BUSINESS WITH PERSONALITY
EUROZONE
Issue 1,335 Friday 4 March 2011
OSBORNE RIPS UP
PLANNING RULES
POLITICS
▲
BY DAVID CROW
GEORGE Osborne is pushing for
sweeping changes to Britain’s plan-
ning regime as part of a package of
low-cost measures designed to kick-
start growth, City A.M. has learned.
He wants to make it much easier
for companies to obtain planning
consent for new projects – even if
they go against the wishes of local
residents – allowing them to expand
their businesses while also providing
a timely boost for the construction
sector.
The changes would also enable
ministers to fast-track large scale
infrastructure like nuclear power sta-
tions.
But the Treasury’s decision to try
to overhaul the planning system has
put it on a collision course with Eric
Pickles, the communities secretary. It
sits uneasily with his localism agen-
da, which aims to devolve control
over planning decisions to local com-
munities which are often resistant to
building projects.
One source close to the negotia-
tions said: “We’ve had lots of meet-
ings with ministers from the
Department for Communities and
Local Government (DCLG). We’re now
close to agreeing a pro-growth pack-
age.”
Osborne hopes the planning shake-
up will form the centrepiece of a
News Corp’s BSkyB bid could hit credit rating
▲
MEDIA
BY STEVE DINNEEN
NEWS Corp could have its credit rat-
ing cut if it is forced to bid more than
850p a share for BSkyB, according to
analysts at Jefferies.
Shares in the broadcaster closed
last night at a record 823p – far ahead
FTSE 100 ▲ 6,005.09 +90.20 DOW ▲ 12,258.20 +191.40 NASDAQ ▲ 2,798.74 +50.67 £/$ 1.63 unc £/¤ ▼ 1.17 -0.01 ¤/$ ▲ 1.40 +0.01
BRITAIN NEEDS MORE
YOUNG ENTREPRENEURS
PETER JONES’S NEW REPORT P21
George Osborne is unhappy with the business department’s ideas to boost growth
series of reforms designed to boost
economic growth without the need
for more government spending. He is
also likely to announce the scrapping
of some costly regulations, in a bid to
free up cash for investment as well as
various other supply side reforms.
An ally of the chancellor said:
“We’ll be explaining that Labour was
wrong to say that the only way to be
pro-growth is to spend loads of
money.”
of its pre-recession peak of 713p – on
the expectation of a much improved
offer from Rupert Murdoch, who bid
700p a share in September.
Standard & Poor’s said last year
that a bid of 840p may have a nega-
tive impact on News Corp’s BBB+ rat-
ing, which the firm is desperate to
maintain. Given higher earnings and
www.cityam.com
The measures will be contained in
a Growth Review, which will be
unveiled alongside the Budget on 23
March. The chancellor decided to
take control of the review because he
was unhappy with the quality of
ideas coming from Vince Cable’s
business department.
However, in a speech to a City audi-
ence last night, Cable insisted he was
fully signed up to the measures con-
tained in the review.
a reduction in debt at both firms,
Jefferies said this is now likely to
stand closer to 850p.
News Corp has been hit by a 10 per
cent appreciation in the pound ver-
sus the dollar. Jefferies said if News
Corp had hedged against exchange
risks, it may have been able to raise
the bid over 900p while “maintaining
Picture: REUTERS
Businesses have been disheartened
by the coalition’s approach to plan-
ning since it won power last May. It is
abolishing the Infrastructure
Planning Commission, which was set
up by the previous government and
was widely seen as a valuable bul-
wark against nimbyism.
Firms also complain that local
planning authorities are too focused
on the wishes of residents rather
than businesses.
reasonable leverage”.
But News Corp last night told City
A.M.: “We have not undertaken any
currency hedging related to the
BSkyB transaction.”
Murdoch’s firm yesterday escaped
the prospect of a lengthy
Competition Commission probe into
the takeover after offering to spin off
RATE RISE
TRICHET HINTS IT
WILL COME NEXT
MONTH P3
FREE
Howard
Davies quits
over Libya
▲
WORLD
BY ALISON LOCK
FORMER Bank of England deputy gov-
ernor Sir Howard Davies resigned as
director of the London School of
Economics yesterday over its links
with the Gaddafi family.
Davies, who was also the first chair-
man of the Financial Services
Authority, stepped down amid grow-
ing pressure on the LSE for accepting
a £1.5m funding pledge from a
Gaddafi family charity.
The university received £300,000 of
the money. The LSE also said it had
arranged a £2.2m deal with Libya’s
National Economic Development
Board to train diplomats.
Davies, who was paid $50,000
(£30,700) for advising the Libyan
Investment Authority in 2007, said he
was aware the LSE’s reputation had
“suffered”.
“There were risks involved in taking
funding from sources associated with
Libya and they should have been
weighed more heavily in the balance,”
his resignation letter said.
The university has launched an
independent inquiry into its relation-
ship with Libya and Gaddafi’s son Saif
al Islam. Davies’ resignation came
after the Treasury froze the assets of a
further 20 of Gaddafi’s top officials
yesterday including his two spy chiefs
and the head of his personal security.
The asset freeze now covers 26 Libyan
regime members and an estimated
£2bn of assets, government sources
said. The names are published on the
Treasury’s website.
Sky News.
The ruling has set the scene for a
battle between the Sky board and
News Corp.
Investors are pushing for a price of
more than 900p a share but sources
close to News Corp say it will not
budge from its valuation of 750p to
800p. FOCUS ON BSKYB BID: P6-7
Certified Distribution
03/01/11 till 30/01/11 is 97,465
 2 News
Why the young are feeling worse off
EDITOR’S LETTER
ALLISTER HEATH
FORGET about class war; we are enter-
ing a new era of generational wars.
There is a growing sense among
younger people that they won’t enjoy
as prosperous a life as their parents. It
is easy to understand such concerns:
powerful economic, technological,
demographic and political forces are
forcing the generations apart.
For a start, the old system of final
salary pensions is in terminal decline,
so younger people will have to work
longer than the cosseted baby-boom
generation, for an uncertain retire-
ment income. The property boom has
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Sports Editor Frank Dalleres
Art Director Craig Gaymer
Pictures Micha Theiner
Commercial
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Commercial Director Harry Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
HEDGE FUNDS HEAD FOR MALTA TO
ESCAPE REGULATION
Some of London’s biggest hedge fund
managers are shifting their opera-
tions to Malta in response to both the
rising costs of business and the grow-
ing regulatory burden in the UK. The
Mediterranean island is emerging
alongside traditional rivals to
London, such as Swiss towns Geneva
and Zug, as another European loca-
tion for hedge fund managers keen to
maintain flexible operating arrange-
ments – and avoid heavy tax bills.
TRUCKMAKERS IN BRUSSELS
ANTITRUST PROBE
Europe’s antitrust officials are investi-
gating allegations that some of the
world’s largest truckmakers have
fixed prices and delivery times for
more than a decade, in a probe trig-
gered by German truck group MAN.
In January, officials raided truckmak-
delivered a one-off windfall to mil-
lions of older people, while making it
harder for younger people to jump
onto the housing ladder. The cost to
students of university education, once
entirely provided at taxpayers’
expense, is rocketing. Older pension-
ers often earned a good living from
unskilled jobs; today, returns from
such occupations have collapsed, hit-
ting a large number of youngsters
failed by the school system. Last but
not least, pensioners are being largely
shielded from spending cuts, further
exacerbating the generational gap.
House prices increased fourfold in
the 20 years to 2007. Many owner-occu-
piers on modest incomes, including
pensioners who bought council hous-
es at a discount, made a fortune.
Wealth is thus often not synonymous
with a high income: 2.6 per cent of UK
adults are dollar millionaires – but
only 0.6 per cent of adults earn more
than £150,000 a year. Wealth has
accrued largely through capital gains
in the property market – younger peo-
Pension tax
bill rule eased
REGULATION
▲
BY ALISON LOCK
HIGH pension tax bills caused by a
cut in the annual allowance for final
salary pension schemes can be paid
directly out of individuals’ pension
schemes, Treasury financial secretary
Mark Hoban said yesterday.
The legislation will help high earn-
ers avoid the sting of a high tax bill in
April when the annual allowance
falls to £50,000 from £255,000.
Wealthy individuals, who are
expected to face bills running to tens
of thousands of pounds, will be able
to pay any sum higher than £2,000
from their gross pension income.
But tax experts said it would add to
the burden on pension schemes.
National Association of Pension
Funds senior policy adviser David
McCourt said it was “extremely disap-
ers’ offices all over the continent.
FOXCONN TO MOVE CHINA JOBS
INLAND
Foxconn Technology will transform
its south China manufacturing hub
into an engineering base and move
200,000 jobs to cheaper inland
provinces in a further sign that the
region’s days as a low-end production
centre are numbered. The world’s
largest contract electronics manufac-
turer employs 1m people in China.
BRAZIL CLAIMS IT IS FIFTH LARGEST
ECONOMY IN WORLD
Brazil has overtaken Britain and
France to become the fifth largest
economy in the world after reporting
7.5 per cent economic growth in 2010
– the fastest rate since 1986, finance
minister Guido Mantega said. Latin
America’s biggest economy grew last
year on the back of consumer credit,
investment and a government stimu-
lus package but was showing signs of
moderating.
ple won’t benefit in the same way.
While it is extremely bad news for
millions of younger people, two sub-
groups will nevertheless do well over
the very long-run even in the present
environment. Those with a superior
education – either through good for-
tune or through sheer effort – and of
course those whose parents have built
up housing wealth and who stand to
inherit vast sums of money.
University graduates earn 50 per
cent more than those with just a sec-
ondary education. The return on
investment for an individual obtain-
ing university education is around 10
per cent, higher than the return on
UK equities or housing in the last 20
years, estimates Deloitte’s chief econo-
mist Ian Stewart – some consolation
perhaps for recent graduates who can-
not afford a deposit.
To this I would add two crucial
caveats: what will increasingly count
is not any old university degree but
going to a good university and study-
ing for a good, rigorous qualification.
pointed” at the £2,000 threshold,
which would encourage higher
uptake of the scheme.
“These changes will add cost and
bureaucracy to what already is one of
the most complex pensions systems
in the world,” he said.
The Treasury also yesterday
launched a consultation on its Fair
Deal policy to protect pensions of
public sector employees transferred
to private contractors. It is a response
to concerns that expensive pension
payments deter contractors from bid-
ding for public sector work.
Financial secretary to
the Treasury Mark
Hoban said the reform
would give people an
incentive to save
ODDBINS CALLS IN FIREFIGHTERS AS
FEARS FOR SURVIVAL MOUNT
The future of one of the last remain-
ing independent off-licence chains
was in the balance after it emerged
that restructuring specialists have
been called into Oddbins. The compa-
ny said that it had called in advisers
from Spectrum Corporate Finance to
consider strategic options in light of a
“challenging retail environment”.
TWITTER FOUNDER SAYS FLOTATION
NOT EVEN BEING DISCUSSED
Twitter has dismissed speculation
that a fund run by JP Morgan was
seeking to buy a significant share,
saying that the microblogging service
would not seek additional funding as
it was already making money. Biz
Stone, Twitter’s co-founder, rein-
forced the company’s public stance
that it has no intention of launching
a stock market flotation soon.
Knowledge based industries that
require high levels of skill, including
finance and technology, have emerged
as a major source of high-paid jobs in
the modern, ultra-competitive glob-
alised world. Cognitive skills are espe-
cially valuable – but so are any useful
skills, from plumbing to high-level
cooking. People with good vocational
training ought, in many cases, to be
able to earn a lot too – we need a new
generation of technical colleges.
What else should be done? Young
people should save and invest as much
as possible, even if they can’t afford a
house. And they should try and
acquire the best, most marketable
skills possible – and invest in the right
kind of education. The government,
for its part, must tear up planning
rules to make it easier to build new
homes – and it must sort out the edu-
cation system. This won’t resolve the
crisis facing millions of younger peo-
ple but it would be a good start.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Philip Clarke, new chief executive of Tesco, is continuing with Leahy’s US push
Tesco backs Fresh & Easy
RETAIL
▲
BY ALISON LOCK
TESCO’S new chief executive Philip
Clarke is to continue the US expan-
sion strategy of his predecessor Sir
Terry Leahy despite ongoing losses in
the market, the group said yesterday.
Tesco said its Fresh & Easy brand
was opening two new stores in
California with a further ten due to
open across the state before the end
of April this year.
Clarke’s decision to plough ahead
ENDING TAX RELIEF WILL HURT RETAIL
One retailer with big online sales said
that clamping down on the so-called
low-value consignment relief (LVCR)
would be “an attack on business inno-
vation.” Tax experts also warned that
changes to the relief, which the
Government has hinted may be
included in the Budget, would hit
small businesses hardest and cost
more to implement than it could raise
in extra taxes.
FINANCIAL ADVISER FEES RULING
PROMPTS LOW COST FUND LAUNCH
Schroders has become the latest asset
management company to launch a
low fee fund. Following JP Morgan’s
decision to cut fees on one of its UK
equity funds, rival Schroders will
launch a low cost fund. The Schroders
Core UK Equity fund will be launched
on March 18, charging 40 basis points
a year, with no entry or exit fees.
CITYA.M. 4 MARCH 2011
NEWS | IN BRIEF
Wal-Mart ups its 2012 dividend
US supermarket giant Wal-Mart said it
would raise its dividend for 2012 by
20.6 per cent yesterday despite a year
of weak sales. The chain is to pay a divi-
dend of $1.46 (£0.90) per share in the
fiscal year ending in January 2012, up
from $1.21 this year. Wal-Mart said the
hike, which translates to a $5.2bn pay-
out to investors, was due to its strong
cash generation, with $10.9bn generated
in the past year. However, sales have
now declined for seven consecutive
quarters.
Air fares to rise on carbon costs
Rating agency Standard & Poor’s said
yesterday that air travellers may see
fares rise up to €40 (£34) from the end
of this year as airlines join the EU’s emis-
sions trading scheme. Additional costs
from the scheme are estimated to reach
€1.1bn in the first year alone as airlines’
carbon dioxide emissions are capped
and they must trade credits to meet any
excess. The agency said customers
would bear between €4.60 and €39.60
per flight at a €13 price for a tonne of
carbon. However, some forecasts have
said carbon could reach €75 a tonne.
with the stores is a key show of sup-
port for Leahy’s strategy for the chain,
which made a £95m loss in the six
months to the end of August. Fresh &
Easy currently has more than 160
stores but half-year sales were £247m.
It is not expected to turn a profit
until the 2012-13 financial year but
breaking into the US market is an
important long-term goal for Tesco.
Shore Capital analyst Clive Black
said this year would be critical to
determine whether Fresh & Easy was
on the path to profitability.
HCA INVESTOR WINDFALL
Bain Capital,Kohlberg Kravis Roberts
& Co., Bank of America. and the
brother of former Senate Majority
Leader William Frist are each in line
to make nearly $3bn from $1.2bn
investments in the 2006 leveraged
buyout of hospital chain HCA
Holdings. The gain—about 250 per
cent over five years that were trying
for the economy and health-care com-
panies—would amount to one of the
largest ever from a private-equity
deal.
BRAZILIAN FIRM IN FRAUD PROBE
Brazilian authorities are investigat-
ing a possible fraud at a São Paulo
financing company partly owned by a
Goldman Sachs vice president. The
Goldman executive, Cristiano
Camargo, 31 years old, now owns a
stake of less than 5 per cent in Porto
Forte, according to his lawyer.
CITYA.M. 3 MARCH 2011 News 3

Euro surges after ECB’sTrichet

hints of rate rise next month
“prepared to act in a firm and timely pared for the move.”

▲
EUROPEAN ECONOMY
BY JULIAN HARRIS
THE euro jumped to a four-month
high against the dollar yesterday,
after European Central Bank (ECB)
President Jean-Claude Trichet
dropped hinted that interest rates
could rise soon.
Despite holding rates at one per
cent for now, Trichet said “strong vig-
Jean-Claude Trichet said “strong vigilance” was needed Picture: PA ilance” was warranted, with the ECB
manner” to suppress inflation.
In previous years the ECB has used
the term “strong vigilance” in the
month before a rate hike.
“The re-financing rate looks almost
certain to go up to 1.25 per cent on 7
April,” commented Ken Wattret of
BNP Paribas. “It’s not quite a done
deal, but barring a radical turn of
events over the next month, the
ground has been well and truly pre-
Trichet’s comments caused the
euro to soar to more than $1.395.
Data earlier this week showed
Eurozone inflation running at 2.4 per
cent in February, a 28-month high.
The single currency area seems to
be recovering well, according to other
data released yesterday. GDP for the
final three months of the year was
confirmed at 0.3 per cent, with broad-
ly based growth.

