BUSINESS WITH PERSONALITY
FRIDAY DEBATE: HAS MALE
GROOMING GONE TOO FAR?
Issue 1,212 Friday 3 September 2010
CITY TARGETED AS
EU GRABS POWERS
REGULATION
▲
BY OLIVER SHAH
EUROPEAN diplomats agreed last
night to set EU-wide financial watch-
dogs by the start of next year, formal-
ising a historic power grab by Brussels
institutions over key swathes of the
UK and London economies.
The trio of new regulators, to moni-
tor banks, insurance companies and
trading on markets, will be comple-
mented by a group attached to the
European Central Bank that will keep
watch for other economic risks like a
property price bubble.
The controversial move – champi-
oned by EU commissioner Michel
Barnier – establishes agencies that
can overrule a national regulator like
the Bank of England and will fuel
fears that European leaders with little
love of the City will throttle its ability
to compete globally.
The bodies will be able to intervene
in the regulation of individual banks
in London. But their resources as well
as freedom to sideline national agen-
cies will be limited. “These new
authorities will have the final word in
mediating a dispute between nation-
al authorities,” said Karel Lannoo of
the Center for European Policy
Studies, a Brussels think tank.
“They will be in charge and this is a
historical change. Although lack of
money will hinder their work, some,
for example in markets, could
become as powerful as the Securities
FTSE 100 ▲ 5,371.04 +4.63 DOW ▲ 10,320.10 +50.63
THE RISE OF THE HE-VAGE P28
www.cityam.com
European finance commissioner Michel Barnier wants to drastically curb short selling
and Exchange Commission.” to access the underlying security –
In a related move, European politi- known as naked shorting.
cians are preparing to take on hedge In emergency periods, regulators
funds by banning “naked” short sell- would have the power to limit all
ing in shares and government debt, short selling and credit default swap
as well as imposing broader curbs at trading for up to three months.
times of crisis. Market makers who provide liquidity
The Commission has drawn up would be exempt.
plans to follow Germany’s lead by for- Even in calm conditions, hedge
bidding traders from short selling funds would have to regularly reveal
equities or credit default swaps on their short exposure to certain shares
sovereign bonds without being able and the sovereign debt of EU nations.
NASDAQ ▲ 2,200.01 +23.17 £/$ 1.54 unc
CITY A.M.
Picture: REUTERS
The EC will meet to approve the
short-selling plans on 15 September.
Discussions will then begin with indi-
vidual countries, with the UK expect-
ed to object. The Alternative
Investment Management Association,
which represents hedge funds, wel-
comed a unified European approach
but said: “The crisis experience has
shown that imposing such bans does
little to calm market panic.”
ALLISTER HEATH: P2; Q & A: P2
£/¤ ▼ 1.20 -0.01 ¤/$ 1.28 unc
AWARDS
ANALYST AND
FUND MANAGERS
SHORTLISTED P7
FREE
Tube strike
to go ahead
on Monday
▲
TRANSPORT
BY EMMA SADOWSKI
THOUSANDS of Londers will face dis-
ruption to their travel plans this
Monday and Tuesday after talks to
avoid a crippling set of 24-hour strikes
by London Underground (LU) workers
collapsed yesterday.
Over 10,000 LU workers are set to
strike on Monday at 5pm, affecting
the entire network and launching the
rush-hour into chaos.
London Underground will not drop
plans to cut 800 staff working in tick-
et offices and stations, while unions
say these cuts will jeopardise safety
on the Tube.
Maintenance and engineering staff
will walk off the job first and will be
followed by station and ticket office
staff, drivers, signallers and opera-
tional managers. The industrial action
will last until 8:59pm on Tuesday.
Transport unions RMT and the
Transport Salaried Staffs’ Association
(TSSA) were locked in negotiations
with LU for more than four hours at
conciliation service Acas yesterday.
Transport for London said it hoped
to run some services because 60 per
cent of train drivers are members of
the rival union ASLEF, which is not
involved in the dispute.
Further strikes are planned for
Sunday 3 October; Tuesday 2
November, and Sunday 28 November.
Separately, services on the Jubilee
and Northern Lines will face disrup-
tion from 7pm on Sunday when 200
Alstom-Metro train-maintenance staff
are also scheduled to strike.
Certified Distribution
05/07/2010 till 01/08/10 is 94,889
 2 News
Planting the seeds of another crisis
EDITOR’S LETTER
ALLISTER HEATH
FOR some bizarre reason, the creation
of three new European Supervisory
Authorities and the European
Systemic Risk Board – a major power-
grab for Brussels – was welcomed last
night by Conservative MEPs. Vicky
Ford, one of their numbers who took
part in the negotiations, admitted
that “this is very complex multi-lay-
ered legislation and it needs to be
checked by legal experts over the com-
ing days” but nevertheless called for it
to be “put into action.” Regrettably, it
almost certainly will be, even though
even its supporters aren’t fully au fait
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Editorial
Editor Allister Heath
Deputy Editor David Hellier
News Editor Ben Griffiths
Night Editor Katie Hope
Associate Editor David Crow
Business Features Editor Marc Sidwell
Lifestyle Editor Zoe Strimpel
Art Director Darren Soulsby
Pictures Alex Ridley
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Head of Distribution
Jeremy Slattery
Harry Owen
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WHAT THE OTHER PAPERS SAY THIS MORNING
LENDERS SHUNNED ON STRESS TESTS
DOUBTS
Leading UK and continental
European companies are increasingly
shunning banks from Spain, Italy and
even Germany because they do not
believe the Europe-wide stress testing
of banks gave a true picture of their
financial health. Corporate treasurers
from groups with revenues of more
than $240bn told the Financial Times
they were conducting their own tests
to gauge for themselves banks’
robustness.
SHINHAN BANK IN COMPLAINT ON
PARENT’S HEAD
Shinhan Bank has filed a complaint
with Seoul authorities against the
chief executive of Shinhan Financial
Group, its parent and South Korea’s
largest financial company by market
value, alleging embezzlement and
breach of trust.
with the fine print. Far from being a
good thing, the new regulatory
regime will turn out to be yet another
blow to Britain’s competitiveness, cost-
ing jobs and tax receipts.
We should never forget how impor-
tant the City is to Britain. Tim
Congdon, the economist who runs
International Monetary Research, has
crunched the numbers. Exports of
financial services increased from 0.5
per cent of GDP in 1970 to 3.5 per cent
of GDP in 2009, despite the collapse
that year in the sector’s output. The
rise in financial exports roughly
matches the increases in finance’s
share of GDP; in other words, virtually
all of the growth in finance since 1970
has been exported. A somewhat wider
definition of financial services which
embraces insurance and half of other
business services (such as legal and
accountancy work and some IT) –
implies than exports of what Congdon
terms ‘”the financial complex” as a
whole are about 6-7 per cent of UK
GDP – and an extraordinarily impor-
AT A GLANCE: WHAT THE NEW EUROPEAN FINANCIAL REGULATORS WILL DO
Q. WHAT IS BEING SET UP?
A. Three agencies will be estab-
lished to keep tabs on banks,
markets and insurers next January.
The new European Banking
Authority will be based in London,
Paris will be home to the European
Securities and Markets Authority and
the European Insurance and
Occupational Pensions Authority will
be in Frankfurt.
The EU will also establish a
European Systemic Risk Board, an
agency of the European Central Bank
in Frankfurt that will keep watch for
threats to the economy such as prop-
erty price bubbles or soaring country
debts.
Q. HOW MUCH POWER WILL THE
NEW REGULATORS HAVE?
A. To begin with, the power of the
new financial sheriffs will be
restricted.
In limited circumstances, they will
be allowed to overrule a national reg-
ulator such as Germany’s Bafin or
Britain’s Financial Services Authority.
They would, for example, have the
final say in a tug-of-war between
countries, such as that between
Belgium and the Netherlands over
the future of banking and insurance
COULSON AFFAIR ESCALATES MEDIA
WAR
When senior aides to the royal family
noticed strange things happening to
their mobile telephones in late 2005,
they could not know their suspicions
would trigger a scandal that would
involve the country’s best-selling
newspaper, its biggest police force
and the prime minister himself. Their
hunch that their mobiles, as well as
those of princes William and Harry,
were being hacked into by reporters
proved correct, and Clive Goodman, a
journalist, and Glenn Mulcaire, a pri-
vate investigator, were both jailed for
the offences.
FEARS GROW OVER GLOBAL FOOD
SUPPLY
Russia announced a 12-month exten-
sion of its grain export ban, raising
fears about a return to the food short-
ages and riots of 2007-08 which
spread through developing countries
dependent on imports.
tant 20 per cent of total exports of
goods and services.
With manufacturing – the tradi-
tional source of exports – in long-term
decline, the City is thus vitally impor-
tant to Britain’s ability to pay its way
in the world; undermining the sector
(as opposed to reforming it to make it
more sustainable and less prone to
busts) would be a terrible mistake. Yet
that is exactly what this latest transfer
of powers to the EU will do. There is no
need for it: reforms can all be imple-
mented by national regulators; ditto
with changes to monetary policy.
One of the big unheeded lessons of
the crisis is that it is dangerous for all
countries to pursue similar policies:
there is nothing worse than everybody
getting it wrong at the same time. The
international Basel accords on capital
adequacy turned out to be disastrous-
ly misguided and helped propagate
the recession globally; the same is
true of international accounting stan-
dards that forced inappropriate mark-
to-market pricing of securities around
group Fortis, which was split up dur-
ing the crisis.
But countries will be allowed to
veto any order if it would force them
to spend money, a power which mem-
bers of the European Parliament had
attempted to overturn out of concern
that it would give states a get-out,
allowing them to undermine the new
authorities.
The bodies are, however, likely to
gather more powers as Brussels rolls
out its reform of financial services.
The European executive has, for
example, proposed giving the mar-
kets authority the power to impose
short-selling bans.
Q. HOW MUCH POLITICAL SUPPORT
IS THERE FOR THE NEW
A.
REGULATORS?
Setting up the new authorities
has been one of the most con-
tested elements of the EU’s financial
reform. Coordination among nation-
al regulators was largely disbanded
as capitals scrambled to protect their
banks and savers during the crisis.
Nonetheless Germany and Britain,
two of the EU’s most important eco-
nomic centres, were reluctant to sur-
render power to the agencies.
The threat of a political veto to
their rulings will likely discourage
SECOND LOOK AT FLOTATION FOR
SCOTTISH RESOURCES
Scottish Resources is considering
returning to the City after a lack of
investor support forced it to shelve a
flotation in the summer. The miner,
which owns the remnants of
Scotland’s coal industry, is under-
stood to be keen to try its luck again.
If it does so, its original target of £250
million might well have to be
trimmed.
STAMP DEALERS SELL UP TO STANLEY
GIBBONS
A husband-and-wife team of specialist
stamp dealers was £300,000 better off
yesterday after their business was
bought by Stanley Gibbons, the col-
lectibles company. Stanley Gibbons
bought the business, which traded as
M&N Haworth, for cash — comprising
a payment of £150,000 on comple-
tion, plus £150,000 next April.
the world. Central banks, fixated on
consumer price inflation rather than
on the money supply or the quantity
of credit, encouraged asset price bub-
bles which almost took the world
economy down with them when they
finally went pop. Countries even took
to slashing interest rates in tandem.
Groupthink breeds uniformity; uni-
formity inevitably leads to stupidity.
My argument is the very opposite to
that which is now made almost uni-
versally by politicians and pundits –
they claim we need a single, coordi-
nated, harmonised set of policies in
response to the crisis. But proponents
of the received wisdom are merely
planting the seeds of an even greater
fall the next time around. Regulatory
competition and experimentation
between nations is a good thing; it
serves as a process of discovery and
needs to be encouraged, not killed off.
The EU, of course, has never under-
stood this – but the rest of us forget it
at our peril.
allister.heath@cityam.com
The EU parliament in Brussels is rolling out financial services reform
the new agencies from intervening in
the regulation of banks in London or
Frankfurt. The stability board is in an
even weaker position as it does not
have legally binding power. Instead it
will rely on the power to “name and
shame” to discourage behaviour that
could lead to another economic
crash. One source familiar with the
group recently said, however, that it
would be reluctant to publicly voice
concerns over threats for fear that it
could rattle investors.
For example, a warning to a coun-
try whose borrowing is dangerously
high will mostly take place behind
closed doors.
RUPERT MURDOCH TAKES HOME $17M
AFTER 6PC PAY CUT
Rupert Murdoch, the media mogul
owner of The Times, The Sun and the
News of The World, took a 6pc pay cut
to $16.8m (£10.9m) last year, his small-
est pay packet since 2003. Although
his salary was unchanged at $8.1m,
his bonus dropped 20pc to $4.4m. The
79-year-old billionaire chairman and
chief executive of News Corporation
was also granted $4.1m of stock and
share options.
'WORK WITH US CHINA, NOT AGAINST
US', URGE EUROPEAN BUSINESSES0pc
European business leaders have
issued a cri de coeur for greater mar-
ket access to China, calling on the
world’s largest emerging economy to
level the playing field for foreign
investors. Jacques de Boisseson made
his plea for a fairer deal from China as
he launched a 650-page report.
CITYA.M. 3 SEPTEMBER 2010
Banks rethink
use of bonus to
recruit talent
▲
BANKING
INVESTMENT banks are moving away
from offering “guaranteed” bonus
packages to entice new recruits,
according to a new report.
Of the 37 financial institutions sur-
veyed by the Institute of International
Finance, only five per cent of bonuses
handed out in 2009 were guaranteed.
The figure represents a drop from
2008 when 10 per cent of bonuses
were guaranteed and 2007 when
eight per cent were of the same
nature.
A guaranteed bonus promises a
fixed incentive payment despite an
individual’s performance or the prof-
itability of the company.
The survey indicates that the
investment banking industry has
almost entirely stopped handing out
the controversial bonus.
Q&A
Picture: REX
Q. IS THIS THE BEGINNING OF A
EUROPEAN-STYLE SECURITIES
AND EXCHANGE COMMISSION?
A. Experts in European policy have
called the setting up of the new
authorities a historic development,
but their power and influence is like-
ly to fall some way short of the US
Securities and Exchange Commission.
The European bodies will have a legal
mandate as well as the discretion to
overrule a country regulator if they
bend the rules that the new agencies
are responsible for setting. But with a
limited budget and headcount, many
fear the new regulators may struggle
to make their voice heard.
ABBOTT SCRAPS AUCTION OF
VACCINES BUSINESS
Abbott Laboratories pulled the plug
on the sale of its European flu-vac-
cine business when initial bids came
in below the company's expectations.
The auction, which Abbott started in
June, drew interest from four or five
bidders, but the offers, which came in
at less than €500m ($640n), proved
too low for the company’s liking.
VIMPELCOM IN DEAL TALKS AS
PROFIT DROPS
Russian telecommunications opera-
tor Vimpel Communications Ltd. said
it is in talks to buy Egyptian and
Italian telecommunications assets, as
it reported a 52% decline in net prof-
it. Chief Executive Alexander
Izosimov said VimpelCom is in talks
to buy Italian mobile operator Wind
Telecomunicazioni and a stake in
Egypt's Orascom Telecom Holding.
CITYA.M. 3 SEPTEMBER 2010 News 3

HSBC warns over

Soaring job-
lessness has
hit Burger
King hard
Picture:

UK banking exodus
REUTERS

0.7per cent fall in

global sales in three separating their high street banking

▲
BANKING
months to 30 June 4.8 per cent rise in BY EMMA SADOWSKI
global sales in three HSBC said yesterday that Britain’s
$49m profit for three months to 30 June largest banks would leave the UK
should the government appointed
months to 30 June Commission on Banking decide to
$1.2bn profit for break up big groups.
2006 float price: $17 three months to 30 June The firm’s investment banking
head, Stuart Gulliver, expressed con-
Take-private price: $24 cerns that the commission might
move to divide universal banks by
from their investment banking opera-
tions.
Gulliver said: “[That] has signifi-
cant implications clearly for where
we may choose to headquarter our
institution.”
It is already widely believed that
HSBC could turn eastward to head-
quarter in Hong Kong but the bank
said last night that it does not have
any current plans to do so.

Brazilian trio
takes Burger
King for $4bn
Capital, has struggled during
▲

CONSUMER
BY OLIVER SHAH
A LITTLE-KNOWN private equity firm
stunned Wall Street by taking over
troubled fast food chain Burger King
in a $4bn (£2.6bn) deal yesterday.
Analysts began talking about a
potential wave of takeovers in the
restaurant sector after 3G Capital, a
New York-based vehicle run by three
Brazilian billionaires, agreed a $24-
per-share offer with the company’s
board. The generosity of the 46 per
cent premium to Burger King’s undis-
turbed share price surprised many
market participants.
3G will take on the eatery opera-
tor’s £750m debt pile and keep chief
executive John Chidsey as co-chair-
man alongside 3G partner Alex
Behring. Headhunters will be search-
ing for a fresh candidate to succeed
Chidsey as chief executive.
3G said it had raised financing
from JPMorgan Chase and Barclays
Capital. The transaction is expected
to close in the fourth quarter.
Burger King, which returned to
public ownership in 2006 after a spell
under the control of private equity
groups TPG, Goldman Sachs and Bain
America’s lengthy downturn.
Its reliance on working class, male
customers meant soaring joblessness
hit the franchise hard. Last week
Burger King said worldwide sales
were down 2.3 per cent this year, with
sales in the US down 3.9 per cent.
In contrast, bitter rival McDonald’s
grew its global sales 4.8 per cent in
the second quarter, with US sales up
3.7 per cent. Burger King has been try-
ing to fight back with thicker, steak-
like premium products.
Jake Bartlett, an analyst at
Susquehanna Financial Group, said:
“This buyer has a more optimistic
view of the future than most of the
Street does on the stock. Everyone
was just shocked to see the bid at
nine times 2010 earnings.”
Tom Forte, an analyst at Telsey
Advisory Group, predicted a “wave of
mergers & acquisitions” for the casu-
al dining space. Forte named Mexican
grill Brinker International and ribs
restaurant Ruby Tuesday as targets.
“We won’t have any companies left
to cover pretty soon,” he said. “The
restaurant sector is an interesting
space for private equity looking for
companies to generate free cashflow.”

