirated content on its YouTube
service.
Broadcaster Telecinco said it had
suffered as a result of hit shows
appearing on the video-sharing web-
site before they are broadcast in Spain.
But a judge said the anti-piracy
measures in place are sufficient and
responsibility lies with the copyright
holder to alert Google to breaches.
The win will come as a massive
relief to Google, which would see
YouTube grind to a halt if it was
forced to monitor every piece of con-
tent uploaded.
Google claimed the ruling was a
win for internet freedom. A Google
spokesman said: “We are very pleased
with today’s ruling. The win today
confirms what we have said through-
Zuckerberg: No Dell shows off
Facebook phone new tablet PC
lem o n s
▲
FINANCIAL SERVICES
FACEBOOK founder Mark Zuckerberg
quashed rumours his firm is ready to
release a phone to compete with
Google and Apple.
The 26-year-old said he is only inter-
ested in “deeply integrating”
Facebook services into existing
phones and said he would have fired
the source of the leak.
But he refused to completely rule
out a Facebook phone, saying he
couldn’t predict what the social net-
work will do down the line.
Zuckerberg was named ahead of
both Steve Jobs and Rupert Murdoch
in the Forbes Rich List this week.
Picture: PA
out this process: YouTube complies
with the law.”
This is the second major victory for
Google this year. In June a US judge
threw out a $1bn (£670m) lawsuit
accusing the company of turning a
blind eye to illegal videos on YouTube.
Viacom claimed “tens of thousands
of videos, resulting in hundreds of
millions of views,” had been posted
based on its copyrighted works.
It said Google ignored the infringe-
ments but US district judge Louis
Stanton decided it would be unfair to
hold the internet giant liable for sim-
ply having a “general awareness” that
videos might be posted illegally.
Instead he said sites like YouTube
should not be held accountable for
monitoring content uploaded by
third-party users, so long as it com-
plied after a complaint was lodged.
Viacom says it plans to take the
case to the US second circuit court of
appeals, claiming Stanton’s ruling
was “fundamentally flawed”.
ECONOMY
BLACKBERRY maker RIM is under-
stood to be ready to unveil an “iPad
killer” tablet computer at its annual
DevCon conference next week.
The firm has been rumoured to
have been working on a tablet device
since the roaring success of Apple’s
iPad. But few expected it could have
the “BlackPad” ready in time for the
Christmas market. The firm said it
does not comment on rumours or
speculation.
Meanwhile Dell showed off a new
seven-inch tablet and said the compa-
ny is on track to bring in more than
$60bn (£38bn) in revenue this year.
CITYA.M. 24 SEPTEMBER 2010 Labour Leadership 9

Candidates jockey
Brothers David
and Ed Miliband
have gone head-to-
head in the Labour
leadership election

for shadow cabinet

if he misses out on the crown.

▲
POLITICS
BY DAVID CROW
ED Miliband will offer his brother the
job of shadow chancellor if he
emerges victorious in tomorrow’s
leadership election, according to cam-
paign insiders.
David Miliband was seen as a shoo-
in for the leader’s job before younger
sibling Ed threw his hat into the ring,
and friends say he could quit politics
But Ed Miliband hopes he can keep
David in politics by making him shad-
ow chancellor. Labour MPs are wor-
ried that a shock resignation could
overshadow the party conference at a
time when they should be fighting
back against the coalition.
If David Miliband were to become
shadow chancellor it would be a
major blow for Ed Balls, who also has
designs on the job.

Black hole in
Miliband plan,
say the Tories
must find £55bn of cuts or taxes, the
▲

POLITICS
BY DAVID CROW
THE Tories have stepped up their
attacks on the Labour leadership can-
didates, claiming bookies’ favourite
David Miliband must find £55bn of
cuts to pay for his campaign promises.
Ed Miliband, who is also within
touching distance of winning the lead-
ership contest, will have to find £67bn
of spending cuts to fulfil his pledges,
the Tories say.
David Miliband backs former chan-
cellor Alistair Darling’s deficit reduc-
tion plan, which implied £44bn of cuts
by 2014-15.
But the Tories say he has opposed
£33bn of cuts outlined by the coali-
tion, including a rise in VAT, cuts to
housing benefit and linking public
sector pensions and benefit to the CPI
measure of inflation.
He has also made a raft of spending
promises in the campaign, including
more free school meals, a living wage
and a national care service for the eld-
erly. The Tories say these will cost more
than £22bn.
Having outlined just £11bn of new
taxes, such as a mansion tax and a levy
on bankers’ bonuses, that means he
Tories say.
Meanwhile, the Tories say Ed
Miliband has made over £28bn of
spending commitments, while offer-
ing just £5bn of tax rises. That would
mean he has a £67bn black hole in his
campaign promises, assuming he
backs Darling’s deficit reduction plan.
The claims are contained in a
dossier authored by Matt Hancock, a
new Tory backbench MP and a former
adviser to chancellor George Osborne.
He said “Both Milibands have feebly
opposed all action the coalition has
taken to deal with the deficit, and
have made billions of further promis-
es.”
But an aide to David Miliband dis-
missed the findings. “David’s always
said he’d wait for the comprehensive
spending review before offering
detailed plans. We don’t even know
what they’re cutting yet – it’s a bit rich
for them to start asking us.”
The dossier comes a day before the
result of the Labour leadership ballot,
which will be announced on the eve of
the party’s conference in Manchester
tomorrow. Bookmakers and party
insiders expect a photo finish between
the Miliband brothers.

FAST FACTS | HOW LABOUR WILL CHOOSE ITS NEW LEADER

THE VOTE SHADOW CABINET

● The voting is split equally three ways
between Labour members of the national
and European parliaments, party mem-
bers and members of affiliated trade
unions who have not opted out of paying
a political levy.
● The votes for each nominee in each
section are then calculated as a percent-
age of the total votes cast in that section.
If any candidate receives a majority of
votes, they are declared the leader. If not,
the last-placed contender drops out and
their second preferences are reallocated,
until someone passes the 50 per cent fig-
ure.
● The winner will be announced on
Saturday before the party's annual con-
ference in Manchester.
● The new leader will not have the
power to choose members of the “shad-
ow” cabinet, the Labour front-bench
team that monitors, criticises or opposes
the decisions of ministers from the
Conservative-Liberal Democrat coalition.
● Labour members of parliament will
elect 19 members of the shadow cabinet,
of whom at least six must be women.
Nominations open on September 26 and
the results will be announced late on
October 7.
● The new leader decides which cabinet
job each of those elected will get, but
the procedure means he or she could end
up working with shadow cabinet mem-
bers who have a different political view-
point.
 The Capitalist
10 CITYA.M. 24 SEPTEMBER 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com

WORLD’S “Old Faithful

Bill Gates
RICHEST remains on
his gilded
RACK UP THE throne as the
BILLIONS world’s rich-
est man for
GOOD times are rolling back, steadily and the 17th year
surely, if the latest Forbes rich list is any-
thing to go by. Amid all the doom and in a row” Lambert Smith Hampton’s winning team
gloom last year, well over three quarters of
the 400 billionaires on the list saw their find, a four-year matured Parmesan; the
wealth tank, with almost $40bn (£25bn) hottest, “Naga Chilli Cheese Bombs”,
draining out of the coffers of the top ten. infused with one of the world’s hottest
This year, the hard times are but a dis- chillis; and also, bizarrely, the sweetest – a
tant memory for the world’s wealthiest – sticky toffee cheddar.
over half of whom are now worth more Go on, we dare you.
than they were last year, while only 84 out
of the 400 are now weeping over emptier Microsoft’s Bill Gates: These aren’t your bog-standard gym
wallets.
Old Faithful Bill Gates, the founder of
the world’s richest
man for the past 17
bags, rucksacks or embossed briefcases,
mind – we’re talking evening clutch bags,
TEAM WORK
Kudos for commercial property group
Microsoft, remains on his gilded throne as years. fashioned out of a haul of racing green Lambert Smith Hampton (above) yesterday,
the richest man in the world for the 17th Lehman vinyl bank envelopes the designer taking the title for recruitment firm
year at a stretch, with a fortune of $54bn – Picture: REUTERS picked up for next to nothing at an estate Ambition’s annual five-a-side footy tourna-
up $4bn on 2009. Octogenarian invest- sale. ment for property and professional servic-
ment guru Warren Buffett was a distant The clutch bags – featuring the bank’s es clients at the Powerleague centre near
second with $45bn, also up $5bn, while logo imprinted on the lower right hand Bishopsgate.
Oracle founder Larry Ellison’s bank bal- corner – are currently retailing at $38, Soldiering on despite monsoon-like
ance stayed level at $27bn, keeping him in showing that there really is no accounting downpours, the teams – also including
third place. for taste. Henderson, British Land, Cushman &
The biggest mover was Facebook whip- Wakefield, law firm Berwin Leighton
persnapper Mark Zuckerberg, whose for- Paisner and the runner up, Arram Berlyn
tune more than tripled to $6.9bn from
$2bn, while the wealth of the entire 400
CHEESE WEEK Gardner – clearly had their competitive
Fans of the pongy stuff will be aware that hats on.
hit $1.37 trillion, up from $1.27 trillion in this weekend marks the start of national No less than four “sin-binnings” were
2009. Buffett talked shop with Jay-Z Picture: REUTERS cheese week – a perfect excuse (if any were doled out by the referees in the first cou-
needed) to indulge. ple of games, before the teams wised up to
the things in what he's saying, right?” the On hand to help out City workers in the strict rules of the field.
CHART TOPPERS rapper said. need of a fix is Gerrie Knoetze, the owner
While we’re on the subject of the Forbes “Because if you don’t look at the tickers, of Farringdon favourite Vivat Bacchus,
rich list, there was an end to waiting yes-
terday for those desperate to find out what
you’re really just searching for the truth
within all the numbers and all the chaos.
who tells me he’s put together the most
daring cheese board in the world to mark
JAZZ HANDS
Merchant Securities’ resident jazz star
was talked about when the Sage of Omaha And that’s the key to being a recording the occasion. John East, the deputy chief executive and
Warren Buffett met rapper Jay-Z earlier artist too. You’re telling your story or find- The board includes a particularly smelly chairman of corporate finance, is up to his
this week. ing your truth…” contender, of course – the Vieux Lille, musical tricks again, I hear.
Turns out, the unlikely pair have more which takes its nickname “Puant de East – a keen player of the
in common with their “business strate- Lille” from the French for Hammond organ – is back with his
gies” than anticipated – and had a ball
comparing stock picking to making
FASHION FIX “stinky”. regular band on 27 October at the
My, oh my, but purveyors of Lehman Then there’s the 606 Club in Chelsea, with the
music. Brothers memorabilia haven’t half been priciest cheese addition of new guitarist
“When you come to a conclusion you busy of late, to coincide with the anniver- around – the “Brillat Carl Orr and a horn sec-
have to really not care what other people sary of the firm’s bankruptcy earlier this Truffe”, which is tion.
say. Just follow the facts and your reason- month. flavoured with rare For chums and interest-
ing,” Buffett said, adding that investors Not only have we two well-trailed auc- truffles – and the ed parties who can’t get
should think of stocks “not as something tions of Lehman’s art collection in New runniest, the along to the gig, never
with a ticker symbol that wiggles around York and London tomorrow and next “Epoisse”. fear – it’s being recorded
but [as] part of a business”. week: Fashion blog Refinery29 has also In addition, to add to previous live
Cue fervent nodding from Jay-Z. “I dredged up a lady selling bags embossed there’s the oldest numbers on a CD due for
could just hear all the similarities and all with the bank’s logo. cheese Knoetze could release later in the year.

