BUSINESS WITH PERSONALITY
www.certeco.co.uk
Issue 1,244 Tuesday 19 October 2010
APPLE RIDES HIGH
BUT iPAD FALTERS
TECHNOLOGY
▲
BY STEVE DINNEEN
APPLE last night smashed expectations
to post record fourth quarter profits
and revenues, boosted by blockbuster
sales of its new iPhone 4.
However, its landmark iPad tablet
device lagged behind analyst forecasts
as supply issues continued to dog the
world’s biggest technology firm.
Apple shifted 4.2m iPads in the
quarter, falling well short of analyst
predictions of up to 5m.
Steve Jobs’ firm now faces stiff com-
petition in the tablet market, with
rivals RIM and Samsung both having
released credible alternatives in recent
months.
Jobs attempted to pour cold water
on the iPad’s rivals, claiming their
smaller size meant they fell short of
both a smartphone’s convenience and
an iPad’s functionality.
But Apple’s stock still tumbled more
than six per cent in after hours trading
on news of the iPad’s disappointing
sales.
However, sales of its new iPhone 4
helped push the firm’s quarterly rev-
enue up 67 per cent to $20.3bn
(£13bn), ahead of Wall Street’s target of
$18.9bn. And it reported profits of
$4.31bn, up from $2.53bn a year ago.
Both figures are a record for the fourth
quarter.
The firm shifted 14.1m iPhones in
the period, and the Cupertino-based
FTSE 100 ▲ 5,742.52 +39.15 DOW ▲ 11,143.69 +80.91 NASDAQ ▲ 2,480.66 +11.89 £/$ ▲ 1.59 +0.01 £/¤ 1.14 unc ¤/$ 1.40 unc
BUSINESS WITH PERSONALITY
THE POKER GENIUS
WITH MODEL LOOKS
EXCLUSIVE INTERVIEW P31
Steve Jobs attacked rival tablet computers, which he says are inferior to the iPad
firm is now activating 275,000 iPhones
every day. This compares to 200,000
phones a day being activated using
Google’s rival Android software,
according to the search giant’s latest
figures.
The battle is key to both firms’
plans to control the way we view the
mobile internet, one of the fastest
growing and most lucrative technolo-
gy markets.
Apple sold 9m iPods, boosted by a
we are one
celebrate with us at certeco.co.uk
www.cityam.com
iPhones
14.1m*
iPad
4.2m*
QUARTERLY
REVENUE Macs
$20.3bn 3.9m*
QUARTERLY
PROFIT
iPods
$4.31bn 9m*
Picture: GETTY * 4th quarter sales
completely redesigned range of prod- od.
ucts, as well as 3.9m of its high-margin Apple now expects its first quarter
Mac laptop and desktop computers. revenue – traditionally its strongest –
It has now reported record revenues to hit $23bn as customers rush to buy
and profits for every quarter since its products in time for Christmas.
2007, before the onset of the recession Meanwhile, IBM reported a higher-
– a remarkable feat for a firm specialis- than-expected profit and raised its out-
ing in high-end products. look for the year. Its quarterly profit
The latest revenue figures are an rose to $3.6bn on revenue of $24.3bn.
astonishing five times higher than the It was buoyed by strong sales in its core
equivalent figure in 2005, with earn- hardware business but was hit by slug-
ings rising 10 times in the same peri- gish trading in technology services.
DEFENCE
CUTS
TRIDENT TO BE
DELAYED BY UP TO
FIVE YEARS P17
FREE
Critics slam
Labour bank
levy plans
▲
POLITICS
BY DAVID CROW
ALAN Johnson’s plan to raise at least
£3.5bn by clobbering the banks with
another levy was roundly dismissed
yesterday, with critics claiming it was
unworkable and could encourage
firms to quit the UK.
In his first major speech as shadow
chancellor, Johnson welcomed the
coalition’s plan for a £2.5bn levy on
banks, but said they should make an
even “greater contribution”.
He added: “In terms of scale, the
£3.5bn bill from Alistair Darling’s
bonus tax was absorbed with ease last
year. In a time of rising profits they
should be asked to maintain that
scale of contribution alongside the
existing levy proposal.”
The Institute of Directors (IoD) hit
out at the plans, insisting they would
force banks to consider relocating
overseas. “The chances of banking
business disappearing overseas would
increase significantly if the bank levy
was increased by another £3.5bn,” a
spokesperson for the IoD said.
Mark Littlewood, director general
of the Institute of Economic Affairs,
also warned that “bankers, stockbro-
kers and hedge fund managers will
continue to leave London if the tax
burden becomes uncompetitive”.
The Tories were quick to point out
that the bonus tax implemented by
Darling was only ever meant to be a
“one-off” measure. They also claimed
Johnson recently said a second levy
would need international agreement,
something which would be hard to
achieve. SPENDING REVIEW: P17-19
Certified Distribution
30/08/10 – 03/10/10 is 110,015
 2 News
Facebook couldn’t have been British
EDITOR’S LETTER
ALLISTER HEATH
IT is simply untrue that Britain doesn’t
produce any wealth and job creating
entrepreneurs any more. Take some of
the stories in today’s City A.M.; they
demonstrate that Britain retains a
vibrant start-up and growth culture.
Hugh Willis, 50, and Mark Poole, 49,
who founded BlueBay in 2001, are
today each £82m richer after they sold
their firm to Royal Bank of Canada for
£963m. Many in the City were sad-
dened last week at the premature
death at the age of 57 of Andrew
Beazley, who co-founded the epony-
mous Lloyds insurer in 1986; his firm
7th Floor, Centurion House,
24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Pictures Alex Ridley
Commercial
Sales Director Jeremy Slattery
Commercial Director Harry Owen
Head of Distribution Nick Owen
Distribution helpline
If you have any comments about the distribution
of City A.M. Please ring 0207 015 1230, or email
distribution@cityam.com
Editorial Statement
This newspaper adheres to the system of
self-regulation overseen by the Press Complaints
Commission. The PCC takes complaints about the
editorial content of publications under the Editor’s
Code of Practice, a copy of which can be found at
www.pcc.org.uk
Printed by Newsfax International,
Beam Reach 5 Business Park,
Marsh Way, Rainham, Essex, RM13 8RS
WHAT THE OTHER PAPERS SAY THIS MORNING
CANDOVER POISED TO PULL PLUG ON
THEME PARK
Candover, the private equity group, is
on the brink of ditching plans to sell
or float Parques Reunidos, the
Spanish theme park operator, after
offers from rival buy-out groups came
in below its €2bn ($2.8bn) price tag.
Apollo Management and a consor-
tium of Advent International and the
Carlyle Group both submitted final
bids for Parques on Friday. But the
two offers were below Candover’s ask-
ing price for the operator of 69 theme
parks in Europe and the US.
TERRA FIRMA SPENDS €670M ON
SOLAR ENERGY
Terra Firma, the UK private equity
group, has sealed its third renewable
energy deal by acquiring Italy’s
biggest solar power company from
Terna, the Italian national grid opera-
tor, for as much as €670m (£588m).
today confirmed that it is bidding for
its rival Hardy. Meanwhile, CQS is
floating a fund on the stock exchange;
the firm, one of London’s most suc-
cessful hedge funds, was founded in
1999 by Michael Hintze, a brilliant
Australian-born ex-Goldman trader.
London is home not only to estab-
lished global giants, from
GlaxoSmithkline to Barclays, but also
to thousands of newer companies
founded by self-starting, hard-working
and visionary entrepreneurs. But there
is one class of entrepreneurial firm we
don’t have. The UK is completely use-
less at producing truly revolutionary
start-ups that go from nothing to glob-
al domination in the space of a few
years. I’m thinking of the likes of
Facebook, Google, eBay or Amazon,
mass market, consumer firms set up
by scientifically brilliant, idiosyncratic
and absurdly young geeks.
The stories of many of the new gen-
eration of Silicon Valley tech billion-
aires are astonishing; they just
wouldn’t happen here. Take Mark
Citi and Hands
arrive in court
ENTERTAINMENT
▲
BY STEVE DINNEEN
A NEW York jury was yesterday asked
to decide who is lying in a dispute
between Guy Hands and Citigroup
over Hands’s £4bn buyout of embat-
tled record label EMI in 2007.
Hands and his onetime Citigroup
banker David Wormsley sat feet away
from each other as the trial, which is
expected to last three weeks, began in
US District Court.
Hands’s Terra Firma accuses
Wormsley and Citigroup of duping
him into thinking there was a rival
bid in the offing by private equity
firm Cerberus Capital Management
for the EMI company he coveted.
Both men are expected to testify,
with Terra Firma founder Hands, 51,
taking the witness stand today.
Wormsley “was playing two sides
FORD TO SLASH MAZDA STAKE
Ford is preparing to sell most of its
remaining interest in Japan’s Mazda
in a move that would all but end the
carmakers’ 31-year capital alliance.
Ford wants to reduce its 11 per cent
stake in Mazda to less than three per
cent, according to people familiar
with the matter. The total stake
would be worth about $372m at the
current market price. The US carmak-
er controlled 33 per cent of Mazda as
recently as 2008 until collapsing
motor industry sales forced it to sell
assets to raise cash.
GE PLANS RETURN TO US-MADE PRODUCTS
General Electric plans to invest
$432m in four US centres that design
and make refrigerators by 2014. The
move will reverse a long-term trend of
outsourcing its appliance manufac-
turing to places such as China. GE
argues that a combination of US pro-
duction quality and rising transport,
currency and labour costs have made
the moves practicable.
Zuckerberg, who co-founded Facebook:
he started programming when he was
in middle school, excelled in the clas-
sics, specialised in latin and went on to
study IT. While still at school, he
designed and programmed an app to
help workers in his dad’s office; he
built a version of the game Risk, as well
the Synapse Media Player that used
artificial intelligence to learn the
user's music listening habits. Microsoft
and AOL tried to buy him out and
recruit him, but Zuckerberg instead
made the app available for free and
went to Harvard. That is where he co-
founded Facebook in 2004 with his
roommates, before dropping out to
work on it full-time that summer, mov-
ing the start-up to California, enlisting
the help of specialist venture capital-
ists and creating a fresh batch of tech
billionaires. A cursory look at the CVs
of the founders of other revolutionary
US firms shows similar backgrounds;
Peter Thiel, the 43-year old billionaire
co-founder of PayPal and key investor
in Facebook, has already been a US
of the street at the same time,”
Hands’s lawyer, David Boies, told the
nine-member jury in a 45 minute-
long opening statement.
Boies said email evidence to be pre-
sented by Terra Firma at the trial
would show that Wormsley “secretly
promised EMI to use his relationship
with Guy Hands and Terra Firma to
help EMI” obtain added value.
Citigroup backed the EMI acquisi-
tion with £2.6bn in loans. The £4bn
deal came to epitomise the perils of
highly-leveraged buyouts.
Citigroup denies the allegations.
Hands alleges he was
hoodwinked into
paying over the odds
for EMI by bankers
at Citigroup
PREMIER MULLS $500M BID
One of Britain’s biggest independent
oil explorers is mulling a $500 mil-
lion bid for BP’s gas production busi-
ness in Pakistan in an attempt to
bolster its position in the troubled
South Asian nation. Premier Oil has
expressed an interest in the unit
alongside Mubadala, the Abu Dhabi
sovereign wealth fund, according to
people familiar with the talks.
OBAMA SET TO RATTLE CAMPAIGN TIN
As fundraiser-in-chief for a party in
dire need of money President Obama
will embark tomorrow on a break-
neck tour of the American West to
rattle the campaign tin for five pow-
erful allies locked in races that
Democrats cannot afford to lose.
Republican fundraising has surged in
the third quarter of the year, erasing
the financial lead that Democrats
enjoyed three months ago.
chess grand master, the founder of a
newspaper, the creator of an ultra-suc-
cessful hedge fund and a seed investor
in LinkedIn and others.
For a variety of cultural, ideological,
regulatory, economic and other rea-
sons, there is no way anybody could
deliver similar success stories here in
Britain. They used to in Victorian times
– but no longer. Polymaths don’t start
their own firms while at UK schools; it
is taboo to drop out of universities,
which remain poor incubators; the VC
infrastructure doesn’t work as well;
there is no UK equivalent to Palo Alto,
where kids can rent houses, eat pizza
and change the world. Somehow,
sometime, this needs to change.
Britain too needs epoch-defining new
firms that revolutionise industries,
change the way hundreds of millions
of people live their lives and force the
world to notice. In this week of austeri-
ty and gloom, we can but dream – and
reflect upon the fact that in some
countries, dreams often do become
reality. allister.heath@cityam.com
Plans to raise the retirement age have caused massive unrest
France strikes cause chaos
EU ECONOMY
▲
BY STEVE DINNEEN
FRANCE was this morning coming to
terms with a sixth day of strikes over
President Sarkozy’s plans to raise the
retirement age.
The nation ground to a halt as
train drivers, teachers, hospital staff
and utility workers joined the mass
protest against Sarkozy’s austerity
measures.
Fuel pumps were already running
dry after week-long strikes at refiner-
COWELL SECURES X FACTOR DEAL
Hit reality television show The X
Factor looks set to continue dominat-
ing Saturday viewing with the agree-
ment of a new three year deal
between ITV, Simon Cowell's Syco
Entertainment and the production
group FremantleMedia. The broad-
caster said it has also secured The X
Factor and the exclusive UK broadcast
rights to the American version of The
X Factor and America's Got Talent for
ITV2.
IPLAYER FOR RADIO COMING
UK Radioplayer, the BBC-backed single
online player for more than 400 UK
radio stations, will be made available
on YouView and other internet-con-
nected TV set top boxes, post launch.
The internet radio player, which will
allow users to listen to more than 200
radio stations, is set to go live in
February.
CITYA.M. 19 OCTOBER 2010
NEWS | IN BRIEF
New nuclear sites approved
Eight new sites for nuclear power sta-
tions were given the green light by the
coalition government yesterday, putting
the UK at the forefront of nuclear power
in Europe. In a remarkable U-Turn, Lib
Dem energy secretary Chris Huhne said
the new plants are vital. The list of
potential sites for hosting new nuclear
power plants had been cut to eight from
10. The government also dropped plans
to install a tidal barrage across the
Severn estuary. Bradwell, Essex;
Hartlepool; Heysham, Lancashire;
Hinkley Point, Somerset; Oldbury, South
Gloucestershire; Sellafield, Cumbria;
Sizewell, Suffolk; and Wylfa, Anglesey
have been approved.
Rockhopper to raise £200m
Oil explorer Rockhopper is hoping to
raise about £200m in a placing of new
shares to extend its drilling around the
Falkland Islands. Rockhopper said yes-
terday the money from the placing,
which is under way, would help it fur-
ther appraise its oil find at the Sea Lion
well, drill more exploration wells and
conduct further seismic tests across a
wider area.
Picture: GETTY
ies and less than half of scheduled air-
line flights will be running today.
Flights still arriving into France
have been warned to carry enough
fuel for a return journey. Truck driv-
ers slowed traffic through the city
centre and strikers staged sit-down
protests on train lines.
Despite overwhelming public sup-
port, the walkout appears to have
fallen on deaf ears, with the govern-
ment refusing to back down and the
senate expected to pass the bill
tomorrow.
ISRAEL DRILLS BIG GAS PROSPECT
Oil companies in Israel, led by Texas-
based Noble Energy Inc. this week are
expected to start drilling one of the
world's most promising natural-gas
prospects of recent years, according
to executives. Seismic surveys show
the Leviathan prospect, located 135
kilometers, or about 84 miles, off
Israel's northern coast, may hold 16
trillion cubic feet of natural gas,
enough to supply all of Israel's gas
needs for 100 years.
HUNGARY UNVEILS TAX PLAN
Hungary’s populist leaders unveiled a
new budget plan that singles out a
handful of industries for large, tempo-
rary tax increases in an effort to raise
funds and cut the state deficit. Prime
Minister Viktor Orban acknowledged
the proposed levies on telecom, energy
and retail companies would send a
“bad message” to investors.
CITYA.M. 19 OCTOBER 2010
Citi notches
up profits in “WHAT COULD
BE SIMPLER THAN
third quarter
▲
BANKING
BY VICTORIA BATES
US BANK Citigroup yesterday gave the
sector a much-needed fillip, as it beat
Wall Street expectations with a year-
on-year surge in third quarter net
profits to $2.2bn ($1.4bn).
Citi’s third consecutive quarterly
operating profit – which translated
into earnings of seven cents per share
– was mainly due to declining provi-
sions for credit losses, benefits and
claims, which fell to $5.9bn, the low-
est level in over three years.
The results were also boosted by
the regional consumer banking divi-
sion, which saw earnings rise five per
cent on the previous quarter due to
strength in the Latin America and
North America regions.
However, overall third quarter rev-
enue declined by six per cent to
$20.7bn and net income fell by a fifth
when compared to the prior quarter,
due to a one-off $800m pre-tax loss on
the sale of the Student Loan
Corporation and weakness in the
securities and banking division,
where fixed income markets trading
slumped.
There was some positive news for
US industrial output unexpectedly
falls leading to calls for more QE
▲
US ECONOMICS
US INDUSTRIAL output shrank last
month for the first time in more than
a year, in a sign the economy is in a
slow growth rut that appears certain
to lead to more monetary stimulus
from the Federal Reserve.
Another report yesterday showed
homebuilder sentiment rose this
month but remained at depressed lev-
els, fortifying views that the US cen-
tral bank would pump more money
into the economy at its 2 November
meeting.
“The industrial production report
illustrates, if anything, economic
growth is still slowing rather than
beginning to pick up again, which is
News 3
Ackermann: Reform
US BANK Q3 EARNINGS FORECASTS
Bank Q3 earnings per
share forecast
costs could explode
Bank of America $0.16 /share
Bank of New York Mellon $0.54 /share
Goldman Sachs $2.28 /share
State Street $0.83 /share
currently being discussed,”
▲
Morgan Stanley $0.15 /share BANKING
BY HARRY BANKS Ackermann told a banking regulation
conference yesterday. Ackermann said
Wells Fargo $0.55 /share THE economic cost of tougher global meetings with investors showed they
Source: Thomson Reuters capital rules for banks could explode if want banks to start meeting Basel III
further requirements on big banks are rules by 2013 – the start date leaders of
CEO Vikram Pandit not co-ordinated, Deutsche Bank chief the world’s top economies (G20) are set
said Citi has put in executive Josef Ackermann has said. to endorse next month.
place all the ele- “There can be no doubt that Basel III “While regulators have commend-
ments for contin- alone will have short- to medium-term ably set long transition periods for
ued profitability economic costs. These costs might attaining the new capital ratio, mar-
Picture: GETTY explode with all the add-ons that are kets... may not be quite so patient.”
”
the investment banking division,
which Citi said had recorded “signifi-
cantly higher” advisory revenues
from increased corporate activity and
SPREADS?
strong debt underwriting revenues.
Vikram Pandit, the chief executive
of Citi, which is still over 12 per cent
owned by the US taxpayer, said:
“Achieving our third straight quarter
of positive operating earnings is con-
NOTHING.
tinued evidence that we are success-
fully executing our strategy and we
believe we have put in place all the
elements for continued profitability.”
Citi’s results – which came after JP
Morgan Chase last week also beat
expectations with a $4.4bn net
income haul – encouraged investors
ahead of the rest of the US banking
sector reporting results this week.
Today sees figures out from Bank of
America, Bank of New York Mellon,
Goldman Sachs and State Street,
while Morgan Stanley and Wells
Fargo will report later in the week.
Analysts had slashed their forecasts
for the banks’ earnings over the past
week as concerns over the depressed
trading environment and the hous-
ing foreclosure crisis in the US
weighed on expectations.
BUSINESS FEATURES: P28
yet another reason for the Fed to
unleash QE2,” said Paul Ashworth, a
senior US economist at Capital
Economics.
Industrial production fell 0.2 per
cent, the first decline since June 2009,
the Fed said. Economists had expected
September’s industrial production to
rise 0.2 per cent, the same as in
August.
Separately, the National Association
of Home Builders/Wells Fargo
Housing Market Index rose three
points to 16 in October, beating econo-
mists’ expectations for a one-point rise
to 14. A reading below 50 indicates
that more builders view sales condi-
tions as poor than good. The index has
not been above 50 since April 2006.
CITYA.M. 19 OCTOBER 2010
UKLA endorsed by City
as consultation winds up
▲
REGULATION
BY MATTHEW WEST
THE UK Listing Authority (UKLA)
received backing from the City yester-
day, just as the government consulta-
tion on its future closed.
The Listing Authority Advisory
Committee (LAAC), the body which
represents the investment communi-
ty in its dealings with the UKLA, said
overall satisfaction with the authori-
NEWS | IN BRIEF
Governance Code gains support
Sixty-eight institutions have published
statements of support for the new UK
Corporate Stewardship Code, including
48 asset managers, 12 asset owners
and eight service providers. “A critical
mass of investors is coming through and
this is a very important first step,” said
Financial Reporting Council chairman,
Baroness Hogg. The Stewardship Code
is being introduced to replace the UK’s
ty had risen to 72 per cent compared
to 69 per cent in 2007, when the sur-
vey was last held.
The LAAC added 20 per cent of
advisers said there had been an
improvement in the UKLA’s effective-
ness over the past three years. And
the report found the UKLA per-
formed well against all three of its
objectives as set out by the Treasury.
Andrew Tusa, chairman of LAAC,
said the group was pleased the survey
corporate governance code and its prin-
ciples will include external reviewing of
boardroom procedures and regular elec-
tions for directors. As well as leading
UK institutions, the Code has attracted
the support of range of international
investors, including Calpers. Business sec-
retary Vince Cable is one of its cheerlead-
ers. The Stewardship Code aims to
promote more active discussion between
company boards and investors.
@ We understand expat life
@
@
MORE NEWS
ONLINE
www.cityam.com
News 5
had shown the performance of the
UKLA in a positive light.
But Tusa said he was concerned
that the UKLA’s good work could be
undermined by government plans to
merge it with governance body the
Financial Reporting Council (FRC), as
part of plans to reform Britain’s tri-
partite system of financial regula-
tion.
Most City bodies have already
voiced their opposition to the merger. Listing Authority Advisory Committee chairman Andrew Tusa
DGECWUGYGoTGNKXKPI
it every day
40°N – New York, USA
9JGPKVEQOGUVQ[QWTUCXKPIUCPFKPXGUVOGPVUKVoUIQQFVQVCNMVQRGQRNG
YJQWPFGTUVCPF[QWTURGEKƂEPGGFUCPFEKTEWOUVCPEGUCPFYJCVKVoUNKMGVQ
be an expat. As the part of the HSBC Group dedicated to expats, HSBC Bank
International has been serving the needs of people living and working abroad
for over 40 years.
r2GQRNGYJQWPFGTUVCPFGZRCVNKHGDGECWUGVJG[FGCNYKVJGZRCVUGXGT[FC[
r'ZRGTVUQPVJGITQWPFKPMG[NQECVKQPUCETQUUVJGINQDG
r1HHUJQTGUQNWVKQPUFGUKIPGFVQOCZKOKUGRQVGPVKCNVCZGHƂEKGPEKGUHQTGZRCVU
r1PNKPGDCPMKPIVJCVNGVU[QWXKGYCNN[QWTGNKIKDNG*5$%CEEQWPVUYQTNFYKFG
and make free transfers between them
Talk to people who understand expat life:
Call +44 1534 616079
Visit www.offshore.hsbc.com/am
HSBC Bank International is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation,
Investment and Fund Services Businesses and licensed by the Guernsey Financial Services Commission for Banking, Collective
Investment Schemes and Investment Business. Licensed by the Isle of Man Financial Supervision Commission. Deposits and
KPXGUVOGPVUOCFGYKVJQWTQHƂEGUKPVJG%JCPPGN+UNCPFUCPFVJG+UNGQH/CPCTGPQVRTQVGEVGFD[VJGTWNGUOCFGWPFGTVJG7-oU
(KPCPEKCN5GTXKEGUCPF/CTMGVU#EVHQTVJGRTQVGEVKQPQHTGVCKNENKGPVUKPENWFKPIVJG7-(KPCPEKCN5GTXKEGU%QORGPUCVKQP5EJGOG
CPFVJG7-oU(KPCPEKCN1ODWFUOCP5GTXKEG*QYGXGT*5$%$CPM+PVGTPCVKQPCN.KOKVGFKUCOGODGTQHVJG&GRQUKVQTU%QORGPUCVKQP
Scheme as set out in the Banking (Depositors Compensation) (Jersey) Regulations 2009. HSBC Bank International Limited is a
RCTVKEKRCPV KP VJG )WGTPUG[ $CPMKPI &GRQUKV %QORGPUCVKQP 5EJGOG6JG 5EJGOG QHHGTU RTQVGEVKQP HQT nSWCNKH[KPI FGRQUKVUo WR VQ
UWDLGEVVQEGTVCKPNKOKVCVKQPU6JGOCZKOWOVQVCNCOQWPVQHEQORGPUCVKQPKUECRRGFCVKPCP[ƂXG[GCTRGTKQF
&GRQUKVUOCFGYKVJQWTQHƂEGUKPVJG+UNGQH/CPCTGRTQVGEVGFD[VJG+UNGQH/CP%QORGPUCVKQPQH&GRQUKVQTU4GIWNCVKQPU(QT
further information on these Schemes, please visit the Important Information section on our website www.offshore.hsbc.com/1/2/
KORQTVCPVKPHQTOCVKQP%QRKGUQHNCVGUVCWFKVGFCEEQWPVUCTGCXCKNCDNGQPTGSWGUV#RRTQXGFHQTKUUWGKPVJG7-D[*5$%$CPMRNE6Q
help us to continually improve our service, and in the interest of security, we may monitor and/or record your communications with us.
© HSBC Bank International Limited 2010. All Rights Reserved. MC8364AC19673
CITYA.M. 19 OCTOBER 2010 News 7