Dell hands 3Par to HP as

walks out of bidding war
ny. The board of 3Par approved HP’s
▲

TECHNOLOGY
BY HARRY BANKS
DELL said yesterday it won’t match
HP’s offer to pay $33 per share for
3Par, or about $2.07bn (£1.3bn) yester-
day. Dell’s decision came barely an
hour after 3Par announced it had
received Dell’s revised offer of $32 per
share and then the even stronger bid
from HP.
3Par said Dell’s revised offer con-
tained new terms that it found unac-
ceptable, including a multiyear
reseller agreement with Dell that
would remain in effect even if 3Par
were to be bought by another compa-
offer, which is 83 per cent above Dell’s
first offer and more than three times
what 3Par stock was trading at then.
The deal is expected to close by the
end of the year.
“We took a measured approach
throughout the process and have
decided to end these discussions,"
said Dave Johnson, Dell’s senior vice
president for corporate strategy.
Shares of 3Par increased 80 cents,
or 2.5 per cent, to close yesterday at
$32.88. Before Dell conceded, 3Par
shares were trading as high as $33.84
as investors expected Dell to match or
beat HP’s $33-per-share offer.
 4 Economic News
Bernanke: I
messed up
over Lehman
▲
US ECONOMY
BY HARRY BANKS
US Federal Reserve chairman Ben
Bernanke yesterday said he was partly
to blame for leaving the wrong
impression that the central bank
could have saved Lehman Brothers
from failure in 2008.
Bernanke, testifying before a con-
gressional commission examining
the causes of the worst financial crisis
in 80 years, said he thought it “very
likely” the investment bank was insol-
vent and lacked sufficient collateral
to borrow enough from the central
bank to avert collapse.
But he said he kept that view to
himself in congressional testimony
given just days after Lehman’s
September 2008 bankruptcy because
he was worried that such comments
might have spooked already panicky
financial markets.
“I regret not being more straight-
forward there because clearly it has
supported the mistaken impression
that in fact we could have done some-
thing we could not have done,” he
said.
The Financial Crisis Inquiry
Commission wrapped up a two-day
session yesterday focusing on “too big
to fail” firms whose disorderly col-
lapse could destabilise the global
economy.
On Wednesday, commission chair-
man Phil Angelides questioned
whether politics had played a role in
the decision not to bail out Lehman
Brothers, citing emails showing US
officials fretting over how the media
might portray a taxpayer-funded res-
cue of a Wall Street titan. Lehman’s
bankruptcy triggered widespread
panic, hastening the worst global
recession since World War Two.
“It was with great reluctance and
sadness I conceded that there was no
other option” but to let Lehman fail,
Bernanke said. “The only way we
could have saved Lehman would have
been by breaking the law and I’m not
sure I’m willing to accept those conse-
quences for the Federal Reserve and
for our system of laws,” he added.
CITYA.M. 3 SEPTEMBER 2010
New data quells
fears over fresh
US recession
US ECONOMY
▲
PENDING sales of previously owned US
homes rebounded unexpectedly in
July and new claims for jobless bene-
fits fell last week, helping dampen
fears the economy could face a double
dip recession.
The data yesterday, including sturdy
sales from US retailers last month, fol-
lowed a report on Wednesday showing
a surprising gain in manufacturing
activity and suggested the economy
retained some underlying strength.
Investors appeared to agree earlier
fears of a double-dip recession might
have been overdone as they sold long-
dated US government bonds and
bought some stocks.
The National Association of
Realtors’ Pending Home Sales Index,
based on contracts signed, rose 5.2 per
cent in July from a month earlier.
Analysts had expected the index,
which leads actual sales by a month or
two, to fall one per cent.
Home sales have dropped sharply
since a popular tax credit for home
buyers ended in April and the surprise
gain in pending sales raised hopes the
sector could soon stabilise.
A separate report from the Labor
Department showed initial claims for
state unemployment benefits dropped
for a second straight week last week,
Ben Bernanke said he could have been more “straightforward” over Lehman Picture: GETTY slipping 6,000 to 472,000.
CITYA.M. 3 SEPTEMBER 2010
Surveys cast
shadow over
house prices
▲
UK ECONOMY
BY HARRY BANKS
HOUSE prices fell much faster than
expected last month and construc-
tion activity slowed, industry surveys
showed yesterday, reinforcing con-
cerns that economic growth will fall
off sharply.
The strongest quarterly construc-
tion growth for decades pushed
British economic growth to a nine-
year high of 1.2 per cent in the sec-
ond quarter, but the Markit/CIPS
purchasing managers’ index (PMI)
suggests this is slowing rapidly -- driv-
en partly by weaker house prices.
House prices dropped a bigger-
than-expected 0.9 per cent in August
after a 0.5 per cent decline in July,
the sharpest fall since February,
according to the monthly survey
from mortgage lender Nationwide.
July and August marked the first
two consecutive monthly house price
falls since the decline in British
house prices levelled off in February
2009, and the annual rate of house
price growth slowed to 3.9 per cent
from 6.6 per cent, well below fore-
cast.
“As fears of a double dip in the
housing market take hold, builders
will likely feel less urgency to begin
new developments,” said Nomura UK
economist Philip Rush.
A fall in the rate of new home
building pushed the PMI down to a
six-month low of 52.1 in August from
54.1 in July.
This was a sharper slowdown than
economists had expected since the
boost to second quarter output from
projects that had been delayed
because of icy winter weather faded
away.
CIPS chief executive David Noble
said: “The most disturbing is the
marked slowdown in the residential
sector as this is where much of the
recent sector growth has come from.
The slight increase in public-sector
activity disguises continuing uncer-
tainty about the scale of spending
cuts which we have yet to experi-
ence.”
Economic News 5
ECB extends its
bank liquidity
lifeline into 2011
EUROPE ECONOMY
▲
THE European Central Bank (ECB)
extended its liquidity safety net for
vulnerable Eurozone banks into next
year, delaying its exit from crisis meas-
ures for now as it urged caution about
the economic recovery.
The ECB left rates at a record low of
one per cent for the 16th month in a
row yesterday and said policy
remained accommodative as the
region battles with an uneven recov-
ery and concerns about bank vulnera-
bility.
ECB staff raised economic growth
forecasts but President Jean-Claude
Trichet said risks were to the down-
side and the recovery would be moder-
ate with uncertainty prevailing. “We
have to remain cautious and prudent.
We don’t declare victory,” he told his
monthly news conference, although
he said a double-dip recession was not
on the cards.
The ECB extended its promise to
lend banks unlimited one-week and
one-month funds until at least 18
January, keeping liquidity flush
through the tense end-of-year period
in a move which should keep market
rates low. It will also offer unlimited
funds at three-month operations until
December although the cost of these
will not be fixed in advance, rather
ECB President Jean-Claude Trichet is “cautious” about the Eurozone economy Picture: REUTERS indexed to the ECB’s policy rate.
 6 News
Goldman leads M&A tables
▲
M&A
BY EMMA SADOWSKI
GOLDMAN Sachs is the most sought
after financial adviser globally on
merger and acquisitions, after land-
ing a role on three mammoth
takeover deals last month.
The Wall Street giant pushed its
way to the top of Thomson Reuters’
M&A adviser rankings after taking a
pole position on the highest valued
deals since January.
In that period, Goldmans advised
on the lion’s share of mega-value
deals after snapping up roles on 234
transactions worth $373.6bn
RBS blames
EU for 3,500
job losses
▲
BANKING
BY STEVE DINNEEN
ROYAL Bank of Scotland (RBS) yester-
day blamed the EU for swingeing job
cuts that will clear out 3,500 support
staff.
The bank released a statement
pointing to EU rules for the cuts. A
statement read: “We continue to
make efficiencies across our business
and adjust our plans in line with the
divestments we have been required
to make by the EU.”
The fresh wave of efficiency savings
follow 9,000 job losses last year. RBS
had warned more cuts were on the
way but the fresh figure is around a
third higher than expected, largely
due to the forced sale of 318 branches
to Santander.
City A.M. understands the losses will
affect support staff, with IT staff bear-
ing the brunt. No front-facing staff
will lose their jobs.
A small number of jobs –roughly
500 – will be outsourced abroad.
The bank’s biggest union Unite yes-
terday branded the job cuts a “horror
story”.
Rob MacGregor, Unite national offi-
cer said: “It will be a specially bitter
pill for staff to swallow as RBS has
Metro Bank vows to employ 500 staff WM Morrison to start
by next year as it opens second branch selling groceries online
▲
BANKING
BY OLIVER SHAH
HIGH STREET upstart Metro Bank
said it would employ more than 500
staff by the end of next year as it
opened its second branch in the UK.
Chief executive Craig Donaldson
told City A.M. the retail deposit taker,
which aims to attract disillusioned
customers from other major lenders,
would have 200 employees by
Christmas. It aims to more than dou-
ble the number in 2011.
(£242.5bn).
Goldman, along with rivals JP
Morgan, advised on BHP Billiton’s
$43bn takeover of Canadian owned
PotashCorp, which was last month’s
largest deal.
JP Morgan also pushed up the rank-
ings into second place as the bank
advised on 202 deals valued at
$336.1bn during the first eight
months of the year.
Both firms scored top roles on
Power International’s $25bn merger
with GDF Suez Energy and Sanofi-
Aventis’ $18bn bid for Genzyme, edg-
ing the two banks past rival Morgan
Stanley for the top global spot.
decided to move some of the jobs
abroad to the Far East, India and
America.
“Just three weeks ago staff were
boosted to hear of the £1.1bn half
year profit yet today thousands of
them are told that they have no
future at the bank.
“Unite is appalled that this 84 per
cent tax payer supported institution
has since 2009 under the banner of a
strategic review cut 21,500 staff.
“The scale of the cuts announced
today beggars belief and staff across
the country today will be left reeling
from this news.”
The bank responded that job cuts
are “the most difficult part of our
work” and said it would continue to
support those affected.
ANALYSIS l RBS
p 46.15
2 Sep
52
48
44
40
7 Jun 25 Jun 15 Jul 4 Aug 24 Aug
“We’ve been overwhelmed by cus-
tomer interest, and we’re recruiting
staff aggressively to meet the number
of savers joining,” Donaldson said.
Metro met its one-year target for
account openings within a month of
Metro Bank’s Craig
Donaldson said the
lender would open
200 branches within
the next decade
CITYA.M. 3 SEPTEMBER 2010
TOP FINANCIAL ADVISERS | GLOBAL
Rank
1
2
Financial Adviser
Goldman Sachs & Co
JP Morgan
YoY Rk Chg.
▲1
▲2
Value ($ mln)
373,623.6
336,188.5
Mkt. Shr.
23.9
21.5
# of deals
234
202
Despite advising on 23 more deals 3 Morgan Stanley t2 316,832.9 20.3 257
than Goldmans, Morgan Stanley fell
from the top spot for the first time in 4 Bank of America ML ▲2 243,143.0 15.5 154
seven months to third place after 5 Credit Suisse = 239,877.5 15.3 196
advising on 257 transactions worth
$316.8bn. ANALYSIS l Worldwide announced M&A by deal size ($bln)
Meanwhile, August marked a 300 $5b-Hi $500m-$1b
record month for high value deals $1b-$5b $.001-$500m
after worldwide M&A activity totalled 250
140.5
$267.2bn, the biggest since 1999 200 20.1
152.7 96.6 65.7
when $274.9bn in deals were com- 35.0 27.3 53.3
150 47.5
pleted. 64.7 25.7 59.2
70.1
38.4 101.1
76 58.8 75.9 87.6 69.0
During the same period last year, 100 74.6 77.9
22.5
36.4
50.6 34.2
37.9 52.5 48.7 55.1 49.6 56.2
43.7 30.5
roughly $127bn in deals were penned 47.6 32.7 36.9 39.1 37.2 20.3 21.6 37.9 23.1 20.9 23.6 25 36.8 22.2 25.8
23.1 29.6
13.5 22.1
50 11.9 7.9
as the financial crisis took its toll on 9.2 13.2 11.6 9.3 9.9
confidence amongst the world’s top 29.7 30.9 37.6 35.6 39.4 46.4 48.4 39.7 54.3 55.8 56.8 65.2 41.4 50.2 59.2 51.4 50.2 64.1 60.4 48.8
companies. Jan 09 Mar 09 May 09 Jul 09 Sep 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10
RAB Capital
GELDOF SEEKS $1BN FOR AFRICAN FUND
hires a new
chief exec
▲
HEDGE FUNDS
RAB CAPITAL has hired Charles
Kirwan-Taylor as its new chief execu-
tive, replacing Stephen Couttie.
Kirwan-Taylor was previously chief
investment officer at the firm, having
joined in 2008 during the last man-
agement shake-up. He becomes the
hedge fund’s third boss in less than
two years.
Couttie has left to pursue interests
outside the group, but will continue
to assist RAB on an advisory basis, the
company said in a statement.
Kirwan-Taylor quit his job as chair-
man of UK corporate broking at
Credit Suisse in 2006 to set up
Greyshrike Capital, a hedge fund
focused on European equities.
While at Credit Suisse he advised
on several high profile transactions,
including the privatisation of
Telecom Italia, the flotation of
Alstom and the initial public
offerings of easyJet and Qinetiq.
RAB, which focuses on energy and
commodities funds and is also well-
known for its failed bet on Northern
Rock, reported a loss before tax and
exceptional items of £6.9m in 2009.
Executive chairman Michael Alen-
Buckley said: “His experience in
Picture: REUTERS financial markets and as CIO and
SIR Bob Geldof has launched a private equity fund to raise $1bn for investment in head of Risk at RAB mean that he is
Africa – making it one of the largest in the market for African deals. Geldof has teamed ideally placed to lead the group in its
up with Mark Florman, a former executive at UK buyout firm Doughty Hanson, to run next phase of development as we
the fund. Called 8 Miles, the fund plans to make about 20 investments of between $15m focus on delivering out-performing
and $80m in agribusinesses, financial services and telecommunications. risk-adjusted returns for investors.”
launching, he added. role since his appointment, it is also
▲
RETAIL
Metro opened an outlet in Earl’s anticipated that Philips will detail the
Court today to complement its exist- WM MORRISON, Britain’s fourth company’s opportunities to develop
ing site in Holborn. The institution largest supermarket chain, is expect- non-food areas and a broader base of
plans to unveil branches in Fulham ed to announce next week that it will store formats.
Broadway and Borehamwood this start selling groceries online. Philips joined WM Morrison in
year before opening a further eight in According to the Financial Times, March after he was poached from
2011. Within a decade it could have the retailer’s newly appointed chief Canada’s Loblaws chain two months
200 branches on high streets across executive Dalton Philips is set to earlier. He has already made some
the UK. Although Metro admits its make his business plan for Morrison’s changes, recruiting Richard Hodgson
interest rates will not top newspapers’ future, including offering groceries from Waitrose as commercial director.
“best buy” tables, it sells itself on online to its customers, public next Hodgson will replace Morrison’s
seven-days-a-week availability and a week. Martyn Jones, a trading director, who
late 8pm closing time. In his first appearance in the new is to move into corporate services.
CITYA.M. 3 SEPTEMBER 2010
ANALYST
OF THE YEAR
A
NALYSTS are the heart and
soul of the City, and the five on
our list are legends in their
own sectors. Whether it is look-
ing at the future of the energy indus-
ANDREW
DOBBING,
JP MORGAN
CAZENOVE
One of the most respected voices
in the energy sector, Dobbing is a
member of the oil and gas equity
research team at JP Morgan
Cazenove, where his analysis is a
must-read for anybody with even
the most passing interest in the
movements in this fast-moving
industry. He has an admirably
global pedigree, too. Before mov-
ing to London, he worked in oil
services stocks in Oslo, with roles
at Alfred Berg, ABN Amro and
Danske Securities, all in Oslo.
FUND
OF THE YEAR
MANAGER
R
ECESSIONS are when reputa-
tions are made, they say, and
that has been true in the world
of fund managers. While some
have battened down the hatches, the
FIDELITY
The fund management giant
makes our list for two reasons.
Firstly, it reacted to the crisis in
western banks by launching a
China fund run by its star manag-
er, Anthony Bolton, showing that
it is quick on its feet and takes
Asia seriously. And secondly, it
spoke out about the coalition gov-
ernment’s plans to raise CGT. In a
world where many City bigwigs
are quite happy to keep their
heads down and do their moan-
ing in private, that gets kudos.
Headline sponsor
Category sponsors
| The Shortlist day 4
try, pontificating on the biggest
M&As, or just looking at the move-
ments of the markets in general,
when the members of our shortlist
talk, people listen.
KAREN
OLNEY, UBS
Head of European thematic
research at UBS in London, Olney
has made several good calls this
year. She was one of the first ana-
lysts to flag the investment case
for Germany, in February, and
also made the call that investors
should invest in dividends, a tactic
that has proved profitable. She
previously worked at Merrill
Lynch and Dresdner Kleinwort
Wasserstein, and before that was
a fund manager and chartered
accountant.
| Sponsored by
ones on our list have seen opportuni-
ty in crisis, and pushed ahead with
flotations and expansions, or have
just taken the chance to expand. All
are stars in their own way.
JUPITER
There were raised eyebrows in
the City when Jupiter pushed
ahead with its flotation earlier
this year, despite fellow fund
manager Gartmore’s problems
post its own IPO, but it has
proved a shrewd move. In the
first half revenues climbed 39 per
cent, to £131.1m, and it has also
seen an inflow of £814m more
money, now managing £19.8bn.
Shares are up 23 per cent from
their initial price. Sometimes for-
tune favours the brave.
In association with
Sponsored by
Don’t miss the City event of the year –
get online now and book your table for
the City A.M. Awards on Thursday 28
October 2010 at Grange St Paul’s Hotel,
London EC4. www.CityAMAwards.com
LORNA
TILBIAN,
NUMIS
A media analyst for a quarter of
a century, Tilbian is one of the
best-known in the industry.
Admirers applaud the way that
she “can see through corporate
wool-pulling at 40 paces”. Tilbian
joined the sparky Numis in 2001
having previously worked at City
firms SG Warburg and Panmure
Gordon. She has long been a reg-
ular in Media Week’s Power 50
list, and was recently appointed a
business ambassador by the gov-
ernment.
Don’t miss the City event of the year –
get online now and book your table for
the City A.M. Awards on Thursday 28
October 2010 at Grange St Paul’s Hotel,
London EC4. www.CityAMAwards.com
NEPTUNE
The story for Neptune over the
past 18 months has been one of
incredible growth. At the start of
2008 its boss Robin Geffen
decided that it should double its
funds under management in 18
months. Astonishingly, helped by
a re-branding, a publicity drive
and the launch of new products
targeting emerging markets, it
succeeded. At the time of writing
it has increased its money man-
aged from £2.5bn to £5.9bn. And
all in a downturn. Not bad going.
Awards reception sponsor
SIMON
WARD,
HENDERSON
A highly-respected analyst with
his finger on the financial pulse of
the City, Ward has worked as an
economist in financial markets
for over 20 years, working at
ANDREW
WOOD,
SANFORD
BERNSTEIN
A hugely respected figure in the
City, and a man who has left many
an awards dinner with a gong in
his hand. Although he is based in
New York, he is well-known as one
SCHRODERS
If longevity is a mark of quality,
then there is no doubting
Schroders’ pedigree – it has been
in the City since 1804. In these
hard times many people have
ABERDEEN
ASSET
MANAGEMENT
Employing 1,800 people in 24
countries, FTSE 250-listed
Aberdeen is one of the biggest
players in the fund management
industry. Its assets were close to
News 7
MONDAY
RETAIL BANK
&
PROFESSIONAL SERVICES
WorldInvest, Lombard Street
Research and Bank Julius Baer,
before joining Henderson follow-
ing its acquisition of New Star in
April 2009. His monetary per-
spective has led him into criticism
of the Bank of England and the
government, and recently he has
been at the forefront of those
calling for an interest-rate hike,
something which has chimed
with many in the Square Mile.
of the leading European equities
analysts. He has been at Sanford
Bernstein since 2001, having pre-
viously worked for a decade in the
food and drink sector, first at
PepsiCo and then at Nabisco.
Unsurprisingly, then, he is an
expert on that sector, and his big
call this year was Cadbury-Kraft,
arguing all the way along that
Kraft would succeed in its
takeover.
decided to trust the name, and
over the past year it has seen an
influx of money – it now manages
£164bn, up 16bn year-on-year.
Its popularity is not all about
those oak-panelled rooms and the
lure of tradition, either; in the first
half of this year it beat almost all
predictions and made profits of
£188m. In a world of fresh,
young fund managers, the wise
old heads can still perform.
an incredible £165bn at the end
of June, £36.3bn of which was
added in the past three quarters,
and £11.2bn in the last quarter.
Although it retains Scottish con-
nections – CEO Martin Gilbert is
still based in Aberdeen – it is a
very modern firm, and has
recently received plaudits for its
Asia Pacific funds. It is renowned
for its single-minded, independ-
ent approach.
Official venue partner
 The Capitalist
9
EDITED BY
STEVE DINNEEN
GOT A STORY? EMAIL
thecapitalist@cityam.com

BLANK GETS Boris and

READY FOR
TRIP BACK
TO LLOYDS
SIR Victor Blank, who quit Lloyds Banking
Group last year in the aftermath of its
controversial merger with HBOS, is
returning in a few days’ time for a happy
occasion.
Blank is there as the guest of current
chairman Sir Wyn Bischoff who is hosting
an unveiling ceremony of a portrait of his
predecessor in line with a Lloyds tradition
that dates back to 1868.
The first Lloyds chairman to have his
portrait adorning the offices in Gresham
Street is Timothy Kenrick, who chaired
Lloyds from 1865 to 1868.
The timing of the unveiling of the
Blank portrait is noteworthy: for it is near-
ly two years to the day that Blank and
chief executive Eric Daniels sealed the ill-
fated merger with HBOS.
Some shareholders are still trying to
string Blank up for the deed, but there are
others who think the merger may come
good in the end.
Blank’s portrait was painted by UK
artist John Keane, whose portraits have
included the late Northern Ireland
Minister Mo Mowlam and Channel 4 pre-
senter Jon Snow. Keane was also the offi-
cial British artist during the Gulf War.
Victor Blank will return to Lloyds for a portrait unveiling
STRICT DRESS CODE
ON the subject of unveilings, the venera-
ble Terry Smith will cut the ribbon on an
a long-awaited statue of WWII hero Sir
Keith Park (see right).
Smith, a face so recognisable in the City
he is surely in line for a portrait of his own
one day, has campaigned hard for the RAF
commander.
The unveiling of the memorial, in
Waterloo Place, is very much a dressy
affair. The Capitalist was slightly relieved to
discover serving vice-air marshalls were
not required to bring their swords. Full
ceremonial dress, however, is mandatory.
Even civilians are asked to wear a lounge
suit, as a mark of respect.
transport
secretary
Philip
Hammond
take to the
saddle to pro-
mote the new
bike scheme.
Pictures: Micha Theiner/City A.M.
Park is credited as being the master-
mind behind the defeat of the
Luftwaffe. As part of the campaign a
version of the statue has adorned the
Fourth Plinth in Trafalgar Square.
SKY’S HARD CUTS
SKY News came up with a novel way
to market its new special series on
the effects of the Budget cuts. The
Capitalist was surprised to receive a
solid plastic invitation with a pair of
metal scissors attached to it, bearing the
Sky News logo. See what they’ve done
there? Scissors... Cuts... You already got it?
Oh. The day of programmes will “ask
where the cuts are already biting and find
The Mayor is back on his wheels
out whether the public is yet engaged”.
It will be presented by Dermot
Murnaghan, which the blurb informs me
is “the man who got on his bike to check
out the economic cycle in 2009.”
This time he will be presenting in loca-
tions from Scotland to the South West of
England. Hopefully he won’t be forced to
travel all that way on his bicycle or the
economy won’t be the only thing in trou-
ble.
SADDLE-SORE BORIS
Which brings us nicely to what is
becoming our daily slot on Boris’
adventures on two wheels. Yesterday
he took to the streets again, this time
with transport secretary Philip
Hammond. The two posed with new
bikes before riding off into the sunset.
With all this cycling it’s a wonder the
mayor has a chance to get anything done.
Hopefully, he’ll take some time out of
the saddle to attend City A.M.’s inaugural
awards ceremony, where he is nominat-
ed for Personality of the Year.

LET’S
LET
T’S TA
TTALK
A
ALLK FOREEX
Join Allister Heath, editor of City AM as he welcomes Boris Schlossberg,
Director of Currency Research at GFT for an ‘all-things-forex’ seminar.

Thursday, 23 Sept
Se ember | 8:00 am – 10:00 am | The Grange Hotel Register online
at gftuk.com//ccityam
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CITY TO
COPENHAGEN
FROM £65
ONE WAY
With a flight time of less than
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quickly. Book at ba.com
CITYA.M. 3 SEPTEMBER 2010 News 11

Samsung joins the

Leo de Bever, chief
executive of
Alberta Investment
Management, has
turned down a

queue of iPad killers

request to partici-
pate in a Chinese-
backed consortium
interested in
launching a coun-
terbid for Potash
Corp
Picture: a cue from Apple.

▲
TECHNOLOGY
GETTY BY STEVE DINNEEN
SAMSUNG’S first tablet computer will
go on sale in two weeks, it said yester-
day, joining the hunt to challenge
Apple’s iPad.
Global handset vendors and PC
makers including Nokia, LG and
Hewlett-Packard are moving into the
new category of devices, between tra-
ditional PCs and smartphones, taking
Dell said last month it was launch-
ing its new tablet device called the
Dell Streak to US customers.
Samsung declined to give the price
of Galaxy Tab, saying it will depend
on operator packages in different
countries.
The device is understood to be
smaller than Apple’s 9.7 inch iPad.
Analysts say price will be the key issue
if Samsung is to compete.

Canada fund
Y
DA
SU E
S L
N
D A
EN S

approached
on Potash bid
20 %
largest miner led by boss Marius
▲

M&A
BY HARRY BANKS
POTASHCORP’S best hope of escap-
ing BHP Billiton’s $39bn (£25bn) hos-
tile takeover bid has received a blow
from a local government minister.
Leo de Bever, chief executive of
Alberta Investment Management
(AIMCo) said yesterday that a variety
of parties have approached the fund
manager about entering into a rival
takeover bid for PotashCorp, but that
participating in a deal at this point is
unattractive to AIMCo.
Alberta’s public sector fund man-
ager had been approached by
Chinese sovereign wealth funds and
other parties about participating in a
takeover offer to rival the hostile
move by BHP.
“We can’t right now make the eco-
nomics work,” said de Bever. “If it
were to work it would take a consor-
tium of pension funds, if you were to
do it. But is that really appropriate
for those pension funds?”, he said.
PotashCorp, based in the western
Canadian province of Saskatchewan,
which neighbours Alberta, is current-
ly facing a $130-a-share hostile
takeover bid from BHP, the world’s
Kloppers. Potash has rejected the
offer as “grossly inadequate”.
De Bever noted that the cost of cap-
ital for Chinese sovereign wealth
funds was a lot lower than it was for
a Canadian pension fund, or a fund
manager like AIMCo. Lo
“I don’t want to speak for any nd
other pension fund, but I think we on
are all uncomfortable being put in a
position that isn’t particularly eco-
(ST
N) OF *
nomical,” he said. De Bever said
Chinese sovereign wealth funds are
F
among those that can afford to make KL
such major deals because their cost
of capital is low. When asked which
parties had approached AIMCo, de
Bever said: “It’s been a variety of par-
ties, including some of the sovereign
funds.” He added: “We work with
people in other countries all the
same and we would be pleased to
work with the Chinese entity if that
made sense. It’s not that we liked or
disliked the nationality of the capi-
tal.” However, de Bever did not com-
pletely write off AIMCo’s
involvement in the potash sector
saga. “Nothing is ever dead, but lets
put it this way, it’s not the highest on
my hit parade right now,” he said.

Clayton Dubilier snaps up

stake in Univar from CVC
▲

PRIVATE EQUITY CVC Capital Partners took the

BY HARRY BANKS
PRIVATE equity firm Clayton,
Dubilier & Rice said yesterday it had
acquired a large minority interest in
Univar, a large chemical distribution
business, from the buyout firm CVC
Capital Partners.
Clayton Dubilier and CVC each
now own 42.5 per cent of Univar,
which is valued at about $4.2bn
(£2.7bn) including debt.
Rotterdam-based chemicals group
private in a €1.5bn deal three years
ago and is retaining a 42.5 per cent
stake in the company.
The company’s management, led
by its president and chief executive
John Zillmer, will keep a stake of
about five per cent. Goldman Sachs
and Parcom Capital will own the rest.
Univar will postpone an initial pub- WORLD’S BEST
lic offering for which CVC had LOW-COST AIRLINE
announced plans in June. Univar, 2009 & 2010
10