Scrap dozens
of tax reliefs,
Osborne told
far from CGT for individuals, saying:
▲

REGULATION
BY JULIET SAMUEL
INCOME tax and national insurance
tax should be merged and dozens of
tax allowances abolished, according to
recommendations published by the
Office of Tax Simplification (OTS).
The OTS, convened in July by chan-
cellor George Osborne to overhaul the
UK’s increasingly complex tax system,
has suggested that the Treasury get rid
of 47 tax reliefs that it says cost the UK
more in “administrative burden” than
they benefit their recipients.
It suggests replacing national insur-
ance and income tax with a single
levy, pointing to instances where
employers are forced to apply different
reliefs to each tax for single employees.
“The mismatch between the rules is a
major cause of complexity,” it says.
The report adds that a range of
reliefs on inheritance tax could also be
done away with if the Treasury simply
reviewed “the tax as a whole”.
Abolishing inheritance tax was a key
pledge in the Conservative manifesto,
but was dropped during coalition
negotiations.
And it adds that capital gains tax
(CGT) for companies has diverged too
“The existence of two different
regimes can cause confusion for tax-
payers as well as for smaller firms of
advisers.”
Despite its wide-ranging recommen-
dations, however, the report only
examined a fraction of the UK’s 1,042
taxes that it identified last year. Citing
a lack of resources, the OTS narrowed
its scope to look at just 155 reliefs,
rather than performing a holistic eval-
uation of the whole tax system.
In particular, it excluded many cor-
porate taxes. Neal Todd, a tax partner
at law firm Berwin Leighton Paisner
said: “The business community will be
disappointed that the OTS has not
been as bold in its proposals for the
corporation tax system, despite the
fact that over 80 per cent of corpora-
tion tax is paid by the top one per cent
of companies.”
Some of the other reliefs that could
be for the chop if Osborne accepts the
recommendations include relief for
expensing late-night taxis home from
work, relief on provision of meals for
employees on designated “cycle to
work” days”, miners’ coal allowances
and reliefs for divers and diving super-
visors.

BBA: US bonus rules less onerous

and expensive than EU laws
years and include clawback clauses.
▲

BANKING
BY JULIET SAMUEL
RULES regulating bonuses in the US
are substantially less onerous than
equivalent UK rules introduced in
January, according to the British
Bankers’ Association.
The framework for the US rules,
released by the Securities and
Exchange Commission (SEC) on
Wednesday, state that financial insti-
tutions must provide a description of
their pay plans and explain why they
will not result in a “material financial
loss”. Institutions with over $50bn in
assets must also defer 50 per cent of
executives’ salaries over at least three
But the rules are not nearly as
detailed as those introduced by the
FSA under an EU mandate, and apply
only to “executive officers” rather
than thousands of financial staff as in
the UK.
Irving Henry of the British Bankers’
Association, an industry group, told
City A.M.: “The US rules are far less pre-
scriptive than the EU rules. It’s a lot
less bureaucratic: you don’t need an
entire internal rule book. It’s less time-
consuming and less costly.”
The disparity will raise concerns
that British firms could lose out in the
fierce competition for talented
recruits.
CITYA.M. 4 MARCH 2011
Kwik-Fit unit to make £192m Shire receives European
M&A
▲
BY JULIET SAMUEL
EUROPEAN private equity firm PAI
Partners is expected to make £192m
from its sale of Kwik-Fit to Japanese
conglomerate ITOCHU, a deal first
revealed by City A.M. on Wednesday
(see right).
PAI, which was being advised by
Morgan Stanley and Credit Suisse,
signed off on a £637m sale of Britain’s
biggest tyre retailer to ITOCHU on
Tuesday, including £457m of debt.
ITOCHU was being advised by
Aviva hints at
disposals as
profits surge
INSURANCE
▲
BY ALISON LOCK
INVESTORS welcomed Aviva’s fore-
cast-beating results yesterday as the
insurance giant reported a 35 per
cent jump in pre-tax profit.
Achievements included eliminat-
ing its £1.7bn pension deficit in the
year, and returning its net asset value
to a £12.8bn pre-crisis level.
Aviva said its 2011 strategy was “to
concentrate on the markets where we
have strength and scale” and chief
executive Andrew Moss hinted at dis-
posals in less profitable markets.
“We are going to focus on and
invest in 12 key markets; on the posi-
tive side, you will see that investment
in those markets,” he said. “It will
mean de-emphasising certain other
markets and, over the course of the
next 6-12 months, I think that will
become clear.”
Keefe, Bruyette & Woods analyst
Greig Paterson said its US business
“will likely be sold” as it looked like
an “in-demand asset”.
Nomura.
IROMO P17
PAI originally bought Kwik-Fit from
rival private equity firm CVC Capital
0y,t0he0UK0’s
com
Partners in 2005, when it paid £800m.
But the sell-off of separate entities
within the retailer since then make
the venture a profitable one.
Shortly after buying the auto shop
chain, PAI sold off its stores and re-
es last year
leased them in order to refinance its
original purchase. It then sold off
Kwik-Fit’s insurance business last year
for £215m, before selling the last part
of the retailer this week.
PAI declined to comment.
Aviva’s pre-tax profit hit £2.4bn
from £1.8bn in 2009, while IFRS oper-
ating profit rose 26 per cent to £2.6bn
from £2bn, boosted by strong UK
growth and cost-cutting.
Net asset value per share rose 21
per cent to 454p from 374p in 2009,
while its 55.1p earnings per share
came in well ahead of the 50.5p earn-
ings per share market forecast.
Aviva shares closed up 1.69 per cent
at 457.3p. “On virtually every valua-
tion methodology Aviva appears very
attractive compared to its peer
group,” said Panmure Gordon analyst
Barrie Cornes.
ANALYSIS l Aviva
480
p 457.30
470 3 Mar
460
450
440
430
420
410
400
390
380
370
23 Dec 12 Jan 01 Feb 21 Feb
News 5
SUCCES
PAID LESS T
NON-UK STAFF P3
approval for Firazyr drug
FREE
Japanese
sales of $150m (£92m) to $200m a
▲
PHARMACEUTICALS
snap up SHARES in Shire leapt 2.6 per cent to
year, analysts said.
Shares in the drug company closed
Kwik-Fit a near all-time high yesterday on the up 44p at £17.63.
b EXCLUSIVE
news that European regulators The rare disorder, which targets
▲
BY JULIET SAMUE
L approved its Firazyr drug for self- the body’s immune, system causes
Kwik-
est tyre retailer, con-
BRITAIN’S larg
Fit, has been
glomerate, ITOC
HU Corporat
nese
sold to a Japa ion, City administration by sufferers. swelling, particularly of the face and
A.M. can reveal.
The deal, deta
ils of which
will be
icly this morning
fol- The treatment, for a rare heredi- airways, as well as abdominal cramp-
announced publ ing yesterday, sees
lowing its sign ate equi ty firm
European priv of its six-year owner-
PAI tary immunity disorder known as ing. Shire’s treatment allows Firazyr
Partners cash
out
auto repair
ship of the includes net debts of
h
chain for Quincke edema, now looked very like- to be administered using a pre-filled
£637m, whic
22 new aircraft £457m. ws a bidding
The sale follo December, with law
process ly to be approved by the US regulator syringe. The drug is licensed in 37
carriers at in
that kicked off McKenzie advising
& and has the potential to generate countries.
£2 5bn
firm Baker investment
banks
ITOCHU and and Credit Suisse run-
Morgan Stanley h h signed the
Insurer Hardy
takes a hit after
disaster losses
▲
INSURANCE
LLOYD’S insurer Hardy Underwriting
yesterday became the latest company
to report results hit by catastrophe
losses as its profit halved to £10m in
Aviva chief executive Andrew Moss will focus on key markets 2010.
Net tangible assets rose 1.5 per
cent to 270p per share, from 266p in
Impressive results that should give 2009, and it raised its dividend ten
per cent to 14.6p. Gross written pre-
miums increased to £279.4m from
the share price a much-needed lift £242m the previous year.
Chairman David Mann said an
“unprecedented level of internation-
al natural catastrophes” had hit prof-
AVIVA’s results and strategy update its 740p trading price in mid-2007. its, while “a surplus of capacity” in
should cheer investors for several In contrast, its peers are less than the market had prevented rate rises.
reasons. The winter weather that ten per cent short of their 2007 He also warned that new Solvency
has hindered other insurers’ results prices. Prudential has regained II capital requirements on insurers
didn’t even dent its £2.4bn pre-tax about 94 per cent of its former were driving rising costs in the firm.
profit. value while Legal & General has Chief executive Barbara Merry said
Its strength in life insurance and about an eight per cent gap. the global spread of disasters meant
commitment to cost-cutting are Aviva’s shares are rising: they Hardy’s property treaty reinsurance
welcome, particularly against a have gained 19 per cent over the account “incurred a greater frequen-
backdrop of new regulation such as past year and 11 per cent since the cy and severity of loss than a typical
the ban on using gender in insur- end of 2010. Lloyd’s account.”
ance calculations and higher capi- These impressive results may give Hardy said it had opened a new
tal requirements due in 2012. its stock the boost needed for fur- office in Singapore alongside its cur-
These results will also feed ther shareholder value to materi- rent London and Bermuda presence,
investor hopes of fixing Aviva’s long- alise. to access “the most important Asian
time share price shortfall. Analysts’ hub for reinsurance”.
consensus rating on the stock is a It added that its director of under-
“buy” – because at 457p today it is
still about 40 per cent cheaper than
BOTTOMLINE writing, Adrian Walker, is to retire
on 17 May and would be replaced by
Analysis by Alison Lock his deputy, Patrick Gage.
 6 News CITYA.M. 4 MARCH 2011

Trinity Mirror tanks after

costs outstrip its savings
▲

MEDIA
TRINITY MIRROR saw its share price
tumble more than 20 per cent yester-
day after it admitted that it will not hit
savings targets for the year.
The publisher pointed to inflation
and the rising cost of newsprint,
which will outstrip its cost-cutting
measures.
Despite tripling its pre-tax profit for
2010 from £42m to £123m, it said its
recovery will be “slow and volatile”.
Figures for the start of 2011 make
grim reading, with national advertis-
ing falling nine per cent year-on-year
and regional ads dropping 11 per cent.
Operating profit at its national titles
rose three per cent after margins
improved, although revenue fell 6.5
per cent, reflecting declining circula-
tions.
Chief executive Sly Bailey said:
“Although 2010 proved to be as chal-
lenging as expected, we made good
progress in rolling out our new operat-
ing model, integrating GMG Regional
Media and increasing profitability and
margin whilst managing extremely
volatile revenue trends throughout
the year”.
The stock closed down 21.7 per cent
yesterday at 66p.

Rupert Murdoch (centre) looks likely to eventually wrest control of BSkyB after culture
minister Jeremy Hunt (second from left) waved through any potential bid. If the takeover
goes through it could raise questions over who ranks higher; Sky chief executive Jeremy
Darroch (far left) or News International chief executive Rebekah Brooks (second from
right) . Both would report directly to James Murdoch (far right), the chairman and chief
executive of News Corp in Europe and Asia.

News Corp
wins right to
bid for BSkyB
▲

MEDIA pleased that News Corp has agreed in

BY STEVE DINNEEN
NEWS Corp yesterday won full
approval to bid for the 61 per cent of
BSkyB it does not already own.
Culture minister Jeremy Hunt
accepted an eleventh hour News Corp
concession that it would spin-off Sky
News into a separate, publicly-traded
entity, in order to counter media plu-
rality concerns.
Hunt said he accepted the terms
offered by News Corp after it
addressed a string of issues raised by
media regulator Ofcom.
The decision will save the bid being
subject to a lengthy Competition
Commission ruling that would have
lasted at least six months.
Hunt said: “The undertakings
offered would ensure that sharehold-
ings in Sky News would remain
unchanged, and indeed offer it more
independence from News Corp than it
currently has. Throughout this process
I have been very aware of the potential
controversy surrounding this merger.
Nothing is more precious to me than
the free and independent press for
which this country is famous the
world over.”
An Ofcom spokesman said: “We are
the proposed undertakings to place
editorial independence and integrity
at the heart of ‘NewCo’ and to under-
pin this with arrangements that
secure full independent governance.”
The decision was slammed by an
alliance of media owners who say the
move will give Murdoch too much
power. A spokesman for the group,
which includes Daily Mail publisher
Associated Newspapers, Trinity Mirror,
BT and the owners of The Daily
Telegraph, said it is now considering
challenging the ruling in the courts.
Vince Cable, who was axed from the
decision-making process after promis-
ing to “wage war” on Murdoch to an
undercover reporter, declined to com-
ment yesterday.
ANALYSIS l BskyB
800
p
823.00
3 Mar
770
740
710
2010 20 Dec 2011 17 Jan 31 Jan 14 Feb 28 Feb
CITYA.M. 4 MARCH 2011 Focus on News Corp bid 7

HOW SKY NEWS WILL FIT IN THE NEWS CORP WEB

BSKYB SHAREHOLDERS
What becomes
1 39.14% of Sky News
12.22% 2 post-takeover?
MEDIA

▲
3 7.74% IF News Corp goes ahead with its £8bn
takeover of BSkyB it has agreed to spin
off the loss-making Sky News channel
as an independent company, which
6.7% 4 News
will have its shares publicly traded.
As part of the deal, Rupert Murdoch
International has agreed to continue broadcasting
Sky News for at least 10 years and pro-
5 6% vide it with a “dowry” during this time
– thought to be around £30m a year –
to cover its losses.
It is understood News Corp will
retain a 39 per cent economic interest
2.81% 6 NewCo and 37 per cent voting interest in the
new company. News Corp would
license the Sky News brand and allow
the news channel to continue using its
7 2.24%
studios.
The company must remain under
News the same name for at least seven years.
Group After the decade is up Murdoch may
be allowed to buy the channel back.
2.16% 8 While BSkyB will continue to broad-
cast the channel for 10 years, it is not
an exclusive deal, opening up the pos-
sibility of Murdoch opening up a Fox
9 2.11%
News franchise in the UK.
The spun-off firm will have an inde-
pendent non-executive chairman,
while the board will have a majority of
independent non-executive directors.
Newswire
2.08% 10 The board will also have approval of
the hiring and firing of the editor of
Sky News.