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 12 Consumer News
M&B profit fed by food sales
▲
LEISURE
BY JOHN DUNNE
PUBS and restaurants group Mitchells
& Butlers yesterday reported a surge
in food sales in recent weeks and said
it was looking to make acquisitions as
it re-shapes itself into a food-led busi-
ness.
M&B, which has over 2,000 pubs
and restaurants and whose brands
include Harvester, All Bar One and
Toby Carvery, reported a 4.4 per cent
increase in sales at outlets open for
more than a year in the nine weeks to
18 September, with food sales rising
by 7.1 per cent and drink sales up 2.2
Asda is given
go-ahead for
Netto deal
RETAIL
▲
BY MARION DAKERS
ASDA will sell around a quarter of its
newly-acquired Netto supermarkets,
the Office of Fair Trading said yester-
day, in a blow to the grocer’s expan-
sion into smaller city-centre outlets.
Asda paid £778m for Netto in May,
but said yesterday it will find buyers
for 47 shops after the OFT raised com-
petition concerns. The supermarket
is likely to be spared a grilling by the
Competition Commission if it co-
operates with the OFT, which will
police potential buyers to ensure they
fit in with each store’s local area.
The Walmart-owned chain said the
sale will push back the re-opening of
the other 147 branches, which was
planned for the Christmas period, to
the first quarter of 2011.
OFT senior director of mergers
Amelia Fletcher said: “The OFT is con-
fident that, if agreed, this package of
remedies will safeguard competition
... to the benefit of local shoppers,
while allowing the remaining store
purchases to go ahead.”
The Netto purchase will boost
Asda’s portfolio of smaller supermar-
kets to just below 200, in line with
Asda’s plan to open 100 new small to
CITY VIEWS: WHAT IS THE OUTLOOK FOR BOOKSELLERS IN THE DIGITAL AGE ?
ANTHONY COLLINS |
TD SECURITIES
I think the process of buying a book
from a shop will become a rarity. You
can have thousands of books at your
fingertips these days on a kindle or an
iPad. Actually I'm thinking about get-
ting one just now.
ANNA OLDINGER |
NOMURA
Book retailers may be affected by things like Kindle in the short term but they will never be completely
redundant. People will still like to snuggle up on the couch with a good book. I can’t imagine parents reading to
their children from a computer screen.
per cent.
“This is a very encouraging per-
formance, particularly given the pres-
ent consumer economy, and
underlines the strength of the
Mitchells & Butlers business,” said
chief executive Adam Fowle.
The switch towards higher-margin
food sales has enabled the company
to improve its operating margin
which it expects will have risen by 1.2
percentage points to 16.5 per cent in
the year to 25 September.
M&B, whose chains also include
the Sizzling Pub company, O’Neills
and Ember Inns, said it was planning
to invest about £200m next year on
acquisitions of single sites and small
mid-sized stores in the next five years.
Speaking before the OFT decision,
Asda’s property spokesman Jonathan
Refoy told City A.M. the firm is keen to
move into city centres including
London and Birmingham.
“London for us is a core market,
there’s no doubt about it. We have got
quite strict growth targets. Moving
into central London, it’s a long way
from happening right now. But we
will learn a lot from operating the
smaller Netto stores.” Analysts said
the ruling could reduce the benefits
of the deal, depending on which
stores are sold and whether Asda can
find buyers. “There’s no shortage of
appetite for stores,” said RBS analyst
Justin Scarborough. “But it does cre-
ate uncertainty.”
ANALYSIS l Wal-Mart Stores
54 p
53.64
52
23 Sep
50
48
28 Jun 19 Jul 6 Aug 26 Aug
MIKE STOKES |
IT-FREEDOM
People will certainly continue to buy
books in the traditional way. I think
that the electronic book market will
develop alongside. There will always
be a demand for copies of books to
have them signed.
packages of sites, as well as mainte-
nance and conversions of existing
pubs.
Fowle said the group planned to
spend £90m on expansion with
£110m being invested in mainte-
nance and conversions. Fowle said
the company will spend about £50m
purchasing single sites, small groups
of pubs and new build sites in retail
parks and town centres.
He added: “We’re keeping our
options open although we feel no
pressure to do larger transactions.”
Clapham House and Carluccio’s
have recently received bids. In
Carluccio’s case the offer came form
the Middle East.
16 Sep 80
Interviews by Alasdair Peoples and Victoria Scholar
Luminar hit by another
fall in revellers at clubs
▲
LEISURE
NIGHTCLUB owner Luminar yester-
day reported a further slump in sales
as fewer revellers went clubbing at its
venues.
Luminar, which issued three profit
warnings in its last financial year,
said sales at its 76 clubs were down
20.2 per cent in the 26 weeks to 26
August with admission revenue down
by 26.5 per cent and customer num-
bers down 19.1 per cent.
The company said, however, that it
Total number of
Asda supermarkets
374
Total number of
Netto stores:
194
Asda must sell on
Netto branches
47
Total cost of
acquisition in May
2010
£778m
Foyles profits surge after
boom at London flagship
▲
RETAIL
Foyles bookshop yesterday
announced profits ahead of expecta-
tions for the financial year with
operating profits up five-fold year-
on-year.
Like-for-like sales grew by 9.7 per
cent, following a bumper Christmas.
The net pre-tax profit figure for the
year ended 30 June was £335,935
whilst turnover grew by 1.9 per cent
to £23.1m.
The directors have once again
CITYA.M. 24 SEPTEMBER 2010
had a net operating cash inflow dur-
ing the period and had made £3.7m
from the sale of four properties,
enabling it to continue to trade with-
in the terms of its banking facilities.
Luminar has suffered from rising
unemployment within its key 18-24
customer age group.
Meanwhile, the World Cup also
took its toll as the nation tuned in to
watch football rather than hitting
nightspots. Chief executive and
founder Stephen Thomas stepped
down last year.
NEWS | IN BRIEF
Starbucks in plan to raise prices
Starbucks said yesterday it could no
longer resist “extreme” surging coffee
prices and would be forced to raise
some prices. Chief executive of the US-
owned chain Howard Schultz said he
had tried to freeze prices as long as pos-
sible. But he admitted: “The extreme
nature of the cost increases has made it
untenable for us to continue to do so
and we have been forced to take the
steps we announced.” He pledged to
maintain or even lower the price of
some espresso drinks and Starbucks'
“tall” 12oz brewed coffee. Coffee prices
on world commodity markets are close
to 13-year highs. Arabica beans current-
ly trade at around $1.80 per lb, com-
pared with less than $1.40 last spring.
The beans from Colombia and Central
America have been hit by two seasons
of poor harvests. The prices of lattes and
cappuccinos are among those set to rise
under the shake-up at the largest coffee
chain in the world. Schultz added that
speculators had also forced the price up.
Alexon upbeat on trading
Fashion retailer Alexon has posted a
marginally higher pre-tax profit for the
first half in spite of lower stock levels
and said that trading since the half year
looked promising. There was a 10 per
cent fall in revenue at the company,
whose brands include Ann Harvey,
Eastex and Dash but it reported an
adjusted pre-tax profit figure on contin-
uing operations of £950,000, up from
£900,000 last year for the 26 weeks
ended 31 July. After £9m in exceptional
costs in 2009 following the collapse of
its Bay Trading subsidiary, Alexon has
embarked on a major recovery plan. A
large part of this includes a £10m
reshaping of its property profile, funded
by the sale of stores earlier in the year.
The retailer is left with 1,092 concession
outlets and 63 stand-alone stores across
Europe.
decided not to pay a dividend in
order to strengthen the balance
sheet Sales growth has mainly
come from the two established
bookshops at the Royal Festival Hall
on London’s Southbank and St
Pancras International station as well
as the flagship store at Charing
Cross Road. The store has a planned
ground floor extension reiterating
the company’s growth trend.
Chairman of Foyles, Christopher
Foyle said: “I am very pleased with
the trading results for the year.”
CITYA.M. 24 SEPTEMBER 2010
Wen Jiabao denies deliberately keeping China’s currency weak
EU calls for
roaming fees
to be slashed
▲
TELECOMS
BY HARRY BANKS
LARGE roaming fees charged by tele-
coms operators are “an outdated con-
cept” and the European Union is
prepared to take steps to reduce the
costs, the bloc’s telecoms chief said
yesterday.
Digital Agenda Commissioner
Neelie Kroes, who oversees telecoms
and the internet across the 27-coun-
try EU, signalled she was prepared to
continue to cap lucrative roaming
charges that have been a strong
source of income for mobile phone
companies.
Her predecessor, Viviane Reding,
shocked the telecoms industry in
2008 by capping the amount mobile
phone companies could charge for
calls, sending text messages and
downloading data while abroad.
The European Parliament backed
the proposals last year.
“The [European] Commission’s
review of the Roaming Regulation
must look at the source of the prob-
lem and potential solutions in their
full context,” Kroes said in the text of
a speech prepared for delivery at a
European Telecommunications
Network Operators Association
(ETNO) conference.
“The relevant context is the lack of
a really competitive single market for
all aspects of telecoms services in
Europe.”
In her previous job as EU competi-
tion commissioner, Kroes imposed
fines worth billions of euros on com-
panies that broke EU antitrust rules.
Kroes said a genuine EU single mar-
ket should be one where price differ-
ences between voice, text messages
and data were based only on the actu-
al cost of providing these services.
Kroes added: “The exorbitant cost
of ‘roaming’ abroad within the EU is
an outdated concept.”
BMI to start flights to Libya in December United fans share tickets
▲
TRANSPORT
BY MATTHEW WEST
UK airline BMI is to launch a daily
service from London to Tripoli from 1
December 2010, it said yesterday, in a
possible sign of thawing UK/Libyan
relations
Until now British Airways was the
only UK airline to operate a route to
Libya, with flights to Tripoli begin-
ning in1999.
Picture: REUTERS
BMI will operate flights from
Heathrow with the first seats avail-
able to book from today.
Libya is keen to expand its tourism
market as the country attempts to
rehabilitate its international reputa-
tion following the bombing of Pan
Am flight 103 over Lockerbie in 1988,
which killed all 243 passengers.
However, relations have been
strained over the last year following
China denies cheap yuan
▲
CURRENCIES
BY HARRY BANKS
PRESIDENT Barack Obama met
Chinese Premier Wen Jiabao yester-
day as US lawmakers appeared closer
than ever to acting on long-standing
threats to penalise China for keeping
its currency artificially low.
Wen staged a pre-emptive defence
of China’s policies ahead of the meet-
the release by the Scottish govern-
ment of the only man ever convicted
of the bombing, Abdelbaset al
Megrahi, on compassionate grounds.
Wolfgang Prock-Schauer, chief exec-
utive of BMI, said business customers
would benefit from “even more
choice between the UK and Libya”
with domestic and long haul connec-
tions via Heathrow.
Prices from London Heathrow to
Tripoli start from £265 return.
ing, flatly rejecting any link between
the level of the Chinese yuan, or ren-
minbi, and US trade deficits.
“The main reason for the US trade
deficit with China is not the renmin-
bi exchange rate, but the structure of
trade and investment between the
two countries,” he said in a speech to
US executives and China experts in
New York.
Wen’s talk came after a US House
SPORT FINANCE
ONE in eight Manchester United fans
plan on sharing season tickets this
season, a new survey by Virgin Money
has revealed.
The club has so far failed to sell its
quota of season tickets for the year. A
sustained campaign by fans unhappy
with the club’s ownership by the
Glazer family has also hit sales.
Fans led by the Manchester United
News 13
of Representatives committee sched-
uled a vote for today on a China cur-
rency bill that would treat China’s
“undervalued” currency as an export
subsidy and allow the US Commerce
Department to impose countervailing
duties on Chinese products to offset
the undervaluation.
Critics say China deliberately
undervalues its currency by as much
as 25 per cent to 40 per cent.
Diageo boss
talks up UK
tax exodus
▲
LEISURE
BY MARION DAKERS
DRINKS firm Diageo’s chief executive
warned the government yesterday
that companies will move out of the
UK if the tax regime deteriorates.
Paul Walsh said governments often
misunderstand how multi-national
companies operate.
“It doesn’t matter where we’re
based, and governments can forget
that,” said Walsh. “So if they start to
think they can be cute on tax, they’ll
force us to consider other options.”
Diageo, which makes much of its
profit abroad through sales of Scotch
whisky, has drawn criticism recently
for closing many of its Scottish bot-
tling factories. Walsh had threatened
to take the whole company abroad,
but said yesterday he has reconsid-
ered since the election.
“The last thing I want to do is re-
domicile this company, but in the
face of substantial increases in tax I
would have to look at it,” he said at
the opening of a new whisky distill-
ery in the Scottish Highlands.
The London-based maker of
Smirnoff vodka, Johnnie Walker
whisky and Guinness beer said last
month it remained cautious over
growth in Europe and North America.
Walsh came under fire after the com-
pany revealed he netted £6m in salary
and perks last year, despite the
gloomy outlook for the firm.
ANALYSIS l Diageo
1,140 p
1,092.00
1,120 23 Sep
1,100
1,080
1,080
1,040
28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
Supporters’ Trust are furious the
American family has saddled the pre-
viously-debt free club with in excess
of £700m of debts.
However, Manchester United are
not the only club facing a problem
with fans sharing season tickets, with
supporters of Arsenal, Liverpool and
Tottenham completing the top four.
Blackpool fans are the least likely to
double up on tickets, with just two
per cent saying they would do it.
 14 News
Mortgage approvals slump
▲
PROPERTY
BY HARRY BANKS
THE number of loans approved for
buying houses fell in August to its
lowest since the housing market
trough in 2009, industry data showed
yesterday, suggesting housing market
weakness is set to continue.
Mortgage approvals are a good indi-
cator of house price trends around six
months down the line, and the fig-
ures chime with data from the cen-
BlueCrest in
second spot
with AllBlue
▲
HEDGE FUNDS
BY VICTORIA BATES
BLUECREST AllBlue yesterday became
the second largest listed hedge fund
after it tapped investors for £83.3m in
its third share placing in nine
months.
The only larger listed hedge fund is
BH Macro, which was floated by
Brevan Howard in 2008. BlueCrest
AllBlue now has assets of £904m
across its three share classes, while
BH Macro has a combined £1.17bn,
according to data from RBS.
BlueCrest AllBlue placed a total of
52.6m new shares with its investors,
equivalent to just under a tenth of its
share capital. It had previously raised
£101m in December last year and
£349m in June.
Mark James, a managing director
in the investment funds team at RBS,
UniCredit starts hunting for permanent August car output surges
chief after Alessandro Profumo quits due to export orders rise
▲
BANKING
ITALY’S biggest bank UniCredit took a
first step in picking a replacement for
its chief executive yesterday, who
resigned this week after a power clash
with shareholders.
The board’s strategic, governance
and remuneration committees began
tral bank earlier this week showing
approvals levels at a 16-month low.
The British Bankers’ Association
(BBA), whose members account for
about two-thirds of mortgage lend-
ing, said mortgage approvals fell 22.3
per cent on the year in August to
31,767. This was down from 34,219 in
July and the lowest since April 2009,
when house prices were at their low-
est ebb.
The BBA also said that net lending
to non-financial businesses contin-
said the placings prove “there is still
considerable demand for listed
hedge funds, despite the growth of
competing structures such as UCITS
III”.
“It shows there is strong support
for funds managed by a single hedge
fund group, such as BlueCrest, which
offer exposure to a range of hedge
fund strategies,” he added.
ANALYSIS l BlueCrest AllBlue
168.5 p 167.60
23 Sep
167.5
166.0
165.5
164.5
25 Jun 23 Jul 20 Aug 17 Sep
to prepare the criteria for a successor
to Alessandro Profumo, but there is
still no list of candidates, said a
source close to the issue.
Profumo quit on Tuesday amid
board rancour over Libyan stake-
building and flagging results.
The departure of Profumo,
Europe’s longest-serving bank chief
ued to fall and was down by £1bn in
August. Net consumer credit lending
remained flat.
The figures are likely to reinforce
concern among Bank of England poli-
cymakers that tight lending condi-
tions may hold back Britain’s
economic recovery.
Recent surveys show house prices
have started falling again and ana-
lysts said a rise in the number of
properties being put up for sale
would also weigh on the market.
NIKE DOES IT
NIKE, owner of the iconic Niketown store on Oxford Street (pictured), posted a higher
quarterly profit yesterday on strong demand in North America, China and the emerging
markets. Net income in the sportswear giant’s first quarter rose nine per cent to $559m
(£356m) on revenues up eight per cent at $5.18bn.
executive, has left UniCredit rudder-
less as it struggles to recover from the
financial crisis and a series of acquisi-
tions. Chairman Dieter Rampl is act-
ing chief executive and has vowed to
replace Profumo in a matter of weeks.
The Bank of Italy yesterday added
its voice to those calling for a speedy
succession.
Major inflation risks should ease,
says MPC’s chief economist Dale
▲
ECONOMY
DEBATE over the Bank of England’s
Monetary Policy Committee (MPC)
has entered a particularly aggressive
and vigorous phase as policy-makers
struggle to assess the relative
strength of upside and downside
risks to inflation, Bank chief econo-
mist Spencer Dale said yesterday.
Dale said the policy debate was
particularly aggressive at the
Picture: Micha Theiner/City A.M.
AUTOMOTIVE
CAR production in August was 37.3
per cent higher than a year earlier, and
year-to-date output was up by an annu-
al 41.3 per cent, the Society of Motor
Manufacturers and Traders (SMMT)
said yesterday.
SMMT said carmakers turned out
CITYA.M. 24 SEPTEMBER 2010
moment as MPC members strove to
work out whether risks of above or
below target inflation were predomi-
nating.
The Bank currently forecasts that
consumer price inflation of 3.1 per
cent should fall back to its target
level of two per cent by the end of
next year, but this hinges on contin-
ued economic growth and ongoing
public confidence that the central
bank has not lost control of prices.
Danaher drops
$1bn sale of
defence unit
▲
DEFENCE
DIVERSIFIED US manufacturer
Danaher has dropped plans to sell its
aerospace and defence business for
more than $1bn (£640m) after no
buyer emerged for the entire busi-
ness.
Danaher, which hired Goldman
Sachs earlier this year to solicit buy-
ers for the business that makes avia-
tion safety equipment and weapons
platforms, had received interest only
for different parts of the unit, but it
did not want to break up the busi-
ness.
Danaher has not entirely ruled out
the possibility of splitting up the divi-
sion to several different buyers, but it
is less likely because any piecemeal
sale would take longer.
Danaher, whose wide range of
products includes dental and med-
ical technology, speciality tools and
equipment for testing water quality,
generated $11.2bn of revenue in
2009.
Its aerospace and defence business,
which accounts for $700m to $800m
in annual sales, makes a broad array
of products including smoke detec-
tion and fire systems.
77,882 vehicles in August, some 57,005
of which were destined for export, a
rise of 51.8 per cent on the year.
“UK vehicle and engine production
continues to lead a strong manufac-
turing recovery,” said SMMT chief exec-
utive Paul Everitt.
Commercial vehicle output rose
22.1 per cent on the year.
CITYA.M. 24 SEPTEMBER 2010
US property sales stabilising... ... but unemployment
▲
PROPERTY
BY MATTHEW WEST
SALES of existing homes in the US
rose last month following a big cor-
rection in July, a new report said yes-
terday.
The National Association of
Realtors (NAR), the US trade body rep-
resenting estate agents, said existing-
home sales increased 7.6 per cent to a
seasonally adjusted annual rate of
4.13m in August from an upwardly
revised 3.84m in July. But they
Songbird is in
talks to build
Walkie Talkie
▲
PROPERTY
BY MARION DAKERS
SONGBIRD, the property company
that owns most of Canary Wharf, has
confirmed it is in talks with Land
Securities to resurrect the abandoned
Walkie Talkie project on Fenchurch
Street .
“We are in advanced discussions
about a 50-50 joint venture, and we
are expecting a decision in the near
term,” Songbird secretary John
Garwood told City A.M. yesterday.
The 36-storey skyscraper will cost
an estimated £300m to build and, if
Songbird and its subsidiary Canary
Wharf Group sign up, will be the
group’s second project in the City.
“Drapers Gardens was a good tem-
plate for us,” Garwood said of
Songbird’s 20 per cent stake in the
Credit Suisse commodity star quits to Rio Tinto clears the way
set up hedge fund after Obama reforms for $347m Iceland update
▲
BANKING
A TOP Credit Suisse commodity trad-
er is leaving the bank, along with a
team of proprietary traders, to set up
a hedge fund backed by $150m
(£95m) from private investment firm
Blackstone Group,
The move by George “Beau” Taylor,
a rainmaker renowned for making
remain 19 per cent below the 5.1m
sales in August 2009.
Lawrence Yun, NAR chief econo-
mist, said home sales would remain
subdued. “The housing market is try-
ing to recover on its own power with-
out the home buyer tax credit.
Despite very attractive affordability
conditions, a housing market recov-
ery will likely be slow and gradual
because of lingering economic uncer-
tainty,” he added.
US mortgage lender Freddie Mac
said the average interest rate for a 30-
project, which generated an initial
yield of 5.2 per cent when it was sold
to Evans Randall in August. “It estab-
lished a calling card for us, as it’s the
first time we’ve built outside Canary
Wharf, and it showed we had the
capacity.”
The firm said it expects JP Morgan
to decide whether to stay in Canary
Wharf in the next few months.
Songbird also announced a £140m
share issue yesterday, in order to refi-
nance a £135m loan facility from
Commerzbank.
Its half-year results showed that the
value of Songbird’s net assets rose 2.1
per cent to £1.22bn, while underlying
pre-tax profit in the six months to
June to £13.1m, from fell from
£89.7m last year.
Songbird’s Aim-listed shares closed
down 3.5 per cent at 152p.
big bets on energy markets at a series
of Wall Street firms, is the latest
response to the Obama administra-
tion’s decision to crack down on so-
called “speculative” trading.
Eight people will be leaving the
bank, including Taylor, the global
head of commodities arbitrage trad-
ing, and Trevor Woods, head of ener-
gy arbitrage trading.
year fixed-rate mortgage fell to a
record low of 4.43 per cent in August
from 4.56 per cent in July. The average
rate was 5.19 per cent in August 2009.
The average house price in the US
now stands at $178,600, up 0.8 per
cent from a year ago. Distressed
homes sales rose two per cent from a
month earlier to 34 per cent of all
sales in August. They accounted for 31
per cent of all sales the year before.
Yun said the figures were proof
that the US housing market had been
“stabilising” over the past year.
The Walkie Talkie could transform London’s skyline
ADVISERS
JP MORGAN
ROTHSCHILD
MORGAN STANLEY
When Songbird arranged a £1bn emer-
gency finance package in 2009, it asked
JP Morgan Cazenove, Rothschild and
Morgan Stanley to advise. Given the
firm’s subsequent success, it is unsur-
prising that it has stuck with the same
advisers for its latest share offering.
Heading the team at Morgan Stanley
is Nick White, head of international
alternative investments at the private
Credit Suisse and Blackstone
declined to comment on the moves.
Investment banks like Credit Suisse
with proprietary trading desks are
taking a hard look at their trading
businesses and whether they comply
with the so-called Volcker rule, part
of financial reforms designed to rein
in banks from making risky bets with
their own capital.
edges up in 27 states
▲
US ECONOMY
MORE than half of US states saw their
unemployment rates rise in August,
the largest number in six months, as
hiring weakened across the country.
Overall, the economy lost 54,000
positions in August and the unem-
ployment rate rose to 9.6 per cent
from 9.5 per cent in July. Private
employers added a net total of only
bank. White is responsible for more
than $16bn (£10.2bn) of alternative
investments across the EMEA region.
The Rothschild team is headed up by
Duncan Wilmer, who has been with the
bank for 15 years. As well as working
with Songbird, he has advised property
investment firms Minerva and Liberty
International. He is also a keen runner,
and completed this year’s London
Marathon in under four hours.
Bronson Albery heads the team at
JP Morgan Cazenove. His recent deals
include Metric Property’s IPO and
Great Portland’s £175m rights issue.
Advising Songbird on legal matters
is Slaughter and May, while Nicholas
Holmes at Ashurst is advising the bank-
ing cohort.
MINING
RIO Tinto Alcan has finalised a deal
with an Icelandic power firm to begin
a $347m (£221m) update of its alu-
minium smelter in the country.
The London-listed miner has signed
a contract with Landsvirkjun to allow
it to use more power at the smelting
site for the next 26 years, boosting
News 15
67,000 jobs.
The the US Labour Department
said the unemployment level fell in
only 13 states while it was unchanged
in 10 states and Washington, DC,
The figures were worse than the
previous month, when the unemploy-
ment rate increased in only 14 states
and fell in 18. It was the largest num-
ber of states to record an increase in
the jobless total since February.
Phoenix rises
from ashes
IN THE depths of the economic
crisis – which hit the property sec-
tor more than most – many
thought the Walkie Talkie would
never be built. News that Land
Securities and Songbird are press-
ing ahead with plans to resurrect
it, like a phoenix from the ashes,
show just how much things have
improved.
Songbird’s results suggest its
optimism is not without basis. Its
adjusted net asset value (NAV) of
178p missed analyst expectations
of around 185p, but elsewhere
things look good. The value of its
portfolio rose 4.3 per cent in the
first half, while occupancy stands
at an impressive 96.4 per cent. Its
open offer to raise £140m, getting
its creditors off its back, was well
received.
Its shares might trade at an 11
per cent discount to NAV – a
smaller discount than many
rivals – but its focus on London
and list of institutional tenants
mean this stock will continue to
outperform.
BOTTOMLINE
Analysis by David Crow
capacity by 20 per cent to around
230,000 tonnes.
“The $347m investment was facili-
tated by working together with local
stakeholders to ensure the long-term
sustainability of the smelter. This
investment is great news for Rio Tinto
Alcan and for Iceland,” said Jean-
Philippe Puig, Rio’s president of met-
als in EMEA.
 16 News CITYA.M. 24 SEPTEMBER 2010

Blockbuster files
Energy deals buoy
ANALYSIS l Global M&A Volumes Annually
4,500 Value US$ bln
4,164
Global ($bln)

for bankruptcy
4,000
US Target ($bln) 3,603

best quarter for

3,500 3,397 Europe Target ($bln)
Asian Pac. ex Japan Target ($bln)

over $1bn debts 3,000

2,500
2,679
2,882

M&A in two years

2,058
2,000 1,877
▲

MEDIA 1,688 1,678

1,500 1,346
THE US arm of video and games 1,204
rental store Blockbuster filed for 1,000
bankruptcy yesterday in an attempt
to cut its debts and restructure its FINANCIAL SERVICES Third quarter activity this year

▲
500
business. BY ALASDAIR PEOPLES remained stable, down one per cent
The company has been struggling 0
from the previous three months at
to meet payments on debts of $1bn 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 THE VALUE of global mergers and $201bn – yet this represents a 41 per
(£637m). Agreements with its credi- acquisitions (M&A) has hit $1,678bn cent rise from the third quarter of
tors will now allow the company to ANALYSIS | WORLDWIDE M&A RANKINGS (£1.068bn) so far this year, up 21 per 2009. Despite positive global figures,
reduce the debt to $100m. 2010 YTD 1 Jan - 30Sep Financial Adviser Deals Value No. cent from the same time last year, European M&A announced in the
Blockbuster said the bankruptcy Rank 09 Rank US$ Deals Thomson Reuters said in its review third quarter of 2010 was worth a dis-
did not include its non-US operations. for the third quarter of 2010. appointing $144bn, down 15 per cent
It has some 4,000 stores in the UK, 1 2 Goldman Sachs & Co 391,791.6 255 Third quarter activity is up 6.8 per from the previous quarter.
Canada, Denmark, Italy and Mexico. 2 4 JP Morgan 344,116.6 216 cent from the previous quarter at Wall Street investment banking
Jim Keyes, Blockbuster’s chief exec- $599bn, marking the strongest quar- giant Goldman Sachs took the top
3 1 Morgan Stanley 340,113.4 276
utive, said the company would now terly growth for worldwide M&A position in the global M&A advisers’
be able to recapitalise its balance 4 5 Credit Suisse 270,684.0 216 since the third quarter of 2008. rankings with 255 deals, up from sec-
sheet and transform its business 5 8 Bank of America Merrill Lynch 257,160.9 170 Driving the deal flow was the ener- ond last year, ahead of Morgan
model to “meet the evolving prefer- gy and power sector, with $349bn of Stanley and JP Morgan.
ences of our customers,” 6 7 Deutsche Bank AG 234,159.0 180 deals announced in the first nine In Europe, JP Morgan leads the
Blockbusters was slow to react to 7 11 Barclays Capital 230,191.9 103 months of 2010, up 65 per cent on the rankings for the first nine months of
competition from the online rental same period a year earlier. the year, up from ninth place last
market. It launched its own online 8 9 UBS 192,227.8 185 M&A deals by US firms have also year.
subscription service in 2004 but was 9 6 Lazard 175,895.6 193 seen an encouraging rise in deals over The most high profile deal of the
already several years behind the US 10 3 Citi 171,431.2 121 the past nine months, reaching a year, worth an estimated $43bn, is
market leader, Netflix, which total of $576bn, up 13.7 per cent from the ongoing takeover attempt of
launched in 1999. - - Industry total 1,677,668.9 28,125 the first nine months of 2009. Potash Corp by BHP Billliton.