BLUEBAY’S FOUNDERS SET FOR
BUMPER PAYDAY FROM DEAL
WITH ROYAL BANK OF CANADA
THE founders of BlueBay Asset
Management stand to make £81m
each from their remaining 8.5 per cent
stakes in the business if the sale of the
fund manager goes through as expect-
ed.
Chief executive Hugh Willis, and chief
investment officer Mark Poole are
already very wealthy men featuring in
the Sunday Times Rich List regularly.
Prior to founding Bluebay Willis, 51,
spent eight years at JP Morgan, where
he was co-head of its European credit
arbitrage group. He also held senior
positions within the global credit arbi-
trage group of Kleinwort Benson and
the fixed income management groups
of both Banca della Svizzera and Daiwa
Securities Trust and Banking.
Poole, 49, spent several years at Credit
Suisse First Boston and JP Morgan. He
also held senior positions within the
global credit arbitrage group of
Kleinwort Benson.
Willis and Poole cut their stakes in
Bluebay in February this year when
they each raised £21m by selling 6.5m
shares at 325p, although the firm said
the proceeds of that sale have been
ploughed back into the company
through new fund launches.
Today's cash takeover bid at 485p a
share, is at a 29 per cent premium on
Friday's closing price and a 49 per cent
premium on the founders' previous
share placing in February. The two
directors will be obliged to reinvest a
quarter of the money they receive as
part of the RBC deal - after tax - back
into Bluebay's funds. Following the
deal, if either man leaves the company
within three years, 40 per cent of the
money they have invested under the
agreement will be "subject to forfei-
ture". Both men have also agreed to
increase the proportion of their future
pay that will be deferred in bonuses
from 40 per cent to 60 per cent.
Other investors likely to do well from
the sale include Aegon Asset
Management, which owns over 4 per
cent of Bluebay and stands to make
around £39m from the sale, and Ignis
Investment Securities, which owns
over 3 per cent and stands to make at
least £29m. Willis and Poole founded
the company in 2001 and floated it on
the London stock exchange in 2006
with an initial valuation of £517m mak-
ing their stakes then worth £30m each.

Hugh Willis stands to make £81m from the sale of Bluebay

RBC makes
£963m offer
for Bluebay
collectively own 20.5 per cent of the
▲

BANKING
BY MATTHEW WEST
BLUEBAY Asset Management has
accepted a takeover offer from Royal
Bank of Canada (RBC), it said yester-
day, in a deal which values the fixed
income investment firm at £963m
($1.5bn).
Bluebay shareholders, if they agree
to the deal, will receive 485p per
share representing a premium of 29.1
per cent on the fund manager’s clos-
ing price of 375.70p on 15 October
and a 57.7 per cent rise on the average
closing price of Bluebay shares of
307.63p for the previous three
months.
Investors that register for Bluebay
shares by 5 November will also
receive the proposed dividend of 7.5p
per share for the financial year end-
ing 30 June 2010 meaning the total
price per share would be 492.5p.
Bluebay’s share price shot up near-
ly 30 per cent, or 111.6p per share, on
the announcement to 487.30p per
share.
The fund manager’s directors, who
company, have given RBC irrevocable
undertakings to vote in favour of the
deal. Assuming the other sharehold-
ers accept the offer at the company’s
annual general meeting on 23
November, RBC should take owner-
ship of the fund manager in early
December.
George Lewis, group head of RBC
wealth management, said: “This
acquisition will further RBC's strategy
to leverage our position as a top 10
global wealth manager, and continue
to expand our asset management
solutions for the benefit of our clients
around the world. Bluebay is an ideal
fit with RBC’s growing asset manage-
ment business.”
Separately, Bluebay reported pre-
tax profit increased some 118 per cent
to £50m on assets under manage-
ment (AUM) which increased 41 per
cent to $34.3bn for the year ending 30
June.
It also reported a 17 per cent – or
$5.7bn – increase in AUM to $40bn for
the three-month period to the end of
September.

JEREMY SILLEM firm offers strategic advice and will

CO-FOUNDER
SPENCER HOUSE
PARTNERS
Spencer House Partners (SHP) has
acted as Bluebay’s financial adviser for
over four years. During this time it
advised Bluebay on strategic direction
including the decision to list on the
London stock exchange in 2006. It has
also advised on talks with Royal Bank
of Canada. SHP was established in
2006 by Lord Rothschild and Jeremy
Sillem to provide banking services to
companies in the financial services
industry, with a particular focus on
asset management businesses. The
often take equity stakes in companies.
Prior to establishing SHP, Sillem was
the chairman of Bear Stearns
International from May 2000 until
January 2004. Before joining Bear
Stearns, he spent a 28-year career
with investment bank Lazard. In 2007
SHP advised a consortium including
Crestview Partners, RIT Capital
Partners and interests of Lord
Rothschild, on the acquisition of a 24.9
per cent interest in fund manager
Martin Currie with Sillem appointed
to the board as a non-executive direc-
tor. A year earlier SHP acquired a
minority stake in investment advisers
Partners Capital. It still plays an
active role assisting the management
with the strategic development of the
company. Sillem is a member of the
advisory board of Partners Capital.
 8 News
Grant Thornton reports 40pc
surge in annual pre-tax profit
▲
PROFESSIONAL SERVICES
BUSINESS and financial adviser Grant
Thornton yesterday said annual pre-
tax profits grew by 40.2 per cent to
£77.6m following its merger with
Robson Rhodes and a period of
restructuring and cost-cutting.
In the year to 30 June the firm’s
revenue rose 0.4 per cent to £379.7m.
Advisory revenue grew 11.1 per cent
Scott Barnes took over as chief executive at Grant Thornton in January 2009 to £151.2m but Assurance revenue
was down by 6.2 per cent to £135.5m
and Tax by 4.8 per cent to £93.0m.
Chief executive Scott Barnes said
Grant Thornton’s profitability and
cash position had created a platform
for growth as the firm emerges from
the difficult economic environment.
Grant Thornton’s strategy is focused
on acquisitions to build on its organic
growth. This week it acquired litiga-
tion support consultancy Legal Inc for
integration into its forensic practice.
Insurer Hardy
rebuffs offer
from Beazley
▲
INSURANCE
BY HARRY BANKS
LLOYD’S of London insurer Beazley
yesterday said it still hoped to clinch a
takeover of Hardy Underwriting after
its smaller peer rejected an initial
300p per share approach this month.
Dublin-based Beazley said its pro-
posed cash offer on 6 October valued
Hardy at about £155m. The approach,
which represented a 36 per cent pre-
mium to Hardy’s closing share price
on 5 October, was rejected by the
Bermuda-based insurer in a letter
dated 8 October.
Hardy said the offer substantially
undervalued the company and its
board had rejected it unanimously as
an opportunistic attempt to buy the
group. Hardy’ s shares rose 17 per
cent to 285p in early trading, before
closing at 290p. Shares in Beazley
rose 4.7 per cent to 119.9p making the
company the second-biggest riser in
the FTSE 250 share index. They closed
at 118p.
Analysts said the rise reflected
prospects that Beazley would earn a
positive return on its cash reserves –
generating almost no returns now
AIA to close IPO books early as
investors jump to buy the shares
▲
INSURANCE
THE PLANNED Hong Kong initial pub-
lic offering of AIA, the Asian life
insurance business of American
International Group (AIG), is set to
close two days earlier than anticipat-
ed after institutional investors rushed
to pledge their interest in buying the
shares, it emerged yesterday.
AIA has indicated that it will price
the IPO later this week within a range
of HK$18.38 (£1.49) and HK$19.68 per
share, raising up to $15bn (£9.43bn) as
a base scenario before the option to
release more shares is exercised. If
that happens, the firm could raise up
to $20.6bn in the world’s third-
CITYA.M. 19 OCTOBER 2010
“Our overall performance has been
excellent in these conditions. We
acted earlier than some others and
this is reflected in our 40 per cent
growth in pre-tax profits for the year
and, against the backdrop of the
recession, we have done well to main-
tain our overall level of revenue,”
Barnes said. “We need to increase our
profitability further but this was the
start I was looking for in my first full
year leading the firm.”
because of low interest rates – if the
deal goes ahead.
Consolidation among Lloyd’s insur-
ers, which offer cover against large-
scale risks such as natural disasters,
has long been mooted as cyclically
low insurance prices weigh on their
shares, although deals can be diffi-
cult to secure. Brit Insurance agreed
to a £850m offer from buyout firm
Cinven Capital Partners and Apollo
Management last month.
Beazley, which in July said its first-
half profit nearly quadrupled, said on
Monday it would continue talks with
Hardy’s board and shareholders with
the aim of agreeing a recommended
deal.
ANALYSIS l Beazley
124 p
118.00
120 18 Oct
110
112
19 Jul 6 Aug 26 Aug 16 Sep 6 Oct
biggest ever IPO, leaving its American
parent with a stake of just 32.9 per
cent.
AIA is understood to have easily
covered the share sale at the top of
the range after a two-week roadshow
with investors, prompting plans to
close its books today rather than
Thursday.
Among those investors lapping up
the offer are thought to be $300bn
Chinese state sovereign wealth fund
China Investment Corp and corpo-
rates such as China Life Insurance.
AIA yesterday also began its retail
offering, marketing the shares to the
public prior to the stock market
debut.
The secret to my
vanilla buttercream?
My technology
will never tell.
Since leaving his law career to pursue a passion for baking,
Warren Brown has found the sweet smell of success in
cakes made from scratch. But as his business grows, so
does the need for increased security.
Thanks to reliable Dell retail solutions backed by
Trend MicroTM Worry-FreeTM Business Security Services,
Warren can protect his critical data without slowing down
his systems. And with Dell PowerEdgeTM Servers based
on the Intel® Xeon® Processor Series, Warren enjoys
accelerated data encryption for faster performance of
his highly secure applications.

Dell, Intel and Trend Micro — the ultimate recipe

for keeping your data protected.

Talk to Dell at 0844 444 3180

Warren Brown
Founder of CakeLove, and
recipient of Dell’s IT Makeover

©2010 by Trend Micro, Incorporated. All rights reserved. Trend Micro, the
Trend Micro t-ball logo InterScan, and Worry-Free are trademarks or registered
trademarks of Trend Micro, Incorporated. All other product or company names
may be trademarks or registered trademarks of their owners.

Intel, the Intel logo, Xeon, and Xeon Inside are trademarks or registered
trademarks of Intel Corporation in the U.S. and other countries.
CITYA.M. 19 OCTOBER 2010 News 11

Qatar Holding snaps up 5pc

stake of Santander in Brazil
that are convertible into old or new string of deals this year and in the

▲
FINANCIAL SERVICES
BY HARRY BANKS
QATAR will take a five per cent stake
in the Brazilian unit of Spanish
lender Banco Santander, with a
$2.7bn (£1.7bn) investment that adds
to its big bank deals in recent years.
Santander, the Eurozone’s biggest
bank, will issue bonds to Qatar
Holding – the direct investment arm
of the Qatar Investment Authority –
shares in Banco Santander Brazil
after three years. The conversion
price is 23.75 Brazilian reales (£9) per
share and the bonds have an annual
yield of 6.75 per cent in dollars until
converted.
The bonds will bolster Santander’s
capital by about 25 basis points when
converted. Analysts have said the
Spanish bank may need to raise capi-
tal to boost its balance sheet after a
face of tougher new capital rules.
“This deal makes sense for
Santander since its latest buys have
eaten into capital, but considering
the benefit is still three years away, it
looks like they also wanted funds to
keep expanding in Brazil,” said Nuria
Alvarez, analyst at Rent Four.
Qatar bought a £1.75bn stake
Barclays in 2008 when the bank was
seeking to avoid a taxpayer bailout.

Eurotunnel is also bidding for the UK’s High Speed 1 rail link Picture: GETTY

Summer hols
give a lift to
Eurotunnel
despite intense competition,” said
▲

TRANSPORT
BY MARION DAKERS
EUROTUNNEL, the operator of the
Channel Tunnel, said yesterday a
bumper summer helped boost rev-
enues for the year so far by 10 per
cent.
The Paris-based firm said core rev-
enue for the three months to the end
of September grew eight per cent
compared to last year to €181.3m
(£159m). This rose to €212.1m when
sales from Eurotunnel’s recent rail
freight acquisitions were included,
the firm said in an update.
The company said truck shuttle
traffic rose 50 per cent in the third
quarter of the year, as commercial
transport began to recover. Sales of
Eurostar tickets rose three per cent to
2.66m in the quarter, despite the vol-
ume of passenger trains falling by 23
per cent compared to last year.
“The advantages the tunnel offers
made the difference in a market
which remained challenging and
Eurotunnel boss Jacques Gounon.
Eurotunnel made a joint bid with
Goldman Sachs and M&G earlier this
year for High Speed 1, the railway
development between London and
Folkestone being sold off by the gov-
ernment and valued at £2bn.
Gounon said the consortium was
working hard but wanted to “pay the
right price for the asset”. “We believe
we can generate synergies and can
bring additional traffic” to the high
speed line, he added.
ANALYSIS l Eurotunnel
6.25
6.5 € 18 Oct
5.5
4.5
19 Jul 6 Aug 26 Aug 16 Sep 6 Oct

Northeast Utilities will buy rival

Nstar for $4.2bn in all-stock deal
shareholders. “Bigger is better” for
▲

UTILITIES
NORTHEAST UTILITIES will buy rival
NStar in a $4.17bn (£2.63bn) all-stock
deal to create a utility that will pro-
vide power and gas to more than half
of the customers in New England, the
companies said yesterday.
The firms said the increase in scale
would allow them to better shoulder
their investment plans, and would
also be beneficial to the company’s
the two companies, NStar chief execu-
tive Thomas May said. “The deal
allows both of our shareholders to
enjoy higher earnings and dividend
growth than if we were alone.”
The deal calls for the exchange of
1.312 common shares of Northeast
Utilities for each NStar share. That
translates to around $40.28 for each
NStar share, a roughly two per cent
premium on its pre-approach price.
 The Capitalist
12
PETROFAC’S AYMAN ASFARI NAMED
AS UK ENTREPRENEUR OF THE YEAR
IN A climate where repairing the fraz-
zled economy is paramount, it
seemed fitting to see hundreds of the
UK’s most successful company bosses
and their advisers, bankers and
friends gather at the Park Lane Hilton
last night to celebrate the heroes of
the recovery – entrepreneurs – at the
Ernst & Young Entrepreneur of the
Year Awards.
The most coveted gong bestowed
Stop dreaming
about a C-Class.
Start driving one.
For more information on our current
offers or to book a test drive visit
mercedes-benz.co.uk/offers
upon the country’s wealth creators
each year – the overall UK entrepre-
neur of the year – this time round
went to Petrofac chief executive
Ayman Asfari, a name which has had
eagle-eyed stockpickers foaming at
the mouth for years.
Having built Petrofac into a £5bn
business since its £750m flotation in
2005, Asfari is always hungering for
more – and had the following inspira-
CITYA.M. 19 OCTOBER 2010
tional, if somewhat cheesy, advice for
his fellow entrepreneurs.
“Aim high, stick the course and
shoot for the stars,” he told the guests.
“There’s no limit to what you can
achieve.”
PROUD AS PUNCH
Equally stirring, if less poetic, was last
year’s winner Michael Spencer, the
Above: Petrofac chief executive Ayman Asfari collects his award after being named EY’s
2010 UK entrepreneur of the year
THE ACADEMY
YOUR PIECE OF HISTORY
KITCHENER HOUSE & FARADAY HOUSE
A UNIQUE RANGE OF APARTMENTS IN
HISTORIC SETTINGS IN WOOLWICH
SPACIOUS 2 BEDS FROM £260,000
Woolwich Arsenal City Airport Greenwich Canary Wharf London Bridge
DLR & Mainline 6 mins 12 mins 17 mins 19 mins
WWW.THEACADEMY-WOOLWICH.COM
BORN 1741. REBORN 2008.
WOOLWICH COMMON, LONDON SE18 4JJ
ENQUIRIES
020 8856 0034
All photography of The Academy, Woolwich. Note: All journey times are approximate and taken
from www.tfl.gov.uk
CITYA.M. 19 OCTOBER 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
boss of inter-dealer broker Icap.
Spencer went on from the UK
awards last year to clinch EY’s World
Entrepreneur of the Year gong in
Monaco in June, from the jaws of 49
rivals from across the globe.
“When they announced that I’d
won, we went crazy,” Spencer chuck-
led. “We danced around the place
with the Union Jack; you’d all have
been proud as hell!”
Spencer’s girlfriend Sarah
(Marchioness of Milford Haven) was
undoubtedly proud as hell as well,
especially as her man paid special
tribute to her influence last night.
“I went over [to Monaco] with my
Above: Lauren girlfriend, who’s also here tonight,”
Davey of Ernst & the incurable romantic quipped. “She
Young with Sam has certainly been a talismanic
Rossiter and Tina success, I must say…”
Sen from the
London Stock
Exchange, catch- GOLDEN OLDIES
ing up over a Leading the pack in the rest of
glass of bubbly this year’s awards, presented by
before the dinner BBC news stunner Fiona Bruce,
were a pair of old-timers
from the corporate world.
Lord Young of Graffham, the
former president of the
Institute of Directors, was
given a special award in
recognition of his contribu-
tion to entrepreneurship over
the past 50 years (“this is the
very first award I’ve ever
Above: SuperGroup chief executive Julian Above: Michael Spencer, chief executive of won”, Young smiled,
Dunkerton receives his award from Ishbel Icap and winner of last year’s UK and global cradling the trophy to his
Macpherson, a board director at Speedy entrepreneur of the year awards chest); while Brian Souter of
Hire and Game Group Stagecoach won the master
Left: Award winner James Benamor, boss of entrepreneur of the year
Pictures: Alex Ridley/ CITY A.M Richmond Group, and partner Tina Patterson award, bestowed upon him
13
in absentia by the CBI’s director-gener-
al Richard Lambert.
IN STYLE
Julian Dunkerton, the chief executive
of retailer Supergroup, won the retail
entrepreneur gong, after floating his
company on the stock exchange in
March and more than doubling its
share price in half a year.
“There’s great product and then
there’s fashion and they’re two differ-
ent things,” Dunkerton insisted,
shunning the cult status imposed
upon his brand by the unofficial
patronage of image-conscious stars
like David Beckham. “It’s not all
about the catwalk – we’re about creat-
ing the enduring classics.”
Meanwhile, James Benamor,
chief executive of Richmond
Group, won the consumer prod-
ucts and services category – fitting-
ly in the current climate, since his
company provides funding
to those who’s been
refused credit by the large
banks; Telecity Group’s
Michael Tobin took the
IT services gong; Nick
Jenkins, founder of per-
sonalised greeting card
site Moonpig, win the
digital and innovation
award; and the social
entrepreneur category
went to Sophi Tranchell,
founder of Divine
Chocolate – which is 45 per
cent owned by the
Ghanaian farmers which
produce its cocoa.
 14 News CITYA.M. 19 OCTOBER 2010

Rio Tinto and BHP Billiton to

abandon iron ore joint venture
assets, and strengthens the hand of and would have reaped more than
▲

RESOURCES
BY HARRY BANKS
BHP BILLITON and Rio Tinto yesterday
confirmed they were ditching a plan
to form the world’s biggest iron-ore
joint venture, in a victory for steelmak-
ers that could prompt both miners to
step up competing expansions.
The announcement marked the sec-
ond failed attempt in three years by
BHP chief executive Marius Kloppers
to buy into Rio’s superior iron ore
steel mills which feared the pair would
gain too much pricing control.
The long-expected news also left
BHP focusing squarely on a $39bn
(£24.5bn) hostile bid for fertiliser
group Potash, no longer distracted by
the $116bn marriage of the two min-
ers’ mammoth Australian iron ore
operations. A joint venture between
Rio and BHP, the world’s second and
third largest iron ore miners, would
have eclipsed Brazil’s Vale, the largest,
$10bn in savings from combining rail
and port operations.
A number of City firms including
Credit Suisse, Morgan Stanley and
Macquarie will miss out on fees from
Rio, while Lazards and Gresham
Partners were signed up to advise BHP.
BHP and Rio had a fall-back option
to share some iron ore infrastructure
in the event the full joint venture
failed, but this “Plan B” is also in doubt
following the strength of opposition.
New BP boss Robert Dudley has sold a string of assets since he took the top job Picture: REX

BP links bonus
pay to safety
40,000 boe per day. The sale allows

▲
ENERGY
BY MARION DAKERS
FOURTH quarter bonuses for staff at
embattled oil major BP will be based
entirely on safety, chief executive Bob
Dudley has said.
Dudley has sent an email to all staff
members saying their performance
in terms of safety and risk manage-
ment would be the only factor used to
work out bonuses.
“We are taking this step in order to
be absolutely clear that safety, compli-
ance and operational risk manage-
ment is BP’s number one priority,
well ahead of all other priorities,” he
added.
Meanwhile, BP’s multi-billion dol-
lar asset sale continued yesterday as it
offloaded its oil and gas fields in
Vietnam and Venezuela to its Russian
joint venture TNK-BP for $1.8bn
(£1.13bn).
BP said yesterday the assets repre-
sented reserves of 270m barrels of oil
equivalent (boe), with production of
TNK-BP to expand beyond its tradi-
tional Russian base.
“The acquisitions in Venezuela and
Vietnam mark a milestone in TNK-
BP’s strategic expansion in the global
energy market,” said Mikhail
Fridman, TNK-BP executive chairman
and one of the four Russia-connected
billionaires who own the other 50 per
cent of TNK-BP.
Dudley, who replaced Tony
Hayward after the Deepwater
Horizon oil spill, said: “Today’s agree-
ment is further evidence of the rapid
progress BP is making towards the
divestment target we set out in July.”
The company said in July it aims to
raise up to $30bn in cash over the
next 18 months to help pay for the
aftermath of the Gulf of Mexico oil
spill in April.
BP had already offloaded more
than $11.5bn of assets before yester-
day’s deal, the biggest of which was
the sale of $7bn of North American
assets to Apache Corp late last month.

