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BUSINESS WITH PERSONALITY

HOW TO DASH FROM DESK KUYT STUNS


UNITED
TO SNOW IN FOUR HOURS THEN FERGUSON
STEPS UP MEDIA
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Issue 1,336 Monday 7 March 2011 www.cityam.com FREE

BORIS TO HSBC: Treasury


backs Bank
Commission
DON’T LEAVE UK

BANKING
BY STEVE DINNEEN
THE Treasury yesterday gave its back-
POLITICS ing to the Independent Commission

BY JULIET SAMUEL on Banking, saying chancellor George


Osborne has confidence in its report
LONDON Mayor Boris Johnson has into the financial industry.
urged HSBC to consider the long-term The Commission is tasked with giv-
benefits of staying in London amid ing recommendations to the govern-
growing signs that the bank is eyeing a ment on whether UK banks should be
move to Hong Kong. forced into a radical restructuring,
HSBC’s line has hardened recently, with splitting investment and retail
with chairman Douglas Flint criticis- banks into separate entities one
ing George Osborne’s balance sheet option being considered.
levy on banks as a “tax on being head- Fears over the possible conclusions
quartered here” and saying that share- of the Commission’s report is under-
holders have increasingly asked the stood to be one reason HSBC is seri-
bank to justify its London domicile. ously considering its UK domicile.
The mayor’s office was quick to The Treasury’s backing comes after
respond to HSBC’s shift in tone, with suggestions that at least one
Boris vowing to do anything in his Commission member believes there
power to keep the banking giant in the has been too much Treasury med-
City. dling in the process.
The mayor has sworn to “do what he There is also doubt amongst senior
can to prevent such a valuable source City figures that the government will
of income from heading to any other follow the main recommendations of
jurisdiction,” a spokesman for Boris the Commission after successfully
told City A.M. negotiating the Merlin accord with
“We urge HSBC, however, to recog- the main UK banks to increase bank
nise that London has enormous long lending. However, the Treasury dis-
term advantages that others cannot London mayor Boris Johnson has vowed to do all he can to keep HSBC in London Picture: PA tanced itself from this, telling City
match.” But he also warned: “London’s A.M. it “looks forward” to the recom-
dominance as the global capital of away from London. The bank warned last week of the a separation or subsidiarisation of mendations made in the report.
finance cannot be taken for granted.” HSBC is currently in the process of development of “differing, fragment- retail and wholesale banking activi-
Any intervention by Boris could reviewing its domicile, which it does ed and overlapping implementation” ties, shareholders will question
stoke tensions between the Mayor’s every three years. But this year’s of regulation globally. whether it is worth staying in London. George Osborne is try-
office and the Treasury, with Johnson review will go beyond the routine It is understood that no final deci- The bank said it paid $4.85bn (£3bn) ing to reassure mem-
having repeatedly pushed for less analysis due to a rapidly changing reg- sion will be made on the bank’s dom- in taxes globally last year, with $383m bers of the Banking
banker-bashing rhetoric from the gov- ulatory landscape, with some saying it cilie until the Independent Banking going on UK corporation tax and Commission that he
ernment and warning that the 50p tax is now likely to result in a decision to Commission (IBC) reports in $300m on the UK’s one-off bonus tax.
rate is a “hostile signal” driving talent up sticks from the City. September. But if the IBC recommends HSBC’S RESTLESS INVESTORS: P4
backs their work

FTSE 100 t5,990.39 -14.70 DOW t12,169.88 -88.32 NASDAQ t2,784.67 -14.07 £/$ 1.63 unc £/¤ 1.16 t-0.01 ¤/$ 1.40 unc Certified Distribution
03/01/11 till 30/01/11 is 97,465

A
According to the FT,
our MBA is going places.
Meet us at our next Experience Day on 19 March 2011.

w
www.cassmba.com
ww.cassmba.com
2 News CITYA.M. 7 MARCH 2011

Cameron needs to act – not just talk NEWS | IN BRIEF


UK families worst off for tax
Traditional UK families with one working
parent get the worst tax deal in the
rhetoric that is desperately needed in governed. To imply otherwise is a case cost to business of £4.526bn. And what world, according to a new survey. A
a country that has fallen out of love of shameless buck-passing. about the crazy Bribery act, another study for the Christian social policy
with hard work and risk-taking and It is not some faceless, Whitehall- well-meaning change which will crim- charity CARE found Britain topped the
which has become dangerously based mandarin who is abolishing the inalise swathes of innocent behaviour world league table for the highest tax
addicted to debt-fuelled instant grati- compulsory retirement age, a well- and end up costing firms fortunes in burden on a married earner with two
fication. meaning but unworkable change legal advice? children, compared to a single person on
But if something sounds too good which means that anybody over the Sure, officials will make these more the same wage. Proportionally, the mar-
to be true, it usually is – and all the age of 65 could sue for discrimination costly than they need to be – but at ried worker pays a third more than the
EDITOR’S LETTER good words at the weekend soon fall if they are ever let go. It is the coalition the end of the day these are pieces of single person, the study found. In
apart on closer analysis. Cameron is government. It is not bureaucrats who legislation voted through by the gov- Britain, the tax burden on a married
ALLISTER HEATH right that bureaucrats specialise in are hiking employee national insur- ernment. It may be following the EU’s couple on one wage of £33,745, as a per-
gold-plating rules and making life dif- ance in April, which means that the orders, of course – but the govern- centage of the tax burden on a single
ON the face of it, David Cameron’s ficult for people – in fact, he could higher rate of tax will climb to 42 per ment could simply refuse or reform person on the same wage, is 73 per cent.
pledge yesterday to “take on the ene- have gone even further in his critique, cent and the top rate to 52 per cent – it the UK’s relationship with the EU to In Luxembourg it is three per cent.
mies of enterprise” was a break- pointing out that many of the coali- is the politicians. It is not officials who prevent some of this madness.
through. It was great to see the prime tion’s reforms are being sabotaged by are introducing a flurry of new labour Yes, in every case the law is wors- Polygon offers an exit price
minister at last get off the fence and the civil service. But he is wrong to market laws – seven major changes in ened by officialdom. This is especially Polygon Capital is offering investors 72
criticise the officials and bureaucrats imply that officials are uniquely guilty 2011 alone – that will make it even less true of planning rules, where local cents on the dollar to withdraw from
that have done so much to halt or are somehow the originators of the economic for employers to hire staff. councils behave in absurd ways. But the fund. The offer comes three years
progress and job-creation in Britain. bad rules crippling UK Plc. The most costly will be the right to unless Cameron genuinely takes the after the near collapse of the hedge
He joked that even his baby daughter Civil servants and officials – nation- request time off to train, which will axe to laws that he has until now been fund, which faced a $7.5bn (£4.6bn) loss
Florence knew that “tax and regula- al as well as local – only operate with- have an annual recurring cost to busi- happy to promote, yesterday’s speech in 2008. According to the Financial
tion” was holding the country back – in the legislation – and that is the ness of £174.96m; the agency workers will turn out to have been yet another Times, Polygon has sent a letter to
and promised to “be on the side of responsibility of the government, directive, which will have an annual piece of substance-less spin. We will investors advising them of the offer.
everyone in this country who wants to which passes laws in Parliament. At recurring cost to business of £1.548bn; soon find out. Last May investors were offered their
create jobs, and wealth and opportu- the end of the day, the government is and next year’s pensions reform, Follow me on Twitter: @allisterheath money back, but only at a 25 per cent
nity.” It was all good stuff, the sort of responsible for the way this country is which will have an annual recurring allister.heath@cityam.com discount.

7th Floor, Centurion House,


24 Monument Street, London, EC3R 8AJ
Tel: 020 7015 1200 Fax: 020 7283 5334
Chase tipped
for Glencore
Email: news@cityam.com www.cityam.com
Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor David Crow
Night Editor Katie Hope
Business Features Editor Marc Sidwell
MINING not qualify because he was formerly

Lifestyle Editor Zoe Strimpel


Sports Editor Frank Dalleres BY JULIET SAMUEL chief executive of the company. Prince Andrew is under scrutiny for his links with Jeffrey Epstein
Art Director Craig Gaymer The Swiss commodities giant is

Prince Andrew under fire


Pictures Alex Ridley GLENCORE is narrowing down its understood to be in the process of
prospective list of candidates for a short-listing candidates for a replace-
Commercial chairman to replace Willy Stothotte ment alongside a general overhaul of
Sales Director Jeremy Slattery as it prepares for an initial public its board.
Commercial Director Harry Owen offering (IPO), with outgoing Petrofac Former BP chairman Tony
Head of Distribution Nick Owen chairman Rodney Chase seen as the Hayward has been touted as a possi-
favourite to head the commodities ble directorship appointment. TRADE The Duke of York is set to lead a

Distribution helpline trader. Glencore declined to comment yes- Saudi trade mission next month,
If you have any comments about the distribution BY JENNY FORSYTH
of City A.M. Please ring 0207 015 1230, or email Glencore is getting ready for an IPO terday on some of the names being after an analysis by the UK Trade &
distribution@cityam.com that could be worth as much as touted in the media and sources said THE Foreign Secretary, William Investment agency identified it as an
$60bn (£37bn), although as City A.M. that the decision to make a top level Hague, has defended Prince Andrew’s attractive potential market.
Editorial Statement has revealed, a significant proportion appointment was some way off. work as a trade ambassador amid However he is facing increasing
This newspaper adheres to the system of of the shares could be issued by the growing controversy over his links to scrutiny over his link to billionaire
self-regulation overseen by the Press Complaints Hong Kong stock exchange instead of Rodney Chase was convicted paedophile Jeffrey Epstein. financier Epstein, who was sentenced
Commission. The PCC takes complaints about the being listed solely in London. Hague told the BBC he had “full to 18 months in prison in 2008 for
editorial content of publications under the Editor’s being tipped as a pos-
Under the terms of the UK confidence” in the work the Prince soliciting a minor for prostitution.
Code of Practice, a copy of which can be found at
www.pcc.org.uk sharelisting law, however, Glencore sible independent was doing. “I’ve seen a lot of benefits According to reports today, his role
Printed by Newsfax International,
must appoint an independent chair- chairman for Glencore that he has brought in countries that as Britain’s special trade representa-
Beam Reach 5 Business Park, man before it can float here. yesterday I have visited, where he’s been per- tive is likely to be downgraded after
Marsh Way, Rainham, Essex, RM13 8RS Its current chair, Stothotte, does forming that role,” he added. the next bi-annual review of his work.

WHAT THE OTHER PAPERS SAY THIS MORNING


sis in the Middle East has worsened,
the latest exchange data show that
traders are selling “short” the curren-
TESCO PUSH ON MUSIC GROUPS’ CD cy. The big US fiscal deficit and con- INVESTIGATORS STUDY CADBURY ED BALLS AND YVETTE COOPER HEFNER TAKES PLAYBOY PRIVATE
DEALS cerns about the effect of rising oil INDIA BRIBERY ALLEGATIONS REFERRED TO WATCHDOG OVER A partnership led by Hugh Hefner has
Tesco is pushing music companies to prices have been blamed by some for Kraft Foods has been subpoenaed by CHILDRENS’ EXPENSES succeeded in taking Playboy private.
accept minimal upfront payments for the dollar’s slide. the US Securities and Exchange Ed Balls and Yvette Cooper have been Playboy Enterprises Inc. said that its
the compact discs they ship to the Uk Commission over accusations of referred to the parliamentary stan- acquisition by Mr. Hefner’s Icon
retailer, in a renegotiation that will BAE BRACED FOR TOUGH US CURBS bribery at Cadbury’s operations in dards watchdog over £14,000 of Acquisition Holdings LP has closed.
test how record labels’ bargaining BAE Systems is braced for the imposi- India. The world’s second-largest food expenses made in relation to their The $6.15-per-share deal was funded
power has diminished in line with tion of strict curbs on its business by company, which acquired the British children. Although they have not with $195m of debt and $185m from
shoppers’ interest in CDs. Instead of the US, as it moves closer to resolving confectioner last year in a controver- breached the regulations, Andrew the private investment firm Rizvi
paying £7 or £8 upfront for a typical a year-long review by the State sial £11.9bn deal, said that it had Bridgen, Tory MP for North West Traverse and Playboy management,
album, Tesco wants to pay just 50p Department of its guilty plea to a con- received the subpoena on February 1 Leicestershire, has written to John including Hefner. Under the deal,
initially, with the remainder handed spiracy charge last year. as part of an investigation by the SEC Lyon, the standards commissioner. He Rizvi Traverse will own about 60 per
over when it sells the disc, Rob Salter, under the US Foreign Corrupt has asked him to investigate the shad- cent of the company. Mr. Hefner will
Tesco’s entertainment director, told RUSSIA SETS UP $10BN FUND TO Practices Act, which bans the pay- ow chancellor and shadow work and own about 37 per cent, and other
the Financial Times. ATTRACT PRIVATE EQUITY ment of bribes to foreign officials. pensions secretary. executive management will have the
INVESTMENT remaining three per cent.
TRADERS “SHORT” DOLLAR AS The Russian government is setting up SPOTLIGHT FALLS ON GROCERS’ GRAND BUFFETTOLOGY COMES TO BRITAIN
CURRENCY LOSES ATTRACTION a $10bn fund to co-invest with lead- JOB CREATION CLAIMS It sounds like an American cult, but NICKELODEON GIVES NEW KICK TO
Hedge funds and forex dealers are ing international private equity firms Britain’s leading supermarkets have later this month, UK investors can NINJA TURTLES
betting record amounts against the in an effort to attract foreign capital been accused of misleading planning take advantage of the science of Viacom’s Nickelodeon is betting that
dollar, reflecting a growing belief to the country, and has asked authorities by claiming to create tens Buffettology for the first time. the Teenage Mutant Ninja Turtles
that the US currency has lost its Goldman Sachs informally to guide of thousands of jobs when they Buffettology is the name of a 1999 still have some fight left in them. The
haven appeal and that Eurozone the project, according to people employ fewer workers than two years book written by Mary Buffett, who cable channel spent $60m to acquire
interest rates will soon rise. As the cri- familiar with the matter. ago. they did two years ago. was married to Peter Buffett. the global rights to the franchise.
CITYA.M. 7 MARCH 2011 News 3

CBI calls for


Cameron: I’ve land auctions to
got a plan for boost growth

UK enterprise
BUSINESS


THE government should introduce
“growth zones” to parts of the coun-
try that have become overly reliant
on government funds in recent
years, the Confederation for British
Industry (CBI) said today.