WORLD’S BIGGEST WINDFARM OPENS IN KENT

THE world’s largest
offshore wind farm
United Utilities sale
raises up to £600m
opened seven miles
off the coast of
Thanet in Kent yes-
terday. The project
can generate 300
megawatts of
wind-powered ener-
gy – enough to
power 200,000 ENERGY sales are completed in the second its debt portfolio, we are well posi-
▲

homes, according BY MARION DAKERS half of the financial year, and tioned to deliver outperformance
to energy secretary added it will now shift focus to its over the 2010-15 regulatory peri-
Chris Huhne. UNITED Utilities said yesterday it core business of supplying water od.”
Swedish energy will net around £600m from sell- and sewage services to around 7m The group said it has financial
company ing most of its non-regulated busi- people in the north west of headroom to cover its liabilities
Vattenfall, which nesses, as it announced trading in England. until the summer of 2012, but that
spent more than line with expectations. The company said yesterday ongoing infrastructure work
two years building The UK’s largest listed water trading was in line with expecta- means capital expenditure will
the 100-turbine company has agreed to sell twelve tions for the six months to remain high this year.
wind farm, is one operations since April, including September. However, it expects The coalition’s changes to corpo-
of the biggest wind its water and electricity meter underlying profit to be lower than ration tax will mean a deferred tax
power operators in business MeterFit, a stake in con- last year, mostly due to a 4.3 per credit of £50m in the next finan-
Europe. tracts with Southern Water and cent effective drop in energy bills cial year, the firm said, with a sav-
three Scottish private finance ini- following a price review by Ofwat. ing of more than £200m during
tiatives, with a total enterprise Chief executive Philip Green the five-year life of the Parliament.
value of £600m. said: “We believe that, with the Shares in the blue-chip firm
United Utilities said it will rein- group’s consistent focus on its closed 0.5 per cent down at 573p
vest the money once most of the core activities and the low cost of yesterday.
PARK LANE CITY APARTMENTS
WE HAVE AN URGENT REQUIREMENT FROM A BANK
THAT NEEDS 1 & 2 BED APARTMENTS FOR A LARGE
INTAKE OF ANALYSTS IN THE BISHOPSGATE AREA.
African Minerals suffers
•NO MORE THAN 10 MINUTES WALK FROM LIVERPOOL
STREET STATION
•COMMUNAL AREAS/HALLWAYS MUST BE WELL PRESENTED
AND CLEAN
set-back in Sierra Leone
•WE WILL PAINT & FURNISH THE APARTMENTS IF REQUIRED MINING by China’s Shandong Iron & Steel pointment, but that deals with
▲

•WE WILL MAINTAIN THE APARTMENTS TO A HIGH STANDARD BY DAVID HELLIER
•WE WILL OFFER A 1 OR 2 YEAR CONTRACT TO SUIT YOU
AFRICAN Minerals. the Aim-listed
•INTRODUCE A PROPERTY WE LET TO RECEIVE £100 iron ore and base metals miner
chaired by entrepreneur Frank
Timis, yesterday signalled a delay in
the formation of a joint venture
PHONE: 020 7377 1763 company that is working on a mas-
sive development project in Sierra
Group had been amended. Chinese firms are often delayed.
As a consequence of the renewed
terms, African Minerals will get the ANALYSIS l African Minerals
first part of its payment – $800m– 440 p 387.50
three months later than originally 23 Sep
420
planned. Other stages in the joint
venture process are also being put 400
back.
Timis said: “Both parties have 380

WWW.parklane-cityapartments.com Leone.
The group issued a statement say-
been working hard to complete the
due diligence and finalise workable
360