20

Clayton Dubilier paid $760m for its which had $7.2bn of revenues in
stake, according to people briefed on 2009, is the market leader in the US
the transaction. and Canada.
 12 News
Pension liabilities rise to more
than £1.2 trillion, says Aon
▲
PENSIONS
BY STEVE DINNEEN
PENSION liabilities for UK private sec-
tor final salary schemes have hit a
staggering £1.2 trillion, as market
conditions continue to deteriorate.
This represents a 20 per cent
increase since the landmark £1 tril-
lion figure was hit in August 2009.
According to Aon, which tracks
roughly half of the UK’s private sector
pension scheme liabilities, market
conditions are continuing a down-
ward spiral.
A spokesman said: “The main cause
of the increased value placed on the
schemes’ liability is the fall in the
yield available on government securi-
ties.”
He added: “The lower yields are a
product of the weak and slowing
world economy, very loose monetary
policy as credit conditions remain
tight, and the flight to safety effect
from abroad due to problems in the
Eurozone.
“The government bond yield is
used as a benchmark for assessing
pension scheme liabilities. The 20
year government gilt yield has
dropped to 3.76 per cent, a level at
which it has only been once before
during the last ten years.”
The top 200 pension schemes accu-
mulated liabilities of £608bn in
August and a deficit of £97bn, up
from £74bn at the end of July and
£78bn at the end of August 2009.
Recruitment in the UK remains sluggish
Hays benefits
after a rise in
Asian sector
▲
RECRUITMENT
BY STEVE DINNEEN
Recruiter Hays has seen a spike in
UK finance workers emigrating to top
jobs in Japan, City A.M. has learned.
The trend is part of a larger boom
in its Asian markets, which helped
offset declining revenues in its UK
operations. The region, which now
represents 65 per cent of group oper-
ating profit, reported a drop in net
fees of 18 per cent and a 30 per cent
decline in profit to £52m – a far
stronger performance than the group
as a whole.
A Hays spokesman told City A.M.
the spike is partly down to Japanese
firms looking to native English-speak-
ing workers who can help to quickly
internationalise their workforce,
with British financiers high up the
list.
Hays, which places people in white-
collar jobs, said it made a pretax prof-
it of £71.1m, compared with £151m
Make Hays while the sun shines in Asia
FEW industries fare worse in a reces-
sion than recruitment so Hays was
always going to have a tough time,
so it is not surprising that a drop in
profits of 53 per cent comes in well
ahead of most gloomy predictions.
Positive notes include a pick-up in
job churn, allowing the firm to gen-
erate fees without relying on job cre-
ation.
More interesting though is the
firm’s re-alignment as an interna-
tional entity. Around 58 per cent of
its business, and 83 per cent of its
operating profit, comes from out-
side of the UK and this looks set to
CITYA.M. 3 SEPTEMBER 2010
Picture: Micha Theiner/City A.M.
the previous year, but ahead of the
£67.5m consensus.
Turnover for the year was ten per
cent higher year-on-year at £2.7bn.
Operating profit before exceptional
items fell 53 per cent to £80.5m.
Chief executive Alistair Cox said:
“The results really are a story of two
halves. Our first half saw a very tough
market, one of the toughest ever wit-
nessed. We believe we turned the cor-
ner in December.”
Mike Allen, an analyst at Panmure
Gordon, said: “Parts of the business
have seen good recovery now, it looks
like we’ve seen the worst. The UK is
still a bit of a laggard, but the compa-
ny is well positioned in Asia.”
Chief executive Alistair
Cox says the firm
finally turned a corner
in December and is
now back on track
increase with new markets opening
up in Mexico and the US. In fact, 20
of the firm’s 28 international mar-
kets grew net fees by at least 10 per
cent in the fourth quarter, indicat-
ing its lack of reliance on the slug-
gish UK market is already paying
off. With net fees continuing to
grow, driven by 28 per cent growth
in Asia Pacific, this seems a good
time to climb tentatively back on
the recruitment wagon.
BOTTOMLINE
Analysis by Steve Dinneen
CITYA.M. 3 SEPTEMBER 2010
McBride warns of costs
after 38pc rise in profit
▲
CONSUMER
EUROPE’S biggest maker of own-
brand household and personal care
goods McBride said it faced rising raw
material costs and weak retail mar-
kets as it met forecasts with a 38 per
cent rise in annual profit.
The group said yesterday it was bet-
ter placed to cope with challenging
conditions than in the past, and that
recent trading was in line with expec-
tations. The firm has agreed to buy an
initial 70 per cent interest in
BEST OF THE BROKERS
ANALYSIS l Pernod Ricard
68 €
61.25
66
64
62
60
58
7 Jun 25 Jun 15 Jul 4 Aug
PERNOD RICARD
Standard & Poor’s rates the drinks firm a
“buy” with a target price of €72, adding
the company’s recent results proved its
theory of an improving trend in underlying
sales. The broker has raised its earnings
per share forecast for 2010 to reflect cur-
rency benefits, and said sales in emerging
markets are performing well.
Firestone meets mining targets at its
key BK11 diamond mine in Botswana
▲
MINING
FIRESTONE Diamonds said it reached
production plant capacity targets
ahead of schedule and recovered a
high quality diamond at its BK11
mine in Botswana, raising its expecta-
tions for the average value of output
at the mine.
It said early diamond recoveries
included a 13.74 carat stone, with
Spice set to give thumbs-up to £247m
offer from Cinven by end of September
▲
UTILITIES
BY OLIVER SHAH
UTILITIES services company Spice is
expected to recommend a £247m
offer from buyout house Cinven by
the end of the month after announc-
ing advanced talks yesterday.
Cinven has locked Spice into exclu-
sive discussions with a hefty break
fee, meaning the prospect of an
expensive bidding war with a mystery
third party has receded.
Spice has agreed not to seek out
Dermacol, a privately owned, Czech-
based manufacturer of skincare prod-
ucts for an expected £8m. It will buy
the rest in 2017 in an incentive deal
with the current management team.
The full-year dividend was lifted 13
per cent to 6.8p a share, while net
debt was cut £22.4m to £60m.
“Although weak retail markets and
raw material inflation will remain
challenging in the short term, our
balance sheet remains strong,”
McBride chief executive Chris Bull
said.
ANALYSIS l Intertek Group
1,750 p
1,700
1,687.00
2 Sep
2 Sep
1,650
1,600
1,550
1,500
1,450
1,400
24 Aug 7 Jun 25 Jun 15 Jul 4 Aug 24 Aug
INTERTEK
Morgan Stanley downgrades Intertek to
“underweight” citing its “full” valuation.
Believes earnings growth is unlikely to
return to its previous highs given the
muted economic recovery and believes its
current price to earnings ratio is unattrac-
tive. Suggests Aggreko, which it rates
“buy” as a better bet.
To appear in Best of the Brokers email your research to notes@cityam.com
value estimated at $5,000 (£3,428) per
carat. “This recovery is very significant
and confirms our expectation that
larger diamonds will be recovered at
BK11,” chief executive Philip Kenny
said. Firestone said it would “comfort-
ably exceed” the target production of
1.5m tonnes a year at the production
plant once the phase two commis-
sioning was completed in the fourth
quarter of 2010.Firestone, which had
any rival offers.
Cinven’s dealmakers and its advis-
ers are in the final stage of conduct-
ing due diligence on the
Yorkshire-based installer of water
meters, which counts British Airways
and Starbucks among its customers.
Although Cinven is keen to spend
more time scrutinising Spice’s con-
tracts, sources said it expects to make
a concrete offer before the exclusivity
period runs out on 27 September.
Chief executive Martin Towers and
finance director Oliver Lightowlers
Weir expands Indian business
▲
ENGINEERING
BY MARION DAKERS
ENGINEERING company Weir Group
expanded its presence in the Indian
market with the purchase of BDK
Engineering Industries yesterday.
BDK specialises in valve manufac-
turing for energy sectors, and is
based in the southern state of
Karnataka and generated £20.9m in
the year to March, with gross assets
of £16.7m.
The firm did not disclose the value
of the deal. Weir, which may join the
FTSE 100 in next week’s reshuffle,
already owns two other Indian min-
ANALYSIS l Vivendi
19.5 €
19
19.47
2 Sep
18.5
18
17.5
17
16.5
16
7 Jun 25 Jun 15 Jul 4 Aug 24 Aug
VIVENDI
Execution Noble rates the media giant a
“hold” with a fair value price of €20. The
broker says the main obstacle to upgrading
the shares is the lacklustre growth of cash-
flow, which is set to decline to €1.8bn this
year. However, it has raised its target price
from €19.50 to factor in lower prospective
liability in the firm’s US class action lawsuit.
agreed to buy rival Kopane Diamond
Developments for $71m to get its
hands on Kopane’s Liqhobong kim-
berlite project in July, said plans
developed in relation to the mine
were at an advanced stage.
But the company said a plant it was
building for Debswana Diamond at a
Botswana mine would be delayed to
allow Debswana to focus on certain
higher priority projects.
are tipped to stay at the helm if a
deal goes through.
Towers replaced major shareholder
Simon Rigby as boss following a prof-
it warning in December, and proceed-
ed to offload Spice’s loss-making gas
and telecoms businesses.
Shares in Spice closed up 5.9 per
cent at 67p as investors placed their
bets on a recommendation of the
70p-per-share offer, which is Cinven’s
third punt after two earlier attempts
were knocked back by the Spice
board.
ing and power station facilities.
The firm announced a 58 per cent
rise in pre-tax profit in the first half
of the year to £144m.
The purchase of BDK brings 600
new employees into the Glasgow-
based firm. The two other operations
in India employ 350 people.
Keith Cochrane, chief executive of
Weir Group, said: “This acquisition
further strengthens our emerging
market footprint.”
Cochrane added: “BDK’s range of
valves will enhance our global cus-
tomer offering and its Indian sales
network will provide an additional
route to market for many of our
Lehman bank
units set for
sale or closure
▲
BANKING
BY HARRY BANKS
LEHMAN Brothers Holdings, the
bankrupt US investment bank, needs
at least $550m (£357.4m) to keep its
two bank units going as it prepares to
sell them or shut them down in 18
months, court documents show.
Lehman asked a Federal bankrupt-
cy court judge in Manhattan yester-
day to approve the capital
commitments and sale plans, which
are part of Lehman’s blueprint for
unwinding its operations after filing
for bankruptcy protection nearly two
years ago.
The sale of the bank units could
bring in $1bn to $2bn, Lehman has
said, and are among the largest single
assets Lehman has left to sell.
In the filing with a US bankruptcy
court, Lehman said it was faced with
a choice of either allowing the units
to fail or injecting capital into their
balance sheets to recover significant
value for its creditors.
It asked the court to approve settle-
ments with the banks and wants to
be allowed to sell Aurora Bank FSB,
formerly known as Lehman Brothers
Bank, within 18 months or shut it
down if unable to find a buyer.
CHRISTOPHER
KEMBALL
HAWKPOINT
PARTNERS
BOUTIQUE investment banking outfit
Hawkpoint Partners has been at
Spice’s side as it has played hard-to-
get with Cinven.
Vice chairman Christopher Kemball
and managing director Chris Robinson
are Hawkpoint’s lead advisers on the
deal, helped by Serge Rissi. Kemball’s
CV includes stints at ING Barings,
where he was global head of emerging
markets corporate finance, Dillon
Read, where he was managing direc-
tor, and Kleinwort Benson. Robinson
News 13
existing products.”
Commenting on the transaction,
BDK’s founder Bharat Khimji said:
“My family has developed BDK over
the last 30 years into an internation-
ally recognised valves manufacturer.
“We are pleased to entrust the
growth of the business to an engi-
neering group of Weir’s global stand-
ing. My sons and I look forward to
continuing to play our roles in ensur-
ing a smooth transition.”
Weir employs more than 9,000
people around the world, working
across the mineral, oil and gas and
power sectors.
Shares closed flat at £12.71.
Aurora has struggled to meet capi-
tal requirements as regulators have
limited its ability to offer new certifi-
cates of deposit.
It also asked the court to approve a
settlement agreement that would
allow it to sell or dissolve its other
banking unit, Woodlands
Commercial Bank.
It faces similar restrictions from
regulators due to capital require-
ments.
Failure to resolve the capital issues
at the banks would result in estimat-
ed losses of between $1.2bn and
$3.6bn, Lehman said.
Lehman said that based on 30 June
2010, regulatory reports, the values of
its equity interest in Aurora and
Woodlands were at $677.6m and
$741.6m, respectively, for a combined
value of $1.42bn.
Lehman said it would transfer
$477m in cash to Aurora and would
need to put $75m into Woodlands.
It noted that since February 2009,
Lehman has taken steps to support
the banks’ capital levels, including
making a $200m cash contribution to
Woodlands.
It said there was an additional
$72m capital commitment that has
not yet been drawn upon.
joined Hawkpoint from Lloyds
Merchant Bank and previously worked
at Deloitte Ross Tomatsu.
On the opposing side for Cinven are
Charlie Batten of Investec and
Stephen Georgiadis of Altium Capital.
Batten joined Investec from Dresdner
Kleinwort after the German bank
decided to pull out of the UK corpo-
rate arena. Georgiadis has a wealth of
experience in cross-border merger &
acquisition projects and debt financ-
ings, having begun his career at Hill
Samuel & Co in 1983 before moving
to Apax Partners in 1985. He started
at Altium in 1990.
The wrangle between the two com-
panies is reaching a conclusion after
months of manoeuvring. Spice dis-
missed indicative offers of 56p per
share and between 62p and 65p per
share before relenting at 70p.
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CITYA.M. 3 SEPTEMBER 2010 News 15

Ofgem to probe energy firms Xstrata pushes ahead to

brought in following our probe to fur- “While many doorstep sales people
build $4.2bn Peru mine
▲

ENERGY
ther increase protection for cus- will do a good job, the pay and
BY HARRY BANKS tomers,” Andrew Wright, Ofgem’s rewards system continues to encour-
ENERGY regulator Ofgem is launch- senior partner of markets, said. age mis-selling, despite years of regula- shortages – Las Bambas has encoun-

ing an investigation into whether
four major gas and power suppliers
are mis-selling products to customers.
Ofgem’s probe will determine if
EDF Energy, RWE Npower, Scottish
and Southern Energy (SSE), and
Scottish Power are complying with
obligations brought in last October
that aimed to stop miss-selling of
energy contracts.
“Suppliers have existing obliga-
tions to detect and prevent mis-sell-
ing and new licence conditions were
Consumer protection groups wel-
comed the investigation and said cur-
rent practices still encouraged
utilities to mis-sell products.
“Some customers are still being
given misleading quotes and informa-
tion, which leaves them worse off
when they switch provider,” Audrey
Gallacher, head of energy at
Consumer Focus, said.
Ofgem has told affected customers
to phone its helpline number if they
feel they have been mis-sold energy.
tion and voluntary initiatives,” it said.
SSE said it believed it was comply-
ing with the new rules. “As a responsi-
ble company we take seriously all our
customers’ issues and would ask any
prospective or existing customer to
contact us if they are concerned, and
we will work with them to resolve the
situation,” the company said in a
statement.
Ofgem fined Npower £1.8m in 2008
for mis-selling, and London Electric
(now part of EDF Energy) £2m.
▲
MINING
ANGLO-SWISS miner Xstrata signed
a deal with Peru yesterday giving it
rights to start building its Las Bambas
copper mine, a $4.2bn project presi-
dent Alan Garcia called “the contract
of the century.”
Xstrata’s investment is about equal
to three per cent of Peru’s gross
domestic product and – unlike hun-
dreds of other projects in Peru that
have been delayed by local residents
worried about pollution or water
tered little resistance.
Xstrata Copper chief executive
Charlie Sartain has pushed ahead
with the mine even though Peru will
hold presidential elections in April
and June of next year. Polls indicate a
centrist or conservative candidate
will win and keep mainstream eco-
nomic policies in place. The company
says Las Bambas will be a world-class
mine with initial production of
400,000 tonnes a year of copper in
concentrate.

More traffic
but less profit
for Go-Ahead
guine about the impact of cuts on our
▲

TRANSPORT
BY MARION DAKERS
RAIL and bus group Go-Ahead posted
a 24 per cent fall in annual pre-tax
profit yesterday, as passenger num-
bers grew but margins fell.
The group’s profit of £88.7m, which
was slightly ahead of expectations,
was boosted by a 7.7 per cent increase
in revenues from bus ticket sales.
Go-Ahead bus and train services,
which include the Gatwick Express
and London Midland, provided more
business. Go Ahead chief executive
“Firstly, we have detailed contracts Keith Ludeman said the
that protect us, and the government firm will weather public
has showed no signs of wanting to sector spending cuts
renegotiate. Secondly, only around 15 Picture: Micha
per cent of our bus revenue comes Theiner/City A.M.
from subsidised concessionary fares.”
The company said maintaining its
dividend payments is a priority.
Go-Ahead plans to expand its yellow
school bus scheme in America next
ANALYST VIEWS: WHAT DO YOU THINK OF GO-AHEAD’S RESULTS?
By Marion Dakers
year, from 120 buses to as many as
300. JOHN LAWSON | INVESTEC PAUL HICKMAN | KBC PEEL HUNT

than 1bn journeys last year, the firm’s
busiest ever year.
Keith Ludeman, group chief execu-
tive, told City A.M. yesterday: “There
are pretty good reasons for the fall in
profit: reduced subsidies, reduced
quality incentive payments in London
and different targets from January.”
Meanwhile, it finalised the sale of
its Meteor airport parking business
yesterday, severing the last of its ties to
the aviation industry.
Shares closed 7.1 per cent up at
£11.65 yesterday.
ANALYSIS l Go-Ahead Group
“ “
What it has done in a challenging mar- I think generally the results have come
ket is encouraging. Its focus on maintaining the in ahead of expectations, and the debt level was
dividend is a very important sign of its confidence better than we had thought. The cash perform-
and commitment. Right now nobody knows what ance was much better. We are holding our num-
the government is going to do in order to cut bers for 2011, and rate shares a ‘hold’. But an

The firm said in its results state-
ment that it was concerned by the
weakness in the economy and the pos-
sibility of government cuts to travel
subsidies including the 60-plus bus
” ”
1,350
p 1,165.00 spending, but it seems for Go-Ahead it attractive dividend per share yield pro-
2 Sep might not be as bad as feared. vides support in uncertain times.
1,250
JONATHAN JACKSON | KILLIK & CO

“
pass at the October spending review.
1,150
However, Ludeman said the firm
was prepared to weather any cuts. We believe the company offers both recovery potential and outsourcing opportunities, combined with green pub-

”
“There’s a shadow over all UK indus- 1,050 lic transport credentials. The stock currently trades at an undemanding valuation of 7.8 times March 2011 earnings and we
tries that are in some way involved in
the government, but we are fairly san- 7 Jun 25 Jun 15 Jul 4 Aug 24 Aug
remain buyers. Today’s statement provides a good read-across for FirstGroup, our preferred operator in the sector.

Tullow buys six exploration licences in Mariner Energy’s oil rig

East Africa to repeat Ugandan oil find explodes in Gulf of Mexico
London-listed Tullow will become Group both farmed into Tanzanian The fire burned for several hours
▲

ENERGY
▲

ENERGY
BY HARRY BANKS
OIL explorer Tullow is buying 50 per
cent stakes in six exploration licences
in Kenya and Ethiopia as the hunt for
oil in East Africa gathers pace.
Tullow said yesterday the positions
it is acquiring are in the East African
Rift Basin, which has a similar geolo-
gy to Uganda’s Lake Albert Rift Basin
where it has discovered oil fields big
enough to turn Uganda into a top-50
oil producer.
the operator of five licences as part of
a deal with Canadian explorer Africa
Oil Corp, building on a farm-in agree-
ment on a sixth block in the same
region announced in August with
Canada’s Centric Energy.
Interest in East Africa, which is
much less explored than West Africa,
has been rising on the back of
Tullow’s Ugandan discovery and a gas
find by US firm Anadarko off the
coast of Mozambique in February.
Oil major Exxon Mobil and BG
blocks earlier this year, while explor-
er Afren in June bought a Canadian
company with 12 blocks in Ethiopia,
Kenya, Madagascar and the
Seychelles.
Under the terms of the deal, which
is subject to formal government
approvals, Tullow said it would reim-
burse pro-rata past costs in each block
and pay Africa Oil’s future costs up to
$23.75m (£15.4m).
Shares in Tullow closed down four
per cent at £11.85 yesterday.
AN OIL and gas platform operated by
Mariner Energy burst into flames yes-
terday and unleashed a mile-long oil
sheen into the Gulf of Mexico, just as
engineers on a nearby platform were
resolving the worst offshore oil spill
in history.
All 13 crew members were rescued
with no injuries from the ocean near
the burning platform and were taken
to another offshore platform, the US
Coast Guard said.
before being extinguished. A compa-
ny spokesman said it started on an
upper deck of the platform where liv-
ing quarters were located, and had
not been caused by a “blowout,” or
sudden release of oil and gas from a
well.
The rig had been shut down for
maintenance when the accident
occurred, US officials said, likely lim-
iting the damage as oil and gas from
the ocean floor would not continue
to feed the blaze.
 16 Consumer News CITYA.M. 3 SEPTEMBER 2010

DSG nets a World Cup boost TOTAL GROUP SALES

UP 3 PER CENT*

ONLINE SALES
UniEuro in Italy, Elkjop in Nordic consumers are spending. UP 12 PER CENT*
▲

RETAIL
BY JOHN DUNNE
DSG International said yesterday its
total group sales were up three per
cent after a boost from World Cup TV
purchases and the success of the iPad.
In an update on trading for the 12
weeks to 24 July the company, which
owns Currys and PC World, said its
online sales had surged by 12 per cent
compared with the same period last
year.
DSG said its store refit programme
was on track with 200 stores now
reformatted in Britain.
The retailer, which also owns
countries, and Kotsovolos in Greece,
is two years into a turnaround plan
focused on selling underperforming
businesses, cutting costs, revamping
stores, opening larger stores, and
improving product ranges and cus-
tomer service.
Meanwhile, the company is pin-
ning hopes on Christmas sales,
including 3D TVs, LED backlit TVs,
Apple’s iTouch and motion-sensor
gaming devices. Group chief execu-
tive John Browett said: “In terms of
the economic environment, we’re not
in the double-dip school, we don’t see
any evidence of that in the way that
“Our UK businesses performed par-
ticularly well, most notably with cus-
tomers responding to our strong 200 - THE NUMBER
World Cup promotion and the excel- OF STORE RE-FITS
lent product ranges on offer.” PLANNED FOR THE UK
DSG is facing a challenge from US
electricals market leader Best Buy
which is now operating in the UK. 100 - THE NUMBER OF
Best Buy, through its joint venture
with Carphone Warehouse opened
BEST BUY SHOPS
three electrical goods megastores this PLANNED TO CHALLENGE
year and said it could build a chain of DSG IN THE UK
up to 100 shops to challenge DSG.
Meanwhile, DSG will next week ask *12 WEEKS TO 24 JULY
shareholders to approve a name
change to Dixons Retail.

Pernod hit by
CARLUCCIO’S SOLD IN £90m DUBAI DEAL NEWS | IN BRIEF
Restaurant Group profit surges
The Restaurant Group – which owns
Garfunkel’s, Chiquito, Frankie &

weak trading Benny's – yesterday reported an upturn

in profit despite the ash cloud crisis
which hit its airport concessions.
It saw its pre-tax profit rise 13 per cent
to £24.6m in the six months to July.
The company raised its interim dividend

in Eurozone ten per cent to 1.54p per share on the

strength of the results. Chief executive
Andrew Page said: “The ash cloud hit us
hard, costing us around £500,000. The
World Cup also hit our numbers as
fewer people were going to cinemas and
that’s where we have restaurants as
negative trend, he said. well. However, we were helped by a
▲

LEISURE
BY JOHN DUNNE
FRENCH spirits giant Pernod Ricard
said it expected a good year as emerg-
ing markets fuelled sales rises – but
the upbeat statement failed to
impress investors yesterday.
Pernod posted net profit of €951m
(£791.6m) for the year to the end of
June, up one per cent on a year earli-
er. But shares in the world’s second-
largest spirits group after Diageo
closed down 2.4 per cent at €61.25 on
the Paris exchange after the results
missed analyst’ forecasts due to weak-
er-than-expected trading in Europe.
The company, whose brands
include Glenlivet whisky and anise
drink Ricard does not give a detailed
forecast for the year ahead until a
shareholders meeting in November.
However, chief executive Pierre
Pringuet predicted a surge in sales in
emerging markets, particularly in
Asia. He added: “We are having a
good start to the year … the world is
doing better.”
Pringuet also said there were
“encouraging” signs in Europe but
austerity measures to rein in govern-
ment spending were taking their toll
in Greece while Spain was still on a
He added the UK is also part of that
downward trend as the hangover
from recession takes its toll.
But the company’s Martell cognac
and Chivas Regal scotch have proved
popular in China and Latin America.
Pernod also owns the Mumm
champagne brand, which was the
worst performer out of its top 14
labels. The Paris-based company has
completed its €1bn asset disposal
plan and was “well on track” to
achieve its goal to generate free cash
flow from operations of €3bn over
the three years to 2010-11.
Last week rival Diageo forecast
slightly higher profits growth this year
driven by developing markets but said
the economic recovery was variable.
ANALYSIS l Pernod Ricard
68 €
61.25
66 2 Sep
64
62
60
7 Jun 25 Jun 15 Jul 4 Aug 24 Aug
great performance at our London
restaurants with tourists and day-trip-
pers from across the UK using us.”
He said the company would be opening
25 more restaurants, including several in
London over the coming year.
Zara launches online stores
Zara yesterday launched its first online
stores. The clothes chain will sell gar-
ments at identical prices to stores,
charging £3.95 for home delivery.
Ordered items can be picked up free of
charge at shops. The label's owner
Inditex, the world’s biggest clothing
retailer by sales, has launched Zara
online in Britain, Spain, Portugal, France,
Italy and Germany. The retailer, who
also owns Massimo Dutti Bershka, has
plans to go online in America, Japan and
South Korea next year. Despite a deep
global recession, online retail sales have
boomed, particulary among young con-
sumers. Online retail sales are projected
to grow in Western Europe to £93bn in
2014 from £68bn in 2009, according to
consultants Forrester. Zara chief execu-
ITALIAN restaurant chain Carluccio’s yesterday agreed to a £90.3m takeover by Middle tive Pablo Isla said: "Internet and the
Eastern retail giant Landmark Group. Dubai-headquartered Landmark has offered world of social networking are indispen-
142p a share in cash for Carluccio's, which has 47 restaurants and food shops in the UK. sable tools and extraordinary channels
Landmark plans to keep on Carluccio’s existing management team, including chief exec- for communication, and fit perfectly
utive Simon Kossoff and chairman Stephen Gee. Picture: REX with our group’s philosophy.”

CITY VIEWS: HAS APPLE SPREAD ITSELF TOO THIN BY MOVING INTO TV PRODUCTS? Interviews by Marion Dakers

BARTOSZ WOJTOWICZ | NOMURA JIMMY SMALES | COMMONWEALTH BANK OF AUSTRALIA UZMA EVENING | TENET GROUP
“I’m perfectly happy with Apple expand- “I would never queue outside a shop “I’m quite open to buying Apple prod-
ing, and think they get it right a lot of the for an Apple product. I don’t under- ucts, if they have a use. I only need a
time. I would love to have an iPhone, but stand this need to be the first to get phone to make and receive calls, and
my mobile phone network won’t offer your hands on a product, and Apple is I only need a TV for one purpose. My
them for another three months, one of the worst for this. I consider two teenagers would probably be
so I’m stuck with my old using a computer as work, and I much more keen than I am, though,
phone.” don’t like the idea of using it for as they’re a bit more tuned in to
fun such as watching TV.” new technology.”

