Issue 1,258 Monday 8 November 2010

BUSINESS WITH PERSONALITY FREE

www.cityam.com

ROLLS-ROYCE HIT CAMERON’S

CHINA TRIP
AS FEARS MOUNT DIAGEO
BOOTS
AND
TARGET
▲

AVIATION
BY PHILIP WALLER
ROLLS-ROYCE, one of Britain’s last remaining
manufacturing giants, suffered a fresh blow
yesterday. Australian flag carrier Qantas
MARKET
P3, P14
claimed it had found issues with three more
engines on its grounded Airbus A380 “super-
jumbo” fleet following last week’s engine fail-
ure.
Qantas has removed two engines from an
A380 in Sydney and one from a jet in Los
Angeles following checks on the aircraft in
the wake of Thursday’s incident on a Qantas
jet flying to Australia..
Qantas grounded its A380 fleet and Rolls-
Royce advised airlines to make the checks
after one of the Trent 900 engines on Qantas
flight QF32 from Singapore to Sydney failed
and the aircraft was forced to make an emer-
gency landing in Singapore.
Qantas said it needed to remove the engines
from the wings of the aircraft in Sydney and
LA for closer inspection, although it declined
to give details.
The news could scupper hopes voiced by
Qantas boss Alan Joyce on Saturday of being
able to get the fleet airborne again “within
days”.
There appeared to have been a break-
through in the investigation yesterday after
Australian investigators said they had
found part of the engine on Batam
Island in Indonesia that could be
crucial in understanding what
caused the engine to fail. Rolls-Royce, led by Sir John Rose
The Australian Transport (left), is facing fresh problems
Safety Bureau (ATSB) said it was with its plane engines
forwarding an engine part, said
to be half of a geared disc, to
Rolls-Royce in the UK for inspec- the prevention of future similar Airbus, airlines and the authorities in the
tion under the supervision of ATSB occurrences,” the ATSB said. investigation, which it said was at an early
investigators. Rolls-Royce, which makes the Trent stage.
It urged residents of Batam Island to give 900 engine at its civil aerospace plants in A spokesman also refused to comment
any other engine parts they found, particular- Derby, yesterday refused to comment on the after it emerged that Rolls’ US rival Pratt &
ly more fragments of the disc, to local police. latest reports. Whitney was suing the British firm over
“The recovery of that disk could be crucial The company, whose share price has fallen claims that the turbine fan blade used in the
to a full understanding of the nature of the nearly a tenth in two days, issued a statement Trent 900 was based on a P&W design. Rolls-
engine failure, and may have implications for last week saying it was working closely with Royce is headed by Sir John Rose.

MURDOCH’S SKY BILL SOARS

MEDIA told City A.M.: “I think a final bid will be long waiting game.”
▲

BY STEVE DINNEEN AND DAVID HELLIER
NEWS Corp may have to pay up to 870p a
share to regain control of BSkyB, with indus-
try sources claiming resolve at board level
has toughened over the last week.
This would value Sky at a staggering
£15.2bn – a full £3bn above the price News
Corp bid in June. Shares in Sky jumped more
than one per cent to 720p on Friday despite
Vince Cable ordering a preliminary investi-
gation into the deal.
Media analyst Claire Enders, of Enders
Analysis, expects a bid far in excess of 800p a
share, pending regulatory clearance. She
between 820p and 870p a share. It is almost
unthinkable Sky would sell for anything
near 700p a share. It is quite likely the
takeover would involve offering a special div-
idend to shareholders.”
A source close to Sky agreed it is likely the
firm would cost News Corp more than the
figures discussed over the summer but
denied board members are discussing valua-
tions ahead of the results of the Ofcom
investigation.
He said: “Until a bid gets regulatory clear-
ance any valuation of the firm is meaning-
less. Even the prices discussed over the
summer were speculative. This could be a
Cable has instructed media regulator
Ofcom to assess whether the takeover would
harm “media plurality”. Ofcom will file a
report before January with its recommenda-
tions, following which Cable can order an
investigation by the Competition
Commission. This would run parallel to a
European Commission investigation, both
of which would take around four months.
News Corp is determined to buy back the
61 per cent of Sky it does not already own
after floating the firm in 1994.
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 2 News
Don’t ignore the ticking time bombs
EDITOR’S LETTER
ALLISTER HEATH
THERE are always two sides to every
story. In the main, as I have long been
arguing, the global economy has
bounced back. Friday’s strong job fig-
ures in the US – payrolls are up
400,000 in the past three months –
severely embarrassed the bears and
supporters of QE2, as did most of last
week’s global economic indicators.
Growth has returned, as increasingly
are jobs, something we should all be
cheering. But four major flash points
are starting to worry me. The recovery
would almost certainly be derailed
were any of these to turn into full-
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WHAT THE OTHER PAPERS SAY THIS MORNING
DHL CHIEF PROMISES ACTION OVER
BOMB FEARS
The head of one of the three big air-
express companies has reacted to the
parcel bombs sent from Yemen and
Greece by pledging better screening
of customers and packages before
they reach airports. “What we need to
do is improve surveillance at the pick-
up point, have more aggressive
screening as items enter our systems,”
said Ken Allen, chief of DHL Express,
rival of UPS and Federal Express.
NOMURA EYES US ACQUISITION IN
BREAK FROM ORGANIC GROWTH PLAN
Nomura has been looking at a poten-
tial acquisition in the US, signalling a
rethink of its organic growth strategy
for the region, says its chief operating
officer. Japan’s largest investment
bank was keeping its eye “on the
radar screen” for a US deal, Takumi
Shibata, who has guided Nomura’s
blown crises. So they are worth watch-
ing closely.
The first is that the latest leg of the
US housing crisis is spiralling out of
control and could inflict real damage
to Wall Street, just when it seemed
that the worst was over. Having one’s
home repossessed is among the most
awful things that can happen to any-
body; but it is vital that the market be
allowed to clear as speedily as possible
and that those who cannot meet their
contracted obligations be forced to
move on. Lenders’ balance sheets need
to be cleaned up speedily; losses must
be taken and not drag on. Yet the
opposite is now happening, with the
robosigning scandal, caused by
lenders’ sloppiness, triggering mass
litigation and slowing things down.
Bank of America is a worrying case
in point: its share price is down by
over a quarter in the past six months.
The firm has been hit by lawsuits,
with a group of bondholders demand-
ing it repurchases $375bn in soured
mortgages. This kind of punitive litiga-
IDS: Work or
lose benefits
POLITICS
▲
BY STEVE DINNEEN
WORK and Pensions Secretary Iain
Duncan Smith is set to announce
plans to force the long-term unem-
ployed to sign up for compulsory
community work or lose their bene-
fits.
Private sector firms are among
those who could benefit from the
scheme, as well as charities and local
councils. The work will be mostly
comprised of manual labour such as
picking up litter and will be in four-
week blocks of 30 hours.
Duncan Smith says the scheme
will help to end the “culture of
dependency” amongst long-term
unemployed and reduce the overall
welfare bill. However, he is yet to
announce how much the scheme
could cost the government in
expansion, told the Financial Times.
BANKS SET FOR SMALL COMPANY
FAILURES
Banks are bracing themselves for a
rise in small company insolvencies
and restructurings over the next year,
reversing this year’s downward trend.
Some of the largest UK corporate
lenders, including Barclays, Lloyds
Banking Group and Royal Bank of
Scotland, see restructurings and
insolvencies among smaller compa-
nies increasing or staying at current
high levels, and are boosting their
resources to meet the need.
APAX SALE MARKS VC EXIT
Private equity group Apax Partners
has sealed its exit from the venture
capital industry by selling most of its
early-stage technology investments to
Azini Capital, a specialist at buying
unwanted stakes in start-up compa-
nies. Azini will this week announce
that it has bought interests in 16 tech-
nology companies.
tion is the last thing the financial sys-
tem needs right now. It means that
the US banking industry is facing
renewed question marks, not least
given that nobody really fully under-
stands the new regulatory framework.
The Republican seizure of the
House of Representatives ought to sug-
gest a welcome return towards free-
market principles and a rupture with
the big government interventionism
of the Bush and Obama years. But
what is now needed is a clear message
from Congress about what would hap-
pen were another top financial insti-
tution to fail. Would it be bailed out –
or would a proper, rational procedure
be put into place to wipe out share-
holders, hit bondholders and wind
the firm down, as the Dodd-Frank
financial reform bill is meant to
ensure? The problem is that the bill is
a giant muddle. Those who voted for it
didn’t even read or understand most
of it. It’s a nightmare of confusion and
potential chaos. We need clarity on
this – and fast.
administration fees.
Archbishop of Canterbury Rowan
Williams slammed the plans. He said:
“People who are struggling to find
work and struggling to find a secure
future are, I think, driven further
into a sort of downward spiral of
uncertainty, even despair, when the
pressure is on in this way.
“People are often in this starting
place not because they are wicked or
stupid or lazy but because circum-
stances have been against them. To
drive that spiral deeper does seem a
great problem.”
Work and pensions
secretary Iain Duncan
Smith says the scheme
will help end the “cul-
ture of dependency”.
DON’T EXPECT US TO PAY FOR YOUR
FAILINGS, RIVAL TELLS ROYAL MAIL
Britain’s biggest private postal compa-
ny has launched a withering assault
on Royal Mail, saying it is trying to
fatten itself up for privatisation by
demanding a 15 per cent rise in the
price of business letters. UK Mail also
claimed that Royal Mail was unfairly
portraying competitors as highway-
men robbing business from public
sector postal workers.
GALA CORAL PLACES ITS BETS ON FOR-
MER M&S DIRECTOR
The Gala Coral gambling group is
close to appointing Carl Leaver as
chief executive, The Times has learnt.
The choice of the former Marks &
Spencer director comes amid specula-
tion that the company is also poised
to name the Debenhams chief execu-
tive Rob Templeman as chairman.
Gala would not comment.
The second major risk is the possi-
bility that one or several of the weaker
Eurozone member states might fail.
Yields on Club Med bonds have rocket-
ed again; Germany and the European
Central Bank are arguing over plans to
create a resolution procedure for bust
countries. Bailouts are no longer the
answer; but global institutions would
find it hard to cope with any proper
haircut on their holdings. The legacy
of moral hazard lives on.
Then there is the prospect of a trade
war and of increased capital controls
all over the world, with the G20 sum-
mit in Seoul set to be marred by a row
over QE2 and the weak greenback.
Last but not least, flawed monetary
policies are fuelling fresh bubbles in
bonds, gold and commodities. At
some point – perhaps in a few years’
time – these will burst.
The economy is recovering strongly,
but there are numerous ticking time
bombs beneath all of us. Only a fool
would ignore them.
allister.heath@cityam.com
German finance minister Wolfgang Schäuble has criticised the US
G20 overshadowed by QE
ECONOMICS
▲
BY JULIET SAMUEL
BARACK Obama’s misery is set to con-
tinue this week as G20 nations, led by
Germany, attack the US over its fresh
round of quantitative easing (QE).
The Federal Reserve’s decision to
launch $600bn’s (£371bn) worth of QE
last Wednesday has drawn criticism for
devaluing the dollar. Brazil’s foreign
trade secretary Welber Barral said of
QE2: “They are policies that impoverish
those around them and end up
BBC AIMS TO GAIN FROM GLOBAL
IPLAYER
An international version of the iPlayer
will be launched next year after
receiving the approval of the BBC
Trust. John Smith, the chief executive
of BBC Worldwide, the BBC’s commer-
cial wing, said it would open up the
“under-exploited” market for UK
shows, such as Top Gear and Doctor
Who. The move will mean that adver-
tising could be introduced on to the
iPlayer unless BBC Worldwide decides
to charge viewers to use the service.
PALESTINIAN LEADERSHIP WRNS US
CONCESSIONS TO NEANYAHU ARE
DESTROYING TALKS
Palestinian leaders have warned that
the US role as an honest broker in
Middle East peace talks has been
severely undermined by President
Barack Obama’s concessions to Israel’s
ruling coalition.
CITYA.M. 8 NOVEMBER 2010
NEWS | IN BRIEF
BrightHouse profits rise
Rent-to-own firm BrightHouse saw its
profits rise 16 per cent in the first half.
The The 223-store firm, owned by pri-
vate equity firm Vision Capital, sells
electrical appliances and household fur-
niture to consumers with poor credit
histories who make weekly payments. It
made Ebitda of £17m in the six months
to September 30, up from £14.6m in the
same period last year, having opened 15
new stores in the period. BrightHouse
said revenue increased 16 per cent to
£109.4m, with growth across most
product lines.
Battersea tube link is viable
Major landowners and council leaders in
London's Nine Elms area say a possible
Northern Line extension to Battersea
Power Station could be funded largely
from developer contributions and would
provide an economic windfall for the
area. A study commissioned by the
Greater London Authority (GLA) had
put the total cost for new infrastructure
at £1bn of which some £900m was
directly attributable to development in
the area with the tube link accounting
for some £560m.
Picture: REUTERS
prompting retaliatory measures.” An
advisor to the Chinese central bank Xia
Bin wrote recently that the policy
would make “another crisis
inevitable”. Obama wants to forge a
deal to limit current account surpluses
to four per cent of GDP, arguing that
China’s surplus artificially depresses
the yuan and strengthens the dollar.
Meanwhile, President of the World
Bank Robert Zoellick told the Financial
Times leading economies should con-
sider readopting a modified global gold
standard to guide currency movements.
SECURITY FEARS KILL CHINESE BID IN
US
Sprint Nextel Corp. is excluding
Chinese telecommunications-equip-
ment makers Huawei Technologies
and ZTE Corp. from a contract worth
billions of dollars largely because of
national security concerns in
Washington, according to people
familiar with the matter.
CHERNIN UNVEILS ASIA PLAN
A venture led by former News Corp.
President Peter Chernin is expected
today to announce the launch of a
media start-up in Asia, a move that
shows the growing importance of the
region and its audiences to American
companies. Headquartered in Hong
Kong, the new company, CA Media,
will focus on investing in and operat-
ing emerging businesses in media,
entertainment, sports and technolo-
gy across China, India and Indonesia.
CITYA.M. 8 NOVEMBER 2010 News 3

Standard gets Diageo chief Paul

Walsh is leading
the firm’s bid for
a controlling
stake in one of

98.5 per cent

China’s biggest
spirits makers

rights backing
BANKING across Asia, Africa and the Middle
▲

Government to back Diageo China bid

BY DAVID HELLIER
STANDARD Chartered said investors
representing 98.5 per cent of its
shares signed up for its
$5.3bn(£3.3bn) rights issue, which
will boost the Asia-focused bank’s cap-
ital ahead of tougher global rules.
Standard Chartered yesterday said
it had received valid acceptances in
respect of 256.7m shares offered to
shareholders.
Bookrunners will sell the shares
not taken up, probably early today.
The offer -- the third-biggest rights
issue this year after Deutsche Bank
and UniCredit -- gave investors the
chance to buy one new share at
1,280p for every eight owned. The
bank’s London listed shares closed at
1,950p on Friday, remaining remark-
ably strong despite the discounted
rights issue.
Standard Chartered said it wanted
to continue to seize opportunities
East and tougher capital rules could
have constrained its asset growth
unless new cash was raised.
The bank denied that it wanted to
make any sizeable acquisitions with
the new money, although some in
the City are sceptical of this and
expect an acquisition to be made
within the next 12 months or so.
Standard Chartered chief executive
Peter Sands is deemed to have had an
excellent crisis, having largely kept
the bank out of the many maelstroms
that have engulfed the financial sec-
tor. He played a part in helping the
former Labour government to come
up with a plan to recapitalise the
banks.
Like Barclays and HSBC, Standard
has made noises about leaving the UK
if it feels the regulatory environment
is more hostile than in other territori-
ties. Alone amongst the major UK
banks Standard does not have a UK
retail network.
▲
FOOD AND DRINK
BY STEVE DINNEEN
THE government will throw its
weight behind Diageo chief executive
Paul Walsh this week as the drinks
giant bids for a controlling stake in
one of China’s biggest spirits-makers.
Diageo is awaiting clearance for
the bid from Chinese authorities,
with foreign takeovers usually viewed
in a critical light.
The coalition-led trade group arriv-
ing in China today includes David
Cameron, George Osborne and busi-
ness secretary Vince Cable. Diageo
hopes the official visit will act as a cata-
lyst for regulatory approval that would
allow it to establish a foothold in the our position. That said, the regulato-
Chinese drinks market. ry decision on this acquisition, and
The complex deal involves Diageo the timing of that decision, are com-
bidding for an additional four per cent pletely a matter for the Chinese
stake in Sichuan Chengdu Quanxing authorities.” BOOTS IN CHINA:P14-15
Group, which would take its holding in
the firm to 53 per cent. Quanxing is a ANALYSIS l Diageo
holding company controlling a 39.7
stake in spirits maker Sichuan Shui Jing 1,200 p 1913.00
Fang. The additional stake in Quanxing 5 Nov
would make Diageo the indirect con- 1,160
trolling shareholder of ShuiJingFang,
requiring it to make a mandatory ten- 1,120
der offer for the whole company, worth
£600m, according to Sky News. 1,080
Diageo said: “We are obviously
grateful that the government intends
to make representations in support of 9 Aug 8 Sep 7 Oct 5 Nov

@
Greece’s ruling
party in early
elections lead
▲

EUROZONE ECONOMY

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party was ahead in most regions in