ANALYST VIEWS: WHAT DO YOU MAKE OF

BP’S ASSET SALES SO FAR? Interviews by Marion Dakers

TONY SHEPARD | CHARLES STANLEY

“ It seems to be going well for BP, with this sale fol-

lowing on nicely from the Apache deal. BP offloads non-core

”
assets regularly, so has had some practice. TNK would like to
expand too, so it’s a good move for it.

MARK PRIEST | ETX CAPITAL

“ BP doesn’t particularly want to be making these

sales, but it doesn’t have much choice. On the other hand,

”
the company doesn’t seem in as much trouble as it did a few
months ago, and it is managing to raise cash.

GREG SMITH | FAT PROPHETS

“ By selling to TNK-BP, BP still has an interest in the

assets it has offloaded. It doesn’t feel like it has sold the

”
crown jewels of the company just yet, and BP is getting fair
prices without a sense of urgency in the deals.
Dell took the technology risk
out of our risk management business.
The Dell Solution Innovation Centre proved to PensionsFirst that their game-changing risk management software
would work in their IT environment. And Dell continues to help them take the guesswork
out of deployment by combining Dell PowerEdge™, based on the Intel® Xeon® processor series, with tested
and proven configurations for leading applications.

Dell server solutions. Speed deployment and grow your business more efficiently.

Talk to Dell at 0844 444 3180

Timothy Lyons
Founder and CEO of PensionsFirst,
a risk management software provider.

Fiona Page
Partner and CTO of PensionsFirst

PensionsFirst is European Pensions

2010 Technology Provider of the Year.

Intel, the Intel logo, Xeon,

and Xeon Inside are trademarks
or registered trademarks of
Intel Corporation in the U.S. and
other countries.
¸øÏb¸Ïú¦ìÉF§­ÉžĂžÉ§úæ

$FúáF¸§§ž³ælølW{bF­{
­Fă¸áž³ðšžæĀ{áăæɸðÏ
¸úáæÖúFá{Öú{{³$FúáFbš{b¦{ož³ð¸Fˆ|{§žb{¸³
3ú{{³5ðá{{ðFð€k¿òF­¸³ážoFăÏð€k¿ëF­lāšž§æð
æžÉɞ³¸³FbFÉÉúbbž³¸læš{Þoá{Foš{ᚸá¸æb¸É{l榞­­{o
ðš{³{āæš{Fo§ž³{ælɞb¦{oFá{æðFúáF³ð¸³A{§Éˆ¸áož³³{á
𸳞šðāžðšðš{žá§æF³o&{oðš{­F§§ð¸§{ððš{­¦³¸āÏ

§§ž³F­¸á³ž³Þæā¸á¦ˆ¸áðš{³{ā­Fă¸áÏ

2F§­2žĂž2§úæ
'¸ā¸³2FăN¸ˆ¸á¸³§ăî¿ĉ´Ï´´T
áðžæð5{áž{æWFb¦b¸Ā{á4

$žˆ{­¸Ā{æˆFæðϸ³Þð­žææ _PI\Q\PI[\WWNNMZÏ

T&ž³ž­ú­¸ˆî¿ĉð¸ÉúÉá{Öúžá{oÏm¸Éăថšðøĉ¿ĉ{ā§{ðð2Fb¦Fáo{Ā{§¸É­{³ð¸­ÉF³ăl$Ï2Ï7š{ž³ˆ¸á­F𞸳b¸³ðFž³{oš{á{ž³žææúW¥{bðð¸bšF³{āžðš¸úð³¸ðžb{Ï2F§­l5ă³{áăl7¸úbšæð¸³{F³o

ā{W)5Fá{ðáFo{­Fá¦æ¸ˆ2F§­l³bÏlFæúWæžožFáă¸ˆ{ā§{ðð2Fb¦Fáo¸­ÉF³ăÏmøĉ¿ĉˆ¸úáæÖúFá{Ïmøĉ¿ĉ5$¸³o¸³$ž­žð{oÏmøĉĉƒøĉ¿ĉA{§ÉÏ§§¸ðš{áWáF³oæF³oÉá¸oúbð³F­{æFá{¸á­FăW{
ðáFo{­Fá¦æ¸ˆlF³oFá{úæ{oð¸žo{³ðžˆăÉá¸oúbðæ¸áæ{áĀžb{済lðš{žáá{æÉ{bðžĀ{¸ā³{áæÏ5bá{{³ž­F{æ枭ú§Fð{oÏ
CITYA.M. 19 OCTOBER 2010
Maude in bid to find savings
by delivering services online
▲
POLITICS
BY DAVID CROW
FRANCIS Maude, the cabinet office
minister, yesterday said the govern-
ment would cut waste and introduce
radical reforms in a bid to protect jobs
and frontline public services from
swingeing cuts.
Maude has drafted in Martha Lane
Fox, the government’s digital adviser
and founder of travel site
Replacement
of Trident set
to be delayed
▲
POLITICS
BY STEVE DINNEEN
DAVID Cameron will today unveil the
most drastic cuts to the defence budg-
et in a generation, including plans to
delay the replacement of the sub-
marines that can launch Britain’s
nuclear deterrent by up to five years.
Putting off the Trident replacement
will save an estimated £750m but puts
Cameron on the back foot after criti-
cising the Lib Dems before the election
for failing to back the programme.
His government’s defence review is
also expected to slash the number of
army troops by 7,000 and scrap the
iconic Harrier jump jet.
However, he will argue that the
changing national security landscape
means that the billions saved on
defence spending will not leave the UK
vulnerable. According to the National
Security Strategy released yesterday,
CITY VIEWS: DOES ALAN JOHNSON HAVE THE
RIGHT IDEA ABOUT HOW TO CUT SPENDING?
IAN RANKIN | CANOPIUS
“I do think the cuts need to be intro-
duced more slowly, as Labour have sug-
gested. I’m worried that the
Conservatives will undo the
work done on the NHS and
schools by cutting too soon.”
JITENDRA BAKSHI | XL INSURANCE
“I believe the Conservatives are correct in
their approach. It’s the same as in people’s
own finances – you need to pay off debts
as soon as possible. I’m from India,
where they are also cutting the
deficit.”
Spending Review 17
lastminute.com, to see if some services savings achieved so far.
can be delivered through an online- The coalition has saved £402m by
only model to reduce costs. axing ID cards, he said, while a further
He said: “In an age when 96 per cent £18m had been saved by vacating 20
of all 25-34 years olds are internet government buildings, Maude said.
users, just 13 per cent of our contact Around £27m has been cut from the
with citizens is currently carried out government advertising budget.
online.” Meanwhile, plans to renegotiate
The coalition will leave “no stone contracts with suppliers have “pro-
unturned” as it seeks to root out waste gressed quickly”, Maude said, result-
and find efficiencies in the public sec- ing in an estimated £800m of savings
tor, Maude said, as he laid out a raft of by the end of this year. Francis Maude said more services will be delivered over the internet Picture: PA
the most high priority security risks
facing the UK are now terrorism, cyber
attacks and natural disasters.
This means stockpiles of traditional
military hardware such as tanks and
fighter jets could eventually become
superfluous to requirements.
Altogether the defence budget will
be cut by around eight per cent over
the parliament.
The coalition is expected to give the
go-ahead to a £5.2bn programme to
build two new aircraft carriers.
However, for up to eight years there
will be a “capability gap” where there
will be no available jets for the first
carrier. Cameron will put this down to
Labour’s legacy of debt and poor man-
agement of military contracts.
There will also be more cooperation
with British allies, especially the
French, who will be granted limited
use of the aircraft carriers and take
part in joint training exercises.
Interviews by Marion Dakers
 18 Spending Review
Alan Johnson gave his first major speech as shadow chancellor yesterday
@ @ MORE NEWS
ONLINE AT
www.cityam.com
Johnson: tax
bankers to
soften cuts
▲
POLITICS
BY DAVID CROW
ALAN Johnson yesterday unveiled
Labour’s strategy for reducing the

deficit, backing his predecessor’s plan
to halve it within four years but argu-
ing for higher taxes on banks to soften

the blow of spending cuts.
Speaking to an audience of account-
ants at KPMG’s headquarters, the shad-
ow chancellor said Alistair Darling was
²
%DQNWR/HZLVKDPLQPRUQLQJ
     right to plan to halve the deficit by
2014-15, but that he had “looked again
SHDNKRXUV
 at the way in which we deliver that
reduction”.
       He added: “My view is that specific,
targeted tax changes need to do more
     of the work”.
 Proposing a split of around 60 per
cent spending cuts to 40 per cent tax
hikes, Johnson said Labour would raise
       £7.5bn more in taxation than Darling
  had planned, but that it still wanted to
achieve an overall fiscal consolidation
of £83bn in real terms by 2014-15.
Johnson said he would back the
coalition’s £2.5bn banking levy, as well
as £1.5bn of further tax increases, such
as freezing the income tax threshold
for higher rate payers from 2013 and
increasing capital gains tax.
QUOTES FROM ALAN JOHNSON’S
FIRST MAJOR SPEECH AS
SHADOW CHANCELLOR
On the deficit:
“The government suggests that the
deficit was avoidable and the emer-
gency Budget unavoidable. The truth is
actually the reverse. The deficit was
'/5$EULJKWHUFRPPXWH
'/5$EULJKWHUFRPPXWH ZZZGOUFRXN
ZZZGOUFRXN unavoidable and the Budget was not
only avoidable, but wrong.”
On taxation:
“We will support the rise in Capital
Gains Tax in the emergency Budget.
There is also a case for freezing the
basic rate limit in 2013-14 as proposed.
And let me be clear – we are not pro-
posing to halve the deficit with increas-
Picture: PA
But the centrepiece of his speech
was a plan to raise a further £3.5bn
from the banks, either through a
repeat of Darling’s bonus tax or via
some kind of levy on remuneration
and profits.
That amounts to an extra £7.5bn of
tax rises on top of those set out by
Labour before the election, meaning
the party would now only cut spend-
ing by in real terms £44.5bn com-
pared to £52bn. The coalition is
planning real terms spending cuts of
£83bn.
Aides to Johnson said he was agnos-
tic about how to raise the extra rev-
enue from banks, but that the entire
£7.5bn package would be spent on cap-
ital projects. He would cut capital
spending by 17 per cent, compared to
the 33 per cent pencilled in by Darling.
Like Darling, chancellor George
Osborne has adopted a ratio of around
70 per cent cuts to 30 per cent tax
rises, although he wants to achieve a
much larger consolidation of £113bn
by 2014-15.
Johnson said his plans implied cuts
to departmental expenditure of £34bn
or eight per cent, almost half of the
coalition’s 14 per cent or £61bn of
departmental cuts.
es in personal taxation beyond those
already announced.”
On another banking levy:
“The government, which claims ‘fair-
ness’, has put itself in the absurd posi-
tion of saying that children should play
a bigger role in getting the deficit
down than the banks. The banking sec-
tor is contributing £2.4bn, while child
benefit freezes and cuts will raise sub-
stantially more. So families take the
strain while bankers grab the bonuses.”
On Labour’s plans for cuts:
“We’re not in the business of doing a
shadow spending review. But we will
be clear on the scale of cuts we think is
necessary. And it is significantly less
than the government believes is right.”
CITYA.M. 19 OCTOBER 2010 Spending Review 19

NHS should not be shielded from the axe

was during the mid-1980s boom
when unemployment was falling and
so benefits costs dropped. The largest
inflation-adjusted cuts achieved since
WWII were those imposed by the IMF
in the mid-1970s – four per cent – but
these only lasted two years before
spending rose again, whereas the
COMMENT coalition cuts programme will
ANDREW LILICO involve cutting for four straight years.
DEEPER THAN THATCHER’S CUTS
ringfences to NHS and international
development spending, meaning that
non-ringfenced spending must fall
about 25 per cent. Given that
Defence appears to have settled for
about eight per cent cuts and the
schools budget has been ringfenced,
that means cuts elsewhere are likely
to need to be around 35 per cent.
That will mean some combination of
pruning back right to the base in
those departments such as Business,
would prove necessary to meet a 35
per cent target — such as cutting the
local government grant by a quarter
to a third; the prisons budget by a
blunt 20 per cent; and policing budg-
ets by as much as 20 per cent.
NO EASY CHOICES
There are no easy choices here, but
some decisions have made matters
harder. What justification is there,
really, for protecting the bloated NHS
than we thought” relevant to the
question of whether NHS spending
could be cut? Refusing to cut in the
areas where spending had risen most
– health and education – is bound to
result in avoidable unpalatable cut-
ting.
That leaves the welfare budget.
This was clearly too high – principally
because having five million people on
out-of-work benefits at the height of
the boom was a huge policy failure of

S
EVERAL commentators recently
have noted that public spending
is set to rise in cash terms. Even
after adjusting for inflation,
total managed expenditure is set to
fall by only 3.6 per cent. Can this real-
ly be so tough?
Answer: emphatically, yes. Even at
the overall level, a fall of 3.6 per cent
is very significant. The maximum
peak-to-trough cuts Mrs Thatcher
achieved were 3.1 per cent, and that
So the coalition cuts are going to be
deeper than Thatcher’s, without the
benefit of a boom, and much longer-
lasting than the IMF’s. But this only
scratches the surface of the challenge.
For a start, the UK’s recent deficits
have been unprecedented, meaning
that debt interest costs will surge, so
cuts in the rest of spending will be
much larger. Cuts in departmental
spending will be about 13 per cent.
Then, of course, there are the
Local Government, and Energy,
where there is considerable discre-
tionary spend, and fundamentally
unpalatable cuts elsewhere.
Imagine the political reaction even
to plausible cuts such as to budgets
for after-school and breakfast clubs,
science research, the Olympics, high-
er education teaching, the
Technology Strategy Board, and the
policing budget. And that is before
we consider the unpalatable cuts that
budget – up one third in real terms
over the last parliament alone – from
any cuts while cutting budgets enor-
mously that had not risen at all over
the last parliament?
Obviously the Conservatives made
pre-election promises to ringfence
NHS spending, but the Liberal
Democrats made pre-election promis-
es not to support tuition fees. What is
the difference? Why weren’t the
arguments that “matters were worse
the last administration.
Can the coalition produce credible
plans to reduce the numbers of wel-
fare recipients, to limit the pain for
departments that had not previously
had large spending rises while still
ringfencing spending where the
spending rises before were the
largest? Only George Osborne can tell
us.
• Andrew Lilico is the chief economist of
Policy Exchange.

HOW THE DEFICIT REDUCTION PLANS COMPARE | CONSOLIDATION BY 2014-15 IN REAL TERMS

£113bn
Total
£83bn
Spending cuts
£29bn
Taxation
consolidation
GEORGE OSBORNE, CHANCELLOR George Osborne’s
73% 27%
emergency
Budget outlined
£83bn of spend-
ing cuts

£73bn
Total
£44.5bn
Spending cuts
£28.5bn
Taxation
HOW THE FISCAL FORECASTS COMPARE
LABOUR
consolidation 2010-11 2011-12 2012-13 2013-14 2014-15

Public sector 10.5 8.3 6.6 5.0 3.9

ALAN JOHNSON, SHADOW CHANCELLOR net borrowing*
61% 39%
Public sector 62.2 68.2 71.8 73.7 74.4
net debt*

£73bn
Total
£52bn
Spending cuts
£21bn
CONSERVATIVES
2010-11 2011-12 2012-13 2013-14 2014-15
Taxation
consolidation Public sector
net borrowing*
10.1 7.5 5.5 3.5 2.1

Public sector 61.9 67.2 69.8 70.3 69.4

ALISTAIR DARLING, EX-CHANCELLOR net debt*
71% 29% *as a share of GDP

Your financial success depends on making

www.WorldMoneyShowLondon.co.uk
informed investment decisions. Find complete show details, learn how to attend,
Learn the experts’ personal strategies for profiting LONDON | 12-13 November 2010 and register FREE online, or call 00 800 1414 8888.
from the markets at The World MoneyShow. Queen Elizabeth II Conference Centre Mention priority code 020208.

Stay afloat and ride the wave to success in volatile markets…

Gillian Tett Sandy Jadeja Louisa Bojesen Bill Bonner Russ Mould Roger Bootle • Discover top investing methods from experts
Uncover new strategies for diversification to stabilise your portfolio in difficult times and allow it to thrive in
more stable markets.
• Assess the latest investment tools & strategies
Explore and evaluate the latest financial products and services in one convenient location, to determine what
best suits your needs.
• Interact with like-minded market movers
Ask questions of the foremost financial experts, talk shop, and exchange trading and investment ideas with
other attendees.
• Attend FREE and pave the way to your future profits
Gain the resources that will give you the edge needed to become a more independent and profitable investor.
a Production of Media Partner
 20 Consumer News
Pernod Ricard sells Lindauer
▲
CONSUMER
BY HARRY BANKS
PERNOD Ricard has sold its Lindauer
New Zealand sparkling wine brand
to a consortium composed of brewer
and drinks distributor Lion Nathan
New Zealand and contract winemak-
er Indevin.
The NZ$88m (£42m) sale
includes a number of other minor
wine brands from Gisborne and
Hawke’s Bay.
Lion Nathan produces Steinlager
and Speight’s beers and distributes
leading brands including Smirnoff
and Bacardi in the New Zealand
Europe lager
sales tumble
at SABMiller
▲
CONSUMER
BY JOHN DUNNE
BREWER SABMiller yesterday report-
ed a recovery in beer sales boosted by
the emerging markets of Africa and
Asia – sales of lager dipped by five per
cent in Europe.
Overall the company beat forecasts
with a slim one per cent rise in half-
year volumes.
The London-based brewer of
Peroni, Grolsch and Miller Lite said
yesterday growth in these markets
and also in South Africa helped offset
volume dips in Europe and North
America in April to September.
On Europe SABMiller said: “The
industry continued to be affected by
weak economic conditions across the
region. Poland, the Czech Republic
and Romania suffered particularly
poor sales.
Beer volume growth, price rises in
the prior year, some raw material cost
cuts and the strengthening of key
operating currencies against the US
dollar helped SABMiller’s results to
meet its own expectations.
“We see this statement as a small
positive for SABMiller and retain our
‘overweight’ recommendation,” said
analyst Matthew Webb at JP Morgan
London hotels see rises after summer Puma sets up new unit as
brings tourists flocking into the capital it hunts for acquisitions
▲
LEISURE
BY JOHN DUNNE
AVERAGE room rates in London
hotels have increased for the first
time in two years, as the summer
weather boosted trade.
Revenues per available room
(revpar) jumped by 19.8 per cent to
£117 in the quarter to 30 September –
fuelled by a 15.6 per cent increase in
average room rates, according to sur-
vey by accountants Deloitte.
Across the country revpar jumped
market.
Indevin operates wineries in
Marlborough and Hawke’s Bay.
Meanwhile, elsewhere in the New
Zealand wine industry, Delegat’s
Wine Estate is reported to be in the
process of buying out the remaining
shares it doesn’t already own in
Oyster Bay. It already has a 54.9 per
cent stake. The sale is subject to
Overseas Investment Office approval.
The sale includes the sparkling
brands Aquila, Bernadino, Chardon,
Lindauer and Verde and seven
brands in Pernod Ricard’s still wine
portfolio, including Bensen Block,
Corbans, Huntaway, Jackman Ridge,
Cazenove, the company’s own
broking adviser.
Webb left his earnings per share
forecast unchanged at 186 cents for
the year to March 2011.
The brewer, which earns over 80
per cent of its profits in emerging
markets Colombia, South Africa,
Poland and China, is seen by analysts
as interested in buying Foster’s
Group’s beer interests or the African
beer business of France’s Castel.
Meanwhile, the company said it
had resumed reporting results from
its 36 per cent stake in Delta Corp, the
biggest brewer and soft drinks bottler
in Zimbabwe. SABMiller had stopped
including Zimbabwe results in 2006
because of the country’s shattered
economy.
ANALYSIS l SABmiller
p 2,069.00
2,100 18 Oct
2,050
2,000
1,950
1,900
1,850
19 Jul 6 Aug 26 Aug 16 Sep 6 Oct
10.8 per cent to £49 after a six per
cent increase in occupancy to 74.9 per
cent and a rise of 4.5 per cent in the
average price charged to £65.
Demand for rooms in the capital
grew thanks to an influx of Arab trav-
ellers in the lead up to Ramadan, as
well as London Fashion Week and
London Design Festival towards the
end of the quarter.
However, Deloitte predicted
London’s revpar will fall 5.2 per
cent next year with occupancy and
room rates falling 3.2 per cent and
Riverlands, Saints and Timara.
Pernod Ricard New Zealand manag-
ing director Fabian Partigliani said
the company would continue in New
Zealand with the Brancott Estate,
Stoneleigh, Church Road, Deutz,
Boundary and Triplebank brands.
Some experts speculated that the
sale could make it more difficult for
Fosters to offload its wine division.
Analysts have said that the compa-
ny will be unwilling to accept less
than its book value of around
$3.1bn. Foster’s last month rejected
an indicative offer from New York-
based Cerberus Capital for between
$2.3bn (£1.4bn) and $2.7bn.
Company’s profit from
emerging markets
SABMiller is trading in line with forecasts
Emerging markets offer hope
as European profit dries up
SABMILLER yesterday painted a
mixed picture with Europe lagging
behind emerging economies – par-
ticularly in Africa – with lager sales.
The company has even resumed
reporting results in Zimbabwe after
the stabilisation of the currency.
On an organic basis volumes were
up 14 per cent in Africa while drop-
ping five per cent in Europe. It is a
trend which has been showing up
on the data for some time now. The
company has been busy buying up
local brands and planning for the
future as the UK market, and oth-
ers, go flatter. As the world economy
picks up the drinks giant should be
two per cent.
Marvin Rust, hospitality managing
partner at Deloitte, said: “There are
clearly a number of challenges for
hoteliers in 2011, the year before the
Olympics and the supply of luxury
hotels in the capital expanding with
the reopening of The Savoy and the
Four Seasons.”
Regional hotels are expected to see
revpar gains next year, rising 4.5 per
cent with both occupancy and aver-
age room rates experiencing growth
across the board.
Philips returns to profit
as cost cutting pays off
▲
RETAIL
PHILIPS Electronics took a cautious
view of fourth-quarter sales growth
yesterday given fragile consumer
confidence, overshadowing third-
quarter operating profit that beat
forecasts on cost cuts.
The Dutch company, which com-
petes against the healthcare and
lighting units of General Electric
and Siemens said economic uncer-
tainty and brittle consumer senti-
ment made it hard to see robust
1%
Half year
volume rise
2%
5%
Rise in soft
drink sales
80%
Fall in European
Lager sales
Picture: GETTY
well placed to jump on the opportu-
nities being planned for in Asia and
Africa. According to Sam Hart at
Charles Stanley “the current valua-
tion suggests that good future
prospects are fully discounted in the
share price”.
That synopsis seems to ring true,
with the shares a hold for now.
The breadth of the company’s
assets make it vulnerable to political
upheaval across the globe but it has
strong localised management.
BOTTOMLINE
Analysis by John Dunne
▲
RETAIL
PUMA’S chief executive Jochen Zeitz
will head a new “sports and lifestyle”
division at parent company PPR, the
French luxury goods and retail con-
glomerate said yesterday.
Zeitz will also become executive
chairman at Puma and oversee the
search for a new chief executive for
the company. And PPR said it will con-
tinue to hunt for acquisitions.
Puma new board will also include
François-Henri Pinault, PPR’s chair-
CITYA.M. 19 OCTOBER 2010
growth ahead.
Generic Electric had heightened
fears about the recovery last week
when it reported a sharper-than-
expected drop in revenue on slack
demand for heavy equipment.
Sales were up 10 per cent to
€6.16bn (£5.7bn).
“We do see two levels of uncertain-
ties. Patchy consumer confidence
and an uncertain economic climate,”
Philips chief financial officer Pierre-
Jean Sivignon. “I don’t see a double
dip right now.”
NEWS | IN BRIEF
New Bond Street ‘best in world’
The head of Piaget, one of the world's
leaders in jewellery yesterday said New
Bond Street the world’s premier shop-
ping street for jewellery. Speaking as he
opened a new flagship store in the
street, Philippe Léopold-Metzger said:
“No other street in the world matches it
for the watches and jewellery industries
— not even New York's Fifth Avenue.”
Piaget fought off four other retailers for
the site, which opened on Friday. Cartier,
Chanel and Louis Vuitton, are also on the
street. Property agent Cushman &
Wakefield said Piaget, owned by Swiss
luxury giant Richemont, had paid the
biggest rent ever on the street, where
prices have risen by 19.4 per cent in the
last 12 months. Sienna Miller fronted
Paiget’s last advertising campaign.
Facebook apps ‘leak’ details
Facebook was yesterday thrown into a
new privacy row after it emerged the
site is passing on details of millions of
users and their friends to internet firms.
An investigation found the social net-
working site is giving details of users
who use apps and games such as the
hugely popular FarmVille. The issue
affects tens of millions of Facebook
users, including people who set their
profiles to Facebook’s strictest privacy
settings. The site’s bosses today pledged
to fix the problem, and said the informa-
tion was being shared “inadvertently”.
“Our policy is very clear about protect-
ing user data, ensuring that no one can
access private user information without
explicit user consent,” said Facebook’s
Mike Vernal. “Recently, it has come to
our attention that several applications
built on Facebook Platform were passing
the User ID, an identifier that we use
within our APIs, in a manner that violat-
ed this policy. In most cases, developers
did not intend to pass this information,
but did so because of the technical
details of how browsers work.”
man and chief executive, who is cur-
rently Puma’s supervisory board
chairman.
“The sport and lifestyle division
will be, in my view, more important
in size, in turnover, because we are
operating in mass-market segments,
but not in terms of profit,” Pinault
said.
PPR, which also owns the Yves
Saint Laurent fashion brand and the
Gucci group, saw its shares drop 2.8
per cent to €116 (£102) on the Paris
stock exchange.
 In association with

SPENDING REVIEW
SPECIAL THIS THURSDAY IN CITY A.M.
WITH EXTENDED COMMENTARY FROM OUR EXPERTS

FIND OUT WHAT

GEORGE OSBORNE’S
SPENDING REVIEW
MEANS FOR YOU
FURTHER NEWS, COMMENT AND
ANALYSIS IN FRIDAY’S PERSONAL
FINANCE SECTION, ONLY IN CITY A.M.

