BUSINESS WITH PERSONALITY
Issue 1,365 Friday 15 April 2011
As Glencore unveils its London mega-float escalate on
MEET THE 71-YEAR
OLD ADVENTURER
IN THE HOT SEAT
▲
COMMODITIES
BY RICHARD PARTINGTON
COLOUR and excitement returned
to the City yesterday as Glencore
announced a former French foreign
legionnaire, Algerian war veteran,
author, explorer and financier as its
new chairman. Simon Murray (pic-
tured) will be tasked with leading
the firm’s up-to $11bn (£6.7bn)
float, valuing it at about $60bn, the
details of which were confirmed
yesterday.
The move heralded a return to
the days when interesting and com-
plex characters, rather than faceless
executives, ran the City.
Earlier this week, Murray said:
“This is very exciting, but you are
talking to someone who has been
chased by a leopard. You are talking
to someone who has been shot at
with a machine gun and missed.”
Murray, whose tales of derring-do
include carrying two severed heads
in his backpack during his time
in the French Foreign
FTSE 100 ▼5,963.80 -46.64 DOW ▲12,285.15 +14.16
Bond yields
Greek debt
concerns
Legion, was born in Leicester in cen-
tral England. As a teenager in 1960
he joined the Foreign Legion on a
whim, going on to fight for five
years in Algeria. He later wrote a
bestseller, Legionnaire, about his
time in north Africa.
It was made into a film in 2002.
Educated at Bedford School, one
of England’s oldest public schools,
Murray was turned down by the
British Army before signing up with
the Foreign Legion.
“I think perhaps I was just a
young buck without much confi-
dence in himself setting an extreme
challenge to see if he could hack it
in a man’s world,” he says in his
book.
He has since run a 240km race in
the Moroccan desert, climbed
Mount Everest and
become the old-
est man to
w a l k
unsup-
ported to
the South
Pole. Glencore unveiled
its blockbuster initial
public offering
(IPO) to the
NASDAQ ▼2,760.22 -1.30
www.cityam.com
market yesterday, following months
of speculation.
The Swiss-based firm, which mar-
kets and produces metals and other
commodities, is seeking to raise
between $6.8bn and $8.8bn in a
London listing, making it the biggest
float ever offered in the capital.
A secondary share offer of approx-
imately $2.2bn worth of existing
stock in the company will be sold in
Hong Kong.
The deal will value Glencore at
about $60bn, making it one of the
top 20 London-listed firms by mar-
ket capitalisation and sending it
straight into the FTSE 100.
It will be just the third firm to
attain blue chip status on its first
day of trading, following BT in 1984
and BG Group in 1986.
The firm is aiming to complete its
IPO in May, and will use $3.2bn of
the proceeds to buy Kazakhstan
mining group Kazzinc.
It will also pay off debts and use
the funds to provide working capital
for the next three years.
Senior management in the
company, including chief exec-
utive Ivan Glasenberg, will
become billionaires
overnight, although they
will be locked into shares
for five years.
Glasenberg, who owns
£/$ 1.63 unc £/¤ 1.13 unc ¤/$ 1.45 unc
FREE
▲
EUROZONE
BY JULIAN HARRIS
GREECE will today present fresh austeri-
ty and privatisation plans in an attempt
to convince markets it can tidy up its
finances and avoid restructuring its
debt.
“The measures which we will
announce will send a message to mar-
kets: Greece now has credibility, a plan
and a prospect which guarantee that
we will meet our targets,” government
spokesman George Petalotis said, deny-
ing debt restructuring plans.
The government is expected to
a 15 per cent stake in the firm, will announce sell-offs, benefit cuts and
be made into one of the world’s rich- effective tax hikes to save about €23bn
est men following the IPO. (£20bn) to bring its budget deficit to
Almost 500 partners in the firm about one per cent in 2015 from about
will also become millionaires in the 10 per cent in 2010, officials said. Two-
deal, but will also be blocked from thirds of this would come from spend-
selling their shares immediately fol- ing cuts and one third from revenues.
lowing the float. Worries that Greece will be forced to
Former BP chief executive Tony restructure its massive government
Hayward will join Murray on debt saw Greek bond yields surge yester-
the board as a sen- day. Markets were reacting to German
ior independ- finance minister Wolfgang Schaeuble’s
ent director, warning that “additional steps” may
as he begins have to be taken if research suggests
to rebuild that Greek debt is not sustainable.
his busi- The yield on two-year Greek bonds hit
n e s s 18.4 per cent, while five-year yields
career briefly topped 18 per cent and 10 year
a f t e r yields rose to a euro lifetime high of
departing 13.61 per cent.
the oil Greece “needs more time” to con-
giant amid vince investors that its reform pro-
the Gulf of gramme is on track, finance minister
Mexico oil George Papaconstantinou also said.
spill crisis last It is unclear when Greece will be able
year. MORE: to return to the financial markets for
P4-P5 funding, Papaconstantinou admitted.
A review of the Greek position is due
to be published in June, written by the
European Central Bank (ECB) and
European Commission.
Senior ECB official Olli Rehn hit back
yesterday, insisting: “We do not see debt
restructuring as an option. Instead we
are engaged in a revised and updated
debt sustainability analysis, which we
will do with the IMF and present in due
course,” Rehn said.
Certified Distribution
31/01/11 - 27/02/11 is 107,265
 2 News
Glass is both half full and half empty
EDITOR’S LETTER
ALLISTER HEATH
GLASSES can either be half full – or
they can be half empty, depending on
one’s temperament: optimist or pes-
simist. But when it comes to economic
conditions, and prospects for invest-
ments, jobs, incomes and growth,
there is enough material to make both
sides happy. My own take is moderate
medium-term optimism, combined
with longer-term pessimism. Another
debt and macroeconomic crisis is
brewing, but there are also plenty of
good things going on in the world.
Let’s first look on the bright side.
Surveys show that G7 economic activi-
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WHAT THE OTHER PAPERS SAY THIS MORNING
BOSCH WARNS JAPAN CRISIS WILL
SLOW GLOBAL GROWTH
The impact of last month’s Japanese
earthquake will cut global economic
growth by a quarter of a percentage
point and could put a big dent in
planed increase in car production
this year, the head of the world’s
largest car parts supplier warned.
Franz Fehrenbach, chief executive of
Bosch, said damage to Japan’s indus-
trial base would slow momentum of
the world economy.
SWISS JULIUS BAER PAYS BERLIN
€50M TO SETTLE TAX EVASION CASE
Julius Baer became the first Swiss pri-
vate bank to reach a settlement with
the German authorities over its
potential role in helping rich cus-
tomers to evade taxation with a one-
off €50m (£44m) payment. German
tax authorities have gone to great
lengths to track down tax evaders,
ty in the coming months will be
strong. It remains to be seen how
much the UK rebounded in the first-
quarter, but growth is back, despite
falling take-home pay and retail sales.
The global economy remains solid,
despite a slowdown in China, the
Eurozone’s woes, the geopolitical crisis
in North Africa and the Middle East
and Japan’s nuclear catastrophe.
American credit constraints are eas-
ing, with banks increasingly able to
lend, as Ian Harwood, an advocate of
the bullish case at Evolution Securities,
points out. This is documented by Fed
loan officers’ surveys, PayPal small
business lending data and the month-
ly NFIB survey (now at its highest since
the start of 2008).
In the US, payrolls growth has
firmed (despite a setback yesterday),
unemployment has begun to dip and
there is less talk of a jobless recovery
(though there is still a huge way to go
and millions fewer jobs than there
once were). In Britain, the private sec-
tor is creating far more jobs than are
Figures prove that economic
migration is anything but bad
IMMIGRATION boosts the economy
and subsidises the UK’s welfare state,
several academic institutions said
yesterday, as the proposed cap on
immigration came under wide-
spread criticism.
“Immigrants contribute more in
taxes than they use in services,” said
Sam Bowman of the Westminster-
based Adam Smith Institute.
“Home Office research suggests
that is equivalent to 1p off the basic
rate of income tax,” Bowman
explained. “Immigrants don’t drain
the welfare state, they subsidise it.”
Earlier in the year the govern-
ment’s statistics office revealed that
foreign-born people are less likely to
claim state benefits than their UK-
born counterparts in nearly all
British regions and countries.
The UK’s engineering sector is set
to suffer from the new regulations,
the Institution of Engineering and
Technology (IET) said yesterday.
“These changes to the immigra-
tion system will not help our engi-
including the purchase of stolen
client information.
LIBERTY SELECTED AS PREFERRED
QUINN BIDDER
Liberty Mutual, the US insurance
company, has been selected as pre-
ferred bidder for Quinn Insurance,
Ireland’s second largest general insur-
er, which was placed in administra-
tion by the Irish regulator last year
over breaches of insolvency rules. The
deal is one of several announced yes-
terday as creditors closed the net on
founder Sean Quinn.
LISTING THREAT TO PLANS FOR NEW
UBS BASE
Plans by UBS to build a new head-
quarters in the City of London’s
Broadgate estate could be under
threat from English Heritage, which
is considering a historic listing for
parts of the 25-year-old Arup-designed
office campus. The conservation
group is considering recommending
a Grade II listing.
being cut by the state. March’s UK com-
posite purchasing managers index
showed the strongest jobs growth
since October 2007. Companies are
generating cash and profits. Business
investment and employment are ris-
ing. Margins are being squeezed by
commodity and oil prices, but earn-
ings and revenues are still growing.
So much for the bullish case. There
is also plenty of depressing news. In
the UK, inflation remains too high,
which is cutting wages, consumer
spending and hitting the public
finances. Voters seem unaware that
interest rates will eventually have to
rise as monetary policy is normalised.
The sovereign debt crisis in the
Eurozone’s periphery is intensifying –
and while Barack Obama is finally try-
ing to cut the massive US budget
deficit, neither he nor the Republicans
seem really serious about acting.
Eventually – perhaps in ten years’ time
– the US will either have to act or face a
crisis that will make the sub-prime
debacle look like a walk in the park.
neering sector to contribute to eco-
nomic recovery in the UK,” said IET
director Dr Tony Whitehead.
“We currently have a national
shortage of engineers and techni-
cians, which has a negative effect on
the UK economy.”
“Populist immigration policies are
damaging to economic growth,” said
Jens Tholstrup of Oxford Economics,
earlier in the week.
Unemployment, currently at 7.8
per cent in the UK, is not exacerbated
by large-scale immigration, accord-
ing to Michael Clemens of the Centre
for Global Development.
Following EU expansion in 2004,
there was a sudden influx of just
under half a million eastern
Europeans to the UK.
Yet a Bank of England report in
2007 said that the wave of immi-
grants “appears to have had little or
no discernible effect on the unem-
ployment rate or any other labour
market aggregate for that matter.”
by Julian Harris
BURGER INVESTORS EAGER FOR A
TASTE OF LATIN AMERICA
American investors rushed to take
advantage of a rare opportunity to
gain blue-chip exposure to the grow-
ing Latin American economies when
the world’s biggest McDonald’s fran-
chisee started trading in New York
yesterday. Shares in Arcos Dorados
rose nearly 25 per cent above their
IPO price of $17 (£10.40) on the New
York Stock Exchange yesterday.
DIXONS PULLS OUT OF SPAIN
Dixons Retail, the owner of Currys
and PC World, confirmed that it was
pulling out of the Spanish market
yesterday. The company said that the
decision was made “due to a continu-
ing weak consumer environment and
continuing losses of the business,
together with the group’s plans to
focus on combined electrical and
computing stores”.
Closer to home, three-year yields on
Greek debt hit a monstrous 18 per cent
yesterday. Greece will eventually have
to default on part of its debt. But the
fact that this could happen before new
European procedures are in place in
2013 means that there will be no
mechanism for a forced restructuring.
It would have to be “voluntary”, which
will be interesting.
Last but not least, China’s forex
reserves soared 24 per cent over the
past year to $3.04 trillion, with the
cash recycled into securities, pushing
down yields on US and other govern-
ment debt and stoking future bubbles.
This very process was one of the key
drivers of the boom and bust – yet
nothing has changed. The reserves will
come in handy when Beijing eventual-
ly sorts out the Chinese banking sys-
tem, which is nursing lots of bad debt
– but in the meantime the much-need-
ed repricing of credit and risk is not
taking place. Have a great weekend.
allister.heath@cityam.com
Follow me on Twitter: @allisterheath
Cable in row
on migration
POLITICS
▲
BY JULIET SAMUEL
THE COALITION was thrown into
confusion last night after business
secretary Vince Cable came out to
criticise Prime Minister David
Cameron’s stance on immigration
and then later said he backed govern-
ment migration policy.
Cable said that Cameron’s promise
to limit immigration to “tens of
thousands, not hundreds of thou-
sands” was “very unwise” and “risks
inflaming extremism”.
Asked if this meant that he did not
support his own government’s policy
of an annual 20,700 visa cap for non-
EU workers, Cable backtracked, say-
ing: “We are completely united
behind the immigration policy.”
The business secretary’s interven-
tion comes as top Tories and Liberal
SIR RICHARD BRANSON TO MAKE BID
TO BUY BACK FORMER VIRGIN RADIO
Sir Richard Branson is attempting to
buy back the former Virgin Radio 14
years after selling the UK radio group.
The Daily Telegraph understands Sir
Richard's Virgin Radio International
will make a bid today for Absolute
Radio. The radio group is being sold
by its Indian owner TIML Radio, part
of Bennett Coleman.
BRICS WARN OVER COMMODITY
PRICES
The roller-coaster path of commodity
prices threatens the global recovery,
the BRICS group of new economic
powers warned. “Excessive volatility
in commodity prices, particularly
those for food and energy, poses new
risks for the ongoing recovery of the
world economy,” they said in a joint
statement, released as the nations
met for their third summit.
CITYA.M. 15 APRIL 2011
NEWS | IN BRIEF
BA crew won’t strike over Easter
British Airways cabin crew will not
strike over the Easter and royal wedding
bank holidays, the airline and Unite
union said in a joint statement yester-
day. BA’s new chief executive Keith
Williams and Unite boss Len McCluskey
have agreed to extend a prior deadline
of 15 April for any strikes to be
announced, meaning crunch talks can
continue and Unite will hold off from
calling disruptive action over the holi-
days. Both parties said they would con-
tinue to work towards “lasting peace”.
Hammerson chair for Lloyd’s
John Nelson, chair of FTSE 100 proper-
ty company Hammerson, is believed to
be a front-runner for the role of chair-
man of Lloyd’s of London, the UK’s
biggest insurer. The firm’s current
chair, Lord Levene, will step down this
year, leaving vacant a post that is seen
as an ambassadorial role for the British
insurance industry. Nelson has previ-
ously worked at Lazard, Kleinwort
Benson and Credit Suisse First Boston.
He is currently a front-runner among a
list of candidates, according to a report
from Sky News.
Democrats seek to position them-
selves for local elections on 5 May.
A spokesman for deputy Prime
Minister Nick Clegg also criticised
Cameron: “It’s not the language the
deputy Prime Minister or any Liberal
Democrat would use in a speech
about immigration.”
The coalition partners are keen to
distinguish themselves and appeal to
their bases during the campaign,
with Cameron telling voters in
Hampshire – a key Tory/Lib Dem bat-
tleground – that “for too long, immi-
gration has been too high”.
But he added: “Our country has
benefitted immeasurably from
immigration.”
After business criticised its origi-
nal policy earlier this year, the gov-
ernment decided to exempt those
earning over £150,000 from its visa
cap.
ENI SEEKS TO SHIP LIBYA OIL TO ITALY
Eni, Italy’s biggest energy company by
market value, said yesterday it plans
to transport as much as possible of its
own oil stored in a Western Libyan
terminal to Venice for safety reasons.
“We are trying to lift as much equity
oil as possible” from the Mellitah ter-
minal via a tanker to Venice, said Eni.
“No specific time frame is available,
but we hope to have one [tanker] in a
few days.”
SPAIN MOVES TO CLAMP DOWN ON
HIGH-INTEREST DEPOSITS
Spain’s ailing savings banks are rush-
ing out a slew of aggressively priced
products for savers ahead of an initia-
tive by the government and the Bank
of Spain to limit money-losing
deposits. The Finance Ministry has
outlined new draft rules aimed at
limiting the interest rates that banks
can pay for deposits.
CITYA.M. 15 APRIL 2011 News 3

LEADERS UNITE ON GADDAFI

City hiring spree to
drive office squeeze
ing,” said Dan Bayley, head of central

▲
PROPERTY
BY MARION DAKERS
LONDON-BASED banks will need an
extra 1.6m square feet of space by 2014
to accommodate an expected hiring
spree, research out today claims.
BARACK Obama (top left) has aligned himself with Nicolas Sarkozy (centre) and David Cameron by committing to support military “To put this into perspective, this is
action in Libya until dictator Gaddafi is gone. The leaders write that the world will be guilty of an “unconscionable betrayal” if the the equivalent of four extra Shards or
Libyan leader is left in place, putting the fate of citizens who have held out against the dictator in the hands of a merciless militia five extra Heron Towers – good news
intent on revenge. Colonel Gaddafi must “go and go for good” before the rebuilding of Libya can begin, they say in today’s Times, reject- for the City in particular as this is
ing demands for an immediate ceasefire and a negotiated exit for the Libyan dictator, which could have left his family in charge. where most of the banks will be look-
London at BNP Paribas Real Estate,
which commissioned the research.
Banks and financial services compa-
nies will add a total of 11,500 extra
employees over the next three years,
the survey predicts.
Three quarters of the banks sur-
veyed said their business will grow
over the next three years, with 55 per
cent adding that they will increase
head counts during this period.