ing that its memorandum of under- terms.” 340

standing for a $1.5bn (£957m) Numis Securities analyst Cailey
investment in the Tonkolili project Baxter said the news was a disap- 28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
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CITYA.M. 24 SEPTEMBER 2010
Pension funds back FRC code
▲
REGULATION
BY EMMA SADOWSKI
A RAFT of UK pension funds have
come out in support of the Financial
Reporting Council’s (FRC’s) new
Stewardship Code.
Eleven pension funds, collectively
valued at £180bn, have banded
together to back the new code, set out
by the FRC in July.
In a letter sent to the financial
watchdog, the pension funds said
they “welcomed the FRC’s initiative”
and the code’s “potential to enhance
the quality of engagement between
institutional investors and compa-
Petrobras on
track for its
£50.4bn sale
▲
ENERGY
BY HARRY BANKS
BRAZILIAN state oil company
Petrobras has received more than
enough investor interest to sell all
the stock in the biggest share sale in
history in an offer worth up to
£50.4bn, two sources familiar with
the situation said yesterday.
The offer is “comfortably oversub-
scribed” with strong investor
demand, said one of the sources,
though is probably not two times
oversubscribed given the size of the
deal.
A second source said heavy
demand for shares was fuelled by
the strong participation of state pen-
sion funds and institutional
investors.
A large slice of the offer – £27bn –
will go to the Brazilian government,
the company’s controlling share-
holder, in exchange for 5bn barrels
of oil in the newly discovered pre-salt
oilfields, so called because they are
trapped under several kilometres of
seawater, rock and a hard-to-pene-
trate layer of salt.
The company will use the pro-
ceeds to finance the world’s largest
oil investment programme worth
CITY MOVES | WHO’S SWITCHING JOBS
LCCI
The London Chamber of Commerce and
Industry has appointed British Airways boss
Willie Walsh as its new president following an
election at its annual meeting on Wednesday
night.
Walsh, 48, will serve for two years, until
after the 2012 Olympics in London. He has
been chief executive of BA since October 2005,
having also previously spent a period at the
helm of Irish carrier Aer Lingus.
Schroders
The asset management group has hired
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com
nies”.
The BT Pension Scheme
Management, BBC Pension Fund,
RAILPEN Investment, Environment
Agency Pension Fund and the
University Superannuation Scheme
were among some of the largest of
the signatories.
Daniel Summerfield at the
Universities Superannuation Scheme,
said: “The onus is now on institution-
al investors to respond positively and
constructively to the Code if we want
to avoid any further regulation in this
area.”
Regional pension funds, Lothian
Pension Fund, Local Authority
£143bn over the next five years.
The programme will focus on
Brazil’s vast deep water crude
deposits that the South American
nation hopes will turn it into a
major energy exporter.
The company plans to double cur-
rent output to almost 5m barrels per
day of oil equivalent by 2020.
The issue will also go to reinforc-
ing Petrobras’s balance sheet to keep
its indebtedness within its self-
imposed limit of 35 per cent of equi-
ty, thereby safeguarding its valuable
investment grade rating with the
world’s leading credit rating agen-
cies.
This month the firm filed to sell
1.59bn new preferred shares and
2.17bn new common shares - figures
that do not include a “greenshoe”
option that would expand the offer
on extraordinary demand.
The “greenshoe” option could take
the offering to as much as £50.4bn.
Petrobras chief
executive Sergio
Gabrielli is close to
pulling off the world’s
biggest share sale
Tjeerd Voskamp as a senior relationship
director in its global financial institu-
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
Pension Fund Forum, Merseyside
Pension Fund, Northern Ireland Local
Government Officers’
Superannuation Committee,
Strathclyde Pension Fund and the
West Midland Pension Fund were also
involved.
The Stewardship Code is aimed at
creating more transparency over how
investors oversee the companies they
own, with hopes that it will act as a
catalyst for better engagement
between shareholders and compa-
nies.
The FRC has said that it will contin-
uously review the code, a move her-
alded by the pension funds.
BEST OF THE BROKERS
800
ANALYSIS l Wellstream 782.50
p
23 Sep
700
600
500
400
28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
WELLSTREAM
Citigroup has downgraded its rating of
Wellstream from “buy/high risk” to
“hold/high risk” as the premium seems
largely priced in and there is the potential
for a takeover deal to not go through. The
broker prefers to wait and see on what
might happen with the British-based oil
services company.
AstraZeneca files thyroid cancer pill in
both United States and European Union
▲
PHARMACEUTICAL
AN AstraZeneca pill that disappoint-
ed last year in treating lung cancer
has now been submitted for regulato-
ry approval as a treatment for thyroid
cancer, offering the drugmaker a
smaller sales opportunity.
AstraZeneca said the US Food and
Drug Administration (FDA) and the
European Medicines Agency had
Edited by Victoria Bates
tions group.
He joins from Threadneedle Asset
Management, where he spent a decade
in several senior client-facing roles, with
a particular focus on European distribu-
tion in Belgium, Holland and
Scandinavia. While there, he also
launched and headed the firm’s global
financial institutions group.
Ryanair
The airline said yesterday that non-
executive Emmanuel Faber has retired
from its board of directors after eight
years in the role.
Ryanair chief executive Michael
Kennedys makes unique
move to open Miami arm
▲
LEGAL
CITY law firm Kennedys opened up
its first office in America with the
launch of a unit in Miami.
The insurance specialist is set to
open in the Floridian city at the start
of next month in a bid to get closer to
the firm’s Latin American and
Caribbean clients.
It will be the first foray into the
American market for Kennedys, with
the firm choosing an unusual desti-
nation as most law firms target New
ANALYSIS l Debenhams
68
p 64.45
23 Sep
64
60
56
52
28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
DEBENHAMS
Goldman Sachs has updated estimates for
Debenhams. The broker hasn’t changed its
“neutral” rating for the retailer but has
moved its price target from 92.5p to 89.2p.
The broker estimates that risks to the price
target include weaker sales, higher import-
ed costs and stronger competitive pres-
sures in UK retail.
To appear in Best of the Brokers email your research to notes@cityam.com
accepted submissions for vandetanib.
The FDA also granted priority review
status, meaning the agency will make
a decision in early 2011.
The company had previously said it
planned to file in the third quarter of
2010, after presenting promising clin-
ical results.
Patients with advanced medullary
thyroid cancer (MTC) given vande-
tanib experienced a 54 per cent
in association with
O’Leary said: “I would like to sincerely
thank Emmanuel for his significant con-
tribution to successful growth of
Ryanair. He leaves the board with our
sincere gratitude and best wishes for
the future.”
London Capital Group
The spreadbetting, forex, CFD and
broking specialist said yesterday that
non-executive Jack Inglis has stepped
down with immediate effect to pursue
other interests.
Inglis, 47, has been on the board
since April 2007. He is chief executive
of Ferox Capital Management, a London
News 19
York and Washington in the first
instance.
Kennedys said it made the move
because Miami acts as an underwrit-
ing and claims hub for the region. It
won’t practice US law.
Madrid-based partner Alex
Guillamot will re-locate to Miami to
set up the office and will be joined by
associate Paula Jimenez and paralegal
Karla Salguero.
Senior partner Nick Thomas said:
“It’s now time to start supporting
clients from inside this region.”
ANALYSIS l Imperial Tobacco
2,000
p
1,927.00
23 Sep
1,950
1,900
1,850
1,800
1,750
28 Jun 16 Jul 5 Aug 25 Aug 15 Sep
IMPERIAL TOBACCO
After Imperial Tobacco’s pre-close state-
ment, UBS remains happy to be at the low
end of the consensus range since cigarette
volumes appear weaker than expected and
revenue appears to be below the broker’s
growth expectations. The broker maintain
a “neutral” rating and said management
need to outline an organic growth strategy.
reduction in the rate at which their
disease progressed compared to those
taking a placebo, results of a late-
stage study showed.
The medicine had once been seen
as a potential blockbuster but it suf-
fered a big setback after failing to
show an overall survival benefit in
lung cancer, leading AstraZeneca to
pull regulatory filings in that disease
last October.
investment management firm specialis-
ing in convertible bond-themed funds.
Prior to joining Ferox, he spent 15 years
at Morgan Stanley.
JP Morgan
Paul Knox has been appointed to lead
the bank’s private banking wealth advi-
sory practice for the EMEA region.
Knox, formerly head of the bank’s UK
wealth advisory practice, joined JP
Morgan four years ago. He had 25
years of prior experience at the London
bar and with Ernst & Young, where he
was responsible for the private client
services group in London.
+44 (0)20 7557 7245
morganmckinley.com
 Markets&Investment
20 CITYA.M. 24 SEPTEMBER 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 . . . . . . . . . . . . . . . . . . . . . . . .281.90 +0.80 310.00 246.90 Compass . . . . . . . . . . . . . . . . . .540.50 +5.50 574.50 350.10 JPMorgan Emerg Mkts . . . . . . . .579.00 –0.50 587.50 437.10 Sage . . . . . . . . . . . . . . . . . . . . . .256.70 +4.20 262.20 208.20
3i Infrastructure . . . . . . . . . . . . . 113.80 — 115.00 97.00 Cookson . . . . . . . . . . . . . . . . . . .499.30 –10.70 616.00 347.60 Jupiter Fnd Mgmt . . . . . . . . . . . .240.40 +0.90 256.50 180.00 Sainsbury(J) . . . . . . . . . . . . . . . .389.70 –0.80 394.40 307.60
A.B. Foods . . . . . . . . . . . . . . . .1067.00 –1.00 1096.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1417.00* +9.00 1460.00 637.00 Kazakhmys . . . . . . . . . . . . . . . .1428.00* –13.00 1634.00 955.00 Schroders . . . . . . . . . . . . . . . . .1396.00 +23.00 1450.00 1053.00
Aberdeen Asset Man . . . . . . . . . .152.40 +3.50 155.60 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .499.00 –1.50 539.00 381.00 Kesa Electricals . . . . . . . . . . . . .141.10* –1.00 162.00 98.45 Schroders N/V. . . . . . . . . . . . . . 1139.00 +13.00 1187.00 864.00
Admiral. . . . . . . . . . . . . . . . . . .1643.00 –7.00 1686.00 1003.00 Dana Petroleum . . . . . . . . . . . .1793.00 +2.00 1817.00 968.50 .LQJÀVKHU . . . . . . . . . . . . . . . . . .224.90 –4.40 255.00 196.50 Scot. & Sthrn Energy. . . . . . . . . 1133.00* +1.00 1206.00 357.50
Aegis . . . . . . . . . . . . . . . . . . . . .121.20* –2.00 137.30 103.10 Davis Service . . . . . . . . . . . . . . .394.40* +0.30 442.30 356.00 Ladbrokes . . . . . . . . . . . . . . . . .139.50* –2.30 174.29 114.60
Afren . . . . . . . . . . . . . . . . . . . . .106.90 +0.90 111.00 73.00 Debenhams . . . . . . . . . . . . . . . . .65.05 +0.40 90.00 51.95 Lancashire Hldgs . . . . . . . . . . . .555.00* –2.00 560.00 416.70 Scottish Mortgage. . . . . . . . . . . .626.50 –1.00 630.00 475.00
African Barr Gold . . . . . . . . . . . .600.00* –1.00 685.00 520.50 Derwent London . . . . . . . . . . . .1504.00 +12.00 1540.00 1174.00 Land Securities . . . . . . . . . . . . . .625.00* –1.50 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .263.40* +0.90 390.00 244.00
Aggreko . . . . . . . . . . . . . . . . . .1545.00* –24.00 1639.00 664.50 Dexion Absolute . . . . . . . . . . . . .140.00 +0.50 148.00 127.60 Legal & General . . . . . . . . . . . . .101.30* +0.90 105.00 69.05 Serco . . . . . . . . . . . . . . . . . . . . .622.50* +1.50 656.50 485.60
Alliance Trust . . . . . . . . . . . . . . .332.10 +1.10 352.70 292.80 Diageo . . . . . . . . . . . . . . . . . . .1092.00* — 1176.00 930.50 Lloyds Banking Gp . . . . . . . . . . . .75.09 –0.76 79.15 45.30 Severn Trent . . . . . . . . . . . . . . .1344.00 –2.00 1404.00 939.50
AMEC . . . . . . . . . . . . . . . . . . . . .973.50 +17.50 974.50 724.50 Dimension Data . . . . . . . . . . . . . 119.60 +0.10 125.50 59.30 Logica . . . . . . . . . . . . . . . . . . . .125.10* +0.10 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .441.40 +4.80 446.60 341.70
Amlin . . . . . . . . . . . . . . . . . . . . .399.60* –0.50 437.60 350.80 Dixons Retail . . . . . . . . . . . . . . . .23.65 –0.34 39.75 23.11 London Stk Exchange . . . . . . . . .689.00 +2.50 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1462.00* –11.00 1532.00 999.00
Anglo American . . . . . . . . . . . .2550.50 –9.50 3015.50 1846.50 Domino’s Pizza . . . . . . . . . . . . . .472.70 +15.20 481.10 273.10 Lonmin . . . . . . . . . . . . . . . . . . .1693.00 +5.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .566.50 +1.00 700.50 525.50
Antofagasta . . . . . . . . . . . . . . . 1211.00* –3.00 1222.00 699.50 Drax . . . . . . . . . . . . . . . . . . . . . .392.30 +3.80 482.70 321.50 Man . . . . . . . . . . . . . . . . . . . . . .220.00 –1.70 373.60 199.60 Smiths . . . . . . . . . . . . . . . . . . .1206.00 –6.00 1253.00 814.00
Aquarius Platinum . . . . . . . . . . .330.90* +3.50 490.00 211.50 Dunelm . . . . . . . . . . . . . . . . . . . .383.50 +1.30 438.40 303.00 Marks & Spencer. . . . . . . . . . . . .374.50 –2.30 412.70 321.90 SOCO Intl . . . . . . . . . . . . . . . . . .447.00 +4.60 510.00 380.60
ARM Holdings . . . . . . . . . . . . . . .390.80* +4.10 416.40 134.40 Easyjet . . . . . . . . . . . . . . . . . . . .377.90 –8.60 499.90 339.80 Meggitt . . . . . . . . . . . . . . . . . . . .293.50* — 331.00 220.10 Spectris . . . . . . . . . . . . . . . . . .1005.00 –13.00 1043.00 653.00
Ashmore . . . . . . . . . . . . . . . . . . .323.60 +0.40 336.80 215.00 Edinburgh Inv Tst . . . . . . . . . . . .423.20 +0.20 436.00 338.00 Melrose . . . . . . . . . . . . . . . . . . .264.50* +1.80 275.10 160.00 Spirax-Sarco Eng . . . . . . . . . . .1694.00 +5.00 1736.00 1001.00
Astrazeneca . . . . . . . . . . . . . . . 3311.50 –37.50 3389.50 2668.00 Electrocomponents . . . . . . . . . . .232.90 –1.00 246.30 142.90 Mercantile IT . . . . . . . . . . . . . . . .952.50 –4.50 1002.00 822.50
Atkins(Ws) . . . . . . . . . . . . . . . . .734.00* +2.00 801.00 532.50 EnQuest . . . . . . . . . . . . . . . . . . . 114.10 –1.40 125.90 87.35 Michael Page Intl. . . . . . . . . . . . .452.70* –7.20 470.70 314.40 Spirent Comms . . . . . . . . . . . . . .138.10 +0.60 145.10 84.15
Autonomy Corp . . . . . . . . . . . .1767.00 –1.00 2012.00 1278.00 Essar Energy . . . . . . . . . . . . . . .437.60 –6.50 475.90 358.50 Micro Focus . . . . . . . . . . . . . . . .365.20* +0.20 550.00 272.20 Sports Direct Intl . . . . . . . . . . . . .130.90 — 132.00 89.85
Aveva . . . . . . . . . . . . . . . . . . . .1452.00 +23.00 1487.00 856.50 Eurasian Nat Res . . . . . . . . . . . .897.50* –1.50 1276.00 781.00 Millen & Copthorne . . . . . . . . . . .527.50* –1.00 547.00 321.40 SSL Intl . . . . . . . . . . . . . . . . . . . 1158.00 +1.00 1190.00 596.50
Aviva . . . . . . . . . . . . . . . . . . . . .398.90* +1.90 474.00 290.20 Euromoney Inst Inv . . . . . . . . . . .590.00 +7.50 630.00 303.00 Misys . . . . . . . . . . . . . . . . . . . . .286.70 +1.70 295.80 192.60 St James’s Place . . . . . . . . . . . . .282.10 +1.60 296.90 203.40
Babcock International . . . . . . . . .530.50 –17.00 660.50 489.00 Experian . . . . . . . . . . . . . . . . . . .674.00 +5.00 683.00 516.50 Mitchells & Butlers . . . . . . . . . . .300.00 +5.30 343.90 228.30 Stagecoach. . . . . . . . . . . . . . . . .183.40 –0.10 204.90 137.00
BAE Systems . . . . . . . . . . . . . . .337.10 +4.30 389.90 288.10 Ferrexpo . . . . . . . . . . . . . . . . . . .292.40 –1.10 396.20 138.00 MITIE . . . . . . . . . . . . . . . . . . . . .196.90 –2.10 258.00 187.80 Standard Chartered . . . . . . . . . .1862.00* –12.00 1946.00 1366.50
Balfour Beatty . . . . . . . . . . . . . . .265.30 –3.50 304.80 228.60 FirstGroup . . . . . . . . . . . . . . . . .347.90 –1.60 443.90 331.20 Mondi . . . . . . . . . . . . . . . . . . . . .504.00 +3.50 519.00 300.70 Standard Life . . . . . . . . . . . . . . .227.70* +0.40 237.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .306.25 –0.45 394.25 253.40 Foreign & Col Inv Tst. . . . . . . . . .283.60 –0.60 297.20 248.70 Monks Inv Tst . . . . . . . . . . . . . . .320.60 –0.30 324.00 265.00 SuperGrp . . . . . . . . . . . . . . . . .1206.00 –15.00 1312.00 499.00
Barratt Development . . . . . . . . . .101.90 +0.30 184.92 89.10 Fresnillo . . . . . . . . . . . . . . . . . .1217.00 –1.00 1240.00 647.00 Morrison Wm . . . . . . . . . . . . . . .299.70 –1.30 307.10 255.00 TalkTalk . . . . . . . . . . . . . . . . . . .141.40 +0.40 147.10 106.60
BBA Aviation . . . . . . . . . . . . . . .193.30* –0.50 220.00 145.90 G4S . . . . . . . . . . . . . . . . . . . . . .256.10* –0.30 285.70 217.70 Murray Intl Tst . . . . . . . . . . . . . . .874.50 –7.00 907.50 720.00 Talvivaara Mining . . . . . . . . . . . .446.30 +1.30 501.50 341.40
Bellway. . . . . . . . . . . . . . . . . . . .588.50 +5.00 897.50 510.00 Genesis Emerging Mkts Fd . . . . .502.00 –2.50 510.50 370.00 National Express. . . . . . . . . . . . .237.50 +1.50 258.60 155.86 Tate & Lyle . . . . . . . . . . . . . . . . .462.00 +0.40 509.00 388.00
Berkeley . . . . . . . . . . . . . . . . . . .817.00 –2.00 949.50 735.00 GKN . . . . . . . . . . . . . . . . . . . . . .164.00* +1.00 172.60 100.40 National Grid . . . . . . . . . . . . . . .548.50 +1.50 607.65 474.80 Taylor Wimpey . . . . . . . . . . . . . . .28.87 –0.12 46.34 24.29
BG . . . . . . . . . . . . . . . . . . . . . . 1137.00 +20.50 1248.00 966.90 GlaxoSmithKline . . . . . . . . . . . .1259.00* –13.00 1347.00 1088.00 Next . . . . . . . . . . . . . . . . . . . . .2169.00 –9.00 2360.00 1726.00
BHP Billiton . . . . . . . . . . . . . . .2000.00* — 2346.00 1583.50 Great Portland Estates . . . . . . . .334.20 –2.50 339.80 236.60 Northumbrian Water . . . . . . . . . .338.50 –0.60 353.00 225.20 Telecity . . . . . . . . . . . . . . . . . . . .510.00 +3.50 542.50 311.30
BlackRock Mining . . . . . . . . . . . .623.00 –1.00 654.50 474.00 Greene King . . . . . . . . . . . . . . . .419.60 +2.20 484.00 372.50 Ocado Grp . . . . . . . . . . . . . . . . .140.00 — 169.00 132.00 Templeton Emrg Mkts . . . . . . . . .600.50 –1.50 605.00 448.50
BlueBay . . . . . . . . . . . . . . . . . . .339.40 –3.40 393.00 251.00 Halfords . . . . . . . . . . . . . . . . . . .440.80 +3.20 562.50 339.00 Old Mutual . . . . . . . . . . . . . . . . .137.90 +0.10 140.50 94.75 Tesco . . . . . . . . . . . . . . . . . . . . .433.70 –2.20 454.90 368.40
Bluecrest Allblue GBP . . . . . . . . .167.60 +1.00 169.00 144.10 Halma . . . . . . . . . . . . . . . . . . . . .306.80 –2.50 320.50 207.00 Partygaming . . . . . . . . . . . . . . . .280.70 –5.60 339.70 205.80 Thomas Cook . . . . . . . . . . . . . . .186.00* –2.20 277.20 172.30
Booker . . . . . . . . . . . . . . . . . . . . .47.96 –0.32 49.99 37.50 Hammerson . . . . . . . . . . . . . . . .389.10* +1.90 460.30 332.20 Pearson . . . . . . . . . . . . . . . . . . .994.50 –0.50 1069.00 751.50 Tomkins . . . . . . . . . . . . . . . . . . .324.40 +0.20 325.70 155.00
BP . . . . . . . . . . . . . . . . . . . . . . .405.10 –1.15 658.20 296.00 Hargreaves Lansdown . . . . . . . .440.00* — 478.00 259.40 Pennon . . . . . . . . . . . . . . . . . . . .585.00* –1.00 616.50 440.40 Travis Perkins . . . . . . . . . . . . . . .823.50 –9.50 915.00 647.50
Brit Insurance . . . . . . . . . . . . . .1025.00 +7.00 1045.00 709.00 Hays . . . . . . . . . . . . . . . . . . . . . .108.70 –1.50 119.00 82.50 Persimmon . . . . . . . . . . . . . . . . .398.90 +0.50 520.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .223.60* –1.20 313.90 189.20
British Airways . . . . . . . . . . . . . .239.70 –0.30 255.80 172.40 Henderson . . . . . . . . . . . . . . . . .123.70* –6.50 157.80 112.10 Petrofac . . . . . . . . . . . . . . . . . .1397.00* +28.00 1446.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .395.00 –2.90 436.20 261.20
British Amer. Tob . . . . . . . . . . .2393.00* +2.00 2418.50 1832.00 Heritage Oil. . . . . . . . . . . . . . . . .312.10 +1.90 585.00 298.20 Petropavlovsk . . . . . . . . . . . . . .1209.00 +7.00 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1265.00 –12.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .456.10 +0.70 467.90 338.50 Hikma Pharma . . . . . . . . . . . . . .702.00* –18.50 813.00 443.00 Phoenix Group . . . . . . . . . . . . . .680.00* –23.50 775.00 550.50 UK Commercial Prop. . . . . . . . . . .79.80 –0.85 84.90 69.10
British Land . . . . . . . . . . . . . . . .464.50 +0.50 515.00 416.00 Hiscox . . . . . . . . . . . . . . . . . . . .362.80* +1.80 371.10 299.60 Premier Farnell . . . . . . . . . . . . . .257.00* –1.00 272.60 140.60 Ultra Electronics . . . . . . . . . . . .1660.00* +5.00 1774.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .467.30 –2.40 518.00 340.00 Hochschild Mining . . . . . . . . . . .423.50* +0.30 438.30 220.00 Premier Oil . . . . . . . . . . . . . . . .1654.00 +5.00 1703.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1790.00 –11.00 2024.00 1662.00
Brown(N.) . . . . . . . . . . . . . . . . . .241.10 +1.50 284.30 204.80 Home Retail . . . . . . . . . . . . . . . .210.10 –0.80 326.30 208.30 Provident Financial . . . . . . . . . . .820.00 +0.50 986.00 795.00
BSkyB . . . . . . . . . . . . . . . . . . . .708.00 +4.50 732.00 521.00 Homeserve . . . . . . . . . . . . . . . . .468.20 +2.90 502.00 435.40 Prudential . . . . . . . . . . . . . . . . . .609.00* –4.00 665.00 475.70 United Utilities . . . . . . . . . . . . . .573.00 –0.50 620.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .139.10 +0.20 151.00 108.40 HSBC Hldgs . . . . . . . . . . . . . . . .664.00* — 766.80 595.20 PZ Cussons . . . . . . . . . . . . . . . .360.30* –6.50 382.70 226.50 Utd Business Media . . . . . . . . . .615.00* –9.50 656.50 408.30
Bunzl . . . . . . . . . . . . . . . . . . . . .758.00 –7.50 784.50 613.50 Hunting . . . . . . . . . . . . . . . . . . .626.50 –3.00 659.50 429.10 Qinetiq . . . . . . . . . . . . . . . . . . . . 110.40 +1.50 179.10 103.50 Vedanta Resources . . . . . . . . . .2260.00 +21.00 2967.00 1795.00
Burberry . . . . . . . . . . . . . . . . . . .945.50 –7.00 958.50 476.90 ICAP . . . . . . . . . . . . . . . . . . . . . .430.20 +1.10 478.30 291.70 Randgold Resources. . . . . . . . .6560.00 +70.00 6620.00 3930.00 Victrex . . . . . . . . . . . . . . . . . . .1227.00 –3.00 1320.00 726.50
Cable & Wire Comms . . . . . . . . . .60.00 –0.45 150.00 53.00 IG . . . . . . . . . . . . . . . . . . . . . . . .496.70* –0.60 532.00 291.00 Reckitt Benckiser . . . . . . . . . . .3495.00* +37.00 3667.00 2938.00 Vodafone . . . . . . . . . . . . . . . . . .161.80 –0.50 164.95 126.50
Cable & Wire Wwide . . . . . . . . . . .74.00 –2.30 94.80 60.05 Imagination Tech Gp . . . . . . . . . .356.40 –5.70 385.00 154.00 Reed Elsevier . . . . . . . . . . . . . . .537.00 –0.50 566.00 454.60 Weir . . . . . . . . . . . . . . . . . . . . .1371.00 –24.00 1459.00 635.00
Cairn Energy. . . . . . . . . . . . . . . .447.40 +2.40 497.60 306.80 IMI . . . . . . . . . . . . . . . . . . . . . . .746.00* –11.00 786.00 410.00 Regus . . . . . . . . . . . . . . . . . . . . . .76.05* +0.30 125.50 64.05 Wellstream Hldgs . . . . . . . . . . . .776.00* –12.00 810.00 429.70
Caledonia Invs . . . . . . . . . . . . .1625.00 +7.00 1759.00 1496.00 Imperial Tobacco. . . . . . . . . . . .1943.00 +18.00 2159.00 1728.00 Renishaw . . . . . . . . . . . . . . . . .1000.00* –11.00 1038.00 479.00 WH Smith . . . . . . . . . . . . . . . . . .447.80 –1.60 551.00 392.20
Capita . . . . . . . . . . . . . . . . . . . . .757.50* –7.50 829.50 693.00 Inchcape. . . . . . . . . . . . . . . . . . .297.60 +1.40 347.00 235.00 Rentokil Initial . . . . . . . . . . . . . . .102.80 –0.10 140.20 91.15 Whitbread . . . . . . . . . . . . . . . . .1594.00 +1.00 1645.00 1141.00
Capital & Counties . . . . . . . . . . .131.50 +0.40 137.50 99.60 Informa . . . . . . . . . . . . . . . . . . . .409.10 –0.10 439.40 263.30 Resolution . . . . . . . . . . . . . . . . .229.70* –4.30 264.80 220.10 William Hill . . . . . . . . . . . . . . . . .174.50 –3.40 217.80 160.50
Capital Shopping Centres . . . . . .364.70 –2.10 559.00 300.10 Inmarsat . . . . . . . . . . . . . . . . . . .695.50 –4.00 831.00 526.00 Rexam . . . . . . . . . . . . . . . . . . . .307.20* –3.10 348.80 253.40 Witan Inv Tst . . . . . . . . . . . . . . . .460.50 –2.00 487.00 396.30
Carillion . . . . . . . . . . . . . . . . . . .315.00* +0.10 361.90 263.90 Intercontl Hotels . . . . . . . . . . . . 1114.00* –5.00 1244.00 762.50 Rightmove . . . . . . . . . . . . . . . . .736.50 +11.50 796.50 456.90
Carnival . . . . . . . . . . . . . . . . . .2487.00 –5.00 2937.00 1876.00 Intermediate Capital . . . . . . . . . .293.90 –0.10 308.30 233.50 Rio Tinto . . . . . . . . . . . . . . . . . .3653.00 +0.50 4104.00 2435.00 Wolseley . . . . . . . . . . . . . . . . . .1489.00 +6.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .339.80* –0.10 394.60 303.20 Intertek . . . . . . . . . . . . . . . . . . .1828.00 –15.00 1863.00 1136.00 RIT Capital Partners . . . . . . . . . 1119.00 –2.00 1215.00 940.00 Wood Group (John). . . . . . . . . . .420.90* +9.20 420.90 279.60
Centamin Egypt . . . . . . . . . . . . .185.30 –2.80 194.40 92.00 Intl Personal Fin . . . . . . . . . . . . .260.60* –0.70 283.00 137.00 Rolls Royce . . . . . . . . . . . . . . . .575.00 –1.50 631.50 434.50 WPP . . . . . . . . . . . . . . . . . . . . . .707.50 –2.00 744.00 520.50
Centrica . . . . . . . . . . . . . . . . . . .332.90 –2.20 347.00 236.30 Intl Power . . . . . . . . . . . . . . . . . .387.40 +2.70 396.80 248.20 Rotork . . . . . . . . . . . . . . . . . . .1657.00* –10.00 1712.00 1088.00 Xstrata . . . . . . . . . . . . . . . . . . .1209.00* +10.50 1344.50 815.00
Charter Intl . . . . . . . . . . . . . . . . .657.50 +1.50 855.50 563.50 Invensys . . . . . . . . . . . . . . . . . . .283.50 +1.80 350.30 224.90 Royal Bank Of Scot . . . . . . . . . . . .47.96 +0.46 58.95 28.25 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .2961.00 –6.00 3711.00 2363.00 Investec . . . . . . . . . . . . . . . . . . .494.60 +1.10 565.00 411.50 Royal Dutch Shell A . . . . . . . . .1893.50 +4.50 2068.50 1621.00
Close Bros . . . . . . . . . . . . . . . . .716.00 +0.50 806.50 657.00 ITV . . . . . . . . . . . . . . . . . . . . . . . .56.70 –0.20 71.75 41.04 Royal Dutch Shell B . . . . . . . . .1836.00 +5.00 1997.50 1550.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .231.90 –3.30 278.60 205.50 Jardine Lloyd Thompson. . . . . . .583.00* –8.00 604.50 420.70 RSA Insurance . . . . . . . . . . . . . .129.90* –0.60 142.00 114.10
COLT Group . . . . . . . . . . . . . . . . 117.60 –3.20 144.20 107.70 Johnson Matthey . . . . . . . . . . .1744.00 –6.00 1814.00 1302.00 SABMiller . . . . . . . . . . . . . . . . .1991.00 –10.00 2090.00 1450.00 www.interactivedata.com

FTSE slides as weak drugmakers and Wall Street falls on poor

banks offset rally by mining and oil firms unemployment figures
Weak drugmakers were the main Integrated oils were the best blue despite low trading volume, which

THELONDON drag for the blue chips, with

AstraZeneca and Shire down 1.1 and
0.8 per cent, respectively, after Exane
chip performers, with BG Group
adding 1.8 per cent and Royal Dutch
Shell ahead 0.2 per cent.
THENEW YORK raised questions about the rally’s
stamina.
Thursday’s volume was very light,
REPORT BNP Paribas cut ratings for both in a
sector review.
The broker upgraded its stance on
Miners saw some support led by
gold miner Randgold Resources up
1.1 per cent, while Xstrata and
REPORT with 7.21 billion shares traded on the
New York Stock Exchange, the
American Stock Exchange and the

B
ritain’s leading share index GlaxoSmithKline but the stock still Vedanta Resources both took on 0.9 Nasdaq, far below last year’s estimat-