EXPERT ANALYSIS FROM

ALLISTER HEATH DAVID CROW

EDITOR POLITICAL EDITOR

VICTORIA BATES DAVID JONES

DIARY EDITOR OF
 22 News
Assets bounce back in 2009
▲
BANKING
BY MATTHEW WEST
ASSETS under management (AUM) at
the world’s largest 500 fund man-
agers jumped by 16 per cent in 2009
to $62 trillion (£39 trillion), the sec-
ond highest rise on record, a report
said yesterday.
The rise was in sharp contrast to
the 23 per cent loss in AUM seen in
2008, the Pensions and Investments/
Towers Watson World 500 ranking
report said.
However, total AUM were still well
below the previous high seen in 2006.
During the past five years only half of
First Quantum
acquires new
Peruvian mine
▲
MINING
BY MARION DAKERS
FIRST Quantum Minerals said it has
paid C$460m (£285m) for Antares
Minerals yesterday, in a move to diver-
sify following the confiscation of its
copper mine in the Democratic
Republic of Congo.
Antares’ principal asset is the
Haquira copper project in southern
Peru, which contains around 3.7m
tonnes of copper equivalent. It also
lies next to Xstrata’s Las Bambas cop-
per-gold project, and First Quantum
chairman Clive Newall said the two
companies could work together.
“There are some potential syner-
gies in the region with Xstrata. The
infrastructure in the area is relatively
undeveloped,” he said yesterday. “It’s
unlikely that we would be sharing a
pipeline, but we could share power
supplies.”
First Quantum paid investors in
Canada-based Antares a 41 per cent
premium on Friday’s closing share
price. The Peruvian mine will not be
ready for mining for around 18
months, Newall said, but engineers
will be on the site soon after the sale.
The mine can produce 230,000
tonnes of copper concentrate a year
Clipper Windpower agrees to £139.5m
takeover offer from American rival UTC
▲
ENERGY
BY HARRY BANKS
WIND turbine maker Clipper
Windpower has agreed a £139.5m
buyout by United Technologies
Corporation in a deal which will
buoy its finances ahead of a choppy
outlook for the US wind energy sec-
tor.
UTC will gain control of the 50.1
per cent stake in Clipper it does not
already own and will provide an addi-
tional loan facility to assist with cash
the fastest growing firms had done so
in a primarily organic way, with the
other half doing so by merger or
acquisition, the report said.
Carl Hess, global head of invest-
ment at Towers Watson, said last year
was “almost the exact opposite of
2008” as most fund managers posted
strong results. But he warned that
while markets were recovering they
remained fragile, reflecting “weak
underlying economic fundamentals
and the oscillating risk appetites
among institutional investors”.
Fund managers from developing
countries continued to grow, more
than doubling their share of global
in the first 10 years, and will account
for just less than a third of First’s total
copper production by 2015, Newall
said.
The purchase was not just a result
of the loss of the company’s
Congolese assets after the govern-
ment seized its Kolwezi mine, Newall
said, adding: “It has been part of our
strategy to look for the right project
in Latin America.”
First Quantum is in arbitration
with FTSE 100-listed miner ENRC,
after the Congolese government can-
celled First’s licence at the Kolwezi
mine and later sold it to ENRC.
ENRC has said it carried out exten-
sive due diligence and it would vigor-
ously challenge First Quantum’s legal
claim to the $750m project.
ANALYSIS l First Quantum
5,030.00
5,500 p 18 Oct
4,500
3,500
19 Jul 6 Aug 26 Aug 16 Sep 6 Oct
flow ahead of the transaction.
Connecticut-based UTC will pay
65p-a-share, a 48 per cent premium
on Clipper’s pre-bid closing price.
“For Clipper right now this buyout
by UTC is phenomenal. It gives it a
significant cash injection to fight
against some of its peers in this
tough environment,” said Libertas
Capital analyst Titus Menzies.
Shares in Clipper jumped 30 per
cent to 64p by mid-morning yester-
day, making them one of the biggest
gainers on the Aim market.
AUM to around four per cent in the
last decade, the report said. In con-
trast Japanese fund managers’ share
of AUM fell from over 13 per cent to
under 7 per cent in the same period.
Some fund managers have seen
exceptional growth in the last five
years, including BlackRock, which has
risen from 41st in the league table to
top with $3.4bn AUM. BNP Paribas has
risen 26 places to seventh in the last
five years with $1.3bn AUM,
There were 12 US-based investment
managers in the top 20 last year, up
from ten in 2008, while the other
eight managers are all based in
Europe, according to the report.
REHN CALLS FOR TOUGH REFORMS
UniCredit reaches a deal with unions
as it seeks to cut domestic operations
▲
BANKING
UNICREDIT has reached a deal with
unions over thousands of lay-offs in
Italy, ending a protracted struggle
over a plan by the country’s biggest
bank to streamline domestic opera-
tions.
Under the deal, 3,000 UniCredit
employees will get access to early
retirement plans, the FABI banking
Falling gas prices in the US and
government austerity measures are
likely to weigh on demand for wind
energy in the US over the coming
years, analysts said.
But Mark Chaichian, Clipper’s
business development director, said
he was confident the deal would
make good sense for UTC in the long
term.
“The outlook for the sector if you
believe the markets is going to be a
little rough in the short term,” said
Chaichian.
Germany pays €1.5m for
Julius Baer clients’ data
▲
FINANCIAL SERVICES
GERMAN prosecutors paid around
€1.5m (£1.3m) for client data from
Swiss bank Julius Baer, as part of a
campaign to clamp down on
untaxed German wealth held in
Switzerland.
A spokeswoman for the prosecu-
tor’s office in the German city of
Muenster said the state of North
Rhine Westphalia had bought a CD
containing data on 200 accounts.
The sale happened earlier this
union said. This comes on top of
planned lay-offs for 600 staff and a
further group of 1,100 employees,
who are expected to leave the bank in
2014-15, it said. UniCredit has agreed
to hire more than 2,000 new staff by
2013.
The breakthrough comes a few
weeks after Federico Ghizzoni was
appointed at the helm of the bank,
replacing Alessandro Profumo, who
NEWS | IN BRIEF
Royal Mail asks to hike prices
Royal Mail has asked the postal regulator
for permission to hike prices on business
mail products for one year only, in order
to generate extra revenue of up to
£100m. Royal Mail chief executive Moya
Greene said the firm was asking for the
chance “to charge a fair price to other
companies who use our network to carry
mail and to end what is, in effect, the
very substantial built-in subsidy which
our rivals have enjoyed for years”. The
firm made a £157m operating loss last
year on “access mail”, collected by rivals sales outlets. Vertu, which will commence
but delivered by Royal Mail, amounting
to an average loss of 2.5p per item.
Boots takes control of ANZAG
Retail giant Alliance Boots yesterday said declining only 2.6 per cent versus a
it had reached agreement with share-
CITYA.M. 19 OCTOBER 2010
summer and the person who sold the
CD asked that the proceeds be donat-
ed to a charity, the spokeswoman
said. Baer would not comment.
Germany, along with Italy, the US
and France, has been one of the most
fervent critics of Switzerland’s bank-
ing secrecy laws and has paid in the
past for stolen data from Swiss banks
in order to catch tax cheats. Pressure
has already prompted Switzerland to
relax its cherished bank secrecy and
comply with international disclosure
standards.
EUROPEAN Union
monetary affairs
chief Olli Rehn yes-
terday urged mem-
ber states to agree
on tough budget
reforms after some
countries said
enthusiasm for far-
reaching change
was waning. He
made his comments
before Eurozone
finance ministers
met in Luxembourg
to complete an over-
haul of EU budget
rules and agree on
a report for EU
leaders on how to
make the rules
tougher to prevent
a new sovereign
debt crisis.
Picture: GETTY
quit abruptly last month following a
power clash with shareholders.
“Negotiations were difficult,” said
FABI secretary general, Mauro
Morelli. “We are sure Federico
Ghizzoni will not hinder the impor-
tant results achieved.” Profumo, who
turned the bank into a pan-European
player through a string of acquisi-
tions, had laid out the cuts as part of
a plan to boost efficiency.
holders to acquire a further 51.65 per
cent stake in German pharmaceutical
wholesaler Andreae-Noris Zahn
(ANZAG). At the same time, Boots
launched a voluntary tender offer for the
outstanding 18.4 per cent of the compa-
ny it does not yet own, at €26 per share.
Profits soar at Vertu Motors
Car dealership group Vertu Motors saw
pre-tax profits soar by three quarters to
£4.9m over the first half of its financial
year after acquiring a number of new
dividend payments in January, added that
it beat management expectations for new
car performance in September, gaining
market share with new car retail volumes
broader market fall of 19 per cent.
CITYA.M. 19 OCTOBER 2010
RBS may sell
£1bn Spanish
property unit
▲
BANKING
BY HARRY BANKS
ROYAL Bank of Scotland (RBS) is under-
stood to be considering selling a £1bn
Spanish property loan portfolio after
hiring Morgan Stanley to advise on its
options.
The Spanish commercial property
loans add to a £3bn portfolio of British
real estate loans also on the block.
Private equity firms and specialised
investors looking to pick up the assets
at a discount would be the likely buy-
ers. Part-nationalised RBS is attempt-
ing to shrink its “non-core” division
and has said it may sell assets.
There were £44bn of real estate
assets in its non-core division at the
end of June, down from £63bn at the
end of 2008. At the end of last year 42
per cent of the non-core portfolio
assets were in Britain, and a quarter
were in Continental Europe.
At least three potential bidders –
Goldman Sachs, distressed debt fund
Lone Star and private equity group
Blackstone – were said to be eyeing the
£3bn British portfolio in early October,
although RBS said at the time it had
not decided whether to sell or not.
The Spanish portfolio is mainly
made up of debt secured on commer-
cial real estate. RBS was a big lender to
Spanish developers in the run-up to
the financial crisis, and has ended up
as a stakeholder in property company
Inmobiliaria Colonial after a debt-for-
equity swap. The real estate sales are
part of RBS’ five-year plan to clear
£250bn of non-core assets off its bal-
ance sheet, as it capitalises on improv-
ing loan prices to sell at a small
discount.
RBS last week sold €250m worth of
European mezzanine debt, a riskier
type of loan ranking further down the
capital structure and typically used to
back leveraged buyouts. That portfolio
went to about 25 different buyers,
according to one distressed debt fund
manager. The bank also disposed of
another big chunk of its leveraged
loan exposure in August, when it sold
a €1.4bn portfolio of senior loans to
Intermediate Capital Group.
News 23
KKR tables bid
BEST OF THE BROKERS
ANALYSIS l Smiths Group
1,300
p
1,251.00
18 Oct
SMITHS GROUP
Charles Stanley says strong free cash gen-
eration continues to support longer-term
for Australian
1,250
1,200
1,150
growth through increased R&D, targeted
acquisitions and expansion in emerging
markets. The broker thinks speculation
about an eventual break-up of the group is
likely to persist. Despite Smiths’ sluggish
fund manager
ASSET MANAGEMENT
▲
1,100
sales performance, operating margins
US PRIVATE equity firm Kohlberg
1,050
improved to a 10-year high of 17.8 per cent. Kravis Roberts (KKR) has offered up to
19 Jul 6 Aug 26 Aug 16 Sep 6 Oct Charles Stanley says “hold”. $1.73bn (£1bn) for Australian fund
manager Perpetual, reigniting merg-
ANALYSIS l Tullet 413.90 TULLETT er interest in Australia’s $1 trillion
420
p 18 Oct Numis points out that Tullett received a bid wealth management sector.
approach earlier this year. The broker says Australia’s wealth management
400
industry is the world’s fourth largest
given the discount valuation and global and is expected to grow at 12 per cent
380
market leading position we see the possi- a year, but mergers have dried up over
bility that not only could a bid resurface, the past year, with the sole exception
360 but it could well end up being contested. of National Australia Bank’s (NAB)
failed $12bn bid for wealth manager
Terry Smith has repeatedly said he would AXA Asia Pacific.
340
sell the business if an offer that valued the KKR’s indicative bid of between
320
business fairly was made. Numis says now A$38 and A$40 a share, a premium of
19 Jul 6 Aug 26 Aug 16 Sep 6 Oct is the time to buy the stock. up to 29 per cent on Perpetual’s clos-
ing price on Friday, took investors by
ANALYSIS l BSkyB BSKYB surprise, triggering a rally in shares of
p
Perpetual and rivals.
720 706.00 Jeffries International expects Sky to con- Perpetual shares surged to A$39.39,
18 Oct tinue to post strong financials going into
a nine-month high, before easing
715 the first quarter of 2011 as the focus turns back to A$37.78, up 22 per cent. Fund
from subscriber growth to cross-selling manager Platinum jumped 5.4 per
710 cent, Challenger Financial rose 4.3
into the existing base. It says to expect per cent, AMP climbed 2.4 per cent
705 near term share performance to be corre- and AXA Asia Pacific added two per
lated to developments on the News Corp cent.
700 “The bid certainly shows the finan-
bid. The broker said a bid of 760p-a-share
is what it will take to persuade investors to cial sector, especially funds manage-
695 ment, will see consolidation in the
19 Jul 6 Aug 26 Aug 15 Sep 5 Oct part with their stock. It says “buy”. coming year,” said Simon Burge, exec-
utive director at ATI Asset
To appear in Best of the Brokers email your research to notes@cityam.com Management.
 24 News
The accountant who sees EU rules
as a chance to transform his firm
BDO head Dermot
Mathias hopes he has
brought his firm
closer to joining the
industry’s global elite
F
OR a man less than three months
away from retirement, BDO’s policy
board chairman – in effect, the
firm’s international chairman –
can’t wait to get into the issues. And to be
fair, there is much for Dermot Mathias,
who joined the accountancy giant 37
years ago, to discuss.
What excites him most is the possibility
of a Brussels-inspired regulatory revolu-
tion. The European Union’s financial serv-
ices commissioner Michel Barnier
released a two-month consultation paper
last week about the industry. As one
would expect, it raised questions about
audit quality in light of the financial cri-
sis, where accountancy firms passed the
accounts of banks like Northern Rock,
Lehman Brothers and the Royal Bank of
Scotland that then went bust or had to be
rescued by government.
The Big Four global accountancy firms –
PricewaterhouseCoopers (PwC), Ernst &
Young, Deloitte and KPMG – audit 70 per
cent of Europe’s largest 350 firms. Barnier
wonders whether they may have too cosy a
relationship with their clients, at the
expense of investors who may therefore be
presented with financial statements that
lack rigour or at least relevance.
Barnier asks a number of questions,
including whether auditors should
remain with the same clients for decades,
whether regulators should pick auditors
for very big firms, whether internal con-
trol assessments ought to be added to
financial statements, and whether small-
er audit firms should face less onerous
rules than their big rivals.
But Barnier is clear things should
change. He said: “The status quo is not
going to be an option for the EU. We want
to strengthen this profession and its cred-
ibility.” Mathias, 61, does not agree with
everything Barnier proposes, but he obvi-
ously welcomes the general thrust of
opening up the Big Four to competition,
as his firm BDO along with rival Grant
Thornton occupy the two spots just out-
side the elite quartet.
“Having four big players is unhealthy,”
CV | DERMOT MATHIAS
Age: 61
Work: Mathias joined the firm in 1973 and
qualified in 1976. He was made partner in
1980 and after a period in management
consultancy, joined the corporate finance
group, becoming head of corporate
finance in 1990. He has been involved with
the firm’s strategic development and man-
agement for the last fifteen years.
Became senior partner in 2002
Education: University of Surrey
Family: Married, two daughters
Lives: Homes in Oxfordshire and Cornwall
Hobbies: Walking in the countryside,
skiing and national hunt racing
says Mathias, taking off his jacket and
hanging it on the back of a chair in a
bright first-floor meeting room in BDO’s
Baker Street headquarters. “In other areas
of business, having four dominant compa-
nies is not too much of a problem. But in
our industry, because of the conflicts of
interest that often arise out of the range of
work professional service firms perform,
clients may only be faced with a choice of
two or just one firm to choose from. Now,
I would say this, because its in my interest,
but there are others in the market who
say this also.”
Mathias last week handed over his UK
senior partner role to audit partner Simon
Bevan, and at the end of the year will
hand over his international chairman’s
role to BDO’s German head Holger Otte.
BDO’s network of 95 firms employs 46,000
in 110 countries and last year posted sales
2.3 per cent down at $5bn (£3.1bn).
Mathias agrees with Barnier that inter-
nal controls and corporate governance
issues should be included in audit reports.
The impetus for this comes from recent
probes into bank failures where it
emerged that senior staff were nominally
in charge of more junior workers who con-
structed complex financial instruments
that their line managers could not under-
stand, and in some instances even
destroyed the firm. The BDO boss also
thinks that having regulators choose the
auditor for key companies and having lim-
its on the amount of audit work the Big
Four can do among Europe’s biggest 350
firms are “ideas worth considering”.
What Mathias is admitting to here is
that despite efforts to grow the business in
the six years he has been in charge, it still
lags far behind the Big Four in scale as
well as elite clients. In the last three years
BDO has tripled its staff in China to 5,000
and has moved into number five positions
in other fast growing markets like Russia
and Brazil. Overall, since 2007 the group
has boosted its staff from 31,500 to 46,000.
By contrast PwC employs 161,700 staff
WORDS BY ROGER BAIRD
Dermot Mathias and last year reported worldwide sales of
outside the firm’s $26.6bn. And despite the hundreds of
London headquarters clients BDO has, it does not audit any
in Baker Street bank. Audit works accounts for 60 per
cent of the group’s revenue. Mathias says:
“It is clear that market forces have not
Picture: been sufficient to fill the gap. We have
Micha Theiner grown, but I can’t say that we have rapidly
/City A.M. closed the gap on the Big Four.”
However, critics say that second tier
firms like BDO and Grant Thornton are
crying wolf – and that they are actually
not prepared to take on the enormous
amounts of high quality staff they would
need to audit the world’s biggest compa-
nies. Instead, the critics argue, they are
quite happy to earn a decent living from
lucrative restructuring, tax and other
advisory services, while not really trying
that hard to grab the largest clients with
subsidiaries all over the world.
But Mathias rejects this. He says: “We
have grown significantly over the last
three years. And we are ready to take on
the audits of more complex businesses.”
Some radical critics of the accountancy
profession say that one or more of the Big
Four should be broken up to allow more
competition. But Mathias does not agree.
The move might lead to market instability,
he says, cutting down the options of big
Financial firms. Going from a Big Four to a Big
Three would simply mean less competi-
statements tion. And, Mathias adds, a break up would
be simply be impractical.
have become He explains: “It is very difficult to see
how this could work. These units are sepa-
very opaque, rate legal entities in the countries they are
incorporated in. If the EU were to break up
a barrier a Big Four firm over here, they could still
operate in the US and in fast growing
to economies in Asia.”
Some observers say the accountancy
conveying profession has come up seriously short
twice in the last ten years. First, in 2001
information and 2002, through its role in the
WorldCom and Enron accounting scan-
to investors dals. Indeed, the latter turned the Big Five
into the Big Four when Arthur Andersen
CITYA.M. 19 OCTOBER 2010
went under. And in 2007 and 2008 audi-
tors passed the accounts of a string of
banks that turned out to have been highly
exposed to changes in market conditions,
especially the money markets. Defenders
of the profession argue that there are lim-
its to what can ever be included in an
audit statement – and that nobody could
forsee how practices that were signed off
by regulators, experts and everybody else
suddenly turned out to have been so disas-
trously misguided. Others blame mark-to-
market accounting rules.
Aside from the EU’s paper, the UK’s
Financial Reporting Council is also investi-
gating Ernst & Young’s role in auditing
Lehman Brothers, which failed in 2008.
Mathias’ final worry is that audit state-
ments, which are already overcomplicat-
ed, will become more so as a result of new
regulation that is bound to come as a reac-
tion to the financial crisis. He says:
“Financial statements are governed by
strict rules and have become increasingly
complex. They have almost become
opaque, and a barrier to communication
with investors.”
The BDO chief adds: “We need to con-
verge international reporting standards,
and then simplify them. There has been a
lot of hard work done on this already
since International Financial Reporting
Standards were introduced some eight
years ago. If the will is there, this could
happen in two to three years. The issues
are well understood. However, new regula-
tions may make statements even more dif-
ficult to read.”
For a man who is getting ready to pack
up his tent, Mathias has a lot to say. He has
moved his firm on greatly in the last few
years, but there is still a lot for his succes-
sor to do. Yet just as a regulatory
onslaught destroyed Arthur Andersen, a
fresh revolution instigated this time by
the EU authorities might give BDO the
chance to grab the brass ring. And from
his easy chair, no one will be cheering
harder for his old firm than Mathias.
CITYA.M. 19 OCTOBER 2010 News 25

StanChart
Dubai firm to and AgBank
retain Europe deepen JV
units for 2011

▲
BANKING
BY HARRY BANKS
AGRICULTURAL Bank of China
(AgBank) and Asia-focused lender
Standard Chartered have deepened a
FINANCIAL SERVICES Dhabi conference on private equity. strategic alliance under which the two
▲

BY HARRY BANKS
DUBAI International Capital (DIC) will
not sell any European assets before the
end of 2011, its chief investment offi-
cer said yesterday, as it waits for their
value to rise.
The private equity arm of Dubai
Holding, the investment vehicle
owned by the ruler of Dubai, is under-
going a debt restructuring.
“It’s fair to say that our expectation
is that our companies will continue,
appreciate in value, over the next sev-
eral years, so why sell now?” CIO David
Smoot said on the sidelines of an Abu
DIC’s chief investment
officer David Smoot
has indicated the
investor will retain its
UK stakes until 2011
He added that even 2011 would be
too early to sell any European assets:
“Now is not the right time,” he said.
DIC’s assets include UK hotel chain
Travelodge and European aluminium
maker Almatis Holdings.
“We see 2011 as a time when we will
return to growth,” Smoot said.
Last month Almatis said it had
emerged from US bankruptcy proceed-
ings earlier than initially planned. The
company filed for bankruptcy earlier
this year with more than $1bn
(£629m) in debt, which stemmed from
a 2007 leveraged buyout by DIC.
Months of wrangling ensued
between DIC and Oaktree Capital
Management, which invests in ailing
companies, over how to reorganise
Almatis.
The current plan will pay off
Oaktree and other senior lenders in
full. Dubai Holding faces challenges to
meet some $14.8bn in obligations.
banks plan to set up a joint venture,
AgBank said yesterday.
Earlier this year, Standard Chartered
invested $500m (£315m) as a corner-
stone investor in AgBank’s initial pub-
lic offering in Hong Kong. AgBank,
China’s third-largest lender by assets,
had raised a combined $22.1bn from
its dual-listing in Shanghai and Hong
Kong in the world’s biggest ever IPO.
The planned joint venture will pro-
vide support to China’s fast-growing
small and medium businesses,
AgBank said. Under the tie-up,
AgBank will give priority to Standard
Chartered as its partner for its trade
and cash management businesses.
The two banks will also kick off a col-
laboration for cross-border business. A
strategic alliance team had been set
up to implement those plans, the
Chinese lender said. No financial
details of the planned joint venture
Standard Chartered boss Peter Sands last week launched a £3.2bn rights issue Picture: REX were given.