Euroset float
cancelled as
buyers dither than their European counterparts.
▲

CAPITAL MARKETS
BY DAVID HELLIER
THE already shaky climate in the
London new issues market worsened
yesterday as the Russian mobile phone
retailer Euroset pulled its £800m issue.
While the deal was overshadowed
by Glencore’s announcement,
Euroset’s flotation is the latest smaller
planned initial public offering (IPO) to
have been dogged by uncertainty
because of nervousness in the mar-
kets. Investors are increasingly unwill-
ing to pay for what they deem to be
overvalued stock.
The decision to pull the float was
taken around lunchtime, according to
bankers close to the deal.
Three issues have been pulled from
the London market in the past couple
of weeks: Topaz Energy, which wanted
to raise £300m; on Tuesday the online
payments group Skrill pulled its £80m
cash-raising; and the vacuum technol-
ogy group Edwards last week pulled its
£375m offer.
There were also three Russian floats
pulled from the market earlier this
year. Market experts are talking about
a “buyers’ strike” in the London mar-
kets, which are suffering far more
Experts say that the expectations of
sellers are currently higher than they
ought to be given the scepticism of
potential buyers. Potential investors,
they say, have also been spooked by
sharp price declines in two deals that
priced at the end of last week, Perform
and Austrian group AMAG.
The Euroset deal was expected to
net Russian billionaire Alexander
Mamut more than £500m. Mamut is a
shareholder in the troubled retail
group HMV and he is also expected to
subscribe for shares in Nomos Bank, a
Russian IPO set to price within the
next few days.
Euroset said in a statement that
“the shareholders and management
team remain confident of the strong
fundamentals for Euroset and will
continue to develop the business in
line with the existing strategy.”
Alfa Capital, Credit Suisse, Goldman
Sachs and VTB Capital were the bank
advisers on the deal.
Banking sources were saying even as
recently as Wednesday that the deal
would push ahead, although very like-
ly on a reduced scale.
Etalon, a Russian property group, is
expected to price shortly.

Ireland passes US e-book sales

key stress test overtake print
▲

EUROZONE
IRELAND yesterday said it had passed a
crunch review of its economic progress
by creditors without any penalty and
ratings agency Fitch upgraded its out-
look in some rare good news for the
debt-ridden country.
“The troika [EU, IMF and ECB team]
have informally signed off on the first
quarter,” finance minister Michael
Noonan said. The central bank cut its
economic growth forecast for 2011
from one to 0.9 per cent. But ratings
agency Fitch left Ireland’s sovereign
rating at BBB+, upgrading its outlook
from ratings watch negative to out-
look negative, saying its economy was
stablising. BANK OF IRELAND: P8
MEDIA
SALES of electronic books (e-books)
have overtaken those of print books
in the US for the first time ever,
according to data published by the
Association of American Publishers.
Revenues from e-book sales soared
169 per cent to $90.3m (£60m) dur-
ing January and February of this
year while sales in paper books
dropped 25 per cent to $81.2m over
the same period.
Publishers blamed the print
decline on bad weather, low con-
sumer confidence and Borders, the
high street books retailer, going
bust. E-books are overall more prof-
itable due to low distribution costs.
4 Focus on Glencore CITYA.M. 15 APRIL 2011

MEET THE ADVISERS

DAVID
WORMSLEY
CITIGROUP
BANKING rainmaker David Wormsley,
widely known in the City as “The
Worm”, is leading Citigroup as joint
global co-ordinator and bookrunner on
the Glencore listing.
As chairman of UK investment bank-
ing at Citi he has been at the heart of
several high-profile deals, including a
key role in the sale of airport operator
BAA to his client Ferrovial for £10.1bn
amid fierce competition.
He recently came under fire from
former friend Guy Hands over the sale
of British music group EMI to the pri-
vate equity tycoon’s Terra Firma vehicle.
Hands lost a multibillion-dollar lawsuit
last year after he tried to claim
Wormsley tricking him into buying
EMI.
Morgan Stanley and Credit Suisse
also acted as joint global co-ordinator
and bookrunners on the Glencore deal.
Bank of America Merrill Lynch and
BNP Paribas will act as joint bookrun-
ners. Barclays Capital, Société Générale
and UBS will be co-bookrunners.
Liberum Capital is also involved.
On the legal side, Adrian Cartwright
is leading City law firm Clifford Chance
as the adviser to the banks on the
Glencore IPO. A partner at the firm
since 2002, he has recently advised AZ
ADRIAN
CARTWRIGHT
CLIFFORD CHANCE
Electronics on its $900m (£550m)
IPO; and Volkswagen on its £3.9bn
rights issue. He joined the firm from
Linklaters in 1999.
A Linklaters team led by partners
Charlie Jacobs and Patrick Sheil repre-
sented Glencore. Jacobs has been at
the firm since 1990, while Sheil joined
from US firm Fried Frank Harris Shriver
& Jacobson in 1995.
Finsbury was Glencore’s chosen PR
firm, with a team led by Guy Lamming.

Get on your bike on your Float reveals

City Break to Holland dominance of
mining giant
in the marketable thermal coal mar-
▲
COMMODITIES
BY JULIET SAMUEL ket (28 per cent) is one reason for the
trader to seek a dual-listing in Hong
GLENCORE’S transformation into a Kong and London, a plan first revealed
publicly listed company has forced the by City A.M. in December (see below),
commodities giant to lift the lid on rather than staying in London alone.
some of its most closely guarded busi- The $2.2bn listing in Hong Kong
ness secrets, revealing the true extent will give it ready access to insatiable
of its dominance in the global supply Chinese demand for coal.
of raw materials. But the trader also boasts owner-
The newly published financial ship of mines the world over from
information shows that the firm has a Chile to Kazakhstan as well as stakes
60 per cent market share in mar- in FTSE 100 miner Xstrata and alu-
ketable zinc metal (zinc that is suit- minium producer RUSAL.
able for trading on markets), and a 50 In its “intention to float” docu-
per cent market share in zinc concen- ment, the firm makes a strong pitch
trates and copper metal. to investors based on its “strong repu-
Its market share in global produc- tation over decades as a reliable sup-
tion terms is 13 per cent share in zinc, plier of quality products on a timely
14 per cent in nickel and 23 per cent basis”.
in cobalt. Overall, the compa- RICK GRANT INTERVIEW P27 It adds that
PAT FREE

ny trades in and its dual role

E OUT
LONDON TO LOAS-F
www.cityam.com
17 December 2010
Issue 1,287 Friday

produces 16 differ- as a miner

T
IN £30BN MEG LOA
ent kinds of com- and mar-
modities, from keter “makes company, both

grains to thermal share of the

Glencore’s the French cosmetics
surprised the markets
their IPOs to Hong
by taking
Kong instead of

Kong expected to grab a offering

Europe. runs the city’s
The company that Exchanges and

coal. From one Hong action in Glencore’s initial

public
earnings less
share in the
ing to grab market commodities
exchange, Hong Kong

rules to make it
companies to float
easier
altered its
Clearing (HKE), recently for mining
in a bid to beef up
its resources listings. are tightening
EXCLUSIVE and And UK regulators of the rules.

mine alone, it fore- lucrative mining

volatile than
▲

nt
up their enforcemeas Hong Kong is
BY JULIET SAMUEL sector. had expected “At the same time
is Some observers for a sec- there is a general
THE Hong Kong
Stock Exchange to pick Hong Kong making it easier, regulators
bid to lure Glencorelisting, but few were antici- thought that European
mounting an aggressivethat looked set to
ondary more rigorous as
away part of a float
d dual listing.
pating a fully-fledge Glencore said: are becoming a bit downturn,” says

casts production of be the biggest in

Glencore
London’s history.
Internation
world’s biggest commodit
al, the
ies trader “There
valued at £30bn,
and a mining giant public offering
is planning an initial
It is a huge source
those
are clearly
of
of
A source close to very powerful
of Hong Kong.
arguments in favourfunds and there
a dynamism about
the
a reaction to the
Edward Bibko, partner
at Baker &
it caused a num-
McKenzie. “I think look a bit more
ber of companies
to
seriously at alternative
s,” he added.
is based in Baar,
fees of up is such

9LVLW$PVWHUGDPDQG5RWWHUGDPERWKZLWKLQKDOIDQKRXURI$PVWHUGDP$LUSRUW 1.16m metric tonnes (IPO) that could generate

to £300m-£600m
which include
Citigroup and Credit
is being led by
for its advisers,
Morgan Stanley,
Suisse. The deal
Morgan Stanley’s
region.”
“There’s a lot of
equivalent
discussion about
another source
Hong Kong,” said matter. With a
familiar with the
strong Chinese presence,
the Hong
could offer
Glencore, which a turnover of
Switzerland, postedhas also accrued
$106.4bn last year.
It
assets valued at $66.3bn
and owns a
miner Xstrata.
third of FTSE 100 Willy Strothotte

of copper over the pure com-

Franck Pettigas. stock exchange Glencore chairman board of both
familiar with Kong access to the world’s currently chairs
the
According to people is muscling Glencore better investors. due to be replaced
Kong
the matter, Hong the Swiss-based biggest resources showed that Hong companies, but is in a board-room
Glencore chair- at Xstrata next year
in on the IPO of “tempted” to go Recent figures
world’s hottest IPO man Willy
firm, with Glencorelisting instead of Kong was the 2009, with compa- Strothotte also
shakeup. Glencore both
The LSE and

next five years. ahead with a joint primary base.

making London its
location during
be a blow for nies
A joint listing would world’s pre- the exchange.
as the modity pro-
raising over $51bn

Earlier this year, UC

(£32.3bn) on

Rusal, the alu-

chairs FTSE 100
miner Xstrata.
declined to comment.

ses
London’s status

nu
exchange and a

bo
and L’Occitane,
mier commodities

eds to cut dividends and

minium producer,
Kong, which is try-

Its strong presence

victory for Hong

ducers”.
k Cit
TOP IPOs OF ALL TIME
London to ISSUE
DATE
ISSUER INDUSTRY
ECONOMICS: P14-P15

PROCEEDS
($M)

Amsterdam 06/07/10 Agricultural Bank of China

20/10/06 ICBC
Commercial Bank
Commercial Bank
22,121.169
21,969.280
from 21/10/10 AIA Group Insurance 20,491.312

£
28 .99 18/03/08 Visa Other Finance 19,650.400
17/11/10 General Motors Manufacturing 18,140.100
one way
inc. taxes 12/10/98 NTT Mobile Commun Network Radio/TV/Telecom 18,051.872
02/11/99 Enel Electric Service 16,588.651
24/10/86 Nippon Telegraph & Telephone Telephone Comms 13,745.091
17/11/96 Deutsche Telekom Telephone Comms 12,487.026
We fly from Gatwick, Luton and Stansted. Price correct as at 6 April 2011 Available to book now for travel between 23/05/06 Bank of China Commercial Bank 11,186.350
21 April and 20 June. Variable charges for hold baggage apply and some payment methods 14/04/2011 Glencore Commodities trader 11,000.000
attract a handling fee. See website for details.
Source: Thomson Reuters
CITYA.M. 15 APRIL 2011 Focus on Glencore 5

Former BP boss
THE STORY BEHIND A
Secretive chief takes
Tony Hayward (far
left) will join the
Glencore board COMMODITY TITAN
when it becomes a
publicy quoted

centre stage
THE COMMODITY boom has helped
company. Hong to turn Glencore into a powerhouse,
Kong businessman creating huge profits on massive rev-
Simon Murray enues.
(centre) will be the Driven by massive demand from
chairman of the China, commodity prices have
firm, while US MINING soared in recent years, turning the

▲
businessman Swiss-based firm into one of the
William Macaulay
BY RICHARD PARTINGTON largest privately held companies.
(right) will also Last year, it had pre-tax profits of
join the board PUBLICITY-SHY chief executive Ivan $6.2bn (£3.8bn) on revenues of $145bn.
Glasenberg will end years of secre- It said yesterday it expects to
cy by putting the private firm cen- announce a $350m shareholder divi-
tre stage in an initial public dend alongside its half-year results
offering (IPO). this August.
The former South African and Yet the timing of its listing plans
Israel champion race walker is comes as demand for commodities
known to be wary of the limelight, slows and prices fall, although
preferring relative anonymi- observers still view the firm
ty. favourably.
HOW GLENCORE WILL SIT IN FTSE 100 Yet the 54-year-old has
recognised the constraints
Founded in 1974, Glencore was
initially focused on the physical
COMPANY MARKET COMPANY MARKET of a private partnership on marketing of metals, minerals and
CAP (£M) CAP (£M) Glencore, despite the scruti- crude oil.
ny it will now come under In the early 1980s, the firm
1 Royal Dutch 10 Xstrata 43536.5 from new shareholders and acquired an established Dutch grain
Shell A and B 79692.03 11 AstraZeneca 41934.01 the public gaze. trading company, later adding a coal
Glasenberg took the long trading unit.
60517.71 12 Anglo American 41721.13 road to the top, first start- It has since moved from purely
2 HSBC Hldgs 116496.6 ing as a coal trader for marketing commodities sourced
13 Lloyds Banking Group 41307.26 Glencore in 1983. He took a from third parties, into an extractor
3 Vodafone Group 91639.74 14 Standard Chartered 38588.68 quarter of a century to in its own right. It also holds smelt-
4 BP 87467.69 become chief executive of ing, refining and processing assets.
15 Barclays 37618.9 the Swiss-based firm, taking It first ploughed its cash into equi-
5 Rio Tinto 67329.89 16 Glencore approx. 37000 the top job in 2002, via sever- ty investments in 1987, when it
al senior positions in acquired a stake in a US aluminium
6 GlaxoSmithKline 64632.03 17 SABMiller 35647.18 Australia, Hong Kong and smelter, before it purchased a con-
7 BHP Billiton 55481.25 18 Tesco 32285.64 Beijing. trolling interest in 1988.
He has since built the firm Glencore now holds significant
8 British American 19 Diageo 30224.59 into a commodities power- stakes in several publicly listed
Tobacco 50512.42 20 Royal Bank Of house, as one of the world’s industrial firms, including Xstrata,
9 BG Group 50437.24 Scotland Group 25598.57
biggest privately held firms.
IVAN GLASENBERG Century Aluminium and Katanga
Mining.
 6 News CITYA.M. 15 APRIL 2011

US house approves
BP’s first AGM
since the Gulf
disaster last April
drew dozens of
vocal protestors

deal on Budget bill

ran out at midnight.
▲

US ECONOMY
AT the eleventh hour, the US House
of Representatives yesterday approved
a Budget deal cutting $38bn (£23.2bn)
in spending for the current fiscal
year, enabling the government to
keep operating until 30 September.
The House passed the bill by a vote
of 260 to 167, and sent it to the
Senate, which was set to pass the bill
late last night before existing funding
About one-fourth of House
Republicans defected because the
cuts were not deep enough and more
than half of Democrats rebelled
against cuts they feared would hurt
lower income Americans. The House
vote was the first act in a growing
political battle over spending and
debt, with Obama and Congress gear-
ing up for new fights over an increase
in the $14.3 trillion US debt limit.

Protests mar
WHEN
BP’s meeting
LIFE’S

▲
ENERGY
BY MARION DAKERS
BP management faced angry protests
from shareholders yesterday, as
investors concerned about Russian
deals, tar sands projects and the Gulf
UNPREDICTAB
BLE of Mexico disaster gave the company a
bloody nose in the annual vote.
BP said yesterday that prospective
Russian partner Rosneft has given the
IT’S firm more time to clear the path for its
£10bn share swap, though bosses yes-
BETTER terday remained cautious.
Chief executive Bob Dudley con-
firmed that BP had offered to buy out
Russian partner AAR to allow its deal
with Rosneft to go ahead, while chair-
man Carl-Henric Svanberg conceded:
“I don’t think it would be a possibility
to bring them on side more than we
thought we had.”
Dudley said the relationship with
TO AAR “is not dysfunctional, it’s noisy.
Our relationship is very good with
Rosneft, and with TNK, it’s not person-
al. It’s business.”
Svanberg stressed that Russia
remains a key part of BP’s strategy,
pointing out that the TNK-BP project
has delivered $16bn (£9.8bn) in divi-
dends since it was formed in 2003.
A sizeable minority of sharehold-
ers – 11 per cent – voted against BP’s
director remuneration report, while
five per cent rejected its annual report,
compared with last year when 91 and
99.8 per cent of voters approved the
respective resolutions.
BP’s first AGM since the Gulf disas-
ter last April drew dozens of vocal pro-
testors. Svanberg told the meeting
that five shareholders lobbying for the
rights of Gulf fisherman had been
barred from entry, while four people
shouting against BP’s Canadian tar
sands projects were dragged out of the
ExCel centre by security.