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Papandreou has threatened to dis-
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yesterday.
Greece is widely seen as one of the
weakest of the Eurozone countries.
 4 News
Dollar may devalue by a third,
warns currency fund manager
▲
GLOBAL ECONOMY
BY VICTORIA BATES
ONE OF Europe’s top currency fund
managers has warned that the US
dollar could devalue by up to 30 per
cent in the next year as concerns over
the state of the country’s ailing econ-
omy continue to grip the markets.
Bob Arends, who runs the
Henderson Horizon Global Currency
Fund, predicts the dollar could fall by
between 20 and 30 per cent over the
next year to 18 months, before confi-
dence in the US economy returns.
“The US is in dire straits indeed,”
Arends said. “The private sector is still
deleveraging, financial institutions
are still deleveraging, household con-
sumption is very low and many states
are bankrupt. The key problem is,
what if QE2 doesn’t work?”
His comments come after the Fed
last week said it would pump $600bn
of fresh funds into the economy in a
second attempt at using quantitative
easing (QE) to kick start the recovery.
Arends moved to Henderson in
January 2009 from Fortis. His fund
invests in currency pairs across two
separate blocks, with 70 per cent of
the fund invested in G10 currencies
and 30 per cent in emerging markets.
Currencies – a highly transparent and
liquid asset class with low correlation
to equities, bonds and real estate –
have become more attractive in recent
years to investors keen to spread the
level of risk in their portfolio.
BP chief Bob Dudley is considering cutting dividends
Dudley could
cut dividends
at BP by half
▲
ENERGY
BY MARION DAKERS
OIL giant BP is seriously considering
halving its dividend once it resumes
payments to shareholders, according
to people close to the company and
news reports over the weekend.
New chief executive Bob Dudley has
privately briefed shareholders about
his plans to reduce the dividend, and
is plotting as much as a 50 per cent
cut, according to an interview with
one of the weekend newspapers.
The cut would save the company an
estimated £3bn a year and would con-
tribute to the firm’s money-saving
drive.
BP’s dividend of £6bn a year was the
highest in the UK before the Gulf of
Mexico disaster caused it to cease pay-
ments, as well as prompting a $30bn
(£18.5bn) asset sale to help meet clean-
up costs.
“It would be no surprise to the big
fund managers if the dividend were to
No surprise for investors
Investors in BP should not be sur-
prised by the news that chief execu-
tive Bob Dudley is planning to slash
the dividend if and when payments
are resumed next year.
The American oil veteran was
drafted in to the top job to aid the
company’s public image following
the disastrous Deepwater Horizon
explosion on 20 April, as a steady
hand following ex-chief executive
Tony Hayward’s embarrasing string
of gaffes.
Dudley has already taken bold
steps to distance the firm from the
spill, for example linking all bonus
payments solely to safety records for
the next quarter.
The numerous hints of a stripped
CITYA.M. 8 NOVEMBER 2010
Picture: Micha Theiner/City A.M.
be less than what it was before the
Gulf spill,” said one person close to the
company yesterday.
BP said in its results last week, in
which it reported a consensus-beating
$1.85bn replacement cost profit, that
the company would review its divi-
dend policy at the time of its full year
results in February 2011.
Meanwhile, an exploration deal
between BP and the Chinese National
Offshore Oil Corporation (CNOOC) is
close to completion, according to a
report by Sky News.
An agreement could be signed dur-
ing Prime Minister David Cameron’s
trip to China this week for exploration
in the South China Sea, where the two
companies already work together.
However, a person close to BP said
yesterday that chief executive Bob
Dudley would not be joining
Cameron on his first official trip to
the country as Prime Minister.
A spokesperson for BP declined to
comment.
down BP, even before Dudley’s final
plan for the firm is revealed in
February, seems to suggest that his
scheme to overhaul the company
goes beyond earning BP its hairshirt
in the eyes of the public.
BP has boasted the largest divi-
dend payment in the UK for several
years, paying out around £6bn a
year. It now also boasts the most
expensive oil spill in the world, and
a $20bn compensation pot waiting
to be claimed. It is clear the compa-
ny must emerge a smaller, more
focused one.
BOTTOMLINE
Analysis by Marion Dakers
 News
Terra Firma boss Guy Hands says he is not selling debt-laden EMI
Hands to fight
to retain EMI
▲
ENTERTAINMENT
BY MARION DAKERS
GUY Hands’ private equity group Terra
Firma will fight to keep hold of belea-
guered music label EMI, a source close
to the company said yesterday.
British tycoon Hands lost a $2bn
(£1.25bn) fraud case against his bank
Citigroup linked to his £4.2bn pur-
chase of EMI last week, and reports at
the weekend suggested he might dis-
pose of the debt-riddled company.
However, a source told City A.M. that
Hands was not ready to cut his losses.
“Terra Firma has got no intention to
sell the company,” a person close to the
company said yesterday. “It would
make no economic sense to do so.”
EMI is saddled with a £3bn debt pile,
the bulk of which is provided by
Citigroup.
Despite having a roster of interna-
tional stars such as Coldplay and Kylie
Minogue, the music label has been
hard hit by the defection of major acts
such as Paul McCartney.
The bank could seize control of the
firm if it breaches banking covenants, a
5
Central Banks dump a) Nip down the pawnbrokers
with Dad’s old sovereign ring.
their Gold reserves.
b) Remember what happened
Do you: after Gordon Brown sold
ours and buy.
Picture: GETTY
scenario that has been prevented in the
past by Hands pouring his own money
into the group.
Citi could insist on a debt-for-equity
swap for a majority stake in the firm if
Hands cannot meet repayments.
Terra Firma, which has reserved its
right to appeal against the New York
court’s ruling last week, has until
March next year to meet the next
round of debt deadlines.
Hands has said he will fight for bet-
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 6 News
Retailers set
to add pennies
for charities
▲
CHARITY
BY JULIET SAMUEL
A NEW national charity collection
scheme launches across the UK
today in a bid to counter a decline in
donations due to economic uncer-
tainty.
Pennies, an “electronic charity
box” that enables credit card users to
add a charitable donation of up to
99p to their purchases, goes live at
all Domino’s pizzas stores today and
is hoping to bring on board another
national retailer by the end of the
year.
The system asks cardholders
whether they want to round their
purchase amount to the nearest
pound by giving the extra pennies to
the retailer’s charity of choice.
Domino’s is putting 75 per cent of its
collected funds towards the UK’s
Special Olympics, with the rest going
to a mix of national charities includ-
ing Macmillan Cancer Support, the
NCPCC and the Princes Trust.
Domino’s Pizza Group boss Chris
CITYA.M. 8 NOVEMBER 2010
Microsoft, Saxo
launch trading
joint venture
FINANCIAL SERVICES
▲
SAXO Bank has teamed up with
Microsoft to launch a new trading
platform aimed at allowing individ-
ual investors the kind of access to the
markets previously enjoyed only by
professionals.
Moore says: “It’s such a simple idea MSN Trader will allow individuals
that I can’t believe it’s not already a access to trading in 11,000 stocks on
common fundraising method.” 23 exchanges globally, as well as
The concept uses technology bonds, exchange-traded funds (ETFs),
developed by software company STS futures, FX options and CFDs.
and card payment services firm It will also provide analysis and
YESpay and is designed to tap into a screening tools at the click of a but-
pool of donations that might be ton, to help investors manage risk.
made if giving were more conven- The new platform, set to be
ient and incremental. launched by the two companies on
Research by Markettiers4DC found Wednesday, will run off Saxo’s
that 63 per cent of 1,513 people sur- WebTrader trading system and will be
veyed said they were more likely to available on Microsoft’s MSN Money
give to charity if such a system were website.
available. The joint venture is aimed at capi-
If half of UK cardholders were to talising on the increased demand for
give 8p more each week, the Pennies execution-only stockbroking services
Foundation claims that this would in the wake of the financial crisis,
equate to £89m each year. when poor performance among fund
managers meant individual portfo-
FAST FACTS | PENNIES FOUNDATION lios took a heavy hit.
MSN Trader, which will be
● Allows cardholders to add a charitable dona- launched in the UK first and rolled
tion of up to 99p to their purchase by rounding out to the rest of Europe later on, is
up to the nearest pound set to undercut many of its rivals by
● Goes live nationally at Domino’s Pizza today offering an execution charge of £8 per
● Technology developed by STS and YESpay trade, just over half of the average
Domino’s chief Chris Moore welcomes micro-donations Picture: Micha Theiner/City A.M. commission among its rivals.
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CITYA.M. 8 NOVEMBER 2010 News 9

Christmas Boards may have to

shopping? hire more women
GOVERNANCE

▲
BY HARRY BANKS
Save FTSE 100 companies could
£12 *
be forced to appoint more-
women to their boards
Paco Rabanne Lady Million, 80ml. under proposals being con-
West End price £59.95,
Heathrow price £47.95
sidered by Lord Davies, the
former business minister.
Lord Davies, who has
been looking into why men
Chartered, said this week-
end he was considering a
range of options.
Davies, who will make Labour immigra-
recommendations to the
government that will be
tion frontbencher
Phil Woolas has
turned into a “business been stripped of
strategy” by February, told his seat for lying.
the Sunday Times: “There is Picture: PA
a range of options. One of
them is to bring in a direct

still hold most of business’
top positions, is considering
a quota of up to 40 per cent
in the boardrooms of FTSE
100 companies in a bid to
more than double the
Tories to fight
quota or a timeline that
leads to a quota. My view is
that to say 20 per cent of
people on a board should be
women is not enough. It has
to be 30 per cent to 40 per

Lib Dem allies

female presence.
Cranfield business school
data show 12 per cent of
directors in boardrooms are
women.
The former chairman and
chief executive of Standard
cent to make a real change.”
Earlier this year France
introduced a new bill,
which will force the coun-
try’s biggest firms to have
boards which are at least 40
per cent female.

POLITICS body who’ll stand up for them

▲
Canada considers a BY JULIET SAMUEL in parliament,” he said.
Watkins will need support
Time to leave... LIBERAL Democrats
Conservatives are squaring up
and from right-wing voters: Lib Dem
poll ratings have sunk to 9 per

tougher takeover law

for their first head-to-head elec-
toral battle since forming the
coalition government.
A by election is to be held in
the seat of Oldham East and
Saddlesworth after Labour
M&A
▲
cent from 27 per cent since just
the election.
Tory candidate Kashif Ali
came third in Oldham East,
with 26 per cent of the vote, and
his party would not say whether

immigration spokesman and it had decided who would con-

BY MARION DAKERS
CANADA is considering toughen-
ing up its foreign investment
rules in the wake of its rejection
BHP Billiton’s bid for
Saskatchewan company Potash
Corp last week.
Industry minister Tony
Clement, who said last week that
BHP Billiton’s $39bn (£24.7bn)
hostile bid for Potash did not
deliver a net benefit to the coun-
try, said in an interview yester-
day: “The prime minister and I
both feel the process worked very
well in the review of the BHP
bid… There are some points of
view out there that are worth
looking at.”
Clement said the review of the
Investment Canada Act was not a
direct result of the BHP offer, and
told the Financial Times he was
open to suggestions of how to
deal with potential “delinquent
investors” in the future.
He added that the government
would look at ways to compel for-
eign companies to provide con-
cessions such as jobs and
technology for the country.
Canada’s foreign investment
law, which was used to block a
deal for the second time in 25
years last wrrk, currently applies
to takeovers where the target
company’s assets are worth more
than C$299m (£184.7m).
UK-listed BHP Billiton has said
it would continue to work with
the government to iron out the
problems standing in the way of
a takeover.
Save. *
former Cabinet minister Phil
Woolas was last week stripped
£118 37 of the seat for lying about his
Liberal Democrat opponent
Bally, MAE-MD from the Moritz Collection. during the General Election.
West End price £795,
Heathrow price £676.63
A special court found he
falsely claimed that his rival
had sought the support of
Muslim extremists who advo-
cate violence. He won a slim
victory of 103 votes over Liberal
Democrat Elwyn Watkins, who
successfully contested the
result to get it voided.
Watkins says he is now hope-
ful of winning the seat, partly
on the back of support from
Tory voters: “I’ve been surprised
by the number of Conservative
voters who thought I did a good
job to stand up for principle
and think they’ve found some-
test the seat this time around.
There was speculation that
the Tories might formally stand
aside to help their coalition
allies, but recent comments by
senior Conservatives confirm
that if there is a pact, it will not
be official.
Tory chairman Sayeeda Warsi
confirmed the party would be
fielding a candidate and foreign
secretary William Hague said
yesterday: “We have not become
the same political party. It is a
coalition, not a merger.”
With Lib Dem poll ratings so
low, Watkins is trying to empha-
sise the local aspects of the elec-
tion. “Oldham folk have always
decided what they want to do
rather than what the national
polls decide,” he says.

Former HP boss denies new claim ...the country.

TECHNOLOGY
▲

Journal, citing people familiar

BY HARRY BANKS
A FORMER Hewlett-Packard
(HP) contractor once claimed
Mark Hurd divulged details
about HP’s plans to acquire
Electronic Data Systems before
the deal was announced in
2008, said a source familiar
with the matter. A spokesman
for Hurd denied the allegation.
Jodie Fisher, the contractor at
the centre of the controversy
that led to Hurd’s ousting as
chief executive officer of HP on
6 August, made the allegation
in the same June 24 letter in
which she accused him of sexu-
ally harassing her, the source
said.
But a spokesman for Hurd
said on Friday there was
“absolutely nothing” to Fisher’s
allegation about EDS.
The allegation was first
Former HP boss Mark Hurd denies divulging details before deal reported by the Wall Street
with the situation.
When it announced Hurd’s
resignation, HP said it found no
evidence of sexual harassment. Save. *
HP accused Hurd of filing inac-
curate expense reports to con- £771 49
ceal a “close personal Breitling Blackbird,
gents stainless steel automatic.
relationship”, although Hurd’s West End price £5,180,
representatives have disputed Heathrow price £4,408.51
that.
But Fisher’s 24 June letter has
never been made public, and
HP has never made any men-
tion of the EDS allegation.
In that letter, Fisher claimed
Hurd told her HP planned to
buy EDS before the company
announced the $13.9bn agree- That’s because Heathrow has the best of West End shopping – but
ment in May of 2008, the source always for less. Buy on the way, and you’ve Christmas wrapped up.
said. Heathrow Christmas shopping.
A spokeswoman for HP The West End for less.
declined to comment.
Gloria Allred, Fisher’s attor-
ney, said she had no comment
and said Fisher would also not *For more information on our prices, go to Heathrow.com.
Products subject to availability.
comment.
 The Capitalist
10
SOCGEN STRATEGIST PUTS ASIDE
HIS SHAME TO FLEX FOOTY MUSCLE
THERE’S been some glowering across
the desks over at SocGen, where a
divergence in the viewpoints of
European economists Albert Edwards
and Dylan Grice last week played out
via email to their amused army of
readers.
Edwards, in a note playfully enti-
tled “Shame on you, Dylan Grice”,
defended his own perma-bearish “Ice
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Age” view on equities in the face of
apparent bullishness from his col-
league – and remarked that Grice’s
view of inflationary pressures in
Japan sending the Nikkei rocketing
might, at a stretch, be useful “as a
[cheap] hedge against my central case
being wrong or, indeed, too early”.
For a day or so, there was silence
from Grice himself, until our man in
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CITYA.M. 8 NOVEMBER 2010
EDITED BY
VICTORIA BATES
GOT A STORY? EMAIL
thecapitalist@cityam.com
the spotlight sent out his own impas-
sioned defence of his forecasts – laced
with a heavy dose of sarcasm.
“I’ve been found out. All that stuff
I’ve been writing on cheap ways to
hedge tails or the search for mis-
priced intrinsic value has been a
front to dupe Albert,” Grice began.
“As someone gleefully concluded
upon reading my work on the nas-
Wayne Rooney’s dismal performance this season hasn’t stopped Dylan Grice Picture: PA
cent bubble developing in EM, I’ve screening currency pairs to weigh up
really just ‘lost the faith’ and don’t the best investments based on balanc-
have the decency to come out and say
so: shame on me!!!”
But after a meandering note which
ranged from chimpanzees and
human evolution to the mood swings
ing interest rate “carry” and risk, so
The Capitalist was intrigued to hear
him speculate over how far the dollar
could fall. Would he ever, Arends was
asked, intervene in the strategic mod-
of the market and a withering attack
on central bankers and QE, one
thing’s clear: among the strategic nig-
gles between Grice and Edwards, the
elling machine because of a personal
view on a currency’s trajectory?
“Never,” he replied, without a glim-
mer of sarcasm. “I am the machine…”
former most definitely has the upper Arnie, eat your heart out.
hand where it counts.
“I have no idea if QE will work,”
Grice wrote, “but does it really mat-
ter? I didn’t know Wayne Rooney was
going to have a duff season when I
TOUCH OF SPARKLE
Back in the City, financial printing
group Millnet hosted a party to cele-
chose him as my fantasy football cap-
tain, but the absence of a crystal ball
hasn’t stopped me reaching the sum-
mit of our office league (and a com-
fortable twelve points ahead of
brate its 15th birthday at the top of
the Millbank tower, at which the
canapés and champagne were paired,
of all things, with a ladies’ fashion
show by designer James Lakeland and
Albert)”… a dance troupe of blonde beauties
scantily clad in sequins.
“There was nothing Carry On about
MAN AND MACHINE it, it was really elegant,” one director
To Amsterdam at the weekend to hear
Henderson’s currency fund manager
tells me. “And anyway, we made sure
we got sign off from all the girls work-
Bob Arends expound at length on the ing for us beforehand, to make sure
virtues of investing in currencies, they were happy with it.” A sign of the
which he argues are an investor’s times, if ever there was one.
dream – volatile, but not so jumpy as
equities; liquid; transparent; with low
correlation to more traditional invest-
ments, and so on.
His fund has a rigorous strategy of
BILL OF THE WEEK
OFF to chef Michel Roux Jr’s new joint
at Parliament Square last week for a
seven course feast, enjoyed by two
lobbyists entertaining their clients.
Our diners tucked into the new head
chef Toby Stuart’s tasting menu, end-
ing with a pungent array of cheeses,
and conducted their political business
over a number of bottles of Gosset
Rose champagne, Pernand
Vergelesses 2007, Château de
Lamarque 2002 and a Banyuls reser-
va 2007.
That little lot was chased by a
round of Calvados brandy, Remy
Martin cognac and Samalens arma-
gnac, before they emerged, happily
sated and £1,076.63 the lighter.
CITYA.M. 8 NOVEMBER 2010 News 11

M&S to reveal
Marks and Spencer
chief executive
Marc Bolland took
the reins of the
company from Sir

new masterplan
Stuart Rose

Picture: PA

Meanwhile International operating

▲

RETAIL
BY JOHN DUNNE
MARKS & SPENCER will tomorrow
unveil its blueprint for expansion
with new chief executive Marc
Bolland at the helm.
The retail giant’s half-year results
mark the start of a new era as Bolland
shapes the company’s future – with
international expansion expected to
be high on the agenda.
Analysts and investors are expect-
ing a detailed vision as well as figures
showing that the company is going in
the right direction even as UK con-
sumers rein in their spending.
UK operating profit is forecast to be
up by 8.7 per cent to £325m while like-
for-like sales are expected to have
climbed by 4.5 per cent, with clothing
and home up by 6.5 per cent and food
2.6 per cent.
The like-for-like sales performance
has been stronger than expected
according to analysts, with advertis-
ing campaigns and new products pay-
ing off.
profit is forecast to be up by 10.6 per
cent to £73m. The company is target-
ing £250m in savings through more
efficient IT systems and Bolland will
have a keen eye on costs.
Sam Hart, retail analyst at Charles
Stanley said: “M&S comments are
expected to be relatively cautious,
with management likely to highlight
the potentially negative impact of the
forthcoming Vat increase and other
government austerity measures on
spending. It is almost inevitable that
sales momentum at M&S will slow.”
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 12 News CITYA.M. 8 NOVEMBER 2010

Irish finance minis-

ter Brian Lenihan
has been warned
he will be unable to
push through
planned pension
cuts in the public
sector.

Picture: GETTY

Irish MPs warn of

pension cut red line
plan. six lower-house members of junior
▲

EUROZONE ECONOMY
BY HARRY BANKS
IRISH government lawmakers have
warned the country’s finance min-
ister Brian Lenihan that he will fail
to push the 2011 budget through
parliament if it includes public sec-
tor pension cuts.
Lenihan is set to step up
Ireland’s austerity drive by unveil-
ing €6bn (£5.24bn) in spending
cuts and tax hikes in the toughest
budget on record on 7 December.
But with a parliamentary majority
of just three, he needs 80 of the
government’s 82 MPs to back the
Several of them said they could
not support a reported €7 cut to
the €230-a-week state pension,
mindful of the 15,000 pensioners,
dubbed the “grey army”, who
marched on parliament two years
ago when Lenihan tried to means
test their medical allowances.
“If there is any cut to the OAPs
(old age pensions), then the budget
won’t pass,” Chris Andrews, a
member of Lenihan’s Fianna Fail
Party told an Irish newspaper.
Lenihan also needs to secure the
support of two government-sup-
porting independent MPs and the
partner The Greens.
Ireland cancelled its remaining
bond auctions for 2010 in
September, hoping that a four-year
fiscal plan – due to be published
this month – and the passing of
December’s budget would reduce
its cost of borrowing.
However, borrowing costs
breached record highs in succes-
sive days last week.
“I will be talking to colleagues
about how we will vote, on the
basis of one overwhelming consid-
eration, the national interest,” Fine
Gael MP Jim O’Keefe said.