U
ended slightly lower yesterday, fell one per cent on concerns that US per cent. S stocks fell yesterday after a ed daily average of 9.65 billion shares.
rallying late on in tandem with and European regulators were set to Petrofac was the top blue chip riser, weak reading on the labour The Dow Jones industrial average
a turnaround on Wall Street pull its controversial diabetes drug up 2.1 percent, while Amec gained 1.8 market dropped stocks through ended down 76.89 points, or 0.72 per
after US existing home sales data, Avandia off the market. per cent. a key technical level, validating cent, at 10,662.42. The Standard &
with firmer oils offset by weak drug- Banks were also big blue chip fall- Fund manager Schroders was also the worries of those who thought the Poor’s 500 Index finished down 9.45
makers and banks. ers, with Lloyds Banking Group and a blue chip riser, up 1.7 per cent recent rally was flimsy. points, or 0.83 per cent, at 1,124.83.
By the close, the FTSE 100 was Barclays off one per cent and 0.3 per- helped by rumours of sector consoli- Major indexes were little changed The Nasdaq Composite Index fell 7.47
down 4.83 points or 0.1 per cent at cent, respectively, as uncertainty over dation moves. for most of the day before the S&P 500 points, or 0.32 per cent, at 2,327.08.
5,547.08, its third consecutive session what steps governments will need to Despite the recent retreat, the FTSE broke below 1,130, the high end of the Jobless claims unexpectedly rose in
of losses since hitting its highest close take to sustain the economic recovery 100 remains 700 points higher than summer’s trading range. Investors the latest week, a sign the labour mar-
since late April on Monday. weighed. its 2010 low in early July. had hoped that the level would hold ket still faces headwinds.
CITYA.M. 24 SEPTEMBER 2010
Simplicity is often a virtue
Don’t let your financial adviser
sell you a product you don’t
understand, writes Juliet Samuel
W
ITH markets still directionless
and a second-half slowdown
looming, those with savings are
increasingly looking into more
exotic ways to preserve their nest-egg. The
desire for safety combined with sinking
government bond yields has fed demand
for a series of structured products for pri-
vate investors – that is, investment vehi-
cles that promise a defined return by
tracking an index and protecting against
loss of capital.
But although the retail structured prod-
ucts marking is growing, the complexity of
these tools can often disguise quite average
returns. According to CompareStructured-
Products.com savers sunk nearly £14bn
into this asset class last year, up from
£5.6bn in 2005. And with 45 per cent of
these volumes sold through independent
financial advisors (IFA), it is worth
researching the market so that you can ask
your IFA the right questions – not least,
whether she is receiving a commission for
getting you to buy the product.
As with investment products designed
for professional investors, structured prod-
ucts for private savers come in a variety of
forms. But unlike those made for the pro-
fessional market, these retail products tend
to focus on the safe return of capital rather
than on liquidity and exotic or inaccessible
investment classes. Morgan Stanley’s
Sophie Barnett says: “The current environ-
ment is very conducive to structured prod-
ucts: investors are earning little on cash
savings and there’s a lot of uncertainty.”
One kind of product that has proved par-
ticularly popular in recent months is
known as an “autocallable” – or, in lay-
man’s terms, a “kick out plan”. Under the
intimidatingly labelled “FTSE 100 Kick-Out
Deposit Plan 15”, offered by Investec
through participating IFAs, even just
understanding the options available can
lead to fairly complex cost-benefit calcula-
tions. Under one of the options, the plan
“kicks out” (i.e. matures) on a certain date
provided the FTSE 100 is above the initial
starting level it was at when you bought
the plan. This “kick out” means that
investors received 5.25 per cent non-com-
pounded interest on their capital for each
Get paid more for being unhealthy
With annuities, disclosing an illness often
gets you a better income, says Jessica Mead
A
DEQUATELY funding your retire-
ment has become a hot topic in the
past couple of years, with a combi-
nation of falling interest rates and
pension annuity rates eroding the value of
pension pots. Earlier this month, it was
reported that annuity rates, which are a
key determinant of annual income post-
retirement, had tumbled to a 20-year low –
a pot of £100,000 would only give you an
annual income of £6,350.
Although research from Just Retirement
showed that more than half of those verg-
ing on retirement may be eligible for an
enhanced income as a result of lifestyle and
health conditions, pension consultants
Towers Watson report that only 12 per cent
of all annuities purchased are enhanced.
Enhanced or impaired life annuities
have been available in the UK since 1995
and pay higher rates because people with
certain medical and lifestyle conditions
year the plan has been running before its
maturity – up to its maximum running
time of five years.
If you think the FTSE is likely to go up
over the next five years, this might seem
like a good investment. But there is more
than one catch. If the FTSE has a bad week
on the relevant date during the year of
maturity, you simply receive your capital
back, with no interest, unadjusted for
inflation. And all the dividends from the
investment go to the provider. So if
investors really think the FTSE will go up,
why not buy shares directly and receive the
dividend payments?
OCCASIONAL GOOD DEALS
Still, although a wide range of such prod-
ucts offer little better returns than high-
dividend yielding stocks or a good
corporate bond, a savvy investor might
chance upon an occasional good deal. The
key is to understand the fine print, be sure
to ask your IFA if they are receiving a com-
mission (many will pass the fee they make
onto you instead of adding to your costs),
and be aware that such products always
(such as smoking) statistically have a short-
er life expectancy than those who do not.
Based on the General Lifestyle Survey
2008, Just Retirement estimates that
between 55 and 65 per cent of those retir-
ing might have conditions that qualify
them for an enhanced or impaired life
annuity. These can include smoking, high
blood pressure and diabetes.
So why do so few people currently take
up what is essentially an offer of greater
annual income in retirement? Aston
Goodey, sales and marketing director at
retirement income specialists MGM
Advantage, says that people don’t like to be
seen as unhealthy and are therefore less
likely to request enhanced annuities.
Furthermore, people have been told for
years that disclosing poor health condi-
tions puts them at a disadvantage. In fact,
when it comes to annuities, you really do
need to tell the provider everything if you
Investment | Personal Finance
expose you to counterparty risk – the risk
of the product provider going bust. Once
these risks are fully understood, it might
be worth using a product as part of an
overall investment strategy to, for example,
smooth out volatility in the value of one’s
portfolio. Ian Lowes of the IFA site
CompareStructured-Products.com says:
“We like the fact that it’s a defined return
based on a defined underlying measure-
ment payable at a defined date with
defined risks.”
Even so, investors should be aware that
the deal they are buying includes a fee
taken by the provider. In weighing the ben-
efits, therefore, BestInvest’s Adrian
Lowcock advises: “Look at what you’re pay-
ing for in that fee, compare it against the
protection you’re getting on downside and
the upside potential. Then, with a FTSE
product, take the FTSE as a benchmark
and factor in its annual dividend plus its
expected growth over the lifetime of the
product.” Only then is it possible to work
out if you are being sold a good deal, or an
unnecessarily complicated way of buying
the FTSE.
want to receive an uplift in income.
Nigel Barlow, head of research at Just
Retirement, says that even if you feel
healthy, it is worth getting a medical check-
up before retiring. Once you have
exchanged your pension pot for an annuity,
the terms and rates are fixed. So if you buy
your annuity at a standard rate and then
find out from your doctor a month later
that you have diabetes, high blood pressure
and high cholesterol, you will not be able to
request an income enhancement.
Depending on which annuity you buy, you
can name a beneficiary if you die before
your annuity guarantee period has run out.
Otherwise, the money goes to the provider.
If you think you might be entitled to an
enhanced annuity rate then it is worth
finding an independent financial adviser
who specialises in retirement and annu-
ities. They should be able to help you get
the best rates given your health and
lifestyle.
As a rule of thumb, it is worth getting a
check-up and disclosing all your medical
conditions. It could well lead to a more
comfortable retirement.
21
PERSONAL
FINANCE NEWS
BY JULIET SAMUEL
LONDONERS WORRY ABOUT DEBT...
R3, an insolvency trade body, has conducted
research showing that 40 per cent of adults in
the UK are anxious about their personal debt
levels. Londoners are most affected: 49 per
cent admitted being concerned. Nationwide,
credit card debt is the source of the greatest
worry at 51 per cent, followed by overdrafts
at 32 per cent, and 19 per cent of those asked
were uneasy about loans and mortgages.
Residents of eastern England were the most
carefree: only a third are anxious about debt,
with the top concern among this third being
credit card debt. Despite being the most wor-
ried group, Londoners were generally less anx-
ious about their credit card balances than
about other kinds of debt, with only 39 per
cent citing this particular form of debt as a
source of unease. R3's President, Steven Law
says: “This shows how debt has become a fact
of adult life, starting with a student loan and
graduating to a mortgage, credit cards and
loans. This can lead to years of worries about
financial stability.
...AS NEW CREDIT CARDS ARE LAUNCHED
Even as R3 reports high levels of concern
about credit card debt, the MBNA has
launched two new cards targeting customers
who have racked up expensive balances on
other cards. The first, called the MBNA
Balance Transfer card, allows customers to
transfer a balance for a 2.9 per cent handling
fee during the first 60 days. There is a 0 per
cent APR charge on the transferred balance
Don’t just buy a pre- for the first 16 months, which also applies to
packaged product new purchases for the first three months,
without a thorough after which any additional use of the card
cost-benefit analysis. incurs an APR of 16.8 per cent. The other
card, dubbed the MBNA Dual card, similarly
Picture: GETTY enables customers to transfer a balance for a
fee during the first 60 days (in this case 2.98
per cent) and then to avoid paying interest on
this balance for 12 months. The standard
APR for additional purchases on this card is
18.9 per cent. Will Curley of MBNA said: “We
are committed to enhancing and expanding
our product portfolio when other lenders may
not be.”
CASH ISA OFFERS 2.8 PER CENT INTEREST
Halifax this week launched a new cash ISA
with a variable interest rate of 2.8 per cent
for the first year. An additional 0.2 per cent
AER is available for those who already hold
their main bank account with Halifax, bring-
ing interest to 3 per cent. After the first year,
customers have to move to another arrange-
ment, but there are no withdrawal penalties
on the account. As with all cash ISAs, there is
an annual limit of £5,100 for additions to the
account.
ANALYSIS l A grim list: your annual income goes up the more ill you are
Lung cancer spread to bones £15,454.20
radio & chemo
Lung cancer with radio & chemo £10,782.60
Diabetes with retinopathy & £9,466.68
nephropathy & neuropathy
Diabetes with high blood £8,379.36
pressure and high cholesterol
Source: MGM Advantage
Smoker with high £7,693.12
blood pressure
Smoker £7,626.12
BASED ON: Male, 65 years, Healthy £7,127.88
£100k fund, single life,
paid monthly in advance,
nil guarentee & level
(June 2010) Annual income
 City Focus
22
A fresh take on fund managing
Alan Miller started a firm to try
out his own unusual investment
strategy, writes Kathleen Brooks
H
E MIGHT not look like your typical
rebel, but Alan Miller is one through
and through. First he railed against
British divorce law and, since last
year, he’s turned his sights to the wealth
management industry.
He launched SCM Private in mid-2009
after he became frustrated with the way his
personal money had been managed during
the credit crunch. He decided to ditch fund
managers and set up his own business, with
his wife Gina Miller, to manage his money
and that of other wealthy individuals.
Unlike other money managers he uses
what he calls an “actively passive” invest-
ment strategy. Although he decides what to
invest in, he only uses exchange-traded
funds (ETFs) to execute his investment deci-
sions. What shocked me about meeting
Miller is just how animated he is. His pas-
sion is investing and sitting in his office
near Sloane Square he is like a child talking
about a new toy: “We have low costs so we
don’t have any pressure from outside
shareholders and we share the same portfo-
lio as our clients and pay exactly the same
fees as they do. We don’t get a special dis-
count just because we manage the money.”
Miller’s association with fund manage-
ment goes back 19 years. He helped set up
New Star Asset Management, now part of
Henderson Group, with John Duffield in
2001, where he was in charge of the New
Star Hedge Fund. His record was impecca-
ble, returning 17.5 per cent per annum dur-
ing 10 years of management. However,
Miller only puts 10 per cent of his success
down to his role as fund manager. “A
Outsourcing is not
just for large firms
For many small businesses, it can make sense
to move costs abroad, says Donata Huggins
C
ONSUMERS are used to reading
“made in China” on everything
under the sun. After all, with every
business in need of cutting costs,
outsourcing looks ever more appealing.
But, contrary to what you might think, this
does not just apply to large corporates. The
cost savings for small businesses can also
be huge, allowing entrepreneurs to under-
cut their rivals’ prices and revolutionising
the marketplace. But can those entrepre-
neurs who have invented a niche product
benefit from the advantages of outsourcing
without putting their idea at risk of theft?
Mark Shehan, the owner and inventor of
Squeezeopen packaging, a new London-
based packaging firm, says it can be done.
He took his recent invention to China for
manufacture, reducing initial production
costs from £200,000 to £80,000. He says the
cost of tools and labour in the UK led him
to consider outsourcing. “The comparative
cost of flying out to China, hiring a car and
a translator is nothing compared to the sav-
ings you can make.” And these low costs
are essential in his industry: “Packaging
has to be cheap to be successful,” he says.
Shehan is aware that his design is at risk
| Entrepreneur
Miller invented his
own “actively passive”
way to manage
money.
Picture:
Micha Theiner
/City A.M.
bespoke fund management system just
doesn’t work,” says Miller. “The manager
will always drop some balls.”
Although Miller had family connections
in the City (his great uncle was the chair-
man of Smith Bank, the forerunner of
Merrill Lynch in London) he didn’t choose
the easy route: “I always wanted to join the
City but I didn’t want to use my family con-
nections. I wanted to do it my way.”
In 1986 he answered an advert in the
Evening Standard: Hermes was looking for
an investment analyst. He got the job and
so began Miller’s long career in the fund
management industry, including stints at
Gartmore, Jupiter and then New Star.
It has not been plain sailing for Miller. He
garnered media attention in 2005 when he
challenged the High Court’s decision that
ordered him to pay his ex-wife £5m
although they had been married for less
than three years. The case went all the way
of being stolen given China’s spotty record
on intellectual property. But with due dili-
gence and by using trusted providers, he
thinks it is worth the gamble. He takes pre-
cautions by ensuring that all the design
work is completed in the UK. Another
worthwhile precaution that entrepreneur-
ial inventors can take is to divide the man-
ufacture of the parts between factories.
“Just don’t tell each factory where the
other one is!” says Shehan.
But this might not work for everyone.
Tanya Ewing, owner and inventor of
Ewgeco, a manufacturer of devices that
measure energy consumption, says out-
sourcing does not make sense for small-
scale firms. She says: “Once you have
factored in the opportunity cost, it is just
not worth it for small businesses. Instead of
spending their time managing foreign out-
sourcing, they should focus on their cus-
tomer base. When there’s a problem I can
sort it out straight away by driving to the
factory – it’s an hour down the road!”
So as with every business decision, out-
sourcing is a matter of costs versus
benefits. If the service you need is not
overly specialised and can be bought on the
In association with CITYA.M. 24 SEPTEMBER 2010
FIRING
Q&A
Q.
How do I fire someone
and stay within the law?
A.
Letting someone go can be a bit of a
legal minefield, made more complicat-
ed by the distinctions between differ-
ent types of dismissal and the various
processes that apply. To put it simply, there are
five reasons deemed fair cause for dismissal:
capability, conduct, retirement, redundancy or
a situation where it would be illegal for the
employee to continue to work, such as a driver
losing her license.
Each of these causes demands different
actions on the part of the employer, with
redundancy deemed distinct from firing and
therefore requiring its own special procedures.
But for all of them, Charlotte Pickering, an
employment specialist at Ely Place Chambers,
says: “The clear focus is on the need for
employers to give employees sufficient notice
and evidence of the alleged poor performance.”
Fulfilling this requirement means that the
employer must be sure to conduct a series of
meetings and give the employee opportunities
to appeal. But each circumstance puts slightly
to the House of Lords. He eventually lost different obligations on the employer, so it is
the case. worth looking up detailed descriptions of the
But having a high profile never upset necessary procedures before beginning. Good
him: “I do what I believe in whether it’s in sources for this information include the
my personal life or in investment.” And he Advisory, Conciliation and Arbitration Service
is determined to keep doing what he loves: (ACAS) and the Department for Business,
“I love the intellectual challenge,” he says. Innovation and Skills (BIS) websites.
And this is a business he wants to build up In very serious cases of misconduct employ-
for generations: “We’re not going to sell it – ers are entitled to dismiss the employee with-
we’re lucky we don’t need the cash.” out notice. But Pickering warns that: “If you
dismiss an employee without notice – that is,
CV | ALAN MILLER not paying them for their notice period – it can
amount to a claim of wrongful dismissal if the
Age: 46 but I have a Ferrari.” conduct did not in fact amount to gross mis-
conduct. Gross misconduct can be very difficult
Studied: Accountancy at Reading: “I never got into to define but the first place to look is the
Birmingham books. I prefer films.” employment contract, which often sets out
Lives: London with his wife and Favourite film: “North by examples, such as drinking at work.” Trevor
Bettany, a partner at Speechly Bircham, says it
three children Northwest, by Alfred is particularly important to adhere to the cor-
Car you drive: “I mostly walk, Hitchcock.” rect procedures when dealing with anyone
with a “protected characteristic” such as a
pregnant woman. They have stronger grounds
to accuse you of wrongful dismissal. He also
stresses that you should go back to the con-
tract you have with the employee to ensure
that you have complied with everything you
set out originally. Bettany says: “If you’ve said
you will issue a formal written notice, make
sure you print off the letter – don’t just send an
email. You leave yourself open to criticism.”
Q.
What is best practice?
A.
Mike Emmott, employee relations offi-
cer at the Chartered Institute of
Personnel says there are plenty of
areas of best practice to consider: “Telling
them face-to-face would be a start – not by
email or text.” Offering the employee plenty of
opportunity to discuss the situation with you
and other employees will help ensure they
understand why they are being let go.
Emmott also stresses the importance of “sur-
vivor care” – that is considering those employ-
ees who are not being let go in the case of
redundancy. He says: “It is important that peo-
ple who are staying on are offered a believable
story so they don’t panic and fear for their jobs.
It is also important to handle the process of
the redundancy well since gossiping amongst
the survivors can breed bad blood. Particularly
if they believe that the selection process has
been unfair.”
Donata
Huggins
Moving production cheap without requiring supervision, send-
abroad can cut ing production thousands of miles overseas
costs but could could bring huge savings. This will not
take up your time make sense for everyone but small business
owners should not assume that outsourc-
Picture: REUTERS ing is only for large conglomerates. It does
no harm to consider all the options.
 Living
24
More than Voho,
darling: Vauxhall is
in for an overhaul
The St. George Wharf Tower is the first
sign of regeneration, says Donata Huggins
S
ANDWICHED between the South
Bank and the Battersea waterfront, it
was never going to be long before
Vauxhall took off. Until now
Vauxhall has traded on two cards: “Voho” –
Gayer Soho – and housing London’s politi-
cos. However, this week’s launch of St
George Wharf, more commonly known
simply as The Tower, is a sign that a more
well-heeled class is moving in. Despite the
lack of an official price list the current ask-
ing price for a three bedroom flat in the
Tower is £1,375,000 (see right) – a far cry
from the going rate for the rest of the area,
averaging around £500,000 for a three bed-
room house. Savvy investors should get in
on the trend and buy in Vauxhall before
the prices join the rest of central London.
As Mark Hutton, manager of Douglas &
Gordon’s Vauxhall office, says: “It’s an area
of London undergoing gentrification, so
buying a property in Vauxhall would be a
very good investment. Not least for its cen-
tral location and proximity to The Thames.”
The Tower is going to be a big deal. It is
181-meters high and will soon be carved
into our minds as a feature of the London
skyline like the Gherkin and the OXO
Tower. Sitting on the Thames-side, the
developers had to battle with the previous
government to offer the panoramic view
over Westminster Palace. It is so good that
apartment prices rise by £10,000 for every
floor you go up.
Some have speculated that the only way
the developers are going to lure in the
wealthy punters is to pray on foreigners,
people they might be able to fool into
thinking that Kennington and Kensington
are the same thing. Mark Griffiths, the
| London
managing director of the project, makes no
secret that he is aiming for the world mar-
ket. Tonnes of Chinese granite have been
imported for the interiors and the apart-
ments’ lightening, heating and blinds can
be operated remotely from anywhere in the
world via a smartphone. So will the new
residents have been hoodwinked? Is the
Tower a diamond in the rough?
The political class certainly do not think
so. Vauxhall is already home to Alistair
Darling, Ed Balls, John Major, and Charles
Kennedy to name but a few. The proximity
to Westminster and *cough* MI6 no doubt
enticed them. Indeed, it is a little known
fact that Kennington has locations wired
for the parliamentary division bell. The
new US Embassy is being built nearby
which will breed more diplomatic action.
The gay community would baulk at any
suggestion that Vauxhall does not have any-
thing to offer. The area’s gay credentials
date back to the 1800s. The Royal Vauxhall
Tavern is London’s oldest known gay bar.
The pioneering district also housed
London’s underground movement in the
1990s. Now established venues such as
Area, Barcode, Crash and Fire draw in the
pink pound.
There are traditional attractions too:
Fentiman Road and Hayford Avenue are
already hotspots. St. Peter’s Church at the
Vauxhall end of Kennington Lane was
designed by John Loughborough Pearson,
the architect who designed Rochester
Cathedral. A strong Portuguese communi-
ty means there are plenty of good tapas
bars. And with plenty of foreign diplomats
entering the area, prices should rise, mak-
ing it a good investment if you act fast.
CITYA.M. 24 SEPTEMBER 2010
OLD SOUTH LAMBETH ROAD
Price: £895,000
Laid out over four floors, this house has three bed-
rooms, a reception room, large kitchen-dining room,
utility room, bathroom and front and back gardens.
Contact: 020 7735 9510
www.danielcobb.co.uk
ST. GEORGE WHARF
Price: on application
Go for the three bedroom, three balcony
variety, quoted at £1,375,000.
Contact: 020 7223 7574
www.cluttons.com
VAUXHALL | NEED TO KNOW
TUBES: Kennington, Oval (Northern line), Pimlico and
Vauxhall (Victoria line) are all in between zones 1 and 2.
OVERLAND TRAINS: Battersea Park and Wandsworth
Road are on a line running from Peckham Rye to Victoria.
SCHOOLS: Most of central London’s top independent schools
are within walking distance, including Westminster, City of
London, St. Paul’s Girls and Boys schools.
COUNCIL TAX: Slightly below the national average. The top
rate is currently £2470.22.
CRIME: Below the national average.
RESTAURANTS: The traditional French La Toulouse Lautrec
THE VAT HOUSE brasserie is critically acclaimed. American-South Asian fusion
Price: £595,000 restaurant, Chino Latino, is local and has won a number of
On the second floor of a converted vinegar factory,
this two bedroom apartment has high ceilings. awards.
ENTERTAINMENT: The Oval cricket club and the comedy
Contact: 020 7704 5000
www.foxtons.co.uk at the Fentimans Arms.
 GREENWICH CREEKSIDE