SHAREHOLDER VIEWS: WERE YOU HAPPY WITH

BE You can’t possibly predict what
lies ahead. Where you’ll go, BP’S AGM? Interviews by Marion Dakers and Eric Wilkens
who you’ll go with or what you
might take with you. ALLAN AITKEN | HORNCHURCH
Isn’t it better to be flexible?
Meet our Magic Seats.
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completely flat to give you tions about the Gulf and the chief executive
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answered them in his speech.”
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I’m happy for them to deal with Russia.”
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Aspirations (PCP): Indemnities may be required in certain circumstances. Finance is only available to persons aged 18 or over, subject to status. All figures are ing much more in renewables. BP's current philoso-
correct at time of publication but may be subject to change. Promoter is Honda UK, 470 London Road, Slough, Berkshire SL3 8QY. You do not have to pay the Final
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From 3 January 2012, if you have a larger van or specialist vehicle between 1.205 tonnes
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There are a number of options available to meet the standards including fitting an approved
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 8 News
NEWS | IN BRIEF
Next boss gets £1m bonus
Next boss Lord Wolfson was handed a
£1m bonus for last year, taking his total
remuneration to around £1.75m. Next
reported a nine per cent rise in pre-tax
profits to £551m in the year ending
January. Cost savings boosted the fig-
ures as the chain suffered a four per
cent fall in same-store retail sales. Next
forecast profit for the new financial year
to be between £520m and £570m, in
line with current market expectations.
The retailer will also pay its group prod-
uct director Christos Angelides £1m,
including a £500,000 bonus.
No European banks for ICBC
Industrial and Commercial Bank of
China, the world’s biggest bank by mar-
ket value, plans to increase its global
footprint by setting up new branches in
countries such as Brazil, India and
Pakistan, its chairman said yesterday.
But ICBC is not considering acquiring
European banks in the near term, chair-
man Jiang Jianqing said. The bank aims
to draw 10 per cent of its assets and
profit from overseas operations by
2016, up from four per cent now. ICBC
has been aggressive compared to other
Chinese banks in boosting its overseas
presence through acquisitions, although
on a much smaller scale than its west-
ern competitors. It acquired 80 per
cent of Bank of East Asia’s US business
in January for $140m (£86m).
ICELAND TO START REPAYMENTS IN SUMMER
Terry Smith launches an
attack on share buybacks
INVESTMENT
▲
BY ALISON LOCK
MAVERICK investor Terry Smith
attacked share buybacks as a tool to
destroy shareholder value and called
for a review of their use yesterday.
Smith, an outspoken financier who
launched fund manager Fundsmith
last year, attacked the practice of
using buybacks to raise companies’
earnings per share figure by cutting
the number of shares in circulation.
Fisher: Banks will cope after SLS
▲
BANKING
BANKS are well on the way to
preparing for the end of the Bank
of England’s special liquidity
scheme, according to Bank execu-
tive director Paul Fisher.
ICELAND will begin making debt repayments to Britain and the Netherlands this sum- In a paper on the Bank’s collater-
mer, using funds raised from the sale of assets from one of its collapsed banks, the coun- al policy published yesterday,
try’s Prime Minister Johanna Sigurdardottir (pictured) said yesterday. The country’s Fisher said:
coalition government survived a vote of no confidence earlier in the week. “The banks have made good,
Google cost surge
sees investors flee
TECHNOLOGY financial officer Patrich Pichette.
▲
BY JULIET SAMUEL Paid clicks – ads that generate rev-
enue whenever a user clicks on
GOOGLE posted a 15 per cent rise in them – rose 18 per cent, with cost-
pre-tax profits to $2.89bn (£1.76bn) per-click rising eight per cent.
in its first-quarter results last night, Google also revealed that it has
but investor panic over a 34 per cent hired another 2,316 staff in the first-
surge in costs saw its shares dive by quarter of this year, which in part
5.4 per cent in after-hours trading. explains its growth in costs. In addi-
Costs ballooned to $5.78bn, with tion, it spent $890m on property
sales and marketing spending rising and equipment, up from $239m in
69 per cent to $1.03bn and operat- the first-quarter of 2010.
ing costs up 20 per cent to $2.94bn. Much of the spending has gone
But the search giant said revenue towards an aggressive expansion in
growth of 27 per cent quarter-on- Google’s mobile and social network-
quarter justified the outlay. “These ing presence.
results demonstrate the value of “You’ve got expenses growing
search and search ads to our users faster than revenue and some peo-
and customers, as well as the ple were caught by surprise by the
extraordinary potential of areas like willingness of the company to
display and mobile,” said chief spend,” said BGC Partners analyst
Bank of Ireland reduces its loss as it
promises an update on capital raising
▲
BANKING letproof itself from future economic
shocks. Chief executive Richie
BANK of Ireland surprised the mar- Boucher says the bank is looking to
ket yesterday when it announced it foreign investors to help it stay inde-
scaled back its losses last year, but pendent.
warned its future remains challeng- Bank of Ireland, in which the state
ing. already holds a 36 per cent stake, will
It reported full-year losses of update the market in coming weeks
€609m (£544m), compared to about its capital-raising plans, and
€1.76bn in 2009, after negotiating a some of its subordinated bonds have
string of tough write-downs with its risen on speculation it will offer a
bondholders. debt for equity swap.
However, the group is still staring Boucher said: “It’s a clean story to
down the barrel of majority state understand. We have moved from
control after the central bank said it survival to stabilisation.”
needed €5.2bn in extra capital to bul- Most of the Irish banking sector
CITYA.M. 15 APRIL 2011
“Most share buybacks destroy value
for remaining shareholders,” he said.
“Simply by executing a share buy-
back rather than paying out divi-
dends, companies can inflate their
earnings per share and are almost
universally seen to have created value
for shareholders when mostly they
clearly have not.”
Smith, who is also chief executive
of broker Tullett Prebon, called for
more analysis of the causes of share
buybacks.
early progress in reducing their
use of the scheme, unwinding the
collateral swaps ahead of their con-
tractual maturities,” Fisher said.
“It is expected that the banks
will be able to generate liquidity
using their mortgage assets in the
private market or by raising fund-
ing through other markets,” he
added.
Colin Gillis.
“But Larry Page has signalled
pretty clearly that he is going to be
driving up expenses. If the expenses
are targeted and result in future rev-
enue streams, then good for Larry. If
not, that results in an undisciplined
spending approach.”
ANALYSIS l Google
$
640
620 578.25
14 Apr
600
580
560
3 Feb 23 Feb 14 Mar 1 Apr
has been effectively nationalised,
with Allied Irish Banks unveiling a
jaw-dropping €10.4bn loss.
ANALYSIS l Bank of Ireland
0.45
€ 0.28
14 Apr
0.35
0.25
17 Jan 4 Feb 24 Feb 16 Mar 5 Apr
www.houseoffraser.co.uk
 The Capitalist
10 EDITED BY CITYA.M. 15 APRIL 2011
HARRIET DENNYS
Got A Story? Email
thecapitalist@cityam.com
Follow The Capitalist
on Twitter: @citycapitalist

STOCK EXCHANGE VET The Vets’

chairman Les
TO STAGE WEST END Ames is in
MUSICAL COMEBACK talks to
appear in a
THE Stock Exchange Veterans dinner Stadium”, otherwise known as con- Seventies hits
last night had the largest turnout in crete in a presentational box. “It’s so
its 15-year history, with 470 brokers bad, it’s brilliant,” said one guest. revival show
out in force at The Brewery. The Capitalist also caught up with the
The event’s organiser Bill Sharp, Vets’ chairman Les Ames (pictured in a West
head of institutional sales at below), who found fame as a singer in
Alexander David, was delighted the 1970s after performing his End theatre
to “see so many old friends”, smash hit ballad Love Is All on
including Ron Martin, chair- Top of the Pops.
man of Southend United FC, Ames declined to sing a
Brian Winterflood of song last night – “it’s not that
Winterflood Securities and type of audience darling” –
Clive Sinclair-Holden, chief but revealed he is in talks
executive of Beowulf, the about taking part in a 70s hits
fastest-growing company on show in the West End. “But
AIM this year. I’m not sure I have the time,”
Later, Martin Pope, said Ames, mindful
sales trader at RBS, of his day job as
auctioned off head of deal-
the evening’s ing at WH
prizes, includ- Ireland. “It’s
ing “memora- a difficult
bilia from circle to
We m b l e y square.”

Left to right:
Michael Hicks, Tony
Carter, Brian
WEDDING CRASHER CityIndex, who is as we speak flying
TO BOISDALE of Canary Wharf for out to South India with two of his
Winterf lood, the grand opening of the latest colleagues to drive 3,500km from
Deborah Connors, whisky and cigar restaurant venture Cochin in Kerala to Shillong in
Julian Palfreyman from the group’s colourful propri- Meghalaya in a three-wheeled auto
and Charlie Brown etor Ranald Macdonald. rickshaw with a lawnmower-sized
at the Stock Actress Jessica Lowndes of teen engine.
Exchange Veterans “The roads are among the most
dinner at The dangerous in the world, even if you
Brewery are driving a normal car,” Herron
said. “And none of us are Hindu, so
if we are unlucky enough to get hit
by a truck, we don’t have a great
belief we will be reincarnated as a
Bollywood icon.”
Now that would be a story.

NOT TOO BIG TO FAIL

Piano man: Jools Holland at Boisdale
show 90210 had to cancel at the last
minute – much to the disappoint-
ment of Roger Hambury, managing
director of sponsor CityIndex – but
the presence of Nancy Dell’Olio and
Sky News political editor Adam
Boulton more than made up for the
loss.
Boulton was on mellow form as
he enjoyed the live jazz from Ray
Gelato and the Giants of Jive, telling
The Capitalist he is looking forward
to going back to his cub journal-
ism roots by doing a spot of
doorstepping.
The south doorstep of
Westminster Abbey on 29 April,
that is, where he will take up res-
idence to cover the Wedding Of
The Year.
BACK to Boisdale bleary-eyed the fol-
lowing morning for yet another
opening celebration in Cabot Place
– this time for “the launch of
lunch”.
No jazz and whisky here though;
instead, City leaders including
Simon Mansell, chief operating offi-
cer of GFT Global Markets, David
Wiggin, founder of Ptarmigan
Media and David Stuart, chief oper-
ating officer of Alpari, were treated
to a spirited defence of capitalism
by Mark Littlewood, director general
of the Institute of Economic Affairs
(below).
“In the good times, I don’t
remember people saying that since
the bankers created the wealth, it
wasn’t theirs to spend,” he said.
Littlewood went on to call the
interim report from the
Independent Commission on
Banking “deeply confused”.
“We seem to be too concerned
about preventing failure rather
than providing a system within
which banks can fail in an
orderly fashion,” he said.
“Finding a mecha-
nism to allow a bank
to go to the wall so
it is wound up sen-
sibly, as
Woolworths was
wound up, is the
Holy Grail.”

PASSAGE TO INDIA
HOWEVER, no-one could top the
exploits of Michael Herron,
global head of legal at
CITYA.M. 15 APRIL 2011
He earned £200m in six years.
Now we know why: Becht’s exit
reduced Reckitt’s value by £2bn
▲
CONSUMER
BY JOHN DUNNE
CONSUMER giant Reckitt Benckiser
saw up to £2bn wiped off its value yes-
terday after the shock announcement
that boss Bart Becht is standing down.
News of his exit stunned the mar-
ket and its share price dived by nine
per cent at one stage, eventually clos-
ing down 7.5 per cent at £31.15.
Becht has earned an estimated
£200m over last six years, with the
hefty pay and perks package justified
by a string of impressive results.
Becht’s long-term share options
and awards have soared in value as he
lifted Reckitt’s share price from £6
when it floated in 1999 to £35 last
year.
But the maker of goods such as
Nurofen and Cillit Bang has now been
left with a gaping hole to fill to bring
investors back on side.
Rakesh Kapoor, who is vice-presi-
dent of global category development,
will take on the role.
Andrew Wood, an analyst at
Sanford C Bernstein, said Becht’s
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IRUDIDPLO\RIGHHU
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retirement had been a shock.
“He is only 54 years old and we did
not anticipate it so soon.
“We know very little about the
character of the new CEO Rakesh
Kapoor.... there was no sense he was a
CEO in waiting.”
Becht will stay on as a part-time
adviser to Kapoor and the company’s
board until September 2012.
Kapoor is credited for growing the
business with the recent purchase of
SSL International, the Durex condom
maker and steering the company
through a tough consumer climate.
ANALYSIS l Reckitt Benckiser
p almost £110m of Reckitt shares
3,500 3,130.00
14 Apr
3,300
3,100
17 Jan 4 Feb 24 Feb 16 Mar
News 11
Switch off the
panic button until
the figures are in
WITH Becht’s departure follow-
ing that of finance chief Colin
Day last year, it’s not surprising
that the market is spooked. The
company is now without the
core team that led it so success-
fully through the last decade.
The £2bn man – that’s how
much the markets marked down
Chief exec goes out with a bang
the firm when they learnt of
Becht’s departure – will be a
tough act to follow.
There’s no doubt that replace-
CONSUMER
▲
ment Rakesh Kapoor has a lot to
BY JOHN DUNNE prove, and until he’s had a
chance to get his feet under the
BART Becht has spent more than a decade at the table the share price could be
helm of Reckitt Benckiser. During that time the dampened. But 25 years at the
value of the company increased five-fold and it has company must count for some-
become one of the most profitable consumer goods thing, and management will be
businesses in the world under his stewardship. He hoping that next week’s first-
took the role in December 1999 when Dutch deter- quarter figures will boost
gent maker Benckiser and Britain’s Reckitt & morale and restore value.
Colman merged. Nestle’s market cap fell by
He is one of Britain’s biggest £4bn when its finance chief Paul
charitable donors, giving Polman was passed over to take
charge in 2007, but the shares
to charity in 2009, after he col- quickly recovered and long-term
lected more than £90m on the performance has been strong.
back of rising stock options. Don’t hang Reckitt out to dry
He has a mansion in just yet.
Berkshire and is known for
his hands-on approach.
“After 16 years in the role, I
believe now is the right time BOTTOMLINE
5 Apr
to retire,” Becht said. BART BECHT Analysis by Elizabeth Fournier
243 ratings
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Hank53
Posted 4:13pm (Aug 12, 2010)
After that, anything would feel claustrophobic.
Melissa_55
Posted 5:37pm (July 5, 2010)
Is that the Rockies? Looks amazing.
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 12 Consumer News CITYA.M. 15 APRIL 2011

NEWS | IN BRIEF
Dunelm hit by material costs
ANALYST VIEWS: CAN WH SMITH CONTINUE
TO HIT TARGETS WITH CUTS? Interviews by John Dunne WH Smith raises
dividend as profit
British homewares retailer Dunelm said
rising raw material prices meant it was NEIL SAUNDERS | VERDICT

“
unlikely to be able to continue improving
its profitability at the rate of recent
years. The group, which runs 111 mostly It’s the familiar story of an increase in profits on the back of a decline in

jumps after cuts

out-of-town stores selling items such as overall sales, brought about by cost reductions and margin enhancements. The
kitchenware, lighting, wall art and rugs, danger is that as cost savings become more difficult to extract, the business will
said it was so far coping well with cost have a weaker consumer proposition and will continue to see sales slide; ultimate-

pressures and a tough consumer envi-
ronment. Sales at stores open at least a
year fell 1.3 per cent in the 13 weeks to
2 April, its fiscal third-quarter, in line
with the decline reported for the 39
”
ly this could damage profitability. We are not yet at that point, but on current
form this looks to be the inevitable direction that the firm is heading in.
RETAIL The results met City forecasts, and

▲
weeks of the financial year so far. KEITH BOWMAN | HARGREAVES LANSDOWN BY JOHN DUNNE the company said it now planned to

“Whilst, to date, our buying scale and
supply chain structure have provided
some protection, cost price pressures
are likely to continue over the coming
months,” Dunelm said.
Dixons shed jobs in Spain exit
“
grow with international expansion.
WH SMITH yesterday hiked its divi- WH Smith already has 24 interna-
The group’s reputation for consistent if somewhat unexciting growth dend by 18 per cent after reporting a tional outlets, including stores in
has again been enhanced. An early adoption of the now increasingly fashionable profit rise. Australia, India and Kuwait, and is
trend to concentrate on profit margins at the expense of sales has served the com- The stationer said first-half profits aiming to expand these to 40 this year.
pany well. Furthermore, despite understandably cautious comments with regards in the six months to 28 February rose The average spend in one of its trav-

Electrical goods retailer Dixons is clos-
ing its 34 loss-making stores in Spain
shedding around 1,200 jobs. The British
group, which said last month it was
looking at exiting Spain as it issued a
profit warning, said it made the decision
”
to the outlook, management is still attempting to push the boundaries. In all, WH three per cent to £64m on like-for-like
Smith continues to be rewarded with a positive (‘buy’) market consensus. sales that were down four per cent at
£686m.
Sales at stores open at least a year
fell five per cent, with a three per cent
NICK BUBB | ARDEN decline at its travel division exacerbat-
el outlets at airports, stations and hos-
pitals is just £3.50 while in the
company’s high street stores it is £5.50.
The dividend rise represents a lift to
7.2p per share.
Chief executive Kate Swann added

to close its PC City stores in the country
as a result of a continued weak con-
sumer environment. “The management
committee of PC City has informed the
employee representatives about the
decision in order to start appropriate
“
ed by a six per cent drop at high street
shops.
The figures for the first-half numbers are in line, as always, and there is Gross profit margins, however, were
not too much in the statement to get excited about. But the 18 per cent rise in the up 170 basis points, following a long-
interim dividend is a useful reminder that WH Smith continues to grind out mas- term trend in which the group has
sive surplus cash flow (for dividend growth and earnings per share enhancing steered away from low margin prod-
ucts like CDs and DVDs, focused on
yesterday: “In Travel we have grown
profit by nine per cent, demonstrating
the strength of the business model.
Our high street business continues to
be highly profitable and cash genera-
tive.”
WH Smith’s shares surged after the

”
share buybacks) and a five per cent yield is very attractive. There is overseas
actions for the compulsory redundancy growth across the board with store openings in hospitals and stations as better sourcing and better control of figures were announced, closing 5.4
scheme,” the firm said in a statement. well as in India. markdowns. per cent higher at 475.1p.

Debenhams boss to
retire as sales rise
RETAIL it made an underlying pre-tax prof- ment cuts and higher taxes.
▲

BY HARRY BANKS
DEBENHAMS said yesterday its
chief executive of eight years
would retire in September as it
posted a 4.5 per cent rise in first-
half profit and resumed its divi-
dend.
Rob Templeman will be succeed-
ed by Michael Sharp, the current
deputy chief executive, the depart-
ment store chain said.
Templeman, who has been at the
helm for eight years, will remain as
a consultant for up to one year
after his retirement.
Debenhams, which trades from
about 170 stores in Britain, Ireland
and Denmark and about 60 fran-
chised outlets in 24 countries, said
it of £129.2m in the six months to But Templeman said: “The trad-
26 February. ing environment has been difficult
That was slightly above analysts’ but Debenhams has now produced
consensus forecast of £128m and six consecutive halves of pre-tax
up from £123.6m in the same peri- profit growth in what has been a
od last year. consistently challenging retail cli-
Debenhams, ranked second after mate.”
employee-owned department store
John Lewis, said first-half sales rose ANALYSIS l Debenhams
3.2 per cent, with sales at stores p
open over a year down 1.5 per cent, 70 66.55
The firm, which ended the peri- 14 Apr
od with net debt of £351.6m, 66
returned to the dividend list for
the first time in three years with a
one pence payout. 62
Debenhams said it expects trad-
ing in its second-half to be difficult 58
as disposable incomes come under
pressure from inflation, govern- 17 Jan 4 Feb 24 Feb 16 Mar 5 Apr

Danone benefits PZ Cussons hit by

from price hikes mounting costs
▲

CONSUMER
▲

CONSUMER
FRENCH food group Danone stuck to its full-year
goals yesterday despite rising commodity costs and
tough economic conditions, after price hikes fuelled
stronger-than-expected first-quarter sales.
The world’s largest yoghurt maker with brands
like Actimel and Activia said business picked up in
all divisions, with water and baby food particularly
strong and it benefited from its dairy products merg-
er with Russia’s Unimilk last November.
Danone, which competes with Nestle and Unilever,
posted first-quarter like-for-like sales growth of 8.5 per
cent. It also confirmed its target of 6-8 per cent like-
for-like sales growth for 2011 and a full year operating
margin up 0.2 per cent at 15.4 per cent.
SOAP and shampoo maker PZ Cussons yesterday said
trading remains challenging pressured by higher raw
material costs, but sees more optimism for its next
financial year led by growth in Asia and Nigeria.
The maker of Imperial Leather soaps and Carex anti-
bacterial hand washes said results for its 26 January to
13 April period were in line with its expectations, but
the outlook to the end of its financial year at the end
of May will be hit by tough UK trading, the temporary
delay to Nigerian elections and raw material costs.
The group said the resilience of its more premium
brands in the UK, growth in Asia and the underlying
improvement in demand in Nigeria all gave it cause for
encouragement for its next financial year.
CITYA.M. 15 APRIL 2011 Economics 13

ECB sticks with its China’s reserves

pass $3 trillion
hawkish sentiment

assumed increases in energy prices,
▲
WORLD ECONOMY
CHINA’S foreign exchange reserves,
the world’s biggest, hurtled past the $3
trillion (£1.8 trillion) mark in March,

Economists were surprised by the jump in US unemployment
▲
EUROZONE ECONOMY
BY EUGENIO MONTESANO
TENSIONS in the Middle East could
lead to upward pressure on inflation
in the Eurozone and affect economic
growth, research from the European
Central Bank (ECB) showed yesterday.
“Risks to the medium-term outlook
for price developments remain on the
upside,” reads the ECB’s April bulletin.
Picture: REUTERS “They relate to higher than
not least owing to ongoing political
tensions in North Africa and the
Middle East.”
The inflation rate in the Eurozone
was registered at 2.6 per cent in March.
The ECB’s bulletin said it will “con-
tinue to monitor very closely all devel-
opments with respect to upside risks
to price stability”.
Last week the ECB raised rates for
the first time in almost three years.
up 24.4 per cent over the last year, its
central bank said yesterday.
The reserves rose by $197bn
(£120.6bn) in the first-quarter of 2011
and have now nearly tripled Japan’s
holdings, the world’s second-biggest
official currency reserves.
Heavy criticism from the US and
other governments is mounting
around China, which is accused of dis-
torting trade and the global economy.