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CITYA.M. 8 NOVEMBER 2010
The Eurofighter Typhoon is favoured by the Indian Air Force
Helicopter
group mulls
stake sale
▲
TRANSPORT
BY VICTORIA BATES
BOND Aviation, one of the largest hel-
icopter operators in the UK, is
mulling the possibility of selling part
of the business to a private equity
investor in order to fund its expan-
sion.
Bond, which operates two divisions
– Bond Air Services, providing heli-
copters to the police and ambulance
emergency services, and Bond
Offshore Helicopters, which supplies
the North Sea oil and gas sector – has
hired NM Rothschild to advise it on
the sale, according to reports over the
weekend.
The company is thought to be con-
sidering selling between a third and
two thirds of the business, in a
process that could value Bond at up
to £300m. It is currently family
owned.
Bond currently has a fleet of 39 hel-
icopters and turned a profit of
£15.6m last year.
But it is thought to be interested in
a significant expansion to take advan-
tage of demand for both its emer-
gency services and transport
machines.
The original Bond family business,
founded in the 1960s, was reacquired
by Stephen and Peter Bond in 1996,
when the brothers bought back a divi-
sion from Norwegian firm Helikopter
Services Group.
Its big break came eight years later,
when the offshore unit won a lucra-
tive £120m contract from oil giant BP
to provide all of its Scottish helicopter
support operations.
The company now also provides avi-
ation transport services to other ener-
gy providers operating in the area,
including Conoco Phillips and
Maersk.
Bond also provides search and res-
cue helicopters for use in the North
Sea area.
Embarrassment grows further for Serco Selfridges profit boosted
▲
OUTSOURCING
BY STEVE DINNEEN
EMBARRASSMENT grew at govern-
ment contractor Serco last night after
it admitted two of its suppliers gave
in to its bully-boy tactics.
The firm received condemnation
after a letter demanding a rebate
from its suppliers was leaked to the
press. It was shamed into issuing a
grovelling apology and says the “rela-
Picture: GETTY
tively small” amount of money has
been returned.
It insisted that it had not attempted
to mislead the government – its
biggest client – after saying it would
not make savings by cutting costs
with suppliers. Serco also faced fresh
criticism over the weekend when it
emerged some smaller suppliers have
been liable for an extra £500 charge
in order get contracts.
Its stock has dropped eight per cent
Eurofighter leading race
▲
AVIATION
BY HARRY BANKS
THE EUROFIGHTER consortium,
made up of Britain, Germany, Spain
and Italy, is leading the race to win a
£7bn deal to supply 126 Typhoon
fighter jets to the Indian Air Force.
The deal would create 2,000 new
jobs in Britain.
The Typhoon, produced by Britain's
since the letter was leaked.
In August Serco posted a 21 per
cent increase in half-year pre-tax prof-
it and said government spending cuts
would boost sales in areas where out-
sourcers would be hired to achieve
savings.
Serco, which runs Boris Johnson’s
new cycle hire scheme, reported in
August pre-tax profits for the first
half to 30 June was £101.4m, against
£83.4m last year.
BAE Systems, Italy’s Finmeccanica
and pan-European aerospace firm
EADS, topped the Indian Air Force’s
technical assessment of bids, beating
the American F16 and F18s, Russian
MiG 35 and France’s Dassault Rafale,
according to a reports.
If the Eurofighter jet wins the deal,
India would become the consor-
tium’s third-largest customer and an
unofficial fifth partner in the project.
RETAIL
UPMARKET department store
Selfridges broke through the £100m
profit level last year as wealthy
tourists kept the tills ringing.
Figures due to be filed at
Companies House this week will
show a trading profit of £107m for
last year, which was the store’s 100th
year of trading.
The figures are up 21 per cent from
News 13
“The Indians would be one of the
biggest users of Typhoon, which
would give them a vote at the table,” a
weekend paper cited an official as say-
ing, adding that the findings have
been forwarded to India’s defence
ministry who will make a final deci-
sion in “the next few months”.
Eurofighter representatives were
yesterday unavailable for comment
ahead of an official announcement.
RBC hires
JPM Caz
dealmaker
▲
BANKING
BY VICTORIA BATES
MARK Preston, one of the City’s most
influential rainmakers, is joining
RBC Capital Markets – Royal Bank of
Canada’s investment banking arm –
as head of the UK advisory business.
RBC is this morning poised to con-
firm the appointment of Preston,
whose illustrious CV features stints at
both JP Morgan Cazenove, Merrill
Lynch and Deutsche Bank, where he
spent 18 years of his 25-year career. At
Caz, which he joined in 2006, Preston
was a member of the executive com-
mittee and a managing director.
He is best known for his work on
the two biggest ports company
takeovers the UK has ever seen, hav-
ing advised Dubai’s DP World on its
£3.4bn acquisition of P&O and
Associated British Ports on its £2.8bn
sale in 2006.
The move comes as part of a con-
certed effort on the part of RBC to
enter the top tier of the European
M&A advisory market in the UK.
The bank currently employs over
1,400 people in London, though most
work in the wealth management divi-
sion rather than at the capital mar-
kets arm. RBC has recently advised on
a number of large deals such as
Resolution’s £2.75bn acquisition of
Axa’s UK life insurance operations and
the £2.1bn acquisition of the High
Speed One rail link by the Ontario
Teachers Pension Plan and Borealis.
It has been on an aggressive hiring
drive in the City recently, snapping
up a number of well-known individu-
als. Guy Mullin-Henderson joined last
month from NM Rothschild to head
up business support services cover-
age, a new sector for the bank, while
Russell King also moved over to
become a senior adviser in the metals
and mining sector, having previously
been a board member and chief strat-
egy officer at Anglo American.
2008, on sales of £864m.
The group, which is owned by
Canadian billionaire Galen Weston,
has stores in London, Manchester and
Birmingham.
Chief executive Paul Kelly predicted
strong Christmas trading, boosted by
the store’s new £20m shoe gallery in
London and a seasonal features
including the “kidult” store which
stocks toys designed for sale to adults
rather than children.
 14 Focus on China
If
lif e
g i ve s Growth in
China on the
cards at Boots
yo u
▲
PHARMACEUTICALS
BY MARION DAKERS
HIGH STREET health and beauty
retailer Boots hopes to make head-
way in China when its executive
chairman travels to the country as
part of David Cameron’s first official
visit as Prime Minister.
Stefano Pessina has reportedly
organised talks with potential part-
ners in Beijing and Shanghai while
he is in the country, as part of a
move to accelerate growth in China.
The meetings will deal mainly with
expanding the group’s wholesale dis-
tribution but with scope for acquisi-
tions.
Alliance Boots, the retailer’s par-
ent company owned by private equi-
n s
ty house KKR since 2007, already
o
runs a joint venture in China with
lem
state-owned Guangzhou
Pharmaceutical. The venture began
trading in January 2008, and
remains the largest pharmaceutical
joint venture between a Chinese
and overseas company with rev-
enue in the last quarter of
1.1bn yuan (£102m).
In the two and a half years
since the venture was set up, it
has taken an 18 per cent mar-
ket share in Guangdong
province, with 11
warehouses supply-
ing more than
12,000 customers.
Pessina will also
be looking to take
advantage of the
Chinese authorities’
recent commitment to make medi-
cine more affordable to the public
within the next ten years.
He is one of a handful of UK busi-
ness leaders accompanying the
Prime Minister on the trip, alongside
RBS chairman Sir Philip Hampton
and Standard Chartered chief execu-
tive Peter Sands.
Business delegates will be involved
in talks tomorrow with the Chinese
premier Wen Jiabao intended to
improve trade relations between the
two countries, before taking part in
business-to-business events on
Wednesday, a Downing Street
spokesperson told City A.M. yesterday.
“The Chinese market is by all
means highly strategic for Alliance
Boots due to its size, growth and
potential,” said Pessina yesterday in
an e-mailed statement. “We already
have a presence in China and are
deeply committed to establishing
future partnerships to help develop
innovative healthcare solutions to
meet the needs of this fast-paced
market.”
A company spokesperson
declined to comment on reports
about any specific meetings
scheduled for Pessina while
he is in China.
Alliance Boots
has recently
expanded in sev-
eral markets. It
took control of
Turkish drug
wholesaler
Hedef Alliance
in July.
CITYA.M. 8 NOVEMBER 2010 Focus on China 15

CARREFOUR | EUROPE’S MARKS & SPENCER |

BIGGEST RETAILER IN CHINA
The world’s second largest retailer first entered the Chinese
market in 1995, after forming joint ventures. The firm entered
into direct deals with the local governments of a number of
provinces in order to gain approval for its stores.
The French retailer began by selling products sourced from
China, with stores operating to fit in with the local require-
ments of differing regions.
The grocer today operates 163 hypermarkets across China,
making it Europe’s biggest in the country.
Chief executive Lars Olofsson thanked emerging markets,
including China and Latin America, for strong third-quarter
performances.
Sales in China grew 16 per cent at constant exchange rates,
generating €1.22bn (£1.06bn). Sales increased more than
seven per cent like-for-like for the third quarter.
The retailer most recently opened two stores last month in Cheng
Du, Sichuan province, and Haikou, on the island of Hainan. Both
outlets are over 5,800 metres squared. Richard Partington
A CAUTIONARY TALE
M&S has been a fixture on the British high street for 126
years. However, more than a century of experience selling cus-
tard creams and underwear was lost in translation when the
firm opened a flagship branch on Shanghai’s busiest shopping
strip in 2007. The store on West Nanjing Road sat uneasily
among the more traditional Chinese fare, and was seen as too
expensive by most locals.
Chinese customs held crates of British stock at the border,
causing the shelves to lie bare for days on end. The store’s
inauspicious start was compounded four days after the open-
ing when a 24-year-old shopper fell four storeys to his death
after leaning over an escalator.
In 2009, Marks & Spencer parted company with its head of
Chinese operations Richard Sweet, who worked at the compa-
ny for 20 years and successfully oversaw expansion in India
and Russia. The retailer currently has just two shops in China,
both in Shanghai, and has all but halted plans to open 50 new
branches until the existing stores find their feet.Marion Dakers

Xxtry xtry
China’s try
booming
xtry xrtyxrtyxr-
economy makes it
atyrtxrty
place toxtry
be xtry
xr tyx tryxytr rty
xtryxrt y GETTY
Picture:

TESCO | STRONG GROWTH FOR RETAIL GIANT

The world’s third largest grocer first entered the Chinese market in 2004, when it
formed a 50:50 partnership with local retailer Ting Hsin International Group,
owner of 25 Hymall superstores.
Tesco increased its stake in the business to 90 per cent in 2006, opening it’s first
own-brand store in Beijing in 2007.
The grocer now operates 99 stores across nine provinces, employing 23,000 peo-
ple. The outlets include 87 hypermarkets, four giant ‘Lifespace’ malls and 12
‘Express’ convenience stores.
Interim results out last month show Tesco’s Asia operation generated £5.3 bn sales,
up 19 per cent on last year’s figures for the same period.
Tesco made a small overall loss in the first half of this year, though expects to be
profitable in the seasonally important second half.
The company is pressing ahead with investment plans, and says the retail environ-
ment is improving thanks to rising consumer confidence. Richard Partington

BURBERRY | “EXCITING” MARKET PROSPECTS

High-end fashion retailer Burberry first established itself in China in 1992.

The retailer bought out its Chinese franchises in a £70m deal in July to take control
of its 50 mainland stores, operating across 30 cities.
The company expects the deal to add £20m to operating profits in the coming
financial year.
Interim results showed sales in the stores grew by 25 per cent on last year for the
same period.
Burberry saw strong 18 per cent sales growth for the half-year to 30 September,
and says it plans to open 10 new stores in China.
The London-based clothing retailer is implementing a digital marketing initiative in
the region to further reinforce the brand’s image.
Chief executive Angela Ahrendts describes the Chinese market as “exciting”, and
says the company is confident that it will be able to deliver long-term growth in the
region over the coming year. Richard Partington
 16 News
UK listed companies are
failing on green policies
▲
ENVIRONMENT
BY JOHN DUNNE
UK-LISTED companies are failing to
follow guidelines on how they moni-
tor their carbon footprint, according
to Deloitte.
The business advisory firm’s survey
of 100 companies revealed that none
were adequately addressing the envi-
ronmental impact of their opera-
UK firms, such as those in London (above) are not monitoring pollution Picture: GETTY tions. Only 37 per cent provide
statistics on how much pollution
they were creating, while only one in
five had set themselves targets for
keeping emissions down.
Meanwhile only eight per cent had
invited a third party in to review the
way they tackle green issues. The
companies should be following guide-
lines set out by Defra.
Jenny Harrison, director in
Deloitte’s energy practice and carbon
reporting and assurance team, said:
Matrix splashes £5m on
stake in headhunter RDL
▲
PRIVATE EQUITY
BY JULIET SAMUEL
BUYOUT specialist Matrix Private
Equity Partners (MPEP) is to splash
£5m on an invesment in RDL
Corporation, a European recruiting
firm specialising in the pharmaceuti-
cal and IT sectors.
MPEP will be taking a minority
stake in the firm that will see one of
its partners, Iain Livingston, take over
as chairman of RDL.
The Woking and London-based
recruitment company currently
employs 70 people but will now step
up plans to expand.
MD Stuart Britton says: “We want
to establish ourselves as the niche
market leader in pharma and IT
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CITYA.M. 8 NOVEMBER 2010
“The survey shows a high degree of
variation in carbon reporting prac-
tices, and many companies, particu-
larly those outside the top tier of FTSE
companies, could do better.
“The wide variety of reporting
practices does not facilitate compari-
son between companies or industry
and reducing their carbon footprint.”
The survey showed that 57 per cent of
companies reported carbon emis-
sions in some way but not effectively.
recruitment.” Since 1992, RDL has
found staff for over 300 companies.
MPEP’s Jonathan Gregory says the
aim is to bring in business from out-
side the UK as well as domestically:
“Growth is expected from geographi-
cal expansion as RDL secures an
increasing amount of business from
both the UK and Western Europe,” he
says.
The buyout comes during a year of
energetic mergers and acquisitions
among large-cap firms, although the
private equity business has been
quiet.
Prominent private equity figures in
the industry such as Better Capital’s
Jon Moulton have suggested that
there is more bad news to come
before the situation improves.
y day
CITYA.M. 8 NOVEMBER 2010 News 17

Battle for £120m

Top brands are
signing up the
Candy Brothers’
latest development

Bluewater stake
Picture: REX

arm of the Ontario Municipal

▲
RETAIL
BY RICHARD PARTINGTON
A BATTLE for a £120m stake in the
Bluewater shopping centre is in the
offing, with some of the world’s
largest pensions and sovereign wealth
funds competing to invest.
The Government of Singapore
Investment Corporation (GIC), the
Canada Pension Plan Investment Board
(CPP), and Oxford Properties, property
Employees Retirement System (Omers),
are thought to be preparing bids with-
in the next two weeks.
Minority stakeholders Hermes Real
Estate is selling its 7.5 per cent inter-
est in the Kent shopping centre,
which it holds on behalf of the BT
pension fund.
Hermes may reconsider a sale, as
new chief executive Chris Taylor rates
Bluewater highly.

Luxury names
sign for One
Hyde Park
MP4-12C next spring, the first in the
▲

RETAIL
BY RICHARD PARTINGTON Woking-based company’s new range
of high-performance sports cars.

OPULENT brands Rolex and Chanel
are on the verge of signing a deal to
take the final two shops at One Hyde
Park, the £1bn London development
by Nick and Christian Candy.
British watchmaker Rolex is
believed to have signed for the second
retail space in the development,
LIFE
The development combines resi-
dential and retail properties, includ-
ing 86 apartments starting at around
£20m each. A penthouse in the com-
plex was sold for a record-breaking
£140m in August, making it the most
expensive residential property in
Britain.

which is slated as London’s most
expensive residential complex.
Parisian fashion house Chanel is
also on the verge of signing a lease for
the third and final spot in the luxuri-
ous development.
Seven other possible tenants were
reportedly in talks with the Candy
WITHOUT
The glamorous complex is
designed by Lord Rogers’ firm
Rogers Stirk Harbour and Partners
and features four futuristic pavil-
ions, interlinked by lobbies, lift
shafts and stairwells, and looks
out over Hyde Park’s famous
Serpentine lake.

Brothers over leasing the retail lots,
though the two brands are thought to
have secured a deal according to
reports yesterday.
The pair join high-performance car
manufacturer McLaren, which
snapped-up the first of the three
retail lots at the Knightsbridge devel-
opment for its new flagship show-
room in August.
The Formula 1 racing giant will
open at the Hyde Park site in time
for the launch of its new McLaren
LIMITS.
Private lifts in the apartments will
contain eye scanners to keep out-
siders from accessing residential
floors, and the building has been con-
structed from as many as 15 types of
stone from as far away as Egypt and
China.
The Candy brothers are also known
for their bid to redevelop the Chelsea
Barracks. The bid collapsed after the
Prince of Wales allegedly raised archi-
tectural objections with their Qatari
partners.