POLITICS grants of up to £2,000. The group, which represents


BY JULIET SAMUEL •To lower taxes on patent income to 240,000 businesses, called for de-regu-
ten per cent to support the UK’s lation of some green belt areas, and
PRIME Minister David Cameron pharmaceuticals industry land auctions in single areas, to stim-
made a bid to convince the public • To open up the bidding process for ulate growth. It said industrial parks
that his government has a plan for government contracts to smaller should have autonomy over decisions
growth as well as deficit reduction firms. such as planning permission and
in a speech at his party’s spring con- • To continue to make trips abroad energy generation.
ference in Cardiff yesterday. to promote British trade with other In a letter to George Osborne before
Re-branding the coalition “an countries, despite criticism for his the chancellor’s budget on 23 March,
enterprise government”, Cameron visit to the Middle East with UK arms the CBI said the government needs to
declared war on “the enemies of dealers. provide a clear “road map” for reduc-
enterprise” for “taxing, regulating, But despite his claim to support ing the 50p top rate of income tax.
smothering, crushing, getting in the enterprise, Prime Minister presented “Mobile talent needs a good reason
way” over the last decade. He singled the banking industry as an econom- to do business in the UK,” CBI head
out obstructive planning officials ic problem rather than as a part of John Cridland said.
and interfering bureaucrats as the the solution. The CBI wants more credit made
main culprits. He pitted large and small business available for mid-cap sized firms.
In an attempt to smooth the way against one another: “We’ve got “The volumes of debt raised in the
for George Osborne’s forthcoming another £10 billion for small busi- listed and private placement market
budget, which the chancellor will nesses from the banks,” he said, by mid cap firms is far smaller in the
present in two weeks’ time, the referring to the banks’ lending UK than in the US,” it said.
Prime Minister promised: agreements under Project Merlin, “The budget should create the
•To bring back Margaret Thatcher’s “and my guarantee to you is this: I’m framework for a Mittelstand of mid-
“enterprise allowances” on a nation- going to watch those banks like a cap businesses by ensuring they can
al scale. Under the scheme, would-be hawk and make sure they deliver for access the capital they need to
entrepreneurs can submit business Britain’s small business men and expand at home and abroad,”
plans in order to win government women.” David Cameron wants to convince voters that he has a growth plan Picture: PA Cridland argued.
4 News CITYA.M. 7 MARCH 2011

ANALYSIS l HSBC pre-tax profit by region in 2010

UK
$2.4bn
TOTAL:
$19bn Shareholders
(12.6%)

North
Europe
$1.9bn
(10%)
Asia
Pacific
$5.9bn
(31%)
query London
base for HSBC
America
$0.45bn
Hong
(2.4%)
Kong
Latin Middle $5.7bn
America East (29.9%)
$0.89bn After the imposition of the bank levy,
$1.8bn
(9.5%) (4.7%) investors are restless, says Juliet Samuel
HSBC shareholders are becoming The European Council published a
increasingly restless over the bank’s report in January showing that the
domicile, with the UK bank levy a par- UK’s bank levy is the most stringent
ticular bugbear due to the proportion and wide-ranging in Europe, warning
of its incomes earned abroad. of “spill-over effects, distortion of com-
The bank has said that the levy will petition and relocation of businesses”
cost it $600m (£369m) this year, as a result.
between the £315m and £390m fore- HSBC’s annual report shows that it
casts for RBS and Barclays respectively, made just an eighth of its pre-tax prof-
despite HSBC deriving a far greater its in the UK last year (see above), and
proportion of its income from abroad. the numbers of staff it has based in
By contrast, Standard Chartered, Europe has been declining for several
which makes nearly all of its money years.
overseas, said it would put aside Between 2008 and 2010, the bank’s
$180m (£110m) for the cost of the levy European headcount fell 7.7 per cent
this year. to 75,700, whereas its Asia-Pacific staff
HSBC chief executive Stuart Gulliver numbers rose 2.1 per cent to 91,600.
said yesterday that the bank would The bank is also a relatively recent
prefer to stay in London and said that arrival in London, having moved its
reports that it will imminently decide headquarters here in 1992.
to move elsewhere were “speculative It is currently conducting a review
and presumptuous”. of the costs of staying in London,
But he added: “We are, however, in which it does every three years.
light of possible regulatory changes But this time, the bank’s chairman
and additional costs such as the bank Douglas Flint has promised to pub-
levy, being increasingly asked by share- lish a summary of the report’s find-
holders and investors about the likely ings in a clear demonstration that
additional cost of being headquar- the bank is taking shareholders’ con-
tered in the UK.” cerns seriously.

ANALYSIS l HSBC
740
p

720

700
652.50
4Mar
680

660

23 Dec 12 Jan 1 Feb 21 Feb

Industry dismayed by Mervyn


King as Bank eyes new powers
receives a raft of new powers over

BANKING financial institutions.


BY JULIET SAMUEL A regulatory shake-up by George
Osborne will see the Financial Services
THE banking community has reacted Authority broken up and its powers
with “dismay” to comments by Bank redestributed among several bodies
of England governor Mervyn King that overseen by the central bank.
the industry exploits gullible borrow- King said over the weekend that he
ers and has failed to learn the lessons was surprised that there is not more
of the credit crisis. anger directed against bankers. “If it’s
“Mervyn King’s comments are possible to make money out of gullible
extremely unhelpful,” a senior banker or unsuspecting customers, that’s per-
told City A.M. “The reaction of the busi- fectly acceptable (to them),” he said.
ness community is dismay. I don’t Angela Knight of the British Bankers
know what his game is. He’s making Association said that King had failed
the situation significantly worse and to take account of how the industry
he’s speaking irresponsibly.” has changed since 2008. “I sincerely
Individuals in the industry are hope he is as committed as we are to
reluctant to criticise King publicly forming a good relationship (when the
shortly before the Bank of England Bank gets its new powers),” she said.
CITYA.M. 7 MARCH 2011 News 5

ANALYSIS l Expected interest rate hikes over next 12 months

Hawks look to 1.25

1
% interest rates
Euro-Zone

end two years


UK
0.75

0.50
US

of 0.5pc rates 0.25

0.0
Japan

3 day moving average


-0.25

UK ECONOMY Claude Trichet dropped strong hints


Jan 10 Apr 10 Jul 10 Oct 10 Jan 11
BY JULIAN HARRIS last week. Source: Capital Economics
At least one Bank member will
INTEREST rates have been held at a his- “almost certainly” join the three vot-
torical low of 0.5 per cent for two years
this week, as the Bank of England
ing for a rise, said Scott Corfe of the
Centre for Economic and Business ECONOMISTS’ VIEWS: HOW LIKELY IS A RISE IN INTEREST RATES
meets to decide whether to begin nor-
malising policy.
Research.
The dollar has languished against
THIS WEEK? Interviews by Julian Harris
Hawkish sentiment is on the rise in the pound and the euro on the back of
2011, with two members of the Bank’s interest rate expectations, according to
monetary policy committee (MPC) Capital Economics. “Investors have SCOTT CORFE | CEBR PHILIP SHAW | INVESTEC

“ “
joining Andrew Sentance’s call for become more convinced about the
monetary tightening. prospect of tighter monetary policy in
Only two more of the MPC’s nine Europe,” said economist John Higgins. Our central view is that the MPC will wait Although the idea of a hike appears to be
voting members need to switch sides However, some analysts expect the until April or May - when economic growth in Q1 2011 gaining ground on the MPC, the majority of members
to induce a rise in the Bank rate. The MPC to wait for solid signs of the UK and the contents of the March Budget are known – still appear to be unconvinced. A significant data event
Bank announces its decision on bouncing back from disappointing before raising rates. The downward revision of GDP for or a new Inflation Report forecast will probably be nec-

” ”
Thursday. GDP results at the end of 2010. the fourth quarter of 2010 strengthens the case for the essary to trigger a member to change his vote
“We see its decision as being on a “Although inflation is high at pres- MPC to “wait and see”. to a hike.
knife-edge,” said Alan Clarke of BNP ent, the case for a rate rise is complicat-
Paribas. “The European Central Bank’s ed by weaknesses in other economic
flagging of a potential rate hike in indicators,” said Corfe.
April will encourage those looking for Business surveys indicated renewed SIMON WARD | HENDERSON GLOBAL INVESTORS


an early Bank of England move,” yet uninspiring growth in February.
Clarke added. Evidence of inflation in the UK will


The ECB is widely expected to be clearer on Friday, with the release The question for the waverers this month is “why wait?” February’s Inflation Report clearly signals the need for a rise, with
increase rates, after president Jean- of producer price data for February. the mean forecast for inflation two years’ out based on unchanged policies the furthest above the target since 1998.
6 News CITYA.M. 7 MARCH 2011

Virgin Money Keydata lands


building society
eyes stricken on the block

N&P business
ONCE a sleepy building society with
branches scattered around the historic
towns of East Anglia, Norwich &
Peterborough has slumped since the
collapse of Keydata.
The sale of the Keydata’s life settle-
ment bonds to more than 3,000 of its
customers could ultimately bring it to
its knees – and spark interest amongst
although the deal was talked down by buyers.

RETAIL BANKING
BY RICHARD PARTINGTON Norwich & Peterborough at the time. Last week’s ruling by the Financial
JC Flowers was thought to be look- Ombudsman could trigger compensa-
BUYERS are lining up for beleaguered ing to amass a collection of building tion payments totalling up to £10m
building society Norwich & societies to create a “supermutual”. lodged by angry investors.
Peterborough, as it attempts to grap- It has already bought a similar sized About 500 complaints against N&P
ple with the fallout of a Financial mutual to N&P in Kent Reliance in are with the Ombudsman, which
Ombudsman Service ruling against it. order to get a foothold in UK financial could mean it has to pay out.
Sir Richard Branson’s fledgling services. So far, Norwich & Peterborough has
Virgin Money financial services busi- Fenchurch Partners is handling the escaped unscathed. Reports suggest it
ness has been linked with the firm sale of Norwich & Peterborough, with could have paid a smaller sum into
and is said to be in advanced takeover a deal expected within the next few the Financial Services Compensation
talks. weeks. Scheme (FSCS) levy – the vehicle used
Led by Jayne-Anne Gadhia, the The deal comes as the building soci- to return money to investors that all
lender is in the process of setting itself ety faces a hefty charge following the firms in the sector pay in to – than oth-
up in an attempt to become a major collapse of Keydata, the firm that lost ers.
force in UK high street banking. investors in its bonds millions of The building society is said to have
Buying Norwich & Peterborough, pounds. paid into the fund in relation to
which operates 46 branches and has N&P last week lost its battle to income derived from its independent
almost 500,000 members, would help appeal a Financial Ombudsman financial advisory arm, with the full
the firm to develop its expansion Service ruling that ruled it had to pay figure to be revealed this week when it
plans. out up to £10m in compensation. reports its annual results.
Other potential bidders for the East The building society was one of the Other financial firms have since
Anglia-based business include US pri- biggest retailers of Keydata’s bonds. In been forced to pay millions of pounds
vate equity house JC Flowers. 2006 and 2007, it advised 3,100 cus- in compensation to the levy on ‘eligi-
The American group made an infor- tomers to invest £53.9m in the prod- ble income’ across their entire busi-
mal takeover approach last year, ucts. Virgin Money chief Jayne-Anne Gadhia is eyeing N&P’s branches. Picture: REX ness.
CITYA.M. 7 MARCH 2011 News 7

Prudential boss set to unlock bumper


FSA puts back £4.3m bonus despite investor unrest
date for bank of his £900,000 a year salary. He could criticism of Thiam’s proposed takeover.

INSURANCE
also receive a payment worth up to 300 Geffen, who holds around $50m
BY RICHARD PARTINGTON

probe report
per cent of salary under a long-term (£30.7m) worth of Prudential shares,
THE CHIEF executive of Prudential incentive plan. was among several large institutional
could land a performance-related bonus The Pru’s remuneration committee investors who were left footing a £450m
for last year worth up to £4.3m, despite has yet to discuss the payout, yet finan- bill for the failed approach.
the protests of some vocal shareholders. cial targets alone dictate 80 per cent of The firm had paid the cash in adviser
Britain’s biggest insurer, headed by the sum. fees on the deal, which would have been
Tidjane Thiam, is expected to announce Rebel shareholders had asked the one of the largest takeover deals by a
a leap in operating profits that will land board to limit payments to Thiam, after British firm.
Andrew Tyrie saying a public report him a bumper payout. It could post an he failed to successfully takeover Asian Geffen’s campaign against Prudential

BANKING
would be compiled. increase of almost 25 per cent for last rival AIA to create a global insurance comes after several high-profile dis-
BY RICHARD PARTINGTON However, a number of key players year, hitting £1.7bn. behemoth. agreements with firms he has invested
BRITAIN’S financial watchdog has with knowledge of RBS’ operations dur- A clause in Thiam’s contract means Investors, including the founder of in, including the Icelandic takeover of
delayed the publication of a long-await- ing the financial crisis have yet to be financial performance at the firm could Neptune Investment Management House of Fraser and the purchase of
ed report into the Royal Bank of interviewed, according to reports. trigger a bonus worth up to 180 per cent Robin Geffen, were outspoken in their Cadbury by US conglomerate Kraft.
Scotland’s collapse during the finan- Former RBS chief executive Sir Fred
cial crisis. Goodwin is said to have been inter-

Good numbers alone aren’t enough


The Financial Services Authority viewed just once, for a short period,
(FSA) had promised to publish its find- several months ago.
ings later this month, yet it will now A requirement for the regulator to
wait until April at the earliest to make gain the permission of those it inter-
its investigation public. views for the report could also be caus-

T
The regulator is currently compiling ing a delay, according to former FSA idjane Thiam has not had an improvement on last year’s £3.2bn. Management and the leader of the
a report, including interviews with top official Ian Mason. easy run since being seen to But will the figures be enough to shareholder revolt against Pru’s AIA
staff, into the management of the bank Now the head of law firm Baker & have led investors up the gar- placate investors still smarting from bid, will coincidentally be hosting a
in the run up to its £45bn government McKenzie’s regulation team, he said: den path during Prudential’s having to fork out some £450m on a roundtable on Wednesday to discuss
bailout. “They’ll try and publish as much as disastrous failed bid for AIA. £22.6bn bid that went nowhere? “consistency of income: the Holy
It has already spent £7.7m in fees they can whilst protecting the interests But the harried chief executive is In order to stay in his post for the Grail for investors”.
investigating RBS, although it has yet of those that have been investigated.” expected to find some relief in the long-run, Thiam will also have to The question is whether Thiam
to reveal any substantial findings. He added: “They’ll have put quite a insurance giant’s full-year results this show that he can deliver shareholder can persuade Geffen and his allies
In December, the FSA caused out- lot of thought into how to publish this. Wednesday. returns and income, rather than just that he can yet lead them to the Holy
rage amongst the public and politi- Given the interest there’s been they Operating profit is forecast to profit. The firm hiked its dividend Grail.
cians after it said it would not reveal can’t want to delay it for much longer. come in at £1.7bn versus £1.4bn last payment after the collapse of the bid,
the findings of its initial investigation. “They can’t put something out there year, while consensus predictions for but investors remain wary.
After the outcry, chair of the watch-
dog Lord Adair Turner wrote to
that is just a one page summary that’s
quite bland. The expectation is that
operating profit from European
embedded value run at £3.37bn, an
Robin Geffen, founder and chief
executive of Neptune Investment
BOTTOMLINE
Treasury Select Committee chairman there will be detail.” Analysis by Juliet Samuel
8 News 7 MARCH 2011 CITYA.M.



 
 
 
 


    

Board members such as Burberry’s Angela Ahrendts lift sales Picture: Micha Theiner

Women board
members lift
share prices
COMPANIES action to appoint more women onto

BY JENNY FORSYTH boards.