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 The Capitalist
8 CITYA.M. 4 MARCH 2011
SNOW’S THE STAIR MASTER IN
THE RACE OF THE THOUSAND STEPS
HERE’S a story with legs: the results
of the third annual Vertical Rush
race up the 920 dizzying steps of City
skyscraper Tower 42 in aid of hous-
ing charity Shelter.
Setting off in hourly slots, 1,200
chip-timed runners – including rac-
ers from Legal & General, Schroders,
Threadneedle, Tullett Prebon and
KPMG – vied to see who could scale
the stairs in the fastest time, with
It’s too big to miss!
0 er
2
up
to
On flights from 30 March to 13 July 2011
Sale Ends
Tuesday 8th March
Available to book now until midnight on 8 March 2011. Offer valid for travel from 30 March to 13 July 2011 inclusive.
Prices, although discounted, may rise during the promotional period. Variable charges for hold baggage apply
and some payment methods attract a handling fee. See website for details.
Graeme Newton from Tullett Prebon
reaching the top in seven minutes
and 11 seconds and Hugo Joyce from
Schroders clocking in at eight min-
utes and two seconds.
However, they were no match for
Matt Roberts, personal trainer to the
rich and famous, who “pushed his
physical capabilities to the limit” to
reach the top in just six minutes and
44 seconds, before Channel 4 News
t,
y s ea
ever y route,
ever y day.
%
v
e You can follow their exploits at
of f
EDITED BY
HARRIET DENNYS
GOT A STORY? EMAIL
thecapitalist@cityam.com
broadcaster Jon Snow had even tied
his shoelaces.
When Snow did eventually reach
the top, five minutes and 13 seconds
later, he declared that the UK’s
largest tower-running event is on a
par with tackling election nights
and conducting heated debates with
members of Parliament. “I’ve cer-
tainly come across some challenges
in my career,” he said. “But never
Jon Snow reaches new career heights at Tower 42
had I imagined I would attempting
to race up nearly 1,000 steps in
record time.”
NOTES ON A SCANDAL
WITH a month having passed since
former Dresdner Kleinwort banker
Christian Littlewood was given the
UK’s longest-ever sentence (40
months) for insider dealing, it’s odd
the FSA still hasn’t acknowledged his
misdemeanours.
The FSA’s website (www.fsa.gov.uk/
register) would seem to suggest that
Littlewood has no disciplinary record
worth mentioning, despite being con-
victed of buying shares in companies
Christian Littlewood: inside knowledge
just prior to takeover announcements
more than 20 times in ten years.
Littlewood is clearly a man who
likes to play his cards close to his
chest, judging by the fact that his
LinkedIn page shows him acquiring
just one solitary connection during
his time at Dresdner.
It’s not his wife Angie,
whom Littlewood chival-
rously attempted to
blame for the insider
trading scandal, so
who could it be?
TAXI!
AS insurance
firms digest the
implications of
the European
Court of Justice
decision that they
can’t reduce premi-
ums for safer female
drivers, there is at least
one feminist for whom
the controversial ruling
simply doesn’t apply.
Labour’s deputy
leader and chief gender
warrior Harriet
Harman was at a
Westminster lunch for
political reporters yester-
day when she declared:
“I’ve been paying twice as
Pictures, REX, Micha Theiner, LNP
much on my car insurance for
years and I can’t work out why!”
Harman was poking fun at herself
because she was, in fact, fully aware
that the premium hike came after a
little incident in 2009 when she was
so busy chattering on her mobile that
she crashed her car and, in her hurry,
failed to leave her details at the scene.
Instead, she proclaimed: “I’m
Harriet Harman – you know where
you can get me!”
Luckily, discrimination against
politicians is still very much allowed –
even after the ECJ’s interventions.
ON YOUR BIKE
IS there anybody left working at their
desks in the City these days? The
Capitalist only asks because the start
of spring seems to have inspired the
financial world to up sticks and set
off around the world by bicycle.
Brett Seychell, who has been the
general manager of the Abacus bar
on Cornhill for the past three years, is
turning his back on working for the
busiest bar in the City to cycle from
London to Melbourne with his girl-
friend Kimmi.
www.thekindnessofstrangers.net, the
website for the private charity they
have set up. But if you would like to
take a more active role, Matthew
Whitaker, programme manager from
Barclays, is looking for volunteers to
join him on a bike ride from Hyde
Park corner to Christchurch to raise
funds for the victims of the New
Zealand earthquake.
Christchurch, Bournemouth, that
is – to ride, help or sponsor the 110
mile feat, contact Matthew on
mattheww_nz @yahoo.co.uk.
£100K DAY
ANOTHER fundraiser for the
New Zealand earthquake
victims is the all-star chari-
ty rugby game between
the Pacific Barbarians
and an Australian XV
this Sunday at the Old
Deer Park in
Richmond.
Bookmaker Paddy
Power is sponsoring a
“half-time cross-bar”
challenge at the game,
when two people from the
crowd who have bought raf-
fle tickets will be selected
to drop-kick from 40
metres for £100,000.
If the punters hit the bar,
they win the jackpot and the
drinks are on them for the rest
of the day – not bad at all for 15
minutes of work.
CITYA.M. 4 MARCH 2011
AB InBev toasts volume rise
▲
CONSUMER
BY HARRY BANKS
COST cutting and drinkers in key
markets splashing out on more
expensive beers helped AB InBev to a
strong performance over the past
year.
The world’s largest brewer said
total sales for the year grew by 4.4 per
cent to $36.3bn (£22.3bn).
Despite a continuing decline in its
US home market, the company’s flag-
ship Budweiser brand posted its first
increase in global volumes for two
decades.
AB InBev said the increase was
JJB launches
life-saving
rent cut plan
▲
RETAIL
BY JOHN DUNNE
STRUGGLING sportswear retailer JJB
Sports is offering its landlords a share
of up to £7.5m if they back its rescue
plan.
The company, in which America’s
richest man Bill Gates holds a 5.5 per
cent stake set out the details of its sec-
ond company voluntary arrangement
(CVA) in as many years.
It needs creditors, including land-
lords, and shareholders to back the
plan or it will likely go into adminis-
tration, threatening 6,300 jobs.
JJB wants to close 43 stores by April
2012 and have the option of closing a
further 46 stores by April 2013, pay 50
per cent less rent on these 89 proper-
ties prior to closure and pay rent
monthly rather than quarterly on all
stores.
It would retain a core group of 150
stores. The CVA terms provide for an
additional payment to landlords of
between £2.5m and £7.5m, to be paid
in cash or JJB shares in April 2013.
“In formulating these CVA propos-
als we have talked to our landlords
and listened to their views. As a
result, we are offering them a possi-
ble share in the value of a restruc-
Carrefour and Ahold struggle to win
over investors as market gets tough
▲
RETAIL
BY HARRY BANKS
EUROPE’S biggest retailer Carrefour
and Dutch peer Ahold, struggled to
convince investors yesterday with
steps aimed at boosting their share
prices against tough trading condi-
tions.
Carrefour, hit by two profit warn-
ings last year, detailed plans to spin
off discount chain Dia and 25 per
cent of its European property arm.
thanks in part to the brand’s sponsor-
ship of the 2010 World Cup.
Beer volumes were up in the UK for
the year, partially offsetting declines
in North America and Western
Europe. Overall volumes were up 2.1
per cent throughout the year.
The performance was boosted by
cost savings of $620m which the com-
pany said were generated by the
merger of Anheuser-Busch and InBev
in 2008.
“Much has been accomplished
since the combination of Anheuser-
Busch and InBev two years ago,” the
company said in a statement.
“With our integration now com-
tured JJB,” said chairman Mike
McTighe. Prior to yesterday’s update
shares in JJB had lost 89 per cent of
their value over the last year.
It was also revealed yesterday that
activist investor Crystal Amber is
receiving a £580,000 payment in
shares for bringing in new investor
Investec to JJB. Investec now has a 22
per cent stake in the retailer.
JJB’s CVA proposals need the back-
ing of 75 per cent of unsecured credi-
tors and 50 per cent of shareholders
at meetings set for 22 March.
There has been landlord hostility to
its plan, with some arguing that they
are being unfairly treated.
Last month JJB raised £31.5m in a
share sale that represented a first step
towards survival.
ANALYSIS l JJB Sports
30
p
17.75
20 3 Mar
10
2010 20 Dec 2011 17 Jan 31 Jan 14 Feb 28 Feb
It believes this will allow it to focus
on turning around its European
hypermarket business and expanding
in fast-growing emerging markets,
while also unlocking value for share-
holders from its real estate business.
However, Espirito Santo analysts
described the plan as “cosmetic spin”
and were disappointed by the lack of
detail in the French group’s forecast
to grow sales and profits this year.
Ahold, which runs Dutch market
leader Albert Heijn but makes about
plete, we have a solid platform in
place to take advantage of the excit-
ing opportunities we see for sustain-
able profitable growth in a global
marketplace.
“Our financial results for 2010
showed very good progress in spite of
the persistent challenging economic
environment in several of our mar-
kets.
“However, there are several areas
where we know we can still make
progress.”
AB InBev said it would double the
dividend it was paying shareholders
as a result of the performance over
the year.
Keith Jones is hoping to steer JJB to safety
RICHARD FLEMING
KPMG
HEAD of restructuring at KPMG
Richard Fleming is advising JJB on the
company voluntary agreement (CVA)
aimed at stopping the beleaguered
company plunging into administration.
He has been at KPMG since 2003
and has steered a number of compa-
nies through choppy financial waters
including Blacks Leisure. Fleming and
his team successfully pulled off the
60 per cent of its sales in the US,
announced a bigger-than-expected
programme to buy back €1bn
(£858m) of shares over 18 months,
and hiked its dividend. But it also
missed forecasts with a 14 per cent
drop in fourth-quarter operating prof-
it to €295m, saying it failed to pass on
the full effects of higher food prices
to cash-strapped shoppers.
Ahold reiterated its long-term goal
to grow both net sales and margins
by five per cent.
Consumer News
Howden sees sales of its
kitchens serve up profit
▲
CONSUMER
BRITISH kitchen supplier Howden
Joinery said it was confident of win-
ning more market share in 2011 as its
business model focused on small
builders makes the best of a tough
market.
The firm, which supplies kitchen
units to over 200,000 small builders
from 489 UK depots, beat forecasts
with a 47 per cent rise in 2010 profit.
It said current trading was robust and
outlined a plan to resume dividends
first JJB CVA in April 2009 and he
was upbeat about the chance of the
latest version being approved by cred-
itors. He said: “Whichever way you cut
it this is the best option available. If
the company goes into administration
the creditors will receive less. I think
that is clear.”
He said that, unlike with adminis-
tration, the company’s shares continue
trading during the negotiations which
makes CVAs a delicate process. He
added: "While CVAs have come in for
criticism, we believe they offer a more
socially responsible alternative for
companies in distress.”
He added: “They keep more of a
business’s operations intact and more
of the workforce in jobs.”
NEWS | IN BRIEF
Lego builds on UK success
Toy brick maker Lego yesterday
announced booming sales figures as its
new Harry Potter figures gave the comp-
any a boost. The Danish group says 2010
profit before tax rose by 63 per cent to
£563m, while sales were up 32 per cent
to £1.8bn. It says it is now the
fourth?largest toy manufacturer with a
global market share of 5.9 per cent.
In the UK sales grew by 48 per cent last
year. Marko Ilincic, the UK managing
director, said: “Lego UK has enjoyed phe-
nomenal sales over the past year. While
it was fantastic to see sustained growth
within our classic product lines, we were
equally delighted to see our new Lego
Harry Potter products further consolidat-
ed our market position.”
9
in the current year, disappointing
those who had hoped for a payout on
last year’s profit.
“The market, the way it’s shaping
in its complexity with peoples’
requirements for a working kitchen,
is moving our way,” chief executive
Matthew Ingle, who founded
Howden Joinery in 1995, said. “Are we
immune from a downturn? No we are
not, but we have access to more of the
markets doing it our way than I think
perhaps people are aware of,” he
added.
Danish firm
ISS reveals
listing price
▲
SERVICES
DANISH outsourcing firm ISS has priced
its proposed $2.5bn (£1.5bn) initial pub-
lic offering (IPO), in one of the biggest
listings in Europe so far this year.
The company, one of Britain’s biggest
providers of public sector services, plans
to issue as many as 133m new shares to
raise 13.3bn Danish crowns (£1.5bn),
valuing it as highly as 26.7bn Danish
crowns.
It will use the cash to pay down debt
owed to its private equity backers –
Goldman Sachs and EQT, the invest-
ment vehicle operated by Sweden’s
Wallenberg family.
A secondary placement of 4m shares
will also be made by the pair.
ISS yesterday revealed a price of
between 100 and 135 Danish crowns per
share, which will help to reduce its net
debt from 33bn Danish crowns to 18bn
Danish crowns.
The firm, which counts hospital
catering staff and cleaners among the
41,000 people it employs in Britain, is
planning to list on Copenhagen’s
Nasdaq OMS exchange on 18 March.
Chief executive Jeff Gravenhorst said
it was the “right time” for a listing. He
said: “Of course there are macro eco-
nomic concerns but mainly in the
Middle East, where we don’t know
what’s going to unravel or whether it
will impact. The company is ready and
market conditions are receptive. There
is a lot of appetite.”
Adecco sees temp jobs boost
Adecco, the world’s biggest temporary
staffing company, expects demand to
improve as employers seek flexible
labour to fill jobs in an uncertain recov-
ery. This year got off to a good start,
with sales rising 17 per cent organically
in January from a year earlier, chief exec-
utive Patrick De Maeseneire said yester-
day. Temporary employment is seen as a
leading indicator for wider labour mar-
kets. So far, many employers have been
reluctant to commit to full-time hiring,
preferring temporary workers as a way
of staying flexible in case the recovery
falters. “The environment will stay
favourable for flexible labour”, Adecco
said. It said that unemployment would
remain high in developed economies.
 10 Economics CITYA.M. 4 MARCH 2011

NEWS | IN BRIEF
Bean unlikely to back a rate hike
Global unrest fears
as food prices rise
Inflation “may prove a little more persist-
ent” than the Bank of England’s forecasts
currently show, its deputy governor
Charles Bean admitted yesterday.
However, in a dovish speech, Bean gave

to hit a record high

little indication that he would vote for a
rise in interest rates next week.

Bernanke: Save during boom eras

Governments must stop overspending
during upturns in the business cycle,
Federal Reserve chairman Ben Bernanke
said yesterday. “Building an adequate COMMODITIES sparked riots in several countries.

reserve fund during good times may not
be politically popular, but doing so can
pay off during bad times,” he said.
Meanwhile, his Fed colleague Narayana
Kocherlakota endorsed Bernanke’s
accommodative monetary policy, arguing
it was “appropriate” for the US economy.
London property rent on the rise
Rental prices in London rose again in
January, the Royal Institution of
Chartered Surveyors (RICS) said yester-
day. Over two thirds more surveyors
expect rents to rise, than fall, in the com-
ing three months, RICS announced.
IP crucial for growth, says CBI
Robust intellectual property systems are
“critical” for the UK’s economic growth,
the CBI argued yesterday. “IP should be
considered one of our crown jewels,” said
CBI chief John Cridland.
▲
BY HARRY BANKS
GLOBAL food prices hit a record
high in February, the United
Nations (UN) said yesterday, warn-
ing that further oil price spikes and
stockpiling by importers keen to
head off unrest would hit already
volatile cereal markets.
Rising food prices are a growing
global concern, partly fuelling the
protests which toppled the rulers of
Tunisia and Egypt in January and
February, which in turn unleashed
unrest in North Africa and the
Middle East from Algeria to Yemen.
The UN Food and Agriculture
Organisation’s (FAO) Food Price
Index hit its second straight record
last month, driven by rising grain
costs and tighter supply to further
Global food prices rose 2.2 per cent to hit a fresh record high in February pass peaks seen in 2008 when prices
FAO economist Abdolreza
Abbassian said global food prices
are likely to remain close to record
highs until the condition of new
crops is known, adding that jumps
in the oil price could have a bigger
impact on grain markets, which
have seen benchmark US wheat
prices surge 60 per cent in the year
to March.
“Until we know about new crops,
that means waiting at least until
April, our view is don’t expect any
major corrections in these high
prices, expect even more volatility
now that oil has joined the crowd,”
Abbassian said.
Oil prices recently hit 2-1/2 year
highs, nearing records set in 2008,
with markets spooked on concern
that North African and Middle East
unrest would choke key supplies.

London Jogs No double dip but UK

Series faces weak recovery
Six fantastic jogs, one energetic city!
Distances range from 1-10km UK ECONOMY absorbed the news. And business expectations rose
▲

BY JULIAN HARRIS
For more information call 0808 100 2109 BRITAIN’S recovery looks set to be
or visit bhf.org.uk/londonjogs weighed down by sluggish
growth, the latest business surveys
suggest.
The economy is on course to
grow by 0.5 per cent this quarter,
according to Markit’s surveys,
rebounding from the snow-affect-
ed 0.6 per cent contraction in the
final three months of last year.
Yet much of the recovery is
from activity deferred by
December’s snow, “flattering” the
figure. Underlying growth is clos-
er to 0.2 per cent for the quarter,
Markit said.
Sterling fell 0.4 per cent against
the dollar yesterday, as markets
Services – the UK’s largest sector
-- grew last month, but at a slower
rate than in January. And stub-
born inflation continued to bur-
den the sector, with the rate of
price rises “only marginally” slow-
er than January’s peaks.
The purchasing managers’ sur-
vey, released yesterday, recorded
52.6 for business activity in the
service sector – still above the 50
no change mark, yet down from
January’s eight-month high of
54.5.
However, there were some posi-
tive signs for the near future, as
new business continued to rise.
Excluding January, this element of
the index was at its strongest
since June last year.
to 71.8, up from 68.3 in January
and 66.5 in December, as confi-
dence reached a nine-month high.
“Panellists commented on an
improvement in the economic cli-
mate and ongoing recovery,” the
report said.
Employment in the sector fell
again, but at 49.5 the index is
approaching parity, suggesting
the job losses will soon be cur-
tailed.
Input prices (64.8) continued to
reflect higher global costs, with
businesses reporting higher fuel
and food prices.
And some costs are filtering
through to consumers, with prices
charged increasing at an index
score of 52.8.