Connaught debt to reach

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PROPERTY
COLLAPSED property services firm
Connaught’s debts could pass £100m
after the administrator KPMG discov-
ered 50,000 additional invoices.
Bills for everything from Dairy
Crest milk to RBS bank loans have
been left unpaid, according to a report
by KPMG following Connaught’s col-
lapse in September.
Unsecured lenders exposed to the
firm’s social maintenance arm will
recover at most one pence per pound
owed, KPMG said.
“We are still going through the
invoices found recently,” a KPMG
2.2 operating system, it offers voice and video calling, a Readers Hub full
“The total amount owed could well
rise past £100m, once the tax invoices of up-to-date newspapers, magazines and eBooks, plus access to
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The company’s accounts had origi-
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Around £600,000 has been located
to pay back creditors, though KPMG is
in talks to recover and sell a £1m prop-
erty believed to be owned by www.samsung.com/uk/galaxytab
Connaught.
KPMG has contacted lawyers work-
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retail and storage building in Tooting .
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CITYA.M. 8 NOVEMBER 2010
Slow trading to hit Barclays
▲
BANKING
BY VICTORIA BATES
BARCLAYS is tomorrow expected to
reveal that investment banking
income plunged in the third quarter
as trading activity declined, though
impairments may fall due to an
improved outlook in Spain.
Barclays Capital, the investment
banking arm led by Bob Diamond,
who is due to take over from John
Varley as chief executive next year, is
expected by analysts to post revenues
of around £2.8bn, down around a
Sir Philip will
shut up to 300
retail stores
RETAIL
▲
BY STEVE DINNEEN
GOVERNMENT adviser Sir Philip
Green will close up to 300 of his retail
stores within the next three years.
Smaller stores in his empire, most
likely from brands including Burtons
and Dorothy Perkins, are expected to
close. Some of these may be consoli-
dated as Green focuses on growing
Topshop, his core brand. It is speculat-
ed anywhere between 150 and 300
stores could face the chop.
The closures – equivalent to around
15 per cent of Arcadia’s portfolio –
come as around 500 leases face
renewal. Arcadia currently spans
more than 2,400 stores across the
country.
Green has recently expanded his
business abroad, with a flagship
Topshop opening in New York last
year, opened by super model Kate
Moss.
Arcadia last year reported profits of
£214m, up 13 per cent, with revenues
rising 2.7 per cent to £1.9bn.
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informed investment decisions.
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from the markets at The World MoneyShow.
Gillian Tett Sandy Jadeja Louisa Bojesen
sixth quarter-on-quarter. That would
tie in with the bank’s peers in the UK
and US, which have been hit across
the board by a slowdown in activity.
But analysts expect impairments to
have improved compared to the first
half of the year, when the weak prop-
erty market in Spain caused bad debt
charges to rocket. Morgan Stanley
forecasts £1.3bn of impairments in
the third quarter, compared to a guid-
ance range provided by the bank of
between £6.5bn and £6.9bn for the
full year.
Compensation is likely to again
Green last month identified mil-
lions of pounds being squandered
through poor management of the
government’s property portfolio.
Prime Minister David Cameron,
who commissioned the report, said it
“made for pretty chilling reading”.
Green’s appointment raised eye-
brows because of his tax arrange-
ments. Arcadia’s biggest shareholder
is Taveta Investments, a UK-incorpo-
rated company that is controlled by
Green’s wife, a Monaco resident. In
2005, his family saved a significant
amount of tax relating to the pay-
ment of a £1.14bn dividend.
Green finished ninth in this year’s
Sunday Times Rich List with the retail
guru’s wealth rising £275m to £4.1bn.
Arcadia declined to comment.
Sir Philip Green last
month identified millions
of pounds worth of sav-
ings on the government
property portfolio
Bill Bonner Russ Mould Roger Bootle
News 19
prove a thorny issue for Barclays,
which is expected to set aside around
£1.5bn in a compensation pot for its
investment bankers in the quarter
despite the relatively weaker perform-
ance.
The payout – which does not
become formalised until the end-of-
year results in February – comes after
Barclays decided to double the Bob Diamond is
salaries of some of its more senior Barclays’ next
investment bankers, in order to chief executive
retain talent by compensating for the Picture: Micha
regulatory restrictions placed on dis- Theiner/CITY A.M.
cretionary bonuses.
E.ON may sell
WARNER BROS FALLS FOR POTTER MAGIC
UK electricity
distributor
ENERGY
▲
GERMAN energy giant E.ON is under-
stood to be in advanced talks to sell
Britain’s second-largest electricity dis-
tribution network to a group of for-
eign investors for up to £3.5bn.
A consortium comprising the Abu
Dhabi Investment Authority, Canada
Pension Plan and Australian bank
Macquarie is thought to have
approached E.ON about the business,
made up of the distribution arms of
the former Midlands Electricity and
East Midlands Electricity companies
now known as Central Networks (CN).
The consortium is believed to have
approached the German utility
recently and talks progressed quickly.
German news magazine Der
Spiegel reported during the weekend
that E.ON was considering the sale of
several assets to make up for falling
earnings.
A spokesman for E.ON refused to
comment. “We’re not saying any-
thing about this, I’m afraid,” he said.
Central Networks supplies electrici-
ty through local power lines to about
4.9m homes and businesses in an
area stretching from the Welsh bor-
Warner Bros is set to cast a £100m spell on the Leavesdon Studios near Watford, when it ders in the west to the Lincolnshire
buys and redevelops the home of the Harry Potter film franchise. The Hollywood giant is coast in the east and from the Peak
this week set to unveil plans for adding two new sound stages to house a Harry Potter District in Derbyshire down to the
set tour, plus a revamp of the site’s visual-effects and prosthetics departments. The acqui- outskirts of Bristol. E.on merged ME
sition will sustain 1,500 jobs and create 300 more. and EME to form CN in 2004.
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 20 News
A tip for regulators: no risk means no gain
marking the end of my tenure as Lord
Mayor, I am glad to see the City has
taken major strides towards address-
ing the lessons of the financial crisis.
A keenly contested general elec-
tion, relatively high unemployment
and a patchy global economic recov-
ery have made for a difficult political
MONDAY COMMENT environment over the past year.
NICK ANSTEE The industry has nonetheless
worked in close partnership with pol-
icymakers on macro-prudential
T
his time last year, in my first col- reform to examine how we can serve
umn for City A.M., I cautioned our clients – and ultimately the
that efforts to restore public nation – better.
confidence in parts of the finan- Our task, together with regulators,
cial services industry would be a is to be the best at managing the risks
marathon, not a sprint. we take. In this light, it is positive that
Now that I approach the finish line British banks are already well placed
Royal Mail to
cut supplier
costs by 20pc
▲
POSTAL SERVICES
Royal Mail included looking at pay-
BY RICHARD PARTINGTON ment terms to suppliers, the sale of
ROYAL MAIL has told its suppliers to some assets and the sale and lease-
strike new deals as it looks to cut 20 back of part of its property portfolio.
per cent costs from each contract. Royal Mail last week revealed half-
The top 150 suppliers to the compa- year group profits had fallen to £52m,
ny were told in a meeting in London down from £184m last year, with the
ten days ago the operator was looking letter business losing £66m.
to “radically reduce costs” ahead of The cost-cutting comes as Royal
plans to privatise the service, accord- Mail faces a potential cash crisis,
ing to reports yesterday. caused in part by the £800m a year
Under the auspices of meeting new the company pays into its pension
chief executive Moya Green for the plan, which has a £10bn deficit.
first time, the companies heard in a One anonymous supplier told a
presentation that contracts would Sunday newspaper they were “furi-
need to be renegotiated within 30 ous” following the demand for tough
days, with the new deals in place by cuts. Royal Mail would not confirm
10 December. the proposals, though told City A.M.
Group procurement director Kath last night: “Royal Mail is striving to
Harmeston told contractors: “Royal Mail get the best value for money through-
is in transformation and needs cash. A out the business and we are asking
radical cost-out programme is required our suppliers for their ideas and pro-
to support the transformation.” posals on how we might achieve this
The presentation set out a scheme — but we are absolutely not imposing
to “radically reduce costs and our a blanket cut on suppliers’ bills.”
spend baseline by the end of the finan- Government outsourcer Serco last
cial year – a 20 per cent minimum tar- week withdrew a letter asking for a
get reduction per key supplier”. 2.5 per cent cash rebate from suppli-
Cost-cutting plans presented by ers after a political backlash.
CITY MOVES | WHO’S SWITCHING JOBS
Ruffer
The investment management house has
appointed Sir David Clementi, pictured, and
Robin Hindle Fisher as non-executive directors.
Clementi, a former Bank of England deputy
governor and chairman of Prudential, will be
Ruffer’s new deputy chairman. He is also cur-
rently chairman of King’s Cross Central.
Fisher has spent over 25 years in institution-
al fund management and was formerly chief
executive of Phillips & Drew Fund Management.
Freshfields Bruckhaus Deringer joint sector group leader of its global
The law firm has appointed London- financial institutions group.
based disputes partner Andrew Hart as Hart, who succeeds recently-elected
To appear in CITYMOVES please email your career
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
updates and pictures to citymoves@cityam.com
to meet their Basel III capital require-
ments.
Regulation and oversight are part
of the solution. What the City needs
in this area is certainty, clarity and
consistency. That is good for business
and the country. It is worth remem-
bering, however, that we are actually
capitalists. And this means taking
risks, because no risk means no gain.
A typical response to previous
crises has been to increase the num-
ber of regulators and reams of regula-
tions. This approach has not worked
in the past and nor will it this time.
Law and regulation in themselves
cannot drive the actions of financial
institutions and their staff. That can
only come from the culture of indi-
BEST OF THE BROKERS
ANALYSIS l Royal Bank of Scotland
51
p 45.00
49 5 Nov
47
45
43
9 Aug 27 Aug 17 Sep 7 Oct 27 Oct
ROYAL BANK OF SCOTLAND
Standard & Poor’s has upgraded the State-
backed bank to “buy” from “hold”, but has
trimmed its 12 month target price by 1p to
57p. The broker notes that RBS’s results
last week confirmed the bank is on track to
deliver profit next year, and expects a sig-
nificant uplift in profitability over the next
two years.
Amazon buying into nappy business
▲
TECHNOLOGY
AMAZON.COM is expected to buy the
parent company of Diapers.com for
$540m (£333.5m) to $545m, accord-
ing to media reports.
The deal is set to be announced
today, according to a report on
Fortune magazine’s website over the
weekend.
The acquisition comes as Amazon
has stepped up its efforts to boost its
Edited by Victoria Bates
senior partner Will Lawes in the role,
has worked for Freshfield since 1996
and has been a partner for 13 years. He
previously headed up the financial insti-
tutions disputes group and helped set
up the US contentious regulatory and
litigation practice.
Deloitte
The business advisory firm has hired
two new senior members to its tax
management consulting group.
Fiona Jones joins as an associate
partner from BP, where she formerly
led the oil giant’s global tax technology
network. Josef Macdonald moves over
as a director from Ernst & Young,
vidual organisations.
This has been a recurring theme
during my time in office. I started
this year with an event on ethical
investing, took part in an event on
corporate governance and ethics in
the Square Mile, and then hosted a
lecture by Stephen Green.
And last month, City leaders came
together at Mansion House for a
debate on how institutions can pro-
mote strong internal cultures and
engage with the wider community as
part of an industry-wide effort to
rebuild trust. We must be sensitive to
these issues, and others like bonuses.
But the City operates in an increas-
ingly competitive international mar-
ketplace and policymakers should
ANALYSIS l Dechra
560 p 539.00
5 Nov
520
480
440
400
9 Aug 27 Aug 17 Sep 7 Oct 27 Oct
DECHRA
Brewin Dolphin rates the veterinary phar-
maceutical group a “hold” with a 12 month
target price of 500p. The broker has
upgraded its revenue forecasts by five per
cent this year and nine per cent next year
on the back of the firm’s $42m acquisition
of DermaPet in October, though it believes
sales in the US are likely to miss targets.
To appear in Best of the Brokers email your research to notes@cityam.com
babycare products business.
In September, Amazon launched
its Amazon Mom program, offering
perks like three-months of free two-
day shipping. Amazon also offered a
30 per cent discount on diapers and
wipes to consumers who signed up
for its Subscribe & Save programme
for consumable items.
Diapers.com, which launched in
2005, is owned by New Jersey-based
Quidsi, which also owns Soap.com,
in association with
where he was the firm’s global extensi-
ble business reporting language leader.
Vedanta Resources
The metals and mining giant has
appointed Antony Henshaw as chief
sustainability officer.
Henshaw was previously corporate
vice president of sustainability at
cement maker Cemex in South Africa.
Genesis
The housing group has appointed a new
non-executive chairman in the form of
Charles Gurassa, currently also chair-
man of Phones 4 U and Lovefilm.
Gurassa is a well-known figure in the
CITYA.M. 8 NOVEMBER 2010
look to secure consensus with major
G20 rivals rather than act in isolation.
My overseas business visits as Lord
Mayor – 35 cities, in 21 countries –
have shown me that the City contin-
ues to be held in high esteem globally.
We cannot, however, afford to be
complacent. The danger is that rapid-
ly developing markets in Asia and
Latin America could edge ahead of us
if we get reform wrong.So as I prepare
to pass on the baton to the 683rd
holder of this great office, Alderman
Michael Bear, we must continue
sprinting towards the line in order to
defend the City’s status as a national
and international asset.
Nick Anstee is Lord Mayor of the City of
London
ANALYSIS l Unilever
1,950
p
1,913.00
5 Nov
1,850
1,750
1,650
9 Aug 27 Aug 17 Sep 7 Oct 27 Oct
UNILEVER
Evolution Securities rates the utility a
“buy” with an upgraded target price of
£21. The broker has upgraded its 2010
earnings before interest and tax by 0.15
per cent, resulting in a 1.4 per cent lift in
earnings per share to €1.40. It adds that
reassuring results for the third quarter
could be a catalyst for re-rating the stock.
and is backed by venture capital firms
Accel Partners, Bessemer Venture
Partners and New Enterprise
Associates, among others.
Amazon and Quidsi did not return
emails for comment.
Amazon, the world’s largest online
retailer, has been expanding product
lines as it tries to get more of its shop-
pers to sign up for subscription pro-
grams, which the company says
fosters loyalty to the site.
business world, having also previously
held roles as chairman of Virgin Mobile,
which he steered through its 2004
flotation, and chief executive of the
Thomson travel group.
Dunedin
David Williams has joined the mid-mar-
ket private equity house as a director n
the London office, responsible for
sourcing and executing new invest-
ments for its £250m buyout fund.
Williams was previously a senior
partner at Graphite Capital between
2005 and 2010, and managing director
of Sand Aire Private Equity between
1997 and 2005.
+44 (0)20 7557 7245
morganmckinley.com
CITYA.M. 8 NOVEMBER 2010 News 21

China offers
Vue on verge to give help
of tying up a to Portugal
£450m sale

▲
BANKING
BY HARRY BANKS
PRESIDENT Hu Jintao said yesterday
China will back Portugal’s efforts to
deal with fallout from the world
LEISURE on Odeon and UCI, owned by Terra financial crisis, but stopped short of
▲

BY VICTORIA BATES
CINEMA chain Vue Entertainment was
last night on the brink of being sold to
private equity firm Doughty Hanson
for around £450m.
Although a finalised deal has yet to
be signed off by both parties, it is
understood that Doughty Hanson is
now the only bidder left in the race,
after Vue’s management team
stopped their discussions with rival
private equity firm BC Partners and
Canadian pension fund OMERS.
Vue is majority owned by its man-
agement, led by chief executive Tim
Richards, while minority stakes are
held by both private equity firm
Coller Capital and hedge fund Och-
Ziff.
The sale is set to net Richards, who
founded Vue 12 years ago, a windfall
of almost £25m.
Doughty Hanson has proposed that
Vue’s management reinvest half of
the profits from the sale back into the
business and that they stay on after-
wards in order to lead an aggressive
expansion of the business in coming
years.
The chain is expected to table a
transformational acquisition proposi-
tion in the not-too-distant future,
with speculation over a takeover cen-
tring on its listed rival Cineworld and
Firma boss Guy Hands.
Sources close to the talks said that
the top members of the two teams
remained locked behind closed doors
yesterday, attempting to thrash out
the final nuances of the deal. A final
announcement is anticipated by the
end of the week at the very latest, bar-
ring any last-minute hurdles.
Vue operates 68 cinemas across the
country, including Europe’s largest
purpose-built all-digital cinema at the
Westfield shopping centre in West
London, which has 14 screens.
Richards had held senior roles at
Hollywood movie studios Warner
Bros, Paramount and UCI before leav-
ing to set up Vue with business part-
ner Alan McNair, now chief financial
officer and deputy chief executive of
the group.
The pair first worked out of their
own homes and garages, before set-
ting up office above a Greek restau-
rant in Chiswick and growing the
group to operate six cinemas by 2001.
They then pulled off an audacious
£221m acquisition of Warner Village
Cinemas in 2003, catapulting the
company to become the third largest
cinema operator in the UK.
Richards is also a board member of
the British Academy of Film and
Television Arts (BAFTA) council and
the British Screen Advisory Council.
Vue was founded by chief executive Tim Richards in 1998 Picture: REX
NIGEL DOUGHTY in the area.
Forest fans are broadly supportive
CHAIRMAN, of their chairman – who, though not a
DOUGHTY HANSON tycoon on the same scale as a Roman
Abramovich, has pumped large
amounts of his own money into the
club to save it from bankruptcy and
brought it up to the middle of the
Championship.
DOUGHTY Hanson’s chairman Nigel Doughty has also hit the headlines
Doughty co-founded the firm along in the past for being one of the Labour
with Richard Hanson in 1984 and has party’s most generous donors. He gave
since built it up to become one of the £1m to the party in the second quar-
biggest private equity and fund man- ter of this year, in the run-up to the
agement firms in Europe. general election.
But the financier is better known in He is a committed philanthropist,
circles outside the City for his high- having set up the Doughty Hanson
profile role as chairman of Nottingham Charitable Foundation, which fights
Forest football club. Doughty succeed- poverty, disability and homelessness
ed Eric Barnes at the helm of the club and promotes healthcare and educa-
in April 2002 and is a lifelong Forest tion, and his own Doughty Family
fan, having been born and brought up Foundation, set up with wife Lucy.
promising to buy Portuguese bonds
as the debt-ridden country had
hoped.
“We are willing to take concrete
measures to help Portugal cope with
the global financial crisis,” he said
after meeting Prime Minister Jose
Socrates, without elaborating.
Last month, Premier Wen Jiabao
promised to buy Greek government
bonds when Athens returns to mar-
kets, in a show of support for the
country whose debt burden pushed
the Eurozone into crisis and required
an international bailout.
Portugal, which unlike Greece still
sells bonds on financial markets
although at high cost, had hoped for
a similar promise as it attempts to
soothe investors about its high budg-
et deficit and ballooning debt.
Deputy Foreign Minister Fu Ying,
who is part of the Chinese delegation
visiting Europe, said that Beijing
remained committed to investing in
European bonds and was willing to
lend Portugal a helping hand.
The Chinese government faces crit-
icism at home over losses which state
entities incurred during the global
crisis. But using part of its huge for-
eign currency reserves to support
troubled European countries would
help to deflect international criti-
cism of its trade policies.

Hurlingham plans to raise £8m in

AIM listing of gun maker Manroy
DEFENCE and heavy armoured vehicles, patrol relatively few rivals.“We are very
▲

BY PHILIP WALLER
A STOCK-MARKET listed group is
buying the UK’s last remaining inde-
pendent machine gun maker and
raising up to £8m on London’s jun-
ior stock market to expand the busi-
ness.
Hurlingham is buying Manroy, an
East Sussex-based manufacturer of
machine guns, gun mounts and
other related products that has sup-
plied Britain’s Ministry of Defence
(MoD) for the last 26 years.
Manroy’s flagship product is the
heavy machine gun (HMG), which
can be fitted to many types of light
boats, helicopters and aircraft and
has been used in Iraq and
Afghanistan.
Hurlingham plans to raise the
cash by issuing new shares in the
enlarged company, which will be
renamed Manroy Group and listed
on AIM.
It hopes to use the money to
increase the number of products
that the group sells and to expand it
into new regions. The group’s advis-
er is Arbuthnot. Hurlingham’s
chairman Andrew Blurton said
Manroy was an established, prof-
itable and cash-generative business
with good expansion prospects and
pleased to have identified this
opportunity,” he said.
Manroy’s chief executive Glyn
Bottomley said the firm had signifi-
cant overseas customers and would
seek acquisitions.
“The admission to trading on
AIM, along with our existing rela-
tionship with the MoD, will help the
enlarged group to enter additional
export markets.”
Manroy also has redesigned and
resumed production of the general-
purpose machine gun. It has won its
first order for parts. In 2008/9,
Manroy made a pre-tax profit of
£2.1m.

NEWS | IN BRIEF
Megamind boosts US cinema
“Megamind” led the US box office to
its best weekend in more than three
months yesterday.
Observers had predicted the 3D car-
toon about a hapless supervillain
would earn more than $50m during
its first three days of release across
the US and Canada.
But the studio's March release "How
to Train a Dragon" also underper-
formed initially before becoming a
worldwide hit. Also new was the
comedy “Due Date”
Saudi Airlines buys Boeings
Saudi Arabian Airlines ordered 12
Boeing 777-300 “Extended Range”
(ER) planes for $3.3bn (£2.04bn), with
an option for 10 more 777s, the US
firm Boeing (BA.N) said yesterday.
The national carrier, which is in the
process of being privatised, also
ordered eight Boeing 787 dreamliners
for its long- haul fleet but did not give
a price for that order. “Our decision to
order the 777-300 ER is part of a long-
term growth strategy," said the air-
line’s director Khaled al-Mulhim.
Guardian set to shrink
The Guardian Media Group (GMG) is
set to get smaller, according to new
plans drawn up by its new chief execu-
tive Andrew Miller. The group, which
owns The Guardian and The Observer,
plans to focus on its newspaper arm,
hiving off all its other assets into an
investment portfolio, from where they
could be sold over time. The group’s
other assets include Trader Media
Group, the owner of Auto Trader, and
Emap, which it co-owns with private
equity group Apax.
 22 News
BoE Inflation
Report set to
widen debate
▲
UK ECONOMY
BY JESSICA MEAD
THE Bank of England’s quarterly
Inflation Report will be scrutinised par-
ticularly closely by the market for clues
to the future direction of British mone-
tary policy when it is published on
Wednesday.
The three-way split among the
Monetary Policy Committee (MPC)
members has created growing uncer-
tainty about the timing and future
direction of changes to interest rates
and quantitative easing. There is still a
widespread expectation that a further
loosening in UK monetary policy is
likely, if not imminent.
IHS Global Insight’s Howard Archer
expects the Bank of England to raise
both its near-term growth and infla-
tion forecasts but to keep its forecasts
further out unchanged.
City economists also expect the cen-
tral bank to leave the door open for fur-
ther quantitative easing. “I expect the
Inflation Report to leave the door open
CITYA.M. 8 NOVEMBER 2010
PICTURE: Micha Theiner
to renewed quantitative easing should
growth falter markedly over the com-
ing months,” added Archer.
However, it is unlikely that the Bank
will signal that further QE will be intro-
duced in the very near-term, with
many predicting February as a likely
WHAT WILL THIS WEEK’S INFLATION REPORT SIGNIFY? Interviews by Jessica Mead
month. “The MPC is not in a position to
signal next week that a QE extension is
imminent, simply because it is not,”
PETER DIXON | MICHAEL SAUNDERS |
COMMERZBANK CITIGROUP
“ “
explains Barclays Capital’s Simon
Hayes.
“The November Inflation Report is If the Bank’s growth forecasts Now that the policy rate is
expected to bear a close resemblance to are to be believed, the MPC ought logi- anchored close to zero, the release of
that in August, perhaps indicating a
small bias to loosen but with the main cally to be more disposed towards the the Inflation Report has become a key
” ”
stress being on the heightened uncer- views of Andrew Sentance than Adam guide to the MPC’s future intentions on
tainty surrounding the outlook,” Hayes Posen, ie, raise interest rates. interest rates and QE.
added. The result could be that the
next move in monetary policy could be
in either direction. PHILIP SHAW | INVESTEC
“
The Inflation Report may also give
some clues as to whether one or more
of the seven committee members that It seems likely that the Bank of England will signal that it remains relatively relaxed over
”
has sat on the fence until now decided
to join either Andrew Sentance or medium-term inflation prospects, although a touch more confident about the economic outlook.
Adam Posen this month. Overall we judge that the MPC remains in wait and see mode.
CITYA.M. 8 NOVEMBER 2010 News 23

Rest of the world itches for a fight with US

describes what the rest of the world
fears it will suffer as a result of QE2.
In recent days, commentators have
argued that gridlock in Congress will
be good for business. It will give Wall
Street and Main Street clarity that
nothing will get done. And even if the
political game plan is for Obama to
MAITHREYI SEETHARAMAN tack more to the centre, a general
inability to pass new laws is
CNBC COMMENT inevitable.
In the circus that is the US capital,
water with economists divided about
the benefits of QE2.
On Saturday, Fed Chairman Ben
Bernanke said his central bank’s duty
is to focus on the US rather than over-
seas economies when trying to spur
the recovery. “The first goal that we
have is to meet our mandate to get
price stability and maximum employ-
ment in the United States,” Bernanke
said. His QE2 programme won’t push
US inflation to “super ordinary” lev-
explain why many around the world
are now itching for a fight with the
US. They fear, with good reason, that
QE2 will help fuel the dollar’s fall
against the yen, euro and almost all
the currencies in the emerging world,
making it harder for those nations to
exports goods. All of which is adding
to fears of a bitter currency war.
The Chinese vice foreign minister
has said the US owes the world an
“explanation on their decision on
hot money flows looking for yield
unavailable in the US, creating asset
bubbles. That is triggering capital
controls by countries trying to fend
off a weak dollar and a desperate
scramble by central banks to counter
the Fed’s inward looking moves.
Germany’s finance minister
Wolfgang Schäuble’s derisive descrip-
tion of QE2 probably best describes
the mood around the world. He
quipped that QE2 won’t solve

G
et ready for a “Shellacking.”
President Barack Obama’s one
word description of the drub-
bing the Democrats suffered in
last week’s mid-terms equally well
one thing is clear – the Fed has been
left holding the baby. But the argu-
ment that $600bn (£370.6bn),
pumped into the economy can allevi-
ate US unemployment holds little
els, he claimed. What it will do,
according to Bernanke, is make loans
cheaper and get Americans to spend
more, thereby creating more jobs.
It is an argument that helps to
quantitative easing”. The Brazilian
central bank president has been
equally scathing, saying QE2 is creat-
ing “risks for everyone”.
Countries like Brazil are now facing
America’s problems, but it will create
extra problems for the world. It’s
time to start worrying.
Maithreyi Seetharaman is a CNBC anchor
http://europe.cnbc.com

Retail therapy
addiction will
hold up in 2011
predicted a rise due to consumers
▲

ECONOMICS
BY JULIET SAMUEL
BRITISH consumers are to continue
spending unfazed in 2011, despite gov-
ernment cutbacks and higher taxes,
according to research by auditing firm
BDO.
The firm’s Retail Forecasts 2011
report calls the UK consumer a “curi-
ous beast” unable to kick an “addic-
tion to shopping” despite speculation
about a double dip recession.
The report uses a monthly high
street sales tracker that has recorded a
steady rise in consumer spending this
year, leading BDO to project overall
sales growth of three per cent over the
Christmas period. Consumer spending
accounts for 65 per cent of the UK
economy.
BDO’s tracker, which collects data
from 70 retailers with 10,000 stores,
showed a 4.1 per cent rise in sales dur-
ing October. This could suggest a
bounceback in consumer demand
after government statistics showed a
0.2 per cent drop in retail sales during
the third quarter of this year.
But it is not clear whether the rally
in demand will last. Many analysts had
stocking up before Vat rises to 20 per
cent in January next year and then a
sharp fall as they reign back in 2011.
BDO’s report, however, says that
there will be a “slowdown but no melt-
down”, citing the likelihood of low
interest rates late into next year and
lower-than-expected unemployment
figures as supportive of household
spending.
In addition, it says: “Retailers have
had plenty of time to manage their
product mix and price architecture to
offset the impeding VAT increase.”
The report is also optimistic about
the UK retail industry as a whole, pre-
dicting growth in exports.
BDO head of retail Don Williams
says: “UK retailers are very good at
what they do. We are a nation of shop-
keepers catering for a generation of
shoppers. As brands get more global,
UK retailers are ideally placed to start
exporting their skills.”
Moreover, with firms sitting on
improved balance sheets and unspent
capital from spending cutbacks dur-
ing the recession, BDO says to expect
possible consolidation as larger firms
snap up a “megadeal” by buying rivals.