Shock upturn “It is great recognition... CITY A.M. has

in US jobless a fantastic reputation in the city and

we are proud to have won”
Deloitte (Professional Services Firm of the Year)

benefit claims
will be discouraging.”
▲

US ECONOMY
BY JULIAN HARRIS
CLAIMS for unemployment benefits
in the US unexpectedly shot up last
week, official data showed yesterday.
New claims have been on a down-
ward path for around two years, but
jumped by 27,000 in the week end-
ing 9 April to total 412,000.
Applications for state benefit typi-
cally increase at the beginning of a
new quarter, as payments are calcu-
lated on the basis of the previous
four quarters’ earnings.
Yet the degree of volatility still
shocked analysts and comes as an
unwelcome knock to the US recov-
ery.
“I’d view this as one data point,
and a data point that is volatile from
week to week,” said Brian Lazorishak
of Chase Investment Counsel in
Virginia.
“However, one of the positives
we’ve had in the past year is contin-
ued, albeit slow, improvement in the
jobs picture, so any setback there
NEWS | IN BRIEF
German figures show growth
Berlin yesterday hiked its official
German growth forecast for 2011 from
2.3 to 2.6 per cent, citing soaring con-
sumer spending as the main reason
behind the expansion. German authori-
ties said that the average households’
disposable income should rise by 3.3 per
cent this year and next.
Japan worries dampen economy
Japan’s earthquake and tsunami last
month continue to hit the country’s
economy as Japanese business confi-
dence plunged in April, the Reuters
Tankan survey showed yesterday. The
manufacturing and service-sector senti-
ment indices tumbled to negative terri-
tory for the first time since last year, as
the percentage of pessimistic respon-
dents outnumbered the optimistic ones.
Swiss investor confidence booms
Swiss shareholder sentiment reached its
highest peak in eight months in April, as
the ZEW index, an indicator of economic
Meanwhile, inflationary pressures
were revealed in a separate data
release from the bureau of labour
statistics.
Core producer prices – which do
not include food or energy compo-
nents – rose 0.3 per cent in March,
compared to February.
The jump pushed the annualised
rate of core price inflation to 1.9 per
cent, the largest gain since August
2009.
“Yet the rise in core prices was all
concentrated in light truck prices,”
said economist Brian Jones of Societe
Generale in New York.
“It could be due to seasonal adjust-
ments and they tend to be volatile. It
could even be a pickup in demand.”
The headline producer price
index number showed a 0.7 per cent
rise in prices on the month, largely
driven by energy prices, which
surged by 2.6 per cent.
Compared to March last year,
the price of finished goods was up
5.8 per cent.
What will you say?
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sentiment based on analysts’ opinions,
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in February after a 4.4 per cent gain in
January, the biggest slide in 18 months
and way above market expectations of a
0.2 per cent dip. Exports were badly
affected by the strong Canadian dollar,
but analysts remain confident that over-
all first-quarter growth will be robust.
Singapore enjoys GDP boost
Singapore’s economy continues to grow, headline sponsor champagne reception sponsor
according to figures released yesterday
by the Ministry of Trade and Industry
that revealed a GDP rise of 8.5 per cent
in the first-quarter of 2011. The increase
official venue partner sponsored by
marked a rise of 23.5 per cent compared
to the previous quarter, led primarily by
the manufacturing, services and con-
struction sectors. Singapore's central
bank allowed an immediate rise in the
value of its currency dollar to help tackle
inflation, which it said would likely stay
elevated.
 14 News
Garnier pick fails to quell Elliott Prudential wins in court
▲
PHARMACEUTICALS
BY ALISON LOCK
ACTIVIST investor Elliott Advisors
turned up the pressure on Swiss
biotech company Actelion yesterday,
pushing for further board changes.
Elliott conceded that it could not
top Actelion’s proposal to add two
pharma heavyweights, including for-
mer GlaxoSmithKline head Jean-Pierre
Garnier (pictured), to the board.
But the hedge fund argued their
presence would not do enough to
improve strategy, and called for share-
holders to lift the current 11-person
board size limit to enable it to add six
Credit Suisse
slams attack
on coco plan
▲
BANKING
BY ALISON LOCK
CREDIT Suisse hit back at an activist
investor that called for a rethink of the
bank’s strategy on contingent convert-
ible or “coco” bail-in capital yesterday.
Swiss shareholder
Foundation, an influential voice
Ethos
among institutional investors, said it
opposed the bank’s decision to issue
billions of francs of contingent con-
vertible capital to support its trading.
But Credit Suisse slammed the
stance as “simply incomprehensible”
and said it had the support of regula-
tors and its investors.
Ethos executive director Dominique
Biedermann questioned the value of
the investment bank’s trading activi-
ties, arguing they do not work in the
long-term interest of shareholders and
pay “excessive” salaries to staff.
“These activities are very capital
intensive and carry risks that are not
in line with the long term interests of
Credit Suisse’s shareholders. Without
these activities, the issuance of cocos is
not necessary,” he said.
Credit Suisse plans to issue 6bn
Swiss francs (£3.8bn) of coco bonds –
equivalent to 42 per cent of its issued
share capital – to meet strict regulato-
Ashmore Group’s asset rise trumps
forecasts in a strong third-quarter
▲
FUND MANAGEMENT
BY ROBERT LEEDHAM
LONDON-based fund manager
Ashmore Group yesterday reported an
eight per cent increase in its assets
under management to $50.3bn
(£30.75bn), surpassing RBS’s assets
forecast for the third quarter by 3.5
per cent.
In its interim management state-
ment, the emerging markets special-
ist said the rise was driven by $2.3bn
of new money and $1.3bn from posi-
of its own nominees too.
“Elliott has decided to support
the Garnier and [Robert]
Bertolini nominations,” Elliott
said, but added the move “does not
go far enough to create real
change that will increase
shareholder value.”
Elliott wants share-
holders to vote at the
annual meeting in
May to remove seven of
the current nine direc-
tors and add six of its
own. But if sharehold-
ers vote to retain some
or all of the current
ry requirements that require it to be
able to absorb any losses from its risky
trading division.
Ethos said investors should oppose
the plan and a SwFr1.5bn dividend
payment to “reinforce the bank’s core
equity and avoid issuing cocos”.
A spokesman for the bank said:
“Credit Suisse finds it simply incom-
prehensible that Ethos is not support-
ing these efforts to build a more stable
financial system.
“The measures we are taking are in
line with the approach prescribed by
the regulatory authorities, and we are
fully convinced that our measures are
also in the interests of our sharehold-
ers, since any other form of capital
increase would have a direct dilutive
effect.”
ANALYSIS l Credit Suisse
45
CHF
39.35
14 Apr
43
41
39
3 Feb 23 Feb 14 Mar 1 Apr
tive investment performance.
Ashmore’s best performance for the
period ending 31 March came from its
“other” themed portfolio which pro-
duced a 25 per cent rise in value.
The mandate, which handles the
group’s currency hedging and overlay
strategy, grew to $7.0bn from $5.6bn.
The only investment expected to
lose value is the special situations
fund, which mainly invests in corpo-
rate restructurings.
“Trading conditions are in line with
management expectations and the
team – plus Actelion’s two candi-
dates, Garnier and former
Schering-Plough chief financial
officer Robert Bertolini – Elliott’s
candidates would be blocked.
Elliott’s directors – five
pharma executives and a
banker – also wrote to
shareholders criticising
Actelion’s drug pipeline
and governance.
Sources close to
Actelion told City A.M.
Elliott’s changing
demands were “a
moving target” for
the board.
FIRST QUARTER 2011: | EUROSTAR
Total
passengers up
7.5%
to 2.15m
Rise in business passengers pushes
Eurostar revenues up over 10 per cent
▲
TRANSPORT
A SURGE in business customers and
American tourists helped Eurostar
push its first-quarter sales revenue up
10.7 per cent to £197m.
The total number of passengers
transported rose 7.5 per cent year-on-
year to 2.15m. The firm, which oper-
ates trains through the Channel
Tunnel, says the royal wedding will
group remains confident of its
prospects for the current year,”
Ashmore said in a statement.
The group also expects its acquisi-
tion of a 63 per cent stake in EMM to
be completed by 31 May. The majority
holding, for which Ashmore agreed to
pay as much as $246m on 24
February, will be included in its
fourth-quarter asset under manage-
ment figures.
Ashmore’s share price closed at
360p yesterday, marking a rise of 2.10
per cent.
case over pension dispute
▲
INSURANCE
PRUDENTIAL won a court dispute
with members of its staff pension
plan yesterday over cuts to payments
into the scheme.
Members had argued that the insur-
ance group did not have the right to
introduce a cap of 2.5 per cent on the
annual increase in discretionary pay-
ments into their pensions in 2005,
after decades of basing the rise on
retail price inflation. Members felt
they had been given a reasonable
help push passenger numbers up fur-
ther this month and pointed to the
2012 Olympics as another revenue
booster.
Eurostar chief executive Nicolas
Petrovic said: “We are pleased to report
strong growth during the first quarter
of 2011 in both sales revenues and pas-
senger numbers. While market condi-
tions remain uncertain, we have seen
an increase in business passenger vol-
NEWS | IN BRIEF
BRC warns over warranty probe Sony mulls summer holiday
The British Retail Consortium (BRC) has
warned an Office of Fair Trading (OFT)
investigation into the sale of extended
warranties on electrical goods could be
costly and achieve little. The OFT says
customers could be losing out on up to
£350m after shelling out on lengthy
warranties and wants to make sure they
are getting value for money. An OFT
investigation will conclude in the sum-
mer and could end with action against
suppliers or a referral to the
Competition Commission. However, the
BRC pointed to an earlier investigation,
in which strict new rules were placed on
the sale of warranties. A spokesman
told City A.M.: “It’s hard to see what
another costly investigation will
achieve.”
CITYA.M. 15 APRIL 2011
expectation that the rule would not be
changed, but the court ruled that
Prudential had not breached its duty
of good faith to its staff.
Katherine Dandy, a partner at
Sackers, which represented members,
said the decision was “very disappoint-
ing for the members who had come to
expect a particular level of benefit”.
A Prudential spokesman said it
“introduced the new policy, in good
faith, as part of a package of meas-
ures designed to secure the financial
future of its pension scheme”.
Total sales
revenue up
10.7%
to £197m
umes with a particular uplift from
clients in the financial services sector.”
Eurostar said a rise in business trav-
eller numbers helped to fuel a 12 per
cent rise in its annual revenue last
year. Total ticket sales rose to £760m
for the year, up from £675.5m in 2009.
Last year the firm said it will buy 10
new trains for £700m to add to its
existing fleet as it extends services to
Amsterdam and Geneva.
Sony is mulling a complete two-week
summer shutdown of some company
premises to save energy as Tokyo and
Japan's northern regions face the peak
period with vastly reduced power gener-
ation capacity following the 11 March
quake. The government last week
announced energy saving targets that
will require large-scale users to cut peak
consumption in the region by one-quar-
ter, after the earthquake and tsunami
shut down several big nuclear and ther-
mal power stations. The disruption has
had a global impact, with Nokia,
Research In Motion and Sony Ericsson
shutting down factories and Toyota idling
plants both locally and in Europe. Sony is
also considering introducing daylight sav-
ings time by starting work an hour later.
CITYA.M. 15 APRIL 2011
Results boost 888 bid talks Grainger expects sales to
▲
LEISURE
BY HARRY BANKS
ONLINE gaming firm 888 yesterday
said talks over a possible takeover by
British bookmaker Ladbrokes were
continuing after it posted its best
quarterly performance since with-
drawing from the US market.
“There is a discussion ongoing with
Ladbrokes. There’s not a lot of dis-
agreement other than one, which is
price, and that may close or may not.
That depends on buyer and seller,”
said chief executive Gigi Levy, who
announced his intention to step
down earlier this week.
Roche looks
to the future
as sales fall
▲
PHARMACEUTICALS
BY ALISON LOCK
HEALTHCARE giant Roche shrugged
off a fall in first-quarter sales yester-
day, focusing instead on successes in
new clinical trials.
Sales of SwFr11.1bn (£7.6bn) were
nine per cent lower than the same
quarter last year, but the company
said it was on track to meet full-year
revenue targets.
Roche said its key blockbuster
drugs such as cancer treatment
Herceptin and heart attack or stroke
medication Activase supported sales
while sales of swine flu treatment
Tamiflu fell as expected.
Chief executive Severin Schwan
said drug trial results were encourag-
ing.
“Since the beginning of the year
we have already announced positive
results from seven key phase II or III
clinical trials, further underscoring
our growth prospects for the coming
years,” he said.
The strength of the Swiss franc
derailed the steady sales growth,
however. Roche said it took a 1.1bn
SwFr hit from the poor euro and dol-
lar exchange rates to the franc.
Excluding Tamiflu, its pharmaceu-
Spotify slashes the amount of free Omega Pharma forecasts
music available to its army of users profits will equal last year
▲
MEDIA
BY STEVE DINNEEN
MUSIC streaming site Spotify faces a
fan backlash after announcing it will
slash the amount of free music avail-
able to new users.
The Swedish firm, which was
recently valued at more than $1bn
(£612m), will limit users of its free
service to just 10 hours a month –
half the current allowance.
It will also cut the number of times
any given track can be played to five,
Ladbrokes was weighing up a high-
er offer for 888 after an initial propos-
al failed to win the support of 888’s
founding shareholders, the Shaked
and Yitshak families, who control 61
per cent of the stock and hold the key
to a deal taking place.
888 reported a nine per cent rise in
total revenue to $75m (£45.9m) in the
first-quarter boosted by a strong per-
formance from its casino and bingo
products and an improved showing
in poker, where it has revamped its
software and introduced video to the
site.
The company added that trading at
the start of the second-quarter had
tical division saw three per cent dol-
lar revenue growth, but an eight per
cent fall in revenues when converted
to francs. Roche’s Japanese and inter-
national businesses both registered
11 per cent growth in dollar sales.
“We are on track to achieve our
targets for the full-year,” Severin
said.
Its key cancer drug Avastin saw
revenues fall six per cent as concerns
about effects on patients damaged
US and European sales.
Schwan said US healthcare
reforms had also hit sales, estimat-
ing an impact of 0.6 percentage
points on first-quarter sales in terms
of growth.
Roche’s Swiss-traded shares fell 0.2
per cent to SwFr132.80 yesterday.
ANALYSIS l Roche
150
CHF
132.80
14 Apr
140
130
3 Feb 23 Feb 14 Mar 1 Apr
down from 10.
The move has been interpreted as
either a sop to record companies,
with whom Spotify has been involved
in long and tortuous negotiations in
the US over the rights to their cata-
logues, or a further push towards a
fully paid model.
Spotify recently announced it has
reached 1m paying subscribers but
denied it was eroding its free service.
It has a total of 6.67m users, the
majority of which are subsidised by
adverts.
been strong.
Shares in 888 lost 2.9 per cent to
close at 41.5p yesterday, valuing the
business at around £150m.
ANALYSIS l 888 Holdings
60
p tial property owner, said it expects
41.50
14 Apr
50
40
17 Jan 4 Feb 24 Feb 16 Mar
WHITE IPHONE COULD BE ON SALE IN WEEKS
APPLE is set to launch its much-delayed white iPhone 4, pictured above with Apple boss Steve
Jobs, in two weeks time, according to reports, which say the phone could be available on US
networks by the end of the month. The launch was delayed last June, when Apple said: “White
models of Apple’s new iPhone 4 have proven more challenging to manufacture than expected.”
Apple gave preview models of the handset to celebrities such as Stephen Fry late last year.
A spokesman said: “It’s vital that
we continue offering an on-demand
free service to you and millions more
like you, but to make that possible we
have to put some limits in place going
forward.”
In February Digital Sky
Technologies (DST) invested $100m
(£61.7m) in Spotify, valuing it at a
staggering $1bn.
The move raised fears of a second
dotcom boom after Facebook’s valua-
tion smashed through the $50bn bar-
rier and Twitter was valued at $10bn.
rise despite tough market
▲
PROPERTY
GRAINGER, Britain’s largest residen-
completed sales from its UK assets to
be worth £89m for the six months to
31 March, up £1m compared to last
year.
The Newcastle-based company’s trad-
ing update showed that the value of its
portfolios of UK residential and devel-
opment operations will increase by
around two per cent at the half-year. In
5 Apr addition, there were £1m worth of
▲
PHARMACEUTICALS
BELGIAN health products distributor
Omega Pharma yesterday forecast
improvements in Russia and south-
ern Europe in the second-half of 2011
and a profit margin this year at least
as high as in 2010.
The company, which sells non-pre-
scription products such as wart treat-
ment or sun tan lotion to
pharmacists, said yesterday it reiterat-
ed its outlook, but there was a slight
change.
News 15
sales from its German portfolio.
The results came despite tough
market conditions. Grainger also said
its pre-tax profit would benefit from a
partial reversal of mark-to-market
movements on its long-term financial
derivatives and the purchase of HI
Tricomm Holdings in the first-half.
The company, which will announce
its interim results on 19 May, will con-
tinue to comfortably meet its bank-
ing covenants and reshape its debt
with £290m from new lenders, it said
in the statement.
NEWS | IN BRIEF
Earnings down at Dori Media
Dori Media Group yesterday posted an
operating loss of $3.2m (£1.96m) for
the year ending December, down from
a $1.6m profit last year. Group rev-
enues fell to $47m from $48.7m in
2009, whilst gross profits dropped to
$11.4m from $15.4m. President and
finance chief of the company Nadav
Palti said that the firm remained con-
fident about its prospects for 2011.
“Trading for the first three months of
2011 has been strong and our busi-
ness operations are stable and cash
generative,” he said.
Aeon posts revenue increase
Japanese retail group Aeon yesterday
forecast a 1.5 per cent increase in
operating profit for the financial year,
and said the effect of a post-quake
decline in discretionary consumer
spending would likely be offset by
demand for basic goods. Despite a
seven per cent fall in its share price
following the events of the 11 March
earthquake, Aeon forecast a 175bn
yen (£1.28bn) operating profit for the
year beginning in March with the aid
of continuing demand for food and
other essentials. Aeon owns the oper-
ator of Japan's biggest convenience
store chain, Seven-Eleven.
Shaft Sinkers profits rise 34pc
Pre-tax profits at South African
underground construction group Shaft
Sinkers Holdings rose by 34 per cent
to £16.7m from £12.5m for the year
to December. Having raised around
£30.6m from listing on the London
Stock Exchange on 23 December, rev-
enue for the group was up 24 per cent
to £183.1m from £147.9m. Basic earn-
ings per share rose 27 per cent to 30p
from 24p. Although no final dividend
was proposed, Shaft Sinkers said it
planned to commence payment this
year.
It said that it expected full-year
turnover would be €927m (£819m), an
increase of eight per cent, whereas
previously the company had said
turnover would be “at least” that
amount.
Omega reported first-quarter sales
rose 7.8 per cent to €217.8m.
The average forecast was for an 8.4
per cent rise in first-quarter sales,
with a surge in France.
Sales in core market Belgium rose
by 12.7 per cent and in France by 14.1
per cent.
 16 News CITYA.M. 15 APRIL 2011