Jobs boost for US as service sector

expands for 15 consecutive months
another 20,000 to 368,000 for the of the year, up from 2.3 per cent in
▲

US ECONOMY
BY JULIAN HARRIS
GROWTH in America’s service
industries accelerated again last
month, it was revealed yesterday.
On another strong day of data
releases for the US recovery, the ISM
non-manufacturing index unex-
pectedly jumped to 59.7, from 59.4
in January.
Meanwhile, unemployment
claims continued to fall, while
©British Heart Foundation 2011, registered charity
in England and Wales (225971) and in Scotland (SC039426) there was also positive news for pro-
ductivity in the US labour market.
Initial jobless claims dropped by
week ending 26 February, from a
downwardly revised 388,000 the
previous week.
Ongoing claims declined to
3.774m in the week ending 19
February, down from 3.833m the
week before, as the jobs market
showed signs of recovery.
Non-farm payrolls, announced
today, could have increased by
250,000 according to Paul
Ashworth of Capital Economics.
And the Labour Department con-
firmed that productivity was up 2.6
per cent in the final three months
the third quarter of 2010.
Economic activity in non-manu-
facturing areas has now grown for
15 straight months, the Institute
for Supply Management (ISM) said.
Employment in the sector rose at
an index level of 55.6 in February,
up by 1.1 per cent on January.
Scores above 50 indicate
economic growth.
US services got a boost from
exports, according to the survey.
The export orders index jumped
to 56.5 from 53.5, while imports
held steady.
CITYA.M. 4 MARCH 2011
US unit drives Balfour profits The cost of a desk in the
▲
CONSTRUCTION
BY RICHARD PARTINGTON
CONSTRUCTION firm Balfour Beatty
saw its underlying pre-tax profits
jump to £319m last year.
The infrastructure and mainte-
nance group increased profits in the
year to 31 December 2010 by 20 per
cent, beating market expectations.
The strong improvement was bol-
stered by its acquisition of US firm
Parsons Brinckerhoff two years ago.
The consolidation of the profes-
sional services unit helped to boost
its full-year results for the first time,
accounting for 13 per cent of
Margin focus
boosts Taylor
Wimpey profit
▲
CONSTRUCTION
BY RICHARD PARTINGTON
HOUSEBUILDER Taylor Wimpey
improved its operating margins to post
an underlying annual profit ahead of
expectations.
Revenues remained flat for the con-
struction firm at £2.6bn in the year to
31 December 2010, whilst the number
of homes completed dropped to 14,272
from 15,166 a year earlier.
An increase in average selling prices
helped the builder to eke out
increased operating margins and pare
its losses.
Taylor Wimpey made a pre-tax loss
of £71.3m including exceptional items
of £146.4m, compared with a loss of
£96.1m a year earlier.
Discarding the exceptional items,
the group hit profits of £75.1m, well
above analysts’ predictions.
Market expectations had ranged
between £24.1m and £70m.
The construction group said it now
held a net debt of £654.5m, slashed
from £750.9m a year earlier.
The builder is in the process of
selling its Taylor Morrison opera-
tions in North America in order to
pay down debt and focus on its
domestic market.
CITY VIEWS: WOULD YOU CONSIDER INVESTING IN
AN ISA? Interviews by Maria Tadeo
DAVID PERRY |
PROPERTY MANAGER
“On the whole ISAs are a good
idea. Tax free
savings accounts
are a great way
to encourage
more people to
save, so it's defi-
nitely an option
I'd like to consid-
er in the future.”
growth.
Yet weak construction markets in
America and the UK also wiped off
11 per cent of underlying revenue.
Balfour Beatty’s order book
increased by eight per cent to
£15.2bn over the year, with £7.2bn of
work to be carried out in 2011.
Its average cash for the year was a
strong £435m, despite an unwinding
of negative working capital due to
lower construction volumes.
Management at the firm approved
a six per cent increase in dividend
payments on last year, giving a full-
year payout of 12.7p.
Analysts said the results showed
Potential buyers for the unit include
Canada’s biggest builder Mattamy
Homes and US firm Meritage Homes.
A sale could net Taylor Wimpey up
to £620m.
For the year ahead, the builder said
it expected volatile market conditions
driven by fluctuating house prices,
economic uncertainty and restricted
mortgage lending. It said it would con-
tinue to run the business cautiously.
Group chief executive Pete Redfern
said: “The significant improvement in
our performance during 2010 reflects
our disciplined focus on margin ahead
of volume growth.
“We now have the financing in
place to enable us to continue that
progress towards our aim of achieving
double digit margins in 2012.”
ANALYSIS l |Taylor Wimpey
40 p 40.70
38
3 Mar
36
34
32
30
28
26
2010 20 Dec 2011 17 Jan 31 Jan 14 Feb 28 Feb
NIGEL YEATMAN |
CB RICHARD ELLIS
“ISAs are a great way to save
money and invest tax free. You
keep everything
you earn on your
savings which is
always good.
This is something
I’d consider
investing in at
some point.”
News 11
strong progress could be made this
City hits £9,400 a year
year, despite potentially tough trad-
ing conditions.
Andy Brown, analyst at Panmure and a continued lack of supply push-
▲
PROPERTY
Gordon, said: “Its financial position ing rents up, DTZ said in its survey of
remains strong and the order book THE MOST expensive workplace in 121 business districts across the
provides good revenue visibility. the world is now in Hong Kong, world.
Immediate conditions remain knocking London’s West End from The UK property tax rating revalua-
tough, but the group expects to the top spot, according to figures tion was another added cost from
make further progress. We maintain from DTZ out yesterday. April 2010.
our positive stance.” The City of London has jumped to The West End is expected to be the
Balfour Beatty chief executive Ian become the eighth most expensive fastest-growing rental market in
Tyler said: “While we do not expect, location to run an office, with the Europe over the next five years with
in the short term, a meaningful cost per desk now £9,410 a year – a occupancy costs set to rise 5.1 per
recovery in the UK and US infrastruc- rise of 21 per cent on 2009. cent a year, compared to an expected
ture markets, we expect to make The surge in City office costs was four per cent annual growth in the
progress this year.” due to a revival in financial services City.
Shaftesbury
raises cash
to expand
▲
PROPERTY
LONDON landlord Shaftesbury yester-
day tapped investors for £102m in a
share placement to help fund acquisi-
Taylor Wimpey chief exec Pete Redfern eyes higher profit margins. Picture: Micha Theiner tions as more assets come up for sale
in its core West End market.
The real estate investor, which
ANALYST VIEWS: IS TAYLOR WIMPEY NOW owns more than 500 shops, restau-
rants and bars in the West End, said it
WELL PLACED FOR THE FUTURE? Interviews by Richard Partington had placed 22.7m new ordinary
shares at 450p each – a five per cent
discount to its Wednesday closing
KEITH BOWMAN | HARGREAVES LANSDOWN price.
“
Shaftesbury said opportunities to
buy property assets in West End loca-
Taylor Wimpey appears to be firmly on the road to recovery. 2011 is tions were increasing as the govern-
expected to be a further year of progress, supported by ongoing cost cutting, ment and local authorities sold
”
while more recently acquired lower priced land should contribute to the recovery assets, and as building sales delayed
in the company’s profit margin. by the global financial crisis returned
to market.
The firm said it has spent the
JOHN MESSENGER | RBS majority of the £149m raised during
“
its last rights issue in 2009 on acquir-
ing new buildings.
The group is in a stronger position to manage the land acquisition and “This placing will ensure we have
home sale process relative to recent years. In particular, this implies a more selective the financial resources to take advan-
”
land buying process aimed at maximising margin and value over volume – in essence tage of an acceleration in rarely avail-
allowing the landbank to determine sales output rather than vice versa. able long-term investments now
emerging, particularly in and around
Berwick Street,” said chief executive
RACHEL WARING | PANMURE GORDON Jonathan Lane.
“
JPMorgan Securities and Execution
Noble were the joint bookrunners for
There has been a lot of improvement over the last couple of years, specifi- the placing, equivalent to 9.99 per
cally in tightening up the balance sheet. It does appear to be in pretty good health at cent of existing Shaftesbury shares.
”
the moment, yet it still has highest level of gearing in the sector. If it did dispose its The group also said it was evaluat-
north American business it would hit normal levels. Watch this space. ing new long-term debt options to
bolster its capital structure.
Individual Savings Accounts surge in
popularity as interest rates stay low
second most popular choice with “The combination of continually
▲
INVESTMENT
almost half – 47 per cent – of respon- low interest rates and last year’s
INDIVIDUAL Savings Accounts (ISAs) dents investing in them. increase in ISA investment limits to
are still the most popular invest- They are particularly popular in £10,200 has certainly helped to boost
ment in the UK, remaining number the South East where over 60 per the popularity of equity ISA invest-
one for the fourth consecutive year, cent say that they have invested in ment,” said Darren Hepworth,
according to the latest research into this type of ISA. Trading and Customer Services
financial products. TD Waterhouse said the trend Director at TD Waterhouse.
Two thirds of people have invested from the survey was apparent in its ISA allowances are set to increase
in a cash ISA over the past year, ISA account opening activity, with again to £10,680 on 6 April, provid-
according to the annual investor new account openings having dou- ing investors with more scope to buy
confidence index by broker TD bled in the first few months of this shares and equity funds through
Waterhouse. year compared to the same period their ISA or diversify into interna-
Stocks and shares ISAs were the last year. tional markets.
 12 News
Profits up 60pc at Glencore
▲
COMMODITIES
BY JULIET SAMUEL
GLENCORE unveiled a trading update
showing a 60 per cent rise in pre-tax
profit yesterday, with the results par-
ticularly buoyed by rising prices for
metals and agricultural products.
The privately owned Swiss com-
modities trader is currently lining up
investors for an initial public offering
(IPO), with its chief executive Ivan
Glasenberg making a major presenta-
tion to analysts on Monday and
Tuesday in preparation for the float.
It is being advised by Morgan
Stanley, Citigroup and Credit Suisse,
BP cancels its
bonuses after
Gulf disaster
▲
ENERGY
BY MARION DAKERS
BP scaled back its staff pay-outs in
light of the Gulf of Mexico disaster
last year, according to its annual
report released yesterday.
Chief executive Bob Dudley, who
took the top job in October after Tony
Hayward stepped down, has not
received a performance bonus follow-
ing the Gulf spill, which killed 11
people and could cost BP up to
$40bn.
Chief financial officer Byron Grote
will get 30 per cent of his bonus, or
$207,000, to reflect strong perform-
ance in parts of the company not
linked to the Gulf spill.
Refining and marketing chief Iain
Conn also got a £104,000 bonus.
“While the tragedy of lost lives and
environmental damage remains fore-
most in everyone’s minds, the com-
mittee also wished to fairly
acknowledge the good business
results in many parts of BP, delivered
in the most testing of times,” said
remuneration chairman DeAnne
Julius in the report.
Hayward did not receive a per-
formance bonus but was paid £1.08m
on leaving BP – a years’ salary plus
Nord Gold unlikely to retry London float Rusal snubs Norilsk’s offer
this year as Severstal looks for growth to buy a 20 per cent stake
▲
MINING
BY MARION DAKERS
RUSSIAN mining and steel group
Severstal is unlikely to bring its Nord
Gold arm back to the market for
another IPO attempt this year, the
firm’s chief financial officer told City
A.M. yesterday.
“Definitely we believe we will come
back to the market when we are
ready,” said Alexey Kulichenko. “We
really need to focus on integrating
the company and showing to every-
although further banks could be
brought on to underwrite the deal,
which could be worth up to $60bn. As
City A.M. revealed in December, howev-
er, a large portion of its shares could
be taken to Hong Kong in a dual-list-
ing, rather than staying in London.
By the terms of bonds it issued last
year, Glencore must either float by
2013 or buy back its debt with a high
interest rate.
But it is expected to go public soon-
er rather than later to take advantage
of a benign commodities environ-
ment: its revenues swelled 36 per cent
last year to $145bn, with earnings
before interest and taxes of $5.29bn.
£30,000.
The firm trimmed its staff num-
bers by 600 to 79,700 during the year
as part of a long-term programme. It
said it dismissed 552 workers for
breaking its code of conduct last year,
up from 524 in 2009.
Excluding the Gulf disaster, BP’s
spill rate rose 44 per cent by volume
to 1.7m litres in 2010. The number of
oil spills of one barrel or more rose
from 234 to 261 during the year.
The firm said in its report that it
hopes to eventually restart opera-
tions in the Gulf of Mexico. The deep-
water drilling ban in the Gulf helped
pull production volumes down four
per cent to 3.82m barrels per day, the
company added. BP shares closed 1.4
per cent higher at 491.5p yesterday.
ANALYSIS l BP
510
p 491.50
3 Mar
490
470
450
2010 20 Dec 2011 17 Jan 31 Jan 14 Feb 28 Feb
body that we are able to deliver both
volume and value efficiency in the
business.”
Nord Gold, whose London float to
raise up to £622m was shelved last
month, is one of the few organic
growth stories in the group,
Kulichenko said.
“We were just not happy with the
market, their expectations of our
growth prospects, and we decided
that it didn’t reflect the value that we
were looking for,” he added.
Nord Gold would have joined the
The firm said that energy commodi-
ties trading was disproportionately hit
by “an unusually stable price environ-
ment characterised by surplus refin-
ery capacity and a weak freight
market”. Oil and coal are expected to
make a comeback this year, with oil
already at two-and-a-half year highs.
The weak energy trading was coun-
tered by higher volumes in grain due
to bad weather in Russia, Ukraine and
Australia.
Glencore also disclosed that it refi-
nanced its debt to the tune of $10.3bn
last year, including the issue of $3bn of
long-term bonds and $300m of contin-
gent convertible bonds (coco’s).
ANALYSIS l Oil companies in Arctic Russia
Gazprom: Yamal
Estimated reserves of 7.3bn
cubic metres of gas and
10.3m
tonnes of oil
BP and Rosneft: South Kara Sea
Estimated reserves of 10
trillion cubic metres of gas and
5bn tonnes of crude oil.
Total spends $4bn to tap
Novatek’s Arctic gas find
ENERGY
▲
BY MARION DAKERS
FRENCH oil giant Total has done a
$4bn (£2.46bn) deal to explore gas
deposits in the Arctic with Russian
independent firm Novatek, it
announced yesterday.
Total has signed up for a 20 per
cent stake in the Yamal liquefied
natural gas project, which contains
an estimated 802bn cubic metres of
natural gas and 31m tonnes of gas
condensate.
Total plans to spend $4bn on buy-
ing a 12 per cent stake in Novatek,
FTSE 100 had it floated, with a mar-
ket capitalisation of around £3bn.
Severstal hoped to use the funds to
fuel expansion and pay down its
debts.
The firm was one of four Russian
groups to pull out of London listings
last month.
FTSE-listed Severstal posted a
fourth-quarter loss of $352m
(£216.5m) yesterday to round off a
yearly loss of $577m, slightly ahead of
expectations, as discontinued opera-
tions hit the firm’s bottom line.
Share issue nets London
fire engine owner £16m
▲
SUPPORT SERVICES
THE OWNER of London’s fire engines,
AssetCo, has successfully raised £16m
through a new share placement in
order to tackle its debt problems.
The outsourcing firm, which main-
tains the capital’s fire engines, was fac-
ing serious financial problems and a
High Court winding-up petition.
However, the new placement of
160m ordinary shares, underwritten
by Arden Partners, will cut its bank
debts to about £3.9m by the end of this
Total and Novatek: Yamal field
Estimated reserves of 802bn cubic
feet of gas and 31m tonnes of gas condensate.
Shell (with Gazprom): Sakhalin
Produces average 15m barrels of oil a year
which both firms expect to rise to
19.4 per cent within three years.
Russian prime minister Vladimir
Putin was present at the signing cer-
emony near Moscow.
Total, which has operated in
Russia since 1989, is the latest oil
major to team up with a Russian
firm to gain access to Arctic explo-
ration.
State-owned oil firm Rosneft has
signed multi-billion dollar deals
with Exxon and BP this year to com-
bine the expertise of US and UK
firms with access to one of the last
known untapped oil deposits.
▲
COMMODITIES
THE board of Russian aluminium
giant Rusal yesterday rejected Norilsk
Nickel’s offer to buy out 20 per cent of
its shares, RIA news agency said, quot-
ing sources close to the Rusal board.
Last month, Norilsk offered to buy
20 per cent of its shares from Rusal
for $12.8bn, which would leave the
aluminium giant – majority owned
by tycoon Oleg Deripaska -- with a five
per cent stake. The deadline for the
offer is 4 March.
CITYA.M. 4 MARCH 2011
year.
The issuance leaves shares in the
firm massively diluted, with shares
closing down at 12p yesterday.
The chairman, chief executive and
finance director will now be changed.
Arden analyst Geoff Allum said:
“There are no problems with the oper-
ation of this company, the problem
has been with financial management
of its balance sheets. The share price is
going to shoot up now, if it doesn’t
recover pretty rapidly there are bid-
ders out there and they wont go away.”
NEWS | IN BRIEF
Tullow finds oil in Ghana
Shares in Tullow Oil rose 3.9 per cent
yesterday, among the top risers on the
FTSE 100, after the oil explorer
announced that it had found oil in excel-
lent quality sandstone reservoirs at its
well off the coast of Ghana. Exploration
director Angus McCoss said it is a highly
encouraging step towards the firm’s
goal of declaring the well commercially
viable later this year.
Kazakhmys forecasts flat sales
FTSE 100-listed copper producer
Kazakhmys forecast no output growth
this year after shutting mines to save
cash in 2009 and seeing fourth-quarter
production slide by 25 per cent. The
firm, which posted a 35 per cent rise in
revenue to $3.2bn (£1.97bn) on rising
commodity prices, said it will focus on
managing costs and working on growth
projects this year, as well as preparing
for a possible Hong Kong listing.
Churchill suffers licence setback
Churchill Mining shares were suspended
from AIM for most of yesterday ahead
of the news that an Indonesian tribunal
has supported a decision to cancel four
of the firm’s mining licences in the coun-
try. Churchill’s shares tanked 69.7 per
cent to close at 27.25p when reinstated
at 3pm, after it said it is working on an
appeal against the decision, insisting
that the ruling does not alter its legal
ownership of the licences.
GDF Suez expects bumper profit
GDF Suez raised its earnings forecast
for the year yesterday in light of its
recent merger of international business
with International Power, after report-
ing a forecast-beating €4.62bn
(£3.96bn) net income. Its revenues rose
5.7 per cent to €84.5bn on higher ener-
gy tariffs in its native France. GDF said it
plans to focus on emerging markets for
long-term growth.
Norilsk Nickel and Rusal could not
be reached for immediate comment.
Rusal’s decision to keep the stake
means that the marathon fight for
control of Norilsk Nickel between
tycoons Oleg Deripaska and Vladimir
Potanin will continue.
The next round is set for 11 March,
when Norilsk Nickel will hold an
EGM to elect a new board.
Deripaska controls 25 per cent of
the company through Rusal, while
Potanin holds the same amount via
his Interros investment group.
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 14 News CITYA.M. 4 MARCH 2011