Conning Asset Management, Paul Stapley and Roy Jenkinson. The City Views vox pop on the $33bn Facebook valuation (26 August) included a contribution said to be by Paul Stapley together with a photo-
graph said to be of him. In fact the photograph was of Mr Stapley’s colleague Roy Jenkinson. Further neither Mr Stapley nor Mr Roy Jenkinson in fact contributed to the vox pop and neither has any connection
with Conning Asset Management as stated in the piece. We apologise to all for the confusion.
 18 News
Cold winter boosts Gazprom
14 per cent to 956.8bn roubles
▲
ENERGY
(£20.2bn), compared with a Reuters
BY HARRY BANKS poll estimate of 946.6bn, as domestic
RUSSIA’S Gazprom, the world’s sales jumped 47 per cent.
biggest gas producer, beat forecasts Export sales, mostly to Europe,
for first-quarter sales and profit, as a Gazprom’s biggest gas export market,
surge in domestic revenues offset a declined by 22 per cent to 286.22bn
sharp drop in prices to European cus- roubles, as a 36 per cent drop in
tomers. prices outweighed a rise in sales vol-
Gazprom supplies a quarter of the umes of 37 per cent.
European Union’s gas needs, but eco- Gazprom said it did not expect any
nomic weakness has slashed demand, further contract revisions, but aban-
and some customers there have doned its previous projections for an
secured lower prices on long-term increase in European sales to 145bn
contracts, citing cheaper fuel on spot cubic metres this year from 142 bcm
markets. in 2009.
Gazprom’s total revenue increased “We expect gas sales [volumes] to
Avis raises its
bid in Dollar
Thrifty battle
Avis also said that it will further
▲
AUTOMOTIVE
increase its offer if Hertz and Dollar
BY HARRY BANKS
Thrifty reduce the breakup fees they
CAR RENTAL company Avis Budget agreed to under their deal.
Group raised its bid for Dollar Thrifty Low-cost brands like Dollar
Automotive Group three per cent to Thrifty – one of the few major car
$1.35bn (£877m), as it looks to wrest rental brands to post a profit in
the company from rival Hertz Global 2009 – have become increasingly
Holdings. important in the car rental industry
Avis raised the cash portion of its as consumers try to save money in
bid by $1.50 to $40.75 a share on yes- tight economic times.
terday. The stock portion of the deal Hertz’s offer is currently worth
remains unchanged at 0.6543 Avis $38.83 a share, or about $1.11bn.
share for each Dollar share, bringing Both offers are below Dollar Thrifty
the total offer up to $47.44 as of yes- shares, which were trading around
terday morning. $47.97 on the New York Stock
The Avis bid is now 22 per cent Exchange yesterday.
higher than the deal Dollar Thrifty Hertz this week raised doubts
agreed to with Hertz in April. Dollar about Avis’ ability to get a deal passed
Thrifty rebuffed Avis’ previous bid by antitrust regulators.
last month, even though it was the
higher offer, on worries that Avis ANALYSIS l Dollar Thrifty Automotive
would not be able to close the deal for $ 48.05
52 2 Sep
antitrust reasons.
The company also said then that 52
Avis’ unwillingness to offer a reverse
breakup fee was problematic. 48
Nevertheless, Avis refused to include
a reverse termination fee in yester- 44
day’s bid for the budget brand, argu-
ing that the possible payment has 40
nothing to do with certainty of clos-
ing. 7 Jun 25 Jun 15 Jul 4 Aug 24 Aug
CITY MOVES | WHO’S SWITCHING JOBS
Signia Wealth
The wealth manager has hired Mark Elliott as
managing director. Elliott is joining the family-
run firm from Barclays Wealth, where he estab-
lished the financial institutions group and
professional practices business in 2007. Before
this he worked for private bank Coutts as
group head for the executive team and as
group head for the in-pats team, which focused
on UK residents with an overseas domicile. This
is the firm’s 19th hire since launching in March.
TT Electronics Michael Baunton CBE as an independ-
The electronics firm has appointed ent non-executive director. He has
To appear in CITYMOVES please email your career
SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT
updates and pictures to citymoves@cityam.com
Europe in 2010 to be flat compared to
2009,” chief financial officer Andrei
Kruglov said.
Gazprom’s free cash flow for the
quarter hit a record 233bn roubles,
nearly triple the amount for all of
2009, which put it in a more comfort-
able position to manage its 977bn
roubles net debt, which it said it
would continue to cut after having
cut it by nearly 30 per cent in the
three months.
Earnings before interests, taxes,
depreciation and amortisation rose
to 407bn roubles from 337bn roubles
a year ago and 334bn roubles in the
last quarter of 2009.
AIG’s float of Asian unit looms as files
application with Hong Kong Exchange
▲
INSURANCE
AMERICAN International Group (AIG)
filed an application yesterday with
the Hong Kong Stock Exchange to list
its Asian life insurance unit, AIA
Group.
The application brings bailed-out
AIG a step closer to AIA’s initial public
offering (IPO), which is expected to
raise about $15bn (£9.7bn).
Edited by Marion Dakers
worked within manufacturing for 40
years, and held senior executive roles
at Caterpillar, Perkins Engines and
Tennecco. He is currently chairman of
the Society of Motor Manufacturers,
and was awarded a CBE in 2004 for
services to engineering.
Capco
The business and technology consul-
tancy has hired Ian Holden to its bank-
ing practice. He joins Mark Jenkinson
and Peter Lewis in the leadership team.
Holden was previously a partner at
BearingPoint, where he led the finan-
cial services practice in the UK. He has
Statoil plans spin-off of
its fuel station business
▲
OIL
NORWEGIAN oil company Statoil is
readying a fourth-quarter flotation of
its international chain of gas stations,
joining the industry trend to focus on
more lucrative upstream operations.
The retail division’s listing on the
Oslo stock exchange will test the
appetite for new share offerings in
Norway along with the expected IPO
of insurance group Gjensidige due in
late 2010.
Analyst Trond Omdal at Arctic
AIG chief executive Robert Benmosche
(left) is divesting units to help repay the
US Treasury for its bailout. Mark Wilson
(right), who has been AIA’s chief execu-
tive since 2009, will stay with the firm
until the end of the year to see the float
through. Picture: REUTERS
The move is also a key part of AIG’s
restructuring.
The Hong Kong Exchange will
review the application, also known as
the A1 filing, in the coming weeks.
AIG, which is nearly 80 per cent
owned by the US government, is dis-
posing of assets to repay taxpayers
who committed $182.3bn to prop up
the insurer during the financial crisis.
The AIA IPO, whose debut is expect-
in association with
also held senior roles at Deloitte
Consulting and Price Waterhouse
Management Consulting. He has over
15 years’ experience in delivering man-
agement consultancy projects.
JP Morgan
The banking group’s European Smaller
Companies Trust has appointed
Carolan Dobson as an independent
non-executive director with effect
from 1 September. She is chairman of
QinetiQ Pension Fund, a trustee of
Avon Pension Fund, a non-executive
director of Shires Smaller Companies
and member of the Competition
CITYA.M. 3 SEPTEMBER 2010
Securities said he had estimated a
potential market capitalisation for
the unit of 10-12bn Norwegian
crowns, but added that it could fetch
more based on recent strong earn-
ings. “We will move forward with
preparing for the listing and then
we’ll see whether we get the right
value,” Statoil chief executive Helge
Lund said. Lund declined to comment
on the potential value the IPO. He
said Statoil expected to keep more
than 50 per cent of the division dur-
ing the bourse listing.
ed by November, comes after AIG
tried to unsuccessfully sell the busi-
ness earlier this year to Prudential for
$35.5bn.
Citigroup, Goldman Sachs Group,
Morgan Stanley, Deutsche Bank are
the global coordinators for the AIA
IPO. The filing also contained a valua-
tion range for AIA, which sources said
was very wide and only so that the
bourse can assess potential listing fees.
Commission and chairman of the
Finance and Regulation Group. Dobson
has previously been head of UK equi-
ties at Abbey and a main board direc-
tor of Murray Johnstone.
Chariot Oil and Gas
The oil and gas explorer has appointed
Adonis Pouroulis to non-executive
chairman with immediate effect.
Pouroulis, who co-founded the compa-
ny, was a non-executive director. He
replaces Peter Kidney, who has
stepped down from his role as chair-
man and from the board to pursue
other interests.
+44 (0)20 7557 7245
morganmckinley.com
 Markets&Investment 19

LONDON’S TOP 250 Trade these shares from £1.50 with Interactive Investor - www.iii.co.uk
Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low Company Name Closing Price Price Change 52wk High 52wk low
(p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p) (p)
3i . . . . . . . . . . . . . . . . . . . . . . . .266.10 –3.90 312.00 246.90 Compass . . . . . . . . . . . . . . . . . .534.00 –6.50 574.50 325.10 Jardine Lloyd Thompson. . . . . . .575.50* +4.50 604.50 420.70 Sage . . . . . . . . . . . . . . . . . . . . . .249.40 — 260.50 208.20
3i Infrastructure . . . . . . . . . . . . . 113.90 — 115.00 90.75 Cookson . . . . . . . . . . . . . . . . . . .454.80 +11.70 616.00 347.60 Johnson Matthey . . . . . . . . . . .1672.00 +19.00 1814.00 1302.00 Sainsbury(J) . . . . . . . . . . . . . . . .370.30 +0.50 373.00 307.60
A.B. Foods . . . . . . . . . . . . . . . .1072.00 +3.00 1096.00 785.50 Croda Intl . . . . . . . . . . . . . . . . .1340.00* +32.00 1361.00 616.00 JPMorgan Emerg Mkts . . . . . . . .547.00 +4.00 549.00 397.00 Schroders . . . . . . . . . . . . . . . . .1400.00* +16.00 1450.00 1029.00
Aberdeen Asset Man . . . . . . . . . .141.50 +1.00 155.60 111.00 Daily Mail ‘A’ . . . . . . . . . . . . . . . .475.90 +14.20 539.00 376.40 Kazakhmys . . . . . . . . . . . . . . . .1247.00 +11.00 1634.00 901.50 Schroders N/V. . . . . . . . . . . . . . 1138.00* +11.00 1185.00 864.00
Admiral. . . . . . . . . . . . . . . . . . .1549.00 –13.00 1586.00 1003.00 Dana Petroleum . . . . . . . . . . . .1808.00 –4.00 1817.00 968.50 Kesa Electricals . . . . . . . . . . . . .134.00 +1.80 162.00 98.45 Scot. & Sthrn Energy. . . . . . . . . 1155.00* –6.00 1206.00 357.50
Aegis . . . . . . . . . . . . . . . . . . . . . 115.90 +1.40 137.30 100.20 Davis Service . . . . . . . . . . . . . . .378.70 –2.70 442.30 356.00 .LQJÀVKHU . . . . . . . . . . . . . . . . . .215.70 +3.30 255.00 196.50
Afren . . . . . . . . . . . . . . . . . . . . .106.00 +1.30 111.00 60.50 De La Rue . . . . . . . . . . . . . . . . . .705.50 +2.50 1021.00 666.50 Ladbrokes . . . . . . . . . . . . . . . . .135.70* +1.80 174.29 114.60 Scottish Mortgage. . . . . . . . . . . .588.00 +6.00 623.50 441.00
African Barr Gold . . . . . . . . . . . . 611.50* –6.00 685.00 520.50 Debenhams . . . . . . . . . . . . . . . . .61.05 +0.75 90.00 51.95 Lancashire Hldgs . . . . . . . . . . . .533.50* — 545.00 416.70 SEGRO . . . . . . . . . . . . . . . . . . . .275.10 +1.20 403.10 244.00
Aggreko . . . . . . . . . . . . . . . . . .1436.00 –2.00 1639.00 634.50 Derwent London . . . . . . . . . . . .1430.00 –11.00 1490.00 1077.00 Land Securities . . . . . . . . . . . . . .640.00 –1.00 743.50 543.00 Serco . . . . . . . . . . . . . . . . . . . . .605.50* +11.00 656.50 451.20
Alliance Trust . . . . . . . . . . . . . . .319.50 +0.10 352.70 286.40 Dexion Absolute . . . . . . . . . . . . .140.00 +1.00 148.00 121.10 Legal & General . . . . . . . . . . . . . .95.20* +0.85 97.00 66.90 Severn Trent . . . . . . . . . . . . . . .1331.00 +13.00 1358.00 939.50
AMEC . . . . . . . . . . . . . . . . . . . . .946.00 +7.50 958.50 720.50 Diageo . . . . . . . . . . . . . . . . . . .1092.00 –5.00 1176.00 930.50 Lloyds Banking Gp . . . . . . . . . . . .72.12 +0.64 77.61 45.30 Shaftesbury . . . . . . . . . . . . . . . .427.90 +1.80 433.40 341.70
Amlin . . . . . . . . . . . . . . . . . . . . .419.40 +3.90 437.60 350.80 Dimension Data . . . . . . . . . . . . .120.50 — 125.50 56.50 Logica . . . . . . . . . . . . . . . . . . . . 114.90 +1.00 149.10 100.80 Shire. . . . . . . . . . . . . . . . . . . . .1447.00 +10.00 1526.00 999.00
Anglo American . . . . . . . . . . . .2465.00* +8.50 3015.50 1846.50 Domino’s Pizza . . . . . . . . . . . . . .450.30 +16.20 450.30 232.30 London Stk Exchange . . . . . . . . .700.00 +17.00 949.50 540.50 Smith & Nephew . . . . . . . . . . . . .544.00 — 700.50 512.50
Antofagasta . . . . . . . . . . . . . . .1082.00 –12.00 1103.00 699.50 Drax . . . . . . . . . . . . . . . . . . . . . .408.30 +2.10 496.50 321.50 Lonmin . . . . . . . . . . . . . . . . . . .1577.00 –30.00 2198.00 1336.00 Smith(Ds) . . . . . . . . . . . . . . . . . .140.70* +1.30 150.20 80.00
Aquarius Platinum . . . . . . . . . . .308.30 +12.50 490.00 211.50 DSG Intl . . . . . . . . . . . . . . . . . . . .25.19 –0.17 39.75 23.11 Man . . . . . . . . . . . . . . . . . . . . . .229.00 +12.50 373.60 199.60 Smiths . . . . . . . . . . . . . . . . . . . 1190.00 +12.00 1242.00 797.00
ARM Holdings . . . . . . . . . . . . . . .360.00* –14.10 381.00 123.30 Dunelm . . . . . . . . . . . . . . . . . . . .396.50 –0.30 438.40 257.00 Marks & Spencer. . . . . . . . . . . . .354.90 +1.10 412.70 321.90 SOCO Intl . . . . . . . . . . . . . . . . . .476.60 –7.60 510.00 380.60
Ashmore . . . . . . . . . . . . . . . . . . .301.50 +1.50 311.20 211.60 Easyjet . . . . . . . . . . . . . . . . . . . .369.50 +10.20 499.90 308.50 Meggitt . . . . . . . . . . . . . . . . . . . .272.50* +2.00 331.00 202.20 Spectris . . . . . . . . . . . . . . . . . . .923.00 +4.00 949.00 653.00
Astrazeneca . . . . . . . . . . . . . . .3280.00* –5.00 3376.00 2668.00 Edinburgh Inv Tst . . . . . . . . . . . .412.40 –1.20 414.90 327.40 Melrose . . . . . . . . . . . . . . . . . . .266.40 –3.50 272.80 148.20
Atkins(Ws) . . . . . . . . . . . . . . . . .690.00* +2.00 801.00 532.50 Electrocomponents . . . . . . . . . . .221.60 +3.90 245.00 142.90 Mercantile IT . . . . . . . . . . . . . . . .955.00 +5.00 1002.00 822.50 Spirax-Sarco Eng . . . . . . . . . . .1600.00 — 1617.00 947.00
Autonomy Corp . . . . . . . . . . . .1716.00 +85.00 2012.00 1278.00 EnQuest . . . . . . . . . . . . . . . . . . . 116.80 –0.70 125.90 87.35 Michael Page Intl. . . . . . . . . . . . .424.60 +7.40 461.50 309.90 Spirent Comms . . . . . . . . . . . . . .131.70* +1.30 135.90 78.35
Aveva . . . . . . . . . . . . . . . . . . . .1465.00 — 1482.00 805.00 Essar Energy . . . . . . . . . . . . . . .415.00 –5.00 475.90 358.50 Micro Focus . . . . . . . . . . . . . . . .308.20* +7.30 550.00 272.20 Sports Direct Intl . . . . . . . . . . . . .109.10 +2.10 134.00 82.30
Aviva . . . . . . . . . . . . . . . . . . . . .395.20 +6.90 474.00 290.20 Eurasian Nat Res . . . . . . . . . . . .879.50* –5.50 1276.00 776.00 Millen & Copthorne . . . . . . . . . . .503.00* +6.00 514.50 321.40 SSL Intl . . . . . . . . . . . . . . . . . . . 1161.00* +1.00 1190.00 536.00
Babcock International . . . . . . . . .526.00 +5.50 660.50 489.00 Euromoney Inst Inv . . . . . . . . . . .584.00 –5.00 630.00 258.00 Misys . . . . . . . . . . . . . . . . . . . . .285.30 +3.90 286.10 173.90 St James’s Place . . . . . . . . . . . . .259.00* — 296.90 203.40
BAE Systems . . . . . . . . . . . . . . .313.30 +11.30 389.90 288.10 Experian . . . . . . . . . . . . . . . . . . .644.00 –0.50 664.50 489.00 Mitchells & Butlers . . . . . . . . . . .304.50 +5.90 343.90 228.30 Stagecoach. . . . . . . . . . . . . . . . .183.50 +6.40 204.90 126.20
Balfour Beatty . . . . . . . . . . . . . . .245.30 +0.70 328.85 228.60 Ferrexpo . . . . . . . . . . . . . . . . . . .306.00* +4.50 396.20 138.00 MITIE . . . . . . . . . . . . . . . . . . . . .205.20 +3.40 281.70 187.80 Standard Chartered . . . . . . . . . .1836.00* +16.00 1927.00 1351.00
Barclays . . . . . . . . . . . . . . . . . . .312.00* –3.50 394.25 253.40 FirstGroup . . . . . . . . . . . . . . . . .364.40 +4.80 448.80 331.20 Mondi . . . . . . . . . . . . . . . . . . . . .498.90* +12.80 503.00 278.00 Standard Life . . . . . . . . . . . . . . .213.00* +2.10 237.00 170.00
Barratt Development . . . . . . . . . .102.00 +1.20 193.31 89.10 Foreign & Col Inv Tst. . . . . . . . . .276.00* +0.20 297.20 232.70 Monks Inv Tst . . . . . . . . . . . . . . .303.50 — 321.20 242.10 SuperGrp . . . . . . . . . . . . . . . . .1008.00 +27.00 1100.00 499.00
BBA Aviation . . . . . . . . . . . . . . .183.00* +1.90 220.00 136.60 Forth Ports . . . . . . . . . . . . . . . .1358.00 +17.00 1425.00 1020.00 Morrison Wm . . . . . . . . . . . . . . .291.00 +0.10 306.30 255.00 TalkTalk . . . . . . . . . . . . . . . . . . .129.70 –0.30 147.10 106.60
Bellway. . . . . . . . . . . . . . . . . . . .550.50 +13.00 927.50 510.00 Fresnillo . . . . . . . . . . . . . . . . . .1097.00* –22.00 1139.00 583.00 Murray Intl Tst . . . . . . . . . . . . . . .851.00 +7.00 893.50 667.50 Talvivaara Mining . . . . . . . . . . . .426.50 +17.50 501.50 341.40
Berkeley . . . . . . . . . . . . . . . . . . .831.00 –8.50 960.50 735.00 G4S . . . . . . . . . . . . . . . . . . . . . .257.50 –1.20 285.70 217.70 National Express. . . . . . . . . . . . .234.60 +2.60 258.60 155.86 Tate & Lyle . . . . . . . . . . . . . . . . .432.70 +1.30 509.00 388.00
BG . . . . . . . . . . . . . . . . . . . . . .1084.00* +6.00 1248.00 966.90 Genesis Emerging Mkts Fd . . . . .484.00 +4.00 486.30 370.00 National Grid . . . . . . . . . . . . . . .547.00 –2.00 607.65 474.80
BHP Billiton . . . . . . . . . . . . . . .1901.00 –2.00 2346.00 1527.50 GKN . . . . . . . . . . . . . . . . . . . . . .151.90* +0.90 155.00 100.20 Next . . . . . . . . . . . . . . . . . . . . .2040.00 +12.00 2360.00 1613.00 Taylor Wimpey . . . . . . . . . . . . . . .28.46 +1.41 51.80 24.29
BlackRock Mining . . . . . . . . . . . .589.00 –5.50 654.50 420.00 GlaxoSmithKline . . . . . . . . . . . .1261.50* +2.50 1347.00 1088.00 Northumbrian Water . . . . . . . . . .338.40* +3.10 341.30 225.20 Telecity . . . . . . . . . . . . . . . . . . . .484.40 +2.40 490.00 311.30
Bluecrest Allblue GBP . . . . . . . . .167.50 — 169.00 137.60 Great Portland Estates . . . . . . . .327.30 –1.70 333.60 236.60 Old Mutual . . . . . . . . . . . . . . . . .134.10 +2.40 135.60 86.85 Templeton Emrg Mkts . . . . . . . . .557.00 +1.50 598.00 398.00
Booker . . . . . . . . . . . . . . . . . . . . .44.50 +0.20 49.50 34.75 Greene King . . . . . . . . . . . . . . . .425.00* +12.00 504.00 372.50 Pace . . . . . . . . . . . . . . . . . . . . . .207.70 +0.80 243.80 145.00 Tesco . . . . . . . . . . . . . . . . . . . . .412.20 –3.70 454.90 366.80
BP . . . . . . . . . . . . . . . . . . . . . . .392.60 +3.85 658.20 296.00 Halfords . . . . . . . . . . . . . . . . . . .502.50 +4.60 562.50 324.00 Partygaming . . . . . . . . . . . . . . . .271.90 +2.80 339.70 205.80 Thomas Cook . . . . . . . . . . . . . . .192.40 +4.10 277.20 172.30
Brit Insurance . . . . . . . . . . . . . . .975.00 +13.50 1017.00 709.00 Halma . . . . . . . . . . . . . . . . . . . . .284.00 +5.70 298.70 193.40 Pearson . . . . . . . . . . . . . . . . . . .996.50* –3.50 1069.00 715.50 Tomkins . . . . . . . . . . . . . . . . . . .323.50 +0.20 325.70 155.00
British Airways . . . . . . . . . . . . . .221.60 +1.60 255.80 172.40 Hammerson . . . . . . . . . . . . . . . .368.60* +0.70 460.30 332.20 Pennon . . . . . . . . . . . . . . . . . . . .589.50* +5.00 613.00 440.40 Travis Perkins . . . . . . . . . . . . . . .798.50 +4.50 915.00 647.50
British Amer. Tob . . . . . . . . . . .2300.00* +9.00 2335.50 1832.00 Hargreaves Lansdown . . . . . . . .390.00 — 408.40 241.00 Persimmon . . . . . . . . . . . . . . . . .391.80 +13.70 534.50 335.90 TUI Travel . . . . . . . . . . . . . . . . . .221.20* +4.80 313.90 189.20
British Empire Tst . . . . . . . . . . . .444.00 +0.30 467.90 338.50 Hays . . . . . . . . . . . . . . . . . . . . . . .97.55 +3.55 119.00 82.50 Petrofac . . . . . . . . . . . . . . . . . .1420.00 +7.00 1446.00 862.00 Tullett Prebon . . . . . . . . . . . . . . .383.40 +9.00 436.20 261.20
British Land . . . . . . . . . . . . . . . .467.00 –2.90 531.00 416.00 Henderson . . . . . . . . . . . . . . . . .132.30* +2.10 157.80 112.10 Petropavlovsk . . . . . . . . . . . . . . 1121.00 +10.00 1370.00 701.50 Tullow Oil . . . . . . . . . . . . . . . . . 1185.00 –49.00 1375.00 979.50
Britvic. . . . . . . . . . . . . . . . . . . . .471.40 –5.10 518.00 324.80 Heritage Oil. . . . . . . . . . . . . . . . .317.90 –2.80 585.00 298.20 Premier Farnell . . . . . . . . . . . . . .236.60 +2.60 252.60 140.60 UK Commercial Prop. . . . . . . . . . .77.75 +1.35 84.90 69.10
Brown(N.) . . . . . . . . . . . . . . . . . .225.60 –0.30 284.30 204.80 Hikma Pharma . . . . . . . . . . . . . .802.50 –2.00 807.00 440.00 Premier Oil . . . . . . . . . . . . . . . .1562.00 –2.00 1610.00 984.00 Ultra Electronics . . . . . . . . . . . .1727.00* +1.00 1740.00 1198.00
BSkyB . . . . . . . . . . . . . . . . . . . .710.50 –1.50 732.00 521.00 Hiscox . . . . . . . . . . . . . . . . . . . .365.60* –0.40 371.10 299.60 Provident Financial . . . . . . . . . . .843.50 –4.00 986.00 795.00
BT . . . . . . . . . . . . . . . . . . . . . . .136.10* –0.60 151.00 108.40 Hochschild Mining . . . . . . . . . . .362.50* –9.10 375.00 220.00 Prudential . . . . . . . . . . . . . . . . . .584.00* +4.00 665.00 475.70 Unilever . . . . . . . . . . . . . . . . . .1746.00* –11.00 2024.00 1610.00
Bunzl . . . . . . . . . . . . . . . . . . . . .746.00 +9.00 784.50 570.00 Home Retail . . . . . . . . . . . . . . . .221.80 –2.00 336.50 208.50 PZ Cussons . . . . . . . . . . . . . . . .329.10* +1.90 373.20 210.50 United Utilities . . . . . . . . . . . . . .587.50 +5.50 620.00 429.00
Burberry . . . . . . . . . . . . . . . . . . .859.50 +4.50 891.50 457.70 Homeserve . . . . . . . . . . . . . . . . .474.20 +1.40 488.20 435.40 Qinetiq . . . . . . . . . . . . . . . . . . . . 113.30 +1.90 179.10 103.50 Utd Business Media . . . . . . . . . .582.50* +12.00 583.00 408.30
Cable & Wire Comms . . . . . . . . . .56.90 –0.55 150.00 53.00 HSBC Hldgs . . . . . . . . . . . . . . . .652.00* — 766.80 595.20 Randgold Resources. . . . . . . . .5975.00 –35.00 6600.00 3472.00 Vedanta Resources . . . . . . . . . . 2011.00 +41.00 2967.00 1616.00
Cable & Wire Wwide . . . . . . . . . . .69.80 –2.15 94.80 60.05 Hunting . . . . . . . . . . . . . . . . . . .637.00 +19.00 659.50 429.10 Reckitt Benckiser . . . . . . . . . . .3307.00* –11.00 3667.00 2864.00 Victrex . . . . . . . . . . . . . . . . . . . 1100.00 –20.00 1320.00 700.50
Cairn Energy. . . . . . . . . . . . . . . .455.60 –16.70 497.60 306.80 ICAP . . . . . . . . . . . . . . . . . . . . . .428.90 +3.40 478.30 291.70 Reed Elsevier . . . . . . . . . . . . . . .542.50 +4.00 566.00 435.40 Vodafone . . . . . . . . . . . . . . . . . .157.30 –0.70 160.00 126.50
Caledonia Invs . . . . . . . . . . . . .1586.00 +5.00 1759.00 1496.00 IG . . . . . . . . . . . . . . . . . . . . . . . .523.00 –7.00 532.00 291.00 Regus . . . . . . . . . . . . . . . . . . . . . .73.75 +3.15 125.50 64.05 Weir . . . . . . . . . . . . . . . . . . . . .1271.00 +4.00 1293.00 599.00
Capita . . . . . . . . . . . . . . . . . . . . .728.00* –5.50 829.50 661.00 Imagination Tech Gp . . . . . . . . . .356.10 +7.10 362.00 149.75 Renishaw . . . . . . . . . . . . . . . . . .866.00 –9.00 915.50 479.00 WH Smith . . . . . . . . . . . . . . . . . .413.50 –0.40 551.00 392.20
Capital & Counties . . . . . . . . . . .124.50 +4.60 125.40 99.60 IMI . . . . . . . . . . . . . . . . . . . . . . .728.50 +3.00 786.00 410.00 Rentokil Initial . . . . . . . . . . . . . . . .97.25 +0.50 140.20 91.15 Whitbread . . . . . . . . . . . . . . . . .1515.00 +54.00 1645.00 996.00
Capital Shopping Centres . . . . . .344.50 +2.50 580.00 300.10 Imperial Tobacco. . . . . . . . . . . .1836.00 +6.00 2159.00 1706.00 Resolution . . . . . . . . . . . . . . . . .252.60 +1.70 264.80 220.10 William Hill . . . . . . . . . . . . . . . . .175.10 +6.50 217.80 160.50
Carillion . . . . . . . . . . . . . . . . . . .308.10 –1.90 361.90 263.90 Inchcape. . . . . . . . . . . . . . . . . . .278.30 +5.80 347.00 235.00 Rexam . . . . . . . . . . . . . . . . . . . .316.90 +4.50 348.80 252.80 Witan Inv Tst . . . . . . . . . . . . . . . .442.20* –3.00 487.00 380.00
Carnival . . . . . . . . . . . . . . . . . .2264.00* +68.00 2937.00 1804.00 Informa . . . . . . . . . . . . . . . . . . . .401.30* +4.30 439.40 263.30 Rightmove . . . . . . . . . . . . . . . . .692.00 +18.50 729.00 456.90
Catlin . . . . . . . . . . . . . . . . . . . . .335.10* +0.80 394.60 303.20 Inmarsat . . . . . . . . . . . . . . . . . . .684.00 –16.50 831.00 503.00 Rio Tinto . . . . . . . . . . . . . . . . . .3483.00* –18.00 4104.00 2262.50 Wolseley . . . . . . . . . . . . . . . . . .1357.00 +21.00 1742.00 1155.00
Centamin Egypt . . . . . . . . . . . . .178.60 –2.30 182.90 80.00 Intercontl Hotels . . . . . . . . . . . .1046.00* +3.00 1244.00 721.00 RIT Capital Partners . . . . . . . . . 1136.00 +6.00 1215.00 927.00 Wood Group (John). . . . . . . . . . .373.60* –4.20 411.70 277.00
Centrica . . . . . . . . . . . . . . . . . . .325.80 –5.60 333.10 236.30 Intermediate Capital . . . . . . . . . .284.60 +0.30 332.00 233.50 Rolls Royce . . . . . . . . . . . . . . . .569.50 +0.50 631.50 434.50 WPP . . . . . . . . . . . . . . . . . . . . . .675.50 — 744.00 489.00
Charter Intl . . . . . . . . . . . . . . . . .648.50* +7.50 855.50 560.50 Intertek . . . . . . . . . . . . . . . . . . .1687.00 –12.00 1770.00 1136.00 Rotork . . . . . . . . . . . . . . . . . . .1618.00* +4.00 1625.00 939.50 Xstrata . . . . . . . . . . . . . . . . . . .1088.00 –0.50 1344.50 765.50
Chemring . . . . . . . . . . . . . . . . .2700.00 +73.00 3711.00 2066.00 Intl Personal Fin . . . . . . . . . . . . .249.00 +0.20 283.00 134.75 Royal Bank Of Scot . . . . . . . . . . . .46.15 +0.35 58.95 28.25 LONDON TOP 250 BY MARKET CAPITALISATION
Chloride Group . . . . . . . . . . . . . .374.60 –0.40 390.50 138.60 Intl Power . . . . . . . . . . . . . . . . . .387.60 +9.10 388.80 248.20 Royal Dutch Shell A . . . . . . . . .1789.00* +10.00 2068.50 1621.00
Close Bros . . . . . . . . . . . . . . . . .669.50 –0.50 806.50 657.00 Invensys . . . . . . . . . . . . . . . . . . .241.80 +3.60 350.30 224.90 Royal Dutch Shell B . . . . . . . . .1724.00* +3.50 1997.50 1550.00 * Ex-Dividend † Suspended
Cobham . . . . . . . . . . . . . . . . . . .218.60 +3.40 278.60 201.00 Investec . . . . . . . . . . . . . . . . . . .495.00 +3.70 565.00 411.50 RSA Insurance . . . . . . . . . . . . . .125.20* +0.90 142.00 114.10
COLT Group . . . . . . . . . . . . . . . . 114.80 –4.20 144.20 107.70 ITV . . . . . . . . . . . . . . . . . . . . . . . .59.10 +0.05 71.75 41.04 SABMiller . . . . . . . . . . . . . . . . .1915.50 –11.50 2090.00 1394.00 www.interactivedata.com