Research showed that, while the
THE best performing companies are boards surveyed had between six and
likely to have a smaller board size and 32 directors, 11 was the optimum
high proportion of female directors, number for a FTSE 100 company.
according to new research published The study also found a strong corre-
today. lation between share price perform-
Law firm Eversheds studied the ance and the number of independent
share price performance of 241 com- directors on company boards. When
panies around the globe between interviewed, directors narrowly pre-
January 2007 and December 2009, ferred independence to experience,
then used the data to find the “ideal” however 67 per cent believed both
board composition. were equally important.
Analysis showed high female pres- Mark Spinner, corporate partner at
entation was the third strongest link Eversheds, said: “During the financial
to good share price performance, crisis, many directors reported that
after board size and substantial share- there was a ‘power shift’, with execu-
holders – where a higher percentage tive directors relying on the experi-
of investors hold more than three per ence of non-executive directors more
cent of the issued capital each. than previously. However, the general
The study echoes the recent report consensus seems to be that this
by Lord Davies, who warned UK would not be a permanent change –
boardrooms were “in crisis” over the many directors believe now is the
low percentage of females on boards time for non-executive directors to
and called for the introduction of a ‘pull back’ and allow the executive
quota if companies do not voluntarily management team to manage.”
double female representation in the Eversheds said the analysis was
next four years. complemented with in-depth inter-
However, when interviewed, only views with 50 directors from a cross
55 per cent of directors thought that section of the companies. They were
diversity for its own sake was benefi- asked for their opinions on board
cial for board and company perform- role, composition and effectiveness,
ance and only half that number was then the findings were analysed by
directly in favour of taking positive region and industry sector.

ANALYSIS | THE IDEAL BOARD COMPOSITION

Source: Eversheds
CITYA.M. 7 MARCH 2011 News 9

Public sector
Inmarsat boss workers face
splits top job pension curbs


PENSIONS

for successor John Galliano


was fired over
BY STEVE DINNEEN
PUBLIC sector workers will have to
work until they are 65 or have their
pensions cut under recommenda-
tions expected to be made by Lord
Hutton this week.
alleged anti- He will also say that public sector

TECHNOLOGY firm added that there were some “strong Semitic remarks workers should pay thousands more
BY RICHARD PARTINGTON internal candidates” for the roles. Picture: REX into their pensions and be switched
Inmarsat’s share price has rocketed out of “final salary” schemes.
THE BOSS of satellite operator Inmarsat since it was first listed in London in 2005, Instead a “career average” sum will

Dior to support Galliano


will split his role in two when he steps guided under the leadership of be worked out, helping to offset the
down later this year. Sukawaty into the FTSE100. bias towards an elite minority.
Andrew Sukawaty, the firm’s long- The firm, which reports its full-year However, he will not recommend a
serving chairman and chief executive, results to the market this morning, has pension cap for the highest earners.

labels despite outbursts


will appoint two separate successors to also seen a boost from global instability. Pension contributions will increase
his role. Analysts at Citi said the satellite firm by an average of three per cent from
The move will bring the company in was a “play on global instability” after 2012 as part of a broader shake-up of
line with boardroom best practice for earthquakes in Haiti and Chile boosted retirement funds.
when he moves up to become executive the demand for communications cover- Hutton’s interim findings last
chairman for at least another two years. age in remote areas by 62 per cent year October highlighted the need for
Making the change could help to on year in the first quarter of 2010. FASHION future of the John Galliano label, public sector staff to work longer

secure the long-term success of the firm, ANALYSIS l Inmarsat BY HARRY BANKS which is 92 per cent owned by Dior. hours and pay higher contributions.
which has been built into a technology
720
684.50 “For the moment, the (John It is thought the report will call for
powerhouse by Sukawaty over the years. p 4Mar FRENCH fashion house Dior yesterday Galliano) business continues,” said a mechanism to review any new legis-
Reports had suggested Inmarsat’s said it planned to continue support- Dior chief executive Sidney Toledano. lation to deal with increasing life-
finance director Rick Medlock and chief 690 ing the eponymous label of John “This is a business which has expectancy.
operating officer Perry Melton were in Galliano, its star designer fired this licences and tomorrow we will show
the frame to lead the company. However week over alleged anti-Semitic the collection in the showrooms as Lord Hutton is set to
the firm said last night it was not yet 660 remarks. usual... I am here to prove that busi- recommend retirement
close to appointing a successor. Dior’s parting with Galliano, after ness goes on... and to support the
However, Sukawaty has not appointed an online video clip showed him teams.”
age for public sector
a headhunter in order to pursue an exter- 630
expressing admiration for Adolf However, experts questioned the workers be raised
nal replacement. A spokesperson for the 23 Dec 12 Jan 1 Feb 21 Feb Hitler, had raised questions about the label’s long-term future. from 60 to 65
The Capitalist
10 CITYA.M. 7 MARCH 2011
EDITED BY
HARRIET DENNYS
GOT A STORY? EMAIL
thecapitalist@cityam.com

COLD COMFORT AS ICE GALA NETS


£150K FOR ARCTIC TREKKERS
BATTERSEA Power Station was trans- Tables at the party were snapped lead singer Simon Le Bon, whose
formed into a chilly Arctic cave last up for up to £1,000 within hours of band performed songs from their
Thursday for an “extravagant going on sale by City firms including new album All You Need Is Now.
farewell” for a team of eight wound- Lloyds Development Capital, Carillon The servicemen’s expedition – a
ed servicemen preparing to walk to and sponsor Artermis Investment, trek of 200 nautical miles – will start
the North Pole. helping the event raise more than at the end of March, and the group
The private event for 500 guests £150k on the night. hopes to reach the Geographic North
was the Ice and Diamonds send-off Spotted on the white carpet were Pole on 21 April.
ball to raise money for the trekkers’ singer Sharleen Spiteri, comedian They also hope the charity’s patron
charity Walking for Wounded before Rob Brydon and supermodel Yasmin HRH Prince Harry will be able to
the team sets off next spring. Le Bon, the wife of Duran Duran’s come along for the frozen ride –

Summer Sale! Singer Sharleen Spiteri walks the white carpet at the Ice and Diamonds charity ball

although The Capitalist hears this plan


is subject to “Royal commitments
pending”. Watch this space.
The confidential numbers for the
business secretary were listed in an
illustration (pictured below in a
redacted version) for a feature on dis-

ic e
graced US financier Jeffrey Epstein,
THREE PIECE SUIT

Pr
with the Mail on Sunday’s picture

lf
THERE are brand ambassadors, and caption stressing “we have blanked

a
then there is Simon Wolfson, chief out the numbers to protect

H
executive of Next, who proved he is in [Mandelson’s] privacy”.
Up to touch with his customers by wearing
one of the retailer’s three-piece suits
Except, owing to some not-quite
invisible ink, the numbers were clear-
to address a Westminster conference ly discernible, and Mandelson’s
last week. home, Westminster and country

ht s
Never mind his brief of explaining house phones were no doubt ringing

Flig
how to grow the economy, Wolfson off the hook until a swift phonecall to
opened his speech by proclaiming BT put an end to the fun.
that the waistcoat is back in fashion, “This number has not been been
even telling the rapt crowd that they recognised,” came the reply when The
Capitalist called Peter’s direct office
line yesterday – looks like Mail on
routes Sunday editor Peter Wright will have
on selected to make his amends in person.

VIEW FROM THE TOP


HATS off to Alice Goddard, vice presi-
dent of the Frequent Borrower
Group/Royal Bank of Scotland, who
has been named as one of Red maga-
Guernsey zine’s “most influential women of the
Bergerac Leeds future” at the age of just 26.
Bradford Newcastle The honour is part of the maga-
Off the peg: Simon Wolfson zine’s “20 under 30” list in its April
issue, on sale now, and Alice has been
can buy his outfit for themselves at named alongside The X Factor winner
Next for less than £300. Alexandra Burke and Olympic sprint-
On-brand and on-message – per- er Christine Ohurougu as “The
Newqua haps his rival Topman, still tainted by Financial High-Flyer”.
y Jersey the time its brand director David Her boss Rebecca Manuel – herself
Shepherd remarked the shop’s suits no shrinking violet as global head of
Edinburgh Paris
are for “hooligans”, could take note. loan syndicate at RBS – said: “Alice
possesses a winning combination of
drive, intelligence, strong interper-
LLOYDS’ LOSS sonal skills and the desire to succeed.”
COULD there be a clash of personali- Note to City headhunters: Alice is
ties at Lloyds Banking Group? The taking some well-earned leave, so
Capitalist only asks because the bank’s time your calls for her return.
Offer ends group communications director,
Brigitte Trafford, has decided to
midnight seek pastures new after less than
a year in the role.
Tuesday. Trafford’s parting statement
before her exit later this month
maintained she enjoyed her
Book now! short time at Lloyds “enor-
mously”, but “as the Group
enters its next phase with a
new chief executive, I decided
this is the right time for me to
move on”. The Capitalist is sure
Plus... the bank’s new CEO Antonio
Horta-Osorio isn’t taking it
Winter flights now on sale! personally.

Keeping Britain on the move VISIBLE INK


RED faces at the Mail on
Sunday yesterday, after a
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12 News CITYA.M. 7 MARCH 2011

City needs to focus on growth to aid economy


tough decisions on dealing with the delivering the investment, wealth cre- to support both our largest firms and petitors for business in emerging
deficit by reducing spending – not ation and jobs needed to compensate the 4.8 million SMEs across the coun- markets are often emerging markets
easy in these challenging economic for reduced public expenditure over try. themselves.
circumstances. the coming years. If even 20 per cent of these were to London is a natural location for
I was however pleased to hear The City already makes a huge con- tap into the wealth of available oppor- trade and investment with these rap-
Business Secretary Vince Cable shift tribution to the UK, accounting for 10 tunities and hire an extra worker the idly developing countries but we
the agenda by placing his focus firm- per cent of GDP, over £53bn into the benefits for the economy would be must persuasively continue to make
ly on growth when he spoke at last Exchequer, 300,000 jobs in the City of immense. the case. That is why I visited Turkey
CITY COMMENT week’s Trade and Industry Dinner. London – and another three quarters Job creation is the best economic early in the New Year, and recently
MICHAEL BEAR The City has been at the centre of
world trade and industry for many
of a million in financial services
across the country.
policy so we must pro-actively take
the City’s offering to the world – par-
returned from two weeks in the Gulf
States.
centuries. The City also accounts for £42bn in ticularly to the emerging markets. In many ways, British history is a

A
S we edge closer to this Indeed, Mansion House was built net exports, half the UK’s deficit on Over the next five years, emerging story of trade and industry.
month’s Budget, the UK busi- in the 18th century on one of the ear- trade and goods. And as CBI data economies are expected to account Strengthening these longstanding
ness community has been call- liest places of commerce in London, shows, strong growth of financial for over 50 per cent of global growth. relationships will be vital to writing a
ing for a clear growth strategy the medieval “Stocks Market”. services in the second half of 2010 Some have pointed out that capital in more prosperous future for the UK
that will help to turn austerity into We need to turn to these pillars of helped to drive investment in the these markets is moving away from and the world.
prosperity. growth again. It is clear the private wider UK economy. developed countries – especially New Michael Bear is Lord Mayor of the City of
The government has already taken sector has a crucial role to play in The City has the scale and liquidity York and London. In fact, our com- London

BT advertising
Sky investors to play hard war boosts UK
ball with Murdoch empire broadband
TELECOMS


BY STEVE DINNEEN
MEDIA BSkyB’s share price News Corp with a 70 per cent tured, avoided a lengthy Competition

BY STEVE DINNEEN closed at 832p on Friday – a stake, below the 75 per cent Commission probe into the bid after FIERCE competition between Sky and
massive 45 per cent premi- which could result in de-listing Hunt accepted a concession to spin- BT is the most likely explanation for
BSKYB investors are preparing to play um on its pre-bid closing and below the 90 per cent need- off Sky News into a separate, pub- the unusually high growth in the UK
hardball with Rupert Murdoch’s price in June of just 574p. ed to squeeze out remaining licly-traded entity, in order to broadband market last year, according
News Corp over its proposed News Corp’s hopes of minorities. counter media plurality concerns. to analysts at Enders.
takeover. keeping the deal price Adding to the News Corp Net profit at Sky hit £179m for its It enjoyed an “exceptionally strong”
Murdoch tabled £7.8bn in down were dealt a blow headache, analysts at fiscal first half, compared to £128m final quarter of last year, adding
September to buy the 61 per cent of by an RBS note that said Jefferies say the firm the year before, buoyed by demand 397,000 new customers, beating some
the broadcaster it does not already synergies could justify a could have its credit for its new hardware, including forecasts by around 100,000.
own but now investors are pushing bid over 900p a share. rating cut if it is 70,000 people paying for its 3D servic- Enders says the most likely cause is
for a price closer to £11bn. Analyst Paul forced to bid more es and 343,000 new HD users. heavy marketing by BT Retail and Sky
Talks between the two sides were Gooden said: “We than 850p a share. Customers were on average paying since the summer, with the bad weath-
broken off while regulatory clear- believe BSkyB’s Standard & Poor’s a record £541 a year. Only 9.5 per er in December and the return of
ance was sought, with culture secre- stand-alone value said last year that a cent of them left on an annualised some mobile-only households to
tary Jeremy Hunt finally giving the is 840p, however a bid of 840p may basis, which was also better than broadband also playing a role.
bid the green light last week. combined News have a negative expected. Sky led the pack, with net adds of
The Sky board had hinted it would Corp/BSkyB would impact on News 204,000 in the third quarter, more
accept a bid over 800p a share but the enjoy synergies. The Corp’s BBB+ rating, ANALYSIS l BSkyB than double year-on-year, to take its
broadcaster has continued to most significant would which the firm is des- 830
p 825.00 total broadband base over 3m. BT
strengthen its position since then, be through bundling, perate to maintain. 4Mar Retail added 188,000, up 84 per cent
hitting its target of 10m subscribers most obviously using Given higher earnings 800
year-on-year, while Virgin Media added
and increasing its first half profits by digital newspapers to and a reduction in just 41,000, 35 per cent down year-on-
40 per cent year-on-year. differentiate Sky debt at both firms, year. Everything Everywhere lost
Now investors including Fidelity, Broadband. We Jefferies said this is 770 18,000 subscribers, while O2 added
which owns three per cent of Sky, believe they justi- now likely to stand 8,000. There were about 19.6m fixed
and hedge fund boss Frank Brosens, fy a 900p plus per closer to 850p. 740
broadband lines in the UK at the end
who owns 1.18 per cent, are hoping share offer.” News Corp, head- of 2010, with annual subscriber
to push the price as high as 950p a Gooden believes ed up in Europe by growth growing by seven per cent, up
share. this could leave James Murdoch, pic- 23 Dec 12 Jan 1 Feb 21 Feb from 5.4 per cent in 2009.
CITYA.M. 7 MARCH 2011 News 13

Royal wedding to boost


struggling UK shop sales

RETAIL
“With January sales and VAT-freeze other bank holidays will boost sales,
BY JULIAN HARRIS promotions finished, and Valentine’s BDO said.
DESPITE sluggish retail sales growth in day the only significant date, retailers “In four weeks it will be April,” a
February, next month’s bank holidays had braced themselves for an ugly spokesperson said. “That means
will provide a spring bounce for the February,” said BDO’s Don Williams. brighter days and three bank holiday
high street, accountancy group BDO “However, retailers were breathing a weekends for people to hit the shops.”
said today. sigh of relief that year-on-year growth British retail has suffered a torrid
Like for like sales were up just 0.3 was still positive -- even when com- time of late, with consumer confi-
per cent in February compared to the pared to particularly strong figures dence plummeting to a near 20
same time last year, the BDO high this time last year,” Williams added. month low, according to the latest
street sales tracker found. The royal wedding and a cluster of Nationwide survey. The royal wedding adds another April bank holiday for shoppers Picture: GETTY

Manufacturing optimism
high yet inflation persists Reassuringly
attentive

UK ECONOMY
year where they left off in 2010, with
BY JULIAN HARRIS output growing and little sign that the
BRITAIN’S factory boom shows little export-led recovery is about to dry up
sign of slowing down, according to a in the near term,” said EEF economist
survey by manufacturing group EEF Lee Hopley.
released today. Strong demand from overseas is
However, rising global prices are driving the sector forward, she said.
increasingly being passed on to con- Growth in manufacturing activity
sumers, the report revealed. has held at a record high for the first
The survey reported a record strong two months of 2011, a purchasing
quarter in the three months to managers’ survey revealed last week.
February, with a positive balance of 25 However, price pressures continue
per cent of manufacturers reporting to burden the industry, EEF found.
an increase in output. “Manufacturers have reached the
And confidence is high for the near limit of their ability to absorb further
future, with 28 per cent more respon- cost increase with a balance of 26 per
dents expecting output to rise, rather cent of companies increasing their
than fall, in the coming 3 months. prices over the past three months,” the
“Manufacturers have picked up this report said.