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

Matrix
The financial services group has appointed
Simon Elvidge as its new group head of compli-
ance and assurance.
Elvidge has over 20 years of experience in
the sector and joins from Numis Securities,
where he was head of compliance.
Prior to that, he spent time working at
HSBC, Société Générale and at Newedge
Group, the joint venture between SocGen and
Calyon.
Rabobank London-based general financial team.
The bank has hired Rick Corbisiero as Corbisiero began his banking career
head of central bank sales in its in the early 1980s and has previously
held positions as head of central bank
sales at the likes of Merrill Lynch,
Deutsche Bank and BNP Paribas.
Axa Real Estate
The European real estate manager has
appointed Laurent Vouin as head of
opportunistic funds, based in Paris and
reporting to the firm’s global chief
investment officer Dennis Lopez.
Vouin will be responsible for oversee-
ing the management of all of the firm’s
opportunistic funds, including the
Development Venture III fund,
launched in July this year. He originally
joined Axa Real Estate in 2002 as head
of asset management in France.
Olivetree Securities
The equities intermediary brokerage
firm has appointed Ian Brenner to its
distribution group to cover key institu-
tional and hedge fund accounts.
Brenner joins from cash and deriva-
tives broker MF Global, where he spent
the past seven years, latterly as deputy
head of European equities. Prior to that,
he was at Dresdner Kleinwort
Wasserstein for 16 years.
Hansteen Holdings
The UK and continental European real
estate investor has appointed Richard
Cotton and Humphrey Price as non-
executive directors and Richard Lowes
as its new finance director.
Cotton joins from Forum Partners,
where he was a managing director.
Prior to that, he was head of real estate
at JP Morgan Cazenove. Price was pre-
viously finance director of Pillar
Property and is currently a non-execu-
tive at London and Stamford Property.
Lowes has been chief financial officer
at Hansteen since 2006.
Mercer
Roslin Wright has rejoined Mercer as a
principal and client relationship manag-
er in the outsourcing business, having
spent a stint as a client development
director at Aon Consulting.

To appear in CITYMOVES please email your career

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
updates and pictures to citymoves@cityam.com morganmckinley.com

NETWORKING.
SOCIALISING.
CELEBRATING.
You, too, can be a part of the inaugural City A.M. Awards dinner and ceremony on Thursday 28 October 2010
at the Grange St Paul’s Hotel. Meet the City’s personalities, join in the applause of some of the finest companies
and individuals in the business and financial community, enjoy an excellent dinner and leading entertainment,
renew old acquaintances and make new friends. Tables are limited, so book your places early.

Full details can be found on the Awards website: www.CityAMAwards.com

If you have any questions, please contact Jo Pead on 020 8267 4043 / jo.pead@cityamawards.com
 Markets&Investment
26 CITYA.M. 19 OCTOBER 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 . . . . . . . . . . . . . . . . . . . . . . . .302.30 +7.90 310.00 246.90 Compass . . . . . . . . . . . . . . . . . .527.50 +7.00 574.50 382.00 Jupiter Fnd Mgmt . . . . . . . . . . . .260.00 +2.10 264.00 180.00 Sage . . . . . . . . . . . . . . . . . . . . . .273.00 +2.70 286.80 208.20
3i Infrastructure . . . . . . . . . . . . . 113.60 –0.40 115.00 97.00 Cookson . . . . . . . . . . . . . . . . . . .577.50 +8.00 616.00 347.60 Kazakhmys . . . . . . . . . . . . . . . .1359.00 –25.00 1634.00 955.50 Sainsbury(J) . . . . . . . . . . . . . . . .385.80 +1.70 397.00 307.60
A.B. Foods . . . . . . . . . . . . . . . .1047.00 +5.00 1096.00 790.00 Croda Intl . . . . . . . . . . . . . . . . .1501.00 +30.00 1540.00 692.00 Kesa Electricals . . . . . . . . . . . . .161.50 –0.90 172.40 98.45 Schroders . . . . . . . . . . . . . . . . .1491.00 +11.00 1500.00 1056.00
Aberdeen Asset Man . . . . . . . . . .170.00 –0.10 172.80 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .518.50 –1.50 539.00 381.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .241.10* +1.50 255.00 196.50 Schroders N/V. . . . . . . . . . . . . . 1195.00 +13.00 1211.00 864.00
Admiral. . . . . . . . . . . . . . . . . . .1618.00* +2.00 1695.00 1003.00 Dana Petroleum . . . . . . . . . . . .1799.00 — 1817.00 968.50 Ladbrokes . . . . . . . . . . . . . . . . .134.10* — 164.60 114.60 Scot. & Sthrn Energy. . . . . . . . . 1115.00 +3.00 1206.00 1006.00
Aegis . . . . . . . . . . . . . . . . . . . . .128.20 — 137.30 103.10 Davis Service . . . . . . . . . . . . . . .421.40 –1.60 442.30 356.00 Lamprell . . . . . . . . . . . . . . . . . . .362.90* –2.30 372.30 157.30
Afren . . . . . . . . . . . . . . . . . . . . . 115.50 +0.80 121.80 76.50 Debenhams . . . . . . . . . . . . . . . . .72.85 +1.35 90.00 51.95 Lancashire Hldgs . . . . . . . . . . . .575.00 +5.00 582.50 416.70 Scottish Mortgage. . . . . . . . . . . .649.00 –1.00 661.00 475.00
African Barr Gold . . . . . . . . . . . .570.00 — 685.00 520.50 Derwent London . . . . . . . . . . . .1545.00* –5.00 1633.00 1174.00 Land Securities . . . . . . . . . . . . . .673.00* –6.50 743.50 543.00 SEGRO . . . . . . . . . . . . . . . . . . . .297.60 +1.10 389.30 244.00
Aggreko . . . . . . . . . . . . . . . . . .1683.00* +3.00 1689.00 727.50 Dexion Absolute . . . . . . . . . . . . .138.50 –1.50 148.00 131.20 Legal & General . . . . . . . . . . . . .105.70 +1.60 107.50 69.05 Serco . . . . . . . . . . . . . . . . . . . . .630.00* +2.00 656.50 491.20
Alliance Trust . . . . . . . . . . . . . . .349.10* +1.90 352.70 292.80 Diageo . . . . . . . . . . . . . . . . . . . 1135.00* +11.00 1176.00 951.50 Lloyds Banking Gp . . . . . . . . . . . .72.20 +2.02 79.15 45.30 Severn Trent . . . . . . . . . . . . . . .1333.00 –1.00 1404.00 939.50
AMEC . . . . . . . . . . . . . . . . . . . .1056.00 +18.00 1066.00 728.00 Dixons Retail . . . . . . . . . . . . . . . .27.12 –0.28 39.75 23.07 Logica . . . . . . . . . . . . . . . . . . . .133.40* +1.40 149.10 100.80 Shaftesbury . . . . . . . . . . . . . . . .454.80 –5.30 465.00 348.00
Amlin . . . . . . . . . . . . . . . . . . . . .397.20 –0.60 437.60 350.80 Domino’s Pizza . . . . . . . . . . . . . .458.70 –2.50 484.70 278.20 London Stk Exchange . . . . . . . . .698.50 +9.00 949.50 540.50 Shire. . . . . . . . . . . . . . . . . . . . .1501.00 +1.00 1532.00 999.00
Anglo American . . . . . . . . . . . .2846.50 –20.00 3015.50 2153.00 Drax . . . . . . . . . . . . . . . . . . . . . .374.60* +0.90 478.00 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1808.00 –23.00 2198.00 1344.00 Smith & Nephew . . . . . . . . . . . . .554.00* +11.50 700.50 525.50
Antofagasta . . . . . . . . . . . . . . .1288.00 –19.00 1344.00 755.50 Dunelm . . . . . . . . . . . . . . . . . . . .458.40 –11.60 482.00 319.40 Man . . . . . . . . . . . . . . . . . . . . . .269.90 +5.90 373.60 199.60 Smith(Ds) . . . . . . . . . . . . . . . . . .164.30 +0.90 168.20 103.00
Aquarius Platinum . . . . . . . . . . .382.00 –1.40 490.00 211.50 Easyjet . . . . . . . . . . . . . . . . . . . .453.90 +0.10 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .413.70 +1.20 419.10 321.90 Smiths . . . . . . . . . . . . . . . . . . .1251.00 –10.00 1297.00 885.00
ARM Holdings . . . . . . . . . . . . . . .399.10 +11.10 419.50 143.00 Edinburgh Inv Tst . . . . . . . . . . . .440.00 +8.60 440.60 338.00 Meggitt . . . . . . . . . . . . . . . . . . . .304.10 –1.00 331.00 229.80 SOCO Intl . . . . . . . . . . . . . . . . . .345.10 +2.60 510.00 333.30
Ashmore . . . . . . . . . . . . . . . . . . .381.60 +5.50 400.50 215.00 Electrocomponents . . . . . . . . . . .241.70 +1.20 251.00 144.80 Melrose . . . . . . . . . . . . . . . . . . .295.70 +0.70 302.00 160.00 Spectris . . . . . . . . . . . . . . . . . . 1101.00 +12.00 1128.00 653.00
Astrazeneca . . . . . . . . . . . . . . .3359.00 +36.50 3389.50 2668.00 EnQuest . . . . . . . . . . . . . . . . . . .131.20 +0.80 133.50 87.35 Mercantile IT . . . . . . . . . . . . . . . .977.00* +5.50 1002.00 822.50
Atkins(Ws) . . . . . . . . . . . . . . . . .777.50 –5.00 801.00 532.50 Essar Energy . . . . . . . . . . . . . . .494.00 –1.00 510.00 358.50 Michael Page Intl. . . . . . . . . . . . .479.50 –7.00 495.40 316.70 Spirax-Sarco Eng . . . . . . . . . . .1816.00* –4.00 1859.00 1060.00
Autonomy Corp . . . . . . . . . . . .1419.00 +71.00 2012.00 1278.00 Eurasian Nat Res . . . . . . . . . . . .930.00 –12.50 1276.00 801.00 Micro Focus . . . . . . . . . . . . . . . .384.80 –0.20 550.00 272.20 Spirent Comms . . . . . . . . . . . . . .144.50 +0.90 148.20 86.50
Aveva . . . . . . . . . . . . . . . . . . . . 1411.00 +12.00 1504.00 856.50 Euromoney Inst Inv . . . . . . . . . . .601.50 +4.00 630.00 371.80 Millen & Copthorne . . . . . . . . . . .567.00 +1.50 572.50 321.40 Sports Direct Intl . . . . . . . . . . . . .149.20 –0.30 154.30 89.85
Aviva . . . . . . . . . . . . . . . . . . . . .397.70* +1.90 466.50 290.20 Experian . . . . . . . . . . . . . . . . . . .709.00 +1.50 713.00 550.00 Misys . . . . . . . . . . . . . . . . . . . . .288.60 +0.50 298.00 196.60 SSL Intl . . . . . . . . . . . . . . . . . . . 1158.00 — 1190.00 616.00
Babcock International . . . . . . . . .592.50 +15.50 660.50 489.00 Ferrexpo . . . . . . . . . . . . . . . . . . .339.90 –8.70 396.20 140.70 Mitchells & Butlers . . . . . . . . . . .309.00 +2.10 343.90 228.30 St James’s Place . . . . . . . . . . . . .275.70 +1.70 298.00 203.40
BAE Systems . . . . . . . . . . . . . . .369.90 +4.10 389.90 288.10 FirstGroup . . . . . . . . . . . . . . . . .375.70 +1.20 428.40 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .200.00 +0.90 256.80 187.60 Stagecoach. . . . . . . . . . . . . . . . .187.10 +2.10 204.90 137.00
Balfour Beatty . . . . . . . . . . . . . . .266.30* –0.10 304.80 228.60 Foreign & Col Inv Tst. . . . . . . . . .293.80 +1.50 297.20 248.70 Mondi . . . . . . . . . . . . . . . . . . . . .548.00 +2.00 550.00 304.70 Standard Chartered . . . . . . . . . .1921.00 +21.50 1946.00 1366.50
Barclays . . . . . . . . . . . . . . . . . . .289.25 +4.25 394.25 253.40 Fresnillo . . . . . . . . . . . . . . . . . .1291.00 –8.00 1333.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .333.10 +1.70 333.80 265.00 Standard Life . . . . . . . . . . . . . . .232.20* +5.20 238.00 170.00
Barratt Development . . . . . . . . . . .89.70 +2.70 172.50 85.75 G4S . . . . . . . . . . . . . . . . . . . . . .267.00* +0.40 285.70 238.70 Morrison Wm . . . . . . . . . . . . . . .297.50* +3.50 307.10 255.00 SuperGrp . . . . . . . . . . . . . . . . . 1112.00 +16.00 1312.00 499.00
BBA Aviation . . . . . . . . . . . . . . .197.40* +1.00 220.00 145.90 Genesis Emerging Mkts Fd . . . . .528.00 +2.50 536.00 370.00 Murray Intl Tst . . . . . . . . . . . . . . .930.00* +8.00 931.50 720.00 TalkTalk . . . . . . . . . . . . . . . . . . .133.50 –0.20 153.80 106.60
Bellway. . . . . . . . . . . . . . . . . . . .601.50 +15.00 842.50 510.00 GKN . . . . . . . . . . . . . . . . . . . . . .174.80 –2.70 183.30 100.40 National Express. . . . . . . . . . . . .237.60 +3.40 258.60 155.86 Talvivaara Mining . . . . . . . . . . . .530.00 +2.00 547.50 341.40
Berkeley . . . . . . . . . . . . . . . . . . .836.00 –4.50 932.50 735.00 GlaxoSmithKline . . . . . . . . . . . .1304.00 +16.00 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .572.00 +2.50 607.65 474.80 Tate & Lyle . . . . . . . . . . . . . . . . .503.00 +3.40 509.00 388.00
BG . . . . . . . . . . . . . . . . . . . . . . 1194.50 +27.00 1248.00 966.90 Great Portland Estates . . . . . . . .349.70 –0.30 368.60 236.60 Next . . . . . . . . . . . . . . . . . . . . .2254.00 +1.00 2360.00 1733.00
BHP Billiton . . . . . . . . . . . . . . .2185.50 –14.00 2346.00 1618.50 Greene King . . . . . . . . . . . . . . . .415.00 — 484.00 372.50 Northumbrian Water . . . . . . . . . .338.00 — 353.00 225.20 Taylor Wimpey . . . . . . . . . . . . . . .26.11 +0.52 46.34 24.29
BlackRock Mining . . . . . . . . . . . .679.50 –6.50 695.00 475.00 Halfords . . . . . . . . . . . . . . . . . . .405.00 –0.10 562.50 370.10 Ocado Grp . . . . . . . . . . . . . . . . .131.40 +6.40 169.00 120.90 Telecity . . . . . . . . . . . . . . . . . . . .498.00 +6.60 546.00 323.50
BlueBay . . . . . . . . . . . . . . . . . . .487.00 +111.30 495.00 251.00 Halma . . . . . . . . . . . . . . . . . . . . .334.90 +1.80 345.50 218.40 Old Mutual . . . . . . . . . . . . . . . . .138.50* +0.20 146.90 95.30 Templeton Emrg Mkts . . . . . . . . .649.00 –2.00 657.50 455.00
Bluecrest Allblue GBP . . . . . . . . .172.50 +1.00 172.90 151.00 Hammerson . . . . . . . . . . . . . . . .415.30 –3.70 460.30 332.20 Partygaming . . . . . . . . . . . . . . . .271.30 –3.60 339.70 205.80 Tesco . . . . . . . . . . . . . . . . . . . . .432.95* –2.15 454.90 368.40
Booker . . . . . . . . . . . . . . . . . . . . .53.75 +0.25 55.10 37.50 Hargreaves Lansdown . . . . . . . .452.50 +2.50 478.00 259.40 Pearson . . . . . . . . . . . . . . . . . . .986.50 –6.50 1069.00 805.00 Thomas Cook . . . . . . . . . . . . . . .187.20 –0.10 277.20 167.50
BP . . . . . . . . . . . . . . . . . . . . . . .432.15 +6.70 658.20 296.00 Hays . . . . . . . . . . . . . . . . . . . . . . 118.60 –4.10 125.30 82.50 Pennon . . . . . . . . . . . . . . . . . . . .594.50 +1.00 616.50 440.40 Travis Perkins . . . . . . . . . . . . . . .853.50 –7.00 915.00 647.50
Brit Insurance . . . . . . . . . . . . . .1035.00 +3.00 1045.00 709.00 Henderson . . . . . . . . . . . . . . . . .137.60 +6.20 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .386.20 +7.70 520.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .226.10 +1.90 313.90 189.20
British Airways . . . . . . . . . . . . . .282.50 +5.70 282.50 172.40 Heritage Oil. . . . . . . . . . . . . . . . .341.90 –6.00 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1469.00* +14.00 1492.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .413.90 +3.40 436.20 261.20
British Amer. Tob . . . . . . . . . . .2447.00 +31.00 2448.00 1832.00 Hikma Pharma . . . . . . . . . . . . . .736.00 –5.50 813.00 452.20 Petropavlovsk . . . . . . . . . . . . . .1036.00* +4.00 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1264.00* +9.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .480.90 –2.10 490.60 338.50 Hiscox . . . . . . . . . . . . . . . . . . . .347.10 +5.60 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .690.00* +3.50 775.00 550.50 UK Commercial Prop. . . . . . . . . . .77.30 –0.60 84.90 71.00
British Land . . . . . . . . . . . . . . . .501.50* –3.00 515.00 416.00 Hochschild Mining . . . . . . . . . . .491.60 –17.40 516.50 220.00 Premier Farnell . . . . . . . . . . . . . .280.00* +0.70 283.80 140.60 Ultra Electronics . . . . . . . . . . . .1815.00 +21.00 1850.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .466.80 +5.80 518.00 341.50 Home Retail . . . . . . . . . . . . . . . .220.00 –1.20 326.30 201.70 Premier Oil . . . . . . . . . . . . . . . .1635.00 +10.00 1717.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1814.00 –4.00 2024.00 1662.00
Brown(N.) . . . . . . . . . . . . . . . . . .280.40 –1.80 284.30 204.80 Homeserve . . . . . . . . . . . . . . . . .480.00 –1.70 502.00 422.00 Provident Financial . . . . . . . . . . .813.50 +7.50 986.00 795.00
BSkyB . . . . . . . . . . . . . . . . . . . .706.00 –1.00 732.00 521.00 HSBC Hldgs . . . . . . . . . . . . . . . .660.40 +7.10 766.80 595.20 Prudential . . . . . . . . . . . . . . . . . .623.50 +11.00 665.00 475.70 United Utilities . . . . . . . . . . . . . .584.50 +4.00 620.00 429.00
BT . . . . . . . . . . . . . . . . . . . . . . .149.60 +2.20 153.00 108.40 Hunting . . . . . . . . . . . . . . . . . . .642.50 +2.50 661.00 429.10 PZ Cussons . . . . . . . . . . . . . . . .372.40 –0.80 383.00 231.70 Utd Business Media . . . . . . . . . .632.50 –1.50 656.50 408.30
Bunzl . . . . . . . . . . . . . . . . . . . . .772.00 +4.00 784.50 614.00 ICAP . . . . . . . . . . . . . . . . . . . . . .482.30 +5.70 485.20 291.70 Qinetiq . . . . . . . . . . . . . . . . . . . . 110.60 +1.10 179.10 103.50 Vedanta Resources . . . . . . . . . .2253.00 –35.00 2967.00 1795.00
Burberry . . . . . . . . . . . . . . . . . . .971.50 — 1065.00 513.00 IG . . . . . . . . . . . . . . . . . . . . . . . .543.50 +5.00 550.00 291.00 Randgold Resources. . . . . . . . .6420.00 –145.00 6755.00 3930.00 Victrex . . . . . . . . . . . . . . . . . . .1312.00 +11.00 1355.00 726.50
Cable & Wire Comms . . . . . . . . . .54.30 +1.10 150.00 52.30 Imagination Tech Gp . . . . . . . . . .430.00 +4.20 431.90 193.70 Reckitt Benckiser . . . . . . . . . . .3452.00 –14.00 3667.00 2971.00 Vodafone . . . . . . . . . . . . . . . . . .168.40 +1.40 169.10 126.50
Cable & Wire Wwide . . . . . . . . . . .73.20 +2.20 94.80 60.05 IMI . . . . . . . . . . . . . . . . . . . . . . .824.50* –4.00 836.50 410.00 Reed Elsevier . . . . . . . . . . . . . . .557.00 +2.50 566.00 454.60 Weir . . . . . . . . . . . . . . . . . . . . .1589.00* +6.00 1614.00 639.00
Cairn Energy. . . . . . . . . . . . . . . .431.40 +2.40 497.60 306.80 Imperial Tobacco. . . . . . . . . . . .1934.00 +29.00 2159.00 1728.00 Regus . . . . . . . . . . . . . . . . . . . . . .86.15 –0.75 125.50 64.05 Wellstream Hldgs . . . . . . . . . . . .755.00 +2.00 810.00 429.70
Caledonia Invs . . . . . . . . . . . . .1775.00 +5.00 1775.00 1496.00 Inchcape. . . . . . . . . . . . . . . . . . .342.00 +5.20 347.00 235.00 Renishaw . . . . . . . . . . . . . . . . . 1185.00* –3.00 1215.00 479.00 WH Smith . . . . . . . . . . . . . . . . . .482.10 +3.10 551.00 392.20
Capita . . . . . . . . . . . . . . . . . . . . .792.50 –2.00 829.50 693.00 Informa . . . . . . . . . . . . . . . . . . . .423.00 –2.60 439.40 263.30 Rentokil Initial . . . . . . . . . . . . . . .101.40 +1.60 140.20 91.15 Whitbread . . . . . . . . . . . . . . . . .1693.00 +6.00 1704.00 1215.00
Capital & Counties . . . . . . . . . . .145.50* +3.90 146.60 99.60 Inmarsat . . . . . . . . . . . . . . . . . . .616.50* –3.50 831.00 535.50 Resolution . . . . . . . . . . . . . . . . .258.00 +4.20 264.80 220.10 William Hill . . . . . . . . . . . . . . . . .164.30 +0.10 217.80 160.50
Capital Shopping Centres . . . . . .385.60* –2.50 533.50 300.10 Intercontl Hotels . . . . . . . . . . . . 1189.00 +17.00 1244.00 762.50 Rexam . . . . . . . . . . . . . . . . . . . .323.10 +0.70 348.80 271.40 Witan Inv Tst . . . . . . . . . . . . . . . .481.90 +5.20 487.00 396.30
Carillion . . . . . . . . . . . . . . . . . . .342.00* –1.80 361.90 272.00 Intermediate Capital . . . . . . . . . .317.70 –2.30 331.50 233.50 Rightmove . . . . . . . . . . . . . . . . .763.50* –4.00 796.50 456.90
Carnival . . . . . . . . . . . . . . . . . .2590.00 +18.00 2937.00 1876.00 Intertek . . . . . . . . . . . . . . . . . . .1867.00 +1.00 1881.00 1136.00 Rio Tinto . . . . . . . . . . . . . . . . . .4080.00 –63.00 4165.00 2631.00 Wolseley . . . . . . . . . . . . . . . . . .1647.00 +24.00 1742.00 1155.00
Catlin . . . . . . . . . . . . . . . . . . . . .336.50 +2.60 394.60 303.20 Intl Personal Fin . . . . . . . . . . . . .299.20 +7.90 310.00 181.40 RIT Capital Partners . . . . . . . . . 1134.00 +2.00 1215.00 940.00 Wood Group (John). . . . . . . . . . .436.50 +0.20 452.90 279.60
Centamin Egypt . . . . . . . . . . . . .176.30 –3.10 194.40 103.50 Intl Power . . . . . . . . . . . . . . . . . .403.40* –1.80 408.60 248.20 Rolls Royce . . . . . . . . . . . . . . . .624.00 –11.00 643.50 434.50 WPP . . . . . . . . . . . . . . . . . . . . . .732.00* +11.00 744.00 528.00
Centrica . . . . . . . . . . . . . . . . . . .321.90* –2.40 347.00 236.30 Invensys . . . . . . . . . . . . . . . . . . .312.70 +7.70 350.30 224.90 Rotork . . . . . . . . . . . . . . . . . . .1828.00 +16.00 1906.00 1101.00 Xstrata . . . . . . . . . . . . . . . . . . .1305.50 –6.00 1349.00 832.50
Charter Intl . . . . . . . . . . . . . . . . .782.00 –1.50 855.50 563.50 Investec . . . . . . . . . . . . . . . . . . .510.50 +1.00 565.00 411.50 Royal Bank Of Scot . . . . . . . . . . . .46.31 –0.09 58.95 28.25 LONDON TOP 250 BY MARKET CAPITALISATION
Chemring . . . . . . . . . . . . . . . . .3018.00 –1.00 3711.00 2551.00 ITV . . . . . . . . . . . . . . . . . . . . . . . .65.50 –1.20 71.75 41.04 Royal Dutch Shell A . . . . . . . . .2006.00 +26.50 2068.50 1621.00
Close Bros . . . . . . . . . . . . . . . . .773.00* +13.50 803.50 657.00 Jardine Lloyd Thompson. . . . . . .579.50 +3.00 604.50 420.70 Royal Dutch Shell B . . . . . . . . .1954.50 +28.00 1997.50 1550.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .237.70* –0.30 278.60 205.50 Johnson Matthey . . . . . . . . . . .1927.00 +1.00 1935.00 1397.00 RSA Insurance . . . . . . . . . . . . . .132.90* +1.10 137.40 114.10
COLT Group . . . . . . . . . . . . . . . .120.50 +0.60 144.20 107.70 JPMorgan Emerg Mkts . . . . . . . .605.50* +7.50 618.00 443.00 SABMiller . . . . . . . . . . . . . . . . .2069.00 +9.50 2091.50 1571.00 www.interactivedata.com