A VIEW
TO THRILL!

Actual view from Adagio Apartments

Greenwich Means Time…

...Time to buy now! • Transport links aplenty • Terrific specification • Time to live your life
Prices from £240,000*
Greenwich Creekside Sales Centre: 133 Creek Road, Greenwich SE8 3BU
A development by:
Opening times Monday - Saturday 10am - 6pm

0800 883 8627 or (out of hours) 0800 032 0077 Selling Agents:

www.telfordhomes.plc.uk
*Prices correct at the time of going to press. Computer generated image of Adagio Apartments and smaller images depict typical Telford Homes showhome interiors.
 THE PENTHOUSE COLLECTION
HIGHBURY SQUARE
LONDON N5

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• Fitness Centre & Swimming Pool*

LONDON’S MOST
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The Penthouse Collection at Highbury Square, the former home of Arsenal Football Club, represents
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A stunning specification includes stone worktops, a coffee maker, wine cooler, flat screen TV with home
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Call 0845 262 6000 for an appointment to view
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Marketing Suite & Show Apartments open Mon to Fri 10am - 6pm, Sat & Sun 10am - 2pm
*Yet to be completed. **Price correct at time of going to print. †Source TFL.
CITYA.M. 24 SEPTEMBER 2010 Living | Rentals/Overseas 27

It’s a landlord’s market

for hungry Londoners
Renters need to be savvy to agent, has seen doubling in rental clients
over the past year. And lettings agent Tony
survive, says Zoe Strimpel Lam of LDG, a West End estate agent, says:
“I have been working in the West End area
for eight years and this is the busiest it has
ever been. Factors that have made this year

T
HE period of fear, uncertainty and
stagnation in the aftermath of
Lehman Brothers’ collapse is well
and truly behind us – if you’re look-
ing at the rentals market, that is. Prices in
central London are at levels not seen since
before the meltdown, according to proper-
ty services firm LSL. Rents in London rose
by 2 per cent during August and the aver-
age charge per month is now a steep £961,
according to LSL. A recent survey by the
Royal Institution of Chartered Surveyors
found that 26 per cent of surveyors were
reporting an increase in demand for rental
property.
Jo Eccles, of Sourcing Property, a buying
unique include the pent-up demand follow-
ing the downturn; weak sterling attracting
wealthy overseas students, and a desire for
flexibility. Bankers in particular can be
posted around the globe at a moment’s
notice, so renting makes sense.”
Other factors include the decrease in the
number of “accidental landlords” – those-
who ended up renting their properties
instead of selling when the market crashed.
Now that they’re selling again, rental stock
is down. Demand from first-time buyers
priced off the property ladder is a factor
too.
What’s a tenant to do? Join the ranks of
the savvy, of course. Prices are high, but
gone are the days when tenants will stump
up lots of money for little in return. Make
sure the flat will be properly furnished
when you move in. Don’t be afraid to ask
for things: for example, a fresh lick of paint
can often be added as part of the package.
Choose a good estate agent. Make sure
they have a nice office, articulate staff
and – preferably – recommendations.
Know your rights, too: the legalities of tak-
ing up a rental property can be found
online: the ARLA (Association of Rental
Lettings Agents) website, www.arla.co.uk, is
a good place to start.
And remember, with more than one
offer likely to be on the table for desirable
properties, you’ll need to look your best. Be
punctual, dress smartly, don’t smoke. The
estate agent works for the landlord and will
ultimately sway their choice if there are
several offers.
If you’re an owner thinking of letting,
remember that people have high stan-
dards. To get the best out of your property’s
price potential, Ikea won’t cut it. “You’ve
got to be prepared to spend some money,
even if you think you’ve got the loveliest
flat in the world,” says Lam. Finally, employ
a well-regarded local landlord rather than a
generalist, because they will be able to brief
you best on what the local standards are for
your target market.

EYE ON | BRAZIL

Where the cleverest of sun-seekers are heading

I
N 2012, Brazil will host the World Cup
and in 2016, the Olympics. The north-
eastern city of Natal, where some of the
games will be hosted, is to complete the
first phase of the world’s sixth biggest air-
port in 2012, making direct flights to
London possible. Known as the city of sun,
Natal has 360 days of sun a year, with an
average temperature of 28 degrees.
Then there’s Brazil’s GDP, which grew an
impressive 2.7 per cent in the first quarter
of this year and 1.2 in the second, exceed-
ing the forecast 0.6 per cent. It has a low
budget deficit too, making it one of the
most stable countries in Latin America, and
is the world’s largest exporter of orange
juice, beef, sugar and coffee and a leading
exporter of aircraft, iron ore and footwear.
In short, the Brazilian economy is boom-
ing – GDP is forecast to grow by 7.1 percent
this year according to the IMF – and the
property market is set to join its trajectory.
Brazil’s charms as a holiday destination
are well-known, but since the country has
entered a new phase of growth, investment
there has never looked so good. As Charl
Ackerman, of estate agents Aylesford
International, puts it: “Why wouldn’t you
invest in Brazil?”
Predicted huge returns are driving com-
panies like Aylesford into the market,
where money is being ploughed into beau-
tiful seaside developments mainly in the
north-east that are often better and – for
now – cheaper than those of the Caribbean.
Currently less than 15 per cent of the
property market is mortgaged and as
things stand, home loans for foreign buyers
are not to be had. On the plus side, this has
made the market stable. On the downside,
it limits your choice to developments
where you enter a rental pool, and buying
homes outright. This is set to change,
though, with local developers lobbying Brazil is set to
hard for ready loans. Brazil’s property mar- become a
ket needs foreign investment to grow and property hotspot.
given that the country is realising this, it Picture: SXC
won’t be long until it takes off. ZS

All photography shown is of Kitchener House,

at The Academy, Woolwich. THE ACADEMY
YOUR PIECE OF HISTORY
KITCHENER HOUSE &
FARADAY HOUSE
A UNIQUE RANGE OF
2 BED APARTMENTS IN
HISTORIC SETTINGS
SPACIOUS 2 BEDS FROM £260,000
WWW.THEACADEMY-WOOLWICH.COM
BORN 1741. REBORN 2008.
WOOLWICH COMMON, LONDON SE18 4JJ
ENQUIRIES
020 8856 0034
 28 Living | The Knowledge CITYA.M. 24 SEPTEMBER 2009

FOCUS ON: EPSOM, SURREY BY JESSICA MEAD

ELEMENTS
Price: From £294,995
for a two bed terrace
Constructed on a for-
mer hospital site, this
development consists
of 322 two, three and
four-bed homes. There
are private rear gar-
dens while some prop-
erties also have
balconies and floor-to-
ceiling windows.
Contact: Crest Nicholson
on 0870 751 3958,
www.crestnicholson.
com/elements
13 COURT FARM
AVENUE
Price: £379,950
This three-bed semi-
detached family home
has plenty of space and
backs onto the local
playing fields. There are
also two reception
rooms, conservatory,
and an attached garage
but there is ample off-
street parking. The
property has a south-
facing back garden. The
house is close to West
Ewell mainline station.
Contact: Your Move on
020 8974 1355,
www.your-move.co.uk

NEED TO KNOW | EPSOM

Commuting: 35 minutes by train into either Victoria Restaurants & Pubs: The Derby Arms on Epsom EBBISHAM LODGE
or Waterloo, with approximately six trains an hour at Downs is a gastropub with a view of the racecourse. Price: £1,199,000
peak times. It is close to Junction 9 of the M25 and is Restaurant at Chalk Lane Hotel is located at the foot Set in the heart of
also well located for both Heathrow and Gatwick air- of the Epsom Downs and has had a 2 AA Rosette for Epsom, this spacious
ports. the past eight years. It serves modern European Grade II-listed house
has plenty of period fea-
food. The Ladas is a welcoming, traditional pub with tures. It has five bed-
Schools: Wallace Fields Junior School is a strong pri- a wide selection of real ale. In the centre of Epsom, rooms, a heated
mary school, as is independent prep school the Railway Guard is small and friendly and occasion- swimming pool, a large
Kingswood House. Public school Epsom College pro- ally hosts live music. attic and two garages.
vides co-educational education for those aged 13 to There are two areas of
18. Rosebery School for Girls is an all girls secondary, Parks and Leisure: The Epsom Derby is held nearby garden, one with a large
which has high academic achievement. in June. Outside the town are Horton Country Park, terrace. Contact:
Epsom Common and the RAC Country Club. Theme Hamptons International
Crime: Statistics indicate that Epsom is much safer park Chessington World of Adventures is a few kilo- on 01372 734950,
than the national average. metres away. www.hamptons.co.uk

Leading sustainable developments

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30 Living | The Knowledge CITYA.M. 24 SEPTEMBER 2010

SELLING PROPERTY NEWS

property. For very prime properties, people
are prepared to pay over the odds but there
are plenty of houses where people need to
free up the capital and are prepared to sell
for a good price. They are more open to
offers, particularly if they need to sell quick-
Russell Hunt ly. Prospective buyers should see the asking
MANAGING DIRECTOR, price as merely an asking price. You can
PROPERTY HUNT start haggling from there and in this climate,
there is certainly room to negotiate. For
Dear Russell, I have heard that stock levels to improve, you would need to
Q. London property stock levels are see interest rates going up.
still low. Will this change?
theme is that there is a real
shortage of good rental
properties. At the same time,
Q&A BY JESSICA MEAD
BRUSSELS PENTHOUSES
there is an increase in demand so people are International developer
fighting over the best on offer. Consequently, Thornsett Group yesterday
people are prepared to pay more for high
quality rental properties.
launched six duplex and
I think it is a good time to invest but you
triplex penthouses at Leopold
do have to buy somewhere where the fig- Village in the heart of Brussels’
ures make sense so don’t rush into anything. European district and with
You should be looking for a minimum rental stunning views over the city.
yield of 4.5 per cent and preferably above 5
per cent. This requires doing your research
The penthouses cost from
€750,000 excluding taxes.

Q.
Dear Russell, with such high rental about what similar properties in the area Contact: +32 2 280 3034,

A.
You would normally expect stock lev- demand, is now a good time to have rented out for. www.leopoldvillage.com.
els to be higher in late September buy-to-let?
than they currently are but people Russell Hunt is managing director of
SAVILLS’ AUCTION SUCCESS
A.
have been put off selling by low rates. For Everybody I talk to, whether it is in Property Hunt, a search agent for London
example, in Kensington & Chelsea you get a Hammersmith, Kensington & and the Home Counties. Savills’ latest residential auc-
much better return by holding on to your Chelsea or in Fulham, the common www.property-hunt.co.uk tion raised £19.5m with a suc-
cess rate of 81 per cent, as
optimism returns to the prop-
erty market. A number of lots
CURRENT MORTGAGE DEALS BY JESSICA MEAD sold for in excess of their
guide prices, including a flat in
LENDER FIXED/FLEXIBLE RATE UNTIL STANDARD RATE APR MAXIMUM LOAN a mansion block in Queen’s
(PER CENT) (PER CENT) (PER CENT) TO VALUE (PER CENT) Club Gardens. The next event
will be held on 25 October.
First Direct Flexible 2.19 2 years 3.69 3.5 65 www.savills.co.uk.
HSBC Flexible 2.19 Term 2.19 2.2 60
NatWest Flexible 2.19 To Nov 2012 4 4 60 REMOTE COTTAGE FOR SALE
A peaceful slice of the
ING Direct Flexible 2.29 2 years 3.5 3.5 60 Somerset countryside is up for
Yorkshire BS Flexible 2.39 To Nov 2012 4.99 4.7 60 sale at Carter Jonas’ auction
Principality BS Fixed 2.74 To Nov 2012 4.99 4.9 75 on 6 October in Bath. The
three-bed cottage is only
Santander Fixed 2.75 To Nov 2012 4.2 4.2 60 reachable by foot and has a
ING Direct Fixed 2.79 To Nov 2012 3.5 3.5 60 good-sized garden It is in need
of some modernisation and
Mansfield BS Fixed 3.49 3 years 5.59 5.2 75 the guide price is £150,000 to
Post Office Fixed 3.65 To Sep 2013 3.49 3.7 75 £200,000. Contact Carter
Source: MoneySupermarket.com Jonas on 01749 677667.
 "/7,/.$/.%
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LAUNCHES Saturday 9th October

10am to 5pm

For more information or

to book an appointment to view

The computer generated image is drawn from plan and is


indicative only of how the finished development will appear www.aquavista.co.uk
Sales and Marketing suite open thereafter,
Thursday to Monday (closed Tuesday & Wednesday),
10am – 5pm

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 Lifestyle CHAMONIX WHEN 33
YOU’RE NOT SKIING
| Arts IN MONDAY’S
TRAVEL SECTION

Globetrotting the Hollywood way

Julia Roberts’ latest
star vehicle has
beautiful scenery,
but it hasn’t much to
do with real life

Film
EAT, PRAY, LOVE
Cert: 12A
hhiii
WELL IT’S certainly handsome, but then
it’d be difficult for a film primarily set in
Italy, India and Bali, and with such lumi-
nously attractive stars as Julia Roberts and
Javier Bardem, not to be. Based on mem-
oirs of bestselling author Elizabeth Gilbert,
it stars Roberts as Liz, a New York-based
writer whose marriage is on the rocks. So
she divorces hubby, strikes up a relation-
ship with a younger actor but doesn’t find
fulfilment there either. Clearly, it’s time to
go on a search for some spiritual equilibri-
um in picturesque surroundings, so off Liz
trots to Italy, then India and finally Bali –
she eats a lot in Rome, prays and meditates
a bit in an Indian ashram and gets down to
some loving with Javier Bardem’s brawny
divorcee in beautiful Bali.
So, as I said, it’s handsome, and never Above, Javier Bardem armoured car robbers than any other
more so than when focusing on the gor-
geous dishes of Italian food. Roberts is
and Julia Roberts in
Eat, Pray, Love.
place in the world. As well as directing,
Affleck stars as Doug MacRay, a career
NOW SHOWING | SIX OF THE BEST
good in a part she fits like a glove, adding criminal who begins a relationship with a MUSICAL Les Miserables The Barbican is THEATRE Krapp’s Last Tape Sir Michael
a layer of depth that is absent from the former hostage of his, bank manager hosting the 25th anniversary production of Gambon takes to the stage alone in Samuel
script. But hell’s bells, this is horribly Claire Keesey (English actress Rebecca one of the most successful stage musicals in Beckett’s devastating monologue about old
indulgent stuff. From its simplistic, post- Hall). She’s oblivious that he’s the guy history, still running in the West End. An age, failure and the dying of the light, as an
card views of foreign countries to its duff, who robbed her bank and kidnapped her. opportunity to take to the barricades once old man listening back to taped recordings of
patronising philosophising, this is boring, Increasingly looking for a way out of the more in the auditorium which hosted his younger self.
badly written and hugely annoying. About criminal life, MacRay finds that leaving the original show back in 1986.
as authentic as a Disney cartoon, it’s like Charlestown and the life he’s led there FILM I’m Still Here So Joaquin Phoenix’s
staring at a huge cloud of smug for two isn’t as easy as he might have hoped. He THEATRE Yes Prime Minister Henry journey into the realms of the unhinged, by
hours and being expected to feel better as finds himself in a stranglehold of surveil- Goodman (as Sir Humphrey) and way of an attempt at a hip hop career,
a result. You won’t. lance and intimidation, with his every David Haig (right, as Jim Hacker) turned out to be a hoax. No mat-
move watched by the FBI (in the form of star in the stage version of the ter. His mate Casey Affleck’s
Mad Men’s Jon Hamm), while also under fondly-remembered political film is as remarkably weird a
THE TOWN the grip of Pete Postlethwaite’s sinister sitcom, which has opened at thing to have emerged
Cert: 15 crimelord. the Duchess Theatre. from Hollywood in years,
Of course, despite its gritty subject mat- and should be cher-
hhhii ter The Town is a polished Hollywood pic- EXHIBITION Treasures of ished.
ture. Hunky Affleck doesn’t really Budapest The Royal
BEN AFFLECK’S promising foray into convince as a local thug with a late-bloom- Academy has brought over ART Baghdad Former
directing continues with this crime ing heart-of-gold, while Hall’s doe-eyed masterpieces from the col- Turner Prize-winner
thriller, which, though essentially a nuts Keesey also seems somewhat one-dimen- lection of the Museum of Jeremy Deller has mount-
and bolts crime drama, is put together so sional. Whilst The Town doesn’t have the Fine Art in the Hugarian ed one of the most forceful
well that any hang-ups about its over- grit or the complexity of The Wire, to capital, and it’s a real artistic responses to the
familiarity can comfortably be put on which it seems in part indebted, Affleck treasure trove. Picasso, Middle Eastern conflict with
hold. still delivers a compelling film that Schiele, Goya, Leonardo, the twisted metal carcass of a
The ‘Town’ in question is Charlestown, achieves a precise balance between sympa- Monet, El Greco and even car destroyed by a bomb, on dis-
Boston, which apparently holds the acco- thetic character development and white- our own Constable are all play amid the war machines of
lade of producing more bank and knuckle action. A clear success. represented. the Imperial War Museum.