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CITYA.M. 7 MARCH 2011 News 15

m
Over half of
London architect
400
Kingkey

tenants see
Finance Tower
441m
Floors: 100

finds record height rents rising


HOUSING
300 BY JULIAN HARRIS
PROPERTY OVER half British tenants expect

BY MARIA TADEO Farrells’ director Stefan Krummer. One rents to rise over the next 12 months,
of its main design features is the build- a Rightmove survey revealed today.
LONDON-based architect group ing’s curved profile. This form alludes The proportion of tenants expect-
Farrells has hit a new record-breaking to a fountain that is intended reflect ing a hike (52.6 per cent) dwarfed the
high with the topping of the Kingkey the wealth and prosperity of four per cent of respondents who
Finance Tower in China. The 100-storey Shenzhen. expect rents to fall.
skyscraper stands at 441 metres The Kingkey Finance Tower is the At the end of 2010, only 41.7 per
(1,440ft) and is the tallest building latest high-profile commission for cent anticipated an increase in rents.
designed by a British architect to date Terry Farrells and Partners in the Restricted opportunities for home-
towering over any construction in the region, which also includes the Beijing 1 Canada ownership are keeping more people
UK. South Station, as part of China’s new Square in the rental market, it said.
The Kingkey tower is twice the high-speed network opened in 2008, 200 “The days of plus 70 per cent
height of 1 Canada Square, Britain’s Hong Kong’s Mount Davis Villas and 230m owner-occupation are numbered,
tallest building standing at 230 metres The Peak Hong Kong leisure centre. Floors: 50 with the lenders who hoisted us up
(770ft) above the ground. It will also be TPF Farrells’ chairman Sir Terry to these levels now responsible for
taller than the 310m Shard London Farrell aims to capitalise on the grow- opening up a trap door beneath our
Bridge that is the set to rule London’s ing demand for British architectural feet,” said Rightmove director Miles
skyline as the UK’s tallest construction and engineering expertise across the Shipside.
once it is completed. emerging Asian region. “The housing aspirations of many
The newly topped Chinese giant is He said: “The economic growth in dangling by the precariously thin
already the eighth tallest building in China provides a natural opportunity thread of mortgage supply,” he
the world at the centre of a 417,000 for British architects and engineers added.
square metre office, retail, entertain- and there is strong appetite for British Meanwhile shortages in rental
ment, apartment and hotel complex expertise, design and imagination.” properties are also responsible for
located in the city Shenzen, one of His previous works in the UK 100 pushing up prices.
China’s major financial centres. include the redevelopment of South London is one of the worst areas
The entire site comprises the 441m Bank, Covent Garden and Charing for shortages in rental accommoda-
tower, with over 160,000 square metres Cross station in central London. He is tion, the survey said, along with East
of office space and a six star hotel occu- currently working on regenerating Anglia.
pying 23 floors that will feature a spa, Earls Court and the Thames Estuary, Well over half (58.4 per cent) of ten-
swimming pool and fitness centre, a and he was recently appointed to ants reported that they would like to
podium, as well as two commercial London Mayor Boris Johnsons’ Design buy a property, but could not afford
buildings and five residential complex- Panel. TPF Farrells has a team of 130 to.
es. The design of the Kingkey Finance professionals throughout Asia includ- Meanwhile, almost a third (29 per
Tower was led and supervised by TFP ing designers and project managers. cent) of people with mortgages decid-
ed to exceed their repayments in the
last 12 months, a separate survey by
Moneybasics revealed.

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stick to the budget targets laid down Labour party, clinched shortly after Labour to drop its demand that
in an €85bn (£73bn pound) EU/IMF midnight, seems designed to curry Ireland be given an extra year to get
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European partners round to giving tive Germans and draws a veil over and is aiming for the bulk of the
it easier terms on the loans. some of the anti-EU rhetoric adjustment to be achieved through
Ireland’s prime minister in-wait- deployed in the election campaign. spending cuts.
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sure to persuade Europe’s only the national interest of shrink the shortfall from nearly 12
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16 News CITYA.M. 7 MARCH 2011

High oil cost provides investment opportunity


for one, have been completely caught alone is having a huge impact on mar- are the opportunities? Dwane recom- through more quantitative easing
off-guard by the speed at which ket dynamics. mends looking closer at companies (QE), or via growth supportive fiscal
changes have been happening. Neil Dwane, chief investment offi- with technology that makes us more policies. If QE is big enough, Dwane
For the fifth week in a row we have cer for Europe for RCM, says that you efficient, like alternative energy, and says that the asset class to benefit the
witnessed pretty substantial capital should think of the spike in oil prices says there are a lot of firms that most in the longer term will be equi-
outflows from emerging market like a tax on global activity. “It costs couldn’t compete when oil was at $50 ties – as long, of course, as the extra
funds, but for how long will this con- more for all of us to do things when per barrel, but now once again can QE doesn’t become inflationary.
tinue, and what will the impact of the oil prices are high.” Starting during compete with oil at $100 per barrel. The FTSE 100 is up around 56 per
CNBC COMMENT unrest be on developed markets? the fourth quarter of last year, He says that other clear beneficiaries cent (yes, fifty-six per cent...) over the
LOUISA BOJESAN European sovereign debt issues still
exist, and another round of tougher
investors started exiting emerging
markets and putting money back into
could be the exploration and produc-
tion companies (like BG Group,
past two years. Dwane thinks there is
a good chance that the UK market
am in the middle of reading a bank capital rules is also right around developed markets. Inflation has Tullow Oil, and Cairn Energy) for the will grow 10-20 per cent this year,

I book from 2008 that predicted –


almost – the unrest that we’re
now witnessing in the Middle East
and North Africa. In hindsight, per-
haps many of us aren’t really that sur-
the corner (with some recommend-
ing that British regulators come
down even harder on British banks
than what is required from the
European authorities.) On top of that,
been heading up for quite some time
now, and markets have been driven
by the belief that we should be allo-
cating out of bonds and back into
equities, says Dwane.
simple reason that if they find oil in
the ground, it is more valuable now
that oil is at a higher price. Dwane
also thinks that if oil prices remain
high, policy makers will have to try to
with dividend growth being even bet-
ter than earnings. So lots of opportu-
nities to make money – despite all the
fears and worries.
Louisa Bojesen is a co-anchor of CNBC’s
prised at the turn of events – but I, the price of oil has soared, and this So if oil is moving higher, where offset it. They could either do this European Closing Bell.

NEWS | IN BRIEF

John Lewis Galleon trial begins tomorrow


Raj Rajaratnam, the hedge fund billion-
aire, is set to face the court tomorrow in

issues £50m a trial expected to last two months. The


co-founder of Galleon Group, who says
he is innocent, is accused of making
more than $34m through inside infor-
mation. He is charged with 14 counts of
conspiracy and securities fraud and

retail bond faces more than 15 years in prison if he


is convicted. He is one of 25 charged in
the alleged trading ring. Of that group,
19 have pleaded guilty.

Rango tops weekend box office


Animated family comedy “Rango”, with

RETAIL rent low interest rates and yields Johnny Depp voicing the role of a cow-
BY HARRIET DENNYS make the retail bond an attractive boy chameleon, topped North American
investment option for the company’s movie box offices with $38m (£23m)
THE John Lewis Partnership has Partners and cardholders. over the weekend, according to studio
issued a retail bond for its cardhold- He said: “For many years, the estimates yesterday. Matt Damon
ers and Partners in a bid to raise Partnership has raised finance via thriller “The Adjustment Bureau”, which
£50m of funds by April. corporate bonds and bank lending. like “Rango” was in its debut weekend in
Customers who hold either the We want to explore alternative ways John Lewis is fundraising through its retail bond for customers Picture: Micha Theiner theatres, took in $21m to land in the No.
Partnership or Account cards, as well of raising funds as part of the 2 spot, and another newcomer, romance
as current Partners in the employee- Partnership’s borrowing programme, PREVIOUS FLOAT OFFERS FOR CUSTOMERS “Beastly”, took third place with £10.1m.
owned firm, can invest lump sums of and to reach out to the retail
between £1,000 and £10,000 into the investor.” ● Ocado year bonds in the company that paid Consumers fear card fraud
John Lewis Partnership bond without Ian Fleming, head of Treasury at Middle England’s favourite online grocer interest on customers’ investments in Half of consumers worry about card
having to go through a broker. the John Lewis Partnership, said: “We offered priority shares to customers last boxes of chocolates. fraud more than other financial threats,
The bond is a five-year savings prod- carried out research among our card- summer as part of its initial public offer- according to a survey today from ACI
uct that offers investors a fixed annu- holders to see which features they val- ing. The flotation had a disastrous start ● King of Shaves Worldwide. The payment systems
al return of 4.5 per cent in cash with a ued and they told us they wanted a and the share price tumbled, but has The men’s grooming brand offered provider says global research, surveying
further two per cent paid in John competitive return with the added steadily risen since. shavers the chance to invest in the firm’s 4,200 consumers across 14 countries,
Lewis gift vouchers. At the end of five reward of gift vouchers.” growth by issuing 5,000 shaving bonds, also revealed too many people fail to
years, the Partnership will return cus- John Lewis Group is expected to ● Eurotunnel which aimed to pay back six per cent take basic precautions for protecting
tomers’ investments in full. post increased profits when it posts Eurotunnel sold shares to 4,000 founda- over three years. themselves from financial crime. Its
The Partnership is inviting card- its full-year results on Wednesday, tion holders in 1987, entitling them to data showed that in the UK nearly one
holders to apply between today and despite a slowdown in sales. unlimited travel for £1 a year until 2086. ● Tesco in ten (nine per cent) consumers break
11 April, with applications confirmed Analysts predict the business will But huge losses subsequently sent the Tesco Bank’s retail bond smashed expec- the cardinal rule – never carry your PIN
on a first-come, first-served basis. The post a 15 per cent rise in pre-tax prof- tunnel operator’s shares into meltdown. tations by raising £125m from private number with your card. On average, this
issue will be closed when total bond its to £352m for the year to January, investors, above the company’s target of figure rises to 12 per cent globally. The
applications reach £50m. with employees collecting a corre- ● Hotel Chocolat £50-£100m. The bond launched last survey also found 15 per cent of UK con-
Charlie Mayfield, chairman of the sponding annual bonus payment of The candy maker aimed to raise £5m by month as part of the London Stock sumers are still throwing bank state-
John Lewis Partnership, believes cur- at least 15 per cent of their salary. persuading customers to invest in three- Exchange’s new retail bond market. ments and receipts in the bin rather
than shredding them.

Rate of overseas takeovers of British Deutsche Boerse banks


firms peaks in 2010’s fourth quarter on upper hand in merger

M&A

takeovers with 54 per cent of the total per cent in 2008. M&A that the company may end up with
BY MARIA TADEO 113 bids in 2010 coming from over- Canadian companies are also less power.
seas buyers, compared with just 40 increasingly active in the UK, respon- DEUTSCHE Boerse will have the NYSE Euronext Chief Executive
ONLY one third of all UK listed com- per cent in 2009 and 44 per cent in sible for eight per cent all of listed upper hand in the planned mega- Duncan Niederauer told NYSE staff
panies taken over during the fourth 2008. company takeovers during 2010 and merger deal with NYSE Euronext, the the deal was a “merger of two great
quarter of 2010 were bought by The US remains the top overseas up by three per cent from the previ- exchange operators’ chief executive companies, not a sale or an acquisi-
British firms, according to new data bidder for UK listed companies, ous year. In direct contrast, Western told a paper, as fears that the German tion”.
released by the City law firm Wedlake responsible for 22 per cent of all European firms made only seven per firm will lose power linger. In an interview with German busi-
Bell LLP. takeovers registered in 2010. However cent of acquisitions in the UK market The proposed $10.2bn (£6.2bn) ness daily Handelsblatt, to be pub-
Overseas bids for UK companies the research by Wedlake Bell also throughout 2010. takeover of NYSE Euronext by lished today, Deutsche Boerse Chief
peaked in the final quarter of 2010, reveals increasing activity in the UK Wedlake Bell’s latest data also Deutsche Boerse unveiled last month Executive Reto Francioni said the
with 65 per cent of completed bids from emerging economies, acquiring reports an increasing interest from would leave Boerse’s shareholders high market capitalisation “puts us
coming from foreign firms. This is 17 UK listed companies- 15 per cent of foreign buyers in UK- based technolo- with 60 per cent of the combined (Deutsche Boerse) in a position to do
the highest ever rate for overseas all deals- during 2010 and up by 10 gy companies. entity, but analysts have cautioned this deal the way we envisage it.”
CITYA.M. 7 MARCH 2011 Analysis 17

Activist investors
eye bumper 2011 as
market improves
Hands-on investing is on the rise. It is not just hedge
funds – increasingly, all shareholders are being
encouraged to be more assertive, writes Alison Lock Neil Woodford of Invesco