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

Lloyds TSB Commercial Finance
Andrew Gaunt has been promoted to associate
director of Lloyds TSB commercial finance’s
business development team in the North East
and Yorkshire. Gaunt moves from the lender’s
large and major corporates team in the region,
where he has spent the last five years as client
manager, looking after a combined review limit
of £150m. In his new role, Gaunt will be respon-
sible for bringing in new business with turnover
of between £5m and £25m.
HSBC directors of HSBC Private Bank.
David McKenzie and Karina Challons McKenzie, who is also promoted to
have been appointed as managing head of credit advisory, first joined
HSBC Private Bank from NatWest in
September 2001. Challons has spent
the last two years leading the bank’s
tax and financial planning team.
Cushman & Wakefield
The property consultant has confirmed
Dean Maszlin as partner in its London
asset management team, effective from
18 April. Maszlin joins the company
from CB Richard Ellis, where most
recently he worked on Draper’s Gardens
for Exemplar and Canary Wharf Group.
Trilantic Capital Partners
The transatlantic private equity firm
has appointed Michel Léonard as oper-
ating partner. Léonard will advise
Trilantic Capital Partners on invest-
ments in the food and consumer goods
sectors to support Trilantic’s portfolio
companies throughout Europe.
Jato Dynamics
Andy Rothery has been promoted to
chief executive, following two years
spent as chief operating officer. Rothery
will broaden the company’s product
portfolio, focusing on emerging markets
such as Brazil and China.
White & Case
Elena Millerman has been made a part-
ner to strengthen the law firm’s pres-
ence in the power and infrastructure
markets. Millerman moves from
Debevoise & Plimpton, bringing more
than 10 years’ experience in project
finance in North and South America.
ICF
The Investment Climate Facility (ICF)
for Africa has appointed Neville Isdell,
the former chief executive and chair-
man of the board of directors for The
Coca-Cola Company, as co-chair. Isdell,
who has sat on the ICF’s board of
trustees since 2009, replaces Niall
FitzGerald, deputy chairman of
Thomson Reuters, who is stepping down
as co-chair to pursue other interests.

To appear in CITYMOVES please email your career

SPECIALISTS IN GLOBAL PROFESSIONAL RECRUITMENT +44 (0)20 7092 0053
updates and pictures to citymoves@cityam.com morganmckinley.com

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ANALYSIS l Asos ANALYSIS l Hightex ANALYSIS l Tesco

2100 p 7.4 p 415 p 406.15
2050.00 14 Apr
14 Apr 7
6.00 405
1900 14 Apr
6.6 395
1700

6.2 385
1500
375
17 Jan 4 Feb 24 Feb 16 Mar 5 Apr 17 Jan 4 Feb 24 Feb 16 Mar 5 Apr 17 Jan 4 Feb 24 Feb 16 Mar 5 Apr

ASOS HIGHTEX TESCO

JP Morgan rates the online retailer “neutral” but has raised its target price
from £13.20 to £19. The broker was pleasantly surprised by ASOS’s sale
growth in the last three months of the financial year, which more than off-
set extra investment in promotional offers. JP Morgan thinks the rise in
expenditure is already paying off in sales transactions, though a slowdown
in international markets could give cause for concern down the line, it says.
Numis says the construction materials specialist’s problem has been that
following three contract wins worth an aggregate €45.3m (£40.1m) in
2009, the firm has failed to clinch any major deals. However, it says that
given the prospect for multiple contract wins, Hightex's fortunes could still
revive dramatically. Hightex’s pipeline of near term prospects, worth an
aggregate €140m, justifies Numis’ renewed “buy” stance, it says.
Evolution expects lacklustre results next week, with underlying UK like-for-
likes expected to be negative in the second half. It says international per-
formance is likely to have been better in Asia, as highlighted in December’s
analyst trip, but more mixed in Europe, where Evo expects Ireland to have
been particularly tough. Given Tesco’s reliance on a difficult UK market, the
broker sees little room for positive surprise and rates the firm “sell”.

FTSE falls with investors still Defensive sectors

cautious ahead of US results support US market
incredible $3.6 trillion worth of debt published details of long-awaited some of its peers, while an unexpect-

THELONDON in the next two years, as they compete

with indebted sovereigns”. Barclays,
HSBC, Lloyds and Royal Bank of
plans to raise up to $12.1bn in a
London and Hong Kong offering.
Oil heavyweight BP fell 0.9 per
THENEW YORK ed rise in jobless claims added to bear-
ish sentiment that kept gains in
check.
REPORT Scotland fell between 1.1 and 2.3 per
cent.
Barclays Capital cut its target price
cent. BP and Russia’s Rosneft
appear to have few options left to
salvage a £10bn share swap deal
REPORT Goldman shares fell 2.7 per cent
and were a drag on the S&P financial
sector, which was down 0.9 per cent.

B
RITAIN’S top share index fell yes- on Lloyds and kept its “underweight” after trying unsuccessfully to buy The Dow Jones industrial average

terday, led by Reckitt Benckiser
after the company said its chief
executive was retiring, and with
banks weaker on renewed worries
about sovereign debt levels.
The FTSE 100 fell 46.64 points, or 0.8
per cent, to 5,963.80, its lowest close
since 31 March. The index is up 1.1 per
cent in 2011.
Volumes were 83.5 per cent of the
average for the past 90 days, with
some investors remaining cautious
until more US companies report first-
quarter earnings.
“A bit of risk has been coming off
the table in the past week. A lot of the
big strategists have become more cau-
tious, though it’s more tactical than
fundamental, at the start of US report-
ing season,” said James Buckley, fund
manager at Baring Asset
Management.
Banks suffered, part of a sectoral
sell-off in Europe, as mounting wor-
ries over a debt restructuring by over-
borrowed Greece drove credit default
swaps and yields on government
paper higher.
Michael Hewson, market analyst at
CMC Markets, pointed to the sector
suffering “after the IMF warned that
global banks will need to raise an
rating on the bank, saying the UK’s
Independent Commission on
Banking’s stance on Lloyds “will fur-
ther dilute returns”.
Consumer goods group Reckitt
Benckiser fell 7.5 per cent after the
firm said chief executive Bart Becht is
to retire, six months after announc-
ing the departure of its chief financial
officer.
“It was one of the most highly
regarded management teams, in the
FTSE,” Martin Dolan, an analyst at
Espirito Santo, said. “The fact that
they’ve both gone now I think is basi-
cally going to cause some people to
reassess [the situation].”
The stock traded over nine times
average volume of the last 90 days.
Miners fell, with some base metal
prices slipping, as investors shied
away from riskier assets. Analysts
cited concerns ahead of Chinese infla-
tion and GDP data due today.
Chinese inflation in March acceler-
ated to 5.4 per cent from a year earlier,
Hong Kong media said yesterday. This
reinforced concerns about the govern-
ment tightening monetary policy in
China, the world’s biggest metals user.
Elsewhere, in the resources sector,
commodities trading giant Glencore
out BP’s partners in its Russian ven-
ture TNK-BP.
Among the midcaps, newspaper,
books and stationery retailer WH
Smith rose 5.4 per cent after post-
ing a three per cent rise in first-half
profit and hiking its dividend as
higher profit margins offset lower
sales. Supermarket heavyweight
Tesco was flat, ahead of its results
on Tuesday, with a strong recent
run having put it near “over-
bought” levels in technical terms.
Back in the wider market, techni-
cal analysts were bearish. “The 45-
point gain [on Wednesday was] not
enough to suggest that Tuesday’s
slide was an aberration,” said Bill
McNamara at Charles Stanley.
ANALYSIS l FTSE
6,100
5,963.80
6,000 14 Apr
5,900
5,800
5,700
5,600
5,500
17 Jan 15 Feb 16 Mar
S
TOCKS that outperform in a
weak economy helped buoy the
Dow and S&P 500 yesterday as
concerns about faltering growth
and inflation prompted investors to
seek out less volatile names.
Energy shares also rallied as US
crude gained more than one per cent.
The S&P 500 fell almost one per
cent early but found support near
1,300, a level that attracted buying
interest in early March.
Stocks have lately sagged as econo-
mists have lowered forecasts for US
growth. A poll of economists showed
2011 gross domestic product forecasts
fell to 2.9 per cent from 3.1 per cent.
“GDP forecasts are continuing to
fall, so [bets on defensives] are a safety
trade,” said Peter Boockvar, equity
strategist at Miller Tabak & Co.
Adding to the bearish sentiment,
Google shares fell five per cent after
the bell after the Internet giant post-
ed quarterly results.
The Dow industrials’ top percent-
age gainers during the regular ses-
sion were Coca-Cola, up 1.5 per cent,
Kraft Foods, up 1.7 per cent and
Merck & Co, up 1.2 per cent.
A Senate investigation of Goldman
5 Apr Sachs hurt the Wall Street giant and
rose 14.16 points, or 0.12 per cent, to
12,285.15. The Standard & Poor’s 500
gained 0.11 of a point, or 0.01 per
cent, to 1,314.52. The Nasdaq
Composite dropped 1.30 points, or
0.05 per cent, to 2,760.22.
Adding to the energy sector boost
as oil rose, natural gas producer and
pipeline company El Paso said it will
develop a shale oil field without a
partner. El Paso shares jumped 5.5 per
cent to lead gains in the S&P energy
sector’s index, which rose 0.6 per
cent.
Weighing on the tech sector,
Fairchild Semiconductor shares
dropped 4.5 per cent as it disappoint-
ed investors after it said last month’s
earthquake that threw Japan’s elec-
tronics supply chain into disarray has
yet to generate new business for the
company.
Supervalu forecast fiscal-year earn-
ings above Wall Street’s expectations
after its quarterly profit fell less than
feared. The supermarket operator’s
shares shot up 16.9 per cent.
Shares of Arcos Dorados, a large
South American franchisee of fast-
food chain McDonald’s, yesterday
jumped by 24.7 per cent in their stock
market debut.
 Wealth Management
CITYA.M. 15 APRIL 2011 17

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 Living
18 CITYA.M. 15 APRIL 2011

| Interiors

High time for creating rooms fit for Royalty

Give your home an
aristocratic feel in the
lead up to the Royal
Wedding, writes
Donata Huggins

T
HE Royal Wedding is just two weeks
away. Come on, be honest, you are
kind of interested and a bit curious.
The truth is that there is something
fascinating about the lives of the English
aristocracy. Perhaps it is the Jane Austen we
read as teenagers or the English heritage
sites we were dragged round as children.
Whatever the cause, the quintessentially
English look is becoming even more fash-
ionable now that every paper has a page or
two dedicated to Kate. The clothes she
wears are out of stock everywhere and
English brands and designers are grabbing
the headlines. Quintessentially English Iconic style: Cornwall
interiors, however, have been a little neg- Terrace, Regent’s Park
lected. Strange considering the country (above).
manor is an essential facet of the lifestyle.
So how do we pretenders get the patriotic
look? Here’s our cheaters guide.

1. PERIOD HOME
While this is a cheater’s guide, you can’t
cheat entirely. The period home is indispen-
sable. While it is more fitting to have a
countryside home, where you can roam
around the grounds, the key is to find a
home with some history. Melanie Backe-
Hansen, Chesterton and Humberts’ in-
house historian, says that Victorian and
Georgian homes tend to offer the look that
most people associate with Englishness. If
you’re keen to stay in London, and have the
cash, there are numerous examples of fine
Victorian and Georgian houses in the capi-
tal.
2. FINE DETAILS
The finer details such as the mouldings on
the walls, elegant fireplaces and tiled floors
tend to be the interior features that make
Georgian and Victorian homes stand out.
Backe-Hansen says that these features often
lie dormant in period homes: hidden
under carpets or behind 1950s gas fires. So
if you already own a period property, rip up
the carpet and see what you can Clive Christian’s kitchens have a blingy 5. GET PATRIOTIC
find. These things make an enor- elegance about them (if you like that Of course, no English home is complete
mous difference to the quality of sort of thing). You cannot go far wrong without a splash of brazen patriotism. Cool
the look you create. If the unso- if you follow these crown crest brands. Brittania and Britpop first made the Union
phisticated folk who lived in the Oh, and buy an Aga. Jack cool cultural currency. And so quintes-
property before you removed sential British designer Paul Smith jumped
them, replacing them is not 4. ANTIQUES on this symbol of Anglomania by splashing
too much hard work. Natalia Miyar, a senior designer at Helen Union Jacks on as much as possible.
Interior designers who Green Designs (the agency known for Alexander McQueen and Vivienne
work with heritage the quintessentially English interiors in Westwood also took up the Union Jack flag,
homes will have no trou- the Berkley hotel, Knightsbridge) says that translated it into interiors – think cushions,
ble sourcing original an important part of creating an English spreads and even the odd mug. Selfridges
replacements for you. look is sourcing antiques to give the room and Debenhams have some goodies. If you
a feeling of history. Go along to want to go all out, pay a visit to the new
3. BUY BRITISH Masterpiece London (30 June-5 July), Zetter Townhouse hotel in Farringdon,
There is something satisfy- which – in its second year – boasts an designed by the brilliant Russell Sage, and
ing about buying products unparalleled spread of English design tra- check out his controversial Union Jack bed-
with a Royal warrant and English style: there’s ditions, from antiques to classic cars. We room, with the flag as bunting. If the
when it comes to Royal room for elegance and also like Ronald Phillips in Mayfair Union Jack is too brazen for you, why not
warranted interior suppliers the vast major- brazen patriotism. (ronaldphillipsantiques.com), who has go for a stamp-inspired rug? You can have
ity offer a heritage feel. Cole & Son, the 131- one of the country’s best collections of the Queen’s image on a 1p rug. (freshde-
year-old wallpaper supplier, for instance, British antiques, including some rare and signblog.com/tag/rug/). It doesn’t get more
offers subtly exquisite designs, similarly exquisite mirrors. patriotic than that.

KITCHENER & FARADAY HOUSE

A UNIQUE RANGE OF 21ST CENTURY
LIVING SPACES AT THE ACADEMY
SPACIOUS 2 BEDROOM APARTMENTS
FROM £260,000
Woolwich Arsenal City Airport Greenwich Canary Wharf London Bridge
DLR & Mainline 6 mins 12 mins 17 mins 19 mins

WWW.THEACADEMY-WOOLWICH.COM
THEACADEMY@DURKAN.CO.UK
LONDON SE18 4JJ
ENQUIRIES
Photography of Faraday House. *All journey times and routes are based on Transport for London information - updated Jan 2010 020 8856 0034
Actual view from Penthouse 41.05
Heron Tower
Gherkin

Tower 42 Shard

2 bed
&
ing 1 from ards)
main able r upw
re vail floo

ONE INCREDIBLE VIEW

w
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L rtme (on
apa ,000

ONE ICONIC BUILDING

64
£3

Oxford
Circus

PENTHOUSE APARTMENTS NOW AVAILABLE Piccadilly Bank

Circus
– THE TALLEST RESIDENTIAL TOWER IN ZONE 1. Charing
Cross THAMES
From its central zone 1 location in Elephant & Castle, Strata SE1 towers
over the city. The apartments offer residents a unique perspective on Embankment London
Bridge
London life, with unrivalled views and 24hr concierge.
Waterloo ZONE 1
Apartments available for immediate occupation.
ern
rth

Lambeth
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No

Borough
VIEWING BY APPOINTMENT ONLY. Ba
ke
rlo Elephant
STRATALONDON.COM o & Castle

Savills: Tami Carrington DTZ: David Mendel

+44 (0)20 7701 2455 +44 (0)20 7701 2668
tcarrington@savills.com david.mendel@dtz.com
Photography: Interiors of the penthouse apartment. Exterior view of Strata from helicopter.
Price and details correct at time of going to press. Please be aware that the property details are intended to give a general indication
and should be used as a guide only. The developer reserves the right to alter these details at any time. The contents herein shall not
form any part of any contract or be a representation including such contract.
20 Living | Focus On CITYA.M. 15 APRIL 2011

NEED TO KNOW | AREA INSIGHT

HENDON, LONDON BY DONATA HUGGINS
Commuting: Sandwiched between the M1
and the North Circular, Hendon is well con-
nected by road, allowing City workers to
TENTERDEN reach the Bank of England from the centre
GROVE of town in 30 minutes. The area doesn’t do
Price: £699,950 badly in terms of the rail connections
This mews house is on a either: Hendon Central tube station is on
quiet residential street. the Northern line, running to Bank station
It has a reception, dining in 30 minutes.
room, kitchen, conserva-
tory, utility room, three Education: The local Hasmonean High
bedrooms, courtyard School is one of the UK’s best performing
style garden, shed and comprehensive schools, achieving 84 per
off-street parking. cent A*-C at GCSE level. The school has an
Contact: Foxtons on 020 Orthodox Jewish ethos and teaches the
8432 1700 or go to boys and girls on two separate campuses
www.foxtons.co.uk in Hendon and Mill Hill respectively. The
local sixth form college, Brampton College,
also does very well. Independent from the
state system it charges £13,535 per year.