FTSE 100 bounces back after a strong Wall Street is lifted by

performance from the financial sector robust Citigroup earnings
may have reaffirmed hopes that we ly after ditching plans to form the gish sales of technology services.

THELONDON will receive some additional meas-

ures by central banks going forward
and that might have pushed the mar-
world’s biggest iron-ore joint venture.
“The announcement that Rio Tinto
and BHP Billiton won’t be proceeding
THENEW YORK “Both stocks have kind of gone par-
abolic into the earnings,” said Nick
Kalivas, an analyst at MF Global in

REPORT ket further,” said Keith Bowman,

equity analyst at Hargreaves
Lansdown.
with their joint venture, combined
with broker downgrades
Antofagasta, Vedanta and Xstrata,
for REPORT Chicago. “My fear is we’re going to get
a buy the rumor, sell the fact trade.”
In regular trading, Citigroup
“We saw above-expectation results has unsurprisingly left the mining gained 5.6 per cent to $4.17 after it
In association with from Citigroup, which also added to sector struggling," said Anthony In association with reported its third consecutive quarter-
sentiment. But going forward, we are Grech, head of research at IG Index. ly profit.
likely to see the same level of volatili- Anglo American, Antofagasta, Last week JPMorgan Chase and Co’s
ty that we have seen, with a signifi- Xstrata and ENRC fell 0.5 to 1.5 per profits beat estimates. The KBW Bank
cant level of uncertainty still likely in cent. index rose three per cent, recovering

B U
ritain’s top shares rebounded the coming months.” Retailers were weak as investors S stocks advanced yesterday as some of the losses banks had in the
yesterday after falls in the past Citigroup reported a stronger-than- awaited the British government’s stronger-than-expected profit last few days.
two sessions, boosted by oils expected quarterly profit as credit Comprehensive Spending Review on from Citigroup helped finan- The Dow Jones industrial average
and banks, with better-than- losses slowed. Wednesday, which is expected to cial shares shake off worries rose 80.91 points, or 0.73 percent, at
expected results from Citigroup and Financial stocks were among the involve a swathe of cuts to the public that the foreclosure mess could 11,143.69.
hopes of more US economic stimulus top gainers, with Standard Chartered, sector that could hit consumer spend- threaten the stability of the housing The Standard & Poor’s 500 Index
improving sentiment. HSBC, Barclays and Lloyds rose 1.1 to ing hard, traders said. market. gained 8.52 points, or 0.72 per cent, at
The FTSE 100 index ended 39.15 2.9 per cent. Tesco was off 0.4 per cent, while Apple, which hit an all-time high 1,184.71. The Nasdaq Composite Index
points, or 0.7 per cent, higher at “Investors have understood that Home Retail, the owner of Argos during the regular session, disap- added 11.89 points, or 0.48 per cent,
5,742.52 after falling last Thursday the worst case scenario is no longer which reports results on Wednesday, pointed investors after reporting at 2,480.66.
and Friday. The index is up six per the most likely,” Societe Generale said was down 0.5 per cent. gross margins and iPad shipments. Its Citigroup said it is looking at the
cent so far this year. in a note, referring to the risk of shares skidded five per cent in after- home loans it bundled into bonds
Energy shares featured among the recession in the United States and ANALYSIS l FTSE 5,742.52 hours trading while stock index and sold to investors. So far, it has not
top gainers, tracking a jump of 1.5 per deflation in Europe having been all 5,800 18 Oct futures fell, suggesting a weak market found any problems.
cent in crude prices on strikes at but ruled out. opening this morning. The largest US bank, Bank of
French refineries. Royal Dutch Shell, “Blue chip companies are flourish- 5,600
Shares in IBM also fell after the America, reports earnings this morn-
BG Group and Tullow Oil added 0.7 to ing and earnings outlook remains closing bell, losing 3.5 per cent to ing. Bank of America’s shares rose
2.3 per cent. Risky assets such as equi- positive. All of these factors should $137.84. three per cent to $12.40.
ties were also helped by economic give heart to investors and incite 5,400 The stock had reached a 52-week Before the close yesterday, around
numbers. Data showed US industrial them to move progressively back high during the regular session. 10 per cent of S&P 500 companies had
production unexpectedly fell in towards equities.” 5,400 International Business Machines reported earnings, with 84 per cent of
September, while capacity utilisation But miners extended Friday’s falls, Corp reported a higher-than-expected those beating expectations, according
eased slightly. with BHP Billiton and Rio Tinto 5,000 profit and raised its outlook for the to data compiled by Thomson
“US industrial production report falling 0.6 and 1.5 per cent respective- 19 Jul 6 Aug 26 Aug 16 Sep 6 Oct full year, but the shares fell on slug- Reuters.
CITYA.M. 19 OCTOBER 2010 In association with 27

Chile’s business-minded president

calls for free trade and innovation
Economic leadership
means Chile is on the
up, says Marc Sidwell

T
HE daring rescue of 33 miners
against apparently impossible odds
under the full glare of global media
attention has helped Chile to cap-
ture the world’s imagination. The ques-
tion for Sebastian Pinera yesterday was
whether his country’s economic
prospects are also bold and bright enough
to make Chile attractive to European
investors. The Chilean President’s long-
planned visit to London presented him
with the chance not only to meet David
Cameron but to talk up his nation’s wider
potential.
After just seven months in office,
Pinera has already had to confront not
only the mining accident but the after-
math of the colossal earthquake which
struck Chile in February, when he was
already president-elect, causing hundreds
of deaths and damaging one house in
every ten in the area affected. Despite
these high-profile disasters, Chile’s funda-
mentals remain strong. Pinera inherited
18 years of steady economic growth, and Sebastian Pinera, the
an economy that escaped the worst of the President of Chile, is a
global economic crisis. Pinera comment- self-made billionaire
ed: “We had a very huge crisis in our
banking sector in the 80s and we learnt Picture:
our lesson. We were able to face the new PA
crisis in a very solid way.”
Chile is also currently the beneficiary
of high demand for commodities from in office, saying “We will double or triple explain his commitment to economic Chile is a democratic beacon in its
China, with 45 per cent of Chilean investment in science and technology principle rather than the damaging pop- region, offering a rival Latin American
exports in 2009 going to Asia. That is and promote entrepreneurship” and “By ulism beloved of other South American vision that stresses free markets, open
notably true for copper, of which Chile 2014, we plan to create 1m jobs”. leaders. He stresses that: “Free trade is the trade, optimism, technology and econom-
produces 34 per cent of global output. In Pinera’s business credentials are impec- best answer; protectionism would be the ic growth. Pinera speaks of creating “a
2009, Chile’s GDP was $164.615bn cable, a self-made billionaire who found- wrong way to follow.” One of the boldest society of opportunities”, a rhetoric of
(£103.531bn) and GDP grew by 6.5 per ed Chile’s credit card giant, Bancard, and plans on his domestic agenda is a vouch- hope that aims unashamedly at making
cent in the second quarter of 2010. whose cabinet includes a foreign minister er-based education programme that will his country wealthy and strong. Investors
But Chile is not a country content to who was previously the director of Chile’s allow students to attend the private may feel that a kind economic inheri-
rest on its laurels, and Pinera was keen to largest retail chain. He is also a Harvard- school of their choice, an innovation still tance and a keen business mind give him
stress his ambitions for his four-year term educated economist. Both facts help to too radical for Britain’s conservatives. every chance of succeeding.

ANALYSIS l Chilean Trade SEBASTIAN PINERA | CV CHILE | GLOBAL RANKINGS

70
US$bn
Age: 61 • 10: Index of Economic Freedom 2010 (183 countries)
60 Family: Married, with four children • 18: Enabling Trade Index 2010 (125 countries)
Exports Education: Undergraduate degree in engineering and • 28: World Competitiveness Yearbook 2010 (58 countries)
50 Imports economics from the Pontifical Catholic University of Chile, • 25: Corruption Perception index 2009 (180 countries)
40 graduating top of his class; masters and doctorate in • 49: Ease of Doing Business 2010 (183 countries)
economics, Harvard University • 40: Networked Readiness Index 2009-2010 (133 countries)
30 Career: After gaining his doctorate, Pinera returned to Chile • 27: IT Industry Competitiveness 2009 (66 countries)
where he worked as an economics professor and a consultant • 44: Human Development Index 2009 (182 countries)
20 to the World Bank. He also pursued a successful career as an • 30: Global Competitiveness Index 2010 (139 countries)
10
entrepreneur, founding Bancard S.A. in 1976 and also invest- Chile scores first in its region on all of the above rankings
ing in LAN airlines and a Chilean television company. He ran except for Ease of Doing Business 2010, which places it
0 unsuccessfully as a presidential candidate in 2005. second for Latin America behind Colombia
1995 2005 2008 2009

THERE’S FLAT. THEN THERE’S 180º FLAT.

BusinessFirst®. 5 times daily Heathrow to New York with 180º flat bed seats.
continental.com

Flat bed seats may not be available in the event of aircraft substitution. Fifth daily service begins on 31 October, 2010. © 2010 Continental Airlines. Inc.
 28 Markets & Investment | Contracts for Difference
QE2 IS LIKELY
TO BE ABOVE
$1 TRILLION
DAVID MORRISON
CFD MARKET STRATEGIST, GFT
F
EW analysts now doubt that the Federal
Open Market Committee (FOMC) will
announce another round of quantitative
easing (QE) at its November meeting. In
fact, speculation has turned to the harm that Fed
inaction could cause to the markets. After all,
equities have been a one-way bet ever since QE2
became a possibility in late August. US Treasuries
have also benefited, the dollar has plunged and
precious metals, crude oil and other commodities
have soared. If the Fed is desperate to boost
price inflation, it is going the right way about it,
even though the CPI – its favourite inflation
measure – suggests a more benign outlook.
Speculation has switched from whether QE2
happens or not, to its likely size, scope and
duration. Since the markets absorbed $1.7 tril-
lion in the first round, anything below $1 trillion
is likely to be a disappointment. Conversely,
anything much above this could panic investors
as it would point to an economy on life support.
Some analysts believe that the Fed will trickle
stimulus in without stating an upper limit.
But it’s not just the Fed contemplating fur-
ther asset purchases. Tomorrow, we will see
the minutes of the last Monetary Policy
Committee (MPC) meeting, which might give
some clues as to the likelihood of additional QE
in the UK. The MPC is dealing with a stubborn-
ly high inflation rate, so Thursday’s inflation
report hearings will be important, particularly
as they follow hot on the heels of Wednesday’s
comprehensive spending review.
We have US housing starts and building per-
mits today, the Fed’s Beige Book tomorrow and
the first look at Chinese third-quarter GDP and
CPI on Thursday. Rounding off the week, we’ll
have the German Ifo Business Climate survey
and the first day of the G20 meeting of finance
ministers and central bankers.
Meanwhile, the US third-quarter earnings
season gathers pace. Although there have been
some positive reports in the tech space, the
financial sector remains under pressure. With
growing unease about the unwinding foreclo-
sure debacle and worries that further fall-out
from the subprime crisis is about to emerge,
US banks will continue to struggle.
YOU’RE NO STRANGER TO SPREAD BETS.
AND NEITHER ARE WE.
We’re GFT and we want to be your next spread bet firm.
From award-winning software to 24/7 service—not to mention some of the most competitive pricing out there —GFT has you covered.
CFDs, spot forex and spread bets are leveraged products and may not be suitable for everyone as it is possible to lose more than the funds you deposit.
Please ensure that you fully understand the risks involved. GFT Global Markets UK Ltd. is authorised and regulated by the Financial Services Authority.
SPREAD BETS | CFDs | FOREX / gftuk.com / free phone 0800 358 0864
CD03UK.113.073010
CITYA.M. 19 AUGUST 2010
Foreclosures dominate
bank earnings season
US financials’ better
credit has failed to
impress stock traders,
writes Juliet Samuel
J
UST before third-quarter earnings
season kicked off in the US, JP
Morgan released a research note on
the US banking sector calling bank-
ing stocks “attractively valued”. Pointing to
improved credit conditions this year, the
note was cautiously upbeat, revising near-
term estimates upwards. But there was one
word missing from the note: foreclosures.
In the past couple of weeks, the foreclo-
sures (repossessions, in UK terms) scandal
has earned its own “-gate” suffix, with
some suggesting that a worst-case scenario
could renew the financial crisis. Banks are
in trouble for allegedly trying to speed up
the process of foreclosing and selling on
homes by ramming them through “foreclo-
sure mills” – firms where unqualified, low-
level employees supposedly rubber-stamped
hundreds of vital court documents.
Bank shares have sunk across the board
since attorney generals in all 50 states
opened a joint inquiry into the matter. Nearly a quarter of homes currently sold in the US are foreclosures Picture: GETTY
Bank of America has fallen 3 per cent,
Citigroup 6.8 per cent, Wells Fargo 9.2 per regional banks such as Huntingdon foreclosures not just for their effect on
cent and JP Morgan Chase 8 per cent. This is Bancshares, Comerica and Fifth Third banking stocks, but more broadly. Oja
despite earnings per share for both JP Bancorp, which contract-for-difference points out: “If the foreclosures halt contin-
Morgan and Citi coming in at the higher (CFD) traders can bet on from the UK. These ues, that will have a serious impact on exist-
end of analysts’ forecasts, at $1.01 and $0.09 banks, like their national counterparts, ing home sales, which will affect
respectively (BoA reports today and Wells should see credit quality improvement and everything from growth to credit quality.”
Fargo tomorrow). reduced loan loss reserve ratios (see chart), The risk for traders of bank stocks is that
The problem is that the markets are fix- but be less tainted by the crisis. there are further hangovers from the finan-
ated on the foreclosures issue – with good Even so, it will pay to keep a keen eye on cial crisis still to emerge.
reason. Currently, nearly a quarter of US
home sales involve repossessed houses and ANALYSIS l Loan loss reserves continue to be released (median for large-cap banks)
many of these have now been paused: BoA
140
has suspended foreclosure sales in all 50 % Reserves to annualized NCOs (RHS) Basis points 3.60
states while JP Morgan has put 116,000 on
and JP Morgan estimates
Source: company reports
135 Reserves to loans (LHS) 3.58
hold. And this will be an ongoing
headache, potentially with multiple class- 130 3.56
action lawsuits to resolve.
Of course, if the foreclosures problem 125 3.54
turns out to be relatively limited, stocks
could rebound and traders willing to make 120 3.52
a risky bet could go long now. But a more
sensible approach might be to look at 115 3.50
banks not directly affected by the issue, but
which have been dragged down by it. S&P 110 3.48
1Q10 2Q 10 3Q10E 4Q10E
Equity Research’s Erik Oja is positive on
Get started at
gftuk.com.
Our index spreads have never been lower.
With spreads reduced to unprecedented levels on major stock indices, there’s never been
a better time to trade CFDs with IG Markets. You’ll find our platform has the speed,
*
security and reliability you’d expect of the UK’s No.1 CFD provider.
CFD trading can result in losses that exceed your initial deposit. Spreads will be wider when the
underlying market is closed.
Discover more at igmarkets.co.uk
*Largest single provider of CFD accounts in the UK, Investment Trends report 2009.
 30 Investment | Contracts for Difference CITYA.M. 19 OCTOBER 2010

When weaving
a commodities
basket, traders
must be skilful
Prices will depend on metric tons in China this year. This is a
substantial increase if you believe the
whether the dollar China Gold Association’s claim that last
year’s production reached 314 tons. The
can hold its rebound, technical analysts at Barclays Capital also
warn that gold prices could decline.
says Donata Huggins Gold’s failure to extend its rally at the end
of last week created a “shooting star” pat-
tern. This indicates near-term indecision
and warns of a downside correction. But

G
OLD bullion was down 0.7 per cent
to $1,361 while the dollar gained
ground against all major currencies
except the yen yesterday. Talk of the
inverse link between these safe havens is
not new and the chart below shows it in
action over the last four days. But this rela-
tionship is not only true of gold; dollars
have been pouring into commodities in
general over the past few months, grow-
ing every time the dollar weakened.
The dollar rebound has certainly shaved
off some of the commodity prices upside.
The price of gold, corn, copper, sugar, oil
and wheat all fell in immediate reaction.
Traders will no doubt be asking if the fate
of commodities is entirely tied up with
the dollar or whether the much-lauded
emerging market demand will prop up
the prices. City A.M. has turned its atten-
tion to three of the last month’s most
favoured commodities: gold, copper and
sugar to help traders weigh up whether
they should keep them in their basket.
Many analysts seem to think gold has
lost its shine. Some cite a claim from a sec-
tion chief in China’s Ministry of Industry
that gold production will increase to 340
COMMODITIES | PRICE CHANGES AS OF YESTERDAY
GOLD 100oz:
Year to date: +30.06 per cent
Monday’s change: -0.02 per cent
COPPER:
Year to date: +35.95 per cent
Monday’s change: +0.40 per cent
WHITE SUGAR:
Year to date: -0.13 per cent
Monday’s change: +15.71 per cent
Manoj Ladwa of ETX Capital remains fair-
ly confident that gold holds more upside
until the US quantitative easing (QE) issue
is resolved. This is likely to hold until at
least November, the earliest realistic occa-
sion it could be announced.
Copper for delivery in December
dropped 3.4 cents, or 0.9 per cent, to
$3.805 a pound at 8.00am on the Comex
in New York and 0.5 percent to $8,360 a
metric ton on the London Metal Exchange
yesterday. Many have started to say that
copper has strayed into overpriced territo-
ry on the back of dollar weakness. The
prospects for copper price are also weak-
ened by the fact that it looks like Chinese
companies have been stockpiling the
metal to the extent of 103,510 tons,
according to the Shanghai bourse. That is
the highest level since the week ending 3
September 2010. But some are still posi-
tive about copper’s growth potential.
Ladwa says: “It is riding 30-year highs and
China is going to continue its upside over
the longer term.” lation that India, the world’s second- Traders must pay choice: do they believe that emerging
Sugar is not just suffering from dollar largest producer, may have more to attention to detail market demand is enough to prop up
recovery at the moment, it has had a export. India’s biggest refiner Shree commodity prices or are they at the
tough two weeks in London due to specu- Renuka Sugars said that it may have 26m Picture: GETTY mercy of the dollar?
metric tons this year starting 1 October.
This is a 0.5m increase on the Indian ANALYSIS l A comparison of the gold and the dollar index price
Sugar Mills Association forecast. But over the last four days
CORN: Ladwa says that sugar is the soft commod- 2
Year to date: +49.80 per cent ity outperformer and Coca Cola’s earning
data due today could show a substantial Dolar index 77.383
Monday’s change: -0.89 per cent 1 Gold: price 102.2
increase in emerging market consump-
tion.
SILVER 5000oz: The activity over the last five days has
Year to date: +36.63 per cent certainly been negative, but the longer- 0
Monday’s change: -0.65 per cent term picture might not be so grim.
Traders should move cautiously, keeping -1
COFFEE (Arabica): a firm eye on emerging markets since it
Year to date: -0.59 per cent looks like they will be calling the shots.
Monday’s change: +34.67 per cent While there are no simple answers for
the near-term, traders do have a clear 12/10 13/10 14/10 15/10