Bids are in for Carrefour’s

southeast Asian assets
its shops in Malaysia, Singapore and
▲

RETAILING
TESCO and Singapore’s Dairy Farm
are among those to submit second-
round bids for French retailer
Carrefour's Southeast Asian assets, it
emerged yesterday.
Carrefour, the world’s second
largest retailer, had set a November 5
deadline for second-round bids in an
auction which is expected to fetch
$1bn (£620m).
The auction has generated strong
interest, mostly from trader buyers,
according to reports.
The supermarket operator is selling
Thailand to focus on markets where it
holds leading positions.
Dairy Farm, which is backed by
Jardine Mathseon, is interested only
in Malaysian and Singapore assets,
while Tesco was pursuing most of the
assets up for grabs, reports suggest.
The auction is run in two separate
processes, one for Thai assets and the
other for Malaysian and Singapore
assets. One source said that French
retailer Casino Group, Thai retailer
Berli Jucker and Thai Central Group
are in the fray for Carrefour’s
Thailand assets.
 24 Business Features WORDS BY MARC SIDWELL CITYA.M. 8 NOVEMBER 2010

Silicon Valley
(left), Silicon
Roundabout,
north of the
City (top
right) and the
proposed
Olympic Park
in the Lee
Valley
(bottom
right)

Silicon Valley was not built in a day

Cameron’s plans for vation, with ideas feeding off one anoth-
er, as Steven Johnson shows in his new
David Cameron has a
dream, but innovators
but by that authentic community and its
accompanying buzz, the sort of “street
POLICY BREAKDOWN |
East London miss book, Where Good Ideas Come From. And
government does have an important role
may not follow him to
the Lee Valley
level culture” identified by US academic
Richard Florida. Cameron hopes to bring EAST LONDON TECH CITY
the importance of a to play in creating the sort of attractive
policy environment in which such entre-
all this to the Lee Valley, yet the unique
atmosphere will not easily be replicated
preneurial clusters form. We asked three with any speed in the new Olympic Park • Reform copyright laws to include “fair use”
creative community experts to analyse some of the new pro- miles further out of town. clauses, so that entrepreneurs may
posals below, which seem to be mostly But Cameron’s decision is driven as use content more easily.
that grows by itself positive. much by short-term, politicised motives • Create an entrepreneur visa that would
And yet much of what makes such clus- as good sense. Faced with the looming bypass any migrant cap. To qualify, the
ters thrive is cultural and out of govern- need to build a legacy for the 2012 entrepreneur needs financial backing.
ment’s reach. The weak ties stressed by Olympics, it is not surprising he passed • Make government IT procurement more

D
AVID Cameron has announced his
vision for an “East London tech city
– a hub that stretches from
Shoreditch and Old Street to the
Olympic Park”. Cisco is signed up to
establish a supporting innovation centre,
and McKinsey and Qualcomm are prom-
ising advice on strategy and intellectual
property issues, but can a package of new
policies really build a rival to Silicon
Valley in the Lee Valley?
Creative clusters certainly drive inno-
sociologist Mark Granovetter in a classic over “Silicon Fen” in Cambridge, open to small businesses.
1973 paper develop in a grown com- which already has links with a • Attract major tech firms to attract even
munity that develops trust and world-class university, giants like
identity over time. The success of ARM, Autonomy and CSR and hun- more talent. Google will move a UK office
the so-called Silicon Roundabout dreds of start-ups, in favour of there, and Intel will build a research lab
area around Old Street, with 700 dragging the magic of Silicon nearby.
per cent growth in tech start-ups Roundabout further east. But • Connect Silicon Roundabout to the Olympic
based there in just three years, trying to transplant this suc- Park, where Cisco will establish an innova-
comes precisely from its cess story away from its cul- tion centre. Thomas Hamed
unplanned, organic nature. The tural niche runs the risk of
creative class are attracted not killing everything that
only by the work opportunities makes it special.

POLICY ANALYSIS | ENTREPRENEUR VISAS; MORE OPEN GOVERNMENT IT PROCUREMENT; AND INTELLECTUAL PROPERTY REFORM
The Tier 1 (Entrepreneur)
visa already allows anyone
with access to £200,000
in capital to come to the
UK to start a business. For
the new entrepreneur visa
it is proposed the business
be vetted and capital pro-
vided by a leading investor.
This may discourage less-
connected yet equally tal-
ented entrepreneurs. The
devil will be in the detail:
Anne Morris
we look forward to seeing
Principal, how the government can
Davidson Morris Solicitors attract real talent without
turning the immigration
process into an episode of
Dragons’ Den.
IN FOCUS |
SILICON ROUNDABOUT
It is great the government Intellectual property pro-
is opening up its procure- tection has been a corner-
ment process to smaller stone of US growth in Silicon Roundabout is centred on Old Street
and newer businesses who Boston, Nashville and roundabout, just north of the City. While
focus on open source Silicon Valley. Each spe- major tech companies are now moving in,
development. Large com- cialised in arts and tech- the area hosts almost 100 start-ups. The
panies shouldn’t be guar- nology-intensive work but social music site Last.FM, acquired by CBS in
anteed big IT contracts by became powerhouses as 2007 for £140m, began here.
back room deals. But in their policy environments Silicon Roundabout sits between the City,
many cases, IT contracts drew investors, which
should be outsourced alto- appealed to more start-
Hackney and Shoreditch. The area benefits
gether. SMEs are better ups. The virtuous cycle of from the City’s financial services, transit
equipped to provide solu- technology, innovation and links, and excellent telecommunications.
Dominique Lazanski Alec van Gelder Unlike most tech centres, the area is not tied
tions in a cheaper and growth can be replicated
Technology Policy more innovative way than Project Director, in London’s East End or to a university. Boosters also hope the area’s
Analyst, Taxpayers’ the government – whether International Policy anywhere else. That means reputation for artistic creativity attracts
Alliance that be online tax pay- Network getting the policy environ- investors, much like quality-of-life attracted
ments or digital health ment right and letting the people to Silicon Valley. Thomas Hamed
record management. entrepreneurs do the rest.
 Investment | Spread Betting
25

ANALYSIS l The S&P GCSI Soft Commodities Index for the last six months

There’s still no such 4,500

4,000

thing as a free lunch 3,500

3,000

Source: Bloomberg
A tight market is driving food prices back up to record Jun Jul Aug Sep Oct Nov

levels, but spread betters can profit, says Daniel Knowles

Champion Trader - Week 1

M
ILTON Friedman said that
there is no such thing as a
free lunch, but even he
might have been surprised
by the cost of a meal today. World food
prices have soared back up to levels
last seen in the crisis of 2007-2008,
leading some to warn of renewed food
riots. Russia recently extended its
export ban on grain, while in July, one
hedge fund even took physical deliv-
ery of £650m of cocoa. Spread betters
should take note.
Recently, a combination of restrict-
ed supply and buoyant demand has
driven increases in the prices of most
“soft” agricultural commodities, from
soybeans to pork bellies. Bad harvests
in Australia and Russia have
depressed grain supply just as Chinese
demand has exploded. China’s wheat
imports have doubled over the last
year, while corn imports have
increased by an astonishing 7,043 per
cent. Overall, the S&P GCSI agricultur-
al commodity index has risen by 18
per cent over the last quarter.
And the rally is expected to contin-
ue. Emmanuel Jayet, an analyst at
Societe Generale, says: “This is no over-
reaction – we should see more tight-
ening in the short run”, while
Wheat has seen
dramatic price
rises recently
Picture: REUTERS
demand is likely to keep growing.
According to Jayet, prices are unlikely After the first week of trading which closed at 5.30 pm on
to moderate until at least April, when
information about next year’s har- Friday we have found our first weekly leader "fivericket".
vests is more readily available. Before This trader achieved a massive 910 per cent increase on the
then, there should be ample opportu- original account value of £10,000.
nity for spread betters to make a prof-
it. The key trade was making £69,000 on a single US crude oil
Not all commodities are equal, how- trade, fivericket called it perfectly from the bottom on
ever. Jayet warns that the prices of Tuesday to the top on Thursday selling at $86. The trader
sugar and wheat do not usually move
in step, and the fact they have done so backed up his key trade with another 23 trades with a 70
recently is arguably coincidental. per cent win rate.
Speculative demand for agricultural Don’t worry you can still enter and it’s free with a £9,000
commodities is relatively limited, and
so price changes tend to be driven prize pot still up for grabs.
mostly by the fundamentals. Since
those differ between products, spread User Name Account Value % Difference
betters need to keep on eye on individ-
ual commodities. 1 fivericket £101,007.32 910%
For example, whereas wheat prices
should keep rising, sugar prices may
yet fall. Much depends on a political 2 urosbric3 £78,606.50 686%
decision: Indian sugar production is
expected to rise, but with food infla-
tion a hot political issue in India, it is 3 TheMysteryTrader £62,094.46 520%
unclear whether exports will be
allowed to increase. 4 alonsove £42,493.58 325%
According to Sudakshina
Unnikrishnan, an analyst at Barclays
Capital, an large expansion of Indian 5 Gekko1981 £41,745.50 317%
supply is unlikely, and so prices are
likely to be pushed higher. It would
seem wise then for spread betters to
6 TheWozman £39,613.22 296%
take a long view. IG Index offers sever-
al spreads on commodities, on both 7 rhona45 £37,738.87 277%
the London and US markets.
For all that though, some com-
modities may never be tradeable. Last 8 mareinvest £33,395.97 233%
month, one US regulator sent out a
(joke) email suggesting that several 9 renoraines £32,496.00 225%
agricultural products be classed as
“abhorrent” to the American people,
and so illegal to be traded. The list 10 hchahal £29,690.00 197%
included Brussels sprouts and cauli-
flower. To register and the full standings, visit www.intertrader.com/champion

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CD03UK.115.080310
 26 Investment | Spread Betting CITYA.M. 8 NOVEMBER 2010

Face it, trader: Santa does not exist

But the VAT hike could bring
Christmas presents for spread
betters, says Donata Huggins

T
HERE is consensus among sane- Even Santa’s checking
minded adults that Santa Claus the charts
does not exist. We have – just about
– come to terms with the fact that Picture: GETTY
there is no jolly red-suited fellow that
wriggles down the chimney and fills our
stockings each year. Yet strangely there
are still traders who believe in his stock
market rally. They cling to the idea that
he sweeps through the City the week
before Christmas, lifting the FTSE sky-
wards. But heartbreakingly the charts
(below) clearly show that a quantifiable,
tradeable Santa rally does not really exist.
While it is true that the last five years
show a general upward trend for the
FTSE somewhere around the Christmas
period, pinning down its exact date is a
slippery affair. Last year it was 21
December to 8 January, whereas the year
before it was 29 December to New Year’s
Eve. “The tendency is to point out a
December move in January and say that
was the Santa rally,” says Michael Hewson
of CMC Markets.
David Jones of IG Index agrees: “The
full extent of the rally can be 5-10 per
cent over the period if you pick it off in
hindsight, but if you were trying to pick
the days in advance you’d be lucky to
pick up a 1 per cent gain, which is noth-
ing spectacular on a day-to-day basis.” could have his FTSE festive high delivered
But Manoj Ladwa of ETX Capital is still
a believer: “Of course it’s real. It starts in
by the sleighful. The VAT increase in
January could push shoppers into buying
THE TIPSTER in late 2007. Look to sell around $87-$87.20
with a target of the $80 support. Spread
late October and carries on through big-ticket items before the change. This Co offers a permanent four point spread on
November and December.” While the
charts show a slight incline, it is hardly a
could be attractive for spread betters
because retail spending is currently
WALL STREET TO KEEP ON December US Crude of $86.5-$86.54.
The Fed’s second round of QE certainly
run-away rally.
But this year, there is a chance Ladwa
depressed. A consumer boom could offer
plenty of potential for St. Nick to deliver.
CLIMBING POST-FED’S QE gave the banking sector index the requisite
shot in the arm. However, statements from
both HSBC and RBS at the end of last week
ANALYSIS l The performance of the FTSE ANALYSIS l The performance of the FTSE citing potential difficulties in the fourth
from November 2009-January 2010 from November 2007-January 2008 quarter served as a wake-up call. The sector

W
ITH the Fed confirming the latest index is still trading below the highs from
5,600 6,600
round of quantitative easing and the April 2010 and with time fast running out, a
5,500 6,400 Dow breaking above the April high break higher before the year-end is looking
6,200
of 11,258, this now becomes the less likely. The current IG Index price on the
5,400
first level of support for the index. banking sector index is 5,078-5,088.
5,300 6,000 WorldSpreads offer a two-point spread on the Despite equity markets reaching new
5,200 5,800 Dow Jones index. two-year highs last week, the retail sector
US crude oil was given a boost by the Fed suffered from a severe bout of selling.
5,100 5,600 decision and positive US jobs data, rallying Tuesday’s results from Marks & Spencer
5,000 5,400 some 6 per cent this week. But once again it could turn things round. Capital Spreads
found the $87 line a tough one to pass. This quotes 407.6p-408.5p for the retailer.
Nov 12 Nov 23 Dec 10 Dec 24 Jan 14 was an important level in April/May but also Jessica Mead
Nov 9 Nov 23 Dec 7 Dec 21 Jan 11

one can assume that until we see a major

TECHNICAL reversal pattern, the FTSE 100 is likely to
ANALYSIS head higher. The key level for the index
GURU remains at 6,000 and there are some minor
hurdles along the way that the index will
SANDY need to jump over.
JADEJA
CHIEF TECHNICAL
Q.
Which time frame should I use for
ANALYST short term trading?
sandy.jadeja@
cityindex.co.uk

A.
What is short term trading? Five min-
utes, one hour or three days? You
really need to decide what short term
means for you.
Let’s assume that you don’t have time to
look at screens all day and you would like to

Q.
Dear Sandy, will the FTSE 100 con-
tinue to climb in November?
enter and exit positions for a few days at a
time. In this case we would look at the week-
ly chart to determine the overall trend direc- Now the mid-terms shorter time frame for entry and exits. The problem with technical indicators is
tion and use the daily charts for entry and are out of the way, it’s that they do not always work. Therefore it

A.
Traders have been digesting a raft of
information over the last few weeks.
With the $600bn injection from the
Fed and President Obama’s mid-term elections
exit. As an example, if the weekly trend is
bullish and the daily trend is bearish then we
would look to buy on the dips.
Conversely if the weekly trend is bearish
Q.
time to reassess
Picture: REUTERS
Dear Sandy, do technical indicators would be better to focus on price movements
remain overbought? and use indicators as a confirmation tool. So
if we see a week where the FTSE 100 opens
higher and closes the week below the previ-