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

Bank Of America Merrill Lynch
Matthew Koder will join Bank of America Merrill
Lynch as head of global corporate and invest-
ment banking for Asia Pacific in the summer.
Koder will report to Brian Brille, president of
Asia Pacific, and will be a member of the Global
Corporate and Investment Banking Operating
Committee. Koder has 20 years’ experience
working in investment banking and capital mar-
kets. Most recently, he worked at UBS as head
of Global Capital Markets. Prior to joining UBS,
Koder spent almost 10 years at Goldman Sachs.
management firm has appointed
Berry Asset Management Malcolm Cuthbert as director of wealth
The specialist private client wealth management, where he will work
alongside the newly appointed Richard
Fellows. Cuthbert will start in April.
Speechly Bircham LLP
The City law firm has appointed
Malcolm MacDougall as a partner to
head its private equity practice.
MacDougall, who joins from DLA Piper,
undertook two of the largest private
equity deals in the UK in 2010:
Sophos/Apax Partners and CVC Capital
Partners/Autobar Group.
Foreign & Colonial
Sarah Arkle and Nicholas Moakes have
been appointed to the Board of the
Foreign & Colonial Investment Trust as
non-executive directors. Arkle is vice
chairman of Threadneedle Asset
Management and Nicholas Moakes is
head of public markets at the Wellcome
Trust. Until 2007, Moakes was head of
the Asia Pacific investment team at
BlackRock Investment Management.
Ark Therapeutics Group
Russell Banks has been appointed to
the role of chief financial officer at Ark
Therapeutics Group. He succeeds David
Bowyer, who has returned to his native
Zimbabwe to take on a senior opera-
tional role in a Zimbabwean company.
Montello Income Fund
Andrew Wood has been appointed
head of fund distribution for Montello
Income Fund and its new alternative
fund distribution business Montello
Distribution. Wood previously worked
for large wealth and fund managers in
London and Zurich.
Mayfair Capital
The commercial property fund manager
has hired Sarah Bate as director of
research and James Feilden as assistant
asset manager. Bate joins from
Rockspring PIM and Feilden joins from
GVA, where he was a senior surveyor.

To appear in CITYMOVES please email your career

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

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

ANALYSIS l ITV ANALYSIS l Standard Chartered ANALYSIS l Whitbread

95 90.55 1,900 1,900 1,708.00
p 3 Mar p p
3 Mar
1,800
1,712.50 1,800
85 3 Mar
1,700 1,700
75

1,600 1,600
65
23 Dec 12 Jan 1 Feb 21 Feb 23 Dec 12 Jan 1 Feb 21 Feb 23 Dec 12 Jan 1 Feb 21 Feb

ITV STANDARD CHARTERED WHITBREAD

UBS rates the media company “buy” with a 12-month target price of 115p.
The broker says that the firm’s strong results on Wednesday benefited
from cost-cutting and a strong advertising environment, and forecasts five
per cent growth in the second half of 2011. UBS adds that while the firm
is focused on organic investment, an acquisition in production would com-
plete ITV’s turnaround story.
Nomura has upgraded the Asian-focused bank to “neutral” and has lifted
its target price from £16.90 to £17.70. The broker believes that Standard
Chartered’s double-digit revenue growth is sustainable this year, but notes
the risk of monetary tightening that could weaken growth. Nomura has
trimmed its 2011 full-year pre-tax profit forecast slightly to £6.955bn, and
expects 11 per cent cost growth during the year.
Standard & Poor’s rates the restaurant and hotel group “hold” with a tar-
get price of £17.90. The broker believes that the firm’s focus on value for
money positions it well to take on government work as well as business
customers. However, continued concerns about UK consumer spending is
likely to weigh on the share price, S&P adds, despite slightly better than
expected fourth-quarter results this week.

FTSE bounces on commodity Optimism on jobs

rebound as oil price weakens fuels Wall St rally
ing an oil discovery offshore Ghana. Airlines added 3.3 per cent as the for days when the market rallies, caus-

THELONDON “While the oil price remains high,

we believe the outperformance will
recently merged firm reported 8.2 per
cent growth in group premium traf- THENEW YORK ing some traders to be sceptical about
the durability of the rally.

REPORT
continue (for Tullow),” said Richard
Curr, head of dealing for CFD special-
ist Richard Curr.
He said Tullow stock was a “buy”,
REPORT
fic in February. About 7.81 billion shares traded on
Strong corporate earnings data in the New York Stock Exchange, NYSE
the services and engineering sectors Amex and Nasdaq, below last year’s
also helped market sentiment. daily average of 8.47 billion.

A
REBOUND by commodity with a target of 1,500p-plus in the Engineer IMI topped the risers The put-to-call ratio in the options

stocks fuelled strong gains by
the UK’s top share index yester-
day, as oil prices fell back on
hopes for a peace deal in Libya, easing
concerns over global demand.
The FTSE 100 was up 90.20 points
or 1.5 per cent at 6,005.09 at the close,
ending above the 6,000 level for the
first time since 21 February. It had
fallen in eight of the previous nine
trading days.
“The sun has come out today in
true ‘risk-on’ style, and after three
days of suffering, London’s headline-
index is trying to turn positive for the
week,’ said Will Hedden, sales trader
at IG Index.
Heavyweight energy stocks and
miners led the rally, two sectors that
have been hit recently by fears the ris-
ing cost of oil could derail a fragile
global economic recovery and damp-
en demand for commodities.
Brent crude fell below $115 (£70.64)
a barrel as the Libyan government
accepted a plan for a negotiated solu-
tion to the revolt in the North African
country, a spokesman for Libyan ally
Venezuelan President Hugo Chavez
said.
Oil explorer Tullow Oil was a major
gainer, up 3.9 per cent after announc-
coming weeks, though he recom-
mended “a tight stop loss to take into
account any oil-price-driven volatili-
ty.”
Xstrata was a strong performer
among the miners, up 2.6 per cent
after stakeholder Glencore reported
bumper profits.
But gold miners African Barrick
Gold and Randgold Resources missed
out on the sector rally as the price of
the precious metal fell, with recent
safe-haven-related demand softened
by the peace possibilities in Libya.
Gold also fell as the dollar dropped
back against the euro after European
Central Bank chief Jean-Claude
Trichet said the bank would exercise
“strong vigilance” over inflation, rais-
ing the prospect that it might lift
interest rates in Europe as soon as
next month.
Travel firms benefited from an eas-
ing in worries over fuel costs, with
TUI Travel adding 4.6 per cent.
TUI Travel was also boosted as
German parent TUI's board gave the
go-ahead for a possible initial public
offering of container shipping group
Hapag-Lloyd, raising hopes for a mop-
up bid for the British firm.
International Consolidated
board, gaining 6.6 per cent to 943p
after hiking its 2010 dividend by 29
per cent, while oil services company
AMEC closed up 5.4 per cent at 1,190p
after it posted a 27 per cent rise in
profits for the past year.
Weir Group was also up four per
cent at 1,770p.
US blue chips were up 1.4 per cent
by London's close, supported by the
easier crude price as well as by news
US weekly jobless claims dropped to a
two-and-a-half year low.
The jobless claims news came one
day after a similarly robust ADP
report on private sector hiring.
Taken together, the two could bode
well for Friday’s key February payroll
report.
ANALYSIS l FTSE
6,005.09
p 3 Mar
6,100
6,000
5,900
5,800
5,700
2010 20 Dec 10 Jan 24 Jan 7 Feb 21 Feb
I
NVESTORS betting on a big gain in
US payrolls pushed Wall Street to
its best one-day rally in three
months yesterday, but weak vol-
ume remained a concern.
As oil paused from its recent climb,
the market’s focus shifted to stronger-
than-expected economic data a day
before the February US employment
report. The median estimate is for a
gain of 185,000 jobs, according to econ-
omists polled by Reuters, but market
sentiment was leaning toward a num-
ber above 200,000, traders said.
“There are still concerns about high
oil prices but the bottom line is, the US
economy is improving. We continue to
get confirmations of that, and it’s a
good sentiment heading into Friday’s
numbers,” said Ryan Detrick, technical
analyst at Schaeffer’s Investment
Research in Cincinnati, Ohio.
The Dow Jones industrial average
closed up 191.40 points, or 1.59 per
cent, at 12,258.20. The Standard &
Poor’s 500 Index finished up 22.53
points, or 1.72 per cent, at 1,330.97. The
Nasdaq Composite Index was up 50.67
points, or 1.84 per cent, at 2,798.74.
The Dow and S&P 500 posted their
biggest one-day gains since December
1. However, volume was below average
market also didn’t change much
despite the day’s rally as traders con-
tinued to hedge against a potential
drop in the market.
“As much as investors are excited
about a pullback so that they can
jump in, they are just as concerned
about how quickly this market can
turn,” Detrick said.
Initial jobless claims fell last week to
368,000 – a two-and-a-half year low –
one day after a robust report on pri-
vate-sector hiring. The Institute for
Supply Management's non-manufac-
turing index rose to 59.7 in February,
slightly above forecasts and higher
than the January result.
Industrial stocks led the market
higher, boosted by a weaker dollar and
an improving outlook for global
demand. The S&P industrial index
gained 2.4 per cent, with Caterpillar
up 3.2 per cent to $104.25.
Stocks have shown resilience in the
face of economic headwinds. The
broad S&P 500 is down only about one
per cent from a peak in late February
after falling around three per cent due
to growing violence in oil-producer
Libya. The Arab League said yesterday a
peace plan for Libya was under consid-
eration.
 4 MARCH 2011 CITYA.M. 15

Wealth Management | Markets

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 Living
16 CITYA.M. 4 MARCH 2011

| Focus On

GUILDFORD, SURREY SELLING

BY AMY HIGGINS

EPSOM ROAD
Price: £179,950
Situated on the top floor of
a smart period property, this
one bedroom flat enjoys a
multitude of characterful
features including gothic-
style windows and a work-
ing fireplace. There is a large
HORNCASTLE
Price: £1.25m
Q&A
One of the oldest private
houses in Guildford, Martin Bikhit
Horncastle is the epitome of MANAGING DIRECTOR OF
Jane Austen-era elegance. CENTRAL LONDON ESTATE
This grade II listed red-brick AGENCY, KAY & CO
Georgian town house has
four double-bedrooms, sever-

Q.
I am looking to upsize but want
communal area outside, per- al drawing rooms and a to make sure I’ve found some-
fect for bbq-ing in the sum- walled garden with rose- thing else to buy before I put
mer, and all the amenities of beds and lavender bushes. A my property on the market. What do
the town centre are a short real one-of-a-kind. you advise?
walk away. Contact: Hill Clements on
Contact: 01483 300 300 or go to
A.
At present the prime central London
www.churchods.com www.hillclements.com market lacks fluidity and it is very
difficult to tie in a sale and a pur-
chase. You really need to put your property
NEED TO KNOW | AREA INSIGHT on the market first. Once you receive an
OLD WESTWICK acceptable offer, you can then start looking
Price: £3m in earnest for something to buy. If you find
COMMUTING: Trains to Waterloo take called La Casita. The Keystone pops up yourself in a position whereby you find a
A substantial Edwardian a reasonable thirty-five minutes. regularly in pub guides and is an unpre- buyer for your own home but have not found
house on one of Guildford’s
premier roads, boasting EDUCATION: The Royal Grammar for tentious pub with a cultural twist, hold- anything suitable yourself, remember, you do
boys, Guildford High School and ing art classes on its terrace, salsa nights not have to accept offers, but it will pay to
eight bedrooms and four have started the process when you do see
bathrooms. The imagina- Tormead for girls are all well-known. and even regular scientific debates.
George Abbot is the preferred state sec- LEISURE: The Spectrum Centre houses something you want to buy. Given the cur-
tively laid out garden rent shortages of stock many people are will-
spans just under an acre ondary, judged outstanding by Ofsted. a swimming pool, bowling alley and an ing to agree an exchange of contracts
and includes many fruit Buy in the north-eastern corner of town Olympic-sized ice rink, while the town followed by a delayed completion, giving you
trees, a pergola covered to ensure you are in its catchment area. centre boasts a decent art gallery and the certainty of having sold but a bit more
with grape vines and a CRIME: Rates are reassuringly low. several theatres. Adults and children time to find something to buy. Failing that,
vegetable patch. RESTAURANTS AND BARS: alike will enjoy roaming in the surround- temporary renting is a good and increasingly
Contact: Savills on 01483 Guildford’s cobbled streets serve up an ing countryside, which is packed with common option.
796 800 or go to impressive range of eateries including a aesthetically pleasing Arts and Crafts-

Q.
www.savills.co.uk buzzy tapas joint with budget prices style housing. My property was under offer to
a cash buyer but they reduced
their offer just before exchange.
We have since found a committed sec-
ond buyer who is having trouble get-
CURRENT MORTGAGE DEALS BY AMY HIGGINS Source: MoneySupermarket.com ting his mortgage finalised. The first
buyer has changed their mind again
Lender Fixed/Flexible Rate Until Standard Rate APR Maximum Loan and can exchange immediately. What
should I do?
(per cent) (per cent) (per cent) to Value (per cent)

A.
Sadly there is no guarantee that
First Direct Flexible 1.99 2 years 3.69 3.5 65 your existing buyer will actually get
his mortgage offer. Tell your original
Santander Flexible 2.19 2 years 4.24 4 60 buyers to do the following. One: Confirm that
they have no further enquiries. Two:. Confirm
HSBC Flexible 2.29 Term 3.94 2.3 60 that their solicitor is in receipt of a full 10 per
cent deposit to exchange contracts Three:
Yorkshire BS Flexible 2.29 April 2013 4.99 4.99 60 Then and only then, send them a contract
and advise them that they have until close of
NatWest Flexible 2.79 April 2013 4 4 60 business on the day they receive the contract
to exchange at the agreed price.
Santander Fixed 2.99 May 2013 4.24 4.24 60 Unfortunately your buyer will find out that
HSBC Fixed 3.09 April 2013 3.94 3.94 70 you are dealing with another party once any
“meaningful contact” is established with
Hanley Economic BS Fixed 3.7 May 2013 5.19 5.19 80 another buyer but by following these steps
you are putting the ball firmly in the original
Loughborough BS Fixed 3.95 3 years 4.99 4.99 80 purchaser’s court by only sending them a
contract once they have their ducks in a row.
Post Office Fixed 4.15 Jan 2014 3.99 3.99 80

PROPERTY NEWS
BY AMY HIGGINS

HOUSE PRICE OPTIMISM RISES
Nearly 50 per cent of people are “certain” house prices
will rise over the next ten years and 26 per cent are “cer-
tain” they will go up in the next five years, according to a
survey by LSE and estate agents John D. Wood. Home
occupiers were more confident than renters, perceiving a
rise in house prices of 3 per cent over the next twelve
months, compared to a perceived decrease of 1 per cent
by renters, the survey said.
LONDON PROPERTY BOOM
Investor interest in London property has almost reached
pre-recession levels, says the Rob Perrin, CEO of one of
Britain’s biggest homebuilders, the Berkeley Group.
International property investors plan to invest more than
£5bn in London residential property this year and over
£1bn has already been raised since the start of 2011.
Perrin noted a shift “as people move from protection to
investment mode”.
ESTATE AGENT’S CONFIDENCE IN WEST LONDON
Douglas & Gordon has opened a new sales and lettings
office in Notting Hill – the first office opening for the
company since the recession and a sign of belief in the
West London market. The office will be the first to fea-
ture an interactive “Microsoft Surface Table” – a kind of
giant iPad which clients can search for properties in the
area. 299 Westbourne Grove W11 2QA. ww.dou-
glasandgordon.com
EPC NOT RELEVANT
Energy Performance Certificates have no influence on four
out of five UK property buyers, according to Consumer
Focus, a consumer watchdog. The Certificates are
designed to help people cut their energy bills and land-
lords and home owners are legally required to provide one
when selling or letting a home. However, the vast majority
of buyers and tenants do not act on any of the EPC’s rec-
ommendations to make their home more energy efficient.
 Welcome
to Morocco
Welcome to
L’Amandier