THE bined with comments from the IMF’s John

Lipsky suggesting that QE2 would “depend
on data” helped keep the euro under pressure
TIPSTER on Monday. Spread Co offer a 0.8 pip spread
on euro-dollar of $1.39520–$1.39528.
LOOK FOR GOOD But it’s the pound that will be in the spot-
NEWS ON HOME light this week due to tomorrow’s fiscal
review. CMC Markets’ spread on euro-ster-
RETAIL GROUP ling is £0.87432-£0.87450.
Tomorrow’s Bank of England meeting min-
utes could move stocks around. Although
across the trading bloc. Germany alone might
avoid the worst of these issues but the risk of
demand slowing from key trade partners cer-
tainly needs to be considered. Current IG
Markets price on the Germany 30 is 6521-
6522.
Mining stocks have been in focus this week
after Rio Tinto and BHP Billiton had to scrap
their joint iron ore venture and early yester-
day the sector suffered from a bout of selling.
But there is still a strong upwards trend for

H
OME Retail Group has seen its share
price underperforming the market and
its sector this year: the share price is
down a whopping 30 per cent year-to-
date. Wednesday’s interims, however, should
provide us with some good news and investors
might look favourably on the stock as the
Christmas period approaches. Capital CFDs
quotes 219.2p-219.9p.
Euro-dollar blasted up to $1.4158 on
Friday before closing some 180 pips lower at
$1.3977. But industrial unrest in France com-
there are calls for more cheap money to be
pumped into the system, relatively high infla-
tion weighs against the decision. Signs of a
hawkish stance developing in the Monetary
Policy Committee could see traders looking
to book gains in the near term. Current IG
Markets price on the FTSE is 5723-5724.
German economic sentiment data is due
this morning in the ZEW survey and expecta-
tions are that the situation will again worsen
in October. European debt concerns still
linger and strikes seem to be spreading
miners and yesterday’s sell-off could prove a
buying opportunity, especially with Anglo
American reporting on Thursday. Capital
CFDs quotes 2843.5p-2847.5p for Anglo’s
share price.
With Citigroup’s figures coming in slightly
better than expected, interest in the other
financials over the rest of the week has been
raised. WorldSpreads offers a
$24.99–$25.05 spread on Morgan Stanley,
which reports on Wednesday.
Juliet Samuel Home Retail Group might be oversold Picture: GETTY
 Lifestyle RENAULT WIND 31
ROADSTER
| Poker IN TOMORROW’S
MOTORING SECTION

High-rollers
The West End’s smart get charitable
new club for card sharps for sick kids
Timothy Barber visits
the London venue
taking tournaments
and cash games
to the masses

F
OR poker enthusiasts who don’t
want to play for thousands of
pounds, finding a comfortable envi-
ronment to get stuck into a live
game of poker isn’t easy. You can dabble
in piddling pub tournaments (maximum
buy-in: £5), try your luck in the rather
daunting atmospherve of the few lower-
stakes casinos offering poker, or in the
hardly-less intimidating private gaming
clubs offering poker tournaments along-
side games like kalooki and backgam-
mon (it’s illegal for poker to be their
primary offering).
That unsatisfactory landscape is set to
change. The Fox Poker Club, which
opened last week on Shaftesbury Avenue
in the heart of the West End, is the new
kid in town. Unlike the aforementioned
members’ clubs, it has a full casino
license, meaning it doesn’t have to offer
other games to justify the poker. Instead,
a never-ending stream of tournaments
with buy-ins ranging from £20 to £300,
and cash games with blinds (minimum
betting stakes) of £1 upwards are taking
place in a plush room with seating for up
to 180 players.
“We’re creating a good environment
for people who have played at home or
have only played online and want to try it
live,” says founder and managing director
Chris North, a businessman with a back-
ground in the online gaming industry.
The space was formerly occupied by
the swanky private members’ club
Teatro, and affords the possibility of sit-
ting by floor-to-ceiling windows over-
looking the buzz of theatreland while
playing poker. Its large, smart bar area
can be hired out for corporate poker
events, while single tables can be hired
for stags and birthday parties [see box].
It’s a neat, highly professional place –
the fact that there are trained dealers for
every table will make a huge difference
The Fox Poker Club to anyone who’s ever felt the stress of
Shaftesbury Avenue having to self-deal in a card club while
playing – but it hasn’t been plain sailing
for North. With backers including British
poker legend Barney Boatman and US
star player Phil “Unabomber” Laak, and
an official sponsor in poker website PKR,
it’s nevertheless taken him five years to
get the club off the ground, navigating
tricky licensing and planning areas.
THE FOX POKER CLUB | DETAILS
Games spread at the club can include hold’em,
Omaha, 7-card stud, hi-lo, razz, horse and dealer’s
choice. The club currently has a 3am license but
is applying for an all-night license.
Areas can be hired for corporate hospitality
events or parties (contact the club for prices),
while birthday, stag and hen packages are all
However, with packed tournaments over
the first week – London Calling, a PKR-
backed tournament festival, is running
for the first month – North is confident
about the future.
“It’s never been about having just one
club,” he says, “it’s about building a
brand and expanding on that – hopeful-
ly, internationally.”
Kalooki’s loss is undoubedly poker’s gain.
available, starting at £60 per person.
The London Calling tournament festival runs
at the club until the end of this month, with
tournaments every day.
Fox Poker Club, 93-107 Shaftesbury Avenue,
W1D 5DY. Tel: 020 7494 3020
ww.foxpokerclub.com
Les A: the most exclusive card room in Europe.
HEN you’re trying to win chips off
W your opponents at the poker table,
charity’s the last thing on your
mind. That would particularly be
the case if you were slinging chips around in
the cardroom of Les Ambassadeurs casino in
Mayfair, which hosts the biggest (by which I
mean highest stakes) poker games in Europe.
There’s often over £1m at play here – I once
met a Wall Street hedge fund mogul whose
hobby is to hop over to London for a couple of
days at a time just to play at “Les A”, as regu-
lars call it – and it’s about the plushest poker
environment most folk will never see.
However, there was nothing at play there but
goodwill and some strangely huge poker chips
(it’s that exclusive – even its chips are bigger)
when the gaming and business communities got
together for a good cause last month. Black ties
were donned and deep pockets delved in aid of
Great Ormond Street children’s hospital.
Ladbrokes CEO Richard Glynn, Irish billionaire
and former City airport owner Dermot
Desmond, PR overlord Matthew Freud and gam-
ing entrepreneur Dermot Smurfit were a few of
the names gathered – along with invited gaming
industry insiders, hedgies, bankers, bettors and,
er, Barbara Windsor – to launch Raising the
Stakes, an initiative generating funds for a new
facility in the hospital’s cardiac unit.
Raising the Stakes has already raised four
fifths of its £500,000 initial target, of which
£270,000 was raised on the night. Next year
it’ll be coming to the City – no doubt in equal-
ly opulent style – with an event to coincide
with the Cheltenham races. Whoever said
gamblers weren’t generous?
Timothy Barber
For more information on Raising the Stakes
see www.gosh.org/raisingthestakes
For information on Les Ambassadeurs, visit
www.lesambassadeurs.com

The English queen of the felt

Astrophysicist, model, Boeree’s major success came in April
when she won the San Remo leg of the
European Poker Tour, scooping $1.2m by
hold’em genius – and winning out over 1,240 entrants. She’s now
joined the team of pros sponsored by
Liv Boeree’s won $2m, PokerStars, the biggest poker website, put-
ting her alongside some of the most
says Timothy Barber renowned players in the game.
She’s admirably unphased by plying her
trade in a poker world that, despite its glob-
Manchester University, and was consider-
ing a masters when she entered a poker-
themed TV show in 2006. “It was advertised
as using your skill and powers of deception
to win £100,000,” she says with a grin, “so
perfect for me.”
The programme saw novices get trained
in poker before competing with each other.
With her maths skills giving her edge,
Boeree proved a natural and never looked

I
S LIV Boeree too good to be true? An
astrophysics grad and sometime
model with the looks of a Bond girl
and a penchant for heavy metal – a
YouTube video she’s uploaded proves she’s
no mean guitarist –  she’s also the sixth
biggest winner in tournament poker this
year, with $1.8m from the last ten months.
Not bad for a 26-year-old from Kent.
al popularity, has failed to attract many
female players. “I’m a very competitive per-
son, and anything where you can challenge
the boys and beat them at their own game
is perfect,” she says. “I’ve always thrived in
male-dominated environments – the
physics world was actually pretty similar.”
Well yes, though hardly as lucrative.
Boeree got her degree in astrophysics from
back, earning over $2m over all since then.
“I’m not a gambler in the slightest, but I
get my buzz from the side of poker where
you’re trying to out-psych your opponents,” Liv Boeree: she’s
she says. “My friends from my pre-poker more talented
days think it’s hilarious, but this is a job for than you.
life, and I love it.”
For information on Liv Boeree and the UK &
Ireland Poker tour, see www.pokerstars.com/ukipt
 32 Lifestyle | Restaurant Review WORDS BY
JEREMY HAZLEHURST
CITYA.M. 19 OCTOBER 2010

Spanish favourite hits mark again

Canary Wharfers
have a hot new
place to drink and
dine a la West End

Camino
28 Westferry Circus, Canary Wharf, E14 8RR.
www.camino.uk.com/canarywharf
Tel: 020 7239 9077

FOOD hhhhi
SERVICE hhhhi
ATMOSPHERE hhhhi
Cost per person without wine: £35

I
T MUST be tricky designing a Spanish
restaurant. One route is to go rustic,
with wine barrels, crates, bull-fight-
ing memorabilia and castanets every-
where, and instructions to staff to wipe
their hands on their aprons at every
opportunity. This approach always seems
too kitsch by half to me, suggesting that
you genuinely think that a grizzly old
geezer called Pepe might drop in at any
moment, order a massive glass of anis and
set about demolishing a packet of those
dusty, dirty Spanish cigarettes, periodical-
ly hawking onto the floor.
The other approach is to totally ignore
the temptations of the Spanish clichés,
and to go spaceship. By this I mean that
you deck the place out in minimalist,
highly-polished metallic surfaces, compli-
cated modernist chandeliers and employ
staff who you half recognise from Dolce &
Gabbana ads. Such a choice might work
with some sorts of foods – say, the ones
that rely heavily on foams, reductions,
emulsions and infusions – but it feels a lit-
tle odd with Spanish food, which tends to
be what people call “honest”, meaning
that it tastes of what it is and where it
comes from. Spaceships are for space food,
and I never saw a fat jamon in the Starship
Enterprise.
At the new Camino in Canary Wharf,
they have got the balance just about
right. It’s in a modern building, right
by the waterfront and it’s clean and
swanky, but with reassuringly rustic
touches – barrels to rest your drink
on, antlers on the walls. In fact, it is
pretty similar in feel to the original
Camino up at King’s Cross, which
has been swooned over ever since it
opened. Just like the original
branch, the new place is also divid-
ed between drink and food, and
the evening we went in was very
busy, with a youngish crowd knock-
ing back some post-work beers and wines.
That gives it a pleasantly rambunctious
atmosphere. The choices of drinks are
good, too, with a selection of unusual
beers – a porterish stout and a pale ale,
both from Zaragoza – and ciders that
knock the socks off the industrial swill
you get in pubs. Wines are chosen with
care, and they venture well
beyond over-oaked Riojas.
Over in the restaurant, the
food is bang on. We started with
a plate of mixed charcuterie,
with several types of jamon,
lomo, salchichon, and fuet –
Catalan sausage. It was subtle,
salty and smoky, just as it should
be. We were told that we had to
try the grilled octopus tentacle,
and they were right. A whole, fat
tentacle with black grill-lines
served on a splodge of olive oil
mash, it was the best dish of the
night.
As a nod to the bankers and
brokers of Canary Wharf, which
sounds even better translated as
“Puerta de Canaria” – they have a
“Big Guns” wine-list with cham-
pagnes and some serious
Spaniards. We were drinking a won-
derful biodynamic wine called Villa
de Corullon and so we decided to keep it
meaty with Solomillo, a fillet steak served
on spinach and with a red wine reduction,
and chuleton a la parilla, sliced Basque-
style steak. But when I go again I’ll try the
monkfish with white bean stew and
sausage, and piquillo peppers stuffed with
morcillo black pudding. And the Dorset
lamb cutlet with Jerusalem artichoke
puree. And the pig shoulder blade with
garlic puree.
That all makes it sound quite heavy, but
there is a solid selection of tapas as well,
and a nice choice of classic seafood includ-
ing grilled baby squid or prawns, and a
gratinated scal-
lop with saf-
fron, which sounds
fantastic.
The great thing about this
place is that you could drop in
for a beer and a tapa, or you
could have a belly-tightening
chow-down. The views of the
water sparkling outside and the
up-market wine list mean that it
would even work for informal
client entertainment. That makes it
sound like I’m looking for an
excuse to go back. I
think it’s safe to
say that I am.
Camino gets the
balance between old- FOOD & BOOZE
world Spanish and
modernity quite right. NEWS
Picture: Matt
ZOE STRIMPEL
Cheetham
IN CONVERSATION WITH FERRAN ADRIA
If you’re one of the many foodies that is fasci-
nated by El Bulli chef Ferran Adria, then don’t
miss this chance to hear him in conversation
with acclaimed food author Colman Andrews at
the Royal Geographical Society. The event is in
celebration of the chef’s first biography, pub-
lished by Phaidon – stick around afterwards for
a book signing. 24 Oct, Royal Geographical
Society, 1 Kensington Gore, SW7 2AR. Tickets
£24; book at www.seetickets.com.
VENETIAN FEAST AT PORTRAIT GALLERY
To coincide with the much-hyped Canaletto
show, the National Portrait Gallery has brought
in Venetian chef Riccardo de Pra to create a
menu for gallery guests. The two-course dinner
will cost £28 and include the likes of Venetian-
style sardines, veal liver and onions with polen-
ta, and tiramisu. Great Venetian wines from the
Masi vineyards will also be provided to wash it
all down. Is this the future of art appreciation in
London? Hope so. Until 16 Jan at The National
Café, East Wing, The National Gallery, WC2N
4DN. Tel: 020 7747 4792.

THREE OTHER SPOT-ON TAPAS RESTAURANTS

LOSING YOUR HAIR? ZOE STRIMPEL
At The Wimpole Clinic, the most advanced hair
restoration centre in Europe, Dr Michael May F.R.C.S.
has pioneered a permanent solution to
male pattern baldness using advanced
follicular unit transplant techniques.
For your FREE consultation
with Dr May call today on
020 7935 1861
www.wimpoleclinic.com BARRICA DEHESA ESSENCE
Goodge Street has become like mini- From the people behind Salt Yard, this Close to the Square Mile but very
THE WIMPOLE CLINIC Madrid, with two great tapas bars a
stone’s throw from each other – Salt
is another stylish and utterly scrump-
tious spot in which to commune with
Shoreditch, this is an award-winning
tapas bar that combines a buzzy atmos-
Registered 0000061435
Yard and this one. Everything is deli- jamon, wonderfully cooked fish and an phere (there’s a DJ bar) with seriously
Hannah House, 1 1-16 Manc hester Stre et, London W1U 4DJ
cious here, from the melty pork loin to array of exciting cheeses, potatoes and good food. Fans love the pimentos

IT CAN BE RESTORED! the whole juicy courgettes with

almonds and lemon. 62 Goodge Street,
W1T 4NE. Tel: 020 7436 9448.
vegetables. Great wine too, but no
bookings taking. 25 Ganton St, W1F
9BP. Tel: 020 7494 4170.
stuffed with salt cod mousse and the
grilled Iberian pork fillet. 2-5 Carthusian
St, EC1M 6EB. Tel: 020 7253 6009.
CITYA.M. 19 OCTOBER 2010 Lifestyle | TV& Games 33

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm EastEnders; BBC News
8pm Holby City
9pm Traffic Cops
10pm BBC News
10.25pm Regional News
10.35pm CHOICE Tormented
Lives
11.25pm FILM Taken in Broad
Daylight: Premiere. With Sara
Canning. 2009; Weatherview
12.50am Sign Zone: See Hear
1.20am Sign Zone: Natural World
2.10am Sign Zone: E Numbers: An
Edible Adventure 3.10am Sign Zone:
Who Do You Think You Are?
4.10am-6am BBC News
6pm Eggheads 6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm Strictly Come Dancing 6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
– It Takes Two 7pm Emmerdale 7pm Channel 4 News 7pm Five News at 7
7pm Coast: The team travels 7.30pm Grimefighters 7.55pm 4thought.tv 7.30pm CHOICE How to Take
from Berwick-upon-Tweed to 8pm Fiddles, Cheats & Scams: 8pm Wedding House Stunning Pictures; Five News
Aberdeen. New series. The work of 9pm Ramsay’s Best Restaurant Update
8pm MasterChef: The audacious conmen. 10pm CHOICE Seven Days 8pm Motorway Madness; Five
Professionals: Contestants bid 9pm 71 Degrees North: The 11.05pm 3 Minute Wonder News at 9
for places in the quarter-finals. remaining five celebrities reach 11.10pm Russell Brand Doing 9pm CSI: Miami
9pm Whites reindeer country. Life 10pm CSI: NY; Five News
9.30pm Harry & Paul 10pm ITV News at Ten 12.15am Late Night Poker Update TORMENTED LIVES
10pm Later Live – with Jools 10.30pm London News 1.15am Beach Volleyball: Highlights
11pm CSI: CSI BBC1, 10.35PM
from Poland and Austria. 2.05am
Holland 10.35pm Homes from Hell 12am NCIS Rosa Monckton explores stories of
Freesports on 4 3am KOTV Boxing
10.30pm Newsnight; Weather 11.35pm Swingtown Weekly: Action from around the 12.55am SuperCasino attacks on people with learning
11.20pm Wonders of the Solar 12.30am The Zone; ITV News world. 3.25am British Formula Ford 4.05am House Doctor 4.30am difficulties, meeting families that came
System Headlines Championship 3.50am World Sport Great Scientists 4.55am Rough under siege in their own homes.
12.20am BBC News 2.30am The Rockford Files 3.25am 4.15am Triathlon ITU World Guide to Activity Holidays 5.10am
3.15am Close 4am-6am BBC The Jeremy Kyle Show 4.20am- Championship Series 5.10am-6am Michaela’s Wild Challenge 5.35am-
Learning Zone 5.30am ITV Nightscreen Deadliest Catch 6am Michaela’s Wild Challenge

SKY SPORTS 1 2am Asian Tour Golf Show 9pm Teenage Tourette’s Camp 2.15am King of the Hill 2.35am DISCOVERY HOME &
SATELLITE & CABLE

7pm Sky Sports News at Seven
7.30pm Soccer Special
10.30pm Football Asia 11pm
Revista De La Liga 12am A-
League 12.30am UEFA
Champions League Goals
1.30am Revista De La Liga
2.30am Football Asia 3am
UEFA Champions League
Goals 4am A-League 4.30am
Revista De La Liga 5.30am-
6am BMX Cycling
SKY SPORTS 2
5pm Live UEFA Champions
League 7.30pm Live UEFA
Champions League 10pm
UEFA Champions League Goals
11pm Poker Million 1am
Polocrosse 2am Polo 3am-4am
Sports Unlimited
SKY SPORTS 3
7pm European Seniors Tour
Golf 8pm Polocrosse 9pm
Polo 10pm PGA Grand Slam of
Golf 1am Golfing World
2.30am-3.30am European
Seniors Tour Golf
BRITISH EUROSPORT
7pm WATTS 8pm Boxing
10pm Freeride Spirit Show
10.15pm Rallying 10.45pm
Eurogoals 11.15pm-12.20am
British Superbikes
ESPN
6.15pm Eredivisie Review Show
7.15pm ESPN Premier League
Kicks 7.30pm NFL: Monday
Night Football 10pm Pardon the
Interruption UK 10.30pm
Premier League Review 11.30pm
Russian Premier League Review
12am ESPN Game of the Week
12.30am Live NHL Ice Hockey
3am Press Pass 2010 3.30am
VW Scirocco Cup 4.30am
ESPN Serie A Kicks 4.45am-
5.45am Eredivisie Review Show
LIVING
7pm Four Weddings 8pm
America’s Next Top Model
10pm Nikita 11pm Criminal
Minds 12am CSI: Crime Scene
Investigation 2am Charmed
3am Nothing to Declare
3.50am Pete Burns’ PA 4.40am
The Jerry Springer Show
5.30am-6am Home Shopping
BBC THREE
7pm Total Wipeout 8pm Snog,
Marry, Avoid? 9pm Don’t Tell
the Bride 10pm EastEnders
10.30pm Lip Service 11.30pm
Family Guy 12.20am Don’t Tell
the Bride 1.15am Lip Service
2.15am Bizarre ER 3.15am
Total Wipeout 4.15am-5.15am
Snog, Marry, Avoid?
E4
7pm Hollyoaks 7.30pm Friends
9pm Smallville 10pm The
Cleveland Show 11pm The Ricky
Gervais Show 11.30pm King of
the Hill 12am Scrubs 1am The
Cleveland Show 1.50am The
Ricky Gervais Show
Life Unexpected 3.15am Reno
911! 4am Switched 4.20am HEALTH
7pm Deliver Me 8pm Half Ton
Accidentally on Purpose
4.40am-6am Switched
Hospital 9pm I’m Addicted To
Plastic Surgery 10pm Monsters
HISTORY Inside Me 11pm I’m Pregnant SEVEN DAYS
7pm Egypt 8pm Lost Cities of and Anorexic 11.30pm I’m CHANNEL4, 10PM
Pregnant and Bi-Polar 12am I’m
the Ancients 9pm Ancient Documentary following a variety of
Discoveries 10pm Tsunami: Addicted To Plastic Surgery
1am Monsters Inside Me 2am people living or working in Notting Hill,
Anatomy of a Disaster 11pm
Warriors 12am Ancient
I’m Pregnant and Anorexic including a hairdresser, a rapper and
2.30am I’m Pregnant and Bi- two models.
Discoveries 1am Barbarians Polar 3am Half Ton Hospital
2am Egypt 3am Britain’s X Files 4am Midwives 5am-6am
4am-5am UFO Files Bringing Home Baby
DISCOVERY SKY1
8pm How Do They Do It? 7.30pm The Middle 8pm UK
8.30pm How It’s Made 9pm Border Force 9pm Stargate
Trawler Wars 10pm Deadliest Universe: The Destiny docks
Catch 11pm Building the Future with a seeding ship. 10pm
12am Bear Grylls: Born Survivor Fringe 11pm A League of Their
1am Swords: Life on the Line Own 11.30pm Football’s HOW TO TAKE STUNNING PICTURES
2am Industrial Revelations 3am Greatest 12am Road Wars CH FIVE, 7.30PM
Weaponology 3.50am Treasure 1.50am Street Wars 2.40am Martin Parr teaches a class of amateurs
Quest 4.40am Days That Shook Oops TV 3.30am Lost 5.10am- how to take photographs, giving them
the World 5.30am-6am How 6am Are You Smarter Than a advice on how to transform ordinary
Does That Work? 10 Year Old? pictures into something memorable.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
10 28 22 10 12 30 15 10 
34 15
   
16 23
Place the numbers from 1 to 9 in each empty cell so that each 27  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 11 12
27 35
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 16 27
 
above or to the left of it. 3 29 29
You can only use the digits 1-9 6 17 8 
   and you must not use the
17 6
45    
same digit twice in a block.
   The same digit may occur 13 11 8  
13 19
    more than once in a row or
column, but it must be in a 18 21
11
7
14
 
16 19
   separate block.
17 11
19 18
  24 33
 

   ACROSS DOWN
1 Bringing death (5) 1 Apartments (5)
   
   WORDWHEEL L P
3 Periodically repeated
sequence (5)
7 Gifted, competent (4)
2 Structure for
open-air sports (5)
4 Property that
Using only the letters in the Wordwheel, you have
   ten minutes to find as many words as possible,
I R 9 Not established by
defines one’s
individual
conditioning or learning (6)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters L 11 Combine (5)
nature (9)
5 Lament for
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E A 13 Country, capital
Khartoum (5)
the dead (5)