T
HIS year has started well for activist to good use, and prepared to speak out if Perpetual (above) and
investors, those outspoken stake-
builders that push boards to buck
“The stock not.
“If companies are sitting on a lot of cash
Colin Kingsnorth (below)
of Laxey Partners
up their strategy.
2011 has kicked off with a spate of high
market and don’t deploy it to increase shareholder
value they are going to attract the atten-
Picture: REUTERS

profile public exchanges between funds


and their targets.
recovery has tion of activist investors to pressure them
to engage in endeavours that will unlock
Activists claimed their first major scalp
last month when Sherborne Investors
exposed that value,” Kenneth Heinz, president of
Hedge Fund Research, told City A.M.
ousted City veteran Nick MacAndrew from
the chair of F&C Asset Management.
companies But regulation is also a factor – and it is
broadening the base of investors that can
Elliott Advisors is eyeing transport
group National Express; Kesa Electricals is
that still trade arguably be named activist. After a finan-
cial crisis that threw corporate governance
under fire from Knight Vinke, and
Alliance Trust is a target of hedge fund
at a discount failings into sharp relief, governments are
using new regulation and guidance to
Laxey Partners.
And in January City A.M. broke the news
to their peers, involve investors more in firms’ behaviour.
“There is rising investor activism – but
that media group Mecom’s shareholders,
including Aviva Investors and Legal &
making them there is a difference between it happening,
and activist funds doing it,” Bernstein said.
General, had followed the removal of its
founder David Montgomery by dismissing
a target” From the revamped Corporate
Governance Code to the new Stewardship
the group’s chair, Alasdair Locke. Code to encourage better dialogue
But the negotiations that make it into between boards and investors, regulators
the public arena are the tip of the iceberg. are trying to force even long term, blue-
Discussions between activist investor chip asset managers to think like activists.
and board can begin before shares are “Shareholders are feeling they are being
even bought and continue through
degrees of pressure – Crystal Amber’s deci- Sherborne Investors
sion to publicly vent its concerns over film
studio Pinewood Shepperton’s perform- founder Edward Bramson
ance last year was the first and only time is the new chair of F&C
it has taken a dispute public. Asset Management after
Activism is bouncing back from a fall- a boardroom coup
off in deals in 2008 and 2009, and
investors are piling money into activist
funds as risk appetite returns. positively empowered to engage in talking
About 60 pure activist hedge funds to boards,” Richard Spedding of law firm
managed $47bn (£29bn) of funds globally Travers Smith told City A.M., adding that
at the end of 2010, up from to $36bn in anecdotal evidence showed large compa-
2009 but still a long way behind pre-crisis nies increasingly putting directors up for
levels of more than $54bn in 2007. election annually.
And the stock market recovery has “It provides activists with an easy target
exposed companies that still trade at a dis- as they don’t have to call an extraordinary
count to their peers – making them a visi- meeting,” he said.
ble target for activists. It means fund managers such as Neil
“We find companies with good cash Woodford of Invesco Perpetual, who
flows and strong asset backing that have stormed the board of Omega Insurance
been neglected by the market and try to last year to oust chairman Walter
engineer a re-rating,” Crystal Amber direc-
tor Richard Bernstein told City A.M.
Large cash piles amassed by many cor-
Fiederowicz, and four directors, are just as
likely as Laxey to be making noise.
And with more investors acting like
THE PRINT COMPANY
porates since the recession are another
factor. Shareholders are keen these are put
activists, 2011 may prove to be the best year
for the phenomenon yet.
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including key shareholder Aviva Investors. Chairman Walter Fiederowicz and four 2007: ABN Amro
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shareholders applied pressure. He finally 2008 and 2005: Deutsche Boerse Arguably the leading lights of shareholder
stepped down in January after investors Hedge funds Atticus and The Children’s activism for more than a decade, Julian
threatened to call an extraordinary meet- Investment Fund Management (TCI) ter- Treger and Brian Myerson tackled compa-
ing to make him leave. Investors later sent rorised the exchange for four years, oust- nies from Aquascutum to Pilkington
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chairman Alasdair Locke packing. ing chairman Rolf Breuer and chief through their Active Value fund.
18 News CITYA.M. 7 MARCH 2011

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

executive and managing director of Graydon UK Employment practice. Horne joins


GlaxoSmithKline Europe. Moore will join MF Global on The commercial credit reference from Morrison & Foerster and spe-
Judy Lewent and Stacey Cartwright have 1 April and will be responsible for agency has appointed Keith Jones as cialises in all areas of employment
been appointed as non-executive directors of developing the firm’s pan-European managing director. Jones, who joins law, including business transfers,
GSK and will join the Board from 1 April 2011, growth strategy. Graydon on 3 May, arrives from outsourcings, insolvencies and merg-
when they will both become members of the Royal Mail, where he was head of ers and acquisitions.
firm’s Audit & Risk Committee. Lewent is the Mercer data. He has also held senior roles at
former executive vice president and chief Emma Douglas has joined Mercer as data firms Abacus and Qbase. MSCI
financial officer of Merck & Co, and UK leader for Mercer Workplace The investment decision support
Cartwright is executive vice president, chief Savings. Douglas joins from Paul Hastings tools provider has appointed Kurt
financial officer of Burberry Group. BlackRock and has also worked at The international law firm Paul, Winklemann as managing director
Threadneedle Asset Management, JP Hastings, Janofsky & Walker has and head of risk and analytical
Morgan Investment Management, appointed Suzanne Horne as employ- research. Winklemann will be based
MF Global and hedging solutions has appointed Morgan Grenfell Asset Management ment partner at the London office to in New York, where he will manage a
The broker/dealer providing trading Richard Moore as regional chief and Fidelity Investments. strengthen the firm’s European global team of 60 researchers.
To appear in CITYMOVES please email your career
updates and pictures to citymoves@cityam.com SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7557 7245
morganmckinley.com

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

ANALYSIS l Morrisons 280.90 ANALYSIS l WPP Group 814.50 ANALYSIS l Lookers 62.50
320 p 4 Feb 860 p 4 Feb 64 p 4 Feb

280 62
820
60
240
780 58
200
56

13 Dec 29 Dec 17 Jan 31 Jan 14 Feb 28 Feb 13 Dec 29 Dec 17 Jan 31 Jan 14 Feb 28 Feb 23 Dec 12 Jan 1 Feb 21 Feb

WM MORRISONS WPP GROUP LOOKERS


Evolution Securities is backing the supermarket retailer ahead of its full- The advertising and marketing firm’s results on Friday showed earnings Panmure Gordon looks ahead to the firm’s final results, which are out on
year results on Thursday this week. It sees “little room for any major posi- were in line with expectations, although analysis by Killik & Co advises Wednesday this week. It rates the firm “buy” with a target price of 80p
tive surprise” in the numbers, as the UK consumer environment remains investors to “pause for breath”. It says WPP offers a “liquid, albeit not that on the back of a “strong year of progress” and “good levels of debt reduc-
subdued and the food retailers remain under pressure. Yet it is upbeat on operationally geared, means of gaining exposure to a recovery in economic tion” at the car seller. Panmure Gordon also believes the year ahead will be
possible news of a share buyback plan and further strategy updates from growth”. Yet it also says the firm’s shares have enjoyed a strong run over good for the company with the new car market having fared better than
the chain and backs it to succeed. the last six months, pushing the price further above earnings. anticipated so far this year, which could further boost Lookers.

Traders cautious as oil price may herald recession


MARTIN ON Europe this morning.
GFT is quoting the FTSE 100 index
to open unchanged from Friday’s
decision on interest rates, due to be
announced on Thursday. A growing
number of analysts were vouching we
can expected heightened trading vol-
umes in the shares of ITV, John Wood
Group and Hargreaves Lansdown, all
THEMARKETS close below 6,000, at a level of 5,990.
Elsewhere the German DAX is called
down 5 points at 7,173, and the
would see a rate rise, but comments
from MPC member and deputy BoE
governor Charlie Bean poured cold
in with a chance of joining the blue
chip index, and to the short side on
Alliance Trust, African Barrick Gold
French CAC is quoted down 2 points water on the idea of using higher and Bunzl.
to open at 4,018. interest rates to control inflation in Martin Slaney is director of global deal-
Despite Friday’s positive news from the current economic environment. ing operations for GFT.
the US of a stronger-than-expected This week also sees the results
non-farm payrolls report and announced of the latest FTSE reshuf- 5,990.39
improved unemployment rate, fle, where we see updates to index ANALYSIS l FTSE
4 Mar
traders seem reluctant to commit to composition based on the closing 6,100
equities as the prospect of $150 per price of shares tomorrow. The quar-
barrel of oil, and an ensuing double- terly event can spark some volatility 6,000
MARTIN SLANEY dip recession should that be sus-
tained, moves ever closer. Speculation
especially for those companies whose
shares are in contention for promo- 5,900
that the US and UK could opt for mil- tion or relegation to and from the
itary intervention in Libya is also FTSE 100. 5,800

W
ith fighting in the Middle adding to the nervous mix. Pension funds and investment
East and North Africa inten- The main scheduled event for the trusts with index tracker funds will
sifying, I expect a fairly flat UK this week is surely the Bank of be reweighting their portfolios 13 Dec 29 Dec 17 Jan 31 Jan 14 Feb 28 Feb
open to stock markets in England Monetary Policy Committee accordingly, and on this occasion we

WALL STREET WEEK AHEAD


the fear that oil prices will hit con- “We are in such a sentiment-driven equities that have grown in recent robust performance. Last week, stocks

S
tocks will take their cues from sumers and derail the recovery, and market right now and everyone is weeks, while other investors are shift- ended flat.
the oil market this week as the euphoria that the US labour mar- watching the equity market with one ing their exposure to oil stocks and So far the trade seems to be a reallo-
unrest rumbles through the ket is turning a corner. eye and oil and commodity markets paring back in overvalued areas of the cation of risk within equities rather
Middle East. But so far equity Reports of escalated fighting in with the other," said Michael James, a market. than a move out of stocks altogether.
investors are sanguine, believing the Libya and protests in Bahrain, Yemen senior trader at Wedbush Morgan in Through it all the S&P 500 is down The S&P energy sector has risen 10
economic recovery wins the day. and top oil-exporter Saudi Arabia rat- Los Angeles. less than 2 per cent from a near three- per cent since the middle of January
Sentiment is driving large daily tled investors on Friday – oil rose, Some hedge funds are trading the year high hit in late February, which when troubles in the Arab world
swings as traders vacillate between equities fell. inverse correlations between oil and even bears concede is a remarkably began.
7 MARCH 2011 CITYA.M. 19

Wealth Management | Markets


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20 Wealth Management | Spread Betting CITYA.M. 7 MARCH 2011

THE TIPSTER
BUILDING
PROFITS AT
Information
H
WIMPEY
OUSE builder Taylor Wimpey has
recently posted profits ahead of
expectations despite revenues stay-
is a valuable
ing unchanged. This has been put
down to average selling prices increasing,
which is a very pleasing sign for the firm
which has seen a strong uptrend in share
price since last December. Although the
board remains cautious about the future
it is still very upbeat about achieving this
commodity
year’s margins. The technicals are showing
positive signs as well with the upside con-
tinuing if 36.75p remains a strong support
From arm-chair Gordon Gekkos to
level. Capital Spreads quotes 41.3p-41.8p.
Multinational car dealer Inchcape experienced spread-betters, there is
reports its earnings tomorrow. It looks
like the market is expecting a positive set something for you, writes Craig Drake
of results, despite the slowdown in car
sales in the UK reported on Friday (down

W
7.7 per cent in February) with its overseas ITH the rapid and continu- techniques and strategies that they
divisions performing well. 410p seems to ing expansion of spread have picked up at our seminars and
be strong resistance though. Spread Co betting in the UK, online presentations.”
offer a spread on Inchcape of 408.8p- providers are continually There is clear benefit to both par-
409.6p. seeking ways to differentiate them- ties when it comes to seminars
Oil services provider Petrofac delivers selves from the rest. One of the big offered to those new to spread bet-
final results today and the share price has ways that providers are trying to ting, but that doesn’t mean that
come under pressure in recent weeks due stand out is in the quality and range once you’ve learned the ropes, you’re
to the number of installations it has in the of the seminars and the education on your own. ETX Capital offers a full
Middle East. With the share price just programs that they provide. education program as part of its
above six month lows investors will be David Jones, chief market strate- client package including technical
hoping that the recent disruption won't gist at IG Index points out “the idea analysis and trading strategy, fol-
affect the final figures too adversely. The that we are like a bookies who stand lowed by a mentoring program for
CMC Markets spread is 1,458.92p- to win from a client’s loss, while a experienced traders as they go along.
1,463.11p. popular misconception ten years Attending a trading strategies sem-
Data released at the end of last week ago, is completely wrong. We want to inar offered by Capital Spreads and
from Halifax suggests the housing market see our clients trading successfully 10 presented by an independent strate-
is still some way from a full recovery. years in the future. Our average retail gist, the demographic of the group
Soaring oil prices and a tight lending client starting out in spread betting was not necessarily that of a room of
market will fail to add any real confi- is someone who may well have people who had clocked off work at
dence here either so the home builders bought and sold shares in the past one of the hundreds of banks and
could end up feeling the pressure too. and we have an education program investment houses within a stone’s
Current IG Index price on Persimmon is to help them feel confident with the throw of the building. Yet they had
452.27p-455.03p. system and other markets that are read the books, done the research
Philip Salter available to trade.” and wanted to sharpen their tech-
Although the rise in popularity of niques. The seminar packed in three
spread betting that we have seen hours of analysis of charts, trend
would be almost impossible without spotting and strategy, but the most
the internet, it is the human aspect emphasised advice was the basic one
of live seminars that is a big draw. of always having a written plan.
According to Ryan O’Dougherty, Though for those spending their
product manager at CMC Markets: days sat in front of a Bloomberg
“people like to have face to face meet- screen, the idea of going back to
ings. We have a long history of run- school may not appeal, for those
ning our Trading IQ program and are who have become stuck in a rut or
in the process of revamping it. At the want to get an edge to their forays
same time we offer our demo plat- into spread betting, some of the
form for life, rather than just a trial, advanced courses offered by the vari-
allowing people to test new trading ous providers may be just the thing.