Located less than an hour away from Marrakech including clubhouse, pools and tennis court, and ‘Outstandingly beautiful’ The Financial Times
International Airport and 10 minutes from Sir enjoy nearby activities such as skiing, horse riding, ‘House of the Week’ Wall Street Journal
Richard Branson’s Kasbah Tamadot and La trekking and climbing.
Roseraie, L’Amandier is a stunning development
situated on a plateau in one of the world’s most Less than an hour to the Oukaimeden Ski Resort,
spectacular locations. Each of the 15 spacious which is set to receive an Emirates investment
two and three bedroom villas blend exceptional of $1.4 billion to transform the resort into an
Moroccan craftsmanship with the latest design exclusive four seasons mountain destination.
aesthetics and modern conveniences. The villas,
ranging from 204sqm to 267sqm, are nestled From £319,000. 5% guaranteed return, 2 years.
in private landscaped gardens (from 1,260sqm) Rent paid annually in advance.
and boast private plunge pools and breathtaking
panoramic views of the snow-capped Atlas To receive the Investor & Lifestyle Report,
Mountains and valley below. please contact us:
T: +44 (0)20 7754 5563
Owners of L’Amandier villas benefit from year-round E: invest@mhkinternational.com
sunshine, a range of first class communal facilities www.lamandierr-mar
- oc.com

Stylish 2 bedroom/2 bathroom apartments

with secured basement parking less than
AT PAPERMILL PLACE
WALTHAMSTOW, E17
20 minutes from Liverpool Street & West End†
Ready for move-in now from £225,000*

• Rapid connections to the West End, The City & Stratford: Black Horse Road tube station on
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• Kitchen appliances & all floor coverings included
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*Price correct at time of going to press. Photographs depict Vellum exterior and showhome interiors. **For reservations placed by 6 March 2011 that legally complete by 30th March 2011. †Times are approximate and are courtesy of www.tfl.gov.uk.
th
 18 Living | Buying Abroad
A share in the world’s best cities
Two new urban property funds
offer culture vultures the best of
all worlds, says Zoe Strimpel
C
OMMITTING to a single property for
your holiday home may sound like
an imprudent investment in a mar-
ket that’s been through a few too
many bumps for comfort over the past few
years. Then there’s the fact that the world is
a big place and going back to the same
abode every time can sometimes feel a bit,
well, like a waste.
The solution? A property fund with a
portfolio of luxury apartments in the
world’s hottest cities that you can stay in
for a certain number of days per year for an
initial buy-in price of around £50-£120,000
(depending on share) and an additional
chunk of change for service charge.
Property companies Rocksure and the
Hideaways Club are two of the most promi-
nent to launch funds both for villas and,
more recently, urban apartments. Both
have a totally luxurious collection that
aims to offer more than five-star hotels do
at far less than the price per night.
Hideaways, which has villas in Barbados,
Thailand and the Alps, has recently
launched a City Collection, and Rocksure
has just closed on the first apartment for its
Capital collection. Nick Bettany, of
Hideaways, says: “We were responding to
growth in demand for short, cultural
breaks. Many people just don’t have time to
CITYA.M. 4 MARCH 2011
go off for weeks to a villa. These are two-
three bedroom apartments in the heart of
Champs Elysee and features vaulted ceil-
ings and masses of period detail, and the
the world’s best cities – it’s a very different
type of holiday.”
Vienna apartment is in the Ring and of
exquisite classical elegance. Same with
The city properties are spectacular –
Hideaways is acquiring bases in Miami,
Prague, Venice and Istanbul.
Rocksure’s offering is slightly different
New York, London, Paris, Florence, Rome, from Hideaways’. Its Capital fund has a life
Venice, Vienna, Prague, Istanbul and of 10 years and its city properties will be
Barcelona. It will expand to other cities too limited to Europe. Hideaways’ City fund, on
but will work towards having multiple the other hand, is unlimited in term and
properties in tried and true destinations offers properties worldwide.
such as Paris and New York – meeting Are such funds a good option, financial-
demand but also making investments ly? Desmond Patrick Smith, of Rocksure,
more stable. says cautiously: “It depends on property
Location and calibre are key – the idea is prices over the next 10 years.” Bettany is
to offer all that money can buy. The devot- more strident in his belief that not only
ed concierge is one element of which would your money be safe, it would grow
Hideaways is proud. And if you fancy own- well in a city fund. “It’s an asset-backed
ing a share in a dreamy period property in fund and it’s diversified, across geography
the absolute best area of the city, here’s the and currency. This is not a short-term
way in. Hideaways’ London property, for investment, it’s for the long term, and one
example, is a 1,900 squ ft penthouse over- that your children can enjoy.”
looking Kensington Gardens. The Paris www.thehideawaysclub.com
property is in the Golden Triangle by the www.rocksure.com
RISE OF THE URBAN PROPERTY FUND | WHAT THEY OFFER
HIDEAWAYS CLUB CITY FUND televisions and fully equipped ROCKSURE CAPITAL COLLECTION
l Up to £1.8m invested in each apart- kitchens lFull units from €115,000; half units
ment l Half share (Associate Membership) from €57,500. PARIS
l Properties will have a minimum of is £65,000 and gives you 12 nights a lFlats in Paris, Cannes, London, The Golden
two double bedrooms and bathrooms, year; whole share (Premium Barcelona, Marbella, Venice, Florence, Triangle, in the
king-sized beds with Egyptian cotton Membership) is £120,000 and offers Rome, Prague and Vienna. heart of Paris by
sheets, the latest high tech and audio 23 nights. Service charge is £5,300. lLife of the fund is ten years the Champs Elysee,
visual equipment, a DVD and book l Fund will close at 120 properties lFull unit investors get 14 nights a is a classic urban
library, wireless internet, flat screen and 1,200 members. year. Service charge: €2,100 per year. fund location.
Fabulous Docklands apartments
launching 5th March
Sales & Marketing Suite - 10am - 4pm
Province Square, London, E14
for further information and RSVP
enquiries@swannewhomes.co.uk
High quality 1, 2 and 3 bedroom apartments and
penthouses with exceptional views over the Thames.
Prices starting from £295,000
0800 542 7558
www.streamlightE14.co.uk
CITYA.M. 4 MARCH 2011 Living | Buying Abroad 19

Mega overseas property

fair comes to Earl’s Court
Don’t miss A Place in the Sun, says Zoe Strimpel

T
HE market may be gloomy, but there
are rays of light – especially if you’re
thinking of attending the twice-year-
VIENNA ly mega overseas property exhibition
You can expect a period apartment in the prestigious at Earl’s Court.
city-centre Ring of Mozart’s hometown. Perhaps not As usual, this month there are thou-
the Vienna Parliament, though (pictured above). sands of overseas properties for sale, from
hundreds of exhibitors from more than 40
countries. Homes range from £20,000 to
over £1m.
The fair will be especially strong on mar-
ket favourites and reliable options for
investment. There will be a Florida
Pavillion with plenty of focus on the
Sunshine State, a perennial favourite with
British buyers.
Don’t forget to drop by the French
Village – featuring a mix of agents and
developers specialising in French proper-
ties, with thousands of homes for sale A Place in the Sun is a ous Algarve in the south to Oporto in the
alongside a detailed seminar programme good place to start if north.
covering all aspects of buying and living in you’re interested in Andy Bridge, of show organiser APITS,
France. The Spanish Village focuses on a buying a property said this spring’s show is focusing on edu-
huge selection of “bargain” properties abroad. cation and information to help create the
across the Costa – so long as you approach better informed buyer. “Today’s overseas
LONDON it carefully, a smart investment in a prime property buyers are understandably more
areas of Spain should pay off. Finally, a cautious, and need better information
A view of Portugese Pavillion will be on hand in asso- before committing to a purchase.”
Kensington ciationg with the Portuguese Chamber of 2-for-1 early booking offer of 2 tickets for £15.
Gardens, below, Commerce, bringing together developers Single tickets are £10.Tickets bought on the door
isn’t bad, either. and legal experts to give an insight into all are £12 each. Children under 16 free. For more
that Portugal has to offer, from the glori- details, go to www.aplaceinthesun.com

This CGI is indicative only and may differ from actual, refer to sales staff for further information.
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 Business Features
21

| Entrepreneurs

Britain’s next generation needs to be

powered by entrepreneurial energy
The UK urgently needs to change aged to be enterprising and 52 per cent of
secondary school students said they were
“Our culture
doesn’t encourage
young people’s attitude towards primarily attracted to careers in the profes-
sions such as law, health and education. entrepreneurship or
This is bad news when 20 per cent of new celebrate it nearly
business, writes Donata Huggins graduates at the moment can’t find work.
enough.”
Jones thinks enterprise education is the
answer, but warns that the standard of

I
F WE had a thriving entrepreneurial
economy,” says Peter Jones, the former
BBC Dragon, “the speed we’d come
out of the downturn would be trans-
formational, but our culture does not
encourage it. We need to get serious
about inspiring young people to set up
businesses.”
He isn’t wrong about our culture.
Britain is lagging behind. We have
just 5.8 per cent of our population
engaged in the process of starting a
business, compared to 8 per cent in
the US, and 19 per cent in China. And
the latest YouGovStone research shows
that young people’s attitudes towards
entrepreneurship don’t offer us much
hope.
Only one in five school children sur-
veyed said they thought they were encour-
most business education available at the Peter Jones CBE
moment is low.
This is why his charity Enterprise UK has
launched the Tenner Tycoon campaign.
The campaign gives small groups of school
1 in 5
young people in the
kids £10 and a month to turn it into a prof-
it. “I want to give kids the practical expe-
rience of running a business. It’s how I
started,” Jones explains. He used to
UK are prepared to help out at his local tennis academy
from the age of 12, so by the time he
invest in starting a was 16 he was able to open his own.
business rather Jones says this is desperately needed,
than pay to go to not least because a bold one in five
young people said that they would rather
university invest in starting a business than going to
university. “We need to harness that ener-
gy,” Jones says, “if those kids all started
businesses think about how many jobs it
could create.”

SAMATA ANGEL | TOM MARCHANT | ROBERT WELCH |

BECAME A FASHION DESIGNER AGED 22 STARTED BLACK TOMATO AGED 26 STARTED SMALLCARBIGCITY AGED 24

“ “ “
I don't think people realise that becoming an entre- I got no encouragement at Nowadays, in
school you are

”
preneur is a legitimate career choice. ‘Entrepreneur’ school – my school was a
seems more like an adjective than a job title. high performing school in funnelled into
Birmingham and there was a standard corporate
careers service, but it was life, and the idea of
bent on you getting into a running your own

1 in 10 career like being a doctor or a business is saved for

lawyer, there was no embrac- the day-dreamers or
those people who

”
ing of the entrepre-
young people in the

”
neurial don't have a clue
UK said they don’t spirit. what they
are doing.
know anything
about business
51%
of young people
in the UK would
like to be their
own boss

TOM BEWICK | CHIEF EXECUTIVE AT ENTERPRISE UK 3% At school I got a lot of encouragement

to be entrepreneurial, such as starting
1 in 4 my own business

“ 12%
We need to face up
to the fact that our
young people in the UK
current educational said they had learned
model is broken. We used to
encourage young people to
more about business 17%
pursue further education
from the Dragons’ Den Strongly agree
because it was, on average, TV show than

%
Agree
the best means of getting a anything else
good job upon graduation. But Neither agree nor disagree
this social compact no longer
holds true, hence the current Disagree
record levels of youth and gradu-
ate unemployment. Moreover, Strongly disagree
the Browne Review of
Higher Education found position to start paying them back. I would
41% 27%
that up to 50 per cent argue we should be listening to the one in five
of young people tak- young people in our survey who said they

”
ing out loans in the would rather use the money to invest
new fees-based sys- in setting up a new business than
tem may never be in a going straight on to university.
Source: YouGovStone
 Lifestyle
22 CITYA.M. 4 MARCH 2011

| Reviews

Go off
Wizard
to see the

You can’t but enjoy this show,

albeit shallowly, says Zoe Strimpel

T
HE Wizard of Oz is a surprisingly polarising story. For some,
the merest hint of “somewhere over the rainbow” brings
tears to their eyes. And Judy Garland as Dorothy – well,
enough said. Others, though, find it a deeply sinister plot,
shot through with unforgiveable cloying cliché. One critic recent-
ly commented that on his first viewing of the Wizard of Oz (as an
adult), he was struck by its mixture of cruelty and sentimentality.
I’m inclined to agree with this assessment – but that doesn’t mean
I didn’t enjoy Lloyd Webber’s production, directed with meticu-
lous prowess by Jeremy Sams and starring Michael Crawford as Oz.
Dorothy is played by Danielle Hope, the winner of Lloyd
Webber’s talent contest on the BBC. Hope has big red shoes to fill
and she did so brilliantly. She’s a pretty girl, with lustrous brown
hair and an extremely sweet voice. Her Somewhere Over the
Rainbow sent shivers down my spine. But far more dazzling than Above: Dorothy and
any of the performances – except the Wicked Witch of the West, her friends finally find
who is played with screeching glee by Hannah Waddingham – was what they’re looking
the set. I was quite literally blown away by the whirling vortex of for with the Wizard,
the tornado that sends Dorothy to Oz; the luscious field of poppies played by David
with which the Wicked Witch lures Dorothy and her tired troupe; Crawford.
Emerald City with its population of green and sparkly-clad citizens Right: the Wizard’s
magnificent lair.
and the Witch’s majestic, macabre iron fortress in the deep forest Left: the Scarecrow,
infested with lions, tigers and bears. played by Paul
Dorothy’s companions – the Scarecrow, Tin Man and lion – are Keating.
likeable, but the best of them is the Jim Carey-esque Tin Man
(Edward Baker-Duly). The Good Witch of the North (love that title)
wears a dress so dazzling it’s worth going to see it alone. The show
is a factory-produced slice of dazzle. Kids will enjoy it but whether
it’ll haunt their dreams is another matter. At the London Palladium