out of the way, the market has not reacted
negatively, unlike what many traders had
expected. When markets behave like they
have so far, then there is only one conclusion.
This market is resilient. It just does not
seem to want to head south and so far the
chart patterns remain bullish. In this context,
and the daily trend is bullish then one would
look to sell the rallies. You can use this same
theory for different time frames. A day trader
may be trading off five minute charts but
look at hourly charts for trend direction. The
idea is to use multiple timeframes and use the
longer time frame as an indicator and the
A.
Even with the index at its current lev-
els, we have seen various technical
indicators remain in overbought terri-
tory. This does not mean that markets have
to reverse. Quite the opposite, in fact. It sim-
ply means that the markets are much
stronger than expected.
ous week’s low, this would suggest a key
reversal. And if at the same time we see
technical indicators turn sharply lower, it is
at this point that we can assume a possible
reversal may be at hand.
Learn more about technical analysis with
Sandy at his free City Index seminars.
.com
 28 Markets & Investment CITYA.M. 8 NOVEMBER 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 . . . . . . . . . . . . . . . . . . . . . . . .316.90 +0.50 319.20 246.90 COLT Group . . . . . . . . . . . . . . . .121.50 +0.20 144.20 107.70 Jupiter Fnd Mgmt . . . . . . . . . . . .306.00 +11.90 310.00 180.00 Sainsbury(J) . . . . . . . . . . . . . . . .384.10 +1.30 397.00 307.60
3i Infrastructure . . . . . . . . . . . . . 113.60 +0.10 115.00 97.00 Compass . . . . . . . . . . . . . . . . . .523.50 +0.50 574.50 390.60 Kazakhmys . . . . . . . . . . . . . . . .1497.00 +35.00 1634.00 955.50 Schroders . . . . . . . . . . . . . . . . .1602.00 +7.00 1605.00 1056.00
A.B. Foods . . . . . . . . . . . . . . . .1071.00 +10.00 1096.00 790.00 Cookson . . . . . . . . . . . . . . . . . . .564.00 +2.00 616.00 353.70 Kesa Electricals . . . . . . . . . . . . .158.40 –2.10 172.40 98.45 Schroders N/V. . . . . . . . . . . . . .1270.00 +3.00 1276.00 868.50
Aberdeen Asset Man . . . . . . . . . .190.00 +4.20 191.60 111.00 Croda Intl . . . . . . . . . . . . . . . . .1459.00 +7.00 1540.00 735.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .240.70* +0.50 255.00 196.50 Scot. & Sthrn Energy. . . . . . . . . 1140.00 — 1206.00 1006.00
Admiral. . . . . . . . . . . . . . . . . . .1693.00 +13.00 1721.00 1003.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .567.00 — 571.50 401.70 Ladbrokes . . . . . . . . . . . . . . . . .135.70* –0.20 164.60 114.60 Scottish Mortgage. . . . . . . . . . . .674.00 –0.50 679.00 475.00
Aegis . . . . . . . . . . . . . . . . . . . . .128.60 — 137.30 103.10 Davis Service . . . . . . . . . . . . . . .421.90 –1.40 442.30 356.00 Lamprell . . . . . . . . . . . . . . . . . . .384.00 +3.40 388.00 157.30
Afren . . . . . . . . . . . . . . . . . . . . .130.90 –3.10 135.90 77.00 Debenhams . . . . . . . . . . . . . . . . .74.95 –0.65 90.00 51.95 Lancashire Hldgs . . . . . . . . . . . .578.00 –5.00 585.50 416.70 SEGRO . . . . . . . . . . . . . . . . . . . .303.70 +1.20 389.30 244.00
African Barr Gold . . . . . . . . . . . .549.00 –8.50 685.00 520.50 Derwent London . . . . . . . . . . . .1533.00* +8.00 1633.00 1183.00 Land Securities . . . . . . . . . . . . . .691.00 +4.50 743.50 543.00 Serco . . . . . . . . . . . . . . . . . . . . .573.00 +13.00 656.50 491.20
Aggreko . . . . . . . . . . . . . . . . . .1600.00 +10.00 1698.00 727.50 Dexion Absolute . . . . . . . . . . . . .137.30 +0.20 148.00 131.20 Legal & General . . . . . . . . . . . . .103.30 –0.30 107.50 69.05 Severn Trent . . . . . . . . . . . . . . .1437.00 –4.00 1450.00 941.50
Alliance Trust . . . . . . . . . . . . . . .355.80 –0.40 357.00 292.80 Diageo . . . . . . . . . . . . . . . . . . . 1161.00 –8.00 1240.00 978.00 Lloyds Banking Gp . . . . . . . . . . . .69.81 –0.44 79.15 45.30 Shaftesbury . . . . . . . . . . . . . . . .445.00 –1.10 465.00 348.00
AMEC . . . . . . . . . . . . . . . . . . . . 1124.00 +22.00 1129.00 728.00 Dixons Retail . . . . . . . . . . . . . . . .27.00 –0.31 39.75 23.07 Logica . . . . . . . . . . . . . . . . . . . .130.30 +3.00 149.10 100.80 Shire. . . . . . . . . . . . . . . . . . . . .1508.00 +12.00 1532.00 1053.00
Amlin . . . . . . . . . . . . . . . . . . . . .403.80 –12.70 437.60 355.90 Domino’s Pizza . . . . . . . . . . . . . .517.00 +4.00 517.00 278.20 London Stk Exchange . . . . . . . . .750.50 +0.50 938.50 540.50 Smith & Nephew . . . . . . . . . . . . .587.50 +29.00 700.50 528.50
Anglo American . . . . . . . . . . . .3029.00 +64.00 3038.50 2210.00 Drax . . . . . . . . . . . . . . . . . . . . . .377.10 –2.70 478.00 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1866.00 +4.00 2198.00 1344.00 Smith(Ds) . . . . . . . . . . . . . . . . . .182.10 +1.90 185.90 103.00
Antofagasta . . . . . . . . . . . . . . .1431.00 +35.00 1440.00 755.50 Dunelm . . . . . . . . . . . . . . . . . . . .497.50 –5.50 515.00 319.40 Man . . . . . . . . . . . . . . . . . . . . . .290.00 –0.80 373.60 199.60 Smiths . . . . . . . . . . . . . . . . . . .1233.00* –12.00 1297.00 909.00
Aquarius Platinum . . . . . . . . . . .394.90 +10.80 490.00 211.50 Easyjet . . . . . . . . . . . . . . . . . . . .472.50 –6.50 499.90 339.80 Marks & Spencer. . . . . . . . . . . . .408.30 –4.50 431.40 321.90 SOCO Intl . . . . . . . . . . . . . . . . . .323.00 –5.10 510.00 287.40
ARM Holdings . . . . . . . . . . . . . . .349.70 +10.80 419.50 148.20 Edinburgh Inv Tst . . . . . . . . . . . .464.20 +3.30 466.80 339.50 Meggitt . . . . . . . . . . . . . . . . . . . .328.10 –3.90 336.70 234.50 Spectris . . . . . . . . . . . . . . . . . . 1122.00* +9.00 1146.00 653.00
Ashmore . . . . . . . . . . . . . . . . . . .381.00* +2.00 400.50 215.00 Electrocomponents . . . . . . . . . . .259.00 +3.30 260.00 154.60 Melrose . . . . . . . . . . . . . . . . . . .300.40 +5.90 303.10 160.00 Spirax-Sarco Eng . . . . . . . . . . .1845.00* +1.00 1888.00 1060.00
Astrazeneca . . . . . . . . . . . . . . .3091.50 +20.50 3389.50 2670.00 EnQuest . . . . . . . . . . . . . . . . . . .137.50 +2.00 138.50 87.35 Mercantile IT . . . . . . . . . . . . . . .1013.00 — 1016.00 822.50
Atkins(Ws) . . . . . . . . . . . . . . . . .771.00 –0.50 801.00 532.50 Essar Energy . . . . . . . . . . . . . . .544.50 –0.50 553.50 358.50 Michael Page Intl. . . . . . . . . . . . .501.50 +10.10 504.00 326.00 Spirent Comms . . . . . . . . . . . . . .156.00 +5.50 158.30 90.35
Autonomy Corp . . . . . . . . . . . .1429.00 –16.00 2012.00 1319.00 Eurasian Nat Res . . . . . . . . . . . .991.50 +42.00 1276.00 801.00 Micro Focus . . . . . . . . . . . . . . . .369.90 –4.30 550.00 272.20 Sports Direct Intl . . . . . . . . . . . . .130.50 –5.60 154.30 89.85
Aveva . . . . . . . . . . . . . . . . . . . .1548.00 +43.00 1557.00 893.00 Euromoney Inst Inv . . . . . . . . . . .650.00 –5.00 660.00 373.00 Millen & Copthorne . . . . . . . . . . .563.00 –2.00 585.00 329.20 SSL Intl . . . . . . . . . . . . . . . . . . . 1162.00 — 1190.00 619.50
Aviva . . . . . . . . . . . . . . . . . . . . .418.40* +4.30 428.70 290.20 Experian . . . . . . . . . . . . . . . . . . .737.50 +4.50 763.50 559.00 Misys . . . . . . . . . . . . . . . . . . . . .295.70 –0.50 298.50 196.60 St James’s Place . . . . . . . . . . . . .262.90 +1.40 298.00 203.40
Babcock International . . . . . . . . .577.00 +10.00 660.50 489.00 Ferrexpo . . . . . . . . . . . . . . . . . . .360.90 +8.00 396.20 151.00 Mitchells & Butlers . . . . . . . . . . .348.00 +3.10 350.60 239.00 Stagecoach. . . . . . . . . . . . . . . . .224.00 +7.40 225.80 138.40
BAE Systems . . . . . . . . . . . . . . .341.90* –0.70 389.90 288.10 FirstGroup . . . . . . . . . . . . . . . . .406.30 +1.60 428.40 331.20 MITIE . . . . . . . . . . . . . . . . . . . . .208.20 +2.60 248.60 187.60 Standard Chartered . . . . . . . . . .1950.00 +10.00 1975.00 1316.50
Balfour Beatty . . . . . . . . . . . . . . .282.50* +7.10 304.80 228.60 Foreign & Col Inv Tst. . . . . . . . . .297.50 –0.30 299.60 249.90 Mondi . . . . . . . . . . . . . . . . . . . . .516.00 +4.50 562.00 304.70 Standard Life . . . . . . . . . . . . . . .233.90* +2.10 238.00 170.00
Barclays . . . . . . . . . . . . . . . . . . .289.85 +2.75 394.25 253.40 Fresnillo . . . . . . . . . . . . . . . . . .1413.00 +46.00 1436.00 647.00 Monks Inv Tst . . . . . . . . . . . . . . .347.60 +1.80 349.00 265.00 SuperGrp . . . . . . . . . . . . . . . . .1260.00 +30.00 1312.00 499.00
Barratt Development . . . . . . . . . . .84.75 +1.25 149.90 75.50 G4S . . . . . . . . . . . . . . . . . . . . . .258.10 –3.40 285.70 238.70 Morrison Wm . . . . . . . . . . . . . . .277.10* –1.60 307.10 255.00 SVG Capital . . . . . . . . . . . . . . . .220.10 +10.40 222.40 118.30
BBA Aviation . . . . . . . . . . . . . . .206.10 +0.80 220.00 145.90 Genesis Emerging Mkts Fd . . . . .535.50 +2.50 540.50 373.51 Murray Intl Tst . . . . . . . . . . . . . . .921.00* +9.50 938.50 720.00 TalkTalk . . . . . . . . . . . . . . . . . . .134.50 –0.50 153.80 106.60
Bellway. . . . . . . . . . . . . . . . . . . .550.50 –0.50 838.00 510.00 GKN . . . . . . . . . . . . . . . . . . . . . .177.40 +0.90 188.40 100.40 National Express. . . . . . . . . . . . .257.30 +1.50 261.30 155.86 Talvivaara Mining . . . . . . . . . . . .581.00 — 597.00 341.40
Berkeley . . . . . . . . . . . . . . . . . . .841.00 –3.50 917.50 735.00 GlaxoSmithKline . . . . . . . . . . . .1262.00* +34.50 1347.00 1088.00 National Grid . . . . . . . . . . . . . . .590.50 –5.50 607.65 474.80 Tate & Lyle . . . . . . . . . . . . . . . . .529.00 +4.50 534.50 388.00
BG . . . . . . . . . . . . . . . . . . . . . .1292.50 –3.50 1302.50 966.90 Great Portland Estates . . . . . . . .349.10 +3.30 368.60 242.80 Next . . . . . . . . . . . . . . . . . . . . .2136.00 +3.00 2361.00 1816.00
BHP Billiton . . . . . . . . . . . . . . .2450.00 +20.00 2466.00 1644.00 Greene King . . . . . . . . . . . . . . . .437.60 +7.60 484.00 372.50 Northumbrian Water . . . . . . . . . .358.80 +0.80 364.00 230.50 Taylor Wimpey . . . . . . . . . . . . . . .26.09 +1.07 46.34 22.12
BlackRock Mining . . . . . . . . . . . .717.50 +5.50 721.50 490.00 Halfords . . . . . . . . . . . . . . . . . . .430.00 –0.30 562.50 370.10 Ocado Grp . . . . . . . . . . . . . . . . .142.00 –2.00 169.00 120.90 Telecity . . . . . . . . . . . . . . . . . . . .477.20 –1.20 546.00 323.50
BlueBay . . . . . . . . . . . . . . . . . . .481.60* +0.10 495.00 251.00 Halma . . . . . . . . . . . . . . . . . . . . .341.80 +5.60 345.50 221.80 Old Mutual . . . . . . . . . . . . . . . . .132.90* +1.00 146.90 95.30 Templeton Emrg Mkts . . . . . . . . .668.00 +7.00 673.00 464.10
Bluecrest Allblue GBP . . . . . . . . .172.50 –0.40 174.00 151.00 Hammerson . . . . . . . . . . . . . . . .434.40 +4.50 460.30 332.20 Partygaming . . . . . . . . . . . . . . . .231.00 +5.60 339.70 205.80 Tesco . . . . . . . . . . . . . . . . . . . . .419.65* –1.35 454.90 368.40
Booker . . . . . . . . . . . . . . . . . . . . .55.75* +0.75 55.80 37.50 Hargreaves Lansdown . . . . . . . .489.80 +2.30 490.00 259.40 Pearson . . . . . . . . . . . . . . . . . . .972.00 –1.50 1069.00 812.00 Thomas Cook . . . . . . . . . . . . . . .182.20 +3.20 277.20 167.50
BP . . . . . . . . . . . . . . . . . . . . . . .446.35 +1.25 658.20 296.00 Hays . . . . . . . . . . . . . . . . . . . . . . 116.30* +4.70 125.30 82.50 Pennon . . . . . . . . . . . . . . . . . . . .639.00 +4.50 644.00 441.00 Travis Perkins . . . . . . . . . . . . . . .869.00* +5.50 915.00 647.50
Brit Insurance . . . . . . . . . . . . . .1043.00 –2.00 1052.00 709.00 Henderson . . . . . . . . . . . . . . . . .137.20 +0.20 157.80 112.10 Persimmon . . . . . . . . . . . . . . . . .360.90* –1.30 520.00 335.90 TUI Travel . . . . . . . . . . . . . . . . . .210.20 +2.70 313.90 189.20
British Airways . . . . . . . . . . . . . .281.60 –4.40 290.00 180.20 Heritage Oil. . . . . . . . . . . . . . . . .361.00 +7.00 585.00 295.90 Petrofac . . . . . . . . . . . . . . . . . .1532.00 +7.00 1537.00 900.00 Tullett Prebon . . . . . . . . . . . . . . .401.50* +10.50 427.00 261.20
British Amer. Tob . . . . . . . . . . .2447.50 +18.50 2490.50 1832.00 Hikma Pharma . . . . . . . . . . . . . .793.00 +14.50 813.00 452.20 Petropavlovsk . . . . . . . . . . . . . . .943.50 +2.50 1370.00 834.00 Tullow Oil . . . . . . . . . . . . . . . . .1251.00* +3.00 1375.00 979.50
British Empire Tst . . . . . . . . . . . .494.40 +3.00 495.10 338.50 Hiscox . . . . . . . . . . . . . . . . . . . .356.30 +7.20 371.60 299.60 Phoenix Group . . . . . . . . . . . . . .685.00 — 775.00 550.50 UK Commercial Prop. . . . . . . . . . .80.50 +1.05 84.90 71.00
British Land . . . . . . . . . . . . . . . .518.00* –2.00 525.00 416.00 Hochschild Mining . . . . . . . . . . .545.50 +23.50 556.50 220.00 Premier Farnell . . . . . . . . . . . . . .286.00 +1.90 290.00 144.40 Ultra Electronics . . . . . . . . . . . .1759.00 — 1903.00 1198.00
Britvic. . . . . . . . . . . . . . . . . . . . .481.60 –1.20 518.00 342.10 Home Retail . . . . . . . . . . . . . . . .210.60 +0.10 326.30 201.70 Premier Oil . . . . . . . . . . . . . . . .1765.00 +1.00 1780.00 984.00 Unilever . . . . . . . . . . . . . . . . . .1913.00 –11.00 2024.00 1662.00
Brown(N.) . . . . . . . . . . . . . . . . . .295.00 –0.40 308.00 204.80 Homeserve . . . . . . . . . . . . . . . . .433.70 –5.40 502.00 422.00 Provident Financial . . . . . . . . . . .740.00* –21.50 983.50 740.00
BSkyB . . . . . . . . . . . . . . . . . . . .720.00* +8.50 732.00 521.00 HSBC Hldgs . . . . . . . . . . . . . . . .683.00 –12.10 766.80 595.20 Prudential . . . . . . . . . . . . . . . . . .648.00 +1.00 665.00 475.70 United Utilities . . . . . . . . . . . . . .628.00 +4.00 632.00 436.60
BT . . . . . . . . . . . . . . . . . . . . . . .161.80 +0.20 165.50 108.40 Hunting . . . . . . . . . . . . . . . . . . .652.50* +8.00 661.00 429.10 PZ Cussons . . . . . . . . . . . . . . . .396.00 +1.00 406.80 231.70 Utd Business Media . . . . . . . . . .677.00 –2.50 692.00 408.30
BTG . . . . . . . . . . . . . . . . . . . . . .263.00 +4.50 270.80 150.00 ICAP . . . . . . . . . . . . . . . . . . . . . .485.50 +4.20 489.10 291.70 Randgold Resources. . . . . . . . .5940.00 –25.00 6755.00 4126.00 Vedanta Resources . . . . . . . . . .2319.00 +129.00 2967.00 1795.00
Bunzl . . . . . . . . . . . . . . . . . . . . .730.00 –3.50 784.50 614.00 IG . . . . . . . . . . . . . . . . . . . . . . . .537.50 –1.50 560.00 300.80 Reckitt Benckiser . . . . . . . . . . .3598.00 –33.00 3667.00 2988.00 Victrex . . . . . . . . . . . . . . . . . . .1265.00 –4.00 1355.00 747.00
Burberry . . . . . . . . . . . . . . . . . .1039.00 –1.00 1065.00 547.00 Imagination Tech Gp . . . . . . . . . .406.20 +3.90 445.00 200.00 Reed Elsevier . . . . . . . . . . . . . . .526.00 –4.50 566.00 454.60 Vodafone . . . . . . . . . . . . . . . . . .173.90 +0.75 175.00 126.50
Cable & Wire Comms . . . . . . . . . .49.68 +2.69 150.00 46.51 IMI . . . . . . . . . . . . . . . . . . . . . . .835.50 +2.00 839.00 433.90 Regus . . . . . . . . . . . . . . . . . . . . . .85.20 –0.30 125.50 64.05 Weir . . . . . . . . . . . . . . . . . . . . .1668.00* +37.00 1676.00 660.00
Cable & Wire Wwide . . . . . . . . . . .69.55 –0.40 94.80 60.05 Imperial Tobacco. . . . . . . . . . . .2069.00 +29.00 2159.00 1728.00 Renishaw . . . . . . . . . . . . . . . . . 1194.00 — 1250.00 479.00 Wellstream Hldgs . . . . . . . . . . . .770.00 +32.00 810.00 429.70
Cairn Energy. . . . . . . . . . . . . . . .385.50 –1.50 497.60 306.80 Inchcape. . . . . . . . . . . . . . . . . . .344.50 –1.40 358.00 235.00 Rentokil Initial . . . . . . . . . . . . . . . .94.50 –5.80 140.20 91.15 WH Smith . . . . . . . . . . . . . . . . . .478.40 –5.20 551.00 392.20
Caledonia Invs . . . . . . . . . . . . .1816.00 –11.00 1833.00 1496.00 Informa . . . . . . . . . . . . . . . . . . . .442.20 –5.90 450.50 263.30 Resolution . . . . . . . . . . . . . . . . .252.60 –2.50 280.50 220.10 Whitbread . . . . . . . . . . . . . . . . .1789.00* +22.00 1789.00 1215.00
Capita . . . . . . . . . . . . . . . . . . . . .740.00 +7.00 829.50 693.00 Inmarsat . . . . . . . . . . . . . . . . . . .675.00 +15.00 831.00 568.00 Rexam . . . . . . . . . . . . . . . . . . . .318.50 –6.50 348.80 271.40 William Hill . . . . . . . . . . . . . . . . .166.80* +2.20 217.80 158.00
Capital & Counties . . . . . . . . . . .156.90 +1.70 157.30 99.60 Intercontl Hotels . . . . . . . . . . . . 1211.00 –11.00 1244.00 800.00 Rightmove . . . . . . . . . . . . . . . . .791.50* +9.00 830.00 456.90 Witan Inv Tst . . . . . . . . . . . . . . . .485.90 –0.10 492.00 396.30
Capital Shopping Centres . . . . . .390.80 +2.60 523.50 300.10 Intermediate Capital . . . . . . . . . .337.70 +2.80 338.90 233.50 Rio Tinto . . . . . . . . . . . . . . . . . .4346.00 +40.50 4400.00 2751.00
Carillion . . . . . . . . . . . . . . . . . . .356.30* +3.80 361.90 272.00 Intertek . . . . . . . . . . . . . . . . . . .1921.00* –5.00 1939.00 1136.00 RIT Capital Partners . . . . . . . . . 1148.00 –11.00 1215.00 940.00 Wolseley . . . . . . . . . . . . . . . . . .1784.00 +3.00 1807.00 1155.00
Carnival . . . . . . . . . . . . . . . . . .2774.00 +7.00 2937.00 1928.00 Intl Personal Fin . . . . . . . . . . . . .329.90 +11.90 329.90 181.40 Rolls Royce . . . . . . . . . . . . . . . .591.00* –30.50 661.50 449.90 Wood Group (John). . . . . . . . . . .469.90 +7.90 473.10 279.60
Catlin . . . . . . . . . . . . . . . . . . . . .363.00 +2.90 394.60 303.20 Intl Power . . . . . . . . . . . . . . . . . .426.90 –3.10 433.50 251.90 Rotork . . . . . . . . . . . . . . . . . . .1773.00 +38.00 1906.00 1101.00 WPP . . . . . . . . . . . . . . . . . . . . . .755.00* +2.00 758.50 545.50
Centamin Egypt . . . . . . . . . . . . .179.50 +7.10 194.40 103.50 Invensys . . . . . . . . . . . . . . . . . . .313.50 +13.20 350.30 224.90 Royal Bank Of Scot . . . . . . . . . . . .45.00 –2.14 58.95 28.25 Xstrata . . . . . . . . . . . . . . . . . . .1385.00 +18.50 1417.00 832.50
Centrica . . . . . . . . . . . . . . . . . . .335.70* +5.00 347.00 239.70 Investec . . . . . . . . . . . . . . . . . . .515.00 +0.50 565.00 411.50 Royal Dutch Shell A . . . . . . . . .2084.00* –5.50 2106.50 1621.00 LONDON TOP 250 BY MARKET CAPITALISATION
Charter Intl . . . . . . . . . . . . . . . . .712.50 +30.50 855.50 563.50 ITV . . . . . . . . . . . . . . . . . . . . . . . .70.95 –1.15 72.50 45.33 Royal Dutch Shell B . . . . . . . . .2044.00* –10.00 2071.00 1550.00
Chemring . . . . . . . . . . . . . . . . .2875.00 –15.00 3711.00 2551.00 Jardine Lloyd Thompson. . . . . . .591.50 +1.50 604.50 420.70 RSA Insurance . . . . . . . . . . . . . .131.70* –2.10 137.40 114.10 * Ex-Dividend † Suspended
Close Bros . . . . . . . . . . . . . . . . .810.00* +13.50 815.00 657.00 Johnson Matthey . . . . . . . . . . .1956.00 –17.00 1999.00 1408.00 SABMiller . . . . . . . . . . . . . . . . .2031.00 –13.50 2103.00 1590.00
Cobham . . . . . . . . . . . . . . . . . . .204.80* –3.20 278.60 199.20 JPMorgan Emerg Mkts . . . . . . . .613.50* +4.00 618.00 448.00 Sage . . . . . . . . . . . . . . . . . . . . . .267.70 +0.10 286.80 208.20 www.interactivedata.com