Shopping: Brent Cross shopping centre,

close to Hendon, was the UK’s first ever
indoor shopping centre. It houses all of the
high-street favourites including Boots,
Marks & Spencer, John Lewis, Waitrose,
W.H. Smith, Starbucks, Dixons, HMV,
SUNNINGFIELDS Jigsaw, Karen Millen, Oasis, Topshop,
ROAD Mothercare, Hugo Boss, Gap, French
Connection amongst others.
Price: £299,950
Close to Sunny Hill Park, Leisure: Hendon has pockets of green
this two bedroomed sec- space everywhere, offering plenty for fans
ond floor flat has been of outdoor sports. The Welsh Harp
recently refurbished. It Reservoir, for instance, runs to 170
has a large living area, a hectares of open water, marshes, trees
modern kitchen, two well- and grassland. This allows for sailing, just
proportioned bedrooms ten miles from central London. There is
and a bathroom. The flat also a local golf club.
DOWNAGE, NEAR PARSON STREET is close to the local shops.
Price: £1.35m Contact: Foxtons on 020 Restaurants and bars: The area boasts
This five-bedroomed detached family home stretches across 3,030 sq ft and 8432 1700 or go to great Jewish restaurants, including Eighty-
three floors. It has a landscaped garden, two separate garages and a long www.foxtons.co.uk Six Bistro Bar, Adam’s and Kavanna.
driveway with space for more than one car.
Contact: Aston Chase on 020 8455 3538 or go to www.astonchase.com

Specialising in property to rent

in Chelsea, Belgravia,
Kensington and Pimlico

Draker Lettings



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www.draker.co.uk
GET THE CITY
PERSPECTIVE
With exceptional views and the city on
your doorstep, The Heron is London living
at its most inspired. Visit the marketing suite
to discover this collection of apartments
finished to exacting standards and
featuring a private club, a garden terrace,
gym and concierge services.

Prices start from £490,000

New apartments on higher floors
are now available
Marketing Suite open 7 days a week
The Heron Pavilion, Moor Lane, London EC2Y 9BN

www.theheron.co.uk
0844 544 9202
sales@theheron.co.uk

Joint Sales Agents

A development by The Heron Residences LLP

 22 Living | Europe
The Swiss town
that’s emerging
from the shadows
It’s been a backwater for years, but now
Andermatt is being developed in grand style,
aiming to lure investors, says Amy Higgins
A
NDERMATT – a sleeping beauty of quiet. In the Thirties it was a shining
a village, nestled in the Urseren example of Switzerland’s burgeoning hol-
valley in central Switzerland – is iday industry and was the location for one
set to be awoken from its slumber of the first English ski clubs. The Glacier
and transformed into one of the Alps’ Express train linking St. Moritz and
major year-round holiday destinations. Zermatt passes through Andermatt to this
The prince in question here is the self- day. However, the Gotthard rail and road
described “town-developer” Samir Sawiris. tunnel built in the early eighties bypassed
He plans to revolutionise the town’s Andermatt, leaving it stranded. It has
tourism industry (currently comprising of since been used as a military base, and it is
a few cosy but unremarkable two and soldiers rather than skiers who dominate
three-star digs) by building six luxury the town. Still, the principal reason for
hotels, 25 private villas and 490 apart- Andermatt’s former glory remains: just an
ments in 42 buildings (each named, hour and a half’s drive from Zurich, it
rather charmingly, after the animals and offers among the best ski runs in easy
flowers that flourish in the surrounding reach of the country’s financial capital.
mountains) over the next decade. If any- High altitude means that snow is guaran-
one is the man for the job, it’s Sawiris, the teed, and there is a wide range of pistes
brains behind the world-renowned El from the sunny, child-friendly slopes of
Gouna and Taba Heights developments in Natschen to the challenging Gemsstock
Egypt. area – which resides almost 3,000 metres
above sea-level. Under the expert eye of
THE BEST SKIING NEAR ZURICH the Swiss ski legend Bernhard Russi (who
This little town hasn’t always been so also happens to be Andermatt born and
Above: The super-luxe Chedi
hotel has residences starting
from €1.2m.
Left: The Murmeltier (transla-
tion: groundhog) comprises of
12 two to four bedroom
apartments with great views.
Right: Steinbock apartment
interior.
Above: an impres- bred), these areas are to be linked up with
sion of what the neighbouring ski area of Sedrun to
Andermatt will look form one ultra-modern, highly-varied ski
like once the devel- arena with 135 kilometres of piste.
opment is complete.
The first apart- A YEAR-ROUND DESTINATION
ments will be ready While Sawiris is keen to make the most of
in 2013/2014. Andermatt’s natural suitability for winter
sports, he takes a reassuringly long-sight-
ed view of the project. “While the project
looks big on paper, we are building slow-
ly” he explains. “Andermatt will never be
as big as Gstaad or Zermatt but will
become a year-round destination”. Not
just for ski-lovers, anyone desirous of
escaping the city grind and unwinding in
the fresh air will find much to relish in
Andermatt. In the summer months its
mountains take on a Sound-of-Music-style
prettiness – lush green and packed with
wild flowers. They lend themselves to an
array of outdoor activities: hiking, moun-
tain biking, rock climbing, water-rafting
and picnicking. It’s in the warmer weath-
er that the town’s cultural life really gets
going – including local museums, open-
air theatre and concerts from the Lucerne
Festival, a world famous classical music
event. And if all that wasn’t enough, the
development includes an 18-hole golf
course – seamlessly embedded into the
natural landscape – and a sports centre
with a range of wellness programs and spa
facilities.
A CARBON-NEUTRAL SKI RESORT
Eager to preserve what he describes enig-
matically as “the untouched nature that is
the soul of the region”, Sawiris has stipu-
CITYA.M. 15 APRIL 2011
lated that the resort be supplied by renew-
able energy and all buildings will be built
to MINERGIE standards, a recognised
Swiss Quality label for sustainable and
ecologically designed buildings. It will
also be a traffic free zone, with parking
facilities housed underground.
WHAT’S FOR SALE
The tough restrictions on foreign buying
of Swiss real-estate – known as Lex Koller
legislation – have been lifted especially for
this project, making Swiss Alps
Andermatt a tempting opportunity for
those hankering for a slice of the Alpine
dream – whether for personal use or as an
investment (incidentally, exemption also
means property can be resold without a
minimum retention period). Currently on
the market and set to complete in winter
2013/2014 are 45 one to four bedroom
properties – ranging from £814,700 for a
one-bedroom apartment to £6.5m for
chalets. 120 furnished one and two bed-
room furnished apartments are also avail-
able in the resort’s showpiece hotel – the
sumptuous Chedi Andermatt – with a
starting price of £1.2m. The hotel’s lavish
facilities include a state of the art gym, an
elegant wine and cigar room, après-ski bar
and two fine-dining restaurant. All apart-
ments can be rented through Swiss Alps
Andermatt, with owners receiving 60 per
cent of the profits.
Not bad for a town with a current popu-
lation of just 1,270. St. Moritz, eat your
heart out. Contact: Andermatt Swiss Alps on 00
41 41 874 1717 or go to andermatt-
swissalps.ch/thechedi-andermatt.com.
 & 62
2 2
0 1
,1
*
Computer generated images
for illustrative purposes only

Keston W Waterside
aterside
a is a development of eight exclusive thr three-
ee-  $SDUWPHQWVUDQJHIURPDSSUR[2,100
$SDU WPHQWVUDQJHIURPDSSUR[2,100 –2,900
–2,900 sq ft
bedroom
bedr oom apartments and duplexes including two penthouses with 3ULFHVVWDUWLQJIURP£940,000
3U LFHVVWDU WLQJIURP£940,000
rroof
oof gar dens in a br
gardens eathtaking lakeside setting. Just 20 minutes
breathtaking
by rail fr om Central London… yet a world away
from away.. Savills: 0
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Alan de Maid: 0 01689
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Keston W
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aterside
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• Central London location close to
VISIT OUR NEW SHOW APARTMENT London Bridge transport services
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 24 Living | Focus On CITYA.M. 15 APRIL 2011

CURRENT MORTGAGE DEALS BY DONATA HUGGINS INTERIORS

Lender Fixed/Flexible Rate Until apr Maximum Loan
(per cent) (per cent) to Value (per cent)
Q&A
are creating a larger com-
bined area, your garden
First Direct Flexible 1.99 2 years 3.5 65 furniture should be of
Andrew Dunning equal quality to your
Santander Flexible 2.19 2 years 4 60 CREATIVE DIRECTOR indoor furniture. A current
AT DESIGN CONSULTANCY trend is exterior furniture in all weather
Skipton BS Flexible 2.28 2 years 4.8 60 APD INTERIORS wicker rattan. These are also available in
sofa shapes – just add large comfortable
Yorkshire BS Flexible 2.29 June 2013 4.7 75 cushions and you have a perfect garden

Q.
Dear Andrew, I would like to room.
Santander Fixed 2.79 June 2013 4.2 60 entertain outside this year so You will also need to consider the view
what preparation should I do of the garden you will get from inside the
Yorkshire BS Fixed 2.99 June 2013 4.8 75 now to make the most of my garden? house. Hanging lightweight curtains on
the windows will ensure the view is not
Skipton BS Fixed 3.49 April 2013 5 70
A.
Entertaining outside is always a obscured, but do remember to tend the
nice way to spend a warm evening garden – you don’t want to be looking out
HSBC Fixed 3.89 June 2013 4.1 60 and it is even better if you can over a weed patch. Try not to crowd the
extend your home outwards to create a room inside with lots of furniture; keeping
Mansfield Fixed 3.99 3 years 5.4 75 larger entertaining area. it at a low level will not hide the view.
Source: MoneySupermarket.com One trick for creating a seamless transi- Another way to blur the division is to
tion between the inside and the outside is include lots of houseplants into your inte-
to use similar flooring in both spaces. This rior space – place them near the windows
PROPERTY NEWS could work for either stone or wooden
flooring. For example, you could lay lime-
to bring the outside back in. You can also
continue the colour scheme from the liv-
BY DONATA HUGGINS stone in your living room and also use it as ing room right through into the garden by
your patio. Do ensure that whatever stone planting flowers of similar colours.
you put outside is suitable and doesn’t get If you want you can also try to incorpo-
too slippery when wet. So you could use rate media into your outside space so you
honed limestone for the outdoors, which can use it as you would your living room.
will reduce the slipperiness, and then use a Waterproof speakers are now available
smooth limestone inside the house. but make sure you position them appro-
Alternatively, if you prefer wood floor- priately and be considerate to neighbours.
ing in your living room then lay some Try and have some lighting outdoors but
smart decking outside to continue the remember that less is definitely more. A
wood look and create a large combined liv- few gentle lights at a low level and illumi-
ing space. nating some trees can really highlight the
NEW DOCKLAND HOMES LAUNCHED BATTERSEA COTTAGES DUE IN NOVEMBER To enhance the sense of space and features of the garden.
Hamptons International has launched Streamlight, a Work has started on a new cottage development in openness you can use large doors that fold Finally when you are creating your out-
new development in the London Docklands. The devel- Battersea called Shaftesbury. The development will back on themselves with no visible fittings door space, bear in mind that you will
opers hope it will be completed by the autumn. It will include five two-bedroom cottages each with spacious in the middle. This opens up the view and probably want some privacy – use para-
consist of 133 homes, spanning across three buildings, living rooms, a loft room and a garden. The cottages are blurs the division between interior and sols and other methods for shading the
including a 24 storey tower. The tower will house a range priced at £595,000. The developers hope the cottages exterior. Do try to remember that if you area.
of apartments. Prices start from £295,000. will be finished in November this year.

BAYSWATER ROAD
BAYSWATER, W2
A well presented three bedroom
apartment on the second floor (with
lift) of this modern purpose built block
close to Hyde Park and the transport
links of Lancaster Gate.
• Three Bedrooms
• Bathroom and Separate Cloakroom
• 24 Hour Porter
• Private Balcony

£999,950 – Leasehold
Hyde Park & Bayswater
020 7262 2030

GREAT TITCHFIELD STREET

FITZROVIA, W1
A beautifully refurbished one bedroom
flat, which benefits from an abundance
of natural light through its three sash
windows in the reception room.
NOTTINGHAM PLACE, MARYLEBONE, W1 • One Bedroom
• ExcellentCondition
A three bedroom flat on the first and second floor of this period conversion • Ideal Rental Investment
located moments from Marylebone High Street. • Moments from Oxford Street

Three Bedrooms • Two Bathrooms • Roof Terrace • Moments from Marylebone High Street £549,950 – Leasehold
£1,299,000 – Leasehold – Sole Agents Marylebone & Regent’s Park
020 7486 6338
Marylebone & Regent’s Park 020 7486 6338

London Estate Agents | Investment & Development Consultants | Block Managers | Established 1982 kayandco.com
 URBAN CONNECTIONS
Q WITH A COUNTRY TWIST
QUEEN MARY’S GATE
South Woodford, E18

Central line connections:

Bond Street
30 mins

Canary Wharf
25 mins

Bank
21 mins

Liverpool Street
19 mins
Larger than average London living*
Stratford
10 mins 1 & 2 bedroom apartments and penthouses offering the space to
enjoy and to entertain in style. Design that will make you the
South Woodford
10-15 mins walk envy of your friends; the luxury of the Capital in easy reach.

Q Large 1 bedroom apartments with parking from £242,500**

Large 2 bedroom apartments with parking from £287,500**
Private gated development with 24 hour concierge • Landscaped gardens and courtyards • Balconies & terraces to all apartments†

Sales Centre open daily • Mon - Sat 10am - 6pm • Sun 11am - 5pm

0800 883 8607 www.queenmarysgate.co.uk

or (out-of-hours) 0800 032 0077
*Applies to 2 bedroom apartments, over 900 sq ft of internal living space - London average 750 sq ft. **Prices correct at time of going to press. Photographs depict Queen Mary’s Gate. †Applies to Gatekeeper’s Lodge and Grove House apartments.

Leading sustainable developments

 Lifestyle
26 CITYA.M. 15 APRIL 2011

| Fashion
6

2
SPRING’S 5

key looks
‘Tis the season to go all-out with
3 colour, texture and maxi dresses,
says Zoe Strimpel

S
PRING is (or certainly was) here. So what should you be wearing? The big looks
this season are a mercy for the fuller-figured woman – or anyone tired of the
super-clingy and the drab. Instead, it’s all about floral graphic prints (Oasis,
Ted Baker, Monsoon, Erdem, Louis Vuitton), colour blocking (Uniqlo, Benetton,
Zara) and the 1970s – of which maxi dresses are the key component (these are every-
where, including Monsoon and M&S). Sarah Curran, founder and CEO of fashion site 4
MyWardrobe, says: “Team a simple pink or orange t-shirt with a red pencil skirt or
wide leg trousers, which can be worn with a bright jacket for the boardroom. To
tone down this look, simply team a shift dress with a brightly coloured belt and
jacket.” Simple and effective. Now we just need the sun to stay out.

GET THE LOOK

1 Long blazer, Zara, £79.99. www.zara.com
2 Washed silk strapless top, Gucci, £565, www.netaporter.com
1 3 Feather print shift dress, Oasis, £55, www.oasis-stores.com
4 Pleated colour block satin tank, Miu Miu, £815, www.netaporter.com
5 Jersey dress, French Connection, £32, www.frenchconnection.com
6 Ellie dress, Monsoon, £75, www.monsoon.co.uk

Q&A Q.
Working in the City, my
weekday look consists main-
ly of dark trousers, collared
shirts and v-neck knits. I want
some new ideas on wearing sepa-
rates but am also wary of looking
inappropriate. Any tips?
Remember that the traditional work
uniform was developed for the trian-
gular male silhouette of broader shoul-
ders and narrow waist. Replicate this
on a woman's body and often you can
end up looking a bit boxy and square.
Starting from the top: replace the
stiff cotton shirt with a silk blouse.
Although v-neck cashmere jumpers
might keep you warm, they are not
sophisticated when paired with
trousers, look bulky over a bust and
are generally infinitely nicer on a male
figure than a woman’s. Instead, focus
on developing a selection of nipped-in
cropped jackets to show off the waist
wear them easily with flats when
rushing about, and heels for meetings.
So, this Monday, why don’t you try a
cropped trouser shape with a high
waist, teamed with a silk top tucked in
to show your waist and a delicate
skinny belt (in patent or even a neutral
snakeskin) to pull everything together.