THE WEEK AHEAD in association with

COMPANY NEWS COMPANY NEWS ECONOMICS NEWS POLITICAL NEWS


l Ireland's biggest bookmaker l Insurers will be in the spotlight l On Wednesday the FTSE 100 l Tuesday will see the publica-
Paddy Power will announce its end with Prudential releasing its will meet for its quarterly tion of Tom Winsor’s inde-
of year results on Monday. results on Wednesday, while review of which stocks pendent report on police
Standard Life will release on to admit or drop. reform.
l So will the financial spread bet- Thursday. ITV is likely to be
ting and CFD provider IG Group. readmitted. l On Wednesday,
Both will be betting on good l The global asset management the London
results. company Schroders, which recent- l Wednesday Assembly trans-
ly unveiled its UK Core Fund, will and Thursday port committee
l On Tuesday, Weir release its 2010 results on the MPC meets will meet to dis-
Group, founded in Thursday. to determine cuss the worsening
1981 by descen- whether or not to congestion in the
dants of Robert l On Friday it will be put up interest city, if they can make
Burns, will revealed whether rates. it through all the traf-
hope to have food and drink prices fic.
engineered have impacted JD l Respective authorities in
strong end of Wetherspoon profits Malaysia, Thailand and South l Wednesday is also the deadline
year results. as it releases its end Korea will also meet next week to for the government’s consultative
of year results. review their respective rates. green paper on philanthropy.
l Tullow Oil
announces on l The world’s largest l Staying in Asia, Japan will l Talking of giving money away,
Wednesday. producer of nickel and announce machinery orders data Lord Hutton will let us all know
Investors will hope to palladium, MMC Norilsk for January on Wednesday and on Thursday how he is going to
see profits from oil’s sus- Nickel, will hold its EGM on revised GDP for October- solve the public-sector pensions
tained price rise. Friday. December on Thursday. crisis.
CITYA.M. 7 MARCH 2011 Wealth Management | Spread Betting 21

TRADING TIPS
You can cash in on FROM THE
FRONT OFFICE
placid markets too TOM HOUGAARD
CONSULTING ANALYST, INTERTRADER

Donata Huggins finds out how spread betters can


make money from predictable non-farm payrolls

R
EMEMBER the first time you ting miracle has been delivered by IG

D
heard the excitement around Index who have just launched binary ID you ever see the trading pit scene from the
non-farm payrolls; the fuss that bets on the payroll figures. Its books film “Trading Places”? Well in real life it is every
pushes back Friday afternoon opened for the first time last week. And bit as crazy and then some. In 2007, I visited
drinks? Most do, and it’s not until you those who placed a bet on consensus the oil pit in New York. I got some rather
realise they’re a big deal and can set the expectations could smugly leave work unusual trading advice from a 20-year veteran of the
market alight that you too start to get on Friday knowing that they had come pits. The floor traders seem to have a unique take on
excited by them. Trading the dollar and out on top. the market, probably because they are so close to the
American stock indices always seem This sort of predictable market behav- forces of demand and supply unleashed in the pit.
more fun straight after their announce- iour looks set to continue. Hewson says: Here is what the trader told me:
ment. “Now we’re back at the 195,000-200,000
Well, actually this is not always strict- level for payrolls, there’s a lot more opti- 1. FIRST CUT IS THE CHEAPEST
ly true. We have all been coloured slight- mism for March and April’s figures to “The first cut is usually the cheapest. I see so many
ly by the last few eventful years. Last come in on target.” of the new traders who are unable to take a loss.
week’s number – as Michael Hewson of But how can traders check up on their They hold on to their position for too long. They
CMC Markets puts it – did “absolutely hunches? Analyst reports, of course, can don’t understand that I too am wrong more times
nothing.” The payrolls came and went be mined for predictions, and market that I am right, but I cut the trade the moment I
and the market quickly returned to commentary can give you a steer. But am in doubt. That first cut has kept me alive in the
where it was before the report’s release. don’t forget: the big ADP payroll num- pit for 20 years.”
The number came in pretty much right ber is released on the Wednesday before
on most analysts’ target, dampening any the non-farm figures. While they have 2. THE MARKET IS EFFICIENT
chance of market fireworks. not been as useful of late, the ADP fig- He also told me about the nature of the market:
Disappointing for traders until you ures still provide an extra piece to the “The market is efficient. It wants to go where the
realise there is a way to make money puzzle. Traders concerned that volatility orders are. These orders can be stop (loss) orders or
from placid markets too (not to mention could be ebbing away should consider limit (buy or sell) orders.” I asked him to elaborate
get to the pub earlier). This spread bet- cashing in on stability. and he said: “often the market will go to a certain
price just to make sure as many people are filled as
possible, and then it reverses. We say in the pit that
ANALYSIS l US non-farm payrolls since 2009 they push them up to take them down.”

600 3. TREND DAYS ARE THE BEST


I asked him about intra-day trends. He told me he
had the advantage of being able to see the orders
400
from the brokers. His best days were “trend days”,
where the market continues in one direction all day.
200 This point was aired by others I met in the pit. If a
good trend was developing intra-day, these guys
would press it for all it was worth, irrespective of
0 who was on the other side of the trade. They were
never concerned about whether the market techni-
-200 cals were overbought or oversold. The only thing
“I bet on sure things. they had in mind was to press it as high or as low as
Read Sun-tzu: every they could before the bell rang.
battle is won before -400 Happy Trading.
it is ever fought” The views and comments in this article are not
-600 the views of InterTrader.com. The provision of this
Picture: REX information should not be construed in any circum-
Source: TradingEconomics.com stances as a recommendation or solicitation to buy
-800 or sell any security or financial instrument.
Jan 2009 Jan 2010 Jul 2010 Jan 2011
Lifestyle
22 In association with CITYA.M. 7 MARCH 2011

| Travel

A truly relaaxing way to


ski in snowy Switzerland
With the promise of a speedy transfer from desk to piste, Katie Hope just had to
try out the journey from her office in Bank to the slopes of Laax, near Zurich

W
HEN you work in the City,
free time is as rare as a pen-
niless hedge fund manager,
so you want to ensure that
you choose the skiing trip that max-
imises your slope time and minimis-
es your tedious travel time.
Switzerland’s Laax resort, located
150km south of Zurich airport, prom-
ises to do exactly that – whisking you
from your stuffy desk to the clean air
of the slopes in a mere four hours.
An hour pre-flight at City airport,
followed by 75 minutes in the air to
Zurich and finally a 90 minute shut-
tle direct to Laax ski resort completes
the desk-to-piste journey. And if you
don’t make the shuttle (our flight bring uber-sleek design to the once
was delayed by fog), then there’s also traditional resort, and bagged it the
a train or you can hire a car. Wallpaper magazine design award
Laax is a chic resort, as cool as the for Best New Ski Resort last year.
mountain air, and attracts a self-con- They’re stunning.
sciously hip European crowd, so But while the apartments are
make sure you pack your up-to-the- rugged on the outside they are relax-
minute ski gear. ing on the inside. Settling into our
The self catering apartments in two-bed apartment – which offered
Rocksresort – so called because they its very own spa room complete with
are hewn from local quartz and steam room, power shower and zen-
slate – look just like the boulders like bath, it was easy to wash away
strewn through the region by a colos- the day’s stresses.
sal landslide 10,000 years ago. They The giant floor-to-ceiling windows

A sanctuary –
with iMacs – in
West Sussex
David Crow finds an ideal place to
unwind near the South Downs

A
WEEKEND in the country is room bursts with high tech gadgetry;
often not so much a change of there are wall-mounted iMacs offer-
pace as stepping back into ing a bespoke television service and
another era, where duvets are free wifi throughout the hotel. It
a dirty word and the closest you get might sound like an Apple Store as
to modern technology is a Teasmade. decorated by Laura Ashley but it
Not so at Park House, a luxury rural works. Those keen to make the most
retreat in West Sussex. There might of the country air have plenty of
be rows of Hunter wellies at the door, activities to choose from: shooting
but this is a very modern take on the trips, walks on the South Downs or
country house hotel. playing six holes on the hotel’s par 3
It’s a traditional farmhouse that’s golf course. The real attractions are
been rebuilt and modernised over indoors though, with the hotel’s just-
the last few years. Aside from the opened luxury spa. Aside from a fit-
main house there are a number of ness centre, swimming pool, jacuzzi,
cottages, each looking out over the sauna and steam room, there’s a
hotel’s grounds (including croquet- range of treatments available, both
lawn, terrace and greenhouses). The for those staying at the hotel and peo-
decor differs throughout, from tradi- ple just looking for an afternoon of
tional furniture and heavy floral pat- pampering. It’s a small place (though
terns to the light wood and bold I think they prefer “boutique” but
designs of Swedish home living. Each there are some intriguing options
CITYA.M. 7 MARCH 2011 In association with 23
THE NEW EATERY
FROM THE GUYS
BEHIND SALT YARD
REVIEWED TOMORROW

rest of Europe, hadn’t seen snow in


almost a month, but due to the resort
still enjoy the foam pits on a Tuesday
and a Thursday at the so-called flying
Switzerland’s Laax resort is near
being based around the Vorab glacier
and the consequent cold tempera-
ant sessions where kids under five
and their parents can jump in and
enough to Zurich to allow you to get
tures that provides, you would never
have known it. The area boasts 220
out of the foam – extreme fun with-
out any risk of accident.
from desk to piste in four hours
kilometres of pistes, which means And getting back to the slopes, if
there is plenty to chose from whether skiing is not your thing – there’s a door play in the snow, and he had a
you are a skier or snowboarder. large network of winterwanderwegs ball – even making some Swiss tod-
Wide open pistes, perfectly – or marked footpaths – through the dler friends to boot. Laax is definitely
groomed and not too busy – with no snow that allow you to gently ram- a good choice for your ski holiday, but
queuing for lifts – the skiing was ble your way around the slopes a word of advice to maximise your
about as good as it gets. The resort without any special equip- slope time – allow ample time for
offers a good selection of slopes – ment at all. the shuttle bus, or perhaps to
with plenty of varied terrain for the Generally, in fact with a give you maximum flexibility
Above: Skiiers meant we could admire the splen- beginner right through to the dare- wide selection of bars and hire a car. Avis offers hire
enjoying the high dour of the majestic Swiss Alps from devil freestyler with a frankly terrify- restaurants centred from £225 for three days,
quality snow at Laax. the warm comfort of our rooms. And ing-looking half-pipe if you want to round a small piazza and and parking’s free at
having had our fill of admiring, by somersault your way down. the ski slopes right there, Rocksresort. That way you
the morning we were desperate to Fortunately you’re not allowed on Laax is a great choice for can ensure that every
actually hit the snow – something there without experience – which is non-skiing partners, as moment of your free time is
made even easier by our apartment’s provided by the much less terrifying well as skiers and snow- spent on the slopes rather
location just a two minutes’ walk and rather fun indoor freestyle acad- boarders and small chil- than en route.
from the main cable car. emy. dren. Katie flew to Zurich from City
At the top we were somewhat The first such place in Europe, it We took along our 18 airport with Swiss International Air
bewildered by the sheer amount of lets you try out acrobatic-style moves month-old son, who although Lines which offers seven flights a day
the white stuff. While snow is what with the safety of foam-filled pits too young to ski, was well-catered with a return fare starting from £116
you expect when you ski, when we beneath you. If freestyling tricks are a for by the on-site crèche, which pro- including all taxes and fees. www.laax.com;
visited in mid-February, Laax, like the step too extreme for you – you can vided a mixture of indoor and out- www.rocksresort.com.

THINK ROOMS... with


The real
attractions
are indoors, The Grand Hotel 5*
though, with King Edwards Parade | Eastbourne
| BN21 4EQ
the hotel’s True to its name, this Victorian hotel is grand, ele-
gant and oozing in seaside glamour. Dominating
just-opened the Eastbourne seafront it boasts a range of luxu-
rious rooms and suites, and enjoys stunning views
luxury spa. across the sea and cliffs at Beachy Head.
Magnificent both inside and out, we’ve heard it
Try the referred to as the ‘White Palace’ – a perfect
description we think.
Tahitian
black sand South Lodge Hotel 5*
exfoliation Brighton Road | Horsham | RH13 6PS
A superb country house set in 93 acres of beauti-
ful parkland, South Lodge Hotel has much to
impress. The rooms and suites are individually
designed, some with four-poster beds and bub-
bling Jacuzzis. And the award winning restaurant,
The Pass, provides its own take on the ‘Chef’s
Table’ concept, with all 22 seats in the kitchen!
The new spa at Park Everything here is set up for a very special stay.
House Hotel.

Claverton Country House 4*


Bluemans Lane | Battle | TN33 0SE
Claverton Country House is a regular in our Top
from exfoliation using Tahitian black and vegetables are grown onsite. afternoon in. Whatever you need to Guest Rated showcase. The pretty Edwardian
sand to a bubbling mud massage. Indeed it’s that attention to detail relax, from a herbal tea to a trashy property lies in secluded, landscaped gardens, the
All that good work can be undone found throughout the hotel that magazine is available. You can even rooms are immaculate and the top quality service
at dinner. A three-course affair, it’s make it such a joy to stay in and bring your pets. It’s a place of contra- is both personal and attentive. It’s the perfect base
exactly the sort of menu you might there’s thoughtful touches every- dictions – old but modern, cosy yet for exploring this fascinating region whilst the fine
expect (old-fashioned fare with big where you look. There are a number cutting edge, professional and per- restaurant here is always a popular choice.
flavours and bigger portions). It’s all of honesty bars so you can enjoy a sonal – and seems as suited to a
lovingly done though, with an nightcap when you want without romantic weekend away as it is to a
emphasis on the food being fresh, having to resort to the minibar and major celebration. A rare find. From To book your stay at any of these fabulous hotels, or to discover a whole world of other
seasonal and local; some of the herbs living rooms to elegantly waste an £135 per night. www.parkhousehotel.com accommodation possibilities, visit LateRooms.com or call 0161 831 3894.
24 Lifestyle | TV& Games CITYA.M. 7 MARCH 2011

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 Royal Upstairs 6.30pm ITV News 6.30pm Hollyoaks 6.25pm OK! TV
7pm The One Show Downstairs 7pm Emmerdale 7pm Channel 4 News 7pm 5 News at 7
7.30pm Inside Out: BBC News 7pm Parents Under Pressure 7.30pm Coronation Street 7.55pm 4thought.tv 7.30pm CHOICE How Do They
8pm CHOICE EastEnders 8pm University Challenge 8pm The Lakes 8pm Dispatches: Do It? 5 News Update
8.30pm Smoking and the 8.30pm Raymond Blanc’s 8.30pm Coronation Street: Selling Off Britain 8pm The Gadget Show:
Bandits: Panorama Kitchen Secrets: Raymond Graeme wavers about his 9pm One Born Every Minute 5 News at 9
9pm Motorway Cops Blanc turns his attention to involvement in Tina’s scheme. 10pm FILM Borat: Cultural 9pm Royal Navy
10pm BBC News lamb dishes. 9pm CHOICE Law & Order: UK Learnings of America for Make Caribbean Patrol
10.25pm Regional News 9pm When Teenage 10pm ITV News at Ten Benefit Glorious Nation of 10pm FILM Kill Switch:
10.35pm Mrs Brown’s Boys Meets Old Age 10.30pm London News Kazakhstan 2006. Premiere. Action thriller, EASTENDERS
11.05pm Late Kick Off 10pm Never Mind the 10.35pm New Homes 11.40pm FILM Nacho Libre: starring Steven Seagal. 2008. BBC1, 8PM
11.35pm The Graham Norton Show Buzzcocks Ronnie’s paranoia escalates as she
12.25am The Apprentice USA
from Hell 2009 Comedy, starring Jack Black 12am Ultimate Fighting
10.30pm Newsnight: Weather 11.35pm River Monsters and Ana de la Reguera. 2006. Championship tries to stop Glenda learning the truth
1.05am The Apprentice USA;
Weatherview 1.55am Sign
11.20pm ICC Cricket 12.30am The Zone; 1.20am Rome Wasn’t Built in a Day 12.55am SuperCasino about James and Phil gives Shirley an
Zone: Silk 2.55am Sign Zone: World Cup Highlights ITV News Headlines 2.15am Royal Deaths and Diseases 3.55am Your Sport 4.05am Brian engagement ring.
Imagine 3.55am Sign Zone: Life in a 12.20am An Island Parish 2.35am UEFA Champions League 3.10am Codex 4.05am The Bible: Sewell’s Grand Tour 4.50am Nick’s
Cottage Garden with Carol Klein 12.50am BBC News Weekly 3am The Jeremy Kyle Show A History 5am Reaper 5.45am- Quest 5.10am Wildlife SOS
4.25am-6am BBC News 4am-6am BBC Learning Zone 3.55am-5.30am ITV Nightscreen 6.10am Wogan’s Perfect Recall 5.35am-6am House Doctor