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US data lifts investors’ spirits WALL STREET WEEK AHEAD

of the downside risk for owning

W
all Street navigated through stocks, and also putting downward
three major landmines last pressure on the VIX.”
week – the elections, the With the Fed supporting markets
close, at a level of 5,889. The German symbolic. U.S. Federal Reserve meeting through quantitative easing, rates

MARTIN ON DAX 40 is expected to open up 7

points at 6,761, and the French CAC
On the earnings front we have
General Motors and Cisco as well as
and jobs report – with barely a
scratch. Now what?
could remain low for quite some
time. That, in turn, should help stim-

THE MARKETS 40 index is forecast to open up 5 at

3,919.
After a week of big news and water-
Sainsbury, Marks and Spencer and
Vodafone in the UK. The Bank of
England’s quarterly inflation report
With earnings season winding
down and a light economic calendar
this week, the market will be left to
ulate borrowing and make riskier
assets more attractive.
It could take data of a momentous
shed moments from the States, which due out on Wednesday includes the its own devices to sort out its direc- nature – something that suggests the
in particular saw the Federal Reserve Bank’s projection for inflation and tion. economy is not responding to the
announce a $600bn bond purchase as economic growth for the next two A rise of more than 16 per cent in Fed’s plan to buy $600bn in
part of the second phase of its quanti- years. the S&P 500 since the start of Treasuries – to cause anything more
tative easing programme, and during Governor Mervyn King’s press con- September had many investors than a minor slip-up in the market.
which share prices returned to the ference after the release of the report expecting a pullback after the trio of “What the Fed is doing is a consis-
pre-financial crisis levels of June 2008, will be closely analysed for clues as to big events. But it appears to have tent increase in money supply.
this week is likely to be rather less future monetary policy, including emboldened them instead. Consistency will be much more
any potential for additional quantita- The CBOE Volatility Index, a meas- important to the psyche of investors
ANALYSIS l FTSE tive easing. ure of market anxiety, has slipped than big spikes,” said Edward
MARTIN SLANEY 6,000
5,875.35
5 Nov
Martin Slaney is director of global deal-
ing operations for GFT.
below 19 and the late-week action
suggests a market getting ready for
Hemmelgarn, chief investment offi-
cer of Shaker Investments in
more gains – not a sell-off. Cleveland.
5,800

S
hares are likely to open higher “Some of the alternatives to stocks That feeling permeated the market
this morning, with investors 5,600 (bonds, cash, etc.) now look much less even before Friday’s jobs data, which
remaining in buoyant spirits fol- attractive, which should push money showed the fastest payroll growth in
lowing on from Friday’s stronger 5,400 in the direction of stocks,” said Bill the private sector since April.
than expected non-farm payrolls data Luby, a private investor in San It is difficult to see the market
5,200
from the US economy. Francisco, who writes the VIX and fighting Fed-led stimulus, strong cor-
GFT is quoting the FTSE 100 index 5,000 More blog. porate results and labour force
to open up 14 points from Friday’s 9 Aug 27 sep 17 Sep 7 Oct 27 Oct This will result in “reducing some improvements.
Lifestyle
29

| TV& Games

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL

6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm Inside Out; BBC News
8pm EastEnders
8.30pm Are You Paying Too
Much Tax?: Panorama
9pm Spooks
10pm BBC News
10.25pm Regional News
10.35pm Ask Rhod Gilbert
11.15pm The Graham Norton
Show
12am Damages; Weatherview
12.50am Sign Zone: The Apprentice
1.50am MasterChef: The
Professionals 2.20am Out of the
Frying Pan 3.20am Restoration
Roadshow 3.50am-6am BBC News
6pm Eggheads
6.30pm Strictly Come Dancing
– It Takes Two
7pm Michael Wood’s Story of
England
8pm University Challenge
8.30pm MasterChef: The
Professionals – Michel’s Classics
9pm CHOICE Giles and Sue
Live The Good Life
10pm The Trip
10.30pm Newsnight; Weather
11.20pm Genius with Dave
Gorman
11.50pm Horizon: Asteroids –
The Good, the Bad and the Ugly
12.50am BBC News
3.50am Close 4am-6am BBC
Learning Zone
6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm ITV News 6.30pm Hollyoaks 6.25pm Live from Studio Five
7pm Emmerdale 7pm Channel 4 News 7pm Five News at 7
7.30pm Coronation Street 7.55pm 4thought.tv 7.30pm How Do They Do It?;
8pm Wild Britain with Ray 8pm Dispatches Five News Update
Mears 9pm Coppers: Traffic officers in 8pm CHOICE The Gadget
8.30pm Coronation Street Cambridgeshire offer an insight Show; Five News at 9
9pm CHOICE The Little House into their jobs. 9pm Extreme Fishing with
10pm ITV News at Ten 10pm Chris Moyles’ Quiz Night Robson Green
10.30pm London News 10.55pm Rory Peck Awards 10pm FILM Se7en: Thriller,
10.35pm Eric Cantona: Looking 2010 starring Brad Pitt and Morgan GILES AND SUE LIVE THE GOOD
for Manchester 11pm Ramsay’s Best Freeman. 1995. LIFE BBC2, 9PM
11.20pm Monte Carlo or Bust Restaurant: The Finals 12.35am The World of Stupid Thirty-five years after The Good Life first
12.20am The Zone; ITV News 1.05am Premier League Poker 2am Criminals aired, Giles Coren and Sue Perkins learn
Headlines FILM California Dreamin’: Premiere. 1.05am SuperCasino 4am House some of the self-sufficiency techniques
2.20am UEFA Champions League Romanian satirical comedy drama, Doctor 4.25am How Not to employed by the two lead characters.
Weekly 2.50am The Jeremy Kyle with Armand Assante. 2007. Decorate 5.10am Michaela’s Wild
Show 3.40am-5.30am ITV 4.35am Brothers & Sisters Challenge 5.35am-6am Michaela’s
Nightscreen 5.20am-6.05am ER Wild Challenge

SKY SPORTS 1 2am Live WWE: Late Night – 3am America’s Next Top Model About Brian 3.35am Reno 911! 4.40am Days That Shook the
SATELLITE & CABLE

7pm Sky Sports News at Seven
7.30pm Live Irish Football
10pm Netbusters 10.30pm SPL
Round-Up 11pm A League of
Their Own 11.30pm Premier
League Review 12.30am Soccer
AM: The Best Bits 1.30am Irish
Football 3am FIFA Futbol
Mundial 3.30am Watersports
World 4.30am Max Power
5.30am-6am FIFA Futbol
Mundial
SKY SPORTS 2
6.30pm NASCAR 7.30pm World
Golf Championship 8.25pm Live
Spanish Football 10.30pm PGA
Tour Classic 11.30pm Golfing
World 12.30am World Golf
Championship 1.30am-3am
Prizefighter Boxing
SKY SPORTS 3
7pm Thinking Tackle 8pm NFL
10pm Prizefighter Boxing
11.30pm NASCAR 12.30am
Wild Spirits 1am WWE: NXT
Raw 4.15am-5.15am Show
Jumping
BRITISH EUROSPORT
7pm Fencing 7.45pm Eurogoals
8.15pm Eurogoals: One to One
8.30pm Rallying 9pm MotoGP
11pm Champions Club
12.15am-12.35am WATTS
ESPN
6.30pm Talk of the Terrace
8pm Premier League Review
9pm French Top 14 Rugby
Union 9.30pm ESPN Game of
the Week 10pm Between The
Lines 10.30pm Talk of the
Terrace 12am NFL: Monday
Night Countdown 1.30am Live
NFL: Monday Night Football
4.30am-5am Press Pass 2010
LIVING
7pm CSI: Miami 8pm Dating in
the Dark US 9pm America’s
Next Top Model 10pm Party
Wars 11pm Criminal Minds 1am
CSI: Crime Scene Investigation
3.50am Charmed 4.40am CSI:
Crime Scene Investigation
5.30am-6am Home Shopping
BBC THREE
7pm Merlin 7.45pm Doctor
Who 8.30pm Freak Like Me
9pm The World’s Strictest
Parents 10pm EastEnders
10.30pm How Not to Live Your
Life 11.30pm Family Guy
12.15am The World’s Strictest
Parents 1.15am Freak Like Me
1.45am How Not to Live Your
Life 2.45am Britain’s Really
Disgusting Drinks 3.45am The
Real Hustle on Holiday 4.15am-
5.10am Secrets of the Universe
E4
7pm Hollyoaks 7.30pm Friends
9pm FILM Night at the
Museum 2006. 11.10pm
PhoneShop 12.20am A Shot at
Love with Tila Tequila 1.20am
Scrubs 2.10am A Shot at Love
with Tila Tequila 2.50am What
3.55am Switched 4.20am World 5.30am-6am How Does
Accidentally on Purpose That Work?
4.40am-6am Switched
DISCOVERY HOME &
HISTORY HEALTH
7pm How the Earth Was Made 7pm From Here to Maternity THE LITTLE HOUSE
8pm America: The Story of the 7.30pm Baby Whisperer 8pm ITV1, 9PM
US 9pm Pawn Stars 10pm 10 Years Younger 9pm Chopper Ruth returns from group therapy at the
American Pickers 11pm
Rescue 9.30pm A&E: Outback clinic with renewed confidence, but is
Decoding the Past 12am
America: The Story of the US
10pm Mystery ER 11pm plunged into despair when she is accused
Trauma Unit 12am Chopper of putting baby Thomas in danger.
1am Life After People 2am Rescue 12.30am A&E: Outback
Evolve 3am Mega Disasters 1am Mystery ER 2am Trauma
4am-5am Ancient Discoveries Unit 3am 10 Years Younger
4am Bringing Home the Babies
DISCOVERY 5am-6am Test Tube Babies
8pm How Do They Do It?
8.30pm How It’s Made 9pm SKY1
Mythbusters 10pm Frontline 8pm Fat Families 9pm Wives
Battle Machines with Mike 10pm NCIS: Los Angeles 11pm
Brewer 11pm How the Universe Bones 12am Law & Order 1am
Works 12am Deadliest Catch Road Wars 1.50am Inside: THE GADGET SHOW
1am Bear Grylls: Born Survivor Gangs Behind Bars 2.40am CHANNEL5, 8PM
2am Chris Barrie’s Massive Oops TV 3.30am Lost 4.20am Suzi Perry and Jason Bradbury
Speed 3am World War Two: Sell Me the Answer 5.10am- compete against each other in a
The Complete History 3.50am 6am Are You Smarter Than a musical challenge, and Pollyanna
Clash of the Dinosaurs 10 Year Old? Woodward compares five durable bags.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
30 12 5 20 10 34
6 24
10 28 14  
45
Place the numbers from 1 to 9 in each empty cell so that each  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 10 15
30
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 12 16 7
   
above or to the left of it. 10 15
You can only use the digits 1-9 35 17  
   and you must not use the
5
11 3    
same digit twice in a block. 26 16 15 33 11
   The same digit may occur 4 21 

  more than once in a row or

column, but it must be in a
12
22 13
14 13

35 9
   separate block.
3 7
45
    8 7
 

   ACROSS DOWN
1 Come away (6) 1 British author of The
 
   WORDWHEEL E R
4 Church benches (4)
6 Unsure and
Golden Notebook (1962),
___ Lessing (5)
2 Item (5)
Using only the letters in the Wordwheel, you have constrained in
   ten minutes to find as many words as possible,
M Y manner (3,2,4) 3 Young cattle (6)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 8 Hostelry (3)
10 Autographed (6)
4 First in rank or degree (7)
5 Catch sight of (3)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
T A 13 Mountain goat (4) 7 Designating sound

SOLUTIONS 14 Away (5) transmission from

KAKURO is at least one nine-letter word in the wheel.
P N 16 Flows back (4)
two sources (6)
9 Cloud bearing rain (6)
QUICK CROSSWORD 4 2 5 2 8 7 17 Ship’s officer who
5 6 9 8 7 1 3 2 SUDOKU         
keeps accounts (6) 11 Budding (7)
% / ( : 6 8 6 $ 1
1 3 8 7 4 9          20 Promissory note 12 Brief swim (3)
8 $ / ( & 7 $
2 1 3 5 1 6 3
5 2 $ 1 + 5 .          (inits) (3) 15 Throughout the
. 6 7 $ / ( 0 $ 7 ( 2 8 6 9 4 3 7 5
         21 Confidently time of (6)
$ 5 7 0 ' ' ' 1 5 5 9
        
$
5 ( %
2 ,
2 8
/
1 '
/ 2 %
4 2 9 7 5 3 1
6 5 9 3 2
6
7 9
WORDWHEEL         
aggressive (9)
22 Underground part
18 Military blockade (5)
19 Prescribed guides for
* 2 / ' ( 1 ( < ( $         
( $ 1 2 ' ' 6 3 5 8 1 9 8 The nine-letter word of a plant (4) conduct or action (5)
3 1 6 2 3 1 4 5         
1 % & $ / / 7
was MACHINERY          23 Concurs (6) 21 Atmosphere (3)
7 + ( 0 ( . $ / ( 9 6 8 9 4 8
 Lifestyle
30 CITYA.M. 8 NOVEMBER 2010

| Travel

Turbans and
tiaras: inside
India’s luxury
rolling palace
Zoe Strimpel takes a The Maharajahs’ Express delivers delight
at every stage. Every guest is royalty. Red
carpets, garlands, bindis, cold towels, sitar
voyage aboard the music, brightly dressed animals and bril-
liant dancers are the norm outside the
Maharajahs’ Express train – air conditioning, finely furnished
rooms and Raj-style opulence, including
in an unforgettable the kind of service you never see in Europe,
are the norm inside.
trip across Rajasthan But this is Rajasthan, and it’s not all
about red carpets and cold towels. It’s about
city centres raging with colour and poverty,
and cows as unperturbed in the middle of

H
OW do you look in a bindi and tur- roundabouts zooming with tuk tuks and
ban, with a garland of flowers round blue buses as they are in the fields of
your neck? I didn’t know either, until Yorkshire. It’s about breathtaking forts and fruit to your room alongside your wake-up Above: the Maharajas’ in all the splendours of the state. Day one
I found myself in some gardens out- palaces, loaded with gold, tile, marble, fab- call if you desire. Otherwise, he will be Epress. was Agra: after we toured the Taj Mahal we
side Jaipur, the third stop on our week-long ulous stonework and rich Hindu tradition – standing somewhere near your door, literal- Below: Zoe sports an were ushered to a sunset high tea overlook-
but epic journey through Rajasthan on the Maharajahs’ 16th century stomping ly at your service whenever you want him. Indian look before ing it. Sipping champagne and nibbling
India’s most luxurious train. The answer, grounds. The train’s organisers know this. Having come off a sleepless night flight playing elephant polo. pakoras and kiwi millefeuille as the sun
for me, was really quite good (see picture) – So every day you’ll dive into the chaos, and straight to the train for the first leg of went down over that famous monument
the turban felt firm and regal, the flowers always transferred from the train in an air the journey to Agra – and waking the fol- was a good start.
festive and the bindi flattering. conditioned bus with a man whose job lowing morning at 5AM for a game drive – Day two, after our early stop-off at
Just 48 hours into this is to give you mini bottles of my cabin was used largely for naps. (The Rathambore, we continued to Jaipur
rail voyage from Delhi water, always accompanied by outing to Ranthambore tiger reserve was where we had our first taste of proper pala-
to Mumbai, a sense a guide who is as sweet and beautiful but unfruitful for our group – tial splendour: the rose-hued Amber Fort.
of wonderment charming as he is knowl- however another vehicle saw a tiger cross (It was after our tour here that we played
had become the edgeable and patient. right in front of them. We contented our- elephant polo at the Jai Mahal Palace
norm. So, And every day, just selves with lots of monkeys and peacocks.) Hotel.)
rather than when the chaos The rest of the time on board was spent Bikaner was next, where the evening
feeling over- starts to become too sipping Indian bubbly in the plush leather was spent – via camel cart – in a desert
whelming or hot and too much, lounge, aptly called the Rajah Bar for its camp complete with fire torches, a bar,
embarrass- you’re whisked off evocation of colonial luxury. It was here cushions, “table service” from a gourmet
ing, it felt to a setting of your that we met for pre and post-dinner drinks grill, and dancing. There were even loos.
perfectly dreams – a flame- as the train rattled through the night, mer- The next morning we woke up in
lovely and lit desert camp, a rily joining the other guests – from a Jodhpur – the perennially sunny city of
right to walk fort at nightfall – designer-clad Russian couple to a blue roofs and home to the resplendent
along a red for drinks and din- Colombian artist – in the humour of shared Mehrangarh Fort. After buying expensive
carpet under ner. experience. After all, we had all seen each but beautiful bed covers at a textiles shop
ribbon-bearing The train is not just other in turbans, riding elephants – and in the city centre – Richard Gere is a fan –
canopies, looked your moving hotel for sweating profusely. we were whisked in a tuk tuk through the
on by brightly the week, but a tight-knit The food on board is plentiful (but only chaos to the fort where we immersed our-
cloaked camels, to the community of guests and during meal times – unlike on cruise selves in a warren of magnificent rooms
sound of jaunty tradi- staff. When the landscape and ships, there aren’t constant opportunities for an hour or two. Then, naturally, it was
tional music. Just for us. experience is constantly changing, for gorging), and served with gold cutlery time for an opulent buffet dinner on a
And how natural to be met by such continuity is comforting. and crystal glasses. Both dining rooms are veranda outside the fort, with views of the
sequin-clad locals who took our heads and Of course, India’s most-hyped train ever stunning (they serve the same food): one is city and a private firework display.
wrapped them in bright red cloth, and isn’t just about continuity. It’s about luxu- red, the other green, both with ornate dark Our penultimate day saw us in Udaipur.
painted henna on our hands (henna, I ry. Cabins range from comfortable but com- chairs, luxurious upholstery, glistening With its famous Lake Palace and City
might add, that lasted 10 days – those pact, with two twin beds, to suites with tables and sumptuous tilework. Dinner Palace, the largest palace complex in
returning to work in less time, be warned). baths and arm chairs. All have top-line offers a mixture of Western and Indian Rajasthan (where we had a four-course
Best of all, it felt deliciously right when the ensuite bathrooms and showers (even the food and while some of it was lunch), it came and went in giddy intensi-
elephant polo started and we were hoisted Orient Express can’t boast this) and pillow tasty – the Indian food at times ty. And finally it was Vadodara, where
on board, handed extra-long sticks and told menus, along with the aforementioned delicious – it wasn’t as good as highlights of the whole trip included
to swing (which we did hopelessly). valet, who will bring biscuits, coffee and I was hoping, given the set- high tea at Laxmi Vilas Palace and a
ting (and the cutlery). walk through the mosque at
Perhaps the commitment to Champaner. Laxmi sported foun-
Left: a suite on board. safety came with a price – tains, marbles and tiger’s heads
certainly, nobody had any inside, and monkeys in the exten-
stomach problems sive gardens, while Champaner’s
throughout the trip. mosque was a haunting warren of
We ate outside the ancient stone and beautiful
train almost as much stonework.
as on it – indeed, our When we alighted in Mumbai,
meals off board were we were on a high. The Maharajah
always an occasion for Express combines a once-in-a-lifetime
well (and hygienically- mixture of hedonism and culture,
made) local food and adventure and comfort. It turns India
thrilling settings. into your own royal playground – and
The itinerary was there’s nowhere better to play a prince
well balanced and took than here.
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 Sport
32 CITYA.M. 8 NOVEMBER 2010