I
T is so important to feel inspired by
Clare Rous & Kara Iland what you are putting on for your
FOUNDERS OF ROUS ILAND MEMBERS’ BOUTIQUE, working day. Not only will you
WWW.ROUSILAND.COM stand out from your peers but your
body language will be more positive
HOW TO GET and confident. The trick is to find work
wear pieces that, styled differently, you
DRESSED IN would be just as happy to wear with
your friends at the weekend. That way
THE CITY your own personality doesn't become
lost in your working role.
This softer fabric is more flattering on
the body and has the added benefit of
bouncing light upwards to illuminate
your complexion. Neutral creams,
ivories and golden tones are all very
appropriate for the office. Don't be put
off by stronger, especially blue-based,
jewel tones too (e.g. peacock, cobalt
and amethysts) which, when paired
with sober work trousers, are the sim-
plest way to add an injection of colour.
in flexible soft fabrics that allow you
to move easily.
Finally, to complete your work sepa-
rates, you need a few pairs of trousers
in classic shades and different cuts.
Focus on higher-waisted styles that
draw attention to the smallest part of
your body. A slightly cropped (7/8th)
trouser, that skims the shape of your
legs rather than drowning them, is
both modern and practical as you can
Top off with your cropped jacket and
you will look instantly more polished,
sophisticated and stylish. You will feel
more like yourself in the office and will
stand out from the sea of black
trousers and brown v-necks in the
City.
For your own City style questions con-
tact: Clare Rous & Kara Iland, Rous Iland
Members’ Boutique
www.rousiland.com, tel: 0845 003 8945

5)&
)*()
45",&4
0'
(-".063

Investec Ladies’ Day – Friday 3rd June 2011

Ladies take centre stage both on and off the track. Enter our Style on The Downs competition on the day for a chance
to win over £15,000 worth of prizes. Why not also consider a hospitality package and enjoy a truly glamourous day out.
Book now: 0844 848 3256 | epsomdowns.co.uk
 Lifestyle
CITYA.M. 15 APRIL 2011
Werewolf tale lacks bite
A reimagining of the
famous children’s
story has hints of
Twilight, but little else
Film
RED RIDING HOOD
Cert: 12A
hhIII
TEENAGERS, werewolves and a classic love
triangle. Sound familiar? Well, this is the
latest offering from director Catherine
Hardwicke who brought the first Twilight
film to our screens – and Red Riding Hood
has Twilight written all over it, with pan-
ning overhead forest shots, speeded-up
chases and a ravenous black werewolf.
Sadly, that’s where the positive similarities
end. There’s no sexual chemistry, no eerie
atmosphere, zero believability – and
frankly, without R-Patz magnified on
screen, is there really any point?
Red Riding Hood, a modern take on the
old fairytale, is set in a medieval village
which looks like Hyde Park’s Christmas
Winter Wonderland. Following an attack
by the big bad wolf, village folk are sent
ALSO OUT THIS WEEKEND
FILMS, MUSIC, GAMES
FILM
YOUR HIGHNESS Medieval slacker comedy with Natalie
Portman and James Franco.
LITTLE WHITE LIES Critically acclaimed, hugely suc-
cessful French contemporary drama.
SCREAM 4 Yet another return to the post-modern,
post-ironic, post-necessary slasher genre spoof.
| Reviews
scattering, locking their doors and praying
for protection, until famed werewolf
Amanda Seyfried
stars as Valerie in Red
hunter Father Solomon (Gary Oldman)
arrives. When he reveals that the wolf is in
Riding Hood.
fact a normal human by day, the townsfolk
are put further on edge – not least the pale-
skinned, rosy-lipped, red-caped maiden
Valerie (Amanda Seyfried).
Poor Valerie. She’s already having a
tough time trying to choose between
Henry, the eligible bachelor (Max Irons) and
Peter, a bad-boy woodcutter. But could one
of them be the wolf? Drama!
A rare red moon elicits a hairy killing
spree, and after an hour most of the cast
has been dispatched – not that we care. We
just want to see who Valerie cops off with.
At least the film does deliver (a bit) on
the murder-mystery front, keeping us
guessing until the end (no, it’s not the
grandmother). Also, the crimson cape is
fabulous – that’s undeniable.
. Leo Bear
Theatre
MOONLIGHT
Donmar Warehouse
hhhII
A SLIVER of a girl, with slicked back hair
and bruises around her legs, appears on
stage. She delivers an eerie monologue in
the short, simple sentences of a child.
DVD
HARRY POTTER AND THE DEATHLY HALLOWS PART 1
The wizard series hits a pre-finale holding pattern.
THE GIRL WHO KICKED THE HORNETS’ NEST The final
part of the adaptations of Stiig Larsson’s literary trilogy.
MONSTERS Incredibly imaginative and accomplished
alien invasion movie made for a tiny budget.
COUNTRY
HOTEL HEAVEN
IN MONDAY’S
TRAVEL SECTION
She’s afraid of waking her parents. She
knows things are quieter at night, but
she’s still afraid of waking them. Then
she’s gone.
This strange, bruised ghost is the voice
of betrayal and sorrow beyond the grave,
and the way Harold Pinter – in his last full-
length play (1993) – conducts us into the
world of a dysfunctional family. The play
centres around a dying, vituperative
father, played with grating menace by
David Bradley, who fears the “horizon”
waiting for him in death. By his side is his
laconic wife (Deborah Findley). Noticeably
absent from the deathbed are their two
runaway, seemingly insane sons and
Bridget, the ghostly daughter.
They’re all deeply damaged – that much
is clear. Adultery has marred the couple’s
life together, and as for the kids, one is
dead, the others mad. There are hints at a
past we know frustratingly little about.
In typical Pinterian style, it’s hard to put
your finger on just what is wrong, what
went wrong, or where the menace lies.
It’s not Pinter’s best play – not by a long
shot. It’s one of his least political, which
some have called a relief, but it’s also
patchily structured and much of it feels
spurious. The production is efficient, but
hardly zings. The set is minimalist and
neat, turning spotlights on actors in a given
scene while the others lurk in darkness.
Moonlight is mostly engaging, but it
doesn’t show either the Donmar, Pinter, or
even some of the actors, at their best.
Zoe Strimpel
MUSIC
FOO FIGHTERS Dave Grohl’s rockers are now onto
album number seven, titled Wasting Light.
TV ON THE RADIO The groundbreaking New York
band’s new collection is called Nine Types of Light.
LOW The slow-rocking husband and wife band keep
evolving with C’Mon, their ninth record.
27
A marathon
endeavour for
Emma Crosby
The Channel Five news presenter is running the
Virgin London Marathon on Sunday, raising
money for the charity Wellbeing of Women
(www.wellbeingofwomen.org.uk). She told Zoe
Strimpel how she feels to be taking part in one
of the world’s biggest sporting events.
City A.M.: Why did you decide to run the
marathon?
Emma Crosby: I decided to do a challenge a
year – to put myself out of my comfort zone. I
wanted to do it last year but I couldn’t even
run for a bus.
So you really weren’t much of a runner
before? How did you get started?
Honestly, I was breathless after ten minutes. I
began running last spring and then started
doing five and 10 ks – I did the Great North
Run in September – and I thought: If I can do
that, I can do the marathon.
What did you do for training?
I only started training for the marathon after
Christmas – I did a 10-week intensive training
plan. My first training run was in South Africa
on a game reserve. I’d run past elephants with
a ranger in a jeep behind me. I also did a lot in
the hot and hilly terrain of Cape Town. So when
I got back here, all that training in 35 degree
heat gave me a good level of base fitness.
How do you feel now?
I feel great. To be able to run 10k and still feel
normal is a wonderful feeling.
What have you enjoyed most about the
training – apart from getting fit?
Being able to eat whatever I want – that’s
been good. I’ve discovered a new love of pasta
and porridge. Though I do have to make a con-
scious effort to drink more water.
With your busy schedule, how did you find
time to train?
You just have to make the time. I am the
biggest ditherer – but you just have to put your
trainers on and go. I haven’t had a weekend in
months where Sunday has been free from a
long run. During the week, I do shorter interval
training runs. Back when I was doing early
shifts I was feeling rubbish – but just by put-
ting my trainers on I felt better.
How do you ward off boredom?
Really hard – I hit a training wall recently. I
got bored of music I was listening to and
tired of running on my own. But music is a
great help - Coldplay and the Killers seem to
be my favourite. Also – go somewhere that’s
really pretty. I’ve been running on the tow
path on the Thames – on a sunny day it can
be gorgeous.
What’s your biggest fear for Sunday?
The unknown – I’ve never done anything like
this before – and how painful it’s going to be.
I’ve never done the full 26 miles.
How will you celebrate after?
Bottle of champagne on ice!
 28 Lifestyle | TV& Games CITYA.M. 15 APRIL 2011

BBC1 BBC2 ITV1 CHANNEL4 CHANNEL5 TV PICK

TERRESTRIAL
6pm BBC News 6.30pm BBC
London News 7pm The One Show:
BBC News 8pm EastEnders
8.30pm A Question of Sport
9pm Have I Got News for You
9.30pm QI
10pm BBC News
10.25pm Regional News
10.35pm CHOICE The Graham
Norton Show
11.20pm The National Lottery
Friday Night Draws 11.30pm The
One Show 12.30am FILM Fakers
2004 1.55am Sign Zone: Michel
Roux’s Service 2.55am The Boat
That Guy Built 3.25am Great
British Railway Journeys
3.55am-6am BBC News
6pm Eggheads
6.30pm Great British Menu
7pm An Island Parish
7.30pm Mastermind
8.30pm Gardeners’ World
9pm Monty Don’s Italian
Gardens
10pm Frank Skinner’s
Opinionated
10.30pm Newsnight
11pm The Review Show:
Weather
11.50pm Later with Jools
Holland:
12.50am FILM Pinero 2001.
2.20am BBC News 3.55am-6am
Close
6pm London Tonight 6pm The Simpsons 6.30pm 6pm Home and Away
6.30pm ITV News Hollyoaks 7pm Channel 4 News 6.25pm OK! TV
7pm Emmerdale 7.25pm 4thought.tv 7.30pm
Unreported World 8pm A Place in
7pm 5 News at 7
7.30pm Coronation Street the Sun: Home or Away 9pm 7.30pm Fifth Gear: 5 News
8pm Baboons with Bill Bailey Embarrassing Bodies: Back to the Update
8.30pm Coronation Street: Clinic 8pm Ice Road Truckers: Six
Maria is left reeling by Carla’s 10pm CHOICE David Walliams: drivers form a convoy to
revelation. Awfully Good Ads deliver a tricky load; 5
9pm Paul O’Grady Live 12.10am 10 O’Clock Live News at 9
10pm ITV News at Ten 1.05am Music on 4: Mercury Prize THE GRAHAM NORTON SHOW
9pm The Mentalist
10.30pm London News Sessions 1.20am Music on 4: 4Play: BBC1, 10.35PM
10pm CHOICE Law & Order New series. The host welcomes
10.35pm Take Me Out Funeral Party 1.30am My Name Is
Earl 1.50am My Name Is Earl 10.55pm The Walking Dead former Doctor Who stars David
11.35pm The Cube
2.15am Freaky 2.40am Freaky 12.30am SuperCasino Tennant and Catherine Tate, and
12.30am The Zone; ITV News
3.05am Tricks from the Bible 4am 4.05am Motorsport Mundial comedian Jon Richardson.
Headlines Ugly Betty 4.45am Ugly Betty 5am 4.30am Fifth Gear 4.55am Rough
2.35am In Plain Sight
Wogan’s Perfect Recall Guide to Journeys 5.10am Wildlife
3.20am-5.30am ITV Nightscreen
5.25am-6.10am Countdown SOS 5.35am-6am House Doctor

SKY SPORTS 1 5am Aerobics Oz Style Miami 11pm Criminal Minds 12am 11pm Great British Hairdresser 5.30am-6am Destroyed in
SATELLITE & CABLE

7pm Sky Sports News 7.30pm
Live Super League 10pm Take It
Like a Fan 10.30pm Premier
League Preview 11pm Football
League Weekend 12am Super
League 1.30am Take It Like a Fan
2am Premier League Preview
2.30am Football League Weekend
3.30am Super League 5am Take
It Like a Fan 5.30am-6am
Premier League Preview
SKY SPORTS 2
7pm Road to London 7.30pm Live
Football League 10pm Tight Lines
11pm NFL: Total Access 12am
Masters Tennis 2am Tight Lines
3am NFL: Total Access 4am Road
to London 4.30am-6am Live
European Tour Golf
SKY SPORTS 3
6pm European Tour Golf 8pm
Live PGA Tour Golf 11pm
European Tour Golf 1am
PGA Tour Golf 4am Tight Lines
5.30am-6am Kings of the Snow
BRITISH EUROSPORT
7pm Timbersports Series 8pm
Live Boxing 10.15pm Boxing
11.15pm Intercontinental Rally
Challenge 11.45pm Extreme
Sports 12.15am-12.45am Horse
Racing Time
ESPN
7pm Live Premiership Rugby
Union. Newcastle Falcons v
Northampton Saints (Kick-off
7.45pm). 10pm World Rally
Championship 10.30pm ESPN
MMA Live 11.15pm UFC 11.45pm
ESPN Kicks: Extra 12am Live NHL
Ice Hockey 2.30am Live Major
League Baseball 5.30am-6am
This Week in Baseball
SKY LIVING
7pm CSI: Crime Scene
Investigation 8pm Bones
9pm Criminal Minds 10pm CSI:
Ghost Whisperer 1am CSI: Crime
Scene Investigation 2.40am
Charmed 4.20am Nothing to
Declare 5.10am-6am Maury
BBC THREE
7pm Doctor Who 7.50pm Doctor
Who Confidential 8pm Don’t Tell
the Bride 9pm White Van Man
9.30pm Russell Howard’s Good
News 10pm EastEnders 10.30pm
The Lock Up 11pm Family Guy
11.45pm White Van Man 12.15am
Russell Howard’s Good News
12.45am Is Breast Best? Cherry
Healey Investigates 1.45am
Misbehaving Mums-to-Be 2.45am
The Lock Up 3.15am Don’t Tell the
Bride 4.15am Doctor Who
Confidential 4.25am-5.25am
Misbehaving Mums-to-Be
E4
7pm Hollyoaks 7.30pm Friends
9pm Jo Frost: Extreme Parental
Guidance 10pm Supernanny USA
12am My Name Is Earl 1am Jo Seconds
Frost: Extreme Parental Guidance
1.55am Supernanny USA 2.40am DISCOVERY HOME &
Important Things with Demetri
Martin 3am Ugly Betty 3.45am
HEALTH
Privileged 4.25am-6am Switched
7pm A Baby Story 8pm 18 Kids DAVID WALLIAMS ...
and Counting 9pm 19 Kids and CHANNEL4, 10PM
Counting 10pm Quints By
HISTORY Surprise 11pm Emergency 12am
In the second of three programmes to
7pm America 8pm The Kennedys be aired throughout the year, the
19 Kids and Counting 1am Quints
10pm Pawn Stars 10.30pm Mud comedy actor celebrates the best and
By Surprise 2am Emergency 3am
Men 11.30pm IRT Deadliest 18 Kids and Counting 4am
worst TV adverts.
Roads 12.30am Pawn Stars 1am Bringing Home the Babies
How London Was Built 2am How 5am-6am A Baby Story
Britain Was Built 3am America
4am The Universe 5am-6am Ice SKY1
Road Truckers 7.30pm The Middle 8pm
Simpsons 8.30pm Modern
DISCOVERY Family 9pm Raising Hope
8pm How It’s Made 9pm Taking 9.30pm A League of Their Own
On Tyson 10pm Wheeler Dealers 10.30pm Spartacus 11.45pm Live
11pm Monsters Inside Me 12am to Dance 12.45am Road Wars LAW & ORDER
Bear Grylls: Born Survivor 1am 1.45am Border Invasion USA CHANNEL 5, 10PM
Trawler Wars 2am Future 2.35am Cold Case 3.30am Lost A man’s death offers no immediate
Weapons 3am Greatest Tank 4.20am My Pet Shame explanation, until the autopsy points
Battles 3.50am The First World 5.10am-6am Bill Bailey’s the team in the direction of illegally
War 4.40am Treasure Quest Birdwatching Bonanza harvested donor bones.

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

QUICK CROSSWORD
   

SUDOKU KAKURO
35 16 13 11 14 6 32 31
19 27
  
11 21
Place the numbers from 1 to 9 in each empty cell so that each 28  
row, each column and each 3x3 block contains all the numbers Fill the grid so that each block 33 19
23
from 1 to 9 to solve this tricky Sudoku puzzle. adds up to the total in the box 9 3 4
  
above or to the left of it. 12 9
You can only use the digits 1-9 8 22 
    and you must not use the
14
30   
same digit twice in a block. 18 19 17 34
  The same digit may occur 38 14 
29
   more than once in a row or
column, but it must be in a
16
21
6
7
23
 
15 15
    separate block.
12
21 16
  10 21
 

    ACROSS DOWN
1 Retail establishments (5) 1 Scarf bandage (5)
  
  WORDWHEEL A R
3
6
8
Damp (5)
South American civilisation (4)
Large shrimp cooked
2 Grassy plain (7)
3 Pasta in the
form of slender
Using only the letters in the Wordwheel, you have in breadcrumbs (6) tubes (8)
    ten minutes to find as many words as possible,
B T 9 Tune (3) 4 Not possible
none of which may be plurals, foreign words or
proper nouns. Each word must be of three letters O 11 Class of artistic
endeavour having a
to shift (9)
5 Experiment (5)

LAST ISSUE’S or more, all must contain the central letter and
letters can only be used once in every word. There
N O 12
characteristic form (5)
French composer of works
7 Nominee (9)
10 Stay of
SOLUTIONS KAKURO is at least one nine-letter word in the wheel.
P I 14
such as Boléro (5)
Document certifying
execution (8)
13 Dental filler (7)
QUICK CROSSWORD 7 3 4 2 3 2
successful completion 15 ___ Asimov,

S E R U M S E A M
8 4 7 2 1 5 9 3 6 SUDOKU          15
of a course (7)
More glacial (5)
popular writer of
science-fiction (5)
6 8 5 7 9 4 9
H A A B H O R A          16 Wealthy man (5) 17 Capital of
E L F G R A M S
9 2 6 3 9 7 8
        
D E T A I L D O 2 1 6 3 2 4 1 3 18 Unwell (3) Switzerland (5)
        
V C I T I Z E N 7 1 4 8 19 Rhododendron-like shrub (6)
WORDWHEEL
        
E S A V E D V 5 7 9 8 3 7 1 8 20 Cogwheel (4)
P E R P L E X E         
E H S T R O N G
1 3 8 9 7 3 9 21 Mediterranean island
2 5 7 8 6 9 4         
A C H E I A T E The nine-letter word was associated with the
C O R I E L T T 3 8 1 9 7 5 4 2 6         
H O P E E T H O S 9 2 3 1 5 2
VEGETABLE         
Minoan civilisation (5)
22 Have a cigarette (5)
 Punter
29

| Sport

FOOTBALL TRADER BEN CLEMINSON TAKES A LOOK AT TOMORROW'S ALL-MANCHESTER FA CUP SEMI-FINAL

United and City are

hard to split in semi
the years, but they were soundly beaten at
MANCHESTER CITY Anfield on Monday night and Carlos Tevez
will be missing tomorrow. That is a huge
blow for Roberto Mancini, although he
MANCHESTER UNITED will be pleased that Wayne Rooney is sus-
pended.
It’s been a decent couple of weeks for
TOMORROW - 5.15PM ITV 1 Manchester United - they have won their
last seven games - and they are now just