OUT THIS WEEKEND

PREVIEWS

FILM DVD MUSIC GAMES

THE HOLE Teenage horror hokum as a couple of kids ROBIN HOOD Russell Crowe stars in this leaden ver- MANIC STREET PREACHERS The indie veterans’ F1 2010 (PC, PS3, X360) Take on Hamilton,
discover a spooky hatch in the basement. sion of the folk tale. new album is called Postcards from a Young Man. Webber, Button et al.

WORLD’S GREATEST DAD This caustic black comedy THE GHOST Roman Polanski’s adaptation of Thomas SEAL Just what we needed. A new record from SID MEIER’S CIVILIZATION V (PC) Latest in the
gives Robin Williams his best role in years Harris’s political thriller, with Ewam MacGregor. Heidi Klum’s soul man, called Seal 6: Commitment. strategy game series.

FROZEN So so thriller with a great premise: with WALL STREET COLLECTOR’S EDITION Rerelease in ORCHESTRAL MANOUVRES IN THE DARK This we DEAD RISING 2 (PS3, X360, PC) Action/survival hor-
three skiers stuck on a chair lift, who will jump first? advance of the forthcoming, long-awaited sequel. do need. OMD return with History of Modern. ror game. Covers a few bases, then.
 34 Lifestyle | Fashion
The City boys offering a cut above
Timothy Barber meets
the ex-bankers who
have turned tailoring
into a million-pound
business opportunity
I
F YOU can find it in the medieval maze
between Lombard Street and Cornhill,
tailoring shop Cad & the Dandy is a
delightful place to get yourself togged
up. It mixes old-fashioned charm – an
antique mahogany cutting table, an old
leather sofa for those waiting to be meas-
ured up, a Union Jack across one wall –
with a modern attitude to contrast with
the deferential service style of Savile Row.
“We act with our customers as we
would be if we were having a pint with
them – we want to take out that intimida-
tion factor,” says co-founder Iain Meiers.
Expect cheery banter and maybe even a
beer from Meiers and his business partner
James Sleater as they tap your measure-
ments into a laptop. Relaxed it may seem,
but this is a young company that’s turned
over £1.3m in the past year, and is lining
up international expansion.
Meiers and Sleater can certainly claim a
close kinship with their City customers,
for they’re cut from the same professional
cloth (as it were). Meiers qualified as an
accountant and spent three years work-
ing in private equity at Barclays, while
Sleater worked on the sales side at BNP
Paribas. Following redundancy in the
early days of the credit crisis, each decid-
ed to set up a tailoring business – both
have family backgrounds relating to the
trade – and after being introduced, decid-
ed to go it together. The aim is to offer
Savile Row-quality suits at a fraction of
the price – their fully bespoke suits start
at £750. High volume, low margins and a
super-efficient business model are key,
and so far, it’s working rather well.
From ad hoc fittings in rented office
spaces two years ago, they now have their
flagship Square Mile shop, plus shared
space on Savile Row (with long-established
tailors Chittleborough & Morgan) and a
Canary Wharf presence two days a week.
Most strikingly, they’ll be opening two
shops in Shanghai by the end of the year.
QUALITY
Cad & the Dandy are hardly the only peo-
ple offering more affordable tailoring –
other successful start-ups in a growing
market include A Suit That Fits and
Henry Herbert [see box] – but they make a
strong case for the quality of their suits.
The pair make no bones about the fact
that most are made in China (from British
and Italian cloth) but say that this is for
the sake of quality as well as cost.
“There simply isn’t the trade knowl-
edge in this country now,” says Sleater,
pointing out that they have approached
Spring/Summer 2011
promises a riot of fun
FASHION
WEEK
DIGEST
ZOE
STRIMPEL
“A tailored suit was always the ultimate
luxury but wasn’t attainable for many –
we’re able to offer access to it”
the government about training grants to
eventually open a bigger UK workshop.
“We’re growing our workshop in China,
and taking experienced Savile Row tailors
out to train people. It’s certainly not a
case of throwing someone into a produc-
tion line – it’s highly-skilled work.”
In fact, the Chinese workshop they’ve
taken over was formerly owned and run
by a Savile Row company. “The suits that
we produce now, 16 months ago were sell-
ing on Savile Row for £4,000 and we’re
selling them from £750,” says Sleater.
The pair have used their City-honed
skills to bring efficiencies and up-to-date
methods to an industry in which some of
their more venerable competitors still
conduct business by typewriter, and
thereby cut costs. Their online set-up,
including a slick interactive website and
sophisticated system automating their
orders, has won them an award for tech-
nological entrepreneurship and stirred
the interest of Moss Bros, which offered to
buy them as it planned its own recent
I
T’S as if the fashion industry has, this
September, burst out of the cocoon of
recession, replacing dark drapery and
minimalist monochrome with outra-
geous shocks of colour and extraordinary
materials. If this week’s shows were any-
thing to go by, the high street next spring
will be a cocophany of pinks, turquoise,
sequins, feathers and cowgirl leather.
Fashion week has moved on from
London to Milan, and thence to Paris. But
move into affordable tailoring.
The pair turned the major brand down
to carry on building their own – which is
where the stores in Shanghai come in, cap-
italising both on the company’s manufac-
turing presence there and on the growing
Chinese interest in good tailoring.
OPPORTUNITY
“There’s a huge affinity with English
brands out there as wealth and business
culture grows,” Sleater says. “You see bill-
boards there for supposed English brands
no one has heard of here, so there’s a mas-
sive opportunity to exploit.”
Not that that’s enough. The pair are
looking at setting up an online, made-to-
measure shirt business, while a side oper-
ation supplying the skills of their
workshops to put together suits for other
London tailoring houses is thriving too.
Which means someone may spend £2,000
on a suit at a West End or City tailors
which would have cost £800 from the peo-
ple who actually made it.
“A tailored suit was always the ultimate
thing, but wasn’t really attainable unless
you were seriously wealthy,” says Meier.
“Good tailoring is actually in fashion now,
and we’re able to offer access to it.”
Cad & the Dandy, 4 Castle Court, EC3V 9DL,
www.cadandthedandy.co.uk.
as Londoners, the creative decisions
that our designers unveiled this week
are arguably the most important
with regards to our wardrobe next
season. Yet with the usual fashion
feeding frenzy in all forms of media,
it can be pretty difficult to pick out
the key looks if you’re not an indus-
try pro. So here are three big
London looks to watch out for next
spring.
l Shocks of colour. Burberry
added serious pizzaz to its sta-
ple neutrals with bright neon
in clutches, dresses and belts.
Expect turquoise, pink and
lime green on the shelves
come spring. Giles pre-
sented clubbing-style
mosaics of screaming
neons in his jumpers and
CITYA.M. 24 SEPTEMBER 2010
James Sleater, left,
and Ian Meiers,
founders of Cad
& the Dandy
Picture:
Micha Theiner
/City A.M.
OTHER AFFORDABLE OPTIONS
A SUIT THAT FITS
Founded by school friends from a market stall in
2006, A Suit That Fits offers customised, tai-
lored suits at off the peg prices, from £150.
www.aSuitThatFits.co.uk
DRESS2KILL
One of the longer-running affordable suiting
companies, Dress2Kill has a membership
scheme enabling some discounts on its made-
to-measure suits, which start from £250.
www.dresstokill.com
HENRY HERBERT
A team of Henry Herbert tailors zip around
town on Vespas, going to clients to measure
them up. Bespoke suits take 8-10 weeks, and
start from £595. www.henryherbert.com
KING & ALLEN
Fittings are held in various London locations
(including The Counting House pub on Cornhill),
with customised suits from £249 and hand-tai-
lored ones from £499. www.kingandallen.co.uk
MOSS BROS
The suit hire specialist launched a service called
Moss Bros Bespoke this summer, though it’s
really more of a customisation service.
Measurements and personal choices of cloth
and finishing details are recorded electronically
at the Blomfield St store in the City, with suits
ranging from £250 to £500.
www.mossbros.co.uk
REISS
Also more of a customisation service, Reiss’s
new personal tailoring line includes 50 fabric
options, various jacket and trouser styling
options, and costs between £550-£695.
www.reissonline.com
dresses. Christopher Kane’s collection was
described as “Princess Margaret on acid” –
flurorescents met perforate leather, lace
and vinyl.
l A tough-girl look. Todd Lynn had
women in army-style, multi-dimensional
jackets of shimmering pale green, grey
and blue. They wore brutal-looking sky-
scraper heels. At Nicole Farhi, there were
see-through tops worn with butch Latex
skirts with a slouchy, side-pocket. See-
through midriffs were accompanied by
tough-talking patent-leather bustiers.
l Cowboys and Indians. With ironic
panache, Ashish combined colour-shock
with a Western look. His models wore flat
leather boots with McDonalds designs on
them, leather chaps with hot pink leop-
ard-print and cow-hide dresses, baseball
hats draped in feathers and sweatshirts. It
was tough, American, and very funny.
CITYA.M. 24 SEPTEMBER 2010 Lifestyle | TV& Games 35

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

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6pm BBC News
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10.35pm Would I Lie to You?
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Draws 11.15pm FILM Cold Creek
Manor: 2003; Weatherview 1.10am
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1.45am Snooker Extra 3.45am-
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10.30pm London News 10.50pm The Inbetweeners 10pm Law & Order: Special
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12.30am Russell Brand’s Ponderland BBC1, 9PM
Coming-of-age comedy, with
1.05am Music on 4: 4Music 10.55pm CSI: NY
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COFFEE BREAK
Copyright Puzzle Press Ltd, www.puzzlepress.co.uk

QUICK CROSSWORD
    

SUDOKU KAKURO
16 42 11 11 37 20 9  
13 11 11
4  
18 7
Place the numbers from 1 to 9 in each empty cell so that each 23 
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 7 35
12 9
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 10 26
  
above or to the left of it. 38 41 10
You can only use the digits 1-9 16 13
 and you must not use the 6 17    
same digit twice in a block. 10 15
    The same digit may occur 30 28  
29
    more than once in a row or
column, but it must be in a 18 8
23
17
6
  
15 17
     separate block.
3 16 
22 32
 
14 8 14

     ACROSS DOWN
1 Port in north- 1 Give a shine to (5)
   
    WORDWHEEL K V
west Italy (5)
4 Old Testament prophet (5)
7 Fatal disease of
2 Mesh (3)
3 Church associated
with a convent (5)
Using only the letters in the Wordwheel, you have
 cattle (inits) (3) 4 Clemency (5)
ten minutes to find as many words as possible,
L O 9 Autumn month (7) 5 Ability to walk
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters C 10 Rapid bustling
commotion (3)
steadily on the deck
of a pitching ship (3,4)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
S T 11 And so forth (abbr) (3) 6 Cutting weapon (5)

SOLUTIONS KAKURO is at least one nine-letter word in the wheel.

I E
12 Stupid, daft (5)
14 Bear fruit (5)
8 Collection (3)
13 Salad vegetable (7)
QUICK CROSSWORD 5 9 8 6 1 4 3 2
15 Engine (5) 15 Boys, men (5)
3 4 5 7 9 2 8 1 6 SUDOKU         
17 Foundation (5) 16 Send (payment) (5)
6 , 6 6
. $
<
%
% $ / / 6
0 7
1 5 9 8 6 7 9          19 Centre of a storm (3) 17 Pulse vegetables (5)
2 7 1 5 21 Moldovan monetary 18 Inclined to anger
2 8 6 7 / ( $ * 8 (         
2 1 7 6 8 9
3 & $ 9 $ = :
         unit (3) or bad feelings (5)
- 2 ( < & / ( 5 . 3 8 9 6 2 1 3 6
         22 Move in a sinuous, or 20 Japanese currency
( 1
5 ( %
.
( /
( 5
6 / 2 (
1 6 1
8
3 2
6 4
5 3
WORDWHEEL          circular course (7) unit (3)
3 5 , 2 7 $ &         
$ 1 7 , & 6 $ ; / ( 1 3 4 2 1 6 1 The nine-letter word 24 Hostel (3) 23 Chemical which
4 1 8 9 5 6 3 7 2         
, 1 7 . 6
was PSEUDONYM 25 Perfume (5) carries genetic
5 2 ' ( 2 % ( $ ' 6 8 6 9 7 4 8 9 7         
26 Frightening (5) information (inits) (3)
 Punter
36
FOOTBALL TRADER BEN CLEMINSON HAS TEAMED UP WITH
BETTORLOGIC TO BRING YOU THE CITY AM FOOTBALL TRADER
Get ready for goal-fest
at Eastlands tomorrow
MANCHESTER CITY
CHELSEA
TOMORROW – 12.45PM SKY SPORTS 1
CHELSEA are now a best-priced 4/5 with
Paddy Power to claim back-to-back titles
after comfortably winning their opening
five fixtures. They look the most likely
winners to me at this stage, but the season
has barely started and they have faced
very weak opposition so far.
Manchester City, despite being fourth in
the table, have made a slightly disappoint-
ing start to what is a massive season for
the club. They got back on track by beat-
ing Wigan last weekend, but they would
have expected much more than the one
point they took from the games against
Sunderland and Blackburn.
Roberto Mancini’s side generally raise
their game against the top opposition,
though, as their comfortable 3-0 win
against Liverpool last month demonstrat-
ed. They were the only side to do the dou-
ble against Chelsea last season and a win
tomorrow would give them something of
an Indian Sign over the champions.
City have only lost three of their past 24
home games and with Chelsea yet to face
a stiff test this season I won’t be rushing to
snap up the 11/10 about an away win. At
11/4, the home win actually makes some
appeal, but I think a draw is more likely
and would advise backing that at 23/10
with Paddy Power.
The total goals market is an interesting
one in this game as there have been at
least three goals in three of City’s last five
BOLTON
MANCHESTER UNITED
SUNDAY – 12.00PM ESPN
LAST weekend’s match against Liverpool
was a must-win for Manchester United
and they had Dimitar Berbatov to thank
for an inspired performance. In truth,
they really shouldn’t have let Liverpool
back into the game but Berbatov had
enough left in the locker to claim the vital
winner.
Sunday’s trip to the Reebok Stadium
shouldn’t give Sir Alex Ferguson too many
worries – his side have won four of the last
TOTTENHAM
WEST HAM
TOMORROW – 3.00PM
WEST HAM seem to have arrested the slide
slightly over the past week by taking a
point at Stoke last weekend and then beat-
ing Sunderland in the Carling Cup on
Tuesday.
However, their record against Tottenham
is terrible and they could come crashing
John Terry clashes with Carlos Tevez during last season’s heated clash.
at Eastlands against the Big Four. There
have also been a minimum of three goals
in all of Chelsea’s last four trips to top-six
opponents, while there were nine goals in
the two meetings between the sides last
season.
Chelsea were the joint-top away
goalscorers last term (35) and City conced-
ed the most goals at home of anyone in
the top seven (20), so the stats suggest we
will see plenty of goals. Sporting Index
quote goals at 2.6-2.8 and I would suggest
buying at 2.8.
Carlos Tevez is on fire for City – 24 goals
in his last 28 games and three against
Chelsea last season – while Florent
five visits there, including a 4-0 trashing
last season. Bolton have improved under
Owen Coyle, although they did suffer a
disappointing Carling Cup defeat at his
old club Burnley on Tuesday night.
The problem for Wanderers is that they
have lost their last eight at home against
the Big Four with six defeats to nil and six
by at least two goals. United have also won
by two or more goals in four of their last
eight away visits to bottom-half sides.
It’s difficult to see anything other than
a United win in this game, but I wouldn’t
want to be steaming in at 8/15. They’ve
drawn both their away fixtures so far this
season and have generally been slow
starters on their travels. They were level at
the break in 10 of their 19 away games
last campaign and went on to win five of
those by the half-time draw / full-time win
back down to earth tomorrow afternoon.
Spurs have won seven of the last eight
league meetings between the sides, draw-
ing the other one. Harry Redknapp rested
the majority of his first team for the mid-
week game against Arsenal, so they will be
fresh for this one. There is an argument
that they will have one eye on next week’s
Champions League match against FC
Twente, but they should still be too strong
for the Hammers.
Avram Grant will obviously have been
concerned with the start his team have
made to the season, but he will be happier
now they have a point on the board. Their
defence has leaked goals left, right and
CITYA.M. 24 SEPTEMBER 2010
...the home of form
Picture: ACTION IMAGES
Malouda and Didier Drogba are also play-
ing with great confidence for the West
Londoners.
I’m torn between recommending a first
goalscorer bet on Tevez at 13/2 with
Skybet and a 2-2 correct scoreline punt at
16/1 with William Hill, but I’m going to
plump for the latter. It’s very difficult to
split these two and we could be set for an
absolute thriller.
POINTERS...
Match to be drawn at 23/10 with Paddy Power
2-2 correct scoreline at 16/1 with William Hill
Buy total match goals at 2.8 with Sporting Index
double result. A repeat of that can be
backed at 7/2 on Betdaq and I would
rather have a go at that and hope that
Coyle’s side can keep United at bay until
half-time.
Sporting Index are quoting United as
1.3-1.5 supremacy favourites prior to the
game, but I would suggest waiting to buy
until half-time, if the sides are level, at a
lower price. We’ve seen time and time
again over the years how strong they are
in the final third of matches and it would-
n’t surprise me if they went on to win by
two goals having been level at the interval.
POINTERS...
Draw HT / Man United FT at 7/2 on Betdaq
Buy Man United supremacy at HT with Sporting index
if score is tied
centre, though, and they could easily have
let in more against Stoke last weekend.
A feature of both these two teams has
been high scoring games of late. There
have been at least three goals in six of the
Hammers’ last eight home matches and
the same is true in six of Spurs’ last eight
away trips to bottom-six sides. In fact,
since the start of last season 61% (14/21) of
West Ham’s games at Upton Park have pro-
duced three or more goals.
POINTERS...
Tottenham to win at 11/10 on Betdaq
Buy total match goals at 2.9 with Sporting Index
CITYA.M. 24 SEPTEMBER 2010 Punter 37

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THE BEST BETS OVER THE WEEKEND…

Picture: GETTY
Poet’s Voice a solid
each-way bet in QEII POINTERS...
DARAJAAT
DEACON BLUES
2.00pm Ascot (today)
3.10pm Ascot (today)
MASS RALLY (Back-to-lay) 4.20pm Ascot (today)