ALSO OUT THIS WEEKEND

FILMS

UNKNOWN
Cert: 15
hhIII
IS psychological thriller Unknown cine-
ma’s first venture into the perilous world
of international botany? Can’t say for sure
either way, but fingers crossed it’ll be the
last.
Liam Neeson is plant fan Dr. Martin
Harris, who’s in Berlin for a conference
about corn, when his taxi plunges into a
river. His heart stops for several minutes.
Substantial memory loss occurs. He does,
however, remember his wife, Elizabeth. But
she’s nowhere to be seen...
When Dr. Harris does finally locate his
spouse, she doesn’t recognise him. And
she’s with another man. Who’s called
Martin Harris. Who is also a leading
botanist. What on earth is going on?
Neeson’s Martin immerses himself into
this murky landscape of shifting identities,
continental assassins, benevolent taxi driv-
ers, known unknowns, unknown knowns
and an ex-Stasi agent who may or may not
be a very bad man.
It’s an enjoyably daft premise but the
many, and gratuitous, plot twists soon get
wearisome. Proceedings are not helped by
the fact that Neeson, pushing 60, seems a
little too old for his role: stumbling around
the city, he looks authentically confused,
but in a be-slippered, care-home kind of
way.
Mad Men’s January Jones plays Neeson’s
occasional wife, Elizabeth. No matter how
many wonky identity thrillers she’s cast in,
she will always be Betty Draper. In every
scene she appeared, I longed for her to look
glum, pensively smoke a very long cigarette
and then smash a chair in a bout of rage.
She did none of the above and Unknown
was a worse film for it.
Tom Latter
THE ADJUSTMENT BUREAU
Cert: 12A
hhhII
IF you go into The Adjustment Bureau with
an open mind, you are likely to enjoy this
film, a lot. Part sci-fi, part thriller, but large-
ly a romance, it is based on a short story
called Adjustment Team by Philip K Dick,
which debates the question: are we in con-
trol of our destinies or are we part of a big-
ger picture manipulated by otherworldly
forces?
Matt Damon plays David, an upthrust-
ing young politico, to Emily Blunt’s quick-
witted contemporary ballet dancer, Elise.
The pair randomly collide in a hotel mens’
room to find sparks fly. But was their meet-
ing random – or was it part of ‘The Plan’?
That is the question.
When David discovers a bunch of suits in
fedoras on his tail, showing up here, there
and everywhere to prevent him from pur-
Rango the pet
appoints Rango as its sheriff in the hope
suing Elise, he gives chase. The hat squad
chameleon,
that he can save them. Faced with over-
led by the legendary Terrence Stamp, have coming a corrupt mayor, a rattle-snake
some impressive supernatural powers
complete with
holster. voiced by Bill Nighy and the odd moment
tucked up their tailored sleeves, but hey, no of existential crisis, Rango has to prove he
one stands in the way of true love, right? can actually be a hero, rather than just
At times, the twists are clever, at others, play one.
silly, but overall you’ll be glued to the This is an affectionate treatment of the
screen thanks to the pacy action, Damon’s Western genre and you can see why Depp
gripping performance (nothing short of was drawn to it.
Bourne) and Blunt’s undeniably beguiling Reunited with Pirates of the Caribbean
nature. director Gore Verbinski Depp is, of
So, if you can stop yourself from picking course, brilliant. Rango is
holes in the plot and suspend your disbelief never anything but love-
for 90 minutes, you’re in for quite a ride. able, yet garners great
Well that’s the plan anyway. comedy from his oscilla-
Leo Bear tion between affable
hopelessness and dan-
gerous self-delusion.
He’s pleasingly sup-
RANGO ported by a cast that
Cert: PG includes Isla Fisher,
Ray Winstone and
hhhhI Abigail Breslin.
At 107 minutes Rango
JOHNNY Depp stars as Rango, a pet does start to drag and could
chameleon with heroic aspirations who probably have done with a bit
longs to escape the confines of his terrari- more time in the editing suite.
um. Rango gets his chance when he ends But it’s self-aware and clever
up in Dirt, a town in need of a hero. enough for adults to
Populated by a comic animal enjoy, especially west-
menagerie of typical western characters, ern fans. And children
Dirt is running out of water. After Rango will love it which is,
convinces the local saloon bar of his hero- ultimately, the
ic pedigree by stirringly recounting his point.
(entirely made-up) past feats, the town Harriet Noble
CITYA.M. 4 MARCH 2011 Lifestyle | TV& Games 23

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News 6pm Eggheads 6pm London Tonight 6pm The Simpsons 6pm Home and Away
6.30pm BBC London News 6.30pm My Life in Books 6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm The One Show 7pm Athletics 7pm Emmerdale: Jimmy 7pm Channel 4 News 7pm 5 News at 7
7.30pm Rip Off Britain: 7.30pm An Island Parish returns to the village but does 7.25pm 4thought.tv 7.30pm Vets in Action:
BBC News 8pm Mastermind: The first not remember anyone. 7.30pm Asian Gracefully 5 News Update
8pm EastEnders semi-final of the series. 7.30pm Coronation Street 8pm CHOICE Relocation: 8pm Ice Road Truckers: The
8.30pm QI 8.30pm Britain from Above 8pm Children’s Hospital Phil Down Under threat of an avalanche
9pm New Tricks 9pm Hidden Treasures of 8.30pm Coronation Street 9pm Embarrassing Bodies continues to grow; 5 News at 9
10pm BBC News African Art: Griff Rhys Jones 9pm Benidorm: Donald and 10pm Friday Night Dinner 9pm The Mentalist: A journalist
10.25pm Regional News travels to West Africa. Jacqueline start a collection 10.30pm Rude Tube: Epic Fails is found dead at a mixed
10.35pm CHOICE 10pm Fast and Loose for Madge. 11.30pm 10 O’Clock Live martial arts event. THE GRAHAM NORTON SHOW
The Graham Norton Show 10.30pm Newsnight: 10pm ITV News at Ten 12.35am Music on 4: 10pm CHOICE Law & Order BBC1, 10.35PM
11.20pm The National Lottery 11pm The Review Show: 10.30pm London News Mercury Prize Sessions 10.55pm NCIS The talk-show host is joined by actor
Friday Night Draws Weather 10.35pm The Cube 12.50am Music on 4: CTRL MX 11.55pm Cops in Crisis Stanley Tucci, comedian Jimmy Carr,
11.35pm FILM A Time to Kill 11.50pm ICC Cricket World 11.35pm Take Me Out 1.20am My Name Is Earl 2.05am 12.15am SuperCasino actress Miriam Margolyes and singer
1996; Weatherview Cup Highlights 12.35am The Zone; Modern Toss 2.30am FILM 3.55am Motorsport Mundial Bruno Mars.
2am Sign Zone: South Riding 3am 12.50am The Mighty Boosh Live ITV News Headlines Teenage Paparazzo: 2010. 4.10am 4.20am Royal Navy Caribbean
Sign Zone: Horizon: How to Survive 3.15am BBC News 3.55am-6am 2.40am In Plain Sight 3.25am- Reaper 4.55am Wogan’s Perfect Patrol 5.10am Wildlife SOS
a Car Crash 4am-6am BBC News Close 5.30am ITV Nightscreen Recall 5.20am-6.05am Countdown 5.35am-6am House Doctor

SKY SPORTS 1 BRITISH EUROSPORT BBC THREE HISTORY DISCOVERY HOME &
SATELLITE & CABLE

7pm Sky Sports News at Seven

7.30pm Live Super League
10pm Take It Like a Fan
10.30pm Premier League
Preview 11pm Football League
Weekend 12am Super League
1.30am Take It Like a Fan 2am
Premier League Preview 2.30am
Football League Weekend
3.30am Take It Like a Fan 4am-
6am ICC Cricket World Cup
SKY SPORTS 2
7pm Live Elite League Ice
Hockey 10pm Tight Lines 11pm
ICC Cricket World Cup 1am NFL:
Total Access 2am Trans World
Sport 3am Super League
4.30am Premier League Preview
5am-6am Football League
Weekend
SKY SPORTS 3
7pm Tight Lines 8pm Live PGA
Tour Golf 11pm Super Rugby
1am Tight Lines 2am PGA Tour
Golf 5am Airsports World
5.30am-6am Football’s Greatest
8pm Strongest Man 9pm
Timbersports Series 10pm Best
Battles Bikes 11pm Freestyle
Skiing 11.30pm Extreme Sports:
Freeride Spirit 11.45pm WATTS
12am-12.35am Athletics
ESPN
7pm Pardon the Interruption
7.30pm Talk of the Terrace 8pm
Live NBA Basketball 10.30pm
ESPN MMA Live 11.15pm ESPN
Kicks: Extra 11.30pm NBA
Action 12am Live NBA
Basketball 2.30am Live NBA
Basketball 5am Premier League
Preview 5.30am-6am World
Rally Championship
SKY LIVING
7pm Ghost Whisperer 8pm
Bones 9pm Criminal Minds
10pm CSI: Crime Scene
Investigation 11pm Criminal
Minds 12am CSI: Crime Scene
Investigation 2.40am Charmed
4.20am Four Weddings 5.10am-
6am Maury
7pm Doctor Who: The Doctor
has just 20 minutes to save the
world. 8.05pm Great Movie
Mistakes 2: The Sequel:
Presented by Robert Webb.
8.30pm The Lock Up 9pm Little
Britain 10pm EastEnders
10.30pm How to Live with
Women 11.30pm Two Pints of
Lager and a Packet of Crisps
12.30am Family Guy 1.15am The
Lock Up 1.45am Coming of Age
2.15am Lunch Monkeys 2.45am
How to Live with Women
3.45am Great Movie Mistakes 2:
The Sequel 4.10am Snog, Marry,
Avoid? 4.40am-5.10am Hotter
Than My Daughter
E4
7pm Hollyoaks 7.30pm Friends
9pm Gok’s Clothes Roadshow
10pm Wife Swap 11.10pm Great
British Hairdresser 12.15am
Scrubs 1.10am Gok’s Clothes
Roadshow 2.05am Wife Swap
3am Samantha Who? 3.40am
The OC 4.25am-6am Switched
7pm Heir Hunters 8pm Swamp
People 9pm Mud Men 10pm
HEALTH
7pm A Baby Story 8pm
How London Was Built 11pm Hoarding: Buried Alive 9pm 19
Swamp People 12am Mud Men Kids and Counting 10pm Raising
1am How London Was Built 2am
10 Kids: The Hayes Way 11pm RELOCATION: PHIL DOWN UNDER
Cities of the Underworld 3am
Emergency: Life in the ER 1am CHANNEL4, 8PM
Egypt: Finding the Pharaohs
4am Banned from the Bible
Raising 10 Kids: The Hayes Way
2am Emergency: Life in the ER
Phil Spencer catches up with the
5am-6am Ancient Discoveries Davidsons in Perth, learning how they
3am Hoarding: Buried Alive 4am
overcame homesickness to make a
DISCOVERY Bringing Home Baby 5am-6am
better life for themselves in Australia.
8pm How Do They Do It? The A Baby Story
production of off-road vehicles.
SKY1
8.30pm How It’s Made:
Retractable ballpoint pens, solar 7.30pm The Middle 8pm The
salt and tubas. 9pm Brace for Simpsons 8.30pm Modern Family
Impact: A pilot who landed his 9pm Raising Hope 9.30pm A
plane on the Hudson River. 10pm League of Their Own 10.30pm
Weird or What? 11pm Monsters Louie Spence’s Showbusiness
Inside Me 12am Bear Grylls: 11.30pm Got to Dance 12.50am
Born Survivor 1am Deadliest Got to Dance – Results Show
Catch 2am Future Weapons 1.30am Live to Dance 2.25am
3am World War Two: The Football Behind Bars 3.20am LAW & ORDER
Complete History 3.50am Rory Futurama: Welcome to the World CHANNEL5, 10PM
McGrath’s Best of British of Tomorrow 3.30am Threshold Green and Cassady investigate the
Engineering 4.40am How the 4.20am Guinness World Records murder of Carl Mullaly, who had been
Universe Works 5.30am-6am Smashed! 5.10am-6am Sell Me profiled on HardFocus, a tabloid talk
How Does That Work? the Answer show exposing sex offenders.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
29 10 6 17 15 35
8 24
7 15 16  
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 8 12 6
14
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 10 17 4     
above or to the left of it. 18 28 10
You can only use the digits 1-9 29
    and you must not use the
35 22
11 30     
same digit twice in a block. 16
    The same digit may occur 37
10 23
 more than once in a row or
column, but it must be in a
15
16
5 7
 
14 3 12
   separate block.
6 15 9
45
    9 21
 

   ACROSS DOWN
1 Repairs (5) 1 Subtraction (5)

    WORDWHEEL N I
3 Strange (5)
6 Upstanding or
2 City in India (5)
3 Vexed (7)
Using only the letters in the Wordwheel, you have highborn (5)
    ten minutes to find as many words as possible,
G A 4 Asian country (5)
7 Prod (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters E 8 Fulfil the requirements
5 Female relative (5)
9 Overwhelming
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
U B of (7)
11 Mature (3)
feeling of

SOLUTIONS
wonder (3)
KAKURO is at least one nine-letter word in the wheel.
E R 13 Liveliness and energy (3) 10 Fizzy, sugary
QUICK CROSSWORD 7 8 6 6 8 3 9 15 Certify (7)
powder (7)

M O T E T S C A N T
2 5 3 1 4 7 1 4 SUDOKU         
18 Perform without
12 Hydrogen, for
7 1 2 9 8 6          instance (3)
U I R A S I
1 6 4 3 2 4 5 9 preparation (2-3)
C A T C A L L S A T         
3 9 7 5 8 1 2 8 13 Car crash (5)
U I A U H
         19 Cuts into pieces (5)
S A L O N D R A K E 9 7 1 3
         14 Acute viral
E
C E A S E
G
C H E E R
2 9 8
1 4 2
7 3 2 1
9 4 7 6
4
8
WORDWHEEL         
20 Eye with malicious
satisfaction (5)
disease (5)
O R X I E         
S O N I N G R A T E
7 5 2 2 6 3 The nine-letter word was 16 Different (5)
T E L A F D 8 5 3 6 5 9 8 7          21 Shrimp-like planktonic
S P R E E R E T R Y 7 8 1 5 5 2 1
WRISTBAND          crustaceans (5) 17 Artist’s tripod (5)
 Punter
24 CITYA.M. 4 MARCH 2011

| Racing

RACING TRADER BILL ESDAILE, OUR RACING EXPERT, GIVES US HIS BEST WEEKEND BETS AND SOME CHELTENHAM POINTERS

Join Together
to give Nicholls
his first Albert
Bartlett winner
E
VEN though this year’s Cheltenham
Festival is within touching distance,
there still seems to be some ante-post
value out there. Now, the Albert
Bartlett Novices’ Hurdle (run two weeks
today) may not exactly be the highlight of
the week, but Paul Nicholls’ JOIN
Poquelin is a strong TOGETHER looks to have an excellent
fancy for this year’s chance and is a cracking each-way proposi-
Ryanair Chase tion at 10/1 with Victor Chandler.
The six-year-old ran a stormer behind
Court In Motion on his hurdling debut at
Exeter in November and then ran an
equally impressive race behind Mossley at
Cheltenham in December. Nicholls has
said that riding instructions to French
pilot David Cottin were ‘lost in transla-
tion’ that day and that he would improve
with Victor Chandler and I’d be surprised
if he doesn’t go off 3/1 or shorter.
Regular readers of this column will
have already taken the 14/1 about
MOURAD for the World Hurdle and 6/1 in
the without Big Buck’s market. He’s now a
general 10/1 shot and I’m still very keen on
him. Paul Nicholls’ star hurdler will be
very difficult to beat, but I wouldn’t put
anyone off going in again on Mourad in
the ‘without’ market at 5/1 with William
Hill.
Tomorrow’s Greatwood Gold Cup at
Newbury looks ultra-competitive, but I’m
going to take a chance on Nicholls’ TAKE
THE BREEZE, who has run some excellent
races this season. The champion trainer
has won four of the last five runnings of

§ § for being ridden up with the pace.

That was certainly the case when he
bolted up at Chepstow last time and he is
reportedly one of Ditcheat’s leading fan-
this race and the eight-year-old looks a bet-
ter contender than Walsh’s mount Niche
Market.
This column is starting to sound like a
cies for the meeting. The champion train- Paul Nicholls fanzine, but keep an eye out
er has never won this race, but Najaf for his BROOMFIELD in the Bumper. He is
finished second last year, as did Pride Of entered here and at Doncaster, but is well
Dulcote 12 months earlier. Ruby Walsh is regarded at home and could take plenty of
likely to be in the saddle and I would be catching.
astonished if his price isn’t nearer 5/1 on Elsewhere, Racing for Change have
the day. The same stable send out announced that an incredible 25 of
POQUELIN in the Ryanair Chase on the Britain’s racecourses are to open their
Thursday and he is going to be very diffi- doors for free in April. This is a tremen-

&
&
"" 

§F
§ F §§
§%
§%$$
 cult to beat. He went off favourite for this dous initiative and should be applauded.
#E>41I
# E>41I§§
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§#;I§#@@?BDC§

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§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§§
last year, but couldn’t get the better of You can now follow me on Twitter
§ Albertas Run and he is a strong fancy to @BillEsdaile and get all my latest thoughts
set the record straight. in the build-up to the Festival.
Andy Stewart’s eight-year-old ran a
Â
§ ")§$
§ §#"
§ §¹§§
§ §§ §§"
§ § %(§§
§§ "$§§ decent fifth in the Paddy Power Gold Cup POINTERS...
Â
§ '§§ §#
§ "§§
§ § §
§ §#$ in November, before powering up the hill TAKE THE BREEZE e/w 3.00pm Newbury (tomorrow)
§ §$
§ 
Â
§ §%
§ §#
§ §
to take the Vote AP Gold Cup a month BROOMFIELD 5.20pm Newbury (tomorrow)
§ §
§" §§#§
§ $ later for the second year running. He

Â
§ ")§$ POQUELIN Ryanair Chase
§ §§#"¿§$
§ §
§ §¹§
§ § $§#%
§  absolutely loves Cheltenham and the dry
forecast over the next couple of weeks will MOURAD World Hurdle, w/o Big Buck’s
Â
§ #"§
§ (§$
§ §§§#
§ $§$
§ §§$§#
§ $#§)§"
§ § "  only boost his chance. He is currently 9/2 JOIN TOGETHER e/w Albert Bartlett

COUNTDOWN TO CHELTENHAM
§ The Supreme Novices’ sets the
meeting off with a bang and
last year with Menorah and his
DUNRAVEN STORM has the
horse with the potential to
shorten dramatically is STAR-
CUE CARD is understandably a potential to start about half his LUCK. His trainer hasn’t commit-
$§§
$ §
§
'
'§§%
%#
#$
$


"
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warm favourite. I’m sure he will
trade shorter in-running than
current 43.0 price.
He was disappointing at
ted him to the race yet, which is
an obvious worry, but if he does,
 §
§§ his current 3.6 price on Betdaq, Haydock last time, but prior to there is no way he will trade big-
§%
%$§'
$§'$§
$§ as he is such a strong traveller. that he was second to Cue Card ger than the current 12.5.
&
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§ However, Champion Bumper at Cheltenham, beaten eight Finally, for the reasons I’ve

$
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§$§&
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%§§)
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%"§ winners have a terrible record lengths. His proximity to the given in the main article, it’s def-
in this race and it could be jolly that day means his price initely worth taking some of the

"#
"#$§$
$§$§'$
§'$§§"
§§"§
§$§
$§ worth laying him at a very short will simply have to contract. 12.0 available on Betdaq about
% §$§
§$§§(
§(%
%§§Ö
§§Ö½
½ price. The Arkle doesn’t look the JOIN TOGETHER in the Albert
Philip Hobbs won this race strongest this year and the one Bartlett.