T
HIS must surely be one of the most
exciting FA Cup semi-finals in
recent memory and it can provide
the competition with a much need-
ed shot in the arm. Manchester City
haven’t stepped foot on Wembley turf
since the dramatic League One play-off
final against Gillingham in 1999 when
Paul Dickov scored a late equaliser before
they went on to win the penalty shoot-out.
They have now gone 35 years without a
major trophy and a win tomorrow would
set up a final appearance against Bolton or
Stoke. This is obviously a very different
City side to the ones that have failed over
7/1 with Paddy Power to win the Premier
League, FA Cup and Champions League
treble. They were thoroughly professional
against Chelsea in the Champions League
and will fancy their chances against
Schalke in the semi. Victor Chandler have
them at 1/7 to win the title, so they could
be set for a cracking end to the season, but
they do have some big games on the way
and City will be bang up for this one.
United have dominated the recent
encounters against their local rivals, win-
ning five and drawing one of the last six
league games and knocking them out of
the Carling Cup last season. They are full
of confidence at the moment and
although the FA Cup isn’t a priority for Sir
Alex Ferguson, he would love nothing
more than to beat City after the war of
words over the past two seasons.
This is an important game for both
clubs, with a lot of local pride at stake, and
I can see it being quite tight. It would be
no surprise to see the sides go in level at
the break and I actually think it will be a
draw in 90 minutes, which can be backed
at 23/10 on Betdaq. I’d also look to sell
goals at 2.35 with Sporting Index as both
sides have strong back fours.
It’s always a lottery when you get to
extra-time, but I am quite interested in
Victor Chandler’s 10/1 about United win-
ning on penalties. They have more experi-
enced players in their squad and if it was
to go to a shoot-out, I’d fancy them to hold
their nerve better than the City players.
POINTERS...
Draw at 23/10 on Betdaq
Man United to win on penalties at 10/1 with Victor
Chandler
Sell total goals at 2.35 with Sporting Index

RACING TRADER BILL ESDAILE PICKS OUT HIS BEST RACING BETS OF THE WEEKEND
THE presence of Neptune Collonges in
tomorrow's Scottish Grand National
means that more than two thirds of
the field will be running from out of
the handicap. Paul Nicholls' stable is
flying at the moment and it has to be
of interest that Ruby Walsh is doing
10st 1lb on THE MINACK. This seven-
year-old has to prove he can handle a
big field, but he could be very
well-handicapped and is worth
a small each-way interest at
9/1 with Victor Chandler.
There are plenty of
others with chances,
including last year's
some cut in the ground. Philip Hobbs
has his string in fine fettle and Fair
Along is capable of running a big race
following a decent fourth at
Cheltenham last month.
Frankel, or 'The Second Coming', as
he's regarded by his legions of fans,
reappears at Newbury tomorrow
afternoon in the Greenham Stakes. He
is certain to go off a very short price
and can be backed at no bigger than
5/6 with Paddy Power for next
month's 2,000 Guineas. However,
there's no guarantee yet that he has
trained on and a number of Henry
Cecil's runners have struggled this
ning. Roger Charlton has put DISCOV-
ERY BAY in the maiden at 4.50pm and
the son of Dansili is reportedly very
well regarded at home. Hannon then
BEHIND THE LINES
runs GENERAL SYNOD in the last for
Her Majesty and this is another who
could break his maiden tag.
Finally, for those of you who can't
wait until tomorrow, don't miss out
on SCORN in today's 4.30pm at
Brighton. She is yet to win in 12 starts,
but has gone well fresh in the past
before and today could be the day.
POINTERS...
It's FA Cup semi-final weekend
and we are refunding all losing
first goalscorer, correct score
and half-time/full-time bets on
either game if it goes to penal-
ties. The Manchester Derby
should be a cracker, but it's a
shame that both Wayne Rooney
and Carlos Tevez will be missing.
We also expect to see plenty of
business on the El Clasico game
tomorrow night. There is some
top quality racing action and we
are offering ¼ odds the first five
places in tomorrow's Scottish
Grand National. We will also be
keeping a close eye on the
Greenham at Newbury after lay-
ing a £550k bet on Frankel for
the 2,000 Guineas this week.

impressive winner week. I'd be tempted to lay him on SCORN 4.30pm Brighton (today)
Merigo, who has been Betdaq, as well as backing Richard STRONG SUIT 3.10pm Newbury (tomorrow)
kept fresh for this. Hannon's STRONG SUIT who will rel- LAY FRANKEL 3.10pm Newbury (tomorrow)
However, I still have ish the likely quick ground. THE MINACK e/w 3.25pm Ayr (tomorrow)
the feeling that he The Queen is at Newbury tomorrow DISCOVERY BAY e/w 4.40pm Newbury (tomorrow)
GENERAL SYNOD e/w 5.25pm Newbury (tomorrow)
would be better suited by and plenty of her horses will be run-

%$
#3*5"*/µ4
'"7063*5&

'03
"
%":
065
%$

Featuring the world’s greatest flat race

Investec Derby Festival – 3rd & 4th June 2011
Book now: 0844 848 3256 epsomdowns.co.uk
 Sport
30 CITYA.M. 15 APRIL 2011

FOOTBALL ROUND-UP

No logic in sacking
Ancelotti, says Hoddle
Tevez blow hands supporting
FORMER Chelsea boss Glenn Hoddle
has thrown his support behind under-
fire Blues manager Carlo Ancelotti
and questioned why anybody would
want to dismantle the solid founda-
cast the chance to shine
tions at Stamford Bridge.
Ancelotti is under intense pressure
City boss Mancini confident his big-money buys will
following Wednesday’s Champions
League exit at the hands of come good and end United’s treble bid at Wembley
Manchester United and failure to
retain the Premier League title.
▲

Hoddle said: “I think in football you FOOTBALL

need to get a balance. If you don’t BY JAMES GOLDMAN
look at a balance you can make a mis-
take. Why would you want to start MANCHESTER CITY manager
afresh again? I would say he definitely Roberto Mancini insists he has
deserves another season, if not two.” total faith in strikers Mario
Balotelli and Edin Dzeko, the men
likely to be charged with the

Orient begin their own responsibility of replacing captain

and talisman Carlos Tevez in
tomorrow’s FA Cup semi-final
Olympic judicial review against Manchester United at
Wembley.
Mancini confirmed yesterday
LEYTON ORIENT have followed Spurs that former United striker Tevez is
by announcing they have launched a to miss at least the next four
judicial review against Newham weeks of the run-in with the ham-
Council over its role in helping West string injury he picked up in
Ham United win the right to move Monday’s 3-0 defeat against
into the Olympic stadium post-2012. Liverpool.
Spurs revealed on Wednesday they Both Balotelli and Dzeko have
was also taking the borough to court failed to live up to their hefty
over the same issue which revolves price-tags since their respective
around Newham’s offer of a £40m moves from Inter Milan and
loan to West Ham to convert the sta- Wolfsburg, but Mancini is backing
dium after the Olympic Games. the duo to come good when it
The O’s chairman Barry Hearn counts most.
claims the potential move, which “Tevez is not available for THE FACTS: THE FACTS:
would see the Hammers offer dis- tomorrow,” Mancini said. “It is a MARIO BALOTELLI
counted tickets to the 60,000 seat big problem. But we can’t take any CARLOS TEVEZ
venue, could destroy his club, who risks. We have six games left and AGE: 20
long established in the east end of hopefully we can get Carlos back AGE: 27
TRANSFER FEE: £24m TRANSFER FEE: £25.5m
London. for the last two or three games.
“We are saying West Ham we don’t “I still have to decide what to APPEARANCES: 23 APPEARANCES: 22
want you in the Olympic Stadium,” do but both players (Dzeko GOALS: 10 GOALS: 40
he said. “It’s not your patch, you’ve and Balotelli) know this is MINS PER GOAL: 141.1 MINS PER GOAL: 147.5
got a nice football ground that you an important chance for
can’t fill up at the moment, you are them. Every player knows
going to put us out of business.” this is an important
moment for the club. afford for our heads to get full with ing his dismissal against Dynamo United boss Sir Alex Ferguson

Results “I know we have

improved a lot. The
important thing is
the occasion.”
More than anyone, that
applies to Balotelli. The tem-
Kiev last month and then substitut-
ed him at Anfield this week even
though he had been the man who
meanwhile, is denied the opportu-
nity to select the in-form Wayne
Rooney, who will be serving the
=FFK98CC that we peramental Italian has had replaced Tevez just over an hour ear- final game of his domestic ban.
don’t go a mixed debut season in lier. The England striker said: “As
L<=8<LIFG8C<8>L<HL8IK<I$=@E8C$
J<:FE;C<> t here England, with several disci- “He knows it is an important most footballers will tell you, it’s
9iX^X%%%%%%%%%%%%%%%%%%%%%'  ' ;peXdfB`\m%%%%%%%%%%%%%'  ' a n d plinary issues overshadow- game for him. If his focus is on the probably more nerve-racking watch-
 8kk1(/#''' think ing glimpses of brilliance. game, he can do everything. We can ing. But I believe we have got a good
8^^1($(29iX^Xn`efeXnXp^fXcjilc\% about “I trust Mario,” insisted change the history of the club. The chance of winning and I am hoping
=:Kn\ek\%%%%%%%%%%%%%%(  ( M`ccXii\Xc%%%%%%%%%%%%%%%%%%%'  *
9XaiXd`*) Ifjj`,0g\e the enormity of the Mancini (left), who branded first trophy is the hardest but it is the boys can pull through and get
 IlY\e/*g\e game. We cannot the 20-year-old “stupid” follow- time for City to win something.” us to the final.”
8kk1)*#''' :Xe`/0
8^^1)$/%
GJM%%%%%%%%%%%%%%%%%%%%%%%% )  ) 9\e]`ZX%%%%%%%%%%%%%%%%%%%%%%%(  )
;qjl[qjXb(. Cl`jXf+,
C\ej),

8^^1*$-%
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8kk1*'#'''

JgXikXbDfjZfn%%'  ) =:Gfikf%%%%%%%%%%%%%%%%%%%%% )  ,
SPORT | IN BRIEF Bale: Champions League football
;qalYX,)
8i`.)


?lcb)/
:If[i`^l\q+,
>lXi`e+.
=XcZXf,+
Topley topples Middlesex
CRICKET: Essex youngster Reece Topley
Augusta. He said: “I’m fine, I think other
people are more upset about it.” Master
is a must for a big club like Spurs
8kk1)'#''' IlY\eD`ZX\c/0
ensured his side enjoyed the better of the champion Charl Schwartzel carded a dis-
8^^1*$('% first day’s play in their LV= County appointing 73 to finish one-over par.
Championship Division Two match at FOOTBALL in the Premier League up for grabs.
▲

:I@:B<K
CM:FLEKP:?8DG@FEJ?@G$;@M@J@FEFE<1?Xdgj_`i\m
Lord’s against Middlesex. In only his third Swann bemoans scheduling Bale said: “This is a massive club.
Efkk`e^_Xdj_`i\Ki\ek9i`[^\ 2?Xdgj_`i\)(/8I8[Xdj first-class appearance, the 17-year-old CRICKET: England off-spinner Graeme TOTTENHAM winger Gareth Bale We’ve shown this year we can com-
,$,+#:<J_i\Zb+$,( mEfkk`e^_Xdj_`i\-$')%'fm\ij % caught the eye with a second successive Swann believes there is too much cricket admits Champions League football is pete in major competitions, and
NXin`Zbj_`i\mJfd\ij\kKXlekfe 2NXin`Zbj_`i\+(-$- five-wicket haul. Nine home batsmen being played at the moment and the situ- a necessity rather than a luxury at now we have to qualify for the
0-%'fm\ij ;CDX[[p-. %mJfd\ij\k%
;li_XdmPfibj_`i\?\X[`e^c\p:Xie\^`\ 2;li_Xd*)-$0 made 15 or more but none could better ation needs assessing to avoid player White Hart Lane. Champions League again. It is not
0-%'fm\ij DA;`M\elkf.+#DAI`Z_Xi[jfe-. %m opener Scott Newman’s 38 as Middlesex burn-out. The number of matches at the The performances of the Wales going to be easy but we’re fully
Pfibj_`i\% were dismissed for 277. Essex’s reply was top level of the sport has been a key sub- international decorated his side’s focused on it.
;@M@J@FEKNF1C\`Z\jk\ij_`i\m;\iYpj_`i\;\iYp 2 11 balls in when bad light ended play. ject of debate for several years, and run to the quarter-finals of the com- “I’ve grown a lot from this compe-
C\`Z\jk\ij_`i\)*':N?\e[\ijfe..#K;>if\e\nXc[
,$,0 m;\iYpj_`i\('($+*+%'fm\ij % England and Wales Cricket Board chief petition in what was their debut sea- tition. Because Wales are struggling
>cXdfi^Xem>cflZ\jk\ij_`i\K_\JN8C<:JkX[`ld 2 No Masters hangover for McIlroy selector Geoff Miller recently admitted son in Europe’s premier club to qualify for major competitions,
>cXdfi^Xe)')9ANi`^_k/*#>>NX^^,/#@;JXo\cYp GOLF: Northern Ireland’s Rory McIlroy that there was too much cricket, which competition. the Champions League is the highest
,$,* m>cflZ\jk\ij_`i\.-$,*.%)fm\ij % put his Masters disaster behind him to left players too little time for rest and But after a 5-0 aggregate defeat at level I am going to play at for the
D`[[c\j\om<jj\oCfi[Ëj 2D`[[c\j\o)..IANKfgc\p
,$-+ m<jj\o'$'(%,fm\ij %B\ekmEfik_Xdgkfej_`i\ card a three-under 69 in the first round recuperation. “We do play too much the hands of Real Madrid Spurs now time being.
Efik_Xdgkfe 2B\ek)')mEfik_Xdgkfej_`i\/-$*+'%' of the Malaysia Open in Kuala Lumpur. cricket,” said Swann. “There are a lot of face a fight with Chelsea and “It is massively important that we
fm\ij % McIlroy sits five shots behind leader games that don’t really matter at the end Manchester City to ensure get back into the Champions League.
Alexander Noren of Sweden five days on of the day and that even the fans aren’t Champions League football returns Everyone thrives on it and I want to
email sport@cityam.com from throwing away a four-shot lead at that bothered about.” to N17 next season with fourth place play as much as I can now.”
 CITYA.M. 15 APRIL 2011 31

Hamilton warns McLaren: Make

me a winner again or I’ll leave you
Chinese Grand Prix, Hamilton stronger and stronger.
▲

FORMULA ONE
BY JAMES GOLDMAN
BRITAIN’S Lewis Hamilton has
warned his McLaren bosses that
unless he is provided with a more
competitive car he will be left with
no other option than to see alterna-
tive employers.
McLaren team principal Martin
Whitmarsh was earlier this week
reported to be mulling over an
offer worth a combined total of
£100m to keep Hamilton and
Jenson Button onboard until 2017.
THE FACTS: But with this season’s world title
EDIN DZEKO hopes already fading fast as a result
of the one hundred per cent start
AGE: 25 made to the new campaign by Red
TRANSFER FEE: £24m Bull’s outstanding Sebastian Vettel,
APPEARANCES: 15 who has won both of the opening
GOALS: 4 races ahead of this weekend’s
MINS PER GOAL: 257.8
admits he could be tempted by a
fresh challenge, and more perti-
nently the chance to race a faster,
more reliable car.
“I have got only a short period in
Formula One and I want to be com-
petitive,” he said. “I want to win
championships. If you’re in a good
enough place and you’re happy
then there’s no need to go any-
where. But loyalty has its limits.”
Hamilton, who has been with
the Woking-based McLaren team
since signing as a child prodigy,
was asked whether he envisaged
staying with them for his entire
career. “I don’t really envisage any-
thing, to be honest,” he said.
According to Hamilton, Red Bull,
who would be favourites to sign
him if he did move on, are getting
“They’re better this year,”
he said. “They’re just getting
better. The car is the quickest
so now they can focus on
other areas. Their pit stop is
the fastest. They’re in and out.
Boom. It’s like clockwork.”
Button, who succeeded
Hamilton as world champion
in 2009, was more upbeat
about McLaren’s chances of
overhauling Red Bull.
He said: “I think we can
make more headway than Red
Bull, because of not really
completely knowing our car
and not having the perfect set-
up over the past couple of
races. Also we have some
updates here; I don’t know if
Red Bull has.”

Struggling O’Sullivan took steps to Simon injury takes the shine off
as Murray advances in Monaco
pull out of the World Championship TENNIS until he got hurt,” said Murray. “Once
▲

I got my position on the court and

Ryan Day in the China Open last points they would need to pro- WORLD No4 Andy Murray has moved could use my forehand to open the
▲

SNOOKER
BY JAMES GOLDMAN
FORMER world No1 Ronnie
O’Sullivan added to the speculation
surrounding his future in the game
by taking steps to pull out of this
year’s World Championships, only
change his mind 24 hours later.
Snooker’s flagship event gets
underway in Sheffield tomorrow
with O’Sullivan, now ranked a lowly
10th in the world, set to begin his
campaign on Monday against
Dominic Dale.
Following a first-round defeat by
month the three-times world
champion hinted at quitting the
sport altogether, saying: “I’m not
going to say I’m retiring but you
never know, it’s not looking
good”.
On a potential with-
drawal from this year’s
championships, a world
snooker spokesman told
City A.M.: “Ronnie called us
last Thursday and said he
intended to pull out.
Should a player not wish to
forfeit the relevant ranking
vide a medical note as is stan-
dard procedure. But as Ronnie
called the next day and indicat-
ed he wanted to play it never
got that far.”
This year alone O’Sullivan
has withdrawn from two
major ranking events, the
Shanghai Masters and
the German Masters
Championship and has-
n’t won an official
match since claiming
the Premier League title
last November.
into the quarter-finals of the Monte
Carlo Masters with an assertive 6-3 6-3
victory over Frenchman Gilles Simon.
The opening exchanges were cagey
until Murray found his range and
dominated rallies with aggressive
groundstrokes.
The Scot’s consistency was frustrat-
ing Simon, who twisted his ankle at 5-
3 but managed to continue.
Simon responded with an early
break in the second but Murray
utilised the drop shot against his ail-
ing opponent.
“I thought it was a good match
court on his backhand I was able to
dictate a lot of the points - then he got
his injury.
“It changed the match. You always
feel you are in the driving seat but it’s
not a lot of fun, it spoils the concen-
tration. You know you are in the driv-
ing seat and you want to put the foot
down and finish the match.
“Drop shots were winning me vir-
tually every single point - I had to
keep moving him.”
Murray now faces Portuguese qual-
ifier Frederico Gil, the world number
82, for a place in the semi-finals.