SKY SPORTS 1 12am WWE NXT 1am WWE 11pm Criminal Minds 12am 2.40am Rick & Steve: The 4.40am How the Universe
SATELLITE & CABLE

7pm Sky Sports News at Vintage Collection 2am-4.15am CSI: Crime Scene Investigation Happiest Gay Couple in All the Works 5.30am-6am How Does
Seven 7.30pm Live Monday Live WWE: Late Night – Raw 2.40am Charmed 4.20am World 3.05am Reaper 3.45am That Work?
Night Football 10.30pm The Four Weddings 5.10am-6am The OC 4.25am Style Her
Sky Sports Years 11.30pm BRITISH EUROSPORT Maury Famous 4.50am-6am DISCOVERY HOME &
Netbusters 12am SPL Round- 7pm Cycling 8pm World Switched HEALTH
Up 12.30am Monday Night Superbikes 9.30pm Eurogoals BBC THREE 7pm A Baby Story 8pm LAW & ORDER: UK
Football 1.30am Soccer AM: 10pm Champions Club 7pm Working Girls 8pm Hotter HISTORY Hoarding: Buried Alive 9pm ITV1, 9PM
The Best Bits 2.30am Sports 11.15pm Cycling 12.15am- Than My Daughter 8.30pm 7pm Heir Hunters 8pm Pawn Trauma Unit 10pm Untold Brooks and Devlin investigate when
Unlimited 3.30am Watersports 12.25am WATTS The Lock Up 9pm How to Live Stars 9.30pm Mud Men Stories of the ER 11pm Critical a former top-flight footballer is
World 4.30am Max Power with Women 10pm EastEnders 10.30pm Pawn Stars 11pm Condition 12am Trauma Unit murdered in London, in what appears
5.30am-6am FIFA Futbol
ESPN 10.30pm Being Human Warriors 12am Mud Men 1am 1am Untold Stories of the ER to be a robbery gone wrong.
6.30pm Talk of the Terrace 11.30pm Family Guy 12.15am Pawn Stars 3am MysteryQuest 2am Critical Condition 3am
Mundial
7.30pm Live Scottish Premier How to Live with Women 4am Warriors 5am-6am Hoarding: Buried Alive 4am
SKY SPORTS 2 League Football 10.30pm 1.15am Hotter Than My Ancient Discoveries Bringing Home Baby 5am-6am
7pm Bass Fishing 8pm ICC Between The Lines 11pm Daughter 1.45am The Lock Up A Baby Story
Cricket World Cup 10pm Bass Pardon the Interruption UK 2.15am Is Oral Sex Safe? DISCOVERY
Fishing 11pm Boots ’n’ All 12am 11.30pm ESPN Game of the 3.15am Working Girls 4.10am- 8pm How Do They Do It? SKY1
ICC Cricket World Cup 2am Week 12am Live NHL Ice 5.10am Being Human 8.30pm How It’s Made 9pm 8pm Road Wars 9pm Ross
PGA Tour Golf 3am Wonderful Hockey 2.30am ESPN Press Airplane Repo 10pm Dual Kemp: Extreme World 10pm
World of Golf 4.30am-5.30am Pass 3am Baseball Tonight E4 Survival 11pm Monsters Inside A League of Their Own 11pm
PGA Tour Classic 3.30am-6am Live NHL Ice 7pm Hollyoaks: Kathleen Me 12am Bear Grylls: Born Inside: Gangs Behind Bars
Hockey shocks the McQueens with Survivor 1am Deadliest Catch 12am Mental 1.50am Drugs HOW DO THEY DO IT?
SKY SPORTS 3 another revelation. 7.30pm 2am Frontline Battle Machines Wars: DEA 2.40am Football CHANNEL5, 7.30PM
7pm Davis Cup Tennis 9pm SKY LIVING Friends 9pm Glee 10pm Great with Mike Brewer 3am World Behind Bars 3.30am Lost Robert Llewellyn visits Dubai to find
NASCAR 10pm WWE: Late 7pm Ghost Whisperer 8pm British Hairdresser 11.05pm War Two: The Complete History 4.20am Guinness World out how an airline’s engineering facility
Night – Bottom Line 11pm Nikita 9pm America’s Next Skins 12.10am Scrubs 1.05am 3.50am Rory McGrath’s Best Records Smashed! 5.10am- works to ensure the safety of its
WWE: Late Night – Afterburn Top Model 10pm Bedlam Samantha Who? 1.45am Skins of British Engineering 6am Sell Me the Answer passenger jets, crew and customers.

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

QUICK CROSSWORD
    

SUDOKU KAKURO
15 15 29 28 12 17
14 5 6
11 8 29  
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 34 11
7 14
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 3 9 24
  
above or to the left of it. 17 31
You can only use the digits 1-9 13 11
   and you must not use the 17 3    
same digit twice in a block. 30 18 16 11
    The same digit may occur 12 10
27
   more than once in a row or
column, but it must be in a
13
11
4
17
13
  
16 35
   separate block.
10 9
45
 
14 17 8

   ACROSS DOWN
1 Domesticated (5) 1 Flavour (5)
  
    WORDWHEEL B R
4 Musical half-note (5)
7 Boy (3)
2 Dog of mixed
breed (7)
Using only the letters in the Wordwheel, you have 3 Brood (on) (5)
   ten minutes to find as many words as possible,
A I 8 Ask earnestly (7)
4 Chemical element
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters D 9 Enlist (5) that can be formed

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
S N 10 Strong, tightly twisted
cotton thread (5)
into sheets (5)
5 Named prior to
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
O G 12 Pale purple colour (5) marriage (3)
6 Unit of length (5)
QUICK CROSSWORD 5 2 1 7 8 9
14 Addressed, covered (5)

M E N D S A L I E N
4 9 8 5 2 1 7 6 3 SUDOKU          16 Tramp (7) 11 Malicious gossip (7)
1 7 3 9 4 2         
I E N N I
2 8 8 9 3 1 18 Measure of proficiency 12 Flat (5)
N O B L E N U D G E         
U H O I C 6 3 1 8 2 5 4
        
in judo (3) 13 Lifting machine (5)
S A T I S F Y A G E 5 2 3 1 9 7 8 6
         19 Make a thrusting
W
P E P
H E A
E N D O R S E
6 4 9 2 8
8 7 1
7 1
4 1 6
WORDWHEEL          forward movement (5)
14 Discourage (5)
R O R T A         
A D L I B C H O P S
9 5 1 2 3 9 The nine-letter word was 15 Tasting sour (5)
N I E E E 7 3 4 9 5 6 1 2 8          20 Large gathering
G L O A T K R I L L 1 2 6 9 8 4
AUBERGINE          of people (5) 17 Alcoholic spirit (3)
Sport
25
“FERGIE STUNNED INTO SILENCE
BY KUYT’S PREDATORY DISPLAY”
UNITED BOSS BLANKS THE MEDIA AS
LIVERPOOL HUMILIATE HIS SIDE: P26

Results
Clitheroe leads the way =FFK98CC
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9`id`e^_Xd'  ( N\jk9ifd%%%'  *
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JFLK?8=I@:8
?8dcXY9ifX[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%+)
>Jd`k_ZGi`fiYJnXee%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%))
ABXcc`jZGi`fiY9ifX[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% (,
8[\M`cc`\ijY8e[\ijfe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%),
=[lGc\jj`jileflk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(.
=lc_Xd%%%%%%%%%%( * 9cXZbYlie%%%%%%(  ) A;ld`epY8e[\ijfe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% '

ATHLETICS DXe:`kp%%%%%%%(  ( N`^Xe%%%%%%%%%%%'  ' DmXeNpbY9i\jeXe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% (*


BY FRANK DALLERES E\nZXjkc\%%%%(  ( <m\ikfe%%%%%%%%% )  ) IG\k\ijfeZGi`fiYPXi[p%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%*
N\jk?Xd%%%%%) * Jkfb\%%%%%%%%%%%%%'  ' ;Jk\pecYn9ifX[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)'
BRITISH distance runner Helen C`m\igffc%%%%%%) * DXeLk[%%%%%%%%'  ( DDfib\cZGi`fiY9ifX[%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(
@KX_`iefkflk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(
Clitheroe claimed her first ever gold Nfcm\j%%%%%%%%%%) * Kfkk\e_Xd%%%% )  * CY)n+%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% -
medal at the age of 37 as her teenage :I@:B<K KfkXc+.%+fm\ij %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(-,
team-mate, sprinter Jodie Williams, @::Nfic[:lg$>iflg91 =Xcc1-*#.,#/)#()+#()+#()+#().#(-'#(-+%
offered a glimpse of the team’s future <e^cXe[mJflk_8]i`ZX 9fnc`e^1PXi[p0$($+-$(#8e[\ijfe-$'$(-$
)#9i\jeXe/$($).$(#JnXee('$)$)0$(#9ifX[
at the European Indoor :?<EE8@1<e^cXe[)gkj Y\XkJflk_8]i`ZX -%+$'$(,$+#G`\k\ij\e/$'$*'$'%
Championships. Yp-ilej Ldg`i\j18JX_\YXJKXl]\c%
Clitheroe, whose previous career <E>C8E; @I<C8E;M@E;@89Xe^Xcfi\ 2@i\cXe[
highlight was 1,500m bronze at the 8JkiXljjZ[\M`cc`\ijYG\k\ijfe%%%%%%%%%%%%%%%%%%%%% ' )'.NKJGfik\i]`\c[.,#PlmiXaJ`e^_
BG`\k\ij\eZBXcc`jYG\k\ijfe%%%%%%%%%%%%%%%%%%%%%%%%%%%%) ,$*( m@e[`X)('$,PlmiXaJ`e^_,'ef %
2002 Commonwealth Games and lost @KifkkZYKX_`i%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%,) @e[`X)gkj Y\Xk@i\cXe[Yp,n`Zb\kj%
her central funding a year ago, @9\ccZYG\k\ijfe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%, IL>9PC<8>L<
ensured her moment of glory by pip- I9fgXiXcYnDfib\c%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% -'
ping Russian Olesya Syreva. DGi`fiZmXeNpbYDfib\c%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(' <E>8><JLG<IC<8>L<
DPXi[pZG\k\ijfeYKX_`i%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%* :XkXcXe;iX^fej%(- Jk?\c\ej%%%%%%%%%%%%%))
Sprinter Dwain Chambers and NXii`e^kfe%%%%%%%%%+' C\\[j%%%%%%%%%%%%%%%%%%% )+
800m star Jenny Meadows both K9i\jeXecYnJk\pe%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(
>JnXeeZ;ld`epYKX_`i%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% (- 9iX[]fi[%%%%%%%%%%%%%%+' NXb\]`\c[%%%%%%%%%%%% (/
earned silver medals, as did the J9ifX[cYnKX_`i%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% '
:Xjkc\]fi[%%%%%%%%%%% ). ?lccBI%%%%%%%%%%%%%%%%%(+
men’s and women’s 400m relay A8e[\ijfeefkflk%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%) IL>9PLE@FE
teams, to cap a successful weekend in 9(cY.n()%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%)'
8M@M8GI<D@<IJ?@G
Paris for the British squad. KfkXc+,%+fm\ij %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%(.( >cflZ\jk\i%%%%%%%%%% *+ 9Xk_%%%%%%%%%%%%%%%%%%%%%))
Hotly-tipped schoolgirl Williams, =Xcc1(#*#(,#((+#(*+#(+/#(+0#(-(#(-(% C\`Z\jk\i%%%%%%%%%%%%%%(+ JXiXZ\ej%%%%%%%%%%%%%%(,
17, also shone, finishing just outside 9fnc`e^1G\k\ijfe/$)$))$*#Jk\pe0$'$*.$(# <o\k\i%%%%%%%%%%%%%%%%%%*' Efik_Xdgkfe%%%%%%%% 0
Dfib\c.$'$(-$)#BXcc`j+$($(+$'#KX_`i/%+$($ C\\[j:Xie\^`\%%% ). Cfe[fe@i`j_%%%%%%%%(0
the medals in fourth place in the */$+ [l Gc\jj`j ,$'$(-$' ;ld`ep +$'$)'$' NXjgj ** JXc\ )-
60m final in her first appearance at a Clitheroe, 37, had said it was me I thought ‘wait wait place in the 60m final.
senior championships. finished fourth in wait, it can’t be me’,” she said. Chambers beat home favourite and email sport@cityam.com
But it was team captain Clitheroe’s four major finals “There have been many years of try- European 100m champion
day, and the Lancashire veteran, who without gold – ing, and to have a gold medal, to win Christophe Lemaitre into third place
had previously finished fourth in until yesterday a gold medal when I’m team captain: but was pipped himself in a photo fin-
four major finals, could hardly com- oh my gosh, I’m going to enjoy this.” ish by Portugal’s Francis Obikwelu.
prehend edging out Syreva by three Picture: Williams, the current world junior Meadows also finished second in
hundredths of a second. ACTION IMAGES 100m champion and 200m silver the 800m before helping Marilyn
“I can’t believe it; it’s what I’ve medallist, equalled the personal best Okoro, who came fifth, Kelly
been dreaming of but never quite dar- she achieved in Saturday’s semi-final Sotherton and Lee McConnell earn
ing to say out loud. Even when they to take a hugely impressive fourth silver in the women’s 4 x 400m.

Wasps again indebted to Walder’s boot but


coach Woodman’s not satisfied by victory
London Irish after the Exiles slipped

RUGBY UNION “We are pleased with the win to a 27-19 defeat against bottom
BY JAMES GOLDMAN but the performance was a lit- side Leeds.
tle bit mixed, some of our The visitors held a 16-10 advan-
WASPS coach Trevor Woodman was game management needs to tage at half-time, but Adrian
muted in his praise after his side improve and not play too Jarvis led Leeds’ fight back, con-
edged out Sale Sharks 33-26 in a high much in your own half verting Luther Burrell’s first-
scoring encounter at Adams Park. when you’re 15 points up.” half score as well as Daniel
The ever reliable boot of Dave Walder (right), who Browne and Mike MacDonald’s
Walder kicked 23 of his side’s points, reached 1,000 points in the touchdowns after the break. He
with Riki Flutey and Joe Simpson Premiership with his third then landed a penalty to give
crossing for second-half tries to keep penalty, added: “It’s a great Leeds only their second win of the
at bay a Sale comeback after they had achievement but I was disap- season.
trailed 15-0 at half-time. pointed to miss the last kick. We Elsewhere, three second-half tries
Woodman, whose side remain in managed to keep them at arm’s secured Exeter a 30-9 victory over
eighth place in the Premiership but length.” Northampton who have now lost six
just a point off a play-off spot, said: Wasps are now just a point behind consecutive Premiership matches.