Join now for a risk free £30 bet and 2.5% in association with:
commission until March 31st (Betdaq T&Cs
F
F93D?B381>4<5BÁ3?=
93D?B381>4<5BÁ3?= Apply, see site for details.) www.betdaq.com
0870 178 1221

CITYA.M. 4 MARCH 2011
SPORT TRADER BEN CLEMINSON AND OLLIE DREW BRING YOU THE
BEST FOOTBALL AND CRICKET BETS THIS WEEKEND
Liverpool the value to
upset United’s title bid
LIVERPOOL
MANCHESTER UNITED
SUNDAY – 1.30PM SKY SPORTS 1
ALL of a sudden everything isn’t quite as
rosy as it was in the Old Trafford garden.
Manchester United were as short as 4/9 to
win the Premier League last weekend, but
their second defeat in their last four league
games at Stamford Bridge on Tuesday
night has opened the door for Arsenal.
Victor Chandler have United at a stand-
out 8/11 to win the title and that price
could be odds against on Sunday night if
they come a cropper at Anfield. Sir Alex
Ferguson has to make do without defen-
sive lynchpin Nemanja Vidic after his send-
ing off against Chelsea and that could pose
big problems for the Red Devils.
Liverpool have improved under Kenny
Dalglish, underlined by their impressive
performance and victory at Chelsea last
month. However, they disappointingly
drew at home against Wigan in their next
game and were terrible at West Ham last
weekend. That said, they have a habit of
raising their game against the top sides
and would love to put another dent in
United’s title challenge.
There’s an argument that, with neither
side firing on all cylinders at the moment,
the draw is the value at around 23/10.
However, there has only been one stalemate
in the last 21 league meetings between
these two and Liverpool have won the last
two at Anfield. I think they have a great
chance of making it three in a row and are
available at 15/8 with Victor Chandler.
ENGLAND
SOUTH AFRICA
SUNDAY – 4.00AM SKY SPORTS 2
FEW gave the Associate nations a chance
before the World Cup, but England are
handing them every opportunity. As if
beating Netherlands by the seat of their
pants wasn’t embarrassing enough, defeat
to Ireland has left Andrew Strauss and co
in a right old mess and with their tails
well and truly between their legs.
Again they encouraged an opposition
batsman to make a name for himself. This
time it was the swashbuckling Kevin
O’Brien, who England allowed to bosh the
BEHIND THE LINES
Manchester United’s visit to Anfield is
vitally important in the context of the
club’s chase for its 19th league title. Sir
Alex’s side are currently 8/11 for the tro-
phy but should they slip up on Sunday,
Arsenal will be in a great position going
into the home straight.
Despite Liverpool’s shambolic display
against West Ham, punters are siding
Punter
Dalglish’s first game back in charge was at
Old Trafford in the FA Cup and his side
performed well, especially seeing as
Steven Gerrard was sent off in the first
half. He will be desperate to record a win
against old adversary Ferguson and with a
vociferous Anfield crowd behind them, I
fancy his side to penetrate what could be a
very weak United backline.
A worry is that Liverpool have hardly
been prolific in front of goal this season;
they’ve only found the net six times in
their last six games. A single strike could
be enough, though, and I wouldn’t put
anyone off backing the 1-0 home win at
15/2 on Betdaq. Liverpool are not as
strong as they were a few seasons back,
but there still isn’t a lot between the best
teams and home advantage can give them
the edge.
There were five match goals in the
quickest ever century in tournament his-
tory. It didn’t need to be like this. England
could – and should – have been out of
sight, but as demonstrated when time
elapsed against India, they lack a finisher
in Eoin Morgan’s absence to accelerate the
run rate at the death. Then numerous
opportunities were once more passed-up
to take wickets at vital stages as, like their
catching attempts, England let command-
ing positions slip through their fingers.
They were backed in-play at 1/100 on
Betdaq and the Irish were turned over at a
high of 399/1 before securing their place
in the record books.
With just a single victory so far,
England surely need another two to
progress. But South Africa are likely to
keep them waiting for the first of those.
The Proteas brushed aside West Indies
and Netherlands and are the team to back
with King Kenny, as we’ve seen United
drift to 8/5 for the match. It’s a huge
game for the Europa League-chasing
Reds too and United have plenty of rea-
son to fear a hostile atmosphere and the
potential unveiling of a certain Andy
Carroll.
Andrew Strauss has had to pick up the
pieces after his team’s diabolical defeat
25
| Sport
Picture: ACTION
game at Old Trafford back in September,
but I’d be surprised if this contest is any-
thing like as open as that. There have been
two or less goals in four of Liverpool’s five
home games against the Big Four since
the start of last season, as well as in four of
their last five matches overall.
United have been poor on the road this
campaign and nine of their last 14 away
matches against top-half opponents have
produced fewer than three goals, with
four of their last six such meetings pro-
ducing one or no goals. It therefore seems
sensible to sell Sporting Index’s total goals
quote at 2.4.
POINTERS...
Liverpool to win at 15/8 with Victor Chandler
Liverpool to win 1-0 at 15/2 on Betdaq
Sell total match goals at 2.4 with Sporting Index
at 4/7 with Victor Chandler. Buying India’s
runs with Sporting Index at 290 was a
tasty earner last week with a makeup of
338 and there’s every reason to think
Graeme Smith’s men will make hay too
against a side which has haemorrhaged
959 runs in three outings.
Spread punters should consider buying
South Africa runs at 283 if batting first
and AB de Villiers can be his side’s top run-
scorer at 4/1 on Betdaq. Last year he gath-
ered 964 at an average of 80.33 and de
Villiers has reached triple figures in each
World Cup game.
POINTERS...
South Africa to win at 4/7 with Victor Chandler
Buy South Africa runs with Sporting Index at 283
AB de Villiers to be top South Africa batsman at 4/1 on
Betdaq
to Ireland. We’ve been against England
throughout the World Cup and cannot
see them bouncing back to beat South
Africa. This team look the real deal, with
two of the best opening bowlers in the
world and a strong batting line-up.
South Africa are 4/7 now but I wouldn’t
be surprised to see them shorten before
Sunday.
 Sport
26 CITYA.M. 4 MARCH 2011

City star
Nasri and Kalou hope to meet

Kalou and
Pic: PA

Toure fails
Nasri seek
final date
drugs test
l Defender suspended by club after positive sample
▲

FOOTBALL
BY JAMES GOLDMAN
l Toure faces ban of up to two years if found guilty
LONDON Premier League rivals
Salomon Kalou of Chelsea and
Arsenal’s Samir Nasri hope their sides
will meet at Wembley in this season’s players testing positive are rare. FA Cup quarter-finals followed by a
▲

Champions League final.
The famous venue will host the cli-
max of Europe’s premier club compe-
tition for the first time since 1992
and, with all three capital clubs
including Tottenham, who have pro-
gressed to the last 16 in their debut
season, holding first leg advantages
the prospect of a London presence
come May looks to be a strong one.
Nasri, whose Arsenal side travel to
Camp Nou on Tuesday looking to pro-
tect a one-goal lead against Barcelona,
said: “I would love an Arsenal-Chelsea
final because it’s two clubs from
London.
“I have a dream about the
Champions League – it’s the best com-
petition for a club, we’re still in it and
we want to come back to Wembley.”
Kalou added: “I prefer [to play
Arsenal in the final] because we have
a good record against them. Every
time we’ve been to Wembley we’ve
had a good game – hopefully we’ll get
to this final. It’s a great stadium with
a great atmosphere.”
FOOTBALL
BY FRANK DALLERES
MANCHESTER CITY last night sus-
pended Kolo Toure indefinitely
after the Ivory Coast defender
failed a drug test.
The Premier League club said
they had been informed by the
Football Association that Toure, 29,
had tested positive for “a specified
substance”.
Such substances are prohibited
and can result in a ban of up to two
years, if an athlete is found guilty.
Such a suspension would have
career-threatening implications for
a player of Toure’s age.
However the term “specified sub-
stance” is defined by the World
Anti-Doping Agency as one that has
greater potential to have been
taken innocently, for example as
part of a supplement or medicine.
The development came as a
shock to football, where cases of
A statement from the club read:
“Manchester City confirm that the
FA has informed Kolo Toure that an
‘A-sample’ provided by him has test-
ed positive for a specified sub-
stance.
“As result of this, he has been
suspended from participating in all
first team and non-first team
matches pending the outcome of
the legal process. There will be no
further comment from the football
club at this stage.”
The FA did not specify the identi-
ty but said a player had been “provi-
sionally suspended from playing
pending investigation, having test-
ed positive for use of a prohibited
substance”.
Toure was rested for
Wednesday’s FA Cup win over
Aston Villa and looks certain to
miss City’s league fixture at home
to Wigan tomorrow. After that the
title hopefuls face Reading in the
trip to Chelsea on 20 March.
City paid Arsenal £14m for the
centre-back in the summer of 2009,
when his former Gunners team-
mate Emmanuel Adebayor fol-
lowed him to the ambitious
Eastlands outfit.
DRUGS CASES IN FOOTBALL
Adrian Mutu
Failed a drugs test for cocaine and was
sacked by Chelsea in October 2004
Rio Ferdinand
Incurred and eight month ban in 2004 after
he failed to attend a drugs test
Paddy Kenny
Tested positive for ephedrine and was hand-
ed a nine month ban in 2009
Simon Mensing
Banned for a month earlier this year after
testing positive for methylhexaneamine.

Chennai’s wicket will hand SPORT | IN BRIEF

Afridi rescues Pakistan again

England shot at redemption

CRIKCET: Shahid Afridi took his wicket
tally in the World Cup to 14 as Pakistan
saw off Canada by 46 runs. Pakistan
were skittled out for 184. Jimmy Hansra
made a valiant 43 in response but leg-
spinner and skipper Afridi struck twice
in two balls and snared 5-23 as Canada
l After the battering England’s
▲

CRICKET eight ODIs against the Proteas. That were 138 all out.
BY JAMES GOLDMAN bowlers have taken so far, the last includes a 2-1 series win in South
thing James Anderson and Stuart Africa the winter before last and a 4-0 Ecclestone reveals Bahrain plan

Kallis scored two against Holland Pic PA
D
ENTED by the Dutch, humiliat-
ed by Ireland and, in the cold
light of day, fortunate to have
been under-estimated by India,
England’s cricketers are on course to
mimic their footballing counterparts
and exit a World Cup embarrassingly
early.
Captain Andrew Strauss insists the
dream is still alive, but with South
Africa, who have two straightforward
wins over West Indies and Holland
under their belts, next up on Sunday
the smart money is on another crush-
ing defeat.
It’s was a hard task, but City A.M.
has managed to come up with three
reasons to believe England are capa-
ble of pulling off what, on current
form, would be significant upset.
Broad needed to see was the sight of
JP Duminy teeing off against the
Dutch. Fortunately, the wicket in
Chennai should offer England’s
seamers some respite. In the only
other match played there so far in the
tournament, New Zealand skittled
Kenya for 69 in just 23.5 overs. More
encouraging, however, is the fact that
in the last six one-day internationals
the average first innings score is just
220, while the Kiwis were rolled over
there for just 103 in December.
l Despite their well-earned reputa-
tion as a powerful and perfectly bal-
anced one-day side, South Africa have
struggled against England in the 50
over format of late. Incredibly,
England have won seven of their last
win on home turf in 2008.
l Putting Ireland’s defeat of England
to one side, scores of two and four for
Jacques Kalllis against Holland and
West Indies represents the biggest
shock of the tournament so far. The
fact that South Africa boast one of
the most intimidating batting line-
ups ever assembled, allied to the fact
they’ve faced cannon fodder thus far,
has meant Kallis’ failures have been
compensated for. AB de Villiers has
adjusted brilliantly to the demands of
keeping wicket and batting at No4,
but he’s been used to coming in with
a platform already built. Should
Kallis, who remains the side’s linch-
pin, fall early again, De Villiers may
not find life so cosy.
FORMULA ONE: Bernie Ecclestone is
planning to reschedule the Bahrain
Grand Prix towards the end of the 2011
season. Ecclestone has ruled out staging
the event in August. The race was due
to be the season's opener on 13 March
but had to be cancelled because of
ongoing civil unrest. “I’m hoping beyond
hope things settle peacefully and we
find a slot later in the year,” he said.
Cohen may retire at season’s end
RUGBY UNION: Sale’s World Cup-win-
ning winger Ben Cohen may retire at the
end of the season after being told he is
surplus to requirements at Edgeley Park.
“I’ve got another couple of years left in
me so I’ll try to get a club in the
Premiership. If not, I’ll retire. So we’ll
just have to see what happens,” he said.
CITYA.M. 4 MARCH 2011 27

Ferguson charged by the FA

for rant at referee Atkinson
Ferguson was angry over manager has two matches of a four-

▲
FOOTBALL
BY JAMES GOLDMAN Atkinson’s failure to dismiss game ban from last season hanging
Chelsea defender David over him after remarks about refer-
MANCHESTER UNITED’S Treble quest Luiz for fouls on Javier ee Alan Wiley.
has been dealt a blow after manager Hernandez and If that suspended ban is trig-
Sir Alex Ferguson was charged with Wayne Rooney gered, he will be banned from the
improper conduct by the Football after he had touchline for United’s FA Cup
Association. already been quarter-final tie with
Ferguson now faces a touchline booked. Arsenal at Old
ban for his comments, aimed at refer- He was Trafford on 12
ee Martin Atkinson, following further upset March and the
Tuesday’s controversial 2-1 defeat when Chelsea were Premier League
against Chelsea at Stamford Bridge. awarded what he game with
West Ham plan to move to the Olympic Stadium after 2012 Picture: PA Ferguson, who has until 4pm on considered a “soft” Bolton a
Tuesday to respond, said in his post penalty when Yuri week later.

Orient snub as West match interview with the club’s in-

house channel MUTV: “You want a
fair referee, or a strong referee any-
way – and we didn’t get that.
Zhirkov
under the chal-
lenge of Chris
Smalling.
fell FA c h i e f s
could also
extend the
ban following

Ham move approved “I must say, when I saw who the ref-
eree was I feared it. I feared the worst.”
T h e
U n i t e d
his latest out-
burst.

dium instead, wishing the north

▲

OLYMPICS
Londoners “all success” with their
BY FRANK DALLERES rival bid.
PREMIER LEAGUE chiefs have dis- “It is regrettable that Mr Hearn is
missed Leyton Orient’s protests at the now claiming that Leyton Orient had
decision to allow West Ham to move no input into the board’s decision
into the Olympic Stadium, after the
Hammers’ relocation was rubber-
stamped by government.
making process when their views, as
expressed in writing at the time by
Mr Hearn, were given due considera-
Southern Hemisphere
Ministers and the Mayor of London tion,” read the statement.
yesterday confirmed their formal
endorsement of the choice of West
Ham, rather than Tottenham, as
“Clearly the position currently
being articulated by Mr Hearn in the
media is at odds with his original sub-
Charity Day
anchor tenants of the venue after the mission. There is absolutely no ques-
London 2012 Games. tion of the board’s decision being A day of fun, to raise funds for:
Orient chairman Barry Hearn is reviewed.”
threatening legal action if the plan Hearn criticised the approval of The Queensland flood appeal & the Christchurch earthquak
earthquake
e
progresses, arguing that the League West Ham’s bid, calling it “stagger-
One could be put out of business and ing”. “It’s savage news, very disap-
have not been properly consulted by
the Premier League.
pointing,” he said. “No one, in or
outside government, has asked one
Australian XV
But in a statement the league said single question about how this will F
Featuring
eaturing Geor
George
ge Smith
there had been dialogue with Hearn affect Leyton Orient. The news that
in which he had welcomed the they’ve rubber-stamped it without
prospect of Spurs moving into the sta- asking anything is staggering to me.”

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