FTSE treads water ahead of Wall St up as fears

key US non-farm payroll data of double-dip recede
war before we get to the real action “underweight” from “equal-weight”. still way below last year’s daily aver-
THELONDON on Friday, when we get the US non-
farm payrolls,” he said.
Telecoms firm Cable & Wireless
Worldwide and satellite business THENEW YORK age of 9.65bn. Volume is typically
light in the days just ahead of the

REPORT Data from across the Atlantic yes-

terday showed pending sales of previ-
ously owned US homes rebounded
Inmarsat fell three and 2.4 per cent,
respectively, paring the previous ses-
sion’s gains, having been linked with
REPORT Labor Day holiday weekend.
The housing and labor markets
have long been considered two of the
unexpectedly in July and new claims M&A whispers on Wednesday. biggest headwinds the economic

B U
RITAIN’S top share index closed for jobless benefits fell last week. “It’s worth pointing out that the S stocks rose on low volume yes- recovery faces. Today’s payrolls report
a touch higher yesterday after a Among other blue chip risers, fact that we haven’t seen a flood of terday as data showed improve- is expected to show about 100,000
lacklustre day of trading follow- defence contractor BAE Systems opportunistic profit-taking after yes- ment in housing and the job jobs were lost in August.
ing a powerful advance the day climbed 3.7 per cent after the firm terday’s big move higher ... shows a market a day ahead of the criti- Data from the National Association
before, with investors keeping their received a $629m contract to upgrade degree of confidence,” Ben Critchley, cal monthly payrolls figures. of Realtors showed pending home
powder dry ahead of US jobs data. 1,700 Caiman MRAP vehicles. sales trader at IG Index, said. Investors built on Wednesday’s resales rose unexpectedly in July and
Autonomy was among the top On the downside, miners which He said: “Eurozone retail sales fig- sharp advance as indicators provided a separate report showed new claims
blue-chip risers, up 5.2 per cent with had been among the best performers ures may also have the potential to the latest reason for optimism the for unemployment insurance fell for
traders citing press reports that the on Wednesday retreated. add some fresh direction early in economy could avoid another down- a second straight week.
software company could find itself at Lonmin and African Barrick Gold tomorrow’s session, but apart from turn. But the nascent rally could be The S&P 500’s moving average con-
the centre of a takeover battle fell 1.9 and one per cent respectively that it’s going to be all eyes on the derailed if today’s jobs data disap- vergence-divergence or MACD gener-
between Microsoft and Oracle. as Citigroup cut both their ratings to labour situation across the Atlantic. points investors. ated a ‘buy’ signal after having been a
The FTSE 100 closed up 4.63 points “hold” from “buy”, arguing precious Earnings news is set to be thin and Chipmaker shares rose for a second ‘sell’ since 11 August. The last time
or 0.1 per cent at 5,371.04 in low vol- commodities are set for a subdued the risk that gains could yet be erod- day running and the PHLX semicon- the signal turned bullish was 9 July,
ume, with the index trading 73 per second half of 2010. ed cannot be discounted either.” ductor index gained 2.1 per cent to foreshadowing an advance that
cent of its 90-day average. Hochschild Mining shed 2.5 per close above its 14-day moving average ended a month later and made July
The index closed up 2.7 per cent at cent as the same broker downgraded ANALYSIS l FTSE for the first time since late July. the best month for the index in a
5,366.41 on Wednesday, its strongest its rating to “sell” from “hold”. 5,371.04 The Dow Jones industrial average year.
daily performance in almost a UK Chipmaker ARM Holdings was a
5,500 2 Sep added 50.63 points, or 0.49 per cent, The Morgan Stanley Retail index
5,400
month, buoyed by encouraging man- big faller, down 3.8 per cent, with to 10,320.10. The Standard & Poor’s rose 2.4 per cent and Nordstrom
ufacturing data from the US and JPMorgan Cazenove arguing that US 5,300 500 Index rose 9.81 points, or 0.91 per jumped 8.1 per cent to $32.76 as US
China, along with M&A speculation. peer Intel’s purchase of Infineon’s 5,200 cent, to 1,090.10. The Nasdaq retailers posted better-than-expected
“It was always going to be a slightly wireless unit is neutral rather than 5,100 Composite Index gained 23.17 points, sales in August.
subdued day after the very strong rise positive for ARM. 5,000 or 1.06 per cent, to close at 2,200.01. Advancing stocks outnumbered
that we had yesterday,” Jim Wood- Testing equipment firm Intertek 4,900 About 6.6bn shares traded on the declining ones on the NYSE by a ratio
Smith, head of research at Williams Group dropped 0.7 per cent, with 4,800 New York Stock Exchange, the Nasdaq of about seven to three, while on the
de Broe, said. traders citing a Morgan Stanley note 4,700 and the American Stock Exchange, Nasdaq, about eight stocks rose for
“To an extent today is the phoney in which the broker cut its rating to 24 May 14 Jun 2 Jul 22 Jul 11 Aug about average for the past month, but every five that fell.
20 Investment | Personal Finance CITYA.M. 3 SEPTEMBER 2010

Pack a tax plan if you want

a retirement on the beach
I
F YOU are tempted to spend your their decision – the NatWest
Retiring overseas has pension golden years in the sun and escape over-
crowded, polluted London, you are not
International Personal Banking Quality
of Life Report, published last week,
implications and hidden costs. alone. Emigration from the UK reached
a record high in 2008 and that was before
reveals that 71 per cent believe they
made the right decision in retiring over-
Avoid the pitfalls with careful the introduction of a 50 per cent higher tax
rate and the impending austerity measures.
seas and 58 per cent say their experi-
ences have been better than expected.
forethought, writes Jessica Mead But planning is essential if you want to live
this particular retirement dream.
Still, while careful planning lacks the
romance of a spontaneous decision, it
Few expat pensioners appear to regret will ensure that your idyll won’t be
troubled by the complex web of tax
directives, residency guidelines and cur-
rency fluctuations. Relocating your
entire life inevitably causes its fair share
of paperwork but minimising the red
tape and avoiding the pitfalls will make
your retirement overseas a calmer,
more pleasant experience.
Leaving the UK tax system is now
much harder than it used to be, says
Ronnie Ludwig, partner in the private
wealth team at accountants Saffery
Champness.
Prior to last April, it was simply a case
of making sure you were not in the UK
for a certain number of days – 90 days
per year over four years or no more than
186 days in any one tax year. This has
since been tightened up – you may have
to cut your ties with the UK: no
property, no UK credit cards, no UK
mobile phone as well as removing your-
self from the electoral register. property in the UK before you move,
“If you don’t tick enough of these then you won’t pay tax on it. If you sell
Put your offshore banking in boxes, then HMRC can deem you resi-
dent in the UK and you can end up
it after you have moved, the proceeds
may count towards your taxable
the hands of the expat experts being taxed twice. This is an absolute
nightmare for older people who may
income. Equally, depending on your Isa
provider, you may be restricted in your
have little experience of the tax system choice of investments if you are
13°N – Rizal, Philippines and then panic,” Ludwig adds. resident abroad, warns BestInvest’s
Chris Mills, tax director at Grant Adrian Lowcock.
Thornton, agrees that you should make
sure you are clear about your tax status REORGANISE YOUR FINANCES
9JGP[QWoTGNKXKPICPFYQTMKPICDTQCF[QWPGGFCDCPMVJCVWPFGTUVCPFU[QWTWPKSWG and know what you are getting yourself. Expat pensioners would do well to reor-
circumstances and has the expertise to help you manage, grow and protect your savings He points out that countries can vary ganise their financial affairs to take
substantially in their tax treatment. advantage of and adapt to the new
and wealth. You can trust HSBC Bank International in Jersey to offer you just that. For example, if you sell your principal regime under which they will be living.
r /WNVKEWTTGPE[QHHUJQTGUCXKPIUCPFKPXGUVOGPVUVQJGNR[QWCEJKGXG[QWT
ƂPCPEKCNCURKTCVKQPU
FOCUS ON | LIFE ABROAD IN WESTERN EUROPE
r 2QVGPVKCNVCZUCXKPIUFGRGPFKPIQP[QWTEKTEWOUVCPEGU
Western Europe is the destination of choice Spain – this can expose you to tax – then you
r 4GNCVKQPUJKRCPFYGCNVJOCPCIGTUYJQCTGURGEKCNKUVUKPVJGKTƂGNFOCP[
for retirees heading overseas thanks to its have the same healthcare rights as a native.
of whom are expats proximity to the UK, its warmer climate, and The Centre for Future Studies’ Frank Shaw
r #TCPIGQHUGTXKEGUVJCVOCMGOQXKPICPFNKXKPICDTQCFCUGCU[CURQUUKDNG its perceived slower pace of life. says that the language barrier can be a big
e.g. account set up even before you arrive in your new country* and personal Many choose not to retire to a designated issue for retirees in the state healthcare sys-
travel security assistance expat community, according to NatWest tem – you may wish to go private but this will
research, and 87 per cent own their home out- be expensive. In France, you are entitled to
#PFYKVJ'ZRCV'ZRNQTGTVJGYQTNFoUNCTIGUVGZRCVUWTXG[PQYKPKVUTFEQPUGEWVKXG
right. French healthcare, which is world-renowned,
year, we have a unique insight into expat life across the globe. For many pensioners, healthcare will be an but you must be in receipt of a UK state pen-
6QDGPGƂVHTQOQWTGZRCVGZRGTVKUGQRGPCPQHHUJQTGCEEQWPVVQFC[ increasingly important cost. Luckily, the state sion and an E121 form to avoid paying contri-
healthcare systems of most European coun- butions. This will cover you up to a certain
Call +44 (0) 1534 616079
tries are open to British expats. amount; top-up insurance is recommended to
Visit www.offshore.hsbc.com/am If you are registered with the local authority in pay for the rest. Jessica Mead

FOCUS ON | OFFSHORE BANKING

No matter where in the world you are retiring internet and phone banking in English, inter-
to, offshore banking could be for you. Far from national money transfers, a choice of curren-
being the exclusive preserve of financial whiz cies and the possibility, depending on your
kids and the mega-rich basic offshore pack- country of residence, of interest paid gross of
*Available to HSBC Premier customers. HSBC Premier is available in 45 countries worldwide. Financial eligibility criteria applies.
HSBC Bank International is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation, ages and financial advice are available to any- tax. Packages get more luxurious and tailored
Investment and Fund Services Businesses and licensed by the Guernsey Financial Services Commission for Banking, Collective
Investment Schemes and Investment Business. Licensed by the Isle of Man Financial Supervision Commission. Deposits and
one retiring with as little as £5,000 in cash. for more complex needs the larger your
KPXGUVOGPVUOCFGYKVJQWTQHƂEGUKPVJG%JCPPGN+UNCPFUCPFVJG+UNGQH/CPCTGPQVRTQVGEVGFD[VJGTWNGUOCFGWPFGTVJG7-oU
(KPCPEKCN5GTXKEGUCPF/CTMGVU#EVHQTVJGRTQVGEVKQPQHTGVCKNENKGPVUKPENWFKPIVJG7-(KPCPEKCN5GTXKEGU%QORGPUCVKQP5EJGOG
Well-known international banks such as deposit.
CPFVJG7-oU(KPCPEKCN1ODWFUOCP5GTXKEG*QYGXGT*5$%$CPM+PVGTPCVKQPCN.KOKVGFKUCOGODGTQHVJG&GRQUKVQTU%QORGPUCVKQP Barclays Wealth, HSBC and Abbey For those more liquid, £50,000 can buy you
Scheme as set out in the Banking (Depositors Compensation) (Jersey) Regulations 2009. HSBC Bank International Limited is a
RCTVKEKRCPV KP VJG )WGTPUG[ $CPMKPI &GRQUKV %QORGPUCVKQP 5EJGOG6JG 5EJGOG QHHGTU RTQVGEVKQP HQT nSWCNKH[KPI FGRQUKVUo WR VQ International can set up offshore accounts in the comfort of a Relationship Manager
UWDLGEVVQEGTVCKPNKOKVCVKQPU6JGOCZKOWOVQVCNCOQWPVQHEQORGPUCVKQPKUECRRGFCVKPCP[ƂXG[GCTRGTKQF
&GRQUKVUOCFGYKVJQWTQHƂEGUKPVJG+UNGQH/CPCTGRTQVGEVGFD[VJG+UNGQH/CP%QORGPUCVKQPQH&GRQUKVQTU4GIWNCVKQPU(QT secure, stable, tax efficient countries. For a Service with Barclays Wealth. These man-
further information on these Schemes, please visit the Important Information section on our website www.offshore.hsbc.com/1/2/
KORQTVCPVKPHQTOCVKQP%QRKGUQHNCVGUVCWFKVGFCEEQWPVUCTGCXCKNCDNGQPTGSWGUV#RRTQXGFHQTKUUWGKPVJG7-D[*5$%$CPMRNE6Q monthly fee of £25 and a minimum deposit of agers offer specialist advice on sophisticated
help us to continually improve our service, and in the interest of security, we may monitor and/or record your communications with us.
© HSBC Bank International Limited 2010. All Rights Reserved. MC8316/SJ/2206397/AC19238
£5,000, HSBC International can offer you a international investment, savings and mort-
basic offshore package, including 24 hour gage circumstances. Donata Huggins
CITYA.M. 3 SEPTEMBER 2010
This may leave you paying less tax but
even if you end up paying more you
should still consider whether it is worth
it for the better quality of life and
perhaps for more efficient healthcare
services.
For retirees who have spent their work-
ing lives in the UK, their main source of
income is likely to be their pensions. In
most cases, you should make sure you
arrange for your pension to be paid gross
and you will then be taxed accordingly in
your country of residence.
ASIA’S MOON
TO BRIGHTEN
WINE ORDERS
GARY BOOM
MD & FOUNDER OF FINE WINE
MERCHANT BORDEAUX INDEX
A
S THE wine market reluctantly drags
itself back to work after the long
summer break we approach what
has become one of the defining peri-
ods of the trading year, the run-up to Asia’s
mid-autumn festival of the moon, which falls
on 22 September this year.
This celebration not only provides a wel-
come boost to trade but also gives a real
insight into both the shape and level of
demand over coming months. In other
CORKING
CORK
CORK
:[Y
KING
ING INVESTMENT
IIN
NVE
NVEST
STTM
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ANALYSIS l Number of UK expat pensioners by country
This regular international wiring of
funds incurs two costs: the transfer cost 300,000
and the currency fluctuation. Through
firms such as Moneycorp pensioners can 250,000
arrange a regular payment, often costing
200,000
only £4 per transfer, and are able to fix
the exchange rate for a minimum of six 150,000
months if they think it could move
against them. 100,000
Retirement overseas is well worth con-
sidering, but it pays to take off those rose- 50,000
tinted spectacles and seek specialist 0
advice. Australia
words, it is a key indicator of confidence.
This year carries more than its fair share
of uncertainties, but the early order-book
suggests strong reasons to be positive. Yes,
there are clear risks: first, the continuing
worries about weak data coming out of the
US. This, coupled with the nascent efforts of
the Chinese authorities to curtail credit
availability, provides a serious challenge to
macro confidence in this early phase of
global economic recovery. Furthermore, the
ongoing concerns about the health of the
Eurozone economy do little to boost senti-
ment in the markets. And for a discre-
tionary good such as fine wine, confidence
is a crucial intangible.
Further reason for caution can be found
in the hangover from a riotously successful
2009 en primeur campaign. As mentioned
in last month’s column, this vintage generat-
ed an enthusiasm that, at times, bordered
on the febrile, and, as is so often the case,
judgement was the victim as buyers
splurged more of their annual wine budgets
than was entirely wise.
All things being equal, such excess will
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Investment | Personal Finance
Life can be a beach
for expat pensioners if
they plan ahead.
Picture: GETTY
Canada France New Zealand Portugal Spain
mean cutbacks through the back end of the
year. This excessive exuberance applies less
to the Asian market, as their en primeur
participation was largely restricted to a
handful of first growths and leading right-
bankers.
However, here too there is reason for
sobriety as prices for the first growths have
settled at some 15-20 per cent off the
peaks achieved in the heady days of July.
Speculators with recently scorched fingers
will presumably act with a little more cau-
tion whilst the pain remains fresh.
ROUSING CRESCENDO
Despite the risks, over in the bull corner
there is disbelief that confidence is even in
question. Indeed, the dominant sentiment is
one of optimism as a combination of low
inventories and new market players as well
as strong momentum in the first half of the
year – The Bordeaux Index (BI) stands
some 21 per cent up on the year to date and
shows growth in 16 of the last 17 months –
suggest that this year will close with a rous-
ing crescendo.
[ ^ V  ^ H `[
`  [ Y H K PUNZ
P U N  Z J YL
Y L L U
U 
21
PERSONAL
FINANCE NEWS
BY DONATA HUGGINS
LANDLORDS LACKING IN CONFIDENCE
Confidence among landlords has dipped for
the first time in almost two years. The lat-
est National Landlord Association
Optimism Index shows a drop from 51 to
47 points between the first and second
quarter. The drop is believed to have been
caused by falling house prices and cuts to
housing benefits, announced in the emer-
gency budget. Despite this, landlords are
bullish about the future, 54 per cent rating
their prospects for the next three months
as “good” or “very good”. They predict that
people will hold off buying due to the
uncertainty in the housing market at the
moment and continue to rent.
BUNGALOWS RESISTANT TO DOWNTURN
House prices might be falling nationally, but
bungalow owners will be cheered by the
fact that the average price of a bungalow
has risen by more than any other property
type over the past year. According to the
Bank of Scotland, owners of bungalows
have seen the value of their property rise
by 8 per cent this year, rising from
£166,018 last year to £178,701, exceeding
the UK average. Detached properties come
a close second, adding 7 per cent to their
value. Flats are still the most popular pur-
chase choice this year, but their value has
stayed flat. Terraced and semi-detached
houses have fared badly, suffering a 5 per
cent and 1 per cent drop respectively.
TD WATERHOUSE AND AJ BELL OFFER SIPP
Britain’s largest execution-only broker TD
Waterhouse has teamed up with UK Sipp
administrator AJ Bell to launch an
Source: Centre for Future Studies
improved online Sipp product to meet client
demand. The Sipp has no initial set-up fees
and provides a function to trade across 15
international exchanges and the ability to
trade and hold cash in multiple currencies.
But investors should remember that trad-
ing on foreign exchanges leaves them open
to currency fluctuations. The administration
fee is charged twice a year at 0.25 per cent
of the Sipp plus VAT. Customers will also
get access to the TD Waterhouse Funds
Supermarket, which offers over 1,300 dis-
USA counted funds.
So what does the early order-book show?
Firstly, and most importantly it tells us that
Asia, and China in particular, is consolidat-
ing its position as the dominant player on
the block. BI is not unusual in seeing the
percentage of sales to Asia doubling to over
50 per cent during the last couple of years.
This is a trend set to continue.
Secondly, the consumption and gift-giving
habits of Chinese buyers remain in force
with a handful of brands dominating.
Despite the heady prices they now com-
mand, Lafite remains the headline story
with demand roughly equal to the sum of
the other four first growths.
Looking a little further along, there is a
strong seam of support for the cheaper end
of the first-growth spectrum and some
interest in leading Burgundy. In short, a
very familiar path in a slowly maturing mar-
ket.
While caution is appropriate, the wine
market suggests that to view the world
solely through the gloom of the US and the
Eurozone would be wrong. The bright Asian
moon presages good times ahead.
      c  ^ ^ ^ I V Y K L H \ _ P U K L _  J V T
 Living
22 CITYA.M. 3 SEPTEMBER 2010

| Property of the Month

Gordon House overlooks Richmond Lock and

costs a mere snip at £15m.