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

S D 14 Affected with insanity (5)
6 Small insectivorous
bird (3)
15 Encountered (3) 8 Idiotic, farcical (9)
QUICK CROSSWORD 2 1 6 3 4 2 1 3 16 Bedtime beverage (5)
6 8 5 ( 7 < ( 7 & +
7 5 9 8 8 3 7 9 SUDOKU          17 Modify (5)
10 Liquid produced
by a flower (6)
3 8 7 9 1         
& $ 5 ( / < (
9 2 1 3 6 9 20 Cardinal number (5) 12 Convict (6)
$ ) ( ( 6 ( 9 , /         
0 2 7 $ % ( 3 7 4 9 8 2 1 6 3 5
         22 Point in orbit (6) 16 Muscular spasm (5)
1 ( 6 & $ / $ 7 ( 2 5 5 8
         23 Dull, dreary (4) 18 Narrow shelf (5)
3 ( 7 8
$ 6 6 2 5
6
7 ( '
/ $ '
1
3 1 5
1 5
7 9
9 8
2 4 6 8
7 9
WORDWHEEL          24 Tagliatelle or ravioli, 19 Picture puzzle (5)
7 $ < / ( * 2         
2 8 5 6 % , 1 ' 9 9 1 4 1 8 The nine-letter word for example (5) 21 Adult female
7 9 8 6 8 4 9 7         
, ( / $ 1 * 8
was BOOKSHELF         
25 Second planet from bird (3)
6 3 $ 7 5 ( ' ( ( 0 1 3 7 2 1 2 5 3
the sun (5)
 34 Sport CITYA.M. 19 OCTOBER 2010

Results
FOOTBALL
BARCLAYS PREMIER LEAGUE
Blackburn.....................(0) 0 Sunderland.......................(0) 0
Fifa widens World Cup bribery probe
Att: 21,894
P W D L F A GD Pts ple in their organisation could be statement. Nigerian Amos Adamu, Therefore, an investigation has also

▲
Chelsea 8 6 1 1 23 2 21 19 FOOTBALL
Man City 8 5 2 1 12 5 7 17 BY FRANK DALLERES implicated and are also looking into president of the West African Football been opened into the member associ-
Arsenal 8 4 2 2 18 10 8 14 suggestions that countries bidding to Union, and Tahiti’s Reynald Tamarii, ations in question as well as their bid
Man Utd 8 3 5 0 18 11 7 14 THE CRISIS enveloping the bidding host the World Cup, which included president of the Oceania Football committees.”
Tottenham 8 4 2 2 10 7 3 14 process for the 2018 World Cup deep- England, may be guilty of collusion. Federation, are the two individuals England are one of the leading can-
West Brom 8 3 3 2 11 14 -3 12 ened last night when governing body “Fifa has opened proceedings under the microscope. didates to host the 2018 World Cup,
Bolton 8 2 5 1 12 12 0 11 Fifa revealed it had widened its inves- against two current members of the Fifa’s statement added: when the tournament is set to return
Aston Villa 8 3 2 3 9 12 -3 11
Stoke 8 3 1 4 9 11 -2 10 tigation into claims of corruption. Fifa executive committee to ascertain “Investigations are also ongoing in to Europe, but face competition from
Blackpool 8 3 1 4 13 18 -5 10 Two members of Fifa’s executive whether they have violated the Fifa relation to other Fifa officials who Russia and joint bids from
Everton 8 2 3 3 8 7 1 9 committee, which will in December code of ethics, and has asked the may have been involved in the issue Spain/Portugal and Holland/Belgium.
Fulham 8 1 6 1 9 9 0 9 decide who hosts that 2018 and 2022 chairman of the ethics committee to in question. Fifa also confirms that A vote will take place on 2 December.
Sunderland 8 1 6 1 7 7 0 9 tournaments, are being probed over act without delay to take all possible the alleged agreements between United States withdrew from the
Blackburn 8 2 3 3 7 8 -1 9
Wigan 8 2 3 3 6 15 -9 9 claims they offered to sell their votes steps, including the possibility of pro- member associations would also be a race last week, but are vying for the
Newcastle 8 2 2 4 12 12 0 8 to an undercover reporter posing as a visional measures, should the rele- clear violation of the bid registration 2022 event with Australia, Qatar,
Birminghm 8 1 4 3 8 12 -4 7 businessman. Fifa now say other peo- vant conditions be met,” read a document and the code of ethics. Japan and South Korea.
Wolves 8 1 3 4 8 13 -5 6
Liverpool 8 1 3 4 7 13 -6 6
West Ham 8 1 3 4 6 15 -9 6

McGeechan
AMERICAN FOOTBALL
NFL: Chicago 20 Seattle 23, Denver 20 NY Jets 24, Green
Bay 20 Miami 23, Houston 35 Kansas City 31, Minnesota 24
Dallas 21, New England 23 Baltimore 20, NY Giants 28
Detroit 20, Philadelphia 31 Atlanta 17, Pittsburgh 28
Cleveland 10, San Francisco 17 Oakland 9, St Louis 20 San
Diego 17, Tampa Bay 6 New Orleans 31, Washington 24

mulls Irvine’s
Indianapolis 27
BASEBALL
NATIONAL LGE—Ch’ship Series: Philadelphia 6 San
Francisco 1 (Series tied 1-1).
GOLF
FRYS.COM OPEN (San Martin, California)— —Final rnd (USA

Lions offer
unless stated): 269 R Mediate 73. 270 B Van Pelt 71, A
Prugh 69. 271 R Fowler 69. 272 C Tidland 69.
CVS/PHARMACY LPGA CHALLENGE (Danville, California)— —
Final rnd: 274 B Recari (Spa) 70. 275 G Nocera (Fra) 70. 276
M Redman 72 (USA), K Icher (Fra) 70.
ICE HOCKEY
NHL: Anaheim 3 Phoenix 2, Vancouver 5 Carolina 1.

TODAY’S DIARY Fellow Scot Irvine also admitted

▲

RUGBY UNION
(Football 7.45pm unless stated)
BY FRANK DALLERES interest in Warren Gatland, but his
UEFA Champions Lge new contract with Wales makes
Group E BRITISH and Irish Lions icon Sir Ian McGeechan the clear favourite.
Bayern Munich v CFR Cluj-Napoca ......................................................................
Roma v Basle ................................................................................................................ McGeechan has hinted he could be “His record speaks for itself, he’s
Group F tempted to go back on his word and Lions through to the core and did a
Marseille v MSK Zilina.............................................................................................. return for another stint as coach. fantastic job on the last tour,” said
Spartak Moscow v Chelsea (5.30) ...................................................................... McGeechan, a veteran of seven Irvine. “He has to be a consideration.
Group G Lions tours, insisted after coaching in If Ian throws his hat into the ring
Ajax v Auxerre ............................................................................................................
Real Madrid v AC Milan............................................................................................ last year’s hard-fought expedition to we’d seriously have to look at it.”
Group H South Africa that his long association
Arsenal v Shakhtar Donetsk .................................................................................. with the team was at an end.
Braga v Partizan Belgrade ......................................................................................
npower Football League Championship
But Andy Irvine, installed yesterday
as Lions manager for the next tour, to
Australia tour to begin
Bristol City v Reading................................................................................................
Burnley v Barnsley......................................................................................................
Australia in 2013, has made no secret
of the fact that McGeechan is his pri-
with Hong Kong date
Coventry v Cardiff ......................................................................................................
Doncaster v Derby ...................................................................................................... mary target for the role. And the Scot,
Hull v Sheff Utd............................................................................................................ 63, currently in a low-key position as
Leeds v Leicester ........................................................................................................ performance director at Bath, last HONG KONG will stage a British and
Millwall v Portsmouth .............................................................................................. night admitted the lure of the Lions Irish Lions match for the first time as
Norwich v Crystal Palace ........................................................................................
Nottm Forest v Middlesbrough..............................................................................
might be too strong to resist. a curtain-raiser to the team’s next
Preston v Scunthorpe................................................................................................ “Your enthusiasm for the Lions tour. The Lions will kick off their voy-
Swansea v QPR ............................................................................................................ doesn’t change,” said McGeechan. age to Australia in 2013 with a fix-
Watford v Ipswich...................................................................................................... “I’ve yet to speak to Andy about this. I ture against the Barbarians on the
need to have those sort of conversa- island. Bank HSBC, meanwhile, has
tions. I know what I said at the time extended its sponsorship of the team
SPORTS EDITOR FRANK DALLERES but here we are, talking about it, and until after the tour.
email sport@cityam.com it all starts to look exciting again.” Irvine (above) wants fellow Scot McGeechan to coach the Lions again. Picture: GETTY

SPORT | IN BRIEF
Gatland signs up until 2015 Merritt banned for 21 months
No fear: Murray reveals how
to get the better of Federer
RUGBY UNION: Wales coach Warren ATHLETICS: American Olympic and
Gatland has extended his contract, com- world 400m champion LaShawn Merritt
mitting himself to the job until the end of has been handed a 21-month ban for
the 2015 World Cup. The New doping. Merritt tested positive three
Zealander’s new deal ends speculation he times for testosterone and accepted a
could return home to Waikato Chiefs and provisional suspension earlier this year.
appears to rule out any major role with His ban has been backdated to his first
the 2013 British and Irish Lions tour to positive test in October 2009, meaning “I enjoy playing him. I to England yesterday and has almost
▲

TENNIS
Australia. Gatland has named uncapped all results since than have been annulled don’t find it easy at all. two weeks before his next tourna-
BY FRANK DALLERES
Scarlets teenager George North in his but opening the door for him to make a It’s incredibly difficult ment, the Valencia Open, in which to
squad for the autumn Tests against Tri- controversial return at the next Worlds in BRITAIN’S Andy Murray has revealed every time,” said the 23- reflect on a welcome return to top
Nations opposition. August 2011. the secret of his superb record against year-old. form.
16-time Grand Slam winner Roger “But I love the Murray had looked out of sorts
Carroll bailed to live with Nolan Graham named England captain Federer: playing without fear. challenge of since a surprise third-round
FOOTBALL: Newcastle striker Andy RUGBY LEAGUE: St Helens prop James Murray triumphed over the Swiss playing against defeat to Stanislas
Carroll has been bailed on a charge of Graham has been named Adrian Morley’s superstar yet again on Sunday as he him. I don’t fear Wawrinka at
assault – on the condition that he lives replacement as England captain for the clinched his second title of the year at playing him. the US Open
with team-mate Kevin Nolan. England Four Nations. Coach Steve McNamara the Shanghai Masters. Every time I go last month, his
Under-21 star Carroll appeared in court turned to Graham, 25, to lead the side That took the Scot’s head-to-head on, I know I need latest Grand Slam
yesterday accused of attacking an ex- against New Zealand on Saturday after record against Federer to 8-5 in his to play great tennis to win disappointment.
girlfriend early on Sunday morning. He Morley injured his bicep in the weekend favour, second only to Rafael Nadal in against him. But he swept to a straight-
was granted conditional bail on the provi- warm-up match against New Zealand the world’s top 10. “I don’t know if my game sets victory over Federer on
so he stays with captain Nolan until a Maori. “When Steve offered me the cap- And gutsy Murray insists that his matches up well against his or Sunday to cap a week in which
further appearance on 10 January. taincy I had no hesitation in saying yes,” refusal to be intimidated is the reason not. But I’ve played some of my he also booked his place at the
Carroll does not have to stay at Nolan’s said Graham. “It’s a great honour and I he often produces his best against the best tennis against Roger.” ATP Tour World Finals in
home on nights when Newcastle play. am deeply proud that I have this chance.” world No2. World No4 Murray flew back London next month.
CITYA.M. 19 OCTOBER 2010
Rooney has picked the wrong time
to demand Man City-style wages
FOOTBALL COMMENT
TREVOR STEVEN
PICTURE the scene: Wayne Rooney
holding up a Manchester City shirt in
January after crossing town from
their most hated rivals. It couldn’t
happen, could it?
Right now it seems like anything
could happen. The impasse over
Rooney’s new contract is a massive
issue and his relationship with the
club seems to be in ruins. Both he and
Sir Alex Ferguson are strong charac-
ters who appear to be at odds, and the
longer no-one says anything the more
the issue will be magnified.
Rooney’s advisors have probably
seen City paying Yaya Toure around
£200,000 per week and thought
they’d ask for one penny more.
But now is not a good time for the
striker to demand club-record wages.
He has been in woeful form since
injuring his ankle in March, has off-
field issues playing on his mind and
he looks like he’s carrying the weight
of the world on his shoulders. If he
Ancelotti unfazed by Terry mindset in Moscow
SPARTAK MOSCOW
CHELSEA
Sky Sports 2, kick-off 5:30pm
▲
FOOTBALL
BY FRANK DALLERES
IF recent history is anything to go by,
Chelsea manager Carlo Ancelotti has
Strachan tears
up contract on
Boro departure
FOOTBALL
▲
MANAGER Gordon Strachan waived a
pay-off by ripping up his contract
after parting
Championship
company
Middlesbrough yesterday.
with
strugglers
Strachan left the Riverside after a
disappointing start to the season in
which Boro have won just three
games and slumped to 20th.
“Gordon has torn up his contract
and walked away without compensa-
tion because he felt it was in the best
interests of this football club,” said
chairman Steve Gibson.
“He knew first-team results weren’t
anything like as good as we had
hoped they would be and he agreed
that the change had to be made.”
was in the blistering form of last sea-
son he could strike while the iron was
hot; at the moment it’s stone cold.
Besides, United would have to dig
extremely deep to be able to offer
Toure-level wages, even to Rooney.
And this hardly represents the best
time to cajole Ferguson, who will be
good reason to fear his side’s visit to
the Luzhniki Stadium this evening.
Last time the Blues played there
John Terry ended the night in tears
after the captain’s penalty shoot-out
miss denied them a first Champions
League title. If that were not enough,
Spartak Moscow have since restored
their home’s all-weather artificial sur-
face, the kind on which Tottenham
toiled miserably against Young Boys
just weeks ago. But Ancelotti does not
Rovers cling on for draw
despite Samba red card
BLACKBURN 0
SUNDERLAND 0 someone else. We should be taking
▲
FOOTBALL
BY FRANK DALLERES
SUNDERLAND manager Steve Bruce
berated his toothless side after they
were held by 10-man Blackburn in tor-
rential conditions at Ewood Park.
Rovers defender Christopher
Samba was dismissed in first-half
stoppage time for bundling over
Danny Welbeck on the edge of the
penalty area. But the Black Cats could
not take advantage of their numeri-
cal superiority, with Darren Bent
furious with all his players, not just
Rooney, at being fourth in the
Premier League and behind City.
VERY BIG BUCKS
A move might seem attractive: the
mind-boggling money at City, the dis-
tance from the tabloids he would
believe Terry or his team-mates will
be haunted by bad memories when
the Group F pacesetters meet in the
Russian capital.
“John has great experience so I
think what happened two years ago
has no effect on him, he has experi-
ence,” he said. “Everyone knows in
football you can sometimes lose
games. I lost a final in 2005 but you
have to look forward. If you look for-
@
ward with enthusiasm and character
missing their best chance.
“We can’t keep relying on Benty to
score us a goal,” said Bruce. “We’ve
got to come up with some goals from
some of the chances we’ve created.”
Striker Bent has scored five of
Sunderland’s seven Premier League
goals this season, and ought to have
added to that tally when he found
himself one-on-one and shot straight
at Paul Robinson. Morten Gamst
Pedersen went closest for Blackburn,
his free-kick from 40 yards forcing
Steve Mignolet to tip over.
The result keeps both sides just
three points off the relegation zone
and Blackburn boss Sam Allardyce
was grateful Samba’s foul was not
also punished with a penalty, given
Welbeck fell inside the box.
Sport 35
Rooney appears to
be at odds with the
United hierarchy
over contract nego-
tiations that have
broken down.
Picture:
ACTION IMAGES
enjoy in Spain. But Rooney does not to resolve this deadlock. Ferguson
seem the best suited to living abroad, should not do anything rash; he let
where he would have to learn the lan- Jaap Stam go in a hurry and I think
guage and mingle with the media. he still regrets it.
And David Beckham was still fol- Someone should sit Rooney down,
lowed by paparazzi when he joined meanwhile, and give him some
Real Madrid. advice: rediscover your best form
Clearly something needs to happen before demanding very big bucks.
you can have revenge. Chelsea lost Lampard and full-back Jose Bosingwa,
the final in 2008 but I don’t think but forwards Salomon Kalou and
they will have a psychological prob- Daniel Sturridge could return.
lem with that tomorrow, it is a differ- “I can say nothing about this
ent story now.” because we haven’t tried this kind of
The Italian also dismissed concerns pitch,” he said. “We want to try it this
about the pitch but admitted he evening in the training session and
would not decide on his team until after that we can have an opinion
seeing how players reacted to train- about this. We don’t have a problem
ing on the surface last night. Chelsea to play here, I hope, but it is different,
are without striker Didier Drogba, it is one of the best artificial pitches.
defender Alex, midfielder Frank We don’t complain about this.”
Make Money from
EVERY
PREMIER LEAGUE
Match!
The 7 bets
Downurload
yo
FRrt EtodaEy... “
the bookies
DON’T WANT
repo you to know
about!
”
Generating 129 winners
MORE SPORT from 152 bets last season
ONLINE
www.cityam.com
www.FootballOffer.co.uk/CAM
 Sport
36
Saracens in
transfer talks
with Wales
star Henson
▲
EXCLUSIVE
BY FRANK DALLERES
SARACENS have held talks with
Wales star Gavin Henson and will
decide whether to swoop for the
Ospreys star by tomorrow, City A.M.
can reveal.
Henson is one of a handful of play-
ers Sarries chiefs have identified as
possible recruits after fly-half Derick
Hougaard was ruled out for six
months.
“We have had some contact [with
Henson’s camp] but it would be much
too early to decide. We have got three
or four players we have identified, or
we could stick with what we’ve got,”
Saracens chief executive Edward
Griffiths told City A.M. last night.
“When you lose a player like
Hougaard you have to look at all the
options. We are looking at all the
options. One option is not bringing
anybody in. We will decide within the
next 48 hours.”
Henson, 28, would be a controver-
sial signing, having been out of the
game since March 2009 due to injury
and personal issues. The celebrity cen-
tre is keen to make a comeback, after
his stint on television’s Strictly Come
Dancing reaches an end, and is still
hopeful of forcing his way back into
the Wales team for the Six Nations
and next year’s World Cup.
Fabregas and Walcott ready Strauss: Australia off the
mark with KP criticism
to return for Shakhtar test
ARSENAL
SHAKHTAR DONETSK
Sky Sports 2, kick-off 7:30pm
▲
FOOTBALL
BY FRANK DALLERES
ARSENAL boss Arsene Wenger will
make a late decision on whether to
throw captain Cesc Fabregas and
winger Theo Walcott back into action
against Shakhtar Donetsk tonight.
Fabregas and Walcott, who have
Saracens director of rugby Brendan
Venter has not shied away from bold
signings, such as that of Matt Stevens,
the England and ex-Bath prop set to
join up with the club in January
when his two-year ban for cocaine use
expires. However, Henson’s availabili-
ty is complicated by the fact that he
remains contracted to Ospreys, who
would demand compensation and
from whom he is on unpaid leave.
Henson wants to resume his career
with a London club in order to be
closer to his children, who live with
their mother, singer Charlotte
Church, in the capital. He has also
cited public knowledge of his break-
up with Church as a reason for his
reluctance to return to the Ospreys
dressing room. He has been invited to
play for the Barbarians against South
Africa at Twickenham on 4
December, but his appearance
depends on his Strictly commitments
with the BBC.
Hougaard limped off during
Saturday’s narrow Heineken Cup
defeat to Leinster after hurting his
Achilles. The South African under-
went surgery on the injury yesterday
in London, after which doctors were
due to outline his recovery schedule.
But Premiership runners-up Saracens
are preparing to be without him for
six months. Youngster Alex Goode is
in line to replace him in the interim.
been sidelined by injury for a month,
both trained yesterday ahead of the
Champions League fixture at
Emirates Stadium.
“Cesc is available,” said Wenger.
“He had a little setback but got over
the hurdle and is ready to play at full
fitness. I do not know yet whether I
start him or not but he is available. It
will be whether I take a gamble or
not, because he has been out for a
long time. I have to make up my mind
[on Tuesday] but physically he is
ready, fit and wanting to play. Theo
has a toe problem. But his ankle is all
right and he is in the squad.”
GEECH SET FOR SHOCK
LIONS RETURN
SCOT TARGETED FOR
2013 TOUR: P34
Henson is one of “three or four” players on Saracens’ shortlist.
Shakhtar arrive in London second
behind the Gunners in Group H, but
only on goal difference after both
teams started their campaigns with
two wins. Among their ranks will be
ex-Arsenal striker Eduardo, who left
for Russia earlier this year after injury
derailed his career in north London.
“I will be happy and sad to see
Eduardo,” Wenger added. “I will be
happy because he was always a fantas-
tic boy with a fantastic mentality. I
will also be sad because I worked very
hard to get him and he left with the
feeling he could not completely fulfil
the promise of his first season.”
Picture: ACTION IMAGES
▲
CRICKET
ENGLAND captain Andrew Strauss
has hit back at Australian claims that
misfiring batsman Kevin Pietersen
could be a disruptive influence dur-
ing the Ashes.
Ex-Aussie coach John Buchanan
called Pietersen “fragmentary and
individualist” and warned he could
upset the squad during the series,
which starts next month.
But Strauss said: “Kevin Pietersen
has never been a problem for the
England cricket team. Buchanan is off
the mark to say that. I’m sure Kevin
will come to the party.”
Strauss also insisted that Pietersen,
CITYA.M. 19 OCTOBER 2010
Keane sides
with Rooney
in striker’s
United row
▲
FOOTBALL
BY FRANK DALLERES
MANCHESTER United great Roy
Keane has told unsettled striker
Wayne Rooney to “look after No1” in
any dispute with the Old Trafford
hierarchy.
Rooney is being tipped to leave
United after six years at the club amid
rumours that his relationship with
manager Sir Alex Ferguson has deteri-
orated beyond repair.
Keane, Ferguson’s trusted captain
before a falling-out led to the mid-
fielder leaving under a cloud in 2005,
believes Rooney should put his own
interests before the club’s.
“Players and managers fall out all
the time. It’s part of life,” said Keane.
“If I was to offer advice to Wayne, who
is a good lad, I would tell him to make
sure he looks after No1. Players are
pieces of meat; that’s how I look at it.
When your time’s up, your time’s up.
Luckily for Wayne he’s at a good age
and he’s fit.”
Real Madrid have been mooted as
possible bidders for Rooney, who is
said to have told United chiefs he will
not discuss a new contract and wants
to leave. But Real manager Jose
Mourinho yesterday played down the
prospect of a move for the England
star, predicting he would patch up
any differences with Ferguson.
“I don’t think he will [become avail-
able],” said Mourinho. “I think the big
man will persuade him to stay.”
Ferguson is set to be pressed on
Rooney when he faces the media
today ahead of United’s Champions
League clash with Bursaspor.
TREVOR STEVEN ON ROONEY: P35
who has gone 18 months without a
Test century, would not be dropped
before the series starts.
“I couldn’t see that happening,” he
added. “We all know what sort of
character he is, we know these sort of
big Ashes series tend to bring out the
best in him and to me that’s very
encouraging. He’s been out of form,
that happens to all of us, and anyone
who’s played international cricket for
any length of time knows it only takes
one innings to get yourself back in
form. For Kevin it might be one of the
first-class games that precede the
Ashes, it may be in the first Test
match, but he’ll come right; he’s too
good a player not to.”