S
ADLY the eagerly awaited clash
between Canford Cliffs and
Makfi won't take place at Ascot
tomorrow as Richard Hannon's
triple Group One winning miler
scoped badly yesterday and misses
ground turns soft, he will be a serious
threat to both Makfi and Rip Van
Winkle. The latter looks far better
suited by a mile and a quarter these
days and may get tapped for toe.
Elsewhere on tomorrow's Ascot
to a flyer in the opening Nursery. She SAJJHAA 1.55pm Ascot (tomorrow)
comfortably broke her maiden tag at THEYSKEN’S THEORY 3.05pm Ascot (tomorrow)
Kempton earlier this month and the POET’S VOICE e/w 4.15pm Ascot (tomorrow)
stable had a winner at Goodwood on DALGHAR 4.45pm Ascot (Sunday)
Wednesday.
James Fanshawe’s DEACON BLUES

INSIDER
the race. Makfi was well beaten when card and Frankel looks impossible to has been slightly unlucky so far this

the pair last met at the Royal meet-
ing, but subsequent tests revealed a
throat infection and he has since con-
firmed his place at the top of the mile
oppose in the Royal Lodge Stakes.
Henry Cecil's colt has scared off the
majority of his rivals and looks to
have a relatively routine task now
the
season, but he deserves to win a
decent prize and Kieren Fallon should
be able to bring him home in front in
the DJP Handicap (3.10pm).

tree by claiming the scalps of
Goldikova and Paco Boy in France last
time.
Frustratingly, I was keen to side
with the French raider at around 2/1
to gain his revenge, particularly with
so much rain around. However, I
won't be backing him at odds-on as,
infection or not, he didn't seem com-
fortable on the round course when
last here in June and is without doubt
a better horse over a straight mile.
That said, he has the best form in the
book and is unquestionably the one
they all have to beat, but there may
be value in backing POET'S VOICE
each-way against him.
Godolphin's Celebration Mile win-
ner looked back to his best last time
when seeing off Main Aim and if the
that Titus Mills has defected.
There is a far more interesting
match in the Fillies Mile where White
Moonstone is scheduled to take on
Brian Meehan's THEYSKEN'S THEORY.
The former has looked a really excit-
ing prospect in her last two starts
winning the Sweet Solero and the
May Hill, but I'll take a chance on the
Meehan filly who looked a bit special
at Goodwood last time.
Michael Jarvis has always had a
great deal of faith in SAJJHAA and
although the Oaks was a step to far,
she bounced back to form at Bath last
time and can land tomorrow’s open-
er.
There is some decent action at
Ascot this afternoon and Marcus
Tregoning’s DARAJAAT can get us off
I must also give a word to MASS
RALLY in the 4.20pm. Regular readers
of this column will know that I’ve
backed him on his last three starts.
He seems to travel very strongly in his
races before emptying, but I’m inter-
ested to see his shrewd handler reach
for a first-time visor. He’s not one to
rely on, though, so I’ll be adopting a
back-to-lay strategy on Betdaq.
We don’t yet know who will be run-
ning in Sunday’s John Guest Diadem
Stakes at Ascot but if DALGHAR is in
the field he would rate my nap of the
weekend. He has run in top races all
summer and the drop back to six fur-
longs will be right up his street. Lady
Of The Desert is the chief danger and
she would be my selection if Dalghar
doesn’t show up.
T
he danger of betting on horserac-
ing at this time of year is that we
have no idea what the weather is
going to do. Ascot has been dry-
ing out all week, but there is plenty of
rain forecast for the next couple of days
which could have a big impact on
tomorrow’s markets.
It’s a great shame that Canford Cliffs
won’t meet Makfi for round three and I
can’t really see past the French colt
now. He’s too short at 8/11, though, so
I’ll be leaving the QEII alone from a
punting perspective.
The Totesport.com Challenge Cup
(3.40pm) has been a very difficult race
for punters recently with a 33/1 and
50/1 winner in the past three years.
Only one horse has carried more than
9stone to victory in the past decade, so
it’s best to concentrate on those
towards the foot of the handicap.
This year’s race looks as competitive
as ever and I would rather back a few
big-priced horses each-way. Mark
Johnston’s LOWDOWN (0.5pts e/w)
has disappointed in his past few out-
ings, but judged on his comprehensive
win in the Scottish Steward’s Cup in
July he is definitely no 40/1 shot. I’ll
also have a small bet on stablemate
COLEPEPER (0.5pts e/w) and last
year’s winner ADVANCED (0.5pts e/w).
Finally, it might be worth having a
few quid each-way on William Haggas’
DEVER DREAM (1pt e/w) in Sunday’s
Diadem Stakes, as she was very impres-
sive at Doncaster last time.

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 38 Sport CITYA.M. 24 SEPTEMBER 2010

Brit teams head to India

SPORT | IN BRIEF
Hamilton wary of Alonso Canford is canned
FORMULA ONE: Lewis
Hamilton believes his former
McLaren team-mate Fernando
Alonso is his closest rival for
the world championship.
Alonso moved up to third in
the championship standings
with victory in Italy last time
round and lies just 16 points
behind Hamilton and 21 drift
of leader Mark Webber ahead
of this weekend’s Singapore
Grand Prix.
“Fernando seems to be [the
main threat] because Ferrari
have really stepped up their
game,” Hamilton said.
RACING: Triple Group One
winner Canford Cliffs will miss
Saturday’s Queen Elizabeth II
Stakes at Ascot after failing to
recover from injury.
The Sussex Stakes winner
was pulled out at yesterday’s
declaration on the advice of
vets.
Rocket blasts Whirlwind
SNOOKER: Ronnie O’Sullivan
came through the battle of
the entertainers to beat his
childhood hero Jimmy White
3-1 and reach the last 16 of
the World Open yesterday. Pictures said to have been taken this week show the work still be done at the athletes’ village as teams prepare to fly to Delhi. Pictures: BBC

have been dogged by allegations of pose. The board continues to press

▲

COMMONWEALTH GAMES
corruption and monsoon rainfall- the organising committee of the
BY FRANK DALLERES but were plunged into crisis this Commonwealth Games Federation
TEAM ENGLAND last night gave the week by grave concerns over the for assurances on both the stadia
Commonwealth Games a timely cleanliness and suitability of the and the accommodation as well as
shot in the arm by announcing teams’ accommodation. liaising with the British govern-
they will stick to their plan of com- The state of the athletes’ village ment. At all times the safety and
peting in the troubled event came in for even closer scrutiny yes- security of our team is paramount.”
despite lingering concerns over terday after photographs said to England’s team will be without
facilities. have been taken this week and pub- three of its best-known names,
Chiefs from the 17 member lished by the BBC yesterday showed after triple jumper Phillips Idowu,
sports of Commonwealth Games badly stained bathrooms, unfin- 400m star Christine Ohurogu and
England (CGE) unanimously agreed ished building work and a bed tar- 1500m runner Lisa Dobriskey with-
to compete in Delhi, albeit without nished by muddy paw-prints. drew this week.
a handful of high-profile names But a CGE statement said chef de Wales will be missing one of its
who had already withdrawn. mission Craig Hunter had been best medal chances in cyclist
The decision followed similar encouraged by witnessing “the Geraint Thomas, who pulled out
moves from the Wales and improved levels of resourcing yesterday blaming hygiene fears,
Scotland teams, who both said they which are required to resolve the along with English trio Peter
had been reassured by promises significant operational issues, but Kennaugh, Ian Stannard and Ben
from top-level Indian officials. we will continue to monitor the sit- Swift. New Zealand and Canada
Preparations for the competi- uation daily to ensure the village delayed their travel while they
tion, which starts on 3 October, and stadia are safe and fit for pur- waited for reassurances.

Apologise or we’ll sue, ECB tell Butt

Despite calls for them to with- ogy. Mr Butt has been advised that
▲

CRICKET
BY JON COUCH
ACCUSED England players have for-
mally demanded a “full and unre-
served” apology from Pakistan
Cricket Board chairman Ijaz Butt
after he alleged they were involved
in match fixing.
Butt sparked outrage in the
England dressing room after sug-
gesting the players took money to
lose the third one-day international
at the Oval last Friday.
draw from the series, England if a satisfactory response is not
reluctantly played out the remain- received, legal proceedings will be
ing two games, eventually clinch- commenced against him without
ing a 3-2 win at the Rose Bowl on further notice.”
Wednesday. Meanwhile, police investigations
But now, the England and Wales are continuing into allegations that
Cricket Board has joined forces Test captain Salman Butt and fast
with the Professional Cricketers bowlers Mohammad Amir and
Association to draft a letter to Butt Mohammad Asif were part of a
threatening legal action if no apolo- spot-fixing plot during the fourth
gy is made. Test at Headingley. All three have
A statement confirmed: “The let- been suspended by the
ter seeks a full and unreserved apol- International Cricket Council.

Results
BLUE SQUARE BET PREMIER
AFC Wimbledon.......(0) 2 Crawley Town.............(1) 1
Hatton 77 Tubbs 43
Kedwell 80 Att: 4,018
GOLF
EUROPEAN TOUR THE VIVENDI (Golf de Joyenval, Marly
Course & Retz Course, Chambourcy, Paris)—11st Rd (Gbr &
Irl unless stated, par 72): Marly Course: 61 Johan Edfors
(Swe). 63 David Dixon. 64 John Parry, Jean-Francois
Remesy (Fra). 65 Soren Kjeldsen (Den), Jarmo Sandelin
(Swe), Pelle Edberg (Swe), Todd Hamilton (USA), Kenneth
Ferrie. 66 Paul Waring, Francois Delamontagne (Fra). 67
Scott Strange (Aus), Raphael Jacquelin (Fra). 68 Martin
Wiegele (Aut), Jeppe Huldahl (Den), Martin Erlandsson
(Swe), Paul McGinley, Padraig Harrington, Gregory Havret
(Fra). 69 Sam Hutsby, Gary Clark, Michael Lorenzo-Vera
(Fra), Benn Barham, Phillip Price, Peter Baker, Pablo
Larrazabal (Spa). Retz Course: 65 Chris Gane, Julien
Guerrier (Fra). 66 Robert Jan Derksen (Ned), Mark F
Haastrup (Den), Andrew McArthur, James Morrison. 67
Michiel Bothma (Rsa), Jean-Baptiste Gonnet (Fra), Peter
Whiteford, Fabien Marty (Fra). 68 George Coetzee (Rsa),
Jose Manuel Lara (Spa), Daniel Vancsik (Arg), Richard
Green (Aus), Phillip Archer, Jean-Francois Lucquin (Fra),
Ignacio Garrido (Spa), Thomas Levet (Fra). 69 Gary
Murphy, Joost Luiten (Ned), Alastair Forsyth, Clodomiro
Carranza (Arg).
TODAY’S DIARY
npower Football League Championship
Portsmouth v Leicester (7.45) ..........................................................................
npower Football League One
Leyton Orient v Brentford (7.45)......................................................................
RUGBY LEAGUE
engage Super League Qualifying Semi-Final (8pm):: St
Helens v Huddersfield.
RUGBY UNION
Championship (7.45):: Nottingham v Esher.

SPORTS EDITOR JON COUCH

email sport@cityam.com
CITYA.M. 24 SEPTEMBER 2010 Sport 39

The hard work starts here

Sunday’s hard-fought victory in the
driving rain at Headingley was a good
win for us – now it’s leaders
Northampton at Vicarage Road and it
doesn’t get any tougher than that.
From then, it’s Leicester away then
a Heineken Cup double header
against Clermont and Leinster. The
KICKING INTO TOUCH WITH hard work starts here.
Northampton don’t have a 100 per
BRENDAN VENTER cent record for nothing. They are a
very neat and tidy side, who do their
Last week we made a number of
rotational changes, but this week we
have been forced into a couple of
alterations through injury. Justin
Melck has a rib problem, while Alex
Goode may be out for a couple of
weeks after injuring his shoulder.
The injury has come at an awkward
time for Alex, who was just finding
his feet at fly-half, but if he quickly
rediscovers his form on his return,
there’s no reason why he couldn’t be

E
VERY game is tough at this top
level of rugby, of course, but it’s
fair to say that these next four
weeks will give us a good indica-
tion as to where we are right now.
jobs well and are good at what they
do. They play the basics well with a
philosophy of putting execution
before innovation. We will have to be
on our mettle to beat them.
considered for a possible England call-
up. He could certainly do a job.
For ticket details on the game against
Northampton Saints Saturday (ko 3pm),
call the ticket office on 01727 792800.

Ferguson’s Manchester United finished second last season. Picture: ACTION IMAGES

Fergie: Title
between us
and Chelsea
probably be the ones against each
▲

FOOTBALL
BY FRANK DALLERES
MANCHESTER United manager Sir
Alex Ferguson believes the Premier
League’s destiny will be decided by
the two clashes between his side and
champions Chelsea.
United were denied a record fourth
successive top-flight title last season
by Carlo Ancelotti’s double winners,
who have begun the new season in
blistering form.
And despite Arsenal’s encouraging
start and the vast sums lavished by
neighbours Manchester City on new
players, Ferguson anticipates another
two-horse race with the Blues.
“I always look at the team that
wins the league the year before, you
have to have a target to try to work
on,” said Ferguson.
“It’s up to the rest, including us, to
do that and Chelsea are the champi-
ons. They’ve had a good start to the
season and I look upon them as the
main danger to us.
“The games that will matter will
other. Last year we lost both of those
games and therefore that decided the
title.”
Chelsea can already boast a four-
point lead at the top of the table, hav-
ing won all five of their league
fixtures, although their momentum
was checked on Wednesday night by
a Carling Cup defeat at home to
Newcastle. They face a tricky trip to
Eastlands to face City tomorrow and
will do without the injured Salomon
Kalou and Yossi Benayoun, while
Frank Lampard is a major doubt.
United, meanwhile, have dropped
points at Fulham and Everton but reg-
istered a morale-boosting victory over
Liverpool last weekend and on
Sunday visit a Bolton side with just
one win so far this season.
Striker Dimitar Berbatov, a hat-
trick hero in the 3-2 win over
Liverpool, is to be invited back to the
Bulgaria national team by new coach
Lothar Matthaus. Berbatov, 29,
announced his international retire-
ment in May, citing personal reasons.

Knockout blow for Hatton as

he is stripped of boxing licence
BOXING
▲

detrimental to the interests of box-

RICKY HATTON’S career lay in ruins
last night after he had his boxing
licence revoked following allegations
of cocaine use.
A British Boxing Board of Control
(BBBC) hearing yesterday found the
two-weight world champion guilty of
misconduct.
In a statement, the BBBC said
Hatton’s “actions and behaviour were
ing” and that the 31-year-old had
“brought the sport into disrepute”.
It added: “Ricky Hatton is not an
active boxer and his current physical
condition is such that the board decid-
ed to withdraw his boxer’s licence.”
Hatton, 31, was fined £20,000 but
has been told he can continue to
work as a promoter.
He is now at a rehabilitation clinic
and faces a police investigation.
 Sport
40
Monty’s back
as England
set sights on
Ashes glory
▲
CRICKET
BY JON COUCH
MONTY PANESAR will look to become
England’s lucky charm again this win-
ter after earning a recall to the squad-
for the Ashes series in Australia.
The left-arm spinner hasn’t played
for England since his batting heroics
with James Anderson to help save the
first Test of the 2009 Ashes series in
Cardiff.
Panesar is joined in the 16-man
party by paceman Chris Tremlett,
who won the last of his three caps in
2007. He gets the nod over Yorkshire’s
Ajmal Shahzad, who drops down to
the Performance squad.
At 6ft 7in, Tremlett adds even more
height to the pace attack – indeed
with Stuart Broad (6ft 5in) and Steven
Finn (6ft 7in), they make up the tallest
trio of bowlers in England history.
Tremlett’s Surrey team-mate Steven
Davies takes the reserve wicketkeep-
ing slot over Craig Kieswetter, while
fit-again Ian Bell and Yorkshire seam-
er Tim Bresnan make up the party.
But it was the inclusion of Panesar
which proved the most romantic –
just one year after his departure from
Northamptonshire left his career at a
crossroads. he 28-year-old, who has
126 wickets in 39 Tests for England,
has revived his fortunes at Sussex and
forced his way back into the fold with
52 wickets in the County
Championship this season to help the
south coast team win promotion
back to Division One.
He got the nod over Kent’s James
Tredwell and Yorkshire’s Adil Rashid,
who misses out altogether despite his
excellent domestic form.
“Monty deserves his opportunity to
assume the role as England’s second
spinner behind Graeme Swann,” said
chairman of selectors Geoff Miller.
“Monty has gone away and worked
on his bowling since his last England
appearance and he continues to be an
attacking threat with the ball in his
hand.”
Elsewhere, Jonathan Trott and
Steven Finn were handed central con-
tracts for the first time, but the
biggest surprise was the omission of
Eoin Morgan, who loses out to Bell.
Instead, Morgan is one of six play-
ers with incremental contracts,
including Ravi Bopara, Luke Wright
and Michael Yardy, who will automat-
ically earn a full contract if they make
enough international appearances.
SARACENS READY FOR
DEFINING RUN OF GAMES
READ BOSS BRENDAN
VENTER’S COLUMN: PAGE 39
Panesar has revived his career at Sussex.
ENGLAND | ASHES LINE-UPS
ASHES TEST SQUAD: A Strauss (capt,
Middx), A Cook (Essex), J Anderson
(Lancs), I Bell (Warwicks), T Bresnan
(Yorks), S Broad (Notts), P Collingwood
(Durham), S Davies (Surrey), S Finn
(Middx), E Morgan (Middx), M Panesar
(Sussex), K Pietersen (unattached), M
Prior (Sussex), G Swann (Notts), C
Tremlett (Surrey), J Trott (Warwicks).
PERFORMANCE SQUAD:J Adams
(Hants), J Bairstow (Yorks), D Briggs
(Hants), M Carberry (Hants), M Chambers
Picture: ACTION IMAGES
(Essex), J Dernbach (Surrey), A Gale
(Yorks), J Hildreth (Somerset), C
Kieswetter (Somerset), A Lyth (Yorks), L
Plunkett (Durham), A Shahzad (Yorks), B
Stokes (Durham), J Taylor (Leics), J
Tredwell (Kent), C Woakes (Warwicks).
CENTRAL CONTRACTS: A Strauss, J
Anderson, I Bell, S Broad, P Collingwood,
A Cook, S Finn, K Pietersen, M Prior, G
Swann, J Trott
INCREMENTAL CONTRACTS: R Bopara,
T Bresnan, E Morgan, L Wright, M Yardy.
CITYA.M. 24 SEPTEMBER 2010
Gerrard: We
will recover
from cup
humiliation
▲
FOOTBALL
BY FRANK DALLERES
LIVERPOOL captain Steven Gerrard
has pleaded with dejected supporters
to keep the faith despite the Reds’
humiliating Carling Cup exit to
Northampton Town.
Wednesday’s penalty shoot-out
defeat to the League Two outfit at
Anfield marked a new low in Roy
Hodgson’s brief but troubled tenure
as manager. But Gerrard insists they
will improve on their tally of just five
points from five Premier League
games if given time.
“What I would ask all the support-
ers is to trust the players and what
the players are saying,” said the
England midfielder. “I’ve been read-
ing and listening to what they’ve
been saying and they’ve all said we’ll
get it right in the end – and we will.
“Football isn’t just about highs.
Throughout my career I have experi-
enced both highs and lows and proba-
bly learnt more from the lows
because you look at what went wrong
and try to learn from your mistakes.”
Gerrard and the rest of Hodgson’s
first team were rested against
Northampton but are set to return on
Saturday to face Sunderland.
“The players are allowed to be
down today but it’s up to players like
myself to pick them back up,” he
added. “Playing for this club there are
big games every two or three days and
we need to get everyone’s head
focused on Sunderland now.”