Results
CRICKET
TOUR MATCH (Perth); Western Australia 242-8 dec. (A C
Voges 72, W M Robinson 62) and 189-8 dec. (W M Robinson
54) v England 223-8 dec. (K P Pietersen 58, S C J Broad
53no) and 243-4 (A J Strauss 120no). England beat Western
Johnson: I
won’t settle
Australia by 6 wickets.
FOOTBALL
BARCLAYS PREMIER LEAGUE
Birmingham................(0) 2 West Ham..........................(0) 2
Jerome 64 Piquionne 48
Ridgewell 73 Behrami 58
Att: 26,474

for us being
Blackburn.....................(0) 2 Wigan...................................(0) 1
Pedersen 58 N’Zogbia 74
Roberts 67 Att: 24,413
Blackpool ......................(1) 2 Everton.................................(1) 2
Eardley 10 Cahill 13
Vaughan 48 Coleman 50
Att: 16,094
Bolton ..............................(1) 4 Tottenham.........................(0) 2

nearly men
K Davies 31, 76 (pen) Hutton 79
Steinsson 56 Pavlyuchenko 87
Petrov 90 Att: 20,255
Fulham............................(0) 1 Aston Villa .........................(1) 1
Hangeland 90 Albrighton 41
Att: 23,654
Man Utd..........................(1) 2 Wolverhampton............(0) 1
Park 45, 90 Ebanks-Blake 66
Att: 75,285
Sunderland..................(1) 2 Stoke.....................................(0) 0
Gyan 9, 86 Att: 36,541
Arsenal ..........................(0) 0 Newcastle ..........................(1) 1 terms of taking opportunities and
Att: 60,059 Carroll 45
Liverpool.......................(2) 2 Chelsea................................(0) 0
Torres 11, 44 Att: 44,238
ENGLAND 16 spotting space. We know how danger-
ous they can be. By no means do we
West Brom ..................(0) 0 Man City .............................(2) 2 think we have got the tough one out
Att: 23,013 Balotelli 20, 26 of the way. If you get into that trap
NPOWER CHAMPIONSHIP
Barnsley........................(0) 0 Leicester .............................(1) 2
NEW ZEALAND 26 you will get yourself beaten very
quickly.”
Bristol City..................(0) 1 Preston.................................(1) 1
Coventry.......................(0) 2 Leeds.....................................(2) 3 Replacement Dylan Hartley scored
▲

Derby................................(1) 2 Portsmouth......................(0) 0 RUGBY UNION England’s only try and the New
Doncaster ....................(0) 2 Millwall................................(1) 1 BY FRANK DALLERES Zealand-born Northampton captain
Hull....................................(0) 0 Scunthorpe ......................(0) 1
Middlesbrough.........(0) 2 Crystal Palace.................(1) 1 echoed his manager’s sentiments
Norwich.........................(0) 2 Burnley................................(2) 2 ENGLAND may have offered hope ahead of Saturday’s clash with more
QPR....................................(1) 3 Reading ...............................(0) 1 with a late rally against New Zealand southern hemisphere heavyweights.
Sheff Utd.......................(1) 1 Ipswich ...............................(2) 2
Watford..........................(1) 1 Nottm For ...........................(1) 1 but manager Martin Johnson has “Bring on Australia,” he said.
Cardiff............................(0) 0 Swansea.............................(0) 1 warned his team not to be content “Winning is so important to this
GOLF with the role of gallant losers, even if team. A lot of people from the outside
WGC-HSBC CHAMPIONS (Sheshan International GC, Shanghai, it is against the world’s best. will say, ‘You played well in the sec-
China)—FFinal rnd (Gbr & Irl unless stated, par 72): 269 The home side’s fightback from 14- ond-half and you played some good
Francesco Molinari (Ita) 65 70 67 67. 270 Lee Westwood 66 70 0 down at half-time against the All rugby’. But that isn’t good enough for
67 67. 279 Richie Ramsay 69 68 71 71, Luke Donald 68 70 68
73. 280 Rory McIlroy 71 71 71 67. 281 Peter Hanson (Swe) 73 69 Blacks offered encouragement, while us.
70 69, Tiger Woods (USA) 68 72 73 68, Retief Goosen (Rsa) 70 the Twickenham crowd might even “We are on a level with these guys.
74 69 68, Ernie Els (Rsa) 72 65 71 73, Paul Casey 73 71 67 70, have had a memorable victory to We don’t put them on a pedestal and
Richard Green (Aus) 72 68 73 68, Fredrik Andersson Hed (Swe)
69 71 71 70. 282 Ian Poulter 70 70 73 69, Jaco Van Zyl (Rsa) 71 toast had centre Shontayne Hape so we are disappointed. If we had
66 72 73, Henrik Stenson (Swe) 67 74 72 69. 283 Seung-yul Noh touched down late on. turned the All Blacks over it would
(Kor) 67 72 71 73, Ross Fisher 69 70 69 75, Charl Schwartzel But Johnson, while buoyed by the have been a real step forward for us.
(Rsa) 74 70 67 72, Pablo Martin (Spa) 68 73 71 71, Padraig show of resilience in England’s first The team is quite hurt but we can
Harrington 70 70 70 73.
Test of the autumn campaign, has take confidence from the way we
RUGBY LEAGUE left his beaten players in no doubt played and take that into next week.”
FOUR NATIONS
England 36...................................... Papua New Guinea..................10 that another near miss will not suf- Hape, meanwhile, insists England
New Zealand 20........................... Australia......................................34 fice when Australia rock up next should have been awarded a penalty
RUGBY UNION weekend. try in the closing stages for the chal-
INTERNATIONALS “I didn’t want them to be happy lenge by Isaia Toeava that knocked
England .......................................16 New Zealand..............................26 with the comeback and happy to be the ball from the centre’s clutches as
Ireland.........................................21 South Africa ..............................23 near,” he said. “If you want to get bet- he was about to touch down in the
Wales ...........................................16 Australia......................................25
ter you don’t go around being satis- corner. “When I saw the footage there was were a man down. It would have
fied. There was lots of good stuff but “It wasn’t a tackle,” said Hape. “It a hell of an impact. It happened so been interesting.
let’s not pat ourselves on the back, was a shoulder charge and I thought fast and boom, you get smashed out. “It was also disappointing to give
SPORTS EDITOR FRANK DALLERES that’s what we expect. maybe we would get a penalty try or In the last five minutes, we were hav- them that period in the first-half
email sport@cityam.com “The Australians are lethal in something. ing a good crack at them and they when they scored quick tries.”

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CITYA.M. 8 NOVEMBER 2010 33

Seb hints at helping Webber

Shontayne Hape
went close to scor-
ing a second try for
England.

Picture: PA

which we’re not very proud of and we

▲

FORMULA ONE
BY JAMES GOLDMAN
RUGBY SEBASTIAN VETTEL will have no
WINNERS & qualms about assisting his Red Bull
team-mate Mark Webber win the
LOSERS world title, should his own attempts
to do so fizzle out.
WHO swam and who sank? City A.M. For the first time in the history of
sorts the champs from the chumps. the sport, four drivers will head into
the final Grand Prix of the season
ANDREW SHERIDAN with a chance of being crowned
A strong showing from champion.
the big Sale prop, given That is the scenario following a
it was his first Test Brazilian Grand Prix in which Vettel
appearance for 20 claimed victory ahead of Webber,
months. Reassuringly with Fernando Alonso third and
powerful in the scrum Lewis Hamilton fourth.
but could perhaps do Ferrari’s main man, Alonso, is the
with improving on his favourite to collect what would be his
ball-carrying. third title. The Spaniard holds an
WINNER eight-point cushion over Webber,
with Vettel seven points further back.
BEN YOUNGS As for Hamilton, his hopes now rest
Although short of the on none of his rivals picking up any
performance some had points next Sunday if he is to bridge a
hoped for, the Leicester 24-point gap.
scrum-half impressed
The key question, however, is what
with customary liveli- Vettel will do if it is the same one-two-
ness and dynamism. three heading into the final lap at the
Coped well with a bar- Yas Marina circuit, and whether he
rage from New Zealand will allow Webber through.
loose forwards.
WINNER If he fails to do so, Webber will lose
the title by five points to Alonso; yet if
those two guys are (referring to
Webber and Alonso).
he does so, Webber wins it by two.
MIKE TINDALL
Decent in defence but
Vettel said: “It depends on where
“You will have to judge according
Vettel and Webber
still in title hunt
Picture:
ACTION IMAGES
to the situation, but one thing is clear
- which is hard for you to imagine -
both of us know how to act.
“We’ve have had some moments
wouldn’t want to repeat.
“Obviously I went to school, so I
know what I can answer. For me it is
straightforward. I go to Abu Dhabi to
try to do my best, we have a strong
car, I can rely on that.
“What do you want to hear? I can
only tell you the the scenario you are
talking about is something you think
of. I think it’s clear.”
Asked if that was a ‘yes’, Vettel smil-
ingly replied: “When I was a kid I
never liked it when my parents teased
me when they did not answer my
questions. I’m now in a good position
to tease you, so you’ll see.”
The suggestion appears to be Vettel
will do the honourable thing,
although Webber's response as to
whether he feels that will occur was
more pointed.
“To cut a long story short, it all
depends how it is on the last lap,” said
Webber.
TOP 5 | DRIVERS’ CHAMPIONSHIP
1 Fernando Alonso 246 points
2 Mark Webber 238
3 Sebastian Vettel 231
4 Lewis Hamilton 222
5 Jenson Button 199

Bernie backs Brazil despite carjackings

nullified in attack, he
missed passes and
tackles and dropped
balls. Will rue failure to
convert a two-on-one
opportunity, although
he was involved in
LOSER England’s sole try.
▲

FORMULA ONE
Three Sauber mechanics were also people get mugged. his car in a traffic jam.
BY JAMES GOLDMAN robbed at gunpoint on Saturday “They look for victims, “It always looks set up, I’m sure,"
TOM PALMER FORMULA ONE chief Bernie night, but Ecclestone feels a measure they look for people who said Button. “It felt that way.
Worked hard and won Ecclestone insists the Brazilian Grand of perspective needs to be kept. are a little bit slow and “But I’m sure it was a ran-
some lineouts but did Prix will be “around for another hun- “I’ve been coming here for 40-odd simple, but the people dom attack, that’s the way I
not stand out on a day dred years” despite the carjackings years, walking about, and I’ve never, who look a bit bright, they like to think of it.”
when England’s front which marred yesterday’s race. ever had a problem,” said Ecclestone. never go after them. Button’s father, John,
five did well. The Stade World champion Jenson Button “That’s not just for the race, but at “But as for the race, I’m described the events as
Francais lock was made emerged unscathed from his ordeal, other times when I’ve been here too. happy. We’ll be here for something right out of a
to look decidedly but only thanks to the quick thinking I’ve also never been around where I’ve another hundred years.” Hollywood movie.
unathletic by his All of police driver Daniel Toni, who seen anybody have a problem. Button (right), meanwhile, He said: “It was unbe-
LOSER Black adversaries. ensured the Englishman, his father
and manager all escaped after being
“You have to remember we have a
lot of problems in England, Oxford
does not believe he was delib-
erately targeted by the “five
lievable, just like in a
film, like Sylvester Stallone
confronted by a gang of armed men. Street and places, and in New York or six” men who approached in Rambo.”
 34 Sport CITYA.M. 8 NOVEMBER 2010

Chelsea’s lead is cut

by revitalised Torres
Liverpool’s Spanish striker blows the leaders away but admits
he is still searching to find his top form, by James Goldman
If his first was delicate, his second, fourth placed Manchester City.
LIVERPOOL 2 which arrived on the stroke of half-
time, was more about brute force, as
For their part, Chelsea were slow
out of the blocks yesterday and failed
he cut in from the left before deliver- to match Liverpool’s intensity, partic-
CHELSEA 0 ing a thumping shot into the far cor-
ner which left Cech standing.
ularly in the first-half when the
absence of Michael Essien was telling.
Other than his goals, it was the “We didn't play quickly in the first-
TWO GOALS of the highest order renewed effort and work rate that half; we didn’t have time to build play
against the meanest defence around suggested a return to the form the from the back and we didn’t have the
would suggest Liverpool’s Fernando Anfield faithful have come to expect possibility to find space in the oppo-
Torres is back to his best, but the as standard is around the corner. nent’s half,” said manager Carlo
striker insists there is still more to “It’s been difficult for me with Ancelotti, whose side are now sud-
come. injuries but I am training every day denly just two points ahead of
The past few months have repre- and every day feeling better and Manchester United.
sented something of a misery for improving,” said Torres. “Liverpool defended very well and
Torres, with his form having taken a “I don’t know if I can play my best counter-attacked, scoring two fantas-
sizeable dip and his commitment to soon - but it will be soon. I know the tic goals. It was very difficult to get
the cause questioned by some expectation I have but I can handle back in the game. The second-half
observers. that. was much better but it was not
But the Spain international roared “We have to keep winning. We have enough for us.”
back to form yesterday with a first- won three games in seven days but
half brace which condemned Chelsea
to only their second Premier League
we have to forget that now.”
Certainly the picture is starting to
TOP FOUR
TEAM PLD W D L F A
defeat of the campaign. look far rosier for Liverpool and their
He opened the scoring in the 11th under pressure manager Roy Chelsea 11 8 1 2 27 5 25
minute, latching onto Dirk Kuyt’s Hodgson, who can now begin to tar- Man United 11 6 5 0 24 13 23
pass and clipping the ball over the get a Champions League spot with Arsenal 11 6 2 3 22 11 20
advancing Petr Cech. only five points separating them and Man City 11 6 2 3 15 10 20

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CITYA.M. 8 NOVEMBER 2010
Torres was too hot to handle for Chelsea
Picture: PA
City bounce back but Balotelli’s heroics tainted
WEST BROM 0 scored his first Premier League goals
MANCHESTER CITY 2 defeats.
FOOTBALL
▲
MANCHESTER CITY manager Roberto
Mancini raged at referee Lee Probert
for sending off Mario Balotelli after
the two-goal striker’s afternoon was
soured by a red card. Balotelli, a £24m
Captain Strauss gets Ashes
campaign off to flying start
▲
CRICKET
BY JAMES GOLDMAN
AN UNBEATEN century from captain
Andrew Strauss helped England to a
momentum building six-wicket win
over Western Australia.
England’s senior players had made
public their desire to win all three of
their pre-Ashes warm-up matches
ahead of the first Test in Brisbane
later this month.
But a victorious start looked unlike-
ly until the hosts lost eight wickets for
64 runs as they went from 109 for
one to be all out just after lunch.
Chelsea’s other
Torres traumas
Torres marked his home debut
with his first goal for the club, a
wonderful individual effort in a 1-1
draw back in 2007.
Chelsea were celebrating a place
in the Champions League final
before a Torres effort postponed
their celebrations, temporarily.
A late Torres brace condemned
Chelsea to a 2-0 defeat in
February 2009 and proved the
nail in the coffin for Felipe Scolari.
summer signing from Inter Milan,
for his new club to ease the pressure
on Mancini following three straight
But the 20-year-old had to forget
any thoughts of a hat-trick when he
was booked twice in quick succession,
the second for a foul on Youssouf
Mulumbu, who later was also sent
off.
“I absolutely do not agree with the
referee about this sending-off,” said
Mancini, who plans to appeal the dis-
And thanks largely to Strauss’s 120
not out, the left-hander’s first senior
ton Down Under, England knocked
off the 242 runs required in just 52
overs.
“We are very pleased, especially
because of the position of the game at
the start of play,” said Strauss. “We
hit the ground running. It is impor-
tant we play well and win as many of
these games as possible and that bats-
men get used to conditions.
“The best way to do that is by
spending time in the middle. It was
satisfying to get a hundred.”
Meanwhile, Australia ended their
Carroll header causes home
discomfort for sorry Arsenal
ARSENAL 0
T
NEWCASTLE UNITED 1
▲
FOOTBALL
BY FRANK DALLERES AT EMIRATES STADIUM
MANAGER Arsene Wenger admits he
fears for Arsenal’s home form after
Newcastle inflicted his side’s second
defeat at the Emirates in four games,
dealing the 10-man Gunners’ Premier
League title hopes a shuddering blow.
Wenger’s team failed to recover
from Andy Carroll’s towering header
on the stroke of half-time, meaning
Newcastle avenged their recent
Carling Cup thrashing and, like West
Brom a few weeks ago, left north
London with three points.
Two home league defeats were all
that Arsenal suffered throughout last
season, and this year’s losses have
been no flukes: Wenger’s concern has
been deepened by the laboured man-
ner of victories against Birmingham
and West Ham.
“Home form is a concern because
against Birmingham and West Ham
they were struggling wins,” he said.
“Everybody comes here and plays very
tight. When you score the first goal it
is alright because teams have to come
out, but as long as they can sit deep
we have a problem to play through
when we are not on full power.”
Wenger threw on three forwards,
missal. “A red card for what? He
played a fantastic game, he scored
two goals, but the sending-off was
very strange. I want to know why
it was a direct red card. For me
this is not correct and the referee
must explain.”
Victory ensured City held onto
fourth place and meant they
took full advantage of the unex-
pected defeats suffered by top-
four rivals Chelsea and Arsenal.
It also boosted Mancini, who
has faced predictions of his
seven-match losing streak with a
crushing eight-wicket defeat of Sri
Lanka in the third one-day interna-
tional in Brisbane.
A Sydney Sunday Telegraph poll
revealed 56 per cent of Australian
fans believe their side will lose the
Ashes on home soil for the first time
since 1986-87 as a result of recent per-
formances.
But the confidence of fans and
players alike will have received a shot
in the arm following the bowling
exploits of Clint McKay and Mitchell
Star, who took nine wickets between
them.
Andrey Arshavin, Nicklas Bendtner
and the barely-fit Robin van Persie, in
search of an equaliser, but still lacked
the ingenuity to unlock a determined
Magpies defence.
The closest Arsenal came to scoring
was when the fitful Theo Walcott
hammered the bar early in the sec-
ond half, while Samir Nasri drew a
superb tip over from goalkeeper Tim
Krul late in the opening period.
Gunners captain Cesc Fabregas also
struck the woodwork with a free-kick
that nicked off the wall, but other-
wise looked far from fit, struggling to
keep up and giving the ball away with
imminent demise
and stories
a b o u t
dressing
r o o m
unrest in a
torrid past
fortnight.
Balotelli (left), making
only his second start for
City due to injury, netted his
first on 20 minutes when
Spain midfielder David
Silva slipped Carlos Tevez
Westwood remains No1
despite Molinari victory
▲
GOLF
ITALIAN Francesco Molinari denied
Lee Westwood the perfect end to his
perfect week by winning the HSBC
Champions in Shanghai by one shot.
Molinari held a single shot lead
going into the final day and a fourth
round 67 was enough to fend off
Westwood, who this time last week
was celebrating becoming world No1.
Two shots behind on the par-five
18th, Westwood had the chance to
force a play-off but his 25-foot putt for
eagle was wide of the mark.
“It was a little disappointing after
hitting a five-iron into the last hole,”
said Westwood. “I just needed the
Sport 35
Carroll’s goal
came in front of
Fabio Capello.
Picture: PA
uncharacteristic regularity.
To cap matters, defender Laurent
Koscielny was shown a straight red
card for bringing down Nile Ranger in
injury time. It all added to a weekend
to forget for Wenger, who has also
had to contend with tabloid head-
lines about his private life.
Carroll, whose alleged off-field
behaviour has also made the front
pages, showed no sign of mental
strain as he led the line tirelessly in
front of England boss Fabio Capello.
His reward came when he beat
Arsenal goalkeeper Lukasz Fabianski
to Joey Barton’s lofted free-kick.
in to cross low for his strike partner.
The Italian’s second came just six
minutes later when he eventually
brought a high pass under control
and used his physique well to turn a
drill a low shot low into Scott
Carson’s right-hand corner. Balotelli,
who arrived with a reputation as a
fiery character, was booked first for a
challenge on Marek Cech and then
for swinging his leg at Mulumbu.
West Brom boss Roberto di Matteo
said: “I think the referee was in a good
position on the [City] sending-off.”
breaks to win and it didn’t happen.
But 18-under-par and nine shots clear
of third is never too bad.”
Westwood’s 27-year-old Ryder Cup
team-mate Molinari said: “It wasn’t
easy. I’m just really proud of the way I
played and handled myself. Lee is No1
in the world, and he was playing
some fantastic golf. It was a great fin-
ish at the end.”
Northern Ireland’s Rory McIlroy
finished third, while the deposed
Tiger Woods, whose 281-week reign
was ended by Westwood, finished on
seven under, tied for sixth.
“Overall I felt like I’ve been hitting
well and it’s just a matter of being
patient,” said Woods.
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