The period mansion with its own chapel

Those after something redolent of aristocratic glory have its own chapel, this one beautifully
renovated with classical archways and
should look at this riverside palace, says Timothy Barber columns and a glass skylight roof – have
the potential for converting into a swim-
ming pool area if the new occupier fancies.
No matter how fabulous its interiors, a
and a lake and fountain. There’s even an
underground car park secreted away
beneath the gardens. And then, of course,
there’s the view. That long stretch of river
includes Richmond Lock, with the won-
derful iron footbridge – another slice of

I
N London, homes with good river
views are much sought-after and hard
to come by – once you have one,
you’re not likely to relinquish it.
Homes with 80 metres of uninterrupted
Thames frontage, however – not to men-
tion 10 bedrooms and a ballroom – present
a very, very rare opportunity for anyone
with the readies to stump up. The asking
price for Gordon House, which overlooks
Richmond Lock, is £15m – hardly a snip,
but for that you get a truly splendid stately
home just a short walk over the river from
Richmond (technically the house is in
Twickenham). It’s the kind of place for
which the words “well appointed” were
pretty much invented.
As its sturdy red-brick construction sug-
gests, Gordon House dates from the mid-
dle of the Victorian era. It’s now Grade II
listed, and has been substantially restored
by commercial developers Octagon. The
interiors reflect an atmosphere of grand
Victorian ambition – witness the marble
pillars and gleaming chandeliers of the
reception hall. There’s a rather fabulous
wooden staircase there too, curling
upwards to a landing with a balustrade –
all classically elegant. Other original fea-
tures include an impressive marble fire-
place, some ornate plaster work and
cornices that come from the hand of
Robert Adam.
There are 10 bedrooms, the same num-
ber of bathrooms, and five reception
rooms, including that magnificent ball-
room. Both that and the chapel – but of
course, every distinguished mansion must
mansion without picturesque grounds is majestic Victoriana – arching over it.
only half a mansion. Lucky, then, that Beyond, Old Deer Park stretches away to
Gordon House includes beautifully Kew Gardens. Now that’s what you call a
restored gardens, with formal hedging river view.
NEED TO KNOW | RICHMOND-ON-THAMES AND ITS ENVIRONS
l Richmond is located 15 miles (particularly the Deer Park, with lThere are some excellent food
south west of central London, and is 2,500 acres of hills), historic houses and drink options in the area. The
the end stop on one branch of the and riverside prettiness. The Thames Petersham Nurseries is an award-
District Line. It’s 15 minutes by fast links Kew Gardens, Richmond and winning venue serving garden-
train to Waterloo. Hampton Court Palace. fresh food (Skye Gyngell, the chef,
has become a TV celebrity).
l Once the stomping ground of roy- l Rugby fans are near Twickenham The Glasshouse and La Buvette
alty, Richmond is considered stadium, the home of English rugby, are also at the very top of
London’s most attractive borough, while gardeners have Kew Gardens London’s gastronomic ladder, serv-
and is famous for its royal parks nearby. ing first-rate modern European.

PROPERTY NEWS
BY ZOE STRIMPEL

SAVILLS RESIDENTIAL AUCTION
Put your hat in the ring for a bargain at Savills’ next
residential auction, which will be held on Monday 13
September at the Royal Garden Hotel. One property of
interest is Lot 138, 27 Derby Street in Colne, Lancashire
(pictured) – a two-bedroom terrace house in need of
modernisation going with a guide price of £35,000. Lot
105 is 20 The Marina in Deal, Kent, a seafront end-of-
terrace house. Perfect for a holiday let. RGH, 2-24 High
Street Kensington, W8 at 10AM.
UNIQUE CHANCE TO BUILD IN NEW FOREST
A rare opportunity to build from scratch in a naturalist’s
paradise in the New Forest. Planning permission has
been granted to erect “a new, contemporary country
house”. Sitting on 13 acres, of which 11.5 are ancient
woodland so special it is designated a Countryside
Heritage Site, the property is set away from the road
and offers secluded beauty with a host of birds and ani-
mals living in the wood. Graham Lodge, Linwood,
Ringwood. £975,000, Carter Jonas, 01962 842742
SMOKERS FACE HOUSING CRISIS
New research shows that smokers are facing a crisis in
housing as growing intolerance rules them out for flat-
shares. A survey conducted by Easyroomate.co.uk says
that just 7 per cent of landlords allow smoking in their
properties and 38 per cent say they will evict lodgers
for smoking indoors. It says that 370,000 smokers are
stuck in non-smoking flat-shares. With property prices
on the up, smokers are stuggling to find the cash to buy
their own house in which to smoke.
DETACHED HOUSE PRICES SOAR
The average price of a detached family home has risen
by £91 per day over the past year, more than any other
property type, according to new research by Halifax.
The average price of a detached property rose by 13
per cent from £266,000 in the second quarter of 2009
to £299,295 year-on-year. Prices for all other property
types rose by 8-9 per cent over the same period. Suren
Thiru, of Halifax, says: “The changing pattern of homes
bought reflects the increasing trend of living alone.”
A VIEW GREENWICH CREEKSIDE

TO THRILL!

Actual view from Adagio Apartments

Greenwich Means Time…

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

0800 883 8625 or (out of hours) 0800 032 0077 Selling Agents:

www.telfordhomes.plc.uk
*Prices correct at the time of going to press. Computer generated image of Adagio Apartments and smaller images depict typical Telford Homes showhome interiors.
 Q SPACE
LUXURY
QUEEN MARY’S GATE
South Woodford

STYLE
E18

Photograph depicts Queen Mary’s Gate water gardens.

Queen Mary’s Gate has it all.

Premium specification three bedroom apartments from £375,000*
at one of London’s most sensational developments.
High-gloss cappuccino kitchens by Urban Myth, Smeg/Siemens integrated
appliances, Roca bathroom suites, solid wood veneer/ceramic tiling/carpet flooring.
1,100 sq ft of luxury living space, private balcony and secured basement parking.
With 24 hour concierge service, over 3/4 of an acre of landscaped gardens and the
luxury of being less than 15 minutes walk from a Central line tube station.
At Queen Mary’s Gate you really can have it all!
Typical kitchen style.

SPACIOUS APARTMENTS • 24HR CONCIERGE • LANDSCAPED GARDENS • BASEMENT PARKING

0800 883 8607 or (out of hours) 0800 032 0077

www.telfordhomes.plc.uk
Sales Centre open Mon - Sat 10am - 6pm • Sun 11am - 5pm
*Prices correct at time of going to press.
CITYA.M. 3 SEPTEMBER 2010
FOCUS ON: POTTERS BAR
NEED TO KNOW | POTTERS BAR
Commuting: Potters Bar rail sta-
tion is 20 minutes from Kings
Cross by train and 34 minutes
from Moorgate. It is also very
well located at Junction 24 of the
M25 and the southern end of the
M1.
Schools: Cuffley School and The
Wroxham School are both good
primaries. Dame Alice Owen’s
school is one of the top 60 state
secondary schools in the country,
but it is large with more than
1,400 pupils.
Crime: Generally safer than the
national average.
CURRENT MORTGAGE DEALS BY JESSICA MEAD
Lender
HSBC
NatWest
First Direct
ING Direct
The Co-operative Bank
Santander
Principality BS
ING Direct
Post Office
Mansfield BS
Norwich & Peterborough
NORTHAW ROAD
WEST, NORTHAW,
Price: £299,950
Not perhaps your typi-
cal first home, but this
two-bed country cot-
tage offers sufficient
living space and a pret-
ty back garden. Grade
II-listed, the cottage
has been recently mod-
ernised by the current
owners so the property
doesn’t require further
decoration or works.
The village has two gas-
tro pubs.
Contact: Savills on 020
8447 4400,
www.savills.co.uk
HILL CREST
Price: £540,000
An ideal family proper-
ty, this four-bedroom
property has plenty of
storage space and a
double garage. Set over
three floors, there is a
conservatory and a fam-
ily room as well as sepa-
rate living and dining
rooms. The property is
close to the high street
and other local shops
and supermarkets.
Contact: Winkworth on
020 8447 5656,
www.winkworth.co.uk
Restaurants & Pubs: The Two
Brewers in Northaw is a cosy vil-
lage pub with a roaring open fire
in winter, a sunny beer garden
for the summer months and
serves good food. What more
could you want from a pub? In
terms of restaurants, the town
itself is a little lacking but
Hardens recommends a number
in nearby St Albans.
Parks & Leisure: For the sporty
type, there’s plenty on offer
including a scuba diving club and
a golf course. North of the town,
commuter belt suburbia turns
into woods and fields.
Fixed/Flexible Rate Until standard rate
(per cent) (per cent)
Flexible 2.19 Term
Flexible 2.19 To Nov 2012
Flexible 2.29 Term
Flexible 2.29 2 years
Flexible 2.49 To Nov 2013
Fixed 2.75 To Nov 2012
Fixed 2.79 To Sep 2012
Fixed 2.79 To Nov 2012
Fixed 2.85 To Sep 2012
Fixed 3.49 3 years
Fixed 3.64 3 years
Living | The Knowledge 25
INTERIORS
Q&A
BY JESSICA MEAD
Andrew Dunning
HEAD DESIGNER AT
APD INTERIORS
Dear Andrew, having returned
Q.
from a stay in a gorgeous hotel
suite, I realise my own bedroom is
rather dated. How do I create a more lux-
urious look?
A.
First, how do you actually use your
bedroom? Is it simply a place to sleep
or does it also provide a sanctuary
from a busy household? Do you also want to
use it for watching television or for working?
The two most important things then to
consider in a bedroom are the storage
requirement and the bed. Storage in a bed-
room is often overlooked but it makes the dif-
ference between a room you sleep in and a
room you enjoy. So review your storage
requirements – do you need more hanging
space or are your drawers overflowing? Fitted
furniture allows you to make use of all areas
of an oddly-shaped bedroom but don’t try to
fit out the whole room – you may feel boxed
in. Freestanding items give you more flexibili-
ty, especially if you plan to move at some
point or want to shift the furniture around to
refresh the look.
If space allows always try to choose a king-
size bed – it will be more comfortable. One
trick to make it appear more upmarket is to
use a super king-size duvet and bed linen; the
extra fabric will appear more luxurious – and
there won’t be fights over the duvet!
To give your room the luxurious touch do
try to include a full-length mirror – if you have
space, go for a floor-standing mirror but if
you are short of space, go for a mirror on the
back of the door.
The ultimate luxury is a large armchair or
chaise longue in your bedroom, especially if
you have good views. Do remember to consid-
er lighting for this area if you plan to spend
evenings reading here.
Different types of lighting will help to cre-
ate a good mood in the bedroom. A central
THE RIDGEWAY, pendant light provides general lighting but
CUFFLEY, don’t choose a boring shade. A large chande-
Price: £3.95m lier can add interest here and don’t be afraid
to go large when choosing this fitting.
This imposing property
was built in 2007 and The window treatments for the bedroom
offers around 6,000 sq will also add another layer to the finished
look. Heavy curtains will keep out the light
ft of accommodation. It and can appear stylish while roman blinds are
has six double bed-
a neat contemporary choice and can include a
rooms, a cinema room, a blackout lining.
gym and a spacious lux-
ury kitchen. There is Dear Andrew, how can I create a
ample parking space for
several cars and the
back garden extends
Q. feature wall in my home?
some 51m.
A.
Feature walls have been very on-trend
Contact: Hetheringtons recently as a way of adding interest
on 01707 875161, to homes that have been neutrally
www.hetheringtons.co. decorated. They allow you to add impact and
uk drama and you can go as bold as you dare –
because it is a confined area, the finish doesn’t
have to be permanent. Chimney breasts and
alcoves make excellent feature walls.
When selecting which wall to decorate, you
Source: MoneySupermarket.com should choose the one with minimal features
– ie, few doors and windows. You are aiming
for an expanse of colour so you don’t want to
apr Maximum Loan break it up.
(per cent) to Value (per cent) Paint is a good option and you tend to be
2.19 2.2 60 braver with your selection of paint colour for
a feature wall than you would for the room as
4 4 60 a whole. And if you don’t like it, you only have
to repaint one wall.
2.3 2.3 65 If you prefer wallpaper, you can go bold
with some of the large pattern papers that
3.5 3.5 60 are available. For example, Vivienne
4.24 3.9 75 Westwood has produced a range for Cole &
Sons that could be used to add glamour to a
4.24 4.2 60 bedroom.
Graphics are also becoming popular – have
X 4.9 75 your favourite picture blown up and put on
the wall.
3.5 3.5 60
3.49 3.6 65 Andrew Dunning is head designer at APD
Interiors, an interior design consultancy,
5.59 5.2 75 www.apdinteriors.com. Follow his design tips
on Twitter: @andrewdunning
5.35 5 75
 City Focus
26
No. 1 ladies’ investment club
Kathleen Brooks meets Gina
Miller who is teaching women
how to handle their own finances
F
ORMING SCM Ladies Investment Club
has realised a passion for Gina Miller.
The marketing impresario is not
afraid of a challenge and her next one
is to try to inform wealthy and successful
women how to invest for themselves.
Miller is impeccably dressed and looks
far younger than her 46 years. The mother
of three, including two young children and
a daughter with special needs, is used to
juggling many balls. On top of the SCM
Ladies Investment Club that she set up in
April this year, she looks after her family’s
philanthropic foundation and is the co-
founder and director of marketing for SCM
Private, the investment firm she runs with
her husband.
Miller, who was born in Peru and is half
Guyanese, started working for BMW’s
events department in 1985 after complet-
ing a law degree. She started her own mar-
keting agency in 1996 called Sway that
targeted the financial services industry. By
2000 she could see a gap in the market to
revolutionise the distribution of retail
financial products: “I could see there was a
problem. The people who developed the
products didn’t have a direct line to the
financial advisers who sold them to the
public.” Miller pounced on the opportunity
and organised a series of conferences that
brought together the product providers
and the financial advisers. She called it the
Senate Programme and the first conference
was held in Monte Carlo in 2000. The com-
pany was sold to Incisive Media in 2005.
Miller has also had to deal with the
Entrepreneurs get
social in Sheffield
The Made festival is forming a community
for start-ups. Kathleen Brooks finds out why.
N
EXT week, the stars of BBC’s
Dragons’ Den will be descending on
Sheffield to help launch Made: The
Entrepreneur Festival. Taking place
in the city from 8-11 September, the festival
boasts classes on how to pitch a business
idea to a school for start-ups hosted by for-
mer Dragons’ Den star Doug Richard.
Entrepreneurship can be a lonely pur-
suit, and Made seems to speak to a need for
a greater sense of community among inno-
vators. But if so, is Sheffield the best place
to have it, especially when there are many
online social networks, such as LinkedIn,
not tied to any one location?
The organisers say that Sheffield is the
perfect choice: not only is it the centre of
the country, but it can be a centre that is
dedicated exclusively for entrepreneurs.
At City A.M. we conducted a small poll to
see what entrepreneurs thought about a
festival dedicated to them. Overall, they
were positive. Mark Lilley, founder of
lunchtime chain Abokado, says that a
forum like Made to share ideas is useful
and he also thinks that Sheffield is a good
location: “I studied at the University of
| Entrepreneurs
Gina Miller, the
founder of the SCM
Ladies Investment
Club
Picture:
Micha Theiner
/City A.M.
media spotlight. Her husband is Alan
Miller, the New Star fund manager who hit
the headlines when he challenged a legal
ruling that would make him pay £5m to
his former wife after only being married to
her for three years. The case went all the
way to the House of Lords. Miller was 100
per cent behind her future husband’s deci-
sion: “He asked me before the divorce pro-
ceedings if I would be okay with all of the
publicity. Of course I would. The British law
needed to be changed.”
CV | GINA MILLER
Lives: London Menzies and The Mr Men / Little
Car you drive: Audi R8 “I like Misses series to the children.
something speedy,” she says. Any ladies interesting in attend-
Reading: 1412 – The Year China ing can contact Gina at
Discovered The World by Gavin enquiries@scmprivate.com
Sheffield and it isn’t at all the steel forges
and mines that you would imagine but a
very progressive city. I could imagine this
type of event would sit well there.”
Hugo Burge, the founder of cheap-
flights.com, has not found entrepreneurs’
organisations particularly helpful: “I did
dabble with one but felt it was a waste of
time as it was too generic. What I have
found useful is internet networking events
and travel conferences – at these events
you tend to meet inspiring characters and
get stuff done at a practical level.”
Others think that Made is only the tip of
the iceberg. William Chase, the founder of
Tyrrells crisps and Chase Distilleries, sup-
ports the idea behind Made and thinks that
it should grow into an association for Is LinkedIn a good
entrepreneurs: “A lot of entrepreneurs enough network
aren’t strong enough to talk up for them- for entrepreneurs?
selves. What you need is an organisation
with a strong spokesperson to give them a Picture:
voice.” Chase is passionate about ensuring Micha Theiner
that entrepreneurs have access to finance /City A.M.
and he believes that if a start-up or small
business was a member of a bona fide
organisation it could give them more cred-
The SCM Ladies Investment Club is no
lightweight club for ladies who lunch. The
club meets twice a year in central London
and the ladies are given access to financial
advisers and educational lectures and
material and whilst it is free to attend, the
attendees are all successful women. Miller
talks frankly about the predicament many
women will face in the future: “Women are
living much longer than men, but save
much less. They think investing is a man’s
world that is beyond them, but it’s not.”
Miller could be the poster girl for being a
successful working mother. So what is the
secret of her success? “I can survive on
little sleep,” she laughs. Her advice to other
entrepreneurs is to always work hard. “My
mother said to never take anything for
granted. Everything could be gone tomor-
row, you have to learn to work.” Miller is
now spreading that female wisdom
through her ladies’ investment club.
ibility and potentially make it easier to
access credit.
Made is a fascinating experiment.
Associations of entrepreneurs, online or at
festivals, are clearly one way to ensure that
common problems and best practice are
shared between small, start-up businesses.
In the future, it may also offer the prospect
of a public voice that can speak in the
entrepreneur’s defence.
CITYA.M. 3 SEPTEMBER 2010
EQUALITY ACT
Q.
I am a small business
owner and am wonder-
ing what exactly is the
2010 Equality Act?
Q&A
A.
The new Equality Act is coming into
force on 1st October. It compiles the
last 30 years of gender, disability, sex-
uality, religious and ethnic discrimination legis-
lation into a single act – with some added
extras. The Department for Equalities calls this
“streamlining,” implemented to simplify the
numerous acts and make life easier for employ-
ers and employees. Whilst this might be the
case, businesses of all sizes are going to need
to pay attention to those added extras. For
instance, pay secrecy clauses are going to
become unenforceable. “Gagging” clauses pre-
venting employees discussing their pay will no
longer be allowed. So be prepared for your
staff having the ability to find out how much
their colleagues are earning. Health checks
prior to appointing staff will also no longer be
allowed unless you can prove that being physi-
cally fit is essential for the job.
Q.
Will I need to implement any
changes to my business?
A.
Perhaps an obvious point, but if there
are any disparities in your pay scales
between, for example, men and
women, you should be aware that your staff
will be in a stronger position to sue you. Some
City law firms have suggested the removal of
the secrecy clauses could open the floodgates
to mass equal-pay claims. Reviewing your pay
scales, picking out any areas of contention and
discussing it with staff might be a good idea.
This will prevent possible lawsuits and poten-
tial PR disasters, particularly as the new legis-
lation protects employees who divulge their
pay terms to the press.
The most tangible area you will need to
make changes in is scrapping any pre-
appointment health checks you might have.
If you think you qualify as an exception, the
Department for Equalities has guidelines
detailing these on their website. If you are
still unsure of your position it might be best
to consult a lawyer.
Lisa Mayhew of the Jones Day law firm
says it is also a good idea to touch up your
company’s equality policy to check you are
using all the correct terminology. Whilst it is
not a legal requirement to have a written
policy, Mayhew says it is certainly best prac-
tice. HR consultancies wanting your custom
will tell you that the Equality Act is terribly
complicated and that you will need their
help. Mayhew says “seek legal advice if you
encounter a very specific issue, but generally
speaking there is a lot of free guidance out
there. The Equality and Human Rights
Commission and the Disability Rights
Commission provide free templates on their
websites for these things.”
Q.
Are there any laws about enforcing
positive discrimination?
A.
The Act allows for positive discrimina-
tion for candidates who are equally
qualified. It remains illegal to promote
or appoint someone for the sake of diversity
who is less qualified than another candidate.
Mayhew warns that companies should
look more closely at their employment prac-
tices as the Act has been seen as “a bit of a
sea change” and might well bring equalities
issues “very much under the microscope.”
“Employees presenting a potentially prejudi-
cial issue, who personally
believe that they’ve been dis-
criminated against, may
well point to the company’s
other behaviours such as
the level of – say female
representation – on the
board. Women might
feel encouraged to pursue
a legal action”
Donata
Huggins
 Lifestyle AFFORDABLE 27
TRINKETS FOR
| Reviews AUTUMN
ON PAGE 28

Excruciating embarassment is the

recipe for Schmucks’ (mild) success
There are plenty of Steve Carrell and Paul
Rudd in the rather
laughs here but funny Dinner For
Schmucks.

Carrell and Rudd

areat half mast, says
Timothy Barber
Film
DINNER FOR SCHMUCKS
Cert: 12A
HHHii
AS dinners go, this one’s hardly haute cui-
sine, but it just about fills you up. On offer
is a menu of daft characters, cheap gags
and the odd bit of laugh-out-loud slapstick.
Some of it is tasteless, much of it is under-
cooked, and the service is very slow – it lasts
a maddening 114 minutes. But for a no-frills
Friday night, it’ll do. Like Nando’s, basically.
Paul Rudd (Role Models, I Love You Man)
is Tim, a private equity analyst with his eye
on a promotion. Bankers in Hollywood are,
without fail, evil jerks, and here is no differ-
ent: the evil amusement of the head hon-
chos at Tim’s firm is to hold a dinner every
month, to which each person must bring
an idiot. Victory goes to the guy with the
most idiotic guest, and in Tim’s case, the
pathway to promotion.
Enter Steve Carrell’s world-class doofus,
Barry. He lacks all social awareness, is cata-
strophically accident prone, and has a
hobby making dioramas out of stuffed
mice. He makes Carrell’s The Office charac-
ter look like a wise sage. After mistakenly
running Barry over, Tim spies his perfect
dinner party idiot and befriends him.
But Barry, of course, is a walking
calamity, and chaos ensues.
There’s plenty of comic potential in
the set-up, and the film takes a
throw-at-the- wall-and-see-what-sticks-
approach to exploiting it. The hit/fail
rate is about half and half. As well as
Carrell’s comedic goofing, there are
some funny cameos from The
Hangover’s Zach Galifianakis, Flight of
the Conchords’ Jermaine Clement and
Kristen Schaal, and a ropy cameo from
our own David Walliams. Carrell, Paul
Rudd and director Jay Roach (who was
behind the Austin Powers and Meet
the Fockers films) have all done fun-
nier work, though.
THE SWITCH
Cert: 12A
HHHii
JENNIFER Anniston’s never-ending run of
lacklustre rom coms takes a mild upward
turn – very mild indeed – in this blandly
predictable slice of whimsy. She plays
Kassie, an unmarried TV producer who
decides to opt for the turkey baster in order
to get pregnant. Her best friend is downbeat
dude Wally (Jason Bateman), who doesn’t
approve of the plan – not least because he’s
secretly in love with her. Once Kassie has
found a suave, married alpha male to
donate his genes, her friends throw her a
party to celebrate. Wally gets drunk,
locks himself in the bathroom, finds
the bottle containing the sperm, and
switches it for his own. Next day, he
doesn’t remember a thing.
Seven years later, having moved
away from New York, Kassie
returns with her son Sebastian.
Alpha Male Guy is now divorced,
available and ready to be a dad.
But Wally’s around too, of course,
and begins to see himself in weird
little moppet Sebastian. And the
memories begin to come back.
There are some small charms to
be had along the way here. That’s
mainly thanks to Bateman, who
gives a surprisingly layered per-
formance, and his friendship
with Sebastian is genuinely touching. Jeff
Goldblum and Juliette Lewis provide some
laughs as the leads’ respective buddies; but
ARTS: WHATS COMING UP IN THE AUTUMN
THEATRE
DEATHTRAP – Noel Coward
Theatre
7 SEPT-22 JAN Simon Russell Beale
stars in Ira Levin’s ingenious comedy
about an author with a murderous
case of writer’s block.
KRAPP’S LAST TAPE – Duchess
Theatre
22 SEPT-20 NOV Michael Gambon
takes on Samuel Beckett’s masterful
one-act monologue.
HAMLET – National Theatre
7-27 OCT Following in the recent
footsteps of Jude Law and David
Tenant, Rory Kinnear steps into the
black tights.
ONASSIS
12 OCT-8 JAN Robert
Lindsay plays the legendary
shipping magnet
Aristotle Onassis in
Martin
Sherman’s play
about his life.
gee, to see those two class acts reduced to
playing best friend roles in conveyor-belt
fluff like this is saddening.
EXHIBITIONS
TREASURES FROM BUDAPEST –
Royal Academy of Arts
25 SEPT-12 DEC 200 works of art
from the Museum of Fine Arts,
Budapest, including Leonardo, Monet
and Schiele.
GAUGUIN – Tate Modern
30 SEPT-16 JAN Van Gogh’s friend,
Post-Impressionist cornerstone
and emigrant to Tahiti receives
a major exhibition.
VENICE: CANALETTO AND HIS
RIVALS – National Gallery
13 OCT-16 JAN Views of what
must be the most painted city
in the world.
JOURNEY THROUGH THE
AFTERLIFE: ANCIENT
EGYPTIAN BOOK OF THE DEAD –
British Museum
4 NOV-6 MAR The British
Museum delves into its
exceptional archive of
Egyptian antiquity.
FILMS
WALL STREET: MONEY NEVER
SLEEPS
6 OCT Gordon Gekko returns to a
changed financial world in a much-
anticipated sequel.
RESTREPO
8 OCT Astonishingly visceral
documentary about life on the
Afghan frontline; not for the
faint of heart, though.
BURIED
29 SEPT Ryan Reynolds
(famous for being Scarlett
Johansson’s husband)
stars as a man trapped in
a coffin six feet under-
ground. Beyond scary.
THE SOCIAL NETWORK
15 OCT The story of the
founding of Facebook, by
Se7en director David Fincher,
starring Justin Timberlake. Just
way beyond weird. But also one
to watch.