Haye and Klitschko sign deal for fight – at last


every boxing fan has to see, and every the football stadium at either

BOXING
BY FRANK DALLERES sports fan. He is ranked by many as Dortmund, Gelsenkirchen or
the best heavyweight in the world, in Kaiserslautern.
BRITAIN’S WBA world heavyweight front of myself, even though I’m the Klitschko and Haye will share the
champion David Haye has confirmed WBA champion.” purse equally and the Englishman
that his long-awaited multi-title fight Haye, 30, pulled out of his orig- added: “The terms were right, it’s a
against IBF and WBO king Wladimir inal fight with Klitschko in 2009 fair deal – it’s a 50-50 split, that’s what
Klitschko will finally take place this due to a back injury. Klitschko, they wanted and that's what I want-
summer. meanwhile, had been due to ed.
Haye brought to an end months of fight Britain’s Derick Chisora “He wanted all these little things –
fractious, on-off negotiations by sign- on 30 April but withdrew on he’s a bit precious, is Wladimir – so I
ing a contract on Saturday night to Saturday citing a stomach gave him all these little things to
face the hulking Ukrainian in injury that had taken longer make him feel like he’d got a mental
Germany in late or June or early July. than expected to heal. edge.
“I finally had that contract in front The 34-year-old and brother “I’ll just make sure the referee can
of me and I couldn’t wait to put pen Vitali have a large fanbase in count to 10, then I’m the new unified
to paper,” said the Londoner. Germany, and the showdown heavyweight champion of the world.
“It’ll be either June 25 or July 2, with Haye for all three of their Here it is: end of June, beginning of
either date is fine by me. It’s the fight titles is tipped to take place in July, let’s get ready to rumble.”
26 Sport CITYA.M. 7 MARCH 2011

FOOTBALL ROUND-UP

Lampard aware of
Blackpool potential
CHELSEA midfielder Frank Lampard
admits he’s been surprised at how
well Blackpool have adapted to life in
the Premier League.
Kuytstanding
The Blues travel to Bloomfield road
tonight hoping to build on last week’s
superb comeback against Manchester l Dutchman’s hat-trick deals United big blow
United, but Lampard is expecting a
tough challenge from Ian Holloway’s l Ferguson bans media access after defeat
side.
Lampard, who struck the winner
against United from the penalty spot, ager Kenny Dalglish, enjoying the
said: “Blackpool have surprised me perfect 60th birthday present 48
this season, not so much recently
because we’ve come to terms with
LIVERPOOL 3 hours late, played down bad blood.
“I thought both sets of players
what they’re doing, but at the begin- were fantastic credit and made it
ning of the season I’d have called
them to be down there.
MANCHESTER UTD 1 an enjoyable spectacle for every-
one,” he said. “United are a great
“Their manager I’ve got a lot of benchmark but our season isn’t

time for, I like Ian Holloway, he’s very FOOTBALL finished. We got our reward for the
opinionated it’s great to see and very BY FRANK DALLERES victory in three points but we just
refreshing. Charlie Adam has been want to keep going and get as
one of the players of the season, he MANCHESTER UNITED manager many as we possibly can.”
makes a real difference for them.” Sir Alex Ferguson battened down Kuyt, who owed much of his first
the hatches after seeing his side Liverpool hat-trick to a dazzling
succumb to a second successive display from striker Luis Suarez,
D-Day for Fabregas Premier League defeat and lose
winger Nani to injury in controver-
sial fashion at Anfield.
savoured a “perfect” occasion.
“You dream about the hat-trick
and to do it against United is the
hopes of Barca return A hat-trick from Dirk Kuyt dealt
the top-flight leaders another big
best feeling ever,” he said. “I’m
more than happy but I have to
blow just days after their loss at thank Luis because he played great
Chelsea, while Nani looks set for a and created two of the goals.”
ARSENAL manager Arsene Wenger spell on the sidelines after being Suarez set up Kuyt’s first on 34
will decide this morning whether or stretchered off before half-time. minutes with superb close control
not to gamble on the fitness of Cesc United were incensed at the that bamboozled the United
Fabregas ahead of tomorrow’s tackle from Jamie Carragher that defence, while a suicidal header
Champions League showdown left Nani with a gash on his shin back towards his own goal from
against Barcelona. and Ferguson refused to talk to any Nani handed the Dutchman the
The Gunners’ captain has not fea- media outlet after the game, even second five minutes later.
tured since tweaking his hamstring the club’s in-house channel MUTV. Carragher’s tackle curtailed
against Stoke on 23 February but has The Scot, already facing a touch- Nani’s game moments later,
indicated he is ready to return line ban over criticism of referee prompting a number of confronta-
against his former club at Camp Nou. Mark Clattenburg at Chelsea, also tions, and red mist descended
Meanwhile, Jack Wilshere, an banned assistant Mike Phelan and again before half-time when Rafael
injury doubt after Saturday’s frustrat- all players from fulfilling post- lunged at Lucas, albeit without sig-
ing goalless draw with Sunderland, match interview requirements. nificant contact. Both defenders
has declared himself fit on his Defeat means United have now received yellow cards when they
Twitter page, saying: “I am not lost three of their last five league might have been sent off.
injured and if selected will be fit to games, with second-placed Kuyt clinched victory on 65 min-
face Barca! Few kicks but nothing too Arsenal, who are also suffering a utes when goalkeeper Edwin van
bad!” wobble, three points behind and der Sar fumbled a Suarez free-kick
The Spanish side will have to cope holding a game in hand. into his path, meaning an injury- Kuyt’s hat-trick was
without the services of centre-half, Tempers frayed again when time consolation header from his first for Liverpool
Carles Puyol, while manager Pep United full-back Rafael went in late Javier Hernandez barely registered
Guardiola spent a fifth successive on Lucas Leiva, but Liverpool man- amid a delirious Kop. Pic: ACTION IMAGES
night in hospital due to his ongoing
back problem but is due to attend
today’s pre-match press conference.

Hutton should’ve been sent Teammates lead


tribute to Deano
off, admits frustrated Harry
Redknapp claimed he didn’t have a place, level on points with Chelsea but
WOLVES 3 clear view of the incident, but that by
the letter of the law referee Mark
having played a game more.
On a more positive note, Gareth
Halsey should’ve awarded the Bale made his comeback as a second-
TOTTENHAM 3 Scotland international a red card.
He said: “I didn’t have a clue why he
half substitute following more than a
month out with a back injury.
had give it because we couldn't see Spurs face AC Milan in the PLAYERS and officials from the for-
mer clubs of Dean Richards led an

FOOTBALL from the dug-out. I haven’t looked at Champions League on Wednesday and
BY JAMES GOLDMAN the video. If he pulled his arm, it must Redknapp is confident the Wales emotional tribute to the defender, 36,
be a clear goalscoring opportunity. He winger will have a big role to play in who passed away last week ahead of
TOTTENHAM manager Harry is very lucky not to get sent off then.” ensuring Spurs cash in on their 1-0 Tottenham’s match at Molineux.
Redknapp admitted his side were Roman Pavlyuchenko re-established first leg advantage, assuming Bale suf- Richards’ widow Samantha and
lucky to finish with 11 men in yester- Spurs’ lead early in the second-half, fers no response to a groin niggle. their children Rio and Jaden joined
day’s pulsating draw against Wolves. but Wolves earned a deserved point Redknapp said: “When Gareth came the teams before the match at
Two sensational goals from Jermain through a superb Steven Fletcher on and started to run with the ball, it Molineux.
Defoe, his first Premier League strikes header three minutes from time. was exciting. We’ve missed that for the Representatives of all his four for-
of the season, cancelled out Kevin “It’s a blow. It looked like we got last five or six weeks. mer clubs, including Spurs club cap-
Doyle’s opener, but the Irishman three points and I hoped we won. I “Hopefully he’ll be okay for the tain Ledley King and former Wolves
equalised from the penalty spot five thought we deserved to win, we got Milan game in a couple of days time goalkeeper Matt Murray, held their
minutes before half-time after Alan three fantastic goals, amazing strikes and he seems all right after the game. shirts aloft on the pitch before a
Defoe scored his first league goals since April Hutton had denied Nenad Milijas a and had chances to kill it off,” said He just felt the pitch was a bit heavy minute’s applause.
Picture: ACTION IMAGES clear goalscoring opportunity. Redknapp, whose side remain in fifth and his groin was a bit tight.”
CITYA.M. 7 MARCH 2011 Sport 27

Broad cashes in on South


KEY MOMENTS

Kuyt opened the scoring after 34 minutes


Africa’s Chennai chokers
when the outstanding Luis Suarez confused
United trio Rafael, Michael Carrick and Wes

CRICKET
Brown and prodded past goalkeeper Edwin
van der Sar across goal, where the Dutchman
BY JAMES GOLDMAN Pietersen set to fly
tapped into the unguarded net
ENGLAND captain Andrew Strauss
hailed yesterday’s miraculous six-
home for hernia op
run victory over South Africa in
Chennai as the turning point in his ENGLAND batsman Kevin Pietersen
side’s World Cup campaign. looks set to return home early from
After the humbling defeat his side’s World Cup campaign to
against Ireland last week, Strauss’s have a hernia operation.
troops were staring down the bar- Eoin Morgan, who has now
rel of an early elimination when recovered from a broken finger
the Proteas ripped through the top which originally ruled him out of
order and eventually bowled the tournament, and Craig
Tempers frayed just before half-time when England out for 171. Kieswetter, who opened the batting
Liverpool defender Jamie Carragher caught South Africa were cruising at 75 during last year’s victorious World
United winger Nani with a late challenge. The for one and then 124 for three but Twenty20 campaign, are the two
Portugal star was carried off with a gash on then lost four wickets for three players England are considering
his shin but referee Phil Dowd spared runs. Despite that wobble, Dale calling up.
Carragher a red card, opting to book him Steyn looked set to win the game It was announced on Saturday
with a late cameo but Stuart that Pietersen needed the operation
Broad, who ended with four for 15, after the World Cup which will rule
cleaned him and Morne Morkel up him out for six weeks.
in the space of four balls to con- The ECB stressed at the time
firm a sensational victory. that Pietersen, 30, would soldier on
“It was a huge game for us, in the subcontinent but a medical
because after the Ireland game we report has shown that his condition
needed to show some character,” had worsened with the player com-
said Strauss. “The guys dug very plaining of soreness yesterday.
deep in the field – and I was Pietersen has scored 39 against
delighted for the bowlers, who the Netherlands, 31 against India,
have been under the pump. Broad took four for 59 in the defeat by Ireland and just
So comfortable were Liverpool by the later “We had to get on a roll and put 15 to seal a memo- 2 against South Africa yesterday.
stages that manager Kenny Dalglish could them in a situation where there rable victory England are expected to apply to
afford to hand the most expensive British was pressure on and things hap- the ICC’s technical committee over
player of all time, Andy Carroll, his first pening with the pitch.” Pic: GETTY the next 48 hours to replace
appearance off the bench since his £35m Having haemorrhaged Pietersen in their squad.
move from Newcastle in January runs in their opening
three games of the
tournament, Anderson. Ravi the rejuvenated Broad. games against Bangladesh and West
defending a small Bopara, recalled to “I’m very pleased with the Indies, and Strauss hopes that after
TOP FIVE total against such
a powerful bat-
the side at the
expense of Paul
result – but the man of the match
should have gone to Stuart Broad,”
four epics, his side will book their
place in the last eight without any
TEAM PLD W D L F A PTS
ting line-up repre- Collingwood, top- he said. “I know he didn’t bowl his more major dramas.
Man United 29 17 9 3 63 30 60 sented a welcome scored for full quota of 10, but when he did “We’ve been involved in three
Arsenal 28 17 6 5 57 27 57 shot in the arm England with 60, bowl he was a massive difference very tight games so far in this
Man City 29 15 8 6 45 25 53 for England’s but the Essex bats- and made it count.” World Cup, and we’re doing our bit
Chelsea 27 14 6 7 48 23 48 attack, most man claimed the England will progress to the to advertise the 50-over format. But
notably pace duo man-of-the-match knockout stages with one more vic- we’d like them to be less close than
Spurs 28 13 9 6 41 34 48 Broad and James award should’ve gone to tory from their remaining group they are,” he said.

SPORT | IN BRIEF
England shouldn’t have inferiority
complex after superb comeback
Britain labour to Davis Cup win
TENNIS: Great Britain’s James Ward
needed to five sets before finally beating
Malek Jaziri and earning victory over
Tunisia in the Davis Cup at Bolton
Arena. Ward’s 3-6, 6-3, 3-6, 6-3, 8-6 win
sealed a 3-1 triumph in the wonderful rearguard performance ball bowlers are a fearsome pair.
Europe/Africa Zone Group II contest. from the bowlers means we don’t But that’s only half a side. The
Britain were without No1 Andy Murray have to countenance that prospect rest are bits and pieces cricketers –
although he could return to face and I expect England to now go people are raving about Imran
Luxembourg next in July for a place in from strength to strength. Tahir the leg-spinner, but he can’t
Group I. England can put the Ireland bat or field – and if the main men
debacle behind them and Andrew don’t contribute, they’ll always be
India made to work by Ireland
CRICKET: Ireland pushed India hard for
their five-wicket win, as England’s
CRICKET COMMENT
ANDY LLOYD
Strauss and Andy Flower should be
emphasising to their players that
they’ve now faced two of the
susceptible to the sort of collapses
which turn winning positions into
gut-wrenching defeats.
SPORT
World Cup Group B rivals did battle in strongest sides in the competition From a general perspective, final-
ATHLETICS
E
Bangalore. William Porterfield hit 75 as NGLAND were correctly ham- and matched them. ly, it was refreshing to see a game
Ireland posted 207 all out before Yuvraj mered for defeat, and particu- Having said that, I feel the South whereby the ball dominated the
Singh followed his five wickets with 50 larly the manner of it, against Africans have been massively over- bat. So far in this tournament it’s
not out as India reached their target
with 13 balls to spare.
Ireland but victory over South
Africa could prove the defining
rated and the tie England achieved
against India represents a better
been a case of who can hit the most
boundaries. And with all due
CLITHEROE
Sabbatini stays strong in Florida
moment in their quest for World
Cup glory.
result than a win in bowler friendly
conditions against the Proteas.
respect, when Ireland and Holland
are racking up big scores, you know
SHOWS SHE’S A
GOLF: Rory Sabbatini claimed his sixth
PGA Tour title with victory by one shot
Had it gone the other way against
South Africa yesterday I fear it
Sure, Graeme Smith and Hashim
Amla are a terrific opening combi-
the wickets are dead.
Ideally you want an even contest
REAL GOLDEN
at the Honda Classic in Florida. The
South African finished on nine under
would have been impossible for
England to have picked themselves
nation, Jacques Kallis is the best all-
rounder in the game, AB de Villiers
but for the sake of drama and
excitement I hope we see more
OLDIE
having resisted a challenge from South
Korea’s YE Yang. Graeme McDowell fin-
up off the canvas. Thankfully, a is in great nick and the two new tracks like the one in Chennai.
PAGE 25
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