OUT THIS WEEKEND

PREVIEWS

FILM DVD MUSIC GAMES

THE LAST EXORCISM Not great attempt at Blair FOUR LIONS Chris Morris's brave, and very funny, KATY PERRY Russell Brand's better half releases METROID: OTHER M (WII) Return of Nintendo's
Witch-style horror, from director Eli Roth. film about imcompetent suicide bombers. her second album, Teenage Dream. intergalactic bounty hunter.

JONAH HEX Josh Brolin stars in this confused CEMETERY JUNCTION Ricky Gervais's uneven, for- THE PRETTY RECKLESS Gossip Girl star Taylor DEAD RISING 2: CASE ZERO (PS3, X360, PC)
comic-book adaptation set in the Wild West. gettable look at small-town life in the 70s. Momeen's grungy rockers debut with Light Me Up. Survival horror sequel.

SOULBOY Spirited slice of nostalgia about the HOT TUB TIME MACHINE Disappointing comedy THEA GILMORE The acclaimed singer songwriter's TOM CLANCY'S HAWX 2 (PS3, X360, WII, PC)
Northern Soul scene. throwing John Cusack back to his 80s heyday. new album is called Murphy's Heart. Sequel to the arcade-style flight action game.
 28 Lifestyle | Fashion
The rise of the “he-vage”
Waxing, shaving and
wearing low-cut tops.
Has male grooming
gone too far? City A.M.
writers argue the toss
I
T’s one thing for Jude Law to do it. But
when bankers at Goldman Sachs in
New York (and Russell Brand) start
flaunting their “man cleavage” or “he-
vage”, it truly is time to become concerned.
Throughout the month of August, some
Goldman staff were permitted to pay $25 to
a designated charity in return for the free-
dom to embrace “casual Friday”. What
resulted was a competitive zoo of open tops
revealing pecs and, wait for it, hairless
chests.
There are two issues here. One, as we’ve
seen with Russell, Jude and co, is the bear-
ing of the chest. Two is the bearing of a
totally hair-free chest, courtesy of a shave or
wax. One horrified Goldman firm analyst
was reported saying: “It’s...ridiculous. Last
Friday there were traders on the floor with
three buttons of their shirts undone, show-
ing off their pecs and hairless chests.”
Male vanity (the type normally associat-
ed with women, that is) has been on the up
for a while now. Vests designed to control
“moobs” (man boobs) were one of Asda’s
best-selling products last year. And this
week, the Harley Medical Group released
figures saying that the number of men
seeking cosmetic surgery rose by 93 per
cent this quarter. And let us not forget the
recent furore over the news that men are
now a substantial market for hair straight-
eners.
But as men intensify their search for met-
rosexual perfection, women are faced with
a quandary. On one hand, we’re thrilled we
no longer have to put up with an average
man who is both smelly and poorly dressed.
On the other, we are now dealing with men
who put us to shame in the grooming
stakes. Have men got the wrong end of the
stick? Would they be better off with bushy
chest hair and a mild smell of BO, or is their
new vanity a good thing? ZS
YES
ZOE STRIMPEL
W
HEN I was first discovering boys,
it was the mid-nineties. The
process had its exciting
moments but it also came with
HOW TO FLAUNT YOUR LEGS (BEFORE THE MERCURY SINKS)
Sara
Hollamby
Style
Counsel
M
ANY of you will have just returned
from holiday all nice and tanned,
dying to show off your new glow,
and nowhere is this more tempting
a lot of unpleasant ones. One of the
biggest drawbacks was routine olefactory
assault. In other words: boys smelled, and
also had zits and flaky bits of skin on their
bodies.
When I grew up a bit, I assumed the
male offerings would become more
appetising. I was, basically, wrong. My first
proper boyfriend, though he was a recent
graduate, smelled shamelessly of BO, had
dreadfully unattended hair, overgrown
neck beard, and irregular chest fuzz
topped off by a smattering of rogue hairs
near his nipples. He had other qualities,
but sometimes it was hard to appreciate
them.
So I have looked on with great satisfac-
tion as men have first defined the term
than with the legs. The papers and maga-
zines are full of models and celebs stepping
out on summer evenings in gorgeous dress-
es, glamorous heels and lovely bare
pins. The reality for most of us, however, is
that it doesn’t matter how high the shoes,
how tanned our legs, they don’t look as
long, slim and smooth as theirs. Now, while
it’s impossible to stretch and sculpt our
calves, we can make what we have look its
best.    found is Estee Lauder’s Maximum Cover
First, work on the tan – it’s much better
to have brown legs than a brown face, and
always wear a minimum of SPF15 on your
body (SPF30 on your face). As you get older
CITYA.M. 3 SEPTEMBER 2010
Affordable
pieces to add
NO a glimmer to
your autumn
Post-summer workwear means a return to
serious clothing, dark colours and conserva-
tive cuts. Here’s how to jazz it all up. ZS
KATHLEEN BROOKS
W
HAT could be more off-putting
than meeting your man after HE
has had a manicure, or even
worse, a pedicure? Many people
might call me unenlightened, but they
are missing the point.
Male grooming has its place: I am a
firm believer in the benefit of a spray of a CHAIN SIGNET RING
48-hour long deodorant and even the odd £30
smear of moisturiser to ward off dry skin. www.theearringboutique.com
But I have my limits. Men should only buy
the most basic branded goods and they
should cost less than a tenner. There
should be no fancy packaging and they
should be causally thrown on a shelf or
into a sports bag.
So why my Stalin-esque stance on male
grooming? It’s two-fold. Firstly, it’s a way
to differentiate myself from the male in
my life. As someone who spends (too
many) hundreds of pounds on face cream, FUSCHIA AGATE SLICE
eye contour cream, nail polish and sham- £55
poo and conditioner, I don’t want my part- www.theearringboutique.com
ner to do the same. I take actual pleasure
in perusing the beauty counter at
Selfridges, opening layer upon layer of
silky, luxurious packaging and giving
them pride of place on my bathroom
shelf. I don’t have any intention of sharing
this pleasure with the man in my life any
time soon.
Secondly, I’ve always had a soft spot for
the rugged man. First, it was Harrison
Ford, then Matt Damon and more recent- SUSAN CAPLIN VINTAGE
ly Xavier Bardem. I just can’t imagine £295
Jason Bourne or Indiana Jones going for a www.matchesfashion.com
fruit acid peel or using cuticle cream. This
means that I could never fancy a guy who
would do so. As for the Goldman Sachs
bankers with their waxed chests, they
would need to pay a lot more than $25 a
day to parade them around in my office.
“metrosexual” and then embraced it via
hair removal (back and chest in the main;
back, sack ‘n’ crack is no evil either), mois-
Russell Brand is
embracing the new
trend for male cleav- CORNFLOWER NUGGET CUFF
turising, nice jeans, good haircuts and age. £340
beard maintenance. They look better, www.monicavinader.com
smell better and age better. They also Picture: PA
reserve judgement on female rituals of
self-maintenance, which is handy.
I do have one reservation. It’s not that
the Goldman traders have hairless, mus-
cle-tastic chests (tell me what part of that
I’m supposed to object to?), it’s that they’re
sporting them in those awful low tops.
Jude Law is hot. But even he looks like an
idiot in a plunging V-neck. Such a cut
makes men look slimy and untrustworthy. KATIE PEARL LOOPS
Gents, we love your grooming. But leave £7
the cleavage to us. www.monsoon.co.uk
it’s harder to tan your legs so give them a
little help with a good fake tan or daily
body bronzer. Don’t forget to de-fuzz and
your face, this is just
what you need.  If your
legs are naturally tanned, you’ll probably
exfoliate first; this will also help smooth
your legs and give them that silky matt
want their medium/deep colour, and I
brush some Clinique Bronzer over the top
finish. 
Cover any blemishes, broken veins or
bruises – where they appear from I do not
to really blend it in.
If you have any really deep scars or tat-
toos that you want to cover up, then make-
know – but they can be quite noticeable, so
don’t ruin the effect. The best product I’ve
up artist Hayley Gittins recommends
Dermacolor. You’ll need the cream, fixing
powder and spray and it’ll cost from about
Camouflage for Face and Body – £24.50 for £25, available from Charles Fox in Covent
a large tube. It’s a liquid crème that covers Garden. Sara Hollamby is a business image con-
really well and it’s waterproof. If you have sultant at WorkingVoices.com. Email her at sara-
any post-surgery scars or acne scarring on hollamby@blueyonder.co.uk.
CITYA.M. 3 SEPTEMBER 2010 Lifestyle | TV& Games 29

BBC1 BBC2 ITV1 CHANNEL4 CH FIVE TV PICK

TERRESTRIAL
6pm BBC News
6.30pm BBC London News
7pm The One Show
7.30pm Animal 24:7; BBC
News: Regional News
8pm EastEnders
8.30pm The Inspector Lynley
Mysteries
10pm BBC News
10.25pm Regional News
10.35pm CHOICE
Would I Lie to You?
11.05pm The National Lottery
Draws
11.15pm FILM Grosse Pointe Blank;
Weatherview 1am Sign Zone: Who
Do You Think You Are? 2am DIY
SOS 3am Ben Fogle’s Escape in
Time 3.45am-6am BBC News
6pm Eggheads
6.30pm Restoration Roadshow
7pm Who Do You
Think You Are?
8pm Mastermind: Subjects
include the Tudor Monarchy.
8.30pm Gardeners’ World
9pm Home Movie Roadshow
10pm Roger & Val
Have Just Got In
10.30pm Newsnight
11pm The Review Show;
Weather
11.50pm CHOICE
Reading Festival 2010
1.20am FILM The Haunted House
of Horror: British mystery horror,
starring Frankie Avalon. 1969.
2.50am-6am Close
6pm London Tonight 6pm The Simpsons 6pm Panda Week
6.30pm ITV News 6.30pm Hollyoaks with Nigel Marven
7pm Emmerdale: 7pm Channel 4 News 6.25pm Live from Studio Five
Nathan and Natasha fear 7.25pm 4thought.tv 7pm Five News at 7
Maisie is on to them. 7.30pm CHOICE Who Do You 7.30pm Zoo Days;
7.30pm Live International Think You Were? A man tries to Five News Update
Football: England v Bulgaria remember a past life. 8pm Police Interceptors;
(Kick-off 8.00pm). 8pm A Place in the Sun: Home Five News at 9
10.10pm ITV News or Away: Properties in Cornwall 9pm The Mentalist
10.40pm London News and Carcassonne in France. 10pm Law & Order: Special
10.45pm International 9pm Ultimate Big Brother Victims Unit WOULD I LIE TO YOU?
Football Highlights 10pm Pete Versus Life 11pm CSI: NY BBC1, 10.35PM
11.45pm Cops with Cameras 10.35pm Ultimate Big Brother 11.55pm Cops in Crisis Team captains David Mitchell and Lee
12.40am The Zone; 11.25pm Tim Minchin: Live 12.15am SuperCasino Mack are joined by Patrick Kielty,
ITV News Headlines 1.30am Music on 4: The Album 4.05am House Doctor 4.30am Bernard Cribbins, Deborah Meaden and
2.40am FILM Alien Siege: Chart Show: Summer Anthems Motorsport Mundial 4.55am Mark Watson for the panel show.
Sci-fi thriller, starring Brad 2am Ultimate Big Brother: Live Animal Rescue Squad 5.10am
Johnson. 2005. 4.10am- 3.35am This Week’s 4Music Top The New Tomorrow 5.35am-6am
5.30am ITV Nightscreen 20 5.25am-6.10am Countdown Michaela’s Wild Challenge

SKY SPORTS 1 2am Tight Lines 3am NFL: Crime Scene Investigation 1am Tube 11.25pm Big Brother’s DISCOVERY HOME &
SATELLITE & CABLE

7pm Premier League World
7.30pm Live International
Football 10pm Take It Like a
Fan 10.30pm International
Football 12am Take It Like a
Fan 12.30am Football League
Weekend 1.30am International
Football 3am Take It Like a Fan
3.30am Football League
Weekend 4.30am-6am
International Football
SKY SPORTS 2
4pm Live US Open Tennis
12am Live US Open Tennis
4am World Sport 4.30am
Tight Lines 5.30am-6am
Ocean Ride
SKY SPORTS 3
6.25pm Live International
Football 8.30pm Tight Lines
9.30pm WWE: Late Night –
Smackdown 11.30pm WWE:
Late Night – Bottom Line
12.30am Sportnation 1am IEX
Magazine 1.30am World Sport
Total Access 4am Race World
5am FEI Equestrian World
5.30am-6am IEX Magazine
BRITISH EUROSPORT
4.45pm Live US Open Tennis
12.30am-12.40am Eurogoals
Flash
ESPN
6.45pm French Top 14 Rugby
Union 7.15pm ESPN Kicks
Extra 7.30pm Press Pass 2010
8pm Live International
Football 10pm International
Football 11.45pm UFC
Unleashed 12.45am MMA Live
1.30am 30 for 30 2.30am
French Top 14 Rugby Union
3am UFC Unleashed 4am-6am
Friday Night Fights
LIVING
7pm Four Weddings 8pm
Passport Patrol 9pm Medium
10pm CSI: Miami 11pm
Criminal Minds 12am CSI:
Charmed 3am Exposed: Big Mouth 12.30am-6am
Britney Spears 3.50am Make Ultimate Big Brother: Live HEALTH
7pm Bringing Home the Babies
Me a Supermodel US 4.40am
Girls of the Playboy Mansion HISTORY 8pm I Didn’t Know I Was
5.30am-6am Home Shopping 7pm How the Earth Was Made Pregnant Specials: Takeout
8pm Churchill’s Spy School Tike 9pm 18 Kids and Counting READING FESTIVAL 2010
BBC THREE 10pm Combat School 11pm 10pm Little People, Big World BBC2, 11.50PM
7pm Top Gear 8pm The Real Auschwitz: The Man Who Told 11pm Two Foot Tall Teen 12am Edith Bowman and Reggie Yates
18 Kids and Counting 1am
Hustle: Celebrity Scammers the World 12am Churchill’s Spy introduce highlights of the rock festival,
9pm Little Britain 9.30pm The School 2am How the Earth Was Little People, Big World 2am where bands performing included Guns
King Is Dead 10pm EastEnders Made 3am Deep Sea Detectives Two Foot Tall Teen 3am I N’ Roses and Queens of the Stone Age.
10.30pm The Real Hustle: 4am-5am The Universe Didn’t Know I Was Pregnant
Celebrity Scammers 11.05pm
DISCOVERY
Specials: Takeout Tike 4am
Family Guy 11.50pm The King A Baby Story 5am-6am
Is Dead 12.20am Ideal 8pm How Do They Do It? Bringing Home Baby
12.50am Young, Dumb and Examining the production of
Living Off Mum 1.50am Little Irish stout. 8.30pm How It’s SKY1
Britain 2.20am The Real Made 9pm Weird or What? 8pm The Middle 8.30pm Must
Hustle: Celebrity Scammers 10pm Mythbusters 12am Be the Music 9.45pm Must Be
3.50am Young, Dumb and Massive Nature 1am Deadliest the Music – Meet the Semi-
Living Off Mum 4.50am- Catch 2am More Industrial Finalists 10.30pm Lie to Me
5.25am Ideal Revelations Europe 3am World 11.30pm Football’s Greatest WHO DO YOU THINK YOU WERE?
War Two: The Complete 12.40am Bones 1.40am Road CHANNEL 4, 7.30PM
E4 History 3.50am Treasure Quest Wars 2.30am Street Wars Film-maker Pinny Grylls’ documentary
7pm Hollyoaks 7.30pm Friends 4.40am Days That Shook the 3.30am The 4400 4.20am following Neil Clarke’s efforts to
9pm Supernanny 10.05pm World 5.30am-6am How Does Top Design 5.10am-6am Sell discover whether he can remember
Wife Swap 11.05pm Rude That Work? Me the Answer anything about a past life.

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

QUICK CROSSWORD
  

SUDOKU KAKURO
5 33 10 17 23 32 6 
8 23 4
8 18   
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 7 21
10 34 9
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 22 15
   
above or to the left of it. 9
You can only use the digits 1-9 7 9 16 
  and you must not use the
16 14
35   
same digit twice in a block. 12 31 30 8
   The same digit may occur 21 16 5
28 20
    more than once in a row or
column, but it must be in a
17 24
11
  
17 6
  separate block.
6 3 7 
45
   7 19 11
 

  ACROSS DOWN
1 Soap froth (4) 1 Scribble (6)
   
   WORDWHEEL U I
3 Ascends (6)
5 Green vegetable (3)
2 Be fluent in (5)
3 English river (3)
Using only the letters in the Wordwheel, you have
  ten minutes to find as many words as possible,
L N 6 Contest of speed (4) 4 Haemorrhage (5)
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters D 7 Trading place (6)
9 Having feeble
8 Crimson (3)
10 Bow (3)
LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
E G intelligence (4-6)
11 Little rascal (3)
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
T O 14 Fear of great
heights (10)
12 Flow back (3)

QUICK CROSSWORD 9 6 1 7 6 9 2 17 Short sleep (6)

13 Animals used in

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$ 7 < ( / 3 ' 4 1 2 7 8 9
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6 & $ 5
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5
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6
8
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18 Step in dancing
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was CLOUDLESS          ballet) (3)
 Punter
30
| Racing
RACING TRADER BILL ESDAILE, OUR RACING EXPERT, TAKES A LOOK AT THE BEST BETS OVER THE WEEKEND…
Sprint King David Nicholls set to
strike again with Regal Parade
Regal Parade winning last year’s Betfred Sprint Cup
T
OMORROW’S Group 1 Betfred
Sprint Cup at Haydock Park
(3.35pm) is the final top quality
sprint race of the UK flat season
and last week it looked as if it would be
run on bottomless ground. The weath-
er has since improved and come tomor-
row afternoon conditions should be
absolutely perfect.
David Nicholls is normally associated
with his handicappers, but REGAL
PARADE is easily the best horse in his
yard and is a genuine Group 1 per-
former. He won this race last year and
will be aiming to become only the sec-
ond horse to win it twice. His entire
season – which has included wins in
the Group 3 Shadwell Stakes and the
Group 1 Prix Maurice De Gheest – has
been targeted around this race and the
same cannot be said of his rivals.
Starspangledbanner ran a great race
in defeat in the Nunthorpe at York and
would surely have won in another half
furlong. If he had won that race, he’d
be coming here in search of an historic
four-timer, but this race has surely been
something of an afterthought for
Aidan O’Brien. The four-year-old has
been on the go since May and has had a
number of tough races.
Borderlescott, who runs well on the
track, has had injury problems and
Kingsgate Native, although having the
talent to win this, is always hard to
catch right. The majority of the rest of
the field look fairly exposed, but I
would give an each-way squeak to last
CITYA.M. 3 SEPTEMBER 2010
Picture: PA
week’s Newmarket winner Doncaster
Rover at 25/1 with Paddy Power. This is
a huge step up in class, but now he has
found his form he definitely has place
possibilities.
The only worry for Regal Parade fans
is that he is better when he gets his toe-
in and the problem with writing this
column 48 hours in advance is that we
don’t know what the ground will be. As
long as it’s no quicker than good I will
be backing him at 3/1 with Paddy
Power.
The meeting’s big handicap is the
Old Borough Cup at 3.05pm. Mark
Johnston has won three of the last six
renewals and he saddles three this year,
the pick of which looks to be Lady
Eclair. I’d find it very hard to split her
and Red Cadeaux from their Chester
run a fortnight ago and am more inter-
ested in the progressive KANSAI SPIR-
IT. John Gosden’s yard continues to fire
on all cylinders and this son of Sinndar
looked like he would appreciate the
step up to 1m6f when he won impres-
sively at Newbury last time.
RIP VAN WINKLE will start a short-
priced favourite in tomorrow’s Irish
Champions Stakes, but I fully expect
him to win before having another crack
at the Breeders’ Cup.
POINTERS...
KANSAI SPIRIT 3.05pm Haydock (tomorrow)
REGAL PARADE 3.35pm Haydock (tomorrow)
RIP VAN WINKLE 3.45pm Leopardstown (tomorrow)
CITYA.M. 3 SEPTEMBER 2010
SPORT TRADER CITY AM’S RUGBY EXPERT DAVID WILD TAKES A LOOK AT EACH
TEAM’S CHANCES AS THE DOMESTIC RUGBY UNION SEASON GETS UNDERWAY
Big spenders Bath can
pip Tigers and Sarries
AVIVA PREMIERSHIP
STARTS TODAY – 7.45PM
Since Geordan Murphy lifted the trophy
and Leicester Tigers were crowned
Premiership Champions for the second
successive time back in May, it’s been all
change in club rugby. We’ve had high-pro-
file transfers that Man City would be
proud of and even a new title sponsor.
Last season started slowly and a number
of teams took a while to find their feet, but
if 2010/11 starts as last term ended, we’re in
for a treat. The momentum seems to be
with Saracens and Bath, who both finished
strongly to reach the playoffs, but will
either have enough to tame the Tigers?
With title odds supplied by Paddy Power,
we look at each of the 12 teams’ chances.
BATH 4/1
Bath have perhaps made the biggest sign-
ings over the summer, tempting Lewis
Moody and Sam Vesty from Leicester. The
new owners are clearly ambitious, have
plenty of money and, with Ian McGeechan
as performance director, have a super
opportunity to win the Premiership for
the first time in 15 years.
EXETER CHIEFS 500/1
The Premiership’s new-boys are the clear
outsiders this season and in terms of
spending power are a long way behind
their rivals. Certainties to finish rock-bot-
tom.
GLOUCESTER 16/1
Finished seventh last year and will strug-
gle to better that. Mike Tindall is an inspi-
rational captain but Bryan Redpath’s side
won’t have quite enough to reach the play-
offs this year.
HARLEQUINS 33/1
The big losers of last year, dropping from
second in the table two years ago to eighth
last season. The ‘Bloodgate’ scandal is still
casting a dark shadow over the club and
they are set for another struggle.
LEEDS CARNEGIE 100/1
Neil Back and Andy Key did an amazing
job of keeping Leeds up last year. They have
the cushion of Exeter behind them now
and can set their sights on finishing above
Newcastle, Sale and perhaps even Quins.
ENGLAND
BULGARIA
SUNDAY – 4.00PM SKY SPORTS 1
IT’S been a summer to forget for
Fabio Capello, his England squad
and every fan up and down the
country. The performances at
the World Cup were hugely dis-
appointing but the time has come
to move on and attention now focus-
es on the 2012 European
Championships.
England failed to qualify for the
last Euros, but they have been handed
a decent group this time and progress
to the finals should be a formality.
Bulgaria, Switzerland, Wales and
Montenegro aren’t the toughest of oppo-
nents, but Capello will be desperate for
his side to win well tonight before their
potentially difficult trip to Basle on
Tuesday.
The Punter | Sport
Having said goodbye to Leicester, can Lewis Moody steer Bath towards the title?
LEICESTER TIGERS 7/4
Justified favourites, but with the respec-
tive departure and retirement of Moody
and Harry Ellis - two pillars of the recent
title-winning sides - there’s better value in
backing Bath or Sarries.
LONDON IRISH 14/1
The Exiles disappointed last season and
have lost a number of key players includ-
ing versatile back Peter Hewat. They will
need their promising youngsters to quick-
ly gel around the experienced heads to
stand any chance of reaching the playoffs.
LONDON WASPS 12/1
Having said goodbye to Danny Cipriani
and Paul Sackey, it looks like the London
side could take a while to find their feet.
Andy Powell is a good signing, but the
only tip I can suggest for Wasps is that
they beat their 5pt handicap against
Harlequins in the double header at
Twickenham tomorrow.
NEWCASTLE FALCONS 100/1
The Falcons can only be considered also-
rans. The departure of prop and captain
Carl Hayman is an even bigger blow than
losing Jonny Wilkinson the previous year,
and I think they will finish lower than last
season’s ninth.
The Three Lions have won their last 10
games at Wembley, although it’s fair to
say they have faced a few mediocre sides
during that period. However, they have
scored 35 goals in those contests and only
conceded seven, so their dominance on
home soil shouldn’t be underestimated.
Bulgaria were a force to be reckoned
with in the mid-nineties, going all the
way to the semi-finals of USA ’94.
They have only managed to quali-
fy for one major tournament
since the Millennium, though,
and have lost three and drawn
the other of their four friendlies
so far this year.
These two sides have met eight
times in the past and the Eastern
Europeans are yet to win a game.
However, it has been 11 years since
they last faced each other and both
of the last two games were draws
during qualifying for Euro 2000.
Stanimir Stoilov’s side would be
overjoyed to take a point from this
game and the draw is a best-priced
4/1 with William Hill.
England should really be win-
31
Picture: PA
NORTHAMPTON SAINTS 7/2
The success story of last season - won more
matches than any other side, finished sec-
ond by two points, but lost in the playoff
semi-final. I don’t think they’ll improve on
that, but I can certainly see terrifying
code-convert Chris Ashton topping the try-
scorer charts as he did last year.
SALE SHARKS 66/1
With so many star names, Sale should be
able to better last year’s poor season.
Dwayne Peel, Andrew Sheridan and Mark
Cueto won’t be troubling the playoff hope-
fuls but look good for a buy at 10 in
Sporting Index’s Sale/Newcastle match bet
(10pts for finishing higher, 2pts per each
league point won by).
SARACENS 11/2
Brendan Venter has bolstered his already
strong squad with English speed mer-
chant David Strettle and Scotland flanker
Kelly Brown. A strong chance of going one
better and lifting the trophy this year but I
think they will be edged out by Bath.
POINTERS...
Bath to win Premiership final at 4/1 with Paddy Power
Buy Sale/Newcastle at 10 with Sporting Index
Chris Ashton top try-scorer at 5/1 with Paddy Power
ning all five of their home games in this
group, but we’ve seen recently that they
have been relatively slow starters. It was
only a friendly, but against Hungary a cou-
ple of weeks ago the side looked nervous
and the crowd started to get agitated
when it was still goalless after half an
hour. They were also trailing to Japan and
Egypt at the interval prior to the World
Cup and have generally seemed to need
some time before hitting full stride.
I’m confident England will win this
game, but I wouldn’t want to back them
at 3/10 with Paddy Power. Instead, I’ll have
a few shillings on the draw HT/ England FT
market at 7/2 on Betdaq. A total goals
spread bet is difficult as Sporting Index
look to have pitched it about right at 3-3.2.
I can see Bulgaria scoring, though, as
England’s defence has been rather shaky
of late. The time of their first goal can be
sold at 63 and although I’m not putting it
up as a main tip, I wouldn’t put anyone off
a small bet at that price.
POINTER...
Draw HT / England FT at 7/2 on Betdaq
 Sport
32
When Ryder
Cup golf was
disgraced
How America snatched the Ryder Cup in one of
the most infamous climaxes of its history
IN an extract from his new book, Sam Torrance, part
of Europe’s team, recalls his reaction to exuberant
and premature US celebrations that marred a
thrilling end to the match, which they ultimately won.
I
’VE called it the most disgusting and
disgraceful day in the history of pro-
fessional golf, and so that’s on the
record. So much else has been written
and said about those scenes that I don’t
need to go into all the exact detail of it
again. Suffice to say that it was 15 min-
utes or so before the situation had
calmed down enough for Olazabal to be
able to attempt his own putt.
[America’s] Tom Lehman, of course, ran
fully 50 yards from where he was
crouched by the 17th green, back down
the fairway, fist-pumping and helping to
raise the crowd’s reaction to [Justin]
Leonard’s great putt into some-
thing akin to a frenzy.
It was behaviour I just can’t con-
done. I can understand why it hap-
pened, because we’re all human,
and in the intensity of a situation
like that it is only natural to cele-
brate it fairly unrestrainedly. But it
went on for far too long, and the
manner of it was just wrong. I actu-
ally saw a cameraman walk across
Ollie’s line. The worst aspect of it all
was to celebrate like that when
Olazabal had still to putt. If he had
holed it, their match would have
‘Spot-fixing’ trio suspended
by ICC despite set-up claims
▲
CRICKET
BY JON COUCH
THE three Pakistan cricketers at
the centre of the ‘spot-fixing’ alle-
gations were last night charged
with various offences by the
International Cricket Council (ICC).
Test captain Salman Butt,
Mohammad Asif and Mohammad
Amir were provisionally suspend-
ed from playing following “alleged
irregular behaviour” during the
fourth Test at Lord’s last week.
“We will not tolerate corruption
in cricket – simple as that,” said
ICC chief executive Haroon Lorgat.
“We must be decisive with such
matters and if proven, these
offences carry serious penalties up
to a life ban.
“The ICC will do everything pos-
sible to keep such conduct out and
we will stop at nothing to protect
the sport’s integrity.
“While we believe the problem
Results
CRICKET
LV COUNTY CH’SHIP - Div One: (Edgbaston);
Warwickshire 294 (A G Botha 76, Imran Tahir 69no) and
140 (C R Woakes 51, Azhar Mahmood 4-51, D I Stevens
4-38) v Kent 111(C R Woakes 6-52) and 228 (M van
Jaarsveld 110no, N M Carter 5-60, C R Woakes 5-45).
Warwickshire (21pts) beat Kent (3pts) by 95 runs.
(Emirates Durham ICG); Durham 372 (P Mustard 120, S G
Borthwick 68, M D Stoneman 67, I D Blackwell 59, A R
Adams 5-92) and 279-5 (69.5 overs) (G J Muchall 111, D
M Benkenstein 58). v Nottinghamshire 343 (C M W Read
56, A D Brown 52). (Liverpool); Hampshire 160(K W
Hogg 4-53) and 275-5 (103.0 overs) v Lancashire 398 (K
W Hogg 81).
CITYA.M. 3 SEPTEMBER 2010
Leonard’s putt
sparked rapture
among the US
team.
Picture: REUTERS
still been all square going up the it would also have been the best
last. As it was, Ollie won the 18th, possible response to what hap-
to halve their singles game, but pened on that 17th green. It would
because he missed on the 17th it also have underlined forever what
meant that Europe could only fin- the Ryder Cup should be all about,
ish on a maximum of 13½ points – but instead we got at Brookline
which we duly did. what it should never be about.
As I look back on the incident Extracted from An Enduring Passion: My
now, I feel more and more strongly Ryder Cup Years by Sam Torrance, pub-
that Crenshaw, as the United States lished by Mainstream in hardback at
captain, should have stepped in £16.99. Sam will be signing copies on
and conceded Olazabal’s putt. That Tuesday at Waterstones, Jubilee Place, 12
would still have given Leonard the noon, and on Wednesday at
chance to halve the final hole and Waterstones, London Wall, 12.30, and
thus confirm America’s victory, but Waterstones, Ludgate Circus, 3.15.
is not widespread, we must always not taped like that.
be vigilant. It is important, howev- “We have not seen videos – what
er, that we do not pre-judge the the time was, what the date [was]...
guilt of these three players. That is whether they were taken before or
for the independent tribunal after the match. Do you have
alone to decide.” answers to the questions?”
Ironically, the charges came after The News of the World said it
the Pakistan’s high commissioner “refuses to respond to such ludi-
Wajid Shamsul Hasan, inset, crous allegations”.
claimed the players had been Earlier, all three players
framed by the News of the announced they had opted to
World after emerging from a sit out of the forthcoming lim-
Pakistan Cricket Board inquiry ited-over series with England,
in London. He claimed starting with the
the video allegedly Twenty20 opener on
exposing the “no-ball” Sunday, while they
scandal was taken set out to clear their
after the incident. name.
Asked if the trio Hasan added: “On
had been set up by account of the men-
the paper, Hasan tal torture which
replied: “Yes”. He has deeply affected
added: “You [the them, they are not
media] are jump- in the right frame
ing to conclusions, of mind to play the
because no-balls are remaining matches.”
TENNIS Cibulkova (Svk) bt K Bondarenko (Ukr) 6-2 5-7 7-6 (9-7),
US OPEN (Flushing Meadows, New York, USA)—M Men's (4) J Jankovic (Ser) bt M Lucic (Cro) 6-4 3-6 6-2, P
Singles Rnd 2: R Gasquet (Fra) bt (6) N Davydenko (Rus) Schnyder (Swi) bt (22) M Jose Martinez Sanchez (Spa) 7-
6-3 6-4 6-2, A Clement (Fra) bt E Schwank (Arg) 6-3 5-5 6 (7-2) 6-4, (15) Y Wickmayer (Bel) bt J Goerges (Ger) 6-
ret, (19) M Fish (USA) bt P Cuevas (Uru) 7-5 6-0 6-2, (21) 4 7-5, (7) V Zvonareva (Rus) bt S Lisicki (Ger) 6-1 7-6 (7-5).
A Montanes (Spa) bt C Ball (Aus) 6-4 6-3 6-1, K Nishikori TODAY’S DIARY
(Jpn) bt (11) M Cilic (Cro) 5-7 7-6 (8-6) 3-6 7-6 (7-3) 6-1, P
Mathieu (Fra) bt G Rufin (Fra) 7-6 (7-3) 6-4 6-3, (2) R European Championship Qualifying: Group B:
Federer (Swi) bt A Beck (Ger) 6-3 6-4 6-3. Women's Armenia v Rep of Ireland (4pm). Group C: Slovenia v Northern
Singles Rnd 2: (1) C Wozniacki (Den) bt K Chen Chang Ireland. Group G: England v Bulgaria (8pm), Montenegro v
(Tpe) 6-0 6-0, Y Chan (Tpe) bt T Paszek (Aut) 6-3 6-3, B Wales (6.30). Group I: Lithuania v Scotland (7.15).
Capra (USA) bt (18) A Rezai (Fra) 7-5 2-6 6-3, (11) S
Kuznetsova (Rus) bt A Sevastova (Lat) 6-2 6-3, L TENNIS
Dominguez Lino (Spa) bt U Radwanska (Pol) 6-2 7-5, D US Open (Flushing Meadows, New York, USA).
SPORTS EDITOR JON COUCH
email sport@cityam.com
CITYA.M. 3 SEPTEMBER 2010
Roo’s back in
the groove,
raves Capello
ENGLAND
BULGARIA
TONIGHT, KO 8PM, ITV1
FABIO CAPELLO admitted his relief at
Wayne Rooney’s return to goalscor-
ing form and is set to keep faith with
his star striker for tonight’s Euro 2012
qualifier with Bulgaria.
The Manchester United striker
ended his five-month goal drought
when he converted a penalty in the 3-
0 win over West Ham on Saturday.
Now, Capello believes that can
open the floodgates for a repeat of
the World Cup qualifying campaign
when Rooney finished as Europe’s top
marksman.
“I monitored him during the last
game that he played against West
Ham. He’s good, he’s back and I’m
happy because he scored a goal,”
Capello said. “Rooney runs a lot
around the pitch, he’s free to move
where he decides to go. Rooney will
play tomorrow in style.”
Rooney is without an international
goal in his last ten matches for
England, but Capello is convinced the
Imperious Fed looks Beck to his best
US OPEN
2010
BY JON COUCH
FIVE-TIME champion Roger Federer
continued his love affair with the US
Open after cruising into the third
round at Flushing Meadows.
The Swiss second seed eased to a 6-
24-year-old has discovered his form at
the right time.
On being informed Rooney was the
bookies’ favourite to score first
tonight, Capello smiled: “I hope
Wayne Rooney will score. Sometimes
the bookmakers find a solution.
“It was important for him to get
the penalty against West Ham. It is
important for every forward to score
goals. It is a good moment for him
and he will be okay for the game.”
Capello’s already-depleted squad
suffered another casualty yesterday
when goalkeeper Scott Carson was
released due to a family bereavement.
He was replaced by Watford’s
Under-21 keeper Scott Loach, while
Ben Foster also returned to training.
Capello is, however, without John
Terry and Frank Lampard for the
game, but the boss accepts the Chelsea
duo were right to pull out after aggra-
vating injuries at the weekend.
“We know Frank Lampard needs an
operation to be ready for his club and
the next game with us,” he said. “John
Terry has been playing with an injec-
tion because all the other Chelsea
defenders were injured. He told us he
had to stay at home because he cannot
play all the games. He needs to relax in
order to be fit for the next games.”
3, 6-4, 6-3 victory over German
Andreas Beck to earn a third round
clash with either Paul-Henri Mathieu
or Guillaume Rufin.
Meanwhile, Russian sixth seed
Nikolay Davydenko became the
biggest casualty of the tournament so
far after crashing 6-3, 6-4, 6-2 to
Frenchman Richard Gasquet.
British hope Andy Murray takes on
Capello has been monitoring the form of Rooney.
Jamaica’s Dustin Brown in the second
round at around 8pm tonight.
In the women’s, top seed Caroline
Wozniacki, of Denmark, inset, roared
to a 6-0, 6-0 victory over Chinese
Taipei’s Kai-Chen Chang in just 47
minutes to set up a third-round clash
against Yung-Jan Chan.
Wimbledon finalist Vera
Zvonareva is also safely through.
Sport 33
SPORT | IN BRIEF
Tears for injured Onions
CRICKET: Seamer Graham Onions has
been ruled out of the Ashes series
against Australia after being told he
needs surgery on a back problem.
The 27-year-old Durham bowler has
been plagued by a stress fracture and
could be sidelined for up to nine months.
“Obviously I’m shattered to miss the
Ashes with the prospect of a lengthy
recovery period,” Onions said. “I’m dev-
astated with such a long lay-off but
determined to overcome this.”
Comeback kid Moore misses out
RACING: Champion jockey Ryan Moore
missed out on a winner on his long-
awaited return to the saddle at
Salisbury yesterday after three weeks
out with a wrist injury.
The 26-year-old was injured riding
Rocket Rob at Windsor on 9 August,
dashing his hopes of a fourth title.
Moore finished fourth on Sir Michael
Stoute’s Caraboss before being unplaced
on Richard Hannon’s Tale Untold.
Lucky Sevens for Bath
RUGBY UNION: Bath have completed
the signing of France Sevens interna-
tional winger Jacques Boussage, 25,
after he impressed on a trial.
Rivals Leicester, however, have
brought in second row Ben Gulliver on a
three-month loan from Cornish Pirates.
Hatton questions his future
BOXING: Former world light-welter-
weight champion Ricky Hatton has
revealed for the first time he is unlikely
to fight again.
The 31-year-old has not fought since
losing to Manny Pacquiao in May 2009.
He said: “You can never say never, but
if I was to put my last pound on it I
would say ‘no, I think that’s me done’.
“I’m doing the promoting now and
my goal is to try and make champions of
Picture: GETTY my fighters,” he added.
 34 Sport | Rugby Union
More than a
rugby coach:
Venter the
visionary
Controversial Saracens boss on his unique club model
and why he regrets nothing. By Frank Dalleres
M
AYBE it’s because Brendan
Venter spent the summer
back home in South Africa
working as a doctor in his
own practice, an environment in
every sense half a world away from
top-level English sport.
Or perhaps it’s down to his singu-
larly utopian philosophy for running
Saracens, where he insists rugby is “a
side issue” and the focus is on mak-
ing his squad better people, rather
than just better players.
But Venter is convincing when he
says he harbours no festering regrets
or bitterness from last season, despite
finishing the campaign with a 10-
week ban he still views as unjustified
and coming within three minutes of
rewriting the club’s history books.
That suspension was imposed after
an altercation with Leicester fans dur-
ing a match at Welford Road and
caused him to miss his side’s first ever
appearance in a Premiership final,
where they were dramatically beaten
by none other than the Tigers.
Yet although he resents the stain
on his name caused by suggestions,
later dismissed, he swore at and
pushed supporters during the same
incident, and remains adamant he
did not act improperly in any way, the
straight-talking 40-year-old says he
has not brooded on the controversy.
“I don’t have a big victim mentality.
I’m more like, whatever, this is what
happened, take it or leave it,” he
explains. “Am I guilty? No, 100 per
cent not. I look at facts. I think, ‘What
did I say? What actually came out of
my mouth?’ Not, ‘What was the per-
ception?’. Did I swear at anybody? Did
I push anybody? No. Did I mock them,
bow to them, blow kisses at them?
Absolutely. But in my book there’s
nothing wrong with that. It’s as sim-
ple as that. I don’t feel like a victim. If
they go on with their stuff, whatever.”
He adds: “When it comes to
Leicester, would I stand up again if I
can’t see? Absolutely. Don’t put me
there next time please, because I
can’t see from that vantage point.”
GALAXIES AWAY
Venter does seem uniquely able to rile
opponents, be they on the pitch or in
the sport’s corridors of power. Even
his eating of a biscuit during one dis-
ciplinary hearing provoked a diplo-
matic row.
It is a quality that appears utterly at
odds with the highly intelligent,
impeccably mannered, Christian man
who has spoken with this reporter on
numerous occasions and greets City
A.M. at the club’s St Albans training
ground. It becomes even harder to
reconcile, however, when Venter
begins to expound on his vision for
the club, which is experimental in its
vast scope and places less emphasis
on success than its players’ wellbeing.
All are encouraged to take up fur-
ther education, and three quarters
have; they and their families are
encouraged to socialise together; a
In association with
Venter says rugby is a side issue at Saracens. “It sounds weird,” he admits.
dedicated team psychologist puts
them on personal development pro-
grammes; and voluntary sessions are
held on questions of spirituality and
the meaning of life. It is galaxies away
from the old-school mentality still
pervasive in British sport but is an
approach that prompts new signings
to universally proclaim “something
special” is happening at the club.
“The main thing is we treat them
like people here, like human beings.
Secondly, they are rugby players. It
sounds weird, but rugby is a little bit
of a side issue at Saracens,” he says.
“It’s the same with me. I’m a lot
more than a rugby coach. I’m a good
husband to my wife, a father to my
children, I’ve got other business inter-
ests, and that’s how I want to be. I’ve
got a spiritual side to my life.
“When I came here it was to make
a good impact on people; not make
them better rugby players, but influ-
ence their lives in a good way. The
idea was to make a different differ-
ence. Our difference is not necessarily
to make Saracens a winning club;
that would be a consequence of other
things we do. Our thing is zooming in
on people and helping people.”
It all sounds quasi-religious. He
breaks into a booming laugh.
“It’s a community. I’ve never been
involved in a rugby club where people
actually care for each other. They try
hard on the field. I think that’s a con-
sequence of an environment that
cares – not just makes as if it cares,
but really cares.”
Unorthodox it may be, but success-
ful it undoubtedly is. Venter defied
pre-season expectations by leading
Saracens to within a whisker of their
CITYA.M. 3 SEPTEMBER 2010
Picture: Micha Theiner/City A.M.
first top-flight title in May, denied
only by a 77th-minute Dan Hipkiss
try. Not that he has dwelt on it.
“The fact we didn’t win the
Premiership is irrelevant; it was a bril-
liant season. Fifteen minutes after
the final we were fine; I was fine. You
try and win it and if you don’t, you
don’t. And that’s it.” He exhales
deeply. “You know, three minutes
away… Whether you win it or not, it is
the way you perform, and I was just
proud of the way they performed. But
I wouldn’t be here if I didn’t think we
could win the Premiership.”
Venter and his disciples are on a
mission then, and for once modest
Saracens won’t need a miracle to
claim silverware.
Read Brendan Venter’s column every
Friday in City A.M. starting next week. For
Saracens tickets call 01727 792800
CITYA.M. 3 SEPTEMBER 2010
If it’s an improvement on last
year, we’re in for a real treat
GUEST COLUMNIST
KYRAN BRACKEN
L
AST season was a fantastic year
for Premiership rugby, culminat-
ing in one of the best finals I
have ever seen.
Leicester and Saracens went ham-
mer and tongs at each other in a
high-quality game, which swung
from one end to another right to the
very last passage of play.
On reflection, it was a season of
contrast given the changes made to
the breakdown mid-way through the
campaign, which brought a very dif-
LONDON WASPS
KEY INS: Nic Berry (Racing
Metro), Charlie Davies (Stade
Francais), Riki Flutey (Brive),
Richard Haughton (Saracens), Seb
Jewell (Harlequins), Andy Powell (Cardiff Blues)
KEY OUTS: Danny Cipriani, Lachlan Mitchell (both
Melbourne Rebels), Hugo Ellis (Dragons), Warren
Fury, Lee Smith (Leeds), Dan Leo (Bordeaux), Paul
Sackey (Toulon), George Skivington (Leicester)
VERDICT: Will bounce back fighting
In association with
ferent style of rugby and making for
a fascinating final few weeks.
My old club Saracens have come on
leaps and bounds under Brendan
Venter and I expect them to be the
team to beat again this year.
They, more that anyone I feel,
showed they are capable of playing
both defensive and expansive styles
to suit.
The signing of Matt Stevens is a
masterstroke and all eyes will be on
him when he makes his return in
January, while in Richard
Wigglesworth and David Strettle they
have two top English talents.
Northampton seem to get better
and better too under Jim Mallinder
and Dorian West and you can never
write off the Tigers – they are the
Manchester United of Premiership
rugby. Bath will be boosted by the
signings of Lewis Moody and Sam
Vesty from Leicester and will take a
lot of stopping, taking their end-of-
NEWCASTLE FALCONS
KEY INS: Luke Eves, Redford
Pennycock (both Bristol),
Andrew Henderson (Montauban),
Ally Hogg (Edinburgh), Jeremy
Manning (Munster), Tim Ryan (Toulon),
KEY OUTS: Adam Balding (Worcester), Tom Biggs
(Bath), Peter Browne (Harlequins), Carl Hayman
(Toulon), Rob Miller (Sale), Laurence Ovens
(Bedford), Mark Sorenson (Northampton)
VERDICT: Another long season may await
season form into account.
With the World Cup just over 12
months away, this is a big break-
through season for many young play-
ers and it will be interesting to see
who catches the eye of Martin
Johnson.
My money is on Alex Goode com-
ing good. Much in the mould of
James Hook, he was a fly-half playing
NORTHAMPTON
KEY INS: Scott Armstrong,
Calum Clark, Joe Ford (all
Leeds), Adam Eustace
(Gloucester), Tom Mercey (Saracens),
Ryan Powell, Tom Wood (Worcester), Mark
Sorenson (Newcastle), Greig Tonks (Leicester)
KEY INS: Neil Best (Worcester), James Cannon
(Wasps), Joe Gray (Quins), Nick Greenhalgh Jon
Vickers (both Exeter) Juandre Kruger (Blue Bulls)
VERDICT: Play-off contenders again
Sport | Rugby Union
for full-back at Saracens for much of
last season and was outstanding for
them. Toby Flood could soon find
himself under pressure if he contin-
ues to progress.
Kyran Bracken is associated with
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Leicester hold aloft
the Premiership
trophy in May
Picture: GETTY
SALE SHARKS
KEY INS: Aston Croall
(Harlequins), Rob Miller
(Newcastle), Apolosi Satala
(Gloucester), Robin Sowden-Taylor (Cardiff)
KEY OUTS: Luke Abraham (Lyon), Rob O'Donnell
(Rotherham), Oriol Ripol (Worcester), Dean
Schofield (Toulon), Lee Thomas (Lyon), Richard
Wigglesworth (Saracens), Brent Cockbain, David
Doherty, Dafydd James (all released)
VERDICT: Much improvement needed
35
BATH RUGBY
KEY INS: Tom Biggs
(Newcastle), Ross Batty
(Rotherham), Mark McMillan
(Glasgow), Lewis Moody, Sam Vesty (both
Leicester), Simon Taylor (Stade Francais)
KEY OUTS: Daniel Browne (Leeds), Ryan Davis
(Exeter), Rob Hawkins (Leicester), Nicky Little
(Bristol), Joe Maddock (Treviso), Michael
Stephenson (Leeds)
VERDICT: Serious contenders
EXETER CHIEFS
KEY INS: Luke Arscott
(Bristol), Garrick Cowley (Esher),
Ryan Davis (Bath), Ignacio Elosu
(Viadana), Andrew Higgins (unattached), James
Phillips (Bristol), Jon Vickers (Northampton), Chris
Whitehead (Wasps)
KEY OUTS: Richard Bolt, Sean Marsden (both
Bristol), Matt Cornwell, Nick Greenhalgh (both
Northampton)
VERDICT: Survival is the key
GLOUCESTER
KEY INS: Matt Cox
(Worcester), Brett Deacon
(Leicester), Jim Hamilton
(Edinburgh)
KEY OUTS: Marco Bortolami (Aironi), Gareth
Delve (Melbourne), Adam Eustace (Northampton),
Apolosi Satala (Sale), Greg Somerville
(Melbourne), Semi Tadulala (Leeds)
VERDICT: Bryan Redpath’s men are set for another
season of transition
HARLEQUINS
KEY INS: Peter Browne
(Newcastle), Tom Casson (unat-
tached), Maurie Fa'asavalu (St
Helens RL), Joe Gray (Northampton), David Moore
(Leinster), Ollie Smith (Montpellier)
KEY INS: Aston Croall (Sale), Tani Fuga (Bristol),
Seb Jewell (Wasps), Nils Mordt (Saracens), David
Strettle (Saracens), Gonzalo Tiesi (Stade Francais),
VERDICT: Steadied the ship after “Bloodgate”,
could now sneak into the play-offs
LEEDS CARNEGIE
KEY INS: Daniel Browne (Bath),
Warren Fury (Wasps), Sean
Hohneck (Viadana), Michael
Stephenson (Bath), Semi Tadulala (Gloucester),
Steve Thompson (Brive)
KEY OUTS: Scott Armstrong (Northampton), Peter
Bucknall (Leicester), Calum Clark (Northampton),
Joe Ford (Northampton), Erik Lund (Biarritz), Andy
Gomarsall (released)
VERDICT: Could surprise a few
LEICESTER TIGERS
KEYS INS: Horacio Agulla
(Brive), Peter Bucknall (Leeds),
Rob Hawkins (Bath), Lee Robinson
(Bristol), George Skivington (Wasps)
KEYS OUTS: Mefin Davies (Ospreys), Brett Deacon
(Harlequins), Lewis Moody (Bath), Johne Murphy
(Munster), Greig Tonks (Northampton), Sam Vesty
(Bath), Robbie Harris (released), Harry Ellis, Ben
Kay, Aaron Mauger (all retired)
VERDICT: Are there too many big-name exits?
LONDON IRISH
KEY INS: Darren Allinson
(Cardiff), Guy Armitage, Sam
Edgerley (both Wellington
College), Brian Blaney (Leinster), Daniel Bowden
(Crusaders), Marland Yarde (Whitgift School)
KEY OUTS: Peter Hewat (Suntory, Japan), Charlie
Gower, Andy Perry (both released), Mike Catt,
Danie Coetzee, Peter Richards, John Rudd (all
retired)
VERDICT: Could well push for a play-off place
SARACENS
KEY INS: Kelly Brown (Glasgow),
Deon Carstens (Sharks), Nils
Mordt (Harlequins), Matt Parr
(Nottingham), David Strettle (Harlequins), Matt
Stevens (unattached) Richard Wigglesworth (Sale)
KEY INS: Matius Aguero, Fabio Ongaro (Aironi),
Richard Haughton (Wasps), Tom Mercey
(Northampton), Glen Jackson, Justin Marshall,
Michael Owen, Moses Rauluni, Kevin Sorrell (retired)
VERICT: The team to beat